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Private Sector Non-Reimbursable Loan

Effective Date

Sep 26, 2025

Summary of Changes

The new Private Sector Non-Reimbursable Loan Policy outlines the conditions under which UNDP can accept non-reimbursable loans of personnel from commercial entities. This policy aims to enhance UNDP's capacity by leveraging private sector expertise for specific projects or assignments. Key points include:

  • The policy applies to all non-reimbursable loans of personnel negotiated with private sector partners.
  • The purpose is to facilitate the in-sourcing of private sector expertise to assist UNDP in developing solutions to complex issues.
  • Specialists provided by private sector partners will work full-time and exclusively on UNDP assignments, without any cost to UNDP.
  • The policy includes strict guidelines on the conduct and responsibilities of the specialists, ensuring they adhere to UNDP standards and confidentiality requirements.
  • The policy also details the process for entering into such arrangements, including due diligence and formalization procedures.

Private Sector Non-Reimbursable Loan Policy

Policy Area:

Human Resources Management

Policy Chapter:

Non-Staff

Policy Sub-Chapter:

Non-Reimbursable Loans

Effective Date

Oct 01, 2025

Planned Review Date

Oct 01, 2028

Non-Reimbursable Loan Agreement: Private Sector

Document Type

Template

Effective Date

Oct 01, 2025

Published in:

Private Sector Non-Reimbursable Loan Policy

This policy applies to non-reimbursable loans of personnel from the commercial private sector (i.e. for-profit entities) only and does not apply to the loan of personnel from governments and civil society organizations (CSOs), for which the Non-Reimbursable Loan Agreements policy applies.

Document Type

Policy

Effective Date

Oct 01, 2025

Planned Review Date

Oct 01, 2028

Published in:

Private Sector Non-Reimbursable Loan

1.0
Step

Initiate discussions of a potential PS NRL with prospective Private Sector Partner(s)
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline

Non-Reimbursable Loan Agreement: Private Sector

Explanatory Notes

The initial discussion normally takes one of the following means:

  1. UNDP may reach out to one or multiple prospective Private Sector Partners to discuss a potential partnership. UNDP may prepare in advance the ToRs, listing the duties and functions and duration of the proposed Assignment to be covered under a PS NRL, or start with general discussion on a partnership scheme, which may lead to a PS NRL. If discussing with multiple prospective Private Sector Partners, the Bureau will competitively analyse the offers/proposals received from the potential Private Sector Partners for their unique collaborative advantage, in order to select the prospective Private Sector Partner which will offer the PS NRL.
  2. UNDP may prepare the ToRs for a PS NRL and issue a call for proposal (CfP) or expression of interest (EoI).
  3. A prospective Private Sector Partner may reach out to UNDP for a potential partnership.

Subsequently, if the ToR is not prepared under the above process described in above, the Bureau prepares it in discussion with a specific prospective Private Sector Partner based on their offer/capacity. 

2.0
Step

Inform BERA’s Partnership Group of the partnership and conduct due diligence
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Throughout the process, the Bureau must undertake appropriate due diligence of the prospective or selected Private Sector Partner(s) in accordance with UNDP’s Policy on Due Diligence and Partnerships with the Private Sector and related procedures.

3.0
Step

Agree on the individual who will be offered to UNDP as the Specialist through the PS NRL
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Once the Private Sector Partner is selected and the ToR is finalized, the Private Sector Partner and the Bureau will agree on the individual who will be offered to UNDP as the Specialist through the PS NRL.  In doing so, the Bureau may decide and agree with the selected Private Sector Partner to select the Specialist based on competition, with the BMS/OHR Business partner assisting with the selection strategy. If applicable, BMS/OHR will select the Specialist in accordance with the selection strategy.

4.0
Step

Let the candidate fill out conflict of interest form and consult Ethics Office if necessary
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline

New Personnel Conflict of Interest Declaration Form

Explanatory Notes

The requesting Bureau must ensure that there is no conflict of interest arising from the specific assignment of the individual, not only between UNDP and the individual, but also between UNDP and the Private Sector Partner, based on the ToR.

5.0
Step

Certify that the proposal does not involve financial liability for UNDP
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Certification by the requesting Bureau that the proposal does not directly or indirectly involve additional financial liability for UNDP, except as set forth in the NRLA template.

6.0
Step

If any changes to the PS NRL template are made, secure review and clearance by BMS/OLS, in consultation with the HRBP
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

7.0
Step

Calculate the value of the services offered  on the basis of the salary element of the pro-forma cost for the grade and  obtain account codes from OFRM
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Use proforma costs as indication, based on an equivalent grade for the services offered as defined in the ToR. 

The income from cost recovery is used to fund UNDP’s institutional costs in line with approved budget processes.

Income from cost recovery should be recorded under the following COA: 

Operating Unit :H18
Account:54010
Fund:11820
Dept ID:11006

8.0
Step

Consult Security Office
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Necessary if PS NRL is being considered in a non-family duty station.

9.0
Step

Sign PS NRLA
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes

Where the Agreement is not signed electronically, ensure that a minimum of two (2) originals are signed. After signature, UNDP should keep and store one original and provide the donor with the other original.

10.0
Step

Assist in obtaining clearances and visas necessary to assignment.
Responsible Party

OHR

Template/Guideline
Explanatory Notes

BMS will assist in obtaining visa clearances in New York, if applicable.

11.0
Step

Raise Unall Information Technology Management (ITM) Identity and Access Management (IDAM) Person of Interest (POI) Creation Request
Responsible Party

Receiving Office Bureau,

Identity and Access Management (IDAM) Focal Point

Template/Guideline
Explanatory Notes
  • Ask the Identity and Access Management (IDAM) Focal Point to register the Person of Interest (POI).
  • This registration allows non-staff individuals to receive access.

12.0
Step

Register candidate via UNALL Identity and Access Management (IDAM) request as Person of Interest (POI)
Responsible Party

Central Bureau,

Regional Bureau

Template/Guideline
Explanatory Notes
  • Create access for the candidate in Quantum.
  • Extend the candidate’s access when needed.
  • Remove (deprovision) the candidate’s access when it is no longer required.

Private Sector Non-Reimbursable Loan

Appraise and Approve

Effective Date

Sep 05, 2025

Summary of Changes

The Development Project Procedure (Step 2.1 VERT) has been updated. Please refer to the Guidance Map on Environmental Vertical Fund (GEF and GCF) which has been updated to reflect new links to guidance across the intranet and POPP, with out-of-date templates on the POPP being retired. This new guidance incorporates internal streamlining measures and alignment to recent updates to GEF policies and guidelines.

Formulate Programmes and Projects

Effective Date

Sep 05, 2025

Summary of Changes

The Formulate Development Projects Procedure (Step 1.1 ALT) has been updated with links to templates and guidance. Please refer to the Guidance Map on Environmental Vertical Fund (GEF and GCF) which has been updated to reflect new links to guidance across the intranet and POPP, with out-of-date templates on the POPP being retired. This new guidance incorporates internal streamlining measures and alignment to recent updates to GEF policies and guidelines.

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