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Table of Contents
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I. Background
II. ADB's Poverty Reduction Strategy
III. Rationale for the Cooperation Fund
IV. Objectives and Scope
V. Outputs
VI. Activities to be Financed from the Fund
>>VII. Implementation Arrangements
VIII. Funding Arrangements
IX. Recommendation
Formulation and Implementation of National Poverty Reduction Strategies

VII. Implementation Arrangements

17. The Fund will finance the design, processing, approval and implementation of a series of DMC-specific TAs according to ADB’s procedures and guidelines. Among other criteria, individual DMC TA proposals will be screened with respect to (i) the extent to which there is evidence of country ownership of the process, (ii) the inclusiveness of the proposed approach, and (iii) the extent to which there is sound collaboration with other donors.

18. Individual TAs or annual regional TAs to support subregional DMC staff training that are to be financed by the Fund will be processed and administered under normal ADB procedures. To be consistent with the untied nature of the Fund, ADB’s Guidelines on the Use of Consultants, will be applied in the selection and engagement of the consultants to be financed under the Fund, and the procurement of goods and other services for TA operations will be in accordance with ADB’s Guidelines for Procurement.

19. Given the objective to strengthen the DMC-specific NPRS, the responsibility for the activities to be financed from the Fund on the country level will be delegated to the resident missions where they exist and are sufficiently staffed, supported by programs departments.

20. SPD 4 will be responsible for the coordination and act as a focal point and channel of communication for all technical and implementation matters relating to the performance of the Fund and individual TAs.

21. The Office of Cofinancing Operations (OCO) will act as the official channel of communications regarding the Fund between the participating donors to the Fund and ADB. OCO will monitor and report on the financial performance of the Fund and liaise with the participating donors accordingly.

22. SPD will submit to participating donors an annual report as well as six-monthly progress updates. These will be developed together with concerned resident missions and programs departments. In addition, six-monthly financial statements will be submitted to donors. SPD will ensure that one integrated report will be submitted through OCO to the participating donors. Based on these reports, the participating donors and SPD will review progress.

23. Work will be carried out on the basis of detailed annual work programs. On an exception basis, any new proposals submitted during the year and subsequent to the agreed work program will require consultation with donors for inclusion in the program. These work programs will be prepared by the resident missions, and, in consultation with programs departments, consolidated by SPD; and submitted to the participating donors through OCO two months before the start of the next 12 month period. A first work program until 31 May 2002 will be submitted on or before 1 November 2001. It is envisaged that the donors will meet once a year to discuss the progress made and the work program for the next year.



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VI. Activities to be Financed from the Fund
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VIII. Funding Arrangements