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Consortium/Intergovernmental Corporations and Consortiums


Quasi-business associations formed to provide services, arrange financing, or operate certain enterprises.

The involvement of more than one state or institution can be advantageous in expanding the financial and administrative resources available to the entity and, in some cases, permitting services or products to be distributed on a larger and more efficient scale. Various banks, for example, may form a consortium with a government to finance a major development project that is too large for one bank to finance alone. The terms of the agreement forming the consortium or corporation will determine the reciprocal rights and duties of the members of the entity. While in practical terms there may be little difference between an intergovernmental consortium or corporation, the usual ad hoc nature of a consortium suggests its use for individual projects with a definite completion schedule. The widespread use of the corporate framework in other circumstances indicates that the corporate form works well when the entity must provide services over an indefinite period of time. The corporate structure, with its separate board of directors and management, can also protect the independence of the entity from direct political control and may help to facilitate access to private financial markets.

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