Invitation for Projects under
Economic and Infrastructure Windows
INDEX
1.
2.
3.
4.
5.
6.
7.
8.
Background
Purpose
Project Eligibility
Eligible Borrowers
Priority Projects
Projects Areas
Who may approach SDF
Contact details
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1. Background:
1.1 The SAARC Development Fund (SDF) Secretariat was inaugurated by the Heads of
State/Governments of SAARC Member States in April 2010 during the 16th SAARC Summit in
Thimphu, Bhutan. The SDF has been created to fulfill the need for a sound, adequate and
predictable funding mechanism for SAARC to facilitate undertaking sub-regional and regional
programmes and projects.
1.2 The primary objectives of the SDF are (i) to promote the welfare of the people of SAARC
Region (ii) to improve the quality of life, and (ii) to accelerate economic growth, social progress
and poverty alleviation in the SAARC Region.
1.3 To support the above objectives, the SDF Secretariat’s main activities are:






identify, study prospect and approve projects,
Finance approved projects in the SAARC Member States,
Leverage funding i.e arrange and mobilize financing and/or co-financing projects,
Provide grants or concessional loans for projects of strategic importance to SAARC, and
Provide financial and technical assistance, and
Manage the Fund.
2. Purpose
2.1 SDF has 3 (three) financing Windows i.e. Social, Economic and Infrastructure. Currently
the Social Window is in operation and projects are under implementation in SAARC
countries.
2.2 The SDF is now in the process to operationalize the Economic and Infrastructure
Windows for accelerating Economic growth and Infrastructure development in SAARC
countries.
2.3 SDF is now actively looking for:
(i)
project proposals of regional significance for financing
(ii)
innovative project ideas for developing into projects relevant to the SAARC
Region – involving pre-feasibility/feasibility studies and developing Detailed
Project Reports
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3. Project Eligibility
3.1 As per Article 5 of the SDF Charter, The resources and facilities may be utilized for funding:
(i)
projects involving all SAARC Member States;
(ii)
projects involving more than two but not all SAARC Member States;
(iii)
projects located in one or more SAARC Member States, of significant economic
interest for three or more SAARC Member States; and
(iv)
Projects with significant focus on poverty alleviation, as envisaged under the
Social Window, in any SAARC Member State having thematic linkage with more
than two SAARC Member States as part of sub-regional project.
3.2 The Fund shall primarily finance longer term priority regional programmes and projects.
The projects coming into the SDF need to be examined based on above basic criteria.
3.3 Also, the projects need to be examined from additional aspects of welfare of the people,
improvement in quality of life, acceleration of economic growth, social progress and poverty
alleviation in the region.
3.4 The three-country criteria can be based on having investment or investors from three
countries or may be technology, design, vendors, or any other thematic aspect.
3.5 Target projects for financing shall include only economically sustainable and financially
viable projects.
3.6 Initially SDF will be funding projects through co-funding/parallel funding mechanisms with
local banks/FIS/Multi-lateral funding institutions.
4. Eligible Borrowers
Financing under the Economic and Infrastructure Windows shall be to sovereign as well as to
non sovereign entities. Thus, the loans could be extended to government bodies, municipal
corporations, SPVs, SEOs, private sector corporate bodies or combination of one or more of this
etc.
5. Priority Projects:
The SDF assigns high priority to those projects, programmes and operations which:

Have high potential for positive regional economic impact by benefiting more than
two countries.
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
Promote cooperation between or among Member Countries;
 Have strong potential for facilitating mobilization of domestic and foreign capital

Source and utilize raw materials, equipment and other productive inputs within the
SAARC region.

Create and promote intra-SAARC trade.

Promote backward, forward and spatial linkages in economies of SAARC Member
States.

Develop and promote indigenous and appropriate technologies and skills.

Promote majority ownership and management by SAARC nationals.

Promote the role of women in trade and overall development.

Comply with international acceptable environmental protection standards.

Create and expand employment opportunities and other social benefits.

Are export-oriented, local resources based and regional in nature.
6. Project areas:
6.1 As per Article 4 (4) of the SDF Charter, the Infrastructure Window shall primarily be
utilized to fund projects in areas such as energy, power, transportation, telecommunications,
environment, tourism and other infrastructure areas.
6.2 The Economic Window shall primarily extend funding to non-infrastructural projects
related to trade and industrial development, agriculture, service sectors, science and
technology, and in other non-infrastructure areas. It shall also be utilized for identifying,
studying, developing and/or sponsoring commercially viable programmes/projects of regional
priority including their pre-feasibility and feasibility studies. The Economic Window would be
utilized for supporting any other projects which are not covered explicitly under the Social and
Infrastructure Windows.
7. Who may approach SDF?
i)
Potential investors/proponents/promoters
ii)
iii)
Potential Co-financiers (private, public, or multilateral banks/FIs)
Companies , Public or Private, duly incorporated in the Member States
iv)
Governments of Member States, authorities or Departments of Member States,
Government Officials
v)
Financial institutions- Local, Regional & International, Commercial Banks
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vi)
vii)
viii)
ix)
Any SAARC body
Any Institution or Agency (SAARC or international)
Chambers of Commerce, Trade Associations of Member states
Board
of
Investments
of
Member
States
or
specialized
approving/syndicating investments
8. Contact Details
For more information please contact the SDF Secretariat at the address below:
The Chief Executive Officer,
SAARC Development Fund (SDF),
SDF Secretariat, BDB Building,
Norzin Lam, Post Box 928, Thimphu 11001, Bhutan
PABX: +975-2-321152/53
Fax: +975-2-321150
Email: ceo@sdfsec.org;
With cc to: mukesh@sdfsec.org and Kamath@sdfsec.org
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bodies