Technical cooperation contributes significant added value to the Bank's competitiveness and ability yo respond effectively to client demand and to fullfill is mission to reduce poverty and inequality, support modernization of the state, institutional strengthening, capacity building, transfer of knowledge and research, including diagnostic, pre-investment and sector studies that support project design and preparation. The programs can be aimed at projects specific to a single country or for trade, integration or regional initiatives.
Technical cooperation programs can be nonreimbursable (grants), reimbursable (loans), or contingent-recovery (reimbursable if the program is financed by another lending institution).
Countries with relatively low per capita incomes are eligible to receive financing from the Fund for Special Operations (FSO), the Bank's soft-lending window. The FSO was established in 1960 to provide loans on concessional terms for special circumstances in certain countries and for specific projects. The Bank also administers about 40 trust funds that finance technical cooperation grants. Each fund has its own eligibility criteria.
The Bank finances technical cooperation activities to transfer technical know-how and expertise for the purpose of supplementing and strengthening the technical capacity of entities in the developing member countries. The financing is determined largely on the basis of the field of activity into which a project falls and the relative development status of the region, country, or countries involved. It may take one of the following forms:
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