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Although we have tried to use plain English content on the site, you may come across specialist terms and acronyms. Find out what they mean in our glossary of terms.
If you come across a term that isn't included in the Glossary please send us an email.
The Pacific Security Fund (PSF), coordinated by the Ministry of Foreign Affairs and Trade (MFAT) is an interagency pool of money drawn on by Government departments and agencies to advance or protect New Zealand’s security interests by reducing risks from threats arising in or operating through Pacific Island countries.
The Pacific Security Fund was approved by Cabinet in September 2003 with an established $2m budget. It was baselined at $3m in the 2004 budget.
Projects under the Pacific Security Fund are considered in light of the Pacific Security Strategy, and is linked Risk Management Framework. Recommendations for projects are externally assessed and agreed by the interdepartmental Pacific Security Coordinating Committee. The fund is managed by MFAT. For an application form, please follow this link.
The Pacific Security Fund complements Departments’ routine engagement with Pacific partners. It also works alongside and complements the New Zealand Agency for International Development’s (NZAID) work in the Pacific.
Cabinet noted that the Fund is to be used for one-off or contingency activities in the Pacific. It will fund initiatives that generally do not fit within NZAID’s policy framework or priorities, and which cannot “generally” be funded from agency baselines. The Fund also may be used for “pilot” projects, or to provide seed funding for longer-term projects.
New Zealand Government Departments or Agencies can apply for funds. These funds may be for activities carried out by that department or agency itself, or for activities carried out by a third party/ e.g. The Pacific Forum Secretariat.
The first point of contact for this fund is the Pacific Security Coordinator in the Pacific Division of the Ministry of Foreign Affairs and Trade. The Department or Agency should submit a detailed project proposal. Guidelines for these proposals are given in the attached sheet. The proposal needs to include a statement of outcomes, a work plan, and a detailed budget.
Departments or agencies should have no expectation that if they embark on work underpinning a project proposal then that proposal will be funded. No funding guarantees can be given as some proposals (no matter how good they are) may either never be funded, or have funding effectively deferred into future years because of the prioritisation process undertaken by the Committee.
However, this does not preclude departments or agencies bidding for funding to develop a proposal.
The Committee will usually consider formally detailed project proposals three times yearly: in June and in October/November, and March. It should be noted that a third round may not be needed if there is already a full commitment of available funding, or a rigorous prioritisation exercise may be required to match the funding availability.
In advance of these formal considerations, Departments and Agencies should discuss project development with the Pacific Security Coordinator in the Ministry of Foreign Affairs and Trade.
Where a proposal is of a semi-urgent nature, the Committee can decide to recommend the proposal inter-sessionally. This facility is used only in extraordinary circumstances.
The Pacific Security Coordinating Committee will consider ideas for projects. Detailed project proposals will be assessed by the Committee against the Pacific Security Strategy, and its associated Risk Management Framework.
During the preparation of the detailed project proposals, an independent evaluator will assist Departments and Agencies ensure good project design. The evaluator’s comments will also be available to the Committee.
The Pacific Security Coordinating Committee will recommend projects for approval by the Ministry of Foreign Affairs. The Cabinet External Relations and Defence Committee (ERD) and Officials (Committee for) Domestic and External Security Coordination (ODESC) will be kept informed of expenditure under the Fund.
Clear identification of the objectives, which are in line with the Pacific Security Strategy, and which contribute to reduction of risks arising in, or operating through, Pacific Island countries.
Good project design, with clearly identified outcomes and well thought out activities, and with sustainable benefits to New Zealand and to the Pacific Island Countries (PICs) where appropriate.
A ‘whole of agency’ approach to the project.
Solid partnership with, and buy-in from, Pacific counterpart(s), and assurance that partners have appropriate infrastructure to support the project.
Strategies in place to manage risk, to evaluate, measure, and report outcomes.
New Zealand Department/Agency capacity and counterpart capacity to carry out the project.
A detailed budget, including breakdown of personnel costs, travel and accommodation costs.
Projects under the Fund are authorised after a standard Memorandum of Understanding is signed between the Ministry of Foreign Affairs and the implementing Department or Agency. This is a similar text to that used for projects funded by NZAID.
Departments or Agencies are expected to fund projects out of operating funds in the first instance, with reimbursement made once the project, or phase of the project, is completed and an invoice is forwarded to MFAT. Funding allocation will be assessed against the principle of ‘as economical as possible’.
The Government appropriates the Fund annually. Departments need to carefully consider the amount of funding they require and when it will be required, to enable MFAT to manage the Fund within the annual appropriation cycle.
Funding is approved for an agreed amount and for a specific financial period. There is no guarantee that new or additional funding will be available; for related/on-going projects; in the event of a cost overrun; in the event of project slippage or deferment resulting in funding being required in a financial period for which the original project was not approved. In the latter situation, the project will need to be re-submitted and assessed against other project priorities.
Any portion of the funding not required for the specific requirement, for which the approval was given, must not be used for any other purpose.
The Department/Agency must inform the Pacific Security Coordinator of any slippage, under-spend or over-run at the earliest opportunity, so that Fund management and prioritisation can be undertaken in a timely manner.
Departments and Agencies will need to update the Pacific Security Coordinating Committee on progress at regular PSCC meetings. The Coordinator requires reports from agencies to prepare a report for the regular (ODESC) meetings.
Departments and Agencies will need to ensure an End of Project Evaluation form is received by MFAT at the completion of each project. The same form can be used for Interim Reports at the end of each financial year for projects which are multi-year funded.
