EEPP Program Support Unit 

EPF Operating Manual   General Principles 

Preparation of/and Adjustments to the Annual Operating Plan 

The Annual Operating Plan is prepared by the EPF staff in advance of the Fund's project 

cycle.  The draft Plan is submitted to the FMC for review and approval. 

The Annual Operating Plan provides an indicative proposal for disbursing the EPF's funds 

during the course of the project cycle.  However, it may be necessary to make adjustments in 

either the shares allocated to each expenditure category (or within categories) or in the total 

amount of disbursements during the year.  Adjustments may be made for any of the following 

reasons: i) unanticipated needs for EEAA support;  ii) expenditures to address emergency 

environmental problems (for which the Fund maintains a reserve); iii) inadequate demand for 

certain types of Fund support (e.g., shift of allocations to soft loans or grants because of low 

demand for interest subsidies); or vi) changes in revenue projections.  

Adjustments to the Annual Operating Plan are made in three ways. 

First, changes in allocations necessitated to support unanticipated expenditures may be 

proposed by the Chair of the FMC and discussed at a regular or special meeting of the 

FMC.   

Second, the Fund Manager will report to the FMC on Fund income and expenditures 

projections.  The Fund manager may propose disbursement adjustments to the Annual 

Operating Plan as needed based on the performance results obtained from the 

implementation of the current annual plan.  

Third, during the FMC's review of competitive project applications, allocations among 

soft loans, interest subsidy and grant disbursements may be made on the basis of the 

number, quality, and costs of applications.  

None of these adjustments requires the Fund to modify the current year's approved Annual 

Operating Plan.  In the event that the adjustments have a significant impact on the 

competitive projects program (for example, significantly fewer projects are selected and 

supported than expected), this information will be communicated by the Fund to applicants of 

projects under consideration. 

EEPP PSU 

26 

INTERNATIONAL RESOURCES GROUP