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