b. Terms and Conditions
FINANCIAL TERMS
14. The following table sets out the financial terms of official development
assistance in 1976:
Commitments
8m (Em)
%
Gross
disbursements
øm (Em)
%
201
Grants
1095 606
95
818453
87
Loans
EZE COMMONWEALTH DEVELOPMENT CORPORATION
41 23
4
99 55
11
19 10
(CDC),
26 14
2
Total
1155 639
100
943 522
100
A
(Note: grants include technical cooperation for which commitments are taken to equal disbursements and multilateral contributions).
The weighted average grant element of official development assistance loan commitments in 1976 was 55%%; the grant element for CDC commitments for 1976, taken by themselves, was 31.66%, including equity.
15. The United Kingdom complied in 1976 with both the overall terms target, by
attaining an average grant element of 98 per cent (against the target of at least 84 per cent) in its total official development assistance commitments, and the special target for aid to the Least Developed Countries, by providing official development assistance commitments with an average grant element of at least 86 per cent to each least developed country over the three year period 1974 to 1976.
16. The United Kingdom has continued its policy of adapting bilateral aid terms to
the economic circumstances of the recipient. Commitments to the poorest countries are normally on grant terms. For the present, a per capita income of $200 in the
1974 World Bank Atlas is taken as the threshold for this policy.
PROCUREMENT CONDITIONS
dis bersements
17. The proportion of United Kingdom bilateral aid eemitments fully tied to
United Kingdom goods and services in 1976 was 53 per cent (excluding technical cooperation). In addition to the procurement from this fully tied aid, further procurement in the United Kingdom arises from the considerable amount of bilateral
financial aid tied to United Kingdom or local goods and services, the proportions
of which are not always laid down in advance in specific terms. The estimated
percentage of further procurement in the United Kingdom which results from such
aid was
14 per cent, giving an estimated total per cent of bilateral aid
effectively tied to United Kingdom procurement, without regard to any further
procurement which may result from untied aid.
X