Sovereign Project Funding
Sovereign Project Funding is for the governments of developing countries in the form of concessionary loans to support their development priorities and assist in achieving sustainable economic development.
LOANS ARE INTENDED TO COVER AS MANY RECIPIENTS AND REGIONS AS POSSIBLE PER APPLICATION CYCLE. THERE ARE NO LIMITS TO THE NUMBER OF PROJECT PROPOSALS PRESENTED BY EACH COUNTRY, BUT APPLICANT GOVERNMENTS ARE ADVISED TO PRIORITIZE THEIR PROPOSALS. DOUBLETREE CAPITAL BANK (DTCB) FUNDING DETAILS ARE AS FOLLOWS:
- The total amount of concessional loans committed per annual project selection cycle shall not exceed USD 50 million unless there is a rollover from the precious cycle if there is a shortfall of projects selected for funding.
- The concessional loan value for project(s) will range between USD 5 million to no maximum.
- The loan amount for each project shall not exceed 50 percent of the estimated project cost.
- Loan rates will vary between 2 percent and 6 percent per annum, with a duration of 15 to 20 years, including a grace period ranging from 3 to 5 years. Loan rates are generally set based on GNI per capital which is in accordance with the DAC list of ODA recipients.
- The project must demonstrate economic feasibility.
If the applicant is a government entity not involved in the international borrowing affairs of the country (e.g., Ministry of Energy), a letter of intent from the government entity that deals with the international borrowing affairs (e.g., Ministry of Finance or International Co-operation) is required by DTCB. The letter of intent should indicate that the project is consistent with government development priorities and that the government supports the project.
If the applicant is a private or semi-governmental agency, DTCB requires that applications be supported by a government guarantee letter issued by the ministry or the authority that deals with international co-operation and funding. DTCB can enter a loan agreement with a private or semi-governmental agency, only if a loan guarantee agreement is signed between DTCB and the government (represented by the ministry that deals with the international aid, e.g. Ministry of Finance, Ministry of International Co-operation).
Asia Region Government Project Funding Specialist and consultant
Kenneth S. Kim
(Kyong Soo Kim)