AG/RES. 3 (XXVI-E/99)

AG/RES. 3 (XXVI-E/99)

INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT

(Adopted at the second plenary session, held on November 15, 1999,
and pending review by the Style Committee)

THE SPECIAL GENERAL ASSEMBLY,

HAVING SEEN:

Resolutions AG/RES. 1686 (XXIX-O/99), "Inter-American Agency for Cooperation and Development" and AG/RES. 1685 (XXIX-O/99), "Modernization of the OAS and Renewal of the Inter-American System";

The Report of the Chair of the Permanent Executive Committee of the Inter-American Council for Integral Development (CEPCIDI) and the recommendations of the Permanent Council on the establishment of the Inter-American Agency for Cooperation and Development (IACD), together with the Draft Statute of the IACD; Draft Amendments to the General Standards to Govern the Operations of the General Secretariat of the Organization of American States; Draft Amendments to the Statute of the Inter-American Council for Integral Development(CIDI); Draft Amendments to the Statute of the Special Multilateral Fund of the Inter-American Council for Integral Development(FEMCIDI); and Draft Amendments to Other Norms of the Organization (including the CIDI Rules of Procedure, the Rules of Procedure of CEPCIDI and the Nonpermanent Specialized Committees (CENPES));

CONSIDERING:

That by Resolution AG/RES 1686 (XXIX-O/99), the General Assembly adopted the recommendations of CIDI set forth in resolution CIDI/RES. 54 (IV-O/99) and approved the establishment of the IACD as a subsidiary body of CIDI, "subject to the adoption and entry into force of the Statute of the IACD and other pertinent instruments";

That by Resolution AG/RES. 1686 (XXIX-O/99), the General Assembly established a Special Subcommittee of the Permanent Executive Committee of CIDI to prepare the instruments relevant to the IACD, and instructed the Permanent Council to convene a special session of the General Assembly in 1999 to consider and approve the IACD Statute and amendments to the other norms of the Organization necessary for the functioning of the IACD;

That the Special Subcommittee of CEPCIDI completed its mandate under Resolution AG/RES. 1686, and its recommendations have been duly considered by CEPCIDI and the Permanent Council, in accordance with their respective areas of competence; and

That to ensure the proper functioning of the IACD, the Secretary General must transfer Program 49(M) (Department of Fellowships) to Chapter V of the Year 2000 Program-Budget together with such other programs and subprograms which are to be managed by the IACD as of January 1, 2000, but which were not included in Chapter V as initially adopted,

RESOLVES:

1. To approve the IACD Statute set out in Annex A; the Amendments to the CIDI Statute set out in Annex B; the Amendments to the General Standards to Govern the Operations of the General Secretariat of the Organization of American States set out in Annex C; the Amendments to the FEMCIDI Statute set out in Annex D, and the Amendments to Other Rules and Regulations of the Organization set out in Annex E.

2. To establish that the instruments mentioned in the previous operative paragraph shall enter into force as of January 1, 2000.

3. To authorize, on an exceptional basis, that the first election of the IACD Management Board be held at a special meeting of CEPCIDI, in accordance with the procedures that CEPCIDI establishes for this election.

4. To instruct CEPCIDI to: (a) perform the functions of the Management Board until the election of the members of the Management Board by CEPCIDI; (b) to convoke the first meeting of the Management Board following the Board’s election; and (c) to adopt temporary rules of procedure to govern the Board’s meetings until permanent rules are adopted in accordance with Article 20 of the IACD Statute.

5. To request the Secretary General, in accordance with Article 113 of the Charter of the Organization of American States, to designate the Executive Secretary for Integral Development as Acting Director General of the IACD until such time as the process set out for the selection of the Director General in the instruments approved under this Resolution is completed.

6. To instruct the Secretary General to transfer Program 49(M) (Department of Fellowships) to Chapter V of the Year 2000 Program-Budget together with any other programs and subprograms, or parts thereof, which were not included in Chapter V when initially approved and which correspond to the IACD as of January 1, 2000. The Secretary General shall make those transfers within the first two weeks of January 2000, and he shall inform the Permanent Council of those transfers by February 1, 2000.

7. To instruct the Secretary General (i) to take the necessary measures to guarantee that the IACD receives from the management areas of the General Secretariat of the Organization the means necessary to enable it to attain, by December 31, 2000, the administrative and financial capacity to operate and to administer all the resources entrusted to it, in accordance with the norms approved in this Resolution; and (ii) to submit quarterly progress reports, on the measures adopted, to the Permanent Council, CEPCIDI, and the IACD Management Board accordingly.

ANNEX A

STATUTES OF THE INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT

CHAPTER I

NATURE AND PURPOSE

Article 1

Nature

The Inter-American Agency for Cooperation and Development (IACD) is a subsidiary organ of the Inter-American Council for Integral Development (CIDI) created pursuant to Articles 53, 54.a, 77, 93, and 95.c of the Charter and Articles 5 and 16 of the CIDI Statutes.

Article 2

Purpose

The purpose of the IACD is to promote, coordinate, manage, and facilitate the planning and execution of programs, projects, and activities (hereinafter "partnership for development activities"), within the scope of the OAS Charter and, in particular, the framework of the Strategic Plan for Partnership for Development of CIDI (hereinafter "Strategic Plan").

CHAPTER II

FUNCTIONS AND SCOPE OF AUTHORITY

Article 3

Functions

The IACD shall have the following functions:

The administration, evaluation and supervision of the partnership for development activities established within the framework of the CIDI Strategic Plan and its Inter-American Programs approved by CIDI.

The administration and supervision of the fellowship, scholarship and training programs of the OAS.

The development and establishment of cooperative relations with Permanent Observers, other states, and national and international organizations, regarding partnership for development activities.

Manage and account for the resources of FEMCIDI and other funds raised by and entrusted to the IACD.

The mobilization of financial, technical, and other resources in order to strengthen partnership for development activities.

