Statement given by Dr. Sunil Motiwal, Director,SAARC Development Fund at 12th Round Table Meeting on 11-12,December 2013,Thimphu, Bhutan.
The SAARC Development Fund (SDF) Secretariat has been inaugurated by the Heads of State/Governments of SAARC Member States in April 2010 during the 16th SAARC Summit in Thimphu.
The primary objective of the SDF is:
(i)to promote the welfare of the people of SAARC Region,
(ii)to improve the quality of life, and
(iii) to accelerate economic growth, social progress and poverty alleviation in the SAARC Region.
To support the above objectives the SDF Secretariat will, amongst other, (i) identify, study prospect and approve projects, (ii) finance approved projects in the SAARC Member States, (iii) Leverage funding i.e arrange and mobilize financing and/or co-financing projects, (iv) provide grants for projects of strategic importance to SAARC, (v) provide financial and technical assistance, and (vi) manage the Fund.
The SDF has three financing windows: (i) Social; (ii) Economic; and (iii) Infrastructure. Projects under Social Window aregiven grants and technical assistance if they meet the following criteria:
(i)projects involving all SAARC countries,
(ii)projects involving more than two but not all SAARC Member countries,
(iii)projects located in one or more SAARC countries, of significant economic interest for three or more SAARC countries, and
(iv)Projects with significant focus on poverty alleviation, as envisaged under the social window, in any SAARC country having thematic linkage with more than two SAARC Member States as part of a sub-regional project.
Status of SDF Fund
As of November 30, 2013 SDF has received USD 345,272,389.32 which consist of Capital Subscription of Member States of USD 209,668,124.19, the Voluntary Contribution from the Government of India of USD 100,000,000.00, transfer from SADF of USD 7,095,000.00, Voluntary Contribution from People’s Republic of China of USD 600,000.00 and Contribution of USD 328,392.04(in kind) from the Royal Government of Bhutan. The Accumulated Reserve from the funds is USD 27,580,873.09.
SDF Funded Projects:
The SDF Social Window projects are aligned with SAARC Development Goals that include livelihood, health, education and environment SAARC Development Goals. The projects that SDF has funded so far are designed to meet important and crucial social and economic needs of the SAARC member states. The SDF project portfolio range from strengthening the livelihood of the home based workers, addressing the needs of small farmers, reaching connectivity and content of e-governance to rural folks, reducing the infant mortality and steps at ending violence against children in South Asia.
Funding Position in Bhutan: