2016 annual activity report annexes - european...
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2016
Annual Activity Report
Annexes
Directorate General
Neighbourhood and
Enlargement
Negotiations – DG
NEAR
Ref. Ares(2017)1714195 - 30/03/2017
DG NEAR_aar_2016_annexes_final Page 2 of 224
Table of Contents
Contents
ANNEXES 3
ANNEX 1: STATEMENT OF THE RESOURCES DIRECTOR ................................................................................................. 3 ANNEX 2: REPORTING – HUMAN RESOURCES, BETTER REGULATION, INFORMATION MANAGEMENT AND EXTERNAL
COMMUNICATION .............................................................................................................................................. 4 ANNEX 3: DRAFT ANNUAL ACCOUNTS AND FINANCIAL REPORTS .................................................................................. 13 ANNEX 4: MATERIALITY CRITERIA ......................................................................................................................... 32 ANNEX 5: INTERNAL CONTROL TEMPLATE(S) FOR BUDGET IMPLEMENTATION (ICTS) ...................................................... 33 ANNEX 6: IMPLEMENTATION THROUGH NATIONAL OR INTERNATIONAL PUBLIC-SECTOR BODIES AND BODIES GOVERNED BY
PRIVATE LAW WITH A PUBLIC SECTOR MISSION ................................................................................................................ 75 ANNEX 7: LIST OF UNION DELEGATIONS SUBMITTING AN EAMR ................................................................................ 85 ANNEX 8A: ANNUAL AOSD REPORT – THE EU REGIONAL TRUST FUND IN RESPONSE TO THE SYRIAN CRISIS, THE MADAD
FUND ........................................................................................................................................................ 86 ANNEX 8B: ANNUAL AOSD REPORT – THE EUROPEAN UNION TRUST FUND FOR AFRICA NORTH OF AFRICA WINDOW ........... 99 ANNEX 9: EVALUATIONS AND OTHER STUDIES FINALISED OR CANCELLED DURING THE YEAR ............................................ 117 ANNEX 10: EUROPEAN COURT OF AUDITORS – PERFORMANCE AUDITS ....................................................................... 121 ANNEX 11: ANALYSIS OF KEY PERFORMANCE INDICATORS 2016 ................................................................................ 127 ANNEX 12: PERFORMANCE TABLES ...................................................................................................................... 163
ANNEXES
ANNEX 1: Statement of the Resources Director
“I declare that in accordance with the Commission’s communication on clarification of
the responsibilities of the key actors in the domain of internal audit and internal control
in the Commission1, I have reported my advice and recommendations to the Director-
General on the overall state of internal control in the DG
I hereby certify that the information provided in Section 2 of the present AAR and in its
annexes is, to the best of my knowledge, accurate and complete.”
Date: 31/03/2017
"Signed"
Mark Johnston
1 Communication to the Commission: Clarification of the responsibilities of the key actors in the domain of
internal audit and internal control in the Commission; SEC(2003)59 of 21.01.2003.
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ANNEX 2: Reporting – Human Resources, Better Regulation, Information Management and External
Communication
This annex is the annex of section 2.2 "Other organisational management dimensions".
1. Human Resources Management
Objective:
The DG deploys effectively its resources in support of the delivery of the Commission's priorities and core business, has a competent and engaged workforce, which is driven by an effective and gender-balanced management and which can deploy its full potential within supportive and healthy working conditions
Indicator 1 : Percentage of female representation in middle management: 40%
by 2019
Source of data:
SEC(2015)336 final : Targets for female representation in management functions in the European Commission for the years 2015-2019 Baseline
2016
(January)
Target
2019
Latest known results
for 2016
38% 40% 32%
Main outputs in 2016:
Description Indicator Target Latest known results
Monitor
gender
balance in
middle
management
positions.
Provide
training and
mentoring
opportunities
for potential
managerial
colleagues.
Appointment
of women to
first middle
management
function
Increase in female
representation in
middle management
positions.
Applicants are better
informed and prepared
to apply for middle
management positions
Increase number of
women appointed to
first time middle
management functions.
39% by end 2016.
Identified colleagues
receive appropriate
training/mentoring in
2016
Appoint 1 woman to
first time
management position
by end 2016
32%
None in 2016
No first time female
Head of Unit
nomination in 2016.
Any change in the
number of occupied
positions seriously
impacts the
percentage of female
HoU representation. 2
HoU positions were
filled in 2016.Female
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candidates were
shortlisted to the final
interviews in both
cases, but in
comparison to the
selected candidate did
not possess the
complete skill set
required to lead these
units.
Indicator 2 :
Percentage of staff who feel that the Commission cares about their well-being
Source of data: Commission staff survey
Baseline Target
Latest known results
for 2016
January
2014 : 32%
Target: Commission Average (now 35%) in 2016
Two percentage points above Commission
Average (now 37%) in 2018
In relation to the indicator 2 on staff well-being,
DG NEAR sets the target for this indicator in 2016
at the level of Commission Average (currently
35%) for 2016 and at 2 percentage points above
the Commission average in the 2018 staff survey.
This is based on the recommendations of the DG
NEAR Staff Engagement Working Group, which
was established following the results of the 2014
survey. The target was approved by senior
management
24%
Main outputs in 2016:
Description Indicator Target Latest known results
Promote an
appropriate
work life
balance for
staff.
Promote
awareness of
fit@ work
campaign
including
mental and
physical
health &
wellbeing
activities
Staff request
appropriate working
conditions (part-time,
flexitime and
teleworking) to match
their particular work life
balance considerations.
Staff attend and
participate in activities
which increase staff
understanding of the
importance of mental
and physical health to
their overall well being
100% of staff using
flexitime
10% of colleagues
teleworking by end
2016
100% of eligible
requests for part-time
validated
Organise minimum 6
fit@work workshops
on:
Ergonomics
Physical health
Social-psychological
issues
Organise weekly well-
being activities
Yoga
Chair massage
Pilates
100% of staff using
flexitime
9,4% of staff
teleworking
100% of the requests
for part time were
validated
Well-being activities
were organised twice
per week in 2016.
Sessions of yoga,
chair massage and
Pilates were organised
in 2016.
The Medical Service's
DG NEAR_aar_2016_annexes_final Page 6 of 224
updated list of
fit@work workshops
announced for last
quarter of 2016 was
not made available.
Indicator 3 : Staff engagement index
Source of data: Commission staff survey
Baseline
2014
Target
2016/2018
Latest known results
For 2016
2014 :
DG NEAR
Staff
engagement
index =64
Commission Average (now 65%) in 2016
Two percentage points above Commission
Average (now 67%) in 2018
DG NEAR sets the target for this indicator in 2018
at 2 percentage points above the Commission
average in the 2018 staff survey2.
58% (for HQ=64%
and for Delegations=
53%
Main outputs in 2016:
Description Indicator Target Latest known results
Improve DG
NEAR score
on Staff
engagement
index in Staff
Survey
Staff have the
necessary tools,
information & training,
receive appropriate
feedback and timely
communication to
enable them to
understand their role
and contribution to the
overall DG NEAR and
EU objectives
Roll out the 2016
Staff Engagement
Action
Plan tackling the staff
engagement issues
raised in the 2014
Staff survey namely:
Shared DG NEAR
vision and purpose
Effective internal
communication
Managing
Performance
Enhancing 'people'
management skills
Action Plan Roll out
March 2016
Our NEAR Core Group
Focus Groups
launched in
September 2016 Directorate Team
Building events
facilitated by Our
NEAR for each
Directorate launched
in December 2016 Timely updates
including videos from
management
published on intranet
2 This is based on the recommendations of a DG NEAR Staff Engagement Working Group established following
the results of the 2014 survey, and approved by senior management of the DG
DG NEAR_aar_2016_annexes_final Page 7 of 224
Working conditions &
work /life balance
Career advice, career
paths,
opportunities &
mobility
Training & training
budget.
Take 'temperature'
mid-year on the 7
areas contributing to
overall staff
engagement.
Career advice
provided to staff in
annual mobility
exercise and in
reorganisations Implementation of
2016 training plan
with provision of over
40 in house courses, 5
teambuilding events
and individual
coaching sessions for
6 managers
2. Better Regulation
DG NEAR does not manage regulatory acquis. Nonetheless, some major evaluations such
as the two Mid-term Reviews of the financial instruments (ENI and IPA II) and two
evaluations addressing some of the "fundamental" strategic axis of its partnerships
(Economic Governance and Public Administration Reform) have been launched in full
compliance with the Better Regulation principles. The Open Public Consultations having
been launched in February 2017 for three of them.
In 2016 DG NEAR launched three evaluations according to the Principle of Better
Regulation in line with the Annual Management Plan 2016 i.e.
-Thematic Evaluation on the support to SME competitiveness
-Thematic Evaluation on support to Economic Governance in Enlargement
-Thematic Evaluation on social protection (2007 to 2013)
The result of these evaluations is intended to provide advice and evidence for the design
of future policies and financial instruments. In particular, they will help to identify lessons
learned to feed into the Mid-term review of 2014-2020 instruments and the impact
assessments of possible successor instruments after 2030.
No Impact Assessments were submitted by DG NEAR in 2016 to the Regulatory Scrutiny
Board in 2016.
