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SAARC Development Fund E-Newsletter For November - December 2018

SAARC Development Fund E-Newsletter For November - December 2018

SAARC Development Fund

Monthly e-Newsletter November - December 2018

In this Issue:

Activation of Economic and Infrastructure Windows
SDF Board of Directors, and Counterpart Agencies Meetings
Launching of MSME Program in SAARC Member States
CEO SDF official visit to Nepal to attend meetings
SDF commemorate SAARC Charter Day
CEO SDF meeting with Prime Minister of Bhutan
Project Inception Meeting of Implementing Agencies
CEO SDF participation in UN-ESCAP Summit, 2018
Trainings for SDF Staff
Independent Evaluation of SDF funded projects in SAARC Member States
Summary of SDF Funded project in SAARC Member States

Economic and Infrastructure windows of SDF fully activated after approval of the five projects

With the approval of five projects the Economic and Infrastructure windows stand fully activated. Approved project details are as under:
Economic Window:

  1. Purchase of new ATR aircraft for Drukair Corporation under sovereign guarantee extended by the Royal Government of Bhutan.

Infrastructure Window:

  1. Expansion of Koshi Corridor 220 kV Transmission Line Project in Nepal
 
  1. 37 MW Upper Trishuli 3B Hydroelectric Project in Nepal
  2. 13.2 MW Fairway Waste to Energy Project in Sri Lanka (in principally approved).
  3. GMR 900MW Upper Karnali Hydroelectric project in Nepal (in principally approved).

Total amount USD 73 Million is allocated for these projects and it is expected that loan disbursement will take place in second quarter of year 2019.

 
 
 
 

Board of Directors and Counterpart Agencies Meetings concluded with approval of three projects and MSME Program

SDF convened Meetings of Board of Directors, Finance & Audit Committee, Board Project Appraisal Committee, Board Human Resource Committee, and Counterpart Agencies from December 16 to 21, 2018 in New Delhi India. Brief detail of meetings is an under:

Thirtieth Meeting of SDF Board of Directors - Thirtieth Meeting of SDF Board of Directors was held on December 18 and 19, 2018 in New Delhi India. The Board meeting concluded with approval of following three projects under the Economic and Infrastructure Windows of SDF:

Economic Window:

  1. Financing, purchase of new ATR aircraft for Drukair Corporation under sovereign guarantee extended by the Royal Government of Bhutan with SDF financing up to USD 13 million.

Infrastructure Window:

  1. Financing, 37MW Upper Trishuli Hydroelectric power plant for the SPV-Trishuli Jal Vidyut Company Ltd with SDF financing up to USD 15 million.
  2. Financing Government of Nepal for onward lending to Nepal Electricity Authority (NEA) for Expansion of Koshi Corridor 220 kV up to USD 15 million.

With the approval of these three projects, SDF Economic and Infrastructure Windows are now fully activated. The cumulative fund commitment for three approved projects and two in-principle approved under the E&I Windows is USD 73 million.

Micro, Small and Medium Enterprise (MSME) funding scheme got approved by the Board. It is expected that the program will be launched soon in all SAARC Member States.

Ninth Meeting of Finance & Audit Committee - Ninth Meeting of Finance & Audit Committee was held on December 17, 2018 in New Delhi India. The Committee discussed in detail key issues related to the budget and recommended the Budget for FY 2019 for approval of the Board.

Fourth Meeting of Board Project Appraisal Committee - Fourth Meeting of Board Project Appraisal Committee was held on December 16, 2018 in New Delhi. The committee concluded with recommendations to the Board for final approval of three projects under the E&I windows and two projects under the Social Window.

Fifth meeting of the Counterpart Agencies - Fifth meeting of the Counterpart Agencies was held on December 20, 2018 in New Delhi. CEO, SDF emphasized on identification of projects for Economic, Infrastructure and Social Windows and Launching of MSME Program in respective Member States. He mentioned that as the Program has been approved so counterpart agencies shall provide support to SDF in identification of MSME Banks/Institutions in their respective Member States.

Micro, Small and Medium Enterprise (MSME) funding scheme is ready to launch in SAARC Member States

SDF is launching its Micro, Small and Medium Enterprise (MSME) funding scheme in SAARC Member States. The MSME funding scheme comes under the Economic Funding Window of SDF. The Fund has earmarked an amount of USD 25 to 30 million to be disbursed under the MSME funding scheme in FY 2019. The MSME loan shall be extended to specialized MSME banks in SAARC Member States on sovereign guarantees. In his remarks, Dr. Motiwal, CEO SDF emphasized on the need to create an integrated, poverty-free, and prosperous South Asia region through project funding and collaboration. The Fund is working tirelessly to promote regional cooperation and integration in the SAARC region.

