Overview
The Lebanon Recovery Fund (LRF) is a Multi-Donor Trust Fund established at the request of the Government of Lebanon that enables donors to pool their resources and rapidly provide funding in the aftermath of the July 2006 war between Lebanon and Israel. It complements other funding mechanisms that may be used by the Government and United Nations organizations.
The LRF, as stated in its Terms of Reference, will finance priority recovery and reconstruction projects that are approved by the Government and that can be executed with the support of Participating UN Organizations within the scope and time frame of national priorities.
The LRF arrangements seek to ensure that:
- each project approved for funding is part of a Government-approved priority programme for recovery and reconstruction activities based on and formulated in consultation with concerned line ministries and beneficiary communities and, to the extent possible, donors and other stakeholders;
- the activities financed through Participating UN Organizations and are implemented, to the extent possible, directly by or in collaboration with national implementation partners, under the overall ownership and leadership of the Government, to ensure sustainable local capacities; and
- funding and implementation are undertaken with special attention to transparency and accountability as well as to ensure prompt delivery and efficient use of donor funds.
Unless otherwise agreed by the Government of Lebanon and donors, the LRF will terminate upon completion of all projects funded through the LRF and after satisfaction of all commitments and liabilities.
The LRF is administered by the Multi-Partner Trust Fund Office (MPTF Office) of the United Nations Development Programme (UNDP) in accordance with its financial regulations and rules.
Assistance Strategy
LRF Terms of Reference
The month-long war between Lebanon and Israel in July 2006 caused immeasurable destruction to the lives, livelihoods, and social and physical infrastructure of the people of Lebanon. Prior to the conflict, the Government of Lebanon had prepared a reform agenda that sought to place the country on a path to solid growth and sustainable development. The war and the subsequent total land, sea and air blockade imposed by Israel resulted in a major setback to the country's encouraging economic outlook and to the reform agenda that the Government of Lebanon had elaborated.
The Government presented a strategy for a national early recovery process at the Stockholm Conference for Lebanon's Early Recovery, hosted by the Government of Sweden in close collaboration with the Government of Lebanon and the United Nations, on 31 August 2006. At the conference, the Government of Lebanon presented its early recovery priorities and a number of donors pledged their support. The early recovery process included initial quick-impact, sector-based initiatives developed to respond to Lebanon's most critical needs.
According to the strategy, the Government provides overall coordination of the recovery process, ensuring that initiatives are in alignment with national priorities, and projects are implemented in close coordination with partners, including UN agencies, bilateral development agencies, and international and local non-governmental organizations.
The Lebanon Recovery Fund (LRF), as stated in its Terms of Reference, will finance Government-approved priority recovery and reconstruction projects that can be executed with the support of Participating UN Organizations, in partnership and cooperation with government and non-governmental organizations, within the scope and time frame of national priorities. It will also facilitate the Government's coordination of international assistance and enable the Government to ensure transparent fund administration and project implementation in line with its reform agenda.
Governance
SC Terms of Reference & Rules of Procedures| Letter of Agreement | Memorandum of Understanding
Steering Committee
The Steering Committee (SC) provides the Lebanon Recovery Fund (LRF) strategic guidance and oversight as well as makes final decisions on fund allocation. The SC is chaired by the Minister of Economy and Trade, or his/her designate, and composed of the Head of the Recovery and Reconstruction Cell (RCC), a representative from the Ministry of Finance, representatives of donors (the European Commission, the State of Kuwait, the Kingdom of Spain and the United Arab Emirates) and the United Nations Resident Coordinator. The Committee’s work is governed by the Steering Committee Terms of Reference and Rules of Procedure, operates by consensus and meets monthly to review progress of the LRF operations and ensure reporting to all LRF donors.
Project Approval Group
A second-tier of review involves the Project Approval Group (PAG), which reviews and approves proposals and allocates funds for all projects specific to recovery activities. The PAG submits its decisions to the SC for endorsement on a no-objection basis within seven days of submission. The PAG is co-chaired by the Head of the RRC and the UN Resident Coordinator, and comprises leaders of the Ad hoc Thematic Work Groups, as necessary.
Recovery and Reconstruction Cell
The RRC is located in the Office of the Prime Minister that is the designated national entity in Lebanon responsible for prioritization of and resource allocation to recover and reconstruction. The RRC supports the work of the SC and PAG abd reviews all projects submitted for funding by the LRF to ensure alignment with approved national priorities and available resources. Following its review, project submissions and recommendations are forward to the either SC or PAG.
Ad-hoc Thematic Working Groups
The Ad hoc Thematic Work Groups (ATWG) is established as required to review and prioritize project proposals and submit them to the SC. The ATWG assists the RRC to review all proposals to ensure their alignment with approved national priorities and available resources.
Administrative Agent
The UNDP Multi-Partner Trust Fund Office (MPTF Office) serves as the Administrative Agent (AA) and is responsible for concluding Letters of Agreement (LOA) with donors and Memorandum of Understanding (MOU) with Participating UN Organizations. It receives, administers and disburses funds to recipients upon instructions from the SC. It consolidates, prepares and submits periodic narrative and financial reports to the SC for onward submission to donors. The AA will also commission independent lessons-learned and review exercises of the entire LRF operations, if so requested.
Decision-Making Process
Terms of Reference & Rules of Procedures
Eligibility
Any Participating UN Organization that has signed a Memorandum of Understanding (MOU) is eligible to submit project proposals for Lebanon Recovery Fund (LRF) funding.
Proposal Submission
Project proposals to the LRF are to be submitted to the Government's Recovery and Reconstruction Cell (RRC) of the Office of the Prime Minister. Participating UN Organizations should utilize the project proposals standard format (to be found in the Steering Committee Terms of Reference and Rules of Procedure) in preparing a proposal and budget for submission to the LRF.
Proposal Review & Approval Process
The LRF has a two-tier review and approval process involving the LRF Steering Committee (SC) and a Project Approval Group (PAG) that focus specifically on recovery activities. All project proposals are approved by either the SC or PAG after completing the following review stages:
- When applicable, an Ad-hoc Thematic Working Group reviews proposals and returns them to the RRC, who prioritizes and submits project proposals to the SC or PAG, as necessary
- The Recovery and Reconstruction Cell (RRC) reviews projects submitted to ensure their alignment with approved national priorities and available resources. The RRC's recommendations are forwarded to either the SC or PAG depending on the nature of the project.
- The SC, or the PAG in cases of recovery activities, reviews the project proposals and takes decisions on the allocation of funds. If the project proposal is reviewed and approved by the PAG, its decision must then be submitted to the SC for endorsement on no-objection basis within seven days.
- Following approval and signing by the SC, the approved Submission Form and Project Documents are forwarded to the Administrative Agent for the transfer of funds the Participating UN Organization.
