AFRICAN LEGAL SUPPORT FACILITY. Godfred Penn Chief Counsel Office of the General Counsel. World Bank, Washington DC, 9 July 2009. OUTLINE. 1. What is the African Legal Support Facility (ALSF)? 2. Why was it created? 3. Where will it be domiciled? 4. How will it work?
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Office of the General Counsel
World Bank, Washington DC, 9 July 2009
1. What is the African Legal Support Facility (ALSF)?
2. Why was it created?
3. Where will it be domiciled?
4. How will it work?
5. What are its expected benefits?
6. What will ALSF not do?
7. ALSF Functional Structure
8. Next steps
Purpose: Enhance access
of African countries to sound technical
legal advice in dealing with
lawsuits by Vulture Funds
& other claims that arise
or may arise from contracts
entered into with third parties
to finance development in extractive industries.1. WHAT IS THE ALSF
1.1.vulture funds = outrageous
One example to illustrate:
Donegal vs. Zambia:
Vulture funds = merciless
Weak capacity in negotiation and drafting of contracts:
Governing Council AfDB
Director3. ALSF DOMICILE AND STRUCTURE
Vulture Fund litigation
Enhancement of the
fiscal viability of
especially in EIs
Legal advise to countries
wishing to negotiate
with 3rd parties
Training for a
in debtor countries
endowed by ADB,
other donors and MNCs
Creation of a
Grants to LICs for Vulture Fund litigation not to exceed 1 million EUR per beneficiary
50%-50% cost sharing for eligible countries with better than LIC economic performance
Reimbursable advances for MICs for Vulture Fund litigation and negotiation
Reimbursable advances not exceeding 5 million EUR per beneficiary for negotiating complex commercial contracts
Not encourage non compliance with covenants in loan agreements
Not assist in the non-enforcement of legitimate claims
Not itself participate directly in negotiations or to resolve claims
Not deal directly with law firms on its own account
Operationalization of the administrative machine
Encouragement of countries… that have not yet signed the agreement to do so.
Lobbying for more funds from member countries and orgs.
Chief Counsel, GECL
African Development Bank
Thank you for your attention