Joint Financing Arrangement (JFA) between. the ECOWAS Commission. and. its Funding Partners. concerning. Funding Partner Support to the Implementation

Transcription

1 DISCUSSION DRAFT, Revised July Joint Financing Arrangement (JFA) between the ECOWAS Commission and its Funding Partners concerning Funding Partner Support to the Implementation of the ECOWAS Commission Capacity Development Plan (ECCDP) Volume 1: JFA and Annexes [July ]

2 TABLE OF CONTENTS PREFACE DEFINITIONS GENERAL PROVISIONS PLANNING AND DISBURSEMENT PROVISIONS REPORTS, REVIEWS AND AUDITS PROCUREMENT FINANCIAL MANAGEMENT JFA FUNDING PARTNER COODINATION MODALITIES CONTRIBUTIONS OF THE JFA FUNDING PARTNERS BUSINESS STANDARDS DISPUTE RESOLUTION NON-COMPLIANCE FORCE MAJEURE MEANS TO ADMIT NEW JFA FUNDING PARTNERS AMENDMENT OF THE JOINT FINANCING ARRANGEMENT ENTRY INTO EFFECT AND DURATION WITHDRAWAL FROM THE JOINT FINANCING ARRANGEMENT INFORMATION AND NOTICES SIGNATORIES TO THE JOINT FINANCING ARRANGEMENT...16 Annex 1: The JFA Funding Partners...17 Annex 2: ECOWAS Commission Capacity Development Plan...19 Annex 3: Annual Capacity Building Work Plan...20 Annex 4: Firm and Indicative ECOWAS and JFA Funding Partner Contributions (Financing Plan)...21 Annex 5: Pool Fund Procurement Thresholds...22 Emma BOA 4/4/13 11:06 AM Supprimé: 12 Emma BOA 4/4/13 11:06 AM Supprimé: 14 Emma BOA 4/4/13 11:06 AM Supprimé: 15 2

3 PREFACE 1. Whereas the Commission of the Economic Community of West African States (hereinafter referred to as the ECOWAS Commission) has requested the support of its Development Partners to contribute towards the funding of its Capacity Development Plan ; 2. Whereas the ECOWAS Commission will provide a contribution to the Capacity Development Plan as set out in Annex 4; 3. Whereas the Development Partners, desiring to collaborate on the implementation of the [ECOWAS Commission Capacity Development Plan (ECCDP) ] and its subsequent versions acceptable to the Joint Financing Arrangement (JFA) Funding Partners, have committed themselves to work together to support the ECCDP through a common capacity building programme for which they will provide coordinated financial and technical assistance as requested by the ECOWAS Commission; 4. Whereas the Development Partners signatories to this JFA have accepted the principles of harmonisation as reflected in the Paris Declaration on Aid Effectiveness, the Accra Agenda for Action and this JFA, and to strive for the highest degree of alignment with the budgetary and accountability systems and legislation of the ECOWAS Commission so as to enhance effective implementation, to reduce the administrative burden on the ECOWAS Commission and to minimise transaction costs; 5. Whereas a number of the JFA Funding Partners, as set out in Annex 1, (hereafter referred to as the Pool Funding Partners), will provide their funding to a specific subset of activities under the Capacity Development Plan through the mechanism of a Pool Fund; 6. Whereas a number of the JFA Funding Partners, as set out in Annex 1, (hereafter referred to as the Earmarked Funding Partners), will provide their funding to a specific subset of activities under the Capacity Development Plan through individual mechanisms in parallel to the Pool Fund, without prejudice to their accepting that some of their funds may be managed according to specific ECOWAS manuals and/or procedures; 7. Whereas the ECOWAS Commission and the Pool Funding Partners have reached an understanding on common procedures for consultation and decision-making, disbursement mechanism, monitoring and reporting, review and evaluation, audit, financial management and the exchange of information and cooperation between the Pool Funding Partners and the ECOWAS Commission as reflected in this JFA; and 8. Whereas respect for good governance, which govern the domestic and international policies of the JFA Funding Partners, as well as sound and transparent financial and procurement practices in ECOWAS that counter corruption, are the fundamental principles on which the cooperation among the JFA Funding Partners rests and constitute essential elements of this JFA; Now, therefore, the Signatories have decided as follows: 1 DEFINITIONS For purposes of this JFA, the following provisions have the following meanings: 3

