WT/COMTD/AFT/W/57  
 
18 June 2015  
(15-3157)  Page: 1/3  
Committee on Trade and Development 
Aid for Trade    
 
  STATEMENT BY THE ENHANCED INTEGRATED FRAMEWORK 
  
The following statement, delivered by the represen tative of the Enhanced Integrated Framework at 
the Committee on Trade and Development's 34th Session on Aid for Trade on 29 May 2015, is 
being circulated to delegations for information.   
  
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 At the last CTD meeting
1 we shared that the Enhanced Integrated Framework (EIF) Steering 
Committee had endorsed the recommendation of the EIF Board to extend the programme into a 
second phase based on agreement on the scope and modalities.  
Last week the EIF Steering Committee agreed on the key recommendations on the new 
Programme Framework for the EIF, submitted by the EIF Board. The new Programme Framework is the result of an inclusive and consultative process which began immediately following the positive findings and recommendations of the 2014 Comprehensive Evaluation of the EIF. 
 
The process included the setup of a Working Group within the EIF Board which was tasked with developing the scope and modalities for Phase Two of the Programme (2016-2022) and the 
hosting in March 2015 in Geneva of the first ever Global Platform of the EIF Partnership, where 
237 representatives from Least Developed Countries (LDCs), Donors and Partner Agencies discussed proposals and provided inputs into the design of the Programme's second phase.  
 
I will now highlight the key changes for Phase Two of the EIF.  1  PURPOSE AND OBJECTIVES 
1.1.  The EIF's purpose remains as a unique global partnership exclusively dedicated to mobilizing 
trade for development of the LDCs through ec onomic growth, poverty reduction and job and 
income opportunities. This is captured in the EIF's new tag line: trade for LDC development. 
1.2.  Phase Two will focus on:  
i) Targeting sustainable results from the start.  
ii) Reinforcing and reinvigorating the partnership, with the agencies, LDC member countries 
and donors each more active and more accountable for their respective responsibilities.  
iii) Better communicating the objectives of the programme and engaging key 
decision-makers.  
 
2  SCOPE AND OPERATIONS 
2.1.  The basic design of the EIF programme, incl uding the two funding tiers, is to be maintained 
in Phase Two. The following changes are proposed:  
                                               
1 The Committee on Trade and Development's 33rd Session on Aid for Trade held on 17 February 2015 
(WT/COMTD/AFT/M/33). WT/COMTD/AFT/W/57 
 
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  i) Sharpening the Diagnostic Trade Integration Studies (DTIS) and Updates (DTISU) as well 
as synchronizing them to strategic decision-making. 
ii) Targeted and limited support to National Im plementation Arrangements (NIAs) beyond 
the five-year Tier 1 Support to NIA projects on request for specified phase-out or 
sustainability purposes.  
iii) Tier 2 financing will carry a clear expectation that efforts to leverage other funds and 
contributions have been made. However, the successful leveraging of additional funds 
shall not constitute a precondition for Tier 2 funding. 
 3    ADAPTING FOR MAJOR TRENDS IN TRADE  
3.1.  Phase Two will: 
i) Permit the financing of Tier 2 projects that have a regional dimension provided they are 
endorsed by the relevant National Steering Committees (NSCs), while use of the EIF Trust Fund remains exclusively for its beneficiary countries. 
ii) On a similar permissive, not prescriptive, basis, Tier 2 will not only continue to be open 
to projects that address services and value chain-related priority areas identified in 
DTISU, but will be able to fund priority pr ojects that involve contributions by private 
sector parties, while not directly funding the private sector. 
 4   GOVERNANCE 
4.1.  Phase Two will have:   
i) The Board focus on strategic decision-making. 
ii) Explicit enforcement of conflict of interest provisions. 
iii) Delegation of authority to the Executive Di rector of the EIF Executive Secretariat to 
approve all projects under Tier 1 and feasibility studies funded under Tier 2.  
 
5   MANAGEMENT  
5.1.  With the growing strength, responsibility an d accountability of the Executive Secretariat (ES) 
as the programme coordinator in Phase Two, considerable re-balancing will take place between the ES and the Trust Fund Manager (TFM). The following specific actions will take place: 
i) Ahead of Phase Two, the Terms of Reference fo r the TFM function will be revised and put 
to the market. The procurement process will be concluded in a manner which will ensure 
that the TFM for Phase Two is fully operational on 1 January 2016.  
ii) Strengthening the ES for supervising and moni toring the effective implementation of the 
programme in Phase Two through improved management information systems and 
business process, and additional human resources to enhance ES programme management capacity.  
iii) Consolidating country portfolios and decentralizing ES staff where necessary.  
iv) Explicit provisions for performance evaluation review of the Executive Director of the EIF 
Executive Secretariat by the EIF Board. Stronger goal-setting and performance accountability to the Board for the Executive Director and cascading down to the staff 
members will allow for maintaining a uniformly high-performing team. 
 6   INCREASING EFFICIENCY  
6.1.  Key changes to increase efficiency include:  
i) Extended or repeated ES missions supporting project development and formulation 
facilitated through a regional structure of ES.  
ii) Simplified appraisal documentation.  
iii) Management information system adapted to better track and report progress and to 
support results-based management.  
iv) Delays in the implementation of projects, in particular DTISU will be addressed through a 
focus on improving contractor performance by stronger mutual accountability WT/COMTD/AFT/W/57 
 
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  mechanisms and a stricter application of competitive bidding provisions in the 
Compendium. 
 7   MANAGING FOR RESULTS AND RISKS  
7.1.  The Programme Framework outlines plans for project and programme evaluation and for 
stronger results-based management; it will also include a change management plan.  
i) Phase Two should include an independent evaluation in 2020 and progress against the 
change management plan will be reviewed and reported. 
ii) The log-frame for Phase Two will be strengthened.  
iii) A full risk management assessment shall be prepared as part of the change management 
plan.  
 
8   VALUE FOR MONEY AND INDICATI VE PROGRAMME BUDGET      
i) A ceiling on administrative costs against a predictable denominator value shall also be 
set. 
ii) As part of a further "value for money" analysis, a proposal for additional cost reductions 
will be identified, where possible.  
 
8.1.  The Indicative Budget estimate for Phase Two is to lie in the range of US$274-320 million. A pledging conference is planned to take place at the outset of the WTO Ministerial Conference in 
Nairobi in December 2015.  
8.2.  The second phase of the EIF programme will produce a more dynamic and results-driven EIF, 
demonstrating increased efficiency, effectivene ss, sustainability and value for money. The 
approach adopted combines continuity and consolidation of work in areas where the EIF has 
demonstrated important results over Phase One, with major improvements at several levels, both 
to remedy identified weaknesses in the partnership and the programme to date, and also to re-gear them to the environment for Aid for Trade in LDCs over the next seven-year lifespan of 
Phase Two.  
8.3.  I would like to take this opportunity to thank the EIF partnership – the LDCs, the donors and 
the agencies - for their hard work, commitment and support in setting the solid foundations for what will be a strengthened EIF Phase Two, which continues to deliver development results on the 
ground. 
8.4.  I wish to conclude by inviting everyone he re today to the 'new EIF' Launch Event which will 
take place during the Aid for Trade Global Review on 1 July. The launch is being organized as a 
milestone event which will be opened by the WTO Director-General, will have a range of 
interesting and exciting elements, and will be a great way to open a new chapter for the EIF. We hope to see you all there. 
 
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