Aid Modalities Guideline

Aid modality

Possible Partnership Framework

International Pooled Funds

The relationship between NZAID and a Pooled Fund is generally provided for by the fund’s agreed framework for how it is governed and administered. NZAID will generally have an existing relationship with or membership of the agency managing the fund and would normally be part of the governance structure of a Trust Fund. These documents will normally provide the Partnership Documents for an International Pooled Fund.

National Poverty Reduction Support

Support for national poverty reduction via contributions to the general budget should be underpinned by an arrangement with the partner government which provides clarity on the nature of the cooperation, the undertakings of each government and how it will be governed and monitored. This may be incorporated into an Economic/Budget Support Arrangement as in the case of the Niue Halavaka Arrangement, or pursued separately as a higher level arrangement.

Sector Programme

Sector Programmes delivered via budget support should be underpinned by an arrangement with the partner government which provides clarity on the nature of the cooperation, the undertakings of each government, and how it will be governed and monitored. This may be incorporated into an Economic/Budget Support Arrangement, or covered by a higher order document such as a partner harmonisation framework or equivalent.

Organisational Support / Strategic Partnership/

Organisation Support/Strategic Partnership implies a relationship and set of expectations that clearly go beyond the specific contracting mechanism or funding commitment. There is a need for a specific and separate document, negotiated and signed if appropriate, that outlines the nature of this relationship. These vary according to the partner:

Multilateral Agencies - the current vehicle for this is the Agency Engagement Framework as well as the base documents which underpin our membership of these agencies.

Regional Agencies – generally there is no current document beyond the specific funding arrangements for each agency, and the relationship is managed via our involvements in governance (where we are members), via High Level Consultations, and within the current funding arrangement.

NZ Agencies – Partnership principles are currently incorporated into four year core funding agreements with CID, VSA, and Trade Aid rather than as separate documents.

NZ Development NGOs – NZAID does not envisage strategic partnerships with individual NZ CID member NGOs, but does have a strategic relationship at the NZ NGO Community level. This is formally documented via the Strategic Policy Framework which is an agreed document.

Other Strategic Partners - To give clarity to long term partnership intent beyond the life of particular funding arrangements, NZAID should pursue clarity through a partnership agreement.

Partner project

In most cases there is no need for any separate relationship document for a partner project. The formal relationship does not necessarily go beyond the project and supporting contract, and that contract should incorporate all the relevant relationship matters that are required for the project.

Joint project (NZAID facilitated)

Joint projects should pursue a specific partnership document or arrangement with the partner concerned. This should ensure that there is agreement on the nature and scope of the activity, the undertakings of each partner, and how it will be governed and monitored. This will provide a basis for ensuring that NZAID’s role in contracting delivery is undertaken in accord with expectations of the partner.

Third party project

As the relationship with the developing country partner is generally held by the third party there is no need for a partnership document or arrangement with the in-country partner. In most cases this would be inappropriate and would cut across the key relationship.

Contestable Fund

Contestable funds must be governed by clear, transparent, and comprehensive guidelines covering eligibility, selection, implementation and accountability. These should provide sufficient clarity on the partnership and relationship between applicants and NZAID. In the case of the Koha-PICD and HAF funds for NZ NGOs, the relevant Handbooks have been agreed between NZAID and the NZ NGO community so already represent a clear and transparent relationship agreement.

It may be appropriate in bilateral partner countries, for the existence of such windows to be recorded and agreed as part of overarching ODA arrangements.

Technical Assistance

As with NZ Facilitated Projects, NZAID should pursue a specific relationship document or arrangement with the partner concerned. This should ensure that there is agreement on the nature and scope of the activity, the undertakings of each partner, and how it will be governed and monitored. This will provide a basis for ensuring that NZAID’s role in contracting delivery is undertaken in accord with expectations of the partner.

Scholarships and Training

Scholarships and Training activities tend to be managed by NZAID or by NZAID contractors, though this is evolving over time. There would seem a need for arrangements with partner governments covering these activities.

Some bilateral programmes have Scholarships Arrangements.

In-country training programmes should have supporting arrangements particularly if they are NZAID facilitated.