COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)

ANNEX II
Definition of Types and Terms of Official Development Assistance
Definitions of Types of Assistance Official Development Assistance (ODA) - Refers to financial or technical resources (grants and concessional loans) extended by governments of developed countries and by official multilateral agencies to developing countries. These financial and non-financial inflows to developing countries are provided by official agencies, including state and local governments, or by their executive agencies. In order to be classified as ODA, each transaction must conform to the following conditions: (i) ODA is administered for the promotion of the economic development and welfare of developing countries as its main objective; (ii) ODA is concessional in character and conveys a grant element of at least 25 percent. Free-Standing Technical Co-operation (FTC) - The provision of resources aimed at the transfer of technical and managerial skills and know-how or of technology for the purpose of building up national capacity to undertake development activities, without reference to the implementation of any specific investment project(s). FTC includes pre-investment activities, such as feasibility studies, when the investment itself has not yet been approved or funding not yet secured. Investment-related Technical Co-operation (ITA) - The provision of resources, as a separately identifiable activity, directly aimed at strengthening the capacity to execute specific investment projects. Included under ITC would be pre-investment-type activities directly related to the implementation of an approved investment project. Investment Project Assistance / Capital Assistance (IPA) - The provision of financing, in cash or in kind, for specific capital investment projects, i.e., projects that create productive capital which can generate new goods or services. Investment project assistance may have a technical co-operation component. Programme/Budgetary Aid or Balance of Payments Support - The provision of financial resources in the context of a broader development programme and macro-economic objectives and/or which is provided for the specific purpose of supporting the recipient’s balance-of-payments position and for making available foreign exchange. This category includes non-food commodity input assistance in kind and financial grants and loans to pay for commodity inputs. It may also include resources ascribed to public debt forgiveness. Food Aid - The provision of food for human consumption for developmental purposes, including grants and loans for the purchase of food. Associated costs such as transport, storage, distribution, etc., are also included in this category, as well as donor-supplied, food-related items such as animal food and agricultural inputs related to food production, when these are part of a food aid programme. Emergency and Relief (Humanitarian) Assistance - The provision of resources aimed at immediately relieving distress and improving the well-being of populations affected by natural or man-made disasters. Food aid for humanitarian and emergency purposes can be included in this category. Emergency and relief assistance is usually not related to national development efforts nor to enhancing national capacity. Although it is recorded as Official Development Assistance (ODA), its focus is mainly on humanitarian assistance and not on development co-operation as such. Definitions of Terms of Assistance: Grant - The provision of funds by a donor that does not require reimbursement or repayment from the Royal Government of Cambodia. This includes “grant-like” flows, i.e. loans for which the original commitment stipulates that service payments (in local currency) are to be made into the account in the borrowing country to the benefit of that country. Grants are normally provided in the form of the provision of the services of technical experts and/or consultancy services, fellowships/training, equipment, and commodities. Loan - The provision of resources, excluding food or other bulk commodities, for relief or development purposes, including import procurement programmes, which must be repaid according to conditions established at the time of the loan agreement or as subsequently agreed. Concessional Loan - The provision of funds by a donor as a loan which conveys a minimum 25 percent grant element, thus qualifying it as an ODA transaction; It is also commonly referred to as a “soft” loan. Non-Concessional Loan - Any other funds being provided by the donor that must be reimbursed or repaid over a period of time under terms which do not make it eligible as ODA. Beneficiary Institution - The organization receiving the assistance of the development activity. There may be several such beneficiary institutions for any one project. A recipient government department or ministry may be a beneficiary institution. Co-Financing - The modality of cooperation by which financing of projects and programmes is provided from more than one source, other than by the recipient government. Co-financing arrangements may consist of third-party cost-sharing or a trust-fund modality. Commitment - A firm obligation expressed in an agreement or equivalent contract supported by the availability of public funds, undertaken by the donor, to furnish assistance of a specified amount under agreed financial terms and conditions for specific purposes, for the benefit of the recipient country. This term also refers to the magnitude or the amount of ODA actually made available by donors or lending institutions to the Government of the Cambodia. Commitments are normally made on an annual basis. For programming purposes, a distinction is made between programmed commitment which refers to amounts for specific programmes and projects with loan/ grant agreements but are not yet ongoing, and indicative commitments and agreements to be signed within the year which refers to amounts covering remaining agreements. Disbursements - represent the actual international transfer of financial resources, which may be recorded at one of several stages: provision of good and services; placing of funds at the disposal of the recipient in an earmarked- fund or account; payment by the donor of invoices on behalf of the recipient, etc. Donor - The source of funds for development assistance: multi-lateral, bi-lateral and non-governmental organizations. Executing Institution/Agency - The institution actually executing or implementing the project, from its inception to its completion. This includes the delivery of inputs as well as ensuring that the project meets its objective. The executing agency can be the donor itself, the recipient Government, or an intermediary institution executing the project on behalf of the donor. A subcontractor is not an executing institution but an implementor of an activity for the executing institution. Non-Governmental Organization (ngo) - A private, voluntary, not-for-profit organization, supported at least in part by voluntary contributions from the public or from other donor institutions. Reporting Year - The Development Cooperation Report (DCR) collects and presents information for the preceding year; thus, the 1999/2000 DCR contains disbursements data for the calendar year 1999. Responsible Ministry/ Agency - The entity in a recipient country's government which has the overall responsibility for the project or the recipient government counterpart of the executing institution. Sector - The substantive area in which the project or activity has been classified using a standard classification system.
\| Content \| Back \| Top \| Next \|