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Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011

Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011. MDTFs are important funding instrument for UN system. By end 2010, UN had 38 active MDTFs with total cumulative portfolio of about USD 5 billion

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Role and Strategic Use of MDTFs: the way forward UNDG – Donor Meeting New York, 24 June 2011

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  1. Role and Strategic Use of MDTFs: the way forwardUNDG – Donor MeetingNew York, 24 June 2011

  2. MDTFs are important funding instrument for UN system • By end 2010, UN had 38 active MDTFs with total cumulative portfolio of about USD 5 billion • 7 largest donors contributed 86% of total contributions • MDTF Office is AA for 95% of MDTFs (99.5% of value) • In 2009, MDTF contributions made up 7 % of non-core development funding for UN family (up from 3 % in 2006) • For 2010, UN organisations reported USD 815 million in MDTF expenditures to MDTF Office

  3. UNDG is committed to improving this funding instrument Key initiatives since January 2010: • Guidance Note on Establishing, Managing and Closing MDTFs (Joint Funding sub-committee) • Training package for UNDAF roll-out countries (Joint Funding sub-committee) • UN inputs into INCAF-process, International Dialogue and preparations for HLF IV in Busan (Task team on transition financing) • MDTF Office GATEWAY (MDTF Office)

  4. Guidance Note on Establishing, Managing & Closing MDTFs Content Annexes MOU with non-UN Participating Organization Concept Note template Establishment of an MDTF (flow-chart) Generic UNDG MDTF TOR Oversight Framework for MDTFs (flow-chart) MDTF Closure Processes (flow-chart) Standard Definitions • Background • Definition and Objectives • Key stakeholders • Establishing an MDTF • Managing an MDTF • Extending an MDTF • Closing an MDTF

  5. Training package for UNDAF roll-out countries • Integrated in 2011 UNDAF regional workshops in Bangkok, Kigali, Dakar and Panama • UNDG content developed and presented at workshops by JF sub-committee members • Covers both Joint Programmes and MDTFs • Available in English, French and Spanish • Can be used for training at UNDG level (RC/HCs, RCOs, etc.), within individual UN agencies and for training other stakeholders.

  6. UN inputs on Transition Financing: into INCAF, Intern. Dialogue & Busan • 2010 Study on Pooled Funding in Transition Situations • Inputs in different versions of the draft INCAF Transition Financing Guidance  messaging around UN and World Bank MDTFs • UN’s key messages for Monrovia meeting of International Dialogue • Key messages on Transition Financing for UN preparation for High Level Forum IV on Aid Effectiveness in Busan

  7. UN inputs into INCAF-process:DRAFT table on aid instruments

  8. What are Your Options? MDTF & Joint Program Modality Bilateral Modality Donors • For MDTFs & Joint Programs: • Standard UNDG Pre-Agreed Documentation: • Memorandum of Understanding (MOU) • Standard Administrative Arrangement (SAA) • Structural Cost clearly defined and agreed between Donors and UN Agencies • AA = Focal Point for all administrative processes (i.e. contributions, reporting etc.) • A Steering Committee consisting of representatives from the Donor(s), UN Participating Agencies, RC and Local Government determine the scope of the supported initiative and/or program and how monies are spent. Donor Donors Donor or Donors UN Agency Administrative Agent UN Agency (B) UN Agency (A) UN Agency (C) Agreed upon Country Program / initiative Agreed upon Country Program / initiative Joint Program MDTF Bilateral Program Scope & Flexibility Broader Narrower

  9. Value added of MDTFs to UN system Enhance coherence and efficiency at country/global levels through: Mobilize resources jointly (with harmonized cost-recovery and legal instruments) Enhance capacity to allocate resources strategically Respond to increased demand from donors to work jointly (Paris Declaration/Accra) Strengthen national ownership (country-level) Strengthen programming support of specific thematic objectives shared by multiple UN Organizations (global) Draw on comparative strengths of UN organizations, including non-resident agencies Facilitate coherent and consolidated reporting

  10. When is it strategic for UN system to establish an MDTF? Programmatic needs: • What long-term strategic, multi-agency UN programmes benefit from a MDTF mechanism? - Humanitarian: what criteria for establishment of a new CHF? - Transition: combining and sequencing UN and World Bank MDTFs? - Development: One UN Fund to support new UNDAF? Global MDTFs? Coordination issues: • What type of UN agendas benefit from the enhanced coordination and coherence that MDTFs bring? Financial Issues: • What type of MDTFs attracts sufficient donor interest to be financial viability? • What to do when donors are interested in UN programme and MDTF coordination mechanism, but not in contributing through MDTF ?

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