In order to encourage increased private investment in the essential infrastructure of the poorer developing countries, a group of like minded donors established the Private Infrastructure Development Group (PIDG). ADA joined this group in 2006. PIDG has set up a number of facilities to help mitigate constraints to PSI in infrastructure. Amongst these is the Technical Assistance Facility (TAF), which is the subject of this project. The goal of TAF is to improve infrastructure services for the poor (MDG 7, targets 1-3) and to increase Government's capacity to introduce public private investment where appropriate, in an open, rule based and non-discriminatory way (MDG 8, target 1). In order to achieve its goal, the TAF has established two operational windows which provide grants to the various other PIDG facilities, i.e.
Window 1 to fund studies intended to guide governments on options for financing of infrastructure, advice and training on the design and implementation of specific reforms, support to the design and implementation of pioneering transactions
Window 2 to support the development of capital markets in the counties in which the PIDG is operating, specifically in relation to the work of GuarantCo (the PIDG local currency guarantee facility).
It is now proposed to open a third window, i.e.
Window 3 to fund the provision of output based aid support to projects that justify such inputs in order to ensure that benefits reach the poor.