4 Annual Capacity Building Work Plan (ACBWP) means the rolling annual plans and budgets prepared in accordance with Section 3 detailing the ECOWAS Commission capacity building activities to be carried out in each fiscal year. Development Partners means all governmental and multilateral agencies supporting capacity building in the ECOWAS Commission. Pool Funding Partners means the Development Partners listed in Annex 1 as participants in the Pool Fund and any other national or international agencies or organizations which may join this Joint Financing Arrangement in accordance with Section 12, which will pool their funds for the Capacity Building Work Plan in accordance with Section 7. Earmarked Funding Partners means the Development Partners listed in Annex 1 as participants in the JFA, but not in the Pool Fund, and any other national or international agencies or organizations which may join this JFA in accordance with Section 11, and which will provide earmarked contributions to the Capacity Building Work Plan in accordance with Section 7. JFA Funding Partners means, collectively, the Pool Funding Partners and the Earmarked Funding Partners. Participants means, collectively, the JFA Funding Partners and the ECOWAS Commission. 2 GENERAL PROVISIONS SECTION 2.1 This JFA sets out the responsibilities of the ECOWAS Commission and the JFA Funding Partners in relation to the ECOWAS [ECOWAS Commission Capacity Development Plan ] and subsequent versions of the work plan as approved by the ECOWAS Commission and accepted by the JFA Funding Partners signatories to this JFA. The ECCDP derives from the ECOWAS Strategic Plan , which sets the direction for and establishes a strategy for the fulfilment of the ECOWAS Vision This strategic plan offers a mission for the ECOWAS institutions that aligns with the Vision of the region. It focuses on defining strategic priorities in ways that would sustain a dynamic and proactive process of development. The scope of the strategic framework emanates from the strategic pillars to promote good governance, justice and upgrade the conflict prevention, management, and resolution mechanism; promote the development of Infrastructure for a competitive business environment, sustained development and cooperation in the region; deepen economic and monetary integration; reinforce institutional capacity and strengthen the mechanism for integration into the global market down to the goals and then to the strategies and objectives levels. Beyond the objectives level are the action plans that would detail the activities corresponding to the strategic objectives and a capacity building strategy and plan that seek to identify and fill the capacity gap. In the years ahead, a more coherent and comprehensive package is envisaged to support institutional capacity development process. It would be guided by the following: Recognition that the process is a long-term and continuing one, and must be conceived within the framework of the overall strategic plan and medium-term action plan. Recognition that governance, transparency and accountability in the area of institutional capacity building remain critical to the successful implementation of regional programmes. ECOWAS institutional capacity development to entrench strategic thinking and set strategic direction will lead to effective implementation of regional programmes. 4

5 Institution of a culture of excellence as an essential platform for transforming the ECOWAS institutions into a knowledge-based one and turning the staff into beacons and instruments to spearhead the regional development process. Introduction of an objective and participatory approach to the institutional development process to make it enjoy ownership, acceptability and sustainability. Prioritization and phasing of institutional capacity development to meet the challenges of the new transformation. Development of team-work, inter-departmental relations, time-management and computer skills to achieve greater operational efficiency. Sustenance of the institutional capacity by making material and other logistic supports a vital element of the capacity building process. Clarity and consistency in management policies and procedures, these being major strategic issues that would promote institutional development. The activities contained in the [ECOWAS Commission Capacity Development Plan ] are presented in Annex 2, which also includes Logical Framework information on outcomes and indicators of success for each activity. The summary budget for the Capacity Building Work Plan is shown in Annex 3. The budget includes an unallocated contingency to cover any unforeseen demands that may arise during the course of the execution of the Annual Capacity Building Work Plan; the procedures for accessing the contingency are set out in the JFA Operational Guidelines. JFA Funding Partner and ECOWAS planned contributions to the Capacity Development Plan are shown in Annex 4. Contributions channelled through the Pool Fund will be used exclusively to fund activities under the Annual Capacity Building Work Plan. The ECOWAS Commission will be fully accountable and responsible for the implementation of the Annual Capacity Building Work Plan and for the management of the financial contributions of the JFA Funding Partners in accordance with the Financial and Procurement Procedures set out in this JFA and in any relevant Bilateral Agreements. The JFA Funding Partners bear no responsibility or liability vis-à-vis any third party for projects or activities administered by the ECOWAS Commission and carried out pursuant to this JFA. In matters pertaining to the implementation of this JFA, the ECOWAS Commission will be represented by its President. The JFA Funding Partners will be represented by the Lead JFA Partner designated in the JFA Operational Guidelines. Any Participant who becomes aware of any circumstance that may interfere, or threaten to interfere, with the successful implementation of the Annual Capacity Building Work Plan shall immediately inform the other Participants of this circumstance and discuss with the other Participants what remedial action might be taken in accordance with the procedures set out in this JFA. In this context, the Participants have recognised the benefits of developing a risk management strategy for ECOWAS comprising a register of potential risks and procedures for identifying, monitoring and mitigating risks to cover the ACBWP in particular and its broader regional strategic development activities in general. The explicit identification and monitoring of risks would help to ensure that timely decisions are taken to identify any problems or delays in programme implementation or to develop measures to deal with unforeseen situations, all of which would contribute to the sound implementation of 5

