Negotiated Partnerships are fit-for-purpose co-investment arrangements with NZ NGO partners through which we will seek to increase our shared development impact.

A three-phased approach will be used to pilot the negotiated partnerships mechanism with New Zealand NGOs.

Phase One

This phase was supported by an NGO reference group comprised of CID member organisations: Oxfam New Zealand, UNICEF New Zealand, Tearfund New Zealand, ADRA New Zealand, and Circuit International (external link).

Three NGOs were invited to participate in the first phase from February 2019, with outcomes expected to be agreed by August 2019. These are:

The process for determining these three partners was as follows:

In January 2019, six larger New Zealand NGOs were identified to potentially join the piloting phase, using two key criteria:

  1. If they had three or more projects approved in the Partnership for International Development (PFID) fund; and
  2. If the total project value was more than $6 million.

These six NGOs were invited to submit expressions of interest in participating in the first phase. New Zealand NGOs on the NGO Reference Group were excluded from the first phase of the pilot.

MFAT assessed the six expressions of interest received using the following criteria: PFID programme size, sectoral focus, geographic focus, PFID funding available/drop-off, and absorptive capacity of funding.

Phase Two

A second cohort of NGOs previously funded through PFID has been identified for the second phase of Negotiated Partnership discussions to commence in 2019.

These organisations meet the phase one criteria: (i) they had three or more projects approved in the PFID and (ii) the total project value of these PFID initiatives was more than $6 million. NGO reference group member organisations were not excluded from the second phase of the pilot as their terms of reference for assisting with the pilot design had come to an end.

In order to determine the order of negotiations, MFAT assessed these NGOs on the following criteria: forecasts of PFID funding changes, sectoral focus, geographic focus and other related information identified during bilateral discussions. The organisations that will begin negotiations in 2019 (additional to the first three partners being piloted under phase one) are:

The process for determining whether a Negotiated Partnership is a suitable funding mechanism is extensive, and being scheduled to begin negotiations does not mean a Negotiated Partnership will be necessarily agreed.

We are conscious that some partners may decide that it is not a fit-for-purpose funding mechanism for them. Whether we will proceed will be determined bilaterally with each partner following exploratory workshops, and comprehensive due diligence and capability mapping (e.g. to determine whether organisations have the ability to work programmatically, undertake contextual analysis, monitoring, evaluation and learning, and work adaptively).

Phase Three  

Subject to the learnings from phase one and phase two of the negotiated partnership process, there may be an opportunity for other NGOs to be considered in 2020. We will continue to keep the sector updated.