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What it is

Spain creates FONPRODE, a new development aid fund

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 6 November 2009. Introduced by: Gobierno.

Official title: Government bill on the Fund for the Promotion of Development.

Follow this law

Source: Congreso de los Diputados, file 121/000051· updated 11 Nov

Automatic summary, not yet reviewed

  1. The law creates the Fund for the Promotion of Development (FONPRODE), which replaces the old Development Aid Fund (FAD). It is a fund without legal personality, managed by the Ministry of Foreign Affairs and Cooperation, and its purpose is to eradicate poverty, reduce inequality, promote gender equality and sustainable development in impoverished countries.
  2. FONPRODE finances state-to-state grants, contributions to non-financial multilateral development organizations, technical assistance and contributions to funds of international financial institutions. It can also grant loans on favorable terms, but these operations cannot exceed 5% of gross Official Development Aid under the 2009-2012 Director Plan.
  3. The Fund may not be charged with expenses for military, police or dual-use equipment or supplies for armies, security forces or anti-terrorist services.
  4. A Executive Committee of the Fund is created, chaired by the State Secretariat for International Cooperation, which reviews funding proposals and decides whether to send them to the Council of Ministers. A Fund Office is also created within the Spanish Agency for International Development Cooperation.
  5. The Government will send an annual report to the Congress of Deputies and the Senate on the Fund's operations, and the State Secretariat will appear before the Cooperation Committees of both chambers. Reports and opinions will be published on the Ministry's website.
  6. The Official Credit Institute acts as the Fund's financial agent: it formalizes agreements, makes disbursements and provides financial services. The Fund's assets cannot be seized for debts of beneficiary states or executing companies.

Who it affects

  • Developing countries receiving Spanish aid, especially the least developed and low or lower-middle income ones: They receive grants, loans and programs funded by FONPRODE, with a sovereign guarantee in the case of loans
  • Ministry of Foreign Affairs and Cooperation: Manages the Fund through the State Secretariat for International Cooperation and the Spanish development cooperation agency
  • Official Credit Institute (Instituto de Crédito Oficial): Acts as the Fund's financial agent and receives annual compensation for its expenses
  • Congress of Deputies and Senate: Receive an annual report on the Fund's operations and issue an opinion with recommendations
  • Spanish exporting companies: They no longer receive aid from FONPRODE, which loses all commercial purpose; they will be redirected to other instruments

Words worth knowing

Ayuda ligada (tied aid)
Aid that requires the recipient country to buy goods or services from the donor country. The law requires FONPRODE aid to be untied.
Garantía soberana (sovereign guarantee)
A commitment by the beneficiary state itself to answer for repayment of the loan.
Personalidad jurídica (legal personality)
The capacity of an entity to have its own rights and obligations. FONPRODE does not have it; it depends on the Ministry.
Doble uso (dual use)
Goods that can serve both civilian and military purposes.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced6 November 2009Someone registers the text in the Congreso.
  2. Admitted17 November 2009The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments20 November 2009Groups propose changes.
  4. Committee17 February 2010A committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senate30 June 2010The Senate can pass it, amend it or veto it.
  7. BOE20 October 2010It is published in the Official State Gazette (BOE) and comes into force.
See the 11 official steps on a timeline
Dec 2009Mar 2010Jun 2010Sept 201011. 6 November 2009: Presentación22. 17 November 2009: Comisión de Cooperación Internacional para el Desarrollo Publicación desde 17/11/2009 hasta 20/11/200933. 17 November 2009: Calificación44. 20 November 2009: Comisión de Cooperación Internacional para el Desarrollo Enmiendas desde 20/11/2009 hasta 17/03/201055. 17 February 2010: Comisión de Cooperación Internacional para el Desarrollo Mesa - Calificación desde 17/02/2010 hasta 17/02/201066. 17 February 2010: Comisión de Cooperación Internacional para el Desarrollo Debate de totalidad desde 17/02/2010 hasta 18/03/201077. 18 March 2010: Comisión de Cooperación Internacional para el Desarrollo Informe desde 18/03/2010 hasta 15/06/201088. 15 June 2010: Comisión de Cooperación Internacional para el Desarrollo Aprobación con competencia legislativa plena desde 15/06/2010 hasta 30/06/201099. 30 June 2010: Senado desde 30/06/2010 hasta 06/10/20101010. 6 October 2010: Pleno Enmiendas o veto del Senado desde 06/10/2010 hasta 20/10/20101111. 20 October 2010: Concluido - (Aprobado con modificaciones) desde 20/10/2010 hasta 30/11/2010

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

The same initiative in the other chamber:

Published in the BOE: Law 36/2010, of October 22, on the Fund for the Promotion of Development.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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