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Funding FAO Projects and Programmes
Since 2000, FAO has managed a yearly average of approximately 1 500 to 2 000 field projects with an overall annual delivery of US$ 350 to 400 million. Six percent of these are funded from the Regular Programme through the FAO Technical Cooperation Programme (TCP) and the Special Programme for Food Security (SPFS). The remainder is funded from extrabudgetary resources.
Extrabudgetary funding (not part of the FAO budget)
Governments from developed and developing countries are the main contributors to FAO's extrabudgetary funding sources. Other UN agencies, international financing institutions, the private sector, local authorities as well as voluntary contributions from the general public also contribute.
Extrabudgetary resources are channelled through FAO's Trust Fund Programme 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 Strategic Partnership Programmes
(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 extrabudgetary resources
Contacts with multilateral and bilateral funding sources for development projects and programmes as well as funding from local authorities are coordinated by FAO's Field Programme Development Service (TCAP).
Resource mobilization for emergency and rehabilitation projects and programmes is coordinated and managed by the Emergency Operations and Rehabilitation Division.
FAO's field level offices are increasingly involved in resource mobilization and often engage with donors directly at the country level.
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The FAO-Netherlands Partnership Programme (FNPP) is an example of funding which is provided on the basis of relatively flexible strategic partnership agreements in which donor support is not tied to particular projects or specific departments but instead goes to a broader range of activities.
Activities undertaken by FAO with FNPP support in recent years range from the development of a coordinated forestry policy for the countries of central Africa, to technical assistance with poverty reduction programmes in India's poverty-stricken Orissa state, to studies in Ethiopia aimed at improving the efficiency of seed delivery systems.
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