6 ECOWAS programmes. The strategy will set out a timetable for periodic risk assessments and the arrangements for reviewing the risk assessments, including discussing with JFA Funding Partners any implications of the risk assessments for the JFA. SECTION 2.2 This JFA is adopted pursuant to and subject to Bilateral Agreements entered into between the ECOWAS Commission and the JFA Funding Partners for the purpose of financing the Capacity Development Plan. The JFA Funding Partners will refrain, as far as possible, from setting conditions in the bilateral agreements that contradict or diverge from the spirit or, of provisions of this JFA. This JFA sets out common disbursement, procurement, financial management, audit, and monitoring and reporting arrangements in relation to the Pool Funded portion of the Annual Capacity Building Work Plan. It does not constitute an international treaty. With a view to seeking deeper coordination and harmonisation and to attempt to reduce the development partner coordination and management burden on the ECOWAS Commission, the JFA Funding Partners accept the following guiding principles and will: follow and accompany the ECOWAS Commission s lead and impetus, which implies that they will take account of and respect the strategic priorities of the ECOWAS Commission. Progress will be measured through common performance indicators; not divert the priorities of the ECOWAS Commission by way of separate funding toward the attainment of their own objectives; respect, as far as is consistent with their institutional procedures, the rules and regulations of the ECOWAS Commission, including those concerning classification and rates of pay for: (i) salary; (ii) standard payment rates for short- and long-term consultants; (iii) per diem and honoraria; and (iv) procurement. coordinate and schedule their evaluations, audits and other administrative or performance exercises with a view to carrying out such exercises jointly to the extent possible so as to reduce the burden on the ECOWAS Commission and increase the sharing of knowledge and lessonslearned from such exercises; inform each other of any new initiative (programme/project, technical assistance scheme) being considered; work together with the aim of harmonizing JFA Funding Partners assistance to the ECOWAS Commission and ensuring coherence of the objectives and approaches followed. accept the ECOWAS Commission s fiscal year (January 1-December 31) for all ECOWAS Commission reports (financial and narrative); accept common narrative and financial reporting, i.e., reporting on the ECOWAS Commission s Annual Capacity Building Work Plan or on any of its sub-programmes; work with the ECOWAS Commission to develop a programming and financial reporting regime which takes into account and reflects all the ECOWAS Commission capacity building activities and expenditures (overall or in a specific sector/division) and the contribution of each development partner--and the ECOWAS Commission itself--to the activity or expenditure; and maintain contact and inform one another of their intentions through the most appropriate means. 6

7 SECTION 2.3 DISCUSSION DRAFT, Revised January Any matter not expressly provided for in this JFA will be governed by the Bilateral Agreements referred to in Section 2.2. In the event of any inconsistency or conflict between the provisions of this JFA and the Bilateral Agreements, the latter will apply. SECTION 2.4 This JFA governs the arrangements and procedures under which support from the JFA Funding Partners will be provided to or through the ECOWAS Commission for implementation of the Capacity Development Plan. The provisions of this JFA will guide both Pool Funding contributions and Earmarked Funding contributions of the undersigned JFA Funding Partners. Although the provisions related to the Pool Fund do not apply to the Earmarked Funding Partners, the Earmarked Funding Partners will provide equivalent information as requested by the ECOWAS Commission in a timely manner. Equally, the ECOWAS Commission will provide the JFA Funding Partners with complete and timely information regarding the provision and use of contributions from its own resources for the implementation of the Annual Capacity Building Work Plan. SECTION 2.5 The procedures and arrangements set out in this JFA are complemented by the ECOWAS Tender Code and Procurement Manual (see Section 5), the ECOWAS Financial Regulations and Manual of Accounting Procedures (see Section 6) and the ECOWAS Capacity Building JFA Operational Guidelines issued as Volume 2 of this JFA. The planning and programming modalities as well as the terms of reference and formats for reports required under this JFA are specified in the Operational Guidelines. All of the above manuals and guidelines have been approved by the Pool Fund Partners and by those Earmarked Funding Partners whose funding will be managed according to specific ECOWAS manuals and guidelines. The manuals and guidelines may be modified from time to time by written agreement of all the Participants who have accepted their use. The Operational Guidelines set out the modalities by which such modifications will be undertaken. Funds provided by Earmarked Funding Partners that have not accepted the use of the ECOWAS Commission manuals will be managed according to procedures set out in their individual Bilateral Agreements. ECOWAS encourages Earmarked Funding Partners who initially use their own procedures to consider, in the spirit of the Paris Declaration, the option of using the harmonised Pool Fund procedures and to revisit the option of using the harmonised Pool Fund procedures with a view to increasing the efficiency of JFA operations. Upon signature of this JFA, the ECOWAS Commission and the JFA Funding Partners will jointly organise a Launch Seminar for stakeholders to ensure that all stakeholders are familiar with the modus operandi of the JFA and training sessions to ensure that all the ECOWAS Commission staff and designated partner representatives are trained in the use of the JFA manuals and guidelines. 7

