United Nations launches emergency fund

(New York: 9 March 2006): The United Nations today formally launched the new Central Emergency Response Fund. The Fund was approved by the General Assembly in December of 2005 and marks another milestone in the UN reform process.
"Too often, aid resembles a lottery in which a few win but most lose based on considerations other than need. We must move from lottery to predictability so all those who suffer receive aid," said Jan Egeland, United Nations Emergency Relief Coordinator.

The CERF will save lives by providing quick initial funding for life-saving assistance and rapid response in sudden onset emergencies, rapid deteriorations, and neglected emergencies. It will thereby help rectify the existing imbalance in global aid distribution, as a result of which millions of people in so-called neglected or forgotten crises remain in need, while others benefit from better funded programmes.

The Fund adds a grant facility of up to $450 million to the existing Central Emergency Revolving Fund loan mechanism of USD $50 million. Up to two thirds of the grant facility can be allocated to rapid response with the other one-third devoted to addressing under-funded emergencies. When donor funds are in the pipeline, the loan portion will be used; when not--the grant portion.

Jan Egeland, who manages the Fund on behalf of the Secretary-General, will disburse funds within three to four days after the request of a Humanitarian or Resident Coordinator. He will be guided by an Advisory Group of 12 independent experts. Kofi Annan, United Nations Secretary-General, has requested nominations for membership in this Advisory Group, which will comprise eight experts from the pool of contributors to the Fund's grant facility, and four from a range of partners and stakeholders.

While United Nations Agencies and the International Organization for Migration are able to draw on the Fund, non-governmental organizations (NGOs) may also receive CERF funds as partners of these agencies.

The Secretary-General's Report 'In larger freedom' recognized that further improvements to the humanitarian system were needed to introduce more predictability in overall humanitarian response given the increasingly complex humanitarian environment, including the increased frequency and vulnerability to natural disasters and the significant humanitarian impact of armed conflict. In addition to the CERF, other key humanitarian reforms include strengthening the response capacity and field coordination of the humanitarian system.

For further information, please call: Stephanie Bunker, OCHA-New York, +1 917 367 5126, mobile +1 917 892 1679; Kristen Knutson, OCHA-New York, +1 917 367 9262; Elisabeth Byrs, OCHA-Geneva, +41 22 917 2653, mobile, +41 79 473 4570.