VIII. TRADE AND PROJECT FINANCING Lesotho has a modern if heavily regulated banking sector. Three commercial banks, one a parastatal, have a wide variety of correspondent relationships with U.S. banks and can assist with trade financing arrangements. Barclay's Bank PLC and Standard Chartered Bank PLC operate local commercial bank branches, while Lesotho Bank provides the range of commercial and credit facilities as a Lesotho-based institution. Trade financing is available locally. The Central Bank of Lesotho and LNDC operate a "Comprehensive Export Financing Scheme", offering export credit guarantees, pre-shipment credit, post-shipment credit, and related mechanisms up to 180 days on either side of shipment. Loans and guarantees for exports to Lesotho are available from the U.S. EXIMBANK. There are no special EXIM conditions for public sector and "highly-creditworthy" private transactions; other private transactions may not exceed five year amortization and seven years total term. EXIM also can provide short-term comprehensive and political insurance. Project financing has in recent years been sourced from regional multilateral institutions such as the Development Bank of Southern Africa and the African Development Bank. The AfDB is financing part of the hydroelectric component of the Lesotho Highlands Water Project and the construction and rehabilitation of several rural health care facilities in 1994. Multilateral Development Banks: 1. The International Bank for Reconstruction and Development (IBRD), a member of the World Bank group makes long-term loans at market- related rates primarily to developing nations. The International Development Agency (IDA), the soft loan window of the World Bank, lends to the poorest of the development countries. Both the IBRD and IDA work to promote broadly based economic growth and frequently focuses on structural adjustment, sectoral reform and individual project lending and operate under the same set of procurement guidelines. Typically the World Bank does not finance the entire cost of a project. Rather, it finances the components of a project purchased with foreign exchange, which on average is about 40 per cent of the total project cost. Each project may cover a wide variety of sectors and can involve anywhere from one to hundreds of separate contracts providing export business opportunities for suppliers worldwide. CONTACTS: U.S. Department of Commerce Liaison to the U.S. Executive Directors Office International Bank for Reconstruction and Development 1818 H. St., NW Washington D.C. 20433 Tele: (202) 458-0118 Fax: (202) 477-2967 Office of Multilateral Development Banks U.S. Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927 2. The African Development Bank (AFDB), headquartered in Abidjan, Cote d'Ivoire, is an international financial institution created by Africans in 1963 to promote the economic and social development of its member African countries. Founded with initial capital resources of USD 250 million, it has authorized capital today of over USD 22.3 billion. The bank belongs to the African Development Bank Group (ADBG) which also includes the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). The AFDB makes loans to development projects in 51 countries in Africa. The ADB provides development financing on concessionary terms to the poorer African member countries. The NTF was established by the Government of Nigeria in 1976 to assist in the development efforts of the poorer ADB members. The ADFB has 21 non-regional members. The United States joined in 1982. CONTACTS: U.S. Department of Commerce Liaison Office to the U.S. Executive Directors Office African Development Bank Ave. Joseph Anoma 01 B.P. 1387 Abidjan 01, Cote D'Ivoire Tele: (225) 21-46-16 Fax: (225) 22-24-37 Office of Multilateral Development Banks U.S. & Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington, D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927