8 3 PLANNING AND DISBURSEMENT PROVISIONS These provisions apply to the JFA as a whole with no distinction between Pool Funding and Earmarked Funding Partners. SECTION 3.1 The annual planning cycle for the Capacity Development Plan is described in the Operational Guidelines. SECTION 3.2 The Annual Capacity Building Work Plan outputs, expected outcomes and impact monitoring indicators, as set out in Annex 2, will constitute the accepted programme for each January 1 to December 31 period. Changes in the Annual Capacity Building Work Plan may be approved during the periodic review meetings referred to in Section 4.2 or by written agreement of the Participants at other times. 4 REPORTS, REVIEWS AND AUDITS These provisions apply to the JFA as a whole with no distinction between Pool Funding and Earmarked Funding Partners. SECTION 4.1 The ECOWAS Commission will manage the process of reports, evaluations, audits and reviews according to the procedures and periodicity set out in the Operational Guidelines. The ECOWAS Commission will provide periodic Capacity Building Work Plan Monitoring Reports according to the format and periodicity set out in the Operational Guidelines within 30 days of the end of each review period. The periodic Annual Capacity Building Work Plan Monitoring Reports will contain information on Annual Capacity Building Work Plan output achievements, financial activity, procurement and recruitment. SECTION 4.2 The Participants will meet on a regular basis to review the periodic Annual Capacity Building Work Plan Monitoring Reports. The scope of review and agenda for these review meetings will be in accordance with the terms of reference in the Operational Guidelines. The meetings will take place within 45 days of the end of the review period as set out in the Participants Meeting Schedule in the Operational Guidelines, unless otherwise determined by the Participants. Review meetings coinciding with submission of the Annual Capacity Building Work Plan financial audit report and the annual procurement audit report referred to in Sections 4.5 and 5.5 below will also review audit findings. SECTION 4.3 The ECOWAS Commission will provide, by February 28 of each year, annual progress reports for the preceding year according to the terms of reference and format in the Operational Guidelines, starting in February SECTION 4.4 The ECOWAS Commission will commission external evaluations to assess the implementation of the Annual Capacity Building Work Plan under the terms of reference specified in the Operational Guidelines every three years, starting with the period [ ]. Such evaluations may be financed under the Pool Fund. 8

9 SECTION 4.5 DISCUSSION DRAFT, Revised January The ECOWAS Commission will, as part of its annual audit, commission a comprehensive external financial and management conformity audit of the Annual Capacity Building Work Plan and its internal control systems, especially those of the Pool Fund, to be carried out by an internationally recognized reputable auditing firm acceptable to the JFA Funding Partners in accordance with internationally accepted auditing standards. The independent, external audit will cover all funds available to the ECOWAS Commission for implementation of the Annual Capacity Building Work Plan, irrespective of the source of funding. Audits will be carried out according to terms of reference included in the Operational Guidelines. The JFA Funding Partners have accepted that the additional costs of the ACBWP financial and management conformity audit over and above the costs of the normal annual ECOWAS audit may be included in the Annual Capacity Building Work Plan and the Pool Funding Partners have accepted that the additional costs may be funded by the Pool Fund. The ECOWAS Commission will furnish the JFA Funding Partners with copies of the annual audit report of the External Auditor on the ECOWAS Commission s Financial Statements, including expenditure under the ACBWP, the accounts of the Pool Fund and compliance with its procedures. The annual audit report will be presented to the JFA Funding Partners promptly after its completion, but not later than [August 31] of the following year. The ECOWAS Commission will present to the JFA Funding Partners, in good time for discussion at the next periodic review meeting, a statement of how it plans to deal with any issues raised in the auditors Management Letter. 5 PROCUREMENT Procurement under the ACBWP, whether carried out under the Pool Fund or earmarked funding partner procedures, will respect the principles of economy (obtaining the best prices that reflect value for money), efficiency (ensuring that the time and cost of the procurement process is commensurate with the type of procurement being undertaken), transparency (ensuring that bid evaluation criteria, evaluations and contract awards are open and justifiable and that conflicts of interest are avoided) and competitive (ensuring that all potential bidders have a reasonable opportunity to participate in the bidding process). Doing this and reporting on it will provide: essential information to those who manage, implement and supervise the Annual Capacity Building Work Plan; comfort to borrowers, lenders and the development community that funds have been used efficiently and for the purposes intended; and a deterrent to fraud and corruption, because they incorporate strong internal control and transparent procurement reporting systems, which identify unusual occurrences and deviations. POOL FUNDING PARTNERS PROCUREMENT PROVISIONS SECTION 5.1 ECOWAS and its Pool Fund Partners intend that procurement of all goods, works and services financed under the Pool Fund will be as specified in the ECOWAS Commission Tender Code as approved by the ECOWAS Council of Ministers on [insert precise date] and the ECOWAS Procurement Manual as approved by the ECOWAS President on [insert precise date]. 9