3. Information management aspects
Objective:
Information and knowledge in your DG is shared and reusable by other DGs. Important documents are registered, filed and retrievable Indicator 1 : Percentage of registered documents that are not filed (ratio)
Source of data: Hermes-Ares-Nomcom (HAN)6 statistics
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Baseline
2015
Target 2020
Latest known results
for 2016
4,73%
0% 1,40%
Main outputs in 2016:
Description Indicator Target Latest known results
Electronic filing
of registered
documents in
Ares
Number of registered
and filed documents in
ARES
100% 98.6%
E-Signatory
(ARES) for all
invoices as
from 18 April
2016
Number of e-
signatories for invoices
in Ares (from 18 April
2016)
100% of invoices
arrived to HQ and
Delegations with e-
signatory in ARES
documenting internal
approval process
(operational and
financial visas and
AOSD)
100% as from 18
April 2016
Indicator 2 : Number of HAN files readable/accessible by all units in the DG
Source of data: Hermes-Ares-Nomcom (HAN)6 statistics
Baseline
2015
Target 2020
Latest known results
for 2016
93.39% Target: 93%
93.58%
Indicator 3 : Number of HAN files shared with other DGs
Source of data: Hermes-Ares-Nomcom (HAN)6 statistics
Baseline
2015
Target 2020
Latest known results
for 2016
4.15% Target: 20%
5,22%
4. External communication activities
Objective: Citizens perceive that the EU is working to improve their lives and engage with
the EU. They feel that their concerns are taken into consideration in European decision making
and they know about their rights in the EU
Definition: Eurobarometer measures the state of public opinion in the EU Member States. This global indicator is influenced by many factors, including the work of other EU institutions and national governments, as well as political and economic factors, not just the communication actions of the Commission. It is relevant as a proxy for the overall perception of the EU citizens. Positive visibility for the EU is the desirable corporate outcome of Commission communication, even if individual DGs’ actions may only make a small contribution Source of data: Standard Eurobarometer (DG COMM budget) [monitored by DG COMM
Baseline
November
Target 2020
Latest known results
for 2016
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2014
Total "Positive": 39% Neutral: 37 % Total "Negative": 22%
Positive image of the EU ≥ 50%
Total "Positive": 35%
Neutral: 38%
"Negative":25%
Objective: To increase knowledge and understanding of the European neighbourhood policy, including the use and objectives of EU funds for the neighbourhood Main outputs in 2016:
Description Indicator Target Latest known results
Press trips for
EU journalists
to
neighbourhood
regions
Number of participants
Cost per contact
Indirect audience
reach:
audience of the media
covering the event who
might have seen the
articles – Opportunities
to see (OTS)
Number of participants
who declare the event
met their expectations
Useful contacts made
Likelihood to share the
info
Better understanding of
the policy/related
funding
55
n/a
n/a
>60% of participants
>40% of participants
>40% of participants
>50% of participants
52
n/a
n/a
100%
75%
96%
80%
Training
seminars on
EU visibility
and
communication
for
beneficiaries in
the
neighbourhood
Number of participants
Cost per contact
Number of participants
who declare the event
met their expectations
Likelihood to share the
info
40
n/a
>65% of participants
>50% of participants
40%
n/a
90%
100%
OPEN
Neighbourhood
Regional
Programme:
Opportunities,
Participation,
Engagement
and
Networking
with people
from the
Neighbourhood
area; covers:
1)Thematic
1)-focus groups,
-surveys
-web analytics
-number of subscribers
to news alert system
2) number of pick-ups
of audio visuals
produced, publication
/distribution of outputs
1) To be defined in
inception report as
depending on theme
of campaigns –
potentially decision
makers, journalists,
young people in
partner countries
2) General public in
neighbourhood
11 videos, 4
factsheets;19 feature
stories/op-eds used
via social media and
in local press,
Media outputs
generated by
journalist trainings
(Media Hub) on EU
related issues and
made available on
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integrated
communication
campaigns
targeting
audiences in
one or several
partner
countries
2) Journalist
trainings will
generate
media outputs
on EU related
issues
online media sharing
platform: 205;
Number of pick-ups of
audio visuals: 157
Objective: To increase knowledge and understanding of the enlargement policy, including the use and objectives of EU pre-accession funds Main outputs in 2016:
Description Indicator Target Latest known results
Youth
Conference
(in line with
Vienna Summit
Conclusions)
Number of participants
Cost per contact
Event met expectations
Useful contacts made
Likelihood to share the
info
Better understanding of
the policy/related
funding
Better opinion of the
EU/its institutions
150
n/a
>60% of participants
>50% of participants
>50% of participants
>50% of participants
>35% of participants
150
n/a
97%
95%
98%
88%
67%
Series of policy
events in the
EU Member
States
Number of participants
Cost per contact
Event met expectations
Likelihood to share the
info
Better understanding of
the policy/related
funding
Better opinion of the
EU/its institutions
1500
n/a
>60% of participants
>25% of participants
>50% of participants
>20% of participants
2300
n/a
99%
95%
97%
60%
Study visits of
EU
stakeholders
to enlargement
region
Number of participants
Cost per contact
Event met expectations
Useful contacts made
Likelihood to share the
info
Better understanding of
the policy/related
funding
Better opinion of the EU/its institutions
55
n/a
>50% of participants
>40% of participants
>50% of participants
>40% of participants
>25% of participants
52
n/a
85%
85%
84%
85%
61%
Study Visits of
EU
Number of Participants
Cost per Contact
150
137 (DG NEAR
decided not to
DG NEAR_aar_2016_annexes_final Page 11 of 224
stakeholders
to the
enlargement
regions
Indirect audience
reach: audience of the
media covering event
who might have seen
the article –
Opportunities to See
(OTS)
Number of participants
who declare the event
met their expectation
Useful contacts made
Likelihood to share the
info
Better understanding of
the policy related
funding
n/a
n/a
>60%of participants
>40% of participants
>50% of participants
>50% of participants
implement 3 of the
planned press trips)
n/a
n/a
92%
85%
100%
82%
In 2016, DG NEAR conducted an external evaluation of information and communication
activities implemented by the EU delegations/office in the enlargement region, whose
recommendations are under implementation.
Objective: Dissemination of information through DG NEAR website and social media Main outputs in 2016:
Description Indicator Target Latest known results
DG NEAR
website
Number of visits
Number of unique
visitors
Number of page views
Top pages viewed by
users
Pages per visit
1.500.000
1.000.000
3.000.000
n/a
n/a
1.907.394
1.275.428
3.364.973
n/a
n/a
DG NEAR
social media
(Facebook and
Number of people
reached
Number of impressions
Fan engagement rate
Facebook: average
reach by post:
60,000
Twitter: 450,000
(overall)
Facebook: 3%
Twitter: 1%
Average number of
engagements by post
Facebook: 1450
Twitter: 36
Facebook: overall:
15,408,500,
average reach by
post: 130,250
Twitter: 5,847,300
Facebook: 6.2%
Twitter: 3.9%
Average number of
engagements by post
Facebook: 1900,
Twitter: 55
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Annual communication spending (based on estimated commitments):
Baseline (2015): Target (2016): Total amount
spent
Total of FTEs working on
external communication
EUR 18,258,542.97 EUR 22,655,000 EUR 22,950,0003 15
3 Including pro rata annual commitment of EUR 5 million for the Regional Communication Programme OPEN
Neighbourhood.
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ANNEX 3: Draft annual accounts and financial reports
Table 1 : Commitments
Table 2 : Payments
Table 3 : Commitments to be settled
Table 4 : Balance Sheet
Table 5 : Statement of Financial Performance
Table 5 Bis: Off Balance Sheet
Table 6 : Average Payment Times
Table 7 : Income
Table 8 : Recovery of undue Payments
Table 9 : Ageing Balance of Recovery Orders
Table 10 : Waivers of Recovery Orders
Table 11 : Negotiated Procedures (excluding Building Contracts)
Table 12 : Summary of Procedures (excluding Building Contracts)
Table 13 : Building Contracts
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TABLE 1: OUTTURN ON COMMITMENT APPROPRIATIONS IN 2016 (in Mio EUR)
Commitment
appropriations authorised
Commitments made %
1 2 3=2/1
Title 19 Foreign policy instruments
19 19 05 Cooperation with third countries under the Partnership Instrument (PI)
0,176855 0 0,00 %
Total Title 19 0,176855 0 0,00%
Title 22 Neighbourhood and enlargement negotiations
22 22 01
Administrative expenditure of the 'Neighbourhood and enlargement negotiations' policy area
56,49685345 44,2951462 78,40 %
22 02 Enlargement process and strategy
2351,895404 2342,02635 99,58 %
22 04 European Neighbourhood Instrument (ENI)
2291,326832 2261,81122 98,71 %
Total Title 22 4699,71909 4648,13272 98,90%
Total DG NEAR 4699,895945 4648,13272 98,90 %
* Commitment appropriations authorised include, in addition to the budget voted by the legislative authority, appropriations carried over from the previous exercise, budget amendments as well as miscellaneous commitment appropriations for the period (e.g. internal and external assigned revenue).
0, %
20, %
40, %
60, %
80, %
100, %
120, %
% Outturn on commitment appropriations
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TABLE 2: OUTTURN ON PAYMENT APPROPRIATIONS IN 2016 (in Mio EUR)
Chapter Payment
appropriations authorised *
Payments made %
1 2 3=2/1
Title 19 Foreign policy instruments
19 19 05
Cooperation with third countries under the Partnership Instrument (PI)
0,956222 0,55813705 58,37 %
Total Title 19 0,956222 0,55813705 58,37%
Title 22 Neighbourhood and enlargement negotiations
22 22 01
Administrative expenditure of the 'Neighbourhood and enlargement negotiations' policy area
65,33905532 45,33907032 69,39 %
22 02
Enlargement process and strategy 1051,9106 982,9607291 93,45 %
22 04
European Neighbourhood Instrument (ENI)
2243,860326 1998,691071 89,07 %
Total Title 22 3361,109981 3026,99087 90,06%
Total DG NEAR 3362,066203 3027,549007 90,05 %
* Payment appropriations authorised include, in addition to the budget voted by the legislative authority, appropriations carried over from the previous exercise, budget amendments as well as miscellaneous payment appropriations for the period (e.g. internal and external assigned revenue).
0, %
10, %
20, %
30, %
40, %
50, %
60, %
70, %
80, %
90, %
100, %
="% Outturn on payment appropriations"
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TABLE 3 : BREAKDOWN OF COMMITMENTS TO BE SETTLED AT 31/12/2016 (in Mio EUR)
2016 Commitments to
be settled
Commitments to be settled
from
Total of commitments to be settled at end
Total of commitments
to be settled at end
Chapter Commitments 2016
Payments 2016
RAL 2016 % to be settled
financial years previous to
2016
of financial year 2016(incl
corrections)
of financial year 2015 (incl.
corrections)
1 2 3=1-2 4=1-2/1 5 6=3+5 7
Title 19 : Foreign policy instruments
19 19 05
Cooperation with third countries under the Partnership Instrument (PI)
0 0,00 0 0,00 % 1,23 1,23 1,78
Total Title 19 0 0,00 0 0,00% 1,22511501 1,22511501 1,78325206
Title 22 : Neighbourhood and enlargement negotiations
22 22 01
Administrative expenditure of the 'Neighbourhood and enlargement negotiations' policy area
44,19632524 38,70 5,50057013 12,45
% 0,00 5,50 8,84
22 02
Enlargement process and strategy
2342,026354 303,65 2038,373456 87,03
% 3.285,89 5.324,26 4021,86
22 04
European Neighbourhood Instrument (ENI)
2261,811218 316,05 1945,763264 86,03
% 5.326,42 7.272,19 7256,23
Total Title 22 4648,033897 658,40 3989,637291 85,83% 8612,313609 12601,9509 11286,9371
Total DG NEAR 4648,033897 658,40 3989,637291 85,83
% 8613,538724 12603,17601 11288,7204
DG NEAR_aar_2016_annexes_final Page 17 of 224
0,00
1.000,00
2.000,00
3.000,00
4.000,00
5.000,00
6.000,00
7.000,00
8.000,00
="Breakdown of Commitments remaining to be settled (in Mio EUR)"
0,00
1.000,00
2.000,00
3.000,00
4.000,00
5.000,00
6.000,00
7.000,00
8.000,00
="Breakdown of Commitments remaining to be settled (in Mio EUR)"
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P.III.2. Accumulated Surplus / Deficit 4.697.450.707,28 1.489.250.222,89
Non-allocated central (surplus)/deficit* -6.152.537.061,96 -
2.240.129.363,34
TOTAL 0,00 0,00
It should be noted that the balance sheet and statement of financial performance presented in Annex 3 to this Annual Activity Report, represent only the assets, liabilities, expenses and revenues that are under the control of this Directorate General.
Significant amounts such as own resource revenues and cash held in Commission bank accounts are not included in this Directorate General's accounts since they are managed centrally by DG Budget, on whose balance sheet and statement of financial performance they appear.
Furthermore, since the accumulated result of the Commission is not split amongst the various Directorates General, it can be seen that the balance sheet presented here is not in equilibrium.
Additionally, the figures included in tables 4 and 5 are provisional since they are, at this date, still subject to audit by the Court of Auditors. It is thus possible that amounts included in these tables may have to be adjusted following this audit.
