The new General Agreement provides for the launch of a new programme on Institutional University Co-operation (IUC), which was formally created by a Special Agreement on 16 May 1997. The IUC programme aims at the establishment of long-term co-operation between Flemish universities and a number of privileged partner institutions in the Third World with the overall aim of contributing to the institutional strengthening of these partner universities. The Agreement stipulates that as from 1999 at least 80% of the funds for projects abroad will be earmarked for institutional co-operation with priority centres. Furthermore, 50% of these funds are to be allocated to programmes in Sub Sahara Africa. The Global Programme on Institutional University Co-operation (1997 -2000) has been approved by VLIR on 14 October 1997 and has subsequently been extended. In principle the co-operation with a partner university covers a period of maximum ten years: two time blocks of five years each. For each time block of five years a partner programme is to be drafted. Goals have to be defined within a timeframe of five years. Main principles and core requirements forming the basis of the IUC programme include the following: (1) Long-term co-operation; (2) Focus on the institutional needs and priorities of the partner universities in the South; (3) Ownership; (4) Concentration, and; (5) Donor co- ordination. The IUC programme is in principle demand-oriented, and seeks to promote local ownership through the full involvement of the partner both in the design and implementation of the programme. The programme relates to only a few carefully selected partner universities in the South, hoping that synergy, added value and greater institutional impact can be achieved through the different IUC sub-programmes / projects located in the same partner university. Up till now, 11 universities have been selected as IUC partner university, making up for 10 partner programmes (one partner programme has the set-up of a network):

Africa
* Tanzania: Sokoine University of Agriculture (SUA)
* Tanzania: University of Dar es Salaam (UDSM)
* Zambia: University of Zambia (UNZA)
* Kenya: University of Nairobi (UNBI)
* Zimbabwe: University of Zimbabwe (UNZI)
Latin America
* Bolivia: Universidad Mayor de San Simon (UMSS)
* Ecuador: Escuela Superior Politecnica Del Litoral (ESPOL)
Asia
* Vietnam: Can Tho University (CTU)
* Vietnam: Hanoi University of Technology
* the Philippines: the network of the Saint Louis University id (SLU) and Benguet State University (BSU).

IUC support is directed towards the institutional development of the partner university, the improvement of quality of local undergraduate and postgraduate education, and the encouragement of south-south academic and research linkages. Each partnership consists of a coherent set of interventions geared towards the development of the teaching and research e capacity of the university, as well as its institutional management. Apart from direct support to
the improvement of education and research the partnership can also contain components which are aimed at improving the organisation, the administration and the management of the university as a whole.