There will now be a 'ceiling' imposed on the funds received by the Ministry of Natural Resources and Environment from the Global Environment Facility (GEF) to fund various environmental projects in Malaysia from 2006 to 2010.

The 'ceiling', capped by GEF's new resource allocation framework (RAF), is effective July 1 this year. The United National Development Programme (UNDP), an implementation arm of GEF, will oversee the funds.

Announcing this yesterday, the ministry's deputy secretary-general Dr Nadzri Yahaya (right) said that before the new terms were implemented by GEF, there was no such cap on the expenditure on projects.

"Before they set a ceiling (for funding a project) we used to approve as many projects as we can. But with this ceiling we now have to prioritise and capitalise projects."

"We cannot risk spending all the money on a few projects and finish the money only to realise we have more important projects to do," Nadzri told reporters after participating in a national dialogue on the environment organised by UNDP.

RM83 million from GEF

The dialogue held in Kuala Lumpur yesterday was meant to kick off a series of talks by stake holders such as the government, non governmental organisations (NGOs), businesses and interest groups

Nadzri also said the funds would go hand in hand with the government allocation to the ministry under the Ninth Malaysia Plan.

Over the next four years, the ministry will receive RM83 million (US$20 million)from GEF.

Asked where GEF obtains the funds from, Nadzri said the the money come from developed countries and global financial institutions.

GEF is an independent financial organisation that provides grants to developing countries for projects that benefit the global environment and promote sustainable livelihood in local communities.