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On 8 November 2004, the OECD countries participating in the Arrangement on Officially Supported Export Credits (the “Participants to the Arrangement”) agreed on the implementation of the Agreement on Untied ODA Credits Transparency (the “Agreement”) for a two-year trial period, with the aim of providing greater transparency and efficiency in the use of untied aid credits to developing countries by inviting public bidding from firms wishing to participate in projects financed by aid.

This trial period has since been extended twice - in November 2006 and in November 2008. In November 2010, the Participants to the Arrangement agreed a further extension for another two years, i.e. until the end of 2012.

Untied aid credits are development assistance loans that can be used to pay for purchases of goods and services from any country, rather than just the country providing the loan. The Agreement is designed to create more effective competition in the use of such loans, so as to allow developing countries themselves to choose the goods and services they need at the most advantageous price.

The Participants to the Arrangement agreed to enhanced transparency for these loans, which are increasingly important modes of development assistance, in the hope that this will improve their effectiveness and further promote their use. Participants to the Arrangement include Australia, Canada, all member states of the European Union, Japan, Korea, New Zealand, Norway, Switzerland and the United States.

Since 1 January 2005, untied aid credits of SDR 5 million (Special Drawing Rights) or more are to be publicly notified 30 days before the start of a bidding period, under a system administered by the OECD, in order to facilitate the widest possible participation in these bids. In addition, the Participants to the Arrangement provide information, on an annual basis, on the outcome of each bid. To facilitate international competition still further for these projects, the Participants to the Arrangement have also agreed that projects financed with untied aid credits should be subject to a minimum bidding period of 45 days.

For further information regarding the Agreement to Open Bidding for Projects Financed by Untied Aid Credits, please contact Steve TVARDEK in the OECD's Trade and Agriculture Directorate [email: Xcred.secretariat@oecd.org  tel. (33) 1 45 24 89 10].

The Untied ODA Notifications Database