The Executive Committee and UNEP signed an agreement on 19 June 1991. Under this agreement:
UNEP agrees to co-operate with the Executive Committee and eligible Parties in the areas detailed under its scope of co-operation, and for this purpose a work programme and budget will be presented annually by UNEP to the Executive Committee for its approval. The work programme and budget shall be made available in sufficient time prior to the meeting of the Executive Committee at which the work programme is to be considered. The work programmes shall identify the nature of the activity for which financing is requested, its timing and duration, cost details, participants, and expected outcome of the activity. The work programme shall be accompanied by a budget for proposed activities. In preparing its work programme, UNEP shall take into consideration requests by Parties operating under paragraph 1 of Article 5 of the Protocol for assistance in implementing their proposed programme of activities under the Protocol. Funds for these support activities shall be included in the annual work programme.
In developing its work programme, UNEP shall consult with the World Bank and the UNDP before making proposals to the Executive Committee on matters of interest to them and will pay due regard to their views. UNEP shall keep the other Implementing Agencies continuously and adequately informed in a timely manner of its activities covered by these arrangements as they affect the other Agencies.
UNEP shall co-operate with the Secretariat of the Fund to provide Parties with 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.
In discharging its responsibilities, UNEP will use, as appropriate, its Headquarters Secretariat, its Regional Offices, its Specialized Offices, especially its Industry and Environment Office.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section A: Financial Procedures).
Upon approval by the Executive Committee of the programme of activities proposed by UNEP, UNEP will administer and manage the approved projects under a specific Trust Fund established in accordance with:
(a) the financial rules, regulations and procedures of the Environment Fund of UNEP;
(b) the application of considerations relevant to effective and economically efficient implementation of programmes an projects that are consistent with any criteria adopted by the Parties; and
(c) the guidelines for the implementation of activities supported by the Fund as adopted by the Executive Committee; and
The Executive Committee shall approve the transfer to UNEP of resources allocated by the Committee for the implementation of the activities approved by it. 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 UNEP. Such inputs shall be incorporated in the relevant project documents.
Any interest income derived from contributions to the trust fund shall be credited to the fund in accordance with UNEP procedures.
The Trust Fund shall be charged with a percentage of all project expenditures made from the Trust Fund, which amount shall, in accordance with UNEP regulations, rules and directives, be utilized by UNEP in reimbursement for support services provided by any selected Implementing Agencies other than UNEP and/or by UNEP itself. The amount required for such costs shall be specified in the approved project documents and work programmes.
The accounts of the resources transferred to UNEP shall be subject to the internal and external audit procedures applicable to the United Nations.
UNEP will present to the Executive Committee, with the six monthly and financial reports any requests for meeting unforeseen increases in costs of the implementation of the approved activities.
UNEP shall not be required to start any activity supported by the Fund before the transfer of resources.
If unforeseen increases in expenditures or commitments are expected or realized, UNEP 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.
UNEP may agree to co-financing arrangements, on terms determined consistently with the financial provisions in this agreement, in cases in which such financing is to be provided for purposes of the Protocol.
UNEP shall continue to hold all unutilized contribution payments until all commitments and liabilities incurred in the implementation of the projects have been satisfied and project activities brought to an orderly conclusion. Upon completion of its activities and fulfillment of its obligations, UNEP shall return all unused resources to the Fund unless otherwise agreed.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section B: Operational Procedures).
Ownership of equipment, supplies and other property financed from the contribution shall vest in UNEP for the duration of the specific project or programme activity. Following the completion of the above specified project or programme activity, ownership shall be transferred to the appropriate institution or agency in the recipient country in accordance with the relevant policies and procedures of UNEP, taking into account recommendations that may be received from the Chief Officer of the Fund Secretariat.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section C: Ownership and Disposal of Property).
The Executive Director of UNEP, or his representative, shall be invited to participate in meetings of the Executive Committee to report and consult on UNEP's activities under these arrangements.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section D: Participation at Meetings).
As approved by the Executive Committee and in accordance with UNEP accounting and reporting procedures, UNEP 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 on implementation of activities of prior approved work programmes and activities related to country programmes;
(c) an annual report of the status of UNEP activities related to country programmes;
(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.
UNEP shall contribute to the 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 UNEP's implementation of activities supported by the Fund and will monitor and evaluate expenditures incurred. The Executive Committee will transmit its findings to UNEP for comment and follow-up.
(UNEP/OzL.Pro/ExCom/5/Inf.4, 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. UNEP and the Executive Committee 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.4, Section F: Settlement of Disputes).
Nothing in or relating to any provision in the Arrangement shall be deemed a waiver, expressed or implied, of the privileges and immunities of the United Nations, including UNEP.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section G: General Provision).
The present arrangements may be amended by agreement in writing between the Executive Committee and UNEP.
These arrangements will terminate at the option of either the Executive Committee or UNEP upon six months' written notice.
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section H: Amendments or Termination of the Agreement).
This Agreement entered into force on 19 June 1991 (date of its signature).
(UNEP/OzL.Pro/ExCom/5/Inf.4, Section I: Effective Date of Agreement).