EU external assistance in the Neighbourhood: ENPI (and other instruments) Jyrki Torni EuropeAid Cooperation Office

1. EU external assistancein the Neighbourhood:ENPI(and other instruments)Jyrki Torni EuropeAid Cooperation Office

2. Presentations Introduction on EC cooperation, the European Neighbourhood Policy and the ENPI 1. EC cooperation since 2007 – main characteristics 2. European Neighbourhood and Partnership Instrument (ENPI), Cooperation issues 3. Anticipating and answering to funding opportunities

3. 1 EC Cooperation (since 2007): Key characteristics

4. EU and EC aid implementation EU the largest donor in the world 27 + 1 donors together responsible for 60% of all official development aid (2007: €46,1 billion) USA provides 21% European Commission on its own: Second largest donor of humanitarian aid Third largest donor of development aid (11,3%, after USA and Germany) Present in more than 150 countries Based on OECD/DAC figures 2008

5. The EU: the biggest donor in the worldDonor landscape 2007 EU Donor Atlas 2006, OECD/DAC

6. The EC and the external aid budget 2008 External aid: €12.3 bn(9%) EuropeAid EDF fund: €4.7 bn (38%) Non-EuropeAid Budget: €3.2 bn(26%) Commission budget inside EU: €128 bn (91%) EuropeAid Budget: €4.4 bn (36%) EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, Common Foreign and Security Policy (CFSP) aid, and aid for trade. EC total budget includes European Development Fund (EDF). NB – 2008 provisional figures (Jan 09)

7. Political Framework of EU development cooperation • UN Millennium Development Goals (2000) • OECD Paris Declaration on Aid Effectiveness (2005) • Accra Agenda for Action (2008) • Cotonou Agreement (2000) • Monterrey commitments (2002) • Doha Declaration on Financing for Development (2008) • European Consensus on Development (2005) • Backbone Strategy (2008)

8. Millennium Development Goals (2000)

9. Paris Declaration on Aid Effectiveness (2005) http://www.oecd.org/dataoecd/11/41/34428351.pdf

10. Paris Declaration on Aid Effectiveness (2005) EU Response: commitment to four targets in addition to the Paris Declaration • Provide all capacity building assistance through co-ordinated programmes with an increasing use of multi-donor arrangements • Channel 50% of government-to-government assistance through country systems, including by increasing the percentage of our assistance provided through budget support or sector-wide approaches • Avoid the establishment of any new Project Implementation Units (PIUs) • Reduce number of un-coordinated missions by 50%

11. Accra Agenda for Action (2008) Ministers of developing and donor countries responsible for promoting development and Heads of multilateral and bilateral development institutions endorsed the Accra Agenda for Action in Ghana, on 4 September 2008 to accelerate and deepen implementation of the Paris Declaration on Aid Effectiveness. http://endpoverty2015.org/files/ACCRA_4_SEPTEMBER.pdf

12. Accra Agenda in a nutshell (1) • Strengthening Country Ownership over Development • Broaden country-level policy dialogue on development • Developing countries will strengthen their capacity tolead and manage development • Building More Effective and Inclusive Partnerships for Development • Reduce costly fragmentation of aid • Increase aid’s value for money • Welcome and work with all development actors • Deepen the engagement with civil society organisations • Adapt aid policies for countries in fragile situations

13. Accra Agenda in a nutshell (2) • Delivering and Accounting for Development Results • Focus on delivering results • More accountability and transparency to publics for results • Continue to change the nature of conditionality to support ownership • Increase the medium-term predictability of aid

14. The European Consensus on Development (2005) • Objective: Eradication of poverty in the context of sustainable development including pursuit of MDGs • Wider peace and stability – addressing global challenges • More effective aid – range of modalities based on needs and performance; where conditions are right use budget support • Reaffirm increased EU aid: 0.56 % of GNI by 2010 reaching 0.7% by 2015 (March 2002 Council Meeting, followed by May 2005 Council Meeting) http://ec.europa.eu/development/icenter/repository/eu_consensus_en.pdf

15. Doha Declaration on Financing for Development(2008) • Member States adopted by consensus the Doha Declaration on Financing for Development at the closing of the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus (Doha, Qatar, 29 November - 2 December 2008). • The declaration reaffirms the Monterrey Consensus and calls for a United Nations Conference at the highest level to examine the impact of the world financial and economic crisis on development. Officials from more than 160 countries, including nearly 40 Heads of State or Government, attended the four day conference http://daccessdds.un.org/doc/UNDOC/GEN/N08/630/55/PDF/N0863055.pdf?OpenElement

16. Responding to the call for simplification • Simplification: More than 35 instruments, replaced by 10 • Harmonisation: same rules for all financing instruments regarding eligibility, financing mechanisms, procedures • Updating of the rules according to EU commitments:MDGs, untied aid, alignment, etc. • More flexible: regarding the types of beneficiaries, the actions to be funded and the co-financing rules. • Financing: budget support, SWAP, twinning, debt cancellation, pool funding, operational costs • More implication of the European Parliament: democratic control, right of scrutiny

