Basic principles
I. PRINCIPLES OF PROJECT CYCLE
1. The GEF will ensure the cost-effectiveness of its activities in addressing the targeted global environmental issues, will fund programs and projects which are country-driven and based on national priorities designed to support sustainable development and will maintain sufficient flexibility to respond to changing circumstances in order to achieve its purposes. (footnote 1)
2. The GEF operational policies will be determined by the Council and with respect to GEF-financed projects will provide for full disclosure of all non-confidential information, and consultation with, and participation as appropriate of, major groups and local communities throughout the project cycle. (footnote 2)
3. The Secretariat and the Implementing Agencies, under the guidance of the Council, will cooperate with other international organizations to promote achievement of the purposes of the GEF. The Implementing Agencies may make arrangements for GEF project preparation and execution by multilateral development banks, specialized agencies and programs of the United Nations, other international organizations, bilateral development agencies, national institutions, non-governmental organizations, private sector entities and academic institutions, taking into account their comparative advantages in efficient and cost-effective project execution. Such arrangements will be made in accordance with national priorities. (footnote 3)
4. The three Implementing Agencies recognize the need for institutional arrangements in conformity with, and providing input to the fulfillment of, GEF objectives, based on a results-oriented approach and in a spirit of partnership, and consistent with the principles of universality, democracy, transparency, cost-effectiveness and accountability. (footnote 4)
5. The Implementing Agencies will put these principles into practice by ensuring the development and implementation of programs and projects which are country-driven and based on national priorities designed to support sustainable development. Actions needed to attain global environmental benefits are strongly influenced by existing national policies and subregional and regional cooperative mechanisms. GEF financing will need to be coordinated with appropriate national policies and strategies as well as with development financing. To the extent that the GEF operates a funding mechanism for global environmental conventions, the Implementing Agencies will collaborate with eligible countries on project programming and implementation, either directly or, where appropriate, at a subregional or regional level, of the program priorities and criteria adopted by the Conference of the Parties to each Convention. (footnote 5)
6. In developing GEF work programs and in project preparation, the Implementing Agencies will, through country-driven initiatives, collaborate with eligible countries in the identification of projects for GEF funding through the Project Preparation and Development Facility. Priority will be given to integrating global environmental concerns with national ones in the framework of national sustainable development. (footnote 6)
7. The Implementing Agencies will assure the cost-effectiveness and sustainability of their activities in addressing the targeted global environmental issues. In this context, one important feature of adhering to these principles is that the least-cost sustainable means of meeting many global environmental objectives lie in a combination of investment, technical assistance, and policy actions at the national and regional level. The experience and mandate of each Implementing Agency will contribute to bringing to light, when assessing specific project interventions, the range of possible policy, technical assistance and investment options. In addition, each Implementing Agency will strive to promote measures to achieve global environmental benefits within the context of its regular work programs. (footnote 7)
8. The Implementing Agencies are committed to facilitating continued effective participation, as appropriate, of major groups and local communities and to promoting opportunities for mobilizing outside resources in support of GEF activities. (footnote 8)
9. Collaboration among the Implementing Agencies will be sufficiently flexible to promote introduction of modifications as the need arises. Within an overall cooperative framework, the Implementing Agencies will strive for innovative approaches to strengthening their collaboration and effectiveness, in particular at the country level, and an efficient division of labor that maximizes the synergy among them and recognizes their terms of reference and comparative advantages. (footnote 9)
