The Confederation of Danish Industries (DI) is worried about the government tapping money from the aid-funded risk capital fund IFU, which was established to invest in developing countries.

The government has decided to take out more money than it originally put into IFU and to use it on projects in Denmark.

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Tanzania suspends biofuel projects, pending new rules

The Tanzanian government has suspended implementation of biofuel projects that have not yet received approval from authorities. Meanwhile, the Swedish biofuel company SEKAB eyes massive aid financing for projects in East Africa.

The Swedish government has approved a new set of private sector tools in Swedish aid, which are unique in a Nordic context. They include untied mixed credits and a guarantee scheme for funding infrastructure projects.

The future of 16 projects Norway has committed to finance, mostly in Vietnam, is up in the air. The Norwegian Ministry of Trade and Industry has decided not to allow the guarantee institute GIEK to cover the loans that partly finance the projects.

The number of approved mixed credit projects in Denmark is dropping compared with the last few years. The contract value of new projects funded by the aid-financed export scheme last year was only DKK 486 million compared to more than DKK 2 billion in the record year 2005.

The Swedish biofuel company SEKAB wants a Sida loan guarantee for its operations in Tanzania. An initial figure of USD 20-25 million (about SEK 200 million) is indicated. SEKAB also wants aid-financed investment funds to provide up to EUR 1 billion in equity.

Danish industry criticises government for tapping IFU’s capital

Business

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