The GEF Trustee

1
The GEF Trustee

• GEF Familiarization Workshop
• April 27-30, 2009
• Multilateral Trusteeship and Innovative Financing
  (CFPMI)
• Concessional Finance Global Partnerships (CFP)

2
Roadmap

• Role of the Trustee
• Project Cycle
• Allocations by Agency
• Financial Management Challenges
• Conclusions

3
GEF Governance Structure
GEF Council
Accountable to the Council
Holds in trust the assets which constitute the
Fund
World Bank as Trustee for GEF Trust Fund
GEF Secretariat at World Bank(functionally
independent)
Several World Bank departments involved (CFPMI,
ACTTF, LEGFI)
Administers the Fund in accordance with the
provisions of the Instrument
World Bank
UNDP
UNEP
Implementing Agencies
STAP
Cooperate
I. The Role of the Trustee
4
Role of the Trustee /1

• 1. Replenishments
• Replenishment negotiations (CFPMI)
• Implementation of the replenishment resolution
  (CFPMI)
• Management of Notes and Accounts receivable
  (CFPMI)
• Establish and implement cash flow policy (CFPMI)

I. The Role of the Trustee
5
Role of the Trustee /1

• 2. Council Funding Decisions
• Ensure IA commitments remain within
  Council-approved level (CFPMI)
• Transfer funds to Agency Bank accounts (CFPMI,
  ACTTF)
• 3. Investment management
• Determine best investment pool as part of larger
  World Bank trust fund portfolio (CFPMI)
• Invest liquid assets (IMD)

I. The Role of the Trustee
6
Role of the Trustee /2

• 4. Control framework
• Prepare financial reports to Council and
  coordinate auditing of all entities (ACCTF)
• Report to Council on status of replenishment
  pledges (CFPMI)
• Report to Secretariat on fund availability for
  Council work program (CFPMI)
• Report to Secretariat on status of contributions
  paid (CFPMI)
• Ensure compliance with Instrument and other legal
  documents (LEGFI)
• 5. Donor and client relations
• Manage donor relations, additional funding,
  ad-hoc requests (CFPMI)
• Prepare Business Plans and Budgets for submission
  to Council (CRM coordinates inputs from all
  Departments)

I. The Role of the Trustee
7
The GEF project cycle Fund flows for full-sized
projects
II. Project Cycle
8
Project cycle lasts through multiple
replenishments
II. Project Cycle
9
Determining available funding
Not all funds the Trustee holds are available for
funding decisions
Notes in from three donors plus FX fluctuation
some funds are restricted deferred
contributions, reserve for foreign exchange
fluctuations
Currency exchange fluctuation
and some funds are set aside based on Council
or CEO decisions and are pending disbursement by
the Trustee
As of February 28, 2009, USD eq. 237 million was
available for Council or CEO funding decisions.
II. Project Cycle
9
10
Agency implementation of GEF projects
III. Allocations by Agency
11
Specified RAF Allocations are a challenge when
availability of funding is volatile.
IV. Financial Management Challenges
12
The GEF structures complexity and number of
transactions are increasing.
V. Conclusion