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Mixed Credit Programme

Danida’s Mixed Credit Programme was launched in September 1993 as the instrument for financing specific projects in eligible countries including some of the Danish programme countries.

A Danish mixed credit is an interest-free or low-interest loan, typically with 10 years' maturity aimed at financing supplies of equipment and related services for development projects within a number of sectors, including water and sanitation, energy, infrastructure, health, environment and education. The Mixed Credit Programme comprises a tied mixed credit facility available in Danida's Programme Countries and other relatively creditworthy countries with a gross national income (GNI) per capita of less than USD 2,964 (2008/09), and additionally an untied mixed credit facility available only in Danida's Programme Countries and South Africa. It is a requirement that the commercial contract is based on international competitive bidding or limited international bidding.

The most prominent projects were concentrated on the education and health sectors, and thus had the potential to improve quality of life for inhabitants. The health and education sector projects contributed to poverty reduction and gender equality by providing enhanced access to social services – particularly so where the education and health facilities are located in the poorer regions of Thailand. The education projects contained substantial elements of environmental management and Occupational Health and Safety in the technology provided. Other projects focused on the industrial and energy sectors providing employment opportunities, import substitution or environmental improvements.

In 1998, the Thai GNI exceeded the limit and nine pipelines projects were abandoned. The devaluation against the USD resulted in the GNI per capita getting below the limit and the Thai project portfolio was consequently resumed. The projects varied from small industrial projects satisfying the needs of individual industries to large-scale social sector projects concerning public health and vocational education and training.

The final project, Strengthening of BMA Health Care Delivery System, was granted in 2004.

Sector Project Contractor Contract
(million DKK)
Loan
(million DKK)
Grant
(million DKK)
Education Dove Desmi Contraction A/S 121 108 60
Transportation Falling Weight
Deflectometer 
Vejdirekto-
ratet
13 13
Food Processing Glukose Plant,
Chantaburi
Niro A/S 19 16 6
Education Manpower Skill
Development Training
Carl F. A/S 78 69 38
Health Rural Health Care
Facilities
Rural Health
Care Facilities
A/S
339 237 117
Environment Siam Paper Waste Krüger A/S 9 6 3
Electrification Small Islands
Electrification
NKT Cables 42 41 19
Health Strengthening Health
Care Facilities
Skanska A/S 402 354 191
Health Strengthening of
BMA Health Care
Delivery System
Danish Medical
Industries Ltd. A/S
117 112 52
Environment Sun Cabinet
Filtration and
Combustion Plant
Nordfab A/S 5 2 2
Others Training, IFCT Handelshøjskolen 0.3 0 0.3

Danida