1. UN-World Bank Collaboration
Fiduciary Forum
March 27, 2008

2. UN-WB Collaboration
Provider of Services and Goods/Supplies to IDA/IBRD Borrowers
$1.5 billion in contracts since FY02
Mostly Consultants Services & Goods
Implementing Agencies under World Bank Administered Trust Funds in Post-Crisis Situations (OP 8.00)
Approx. $250 million to UN as implementing agencies through Grant Agreements

3. Channels & Procedures Implementing Agency Cr/Ln Agreement
Funding Source
IDA/IBRD
Multi Donor
Trust Fund
(OP 8.00)
Legal
Framework
Relationship
Governing Documents
“Contract” (Govt/UN)
Cr/Ln Agreement
(Gov/WB)
Grant Agreement (WB/UN)
Admin Agreement
( WB/Donors)
General
Conditions
(“intended purposes”)
Procurement/ Consultant Guidelines
FPA
(“Own Rules”)
“Contractor” /
“Consultant”
Implementing Agency
UN Agency

4. Issues
Bank’s revised Sanctions Regime & Fraud & Corruption clauses (both IDA/IBRD & TFs)
Right of Bank to inspect & audit violates “single audit”
Sanctioning UN Agencies in case of F&C
Use of “contractor/supplier” or “consultant” contracts in IDA/IBRD projects inconsistent with UN practices
Case of Sudan MDTF
FMFA in place
Procurement waiver from MD
Case of Avian Flu
Consultant Services Agreements w/ FAO/WHO/UNICEF

5. Partial Solutions to Date
Waivers from Managing Directors involving lengthy negotiations
Blocked programs (e.g. UN refuses to sign)
Non-compliance w/ Bank policy, no waiver requested

6. Efforts to Enhance Collaboration
Fiduciary Principles Accord (FPA)
Contracting UN under IDA/IBRD
Involves revisions to Procurement/ Consultant Guidelines
Revisions to standard contract forms for use with UN Agencies
Both sets of initiatives currently underway

7. Fiduciary Principles Accord
Objective: facilitate quick, effective disbursement of Trust Funds for Crisis & Post-Crisis Situations (OP 8.00)
Allow UN Agencies to implement projects on gov’t behalf using own rules & procedures, including procurement
Builds on FMFA – extending to Procurement, M&E, Project Design/Implementation, Fraud & Corruption

8. Fiduciary Principles Accord (FPA) Key Elements
UN-WB Agree on Fiduciary Principles
Assurance/Representation to Meet Principles using own Rules & Procedures
Agree on mechanism for F&C, including consultation
Remedies – suspension or termination
Agree on reporting financial & implementation progress

9. UN Contracting under IDA/IBRD
To facilitate UN supply of critical goods (e.g. drugs, vaccines & similar urgent supplies) and services in single source situations
Revisions needed:
Procurement & Consultant Guidelines
Standard “contracts” – “supplier” & “consultant”
Require Board approval for Guidelines

10. Timetable for Initiatives
Fiduciary Principles Accord
Requires Audit Committee endorsement of principles & possible Board approval
Spring 2008
UN Contracting under IDA/IBRD Projects
Amendments to standard contract forms
Require Audit Committee & Board Approval