1EFCA - 21th March 2002

Raul Mateus Paula

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This presentation underlines:

• The key objectives of the Relex Reform

• The division of the responsibilities

• EuropeAid organization

• Project cycle phases (Financial phase. Implementation phase.)

• Futures developments

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• Make significant improvements in the quality and efficiency of project management

• Substantially reduce the time taken to implement projects

• Ensure robust and efficient management procedures

• Improve the impact and visibility of the Aid

The Key Objectives of the Relex Reform

The key objectives of the Relex Reform

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Mettre en oeuvre l’ensemble des instruments d• EuropeAid is responsible for the project cycle from

identification through implementation

• DG Relex and DG Dev are responsible for the pluri-annual programming

Division of Responsibilities

The division of the responsabilities

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IndicativeProgramming

Evaluation

Implementation Formulation

Identification

Financing

The six stages of the Project Cycle TodayEuropeAid organization

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Project cycle phases• ProgrammingAnalyse situation to identify problems which development co-operation could address

• IdentificationIdentify project ideas and screen them for further study

• FormulationDevelop relevant project ideas into operational project plans

• FinancingCommission decides to fund project and agrees arrangements with beneficiary country

• ImplementationMobilise and execute project

• EvaluationAssess project achievements and identify lessons

Project cycle phases

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Financing phase

Financingproposal

Identify information needs

Draft financing proposal

Seek approval of beneficiary country

Assess quality of financing proposal

3 months

Financingdecision

Translation of financing proposal inEU languages

Consultation of regional financingcommittee of Member States

Commission written procedure

3 months

Financingagreement

Procedures of beneficiary country -beyond the control of theCommission

9 months

Project cycle phases

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Implementation phase

• Award contract(s) to implement projects– fair competition– transparency

• Manage execution of projects

Project cycle phases

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Procurement rules applicable to EC external aid

• Specific rules for projects in the interest of beneficiary countries

• Directives and WTO rules if the projects are in the interest of– the Commission; or– both the Commission and beneficiary countries

Project cycle phases

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Public procurement Directives

• Apply to public procurement by Member States and the Commission itself

• Govern– choice of award procedure– rules on publicity– candidates allowed to tender– selection and award criteria

Project cycle phases

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EC external aid contracts

• Commission ‘for and on behalf of’ the Government of a beneficiary country

• Title IX of the existing Financial Regulation ‘provisions applicable to external aid’

• Commission “must comply with the basic principles adhered to by the Union in the field of public contracts, particularly for the Directives” Committee of Independent Experts

Project cycle phases

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Manual of Instructions

• Adopted by the Commission on 10/11/99 after 3 years of consultations with the market and representatives of the EU Member States

• negotiated with Member States

• warmly welcomed by consultancy organisations

• commended by Transparency International

Project cycle phases

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Impact of Manual of Instructions

• Before:– 46 different contract procedures between the EC

external aid programmes– different Web sites with different presentations and

information content

• After: – 8 contract procedures for all EC external aid

programmes– unique Web site

Project cycle phases

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EuropeAid Web site

• Allows consultants to search procurement notices by programme and type of contract

• Contract forecasts, procurement notices, Calls for Proposals, shortlist notices and contract award notices all published

• Initially 200,000 hits per month, now 800,000 hits per month, making it the most heavily consulted Web site on the entire Europa server

Project cycle phases

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Practical Guide to EC external aid contracts

• Incorporates full text of Manual of Instructions

• Provides operational detail necessary to implement Manual of Instructions

• Annexes include standard tender dossiers, contracts, publication templates, Guidelines for Grant Applications and templates for letter to candidates and tenderers

Project cycle phases

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Contract award procedures - Service contracts

€ 200,000International restricted tender procedure

< € 200,000 but > € 5,0001 Framework Contract

2 Simplified procedure

€ 5,000Single tender

Project cycle phases

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Contract award procedures - Supply contracts

€ 150,000International open tender procedure

< € 150,000 but € 30,000Local open tender procedure

< € 30,000 but > € 5,000Simplified procedure

€ 5,000Single tender

Project cycle phases

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Contract award procedures - Works contracts

€ 5,000,0001 International open tender procedure

2 International restricted tender procedure (in exceptional cases)

< € 5,000,000 but € 300,000Local open tender procedure

< € 300,000 but > € 5,000Simplified procedure

€ 5,000Single tender

Project cycle phases

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International tender procedure - Service contract

• Publish procurement notice

• Candidates submit applications

• Shortlist panel applies selection criteria

• Tender dossier sent to short-listed candidates

• Tenderers prepare and submit tenders

• Evaluation Committee examines tenders

• Award contract

Project cycle phases

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International tender procedure - Supply or works contract

• Publish procurement notice

• Tender dossier sent to interested tenderers

• Tenderers prepare and submit tenders

• Evaluation Committee examines tenders

• Award contract

Project cycle phases

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Project cycle of a 2-year service contract

Programming18%

Identification9%

Formulation7%

Financing23%

Tender procedure

5%

Execution of contract

37%

Evaluation1%

Project cycle phases

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• Programming

• Publicity• Call for Proposals• Transparency and impartiality• Standard guidelines and forms • Evaluation procedure• Record keeping

How to award grants

Grants

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Award procedures International Call for ProposalsIf 4 conditions are all satisfied:

•programme budget is at least€ 2,000,000

•minimum grant is at least € 100,000

•applications from other countries are likely

•programme is not restricted to national applicants

Grants

Local Call for ProposalsIf one or more of the 4 conditions are not satisfied

Direct AwardExceptional procedure to be used only in four specific cases •objective of the grant programme

•special legal or technical characteristics

•running cost grants

•unforeseeable events (urgency)

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Evaluation procedure• Receipt and opening

• Administrative compliance

• Eligibility

• Evaluation of technical quality

• Recommendations

• Approval of final list

• Standard contract

• Derogations must all be individually endorsed by the EC

• No derogations: global endorsement by the EC

• Modifications: addendum

Signature of the contract

Grants

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Futures developments

• Application to EDF

• Standard financing decision & financing agreement

• EC external aid Finance Guide: Update

• Update of the Practical Guide

• CRIS Appel d’offre

• Extensive Devolution

Futures developments