This document presents the Global Environmental Facility's (GEF) policy on public investment in GEF financed projects. At its meeting in April 1996, the GEF Council approved the principles presented herein as a basis for public involvement in the design, implementation and evaluation of GEF-financed projects. The Council stressed that when applying the principles, there should be emphasis on local participation and local stakeholders, specific conditions in-country should be taken into consideration, and public involvements should be consistent with the provision of the instrument for the establishment of the restructured GEF. This document builds upon previous papers and incorporates comments from consultations; part 1, provides the rationale and definition of public involvement. The basic principles of public involvement are presented in part 2, together with an identification of how the principles will be applied by the Secretariat, implementing agencies, project executing agencies, and other participating in GEF-financed projects.