Aid Modalities ~ Annex 1 | Table 9

THIRD PARTY PROJECT

A discrete grant funded project where a non-developing country partner takes some leadership and would be the key contractual party with NZAID.

Aid modality characteristics

General

· Contractual relationship is via a third party agency (not a developing country government or NGO)

· Third party develops the proposal/design and budget and holds accountability for delivery and reporting.

· Third party holds main local partner relationships

Relationships and governance

· NZAID’s relationship is primarily with the Third Party agency rather than with the developing country implementing partner/s, via a funding arrangement

· Governance tends to be based on discussions surrounding monitoring, reporting and evaluations by the third country partner

· Generally no need for a partnership document or arrangement between NZAID and the in-country partner. In most cases this would be inappropriate and would cut across the key relationship.

Design and accountabilities

· Third Party may take the lead in facilitating the design or at least in finalising the proposal to be put to NZAID

· Third Party takes responsibility for primary accountability to NZAID

· Reporting and acquittals are generally prepared and submitted by the Third Party

Advantages

Risks

· By working with a Third Party, NZAID may be able to support good initiatives without having to manage the more complex or local relationships involved

· It may also help to foster supportive and ongoing development partnerships between others (eg between an NZ NGO and their counterpart)

· The Third Party takes on much of the management and reporting responsibilities

· Externally facilitated design and implementation processes may lack ownership of commitment from the partner agency

· NZAID more distant from the local stakeholders and implementing partners and it is more difficulty to assure local ownership

· We rely heavily on the Third Party reporting

· There will likely be both implementation and overhead costs associated with the Third Party

When to use:

Where a higher order modality is not possible/suitable

· The case for directing resources via a project modality is strong and could not be achieved via a higher order modality.

· The project actively links to and reinforces higher order modalities

Where project support can be effective

· In-country partners have clearly had strong input into the design of the programme and will continue to enjoy reasonable ownership during implementation

· Local partner capacity to implement, monitor and account for the project are provided for.

· Support for the project will not undermine moves to fewer, longer, deeper.

Where the third party agency is the best route

· The third party agency has enduring and supportive relationships with the in-country partners

· NZAID does not have the relationships or resources to support direct relationship or where the more appropriate relationship may be between the third party and the local partner(s).

· Other stakeholders are supportive of the approach

· The third party is adding specific value and is ‘engaged’ rather than a conduit for funds and is helping to build the capacity of the local partner(s)

· Third Party costs and overheads represent value for money and are commensurate with the contribution they are making.