Project Cost Structure and Financing Plan

Sources of Funding

Over the next few months, the GTLP aims to mobilize a total of USD 5 billion of funding from the Participants. In recognition of the different approval procedures of each Participant, these resources will be mobilized in 3 phases:

• USD 2.5 billion by June 2009,
• USD 1.6 billion by July 2009, and
• The remaining USD 900 million from other Participants by August 2009.

In its role as sponsor for the GTLP, the IFC has spearheaded resource mobilization efforts. As shown in the table below, a combination of firm and tentative commitments from prospective Participants provides a strong indication of support for the Program; discussions with other regional Participants such as the Inter-American Development Bank (IADB), the Islamic Development Bank (IsDB) and the Asian Development Bank (AsDB) are underway. Although USD 5 billion is the funding objective, failure to reach this target would not jeopardize the viability of the overall Program but would lessen its potential impact.

                              Prospective Participants and their Funding Commitments

                                                                     (USD Millions)

Participant	Amount	Share
International Finance Corporation	1,000	20%
Commonwealth Development Corporation	450	9%
Canada	200	4%
Andean Development Corporation (CAF)	100	2%
Netherlands MOFA	50	1%
African Development Bank	500	10%
European Investment Bank (outside Europe)	250	5%
Proparco	200	4%
OPEC Fund for International Development	100	2%
Others	1,950	39%
Korea	200	4%
Total	5,000	100%
Japan Bank for International Cooperation*	1,500

* Through parallel co-financing

The GTLP seeks to leverage the Participants’ resources through the 40:60 risksharing arrangement with UBs. Through this mechanism, the USD 5 billion from theGTLP can catalyze combined direct financing of USD 12.5 billion. This can be further leveraged by redeploying these resources as soon as the original trade finance transactions mature. Assuming that the USD 12.5 billion of combined GTLP resources can be redeployed 4 times over the 3-year projected life of the Program, the total funding generated by the Program could reach USD 50 billion.

Uses of Funding

The IFC has estimated an indicative geographical distribution of GTLP resources based on demand and the expressed regional interests of Participants. As shown in the table below, Africa (including North Africa) is expected to receive the largest share of Program resources, representing approximately one-third of the total USD 50 billion catalyzed through the GTLP.

                            Indicative Distribution of GTLP Resources

                                                                   (USD Millions)