APPENDIX E CANADIAN INTERNATIONAL DEVELOPMENT AGENCY FRAMEWORK POLICY FOR INTERNATIONAL DEVELOPMENT ASSISTANCE

Transcription

1 APPENDIX E CANADIAN INTERNATIONAL DEVELOPMENT AGENCY FRAMEWORK POLICY FOR INTERNATIONAL DEVELOPMENT ASSISTANCE

2 Table of Contents 1.0 INTRODUCTION Policy Objective and Application Approval and Amendment of the Framework Policy Exceptions to the Framework Policy Interpretation of the Framework Policy GENERAL PROVISION Background Relationship with the Planning, Reporting and Accountability Structure Financial Authority Procurement Authorities Eligible Costs Agreements or Memoranda of Understanding Payment Provisions Management Policies and Practices Audit and Evaluation Provisions CHANNELS FOR DELIVERY OF INTERNATIONAL ASSISTANCE Bilateral Aid Countries in Transition Multilateral Institutional Funding International Humanitarian Assistance Assistance Against Hunger, Malnutrition and Disease Canadian Partnership Education and Training Development Information... ANNEX A... ANNEX B... A-1 B-1

3 Acronyms and Abbreviations CEE CIDA DIP Gs&Cs GST IAE INGO MOU NGO ODA TARs TB TBS Ts&Cs VP-HRCS Central and Eastern Europe Canadian International Development Agency Development Information Program Grants and/or contributions Goods and Services Tax International Assistance Envelope International Non-Government Organization Memorandum of Understanding Non-Governmental Organization Official Development Assistance Technical Assistance Regulations Treasury Board Treasury Board Secretariat Terms and Conditions Vice-President - Human Resources and Corporate Services

4 1.1 Policy Objective and Application 1.0 INTRODUCTION The Canadian International Development Agency ('CIDA' or the 'Agency') Framework Policy for International Development Assistance (the 'Framework Policy') describes the specific requirements for each Channel of delivery as grants and/or contributions (Gs&Cs) under CIDA's aid program, within the International Assistance Envelope (IAE). This Framework Policy applies to all funding authorized under the CIDA's Terms and Conditions (Ts&Cs) for International Development Assistance approved by the Treasury Board (TB) under TB Minute of March 22, The purpose of the Framework Policy is to define the program parameters or criteria for each Channel of delivery, including its specific program objectives, eligibility requirements, financial requirements and any other factors particularly or uniquely relevant to the Channel. Channels correspond to the various classes of Gs&Cs, and are the mechanisms by which CIDA delivers its programs and projects. This Framework Policy is governed by policies reflecting Canada s Official Development Assistance (ODA) program and by the parameters governing Countries in Transition. It is also governed by, but not limited to, the Technical Assistance Regulations, Guidelines on Tied Aid and Untied Aid Authority, Government Contract Regulations, and Treasury Board Policy on Transfer Payments. Section 2, General Provisions, of this policy applies to all Channels. Section 3, Channels for Delivery of International Development Assistance, defines the additional criteria that apply to specific Channels. 1.2 Approval and Amendment of the Framework Policy This Framework Policy is approved by CIDA's President on the basis of a recommendation from the Executive Committee. This Framework Policy is reviewed periodically by a working group comprised of branch representatives and chaired by the Agency's Vice-President - Human Resources and Corporate Services (VP-HRCS), or such other senior officer as designated by the President. All proposals for modifications to this Framework Policy are reviewed by the working group which following due consultation within the Agency, will make recommendations to the Agency's VP-HRCS. The VP-HRCS will consolidate and coordinate proposed changes for presentation to the Executive Committee and the President. 1.3 Exceptions to the Framework Policy Exceptions to this Framework Policy are possible as long as they are within the limits set by CIDA's Ts&Cs for International Development Assistance or are within the authority delegated to the Minister by the TB. All proposals for exceptions to this Framework Policy will be submitted 1