 

CEO SDF ATTENDED ANNUAL COORDINATION AND PROGRAMMING COMMITTEE MEETINGS AND MET FINANCE MINISTER, AND MEMBER OF THE SDF GOVERNING COUNCIL AS WELL AS BOARD DIRECTOR AND ALTERNATE BOARD DIRECTORS

During visit to Nepal CEO, SDF attended Annual Coordination Meeting with the SAARC Regional Centers and Specialized Bodies on December 10, 2018 at the SAARC Secretariat, Kathmandu. CEO, SDF also attended 56th Session of SAARC Programming Committee Meeting held on December 11 and 12, 2018 at the SAARC Secretariat, Kathmandu. These important meetings will contribute to deliberations as a key mover for regional cooperation.
During the visit, CEO SDF had meetings with H.E. Dr. Yuba Raj Khatiwada, Finance Minister, Government of Nepal and member of the SDF Governing Council as well as Board Director and Alternate Board Directors. Projects under active consideration of SDF were discussed and H.E. Dr. Yuba Raj Khatiwada assured support of the Government of Nepal regarding these projects.

 

SAARC Charter Day reflect the desire of Member States to work collectively to promote to promote the welfare of the people of SAARC region

At the 34th SAARC Charter Day commemoration in Thimphu on December 8, 2018, SDF hosted a program vouching their unwavering support and commitment to the SAARC process. The event brought together ministers, high-ranking government officials, heads of international organizations, and civil society representatives. H.E. Lyonpo Namgay Tshering, Finance Minister, Royal Government of Bhutan and member of the SDF Governing Council graced the occasion. At this occasion, Dr. Sunil Motiwal, CEO, SDF underscored that more than 100 million are committed for projects funding in SAARC Member States and that Bhutan is among the largest recipients of SDF funding. He further mentioned that SDF has made notable strides to solicit and implement regional projects under economic and infrastructure windows to promote regional integrations among SAARC Member States. H.E. Lyonpo Namgay Tshering, emphasized on the need of developing the SAARC region as a whole and expressed confidence in SDF ability to work for the region.

 

PRIME MINISTER OF BHUTAN APPRECIATED SDF ROLE TO PROMOTE WELFARE OF THE PEOPLE OF SAARC REGION

Dr. Sunil Motiwal, Chief Executive Officer of SAARC Development Fund met H.E. Lyonchhen Dr. Lotay Tshering, Prime Minister of Bhutan and briefed him about current scenario and future action plan of SDF. He mentioned that, SDF as regional funding institution has funding various projects under three funding windows namely- Social, Infrastructure and Economic Windows in Member Stats and Bhutan is one of the largest recipients of SDF funding. His Excellency was also briefed on the new initiatives/programs of SDF on Social Enterprise Development Program and the MSME Program. His Excellency expressed his appreciation toward SDF's role in promoting Regional Integration as well as its role to promote the welfare of the people of SAARC region, improve their quality of life, and accelerate economic growth, social progress and poverty alleviation in the region.

 

PROJECT INCEPTION MEETING HELD IN THIMPHU, BHUTAN

Project inception meeting was successfully held by SDF from 26 - 27 November 2018 in Thimphu Bhutan for the Implementing Agencies and Coordinating Agency for the project "Livelihood Enhancement of the small farmers in SAARC Region through small scale agro business focusing on value chain". The project was approved by the SDF board during the 28th Board Meeting as co-funding either in kind or cash contribution ranging from 12 to 100% of the total project budget with 8 SAARC Member States participation and SAC as its Coordinating Agency (CA). The total approved project budget is USD 2,249,694.00 (SDF funding USD 1,813,972.00 and co-funding from Implementing Agencies (IAs) and Coordinating Agency USD 435,722).

