AFD credit facilities for private sector too

Lumbini EDIRISINGHE

The French Development Agency (AFD) has decided to provide credit facilities to the private sector as well. The AFD in Sri Lanka has funded several government sector projects for over 12 years.

Resident Representative, AFD, Jean-Bernard Maucor told Daily News Business that they are happy with the projects undertaken by Sri Lanka’s private sector.

He said that they had received many requests from the government to get involved in the private sector development as well. “Hence we decided to get involved with several infrastructure development projects of the private sector mainly in the Trincomalee and Batticaloa areas,” he said.

“However, we have so far not decided on the projects that we are going to undertake in the private sector and we are happy with the private sector’s progress,” he said.

The AFD has facilitated to rebuild hospitals and schools in the North and the Eastern provinces and its main target is to increase energy efficiency. They are very keen on getting involved in projects related to power generation. “In addition we are also keen on environment protection,” he said.

“We have conducted five main projects at a cost of millions of dollars so far. These include water, electricity, road development, community development projects and also the support to the construction industry,” he said.

“We are happy that peace is on the horizon and our investments would have better results,” he said.

In many developing countries, business must be quickly brought up to a certain standard to respond to international competition and to find a place in the global economy. The AFD responds to their financing, training and technological development needs.

Reducing poverty and inequality are the core objectives of the AFD. These objectives are also crucial components of the United Nations Millennium Development Goals. (MDGs) They require long-term vision and support if they are to contribute to the productivity and upward mobility of the poor in developing countries. “Good nutrition, health, access to quality health care, education and private sector economic growth would help any country to prosper,” he said.

The AFD which commenced operations after the Second World War to aid the French-speaking countries in 1960, came to Sri Lanka after the tsunami in 2005. Later their aid spread to other developing countries as well.

The AFD which provides credit to the Government to rebuild infrastructure facilities today also links with sixty countries mostly in African countries.

As a specialized financial institution, the AFD complies with the French monetary and financial code. AFD accounts are certified by two firms of auditors and subject to the regulations of the French Banking Commission (Bancaire), the National Court of Auditors (Cours des comptes) and the Financial Marketers Authority.