The approval, in accordance with Article 9 of these Statutes and of the program and policy guidelines approved by CIDI and CEPCIDI, of the method of implementation of partnership for development activities and the determination of their level of financing, endeavouring to target the most pressing needs of the Member States, especially the relatively less developed countries and those with the smaller economies.

Article 4

Scope of Authority

The IACD shall exercise its authority within the framework of the OAS Charter, in particular Article 95.c; the Strategic Plan of CIDI; the CIDI Statutes; these Statutes; the FEMCIDI Statutes; the applicable provisions of the General Standards that Govern the Operations of the General Secretariat; and other guidelines and directives adopted by the General Assembly, CIDI, or CEPCIDI.

The IACD is responsible to CIDI and to CEPCIDI when CIDI is not in session.

In the event IACD exceeds its authority under this Article, CEPCIDI may take any action it deems appropriate, including directing IACD to reconsider such action.

CHAPTER III

STRUCTURE

Article 5

Structure

The IACD shall have the following structure:

The Management Board;

The Executive Secretariat for Integral Development.

Article 6

The Management Board

The Management Board is the representative body of the Member States established to promote greater efficiency in the management of partnership for development activities and strengthen the Organization’s capacity to benefit from expertise in development cooperation and to attract contributions of technical support and other resources from Member States, other states, and public and private organizations.

Article 7

Membership of the Management Board

The Management Board shall consist of nine Member States of the Organization of American States elected by CIDI, observing, in accordance with the provisions of Article 77 of the Charter, the criteria of rotation and equitable geographic representation and guaranteeing that no Member State shall be excluded from the opportunity for election to the Board and that every region shall have the opportunity to be at all times represented.

The members of the Management Board shall serve for a term of two years. The election shall be held annually at the Regular Meeting of CIDI and shall be arranged so that in the year after the first election four vacancies and in the subsequent year five vacancies shall occur, alternating annually thereafter. CIDI shall establish the procedures governing the conduct and timing of elections and method of determining the initial vacancies.

Each Member State elected to the Management Board shall designate an official representative who preferably should have recognized experience and expertise in matters pertaining to cooperation and development programs and related activities. Such Member State may also designate Management Board alternate representatives and advisors.

The Chair of CEPCIDI shall serve ex officio as a non-voting member of the Management Board.

Article 8

Participation in Board Meetings

Each State on the Management Board shall accredit its representatives by means of a communication from its Permanent Mission addressed to the Secretary General of the Organization.

Each member of the Board shall have the right to one vote.

Each Member State shall bear the cost of participation of its representatives on the Board.

The Management Board shall permit, in accordance with its Rules of Procedure, as approved by CIDI, attendance and participation, without the right to vote, in the Board’s meetings and activities by Member States which are not on the Management Board and, as appropriate, by Permanent Observers and other states and international organizations that have demonstrated substantial support for and commitment to technical cooperation and development programs and activities of the Organization of American States.

Article 9

Functions of the Management Board

The Management Board shall:

Oversee, analyze and evaluate the implementation of partnership for development activities in accordance with program and policy guidelines approved by CIDI and CEPCIDI;

Provide operational guidance to the Executive Secretariat for Integral Development for implementing, monitoring, and evaluating partnership for development projects within the program and policy guidelines established by CIDI and CEPCIDI;

Determine the execution and the level of financing of partnership for development activities in accordance with the FEMCIDI Statutes and recommendations made by the CENPES;

Issue strategies and guidelines for raising additional funds to finance partnership for development activities;

Recommend for approval by CIDI or CEPCIDI, as appropriate, general guidelines for the allocation of resources mobilized by the IACD, which have not had purposes and limitations defined by the donor;

Oversee the management of all resources entrusted to the IACD and inform CEPCIDI in this regard when requested;

Authorize the establishment of sectoral sub-accounts of FEMCIDI, as appropriate, within the framework of the priorities of the Strategic Plan, in accordance with Article 9 of the FEMCIDI Statutes;

Approve guidelines for the establishment of specific and trust funds associated with the objectives and activities of the IACD and the allocation of such funds in accordance with agreements reached with donors;

Adopt guidelines for the establishment by IACD of arrangements with banks and other financial institutions for the management of the IACD’s financial resources;

Submit to CEPCIDI for its consideration the proposed annual budget of the IACD on the basis of the policies and priorities determined by CEPCIDI;

Propose to CEPCIDI amendments to the rules and regulations relating to the personnel, budget, operations, and administration of the IACD for its consideration as appropriate or for referral to the competent organs;

Approve, within the framework of policies established by CIDI and CEPCIDI and for the purposes of enhancing resources, guidelines for the IACD to foster cooperative relations with Permanent Observers, other states, national and international organizations, and other entities and persons;

Report on the activities of the IACD at least semi-annually to CEPCIDI and, as appropriate, to other entities and persons.

Article 10

The Executive Secretariat for Integral Development

The Executive Secretariat for Integral Development (SEDI), a dependency of the General Secretariat, shall serve as the Executive Secretariat of the IACD and shall be identified in the IACD’s rules, regulations, and official documents as the "Executive Secretariat for Integral Development."

Article 11

Functions of the Executive Secretariat for Integral Development

The Executive Secretariat for Integral Development shall:

Support Member States in strengthening partnership for development in the exchange of experiences, joint action, mutual support, and coordination among agencies responsible for cooperation for development of the Member States as well as among public and private institutions in the Member States. To this end, it shall:

Conduct a preliminary evaluation of all requests for cooperation activities submitted.

Prepare the Proposal for Programming Partnership for Development Activities (hereinafter "Programming Proposal") taking into account the guidelines on cooperation that are established in the Strategic Plan.

Conduct an evaluation of results of implementation of projects and activities for inclusion in the reports to the Management Board.