TABLE 4 : BALANCE SHEET NEAR
BALANCE SHEET 2016 2015
A.I. NON CURRENT ASSETS
732.558.982,24 678.765.417,98
A.I.4. Non-Current Financial Assets 384.221.295,53 412.573.389,53
A.I.5. Non-Current Pre-Financing 347.837.686,71 266.192.028,45
A.I.6. Non-Cur Exch Receiv & Non-Ex Recoverab
500.000,00
A.II. CURRENT ASSETS 1.692.100.411,57 1.364.594.312,18
A.II.1. Current Financial Assets 38.332.281,60 54.350.437,30
A.II.2. Current Pre-Financing 1.410.331.552,89 1.091.884.790,46
A.II.3. Curr Exch Receiv &Non-Ex Recoverables
20.290.117,74 30.897.670,92
A.II.6. Cash and Cash Equivalents 223.146.459,34 187.461.413,50
ASSETS 2.424.659.393,81 2.043.359.730,16
P.I. NON CURRENT LIABILITIES -1.582.010,00 -6.215.823,07
P.I.2. Non-Current Provisions -1.582.010,00 -6.215.823,07
P.I.3. Non-Current Financial Liabilities 0,00
P.III. NET ASSETS/LIABILITIES -56.721.562,83 -63.140.864,83
P.III.1. Reserves -56.721.562,83 -63.140.864,83
P.II. CURRENT LIABILITIES -911.269.466,30 -
1.223.123.901,81
P.II.2. Current Provisions -19.639.163,00 -13.310.076,00
P.II.4. Current Payables -107.097.735,40 -138.295.020,44
P.II.5. Current Accrued Charges &Defrd Income
-784.532.567,90 -1.071.518.805,37
LIABILITIES -969.573.039,13 -
1.292.480.589,71
NET ASSETS (ASSETS less LIABILITIES) 1.455.086.354,68 750.879.140,45
DG NEAR_aar_2016_annexes_final Page 19 of 224
TABLE 5 : STATEMENT OF FINANCIAL PERFORMANCE NEAR
STATEMENT OF FINANCIAL PERFORMANCE 2016 2015
II.1 REVENUES -33.257.092,56 -49.010.081,09
II.1.1. NON-EXCHANGE REVENUES -11.367.784,90 -92.255,42
II.1.1.5. RECOVERY OF EXPENSES -6.665.467,98 -92.255,42
II.1.1.6. OTHER NON-EXCHANGE REVENUES -4.702.316,92
II.1.2. EXCHANGE REVENUES -21.889.307,66 -48.917.825,67
II.1.2.1. FINANCIAL INCOME -19.048.552,80 -25.015.577,52
II.1.2.2. OTHER EXCHANGE REVENUE -2.840.754,86 -23.902.248,15
II.2. EXPENSES 2.291.917.432,14 3.257.210.565,48
II.2. EXPENSES 2.291.917.432,14 3.257.210.565,48
II.2.10.OTHER EXPENSES 24.568.114,58 50.352.112,17
II.2.1. EXP IMPLEM BY MEMBER STATES (SHARED)
139.541.073,14 201.938.647,48
II.2.2. EXP IMPLEM BY COMMISS&EX.AGENC. (DM) 1.305.329.512,27 2.075.253.349,90
II.2.3. EXP IMPL BY OTH EU AGENC&BODIES (IM) 338.348,22 -502.657,33
II.2.4. EXP IMPL BY 3RD CNTR & INT ORG (IM) 653.632.257,35 735.578.621,25
II.2.5. EXP IMPLEM BY OTHER ENTITIES (IM) 148.481.228,19 176.975.647,94
II.2.6. STAFF AND PENSION COSTS 383.690,60
II.2.8. FINANCE COSTS 19.643.207,79 17.614.844,07
STATEMENT OF FINANCIAL PERFORMANCE 2.258.660.339,58 3.208.200.484,39
It should be noted that the balance sheet and statement of financial performance presented in Annex 3 to this Annual Activity Report, represent only the assets, liabilities, expenses and revenues that are under the control of this Directorate General.
Significant amounts such as own resource revenues and cash held in Commission bank accounts are not included in this Directorate General's accounts since they are managed centrally by DG Budget, on whose balance sheet and statement of financial performance they appear.
Furthermore, since the accumulated result of the Commission is not split amongst the various Directorates General, it can be seen that the balance sheet presented here is not in equilibrium.
Additionally, the figures included in tables 4 and 5 are provisional since they are, at this date, still subject to audit by the Court of Auditors. It is thus possible that amounts included in these tables may have to be adjusted following this audit.
DG NEAR_aar_2016_annexes_final Page 20 of 224
TABLE 5bis : OFF BALANCE SHEET NEAR
OFF BALANCE 2016 2015
OB.1. Contingent Assets 203.605.305,46 275.150.322,02
GR for performance 50.312.649,68 67.693.315,10
GR for pre-financing 133.418.792,23 176.747.083,90
OB.1.4. CA Other 19.873.863,55 30.709.923,02
OB.2. Contingent Liabilities -1.900.000,00 -1.900.000,00
OB.2.1. CL Guarantees given -300.000,00 0,00
OB.2.7. CL Amounts relating to legal cases -1.600.000,00 -1.900.000,00
OB.3. Other Significant Disclosures -11.816.667.670,19 -10.185.156.616,18
OB.3.1. Undrawn commitments 0,00 0,00
OB.3.2. Comm against app. not yet consumed -11.816.667.670,19 -10.185.156.616,18
OB.4. Balancing Accounts 11.614.962.364,73 9.911.906.294,16
OB.4. Balancing Accounts 11.614.962.364,73 9.911.906.294,16
OFF BALANCE 0,00 0,00
It should be noted that the balance sheet and statement of financial performance presented in Annex 3 to this Annual Activity Report, represent only the assets, liabilities, expenses and revenues that are under the control of this Directorate General. Significant amounts such as own resource revenues and cash held in Commission bank accounts are not included in this Directorate General's accounts since they are managed centrally by DG Budget, on whose balance sheet and statement of financial performance they appear. Furthermore, since the accumulated result of the Commission is not split amongst the various Directorates General, it can be seen that the balance sheet presented here is not in equilibrium. Additionally, the figures included in tables 4 and 5 are provisional since they are, at this date, still subject to audit by the Court of Auditors. It is thus possible that amounts included in these tables may have to be adjusted following this audit.
DG NEAR_aar_2016_annexes_final Page 21 of 224
TABLE 6: AVERAGE PAYMENT TIMES FOR 2016 - DG NEAR
Legal Times
Maximum Payment Time (Days)
Total Number of Payments
Nbr of Payments within Time Limit
Percentage Average Payment
Times (Days)
Nbr of Late Payments
Percentage Average Payment
Times (Days)
21 1 1 100,00 % 13
30 1717 1424 82,94 % 1,302,301,494 293 17,06 % 8,251,459,034
40 1 1 100,00 % 16
45 868 548 63,13 % 2,547,793,439 320 36,87 % 9,751,244,289
50 1 1 100,00 % 67
51 1 1 100,00 % 25
54 1 1 100,00 % 6
56 2 2 100,00 % 16,5
60 1534 1327 86,51 % 3,126,927,633 207 13,49 % 9,261,554,346
73 2 2 100,00 % 39
86 1 1 100,00 % 35
90 824 723 87,74 % 3,933,413,179 101 12,26 % 1,310,826,506
120 1 1 100,00 % 54
Total Number of Payments
4954 4032 81,39 % 922 18,61 %
Average Net Payment Time
3,846,550,468 2,547,112,805 9,529,123,851
Average Gross Payment Time
554,663,221 3,855,320,333 1,294,291,148
Target Times
DG NEAR_aar_2016_annexes_final Page 22 of 224
Target Payment Time (Days)
Total Number of Payments
Nbr of Payments within Target
Time Percentage
Average Payment
Times (Days)
Nbr of Late Payments
Percentage Average Payment
Times (Days)
20 376 311 82,71 % 1,005,666,621 65 17,29 % 3,503,114,035
30 940 371 39,47 % 1,715,053,137 569 60,53 % 7,462,059,978
60 1 1 100,00 % 96
75 1 1 100,00 % 105
Total Number of Payments
1318 682 51,75 % 636 48,25 %
Average Net Payment Time
4,129,561,132 1,391,564,564 7,065,588,899
Average Gross Payment Time
653,419,651 264,642,154 1,070,316,275
Suspensions
Average Report Approval
Suspension Days
Average Payment Suspension Days
Number of Suspended Payments
% of Total Number
Total Number of Payments
Amount of Suspended Payments
% of Total Amount
Total Paid Amount
5 55 1522 30,72 % 4954 524.630.430,48 18,02 % 2.910.792.390,75
Late Interest paid in 2016
DG GL Account Description
Amount (Eur)
NEAR 65010000 Interest expense on late payment of charges 63 259,67
NEAR 65010100 Interest on late payment of charges New FR 23 394,38
86 654,05
DG NEAR_aar_2016_annexes_final Page 23 of 224
TABLE 7 : SITUATION ON REVENUE AND INCOME IN 2016
Revenue and income recognized Revenue and income cashed from Outstanding
Chapter Current year RO Carried over RO Total Current Year RO Carried over RO Total balance
1 2 3=1+2 4 5 6=4+5 7=3-6
52 REVENUE FROM INVESTMENTS OR LOANS GRANTED, BANK AND OTHER INTEREST
1.107.955,95 6.225,71 1.114.181,66 845.186,15 4.520,71 849.706,86 264.474,80
57 OTHER CONTRIBUTIONS AND REFUNDS IN CONNECTION WITH THE ADMINISTRATIVE OPERATION OF THE INSTITUTION
1.864,42 0,00 1.864,42 1.864,42 0,00 1.864,42 0,00
59 OTHER REVENUE ARISING FROM ADMINISTRATIVE MANAGEMENT
7.780,97 0,00 7.780,97 7.780,97 0,00 7.780,97 0,00
63 CONTRIBUTIONS UNDER SPECIFIC AGREEMENTS
5.682.160,72 0,00 5.682.160,72 5.682.160,72 0,00 5.682.160,72 0,00
66 OTHER CONTRIBUTIONS AND REFUNDS 41.893.099,18 29.448.642,13 71.341.741,31 34.412.950,65 10.745.108,20 45.158.058,85 26.183.682,46
81 LOANS GRANTED BY THE COMMISSION 34.056.361,15 5.703.518,10 39.759.879,25 29.466.915,14 5.703.518,10 35.170.433,24 4.589.446,01
90 MISCELLANEOUS REVENUE 0,00 276.753,90 276.753,90 0,00 0,00 0,00 276.753,90
Total DG NEAR 82.749.222,39 35.435.139,84 118.184.362,23 70.416.858,05 16.453.147,01 86.870.005,06 31.314.357,17
DG NEAR_aar_2016_annexes_final Page 24 of 224
TABLE 8 : RECOVERY OF PAYMENTS (Number of Recovery Contexts and corresponding Transaction Amount)
INCOME BUDGET RECOVERY ORDERS
ISSUED IN 2016
Error Irregularity Total undue
payments recovered
Total transactions in recovery context(incl. non-
qualified) % Qualified/Total RC
Year of Origin (commitment) Nbr RO Amount Nbr RO Amount Nbr RO Amount Nbr RO Amount Nbr RO Amount
2003 1 228.624,47 1 228.624,47 1 228.624,47 100,00% 100,00%
2004 1 2.702.274,59 1 2.702.274,59 2 2.770.109,81 50,00% 97,55%
2005 4 2.445.251,24
2006 3 963.629,22 3 963.629,22 6 966.102,92 50,00% 99,74%
2007 2 126.692,97 1 377.918,36 3 504.611,33 8 718.651,86 37,50% 70,22%
2008 2 42.123,01 2 42.123,01 15 1.611.240,30 13,33% 2,61%
2009 6 34.047,72 5 209.514,00 11 243.561,72 25 1.287.656,40 44,00% 18,92%
2010 7 59.309,74 15 817.379,67 22 876.689,41 27 1.088.814,61 81,48% 80,52%
2011 2 15.798,18 26 2.076.727,34 28 2.092.525,52 66 7.331.277,57 42,42% 28,54%
2012 20 3.191.645,85 20 3.191.645,85 60 5.127.155,84 33,33% 62,25%
2013 2 260.815,43 24 776.960,72 26 1.037.776,15 67 7.044.277,14 38,81% 14,73%
2014 20 1.918.259,71 20 1.918.259,71 48 3.014.430,54 41,67% 63,64%
2015 1 293,70 1 293,70 5 41.958,34 20,00% 0,70%
No Link 2 1.483.360,79 2 1.483.360,79 26 47.355.024,57 7,69% 3,13%
Sub-Total 20 496.957,74 120 14.788.417,73 140 15.285.375,47 360 81.030.575,61 38,89% 18,86%
DG NEAR_aar_2016_annexes_final Page 25 of 224
EXPENSES BUDGET
Error Irregularity OLAF Notified Total undue
payments recovered
Total transactions in recovery context(incl.
