The Eighth Meeting of the Parties decided that the Executive Committee should, over the next three years, work toward the goal of reducing agency support costs from their current level of 13 per cent to an average of below 10 per cent to make more funds available for other activities. The Executive Committee should report to the Parties annually on their progress, and the Parties may adjust the goal accordingly.
(UNEP/OzL.Pro.8/12 Decision VIII/4.7).
The Twenty-first Meeting of the Executive Committee decided:
(a) to recall paragraph 6 of decision VIII/4, by which the Eighth Meeting of the Parties decided that the Executive Committee should, over the next three years, work towards the goal of reducing agency support costs from the current level of 13 per cent to an average of below 10 per cent;
(b) to recognize that, while the 13 per cent charge levied over the initial years of the Multilateral Fund could probably be reduced as a result of economies of scale being achieved, the percentage could be different for large and small projects, for umbrella projects, and for projects that covered many small-scale enterprises;
(c) to emphasize that, whether or not a reduced rate was agreed upon, the Committee must in no way discourage proper supervision, verification and evaluation of ongoing projects, and that agency support costs should not become a negotiating point on individual projects;
(d) to agree that an independent consultant should be recruited to work with the Secretariat and Implementing Agencies to identify options and approaches for reducing the overall level of administrative costs, focusing on revising the current uniform, fee-based system;
(e) to approve the terms of reference for the consultancy as contained in Annex V.3 to the present report.
(UNEP/OzL.Pro/ExCom/21/36, Decision 21/2, para. 8).
(Supporting document: UNEP/OzL.Pro/ExCom/21/4).
The Twenty-fifth Meeting of the Executive Committee decided:
(a) to defer further consideration of the subject (administrative costs of the Implementing Agencies) to its 26th Meeting;
(b) to request the Implementing Agencies to take into account the suggestions made and the views expressed in the course of the discussion when preparing their 1999 business plans, with a view to reaching the goal of reducing agency support costs from their current level of 13 per cent to an average of below 10 per cent so as to make more funds available for other activities.
(UNEP/OzL.Pro/ExCom/25/68, Decision 25/54, para. 98).
(Supporting document: UNEP/OzL.Pro/ExCom/25/66).
The Twenty-sixth Meeting of the Executive Committee decided:
(a) to apply an agency fee of 13 per cent on projects up to a value of $500,000;
(b) that for projects with a value exceeding $500,000 but up to and including $5,000,000, an agency fee of 13 per cent should be applied on the first $500,000 and 11 per cent on the balance;
(c) to assess projects with a value exceeding $5 million on a case-by-case basis;
(d) that the agency fee for projects submitted under the SME window (Decision 25/56) should be 13 per cent;
(e) that agencies implementing projects under the SME window should report back to the Executive Committee on the actual administrative costs of such projects;
(f) to request the Secretariat and the Implementing Agencies to develop standardized cost items for future reporting on administrative costs;
(g) to review the results of implementation of this decision at the second meeting of the Executive Committee in 1999 and to report to the Eleventh Meeting of the Parties in 1999, in line with decision VIII/4 of the Meeting of the Parties;
(h) to apply this decision to projects approved beginning with the current meeting.
(UNEP/OzL.Pro/ExCom/26/70, Decision 26/41, para. 77).
(Supporting document: UNEP/OzL.Pro/ExCom/26/67).