Formulate, promote, and implement initiatives and cooperation agreements with development and cooperation entities and public and private entities of Member States, Permanent Observers, and other states, as well as international organizations, regional and international cooperation agencies and financial institutions and other entities in order to:

Facilitate fundraising and mobilization of human, technical, and financial Resources.

Promote horizontal cooperation, as a significant aspect of partnership for development activities, through improved coordination and establishment of the necessary mechanisms.

Promote development of human resources by means of scholarship and training programs, professional and academic exchanges, various forms of distance education, and other similar activities.

Promote the exchange of experiences and specialized knowledge, identify resources, and coordinate offers and requests for cooperation, by compiling, processing, and disseminating information to facilitate and encourage joint action and related technology transfers.

Provide, upon their request, support to the institutions of the Member States, especially the relatively less developed countries and those with smaller economies, to identify, formulate, and facilitate the execution and coordination of projects and activities financed by FEMCIDI.

Develop activities and manage projects to be financed by resources raised by or entrusted to the IACD.

Provide specific support to the institutions of Member States, upon their request with resources provided for this purpose, to facilitate the formulation, management, and evaluation of projects and activities financed with resources other than FEMCIDI.

Manage and authorize the obligation and disbursement of resources from FEMCIDI, the specific funds, and other resources entrusted to the IACD, in accordance with applicable regulations and agreements.

Report regularly to the Management Board, CEPCIDI, and, as appropriate, to contributors of resources on the status of projects and activities, the results achieved in their execution, fundraising, and the status of funds and other resources entrusted to the IACD.

Support CIDI and CEPCIDI in the formulation, updating, and evaluation of the Strategic Plan and the Inter-American Programs.

Recommend to the Management Board amendments to the rules and regulations relating to the personnel, budget, operations, and administration of the IACD.

Provide the support services necessary for the proper functioning of the Management Board.

Submit to the Management Board for its consideration the proposed annual budget of the IACD on the basis of the policies and priorities determined by CEPCIDI.

Coordinate the support of the Units, Offices and other dependencies of the Organization in order to carry out the functions of the IACD.

Perform any other functions assigned to it by CIDI, CEPCIDI, or the Management Board.

Article 12

Director General of the IACD

The Executive Secretary for Integral Development, appointed by the Secretary General in accordance with Articles 117 and 120 of the Charter taking into account the recommendations of the Management Board, shall be designated Director General of the IACD, and the position shall be referred to hereinafter as Director General.

The term of office of the Director General is four years and may be renewable once, upon consultation with the Management Board and upon CIDI's approval. Notwithstanding the four-year term, the appointment shall be a position of trust under Articles 17(c) and 20 of the General Standards; however, the Director General may be removed from office for cause either by a two-thirds vote of CEPCIDI or by the Secretary General, in consultation with the Management Board.

The Director General shall be a person of recognized ability in, inter alia, cooperation programs, development, project administration, financial management and, particularly, in fundraising.

Article 13

Functions of the Director General

The Director General shall:

Direct the Executive Secretariat in the performance of its functions under the OAS Charter, the CIDI Statutes, the Statutes of the IACD, and other applicable rules and regulations of the Organization.

Perform the technical, operational, and administrative activities that the Management Board and Secretary General entrust to the Director General within the framework of the rules and standards of the Organization and the policy guidelines established by CIDI and CEPCIDI, in accordance with their respective areas of competence;

Report on IACD financing, operations, partnership for development activities, and other matters to the Management Board, CIDI, CEPCIDI, and the Secretary General.

Participate with voice but without vote in meetings of the IACD Management Board, CIDI, and CEPCIDI, and in other CIDI activities.

Direct the execution of strategies to mobilize financial, technical, and other resources within the framework of guidelines approved by the Management Board and, to that end, subject to the appropriate delegation of authority from the Secretary General, enter into appropriate cooperation agreements.

Appoint the personnel of the IACD, subject to the appropriate delegation of authority from the Secretary General, taking into account Article 113 of the Charter.

Represent the IACD in executing the pertinent functions set forth in these Statutes.

Direct the coordination of the support of the Units, Offices and other dependencies of the Organization necessary to carry out the functions of the IACD.

Article 14

Resources

The resources to finance the partnership for development activities are grouped in the following funds: the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI); specific funds; trust funds; and the Regular Fund of the Organization, as applicable. All FEMCIDI resources shall continue to constitute part of the program-budget of the Organization that is approved each year by the General Assembly.

The IACD shall also manage the other resources it mobilizes or that are entrusted to it.

The General Secretariat shall establish the IACD Fund for Operations to finance the supervisory, administrative, and related overhead expenses of the Executive Secretariat. That Fund shall be administered exclusively by the Executive Secretariat and shall contain:

A transfer from the Regular Fund of the entire amount of Chapter V of the OAS program-budget, excluding (i) the amount assigned to Object 3 (Fellowships) under that Chapter, and (ii) the amounts expended directly by the Secretariat for Management for salaries, emoluments, and any other payments owed to the staff of the Executive Secretariat. This transfer shall be made on a quarterly basis, in proportion to the percentage of budgeted regular fund income received by the General Secretariat.

The contributions for administrative support and technical supervision from the Specific Funds and Trust Funds administered by the IACD;

Interest income earned by this Fund; and

Other miscellaneous income received by the IACD or by the General Secretariat for the IACD.

Nothing in this provision shall be construed to prevent the financing of temporary personnel on contracts for limited time with FEMCIDI resources under Article 11 of the FEMCIDI Statutes, or the financing of personnel with Specific Funds and Trust Funds, to the extent permitted under the terms governing those Funds. (AGREED)

The General Secretariat shall establish an IACD Fellowships, Scholarships, and Training Programs Fund.

CHAPTER IV

GENERAL PROVISIONS

Article 15

Languages and Documents

The official languages of the IACD shall be English, French, Portuguese, and Spanish.

