Frequently Asked Questions (FAQ)

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Is SDP a loan or a form of debt financing?

No. SDPP is not a loan and does not create debt. It is a partnership-based development framework designed to mobilize capital without repayment obligations or sovereign guarantees.

 

Does participation create any repayment obligation for the government?

No. Participating governments do not assume repayment obligations, guarantees, or contingent liabilities. Capital deployment is structured on a non-recourse basis.

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Who owns and controls the participating assets?

All participating assets remain in full sovereign ownership and legal control at all times.

For the duration of the program, designated assets are committed to the strategic partnership solely for participation and value-reference purposes within the trade program. They are not transferred, sold, or encumbered, and no third-party rights are created.

At the conclusion of the program, all assets revert fully and automatically to the government unchanged and unencumbered.

 

What happens if a project underperforms or fails?

The trade program and partnership structure are fully insured, and development capital is deployed using the trade organization’s own capital.

Project performance does not create claims against sovereign assets or government balance sheets. Risk is managed within the trade program and at the project level, ensuring that participating governments are not exposed to financial loss.

 

How does SDP differ from traditional development finance models?

Unlike traditional development finance, which relies on loans or guarantees, SDP uses a partnership structure that allows governments to pursue development without increasing debt or placing national assets at risk.

 

What does “joint development partnership” mean in practice?

It means governments and partners collaborate on development initiatives while each retains ownership, authority, and control over their respective assets and responsibilities. There is no lender-borrower relationship.

 

What role does the global trade organization play?

The global trade organization provides capital mobilization capacity, trade expertise, and project execution support within the partnership framework, deploying its own capital for trade activities.

 

What types of assets may participate in the program?

Eligible assets are designated voluntarily by the government in accordance with program guidelines. Asset selection is tailored to national priorities and sovereign discretion.

 

Does participation affect sovereign debt levels or credit ratings?

No. Because SDP does not create debt or repayment obligations, it does not increase sovereign debt or negatively affect national credit metrics.

 

Who bears the financial risk under SDP?

Financial risk is managed within the trade program and borne by the trade organization and its insurers. Governments do not assume open-ended financial exposure.

 

Is participation mandatory or permanent?

No. Participation is voluntary and structured with defined terms, including mechanisms for adjustment, pause, or conclusion by agreement.

 

Who is SDP designed for?

SDP is designed for national governments and qualified private-sector groups seeking long-term development capital without compromising ownership, control, or fiscal stability.