CGIAR Peer Review Team

CGSpace (CGIAR)

!!!!Fund%Council%!13th%Meeting%(FC13)—Bogor,%Indonesia%April%28?29,%2015%%%!!!WORKING(DOCUMENT(%%%%!Options!for!funding!core!activities!of!the!CGIAR!GeneBanks,!2017!–!2021!!!%%%%%Submitted!by:!!Peer!Review!Team(!!!1"""Options(for(funding(core(activities(of(the(CGIAR(GeneBanks,(2017(–(2021((Background(During"FC12,"FC"members"discussed"the"vital"importance"of"safeguarding"and"properly"managing"the"unique"germplasm"conserved"in"the"CGIAR’s"genebanks.""Members"asked"about"plans"for"continuation"of"the"existing"genebank"CRP"which"ends"in"December"2016."It"was"noted"that"many"CGIAR"genebanks"might"not"have"reached"the"Global"Crop"Diversity"Trust"(GCDT)"performance"standards"by"2016"that"would"allow"them"to"be"eligible"for"GCDT"endowment"funding.""GCDT"aims"to"increase"its"funding"of"CGIAR"genebanks"in"line"with"targets"for"growing"its"endowment"fund"and"as"CGIAR"genebanks"reach"the"minimum"quality"standards"to"be"eligible"for"GCDT"support.""The"FC"Chair"suggested"that"the"Fund"Office"(FO)"conduct"an"analysis"of"the"situation,"identify"potential"implications,"propose"a"plan,"and"submit"the"work"to"the"PRT"for"their"review"and"inputs"regarding"financing"options.""In"order"to"protect"the"collections,"a"funding"mechanism"may"need"to"be"found"until"the"GCDT"endowment"reaches"the"required"level"and"all"relevant"genebanks"are"eligible"for"support."This"paper"presents"some"funding"options"discussed"during"a"teleconference"held"on"7"April"between"the"PRT,"FO,"CO"and"a"representative"of"the"GCDT.""(Introduction(The"CGIAR"genebanks"are"a"global"resource"of"vital"importance"to"humanity."They"have"often"been"described"as"the"‘jewel"in"the"crown’"of"the"CGIAR."However,"despite"their"recognised"importance,"the"genebanks,"as"a"CRP,"elicited"relatively"modest"Window"2"interest"from"donors."Table(1.((Window(1(and(2((Genebanks(Funding(in#$#million##2011( 2012( 2013( 2014(Japan""0.20" 0.40" 0.03"Switzerland""1.07" 1.69" 1.64"Total(Window(2( I( 1.27( 2.09( 1.67(Window"1" 13.08" 16.93" 16.31" 16.93"Total&Contribution& 13.08& 18.20& 18.40& 18.60&"Consequently,"the"genebank"CRP"has"been"maintained"by"a"proportionately"large"amount"of"Win"1"support."The"PRT"believes"that"there"must"be"a"fundamental"revision"in"the"way"the"donor"community"regards"the"CGIAR"genebanks."They"are,"in"our"opinion,"a"shared"asset"for"the"benefit"of"the"entire"system"2""and"should"thus"be"regarded"as"having"parity"with"the"system"entities"(ISPC,"IEA,"CO"and"FO).""As"a"shared"asset"they"should"be"supported"on"a"shared"basis."System"entities"are"supported"by"the"2%"Cost"Sharing"Percentage"(CSP)"and"our"first"thought"was"that"the"CSP"should"cover"part"of"the"genebanks."However"the"PRT"has"endeavoured"to"keep"system"entities"costs"within"the"stipulated"2%,"and"little"surplus"remains"of"any"significance"for"support"of"the"genebanks."Indeed"the"cost"of"the"system"entities"could"exceed"2%"once"the"on\going"Task"Force"arrives"at"a"model"for"strengthening"the"ISPC,"acting"on"the"FC"12’s"decision"on"the"MTR"recommendation"regarding"this"entity."Table(2.