5 by the branch head to the VP-HRCS who will undertake the appropriate consultations within the Agency and, when deemed necessary, with the Treasury Board Secretariat (TBS), before recommending to the Executive Committee and the President that the Minister approve the exception. 1.4 Interpretation of the Framework Policy Primary responsibility for the interpretation of this Framework Policy rests with the Program Manager, consulting with functional authorities if so required (Annex A contains a list of reference documents). 2.1 Background 2.0 GENERAL PROVISION The CIDA program and legislated authority is provided by the Parliament of Canada in annual appropriations. The vote wording provides authorization to CIDA to make Gs&Cs in cash payments, or in the provision of goods, commodities or services. The mandate of CIDA is to manage these voted financial resources on behalf of Canada. The purpose of Canada's ODA is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world. CIDA is also responsible for the delivery of programs to the countries of Central and Eastern Europe ('CEE' or 'Countries in Transition'). These programs are aimed at supporting democratic development and economic liberalization in CEE by building mutually beneficial relationships. Approximately 20% of the assistance efforts in Countries in Transition are currently eligible as ODA. Payments in support of eligible recipients are made through contracts, contributions agreements, grant agreements, standing offer arrangements, administrative arrangements, and recipient government contracts or other appropriate instruments ("contracts, agreements or arrangements"). These contracts and agreements are covered by the Ts&Cs for International Development Assistance, which set out the broad parameters for Gs&Cs, or policies such as the Government Contracting Regulations and TB's Interdepartmental Charging Policy. 2.2 Relationship with the Planning, Reporting and Accountability Structure The Planning, Reporting and Accountability Structure (PRAS) identifies and describes each of the Agency's lines of business, defines the objectives of each, and establishes the expected results the Agency intends to achieve. It also identifies the Branch Head as the position accountable for ensuring that activities supported by the Agency are managed to best attain those desired results. In order to meet its objectives for the International Development Assistance Program, the Agency has developed specialized Channels of delivery. These channels are presented in the Framework Policy and each may be selected as circumstances warrant by the Agency's program branches. 2

6 Due to the nature of their work, several CIDA branches have specialized in the use of specific Channels, and, as a result, are considered the primary users. To ensure coordination of activities and consistent management practices, the "specialist" branches are consulted when the other branches are considering using those Channels. 2.3 Financial Authority a) General authority Except as noted in paragraphs 2.3 b) through d) below, CIDA may authorize programs or projects meeting the particular criteria for each Channel, which are in accordance with this Framework Policy, within the following limits: grants and/or contributions of up to $20,000,000 (excluding GST and other successor taxes); amendments (including cost increases and changes in scope) to a grant or contribution approved by CIDA, or the Minister, up to $5,000,000 (i.e. up to 25% of the Minister s authority limit). amendments (including cost increases and changes in scope) to a grant or contribution approved by the TB, up to 25% of the approved value of the project; special program and project expenses (SPPE) directly related thereto as described in Annex "B". b) For the Bilateral Channel, the Minister responsible for CIDA may authorize programs or projects meeting the particular criteria for the Channel, which are in accordance with this Framework Policy, within the following limits: contributions of up to $20,000,000 (excluding GST and other successor taxes); amendments (including cost increases and changes in scope) to a contribution approved by CIDA, or the Minister, up to $5,000,000 (i.e. up to 25% of the Minister s authority limit). amendments (including cost increases and changes in scope) to a contribution approved by the TB, up to 25% of the approved value of the project; SPPE directly related thereto as described in Annex "B". c) For the Development Information Channel, the Minister responsible for CIDA may authorize programs or projects meeting the particular criteria for the Channel, which are in accordance with this Framework Policy, within the following limits: grants and/or contributions of up to $5,000,000 (excluding GST and other successor taxes); 3

7 amendments (including cost increases and changes in scope) to a grant or contribution approved by CIDA, or the Minister, up to $1,250,000 (i.e. up to 25% of the Minister s authority limit). amendments (including cost increases and changes in scope) to a grant or contribution approved by the TB, up to 25% of the approved value of the project; SPPEs directly related thereto as described in Annex "B". d) For the Canadian Partnership Channel, the Minister responsible for CIDA may authorize programs or projects meeting the particular criteria for the Channel, which are in accordance with this Framework Policy, within the following limits: grants and/or contributions of up to $10,000,000 (excluding GST and other successor taxes) for any single year agreement or up to $10,000,000 per year (excluding GST and other successor taxes) under multi-year funding agreements to a maximum of $20,000,000 to eligible recipients in support of development cooperation, development education, institutional support and industrial cooperation; amendments (including cost increases and changes in scope) to a grant or contribution approved by CIDA, or the Minister, up to $2,500,000 per year or up to $5,000,000 under multi-year funding agreements. amendments (including cost increases and changes in scope) to a grant or contribution approved by the TB, up to 25% of the approved value of the project; SPPEs directly related thereto as described in Annex "B". e) Management authority Signing authority delegated to particular management positions within CIDA are defined in the Agency s Delegation of Selection Authorities and Contractual and Financial Signing Authorities Instrument. 2.4 Procurement Authorities Procurement of commodities, goods and services by CIDA or by organizations in the public, for-profit and not-for-profit sectors will be subject to, and in accordance with, the Financial Administration Act, the Government Contract Regulations and other statutes, regulations, directives and guidelines, as applicable. 4

