WB-UN Partnership in Crisis and Post Crisis

WBG DONOR FORUM

May 25-26, 2009

Three Components [+] UN-WB Partnership

Framework Includes DPKO, DPA, OCHA, PBSO

and UNDG members – signed 24 October, 2008

UN-UNDG Operational Annex

Applies to UNDG agencies, programs and funds – signed 24 October, 2008

Fiduciary Principles Accord Concluded with 11 UNDG agencies (UNICEF, WFP, UNDP, FAO, ILO, UNHCR, UNEP, UN-Habitat, UNOPS, UNFPA, and WHO), effective since December 08

EU-WB-UN Joint Declaration on Post Crisis Assessments and Recovery Planning

Applies to UNDG agencies – signed 28 September, 2008

UN-WB Partnership Framework

Objective: sets out principles of engagement for a more effective and sustainable

response to crisis and post-crisis situations Principles:

complimentarity and inter-dependence an integrated approach that links politics, security, and development national leadership flexibility taking into account country context

Agreement on: communications protocol closer strategic dialogue and engagement through integrated joint

assessments and planning, the use of shared benchmarks/results frameworks (PCNAs, PDNAs and TRFs)

joint presentation of funding needs covering all aspects of recovery planning

collaboration around common funding mechanisms promoting a culture of learning – briefings, joint training, missions and

collaborate research

WB-UNDG Operational Annex Objective:

provides an operational platform for coordinated post-crisis response between the Bank and UN agencies

Principles: reiterates Partnership Framework with emphasis on: speed in

responding to immediate needs; supporting national capacity and resilience to crisis and taking into account country context for determining division of labor

Key elements: communications protocol reinforces commitment to the use of shared assessments and

planning tools guidance for selecting between a menu of options for MDTF

models underlines the need for resolving problem of lack of inter-operability

between WB and UN fiduciary and legal frameworks commits to promoting culture of learning through shared training,

raising awareness of our organization’s respective mandates, instruments and competencies, and conducting joint lessons learnt exercises to document best practices

EU-WB-UN Joint Declaration on Post-Crisis Assessments and

Recovery Planning Objective:

harmonizing and coordinating post-crisis response frameworks to enhance country resilience to crises

A common platform for action: closer HQ/CO communications aimed at identifying

opportunities for joint initiatives participation in joint planning processes and

development/use of shared benchmarks/results frameworks

development and use of common post-conflict and post-disaster assessments and recovery planning

investment in development of toolkits and staff training monitor implementation progress through senior

management annual meetings

Fiduciary Principles Accord (FPA)

Objective: To facilitate timely UN implementation of urgent ‘early

phase’ activities in weak-capacity environments under TFs administered by the Bank

Principle: Permits participating UN agencies to rely on their own

requirements when implementing recovery activities based on representations provided by each FPA signatory agency re soundness of its internal standards and practices

Context: Reflects findings and recommendations of 2007 Review of

Post-Crisis MDTFs commissioned by Norway, Canada, Netherlands, U.K. in collaboration with the WB and UN

FPA: A New Operational Model For WB/UN Partnership & Cooperation

under Crisis MDTFs Reciprocity -- application of the FPA to TFs administered by

either WB or UN

Harmonization around relevant goals and principles not specific internal rules and procedures

Allow each agency to rely on its own rules based on:1. Agreement on shared fiduciary principles and goals in financial

management, procurement, project monitoring & reporting arrangements, and addressing fraud & corruption

2. An assurance from each organization (to be renewed at agreed intervals) that its internal requirements, rules & regulations permit it to meet agreed principles & goals

3. Agreement on reporting requirements (progress/results and financial) and al process for addressing allegations of fraud & corruption or other serious issues

FPA: Expected Outcomes

More effective and timely commencement and implementation (by UN or WB) of recovery activities supported by MDTFs

Timely conclusion of legal agreements based on an agreed template that allows each organization to implement such activities using own fiduciary rules & procedures

Consistent reporting on use of funds and implementation progress against expected outcomes & results

Enhanced donor role in approval and oversight (reflected in Administration Agreements that provide for the FPA)

FPA: The Bank’s Role

Bank operational role more limited compared to RETFs Bank responsible for:

Conclusion of Disbursement Agreement (DA) for UN-implemented activities approved by MDTF donors

Disbursement of funds in accordance with DA Terms Monitoring of UN compliance with its periodic reporting

obligations (financial and progress/results reports) Consolidation of periodic UN reports and provision to

the donors for review Invoking and participating in process for addressing

serious issues (including fraud and corruption) Invoking appropriate remedies in consultation with TF

Donors

FPA: Donors’ Role

Enhanced donor role for project approval and oversight when UN implements

Relies on ex ante donor consent to the application of the FPA at the time administration agreement signed

Donors responsible for: Review and approval of project proposals that involve UN

implementation Review of periodic progress and financial reports submitted by

UN through the Bank Participation in consultations with the Bank on:

1. any issues identified with UN-implemented activities (either through donor review of periodic reports or other sources)

2. activation and follow up on joint review mechanism for addressing serious issues (including fraud and corruption)

3. invocation of appropriate remedies

FPA: UN's Role

Preparation and submission of project proposals to TF governing body

Conclusion of Disbursement Agreements (DA) with the Bank for funding of UN implementation of approved projects

Implementation of approved projects using its own rules Submission of periodic financial and progress/results reports to

the Bank as specified in the DA Invocation of internal UN process for addressing any serious

issues (including fraud and corruption) and participation in joint review with the Bank relating to such issues as necessary

Taking “due regard” of the Bank’s debarment decisions in the context of contracting under Bank-administered funds to which FPA applies

Complying with its more general obligations vis a vis the government under its framework agreement

FPA: Government Role

Has to expressly request and/or agree to UN implementation of activities

Monitor progress of implementation through agreed means (as a member of TF governing body or otherwise)

Bring any issues to the attention of UN, Bank and Donors

Participate in capacity building under UN-implemented projects to enable it to take over implementation of follow on phases

Other Initiatives to Facilitate Work with UN under Bank-financed

Activities UN is a major supplier of goods and technical assistance/services under

WB-financed projects, especially in emergency situations and in social sector projects

Procurement and consultants’ guidelines specifically provide for UN engagement on a “single source” basis when UN is a uniquely qualified supplier of goods or provider of services

Have difficulties in agreeing on certain provisions in WB standard agreement forms (relating to immunities, F&C etc.), which results in delays when borrowers try to engage UN under WB-financed projects

WB and UN (same agencies that signed the FPA) are negotiating new standard agreement forms that would be unique to UN

A new supply agreement form has been agreed with UNICEF and UNFPA and negotiations are moving ahead with WHO

An effort is also underway to agree on a new form agreement for services/TA

These efforts should benefit implementation of activities under crisis and other MDTFs particularly when supporting activities in social sectors