17. New Financial Instruments – 2007 2007 - 2013 Policy driven instruments: ►Instrument for Pre-Accession Assistance (IPA) ►European Neighbourhood and Partnership Instrument (ENPI) ► Development Cooperation Instrument (DCI) ► European Development Fund (EDF) ► Instrument for Nuclear Safety Cooperation (INSC) ► Human Rights Instrument (EIDHR) ► Instrument for Stability Before 2007 More than 30 instruments for delivering external relations assistance

18. Geographic and Thematic Programmes: the legal bases

19. Geographic and Thematic Programmes: differences

20. Complementarity between geographic and thematic instruments (a) The New Financial Perspective 2007-2013, provides a rationalization of the various geographic and thematic instruments: Greater Ownership Budget Support Sector Policy Support the geographic instruments provide the major mechanism for partnerships with recipient country governments, and focus on the development priorities of the country or region. SHIFT COMPLEMENTARITY In addition to geographic instrument, the thematic instruments are meant to support actions in areas of work which are not included in an AAP.

21. Complementarity between geographic and thematic programmes (b) Play on specific added value of instruments: Them. programmes to be mobilised around governance components in the NIPs: Geographic programmes should aim at enhancing dialogue between State and civil society on rather consensual issues … Egypt, “Promotion and Protection of Human Rights and Civil Society in Egypt, 2008”. Institutional support intertwined with support to civil society (HR, gender, children, environment). Possibility for thematic programmes to address sensitive/more specific issues, in principle not requiring government consent. Egypt: EIDHR call, enforcing women and children’s rights

22. DG External Relations and EuropeAid: Programming € Project Budget of the European Commission

23. Strategy Papers Multi-annual Indicative Programmes ActionProgrammes The programming process ►annual ► describe projects identified for financing ► define the budget per project ►lead to EC decision & commitments of funds ► Analysis of the situation ► Response strategy ► Priority sectors ► 7 years ►revised at mid-term ►normally attached to Strategy Papers ► set indicative allocations (global & per priority) ► cover 3 – 4 years

24. Programmation: documents A financial instrument is a policy description with resources attached, and with very specific rules which describe how, where, when and for what the money can be spent. AAPs set out the respective amounts of funding for each country or each thematic priority and give details about the initiatives to be financed with those funds. They can be consulted on EuropeAid's website (http://ec.europa.eu/europeaid/work/ap/index_en.htm). "Annual" in this respect refers to the budget year.

25.  http://ec.europa.eu/europeaid/work/ap/index_en.htm

26. Programming: Actors Strategy Papers } DG RELEX Indicative Programs } DG EuropeAid Annual Action Programmes } Delegations DG EuropeAid Tenders Projects

27. 2 European Neighbourhood and Partnership Instrument (ENPI) Cooperation issues

28. East Russia Ukraine Belarus Moldova Georgia Armenia Azerbaijan South Morocco Algeria Tunisia Libya Egypt Occupied Palestinian Territory Jordan Lebanon Syria =17 Partner countries ENP partner states ENPI = ENP partner states + Russia

29. Financial Instruments / Neighbourhood region European Neighbourhood and Partnership Instrument (ENPI) Instrument for Development Co-operation (DCI – only the 5 thematic programmes) European Instrument for Democracy & Human Rights (EIDHR) Instrument for Stability (IfS) Nuclear Safety Co-operation Instrument (NSCI)

30. Thematic Programmes (part of DCI) ”Investing in people”Human and social development Protection of the environment and sustainable planning / cultivation of natural resources, including energy Non-state actors and local authorities in the process of development Food security Migration and asylum policies  http://ec.europa.eu/europeaid/where/worldwide/index_en.htm

31. ENPI E uropean N eighbourhood and P artnership I nstrument http://ec.europa.eu/europeaid/where/neighbourhood/overview/index_en.htm

32. East Russia Ukraine Belarus Moldova Georgia Armenia Azerbaijan South Morocco Algeria Tunisia Libya Egypt Occupied Palestinian Territory Jordan Lebanon Syria =17 Partner countries ENPI

33. Goals Common space of stability, security and prosperity Avoid new dividing lines in Europe Increase efficiency of external assistance Greater coherence through unified instruments Simplified programming and administration ENPI

34. Stimulating cooperation and economic integration of ENPI partners with EU member states in order to support the achievement of • Partnership- and cooperation agreements (East) • Association agreements (South) • and other agreements (ENP Action Plans) ENPI

35. ENPI 2007-2013 European Neighbourhood & Partnership Instrument • Almost €12bn (+32% increase in “real terms”) • Much more flexible, policy-driven instrument • Supporting priorities agreed in the ENP Action Plans and Four Common Spaces (Russia) • Other features: cross-border co-operation, technical assistance Plus increased EIB lending mandate: €12.4 bn (for Mediterranean/Eastern Europe / Southern Caucasus / Russia)

