PIIF

PRIVATE SECTOR ASSISTANCE

1. Name of Organisation : Pacific Islands Investment Facility (PIIF)

(see also International Finance Corporation (IFC) and South Pacific Project Facility (SPPF))

2. Assistance Scheme/Program :
IFC recognised that there were viable private sector investment opportunities that it could assist, which were of a smaller scale than it would normally participate in, and where a shortage of equity of risk capital makes it difficult for SPPF to develop bankable financial proposals.

Working in close collaboration wit the SPPF, IFC established PIIF, to cater for these opportunities. PIIF considers investments in commercially viable projects having a total project cost of USD$0.5 to USD$5 million.

3. Criteria :

Investments are only made in private sector controlled commercial entities registered and operating in IFC’s Pacific Island member countries. These include Fiji, Kiribati, Papua New Guinea, Solomon Islands, Tonga, Vanuatu, Samoa, the Marshall Islands and the Federated States of Micronesia.

IFC participation is limited to a maximum of 40% of total project cost for start up ventures, and 50% of the incremental cost of expansions of existing businesses.

Subject to the above, the minimum investment is USD$100,000 equivalent and the maxim, USD$750,000 equivalent.

The sponsors must be able to demonstrate a track record of integrity and relevant business management capability as well as be able and prepared to make a significant commitment of long term risk capital and management to the venture.

The business must be commercially viable and have a positive development impact on he host country. It must not be dependent on high levels of government subsidy or protection.

Certain projects will not be considered eg having potentially harmful environmental or social impact, production of tobacco products, gambling or speculative real estate development.

1.	Name of Organisation	:	Pacific Islands Investment Facility (PIIF) (see also International Finance Corporation (IFC) and South Pacific Project Facility (SPPF))

2.	Assistance Scheme/Program	:	IFC recognised that there were viable private sector investment opportunities that it could assist, which were of a smaller scale than it would normally participate in, and where a shortage of equity of risk capital makes it difficult for SPPF to develop bankable financial proposals. Working in close collaboration wit the SPPF, IFC established PIIF, to cater for these opportunities. PIIF considers investments in commercially viable projects having a total project cost of USD$0.5 to USD$5 million.
3.	Criteria	:	Investments are only made in private sector controlled commercial entities registered and operating in IFC’s Pacific Island member countries. These include Fiji, Kiribati, Papua New Guinea, Solomon Islands, Tonga, Vanuatu, Samoa, the Marshall Islands and the Federated States of Micronesia. IFC participation is limited to a maximum of 40% of total project cost for start up ventures, and 50% of the incremental cost of expansions of existing businesses. Subject to the above, the minimum investment is USD$100,000 equivalent and the maxim, USD$750,000 equivalent. The sponsors must be able to demonstrate a track record of integrity and relevant business management capability as well as be able and prepared to make a significant commitment of long term risk capital and management to the venture. The business must be commercially viable and have a positive development impact on he host country. It must not be dependent on high levels of government subsidy or protection. Certain projects will not be considered eg having potentially harmful environmental or social impact, production of tobacco products, gambling or speculative real estate development.