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Partnership for Peace Trust Funds

How do Trust Funds work in practice?

Trust Fund projects are funded by voluntary contributions from individual Allies and Partner countries. They typically involve close cooperation with other relevant organizations.

Projects may be initiated by either NATO member states or Partner countries. Each project is led on a voluntary basis by a “Lead Nation”, which is responsible for gathering political and financial support for the project as well as selecting the Executing Agent for the project. There can be several Lead Nations, and a Partner country can also take that role. The beneficiary Partner country is expected to provide maximum support to the project within its means.

Informal discussions with the NATO International Staff help determine the scope of the project. Project proposals set out in detail the work to be undertaken, the costs involved and the implementation schedule. The formal launch of a project is the trigger to start raising funds. Subject to completion of formal legal agreements, work can start once sufficient funds have been received.

Trust Fund projects seek to ensure adherence to the highest environmental, health and safety standards, and recycling of materials is an integral part of many projects. Local facilities and resources are used to implement projects, where possible, so as to build local capacity in the Partner countries concerned, ensuring sustainability.

NATO cooperates actively with other international organizations and other relevant actors on Trust Fund projects to ensure coherence and effectiveness, as well as to avoid duplication of efforts. For example, NATO has to date cooperated closely with the International Organization for Migration (IOM) which acts as the Executing Agent for the retraining Trust Fund projects in the Balkans; the United Nations Development Programme (UNDP); the European Commission (EC); and the Organization for Security and Co-operation in Europe (OSCE).