 
 

CEO SDF ATTENDED UN-ESCAP SUMMIT, 2018

CEO SDF attended Expert Group Meeting on Investment Needs for Achieving the Sustainable Development Goals in Asia and the Pacific held on November 14 and 15, 2018 in

 

Bangkok, Thailand. The two-day Expert Group Meeting brought together experts from across the UN and other international organizations as well as leading think-tanks and universities in the Asia-Pacific region, with a view to developing a comprehensive assessment of investment requirements for achieving the SDGs by 2030. CEO SDF delivered presentation on investment needs in Economic and infrastructure sectors of South Asia. It was well attended by Asian countries. CEO SDF also met, Ms. Armida Salsiah Alisjahbana, Executive Secretary UNESCAP and Ms. Valerie Cliff, Deputy Director, Regional Bureau for Asia & Pacific to discuss deepening future collaborations between the SDF and UNESCAP. "Our comparative advantages complement each other's work. ESCAP's work and capacity development initiatives complement SDF's operational and financing work. Our partnership is particularly relevant in assisting SAARC Member states to implement and monitor projects." said Dr. Motiwal.

 
 

ADVANCED TRAINING ON ACCOUNTING AND FINANCIAL MANAGEMENT IMPARTED TO PROFESSIONAL AND OTHER SDF THROUGH RENOWENED FINANCIAL AND ACADEMIC INSTITUTIONS

Hands on experience and knowledge on Project Appraisal and Project Financing was imparted to SDF professional and other staff- Financial Institutions Training Institute (FITI), a leading training institute established by Bank & Financial Institutions and the Central Bank in Bhutan, provided an exclusive tailor-made training to SDF Staffs on Project Finance on October 27-28, 2018 and on Project Appraisal on December 1-2, 2018. Eight SDF officials participated in the training and gained more better understanding of Project Financing and Appraisal Techniques.SDF professional staff attended advanced training on Accounting and Financial Management held at Indian Institute of Management Kozhikode, India (Kochi Campus) on November 21 - 23, 2018. Eight SDF officials participated in the training. The 3 days training imparted hands on practical exposure on analysis of financial statements, management accounting for decision making, investment appraisals and simulation techniques. Training was arranged for SDF professional and other staff on how to better and effectively manage Loan and Grant Managements using Information Management System. Eight SDF officials participated in the training. The training was held at SDF Secretariat, Thimphu, Bhutan from December 25-24, 2018. SAARC Development Fund Secretariat is involved in multilateral funding activities through grants and loans to sovereign and non-sovereign entities through various programmes. Participants were briefed on available MIS technologies and the effective management of grant and loan through MIS including- collection, assimilation, aggregation, calculation, and analyses of data, and generating customised reports.

Independent Evaluation of SDF funded projects in SAARC Member States

Independent Evaluation of SDF funded Project: “Postharvest Management and Value Addition of Fruits In Production Catchments In SAARC Countries” has revealed that the project has positively impacted lives of targeted communities and post-harvest losses have been reduced.

Independent Evaluation of SDF funded Project: “Strengthening the Livelihood Initiative for Home-based Workers In SAARC Region (SABAH) (Phase-II)” has revealed that the project has positively impacted the lives of targeted communities and new product development has taken place.

Independent Evaluation of SDF funded Project: “Strengthening of Water, Sanitation and Hygiene (WASH) Services in Selected Areas of SAARC Countries” has revealed that the project has positively impacted and health index of the targeted communities improved as well as Open Defecation Free (ODF) status is improved

Independent Evaluation of SDF funded projects (a) Strengthening the livelihood initiative for home based workers in SAARC Region (SABAH) (Phase 2); (b) PostHarvest Management and Value addition of Fruits in Production catchments in SAARC Countries; and (c) Strengthening of Water, Sanitation and Hygiene (WASH) Services in selected areas of

 

SAARC countries was conducted through third party (KPMG) with an overall objective to assess the relevance, impact, sustainability, effectiveness, efficiency and sustainability of the projects in accordance with the United Nations Evaluation Group (UNEG) Evaluation Norms as well as OECD-DAC evaluation principles and guidelines.

Summary of SDF Funded Project in SAARC Member States

Status of Projects under the Economic Window of SAARC Development Fund

Sl No

Description of Project

Member State of Origination

Participating Member States

Loan Amount
(USD Million)

Sovereign/ Non Sovereign/
Grant

Status

1

Purchase of new ATR aircraft for Drukair Corporation under sovereign guarantee extended by the Royal Government of Bhutan

Bhutan

Bangladesh, India and Nepal

13

Sovereign

Approved

 

Total Fund Commitment

13

 

 

Status of Projects under the Infrastructure Window of SAARC Development Fund

Sl No

Description of Project

Member State of Origination

Participating Member States

Loan Amount
(USD Million)

Sovereign/ Non Sovereign/
Grant

Status

1

37MW Upper Trishuli Hydroelectric power plant for the SPV- TrishuliJalVidyut Company Ltd with SDF financing up to USD 15 million.

