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In every project implemented by the CFC, series of agreementis are concluded with local and international implementation partners to ensure maximum stakeholder ownership and participation in the activities supported by the CFC.

Project Executing Agencies (PEAs)

The CFC places no general restrictions on the status and organizational form of its project implementation partners. Depending on the needs of practical activities involved, the CFC collaborates with other international agencies, governments, parastatal institutions, national and multinational private sector companies, reseachers, NGOs, cooperatives and any other partners who share the objectives of particular actions supported by the Fund, and who can practically support their implementation.

The selection of a suitable PEA is part of a project design and should be made before the project is submitted to the CFC taking into account the eligibility criteria given below. In selecting a PEA priority is given to institutions in beneficiary countries so that the benefits of capacity building and sustainability of the project is retained. Such preference should, however, be without prejudice to technical and managerial capability and competence. While the particular legal and procedural particularities of United Nations agencies and other public organisations is recognised, all prospective PEAs should be treated with equal scrutiny. Host Governments should recognise and support the appointment of a prospective PEA. This, however, should not compromise, in any way, the independence of the PEA in the performance of project execution.

Selection Criteria (based on decision EB/42/3)

1. The legal personality of the proposed PEA. The proposed PEA must have a legal personality to assume the overall responsibility for the day to day management and effective application of inputs towards the attainment of a project's objectives. The proposed PEA must have the full legal authority to enter into legal contracts with other legally established entities including the CFC and implementing institutions;

2. The available technical experience and expertise within the project execution agency or accessible to it and available to the project. Experience in the technical execution of similar projects is an essential prerequisite. If the extent of its capability does not allow it to discharge independently all the technical functions arising from its execution responsibilities, arrangements may be made whereby:

  • The project executing agency executes the project with the participation of one or more agencies; or
  • Alternatively, and where appropriate, activities are organised into two or more self‑contained but mutually reinforcing independent components, with the project executing agency assuming execution responsibility for one or several components and the other agency(cies) for the other(s) components of the project.

3. The administrative capability of the project executing agency including procurement of goods and services and financial management. The proposed PEA must be willing and able to identify and review the suitability of independent auditors and reach agreement with an appropriate external auditors (which follow international auditing practices) in consultation with the CFC and/or the Supervisory Body;

4. The capacity of the prospective PEA to plan, co-ordinate and execute the project activities and to supervise project implementation as well as the effectively control the appropriate utilisation of the resources (financial, physical and human) towards the attainment of project goals; and

5. The outreach of the prospective PEA to the potential beneficiaries and other stakeholders and the level of its acceptance.

(Document CFC/EB/42/4)