EuropeAid

CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE EUROPEAN DEVELOPMENT FUND

Raul Mateus PaulaEuropeAid – Centralised Operations

Thessaloniki 14 September 2008

EuropeAidStructure of the Presentation

1. Basic framework of the EDF and European Development Policy

2. Transition from the 9th EDF to the 10th EDF3. Opportunities arising from implementation of the

9th EDF4. Forms of Opportunities5. Vision for the 10th EDF

o Programming processo Financial resourceso Sector Breakdown

EuropeAidEDF for the ACP Group of States

• 77 (78) ACP countries representing +/-750 million people

• 12% of world population but only 1,1% of World domestic product

o Major political, economic, social, environmental challenges, 41/50 LDCs

o Africa = the region least likely to meet the MDGs by 2015

EuropeAidTransition to the 10th EDF – from the past 50 Years of EDF

01020304050607080

Nombre de pays ACP

Nombre de PTOM

EuropeAidTransition to the 10th EDF – from the past 50 Years of EDF II

Evolution des allocations en faveur des ACP et des PTOM

(en millions d'euros)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

Traité de

Rome

Yaoundé I Yaoundé II Lome I Lome II Lome III Lome IV Lome

IVbis

Cotonou

FED 1 FED 2 FED 3 FED 4 FED 5 FED 6 FED 7 FED 8 FED 9

EuropeAidThe European Development Policy

• Scaling up of Aido Barcelona commitments (2002) for Monterrey

• EU ODA target 0,51% of GNI in 2010 • EU ODA target 0,70% of GNI in 2015

o Africa strategy (2006): collectively, 50% of ODA increase to Africa

o Aid for trade strategy (2005): increase collective effort from €1 to €2 billion per year by 2010

• Aid effectivenesso Paris Declaration on aid effectiveness (March 2005)o Council conclusions on joint programming (April 2006)o Council conclusions on division of labour (May 2007)

EuropeAidEuropean Development Policy – Africa Partnerships

• Lisbon Summit in December 2007 took concrete decisions in establishing the Africa-EU Partnerships in the following areas:

1. Peace and Security2. Democratic Governance and Human Rights3. Trade and Regional Integration4. Millenium Development Goals5. Energy6. Climate Change7. Migration, Mobility and Employment8. Science, Information Society and Space

EuropeAidEuropean Development Policy – Africa Partnerships II

• Africa –EU Partnership on Infrastructure – the first one created and already operational through the EU-Africa Infrastructure Trust Fund• Concept: Facilitate the blending of grant resources from

the Commission and EU member States with the lending and technical capacity of the EIB and Development Financiers•Means: Interest rate subsidies, Technicial Assistance

(preparatory work, EIA, project supervision and targeted capacity building); Direct grants (for substantial social and environmental benefits) and Insurance premia for launching of projects

EuropeAid

Economic Development& Regional Integration

SustainableDevelopment &

Poverty Reduction

Aid EffectivenessCoherence, Coordination, Harmonisation & Alignment

Regional EconomicInfrastructure

Management ofregional & nationalnatural resources

National Infrastructure& Access to

basic services

InfrastructurePartnershipTrust Fund

RIP

Water/EnergyFacilities

NIP

EU Infrastructure Partnership & EU Water & Energy InitiativesPolicies, Partnerships, Priorities

Government

Local &Municipal

CapacityBuilding

Infrastructureprovision

River Basin OrganisationsRegional power pools

National managementof resources

Development Objective Activities Instruments

EuropeAidImplementation of the 9th EDF

•The 9th EDF is the first EDF in history that has been fully committed before the beginning of the next EDF period

•The year 2007 saw a record in EDF commitments – totalling to 3.6 billion Euro

•The contracting period for all commitments made in 2007 are the years 2008 to 2010 and thus the opportunities arising from the 9th EDF will continue during the 10th EDF period

EuropeAidImplementation of the 9th EDF II

Totality of 9th EDF Resources

Level of Implementation Euro mio %

National and Regional Programmes

(Managed in EC Delegations)

10.300 82

Intra ACP Programme

(Managed by EuropeAid C/4)

1.116 9

Other intra ACP

(EIB and Water and Energy facilities)

1.712 9

Total of 9th EDF 12.471 100

EuropeAidImplementation of the EDF – role of HQ and Delegations

• AIDCO is responsible for all the stages of the project cycle which ensure the implementation of the programming and reaching the overall objectives as defined by RELEX and DEV.

