Official Development Assistance dispensed by AFD is untied
The OECD’s DAC recommendation on untying bilateral official development assistance (ODA) to Least Developed Countries (LDCs) came into force in 2002. It concerns operations, excluding food aid and pure technical cooperation, for amounts exceeding SDR700 000.* This amount is reduced to SDR130 000 for technical cooperation operations relating to an equipment project.
AFD’s Supervisory Board went further than this recommendation in its 25 April 2002 resolution whereby it decided to untie all AFD’s project aid financing whatever the contract amount, and not only in LDCs but also in all AFD partner countries.
The DAC Recommendation subjects its members to two obligations:
- an ex ante notification, at least 30 calendar days prior to the launch of bid invitations indicating, among other things, the bid submission period, the prospective procurement arrangements, contact details for the entity in charge of procurement so that additional information can be obtained;
- an ex post notification, once a year, indicating the contact details of the beneficiaries selected.
AFD makes these notifications to the DAC.
*: The Special Drawing Right is an artificial international currency used by International Monetary Fund (IMF) member countries. 1 SDR is worth roughly 1.4 euros (August 2009).