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Democratic Republic of Congo: Overseas Aid

Volume 481: debated on Tuesday 21 October 2008

To ask the Secretary of State for International Development what administrative costs to his Department were associated with contributing to the Democratic Republic of Congo Humanitarian Pooled Fund in 2007-08; and what funding provided by his Department to the fund was spent on in that year. (220418)

The associated cost to the Department for International Development (DFID) in contributing to the Democratic Republic of Congo (DRC) Humanitarian Pooled Fund is difficult to accurately disaggregate from the overall administrative costs of DFID in DRC. Administration costs for DFID DRC in 2007-08 are 4.4 per cent., with expenditure of just over £72 million. However, now the Pooled Fund is up and running, the costs of our oversight, monitoring and evaluation and lobbying for humanitarian reforms will be much less than 4.4 per cent. of our £30 million contribution to the pooled fund.

The DRC Humanitarian Pooled Fund (about £58 million in 2007) is managed by the United Nations (UN), with technical humanitarian expertise provided by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) and financial management provided by the United Nations Development Program (UNDP). The management costs associated with the pooled fund are:

In 2008, OCHA/UNDP will require approximately £500,000 to provide the technical and managerial expertise, amounting to 0.5 per cent. of the fund.

UNDP charges 1 per cent. for the overall financial management of the fund, (about £580,000 in 2007).

UNDP also manages grants made directly to non-governmental organisations (NGOs) and charges a further 5 per cent. to administer these (about £1 million in 2007).

Thus a total of about £2.08 million (about 3.5 per cent.) is spent to administer the Pooled Fund. As per standard practice, each UN agency and NGO receiving Pooled Funds can charge an overhead fee of up to 7 per cent. for each grant received.

In 2007 the Pooled Fund contributed to over 200 projects. A complete analysis of the results achieved by the fund is available in the 2007 Annual Report. The report can be downloaded on-line from:

http://www.reliefweb.int/rw/rwb.nsf/db900sid/EDIS-7EGQ8V?OpenDocument