The Management Board shall have two working languages, which shall be determined by the Board. For the regular meetings of the Management Board, working documents shall be available in the working languages, and interpretation in those two languages shall be available; however, the Member States of the Organization may present their written proposals in any of the official languages of the IACD.

The reports, rules of procedure, and decisions of the Management Board, and any other official IACD documents issued in final form shall be distributed in the official languages of the IACD. All other IACD documents may be distributed in the working languages.

Article 16

Costs of Support Services to the Management Board and

Executive Secretariat Personnel

The costs of the Executive Secretariat’s infrastructure and personnel, conference services, and logistical support to the Management Board shall be covered by the General Secretariat, in accordance with the pertinent provisions of the FEMCIDI Statutes.

Article 17

Support by Offices of the General Secretariat in the Member States

The IACD shall draw upon the services provided by the offices of the General Secretariat in the Member States, where they exist, in accordance with existing regulations.

Article 18

Fellowship, Scholarship, and Training Program

The IACD, through the Executive Secretariat for Integral Development, shall manage and administer the Fellowship, Scholarship, and Training Program under standards governing the program and in accordance with policies and priorities adopted by CEPCIDI and with other applicable regulations, and shall report thereon to CEPCIDI.

The Regular Fund shall continue to finance the Fellowship, Scholarship, and Training Program. The Executive Secretariat shall nevertheless develop a strategy to mobilize resources to strengthen the Fellowship, Scholarship, and Training Program, taking into account inter alia the Capital Fund for OAS Fellowship and Training Programs, with a view to making the program financially and fully self-sustaining.

Article 19

Review

CIDI, no later than four years after the entry into force of these Statutes, and on a regular basis thereafter, shall conduct a comprehensive review of the functioning, operations, and financing of the IACD and shall present its recommendations thereon to the General Assembly.

Article 20

Rules of Procedure

The Management Board shall formulate its Rules of Procedure, which shall be submitted to CIDI, through CEPCIDI, for its approval.

Article 21

Amendments

These Statutes may be amended by the General Assembly, either at its own initiative or at the request of CIDI.

Article 22

Entry into Force

The present Statutes shall enter into force on the date on which they are approved by the General Assembly.

ANNEX B

MODIFICATIONS TO THE STATUTES OF THE INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT

Modify Article 3(g), regarding the Inter-American Council for Integral Development ‘s (CIDI) functions and powers, as follows:

g) Adopt the policies and general guidelines which the Management Board of the Inter-American Agency for Cooperation and Development ("IACD") and the Executive Secretariat for Integral Development should follow in carrying out the IACD’s cooperation activities.

Add to Article 3, regarding the functions and powers of CIDI, new sections j, k, and l which states:

j) Elect the members of the Management Board of the IACD.

k) Adopt criteria for the allocation of additional resources mobilized by the IACD, which have not had purposes and limitations defined by the donor.

l) Approve the Rules of Procedure of the IACD’s Management Board and modifications thereto.

Modify Article 5, regarding the "Bodies of CIDI," by inserting a new section (b) which states:

b) The Inter-American Agency for Cooperation and Development ("IACD").

Modify Article 8, "Functions of CEPCIDI," as follows:

CEPCIDI shall have the following functions:

a) When CIDI is not in session, to:

i. Adopt the policies and general guidelines which the IACD’s Management Board and the Executive Secretariat for Integral Development should follow in carrying out the IACD’s cooperation activities;

ii. Coordinate the activities of the other subsidiary bodies of CIDI;

iii. Receive the reports and recommendations of all other subsidiary bodies of CIDI for transmittal to that body accompanied, when appropriate, by its observations and recommendations thereon;

iv. Adopt ad referendum of CIDI those administrative, budgetary, and regulatory measures that would normally require a decision by CIDI, but that by virtue of their urgency, cannot be delayed;

v. Adopt criteria for the allocation of additional resources mobilized by the IACD, which have not had purposes and limitations defined by the donor.

vi. Authorize extraordinary budgetary appropriations against FEMCIDI to deal with unforeseen situations or activities, and determine the source of the necessary resources, in accordance with Article 95 of the General Standards.

b) To analyze the reports on the execution of cooperation activities presented by the IACD and other organs entrusted with project execution-related responsibilities, with a view to submitting a report to CIDI.

c) To carry out mandates received from CIDI, follow-up on the decisions and recommendations CIDI adopts, and carry out the functions assigned to it under CIDI’s Rules of Procedure and its own Rules of Procedure.

d) To propose to CIDI the creation of subsidiary bodies, organs, and agencies for the development of hemispheric cooperation in accordance with the provisions of these Statutes;

e) To create its subsidiary bodies;

f) To instruct the General Secretariat and the Executive Secretariat for Integral Development (the "Executive Secretariat" or "SEDI") concerning the execution of tasks and support activities for the fulfillment of the mandates and functions assigned to CEPCIDI;

g) To approve guidelines, policies, and priorities, on its own initiative or as recommended by the IADC, for the preparation, adoption, and execution of the program budget of the IACD.

h) To consider and, as appropriate, approve the proposed annual budget of the IACD based on the proposal of the Management Board.

i) To consider and submit to CIDI for its approval the Rules of Procedure of the IACD’s Management Board and amendments thereto.

j) To approve or refer to other organs, as appropriate, proposals from the IACD to amend the rules and regulations relating to the personnel, budget, operations, and administration of the IACD, including the referral of such proposals to other competent organs.

5. Insert a new Article 11, which shall state:

Article 11. The Inter-American Agency for Cooperation and Development ("IACD").

The IACD is the subsidiary organ of CIDI created to promote, coordinate, manage, and facilitate the planning and execution of programs, projects, and activities within the scope of the OAS Charter and, in particular, the framework of the Strategic Plan for Partnership for Development of CIDI. It includes a Management Board and the Executive Secretariat for Integral Development.

6. Insert a new Article 12, which states:

Article 12. Functions of the IACD.

