WORLD TRADE  
ORGANIZATION  WT/IFSC/4/Rev.1 
16 December 2004 
 
 (04-5546) 
Integrated Framework Steering Committee  
 
  
THE INTEGRATED FRAMEWORK TRUST FUND, WINDOW II 
 
Terms of Reference
 
 
Revision  
 
 
 In conformity with the Integrated Framew ork Steering Committee's decision taken at its 
twelfth session of 2 December 2004, paragraph  4 of the Terms of Reference of the Integrated 
Framework Trust Fund, Window II is hereby revise d.  Accordingly, this document, containing the 
revised text of paragraph 4,  replaces document WT/IFSC/4, dated 21 May 2003. 
 
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 At its ninth meeting on 16 May 2003, the IFSC adopted the following text containing a clarification of the Terms of Refe rence for the use of Window II of the Integrated Framework Trust 
Fund, as contained in Section VII, Annex on the 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 De veloped 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 de cided to revise the terms of reference for use of 
Window 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 Cons ultative Groups, Round Tables and programme 
support.  In this connection, donor agencies (inc luding 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 to 
include project development and supply side as well as institutional strengthening.
1 Procedures for 
                                                      
1 For the six elements of trade-related technical assistance identified under the Integrated Framework, 
see WT/LDC/SWG/IF/1. WT/IFSC/4/Rev.1 
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 accessing funding will be as simple and rapid as possible in order that Window II may fulfil 
successfully its role of quick-disbursing, bridgi ng mechanism and to overcome the delays currently 
being experienced. 
3. Technical assistance/capacity building activities id entified 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 othe rwise 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 
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 actual validation of the DTIS and be 
programmed to be completed 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 swif t and that the LDC retains full ownership, the 
initial  project selection including recommendations on exec uting agency will be effected at local level 
and under the chairmanship of an appropriate go vernment body.  Unless an  appropriate earmarked 
contribution is available for the project, the recomm endations 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 transparen cy, the trustee of the IFTF will report 
regularly to the Integrated Framework Workin g Group and the Integrat ed Framework Steering 
Committee and seek guidance to ensure fairne ss and equitable geographical distribution. 
6. Unearmarked contributions are preferred.  Ho wever, earmarked funds may be accepted for 
particular countries, regions or sectors. 
7. These terms of reference will be subject to revi ew and adjustment in the light of the outcome 
of the evaluation of the IF P ilot Scheme currently underway.  WT/IFSC/4/Rev.1 
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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 Appr oval 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 Resident 
Representative or delegate.  This committee will c onsider 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 provide an oversight review of the proposal  and proceed to fund according to the rules and 
regulations within which it operate s.  If funds are earmarked by a do nor for a particular country or 
activity, UNDP will communicate 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 prov ided in accordance with the principles of 
competitiveness, transparency in the selection proc ess, and multilateralism.  Inputs will be selected 
without regard to country of origin, but encouraging 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-b ased 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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