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The United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) have established a Joint Programme entitled "Provincial Governance Strengthening Programme (PGSP),” using a pass-through funding modality. The PGSP Joint Programme aims to build the capacity of the provincial governments in public expenditure management, so that they are able to programme, produce, and execute credible budgets, through appropriate participatory and transparent procedures.

To provide incentives for the adoption of improved governance, the PGSP Joint Programme has set up a Provincial Capacity Development Fund, to provide provincial governments with a limited, but meaningful amount of discretionary resources for development spending. The Joint Programme also focuses on supporting and building the capacity of the central ministerial administration to effectively support and supervise the performance of the provincial governments.

The PGSP Joint Programme encompasses:

  • Support to nine provincial governments;
  • A duration of five and a half years, from  22 April 2008 to 30 June 2013; and
  • Main partnerships with the Prime Minter’s Office of the Solomon Islands and five ministries.

The PGSP Joint Programme is administered by the Multi-Partner Trust Fund Office (MDTF Office) of the United Nations Development Programme (UNDP) in accordance with its financial regulations and rules.


Assistance Strategy

The goal of the Provincial Governance Strengthening Programme (PGSP) Joint Programme in the Solomon Islands is local development, specifically: 

  • An improvement in coverage and quality of local infrastructure and services;
  • Better managed natural resources and environmental protection; and
  • An increase in local economic activity, employment and revenues.

The intermediate outcome of the PGSP is to improve provincial governance for development; that is, to promote and manage local development through the improvement of the effectiveness and efficiency of the nine Solomon Islands provincial governments.

To achieve the Joint Programme's goal and the intermediate outcome, the PGSP focuses on the delivery of a range of activities organized under the following three strategic components:

  • Component 1: Clarify and gradually expand the responsibilities of the provincial governments for local-level infrastructure, service delivery, and local economic development management;
  • Component 2: Increase the flow of public funds to provincial governments to align their resources with their mandated responsibilities, and to build capacity through incentives for improved performance; and
  • Component 3: Build the capacity of provincial governments (both assemblies and administrations) for pro-poor policy-making, and implementation, focusing initially on improving the institutions of public expenditure management.

The commitment of the United Nations Capital Development Fund (UNCDF), and the United Nations Development Programme (UNDP) to the PGSP Joint programme is reflected in the United Nations Development Assistance Framework (UNDAF)’s outcome 2.2 (decentralisation of governance and participatory decision-making are enhanced), and specifically outcome 2.2.1 (strengthened provincial governance structures and systems). The PGSP Joint Programme contributes towards the achievement of Millennium Development Goals through poverty reduction.



The Provincial Governance Strengthening Programme (PGSP) Joint Programme is implemented jointly by the the United Nations Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) using a pass-through funding modality. The programmatic and financial accountability rests with the Participating UN Organisations, which manage their respective components of the Joint Programme. 

The Joint Oversight Committee

A Joint Oversight Committee is set up at the national level. The Joint Oversight consists of representatives from: the Prime Minister's Office, the Ministry of Provincial Government and Institutional Strengthening; the Ministry of Development Planning and Aid Coordination, the Ministry of Finance and Treasury, the Ministry of Public Service, the Ministry of Women, Youth and Children Affairs, three provincial governments (on a rotating basis), two Participating UN Organisations and the donors as observers.  

Administrative Agent

The Multi-Partner Trust Fund Office (MPTF Office) of the United Nations Development Programme (UNDP) serves as the Administrative Agent (AA) of the PGSP Joint Programme. The AA is responsible for concluding Standard Administrative Arrangements (SAAs) with donor(s) and Memorandum of Understanding (MoU) with Participating UN Organisations.


Decision Making

The Joint Oversight Committee discusses and approves work plans and budgets as well as any substantive or financial issues pertaining to implementation of the PGSP Joint Programme. The members assume responsibility for performing joint monitoring of PGSP Joint Programme activities. Decisions are made by consensus. Members provide regular feedback on its implementation and propose any necessary corrective actions to resolve problems, ensure accountability, and make recommendations.

The Administrative Agent [Multi-Partner Trust Fund Office (MPTF Office) of the United Nations Development Programme (UNDP)] for the PGSP Joint Programme is responsible for the receipt, administration, and management of contributions from donors; disbursement of funds to the Participating UN Organisations; and consolidation of financial reports produced by each of the Participating UN Organisations and Participating Non-UN Organisations, and provision of these reports to the Joint Oversight Committee for onward submission to the donors.

Recent Documents

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Key Figures
Funding Status
Participating Organizations are required to submit final year-end expenditures by April 30 in the following year; Interim expenditure figures are submitted on a voluntary basis and therefore current year figures are not final until the year-end expenditures have been submitted.
Total as of
Values in US$
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Funds with Administrative Agent
Contributions from Donors 6,193,801  
Interest and Investment Income (from Fund) 80,557  
Interest (from Participating Organizations) 10,323  
Refunds by Administrative Agent to Contributors -1,033  
Total source of funds   6,283,647
Transferred to Participating Organizations 6,221,625  
Refunds from Participating Organizations 0  
Administrative Agent Fee 61,938  
Direct Cost 0  
Bank Charges 84  
Total use of funds   6,283,647
Balance with Administrative Agent   0
As a percentage of deposits   0%
Funds with Participating Organizations
Transfers to Participation Organizations 6,221,625  
Total resources   6,221,625
Participating Organizations' Expenditure 6,221,625  
Refunds from Participating Organizations 0  
Total expenses     6,221,625
Balance with Participating Organizations   0
As a percentage of transfers   0%
Total Balance of Funds   0
As a percentage of deposits   0%
Delivery Analysis
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Administrative Agent Issues in Solomon Islands



Administrative Agent Issues in New York

Multi-Partner Trust Fund Office (MPTF Office), Bureau of Management, United Nations Development Programme; Fax: +1 212 906 6990;  

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