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Sub-National Technical Assistance Builds Creditworthiness |
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The PPIAF Sub-National Technical Assistance Program (SNTA) was created to help sub-national entities improve their creditworthiness so they can access market-based financing on their own account without sovereign guarantees. The goal of this program is to help mobilize local capital for improvements in infrastructure services and promote the development of local financial markets.
Responsibility for meeting the enormous demand for new and better infrastructure services in developing countries increasingly has shifted from national to sub-national entities. But these entities, typically local governments or utilities, often lack the policy and institutional frameworks and especially the financial resources to fulfill this responsibility. Filling this financial gap is not easy. Traditional sources of sub-national financing require sovereign guarantees, which are often inadequate because of fiscal constraints at the national level or policies to promote local financial accountability.
The Sub-National Technical Assistance Program provides technical assistance grants to help support local governments and other sub-national entities:
- Access financing for infrastructure improvements from banks or bond markets without relying on sovereign guarantees
- Obtain a credit rating or improve their rating from a recognized credit rating agency
- Take measures to enhance their creditworthiness to potential lenders with a view to achieving one of the above.
Local governments with responsibilities for delivering infrastructure services, along with utilities, authorities, special districts, and state-owned enterprises, are eligible to receive the grants. Development finance institutions with a primary focus on infrastructure lending are also eligible.
Click here to see FAQs about the Sub-National Technical Assistance Program or click here to see the current list of approved activities.
An application form for grants can be downloaded here in Word format, or request a copy by sending an email to snta@ppiaf.org.
To view the SNTA brochure, click here for English, French and Spanish.
For more information send an email to snta@ppiaf.org or call 1-202-458-5588.
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