Summary of Proposed Investment
Project Number
504446
Company Name
INTERNATIONAL FINANCE CORPORATION
Date SPI Disclosed
Mar 9, 2004
Country
World Region
Industry
Infrastructure
Projected Board Date
Apr 10, 2004
Status
Completed
Sector
Other (For Non-Investment Projects)
Department
Climate Business Department
Environmental Category
FI
Project Description
The aim of the Environmental Business Finance Program (EBFP) is to create a sustainable market for GEF- eligible Small and Medium Enterprise (SME) activities and projects that target the GEF focal areas of climate change, biodiversity, land degradation and persistent organic pollutants. Through proactive market development, technical assistance and financing support, the EBFP will seek to engage Financial Intermediaries (FIs) to service the GEF-eligible SME market and demonstrate that profitable investment opportunities exist. The EBFP will work with FIs to introduce best practice SME finance tools and training, as well as with SMEs to build local capacity to develop and support viable business plans. The EBFP will proactively develop the GEF-eligible SME market through market assessments, know-how sharing and best practice dissemination, as well as through activities that expand market size and scope, and raise consumer awareness. In addressing the key obstacles (lack of access to financing, limited capacity and a weak supportive environment), the EBFP aims to create a market for sustainable, mainstream GEF-eligible SMEs.
Note: the EBFP defines GEF eligible as those activities that target one or more of the Global Environment Facility focal areas of biodiversity, climate change, land degradation and POPs.
Note: SMEs are defined in accordance with the definition of the World Bank Group’s (WBG) SME Department, as follows: micro-enterprises up to 10 employees and total assets or total annual revenues of up to $100,000; small enterprises up to 50 employees and total assets or total revenues of up to $3 million, and medium enterprises up to 300 employees and total assets or total annual revenues of up to $15 million. For the purposes of the EBFP the definition of SME includes micro-enterprises.)
The EBFP will be implemented in ten to twelve countries through programs that will be specifically developed for each country. There will be two types of country programs:
- large country programs and
- small country programs
The large country programs are intended for countries where there is a market for a range of types of activities, for instance those covering more than two operational programs (OPs).
The small country programs are intended for countries where there is a limited set of activities that can be targeted, for instance those covering just one or two OPs. In addition to country programs, the EBFP will be developing smaller stand-alone interventions which focus on one activity or one intermediary, in up to another ten countries. This particular aspect of the program will focus on non-traditional intermediaries such as the existing clients of the SME Program as well as GEF-eligible medium-sized enterprises or NGOs in countries where there is no specific country program. Where an activity stands to have a significant impact on a particular sector, or if the enterprise or NGO is working with a particularly innovative approach, the EBFP would consider providing direct financing on the basis of the global environmental benefits to be generated.
Note: the EBFP defines GEF eligible as those activities that target one or more of the Global Environment Facility focal areas of biodiversity, climate change, land degradation and POPs.
Note: SMEs are defined in accordance with the definition of the World Bank Group’s (WBG) SME Department, as follows: micro-enterprises up to 10 employees and total assets or total annual revenues of up to $100,000; small enterprises up to 50 employees and total assets or total revenues of up to $3 million, and medium enterprises up to 300 employees and total assets or total annual revenues of up to $15 million. For the purposes of the EBFP the definition of SME includes micro-enterprises.)
The EBFP will be implemented in ten to twelve countries through programs that will be specifically developed for each country. There will be two types of country programs:
- large country programs and
- small country programs
The large country programs are intended for countries where there is a market for a range of types of activities, for instance those covering more than two operational programs (OPs).
The small country programs are intended for countries where there is a limited set of activities that can be targeted, for instance those covering just one or two OPs. In addition to country programs, the EBFP will be developing smaller stand-alone interventions which focus on one activity or one intermediary, in up to another ten countries. This particular aspect of the program will focus on non-traditional intermediaries such as the existing clients of the SME Program as well as GEF-eligible medium-sized enterprises or NGOs in countries where there is no specific country program. Where an activity stands to have a significant impact on a particular sector, or if the enterprise or NGO is working with a particularly innovative approach, the EBFP would consider providing direct financing on the basis of the global environmental benefits to be generated.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Phone: 202-473-1324
Email: ebfp-info@ifc.org
Website: www.ifc.org/gefsme
Email: ebfp-info@ifc.org
Website: www.ifc.org/gefsme