UN - EU Guidelines for Financing Local Costs in Development Cooperation with Vietnam

Representatives of the Government of Vietnam, the United Nations in Vietnam and the Delegation of the European Union to Vietnam agreed to the updated UN - EU Guidelines for Financing of Local Costs in Development Cooperation with Vietnam - Version 2013, better known as UN - EU Cost Norms.

 

The single set of standardised rates in the UN - EU Cost Norms continues to be used by all national implementing partners and other counterparts in Vietnam for the local costs of ODA programmes and projects funded by UN agencies and EU member states’ missions in Vietnam.

 

Since its launch in 2009, the UN-EU Cost Norms have been recognised for the many positive results that have been achieved in terms of harmonising and reducing transaction costs for our implementing partners. The guidelines represent a tangible contribution to aid effectiveness agenda in line with Hanoi Core Statement and Vietnam Partnership Document on Aid Effectiveness and it is rightfully considered as an important tool to promote greater transparency and creating a basis for stronger alignment and harmonisation between Government, UN and development partners.

 

It is expected that this updated version will bring the benchmark for alignment of donor and government cost norms closer to current market rates and conditions.

The market oriented rates are to attract high quality human resources, services, and encourage full collaboration, yet flexible enough to accommodate different business models and project requirements. The rates will be reviewed periodically to reflect changes in market prices.

 

With immediate effect, implementing partners will be able to start using the updated Guidelines, which include remuneration for project staff, consultant rates, translation services, travel and meeting costs, and other related project expenses. Work plans of on-going projects would also be revised to accommodate the new costs, subject to current financial year budget availability.