non-qualified)
% Qualified/Total RC
Nbr Amount Nbr Amount Nbr Amount Nbr Amount Nbr Amount Nbr Amount
INCOME LINES IN INVOICES
NON ELIGIBLE IN COST CLAIMS
82 4.408.564,12 163 108.354.609,88 245 112.763.174,00 324 116.710.344,39 75,62% 96,62%
CREDIT NOTES 63 1.283.987,13 174 1.254.733,22 237 2.538.720,35 331 11.249.314,26 71,60% 22,57%
Sub-Total 145 5.692.551,25 337 109.609.343,10 482 115.301.894,35 655 127.959.658,65 73,59% 90,11%
GRAND TOTAL 165 6.329.629,24 457 125.048.170,22 622 131.377.799,46 1015 208.990.234,26 61,28% 54,96%
DG NEAR_aar_2016_annexes_final Page 26 of 224
TABLE 9: AGEING BALANCE OF RECOVERY ORDERS AT 31/12/2016 FOR NEAR
Number at 01/01/2016
Number at 31/12/2016
Evolution Open Amount
(Eur) at 01/01/2016
Open Amount (Eur) at
31/12/2016 Evolution
2002 1 1 0,00 % 129.919,66 129.024,98 -0,69 %
2005 2 2 0,00 % 267.184,00 267.184,00 0,00 %
2006 2 2 0,00 % 771.200,00 771.200,00 0,00 %
2007 5 5 0,00 % 473.469,35 473.469,35 0,00 %
2008 4 3 -25,00 % 405.460,33 244.734,53 -39,64 %
2009 5 5 0,00 % 337.684,48 337.684,48 0,00 %
2010 6 4 -33,33 % 723.850,75 128.929,75 -82,19 %
2011 11 8 -27,27 % 2.307.537,93 1.900.609,29 -17,63 %
2012 16 12 -25,00 % 1.573.495,63 1.320.258,37 -16,09 %
2013 21 18 -14,29 % 3.291.704,87 3.235.687,35 -1,70 %
2014 33 25 -24,24 % 6.083.813,00 2.866.333,66 -52,89 %
2015 71 30 -57,75 % 19.119.144,68 7.356.201,91 -61,52 %
2016 77 12.724.848,79
177 192 8,47 % 35.484.464,68 31.756.166,46 -10,51 %
TABLE 10 : RECOVERY ORDER WAIVERS IN 2016 >= EUR 100.000
Waiver
Central Key Linked RO Central Key
RO Accepted Amount
(Eur) LE Account Group
Commission Decision
Comments
1 3233160066 3241006390 -366.501,00
2 3233160075 3230807546 -160.725,80
3 3233160097 3241207946 -110.268,00
4 3233160144 3241009635 -228.420,00
5 3233160146 3241112343 -270.000,00
Total DG -1.135.914,80
Number of RO waivers 5
Justifications:
DG NEAR_aar_2016_annexes_final Page 28 of 224
TABLE 11 : CENSUS OF NEGOTIATED PROCEDURES - DG NEAR - 2016
External Actions > EUR 20,000
Negotiated Procedure Legal base
Number of Procedures Amount (EUR)
Art. 242 1c) 4 1.865.875,00
Art. 246 1c) 1 29.763,26
Art. 266.1(a) 3 657.760,00
Art. 266.1(b) 6 5.816.560,00
Art. 266.1(c) 14 10.791.986,00
Art. 266.1(f) 2 827.308,00
Art. 268.1(a) 2 562.190,00
Art. 268.1(c) 4 946.369,31
Art. 268.1(d) 3 2.025.139,36
Art. 268.1(h) 2 297.985,52
Art. 270.1(b) 2 3.288.438,44
Art. 270.1(e) 3 2.818.316,70
Total 46 29.927.691,59
Procurement > EUR 60,000
Negotiated Procedure Legal base
Number of Procedures Amount (EUR)
Art. 134.1(c) 2 1.212.519,00
Art. 134.1(e) 1 592.000,00
Total 3 1.804.519,00
DG NEAR_aar_2016_annexes_final Page 29 of 224
TABLE 12 : SUMMARY OF PROCEDURES OF DG NEAR EXCLUDING BUILDING CONTRACTS
External Procedures > EUR 20,000
Procedure Type Count Amount (EUR)
External Procedures > EUR 20,000
(Ext. act) Exceptional Negotiated Procedure with a single offer (Art. 266 RAP)
1 110.000,00
(Ext. act) Service - Competitive Negotiated Procedure with at least three candidates without pub. (Art. 265.1(b) & 3 RAP)
9 1.418.976,60
(Ext. act) Service - Competitive Negot.Proc. with at least three candidates without pub.(Art. 265.1(b) & 3 RAP)
46 6.577.272,31
(Ext. act) Service - Exceptional Negotiated Procedure with a single offer (Art. 266 RAP)
25 18.033.614,00
(Ext. act) Service - International Open Procedure with prior publication (Art. 265(1)(a)(ii) RAP)
2 2.693.990,00
(Ext. act) Service - International Restricted Procedure with prior publication (Art. 265.1(a)(i) & 2 RAP)
83 183.450.356,55
(Ext. act) Service - International Restr.Proc. with four to eight tenderers after prior pub (Art. 241.1(a)&2IR)
1 201.500,00
(Ext. act) Service - Negotiated Procedure with a single offer (Art. 242 IR)
4 1.865.875,00
(Ext. act) Supply - Competitive Negot.Proc. with at least three candidates without pub.(Art.267.1(b)(ii)&2 RAP)
3 146.472,00
(Ext. act) Supply - Exceptional Negotiated Procedure with a single offer (Art. 268 RAP)
11 3.831.684,19
(Ext. act) Supply - International Open Procedure after publication of a contract notice (Art. 267.1(a) RAP)
34 17.992.828,84
(Ext. act) Supply - Local open procedure with prior publication (Art. 267.1(b)(i) RAP)
4 482.610,00
(Ext. act) Works - Exceptional Negotiated Procedure with a single offer (Art. 270 RAP)
5 6.106.755,14
(Ext. act) Works - Local Open Procedure with prior publication (Art.269.1(b) RAP)
10 9.660.463,11
(Ext. act) Works - Local Open Procedure with prior publication (Art.269(1) (b) RAP)
1 685.468,96
(Ext. act) Works - Negotiated Procedure with a single offer (Art. 246 IR)
1 29.763,26
TOTAL 240 253.287.629,96
DG NEAR_aar_2016_annexes_final Page 30 of 224
Internal Procedures > EUR 60,000
Procedure Type Count Amount (EUR)
Internal Procedures > EUR 60,000
Exceptional Negotiated Procedure without publication of a contract notice (Art. 134 RAP)
3 1.804.519,00
Negotiated Procedure with at least five candidates below Directive thresholds (Art. 136a RAP)
1 118.000,00
Open Procedure (Art. 127.2 RAP)
1 1.166.000,00
TOTAL 5 3.088.519,00
DG NEAR_aar_2016_annexes_final Page 31 of 224
TABLE 13 : BUILDING CONTRACTS
Total number of contracts :
1
Total amount :
85.440,00
Legal base Contract Number Contractor Name Description
Amount (EUR)
Art. 134.1(g) 0837408
ENTER COMPUTERS DOO*
Annual renewal of the Lease contract for the EU Info Centre in Podgorica (Year 4)
85.440,00
DG NEAR_aar_2016_annexes_final Page 32 of 224
ANNEX 4: Materiality criteria
The criteria used by DG NEAR to determine the materiality of potential
weaknesses have been established in line with the Standing Instructions for the
2016 AAR. These instructions propose a standard quantitative materiality
threshold of maximum 2% for the authorized payments of the reporting year,
but also allow a multi-annual approach. Because of their multiannual nature, the
effectiveness of DG NEAR's control strategy can only be fully measured and
assessed once all audits, checks and controls have been fully implemented and
systematic errors have been detected and corrected.
The question of being on track towards the control objective of legality and
regularity is to be reassessed annually, taking into account both the frequency
and importance of the errors found as well as a cost/benefit analysis of the effort
needed to detect and correct them. Notwithstanding the multiannual span of DG
NEAR’s control strategy, its Director-General is required to sign a statement of
assurance for each financial reporting year. In order to determine whether to
qualify this statement of assurance with a reservation, the effectiveness of the
control systems in place needs to be assessed not only for the year of reference
but also with a multiannual perspective, to determine whether it is possible to
reasonably conclude that the control objectives will be met in the future as
foreseen.
The identification and potential correction of internal control weaknesses (and -
in particular - errors with financial impact), the criteria for making a decision on
whether there is material error in the expenditure of the DG and the question of
whether to make a reservation in the AAR, will therefore be based on the full
range of internal controls described in the AAR and on the level of error identified
in the RER Studies on a multi-annual basis and in the Annual Reports by the
ECA.
In quantitative terms:
DG NEAR ensures that the RER, i.e. the level of errors which remain undetected
and uncorrected, does not exceed 2% by the end of the management cycle. DG
NEAR considers that a weakness is quantitatively significant and deserves to be
disclosed as a reservation to the Declaration when the value of the transactions
affected by this weakness represents more than 2% of all the transactions of the
same nature (instrument, management mode) closed during the period under
review (01/09/2015 – 31/08/2016).
In qualitative terms:
DG NEAR considers issuing a reservation if (i) significant errors, taking into
account their frequency of occurrence, or (ii) significant weaknesses in the
Internal Control have been identified.
The identification of significant weaknesses in the Internal Control system is
derived from various sources, such as the annual assessment of internal controls
(ICAD), the conclusions from reports issued by the various control bodies (ECA,
IAS) and major issues that have been outlined by the various controlling bodies
or situations where a significant reputational risk may occur (e.g. major fraud
cases or decisions with a significantly negative political impact).
DG NEAR_aar_2016_annexes_final Page 33 of 224
ANNEX 5: Internal Control Template(s) for budget implementation (ICTs)
I – Direct Management - Grants
Stage 1: Prior to Contracting
A – Identification and formulation of action to be co-financed including choice of instrument and implementation modality
Main control objectives: Ensuring that the Commission selects the most appropriate instrument in its cooperation with partner
countries in line with the policy objectives (effectiveness); compliance (legality & regularity) and ensures the proper type of support and
modalities specific to each partner country
Overall control efficiency indicator: Estimated cost of controls of grant operations divided by total amount of expenditure under grant
operations in the year.
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The instrument and/or
implementation modality
is not well suited to work
towards the identified
objectives and/or lead to a
substantial increase of
implementation risks.
Quality Review
100%
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of grant operations up to
the identification and
formulation divided by
total amount of grants
contracted.
DG NEAR_aar_2016_annexes_final Page 34 of 224
B - Preparation, adoption and publication of the Annual Work Programmes and Calls for proposals
Main control objectives: Ensuring that the Commission selects the proposals that contribute the most towards the achievement of the
policy or programme objectives (effectiveness); Compliance (legality & regularity); Prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The annual work
programmes and the
subsequent calls for
proposals do not
adequately reflect the
policy objectives,
priorities, are incoherent
and/or the essential
eligibility, selection and
award criteria are not
adequate to ensure the
evaluation of the
proposals.
Hierarchical validation
within the authorising
department
Explicit allocation of
responsibility to
individual officials
(reflected in task
assignment or function
descriptions)
Centralised checklist-
based verification
If risk materialises, all
grants awarded during
the year under this work
programme or call would
be irregular. Possible
impact 100% of budget
involved and significant
reputational
consequences.
Coverage / Frequency:
100%
Depth: Checklist
includes a list of the
requirements of the
regulatory provisions
identified.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of grant preparation
adpption and publication
divided by total amount
of grants contracted.
DG NEAR_aar_2016_annexes_final Page 35 of 224
C - Selecting and awarding: Evaluation, ranking and selection of proposals
Main control objectives: Ensuring that the most promising projects for meeting the policy objectives are among (a good balance of) the
proposals selected (effectiveness); Compliance (legality & regularity); Prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The evaluation, ranking
and selection of proposals
is not carried out in
accordance with the
established procedures,
the policy objectives,
priorities and/or the
essential eligibility, or
with the selection and
award criteria defined in
the annual work
programme and
subsequent calls for
proposals.
Assignment of staff (e.g.
programme officers)
and/or
Selection and
appointment of expert
evaluators (if foreseen as
deviation from FR)
100% vetting for
technical expertise and
independence (e.g.
conflicts of interests,
nationality bias, ex-
employer bias, collusion)
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of grant selection divided
by total amount of grants
contracted.
