The quality and quantity of various fiscal transfer instruments, the clarity of their design, the way they are allocated across provinces and districts, and the way they incentivize subnational governments all matter greatly for achieving the SDGs. This policy
brief summarizes experiences in Asia and key recommendations, based on a study commissioned by UNDP.
UNDP supports Governments throughout the project cycle – designing bankable projects, implementing projects, and providing monitoring and evaluation oversight as a third party or fiduciary agent).
UNDP also helps Governments and IFIs fill gaps in loan implementation:
When there are gaps in the country’s ability to implement IFI loans/grants, such as difficult operating environments, fragile and post-conflict situations when the country has lost creditworthiness or financing is difficult to arrange;
When there are gaps in the Banks’ capacity to monitor loans/grants, such as situations where project work involves a large number of ministries and/or partners at the local level, is politically sensitive or involves new sectors/ areas for Banks; and/or
Where loans/grants are not performing or in cases where the IFI or the Government need in-country policy analysis and/or technical assistance to help overcome bottlenecks or implement at the national or sub-national level.
If loan implementation is delayed, UNDP may be called in by the government to support the activities under the loan agreement. If there is a prospective loan under discussion, UNDP may be brought in to provide technical policy assistance or capacity development services (in the areas of recruitment, procurement, and financial management). Once the capacity is built, these functions are carried out by national or regional institutions.
UNDP has experience in designing and
implementing initiatives that de-risk and crowd-in financing for investments on climate action.
Working in partnership with financing instruments such as the Global Environment Facility (GEF) and
the Green Climate Fund (GCF), UNDP has a track record of catalyzing private sector investments in a range of sectors. In particular, UNDP helps Governments to design and implement technical, financial, policy and capacity-related projects designed to reduce risks, remove barriers and
create an attractive enabling environment for
investments. Country support in transition towards more sustainable energy systems (includes large-scale grid-based electricity projects using wind, solar, biomass and geothermal energy).
The guidelines provide a suggested list of steps and key considerations to have in mind when setting up a national SSC strategy, which would lead the broader set up of the national ecosystem to facilitate SSC/TrC.