Guidelines on the immediate crisis response clause: an additional tool in the international development assistance toolkit

This guideline is part of the international development assistance (IDA) toolkit. It helps recipient organizations adapt their projects in case of unforeseen crises.

On this page

• Context
• When to use the immediate crisis response clause
• Where the immediate crisis response clause applies
• Activating the immediate response clause
• Step 1 – Approval to start activating the immediate crisis response clause
• Step 2 –Submitting an immediate crisis response plan and revised project budget for approval
• Reporting
• If the crisis lasts beyond 3 months
• If another crisis strikes the same project
• Where the immediate response clause appears in the International Development Assistance Contribution Agreement

Context

This clause was first developed within the Grants and Contributions Transformation Initiative. It shows how the government of Canada safeguards the development projects it funds when a crisis strikes.  The tool provides greater flexibility and timely support to recipient organizations to help protect their development projects when crisis strikes.  

The tool is not designed for supporting long-term crises.  Recipient organizations with development projects in areas facing an ongoing crisis may nevertheless benefit from the clause if a new crisis occurs.

When to use the immediate response clause

Recipient organizations can trigger the clause when there are external, unforeseen emergencies, or unpredictable circumstances in the region where the project is implemented.

For example:

• natural disaster
• epidemic
• famine
• change in political climate

With our approval, a recipient organization can reallocate up to a maximum of 5% of eligible project costs to modify or implement new activities over the short term (maximum 3 months). The purpose of these changes is to safeguard the project’s development outcomes in line with the approved project scope.

Where the immediate crisis response clause applies

We will include the immediate crisis response clause in applicable new contribution agreements and apply it to operational projects.

We won’t make amendments to active contribution agreements. This guideline serves as the formal notification of the change.

The clause does not apply to:

• repayable contributions
• service contracts
• international humanitarian assistance grants
• projects for which the organization would require authorization under the department’s funding covered by for activities carried out in an area controlled by a terrorist group

Activating the immediate crisis response clause

The process to approve the use of this clause involves these two steps.

Step 1 –Approval to start activating the immediate crisis response clause

When a crisis strikes, the recipient organization may submit a written request to 抖淫视频 (through its program lead) for approval to take immediate crisis-response action.

The request should indicate:

• the proposed mitigation measures which will be taken to protect the project’s intended development outcomes (over a maximum of 3 months)
• the expected costs of these measures

Initial assessment of crisis response plan

We will assess whether:

• the organization’s proposed crisis response is in line with the initial approved scope of the project
• the proposed expenditures are eligible and protect the Project

The recipient organization must show how the modified or new activities will protect:

• the project’s assets 
• the recipient organization’s personnel, local partners/implementers and ultimate beneficiaries
• the project’s expected development results, in line with the initial approved project scope

Eligible expenditures

Eligible expenditures protect and support the intended project results. They align with the approved project’s scope and development outcomes. 

Expenditures that do not safeguard the development project are ineligible. This includes international humanitarian assistance expenditures, such as medical care and assistance to refugees/internally displaced persons, deployment of relief supplies.

 Find more information in:

• Guidance on Eligible Costs for Development Initiatives 
• section 4.2.2 of the Terms and Conditions for the International Development Assistance Program: International humanitarian assistance sub-class

Approvals

We will respond to the recipient organization as quickly as possible.

We will indicate whether we approve the proposed mitigation measures.

If approved, the recipient organization can start making urgent expenditures consistent with Step 1.

If the proposed crisis response does not meet the above parameters, we may:

• ask for changes
• approve only some elements
• reject the proposal

Step 2 – Submitting a crisis response plan and revised project budget for approval

Within 30 days of our written approval, the recipient organization must submit a concise crisis response plan (2-3 pages).

Crisis response plan

The crisis response plan must include:

• a description of the urgent actions already taken, consistent with Step 1
• the proposed follow-up actions (over the balance of the 3-month maximum)
• a revised project budget for our approval

The total cost of the plan cannot exceed 5% of the total value of the project’s eligible costs.

Revised project budget

The crisis response plan’s revised project budget must have:

• a new budget column (as well as new budget lines, if applicable) detailing the required reallocation of contribution funds
• actual costs incurred and forecast at the budget line-item level (not exceeding 5% of the total value of the department’s contribution to the project’s eligible costs)
• a description of the impact of the funding reallocation

Budget flexibility

Under normal conditions, recipient organizations can reallocate up to 40% of funds within existing applicable budget line items. These items must be pre-approved project activities.