10 [Should these documents not have been approved by the date of effectiveness of this JFA, ECOWAS will continue to follow the World Bank Procurement Procedures adopted in Annex 3, Financial and Procurement Procedures, attached to the original capacity building JFA signed on [insert date] until such time as the revised ECOWAS documents will have been approved by the ECOWAS Authorities and the Pool Funding Partners.] SECTION 5.2 Any deviation from the policies and procedures detailed in the ECOWAS Tender Code and Procurement Manual or from the procurement procedures established in this JFA, its annexes and Operational Guidelines may result in misprocurement, in which event each Pool Funding Partner may cancel from its next respective contribution an amount equivalent to the contract amount multiplied by its percentage participation in the Pool Fund US Dollar financing account referred to in the Operational Guidelines. SECTION 5.3 According to the timetable set out in the Operational Guidelines, the ECOWAS Commission will submit to the Pool Fund Partners, for review and approval an annual Procurement Plan determining the goods, works and services required by the ECOWAS Commission to implement the approved Annual Capacity Building Work Plan for the following fiscal year. The plan will define the methods for procurement of goods, works and consulting and non-consulting services and the methods for selection of consultant services in compliance with the thresholds set out in Annex 5 Pool Fund Procurement Thresholds with a level of detail acceptable to the Participants. Any revisions to the procurement plan will require the concurrence of the Pool Funding Partners. SECTION 5.4 Individual bidding packages estimated to cost more than the threshold stipulated in Annex 5 Pool Fund Procurement Thresholds will be subject to prior review by the Pool Funding Partners. The Pool Funding Partners have informed the other Participants that the reviews will be carried out and clearances on procurement provided on behalf of the Pool Funding Partners by the funding partner designated by them in the Operational Guidelines. The Procurement Thresholds may be revised from time to time based on the recommendations of the annual procurement evaluations following a review by the ECOWAS Commission, the Pool Funding Partners and those Earmarked Funding Partners who have accepted the use of the thresholds. The ECOWAS Commission will not split procurement packages into smaller packages merely to allow the use of less competitive procurement methods or to avoid prior review by the Pool Funding Partners. All contracts that are not subject to prior review will be subject to procurement ex post review by the Pool Funding Partners through their designated Procurement Representative and/or by the independent procurement auditors referred to in the following section. SECTION 5.5 The ECOWAS Commission will commission an annual external audit of procurement under the Pool Fund by a recognized firm with expertise in this field to be appointed by the ECOWAS Commission following a competitive selection process acceptable to the Pool Funding Partners. The procurement audit will be carried out according to terms of reference included in the Operational Guidelines and will be financed out of the Pool Fund. The procurement audit report will be provided to the Pool Funding Partners by the ECOWAS Commission by March 31 of each year. 10

11 The periodic review meeting immediately following the submission of the procurement audit will review any recommendations for improvements or modifications to procedures and/or thresholds. EARMARKED FUNDING PARTNERS PROCUREMENT PROVISIONS SECTION 5.6 In cases where an Earmarked Funding Partner does not accept the ECOWAS Tender Code and Procurement Manual, the ECOWAS Commission will follow the procurement procedures stipulated in the relevant Bilateral Agreement of that Earmarked Funding Partner, without prejudice to that Earmarked Funding Partner s subsequently accepting the use of the ECOWAS Commission s Tender Code and Procurement Manual. 6 FINANCIAL MANAGEMENT ECOWAS Financial Regulations and the Manual of Accounting Procedures will ensure a reliable financial management system that promotes transparency and encourages orderly and systematic documentation of the financial transactions of the Annual Capacity Building Work Plan in order to facilitate timely preparation of accurate, relevant and reliable financial information that will enable the various stakeholders to plan, implement, monitor, and appraise the programs overall progress towards the achievement of its objectives. By doing this, it will provide: essential information to those who manage, implement and supervise the Annual Capacity Building Work Plan; comfort to borrowers, lenders and the development community that funds have been used efficiently and for the purpose intended; and a deterrent to fraud and corruption, because they incorporate strong internal control and transparent financial reporting systems which identify unusual occurrences and deviations. POOL FUNDING PARTNERS FINANCIAL MANAGEMENT PROVISIONS SECTION 6.1 Funds provided to the ECOWAS Commission by the Pool Funding Partners will be managed according to the highest financial standards, following the procedures and processes set out in the ECOWAS Financial Regulations as approved by the ECOWAS Council of Ministers on May and the ECOWAS Manual of Accounting Procedures as approved by the ECOWAS Management on April [If a Manual of Budget Procedures is to be produced, a reference to it should be inserted here.] EARMARKED FUNDING PARTNERS FINANCIAL MANAGEMENT PROVISIONS SECTION 6.2: In cases where an Earmarked Funding Partner does not accept the ECOWAS Financial Regulations and the Manual of Accounting Procedures, the ECOWAS Commission will follow the financial management procedures stipulated in the Bilateral Agreement of the Earmarked Funding Partner, without prejudice to any individual Earmarked Funding Partner s subsequently accepting the use of the ECOWAS Financial Regulations and the Manual of Accounting Procedures. 7 JFA FUNDING PARTNER COODINATION MODALITIES Implementation of tasks related to reports, reviews and audits, procurement or financial management, as set out in sections 4, 5 & 6 above, will require coordination of the inputs of JFA Funding Partners to 11