The specific functions of the IACD, its Management Board, and the Executive Secretariat for Integral Development are set out in the IACD Statute.

7. Modify Article 12 on the CENPES’ Functions as follows:

Article 12. Functions of the CENPES.

Within their respective areas of competence, these Committees shall have the following functions:

a) Assist CIDI in the formulation of sector policies and programs of the Strategic Plan.

b) Coordinate and examine the proposals for cooperation programs, projects and activities to be financed by FEMCIDI and submit them with their recommendations to the Executive Secretariat for consideration by the IACD Management Board.

c) Periodically study the execution of cooperation activities and their results and present to the IACD Management Board those recommendations it considers pertinent.

d) Support within its area of competence, the preparation of the meetings of CIDI, CEPCIDI, and the IACD.

e) Fulfill the specific mandates that CIDI, CEPCIDI and the IACD Management Board assign, and report to them in this regard.

8. Modify Articles 20 - 23, on the functions and responsibilities of the Executive Secretariat for Integral Development, by combining the pertinent provisions into one new Article, as follows:

Article 20. Functions and Responsibilities of the Executive Secretariat for Integral Development

The Executive Secretariat for Integral Development shall have those functions and responsibilities stated in the IACD Statutes. In addition the Executive Secretariat for Integral Development shall:

a) Support CIDI and its bodies in managing and coordinating the participation of other inter-American and international agencies, as well as cooperation agencies of member and permanent observer states, in cooperation activities.

b) Coordinate, through mechanisms established by the Secretary General, the cooperation activities that the Organization carries out through all its components.

c) Be accountable to CIDI and the IACD Management Board for the execution and coordination of cooperation activities supported by the OAS within the framework of the Council, for the use of resources allocated by the Member States for their execution and for their progress and results.

9. Modify Article 24(e), regarding "Regular Meetings of CIDI," as follows:

e) Entrust CEPCIDI, the IACD, and the General Secretariat, as the case may be, with fulfilling the mandates and carrying out the activities that CIDI finds appropriate;

ANNEX C

MODIFICATIONS TO THE GENERAL STANDARDS TO GOVERN THE OPERATIONS OF THE GENERAL SECRETARIAT

(FOR THE ESTABLISHMENT OF THE INTER-AMERICAN AGENCY FOR COOPERATION AND DEVELOPMENT)

1. Modify Article 13(b), regarding the powers of the Secretary General, to state:

b. To appoint the Executive Secretary for Integral Development with the approval of the Inter-American Council for Integral Development ("CIDI") and taking into account the recommendations of the Management Board of the Inter-American Agency for Cooperation and Development ("IACD").

2. Modify Article 20(a), regarding trust personnel, as follows:

a. The following shall be considered positions of trust: the Executive Secretary for Integral Development designated Director General of the IACD, as well as the Assistant Secretaries, the advisors to the Secretary General and to the Assistant Secretary General, and the directors and deputy directors of such departments as the Secretary General may determine.

3. Add to Article 20(d), regarding trust personnel, the following:

d. Unlike other positions of trust under this article, the appointment to the position of Executive Secretary for Integral Development (the Director General of the IACD) shall be for a term of four years, renewable once for a period of up to four years and terminable only for cause, as provided under Article 12 of the IACD Statutes. Cause shall include insubordination, failure to observe the rules and regulations of the General Secretariat and of the IACD, failure to perform assigned functions to the satisfaction of the Management Board, and such other causes as are stated in these General Standards and the Staff Rules. Such termination shall not require the convocation of a disciplinary committee under Article 52 of the General Standards and the corresponding Staff Rules.

4. Modify the present last paragraph of Article 36 as follows, and then add the new proposed paragraph which follows thereafter:

The basic salary on the dependency scales for the Assistant Secretary General and the Assistant Secretaries shall be computed on July 1, 1995, by deducing from the June 30, 1995 OAS remuneration for those positions (basic salary plus COLA and 2 percent transition payment) the corresponding UN post adjustment factors for Washington, D.C. Basic salaries for those positions on the "without dependent" scales shall be 90.3 percent of the basic salaries on the dependency scales for those positions. Subsequent increases in basic salary shall correspond with the decisions of the United Nations to incorporate post adjustment factors into basic salary for all professional level members, and the post adjustment factors for Washington, D.C, shall apply to those basic salaries.

Upon consultation with the Management Board of the IACD, and as provided under applicable budgetary provisions, the Secretary General shall establish the basic salary of the Executive Secretary for Integral Development (the Director General of the IACD). The basic salary so established shall be based on conditions applicable to comparable positions in other international organizations, but shall not be equal to or more than the basic salary of the Assistant Secretary General. It shall also incorporate the post adjustment factors for Washington, D. C. applicable to all staff members in the professional category.

In addition to the basic salary and other benefits established in these Standards and the other rules and regulations of the General Secretariat for professional staff, the Secretary General, in consultation with the Management Board, may provide the Executive Secretary for Integral Development (Director General of the IACD) with additional emoluments, in accordance with the availability of the resources of the IACD.

5. Modify Article 68 as follows:

Article 68. Specific Funds.

The Secretary General may establish specific funds in separate accounts. The purposes and limitations of these funds shall be defined in precise terms in accordance with the instruments establishing them, and the Permanent Council, CEPCIDI, IACD, or such other organ or entity of the Organization having an interest in the disposition of those funds, as the case may be, shall be advised thereof.

Specific funds are made up of special contributions, including those received without purposes and limitations specified by the donor, from Member States and Permanent Observer States of the Organization and from other Member States of the United Nations, as well as from individuals or public or private institutions, whether national or international for the execution and or strengthening of development cooperation activities or programs of the General Secretariat and other organs and entities of the Organization in accordance with agreements and contracts entered into by the General Secretariat in exercise of the powers conferred under the Charter.

6. Modify the first paragraph of Article 69 on trust funds as follows:

Article 69. Trust Funds.