Redress procedure
100% of contested
decisions are analysed by
redress committee
DG NEAR_aar_2016_annexes_final Page 36 of 224
Stage 2 - Contracting: Transformation of selected proposals into legally binding grant agreements
Main control objectives: Ensuring that the actions and funds allocation is optimal (best value for public money; effectiveness, economy,
efficiency); Compliance (legality & regularity); Prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The description of the
action in the grant
agreement includes tasks
which do not contribute
to the achievement of the
programme objectives
and/or that the budget
foreseen overestimates
the costs necessary to
carry out the action.
The beneficiary lacks
operational and/or
financial capacity to carry
out the actions.
Procedures do not comply
with regulatory
framework.
Project Officers
implement evaluators’
recommendations in
discussion with selected
applicants. Hierarchical
validation of proposed
adjustments.
Validation of beneficiaries
(operational and financial
viability).
Signature of the grant
agreement by the AO.
In-depth financial
verification and taking
appropriate measures for
high risk beneficiaries.
Reinforce financial and
contractual circuits.
100% of the selected
proposals and
beneficiaries are
scrutinised.
Coverage: 100% of draft
grant agreements.
Depth may be
determined after
considering the type or
nature of the beneficiary
(e.g. SMEs, joint-
ventures) and/or of the
modalities (e.g.
substantial
subcontracting) and/or
the total value of the
grant.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
related to contracting of
implementation divided
by total amount of grants
contracted.
DG NEAR_aar_2016_annexes_final Page 37 of 224
Stage 3 - Monitoring the execution. This stage covers the monitoring the operational, financial and reporting aspects related to the
project and grant agreement
Main control objectives: ensuring that the operational results (deliverables) from the projects are of good value and meet the
objectives and conditions (effectiveness & efficiency); ensuring that the related financial operations comply with regulatory and
contractual provisions (legality & regularity); prevention of fraud (anti-fraud strategy); ensuring appropriate accounting of the operations
(reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The actions foreseen are
not, totally or partially,
carried out in accordance
with the technical
description and
requirements foreseen in
the grant agreement
and/or the amounts paid
exceed that due in
accordance with the
applicable contractual
and regulatory
provisions.
Operational and financial
checks in accordance
with the financial circuits.
Operation authorisation
by the AO
For riskier operations, ex-
ante in-depth and/or on-
site verification.
100% of the projects are
controlled, including only
value-adding checks.
Riskier operations subject
to in-depth and/or on-
site controls.
The depth depends on
risk criteria. - staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
related to monitoring of
implementation divided
by total amount of
payments made under
grant contracts
For high risk operations,
reinforced monitoring
Risk assessment to
identify potential ROM,
evaluations and on-the-
spot (OV and/or FV)
monitoring visit. Earmark
projects for risk-based
system audits (during the
first phase of
implementation of the
project) and financial
audits (after receiving at
least one interim
payment or at the end of
the project) : (see below
annual control plans)
High risk operations
identified by risk criteria.
Red flags: delayed
interim deliverables,
suspicion of plagiarism,
unstable consortium,
requesting many
amendments, Early
Detection and Exclusion
System (EDES), etc.
DG NEAR_aar_2016_annexes_final Page 38 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
If needed: application of
Suspension/interruption
of payments, Penalties or
liquidated damages.
Referring grant to OLAF
Depth: depends from
results of controls.
Expenditure verification
accompanying
Any request for
payment of the
balance in the
case of grants of
more than EUR
100,000;
Any request for
pre-financing
payments per
financial year in
case of grants of
EUR 5.000,000 or
more.
Annual Control Plans:
Audits and expenditure
verifications are planned
annually for ongoing and
closed operations of DG
NEAR overall portfolio.
The operations to be
verified or audited are
determined through risk
analyses. These controls
can take place before or
after disbursements
Coverage: > 10% of
ongoing or "recently"
closed operations
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
related to audits and
verifications of
implementation divided
by total amount of grant
contracts
DG NEAR_aar_2016_annexes_final Page 39 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
recognizing expenditure.
DG NEAR_aar_2016_annexes_final Page 40 of 224
Stage 4 - Ex-Post controls and Follow-up
A - Reviews, audits and monitoring
Main control objectives: Measuring the effectiveness of ex-ante controls by ex-post controls; detect and correct any error or fraud
remaining undetected after the implementation ex-ante controls (legality & regularity; anti-fraud strategy); addressing systemic
weaknesses in the ex-ante controls, based on the analysis of the findings (sound financial management); Ensuring appropriate accounting
of the recoveries to be made (reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The ex-ante controls (as
such) fail to prevent,
detect and correct
erroneous payments or
attempted fraud.
The ex-post controls
focus on the detection of
external errors (e.g.
made by beneficiaries).
Through a residual error
rate (RER) study a
representative sample of
closed operations is
reviewed in order to
determine the
effectiveness of the
pyramid of controls put in
place by the DG.
Findings are validated
with fund recipients, used
for possible ex-post
corrections (i.e.
recoveries), taken into
consideration for
improvements of ex-ante
controls, and referred to
OLAF where needed.
MUS sample sufficiently
representative to draw
valid management
conclusions.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of RER
controls of grant
operations divided by
total amount of
expenditure under grant
operations in the year.
Supervision missions to
Delegations by
independent staff not
involved in the
operational and financial
circuits
Size and composition of
sample are determined in
accordance with the
cooperation portfolios
managed by the visited
Delegations.
Staff costs of controls
including mission costs
Estimated cost of
supervision missions
DG NEAR_aar_2016_annexes_final Page 41 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
DG NEAR_aar_2016_annexes_final Page 42 of 224
B - Implementing results from ex-post audits/controls
Main control objectives: Ensuring that the (audit) results from the ex-post controls lead to effective recoveries (legality & regularity;
anti-fraud strategy); Ensuring appropriate accounting of the recoveries made (reliability of reporting)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The errors, irregularities
and cases of fraud
detected are not
addressed or not
addressed timely
Systematic registration of
audit / control results to
be implemented.
Financial operational
validation of recovery in
accordance with financial
circuits.
Authorisation by AO.
Coverage: 100% of final
audit results with a
financial impact.
Findings of systemic
errors are considered for
corrections of non-
audited projects by the
same beneficiary, taken
into account for future
projects.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of follow
up of financial
recommendations on
grant operations divided
by total amount of
expenditure under grant
operations in the year.
DG NEAR_aar_2016_annexes_final Page 43 of 224
II – Direct Management - Procurement
A – Identification and formulation of action to be co-financed including choice of instrument and implementation modality
Stage 1: Prior to Contracting
Main control objectives: Ensuring that the Commission selects the most appropriate instrument in its cooperation with partner
countries in line with the policy objectives (effectiveness); compliance (legality & regularity) and ensures the proper type of support and
modalities specific to each partner country
Overall control efficiency indicator: Estimated cost of controls of procurement operations divided by total amount of expenditure
under procurement contracts in the year.
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The instrument and/or
implementation modality
is not well suited to work
towards the identified
objectives and/or lead to a
substantial increase of
implementation risks.
Quality Review
100%
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of procurement
operations up to the
identification and
formulation divided by
total amount of
procurement contracts
concluded in the year.
DG NEAR_aar_2016_annexes_final Page 44 of 224
B - Planning the procurement
Main control objectives: Effectiveness, efficiency and economy. Compliance (legality and regularity).
Overall cost efficiency indicator: total cost of controls of process / total expenditure executed during the year
Main risks
It may happen (again)
that…
Mitigating controls How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
The needs are not well
defined (operationally
and economically) and
that the decision to
procure was
inappropriate to meet the
operational objectives
Discontinuation of the
services provided due to
a late contracting (poor
planning and
organisation of the
procurement process)
Validation by AO(S)D of
justification (economic ,
operation) for launching
a procurement process.
Publication of intended
procurements / Work
programme.
100% of the forecast
procurements
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Estimated cost of
controls of the planning
of procurement
operations divided by
total amount of
procurement contracts
concluded in the year.
DG NEAR_aar_2016_annexes_final Page 45 of 224
C - Needs assessment & definition of needs
Main control objectives: Effectiveness, efficiency and economy. Compliance (legality and regularity).
Main risks
It may happen (again)
that…
Mitigating controls How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
The best offer/s are not
submitted due to the
poor definition of the
tender specifications
AOSD supervision and
approval of
specifications 100% of the calls for tenders
including the technical
specifications are verified ex-
ante by EC staff except for
some of the CFT launched
inside Programme-estimates in
accordance with applicable
rules.
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Estimated cost of
controls of the
supervision of
specifications divided by
total amount of
procurement contracts
concluded in the year.
Call for tenders which
are technically complex
are elaborated by
external experts
contracted through
service contracts and
then verified by EC
staff.
DG NEAR_aar_2016_annexes_final Page 46 of 224
D – Selection of the offer & evaluation
Main control objectives: Effectiveness, efficiency and economy. Compliance (legality and regularity). Fraud prevention and detection.
Main risks
It may happen (again)
that…
Mitigating controls
(those in bold are
strongly recommended)
How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
The most economically
advantageous offer not
being selected, due to a
biased, inaccurate or
‘unfair’ evaluation
process
Formal evaluation
process: Opening
committee and
Evaluation committee
100% of the offers analysed.
and all documents transmitted - staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
Estimated cost of
controls of procurement
selection divided by
total amount of
procurements
contracted.
Opening and Evaluation
Committees'
declaration of absence
of conflict of interests
100% of the members of the
opening committee and the
evaluation committee
Exclusion decisions
documented
100% checked and required
documents provided are
consistent
DG NEAR_aar_2016_annexes_final Page 47 of 224
Stage 2 - Contracting: Transformation of selected offers into legally binding contracts
Main control objectives: Ensuring that the actions and funds allocation is optimal (best value for public money; effectiveness, economy,
efficiency); Compliance (legality & regularity); Prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The contractor lacks
operational and/or
financial capacity to carry
out the actions.
Procedures do not comply
with regulatory
framework.
Validation of
substantiating documents
provided by contractors
Signature of contracts by
the AO.
Reinforce financial and
contractual circuits.
100% of tenders are
scrutinized.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
Estimated cost of controls
related to contracting
divided by total amount
of procurements
contracted
DG NEAR_aar_2016_annexes_final Page 48 of 224
Stage 3 – Monitoring Implementation / Financial transactions
Main control objectives: Ensuring that the implementation of the contract is in compliance with the signed contract
Main risks
It may happen (again)
that…
Mitigating controls How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
The
products/services/works
foreseen are not, totally
or partially, provided in
accordance with the
technical description and
requirements foreseen in
the contract and/or the
amounts paid exceed
that due in accordance
with the applicable
contractual and
regulatory provisions.
Business discontinues
because contractor fails
to deliver
Operational and financial
checks in accordance
with the financial
circuits.
Operation authorisation
by the AO
For riskier operations,
ex-ante in-depth and/or
on-site verification.
100% of the projects are
controlled, including only
value-adding checks.
Riskier operations subject to
in-depth and/or on-site
controls.
The depth depends on risk
criteria.
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Estimated cost of
controls related to
monitoring of
implementation divided
by total amount of
payments made under
procurement contracts
For high risk operations,
reinforced monitoring
Risk assessment to
identify potential ROM,
evaluations and on-the-
spot (OV and/or FV)
monitoring visit. Earmark
projects for risk-based
system audits (during
the first phase of
implementation of the
project) and financial
audits (after receiving at
least one interim
payment or at the end of
the project) : (see below
annual control plans)
High risk operations identified
by risk criteria.
Red flags: delayed interim
deliverables, suspicion of
plagiarism, unstable
consortium, requesting many
amendments, Early Detection
and Exclusion System (EDES),
etc.
DG NEAR_aar_2016_annexes_final Page 49 of 224
Main risks
It may happen (again)
that…
Mitigating controls How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
If needed: application of
Suspension/interruption
of payments, Penalties or
liquidated damages.
Referring grant to OLAF
Depth: depends from results
of controls.
Expenditure verification
accompanying most
procurement interim and
final invoices (folloiwng
contractual conditions)
Annual Control Plans:
Audits and expenditure
verifications are planned
annually for ongoing and
closed operations of DG
NEAR overall portfolio.