(CGIAR(System(costs(as(a(Percentage(of(Total(Expenditures(("" "" ""2013"Actual"2014"Budget"2015"Budget"System"Costs"\"CGIAR"Fund" 17" 18" 18"Total"Expenditures""984"" 1,077"" 1,034""CSP"rate"applied" "" 2%" 2%" 2%"""FC"members"will"note"that"the"CGIAR"Genebanks"Options"Paper"for"FC"13"describes"two"indicative"budget"options"for"core"requirements"(p."17,"Table"7)."The"PRT"has"based"its"calculations"on"Option"2,"which"includes"Collecting,"Outreach"and"Partnership"activities."The"PRT"considered"these"activities"essential"to"core"requirements"and"that"they"should"be"supported"in"parallel,"thereby"avoiding"any"time"lag"between"e.g."Collection"and"genebank"achievement"and"maintenance"of"standards.""Our"first"Option"(Option(1)"would"be"simply"to"add"the"Gene"Banks"as"a"Special"Initiative"(please"refer"to"table"3)."This"would"initially"increase"the"CSP"to"4.13%"(which"may"have"to"be"adjusted"upwards"when"the"budget"implications"of"the"ISPC"Task"force"recommendations"are"known)."With"time,"however,"the"CSP"would"fall"to"ca."2.62"%"(2021)"due"to"the"increasing"support"from"the"GCDT"Endowment"Fund.""" "3""Table(3:(Option(one(–(Genebanks(treated(as(a(special(initiative(and(CSP(raised(above(2%(in($(million((( (("2017( 2018( 2019( 2020( 2021(Fund"Office" """4.00"" 4.00"" 4.00"" 4.00"" 4.00""Consortium"Office" """6.60"" 6.60"" 6.60"" 6.60"" 6.60""ISPC"(CGIAR"Fund"Financed"portion)""2.33"" 2.33"" 2.33"" 2.33"" 2.33""IEA" """3.94"" 3.94"" 3.94"" 3.94"" 3.94""Trustee" """0.62"" 0.62"" 0.62"" 0.62"" 0.62""Total(System(Entities'(costs( (("17.49(( 17.49(( 17.49(( 17.49(( 17.49(((( ((" " " " " "Special(Initiatives(" " " " " """"""Genebanks" """23.79"" 20.78" 16.50" 12.21" "8.72"    Total(Systems(Cost(( ""(41.28(( 38.27(( 33.99(( 29.70(( 26.21((    "" """ " " " " "   Estimated(CGIAR(2015(Funding(contributing(to(CSP("1000(( 1000(( 1000(( 1000(( 1000((    (((((((((((((((CGIAR(Fund( 500(" " " " " "   ((((((((((((((((Bilateral(( 500(" " " " " "   "" """ " " " " "   Cost(Sharing(Percentage( (("4.13%( 3.83%( 3.39%( 2.97%( 2.62%(    ( ( " " " " " "   Assumptions:###" " " " " " "   1.#Flat#budget#for#systems#entities#" " " " "2.#No#other#special#initiatives.##Any#additional#special#initiatives#will#increase#the#CSP#further#3.#That#we#are#able#to#recover#full#CSP#from#bilateral#funding#4.#Funding#remains#at#$1#billion#" " ""Combining"the"current"2%"CSP"with"the"costs"of"the"Genebanks"may"however"lead"to"confusion"regarding"allocation,"and"require"frequent"modification"of"the"CSP"rate"which"is"administratively"complex."""""Our"Option(2"is"a"further"development"along"the"CSP"theme,"but"involves"the"introduction"of"a"time\bound,"system"wide"levy"in"addition"to"the"current"2%"system"costs"CSP"for"existing"system"entities."In"table"4,"we"have"examined"%"scenarios"for"this"system"wide"levy."The"deficit"is"made"up"of"a"draw"down"from"Win"1.""As"the"Endowment"Fund"comes"up"to"speed,"any"excess"generated"by"the"levy"is"returned"to"Win"1"for"use"at"the"discretion"of"FC."" "4""Table(4:(Option(two(–(specific(system(wide(levy(for(genebanks(in&$&million&"2017( 2018( 2019( 2020( 2021( Total(Genebanks"budget" 30.54" 29.84" 28.03" 25.56" 23.75" 137.72"Contribution"from"Endowment" 6.75" 9.06" 11.53" 13.35" 15.03" 55.72"Contribution"from"CGIAR"Fund" 23.79" 20.78" 16.5" 12.21" 