Multi-Lateral Project

The project which is carried on under the agreement between Multi-lateral agency and recipient country is called multi-lateral project. The main source of funding in multi-lateral project is multilateral agency like World Bank, Asian Development Bank, European Union, UN Agency etc. In another word the project which is implemented under the assistant ship of multilateral agency is called multi-lateral project.

Generally multi-lateral agencies provides financial assistant ship in terms of concessional loans to under developed or developing countries under the special terms and condition. The loan must be repaid as interest on principal by recipient country according to previous agreement. Multilateral project are mega projects which are implemented through global bidding system. 

Advantages of Multilateral Project

• It gets chances of use concessional loan which is very cheap.
• It facilitates for the development of infrastructure and social services. 
• It receives multilateral assistant ship.
• It creates the better employment opportunities to the people of recipient country.
• It helps to accelerate the economic growth of country.

Disadvantages of Multilateral Project

• It promotes the dependency on multilateral loans.
• It creates the situation of heavy debt burden to country which may adversely affect the economic condition of country.
• It involves the repayment obligation.
• Its implementation procedure is complex.
• It is also an international project, so there is possibility of pressure to recipient country.
• There may arise difficulty to co-ordinate the assistant ship.

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