Legal Status

The Baa Atoll Conservation Fund is a Trust Fund established under the Public Finance Act of the Republic of Maldives.

The Fund is be governed by the Fund Board of Directors and the Fund Managing Director in accordance with the provisions of the founding documents, these TOR and Rules of Procedure and other applicable laws and regulations.

Purpose

The purpose of the Fund is to co-finance activities that ensure that Baa Atoll is a world class model of atoll ecosystem conservation in accordance with its designation as a UNESCO World Biosphere Reserve. 

Staffing

Administration of the BACF will be provided by the staff of the Finance Division of the Ministry of Environment and Energy.  The Board shall appoint a Managing Director through an open recruitment process to the fund and other positions as considered necessary and within the available resources of the fund.

Use of fund resources

The Fund resources shall be used for covering the Fund’s administrative costs and for funding projects and programs.

The total annual administrative costs shall not exceed 15% of the total annual revenues of the Fund. In the first year of Fund operations, this percentage may be higher to allow for expenditures related to the establishment of the Fund. Administrative costs shall include but may not be limited to expenses for: compensations for members of the Board of Directors, salaries and compulsory social insurance of Fund staff, expenses related to offices rented or owned by the Fund, Fund office equipment and stationary, expenses related to vehicles owned by the Fund, expenses related to outsourced services of the Fund.

After consideration of maintaining a satisfactory operating reserve, at least 85% of the annual total Fund revenues shall be used for funding projects and programs in the following areas:

1. Management of Baa Atoll Biosphere Reserve;

2. Protection, conservation and management of biological and natural resources and biodiversity in Baa Atoll;

3. Livelihood improvements for Baa Atoll residents in line with sustainability and atoll ecosystem conservation policies;

4. Research, awareness raising and education related to protection, conservation and management of biological and natural resources, biodiversity and nature protection in Baa Atoll.

5. Other projects and programs as defined by the Fund’s adopted and published annual and long-term spending policies, provided that such projects and programs are fully supportive and directly linked to the Fund’s purpose

The Fund’s long term spending program shall be based on relevant national policies, as well as relevant policies on the level of Baa Atoll. These include policies in the areas, biodiversity, nature protection, environment, sustainability, livelihoods, land and resource use.

The Fund can participate in co-financing of programs, projects and related activities organized and financed by domestic and foreign financial institutions, international organizations and other foreign legal persons.

Revenues

The Fund shall receive the following type of revenues:

1. Allocations to the Fund from national and subnational government budgets;

2. Allocations to the Fund from foreign, bilateral and multilateral organizations;

3. Voluntary contributions and donations to the Fund;

4. Fees for using, accessing and managing biodiversity and natural resources, as well as protected areas in the Baa Atoll;

5. Fees for managing and promoting the Baa Atoll Biosphere Reserve;

6. Revenues from taxes or charges earmarked to the Fund;

7. Revenues and receipts from managing free resources of the Fund;

8. Revenues from sales of official merchandise;

9. Other sources of funds in compliance with the law.

The Fund shall accept only those revenues which are fully compliant with the Fund’s purpose, pursuant to the Maldivian law.

Financial products offered by the Fund

The Fund shall develop and focus on the following type of financing products: (1) grants, and (2) subsidization of interest payments of commercial loans. As regards interest subsidies, the Fund shall work closely with commercial banks established in the Republic of Maldives.

Promotional materials

The Fund shall prepare different informational and/or promotional materials focused on different target groups such as: the Fund’s authorities, potential project proponents, individuals and/or institutions contributing financially to the Fund, foreign institutions, mass media, etc. 

Reporting

The Fund’s annual report for a given calendar year shall be made available to all interested persons and organizations latest by April 30 of the following calendar year. All annual reports published by the Fund shall be available for download at the Fund’s official website.

Basic provisions on project cycle management 

The Fund shall implement a transparent and fair project cycle management system which shall include the implementation of the following standardized procedures: 1) project identification procedures; 2) project application procedures; 3) project appraisal procedures; 4) project selection procedures; 5) project approval procedures; 6) contracting procedures; 7) project implementation and monitoring procedures; 8) project completion procedures; 9) project evaluation procedures. 

Accounting

The Fund shall set up and maintain a consolidated accounting system satisfying relevant standards established in the Republic of Maldives. Itemized accounting shall be established and maintained. The accounting system shall allow for differentiation and tracking of each separate project financed by the Fund.

All payment documents (payment orders, requests and others) authorizing the disbursement of funds out the Fund’s accounts shall be signed by the Fund Managing Director.

To account for the Fund’s administrative expenses, a separate account shall be maintained. 

Accounting for funds in the above mentioned accounts shall be made on continuous and reported on semi-annual basis. Reports shall be submitted to the Fund Board of Directors.

Audit of the yearly financial statement

A financial audit of the yearly financial statement of the Fund shall be conducted. Such audits shall be conducted by independent, chartered auditors satisfying auditing standards established in the Republic of Maldives.

The auditors shall be selected every year based on an open, public tendering procedure.

Auditors shall receive complete cooperation from the Fund in order to be able to adequately complete their assignment.