The Secretary General may establish trust funds in separate accounts for the purposes and limitations of which shall be defined in precise terms in accordance with the respective instrument establishing them, and the Permanent Council, CEPCIDI, IACD, or such other organ or entity of the Organization having an interest in the disposition of those funds, as the case may be, shall be advised thereof.

7. Modify Article 72, on bank interest, as follows:

Article 72. Banking deposits and interest.

The following provisions shall govern the designation of banking institutions and the crediting of interest to funds administered by the General Secretariat:

d. The Secretary General shall designate the banking institutions in which the funds of the Organization and those entrusted to it shall be deposited. Regarding the designation of banking institutions for deposit of funds administered under the FEMCIDI Statutes by the IACD, the Secretary General shall take into account guidelines established by the IACD Management Board.

e. Interest earned by the Regular Fund shall be credited to that Fund, and interest earned by FEMCIDI shall be credited to FEMCIDI.

f. Interest earned by each Specific Fund or Trust Fund established under Articles 68 and 69 of these General Standards shall be credited to that Fund; however, for each Specific Fund and Trust Fund for which the donor has not otherwise provided for the corresponding overhead for administrative support and technical supervision of the activities financed by that Fund, the interest earned shall be credited to the Regular Fund or to the IACD Fund for Operations established in the IACD Statutes, as the case may be, in the amount necessary to cover those costs.

g. The annual Financial Report of the General Secretariat to the Permanent Council shall state how the interest from each Specific Fund has been credited, and the regular reports provided by the Executive Secretariat for Integral Development to the IACD Management Board and to CEPCIDI in accordance with the IACD Statutes shall state how the interest from each Specific Fund administered by the IACD has been credited.

8. Modify Article 73, on the investment of funds, as follows:

Article 73. Investment of funds.

The Secretary General shall invest the funds of the Organization that are not essential to meet immediate disbursement needs, and he shall give an accounting thereof to the General Assembly. Regarding the investment of funds administered under the IACD Statutes by the Executive Secretariat for Integral Development, the Secretary General shall take into account guidelines established by the IACD Management Board, and information on those investments shall be included in the regular reports of the Executive Secretariat for Integral Development to the IACD Management Board and to CEPCIDI.

9. Modify Article 74, regarding contributions to the Regular Fund for Technical and Administrative Support, as follows:

Article 74. Contributions for technical supervision and administrative support

The following provisions shall govern contributions for technical supervision and administrative support to the Regular Fund and to the IACD Fund for Operations.

a. Contributions to the Regular Fund for the cost of technical supervision and administrative support to the programs shall be made by FEMCIDI. The contribution shall be up to 15 percent and the basis for its calculation will be the total net amount of the programs.

b. When the appropriations financed by deobligations of funds of previous years are approved, they shall not be subject to the contribution for technical supervision and administrative support. At the end of each budgetary execution, the General Secretariat shall present a statement of de-obligated resources that have been subject to a deduction from the percentage for supervision and support, which will be transferred to the reserves of the respective fund. On the basis of that information, the Secretariat will inform the administrator of the respective fund the amount at which those deductions shall begin.

c. Specific Funds and Trust Funds administered by the IACD shall make a contribution to the IACD’s Fund for Operations to cover technical supervision and administrative support provided for the activities financed by those Funds. The contribution shall be negotiated by the Executive Secretariat for Integral Development.

d. All other Specific Funds and Trust Funds shall make a contribution to the Regular Fund to cover technical supervision and administrative support provided for the activities financed by those Funds. The contribution shall be negotiated by the General Secretariat.

e. During Budget execution, periodic deductions shall be made based on the amount of obligations of FEMCIDI, of the Specific Funds, and of the Trust Funds, in accordance with the established levels and those deductions, shall be paid to the Regular Fund, or to the IACD’s Fund for Operations, as the case may be.

f. The following funds shall be exempt from the requirements under this article: (i) Funds amounting to less than $100,000 for the fiscal period; (ii) FONDEM; (iii) Specific Funds and Trust Funds administered by the IACD and designated by CEPCIDI as Humanitarian Funds; and (iv) All other Specific Funds and Trust Funds administered by the General Secretariat and designated as Humanitarian Funds by the Permanent Council.

ANNEX D

MODIFICATIONS TO THE STATUTES OF THE SPECIAL MULTILATERAL FUND OF CIDI - (FEMCIDI)

1. Modify Article 5, on interest, as follows:

Interest accrued on the funds covered by this Statute shall be considered income of the corresponding fund and governed by the pertinent provisions of the General Standards.

2. Modify the last sentence of Article 9 of the FEMCIDI Statutes:

The Management Board of the Inter-American Agency for Cooperation and Development ("IACD") may establish sectoral sub-accounts in thematic areas covered by the Strategic Plan.

3. Modify Article 10 as follows:

Article 10. FEMCIDI resources shall finance:

Technical meetings, seminars, and workshops which contribute to the inter-American Dialogue and the partnership for development;

Partnership for development activities carried out under the Strategic Plan;

A contribution for technical supervision and administrative support of up to fifteen percent of the total net amount of programs funded by FEMCIDI for the fiscal period.

Special appropriations, expressly authorized by CEPCIDI, to deal with situations or activities unforeseen in the programming of partnership for the development activities.

4. Modify Article 17 as follows:

Article 17

The partnership for development activities financed by FEMCIDI shall be regulated by a Programming Obligation and Execution Schedule with the following deadlines.

a. Voluntary contribution pledges to FEMCIDI shall be made from January 1 to July 15.

b. Voluntary contributions shall be paid to FEMCIDI from January 1 to September 15.

c. Proposals for partnership for development activities shall be submitted to the Executive Secretariat from January 1 to July 15.

d. The preparation by the Executive Secretariat of a Proposal for Programming Partnership for Development Activities ("Programming Proposal") shall be carried out between July 16 to August 15 in terms specified in Article 18 of these Statutes.

e. CENPES shall have from August 16 to September 30 to analyze and evaluate the Programming Proposal.

f. The IACD Management Board shall have from October 1 to 30 to approve the Integral Programming for Partnership for Development Activities.

g. The Executive Secretariat shall have from November 1 to 30 to authorize obligations.

h. Disbursements for implementation of partnership for development activities shall be made during the first ten working days of January.

i. The status of project implementation shall be monitored during the life of the project.