12 ensure that they do not become a bottleneck to ACBWP execution. In the spirit of the Paris Declaration and to reduce the administrative burden on ECOWAS, the JFA Funding Partners have adopted a concerted approach to coordination, work-sharing and division of labour. JFA Funding Partners modalities for reviewing plans, programmes, task and financial reports and for the issuing of nonobjections when required are set out in the Operational Guidelines. 8 CONTRIBUTIONS OF THE JFA FUNDING PARTNERS SECTION 8.1 In order to ensure funding stability for the ECOWAS Commission, the JFA Funding Partners will provide the ECOWAS Commission with a broad indication of their potential five (5) year contributions to the ECCDP, as well as the amounts that they plan to contribute to the rolling ACBWP, with firm commitments for the first year and firm or indicative commitments for the second and third years, setting out the amounts expected to be provided by the JFA Funding Partners. ECOWAS will provide the JFA Funding Partners with a broad indication of its potential five-year contributions from its own resources to the Capacity Development Plan, as well as the amounts that it plans to contribute to the rolling ACBWP, with a firm commitment for the first year and firm or indicative commitments for the second and third years, setting out the amounts expected to be provided by ECOWAS. Firm commitments for the first year of the ECCDP as well as firm commitments and indicative contributions (as available) for the second and third years of the ECCDP are presented in Annex 4 to this JFA. Indicative contributions set out in Annex 4 do not constitute pledges of the Participants. SECTION 8.2 The allocation, disbursement and use of funds in support of the ECCDP will be directed through: a Pool Fund for general application of contributions provided by Pool Funding Partners to a subset of activities under the approved ACBWP; or earmarked contributions provided by Earmarked Funding Partners, directed towards specific projects or budget lines in the ACBWP. The modalities governing funding and pooling of funds are set out in the JFA Operational Guidelines. SECTION 8.3 Funds provided by the Pool Funding Partners through the Pool Fund will be used exclusively to finance expenditures under the agreed ACBWP. The categories of expenditure regarded as eligible or ineligible expenditures to be financed from the Pool Fund are set out in the JFA Operational Guidelines. All travel expenses financed by the Pool Fund will comply with ECOWAS Commission travel procedures, except as may be specifically provided for in the JFA Operational Guidelines. Any expenditure restrictions of Earmarked Funding Partners will be spelled out in their Bilateral Agreements. 12

