AG/RES. 1 (XXII-E/96)

REAPPROPRIATION OF FUNDS FOR TECHNICAL COOPERATION NOT OBLIGATED BY DECEMBER 31, 1995, AND RELATED MATTERS

(Resolution adopted at the first plenary session, held on January 29, 1996)

THE GENERAL ASSEMBLY,

HAVING SEEN:

Resolutions AG/RES. 1260 (XXIV-O/94), AG/RES. 1314 (XXV-O/95), and AG/RES. 1354 (XXV-O/95);

The recommendations that were approved by the Joint CEPCIES/CEPCIECC Working Group Charged with the Transition to CIDI (GTC) pursuant to resolution AG/RES. 1314 (XXV-O/95), set out in the document entitled "Definition of Mechanisms for the Transition Period to CIDI" (GTC/doc.9/95 of November 28, 1995); and

Resolution GTC/RES. 1/96, entitled "Establishment of a Temporary Special Multilateral Fund and Other Necessary Measures for the Transition to CIDI"; and

CONSIDERING:

That, upon the recommendation of the GTC, the Permanent Council has convened a special session of the General Assembly for a decision on the reappropriation of funds for technical cooperation not obligated as of December 31, 1995, in Chapters 4 and 5 of the Regular Fund and in the special multilateral funds (voluntary funds);

That by operative paragraph 3 of resolution AG/RES. 1314 (XXV-O/95), the General Assembly authorized the GTC to adopt "...those measures necessary to facilitate the entry into force of the Protocol of Amendments to the Charter related to the Inter-American Council for Integral Development (CIDI), with particular reference to ... [t]he Statutes; [t]he Rules of Procedure; [and] [t]he rules and regulations governing financing, programming, execution, and evaluation of the technical assistance programs"; and

That, pursuant to the authority granted it by the General Assembly under resolution AG/RES. 1314 (XXV-O/95), the GTC has adopted a resolution creating a Temporary Special Fund (FET) for the purpose of receiving and managing technical cooperation funds for that part of the transition period beginning with the entry into force of the Protocol of Managua and ending once CIDI becomes operational,

RESOLVES:

1. To authorize the reappropriation of technical cooperation funds not obligated as of December 31, 1995, in Chapters 4 and 5 of the Regular Fund and in the voluntary funds in order to:

a. Continue ongoing projects (national technical cooperation programs or national, plurinational, or multinational projects) that had unobligated balances as of December 31, 1995, thus enabling them to obligate resources by March 31, 1996.

Projects among those mentioned above that by June 30, 1996, have not been completed and still have resources (from the 1994-95 biennium) will be evaluated according to the criteria established in the Integrated Program Guidelines for the CIDI Transition Period. On the basis of that evaluation:

i. The projects that meet those criteria may continue using their unobligated balances from the 1994-95 biennium after June 30, 1996, and this will not preclude consideration of other sources of financing for their execution.

ii. The projects that do not meet those criteria will be terminated.

b. Execute during 1996 new projects that are proposed by the member states or the General Secretariat in accordance with the Integrated Program Guidelines for the CIDI Transition Period. Those projects must be approved by the GTC or, if applicable, by CIDI itself.

2. To reaffirm the GTC resolution creating a Temporary Special Fund (FET), entitled "Establishment of a Temporary Special Fund and Other Necessary Measures for the Transition to CIDI," attached hereto, and to authorize the transfer of the following resources to the FET: all resources in the Special Development Assistance Fund (SDAF); all resources in the Special Multilateral Fund of the Inter-American Council for Education, Science, and Culture (FEMCIECC) and its Regular Account, Mar del Plata Account (CMP), and Special Account for Culture (CEC), including their respective subfunds; all interest on those funds; and any sums resulting from deobligations in those funds that occur during the first half of 1996, as well as any funds in Chapter 4 and 5 not obligated in 1995.

3. The Statutes of the Special Development Assistance Fund (SDAF) and the Uniform Statute of the Special Multilateral Fund of the Inter-American Council for Education, Science, and Culture (FEMCIECC) and its Accounts are hereby repealed, except for the sole purpose of executing obligations for projects approved before December 31, 1995.

4. Upon the establishment of CIDI and the creation of a permanent special multilateral fund for CIDI, all funds available in the FET will be transferred to that permanent fund, and the FET and the rules and regulations governing its operations adopted by the GTC shall no longer be in force.