This Schedule may be amended by the IACD Management Board, in accordance with its regulations. The IACD Management Board shall notify CEPCIDI of its decision to make any such change within five working days following the date of that decision.

5. Modify Article 19 as follows:

Article 19

Member States shall submit their proposals for partnership for development activities to be financed with FEMCIDI resources under Chapter II of this Statute to the Executive Secretariat through their Permanent Missions.

6. Modify Article 21 as follows:

Article 21

The Nonpermanent Specialized Committees (CENPES) shall analyze the proposed activities and shall submit to the IACD, through the Executive Secretariat, a report giving their recommendations on the Programming Proposal. The IACD Management Board will immediately thereafter submit a copy of that report to the Member States and to the Chair of CEPCIDI. When preparing its recommendations on the use of the resources of the Sectoral Accounts, the CENPES will take into account which countries contributed to those accounts.

7. Modify Article 22 as follows:

Article 22

The IACD Management Board shall approve the Programming Proposal on an annual basis. It shall reflect an adequate balance in allocating available resources, endeavouring to target the most pressing needs of the Member States, especially the relatively less developed countries and those with the smaller economies.

8. Modify Article 23 as follows:

Article 23

Obligations for partnership for development activities made before December 31 on the basis of Article 17 g), shall remain available to be spent before December 31 of the following year. Any obligations made during the executing year must be structured so as to be expended by December 31 of that same executing year, on which date the obligation expires.

Any funds unexpended after the execution period referred to in the preceding paragraph shall lapse into the sectoral account from which they came and shall be made available for reprogramming.

A decision may be made to extend partnership for development activities beyond one year depending on the partial results achieved in implementing them and on the availability of resources in the pertinent sectoral account. It shall be the responsibility of CENPES to recommend an extension of the term of implementation of partnership for development activities.

It will be the responsibility of CENPES to evaluate, in accordance with the criteria established by CEPCIDI itself, the progress of multiyear projects and to recommend to the Management Board whether funding for the subsequent year should be obligated. Such projects which are positively evaluated and recommended by CENPES have priority over new project proposals.

9. In the first paragraph of Article 24, change the reference to Article 87 of the General Standards to Article 68. Then modify the second paragraph as follows:

Article 24

The purposes and limitations of these funds shall be defined in precise terms in accordance with the corresponding instruments establishing them, and CEPCIDI and the IACD Management Board shall be informed thereof.

10. Add a new section d to Article 25 on the Capital Formation Fund:

For fellowship, scholarship, and training programs.

11. In the first paragraph of Article 26, change the reference to Article 87 of the General Standards to Article 69. Then modify the second paragraph as follows:

The purposes and limitations of these funds shall be defined in precise terms in accordance with the corresponding instruments establishing them, and CEPCIDI and the IACD Management Board shall be informed thereof.

12. Modify Article 28 as follows:

Based on Article 66 of the General Standards, the Regular Fund shall be used to finance the following, as authorized in the Organization’s Program-Budget:

a. Regular, special, sectoral or specialized meetings of CIDI, at the ministerial level or the equivalent;

b. Meetings of CEPCIDI and its subsidiary bodies, meetings of the Non Permanent Specialized Committees, and those of the Inter-American Committees and other CIDI bodies and agencies, Meetings of the IACD Management Board, and Programming Meetings;

c. A contribution to support the operation of the Executive Secretariat;

d. Technical supervision and administrative support of programs;

e. Multilateral integral development programs, as established in Article 31 of the Charter and as specifically identified in the approved Program Budget.

f. Fellowships, scholarships, and training programs.

13. Modify Article 29 as follows:

Article 29

Contributions to the Regular Fund and to the IACD Fund for Operations established in Article 14 of the IACD Statutes for technical supervision and administrative support shall be made in accordance with the terms established in the General Standards.

14. Modify Article 30 as follows:

Article 30

The Executive Secretariat is responsible to CIDI, CEPCIDI, the IACD Management Board, and the Secretary General for applying these Statutes, on the basis of the functions and responsibilities assigned to it under the Statutes of the Inter-American Council for Integral Development (CIDI) and under the IACD Statute.

15 Modify Article 32 as follows:

Article 32

These Statutes may be amended by CIDI at its regular meetings observing the necessary coherence with the General Standards, the CIDI Statutes, and the IACD Statutes. The IACD Management Board may modify the Programming, Obligation and Execution Schedule of Partnership for Development Activities in the way that is established in Article 17.

Amendments to the Statutes may be proposed by the CEPCIDI, IACD Management Board, the Secretary General, or the Executive Secretary for Integral Development.

ANNEX E

OTHER MODIFICATIONS TO RULES AND REGULATIONS

I. PROPOSED MODIFICATIONS TO THE CIDI RULES OF PROCEDURE

Article 57

Article 57. The General Secretariat shall:

1. Provide technical and logistical services to CIDI and its organs;

2. Provide support to policy discussions of the various fora of CIDI;

3. Prepare studies and supporting documents for CIDI meetings and

4. Perform other mandates and functions entrusted to it by CIDI and its organs.

II. PROPOSED MODIFICATIONS TO THE CEPCIDI AND CENPES
RULES OF PROCEDURE

1. Modify Article 3 as follows:

Article 3. CEPCIDI shall perform the functions assigned to it in the following legal instruments: CIDI Statutes, General Standards for the Operation of the General Secretariat, FEMCIDI Statutes, the Statutes of the Inter-American Agency for Cooperation and Development (IACD), and CIDI Regulations, as well as any other function or mandate that the General Assembly or CIDI assigns to it.

