7154. PSD DGGF

The NCEA advises on ESIA for projects under consideration for funding by the Dutch Government's Private Sector Development facilities

Significant details

In its current policy on development cooperation, the Dutch government emphasises the need to focus not only on aid but also, and increasingly, on trade. As a result, more international cooperation resources are allocated to facilities that finance public and private sector or joint public –private partnership projects in developing countries and emerging markets. These Private Sector Development (PSD) instruments include:

  • Two facilities for development of public infrastructure: Develop2Build (D2B) and DRIVE. The third infrastructure facility, ORIO, has been closed for new applications, but approval and monitoring processes for projects that have already been accepted are still ongoing;
  • Facilities for Sustainable Entrepreneurship and Food Security (FDOV) and the Sustainable Water Fund (FDW);
  • The Dutch Good Growth Fund (DGGF), which provide financing for Dutch small and medium enterprises.

All of these facilities are managed and implemented by the Netherlands Enterprise Agency (RVO), and are open to investments in up to 68 countries. For many projects, if not most, an ESIA will be undertaken. Often ESIA is obligatory according to the legislation of the country where the project will be implemented. But ESIA is also central to the IFC Performance Standards, which are an important benchmark for the above mentioned facilities.

The NCEA provides fit-for-purpose advice for each of the RVO PSD facilities where ESIA plays a role in risk management. Key activities are: 

  • Screening of project proposals against the national ESIA regulations and the IFC performance standards; and
  • Advice on specific ESIAs for projects under consideration for financing. This includes review of Terms of Reference and ESIA reports, but also advice on ESIA implementation in relation to project development; and on monitoring and implementation of an ESIA/environmental and social management plan. 

Parties involved

Members of the working group

Technical secretary: Leyla Özay, MSc

Further details

Last modified: 19 Dec 2023