PACC Committee Report

 

1.0    PROGRAM AND LEGISLATIVE AUTHORITY 

 

Grants and Contributions Vote and Budget

 

The Canadian International Development Agency ('CIDA' or the 'Agency') program and legislated authority is provided by the Parliament of Canada in annual appropriations.  The vote wording provides authorization to CIDA to make grants and contributions (Gs&Cs) in cash payments, or in the provision of goods, commodities or services. The mandate of CIDA is to manage these voted financial resources on behalf of Canada.

 

Canada in the World, the Government's foreign policy statement released in February 1995, sets out the following mission for Canada's Official Development Assistance (ODA) program:

 

"The purpose of Canada's Official Development Assistance is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world."

CIDA is also responsible for the delivery of programs to the countries of Central and Eastern Europe ('CEE' or 'Countries in Transition'). These programs reflect the following mission:

"to support democratic development and economic liberalization in Central and Eastern Europe by building mutually beneficial relationships."

 

2.0    PROGRAM OBJECTIVE

 

In support of its mission, CIDA seeks to attain the following two-fold objective:

 

r     to facilitate the efforts of the peoples of developing countries and countries in transition to achieve sustainable economic and social development in accordance with their needs and environment, by co-operating with them in development activities; and

 

r     to provide humanitarian assistance thereby contributing to Canada's political and economic interests abroad in promoting social justice, international stability and long-term economic relationships, for the benefit of the global community.

 

2.1 Official Development Assistance (ODA) priorities

 

CIDA, the lead Government organization for Canada's ODA, has, in pursuit of its mission, developed a poverty-reduction strategy and made it a key element in each of the Agency's six program priorities. These six priorities are as follows:

 

1. Basic Human Needs: Support efforts to provide primary health care, basic education, family planning, food and nutrition, water and sanitation, and shelter.  Canada will continue to respond to emergencies with humanitarian assistance. Canada is committed to providing at least 25% of its ODA to basic human needs as a means of enhancing its focus on addressing the security of individual.

2. Gender Equality: Support the full participation of women as equal partners in the sustainable development of their societies.

3. Infrastructure Services: Helps developing countries to deliver environmentally sound infrastructure services, with an emphasis on poorer groups and on capacity building.

4. Human Rights, Democracy, Good Governance: Increase respect for human rights, including children's rights; promotes democracy and better governance; and strengthens both civil society and the security of the individual.

5. Private-Sector Development: Promote sustained and equitable economic growth by supporting private sector development in developing countries.

6. Environment: Help developing countries to protect their environment and to contribute to addressing global and regional environmental issues.

CIDA may also support other specific or emerging priorities in support of Canada's ODA objectives.

 

 

2.2 Countries in Transition priorities

 

CIDA's Countries in Transition program focuses on cooperating with countries of CEE through programs which: 

 

1. assist and facilitate their transition to market economies;

2. encourage and promote good governance, democracy, political pluralism, the rule of law and adherence to international norms and standards;

3. build Canadian trading by facilitating closer trade and investment links with the region;

4. assist international programs to reduce threats to international and Canadian security; and

5. other specific or emerging priorities in support of the objectives for Countries in Transition.

 

Approximately 20% of the assistance efforts in Countries in Transition are currently eligible as ODA.

 

2.3 Programming Exclusions

 

Based on current Canadian government policy decisions, the following are inappropriate and as such are excluded under these authorities:

1. luxury goods;

2. military equipment and/or supplies incompatible with Canadian foreign policy interests;

3. nuclear technology incompatible with Canadian foreign policy interests;

4. assistance whose primary aim is unconditional direct fiscal support to recipient country governments; and

5. any other assistance as deemed inappropriate in accordance with Canadian Government or Agency policy decisions.

 

2.4 Performance and Development

 

All CIDA Gs&Cs are directly linked to the program objectives and priorities. To improve the linkage between performance and development, CIDA has promulgated the Framework of Results and Key Success Factors which describes Agency-wide criteria for measuring development and defining what constitutes achievement of results at the outcome level.

 

The Framework of Results and Key Success Factors promotes a consistent usage by CIDA and its partners to bring a results-based focus to planning and design, implementation, reporting and performance measurement.

 

 

3.0    ELIGIBLE RECIPIENTS FOR GRANTS AND CONTRIBUTIONS

 

The eligible recipients for Gs&Cs are selected from participants drawn from all sectors and structures of Canadian society, from the international aid community, and from participants of all sectors and structures of society within the recipient countries.

 

The selection of an appropriate eligible recipient is always a carefully considered decision by CIDA managers, applied on a case by case basis against CIDA's stated and published criteria. CIDA fully endorses and seeks to maximize the Canadian government policy of competitive processes for the selection of contracts and similar arrangements or agreements. 

 

CIDA also supports the partnership principle, to encourage Canadian firms and organizations in their development efforts with local firms and organizations, on a cost shared basis.

 

The selection decision for a specific recipient, through competitive or other processes, is an integral part of the program or project accountabilities of the Minister, and of the CIDA managers delegated such authority. 

 

The Minister responsible for CIDA approves the eligibility of recipient countries and territories on the basis of recommendations from CIDA.

