SAARC funding to be discussed in Kathmandu

The SAARC Secretariat will organize a workshop on Feb. 20 to 21 to discuss the various aspects of the proposed creation of a regional funding mechanism for SAARC regional programs and projects, the SAARC Secretariat said Sunday.

With the gradual shift of focus on regional projects, the SAARC Member States have been exploring various options for funding regional projects, the SAARC Secretariat said in a press release.

The 13th SAARC summit and its preceding meetings approved, in principle, the creation of the proposed SAARC Development Fund ( SDF) with three windows, social, economic and infrastructure.

As the modalities and issues related to establishment of such a fund are extremely complex, Asian Development Bank (ADB) has come forward with its support to organize a workshop to take up these issues.

Financial experts from the region, resource persons from ADB and other financial institutions will attend the workshop, according to the release.

It is expected to initiate a process of informed exchange of expert opinion on the feasibility, viability, and modalities for the SDF.

The workshop has the objective of providing the SAARC financial experts greater insights in all relevant questions towards the creation a sound, adequate and effective financing mechanism of SAARC projects and programs, according to the release.

The workshop will allow sharing of experience of other regions on generation and mobilization of fund, implementation of regional projects, and their prospects and challenges.

Besides, it will discuss ways and means to reduce risks associated with such projects, and exchange views on the operational aspects of the proposed SDF.

The examination of issues will continue when the SAARC financial experts formally meets on Feb. 23 to 24 in Kathmandu to draw the broad outlines and contours of the proposed SDF.

The SAARC finance ministers during their meeting in March are expected to consider the recommendations of the workshop and the financial experts.

The ministers will then finalize recommendations on the creation of the SDF, as the umbrella funding mechanism for SAARC regional projects.

Source: Xinhua