2. Modify Article 36 as follows:

Article 36. The General Secretariat shall prepare the final report of each meeting of CEPCIDI, which shall include all matters dealt with and the conclusions, recommendations and agreements that have been reached during the meeting. The text of those minutes shall be distributed to delegations prior to the next regular meeting of CEPCIDI.

3. Modify Section 1 of Article 40 as follows:

Article 40. The Subcommittee on Program, Budget and Evaluation shall have the following functions:

1. Analyze the budgetary execution of partnership for development activities approved by the governing bodies, and monitor the results, impact, and sustainability of those activities on the basis of reports submitted by the General Secretariat and by the IACD Management Board.

4. Modify Article 41 as follows:

Article 41. The Subcommittee on Partnership for Development Policies shall have the following functions:

1. Prepare, at the request of CIDI or CEPCIDI, the draft Strategic Plan and draft Inter-American Programs using, when appropriate, any technical inputs to those drafts that may arise from special or sectoral meetings on the corresponding thematic subject

2. Monitor the implementation of the substantive aspects of the Inter-American Programs and make recommendations necessary to ensure coherence between cooperation policies and the projects and activities as undertaken by the Executive Secretariat for Integral Development and other pertinent dependencies of the General Secretariat.

3. Prepare the draft yearly schedule of meetings that take place within the context of CIDI: specialized or sectoral at the ministerial or equivalent level; special committees, and the other meetings at a high technical or political level.

4. Analyze the Annual Work Plans and Progress Reports of the pertinent dependencies of the General Secretariat, as well as the reports of the IACD, and submit to CEPCIDI the recommendations that it deems appropriate.

5. Take up other matters within its sphere of competence that CIDI or CEPCIDI assign to it.

Those dependencies of the General Secretariat charged with the follow up of the respective thematic subject shall provide technical support to the subcommittee.

5. Modify Article 54 on Summaries and Reports as follows:

Article 54

The permanent subcommittees shall present periodic written reports to CEPCIDI through their respective Chairs which shall detail the conclusions and recommendations that are submitted for consideration and decision of CEPCIDI. These reports shall be distributed by the General Secretariat to Member States in the four official languages of the Organization at least 48 hours prior to the meeting of CEPCIDI where they shall be presented.

In addition, the General Secretariat shall prepare a summary of each meeting of each of the subcommittees of CEPCIDI, which shall include all matters dealt with and the conclusions, recommendations and agreements that may have been reached during the meeting. These summaries shall be prepared by the General Secretariat and distributed to delegations in the four official languages of the Organization at least 48 hours prior to the next meeting of the subcommittee, when the schedule of meetings so permits. At the discretion of the Chair of the respective subcommittee, these summaries may also be made available to delegations during meetings of CEPCIDI for their information.

6. Modify the second paragraph of Article 58 as follows:

When a working group has reached conclusions or adopted recommendations on which CEPCIDI must make a decision, the Chair of the working group shall present to CEPCIDI or to the respective subcommittee a written report detailing, as appropriate, the conclusions or recommendations as provided for in Article 53 of these Rules of Procedure. This report shall be prepared by the General Secretariat and distributed to delegations in the four official languages of the Organization at least 48 hours before the meeting of CEPCIDI or the subcommittee to which it is to be presented. In all cases, the report of the working group shall contain the number of representatives present at the moment the conclusions were reached or the recommendations adopted.

7. Modify Article 70 as follows:

Article 70. With the support of the Executive Secretariat, the CENPES should, when appropriate, use electronic communication modalities and mechanisms in the discharge of their duties.

8. Modify Article 71 as follows:

Article 71. In performing their functions, the CENPES shall meet at least once a year. Pursuant to Article 16(e) of the FEMCIDI Statutes, the CENPES shall meet at the headquarters of the General Secretariat to evaluate the Programming Proposal of the Partnership for Development Activities prepared by the Executive Secretariat for Integral Development. The Executive Secretariat shall notify Member States of the date of the CENPES’ meetings.

9. Modify paragraphs 2 and 3 of Article 72 as follows.

2. The meetings of the CENPES to evaluate the Programming Proposal shall be closed. The CENPES shall only consider those proposals properly submitted and shall evaluate them with total independence of judgment, using only the criteria and format approved by the IACD Management Board and provided by the Executive Secretariat for Integral Development. Project proponents or the proposed executing agencies shall not be permitted to attend those meetings nor influence the assessment and recommendation of the CENPES. Notwithstanding the foregoing, the CENPES may request the Executive Secretariat for Integral Development to obtain any additional technical information that is considered necessary to reevaluate a specific proposal adequately.

3. The Executive Secretariat for Integral Development shall be the Secretariat of the evaluation meetings and shall coordinate the logistical support provided by the corresponding dependencies of the General Secretariat.

10. Modify Article 73 as follows:

Article 73. Once the evaluation of the Programming Proposal has been completed, each CENPE shall prepare a final report. Those reports shall be sent to the Executive Secretariat for Integral Development so that they may be reviewed by IACD Management Board. Based on Article 60 of these Rules of Procedure and when appropriate, such reports shall include projects and activities funded with resources other than those of FEMCIDI.

11. Modify Sections 1 and 4 of Article 74 as follows:

Article 74

1. Using the form provided by the Executive Secretariat for Integral Development, each CENPE shall prepare a final report which shall contain a list of the project proposals or activities that could be approved by the Management Board. The list shall contain, in addition, a score that corresponds to the technical merits of the proposals, in accordance with the criteria established for this purpose, as well as a recommendation of the amount of financial resources necessary for their execution.

2. The analysis and evaluation of the Programming Proposal made by the CENPES shall serve as basis for the approval of such proposal by the IACD Management Board. The distribution of available resources in the approved Proposal shall reflect an adequate balance between thematic areas and regional needs.