• Delegations worldwide are responsible for the implementation of external aid. Delegations design projects and activities, prepare annual programmes, tender for contractors and implement and supervise implementation

EuropeAidForms of Opportunities

• Implementation modalities for the EDF are: services (including the framework contracts), supply and works contracts

• All service tenders above €200 000 Euro are forecasted in the internet – which is a good way of foreseeing opportunities arising

• Local tenders are published in local media and in the internet

• All tenders, are published in the Offcial Journal and in the web page

EuropeAidForms of Opportunities – WEB site for information

• http://ec.europa.eu/europeaid/cgi/frame12.pl

• "Quick search" to see all tender opportunities and calls for proposals published during the last 10 (calendar) days.• Search by Reference, Programme, by Country • Search by Status:

o "FORECAST" to consult projects which are expected to be put to tender

o "OPEN" to consult projects for which a procurement notice or a call for proposals is currently published and for which you may apply

o "CLOSED" to consult old projects• Select the type of procedure :Supplies, Works or Services

EuropeAid

EuropeAidForms of Opportunities – Practical Guide

http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm

SERVICES ≥ €200 000

International

Tender

€200 000 – 5000

Framework

Contract

≤€5000

Single Tender

SUPPLIES ≥€ 150 000

International Open

Tender

≥ €150 000 - €30 000

Local Open Tender

≥€ 30 000- 5000

Simplified Procedure

≥€ 5000

Single Tender

WORKS ≥€ 5 000 000

International Open

or restricted Tender

≥€ 5M≥€ 300 000

Local Open tender

≥€ 300 000 – 5000

Simplified Procedure

≥€ 5000

Single Tender

EuropeAidForms of Opportunities – Framework Contracts

Framework Contracts:

Currently ongoing framework contracts• Framework Contract BENEF : valid from 16.09.2005 up

to the 15.09.2009• Framework Contract Commission 2007 : valid from

16.01.2007 to 15.01.2009• Framework Contract Audit 2006 : valid form 20.7.2007 to

19.7.2009

Prior to the end of the validity of the ongoing frameworkcontracts, tenders will be launched to create replacements

EuropeAidForms of Opportunities – Framework Contracts II

• Framework contracts retain a number of consultancy companies available to provide services to the Commission on short notice.• Contracts between €5000 – 200 000• Contractual conditions pre-agreed as well as minimum-

maximum prices for different levels of expertise• Simple contracting and payment structure• Benefit to the commission is fast processing and for the

consultancy companies steady flow of business - when active in offering expertise.•More information on:

http://ec.europa.eu/europeaid/work/framework-contract/index_en.htm

EuropeAidForms of Opportunities – 9th EDF vs 10th EDF

Project stage 9th EDF 10th EDF

Programming X

Identification X

Financing

Agreement

X

Implementation X

Evaluation X

EuropeAid10th EDF Legal Bases

• Revised Cotonou Agreemento ACP-EC Council of 25.6.2005, requires ratificationo Major changes:

• Enhanced political dialogue • Scope Investment Facility extended• Eligibility of local authorities, Parliaments, non-

State actors • Flexibility to increase allocations in case of special

needs • Possibility for the Commission to manage

resources in crisis situations • More strategic role “National Authorising Officer”

EuropeAid10th EDF Legal bases II

• Multi-annual financial framework 2008-2013o ACP-EC Council of 2.6.2006 o Major changes:

• National and regional indicative programmes• Intra-ACP indicative programme• Decommitments from previous EDFs no longer

automatically transferred• Sunset clause

o Deadline for EDF10 commitments: 31.12.2013o Synchronisation of programming cycles

EuropeAid10th EDF Aid Allocation Criteria

Quantitative Criteria:o Aid efficiency

• Aid absorption capacity: corrected for aid dependency ratioo Economic performance

• Investment climate, Sustainable macro-economic performance and exhaustion of non renewable natural resources

o Social performance • Budget structure and Progress towards MDGs in Health and

Educationo Mid-term review:

• ∆+/- A envelope• ∆+ B envelope (for post-conflict countries)

EuropeAid10th EDF Aid Allocation Criteria II

• Regional envelope:

o Starting point 13% of underlying NIPsCorrections:

• Vulnerability, intra-regional trade, performance (MTR reallocations)

• Functional cooperation (PIN/PIR in Carribean & Pacific regions; CEPGL)

o Topping up of 25% for timely implementation of the EPA

• Intra ACP 12.3% of the total EDF Allocation

EuropeAid10th EDF Programming Guidelines

• Ownership & participation• Harmonisation & Coordination

o Common framework for country strategy papers• Country diagnosis: joint analysis?• Assessment of past and present cooperation and lessons

learned• Response strategy: joint response? Donor matrix?• National indicative programme (EC work programme)

