Financing modalities
Commitment description:Complementing grant financing, Luxembourg’s Development Cooperation will flexibly apply a diversified and innovative set of financing instruments and modalities to respond to specific country needs and thematic areas, including through the leveraging of partnerships with Multilateral Development Banks and the private sector, and to support blended finance instruments such as guarantees and risk mitigation instruments. This will include an increased focus on impact investing, notably through inclusive finance solutions. Financial resources will remain untied. Reflecting a key commitment of the development effectiveness agenda, Luxembourg will seek to deliver its programmes and projects without tying them to national companies by assigning its contracts based on open-bidding procedures.
Mode of engagement:
- Policy and guidanceThrough its Development Cooperation, Luxembourg pledges to provide consistent and strong financial support, by:
Mobilize the required financing to finish the ICPD Programme of Action and sustain the gains already made(6) Using national budget processes, including gender budgeting and auditing, increasing domestic financing and exploring new, participatory and innovative financing instruments and structures to ensure full, effective and accelerated implementation of the ICPD Programme of Action.
