WORLD TRADE
ORGANIZATIONWT/IFSC/4
21 May 2003
(03-2721)
Integrated Framework Steering Committee
THE INTEGRATED FRAMEWORK TRUST FUND, WINDOW II
Terms of Reference
At its ninth meeting on 16 May 2003, the IFSC adopted the following text containing a
clarification of the Terms of Reference for the use of Window II of the Integrated Framework Trust
Fund, as contained in Section VII, Annex on th e IF Trust Fund in document WT/LDC/SWG/IF/13, in
so far as they relate to the use of Window II.
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1. The Doha Ministerial Declaration endorses the Integrated Framework for Trade-Related
Technical Assistance to Least Developed Countries (IF) as a viable model for least-developed
countries' (LDCs') trade development.  A number of  LDCs are now in or approaching the post-DTIS
phase of their IF programme.  Stakeholders have decided to revise the terms of reference for use ofWindow II of the Integrated Framework Trust Fund to provide some funding for modest, priority,
quick-win projects during this phase.  It aims at assisting the LDC to reach successfully the goal of
integration of trade priorities into the PRSP, or, in the absence of a PRSP, other development plan,
and access development assistance through C onsultative Groups, Round Tables and programme
support.  In this connection, donor agencies (including lead Facilitators) and Governments undertake
to increase their efforts to place trade, where appropriate, on the agenda of the Consultative Group
meetings and donor Round Table meetings.
2. Window II funds may be accessed by all LDCs who have undertaken a DTIS in the pilot
scheme of the Integrated Framework, for priority projects during the phase between the completion of
the DTIS and accessing funding through CGs, Round Tables and programme support.  These projects
should have the ultimate aim of helping the LDC to complete the mainstreaming process successfully
but they may be of diverse nature, according to the LDC’s own priorities, and may be expected toinclude project development and supply side as well as institutional strengthening.
1 Procedures for
accessing funding will be as simple and rapid as possible in order that Window II may fulfil
successfully its role of quick-disbursing, bridging mechanism and to overcome the delays currently
being experienced.
3. Technical assistance/capacity building activities identified by the LDC in the DTIS Matrices
may be considered.  Physical infrastructure projects in the DTIS matrices are excluded from funding
under Window II.  These projects will have to be presented for funding through Consultative Groups,
Round Tables and programme support. There will otherwise be no restriction on the type of project
from the DTIS matrix that may be considered for funding under Window II and therefore supporting
the ultimate aim of the mainstreaming of trade into the PRSP.  It is understood that such projects may
                                                     
1 For the six elements of trade-related technical as sistance identified under the Integrated Framework,
see WT/LDC/SWG/IF/1.WT/IFSC/4
Page 2
include supply side projects with private sector involvement and the procurement of equipment as part
of institutional strengthening, should this be the LDC’s priority.
4. Particular activities can be flagged at the DTIS stage for possible Window II funding, so that
they can be worked up into a full project data sheet  with minimum delay.  Applications for funding
under Window II should be made within one year of the DTIS workshop and be programmed to becompleted within three years;  these time-limits will apply from the time of the adoption of these
guidelines.
5. In order to ensure that decision-making is sw ift and that the LDC retains full ownership, the
initial  project selection including recommendations on executing agency will be effected at local level
and under the chairmanship of an appropriate government body.  Unless an appropriate earmarked
contribution is available for the project, the recommendations will be conveyed to UNDP, as trustee
of the IFTF.  UNDP will be responsible for managing  funding in accordance with the applicable rules
and regulations (see Annex 1) .  In order to ensure full transparency, the trustee of the IFTF will report
regularly to the Integrated Framework Workin g Group and the Integrated Framework Steering
Committee and seek guidance to ensure fairness and equitable geographical distribution.
6. Unearmarked contributions are preferred.  However, earmarked funds may be accepted for
particular countries, regions or sectors.
7. These terms of reference will be subject to review and adjustment in the light of the outcome
of the evaluation of the IF Pilot Scheme currently underway.WT/IFSC/4
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Annex 1
Procedures for use of Funds
1. Following validation of its DTIS Action Plan, the LDC’s proposals for Window II funding are
assessed by a Local Project Approval Committee (LPAC), chaired by an appropriate government
body.
2. Membership of the LPAC will vary from count ry to country but will include as a minimum:
the Ministry of Finance or Planning, the Ministry of Commerce, UNDP Resident Representative or
delegate (trustee of the IFTF), the lead facilitating donor/agency and the World Bank ResidentRepresentative or delegate.  This committee will co nsider the content of the project, its relevance,
costing and implementation arrangements, including executing agency.
3. Approved proposals are sent to UNDP HQ.  In its capacity as the IFTF administrator, the
UNDP will prov ide an oversight review of the proposal and proceed to fund according to the rules and
regulations within which it operates.  If funds are earmarked by a donor for a particular country or
activity, UNDP will communi cate with the donor(s) to ensure that any proposed projects which would
make use of their funds fit their earmarking criteria.
4. Inputs required for the project shall be provided in accordance with the principles of
competitiveness, transparency in the selection process, and multilateralism.  Inputs will be selected
without regard to country of origin, but enc ouraging procurement within the LDC concerned.
5. UNDP will manage this process as its contribution to the IF.  It will provide regular reporting.
In addition to financial reports, results-based narrative reports will be provided.
6. For full details of the procedures, see UNDP Proposal, IFTF – Procedures for Window II
(WT/IFSC/W/3).
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