8 Procurement of commodities, goods and services by designated organizations in the public, for-profit and not-for profit sectors in Canada or abroad, is expected to be in accordance with normal commercial practices and at a fair market rate. The Contracting Guide for Managers in CIDA has been developed to provide guidance and assistance towards: i. contracting policy requirements; and ii. 2.5 Eligible Costs the use of the appropriate type of arrangement, such as a contract, contribution agreement, or grant agreement. CIDA may enter into a contract, agreement or arrangement with an eligible recipient to assist in the implementation, planning (e.g. conceptualization, feasibility studies, specifications or design), evaluation, monitoring or audit of projects and programs falling within the criteria for each channel. Gs&Cs to international development institutions should relate to the operations, and general and specific programs and projects of the recipient institution. Gs&Cs to eligible recipients for programs, projects and appeals are limited to interventions for the benefit of developing countries or countries in transition, consistent with the program objectives provided in each Channel. Payments of Gs&Cs will provide for the CIDA portion of direct program or project expenditures and may include a reasonable share of overhead expenditures, as agreed to by CIDA and disclosed in the contract or agreement. The determination of a reasonable share of administrative overhead expenditures on the CIDA portion of direct expenditures, will normally be established by one of the following: as a component of fees proposed following a competitive process; through the CIDA Overhead Rate Policy; negotiated standard or reasonable rates among donor, or recipient organizations; and other appropriate means. 2.6 Agreements or Memoranda of Understanding Grants will be subject to a letter of agreement between the recipient and CIDA which clearly outlines the purpose and objective of the grant, eligibility criteria and entitlement, maximum money being granted, payment schedule, results to be achieved, reporting requirements, and any other conditions. All projects funded by contributions are implemented under a contract, agreement, memorandum of understanding (MOU) or exchange of letters. The contract or agreement results from general discussions and understanding between CIDA and the organization. It will clearly outline the 5

9 purpose and objective of the project, maximum amount payable, payment schedule, results to be achieved, reporting requirements, and any other conditions. In accepting public funds, recipient organizations must agree to: a) maintain such records and accounts as are required by generally accepted accounting principles, or as requested by CIDA and to permit CIDA every facility to examine all such financial records, if required; and b) provide at the end of each fiscal year during which the project or program being funded is in progress, or as otherwise required by CIDA, a report on the development, progress and results achieved by the project or program, and a complete independent audited financial statement of the institution, organization or agency, where applicable. 2.7 Payment Provisions All payments including advances and installments will be in accordance with the terms of the contracts, agreements or arrangements governing the implementation of the projects or programs. These will be in accordance with the TB Policy on Transfer Payments or as outlined in the individual Channels. Payments of contributions may be made through any one of the following mechanisms: a) A reimbursement of costs incurred or expenditures made by the recipient. b) A progress payment that is made after the performance of that part of the agreement for which the payment is made but before completion of the entire contract or agreement. c) An advance payment that is made before the performance of that part of the contract or agreement for which the payment is being made. Payments of contributions made in respect of approved programs, projects and appeals will be scheduled according to the cash flow requirements of the recipients and may be made in advance, if necessary, to facilitate the implementation of the program or project. Such advances or installments are to be as specified in formal arrangements which will include provision for periodic and final accounting. Advance payments for the procurement of commodities, goods and/or services should be considered only in extraordinary circumstances, that is, when they are considered essential to program or project objectives. Settlement of outstanding advances, either by collection or deduction from current request, will be required prior to making any further advances against satisfactory progress reports, as outlined in the various Channels. 6

10 2.8 Management Policies and Practices The Agency, in the Ts&Cs for International Development Assistance, has fully endorsed the TB Policy on Transfer Payments. In addition, the Agency has continuously refined and promulgated policies and guidelines to: improve the management of aid programs and projects; provide guidance to Agency staff; effectively communicate roles, responsibilities and requirements to both recipients and stakeholders; and improve the reporting function and capability of the Agency. A listing of these management policies may be found in Annex A of this Framework Policy. 2.9 Audit and Evaluation Provisions All programs and projects under these authorities are subject to evaluation, performance assessment and review and/or financial audit in accordance with CIDA's Policy for Performance Review. 3.0 CHANNELS FOR DELIVERY OF INTERNATIONAL ASSISTANCE 3.1 Bilateral Aid DESCRIPTION Bilateral Aid is provided through projects and programs with eligible recipients, in accordance with the objectives of the Canadian foreign policy and the Official Development Assistance program, which are within the general categories of economic and development assistance. Programs and/or projects excluded under these authorities are: those which are not appropriately based on current Canadian government policy decisions and; those whose primary aim is unconditional direct fiscal support to recipient country governments. CIDA will use a number of different methodologies to develop and implement bilateral aid projects and programs. These methodologies can be found in the CIDA Bilateral Road map. All bilateral aid programs and projects are implemented under the terms of a covering agreement with the recipient. 7

