ASEAN Cooperation Project is supported by various funding sources. ASEAN Member States dedicate specific funds, to advance ASEAN priorities. Similarly, ASEAN External Partners also set funds to support development cooperation with ASEAN.
In general, there are three categories of Funds, classified and described as follows:
Fund Categories | Description |
| Fund Category 1 | Provided by ASEAN External Partners (Dialogue, Sectoral Dialogue and Development Partners) and managed by the ASEAN Secretariat |
| Fund Category 2 | Provided by ASEAN External Partners (Dialogue, Sectoral Dialogue, and Development Partners as well as International Organizations) and NOT managed by the ASEAN Secretariat |
| Fund Category 3 (ASEAN Project Funds) | Funds contributed by ASEAN Member States and managed by the ASEAN Secretariat, which include:
|
Table 1. ASEAN Cooperation Project Funding Mechanisms
For Fund Category 1, 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 11 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. Fund Category 1
For Fund Category 2, 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) | Under Category 2, some External Partners fully observe the SOP PAA, while others apply only its main elements. For the Guidelines on Closing ACP, the Secretariat’s review is limited to the narrative component of the PCR. Proponents are encouraged to consult the ASEAN Secretariat to clarify the extent to which the ASEAN PMF applies to Category 2 funds. |
Table 3. Fund Category 2
For Fund Category 3 (ASEAN Project Funds), the main procedures are explained as below:
Cooperation Framework | TOR (as approved by ASEAN) |
| Funding Contribution | Funds contributed by ASEAN Member States and managed by the ASEAN Secretariat under the custody of the CPR which include:
|
| Source of Projects | Projects can be initiated by the 11 ASEAN Member States |
| 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) | The ASEAN PMF SOP and Guidelines apply in full, except for the External Partner approval steps. |