13 SECTION 8.4 DISCUSSION DRAFT, Revised January Using the Annual Capacity Building Work Plan Monitoring Report format in the Operational Guidelines, the ECOWAS Commission will request disbursements from the Pool Funding Partners for a period of six months based on the revised expenditure forecast for the approved Annual Capacity Building Work Plan. The Pool Funding Partners will release their funds upon receipt of a completed Disbursement Request and adequate narrative, financial, procurement and recruitment reports on the ACBWP, as decided during the previous periodic review meeting. Disbursement procedures for Earmarked Funding Partners will be spelled out in their Bilateral Agreements. SECTION 8.5 The JFA Funding Partners will report to the ECOWAS Commission their disbursements and balances for all contributions relating to the Annual Capacity Building Work Plan, including payments made directly to suppliers and any other contributions, including contributions in kind. SECTION 8.6 JFA Funding Partners contributions will not be used to pay the cost of any import duties, customs duties or domestic taxes imposed directly or indirectly by the Government of Nigeria nor any salaries, wages, bonuses or other entitlements of civil servants of ECOWAS or of the Governments of the Member States of ECOWAS. 9 BUSINESS STANDARDS The ECOWAS Commission will require that its staff and consultants under projects or programmes financed by the JFA Funding Partners refrain from offering third parties, or seeking, accepting or being promised from or by third parties, for themselves or for any other party, any gift, remuneration, compensation or benefit of any kind whatsoever, which could be interpreted as an illegal or corrupt practice. The ECOWAS Commission will take all necessary steps to stop, investigate and prosecute, in accordance with relevant laws, any person (s) suspected of misuse of resources or corruption. The ECOWAS Commission will promptly inform the JFA Funding Partners of any instances of corruption referred to in the previous paragraph and of the action that it has taken. ECOWAS has recognised the need to develop an explicit Anti-corruption Policy. Once the policy is approved, ECOWAS will include in the Annual JFA Report an analysis of any implications of the Anti- Corruption Policy for the JFA. 10 DISPUTE RESOLUTION SECTION 10.1 Any differences that may arise as to the interpretation, application or implementation of this JFA will be addressed through consultations among the Participants with a view to seeking an amicable resolution. Any Participant can initiate the consultation process. In the event of any failure to implement or to report on the Annual Capacity Building Work Plan in a manner consistent with the terms of the JFA, a high-level consultation meeting will be organized 13

14 promptly to assess the situation and decide on a way forward. Any Participant may call for a high-level consultation meeting. SECTION 10.2 Should it not be possible to resolve the situation through consultations within three months, any or all of the JFA Funding Partners may suspend funding in whole or in part according to the processes set out in the JFA Operational Guidelines. 11 NON-COMPLIANCE In the case of serious non-compliance with the provisions of this JFA and/or violation of the fundamental principles set out in this JFA on the part of the ECOWAS Commission, the JFA Funding Partners may suspend further disbursements to the Annual Capacity Building Work Plan and claim reimbursement of part or all of any funds already transferred. Such non-compliance could include inter alia substantial deviations from approved plans and budgets, misuse of funds, non-compliance with any preconditions relating to the implementation of the Annual Capacity Building Work Plan. If a JFA Funding Partner intends to suspend new disbursements or terminate its support for the Annual Capacity Building Work Plan, the JFA Funding Partner will either consult with the other JFA Funding Partners in order to reach a joint position on the measures required, remedial or otherwise, and the notice period to be given to the ECOWAS Commission to implement the measures, required or inform the other JFA Funding Partners of its intentions regarding the continuation or discontinuation of its support. In the case of serious non-compliance with the provisions of this JFA and/or violation of the fundamental principles set out in this JFA on the part of a JFA Funding Partner, the ECOWAS Commission may suspend that JFA Funding Partner from the JFA. Such non-compliance could include inter alia substantial deviations from approved plans and budgets, failure to disburse funds, non-compliance with joint harmonisation objectives relating to the implementation of the Annual Capacity Building Work Plan. 12 FORCE MAJEURE The JFA Funding Partners may suspend or reduce new disbursements in the event of extraordinary circumstances beyond the control of the ECOWAS Commission, which hinder effective implementation of the Annual Capacity Building Work Plan. If the JFA Funding Partners consider suspending new disbursements they will consult with the ECOWAS Commission at least three (3) months in advance. The suspension will be lifted as soon as these circumstances have ceased to exist and/or the ECOWAS Commission and/or the JFA Funding Partners concerned have implemented appropriate remedial actions. 13 MEANS TO ADMIT NEW JFA FUNDING PARTNERS New JFA Funding Partners may join this JFA on the basis of: application to join the JFA; acceptance in writing by the ECOWAS Commission and the JFA Funding Partners; written acceptance of the provisions of this JFA; the new JFA Funding Partner has the legal authority to enter into this arrangement. 14

15 14 AMENDMENT OF THE JOINT FINANCING ARRANGEMENT This JFA may be amended at any time upon the written agreement of all Participants. 15 ENTRY INTO EFFECT AND DURATION This JFA together with its Annexes and Operational Guidelines will come into effect on the date of signature below by the ECOWAS Commission and a minimum of three Pool Funding Partners. The JFA will remain in effect for the duration of the ECOWAS Commission Capacity Development Plan and may be extended by agreement in writing by the Participants. 16 WITHDRAWAL FROM THE JOINT FINANCING ARRANGEMENT Any JFA Funding Partner, following consultation with the other Participants, may terminate its participation in this JFA by three month s written notice to the other Participants. Any such notice shall not affect funds contractually committed to activities for which a Pool Fund Partner or Earmarked Funding Partner non-objection has been received by ECOWAS, except in cases of misprocurement when a JFA Funding Partner retains the right to cancel that portion of its funding allocated to the goods and works that have been misprocured and to require repayment of any of its funds that may have been inappropriately applied. A withdrawing JFA Funding Partner may decline to advance any undisbursed funds allocated to the ECCDP and may request ECOWAS to return any funds disbursed but not yet contractually committed to specific ACBWP activities. 17 INFORMATION AND NOTICES SECTION 17.1 The Participants will furnish to each other all such information relating to the Annual Capacity Building Work Plan as may reasonably be requested. SECTION 17.2 Any notices or documents given, made or sent by the Participants pursuant to this JFA will be in writing and will be deemed to have been duly given, made or sent to the organization or person to which it is addressed at the time of its delivery by hand, mail, facsimile, or courier at its respective address, as listed in Annex 1. SECTION 17.3 Any Participant hereto may, by written notice to the other Participants, change the address to which any notice or request for the Participant so giving such notice will be addressed. SECTION All communication and documents submitted to any Participant will be in the English language, except TORs and/or bidding documents that may need to be drafted in French or Portuguese. 15

