The Executive Committee and UNDP signed an agreement on 21 August 1991. Under this agreement:
UNDP shall establish a Trust Fund under its financial regulations and rules for the receipt and administration of the contribution;
The Executive Committee shall place at the disposal of UNDP the contribution for agreed activities. To this effect, the Executive Committee shall transfer the agreed amounts for each activity in full, on approval, to the UNDP Contributions Account Number 015-002284, Chemical Bank, New York (all financial accounts and statements shall be expressed in United States dollars);
The Trust Fund shall be utilized by UNDP for the purpose of meeting the costs of the projects as set out in the relevant project documents and work programmes as well as the costs of support services relating thereto as specified in the following paragraph.
The Trust Fund shall be charged with a percentage of all project expenditures made from the Trust Fund which shall, in accordance with UNDP regulations, rules and directives, be utilized by UNDP in reimbursement for support services provided by the selected executing agencies and/or by UNDP itself and would include other support services as required. The amount required for such costs shall be specified in the approved project documents and work programme.
Any interest income derived from contributions to the Trust Fund shall be credited to the Trust Fund in accordance with UNDP procedures.
The Trust Fund shall be administered by UNDP in accordance with UNDP regulations, rules and directives, applying its normal procedures for the execution of its projects. Project management and expenditures shall be governed by the regulations, rules and directives of UNDP and, where applicable, the regulations, rules and directives of the selected executing agency.
The implementation of the responsibilities of UNDP and of the selected executing agencies pursuant to this Agreement and the relevant project documents and/or work programmes will depend on the timely receipt by UNDP of the contribution.
The aggregate of the amounts budgeted for the projects and work programmes, including the estimated costs of reimbursement of related support services, shall not exceed the total resources available under this Agreement.
If unforeseen increases in expenditures or commitments are expected or realized, UNDP shall submit, through the Chief Officer of the Fund Secretariat to the Executive Committee, on a timely basis a supplementary estimate detailing the further financing that will be necessary. The Executive Committee shall use its best efforts to obtain the additional funds required.
If the contribution-payments are not received in accordance with the payment schedule as specified in the work programme, or if the additional financing required in accordance with above paragraph is not forthcoming from the Executive Committee or other sources, the assistance to be provided pursuant to this Agreement may be reduced, suspended or terminated by UNDP. No commitments shall be made by UNDP prior to the receipt of these contributions-payments.
Income not spent in a budget year may be carried forward from one year to the next within the financial validity of this Agreement.
The accounts shall be subject to the internal and external auditing procedures provided in the financial regulations, rules and directives of UNDP.
UNDP reserves the right only to accept a regional or eligible bilateral contribution under the Fund, by a country not operating under paragraph 1 of Article 5, where the provided services can be effectively utilized by the recipient country.
At the specific request of the recipient countries operating under paragraph 1 of Article 5 of the Protocol and when technically justified, eligible in-kind support can be provided in the form of expert personnel, technology, technical documentation and training under projects or programmes implemented by UNDP. Such inputs shall be incorporated in the relevant project documents.
UNDP shall notify the Chief Officer of the Fund Secretariat and the Executive Committee when all activities relating to the purposes for which the Trust Fund was established have been completed.
Notwithstanding the completion of the projects financed from the Trust Fund, UNDP shall continue to hold unutilized contribution-payments until all commitments and liabilities incurred in implementation of the projects have been satisfied and project activities brought to an orderly conclusion.
If the unutilized contribution-payments are insufficient to meet such commitments and liabilities, UNDP shall notify the Chief Officer of the Fund Secretariat and will consult both with the Chief Officer and the Executive Committee on the manner in which such commitments and liabilities may be satisfied.
In the event of termination of this Agreement, UNDP shall continue to hold unutilized contribution-payments until all commitments and liabilities incurred in implementation of the projects and programmes have been satisfied and project and programme activities brought to an orderly conclusion.
Any contribution-payments that remain unexpended after such commitments and liabilities have been satisfied shall be transferred to the Executive Committee through the Chief Officer of the Fund Secretariat.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section A: Financial Procedures).
As specified by the Parties and on the invitation of the Executive Committee, UNDP shall consult regularly with the other Implementing Agencies and, in particular, with the World Bank and UNEP to facilitate programme coordination and prevent duplication of activities.
UNDP, as requested by the Executive Committee in the context of country programmes developed to facilitate compliance with the Montreal Protocol, will co-operate with and assist the Parties within its respective areas of expertise.
UNDP, jointly with the Fund Secretariat and other Implementing Agencies, shall co-operate with the Parties to provide information on funding available for relevant projects, to secure the necessary contacts and to coordinate, when requested by the interested Party, projects financed from other sources with activities financed under the Protocol.
The financing of activities or other costs, including resources channeled to third party beneficiaries, shall require the concurrence of the recipient Government concerned. The recipient Government shall be fully associated with the planning of the projects and programmes.