11 ELIGIBILITY The Minister responsible for CIDA approves the eligibility of a recipient on the basis of recommendations from CIDA. Eligible recipients for bilateral aid, which must have the legal personality, are: All levels of recipient country and territories governments, including their agencies, organizations and institutions; International, regional and local institutions, organizations and agencies, and associations; Canadian institutions, organizations and agencies, provincial and municipal governments, their organizations and agencies; Canadian NGOs; International, other donor country and local NGOs; International development organizations and institutions within the United Nations system, the Commonwealth, La Francophonie, Bretton Woods institutions, as well as regional development bodies or groups; Canadian and local private sector firms, for program and/or project proposals developed by them or identified by recipient countries and territories; Individuals from developing countries, Canadian volunteers and cooperants under the Canada Fund for Local Initiatives or similar initiatives. Eligible recipients also include recipient country community based organizations and associations capable of delivering small-scale, local aid activities or actively engaged in development issues. AUTHORITY See Section 2.3 of this Framework Policy. Program Considerations Technical Assistance CIDA may engage individuals under a contract or secondment agreement to provide technical assistance services in a recipient country according to the authority set out in the Appropriations Act, and which are further defined in the Technical Assistance Regulations. Remuneration of benefits will be in accordance with CIDA's policies and procedures. CIDA may provide education and training for persons from developing countries in accordance with the Technical Assistance Regulations. Financial Considerations 8

12 Indicative Planning Figures Program planning is carried out within the context of indicative planning figures (IPF). The IPF represents the notional allocation of funds for a country, region or regional institution for a five year period. The total of all IPFs may not exceed the Bilateral program's allocation over the same period and may be rolled-over at the start of each fiscal year without exceeding the total Bilateral program allocation for that new period. IPFs are approved by the Minister responsible for CIDA on a periodic basis, on the recommendation of CIDA. The funds required for a program or project within the upcoming five-year period must be accommodated within the unprogrammed balance of the Indicative Planning Figure (IPF) for the eligible recipient country, region or programming unit. Where a program or project requires funds beyond the five-year IPF period, this requirement must be accommodated within an unprogrammed balance not to exceed 25 percent of the total of the IPF for the eligible recipient country, region or programming unit. Contribution Funding Bilateral Aid programs and projects are funded through contributions. Government to Government Programs and Projects: Where a project is funded from contributions and executed via a contract with private sector firms or not-for-profit organizations, these organizations are normally selected through a competitive process. They are generally covered by a memorandum of understanding or an exchange of letters with the recipient government. Projects funded from contributions to not-for-profit organizations and international development institutions are implemented under a contribution agreement entered into by CIDA and the not-for-profit organization or international development institution and may be covered by a memorandum of understanding or exchange of letters which are in conformity with general agreements where they exist between CIDA and the beneficiary country. Responsive Mechanism: The projects funded as contributions to private sector firms or not-for-profit organizations are implemented under a contribution agreement and may be covered by a memorandum of understanding or an exchange of letters with the recipient government as appropriate. Payments Related to the Implementation of Programs and Projects The program or project to be funded is administered either by CIDA, by an Executing Agent selected by CIDA in accordance with established Agency policy, by an eligible recipient or by executing agents designated by that recipient and agreed to by Canada. i) Government to Government Programs and Projects: Payments will be made on the basis of cash flow requirements identified by the recipient and agreed to by CIDA. Advance cash payments to the government of the recipient country or to executing agents designated by the government of the recipient country and agreed to by Canada for procurement of commodities, goods and services are: 9

13 a) restricted to a limit of $500,000 for each individual advance; b) restricted so the total value of advances outstanding at any one time does not exceed $1,000,000 or the total cost of the procurement authorized, whichever is less; c) conditional on submission of quarterly or more frequent financial statements acceptable in form and content to CIDA, indicating disbursements made against such advance payments together with any other information CIDA may require. Advances may not be made in the previous fiscal year for periods that will include more than three months financing in the following fiscal year. No more than two quarterly advances may be made before receipt of an accounting for previous advances. ii) Responsive Mechanism: Payments will be made on the basis of cash flow requirements identified by the recipient and agreed to by CIDA. Advance payments may be made in respect of approved projects and programs, and are subject to the following: a) Where the total contribution for a project or program in any fiscal year is $500,000 or less an advance payment of up to 95% of the total may be made on signing of the agreement; b) Where the total contribution for a project or program in any fiscal year exceeds $500,000, advance payments are: i) restricted to a limit of $500,000 for each individual advance; ii) iii) restricted so the total value of advances outstanding at any one time does not exceed $1,000,000 or the total cost of the procurement authorized, whichever is less; conditional on submission of quarterly or more frequent financial statements acceptable in form and content to CIDA, indicating disbursements made against such advance payments together with any other information CIDA may require. c) Advances may not be made in the previous fiscal year for periods that will include more than three months financing in the following fiscal year. d) No more than two quarterly advances may be made before receipt of an accounting for previous advances. 10