8.72" 82.00"" " " " " " "Scenario(1(" " " " " "Genebanks"Levy"at"2%" 20.00" 20.00" 20.00" 20.00" 20.00" 100.00"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 3.79" 0.78" (3.50)" (7.79)" (11.28)" (18.00)"" " " " " " "Scenario(2(" " " " " "Genebanks"Levy"at"1.5%" 15.00" 15.00" 15.00" 15.00" 15.00" 75.00"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 8.79" 5.78" 1.50" (2.79)" (6.28)" 7.00"" " " " " " "Scenario(3(" " " " " "Genebanks"Levy"at"1%" 10.00" 10.00" 10.00" 10.00" 10.00" 50.00"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 13.79" 10.78" 6.50" 2.21" (1.28)" 32.00"" " " " " " "" " " " " " "Notes:"" " " " " "1."Estimated"CGIAR"Funding" 1,000" 1,000" 1,000" 1,000" 1,000""2."To"be"presented"as"a"fixed"levy"for"5"years,"separate"from"system"costs"" "3."Net"excess"at"the"end"of"5"years,"can"be"earmarked"and"used"only"upon"approval"of"the"Fund"Council""The"preferred"scenario"is"a"1.5%"levy"on"all"CGIAR"funding,"mainly"because"this"would"not"produce"highly"excessive"collection,"but"also"because"it"would"be"a"good"optics"ratio"to"distinguish"from"the"admin"2%."However,"if"the"Endowment"Fund"performs"below"the"predicted"level,"there"is"a"risk"that"Window"1"would"have"to"pay"more.""" " " " " " " " " "Our"third"option"(Option(3)(examines(similar"system"wide"percentage"scenarios"but"these"are"calculated"on"a"reduced"projected"total"income"of"900"m"USD"(see"table"5)."( (5""Table(5:(Option(three((same(as(option(two)(with(10%(reduced(CGIAR(funding(projection(in&$&million&"2017( 2018( 2019( 2020( 2021( Total(Genebanks"budget" 30.54" 29.84" 28.03" 25.56" 23.75" 137.72"Contribution"from"Endowment" 6.75" 9.06" 11.53" 13.35" 15.03" 55.72"Contribution"from"CGIAR"Fund" 23.79" 20.78" 16.50" 12.21" 8.72" 82.00"" " " " " " "" " " " " " "Scenario(1(" " " " " "Genebanks"Levy"at"2%" 18.00" 18.00" 18.00" 18.00" 18.00" 90.00"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 5.79" 2.78" (1.50)" (5.79)" (9.28)" (8.00)"" " " " " " "Scenario(2(" " " " " "Genebanks"Levy"at"1.5%" 13.50" 13.50" 13.50" 13.50" 13.50" 67.50"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 10.29" 7.28" 3.00" (1.29)" (4.78)" 14.50"" " " " " " "Scenario(3(" " " " " "Genebanks"Levy"at"1%" 9.00" 9.00" 9.00" 9.00" 9.00" 45.00"Balance"to"be"funded"by"(excess"to"be"returned"to)"window"1" 14.79" 11.78" 7.50" 3.21" (0.28)" 37.00"" " " " " " "" " " " " " "Notes:"" " " " " "1.Estimated"CGIAR"Funding" 900" "900" "900" 900" "900""2."To"be"presented"as"a"fixed"levy"for"5"years,"separate"from"system"costs"" "3."Net"excess"at"the"end"of"5"years,"can"be"earmarked"and"used"only"upon"approval"of"the"Fund"Council""In"Option"3"the(preferred(scenario(is(a(2%(rate.(The"advantages"here"are"that"a"moderate"excess"would"be"generated,"which"could"be"used"as"a"buffer"should"the"Trust"not"get"up"to"speed"with"its"commitments"as"projected.""Our"Option(4"could"be"any"of"the"above"options"but"including"the"costs"for"strengthening"Germplasm"Health"Units"(GHUs)"associated"with"the"Genebanks,"as"recommended"by"ISPC."The"rationale"(outlined"in"the"CGIAR"Genebank"Options"Paper"for"FC"13)"is"as"follows:\"The"costs"of"testing"and,"to"a"small"degree,"disease\cleaning"of"germplasm"to"and"from