The operations to be
verified or audited are
determined through risk
analyses. These controls
can take place before or
after disbursements
recognizing expenditure.
Coverage: > 10% of ongoing
or "recently" closed operations
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Estimated cost of
controls related to
audits and verifications
of implementation
divided by total amount
of procurement
contracts
DG NEAR_aar_2016_annexes_final Page 50 of 224
Stage 4 – Ex-Post controls
A - Reviews, audits and monitoring
Main control objectives: Measuring the effectiveness of ex-ante controls by ex-post controls; detect and correct any error or fraud
remaining undetected after the implementation ex-ante controls (legality & regularity; anti-fraud strategy); addressing systemic
weaknesses in the ex-ante controls, based on the analysis of the findings (sound financial management); Ensuring appropriate accounting
of the recoveries to be made (reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
The ex-ante controls (as
such) fail to prevent,
detect and correct
erroneous payments or
attempted fraud.
The ex-post controls
focus on the detection of
external errors (e.g.
made by beneficiaries).
Through a residual error
rate (RER) study a
representative sample of
closed operations is
reviewed in order to
determine the
effectiveness of the
pyramid of controls put in
place by the DG.
Findings are validated
with fund recipients, used
for possible ex-post
corrections (i.e.
recoveries), taken into
consideration for
improvements of ex-ante
controls, and referred to
OLAF where needed.
MUS sample sufficiently
representative to draw
valid management
conclusions.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of RER
controls of procurement
operations divided by
total amount of
expenditure under
procurement operations
in the year.
Supervision missions to
Delegations by
independent staff not
involved in the
operational and financial
circuits
Size and composition of
sample are determined in
accordance with the
cooperation portfolios
managed by the visited
Delegations.
Staff costs of controls
including mission costs
Estimated cost of
supervision missions
DG NEAR_aar_2016_annexes_final Page 51 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine coverage
frequency and depth
How to estimate the
costs of controls
Possible control
indicators
DG NEAR_aar_2016_annexes_final Page 52 of 224
B - Implementing results from ex-post audits/controls
Main control objectives: Ensuring that the (audit) results from the ex-post controls lead to effective recoveries (legality & regularity;
anti-fraud strategy); Ensuring appropriate accounting of the recoveries made (reliability of reporting)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The errors, irregularities
and cases of fraud
detected are not
addressed or not
addressed timely
Systematic registration of
audit / control results to
be implemented.
Financial operational
validation of recovery in
accordance with financial
circuits.
Authorisation by AO.
Coverage: 100% of final
audit results with a
financial impact.
Findings of systemic
errors are considered for
corrections of non-
audited projects by the
same beneficiary, taken
into account for future
projects.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of follow
up of financial
recommendations on
procurement operations
divided by total amount
of expenditure under
procurement operations
in the year.
DG NEAR_aar_2016_annexes_final Page 53 of 224
III – Direct Management - Budgetary support
Stage 1: Identification and formulation
Main control objectives: Ensuring that the Commission selects the most appropriate instrument in its cooperation with partner
countries in line with the policy objectives (effectiveness); compliance (legality & regularity) and ensures the proper type of support and
modalities specific to each partner country
Overall control efficiency indicator: Estimated cost of controls of budget support operations divided by total amount of expenditure
under budget support operations in the year.
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
1.- The Commission
supports partner countries
which do not meet the
criteria on fundamental
values and/or the 4
eligibility criteria
2.- The programme is
wrongly formulated to
meet the general
objectives for budget
support programmes.
3.- The programme's
Quality Review in HQ to
analyse the identification
fiche of the project.
100% of BS FIP
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of identification and
formulation divided by
total amount of
expenditure under budget
support operations in the
year.
Quality Review in HQs to
analyse the action fiche
of the project and the
draft Financing
agreement.
100 % of BS FAs
DG NEAR step by step
financial circuit for level
one commitments in
budget support
operations.
100 % of BS FAs
DG NEAR_aar_2016_annexes_final Page 54 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
specific objectives are not
aligned with partner
countries own
development policies, are
not coordinated with other
aligned donors and are not
consistent with EU
development policy.
RISK assessment
framework for budget
operations: Implemented
by the Delegation and
reviewed in the FAST4 for
substantial or high risk
BS programmes.
Substantial or high risk
BS FAs
4 Financial Assistance Steering Committee.
DG NEAR_aar_2016_annexes_final Page 55 of 224
Stage 2 – Contracting.
Main control objectives: Ensuring that the main parameters of the budget support operation are correctly encoded in the contract
database.
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
Important parameters
relevant for
disbursements under
budget support
operations are wrongly
encoded.
DG NEAR step by step
financial circuit for level
two commitments in
budget support
operations.
100% of parampeters
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
Estimated cost of controls
of staff verifying the main
parameters divided by
total amount of
expenditure under budget
support operations in the
year.
DG NEAR_aar_2016_annexes_final Page 56 of 224
Stage 3 – Monitoring of the implementation – operational, financial and reporting aspects.
Main control objectives: Ensuring that the operational results meet the conditions, objectives and expected results (effectiveness &
efficiency); Ensuring that the related financial operations comply with regulatory and contractual provisions (legality & regularity);
ensuring appropriate accounting of the operations (reliability of reporting, safeguarding of assets and information).
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
1. The Commissions fails
to identify a significant
deterioration of
fundamental values
and/or wrong
assessment on the 4
eligibility criteria before
BS payments are
released.
2. The Commission
makes a wrong
calculation of the amount
to be disbursed for the
variable tranches
3.- Risk that transfer of
funds into the Treasury
account has not
respected the terms of
the financing Agreement
on exchange rate and
treasury credit delay
Policy structured dialogue
On eligibility, risk
assessment framework
and policy performance
framework;
DG NEAR step by step
financial circuit for
payments in BS
operations;
RISK assessment
framework Implemented
by the Delegation and
reviewed in the FAST for
substantial or high risk
BS programmes
100% of BS payments
100% of BS payments
Substantial or high risks
BS payments
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of monitoring divided by
total amount of
expenditure under budget
support operations in the
year.
DG NEAR_aar_2016_annexes_final Page 57 of 224
Stage 4 – Ex post controls
A – Ex-post controls and follow-up
Main control objectives: Measuring the effectiveness of ex-ante controls; detect and correct any error or fraud remaining undetected
after the implementation of ex-ante controls (legality & regularity; anti-fraud strategy); addressing systemic weaknesses in the ex-ante
controls, based on the analysis of the findings (sound financial management); Ensuring appropriate accounting of the recoveries to be
made (reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The ex- ante controls fail
to prevent, detect and
correct erroneous
disbursements or fraud.
Residual error rate study.
BS payments are
included in the scope of
the RER study (MUS
sample).
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions,
programme/project
portfolios and staff
mission costs.
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of RER
controls of procurement
operations divided by
total amount of
expenditure under
procuremen operations in
the year. t
Estimated cost of
supervision missions
Review of sample
transactions during
supervisopn missions to
Delegations.
Size and composition of
sample are determined in
accordance with the
cooperation portfolios
managed by the visited
Delegations.
DG NEAR_aar_2016_annexes_final Page 58 of 224
B - Implementing results from ex-post audits/controls
Main control objectives: Ensuring that the results from ex-post controls lead to appropriate corrective measures (legality & regularity;
anti-fraud strategy).
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The deficiencies, errors,
and irregularities
detected through ex-post
controls are not
addressed (timely).
Systematic registration of
ex-post control outcomes
to be implemented.
Authorisation by AO.
Coverage: 100% of ex-
post control outcomes
with a financial impact.
Findings of systemic
errors might be extended
to non-audited projects
by the same country
partner.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of follw up
of findings divided by
total amount of
expenditure under
Budget Support
operations in the year.
DG NEAR_aar_2016_annexes_final Page 59 of 224
IV Indirect Management by beneficiary countries (IMBC) under IPA5
Stage 1 – Programming, evaluation and selection of proposals
A - Preparation, adoption and publication of the Programming decision(s) (including choice of management mode),
publication evaluation and selection of proposals/offers
Main control objectives: Ensuring that the Commission selects the implementation mode and subsequently the /proposals/offers that
contribute the most towards the achievement of the policy or programme objectives (effectiveness); compliance (legality & regularity);
prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
5 Please note that the mode of implementation for IMBC has different modalities under IPA and ENI. The implementation modalities referred to here are the ones of IPA.
DG NEAR_aar_2016_annexes_final Page 60 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The Decision(s) do not
adequately reflect the
policy objectives,
priorities;
For IPA, the
establishment (or
prolongation) of the
mandate of the partner
country is affected by
issues, which would
undermine the basis for
the management of the
related EU funds (via that
particular entity);
Hierarchical validation within the
authorising department;
Inter-service consultation,
including all relevant DGs;
Adoption by the Commission
Systems audits (de-centralised
management under IPA)
Recommended:
(1) Explicit allocation of
responsibility to individual
officials (reflected in task
assignment or function
descriptions)
(2) Use of standardised
checklist-based verification
If risk materialises
risk that some or all
costs would be
irregular. Possible
impact on budget
involved and
significant
reputational
consequences.
Coverage /
Frequency: 100%
Depth: Checklists
includes a list of the
necessary
requirements
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Effectiveness:
- Systems audit findings
- Corrective measures
- Consumption rate of
commitment credits
Efficiency: Cost of
control for the
programming phase over
the total cost of control
and its evolution.
DG NEAR_aar_2016_annexes_final Page 61 of 224
B - Selecting and awarding: Evaluation and selection of proposals/offers
Main control objectives: Ensuring that the most promising proposals / best value for money offers for meeting the policy objectives are
among (a good balance of) the proposals / are the offers selected (effectiveness); Compliance (legality & regularity); Prevention of fraud
(anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The evaluation, ranking
and selection of
proposals/offers is not
carried out in accordance
with the policy
objectives, priorities
and/or the essential
eligibility, or with the
selection and award
criteria defined in the
Decisions and subsequent
calls for
proposals/tenders.
Eligibility, selection and
award criteria are not
adequate to ensure the
evaluation of the
proposals/offers;
Assignment of staff (e.g. Task
Managers)
Use of standardised checklist-
based verification
100%6
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of
control are based on
values of respective
contracts and related
disbursements
Effectiveness:
-Relevant rejection rates
Efficiency Indicators:
Cost of control for the
evaluation phase over the
total cost of control and
its evolution.
6 With regard to de-centralised management: the Conferral of Management decisions in place for the reporting period stipulate ex ante control of 100% of transactions
prepared by the National Authorities in the beneficiary countries up to the contract signature. In the case of Turkey a progressive drawing down of exante controls has started to be implemented.
DG NEAR_aar_2016_annexes_final Page 62 of 224
Stage 2 - Contracting: Transformation of selected proposals / offers into legally binding grant agreements / contracts
Main control objectives: Ensuring that the actions and fund allocation is optimal (best value for public money; effectiveness, economy,
efficiency); Compliance (legality & regularity); Prevention of fraud (anti-fraud strategy)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage,
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The description of the
action in the grant
agreement /contracts
includes tasks which do
not contribute to the
achievement of the
operational objectives
and/or that the budget
foreseen overestimates
the costs necessary to
carry out the action.
The beneficiary
/contractor does not
meet eligibility criteria or
lack financial capacity to
carry out the actions
Assignment of staff (e.g. Task
Managers)
Use of standardised checklist-
based verification
100% of the
selected proposals /
offers and
beneficiaries /
candidates are
scrutinised.
Coverage: 100% of
draft grant
agreements /
contracts.
NB: the contracting
authority is the
relevant national
authority, so
process does not
included contract
signature by
Commission
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
Effectiveness:
- Rejection Rates7
- Derogations, prior
approvals and other
exceptions authorised
Efficiency indicators:
Cost of control for the
contracting phase over
the total cost of control
and its evolution.
7 Ratio between the number of rejections of tender, evaluation, and contracts documents submitted by National Implementing Agencies (IAs) for the Commission’s ex
ante control and the absolute number of submissions of documents for approval in the reporting year.