14 iii) Canada Fund for Local Initiatives The total contributions authorized for a specific program or project do not exceed $100,000, except for small discrepancies due to currency fluctuations, and funds may be disbursed over a period not to exceed twenty-four months. The total of contributions payable within a fiscal year for all programs and projects in an eligible country or programming unit from the Canada Fund for Local Initiatives will be limited in accordance with an annual allocations decision by CIDA. Payment of contributions, including advances are made and recorded in accordance with the CIDA Canada Fund for Local Initiatives Guidelines, other directives issued by CIDA, and directives of the Department of Foreign Affairs relating to the financial management of mission expenditures. Contracting Authorities Contracting for services, commodities, goods and construction will be in accordance with Canadian Government and CIDA policies, regulations and procedures related to contracts. Where contracting is carried out by the recipient country, CIDA retains the right to review all documents which are directly or indirectly related to such procurement, before (to ensure compliance with CIDA policies, see Tied/Untied Aid Policy) and after (for audit purposes), contractual obligations are entered into. 3.2 Countries in Transition DESCRIPTION The objective of Canada's program in Countries in Transition is to support democratic development and economic liberalization in CEE by building mutually beneficial relationships. CIDA's Countries in Transition program focuses on co-operating with countries of CEE through programs which: i. assist and facilitate their transition to market economies; ii. encourage and promote good governance, democracy, political pluralism, the rule of law and adherence to international norms and standards; iii. build Canadian trading by facilitating closer trade and investment links with the region; iv. assist international programs to reduce threats to international and Canadian security; and v. other specific or emerging priorities in support of the objectives for Countries in Transition. Approximately 20% of the assistance efforts in Countries in Transition are currently eligible as ODA. 11

15 ELIGIBLE RECIPIENTS The Minister responsible for CIDA approves the eligibility of recipient countries and territories on the basis of recommendations from CIDA. Eligible recipients for countries in transition, which must have the legal personality, are: AUTHORITY All levels of recipient country and territories governments, including their agencies, organizations and institutions; International, regional and local institutions, organizations and agencies, and/or organizations, institutions or agencies; Canadian institutions, organizations and agencies, provincial and municipal governments, their organizations and agencies; Canadian NGOs recognized as Canadian organizations; International NGOs and local NGOs which are not-for-profit and legally incorporated or established in the country or countries in which they operate; International development organizations and institutions within the United Nations system, the Commonwealth, La Francophonie, Bretton Woods institutions, as well as regional development bodies or groups; Canadian and local private sector firms for program and/or project proposals developed by them or identified by recipient countries and territories; Individuals from countries in transition, Canadian volunteers and cooperants under the Canada Fund for Local Initiatives or similar initiatives. See Section 2.3 of this Framework Policy. PROGRAM CONSIDERATIONS The Program includes partnership with the private sector, business and trade associations, NGOs, educational institutions, ethnic communities and all levels of government. The Program requires clear support for the project and confidence in the local partner, as well as commitment and proven capacity on the part of the Canadian partner. All responsive programs and projects supported under this Channel are cost-shared: recipient organizations are required to contribute to the cost of the program or the project. Technical cooperation projects focus on policy advice, capacity building, human resource development and technology transfer. Projects and partners are selected on the basis of their ability to meet one or more of the Program objectives, within the overall mandate of supporting reform, and to ensure sustainability. 12

16 CIDA funds leverage significant project contributions from Canadian and recipient country partners, as well as multilateral organizations, resulting in a program substantially larger than government funding alone could sustain. The Program promotes complementarity and synergy among projects, thereby expanding their effect beyond the initial direct investment. The Program through its Renaissance programme emphasizes direct links between Canadian commercial firms and organizations and their counterparts in partner countries to position Canadian firms and organizations for follow-on funding and to create conditions for long-term commercial and professional links. To those countries in transition that do not qualify as ODA recipients, traditional development policy priorities do not apply directly to them. However, coherence is required with overall CIDA priorities, notably with respect to the environment, human rights, private-sector development, democratic development and good governance, women in development, as well as some basic human needs, humanitarian assistance, peacebuilding and mine action activities. Although the Program currently uses the Bilateral, International Humanitarian Assistance and Multilateral Channels, it may employ other CIDA Channels to meet its objectives. FINANCIAL CONSIDERATIONS Payments of Gs&Cs made in respect of approved projects or programs will be made on the basis of cash flow requirements proposed by the recipient and agreed to by CIDA. Advance payments of contributions and installments of grants may be made as indicated for the Bilateral, International Humanitarian Assistance or Multilateral Channels, depending on the type of project. Indicative Planning Figures Program planning is carried out within the context of indicative planning figures (IPF). The IPF represents the notional allocation of funds for a country, region or regional institution for a five year period. The total of all IPFs may not exceed the Countries in Transition program's allocation over the same period and may be rolled-over at the start of each fiscal year without exceeding the total Countries in Transition program allocation for that new period. IPFs are approved by the Minister responsible for CIDA on a periodic basis, on the recommendation of CIDA. The funds required for a program or project within the upcoming five-year period must be accommodated within the unprogrammed balance of the Indicative Planning Figure (IPF) for the eligible recipient country, region or programming unit. Where a program or project requires funds beyond the five-year IPF period, this requirement must be accommodated within an unprogrammed balance not to exceed 25 percent of the total of the IPF for the eligible recipient country, region or programming unit. 13

