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Financing new projects
United Nations Development Programme (UNDP) ICAO is the United Nations agency responsible for civil aviation and accordingly the agency used for implementing civil aviation projects financed by UNDP funds.

ICAO has extensive experience working with UNDP and can assist governments in preparing the necessary documentation and securing UNDP approval of civil aviation projects. As competition within a country for UNDP funds is usually high, ICAO's assistance may be of great benefit in securing a portion for civil aviation.

Trust Funds
Trust Funds are used by governments to finance their own civil aviation development through ICAO. With the help of ICAO staff a project can be designed to meet the express needs of the government.

Normally, Trust Fund projects are administered under the same regulations as UNDP projects. Some Trust Fund projects, however, are funded by third parties: donor States or funding agencies.

Such 'third party' Trust Funds may require that project inputs (experts or equipment, for example) be obtained from the country or region which constitutes the bilateral or multilateral funding source. In these circumstances ICAO has the flexibility under a Council decision to conform to such requirements.

ICAO's administrative service fee for executing Trust Fund agreements is the same as for UNDP projects. To enter into a Trust Fund agreement with ICAO, a government deposits with ICAO sufficient convertible funds to cover a period of project activities, normally one year. As priorities change, a government may revise the kind of assistance being provided or, with reasonable notice, suspend or cancel the project.

Management Service Agreements
Management Service Agreements are another method to finance projects; they are similar to Trust Fund agreements but allow for greater flexibility in the administrative and financial conditions under which the project will be implemented.
Civil Aviation Purchasing Service (CAPS)
A government responsible for civil aviation must, over time, spend considerable funds on equipment. What precisely is needed to do the job? Where can it be purchased at the best possible price? These can be difficult questions for civil aviation administrations.

ICAO's Civil Aviation Purchasing Service (CAPS) can answer these questions, as it has for many countries. CAPS staff know the world market for aviation-related products, as they deal with more than 3 000 suppliers world-wide. They know current prices for aircraft, radar systems, computers, fire trucks and typewriters - the whole range of equipment that a civil aviation administration may need to function.

What's more, because ICAO buys millions of dollars worth of equipment every year, suppliers know they must offer realistic prices if they hope to win contracts. ICAO's CAPS charges are reasonable, intended only to cover overhead costs.

Many governments have found that the savings achieved through CAPS purchases outweigh the cost of CAPS services, which can be extensive in scope.

For complex systems, ICAO can provide either a complete procurement service or individual elements, i.e. prepare detailed designs, write specifications, evaluate tenders, carry out factory acceptance tests, handle shipping and oversee proper installation as may be required. Simpler purchases can be effected immediately.

To use CAPS, a government or agency need only sign an agreement and deposit the necessary funds in a special ICAO account set up for the project. ICAO will do the rest.

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