B. Hie International Development Association (IDA) is a part of the World Bank Group; established

In 1960. It gives long-term loans to governments at little or no interest for projects in the poorer of the

Developing countries. It is intended for investments for which finance cannot be obtained through other

Channels without bearing uneconomically high interest charges and is mainly for items of infrastructure,

E.g. roads or power supply. The repayment period for the loan may be up to fifty years with repayments

being delayed by up to ten years. The total funding of the IDA in 1995 was $101 billion.

C) The International Finance Corporation (IFC) was established in 1956 and had 176 Members

in 2004 with committed portfolio of $23.5 billion (included $5.5 billion in syndicated loans) and

fiscal 2004 commitments of $4.8 billion for 217 projects in 65 countries.

IFC promotes economic development through the private sector. Working with business partners,

It invests in sustainable private enterprises in developing countries without accepting government

Guarantees. It provides equity, long-term loans, structured finance and risk management

Products, and advisory services to its clients. IFC seeks to reach businesses in regions and countries

That have limited access to capital. It provides finance in markets deemed too risky by commercial

Investors in the absence of IFC participation and adds value to the projects it finances through its