"the"genebanks"is"already"included"in"the"essential"operating"costs"of"the"genebanks."What"the"Options"paper"is"asking"to"be"considered"in"addition"to"this"is"the"following:"• External"review"and"establishment"of"minimum"quality"management"systems"for"GHUs"(CIP"and"CIMMYT"are"ISO"certified/accredited"and"so"already"have"a"strong"QMS)."Cost:"approx"USD500,000/yr""6""• Capacity"building"of"national"phytosanitary"units"in"host"countries."Cost:"approx"USD"150,000/yr"• Upscaling"rate"of"throughput"and"upgrading"equipment."Cost:"approx"USD500,000/yr"• Research"for"better"diagnostics,"disease"cleaning,"protocols,"etc."Cost:"approx"700,000/yr"Total"(additional)"cost"of"option"4"would"be"USD"2,220,000/yr"or"USD"11,100,000"for"5"yrs."Option(5(would"be"any"of"the"above"options"but"includes"a"guaranteed"percentage"or"amount"(e.g."$5m/yr)"to"be"earmarked"for"Genebank"support"from"appropriate"new"funding"mechanisms"such"as"the"possible"RCF"(Returnable(Capital(Fund)"presented"to"members"in"the"IF"paper"at"FC"12."(Option(6"would"be"any"of"the"above"but"with"an"additional"initial"investment"of"$2.5m"intended"to"accelerate"bringing"selected"genebanks"up"to"standard"performance"targets"so"that"they"are"eligible"for"Endowment"Fund"support"sooner."Specifically,"the"investment"would"explore"new"ways"of"improving"the"efficiency"of"genebanks"particularly"those"that"are"difficult"to"maintain"such"as"clonal"crops,"absorb"a"lot"of"labour"and"land"costs"and"are"not"in"the"short"term"going"to"meet"eligibility"criteria"for"funding"from"the"Trust.""Selected"genebanks"would"benefit"from"having"material"genotyped"and"phenotyped"to"validate"identity,"quantify"diversity,"eliminate"duplicates"and"validate"geo\referenced"material."(Option(7(would"be"business"as"usual"i.e."Top"slicing"Win"1,"and"leaving"open"a"sub"window"in"Win"2"earmarked"for"Genebank"support."" "7"""Table(6.(Summary(table(of(options("" 2017" 2018" 2019" 2020" 2021" Total"All"options"–"projected"$m"from"Trust" 6.75" 9.06" 11.53" 13.35" 15.03" 55.72"All"options"–"minimum"required"$m"from"Fund"23.79" 20.78" 16.50" 12.21" 8.72" 82.00"" " " " " " "Option(1(–(Increase(CSP( " " " " " "New"CSP"%" 4.13" 3.83" 3.39" 2.97" 2.62" "Option(2(–(Genebank(levy(1.5%1( " " " " " "$m"balance"funded"by"W1/W2""(or"excess"returned"to"W1)"8.79" 5.78" 1.50" "(2.79)""(6.28)"7.00"Option(3(–(Genebanks(levy(at(2%2( " " " " " "$m"balance"funded"by"W1/W2""(or"excess"returned"to"W1)"5.79" 2.78" "(1.50)""(5.79)""(9.28)""(8.00)"Option(4(Plus(funding(GHUs( " " " " " "Additional"cost"($m)" 2.22" 2.22" 2.22" 2.22" 2.22" 11.10"Impact"on"Option"1" 4.35%" 4.05%" 3.62%" 3.19%" 2.84%" "Impact"on"Option"2" 11.01" 8.00" 3.72" (0.57)" (4.06)" 18.10"Impact"on"Option"3" 8.01" 5.00" 0.72" (3.57)" (7.06)" 3.10"" " " " " " "Option(5(–($5m(from(new(source3( " " " " " "Impact"on"Option"1" 3.63%" 3.33%" 2.90%" 2.47%" 2.12%" "Impact"on"Option"2" 3.79" 0.78" (3.50)" (7.79)" (11.28)" (18.00)"Impact"on"Option"3" 0.79" (2.22)" (6.50)" (10.79)" (14.28)" (33.00)"" " " " " " "Option(6(–(Trust(eligibility(sooner( " " " " " "Additional"cost"to"fund"($m)" 1.25" 1.25" 0" 0" 0" 2.50"Revised"Trust"funding4" 6.75" 9.06" 13.35" 15.03" 16.71" 60.91"Revised"required"from"fund" 