With the immediate crisis response clause, there are no caps on transfers between budget lines.

With our approval, recipient organizations can modify activities or implement new ones.

New activities must be:

• consistent with the approved project scope
• reasonable
• justifiable

If approved, recipient organizations can reallocate and spend funds up to 5% of the project’s total eligible costs over a 3-month period.

Reporting

After the maximum 3-month period, the recipient organization must report on:

• the actual costs spent on crisis-response actions
• the impact on project results

If the crisis lasts beyond 3 months

If the impacts of the crisis last beyond 3 months, the recipient organization must reassess the project’s needs/feasibility.

The organization may propose additional measures such as project:

• amendment
• suspension
• termination  

If another crisis strikes the same project

If yet another unexpected crisis strikes the same project, the clause can be triggered again. This will launch another set of immediate, short-term mitigation measures. The total reallocations can’t exceed 5% of the total value of the project’s eligible costs over its duration. 

Where the immediate crisis response clause appears in the International Development Assistance Contribution Agreement

You will find the edits to address the new clause in these sections:

• In appendix A, under Project Implementation Roles and Responsibilities, for Department of Foreign Affairs, Trade and Development:
  • 2.1.6 evaluate and respond to the Organization’s crisis response request and plan submitted in accordance with the requirements set out in Sub-Article 2.2.7 below. If applicable, the Department will provide written approval for the associated transfer of funds within the Project Budget, as detailed in the crisis response plan.
  • 2.1.7 consult with the Organization, as appropriate, on implementing the approved crisis response, including collecting data on its impact.
• In appendix A, under Project Implementation Roles and Responsibilities, for the Organization:
  • 2.2.7 in the event of unforeseen emergencies or circumstances that result in a crisis within the region of the Project implementation (for example, a natural disaster, an epidemic, famine or a change in the political climate) (“the crisis”), the Organization may submit a written request to the Department for approval to take immediate crisis-response actions funded by the Contribution. Within thirty (30) days of the Department’s approval of the written request, the Organization shall submit a concise crisis response plan of two to three pages. This plan should detail the urgent actions, consistent with the original approval, that have already been taken, propose follow-up actions and include a revised Project Budget for the Department’s approval. The Department aims to promptly approve or deny the Organization’s written request and crisis response plan, provided they are consistent with the following parameters:
    1. Relevance: The actions and activities must directly protect the Project’s activities, expected results and assets, the Organization’s personnel, local partners, and ultimate recipients, and must be consistent with the approved Project scope.
    2. Duration: The crisis response measures will be implemented for a maximum period of three months. If, after this period, the Project activities continue to be negatively impacted by the crisis, the Organization will reassess the Project’s needs or feasibility and propose additional adjustments. These adjustments may include, among other options, the suspension of certain Project activities in accordance with Article 15 of the General Terms and Conditions - Termination or Suspension for Convenience.
    3. Budget: The Organization’s crisis response plan will include a revised Project Budget with a new column detailing the required reallocation of Contribution funds. The revised Project Budget shall include actual costs incurred and forecast, detailed at the budget line-item level, and a description of how the funding reallocation impacts the Project. The cost of the crisis response plan shall not result in an increase to the Contribution, is limited to the minimum funding required to protect the Project and shall not exceed 5% of the total value of Eligible Costs. This limit applies to all reallocations for crisis response(s) for the duration of the Project.
    4. Reporting on crisis response: The Organization shall report on actual costs spent and on the impact of the crisis response measures.
• In appendix C, under Transfer of Funds within Project Budget, for Organizations transferring funds:
  • To the original text: “1.2.2 After written approval from the Department, for a transfer that represents an increase or a decrease to any budget line item not covered under Sub-Article 1.2.1 above, exceeding forty percent (40%), relative to the amount indicated in Article 2 (Table 1 – Initial Project Budget) below” we added: “or to transfer funds in response to a crisis in accordance with the provisions listed in Sub-Articles 2.1.6 and 2.2.7 of Appendix A”.
• In Appendix D, under the Periodic Financial Report,
  • To the original text: “The Periodic Financial Report shall include the financial information set out in Form A and Form B, presented by the budget lines defined in Appendix C - Project Budget “ we added: “and any subsequent amendment and, if applicable, the Project Budget approved as part of a crisis response plan.”