1. Decides to adopt the annex to the present decision, containing the objectives and criteria for the second review of the effectiveness of the financial mechanism to be conducted in time for the sixth meeting of the Conference of the Parties;
2. Decides also that this second review should be conducted under the authority of the Conference of the Parties;
3. Decides further that, based on the results of the review, the Conference of the Parties shall take appropriate action to improve the effectiveness of the mechanism if necessary.
TERMS OF REFERENCE FOR THE SECOND REVIEW OF THE EFFECTIVENESS OF THE FINANCIAL MECHANISM
1. In accordance with Article 21, paragraph 3, the Conference of the Parties will review the effectiveness of the mechanism, including the criteria and guidelines referred to in Article 21, paragraph 2, with a view to taking appropriate action to improve the effectiveness of the mechanism if necessary. For this purpose, effectiveness will include:
(a) The effectiveness of the financial mechanism and its institutional structure in providing and delivering financial resources, as well as in overseeing, monitoring and evaluating the activities financed by its resources;
(b) The conformity of the activities of the Global Environment Facility (GEF), as the institutional structure operating the financial mechanism, with the guidance of the Conference of the Parties; and
(c) The efficiency, effectiveness and sustainability of the GEF-funded activities on the implementation of the Convention and in the achievement of its three objectives.
2. The review will cover the activities of the financial mechanism for the period from November 1996 to June 2001, with special emphasis on those activities that have been concluded during the same period.
3. The review will cover all operational programmes of the financial mechanism relevant to the Convention on Biological Diversity.
4. The review should be carried out by an independent evaluator and shall draw upon, inter alia, the following sources of information:
(a) Information provided by the Parties and countries on their experiences regarding the financial mechanism;
(b) Reports prepared by the Global Environment Facility, including its reports to the Conference of the Parties, programme status reports, operational reports on GEF programmes and the GEF pipeline, reports of the GEF Monitoring and Evaluation Programme, in particular the second Overall Performance Study, operational reports on GEF programmes and the annual programme performance report;
(c) Project reviews and evaluation reports prepared by the Implementing Agencies;
(d) Information provided by other relevant stakeholders in GEF-financed biodiversity activities.
5. The effectiveness of the financial mechanism shall be assessed taking into account, inter alia:
(a) The steps and actions taken by the financial mechanism in response to the actions requested by the Conference of the Parties at its fourth meeting to improve the effectiveness of the financial mechanism, as set out in the annex to its decision IV/11;
(b) The actions taken by the financial mechanism in response to the guidance of the Conference of the Parties, as contained in decisions I/2, II/6, III/5, IV/13 and V/13;
(c) The findings and recommendations of the second Overall Performance Study of the GEF;
(d) Any other significant issue raised by the Parties.
6. Under the authority and with the support of the Conference of the Parties, the Executive Secretary shall contract an experienced independent evaluator to undertake the review, in accordance with the above objectives, methodology and criteria.
7. The Parties, countries and stakeholders, including relevant organizations, are invited to communicate to the Executive Secretary, by 30 September 2001, their detailed views on the effectiveness and efficiency of the financial mechanism on the basis of experience during the period under review.
8. The communications referred to above shall be structured along the lines of a questionnaire designed by the evaluator using the criteria adopted in the present terms of reference, to be sent to the Parties as soon as practicable after the fifth meeting of the Conference of the Parties. The evaluator shall prepare a compilation and synthesis of the information received.
9. The evaluator will undertake such desk studies, interviews, field visits and collaboration with the GEF secretariat as may be required for the preparation of the study, subject to the availability of resources
10. The compilation and synthesis of the information and recommendations for future improvements received in response to the questionnaire and the report of the evaluator shall be submitted to the Bureau for review and comments prior to their circulation.
11. The draft compilation and synthesis, and the report of the evaluator, will also be made available to GEF (the GEF secretariat and Implementing Agencies) for its review and comments. Such comments shall be included in the documentation and identified by source.
12. The Executive Secretary shall submit the documents to Parties at least three months prior to the sixth meeting of the Conference of the Parties