Nepal

India

15

Non Sovereign

Approved

2

Proposal to finance Government of Nepal for onward lending to Nepal Electricity Authority (NEA) for Expansion of Koshi Corridor 220 kV Transmission Line Project being extended to the Government of Nepal

Nepal

India

15

Sovereign

Approved

3

900 MW GMR Upper Karnali Hydropower Project in Nepal

Nepal

India

15

Non Sovereign

In-principle Approved

4

13.2 MW Waste to Energy Project of Fairway Waste Management Private Limited in Sri Lanka

Sri Lanka

India

15

Non Sovereign

In-principle Approved

 

Total Fund Commitment

60

 

 

Fund Allocation under the Micro, Small & Medium Enterprises (MSME) Program

Sl No

Description of Project

Member State of Origination

Participating Member States

Loan Amount
(USD Million)

Sovereign/ Non Sovereign/
Grant

Status

1

MSME Program

All SAARC Member States

All SAARC Member States

50

Sovereign

Approved

 

Total Fund Allocation

50

 

 

Status of Projects under the Social Window of SAARC Development Fund

Sl No

Description of Project

Member State of Origination

Participating Member States

Grant Amount
(USD Million)

Sovereign/ Non Sovereign/
Grant

Status

1

Strengthening the livelihood initiative for home based workers in SAARC Region

SEWA, Ahmedabad, India

All SAARC Member States

21.07

Grant

Closed except for Bangladesh, Sri Lanka

2

Strengthening Maternal and Child Health Including Immunization

HLL Lifecare Ltd, India

All SAARC Member States

15.03

Grant

Closed except for Pakistan

3

Scaling up of Zero Energy Cold Storage (ZECS) technology for the horticultural commodities in the high hills of SAARC countries

Nepalese Farming Institute, Nepal

Afghanistan, Bhutan, India and Nepal

3.38

Grant

Closed

4

Empowering Rural Communities : Reaching the Unreached

Ministry of Information Communication, Bhutan

Bangladesh, Bhutan, Maldives and Nepal

7.93

Grant

Closed

5

South Asia Initiative to End Violence Against Children (SAIEVAC)

SAARC Secretariat, Nepal

All SAARC Member States expect India

2.60

Grant

Closed

6

Post- Harvest Management and Value Addition of Fruits in Production Catchments in SAARC Countries

SAARC Secretariat, Nepal

All SAARC Member States except India

4.97

Grant

Closed

7

Regional Inter-professional Master’s Program in Rehabilitation Science

Center for Rehabilitation of Paralysed (CRP), Bangladesh

Bangladesh

1.50

Grant

Active

8

Toll Free Helplines for Women and Children in SAARC Member States

SAARC Secretariat, Nepal

All SAARC Member States expect India

4.00

Grant

Active

9

Strengthening of Water, Sanitation and Hygiene (WASH) services in selected areas of SAARC Countries

SEWA, Ahmedabad, India

Afghanistan, Bhutan, India, Nepal, Pakistan and Sri Lanka

6.29

Grant

Closed except for Nepal and Pakistan

10

Promoting Integrated Bamboo Based Enterprise Development among SAARC Countries

Foundation for MSME Clusters (FMC), India

Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan

4.38

Grant (Co-funding)

Active

11

Networking and capacity building of women entrepreneurs (SMEs) from SAARC Countries

Pakistan Science Foundation, Islamabad, Pakistan

All SAARC Member States

0.73

Grant

Active

12

Livelihood enhancement of small farmers in SAARC region through small agro-business focusing on value chain development

SAARC Agriculture Centre & CIRDAP, Bangladesh

All SAARC Member States

1.81

Grant (Co-funding)

Active

 

Total Fund Commitment

73.69

 

 

Social Window – New Projects

Sl No

Description of Project

Member State of Origination

Participating Member States

Loan Amount
(USD Million)

Sovereign/ Non Sovereign/
Grant

Status

1

SAARC B2B and E-Commerce Trade Portal

SAARC Chamber of Commerce and Industry

All SAARC Member States

0.05

Grant (Co-funding)

In-principle Approved by BPAC

2

Consortium for Scaling Up Climate Smart Agriculture in South Asia

International Fund for Agricultural Development (IFAD), Delhi Office.

Bhutan, Pakistan and Sri Lanka

0.60

Grant (Co-funding)

In-principle Approved by BPAC

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