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UN-World Bank Collaboration

UN-World Bank Collaboration. Fiduciary Forum March 27, 2008. UN-WB Collaboration. Provider of Services and Goods/Supplies to IDA/IBRD Borrowers $1.5 billion in contracts since FY02 Mostly Consultants Services & Goods

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UN-World Bank Collaboration

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  1. UN-World Bank Collaboration Fiduciary Forum March 27, 2008

  2. UN-WB Collaboration • Provider of Services and Goods/Supplies to IDA/IBRD Borrowers • $1.5 billion in contracts since FY02 • Mostly Consultants Services & Goods • Implementing Agencies under World Bank Administered Trust Funds in Post-Crisis Situations (OP 8.00) • Approx. $250 million to UN as implementing agencies through Grant Agreements

  3. Channels & Procedures General Conditions (“intended purposes”) Procurement/ Consultant Guidelines FPA (“Own Rules”) “Contractor” / “Consultant” Implementing Agency UN Agency

  4. Issues • Bank’s revised Sanctions Regime & Fraud & Corruption clauses (both IDA/IBRD & TFs) • Right of Bank to inspect & audit violates “single audit” • Sanctioning UN Agencies in case of F&C • Use of “contractor/supplier” or “consultant” contracts in IDA/IBRD projects inconsistent with UN practices • Case of Sudan MDTF • FMFA in place • Procurement waiver from MD • Case of Avian Flu • Consultant Services Agreements w/ FAO/WHO/UNICEF

  5. Partial Solutions to Date • Waivers from Managing Directors involving lengthy negotiations • Blocked programs (e.g. UN refuses to sign) • Non-compliance w/ Bank policy, no waiver requested

  6. Efforts to Enhance Collaboration • Fiduciary Principles Accord (FPA) • Contracting UN under IDA/IBRD • Involves revisions to Procurement/ Consultant Guidelines • Revisions to standard contract forms for use with UN Agencies • Both sets of initiatives currently underway

  7. Fiduciary Principles Accord • Objective: facilitate quick, effective disbursement of Trust Funds for Crisis & Post-Crisis Situations (OP 8.00) • Allow UN Agencies to implement projects on gov’t behalf using own rules & procedures, including procurement • Builds on FMFA – extending to Procurement, M&E, Project Design/Implementation, Fraud & Corruption

  8. Fiduciary Principles Accord (FPA)Key Elements • UN-WB Agree on Fiduciary Principles • Assurance/Representation to Meet Principles using own Rules & Procedures • Agree on mechanism for F&C, including consultation • Remedies – suspension or termination • Agree on reporting financial & implementation progress

  9. UN Contracting under IDA/IBRD • To facilitate UN supply of critical goods (e.g. drugs, vaccines & similar urgent supplies) and services in single source situations • Revisions needed: • Procurement & Consultant Guidelines • Standard “contracts” – “supplier” & “consultant” • Require Board approval for Guidelines

  10. Timetable for Initiatives • Fiduciary Principles Accord • Requires Audit Committee endorsement of principles & possible Board approval • Spring 2008 • UN Contracting under IDA/IBRD Projects • Amendments to standard contract forms • Require Audit Committee & Board Approval • Spring 2008

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