To eliminate the asymmetry of expertise and the imbalance of knowledge in addressing the challenges posed by vulture funds and in an ancillary manner complex commercial transactions, especially relating to natural resources, the Facility will have two main program areas:
the provision of a legal advisory services and litigation expertise against vulture funds and
a capacity enhancing and capacity building programme.
- The activities of the Facility would be implemented over a fourteen year period between 2008 and 2022. A sunset date of 2022 is proposed based on the goals and objectives of the Facility:
- according special attention to various Bank initiatives such as those aimed at successfully defending litigation against vulture funds and keeping resources in the continent for poverty reduction ;
- giving particular consideration to Bank initiatives on debt relief and assistance for HIPCs, fragile states, and post-conflict countries as well as the increasing number of lawsuits filed annually by vulture funds against RMCs;
- allowing for the average length of time for such lawsuits; and
- estimating a reasonable timeframe for appropriate capacity building. A provision in the draft constitutive instrument of the Facility empowers the Governing Council with authority to expand or reduce the Facility’s period of existence.
- The ALSF shall concentrate its work on two types of activities:
- Vulture Fund Litigation
- inancing legal fees on behalf of, or for, fragile and post-conflict and HIPC RMCs;
- dentifying and selecting law firms and negotiating standard reasonable fee agreements for the above activity;
- Developing a database and systems to make available and easily retrievable precedent setting decisions in vulture fund cases against sovereign debtors; and
- Carrying out any other activity relevant to achieving this purpose.
- Assistance in the Negotiation of Complex Commercial Transactions, especially in the Natural Resources Sector
- Researching and locating of legal experts who can assist with this purpose;
- Providing legal advice to eligible RMCS for a fee to assist with negotiations of such transactions; and
- Carrying out any other activity that may further advance this purpose.