GF/B05/DP05
Approved by the Board on: 06 June 2003
Policy on funding of proposals
1. The Board endorses these principles for funding Round Three grant obligations:
a. The Board may approve proposals and commit funds for two years up to the cumulative amount pledged until and including the current year.
b. A sufficient amount of cash and/or liquid assets to meet the full cost of two years of implementation of approved grants must be deposited with the Trustee or readily available on demand prior to the Secretariat signing a grant agreement.
2. The Board:
a. Asks the TRP to refine the recommendations in category 2 in a way that will facilitate the Board's prioritization of proposals for approval and requests the Secretariat, in consultation with the PMPC, to propose criteria* to be agreed by the Board for prioritizing TRP-recommended proposals, if sufficient funds are not available to immediately approve all TRP-recommended proposals.
*Based on the Framework Document and the Guidelines for Proposals for the Third Round
b. Asks the Secretariat, in consultation with the PMPC, to develop options for prioritizing TRP-recommended Round 3 proposals by the end of July, with information provided to the Board by mid-August, and bring these to the Board for approval at the October Board meeting.
3. The Board asked the Secretariat in consultation with the World Bank, other partners, PMPC and MEFA to develop a comprehensive policy on funding of grant obligations, for approval at the October 2003 Board meeting.
4. The Board asked the Secretariat in consultation with MEFA to define reserve levels as a contingency to fund successful appeals to be presented to the Board for approval at the October 2003 Board meeting.