APPENDIX

GTC/RES. 1/96

ESTABLISHMENT OF A TEMPORARY SPECIAL MULTILATERAL FUND, AND OTHER NECESSARY MEASURES FOR THE TRANSITION TO CIDI

THE JOINT WORKING GROUP CEPCIES/CEPCIECC CHARGED WITH THE TRANSITION TO CIDI,

HAVING SEEN resolutions AG/RES. 1260 (XXIV-O/94), AG/RES. 1314 (XXV-O/95). AG/RES. 1354 (XXV-O/95), and the legal opinion by the Secretariat for Legal Affairs entitled "The Legal Advantages of Establishing a Temporary Special Fund for the Transition to CIDI as an Alternative to Maintaining FEMCIECC and FEAD Until a More Permanent Special Multilateral Fund for CIDI Can be Established, (January 22, 1996)";

CONSIDERING that by operative paragraph 3 of resolution AG/RES. 1314 (XXV-O/95), the General Assembly authorized the Joint Working Group to adopt "those measures necessary to facilitate the entry into force of the Protocol of Amendment to the Charter related to the Inter-American Council for Integral Development (CIDI), with particular reference to ... [t]he Statutes; [t]he Rules of Procedure; [and] [t]he rules and regulations governing financing, programming, execution, and evaluation of the technical assistance programs,"

RESOLVES:

1. To establish a temporary special multilateral fund to finance the cooperation activities of the member states during the period of transition to CIDI, and to call that fund the Temporary Special Fund for CIDI (FET).

2. To prepare, with the support of the General Secretariat, and adopt as soon as possible, the rules and regulations for governing FET's operations. Those rules and regulations shall be based on the following principles:

a. The FET shall have the following objectives:

i. To finance ongoing technical cooperation projects that had unobligated balances as of December 31, 1995, in accordance with the decisions of the General Assembly in its twenty-second special session;

ii. To finance new projects for Partnership for Development during 1996;

iii. To finance or cofinance other activities for Partnership for Development which have been previously approved by the General Assembly or which are to be agreed upon by the Joint Working Group.

b. The FET shall obtain its resources for the following sources:

i. All assets contained in the Special Development Assistance Fund (FEAD); all assets contained in the Special Multilateral Fund of the Inter-American Council for Education, Science, and Culture (FEMCIECC) and its Accounts: Regular, Mar del Plata Account (CMP), and the Special Account for Culture (CEC), including the respective subfunds of those Funds; all interest on those Funds; and any sums resulting from deobligations in those Funds that occur during the first semester of the Regular Fund not obligated until December 31, 1995.

ii. Contributions from countries for horizontal cooperation and for plurinational projects; and contributions from international organizations for the execution of joint projects; however, it shall not include the contributions to and the other resources of the Special Funds established individually by member states for horizontal cooperation; nor shall it include special funds established with special contributions made by the member states pursuant to Article 88 of the General Standards.

iii. Voluntary contributions pledged by the member states to the General Secretariat for programs in Partnership and Development;

iv. Income from interest on the funds in FET; and

v. Any other voluntary contribution or donation from member states, Permanent Observers, or other external funds for purposes consistent with the objectives of Partnership for Development.

c. The FET shall have a general account and such other accounts as may be approved by the Joint Working Group.

d. Until the Joint Working Group adopts an alternative provision on this matter a member state, in order to participate in new projects to be financed by the FET must have paid all its pledges for prior years and the project must first be approved by the Joint Working Group. If the project is to be financed with 1996 FET funds, a participating state must also have made a pledge to the corresponding account for 1996 and presented to the General Secretariat a calendar for payments in 1996.

e. For the purpose of determining the voluntary contributions to the FET, the amount for 1996 is established to correspond to the sum of the amounts specified in the voluntary funds which the General Secretariat communicated to the member states in 1995.

f. The distribution of the said funds shall be made in accordance with the criteria to be established in this respect by the Joint Working Group.

g. Upon the establishment of CIDI and the creation of a permanent special multilateral fund for CIDI, all the funds in FET will pass into that permanent fund, and the principles, rules, and regulations adopted by the Joint Working Group for FET's operations shall no longer be in force.

(AG00283.E)

AG00289.E(4)