The scheme will make it much easier for Danish businesses to bid for large public contracts in developing countries, such as energy, water and climate investments in the USD 50-70 million band.
Annette Vilhelmsen, Danish Minister for Business and Growth, says:
"The fast-track scheme builds on Denmark's strengths, such as clean water, renewable energy and environmental technology, and will therefore help not only to promote sustainable development in some of the world's poorest countries but also create new jobs and growth in Denmark."
Christian Friis Bach, Danish Minister for Development Cooperation, adds:
"The fast-track scheme is a win-win-win. It will help to alleviate poverty and boost development in some of our important partner countries where large projects need to be financed; it will make Danish businesses' solutions more attractive by improving their chances of quickly and efficiently combining soft loans with export credits in developing countries; and it will ensure the transfer of climate-friendly and green solutions that Denmark can supply and developing countries need."
Eight countries pre-approved
The fast-track scheme, set up jointly by Danida Business Finance and EKF, is based on established procedures. It therefore supplements the two organisations' existing facilities, which will all continue unchanged.
The partnership between EKF and DBF will ensure that Danish businesses are always able to offer foreign buyers suitable finance for a project, which is often crucial in the developing world.
A total of eight countries have been pre-approved for the new fast-track scheme: Bangladesh, Burkina Faso, Ghana, Kenya, Mozambique, Nepal, Tanzania and Uganda. Other countries may also be included based on a case-by-case assessment.