The development cooperation fund in 2020

Established by the amended law of 6 January 1996 on development cooperation and humanitarian action, the Development Cooperation Fund (DCF) is an instrument enabling the Ministry of Foreign and European Affairs to carry out development programmes and projects extending over several years.

The state budget provided the DCF with EUR 231.27 million in 2020; added to which are the assets available on 1 January, i.e EUR 3.42 million, as well as revenue during the year (EUR 7.67 million). This revenue comprises reimbursements from NGOs and agencies of funds not disbursed on projects co-financed by the Ministry and EUR 6.84 million routed through the DCF between Denmark’s development cooperation and LuxDev as delegated cooperation.

In 2020, a total of EUR 207.24 million was disbursed through the DCF. LuxDev, as the state’s principal agent responsible for the implementation of projects and programmes resulting from governmental bilateral cooperation, benefited from the majority of this amount, i.e. EUR 104.97 million (50.65%), including Danish delegated cooperation funds. Next come non-governmental development organisations, which received EUR 44.18 million (21.32%) as part of the co-financing of their projects and programmes and to cover some of their administrative costs. The balance was accounted for by projects implemented by the Ministry directly with other partners (13.64%) or with multilateral agencies (10.61%), the emergency.lu programme (2.27%) as well as for programme support (1.50%).