Luxembourg's development cooperation - Annual report 2018

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 217,39 million euros in 2018; added to this are the assets available on 1  January, i.e. 1,64 million euros, as well as revenue during the year (2  028 959 euros) – essentially reimbursements from NGOs and agencies of funds not disbursed on projects co-financed by the Ministry. In 2018, 4,78 million euros was also routed through the DCF between Denmark’s development cooperation and LuxDev as delegated cooperation.

In 2018, a total of 225,80 million euros was disbursed through the DCF. Lux-Development, 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. 105,56 million euros (46,75 %), including Danish delegated cooperation funds. Next come non-governmental development organisations, which received 41,50 million euros (18,38 %) 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 (14,70 %) or with multilateral agencies (16,89 %) as well as for programme support.