DG NEAR_aar_2016_annexes_final Page 63 of 224
Stage 3 - Monitoring the execution. This stage covers the monitoring the operational, financial and reporting aspects related to the
project and grant agreement
Main control objectives: ensuring that the operational results (deliverables) from the projects are of good value and meet the
objectives and conditions (effectiveness & efficiency); ensuring that the related financial operations comply with regulatory and
contractual provisions (legality & regularity); prevention of fraud (anti-fraud strategy); ensuring appropriate accounting of the operations
(reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage,
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The actions foreseen are
not, totally or partially,
carried out in accordance
with the technical
description and
requirements foreseen in
the grant agreement
/contract and/or the
amounts paid exceed that
due in accordance with
the applicable contractual
and regulatory provisions
(ineligible/irregular).
Operational monitoring in
accordance with the
responsibilities of the
Commission
For high/very high projects this
may include on the spot
missions
100% of the
projects are
monitored;
Systems audits (de-
centralised
management)
implemented
according to
systems audit
programme;
Riskier operations
subject to in-depth
and/or on-site
controls;
The depth depends
on risk assessment.
- staff costs of control
are estimated using
approximations based
on analyses of the
organogram, job
descriptions and
programme/project
portfolios
Effectiveness:
- Systems audit findings
- Corrective measures
- Irregularities reported
by the National
authorities;
- Efficiency
Indicators:
Cost of control for the
monitoring phase over
the total cost of
control and its
evolution.
If needed: application of
Suspension/interruption of
payments, Penalties or
liquidated damages.
Referring grant to OLAF
High risk operations
identified by risk
assessment
Depth: depends on
results of ex ante
controls / risk
assessment.
DG NEAR_aar_2016_annexes_final Page 64 of 224
Stage 4 - Ex-Post controls
A - Reviews, audits and monitoring
Main control objectives: Measuring the effectiveness of ex-ante controls; detect and correct any error or fraud remaining undetected
after the implementation ex-ante controls (legality & regularity; anti-fraud strategy); addressing systemic weaknesses in the ex-ante
controls, based on the analysis of the findings (sound financial management); Ensuring appropriate accounting of the recoveries to be
made (reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage,
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The ex-ante controls fail
to prevent, detect and
correct erroneous
payments or attempted
fraud.
Specific statistically
representative RER study for
IMBC
Carry out ex post control
audits of a representative
sample of operations to
identify errors, recovery
unduly paid amounts, and
establish the residual error
rates
Validate audit results with
beneficiary
If needed: refer case to OLAF
Methodology
developed by an
external auditor.
2016 coverage is
80% in value.
Representative
sample: sample
sufficiently
representative to
draw valid
management
conclusions
Risk-based sample,
determined in
accordance with the
selected criteria
Costs: estimation of
cost of staff involved in
the coordination and
execution of the audit
strategy. Cost of
contracts with audit
firms for the
outsourced audits.
external costs of
control are based on
values of respective
contracts and related
disbursements
Estimated cost of RER,
other audits and staff
controls of IPA IMBC
operations divided by
total amount of
expenditure under IAP
IMBC operations in the
year.
The audit strategy focus
on the detection of
external errors (e.g.
made by beneficiaries)
and do not consider any
internal errors made by
staff or embedded
systematically in the own
Establish an audit strategy,
performed by independent
staff not involved in the
operational and financial
circuits
ideally, the sample
will be representative
to enable drawing
valid management
conclusions about the
entire population
during the
programme’s
Staff costs of controls
including mission costs
Estimated cost of control
missions
DG NEAR_aar_2016_annexes_final Page 65 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage,
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
organisation lifecycle.
B - Implementing results from ex-post audits/controls
Main control objectives: Ensuring that the (audit) results from the ex-post controls lead to effective recoveries (legality & regularity;
anti-fraud strategy); Ensuring appropriate accounting of the recoveries made (reliability of reporting)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage,
frequency and
depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The errors, irregularities
and cases of fraud
detected are not
addressed or not
addressed timely
Systematic registration of
audit / control results to be
implemented.
Financial operational validation
of recovery in accordance with
financial circuits.
Authorisation by the relevant
AOSD
Coverage: Final
audit results with a
financial impact.
Findings of systemic
errors might be
extended to non-
audited projects by
the same beneficiary
Costs: estimation of
cost of staff involved in
the coordination and
execution of the audit
strategy. Cost of
contracts with audit
firms for the
outsourced audits.
external costs of
control are based on
values of respective
contracts and related
Effectiveness:
- Total recovery orders
issued
- Corrective measures
V - Indirect management with International Organisations and Member States Agencies
DG NEAR_aar_2016_annexes_final Page 66 of 224
Stage 1 – Prior to Contracting
A – Ex-ante (re)assessment of the entrusted entity’s financial and control framework (towards “budget autonomy”;
“financial rules”).
Main control objectives: Ensuring that the entrusted entity is fully prepared to start/continue implementing the delegated funds
autonomously with respect of all 5 ICOs.
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The financial and control
framework deployed by
the entrusted entity is
not fully mature to
guarantee achieving all 5
ICOs (legality and
regularity, sound financial
management, true and
fair view reporting,
safeguarding assets and
information, anti-fraud
strategy).
Ex-ante assessment,
conditional to granting
budget autonomy
Hierarchical validation
within the authorising
department
Requiring justification
and prior consent for any
deviating financial rules
Postponing the budget
autonomy
Obligation to notify any
subsequent changes
embedded in Board
proceedings
Coverage/frequency:
100% of entrusted
entities/once
Depth may be
determined after
considering the type or
nature of the entrusted
entity (e.g. other
international organisation
with a specific EC
agreement, EIB/EIF,
PPPs, CFSP persons, etc)
and/or the value of the
budget concerned.
Costs of control:
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
(1) Overall cost of
controls implemented by
DG NEAR staff divided by
the annual amount
delegated (excluding
remuneration paid).
(2) Remuneration and/or
fees paid to entrusted
entities divided by the
annual amount delegated
(excluding remuneration
paid).
DG NEAR_aar_2016_annexes_final Page 67 of 224
B - Identification and formulation
Main control objectives: Ensuring that the Commission selects the most appropriate instrument in its cooperation with partner
countries in line with the policy objectives (effectiveness); compliance (legality & regularity) and ensures the proper type of support and
modalities specific to each partner country
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The instrument and/or
implementation modality
is not well suited to work
towards the identified
objectives and/or lead to a
substantial increase of
implementation risks.
Quality Review
100%
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
in the identification and
formulation phases
divided by total amount
of contracts concluded in
the year.
DG NEAR_aar_2016_annexes_final Page 68 of 224
Stage 2 – Contracting (i.e. Establishment (or prolongation) of the mandate to the entrusted entity (“delegation act”/
“contribution agreement” / etc)).
Main control objectives: Ensuring that the legal framework for the management of the relevant funds is fully compliant and regular
(legality & regularity), delegated to an appropriate entity (best value for public money, economy, efficiency), without any conflicts of
interests (anti-fraud strategy).
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The establishment (or
prolongation) of the
mandate of the entrusted
entity is affected by legal
issues, which would
undermine the legal basis
for the management of
the related EU funds (via
that particular entity).
The establishment of the
delegated acts concerned
(Pagoda, Imda,
previously Delegation
Agreements and
Contribution Agreements)
is submitted to
hierarchical validation
within the authorising
department and to Inter-
service consultation,
including all relevant
DGs.
Coverage: 100%
Frequency: once
If risk materialises, all
funds delegated during
the year(s) to the
entrusted entity would be
irregular. Possible impact
100% of budget involved
and significant
reputational
consequences.
Costs of control:
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
Estimated cost of controls
of the mandate divided
by total amount of
contracts concluded in
the year.
The Commission has not
sufficient information
from independent
sources on the entity’s
management
achievements, which
prevents drawing
conclusions on the
assurance for the budget
entrusted to the entity –
which may reflect
negatively on the
Commission’s governance
reputation and quality of
Agreements specify the
control, accounting,
audit, publication, etc
related requirements –
incl. independent audit
function and cooperation
with IAS and ECA
- potential escalation of
any major governance-
related issues with
entrusted entities
- referral to OLAF
Coverage: 100%
DG NEAR_aar_2016_annexes_final Page 69 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
reporting.
DG NEAR_aar_2016_annexes_final Page 70 of 224
Stage 3 – Monitoring the implementation
A - Operations: monitoring, supervision, reporting (“representation” / “control with or around the entity”).
Main control objectives: Ensuring that the Commission is fully and timely informed of any relevant management issues encountered by
the entrusted entity, in order to possibly mitigate any potential financial and/or reputational impacts (legality & regularity, sound financial
management, true and fair view reporting, anti-fraud strategy).
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
Due to weak "modalities
of cooperation,
supervision & reporting",
the Commission is not
(timely) informed of
relevant management
issues encountered by
the entrusted entity,
and/or does not (timely)
react upon notified issues
by mitigating them or by
making a reservation for
them – which may reflect
negatively on the
Commission’s governance
reputation and quality of
accountability reporting.
Agreement specifying the
control, accounting,
audit, publication, etc
related requirements –
incl. the modalities on
reporting back relevant
and reliable control
results
Monitoring or supervision
of the entrusted entity
(e.g. ‘regular’ monitoring
meetings at operational
level; review of reported
control results and any
underlying mngt/audit
reports; representation
and intervention at the
board, scrutiny of annual
report, etc).
Management review of
the supervision results.
If appropriate/needed:
- reinforced monitoring of
operational and/or
financial aspects of the
Coverage: 100% of the
entities are monitored /
supervised.
Frequency: meetings
take place regularly
depending on the
delegated activities and
delegated entities,
reports submitted at least
annually (depending of
contractual provisions).
In case of operational
and/or financial issues,
measures are being
reinforced.
The depth depends on
the mandate of the (type
of) entity, inter alia
whether the Commission
has full access to the
entity’s internal control
information.
Costs of control:
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
of monitoring divided by
total amount of
expenditure under IMEE
operations in the year.
DG NEAR_aar_2016_annexes_final Page 71 of 224
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
entity
- intervention, e.g. via
own audits on-the-spot,
by IAS
- potential escalation of
any major governance-
related issues with
entrusted entities
- referral to OLAF
Annual Control Plans:
Verification of
expenditure are planned
annually for ongoing and
closed operations of DG
NEAR overall portfolio.
The operations to be
verified are determined
through risk analyses.
These controls can take
place before or after
disbursements
recognizing expenditure.
Coverage: > 10% of
ongoing or "recently"
closed operations
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
related to verifications of
implementation divided
by total amount of IMEE's
contracts
DG NEAR_aar_2016_annexes_final Page 72 of 224
B – Commission contribution: payment or suspension/interruption.
Main control objectives: Ensuring that the Commission fully assesses the management situation at the entrusted entity, before either
paying out the (next) contribution for the operational and/or operating budget of the entity, or deciding to suspend/interrupt the (next)
contribution (legality & regularity, sound financial management, anti-fraud strategy).
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The Commission pays out
the (next) contribution to
the entrusted entity,
while not being aware of
the management issues
that may lead to financial
and/or reputational
damage.
Agreement specifying the
control, accounting,
audit, publication, etc
related requirements –
incl. reporting back
Management review of
the supervision results.
Ex-ante OV and FV, ‘in-
depth’ if need be
Hierarchical validation of
contribution payment and
recovery of non-used
operating budget subsidy
If appropriate/needed:
suspension or
interruption of payments
Coverage: 100% of the
contribution payments.
Frequency: usually
annually but can be more
frequent depending on
the contractual
provisions.
The depth depends on
the mandate of the (type
of) entity, inter alia
whether the Commission
has full access to the
entity’s internal control
information.
Costs of control:
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of controls
related to verifications of
implementation divided
by total amount of IMEE's
contracts
DG NEAR_aar_2016_annexes_final Page 73 of 224
Stage 4 - Ex-Post controls and Follow-up
A - Reviews, audits, verifications and monitoring
Main control objectives: Measuring the effectiveness of ex-ante controls by ex-post controls; detect and correct any error or fraud
remaining undetected after the implementation ex-ante controls (legality & regularity; anti-fraud strategy); addressing systemic
weaknesses in the ex-ante controls, based on the analysis of the findings (sound financial management); Ensuring appropriate accounting
of the recoveries to be made (reliability of reporting, safeguarding of assets and information)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs and benefits of
controls
Possible control
indicators
The ex-ante controls (as
such) fail to prevent,
detect and correct
erroneous payments or
attempted fraud.
