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Promoting Investment in agriculture

Funding FAO Projects and Programmes

Voluntary Contributions Governments are the main contributors to FAO's voluntary resources. Other UN agencies, international financing institutions, the private sector and local authorities also make significant contributions, while the general public can also fund the Organization through its Telefood programme. Voluntary resources are channeled through different funding modalities.

Earmarked funding modalities

(i) The Government Cooperative Programme or tripartite agreements with bilateral donors and recipients. Assistance is provided by bilateral donors and is directed to either an individual recipient country or a group of countries.
(ii) Unilateral Trust Fund agreements whereby recipient countries finance technical assistance projects from their own national resources or from loans, credits and grants provided by international financing institutions.

Unearmarked funding modalities which are provided on the basis of relatively flexible strategic partnership agreements (programme approach funding)

This includes:

(i) the FAO Multidonor Mechanism (FMM). The novelty of this mechanism is that the voluntary contributions are no longer tied to a specific programme or project but go right into the FAO integrated budget along with the assessed contributions from member countries. Depending on the resource partner, resources are either completely unearmarked or loosely associated to Strategic or Functional Objectives. Sweden and the Netherlands are the first resource partners to provide funds to the FMM, providing USD 26 million to be deployed until 2013.

(ii) the Special Fund for Emergency and Rehabilitation Activities (SFERA), which is used for setting up emergency coordination units and for the advance funding of emergency projects.

The FAO Trust Fund Programme also includes the FAO Trust Fund for Food Security and Food Safety, established in follow-up to the World Food Summit with an initial target of US$500 million. It is an important source of demand-driven funding to supplement the other trust funds and focuses on catalytic projects that address long-term structural needs of the rural poor.

Coordination and management of voluntary resources

Contacts with multilateral and bilateral funding sources for development projects and programmes as well as funding from local authorities are coordinated at Headquarters by FAO's Operations and Resource -->Mobilization Service (TCSR). Resource mobilization for emergency and rehabilitation projects and programmes is coordinated and managed by the Emergency -->and Rehabilitation Division (TCE).

FAO's decentralized offices are increasingly involved in resource mobilization and often engage with resource partners directly at the country level.

Please note that a new corporate resource mobilization website has been launched

FAO's Multi-donor Partnership Programme (FMPP) is an alternative way for donors to partner with FAO. For more information, click here : the FMPP brochure

Mobilizing resources for food and agriculture. FAO Trust Funds
Useful links
Resource Mobilization Website
TCP grants
Decentralized cooperation

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