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					          The GEF Trustee

             GEF Familiarization Workshop
                  April 27-30, 2009

Multilateral Trusteeship and Innovative Financing (CFPMI)
   Concessional Finance & Global Partnerships (CFP)
Roadmap


I.    Role of the Trustee
II.   Project Cycle
III. Allocations by Agency
IV. Financial Management Challenges
V.    Conclusions




                                      2
GEF Governance Structure

                                                                  Accountable to
                             GEF Council                           the Council

                                                             Holds in trust the assets
                                                             which constitute the Fund

       GEF Secretariat at                                      Several World Bank
                                     World Bank as Trustee
           World Bank                                         departments involved
                                      for GEF Trust Fund
   (functionally independent)                                (CFPMI, ACTTF, LEGFI)

  World                                                      Administers the Fund in
             UNDP       UNEP                                  accordance with the
  Bank
                                                                provisions of the
                                                                   Instrument
   Implementing
                        STAP
     Agencies                                                       Cooperate



I. The Role of the Trustee
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
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
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
The GEF project cycle:
Fund flows for full-sized projects


                                                                           Returned Funds from Agencies
                                                                      Released from Commitment
                                                  Release from set-aside


   “Pledge”:                            Cash received
                   “Billing”: IoC                          Approved      Set aside    Endorsed     Committed
    IoC not                                 (USD)                                                               Transferred
                  deposited with                             by             by           by           by
 deposited with                        Note       Note                                                         to Agencies
                     Trustee                               Council        Trustee       CEO         Trustee
    Trustee                         received encashed


                                         Restricted
                                         resources

Resources not yet received            Resources received                     Resources reserved                Resources out




II. Project Cycle                                                                                         7
 Project cycle lasts through multiple replenishments
                                  Chart 6: GEF Timeline between First Council Approval
                                     and Last CEO Endorsement per Replenishment
                          GEF-1                          GEF-2                           GEF-3


FY

      95   96   97   98      99   00           01   02     03       04      05      06       07    08   09   10

 94                                                                                                               10



                                  FY95-FY05
                                   1994 - 2005
                                       GEF-1




                                                           FY99-FY07
                                                            1998 - 2007
                                                                GEF-2




                                                                                    FY03-FY09
                                                                                     2003 - 2009
                                                                                         GEF-3




 II. Project Cycle                                                                                  8
Determining available funding

                                                         Table 13: GEF Trust Fund – Schedule of Funds Available
  Not all funds the
                                                            Updated as of February 28th, 2009 (in USD millions)
 Trustee holds are
available for funding                                                                            As of February 28, 2009   As of January 31, 2009
    decisions…
                                                                                                                USD eq.                   USD eq.
                                                             Notes in from three donors
                        1. Funds held in Trust                  plus FX fluctuation                                3,936                    3,890
                           a. Cash and investments                                                    2,930                       2,928
 … some funds are          b. Unencashed Promissory notes                                             1,006                         962
restricted: deferred
    contributions,      2. Restricted Funds                                                                          279                     294
 reserve for foreign       a. Deferred contributions in respect to the pro rata right                  239                         254
      exchange             b. Reserve to cover foreign exchange rate fluctuations                       40                          40
   fluctuations …
                        3. Funds held in Trust with no restrictions ( 3 = 1 - 2 )        Currency                  3,657                    3,596
                        4. Approved amounts pending disbursement                        exchange                   3,420                    3,396
                                                                                        fluctuation
… and some funds           a. Trustee Committed                                                       1,970                       1,936
are set aside based        b. Approved by Council but not yet CEO Endorsed                            1,450                       1,461
on Council or CEO          c. Requested amounts for financing pending Council Decision                  -                             -
 decisions and are
                        5. Funds available to support Council or CEO funding decisions ( 5 = 3 - 4 )                 237                     199
      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
Agency implementation of GEF projects
                                    Chart 4: Trend by Agency of GEF Council and CEO Net Funding Decisions          IBRD                    UNDP
                                                            Fiscal Year 2000 to 2009                               UNEP                    IFAD
                                                                                                                   IADB                    UNIDO
                                                                                                                   Other Agencies

                                     100%     2
                                              28                   35        36        38                    28                                    70
                                                         79                                      78                       106
                                                                                                             55                      151
                                                                             76        99                                                          54
                                                                   69                            79                       80                       46
                                      80%               120                                                                          49
                                              243                                                                                                  116
                                                                                                                                     67
        Share of Total Allocation




                                                                  115
                                                        132                 241                             257           329
                                      60%                                             276        258

                                                                                                                                     320           352
                                      40%


                                              292       385       269
                                                                                       328                  264           456
                                      20%                                   266                  298
                                                                                                                                     236           235


                                       0%
                                             FY00       FY01      FY02      FY03      FY04      FY05        FY06        FY07         FY08        FY09
                                                                                                                                              (annualized)




III. Allocations by Agency                                                                                                      10
Specified RAF Allocations are a challenge when
availability of funding is volatile.
   GEF Focal Areas and Corporate      Targeted Allocations    Share of Resources to
   Program Allocations5               in millions of USD      be Programmed
                                      equivalent
   Biological diversity                                   990                   33%
   Climate change                                         990                   33%
   International waters      Allocating under             355                   12%
   Land degradation             uncertainty               300                   10%
   Ozone layer depletion                                   40                    1%
RAF-allocations add pollutants
   Persistent organic                                     300                   10%
 to the complexity
   Corporate Programs7                                     15                    1%
   Sub-total: Resources                                  2990                  100%
   Corporate budget                                       120
   TOTAL                                                3110
                            Moving target




IV. Financial Management Challenges                                         11
The GEF structure’s complexity and number of
transactions are increasing.

                                                    Chart 4: Number of GEF Transactions
                                                                                                 Transactions Related to Donor Contributions
                                                           Fiscal Year 2000 to 2009
                                                                                                 Transactions Related to Funding Decisions
                         3000



                         2500
                                                                                                                                                  500
Number of Transactions




                         2000                                                                                                     500


                         1500                                  500
                                                                              500         500
                                              500                                                 500             500
                         1000          500                                                                                                        2076
                                500                                                                                              1693

                                                              1213           1146         1145
                          500                 961                                                 943             962
                                       762
                                638

                            0
                                FY00   FY01   FY02            FY03           FY04         FY05   FY06            FY07            FY08             FY09
                                                                                                                                               (annualized)




V. Conclusion                                                                                                                           12

				
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