• Concentration within the NIPo General budget support (GBS)o 2 concentration areas on top of GBSo Maximum 15% for non focal area activities

EuropeAid10th EDF Programming Guidelines II

• Intra ACP Programme based on the principles of subsidiarity, complementarity and visibility

• Intra ACP Envelope 2.700.000.000 Euro in total

• Programme is divided into the following categories:1. Institutional and Support Expenditures2. Supra-Regional ACP initiatives

All ACP initiativesPan African initiatives

3. Global initiatives4. Reserve

EuropeAid10th EDF Multiannual Financial Framework 2008-2013

EDF10 (*) % of total% of

sub-total

1. National and regional cooperation 17.766 80,9% 100,0%1.1 National indicative programmes A-envelopes (programmable funds) 13.500 76,0% - initial indicative allocation 10.800 60,8%

- governance incentive tranche 2.700 25,0% 15,2%

B-envelopes (unforeseen needs) 1.800 10,1% - initial allocation (2008-'09) ** 601 3,4%

- additional resources for B-envelope replenishment 1.199 6,7%

1.2 Regional indicative programmes (~13% A-envelope) 1.783 10,0%1.3 Reserve for unforeseen needs NIP/RIP allocations 683 3,8%2. Intra-ACP cooperation 2.700 12,3% Sub-total managed by the Commission 20.466 3. Investment Facility (managed by the EIB) 1.500 6,8% Sub-total operational credits ACP 21.966 100,0% OCT (incl. investment facility) 286 1,3% OCT/ACP

Support expenditures 430 2,0% support/operat

Total ACP+OCT+support 22.682(*) Amounts in italics = those mentioned in the multi-annual financial framework 2008-2013

EuropeAid10th EDF Programming Process

• CSPs and NIPs71 CS/NIP adopted or in the process of being adopted6 CSP/NIP delayed due to specific circumstances

• 6 RIPs expected to be submitted to the EDF Committee in the 2nd semester 2008

• Intra ACP Strategy paper to be submitted to the EDF Committee in the 2nd semester 2008

• All finalised strategies are available in the web site

EuropeAid

EuropeAid

10th EDF programming Results at country level - Sector Breakdown

Sector breakdown EDF9 - EDF10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EDF9 initial EDF9 MTR EDF10

Sect

or s

hare

in N

IP A

-env

elop

e

General budget support

Other

NSA

Social cohesion

Education

Health

Agriculture, ruraldevelopment, food securityEnvironment

Water & energy

Transport infrastructure

Economic growth, incltrade & regional integrationDemocratic governance,incl peace & security

EuropeAid

10th EDF programming Results - Sector Breakdown

Examples of opportunities under the main sectors:

1. Budget Support: PEFA and other PFM assessments, almost always accompanied with PFM capacity building programmes

2. Democratic Governance: Technical Assistance Intensive field of work

3. Water, Energy and Transport Infrastructure investments necessitate design, implementation of supervision as enabling technical as stance components.

4. Economic growth, trade and regional integration agenda taken forward through provision of technical assistance

EuropeAid10th EDF programming Results - Sector Breakdown II

Examples of opportunities under the main sectors, cont…:

5. Agriculture, rural development, food security, environment, health, education all include technical assistance needs to development and implement policy

6. On all sectors on intervention project management/implementation creates opportunities (PMUs)

….10th EDF tenders will begin to appear in the WEB forecast in late 2008 early 2009

EuropeAid10th EDF Implementation – Financial Forecast 2008 - 2009

• Implementation of the 10th EDF may only being once the legal bases is approved and ratified by Member States and ACP States – expected in July 2008

• Due to the “late start” the Financial Forecast for 2008 is of 3 Billion Euros in New Commitments

• The Intra-ACP 10th EDF Financial Forecast for 2008 is currently foreseen at 336 Million Euro

EuropeAidWay Forward

• Aid effectiveness agenda as a dynamic and open process• EU Code of Conduct on Complementarity and Division of

Labour in Development Policy• EDF10 implementation horizon:

o High level meeting on aid effectiveness, Accra, Sept. 2008o Mid-term review, spring 2010

• Change of strategy? • Progress towards division of labour? Co-financing?

o Overall performance review, fall 2010o End-of-term review, spring 2012

• Aid re-allocation in function of performance and absorption capacity

EuropeAidThank You!

Raul.Mateus-Paula@ec.europe.eu

Head of UnitCentralised Operations for the ACP Countries

Tel: +32 2 295 9278