The UNDP-supported Guarantees Policy has been approved on a pilot basis, with the pilot period envisaging up to five guarantee projects per Regional Bureau, with clear potential and identified non-core funding. To ensure it is putting forward robust proposals with the best chance of success, the Regional Bureau must agree that a CO should proceed with submitting a proposal to initiate a pilot guarantee project for review and clearance by HQ, including by BPPS Global Policy Network (GPN) and Finance Sector Hub for the programme facets, as well as BMS for the financial and legal facets. If a CO identifies an opportunity to pilot a guarantee project, an initial diagnostic, concept note, and country risk assessment must be prepared and shared with the Regional Bureau, BPPS GPN, Finance Sector Hub, and the BMS/OFM Guarantees Project Team for review and clearance. For more information, please refer to the policy and procedures.
December 19, 2022 -
The UNDP-supported Guarantees policy has been approved for a five-year pilot period, and includes credit guarantees and procurement guarantees, which were previously assessed as areas of high demand and thus prioritized for the first phase of implementation. UNDP-supported Guarantees must be part of broader development interventions in DIM and CO-support to NIM projects and be fully donor funded. The pilot policy will enable UNDP to leverage guarantees in a prudent manner to incentivize sustainable/SDG-aligned investments in line with its ambition to leverage public finance and mobilize private finance for the SDGs. In addition, it will open new partnership venues and strengthen UNDP’s ability to act as an integrator across the UN development system.