Supplementary funds are extra-budgetary resources provided by Member States for specific programmes or activities. They are managed within the framework of bilateral partnership agreements with donor countries. The agreement between the donor and IFAD designates the Fund as administrator and defines the terms and conditions for the use of the funds, which are accounted separately from IFAD's own resources. Such funds serve to enhance the fund's operational strategies and priorities.

In 2005 IFAD received approximately US$11 million in new supplementary funds for thematic and technical assistance, and approximately US$2 million in cofinancing supplementary funds (see table below). These amounts include only the resource flows through IFAD and exclude parallel cofinancing for IFAD programmes and projects.

Italy: Rural finance €5 million(US$6,104,250): In May 2005 an administration agreement was signed between the Italian Ministry of Foreign Affairs and IFAD for the establishment of the Facility to Support Rural Finance (RURALFIN). The agreement assures an annual contribution of €5 million for five years to promote activities related to sustainable rural finance, remittances and rural enterprise.

Italy: Voluntary contribution €3 million(US$3,813,750): Ongoing activities financed under Italy’s voluntary contribution relate mainly to pro-poor policy dialogue and capacity-building of grass-roots organizations; microfinance, rural small enterprises and microenterprises, and access to markets; natural resource management and environmental protection; post-conflict assistance and rehabilitation; and gender and civil society partnerships.

Norway: Mozambique US$1,363,533: Norway contributed US$1,363,533 in 2005 to assist the Sofala Bank Artisanal Fisheries Project in Mozambique. This is the fourth tranche under the cofinancing agreement signed between the Norwegian Agency for Development Cooperation (NORAD) and IFAD in December 2002.

United Kingdom: India Orissa £330,000 (US$619,080): The United Kingdom of Great Britain and Northern Ireland provided £330,000 (US$619,080) to support the Orissa Tribal Empowerment and Livelihoods Programme in India. This is the first tranche under the memorandum of understanding between the Department for International Development (DFID) and IFAD for a total contribution of £7.9 million.

Germany: HIV/AIDS €376,358 (US$470,447): Germany contributed €376,358 (US$470,447) in 2005 as the third tranche of financing for the arrangement entitled Support to Mitigating the Impact of HIV/AIDS on Rural Populations in Eastern and Southern Africa.

Finland: Technical assistance €350,000 (US$422,958): Finland provided €350,000 (US$422,958) in 2005 under the July 2003 partnership agreement to finance a variety of activities, in particular the side event held at IFAD’s Governing Council with farmers’ organizations, and the regional workshop entitled Thematic Evaluation and Decentralization, held in Uganda.

France: Technical Assistance €350,000 (US$411,548): France provided €350,000 (US$411,548) in 2005 under the January 2004 partnership agreement to finance support for the joint IFAD-France-OECD project on agricultural policies in sub-Saharan African countries.

United Kingdom: Institutional strategy £127,500 (US$224,552): In May 2005 a memorandum of understanding was signed between the United Kingdom of Great Britain and Northern Ireland and IFAD for a three-year institutional strategy. A first tranche of £127,500 (US$224,552) from a total contribution of £765,000 (US$1.4 million) was received in 2005.

Denmark: Poverty reduction strategy US$100,000: In July 2005 Denmark and IFAD signed a partnership agreement for US$100,000 to enable the organization to engage more systematically and proactively in support of poverty reduction strategies.