36. ENPI allocations 2007 – 2013: 11.2 bn € ENPI & 0.8 bn € on Thematic programmes and HR instrument Country and multi-country programmes Min. 95.0% (> €10.6 bn) CBC programmes Up to 5.0% (+/- € 550 million + additional +/- € 600 million from ERDF) Earmarked funds under DCI and EIDHR EIDHR € 321.3 million and DCI € 464.3 million (earmarked for ENP countries and Russia under five thematic programmes)

37. ENPI • adapted to individual countries • 17 country programmes • 3 regional programmes (East, South, interregional)  http://ec.europa.eu/europeaid/work/ap/index_en.htm

38. Priorities 2007-2008 Armenia: Vocational Education and Training (VET), Justice Reform Azerbaijan: Energy, Justice Belarus: Energy, Environment Georgia: Public Finance, Justice, IDPs Moldova: Social Assistance, Public Health Russia: Higher Education, CBC Ukraine: Energy ENPI

39. ENPI INTERREGIONAL PROGRAM (2007-10): • Promoting reforms through consultations and experts (TAIEX, SIGMA) • Promoting higher education and student mobility(TEMPUS, Erasmus Mundus II) • Promoting cooperation between local actors from partner countries and the EU (CIUDAD) • Support in realizing the European Neighbourhood Policies and the strategic partnership with Russia • Promoting Investment projects in ENP Partner Countries (NIF) More info http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/index_en.htm

40. ENPI REGIONAL PROGRAM EAST (2007-10): Priority 1: Establishment of networks (25-35%) Sub-priority 1: Transport Sub-priority 2: Energy Sub-priority 3: Regional cooperation SME Priority 2: Environmental protection and forestry (25-35%) Priority 3: Border security, migration, fight against international crime as well as customs (20-30%) Priority 4: Civil society contacts, information and development actions (10-15 %) Priority 5: Landmine cleansing, not exploded war relics, small arms and light arms (5-10%)

41. ENPI REGIONAL PROGRAM SOUTH (2007-10): Priority Nr. 1: COOPERATION IN THE AREAS OF POLITICS, JUSTICE, SECURITY AND MIGRATION PriorityNr. 2: SUSTAINABLE ECONOMIC DEVELOPMENT Priority Nr. 3: SOCIAL DEVELOPMENT AND CULTURAL EXCHANGE

42. ENPI • Governance Facilityadditional financial support for partner countries with strongest development potential for the realization of leadership priorities of the respective action plan • Neighbourhood Investment Facility (for the enrichment of IFI-loans in partner countries – grants, to support the loan activities of such institutions in conjunction with the priorities of the EU) •  € 450m 2007-10 to foster the areas of Governance and Investments

43. Cross-Border Cooperation Programs for land borders (9) and sea crossings (3) http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/enpi-cross-border/index_en.htm

44. CBC Sea Basin Programs (3)

45. 3 Anticipating and answering to funding opportunities

47. Key characteristics and trends of thematic calls for proposals • Competitive – which tendencies ? • Right to initiative • Procedural obligations – in order to maximise equality of chances of all applicants and transparency • Budget obligations: no core financing, but activity related financing; obligation of co-financing • Technicalities are important: HQ or local calls? Amounts? Eligibility? • Pooling of funds

48. Good to keep in mind • Experience • Added value • Partnership - In many cases it makes sense to build a consortium. A potential applicant may thus want to involve suitable partners (also from other countries) and discuss plans with them. It can also be useful to involve local partners, depending on the kind of action one is aiming for. It is always an advantage to start building a consortium as early as possible, meet the partners in person and distribute the responsibilities as clearly as possible. • Sustainability • Impact/multiplier effect

49. NSA definition in DCIHow broad is the concept The non-State, non-profit making actors eligible for financial support under this Regulation operating on an independent and accountable basis include: non governmental organisations, organisations representing indigenous peoples, organisations representing national and/or ethnic minorities, local traders' associations and citizens' groups, cooperatives, trade unions, organisations representing economic and social interests, organisations fighting corruption and fraud and promoting good governance, civil rights organisations and organisations combating discrimination, local organisations (including networks) involved in decentralised regional cooperation and integration, consumer organisations, women's and youth organisations, teaching, cultural, research and scientific organisations, universities, churches and religious associations and communities, the media and any non governmental associations and independent foundations, including independent political foundations, likely to contribute to the implementation of the objectives of this Regulation.

50. Evaluation full proposal • Financial & Operational Capacity (20 points – pass threshold 12)‏ • Relevance (25 points – pass threshold 20)‏ • Methodology (25 points)‏ • Sustainability (15 points)‏ • Budget & cost-effectiveness (15 points)‏