Title: Technical Assistance to support trade facilities

Objective: Building local institutional capacity in the area of credit assessment and trade procedures, improving the local environment to facilitate trade, and assisting local implementing agencies in the early stages of implementation

Description: The regional nature of the proposed project will make technical assistance more effective thanks to economies of scale and shared knowledge and experience in participating countries.

Local Implementing Agencies: Underwriting, Credit Assessment, and Operating Costs

Staff training and supervision would be a critical component in the first stages of implementation as the local implementing agencies would require technical assistance to build their expertise in credit insurance and credit assessment. The institutional capacity of the implementing agency would be assessed to determine technical assistance needs. It is expected that a resident consultant would be required in most countries for a period of 6 to 12 months. Countries with established export credit agencies might need less assistance. Providing assistance in setting up and/or strengthening local agencies will set the scene for future partnerships for commercial domestic and export credit insurance on a sustainable basis.

Match Making

Donor funds could be earmarked to finance consultants that would identify trading partners for local exporters to assist them in expanding their markets and client base.

Export Procedures

Technical assistance could finance experts in export procedures to train local companies in export documentation and procedures including bills of exchange, documentary collections, letters of credit, documents and delivery terms and collateral.

Quality Control

In order to expand their exports, local companies need to be able to demonstrate to their buyers that the quality of their goods is up to standard. Technical assistance could finance a quality control company to (i) provide quality control services and certify the level of quality of exported goods, (ii) train people locally to provide quality control and certification services, and (iii) facilitate partnership arrangements with European inspection and quality control corporations.

Database on local Companies

An experienced credit information bureau could assist local implementing agencies in creating and developing a database on local companies in order to facilitate risk taking in the medium term thanks to access to reliable and up-to-date information. The provision of quality financial information on enterprises and local conditions to allow external agencies to identify viable transactions is key to commercial credit insurance agencies developing an interest and appetite to do business in the market.

Preparation Status: This kind of assistance could be provided relatively quickly based on experience from World Bank-financed projects in Bosnia and Herzegovina and Albania.

Rationale for Donor Support: The development of cross border trade and building closer trade links to the European Community is a key element in the rationale for the stability pact. The proposed technical assistance will support this objective.

Albania Euro 1 million
Bosnia and Herzegovina Euro 2 million (Euro 1 million already allocated under World Bank- financed Enterprise Export Facility Project)
FYR Macedonia Euro 1.5 million
Croatia Euro 2 million
Bulgaria Euro 1.5 million
Romania Euro 2 million

Financing Plan: Part of the technical assistance funds would be disbursed in calendar year 2000 and the balance in year 2001.

Borrower/Financial Beneficiary: The Borrower/Financial Beneficiaries would be the participating countries.

Major Sector/Project issues: None

Gerhard Pohl, Lloyd Edgecombe, Marie-Sophie Tar – World Bank

Gerhard Pohl (1-202) 473-2979
World Bank

Lloyd Edgecombe (1-202) 458-5982
World Bank

Marie Sophie Tar (1-202) 473-5790
World Bank