The Fund for the Promotion of Development (FONPRODE) is a one of the instruments at the service of the entire Spanish Cooperation system with the main objective of eradicating poverty, reducing social inequalities and promoting equality of gender, the defense of human rights and the human and sustainable development of impoverished countries.
The FONPRODE is designed as one of the main financial instruments of Spanish Cooperation, administered by the Spanish Agency for International Development Cooperation (AECID). FONPRODE guarantees the response capacity of the Spanish Cooperation to the needs and objectives set by our development cooperation policy, making it one of the main channels of implementation of development aid.
The FONPRODE, in force since 2011, can finance nonrefundable and reimbursable operations, both debt and capital. The portfolio includes a large number of non- reimbursable and reimbursable transactions.
It was established under ACT 36/2010, October 22, 2010 and it is managed by the Ministry of Foreign Affairs and Cooperation, through the Secretariat of State for International Cooperation. The rules and regulations were approved in 2011 (Royal Decree 845/2011). The Financial Agent, the Instituto de Crédito Oficial (ICO) is a state- owned bank attached to the Ministry of Economic Affairs and Competitiveness.
To this end, FONPRODE can finance non-reimbursable operations and operations of a reimbursable nature, both debt and capital, such as:
- projects and development programs, as a donation from State to State;
- financial contributions to development programs and multilateral international development agencies;
- global contributions and funds which the main objective is the fight against poverty;
- contributions to funds and private investment operations within the priority sectors for Spanish cooperation;
- contributions to microfinance programs.
Arrangement and administration:
As the Government’s Financial Agency, ICO, in the name and on behalf of the Spanish Government and on the State’s account, will arrange the agreements to be signed with the beneficiaries. At the same time, ICO will provide services relating to technical execution, accounting, cash, payment agent activities, control and, in general, all those of a financial nature.