The Helsinki-based Nordic Development Fund (NDF) faces drastic challenges. An evaluation proposes that NDF should be untied and turned into an infrastructure specialist. The donors’ tendency to shift to budget support and pooling of resources is likely to undermine NDF, which focuses on projects. The report states that NDF will have to adjust to a new aid agenda or be closed down.
One of NDF’s great assets is its Nordic umbrella network of suppliers. According to the evaluation by Nordic Consulting Group, the Fund benefits from promoting Nordic development aid priorities, while acting together with regional banks or the World Bank in countries where the Nordics also have bilateral presence.
Norfund is fully behind SN Power’s recent decision to invest in the 192-megawatt Allain Duhangan hydro-electric project in Northern India. (See DT 17/04) The decision was made public a week after the International Finance Corporation announced its involvement in the project.