17 Funding The Program currently uses, but is not limited to, the following CIDA Channels: contribution funding may be made as indicated in sections 3.1, Bilateral Aid, and 3.4, International Humanitarian Assistance. when dealing with multilateral institutions, the financial considerations of the Multilateral Institutional Funding Channel, section 3.3, applies. Payments Related to the Implementation of Programs and Projects Payments related to the implementation of programs and projects may be made as indicated in sections 3.1, Bilateral Aid, and 3.4, International Humanitarian Assistance. Contracting Authorities Contracting authorities may be made as indicated in section 3.7 of the Bilateral Aid Channel. 3.3 Multilateral Institutional Funding DESCRIPTION To promote sustainable development and support humanitarian assistance by providing core funding and support to multilateral institutions and by providing funding for global programs of multilateral institutions. CIDA's financial contribution to international institutional partners to permit CIDA to influence their organizational and governance structure, financial management, policies and programs toward effective and sustainable development or humanitarian assistance, consistent with Canadian development objectives. ELIGIBILITY The following are eligible for grant and/or contribution funding: a) International development and humanitarian assistance organizations and institutions within the United Nations system, the Commonwealth, La Francophonie, World Trade Organization and Bretton Woods institutions, Consultative Group on International Agricultural Research, regional development bodies or groups whose funding is in line with Canada's Official Development Assistance objectives; b) Canadian, international, and other donor country development and humanitarian assistance organizations and institutions, which have the legal personality, and which have an appropriate degree of multilateral support and conform to generally accepted practices for the administration of development assistance; and c) International financial institutions as listed in the schedule to the International Development (Financial Institutions) Assistance Act. 14

18 Decisions with respect to the funding of an eligible organization are based upon the assessment of numerous factors including but not restricted to: a) the consistency between CIDA's policy priorities and the organization's capacity for implementation; b) the degree of leverage, based upon CIDA's investment ranking in the organization in relation to other donor countries; c) the degree of effectiveness and transparency of the organization's governance system; d) comparative advantage of using the organization to meet CIDA's program and/or sectoral interests; e) the results of previous evaluations; and f) decisions made by governing bodies during bi-annual budget review exercises. AUTHORITY See Section 2.3 of this Framework Policy. PROGRAM CONSIDERATIONS Programs and projects should normally reflect the priorities of the international organizations and institutions concerned and should be consistent with their overall economic and social development objectives. FINANCIAL CONSIDERATIONS Grant installment payments are scheduled according to the cash flow requirements of each recipient. Grants may be paid in advance of cash flow requirements when required by Canada's overall foreign policy interests and the principles of multilateralism. Contributions will be paid only for the share of financial responsibility directly attributable to Canada as specified in the contribution agreement. Payments will be based on cash flow forecasts prepared by the recipient and agreed to by CIDA and will cover only the recipient's immediate cash requirements. Where required, contribution advances may be made in accordance with the following: a) advances may be made for a period no greater than three months. No more than two advances may be outstanding at any time. Further advances will only be issued when an accounting has been received for the initial advance and so on; b) advances may not be made in one fiscal year for periods that will include more than three month's financing in the following fiscal year; c) final payment of any amount withheld will be made upon presentation of a proper accounting or report acceptable to CIDA. 15

19 Where the total contribution for a project, program or appeal in any fiscal year is $500,000 or less: a) an advance payment of up to 95% of the total may be made on signing of the agreement; b) advances may not be made in one fiscal year for periods that will include more than three month's financing in the following fiscal year; c) the final payment will be subject to receipt and acceptance of the final report. 3.4 International Humanitarian Assistance DESCRIPTION To help ease human suffering resulting from conflicts and natural disasters in developing countries by providing an appropriate, timely and effective Canadian response to proposals and appeals from eligible organizations. The main program objectives are: a) to fund the provision of emergency relief and humanitarian assistance including care, maintenance, repatriation and reintegration programs for refugees, returnees and displaced persons; b) to fund non-food elements of natural disaster response and activities to enhance preparedness for natural disasters; c) to fund activities which support the application of the principles of International Humanitarian Law, particularly in situations of political tension and armed conflict, so as to prevent or mitigate human suffering; d) to promote Canadian foreign policy objectives and interests, to provide policy guidance, to forge alliances with other donor countries in pursuit of common humanitarian goals, and to monitor key policy and management issues in multilateral agencies; e) to support initiatives which encourage conflict prevention and resolution, peacebuilding and post conflict reconstruction, including mine action; f) to monitor the delivery capacity of humanitarian and emergency agencies, enhance that capacity where needed, promote effective coordination amongst delivery mechanisms, and ensure, in cooperation with other donors, that agencies operate from a sound policy base; and g) to support initiatives that build indigenous capability for mine action, consistent with the principles of the "Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Landmines and on their Destruction", primarily in the areas of mine clearance, mine awareness and assistance to victims. Humanitarian assistance activities include emergency relief, humanitarian assistance, promotion of the principles of International Humanitarian Law, and disaster preparedness. It also 16

