The IFC was established in 1956 and is now the largest public source of financial investment for private sector projects in developing countries. Unlike the grass-roots development efforts pursued by the IBRD and IDA, IFC investment is often used for projects such as building hotels or power plants, where finance and trade are more heavily involved. IFC provides private sector investment, helps companies acquire additional financing in international markets, and provides technical advice and assistance.
Examples of IFC work include:
- In Colombia, the IFC is financing the first stage of development of oil fields in Middle Magdalena Valley, providing loans totaling $30 million from its own account and organizing a combined loan of $25 million for a number of other private participants.10
- In Azerbaijan, Georgia, and Turkey, the IFC is helping finance the construction of an oil pipeline to move up to a million barrels of oil per day from Baku, in Central Asia, to Ceyhan, on Turkey’s Mediterranean coast.11