chapter7

CHAPTER-VII

SAARC FUNDS
-South Asian Development Fund (SADF)
-SAARC-Japan Special Fund

SAARC FUNDS

1. South Asian Development Fund (SADF)
The idea of establishment of South Asian Development Fund (SADF) was mooted at the Sixth SAARC Summit in Colombo in December, 1991 to mobilise the global surpluses for the development of South Asia. The basic objective to establish SADF was to provide finances for industrial development, poverty alleviation, protection of environment and balance of payments support. The SADF was formally established in 1996 with the merger of the two earlier SAARC Funds namely: SAARC Fund for Regional Projects (SFRP); and SAARC Regional Fund (SRF).

The Fund is aimed at developing common economic interests among SAARC Member Countries by promoting economic projects involving more than one Member County.

SADF has three Windows for (i) Identification and Development of Projects (WIDFP); (ii) Institutional and Human Resource Development Projects (WIHRDP); and (iii) Social and Infrastructural Development Projects (WSIDP).

The Fund has provided finance for conducting feasibility studies for 13 projects, so far, under Window I.

2. SAARC-Japan Special Fund
The SAARC-Japan Special Fund has been established through a Memorandum exchanged between the two sides in Kathmandu on 27 September 1993.

The Fund established entirely with contribution of the Government of Japan consists of two components. The allocation under Component-I is to be used to finance selected programmes/ activities identified and managed by the member states. Component-II is for the programmes/activities identified and managed by the Government of Japan.