Major Programme 3.2: Support to Investment

(all amounts in US$ 000)
  Programme 2004-05 Programme of Work ZRG Programme Change ZRG 2006-07 Programme of Work RG Programme Change RG 2006-07 Programme of Work
321 FAO/World Bank Cooperative Programme 35,761 (286) 35,475 0 35,475
322 Investment Support Programme 19,367 285 19,652 2,300 21,952
Total 55,128 (1) 55,128 2,300 57,428
ZNG Impact     (4,173)    
Total     50,954    

Substantive thrusts under ZRG conditions

287.     This major programme is aimed at promoting investment in agriculture, rural development and sustainable use of natural resources. The Investment Centre (TCI) will continue to work closely with its partners to generate such investment, by international institutions and national governments, contributing to reversal of falling trends of the last decade. Assistance in the preparation of investment and complex technical cooperation projects that respond to the priorities of developing and transition countries, and which meet the funding criteria of multilateral financing agencies, remains the main focus of work, involving cooperation with some 20 major financing and related institutions. On average, 54 percent of the total cost of FAO’s support to investment is met by extra-budgetary resources. The programme entity structure will be adjusted in the full PWB in order to strengthen planning, target setting, financial monitoring and reporting.

288.     Programme 3.2.1, covering the FAO/World Bank Cooperative Programme, is defined through a firm contractual arrangement with the Bank. The level of activities undertaken with cooperating institutions other than the World Bank (Programme 3.2.2: Investment Support Programme) was reduced in the PWB 2004-05.

Real Growth Scenario

289.     TCI would be able to restore activities with cooperating institutions under Programme 3.2.2 to its former level. This would mean expanding work beyond core partners such as IFAD, WFP and AfDB43and encouraging more collaboration with regional banks such as AsDB, IsDB, CAF44, etc.

Zero Nominal Growth Impact

290.     Work with the World Bank would remain at its present level so as not to jeopardise the cooperative programme which is defined through a firm contractual arrangement. However, there would be no capacity to respond to the Bank’s demand for supplementary services in support of its increasing lending programme in agriculture and rural development.

291.     The programme with non-World Bank cooperating institutions (Programme 3.2.2) would be reduced by approximately 25 percent versus the current level of Investment Support Programme (ISP) work. ZNG would entail reductions in the level of cooperation with the core partners (IFAD, WFP and AfDB) and require freezing activities with other 19 cooperating institutions, including AsDB, IsDB, EBRD45 and CAF.

43 International Fund for Agricultural Development (IFAD); World Food Programme (WFP); African Development Bank (AfDB)

44 Asian Development Bank (AsDB); Islamic Development Bank (IsDB); Capital Asset Fund (CAF)

45 European Bank for Reconstruction and Development