EEPP Program Support Unit 

EPF Operating Manual   General Principles 

Principles 

The EPF will formulate and implement policies and procedures based on high standards of 

objectivity, accountability, and transparency.  The EPF's use of clearly defined and 

communicated environmental priorities, eligibility and selection criteria, and rigorous 

appraisal procedures will contribute to the Fund's adherence to these principles. Information 

about the Fund's activities will be communicated to applicants, government institutions, and 

the public through a number of mechanisms including the annual report (Section 8), 

application materials, and written correspondence. 

The EPF supports a range of environmental projects proposed in applications submitted to the 

Fund for evaluation on a competitive basis.  The Fund recognizes that there is great variation 

in the capacity of applicants to co finance project costs.  The type of financial support 

required to make an investment or carry out a non investment project also varies from 

applicant to applicant.  To accommodate the range of applications and applicants, the Fund 

manages a Competitive Projects Program (CPP) that utilizes a number of disbursement 

mechanisms: grants, interest subsidies, soft loans, and loan guarantees.  

Specific program priorities and funding levels vary from year to year, depending on the 

Fund's budget and environmental priorities set for the year in the Annual Operating Plan 

(Annex 10). 

Expense Budget of the EPF 

3.3.1  The EPF annual expense budget will be determined according to the Annual 

Operating Plan.  The general guidelines for the expense budget are as follows:  

The total budget amount will represent the amount of money to be spent for the year. 

A reserve account will be maintained to address environmental disasters and pollution from 

unknown sources.  The amount of the reserve account will be decided by the EEAA CEO 

based on technical analysis and recommendations of EEAA specialized staff.  

Additional expense allocations will take place in the form of: 

The Competitive Project Program and the Tender Method 

  both programs accommodate 

the various disbursement mechanisms used to fund environmental projects and define 

selection terms and conditions for each disbursement mechanism that will be used in a 

specified year.  Both programs comprise 60% of the annual EPF expense budget.  The 

respective share of both programs will be allocated in accordance with environmental 

priorities set in the Annual Operating Plan.  

Direct expense items will include: 

Support for EEAA activities and infrastructure up to 25% of the annual EPF 

expense budget and 

ii) EPF administrative costs. 

Allowable expenses that may be supported by the EPF are enumerated in Article 8 of the 

Executive Regulations of Law 4/1994 and are summarized below: 

Addressing environmental emergencies 

EEPP PSU 

8 

INTERNATIONAL RESOURCES GROUP