Nicaragua UN Coherence Fund

(this fund is closed) 

Fund Dates

• Start Date: September 2013
• End Date:  31 December 2017

Fund Main Documents

• Terms of Reference (ToR)
• Memorandum of Understanding (MoU)
• Standard Administrative Agreement (SAA)

Overview

The United Nations Development Assistance Framework (UNDAF) and its Action Plan 2013-2017 synthesizes the collective effort of the UN System (UNS) and the Government of Nicaragua to establish a joint programmatic framework. To this end, the UNDAF calls for the establishment of a UN Coherence Fund to be used as an innovative instrument and part of its resource mobilization strategy for the UNDAF’s cycle. The UN Coherence Fund will co-finance UNDAF’s financial gap with predictable and un-earmarked resources from different sources of funding, ensuring effective implementation of the UNDAF, as well as its relevance and impact on the development of Nicaragua.

The UNDAF defines four areas of cooperation, and 15 outcomes, whereas its Action Plan has 49 outputs, which are in line with the strategic priorities of the National Human Development Plan 2012-2016 and the added value derived from the different capacities of the resident and nonresident UN Agencies.

The UN Coherence Fund aims at accelerating coherence, efficiency as well as to increase the UNS capacity to deliver results at the country level by channeling predictable and un-earmarked resources through one single fund. The UN Coherence Fund is intended to simplify, harmonize and improve efficiency in the use of resources, making cooperation more predictable and strategic. It intends to reduce transaction costs and streamline the different financial and programmatic reporting mechanisms.

The specific objectives of the UN Coherence Fund are:

• Achieve greater impact aiming at the strategic outcomes of the UNDAF/Action Plan while contributing to reduce finance gaps;
• Strengthen the United Nations Reform process;
• Strengthen the UN and the Government Agencies in the implementation of the UNDAF/Action Plan priorities;
• Offer a more flexible, coordinated and predictable method of financing in order to achieve national priorities; and
• Facilitate donor contributions while establishing an open dialogue about policies and financing for development strategies of Nicaragua in order to harmonize reporting as well as coordination mechanisms.

Assistance Strategy

The UN Coherence Fund mobilization target amounts to US$30 million for the entire cycle 2013-2017 in order to achieve greater impact and deliver strategic results while contributing to the reduction of the funding gap in the UNDAF/Action Plan.

As a result of a prioritization exercise, the following strategic areas to be co-financed by the UN Coherence Fund have been identified:

• Capacity building for the design, implementation, monitoring and evaluation of public policies with emphasis on those contributing to the reduction of inequalities (gender and other);
• Disaster and Risk Reduction as well as Climate Change Adaptation (effect 3.1); and
• Strengthening of national and local capacities, with emphasis on the Caribbean Coast and on indigenous and Afro-descendant communities.

Governance

Steering Committee

According to the governing structure of the UNDAF/Action Plan, the Steering Committee of the UN Coherence Fund will be the same as that for the UNDAF. This means that the Vice - Minister of External Cooperation will represent the Government and the Resident Coordinator will represent the UNS. This committee will be responsible for determining the use of the Coherence Fund, in accordance with the terms of reference and the criteria established for allocating funds as well as approving joint initiatives. It will also ensure the adequate functioning of the Fund by reviewing and approving programmatic and financial progress reports.

Based on the inter-agency structure for implementation of the UNDAF/Action Plan, the UNCT with the support of the Steering Committee of the UNDAF/Action Plan, will have an important role in defining the strategic direction and Joint Programme initiatives that will be co-funded through the UN Coherence Fund. The working groups of the different areas of the UNDAF will carry out the programmatic and financial monitoring of Joint Programmes co-financed through the Coherence Fund.

The role of participating agencies and donors will be defined by the governing structure.

Administrative Agent

Over the past 10 years, UN Multi Partner Trust Funds (MPTFs) have become a common financing model. MPTFs have improved coordination and have allowed financing to flow in a transparent and predictable manner in order to meet urgent and specific needs and respond to country strategic priorities.

The UNDP MPTF office manages a $7.3 billion dollar portfolio of trust funds that represent 99% of the total Multi Partner Trust Funds of the UNS.  The MPTF office is the administering agent of catalytic trust funds such as the Millennium Development Goals Fund which operates in 50 countries and the Peace Building Commission present in 26 countries. The MPTF Office also administers a number of local trust funds.