Development Promotion Fund (FONPRODE)
- Fund established under Act 36/2010, October 22 2010, concerning the Development Promotion Fund.
- Managers: the Ministry of Foreign Affairs, European Union and Cooperation, through the Secretariat of State for International Cooperation.
- Financial Agent: ICO.
- The rules and regulations deriving from the FONPRODE Act are currently pending approval.
A development cooperation instrument:
- FONPRODE will channel part of the development aid activities performed by the Ministry of Foreign Affairs, European Union and Cooperation, including those carried out jointly with development banks and funds, and also compulsory contributions to international financial institutions, the responsibility of the Ministry of Economy and Business.
The purpose of FONPRODE:
- Remove any purpose of a commercial nature from FONPRODE.
- Untie aid financed from FONPRODE.
- The full integration of FONPRODE into cooperation.
- Simplify and speed up the instrument's modus operandi.
- Focus the instrument on the financing of cooperation initiatives deemed to be most necessary.
- So as to provide annual coverage of FONPRODE's funding requirements, the General-Government Budget will assign an allocation under the management of the Ministry of Foreign Affairs and Cooperation.
- In addition to this allocation, FONPRODE will be funded by resources from repayments or the onerous assignment of loans and credits granted, together with amounts deriving from fees and accrued interest collected on the realisation of said financial assets.
Types of operation:
- FONPRODE will finance development projects and programmes in less developed countries. The financing will take the form of a State-to-State grant.
- Financial contributions to development programmes and international multilateral non-financial development bodies.
- Technical assistance, viability studies, along with ex-ante and ex-post programme evaluations.
- Contributions to funds constituted at international financial development institutions for the purpose of meeting basic social needs.
- Furthermore, it will be possible to grant credits, loans and financing facilities in concessionary conditions, on a non-tied basis, including contributions to microfinance programmes and those providing support for the productive social network.
Arrangement and administration:
- As the State's Financial Agency, ICO, in the name and on behalf of the Spanish Government and on the State's account, will arrange the agreements to be signed with the beneficiaries.
- At the same time, ICO will provide services relating to technical execution, accounting, cash, payment agent activities, control and, in general, all those of a financial nature.