Highlights_of_December_Council

April 2007

Stories from Agencies

	a.	Providing Sustainable Alternatives to DDT for Malaria Vector Control in Mexico and Central America (UNEP)
	b.	Sustainable Coffee Harnesses Consumer Power for Conservation (UNDP)
	c.	Preventing Casualties and Livelihood Loss in Flood Prone Areas in Southern Africa (UNEP)

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Highlights of December Council Meeting

From December 5-8, 2006, the GEF Council held its last meeting of the year in Washington, DC. The meeting agenda and a full summary of the Council Meeting are available on the GEF website at:

http://thegef.org/documents/council_documents/council_documents.html. The following are highlights of the meeting.

Evaluation of Incremental Cost Assessment

The Council reviewed the document, GEF/ME/C.30/2, Evaluation of Incremental Cost Assessment, which evaluated the processes and methodologies used for incremental cost assessment and the process of negotiating incremental costs, and the management response (GEF/ME/C.30/3). The Council welcomed the conclusion that the principle of incremental funding is being achieved throughout the GEF. However, based on the evaluation’s conclusion that the current process for incremental cost assessment and reporting does not add any value to the quality of projects, the Council decided that

(a) the incremental reasoning in project objectives and design should be explicitly addressed in appropriate documentation, particularly at the project concept stage, during implementation, and at completion;
(b) the current incremental cost assessment and reporting requirements for GEF project proposals should be reformed so as to result in a simplified demonstration of the project baseline, incremental costs, and cofunding;
(c) Project Information Reports and the Portfolio Performance Report should include monitoring progress towards achieving global environmental benefits and cofunding; and
(d) terminal evaluations should evaluate achievement of global environmental benefits and cofunding, followed by an independent assessment in the Evaluation Office’s Annual Performance Reports.

The Council requested the GEF Secretariat to incorporate the above-mentioned guidelines in its paper on the revised project cycle, which will be presented to the Council in June 2007 for review and comment.

The Council also requested the GEF Evaluation Office to record any follow-up action taken to implement this decision and report on these actions through the Management Action Record.

Evaluation of GEF Project Cycle and Modalities

Following reviewing the document, GEF/ME/C.30/6 Evaluation of the GEF Activity Cycle and Modalities and the management response, GEF/ME/C.30/, the Council requested the Secretariat to present for review and comment in June 2007 options for a new project cycle that will process a proposal from identification to start of implementation in less than 22 months without compromising project quality or undermining financial accountability. This change should expedite the project cycle, allow projects to be endorsed by the CEO on a rolling basis, and move the work program from being project-based to being program-based in line with GEF strategies and policies.

Strategies for Focal Areas

After reviewing the document, GEF/C.30/5, Focal Area Strategies for GEF-4 – Working Drafts and Proposed Process, the Council requested the Secretariat to continue its work to review, revise, and focus the focal area strategies, taking into account cross-cutting issues of sustainable forest management and sound chemicals management. The Council invited members to submit written comments on the working drafts of the strategies to the Secretariat by January 15, 2007.

For more information on the progress of the Focal Area Strategies revision, please visit the GEF website at: http://thegef.org/Operational_Policies/Operational_Strategy/GEFFocalAreaStrategies.html

Roles and Comparative Advantages of the GEF Agencies

Based on a review of the document, GEF/C.30/9, Roles and Comparative Advantages of the GEF Agencies, the Council decided the following.

(a) GEF Implementing and Executing Agencies will focus their involvement in GEF project activities within their respective comparative advantages and assigned primary roles that will be further elaborated upon in a paper that the Secretariat will prepare for the next Council meeting. The Executing Agencies will be granted direct access to GEF funding based on their comparative advantages.
(b) As of fiscal year 2008, the corporate budget of the Implementing Agencies will be eliminated.
(c) The project cycle management fee for all GEF Implementing and Executing Agencies will be increased from 9 percent to 10 percent, with a cap that will ensure that no agency receives more administrative support than under the current system of fees and corporate budget. This increased fee will be applied immediately to projects managed by the Executing Agencies. For projects managed by the Implementing Agencies, the 10 percent fee will be applied beginning in FY08 when the corporate budget for the Implementing Agencies will be eliminated. The total fee amount for any Implementing Agency in a fiscal year will be capped at what it would have received under the present system of a 9 percent fee plus $3 million in the corporate budget.
(d) GEF Implementing and Executing Agencies will participate in the corporate activities outlined in annex 2 of document GEF/C.30/9.

(e) In consultation with the country, the Secretariat will assess the comparative advantage of a GEF Implementing and Executing Agency to manage a proposed project during the project concept review