25.04" 22.03" 13.00" 10.53" 7.04" 77.64"" " " " " " "Option(7(–(top(slice(W1(plus(W2( " " " " " "Basic"required"from"fund" 23.79" 20.78" 16.50" 12.21" 8.72" 82.00"Plus"option"4"additional"cost5" 26.01" 23.00" 18.72" 14.43" 10.94" 93.10"Plus"option"5"new"resources6" 18.79" 15.78" 11.50" 7.21" 3.72" 57.00"""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""1"Based"on"$1"billion"total"annual"CGIAR"funding"2"Based"on"$900m"total"annual"CGIAR"funding"3"Guaranteed"%"or"amount"from"a"new"source"such"as"possible"RCF"4"By"bringing"Trust"contributions"forward"by"one"year"starting"2019"5"GHU"additional"cost"$2.22m/yr"6"Additional"$5m/yr"from"innovative"source"e.g."RCF"8""Recommendations("1. For"the"5"year"period"(2017\2021)"the"Fund"Council"should"commit"to"providing"a"minimum"of"$82m"for"core"genebank"functions"[or"$93.1m"including"strengthened"Germplasm"Health"Units.]""2. Given"that"genebank"core"functions"are"fundamental"to"the"entire"CGIAR"research"effort,"all"CGIAR"funders"should"contribute.""The"fairest"method,"to"avoid"free\riding,"is"to"apply"a"specific"levy"to"all"funding"in"a"similar"fashion"to"the"current"CSP.""This"should"be"agreed"as"a"matter"of"principle"(i.e."option"1,"adding"to"CSP,"is"not"recommended).""3. The"level"of"the"levy"to"be"applied"should"be"set"for"a"period"of"5"years,"starting"in"2017.""This"could"be"anywhere"between"1%"and"2%"depending"on"the"projected"total"CGIAR"funding,"projected"Crop"Trust"contribution,"availability"of"resources"from"new"funding"mechanisms,"and"any"W1"“top\up”"contribution"agreed"by"the"Fund"Council"(options"2"and"3).""4. Strengthening"Germplasm"Health"Units"(GHUs)"should"be"accepted"as"an"integral"part"of"core"genebank"functions"which"raises"the"cost"of"any"option"by"$2.22m/yr."(option"4).""5. Tapping"into"new"funding"mechanisms"for"specific"contributions"for"genebanks"should"be"built"in"where"appropriate"and"feasible"(option"5)""6. Contingent"on"projections"of"Crop"Trust"contribution"availability,"additional"early"investment"($2.5m)"in"upgrading"some"genebanks"to"make"them"eligible"for"Trust"funding"earlier"should"be"considered"as"a"means"of"reducing"overall"costs"to"the"CGIAR"Fund.""(option"6"–"rough"estimates"show"a"saving"of"$4.4m"for"an"investment"of"$2.5m)""7. If"none"of"the"above"recommendations"are"deemed"acceptable,"PRT"recommends"that"the"current"funding"mechanism"of"top\slicing"W1"to"make"up"for"W2"and"Crop"Trust"shortfalls"for"genebank"core"functions"should"be"guaranteed"by"the"Fund"Council"in"order"to"ensure"adequate"long"term"protection"and"rising"standards"of"CGIAR"genebanks"and"collections,"recognising"that"this"recommendation"does"not"solve"the"free"riding"issue"(option"7)""""Acknowledgement(The"PRT"gratefully"acknowledges"the"excellent"input"from"Loriza"Dagdag"(FO)"and"Charlotte"Lusty"(GCDT)"in"the"preparation"of"this"paper. 

Options for funding core activities of the CGIAR Genebanks, 2017-2021

https://cgspace.cgiar.org/bitstream/10947/3851/1/Options%20for%20funding%20core%20activities%20of%20the%20CGIAR%20Gene%20Banks.pdf

Options for funding core activities of the CGIAR Genebanks, 2017-2021

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