Among the various available sources of project financing - Official Development Assistance (ODA) provides a lucrative opportunity. With its flexible nature, this financing option comes at cheaper price.

Resource Mobilization at competitive cost is a critical issue which confronts every management. In the past, managements had to depend on domestic source but now the times have changed and there are a plenty of external sources of finance. The domestic and external sources of finance, however, have their own strengths, limitations and costs. The strengths and limitations of each source has a direct impact on its borrowing decision. It is therefore essential to know the relative strength, limitation and cost of various source of finance. Loans under Official Development Assistance (ODA) are extended with a view to promote the economic stabilization and development efforts of a government in its country which ultimately contributes to the overall economic growth in that region. The following should be strictly adhered to while extending the facility.

Generally, fund quotas are fixed for the countries eligible for assistance under their respective scheme and the concerned governments are informed about their proposed investment plans and priorities for extending facility for promoting the respective government's development efforts. The eligible project is normally identified during the periodic consultation between the officials of the nation extending the assistance, and the eligible country that is receiving the assistance and the project executing agency of that country. Before the project identification, a study is made on the country's economic situation along with its plans and priorities during the mission for official development assistance. A fact finding team visits the identified Project to obtain detailed information on all aspects of the proposed project to justify proceeding to the next stage of project appraisal. The detailed project appraisal is carried out by the expert team covering all aspects of the proposed project and the sector or sub-sector to which it relates are reviewed and analyzed.

Treasury Management Journal, Official Development Assistance, ODA, Resource Mobilization, Economic Stabilization, Investment Plans, Project Completion Report, PCR, Development Efforts, Project Appraisal Report, Department of Statistical Analysis and Computer Services, DESACS, Reserve Bank of India, RBI, Reimbursement Procedure.