20 encompasses activities aimed at strengthening the management and delivery capacity of humanitarian agencies. Peacebuilding and mine action activities refer to actions that promote peace and stability. The following describes Humanitarian Assistance in greater detail: a) Emergency relief is generally defined as a response initiated shortly after a disaster which has caused human suffering or potential denial of the means of survival. Emergency relief provides for basic needs in health, nutrition, shelter and other necessities. This is achieved through the supply and distribution of commodities, goods and services appropriate to meet the specific circumstances of disaster situations; b) Humanitarian assistance refers to identifiable programs or projects having the same basic objectives as emergency relief but over an extended time frame, including the repatriation and reintegration of refugees and internally displaced persons; c) Disaster preparedness refers to a country's institutional or community-based capacity to deal with sudden emergencies. Disaster preparedness activities include disaster management training, development of emergency telecommunications plans (including related training and testing), technical workshops, simulation exercises and community based activities to enhance preparedness; d) Support for the application of the principles of International Humanitarian Law may include activities such as the dissemination of information and building awareness of these principles on the part of communities, political authorities, armed forces or combatants, the public and media. It encompasses activities aimed at monitoring peace accords, human rights or application of International Conventions. Activities such as visits to places of detention of prisoners and tracing whereabouts of persons missing as a result of political tension and armed conflict are also included; e) Peacebuilding signifies strengthening the prospects for peaceful coexistence and decreasing the likelihood of violent conflict. It may involve conflict prevention, conflict resolution, as well as post-conflict activities (including disarmament, demobilization, and re-integration of ex-combatants). It focuses on the political and socio-economical context of conflict, rather than on the military or humanitarian aspects. Peacebuilding should serve to support, not supplement, local initiatives toward the consolidation of peace. Peacebuilding, as envisaged under International Humanitarian Assistance, is comprised of targeted, rapid response activities in ODA countries, countries in transition, or regions which will help to promote a sustainable peace; f) Mine action may include activities that help to build indigenous capacity: to clear anti-personnel landmines, including mapping and marking minefields, training local mine action personnel, conducting surveys to analyze social and economic impacts and providing technology and other assistance for demining. Activities may serve to increase mine awareness amongst affected populations, including through curriculum development, information dissemination, training of teachers and community educators, and institutional strengthening. It also aims to assist victims of landmine 17

21 ELIGIBILITY explosions, including through strengthening health systems, vocational rehabilitation, social and economic reintegration, and provision of protheses. The following are eligible for grant and/or contribution funding: a) International organizations, organizations of other donor countries, United-Nations (UN) institutions and Red Cross organizations for that part of their mandate which deals with humanitarian assistance, peacebuilding or mine action activities as defined above. b) NGOs, including universities, not-for-profit organizations, institutions, associations, institutes and research centres at the local, regional and international levels which have the legal personality and which meet the following criteria: i) possess experience, expertise and proven delivery capacity in humanitarian, peacebuilding or mine action activities as defined above; ii) iii) possess strong networking, partnership and coordination skills as evidenced by existing relationships with local NGOs in developing countries and/or experience of cooperation with UN organizations and local government, as needed; and demonstrate satisfactory performance with CIDA in respect of financial management, project implementation and reporting. The following are also eligible for contribution funding: Private sector firms or individuals that are eligible for contributions towards peacebuilding or mine action, and meet the following criteria: i) do not include a profit element in the contribution; ii) iii) possess proven expertise and delivery capacity in effected country; and have established linkages within the area of activity. AUTHORITY See Section 2.3 of this Framework Policy. Emergency relief may be provided, in cases of natural and man-made disasters, to any developing country, including those normally excluded from Canadian assistance, where specific approval is given by the Minister responsible for CIDA. 18

