IFAD Operating Model and Co-Financing
IFAD's operating model comprises a project cycle with two main components.
- Project development includes the project concept note, detailed project design and design completion.
- Project implementation includes supervision, the mid-term review and project completion.
A results-based country strategic opportunities programme (COSOP) is a framework for
- making strategic choices about IFAD operations in a country,
- identifying opportunities for IFAD financing and related partnerships, and
- facilitating management for results.
In September 2014, the Executive Board approved a
- Framework Agreement with KfW for the granting of individual loans to IFAD.3
Subsequently, the KfW loan for EUR 400 million was negotiated under the Framework Agreement and signed on 24 November 2014 by the President of IFAD, at KfW headquarters in Frankfurt, Germany. The loan represented a source of funding for IFAD9.
In September 2016, Germany's Development KfW agreed with the International Fund for Agricultural Development (IFAD) on a further promotional loan of 200 million Euros.
- The loan has been given on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ) and is part of the Strategic Partnership between the Ministry and IFAD.
It is the second tranche of a Framework Agreement between KfW and IFAD totaling to 400 million Euros, after the first promotional loan over 100 million Euros arranged in November 2014.
- IFAD will use the funds for rural investment in middle income countries facilitating projects to increase agricultural production.
KfW and the German government are contributing thereby significantly to improve food security of the poor rural population worldwide.
Co-financing is a special type of partnership, of particular importance to IFAD and its programme of work.
On average over the last 10 years, for every US$1 IFAD has invested, an additional US$1.23 has been leveraged.
IFAD continues to set for itself ambitious targets to expand cofinancing.