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Lionel Atlan EuropeAid/02

Lionel Atlan EuropeAid/02. Delegated cooperation State of Play (13 December 2011). Summary. 1 Context 2 Definitions 3 Management modes 4 Delegation agreement prerequisites 5 “6 pillar compliance” Figures Balancing criteria. Context. Aid effectiveness :

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Lionel Atlan EuropeAid/02

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  1. Lionel AtlanEuropeAid/02 Delegated cooperation State of Play (13 December 2011)

  2. Summary 1 Context 2 Definitions 3 Management modes 4 Delegation agreement prerequisites 5 “6 pillar compliance” • Figures • Balancing criteria

  3. Context Aid effectiveness: • Paris Declaration (2005) and Accra follow-up (2008); • European Consensus (2005); • Code of Conduct on Division of Labour (2007) Principles: • Ownership • Harmonisation • Alignment Drivers: • Use of country systems and Division of Labour

  4. Code of Conduct on DoL (2007) DoL Guiding Principle 4: “ If a given sector is considered strategic for the partner country or the donor, EU donorsmay enter into a delegated cooperation / partnership with another donor and thereby delegate authority to the other donor to act on its behalf in terms of administration of funds and / or sector policy dialogue with the partner government. […]”

  5. Definitions (1) – Who is doing what? → DELEGATION AGREEMENT Management of funds entrusted by the European Commission to delegated body from Member States (or other third donor country) under the indirect centralised management mode → TRANSFER AGREEMENT Management of funds entrusted to the European Commission by EU Member States, International Organisations and other public donors

  6. Definitions (2) • In both cases, the expression "Delegated cooperation" is used • For a transfer agreement, the main “constraint” is to anticipate, because the amount has to be taken into account in the Commission financing decision (and in the relevant Action fiche) • For a delegation agreement, there are also several prerequisites (in addition to being mentioned in the relevant Action fiche)

  7. Management mode/Methods of implementation shared decentralised joint Joint management Inter. organisations (International centralised (Member (Third States ) Countries) ) The Commission may also manage funds received from other donors direct indirect bodies set up by bodies with a public executive service mission Communities agencies "(tradit. agencies) " "(nat. agencies)"

  8. Overview – Management mode

  9. Delegation agreement - prerequisites (1) • To be a national public-sector bodies or bodies governed by private law with a public-service mission • To be « 6 pillar compliant » (according to the Financial Regulation for EU General Budget / 10th EDF) • To comply with the following operational criteria

  10. Delegation agreement - prerequisites (2) • Bodies from Member States(EU 27); • which operate at a national or federallevel (i.e. no regional or local authorities); • which are specialised in technical or financial developmentcooperation with beneficiary countries of EC external assistance; • which implement cooperation activities without subcontracting entire programmes or projects to other entities

  11. Delegation agreement - prerequisites (3) • There are approximately 42EU entities that could be potential eligible partners for indirect centralised management agreements under the above criteria; • Donors from non EU third countries (such as the US, Canada, Japan, etc.), which are also interested in engaging in indirect centralised management with the Commission, should only be accepted in exceptional cases and when duly justified;

  12. 6-pillar compliance (1) • Expression of interest by the donor’s body • Initial screening by EuropeAid services 3. External audit to assess the "existence and proper operation" on the following “6 pillars”: • transparent procurement and grant-award procedures; • an effective internal control system for management of operations; • accounting system that enables the correct use of EU funds • an independent external audit; • public access to information at the level provided for in Community regulations; • adequate annual ex post publication of beneficiaries of funds deriving from the budget

  13. 6-pillar compliance (2) • 19 organisations have already been assessed and considered compliant (some with additional assessment to be carried out within 12 months) • SONA (January 2008) • GTZ (February 2008) • BTC/CTB (March 2008) • ADA (March 2008) • AFD (April 2008) • KfW (April 2008) • IPAD (May 2009) • Lux-Development (May 2009) • NL MoFA (June 2009) • DFID (September 2009) • Finnish MoFA (December 2009) • DANIDA (December 2009)

  14. 6-pillar compliance (3) 13. DED (July 2010) 14. AusAID (January 2011) 15. British Council (January 2011) 16. FEI (March 2011) 17. AECID (July 2011) 18. FIIAPP (August 2011) 19. DBSA (September 2011) • 4 organisations are still under assessment: • IT MoFA (Ministry of Foreign Affairs of Italy) • SIMEST(Societa Italiana per le Imprese al'Estero) • SIDA(Swedish International Development Cooperation Agency) • ADETEF (Assistance au Développement des Echanges des Technologies Economiques et Financières) • Donors from non EU third countries are accepted in exceptional and duly justified cases (AusAID and DBSA)

  15. State of Play – DA & TA

  16. Geographical/thematic repartition (DA/TA)

  17. Some key figures…(1) Delegation Agreement (DA) • DA average amount: 5.2 M€ • Average % of EC contribution: 44.1% Transfer Agreement (TA) • TA average amount: 4.4 M€ • Average % of EC contribution: 11%

  18. Some other key figures…(2) Management fees • DA: Average amount of fees paid to the donor by the Commission is of maximum 7%; • Most of the agencies apply this rate • TA: Average amount of fees paid to the Commission is of maximum 4% of the donor's contribution; • In the case of budget support programmes, a smaller rate (1.5% to 2%) is used

  19. Figures - delegation agreements by entity

  20. Figures - Transfer agreements by entity (EU)

  21. Figures - Transfer agreements by entity (non- EU)

  22. Balancing criteria (1) EuropeAid has established a set of criteria seeking to maintain a global adequate balance, which are regularly monitored: • Balance between delegation and transfer agreements • at the global level and at the level of each entity concerned, the total amount of transfer agreements should be at least 50% of the total amount of delegation agreements (provided there are sufficient number of agreements: minimum 5) • State of Play: At the global level, the TA/DA ratio is currently of 33%. At the level of each entity, only 1 agency (BTC/CTB) meets the criterion so far…

  23. Ratio TA/DA for each eligible entity (on the basis of minimum 5 Delegation Agreements)

  24. Balancing criteria (2) • Balance between delegated entities • the total amount of delegation agreements concerning a particular entity should not exceed 33% of the total amount of delegation agreements • State of Play: This criterion is not met so far…

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