16 18 SIGNATORIES TO THE JOINT FINANCING ARRANGEMENT In witness hereof the undersigned Participants, acting through their duly authorized representatives, have signed this JFA in their names: ON BEHALF OF THE ECOWAS COMMISSION [insert names, positions, affiliations, addresses and date signed] ON BEHALF OF THE JFA PARTNERS 16

17 Annex 1: The JFA Funding Partners The nature of each JFA Funding Partner s participation in the ECOWAS Commission Capacity Building Plan and in the Pool Fund to be confirmed by each Development Partner A1 (a) POOL FUNDING AND EARMARKED FUNDING PARTNERS Pool Funding Earmarked Funding Earmarked Funding (ECOWAS Managed Accounts) (Direct Payments by DPs) ACBF African Development Bank Canada Canada Denmark UK UK European Union European Union European Union Finland Finland France Germany Germany Japan Japan Netherlands Norway Portugal Spain Spain Spain Sweden UNDP USA USA World Bank World Bank 17

18 A1 (b) JFA FUNDING PARTNER ADDRESSES 18

19 Annex 2: Plan ECOWAS Commission Capacity Development A draft ECOWAS Commission Capacity Development Plan was provided to development partners by ECOWAS on October and Pool Fund Partners comments were transmitted to ECOWAS on January

20 Annex 3: Annual Capacity Building Work Plan To be provided once Capacity Development Plan is agreed. 20

21 Annex 4: Firm and Indicative ECOWAS and JFA Funding Partner Contributions (Financing Plan) To be provided once ACBWP is agreed. 21

22 Annex 5: Pool Fund Procurement Thresholds The following procurement thresholds will apply to the procurement of Goods, Works and Related Services and of Consulting Services required for the ACBWP, procured under the provisions of the ECOWAS Tender Code and Manual of Procurement Procedures i and paid for out of the Pool Fund. Procurement of Goods, Works and Related Services a. For purchases estimated below $30,000, ECOWAS may shop from any location and will request quotations from at least (3) suppliers. b. For purchases between $30,000 and $100,000 ECOWAS will proceed to formally request tenders from qualified suppliers from countries in the ECOWAS region using National Competitive Bidding. c. For purchases above $100,000 ECOWAS will proceed to formally request tenders from qualified suppliers using International Competitive Bidding. d. With the Pool Funding Partners prior non-objection, goods and services may be procured through a non-competitive process; such purchases will be fully justified on the ECOWAS purchase file in compliance with the ECOWAS Tender Code and Manual of Procurement Procedures. Procurement of Consulting Services a. For quality and cost-based selection, the short list of consultants for activities estimated to cost less than US$100,000 equivalent per contract may comprise only national consultants from ECOWAS member countries. For contracts greater than US $100,000, international consultants must be considered in the selection process. b. Should the services of individual consultants be required, they will be procured under the provisions of the ECOWAS Tender Code and Manual of Procurement Procedures. c. Services for activities costing less than US $10,000 equivalent per contract, may, with the Pool Funding Partners prior non-objection, be procured in accordance with the provisions of the ECOWAS Tender Code ([add correct reference] with respect to single source selection, following a non-objection in writing from the Pool Fund Partners to a proposal from ECOWAS. Prior Review for Pool Fund Procurement Any procurement for expenditure of $50,000 and above needs a prior review of and the non-objection of Pool Funding Partners to the proposed bidding documents, evaluation reports and draft contract. i As provided for in Section 5.1 of this JFA, should these documents not have been approved by the date of effectiveness of this JFA, ECOWAS will continue to follow the World Bank Procurement Procedures described in Annex 3, Financial and Procurement Procedures, attached to the original capacity building JFA signed on [insert date] until such time as the revised ECOWAS documents will have been approved by the ECOWAS authorities and accepted by the Pool Funding Partners. 22