The annual UNDP work programme under this Agreement, including proposed budgets, will be submitted through the Chief Officer of the Fund Secretariat to the Executive Committee for approval.
In the design and selection of projects, UNDP will follow the Executive Committee's criteria for project eligibility and its guidelines for the implementation of activities supported by the Multilateral Fund.
The Executive Committee will consider and, where appropriate, approve country programmes for compliance with the Protocol and, in the context of those country programmes, assess and, where applicable, approve those project proposals or group of project proposals formulated by UNDP independently or by UNDP in co-operation with other Implementing Agencies where the agreed incremental costs exceed US $500,000.
The Executive Committee will review any disagreement by a Party operating under paragraph 1 of Article 5 with any decision taken with regard to a request for financing by that Party of a project or projects where the agreed incremental costs are less than US $500,000 and where UNDP is involved in whole or in part as an Implementing Agency.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section B: Operational Procedures).
Ownership of equipment, supplies and other property financed from the contribution shall vest in UNDP for the duration of the specific project or programme activity, after which the ownership shall be transferred to the appropriate institution or agency in the recipient country in accordance with the relevant policies and procedures of UNDP, taking into account recommendations that may be received from the Chief Officer of the Fund Secretariat.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section C: Ownership and Disposal of Property).
The Administrator of UNDP, or his designated representative, will participate in meetings of the Executive Committee to report and consult on UNDP's activities under these arrangements.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section D: Participation at Meetings).
As approved by the Executive Committee and in accordance with UNDP accounting and reporting procedures, UNDP shall submit to the Executive Committee through the Fund Secretariat the following reports:
(a) semi-annual progress reports on substantive project activities;
(b) an annual report in implementation of activities or prior approved work programmes and activities related to country programmes;
(c) an annual report on the status of UNDP activities related to country programmes including the activities of concerned UNDP field offices;
(d) an annual report on income and expenditures for the previous years; and
(e) a revision of the current year's budget, where necessary, and the following year's budget and workplan.
UNDP shall contribute to an annual report to be prepared by the Fund Secretariat on the interagency work programme and coordination of activities.
The Executive Committee will review periodically performance reports on UNDP's implementation of activities supported by the Fund and will monitor and evaluate expenditures incurred. The Executive Committee will transmit its findings to UNDP for comment and follow-up.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section E: Reports).
Any dispute, controversy or claims arising out of, or in connection with, this Agreement or any breach thereof shall, unless it is settled by direct negotiation, be settled by arbitration in accordance with the UNCITRAL Arbitration Rules as at present in force. The Executive Committee and UNDP agree to be bound by any arbitration award rendered in accordance with this section as the final adjudication of any dispute.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section F: Settlement of Disputes).
The present arrangements may be amended by agreement in writing between the Executive Committee and UNDP. These arrangements will terminate at the option of either the Executive Committee or UNDP upon six months written notice.
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section G: Amendments or Termination of the Agreement).
This Agreement entered into force on 21 August 1991 (date of its signature).
(UNEP/OzL.Pro/ExCom/5/Inf.3, Section H: Effective Date of Agreement).
AMENDMENT TO THE AGREEMENT BETWEEN THE EXECUTIVE COMMITTEE OF THE (THEN INTERIM) MULTILATERAL FUND FOR THE IMPLEMENTATION OF THE MONTREAL PROTOCOL AND THE UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP), SIGNED ON 21 AUGUST 1991
1. For purposes of making commitments in respect of agreed activities, UNDP shall consider as resources at its disposal:
a) contribution payments in cash transferred to UNDP by the Executive Committee through the Treasurer of the Fund (UNEP), and
b) resources allocated to UNDP by the Executive Committee, held by the Treasurer on behalf of the Executive Committee in irrevocable promissory notes.
2. Resources held and allocated to UNDP by the Treasurer of the Fund shall be considered by UNDP to be available for purposes of making commitments after UNDP receives written confirmation to this effect from the Treasurer.
3. Cash transfers will be made by the Executive Committee through the Treasurer to cover the disbursement requirements of agreed activities. These will be based on periodic cash flow estimates submitted by UNDP.
4. The Executive Committee shall ensure, through the Treasurer of the Fund, that adequate cash is made available to UNDP in advance to cover at least one year’s estimated disbursement requirements for agreed activities, provided cash flow estimates for any given period are submitted well in advance by UNDP (preferably three months).
5. The details related to cash flow estimates and cash transfers will be agreed between UNDP and the Treasurer of the Fund.
6. This amendment supersedes those relevant stipulations of the agreement which relate to commitments and transfers of contribution payments
Signatures
For the Executive Committee For UNDP
_______________________ _______________________
Date:__________________ Date:__________________
(UNEP/OzL.Pro/ExCom/25/68, Decision 25/2, para. 23(a)).
(Supporting document: UNEP/OzL.Pro/ExCom/25/68, Annex II)).