VN, UN to Reduce Transaction Costs, Improve Aid Effectiveness

On May 6, the first ever Harmonised Program and Project Management Guide was inked by the Vietnamese Government and the United Nations - UN in Vietnam.

 

The document aims at harmonizing and simplifying the program and project management procedures of the three UN ExCom agencies (UNDP, UNICEF and UNFPA) as well as aligning them better with the Government’s current system. Moreover, the Guide is expected to reduce transaction costs for the key partners and improve aid effectiveness.

 

It is also a joint response by the Government and the three UN agencies to the Paris Declaration and Hanoi Core Statement on Aid Effectiveness. Alignment with Government systems, harmonization of management practices and country ownership are important guiding principles in these documents and they have been duly incorporated in the Guide.

 

As the result of a long and challenging, but also constructive, process of consultations and negotiations between the participating parties, the Guide represents the trusted partnership between the Government and UN agencies.

 

The Guile sets out clear lines of accountability between the parties involved in UN-supported programs and projects by using a two-track governance system. This means that Government rules are applied when the Government implements project activities and UN agency-specific rules are applied when a UN agency implements project activities.

 

It will be applied to projects and programs supported by the three UN ExCom agencies. It is expected that other UN agencies will consider the possibility of adopting the Guide over the coming years.