1. NEX and DEX: Theory and Reality
RBEC Environment and Energy Practice Workshop:
GEF Training and Kyoto Implementation Mechanisms
6-9 October 2004
Almaty, Kazakhstan
Zharas Takenov,
UNDP Kyrgyzstan

2. UNDP Project Execution:
Agency Execution
NGO Execution
National Execution (NEX)
Direct Execution (DEX)

3. Agency Execution List of eligible Agencies:
*FAO, ILO, DESA, UNESCO, UNIDO
* Other UN Specific Organizations (e.g. WHO,WMO, IAEA)
* Regional Economic Commissions
* UNOPS, Multilateral Banks (WB, Regional Banks etc.)
Recommended, when:
* activities require unique technical sector experience, specific management capacity or access to international networks
*Govt lacks the required management or substantive capacity: or
*the Parties prefer agency execution for other reasons

4. NGO Execution Can be National or International NGO Recommended when:
* project involves close cooperation with local stakeholders at the grassroots/community level;
* NGOs under consideration have a comparative advantage in the areas the project targeting (experience, expertise or relations to the targeted beneficiaries);
* Project calls for a lager number of extensive stakeholders consultations and participation

5. NEX Decision by Res. Rep (as AE and NGO) Considered as a norm
Eligible institutions:
* ministry or department within a ministry;
* a semi-autonomous Covt institutions such as central bank, university, regional or local authority or municipality;
Mechanisms for coordination to be described in prodoc, e.g. establishment of PMC
Designated institutions may contract other entities to undertake specific tasks as implementing agencies or subcontractors of the project.

6. EXPECTATIONS Better integration with national programs
Strengthening local capacity
Improved ownership and commitment
Sustainability
Lower costs

7. NEX Advantages: VAT exemption
Ensures transparency and gives the donors better trust.
Customs etc easier when it is UNDP
Can pay higher salaries to staff and attract better expertise
Disadvantages:
Capacity constrains
Influence of implementing agency interests
In-country disputes and lack of cooperation between different Govt institutions
In case of low Govt capacities often ends up close to DEX

8. CHALLENGES OF NEX Changes in Govt (staff and structure)
No ownership (name vs institution)
No follow up to signed co-financing
Low capacity (in spate of frequent trainings: CDI, CDW, FPSS)
No substantive commitment from partners
Signature of contracts, financial reports
Prodoc signing delays
Project implementation delays
Corruption   

9. CHALLENGES OF NEX 2. Absence of coordination
FP is not functioning properly
Environmental Ministries the weakest of all
Govt not able to bring co-financing
3. Place of GEF projects in the CO
Poor understanding of importance of GEF projects for SD
Seed co-financing from UNDP CO
Uniqueness of the GEF portfolio

10. DEX Decision by Associate Administrator
Used only in the countries with special development situations
Must be temporary by nature
Need to ensure transparency within UNDP by the division of responsibilities among several staff members
DEX evaluated by UNDP Evaluation Office in
A key finding - direct implementation services provided by UNDP are not detrimental to national ownership

11. DEX Advantage Disadvantage Flexibility Environment for innovation
Clear line of accountability
Corruption avoidance and transparency
UNDP commitment
Greater efficiency/effectiveness
UNDP neutrality ensures broader stakeholders participation
Disadvantage
Increased cost for DEX start-up
Weak financial system.
DEX approval process somewhat centralized.

12. UNDP CO Support Service under the request of EA
Formulating, monitoring and evaluation
Provision of assistance for financial reporting and payments
Identification and recruitment of project personnel
Identification and provision of assistance for the implementation of training activities
Procurement of goods and services
Formal agreement for the provision of the support service to be signed

13. WHAT TO DO: INPUTS FOR THE DISCUSSION
At the national level
Understanding that GEF is tool for introduction SD principles in the national policy (MDG7(9))
GEF projects used as an entry point to strengthen national capacities for NEX.
Involvement of CO in the early stages of formulation/negotiation.
Identify constraints at the institutional level and at the CO level.
Environment and GEF mainstreamed in the CO programme.
At the regional level
Out-sourcing GEF Advisors on country levels
At HQ level
To follow up with DEX Evaluation recommendations