The IFAD/NGO Extended Cooperation Programme (ECP) was created in September 1987, during the Thirty-First Session of the Executive Board (EB87/31/R.53). Its purpose has been to enhance IFAD’s direct collaboration with NGOs in the promotion of participatory and community-based rural development and poverty alleviation and to encourage recipient governments to build upon the experience and know-how accumulated from the activities of NGOs and to engage, themselves, in dialogue and collaboration with these organizations.

The principle objectives of the ECP have been to:

• extend direct grant financing in support of innovative pilot activities by NGOs which can provide prototypes and instruments of intervention for ongoing or future IFAD loan operations;
• offer IFAD opportunities to tap valuable NGO experience and know-how in order to improve its own approaches in the identification, design, implementation and evaluation of its projects and thus contribute to increased responsiveness and sustainability of its development operations;
• contribute to the development of a repository of relevant experience and know-how in operational and strategic issues and thus enhance IFAD’s role as a knowledge institution on rural poverty and its alleviation; and
• build durable partnerships and maintain regular consultations and dialogue with a family of development NGOs that can assist IFAD’s strategy articulation and choice of project interventions.

ECP-supported activities by NGOs have focused primarily on three major areas:

• identifying, testing and disseminating appropriate/innovative technologies for application to the agro-ecological and socio-economic conditions of IFAD’s beneficiaries;
• identifying and testing appropriate/innovative institutional approaches/mechanisms in various sectors and sub-sectors of interest to IFAD to ascertain their relevance, acceptability and sustainability; and
• carrying out knowledge gathering and dissemination activities and training programmes for improved management of resources through, inter alia, the creation of more effective systems of organization, based on viable grass-roots organizations, such as farmers’ groups, water users’ associations and other forms of grass-roots networks.

The above areas have also involved identification of potential NGO partners and support for advocacy activities regarding rural-poverty-related issues.

In addition, in line with, and in furtherance of its objectives, the programme has supported periodic and regular IFAD/NGO Consultations on policy and operational issues pertaining to rural poverty alleviation and development

Another important feature of the ECP is that it forms a direct link between IFAD and NGOs with the consent of the host government. In this way, it contributes both to harmonized action and to mutual recognition and appreciation among the partners involved, which, in turn, encourages governments to build upon the experience and know-how accumulated from the activities of NGOs.

ECP support has been increasing steadily, from an initial allocation of USD 350 000 in 1988 to USD 2.5 million in 2003.As of 31 December 2003, 273 ECP grants had been made to NGOs, representing a total commitment of approximately USD 18.6 million. Each year, IFAD extends 20-30 ECP grants. The ceiling for each grant has been set at USD 100 000.

As of 2004, the IFAD/NGO Extended Cooperation Agreement has been abolished. Under IFAD's new Policy on Grant Financing, NGOs and Civil Society organizations are not limited to a specific facility, but can apply for support under the Fund's overall grant pgoramme. Procedures and guidelines to that effect are under preparation.