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Find MFAT's information paper on a country or territory. (We don't have information papers on all countries.)
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), is available to New Zealand Government departments and agencies to undertake activities that will advance or protect New Zealand’s security interests by reducing risks from threats arising in or operating through Pacific Island countries. Administered by the Ministry of Foreign Affairs and Trade (MFAT) the PSF allocation for 2009/10 is $3m.
Projects under the Pacific Security Fund are considered in light of the Pacific Security Strategy, and a Risk Management Framework. Recommendations for projects are both externally assessed and scrutinised by an interdepartmental Pacific Security Coordinating Committee (PSCC). The PSCC process is managed by MFAT. See below for an application form
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.
The Fund is used for one-off or contingency security initiatives in the Pacific that 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 PSF funds. The funds may be for activities carried out by a department or agency itself, or for activities carried out by a third party, e.g. The Pacific Forum Secretariat or other regional agencies.
The department or agency concerned should submit a detailed project proposal to the Pacific Security Coordinator in the Pacific Division of MFAT. Guidelines for proposals are provided in the application form available through the link cited above. Proposals need to include a statement of proposed objectives and 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 the proposal will be funded. No funding guarantees can be given as all proposals are subject to both the external assessment process and the deliberations of the PSCC. However, this does not preclude departments or agencies bidding for funds to develop a full proposal through an initial scoping process.
The Pacific Security Coordinating Committee will usually consider formally detailed project proposals four times a year: in February, May, September and December. It should be noted that a fourth 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 making formal proposals, departments and agencies should discuss project development with the Pacific Security Coordinator in MFAT.
Should an urgent situation or a security emergency arise, the Committee can decide to recommend a proposal inter-sessionally. This facility is used only in extraordinary circumstances.
Ideas for projects should first be discussed with the Pacific Security Coordinator in MFAT. Detailed project proposals will be assessed by the PSCC against the Pacific Security Strategy, and its associated Risk Management Framework. An independent assessor will evaluate all proposals and may assist departments and agencies in order to ensure good project design. The assessor’s comments will also be provided to the Committee.
The PSCC will recommend projects for approval by the Deputy Secretary of Foreign Affairs responsible for Pacific policy. Ministers will be kept informed of activities and expenditure under the Fund.
The key factors of a good project are:
Once approved by the MFAT Deputy Secretary, projects under the Fund are formalised through a standard Memorandum of Understanding between MFAT and the implementing department or agency.
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 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 consider carefully 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 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; or 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 priority projects.
Any portion of the funding not required for the specific project for which the approval was given, must not be used for any other purpose unless prior arrangements have been made.
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 project progress at regular PSCC meetings. The Pacific Security Coordinator requires reports from agencies in order to keep Ministers informed.
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.
