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CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE EUROPEAN DEVELOPMENT FUND

CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE EUROPEAN DEVELOPMENT FUND. Raul Mateus Paula EuropeAid – Centralised Operations Thessaloniki 14 September 2008. Structure of the Presentation. Basic framework of the EDF and European Development Policy

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CONTRACT OPPORTUNITIES IN COUNTRIES UNDER THE EUROPEAN DEVELOPMENT FUND

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  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. Evolution des allocations en faveur des ACP et des PTOM (en millions d'euros) 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 Traité de Yaoundé I Yaoundé II Lome I Lome II Lome III Lome IV Lome Cotonou Rome IVbis FED 1 FED 2 FED 3 FED 4 FED 5 FED 6 FED 7 FED 8 FED 9 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. Forms of Opportunities – Practical Guide http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm

  16. 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

  17. 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

  18. Forms of Opportunities – 9th EDF vs 10th EDF

  19. 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”

  20. 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

  21. 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)

  22. 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

  23. 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

  24. 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

  25. 10th EDF Multiannual Financial Framework 2008-2013

  26. 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

  27. 10th EDF programming Results at country level - Sector Breakdown

  28. 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

  29. 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

  30. 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

  31. 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

  32. Thank You! Raul.Mateus-Paula@ec.europe.eu Head of Unit Centralised Operations for the ACP Countries Tel: +32 2 295 9278

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