22 PROGRAM CONSIDERATIONS Programs, projects and activities should normally reflect the priorities of the eligible recipients concerned and should be consistent with their overall humanitarian, peacebuilding or mine action mandates and objectives. Programs, projects and activities supported will be consistent with the overall economic and social development objectives and priorities of the beneficiary developing country or region. Programs, projects or activities excluded under this authority are: a) long term development, except special rehabilitation projects associated with refugees and returnees and displaced persons; b) food aid, except for therapeutic feeding; and c) research activities, search and rescue operations, independent experts and transportation costs for unsolicited new or used goods. FINANCIAL CONSIDERATIONS Payments, including contribution advances and grant installments, made in respect of approved programs, projects and appeals will be scheduled according to the cash flow requirements of the recipient organization. Contribution advances may not be made in one fiscal year for periods that will include more than three month's financing in the following fiscal year. Grants may be paid in advance of cash flow requirements when required by Canada's overall foreign policy interest and the principles of multilateralism. Where the total contribution for a project, program or appeal in any fiscal year is $500,000 or less: a) an advance payment of up to 95% of the total may be made on signing of the agreement; b) advances may not be made in one fiscal year for periods that will include more than three month's financing in the following fiscal year; c) the final payment will be subject to receipt and acceptance of the final report. 3.5 Assistance Against Hunger, Malnutrition and Disease DESCRIPTION To contribute to the sustainable reduction of hunger, malnutrition and disease among people in developing countries principally by using food aid including: i) offering basic subsistence during emergency relief, refugee operations and rehabilitation situations; ii) supporting disaster mitigation and recovery activities; 19

23 iii) iv) providing supplementary nutrients to nutritionally vulnerable groups; increasing the quantity and quality of food available in developing countries; v) addressing the direct causes of malnutrition such as from low income and disease; vi) accelerating the pace of development by freeing foreign exchange and generating domestic resources for investment; and vii) otherwise reducing protein-energy and micronutrient malnutrition. For selected multilateral agencies, to provide policy guidance and influence, to fund institutional support, and to monitor key policy and management issues. Programming against hunger, malnutrition and disease includes: i. the provision or the funding of basic foodstuffs, commodities or other nutrients, or the seeds of basic food crops, for the benefit of persons in developing countries; ii. the provision, or funding for the provision, of goods and services related to the efficient programming, procurement, handling, storage, transportation, distribution, monitoring and end use of said foodstuffs, commodities or other nutrients or seeds; and iii. the funding of activities aimed at reducing protein-energy and micronutrient malnutrition and disease. ELIGIBILITY The following are eligible for grant and/or contribution funding: a) Recipient countries or programming units which have been approved as eligible recipients; b) Canadian or local non-governmental organizations (NGOs) and institutions which have the legal personality; c) Recipient country community based organizations and associations capable of delivering small-scale, local aid activities or actively engaged in development issues; d) Development and research institutions, which have the legal personality, whose mandate includes food aid or nutritional or disease activities; e) International development, research and nutritional institutions and programs having an appropriate degree of multilateral support and having the legal personality in the country in which their headquarters are based. To be considered international, an NGO must have an international membership and management, and its governing body must be elected regularly on an international basis; f) International NGOs, which are not-for-profit, having the legal personality in the country in which their headquarters are based. To be considered international, an NGO must have an international membership and management and its governing body must be elected regularly on an international basis; and 20

24 g) International Development Research Centre for nutrition-related activities carried out under their auspices. Emergency food aid may be provided, in cases of natural and man-made disasters, to any developing country, including those normally excluded from Canadian assistance where specific approval is given by the Minister responsible for CIDA. AUTHORITY See Section 2.3 of this Framework Policy. CIDA is authorized to make purchases of basic foodstuffs, other nutrients, or seeds and related transportation from other countries, provided that the annual cumulative total of this untied aid does not exceed 10% of the total hunger, malnutrition and disease aid budget for that fiscal year. PROGRAM CONSIDERATIONS Assistance may take the form of swap arrangements involving the shipping of basic foodstuffs, commodities, other nutrients, or seeds to one developing country in exchange for basic foodstuffs, commodities, other nutrients or seeds which will then be sent to the target country. Gs&Cs for direct country-to-country food aid assistance are to be covered by either an MOU or an exchange of letters between the recipient government and Canada and/or by a contribution agreement with an eligible NGO, International Non-Government Organization (INGO) or development institution. Programs, projects and appeals supported should be consistent with the overall economic and social development objectives and priorities of the beneficiary developing country or region, but must exclude projects or programs whose main objective is direct fiscal support of the general budget, in the form of cash payments, to recipient governments. FINANCIAL CONSIDERATIONS Payments made in respect of approved programs, projects and appeals will be scheduled according to the cash flow requirements of the recipients. Both grant installment and contribution payments may be made in advance, if necessary, to facilitate the implementation of the program or project. Such advances are to be as specified in formal arrangements which will include provision for periodic and final accounting. Grants may be made in advance of cash flow requirements when required by Canada's overall foreign policy interests and the principles of multilateralism. Foodstuffs and/or commodities will be purchased at a fair market rate. 21