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KfW follows the IFC approach for excluding certain project activities from support. Projects related to the following activities are not eligible:

  • Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB's, wildlife or products regulated under CITES.
  • Production or trade in weapons and munitions.
  • Production or trade in alcoholic beverages (excluding beer and wine).
  • Production or trade in tobacco.
  • Gambling, casinos and equivalent enterprises.
  • Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately shielded.
  • Production or trade in unbonded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement sheeting where the asbestos content is less than 20%.
  • Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.

All financial intermediaries (FIs), except those engaged in activities specified below, must apply the following exclusions, in addition to IFC's Exclusion List.

  • Production or activities involving harmful or exploitative forms of forced labor2/harmful child labor.
  • Commercial logging operations for use in primary tropical moist forest.
  • Production or trade in wood or other forestry products other than from sustainably managed forests.

For more details please also visit the IFC Exclusion List

Article "eligible projects"

State-owned and privately held enterprises cooperating with VTIs for implementation of DCT are eligible for VEFF support. Enterprise partners in proposals shall be duly registered with the respective authorities in line with the laws and regulations of Lao PDR and directly responsible for the preparation and implementation of the respective project.

Small and medium (SMEs) shall be eligible for all VEFF support measures offered. Large enterprises may be considered for support measures offered to overcome specific training challenges in the given economic sector. Such support is to be proposed in the grant application with supporting justification and will be subject to review of the appraisal panel.1 For the purposes of this distinction, the following definition is used:

  • SMEs up to 250 employees
  • Large enterprises (> 250 employees).

Eligible VTIs to be supported by the VEFF Partnership Funding Agreement are:

  • TVET Schools (under MoES)
  • TVET Colleges (under MoES)
  • IVET Schools (under MoES)
  • Skills Development Centers (under MoLSW)
  • Private Vocational Training Institutes (accredited by MoES or MoLSW)
  • Enterprise- or Association-owned Vocational Training Institutes (accredited by MoES or MoLSW)