NDF - Financing for climate change and development projects

Annual Report 2016 - NDF emphasises an agile and innovative approach to financing through a greater variety of financial instruments

Photo: Erick Kaglan, Togo
Photo: Erick Kaglan, Togo

Read about NDF’s activities during 2016 in the newly published Annual Report

The NDF Annual Report 2016 can be found in PDF here. It can also be read online.

During 2016, the Board approved financing for 10 new interventions of EUR 54.3 million in total. The individual contributions ranged between EUR 3 and 11 million.

Significantly, and in line with the 2015 NDF strategy that emphasises flexible and innovative use of financing instruments, the interventions included a loan project which blends a concessional loan with grant assistance, and an equity stake assumed by NDF. These were the first non-grant operations that NDF has engaged in since 2005. Around 22% of the new commitments utilised other instruments than grants.

Disbursements to climate projects in 2016 amounted to EUR 34.1 million (2015: EUR 37.0 million), out of which EUR 22 million were to joint co-financing projects, EUR 6 million as equity and EUR 6.1 million to parallel co-financing projects.

2016’s annual project performance rating shows that approximately 86% of projects are classified as highly satisfactory, satisfactory or just adequate regarding progress towards objectives, overall project progress and risk. Final ratings show overall satisfactory results with the 10 climate projects that reached completion during the year.

At the end of the year, NDF’s project portfolio (climate projects, excluding NCF sub-projects) consisted of 95 projects up to a total volume of EUR 283.8 million. Of these projects, 78 projects (EUR 264.5 million) were in various stages of implementation in 16 countries across Africa, Asia and Latin America.

NDF received international recognition once again when the International Center for Climate Governance gave an award to the NCF-funded project Clean Energy Promotion through Microfinance in Ethiopia.

In 2016, NCF was returned to direct NDF administration. Seven grant agreements were signed for the fifth call for proposals and the first call for proposals under direct NDF administration, NCF 6, was carried out. Fourteen projects under NCF 6 have been selected for contract negotiations. During 2016, NDF’s Board of Directors approved a new commitment of EUR 20 million to NCF, which will result in the launch of three new NCF calls for proposals during a three-year period.