end-users), to create better incentives for project success and to avoid moral hazards. GEF should try to avoid taking risks that are not related to its incremental financial role. For this purpose, individual contracts under GEF-supported projects should be accessible to the GEF secretariat and the M&E unit on request. In particular cases, the GEF Secretariat should negotiate legal agreements with the IA implementing or executing the project to ascertain adequate and realistic cost sharing. 271. GEF must make further efforts to ensure real country ownership of its projects and subprojects. Explicit host country approval as well as financial and policy support are required. GEF projects and subprojects must have enthusiastic supporters within the government and the private sector in the host country. 272. GEF needs to develop clear guidelines on the identification and measurement of global environmental benefits in each focal area, also in conjunction with private sector projects. 273. GEF should develop a more rigorous definition of leveraged funding and arrange for the collection of accurate data on the levels of cofunding and leveraged funding achieved. 274. The time between initial proposal and final approval of projects that engage the private sector must be made more predictable and transparent. The GEF Secretariat and IAs should adopt clearer business norms for providing information to project proponents and other stakeholders on the status of project proposals, the anticipated time required for various steps toward approval, and the reasons for any delays. For this purpose, an online project tracking system should be developed. 275. The GEF Secretariat and IAs should have on their staff experts on global environmental issues, business finance, and public sector policies to influence relevant markets. The adequacy of capacity and staff resources should be assessed systematically at project approval, and as required during implementation. 276. GEF should not attempt to enforce on the three IAs an agreement on role and comparative advantages. However, it should work with each of the IAs as well as executing agencies to define the types of projects that are most appropriate to the capabilities and comparative advantages of each agency. 277. Financial intermediaries, fund managers, and similar partners should be selected competitively and on the basis of transparent criteria. The criteria for decisions on how each financial intermediary is rewarded for project success should also be clear and transparent. 278. In cooperation with other GEF entities, the GEF Secretariat needs to distil and compile joint experiences and lessons learned on such issues as financial tools, risk mitigation, credit systems, working with intermediaries, and economic viability of various technology applications and approaches. 279. GEF needs more detailed guidelines on M&E systems for various types of private sector engagement. Subprojects of umbrella projects should submit annual reports on progress towards achieving objectives, including progress on establishing M&E systems.
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