ASEAN Cooperation Project is supported by various funding sources. ASEAN Member States dedicate specific funds, including a number of ASEAN sectoral funds, to advance ASEAN priorities. Similarly, ASEAN External Partners also set funds to support development cooperation with ASEAN. In general, there are three types of Funds, classified and described as follows:
Type of Fund | Description |
| ASEAN Funds |
|
| ASEAN Partners’ Trust Funds | Provided by ASEAN External Partners (Dialogue and Sectoral Dialogue Partners) and managed by the ASEAN Secretariat |
| ASEAN Partners’ Funds | Provided by ASEAN External Partners (Dialogue, Sectoral Dialogue, and Development Partners as well as International Organizations) and NOT managed by the ASEAN Secretariat |
Table 1. ASEAN Cooperation Project Funding Mechanisms
For the ASEAN Funds and ASEAN Partners’ Trust Funds, the main Terms of Reference (TOR) and Rules of Procedures (ROP) are explained as below:
Cooperation Framework | TOR and ROP (as approved by ASEAN and its External Partner) |
| Funding Contribution | External Partner deposits to ASEAN Secretariat annual/regular contributions |
| Source of Projects | Projects can be initiated by the 10 ASEAN Member States and External Partner, based on agreed priorities |
| Fund Disbursement/ Management | Fund is disbursed by the ASEAN Secretariat to the Implementing Agency of the approved project |
| Application of ASEAN Project Management Framework (PMF) | Guidelines and procedures of the ASEAN PMF are fully applied. |
Table 2. ASEAN Funds and ASEAN Partners’ Trust Funds
For ASEAN Partners’ Funds, the main procedures are explained as below:
Cooperation Framework | Programme Document (jointly developed by ASEAN and its External Partner and approved based on ASEAN procedures) |
| Funding Contribution | External Partner allocates and manages the fund |
| Source of Projects | Single project proposals or activities defined by the programme document /annual work plan |
| Fund Disbursement/ Management | External Partner manages the funds and, in some cases, contracts Technical Assistance Team (TAT) to implement the programme. The TAT reports to a Steering Committee composed of ASEAN and External Partner. |
| Application of ASEAN Project Management Framework (PMF) | Only main elements of the guidelines and procedures of the ASEAN PMF are applied. |
Table 3. ASEAN Partners’ Funds
In general, table below describes the predominant modalities of ASEAN External Partners:
TYPE OF EXTERNAL PARTNER | PROJECT-BASED | PROGRAMME-BASED |
| Dialogue Partner | Canada, China, India, Japan, New Zealand, Republic of Korea, Russia, UK | Australia, European Union, United States |
| Regional Cooperation Mechanism | ASEAN Plus Three (APT) | |
| Sectoral Dialogue Partner | Norway, Pakistan, Switzerland, Turkiye | |
| Development Partner | Italy, France | Chile, Germany |
| International Organization | United Nations and its Agencies, World Bank, ADB, Others |
Table 4. Modality of External Partners’ Cooperation with ASEAN
To know more about the details of the various funding mechanisms and modalities for ASEAN Cooperation Projects, click here.
