CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE EUROPEAN DEVELOPMENT FUND

1
CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE
EUROPEAN DEVELOPMENT FUND

• Raul Mateus Paula
• EuropeAid Centralised Operations
• Thessaloniki 14 September 2008

2
Structure of the Presentation

• Basic framework of the EDF and European
  Development Policy
• Transition from the 9th EDF to the 10th EDF
• Opportunities arising from implementation of the
  9th EDF
• Forms of Opportunities
• Vision for the 10th EDF
• Programming process
• Financial resources
• Sector Breakdown

3
EDF 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
• Major political, economic, social, environmental
  challenges, 41/50 LDCs
• Africa the region least likely to meet the MDGs
  by 2015

4
Transition to the 10th EDF from the past 50
Years of EDF
5
Transition to the 10th EDF from the past 50
Years of EDF II
6
The European Development Policy

• Scaling up of Aid
• Barcelona commitments (2002) for Monterrey
• EU ODA target 0,51 of GNI in 2010
• EU ODA target 0,70 of GNI in 2015
• Africa strategy (2006) collectively, 50 of ODA
  increase to Africa
• Aid for trade strategy (2005) increase
  collective effort from 1 to 2 billion per year
  by 2010
• Aid effectiveness
• Paris Declaration on aid effectiveness (March
  2005)
• Council conclusions on joint programming (April
  2006)
• Council conclusions on division of labour (May
  2007)

7
European Development Policy Africa Partnerships

• Lisbon Summit in December 2007 took concrete
  decisions in establishing the Africa-EU
  Partnerships in the following areas
• Peace and Security
• Democratic Governance and Human Rights
• Trade and Regional Integration
• Millenium Development Goals
• Energy
• Climate Change
• Migration, Mobility and Employment
• Science, Information Society and Space

8
European 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

9
Aid Effectiveness Coherence, Coordination,
Harmonisation Alignment
Development Objective
Activities
Instruments
Regional Economic Infrastructure
Infrastructure provision
Capacity Building
Economic Development Regional Integration
Infrastructure Partnership Trust Fund
RIP
Management of regional national natural
resources
River Basin Organisations Regional power pools
National management of resources
Sustainable Development Poverty Reduction
Water/Energy Facilities
NIP
National Infrastructure Access to basic services
Government
Local Municipal
EU Infrastructure Partnership EU Water Energy
Initiatives Policies, Partnerships, Priorities
10
Implementation 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

11
Implementation of the 9th EDF II

• Totality of 9th EDF Resources

12
Implementation 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

13
Forms 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

14
Forms 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
• "FORECAST" to consult projects which are expected
  to be put to tender
• "OPEN" to consult projects for which a
  procurement notice or a call for proposals is
  currently published and for which you may apply
• "CLOSED" to consult old projects
• Select the type of procedure Supplies, Works or
  Services

15
(No Transcript)
16
Forms of Opportunities Practical Guide

• http//ec.europa.eu/europeaid/work/procedures/impl
  ementation/practical_guide/index_en.htm

17
Forms 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
  framework
• contracts, tenders will be launched to create
  replacements

18
Forms 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

19
Forms of Opportunities 9th EDF vs 10th EDF
20
10th EDF Legal Bases

• Revised Cotonou Agreement
• ACP-EC Council of 25.6.2005, requires
  ratification
• 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

21
10th EDF Legal bases II

• Multi-annual financial framework 2008-2013
• ACP-EC Council of 2.6.2006
• Major changes
• National and regional indicative programmes
• Intra-ACP indicative programme
• Decommitments from previous EDFs no longer
  automatically transferred
• Sunset clause
• Deadline for EDF10 commitments 31.12.2013
• Synchronisation of programming cycles

22
10th EDF Aid Allocation Criteria

• Quantitative Criteria
• Aid efficiency
• Aid absorption capacity corrected for aid
  dependency ratio
• Economic performance
• Investment climate, Sustainable macro-economic
  performance and exhaustion of non renewable
  natural resources
• Social performance
• Budget structure and Progress towards MDGs in
  Health and Education
• Mid-term review
• ?/- A envelope
• ? B envelope (for post-conflict countries)

23
10th EDF Aid Allocation Criteria II

• Regional envelope
• Starting point 13 of underlying NIPs
• Corrections
• Vulnerability, intra-regional trade, performance
  (MTR reallocations)
• Functional cooperation (PIN/PIR in Carribean
  Pacific regions CEPGL)
• Topping up of 25 for timely implementation of
  the EPA
• Intra ACP 12.3 of the total EDF Allocation

24
10th EDF Programming Guidelines

• Ownership participation
• Harmonisation Coordination
• 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 NIP
• General budget support (GBS)
• 2 concentration areas on top of GBS
• Maximum 15 for non focal area activities

25
10th 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
• Institutional and Support Expenditures
• Supra-Regional ACP initiatives
• All ACP initiatives
• Pan African initiatives
• Global initiatives
• Reserve

26
10th EDF Multiannual Financial Framework 2008-2013
27
10th EDF Programming Process

• CSPs and NIPs
• 71 CS/NIP adopted or in the process of being
  adopted
• 6 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

28
(No Transcript)
29
10th EDF programming Results at country level -
Sector Breakdown
30
10th EDF programming Results - Sector Breakdown

• Examples of opportunities under the main sectors
• Budget Support PEFA and other PFM assessments,
  almost always accompanied with PFM capacity
  building programmes
• Democratic Governance Technical Assistance
  Intensive field of work
• Water, Energy and Transport Infrastructure
  investments necessitate design, implementation of
  supervision as enabling technical as stance
  components.
• Economic growth, trade and regional integration
  agenda taken forward through provision of
  technical assistance

31
10th 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

32
10th 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

33
Way 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
• High level meeting on aid effectiveness, Accra,
  Sept. 2008
• Mid-term review, spring 2010
• Change of strategy?
• Progress towards division of labour?
  Co-financing?
• Overall performance review, fall 2010
• End-of-term review, spring 2012
• Aid re-allocation in function of performance and
  absorption capacity

34
Thank You!

• Raul.Mateus-Paula_at_ec.europe.eu
• Head of Unit
• Centralised Operations for the ACP Countries
• Tel [phone]