Other than financing techniques, there is another term known as co-financing. Basically on official terms, the co-financing is concerned with designing of certain arrangements according to which more than one parties collaborate and contribute towards funding. This procedure and agreement is carried on and followed on international levels.
Financing naturally refers to the expenditure of funds and capital for a certain project on some specific terms and conditions and this helps in turn in getting the profit. Sometimes the profit is divided while at other times, it is disbursed as per requirements of the pact or agreement made between the participating sections and classes.
Arrangements of co-financing
According to the co-financing arrangements and pacts made by the different parties, there are one or more governments which finance a specific project. Their funding is supervised by a neutral body such as an agency of United Nations or certain regional bodies like Asian Development Bank. The spending of funds and money by one or more governments takes place in partnership with one another. These kinds of arrangements are named as the official co financing arrangements. Usually the partnership of funding parties for a specific project or a program is supervised by any developing member country of the co-financing agreements.
Example of co-financing
Presently the biggest example of co-financing is being observed in the form of projects and contracts of the Asian Development Bank, which is not only involving the regional countries in partnership of the co-financing projects but also invites other countries as well. In this way partnership with many different funding agencies is made and in this way it becomes the bilateral or even multilateral financing. This becomes the extended part of co-financing. Various projects and programs have been assisted by the governing and financing bodies. For example the Asian Development Bank is actively participating in the financing projects ad there by bringing prosperity among common people by means of their projects.
Assistance of financers
There are various forms in which the assistance is provided to the financers. There is an official development assistance provided by the financers. The donor governments prepare proper plan of investment and funding and in the light of this planning and budget allocations are made.
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