 

The eligible recipients are subject to the conditions in each Channel. The Channels, which correspond to the various classes of Gs&Cs, are used to deliver the CIDA's programs and projects. The eligible recipients may be as follows:

 

• All levels of recipient country government and territory, including their institutions, agencies, and corporations; 

• All levels of other donor country government, Canadian provincial, territorial and municipal governments, including their institutions agencies and corporations; 

• Canadian, other donor country, international, regional and local, non governmental, not-for-profit institutions and organizations which have the legal personality;

• Canadian, international and recipient country, private sector for-profit companies; 

• Canadian and recipient country entities, which have the legal personality, capable of delivering aid activities, or actively engaged in development issues;

• Recipient country community based organizations and associations capable of delivering small-scale, local aid activities or actively engaged in development issues;

• Individuals, capable of delivering aid activities, or actively engaged in development issues;  

• Crown Corporations listed in Section 85 and Part 1 of Schedule III to the Financial Administration Act, for a specific program or project.

 

Excluded from eligibility are:

 

• Canadian, international and other donor country, firms, organizations, agencies, institutions, or other entities, which have the legal personality, whose financial position is demonstrably unsound;

• Canadian, international or recipient country firms, organizations, agencies, institutions, or other entities, which have the legal personality, where:

• an assessment or evaluation indicates the entity is inappropriate for the program or project;

• the objectives or aims of the entity are not compatible with Canada's international development assistance objectives; and

• any recipient as a result of Canadian government policy decisions or reasons.

 

 

4.0    STACKING PROVISIONS

 

4.1  Level of assistance

 

Available funding allows CIDA to make only a modest contribution to the overall needs of developing countries. For programs and channels, funding levels are provided at the minimum level necessary to achieve program and project objectives.

 

4.2 International Stacking of Assistance

 

CIDA policies on levels of assistance and stacking require that all programs and projects funding be scrutinized, prior to approval, to take into account all sources of funds, from:

 

• Canada; 

• International, regional or other donor country sources or institutions; 

• Recipient country sources;

• Private sector sources;

• Recipients' own contribution (CIDA defines this as cost-sharing). 

 

Significant levels of funds spent by CIDA are for projects where the Agency defines the terms of reference and selects the executing agency for the project.  In these circumstances, CIDA provides appropriate funding for the project,  and therefore issues of stacking are not relevant.

 

In accordance with CIDA policies, when programs and projects involve financial collaboration with international agencies or other donor countries, the amount of funding by CIDA must take into account the total proposed funding for the program or project.

 

In other circumstances, CIDA may provide funds under a responsive approach to a partnering organization. CIDA requires the recipient to disclose any other proposed financial assistance being received for the specific program or project in accordance with the Treasury Board (TB) Policy on Transfer Payments.

 

CIDA examines all program and project proposal budgets prior to approval, and at various points in the program or project life period, to ensure that only the funds necessary for the success of the project are made available.

 

 

4.3       Recovery of Excess Funds

 

In some cases, a recipient may receive funding from CIDA as well as other donors. A need to consider whether excess funding has been provided arises in very few of these cases. Where it does arise, recovery action may be taken. Recipients generally fall into the following categories:

 

• Organizations which are provided funding by CIDA as a result of a CIDA initiated project, wherein CIDA determines the scope, magnitude and cost of the project.  In such cases, the recipient would not receive funds from other sources for the same activity;

• Multilateral organizations which receive funding from CIDA as well as from other donor countries.  In such cases, information is available to CIDA about the sources and amounts of other funding and CIDA takes this information into account when deciding on funding;

• Organizations which receive funds for humanitarian assistance.  If the organization can obtain additional funding, the scope of the project may be expanded to encompass a wider range of needs; and

• Organizations which receive CIDA financial assistance through the responsive mechanism or cost-sharing arrangements for projects initiated by the recipient.  In such cases CIDA requests information on the other sources prior to making a funding decision, and it requests an accounting  in the final project report on the actual sources and amounts of funds received. 

 

            Where it is evident that an organization has received more funding than required to meet the original project objectives, CIDA may consider the following actions:

 

1. require the organization to repay some portion of the funds received;

2. withhold amounts from any final payment owing; or

3. expand the project to encompass a wider range of needs and thus costs.

 

5.0    APPLICATION REQUIREMENTS

 

CIDA has established programming and application criteria and requirements, which are tailored by Channel, and Agency policy documents, to properly evaluate applicants and potential recipients. These criteria and requirements are updated from time to time due to changing Canadian and international aid priorities, and other factors.

The applicant or recipient is required to submit, where applicable :

 

• the documents demonstrating its legal constitution;

• the detailed (multi-year where appropriate) program or project proposal, which may also include the implementation plan, a detailed (multi-year where appropriate) budget, prior assignment experience relating to the proposal, and, for service contracts, the statements of availability for key personnel;

• disclose the names of any former public servants under the Conflict of Interest and Post-Employment Code; and

• other information deemed essential to properly evaluate the program or project proposal, or the applicant (e.g. associates or affiliated private sector companies, or tax exemption information of not-for-profit organizations, or citizenship of individuals).

 

An applicant or potential recipient may be denied consideration for funding, where an assessment or evaluation of a project proposal indicates the applicant as inappropriate for the program or project.