While large-scale projects can attract FDI, blended finance can also mobilize private domestic financing (for example, from pension funds and commercial banks), particularly for local development projects.4 It also has the potential to leverage diaspora direct investment in projects with transformational impact (UNCTAD, 2012b). It is also important that the share and terms of the concessional element appropriately reflect the level of development and vulnerability of the recipient country. The use of blended finance should therefore be restricted to projects that would not be undertaken in the absence of such financing, and should prioritize projects with clear benefits for economic and social development (UNCTAD, 2015d: chap. Blended finance projects may also contribute to institutional development, through technical assistance to local banks, pension funds, and national and local authorities for project financing, impact assessment and risk mitigation techniques, for example (UNDP and UNCDF, 2016).