The ex-post controls
focus on the detection of
external errors (e.g.
made by beneficiaries)
and do not consider any
internal errors made by
staff or embedded
systematically in the own
organisation
Through a residual error
rate (RER) study a
representative sample of
closed operations is
reviewed in order to
determine the
effectiveness of ex-ante
controls.
Findings are validated
with fund recipients, used
for possible ex-post
corrections (i.e.
recoveries), taken into
consideration for
improvements of ex-ante
controls, and referred to
OLAF where needed.
MUS sample sufficiently
representative to draw
valid management
conclusions.
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of RER
controls of IMEE's
operations divided by
total amount of
expenditure in the year.
Supervision missions to
Delegations by
independent staff not
involved in the
operational and financial
circuits
Size and composition of
sample are determined in
accordance with the
cooperation portfolios
managed by the visited
Delegations.
Staff costs of controls
including mission costs
Estimated cost of
supervision missions
DG NEAR_aar_2016_annexes_final Page 74 of 224
B - Implementing results from ex-post controls
Main control objectives: Ensuring that the results from the ex-post controls lead to effective recoveries (legality & regularity; anti-fraud
strategy); Ensuring appropriate accounting of the recoveries made (reliability of reporting)
Main risks
It may happen (again)
that…
Mitigating controls
How to determine
coverage, frequency
and depth
How to estimate the
costs of controls
Possible control
indicators
The errors, irregularities
and cases of fraud
detected are not
addressed or not
addressed timely
Systematic registration of
control results to be
implemented.
Financial operational
validation of recovery in
accordance with financial
circuits.
Authorisation by AO.
Coverage: 100% of final
audit results with a
financial impact.
Findings of systemic
errors are considered for
corrections of other
projects by the same
beneficiary, taken into
account for future
projects
Costs of control:
- staff costs of control are
estimated using
approximations based on
analyses of the
organogram, job
descriptions and
programme/project
portfolios
- external costs of control
are based on values of
respective contracts and
related disbursements
Estimated cost of follow
up of recommendations
on IMEE's operations
divided by total amount
of expenditure in the
year.
DG NEAR_aar_2016_annexes_final Page 75 of 224
ANNEX 6: Implementation through national or
international public-sector bodies and bodies governed by private law with a public sector mission
Remarks
This report is generated to comply with DG BUDG's standing instructions for the Annual
Activity Report. Annex 6 of the Annual Activity Report should include information about
implementing tasks entrusted to national or international public sector bodies and bodies
governed by private law with a public sector mission. At least the following information is
required for each entity which implemented programmes in the reporting year:
programmes concerned, annual budgetary amount entrusted, duration of the delegation,
justification of the recourse to indirect centralised management, justification of the
selection of the bodies and a summary description of the implementing tasks entrusted
to these bodies.
The BO report thus extracts the list of delegation agreements of the reporting year. Such
contracts (or contract amendments) are identified based on their Budget Management
Type (indirect management) and through the organizations implementing the
programmes (Implemented By Code), which may be public law bodies (PL), private law
bodies with a public sector mission (PM) or public law bodies implementing public-private
partnerships (PP).
The report combines financial information originating from ABAC and operational
information from CRIS to meet the requirements of the BUDG.
DG NEAR_aar_2016_annexes_final Page 76 of 224
Contract Number
Contract
Title
Financial Management
Area
Programm
es concerned (Instrumen
t)
Entity in
Charge
Del in Charg
e
Benefitting zone
LC Type
LC Type
description
BMT
Implemented
by Code
Implemented by
LEF
Complete
Name
Original contract EC Signature Date
Original Contract Contract
or Signatur
e Date
Authorizing Office
r Signature Date (Latest in the
year)
Start date
End date
Com L2
Accepted
Amount
(Eur)
Justification of the recourse to indirect centralised
management
Justification of the selection of the bodies
Summary description of the implementing tasks entrusted to
these bodies
351612
Convention de délégation
BGUE
ENI NEAR B 03
Tunisia
Tunisia
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000509044
AGENCE FRANCAISE D'EXPERTISE TECHNIQUE INTERNATIONALE
1/12/2014
10/12/2014
15/07/2016
19/09/2014
18/12/2018
80.000,00
Indirect centralised management is justified as it allows deeper impact at local level. Participatory approach, inclusion, localised participation will be guaranteed throughout the project by EUNIC/British council. This management mode will favour networking and sharing of experiences.
EUNIC/British Council will promote Tunisian cultural diversity and access to culture at local, national and international level. The implementing body will support freedom of expression among young generations and will encourage capacity building and professionalisation of workers of the cultural sector. EUNIC through its different members will promote transfer of expertise and best practices at European level. EUNIC members are in close contact with civil society organisations and can ensure better interaction. the British council is pillar-assessed and has gone through a ISO 9001: 2008 quality certification exercise
The tasks entrusted to EUNIC/british council are: - call for proposals/ call for candidatures (promoting culture and freedom of expression at local level; support the organisation of festivals and support to heritage protection) - technical assistance - capacity building - setting up of a demand-driven expertise pool - awareness raising and promotion campaigns - mapping, studies, assessments - training programme
355442
Support to solid waste management in Jordanian communities hosting Syrian refugees
BGUE
ENI NEAR B 01
Jordan
Jordan
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
23/12/2014
28/12/2014
15/06/2016
1/01/2015
31/05/2017
500.000,00
A part of this action with the objective of improving the waste disposal services in the governorates of Irbid and Mafraq through rehabilitating existing landfill facilities may be implemented in indirect management with Gesellschaft für Internationale Zusammenarbeit (GiZ) in
accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.
This implementation is justified because GiZ (i) has a substantial proven track-record of project implementation in Jordan, in particular in the area of water and wastewater infrastructure (ii) is currently implementing a pilot operation in solid waste management in the governorates under consideration.
Improve the waste disposal services in Irbid and Mafraq through rehabilitating existing landfill facilities, upgrading transfer capacities and strengthening Joint Services Councils administrative and technical capacities.
355468
Promoting financial inclusion through improved governance and outreach of Microfinance in Jordan
BGUE
ENI NEAR B 01
Jordan
Jordan
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
18/12/2014
23/12/2014
20/12/2016
1/01/2015
31/12/2018
100.000,00
A part of this action with the objective of reinforcing the institutional and organisation capacities of key public institutions will be implemented in indirect centralised management with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in accordance with Article 54(2)(c) of Financial Regulation 1605/2002.
This implementation is justified because the expertise of this Member State agency in the area of microfinance is recognised and it is already providing technical assistance to the Central Bank of Jordan in the area of microfinance regulation and supervision.
The agency will support the development of organisational and institutional capacities at the Central Bank of Jordan, the Development and Employment Fund and the Ministry of Planning and International Cooperation (MoPIC) and contract the relevant key studies and assessments identified in the National Policy as well as consumer protection campaigns. Ancillary technical assistance will be provided in the form of policy advice to the Government of Jordan.
DG NEAR_aar_2016_annexes_final Page 77 of 224
372758
Supporting the private sector development in Lebanon
BGUE
ENI NEAR B 01
Lebanon
Lebanon
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000509044
AGENCE FRANCAISE D'EXPERTISE TECHNIQUE INTERNATIONALE
11/02/2016
25/02/2016
11/02/2016
25/02/2016
24/09/2019
15.000.000,
00
This action may be implemented in indirect management with Expertise France in accordance with Article 58(1) of Regulation (EU, Euratom) N° 966/2012.
Expertise France has been selected for the following reasons i) Due to the complexity and technical nature of the programme, Indirect Management with a Member State agency is the preferred option. Expertise France is the lead implementation agency in the field of private sector development. The agency will be able to fully contribute to the further design of the programme and will be able to adjust it according to the volatile conditions prevailing in the country. ii) Lebanon is highly impacted by the Syrian crisis. The volatile environment as well as the target groups (vulnerable communities) require flexibility and rapid response. iii) The French agency has a good knowledge of the Lebanese background, where it has already implemented projects. iv) A 'peer to peer' approach will be privileged so as to have a better focus on the private sector needs. The agency will be able to mobilise a large network of actors, including Chambers of Commerce and 'field' experts.
The entrusted entity would carry out the following budget-implementation tasks: Establishment and management of a Technical and Financial Coordination Unit (TFCU) and of two main Sector Management and Coordination Units (SMCU); Launching of call for tenders and calls for proposals; Definition of eligibility, selection and award criteria; Evaluation of tenders and proposals; Award of grants, contracts; Concluding, monitoring and managing contracts; Carrying out payments, and recovering amounts due.
373015
Appui au renforcement du secteur culturel tunisien
BGUE
ENI NEAR B 03
Tunisia
Tunisia
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000069973
THE BRITISH COUNCIL ROYAL CHARTER
18/05/2016
6/06/2016
18/05/2016
6/06/2016
5/06/2019
4.000.000,0
0
Indirect centralised management is justified as it allows deeper impact at local level. Participatory approach, inclusion, localised participation will be guaranteed throughout the project by EUNIC/British council. This management mode will favour networking and sharing of experiences.
EUNIC/British Council will promote Tunisian cultural diversity and access to culture at local, national and international level. The implementing body will support freedom of expression among young generations and will encourage capacity building and professionalisation of workers of the cultural sector. EUNIC through its different members will promote transfer of expertise and best practices at European level. EUNIC members are in close contact with civil society organisations and can ensure better interaction. The British council is pillar-assessed and has gone through a ISO 9001: 2008 quality certification exercise.
The tasks entrusted to EUNIC/British council are: - call for proposals/ call for candidatures (promoting culture and freedom of expression at local level; support the organisation of festivals and support to heritage protection) - technical assistance - capacity building - setting up of a demand-driven expertise pool - awareness raising and promotion campaigns - mapping, studies, assessments - training programme
DG NEAR_aar_2016_annexes_final Page 78 of 224
375788
Gaza Emergency Response Window
BGUE
ENI NEAR B 02
West Bank and Gaza Strip
West Bank and Gaza Strip
DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
27/10/2016
11/11/2016
27/10/2016
11/11/2016
10/05/2018
4.500.000,0
0
The action concerns funding for recovery and reconstruction measures for municipalities in Gaza following the severe damages and service interruptions incurred during the Gaza conflict in July-August 2014. The action is implemented through the multi-donor mechanism “Gaza Municipal Emergency Response”, established by the Ministry of Local Government (MoLG), the Municipal Development and Lending Fund (MDLF) and Financing Partners (FPs). The “Gaza Emergency Response Window” has been included as an additional financing window to the Municipal Development Program (MDP) implemented by the MDLF. KfW is the main funding partner of the MDP supporting the programme since its beginning. The Action is implemented in accordance with the Articles 58 (1)(c) and 60 (1) of Regulation (EU, Euratom) No. 966/2012.
KfW is the main funding partner of the Municipal Development Programme (MDP) and has also proved to be a reliable implementing partner for the EU contribution of EUR 7,3 million to the MDPII. The Gaza Emergency Response Window has proved to be a fast channel to provide funds to Gaza. This new window of the MDP, which is operational since December 2014, has already disbursed more than USD 5 million. Furthermore, KfW allocated EUR 5 million to the Gaza Emergency Response Window as parallel funding to the World Bank's multidonor trust fund which allocates USD 3 million from the WB and DKK 60 million from the Government of Denmark to finance this new window for Gaza. Furthermore, KfW will ensure appropriate ex-ante/ex-post controls on the correct applications of procedure and use of funds in line with Article 2.4 of the General Conditions of the Delegation Agreement.
The entrusted entity would carry out the following budget-implementation tasks: general supervision and monitoring of activities, partly contracting, validation and processing of payments, reporting, evaluation and, if necessary, auditing. Procurement and tendering with regard to works and supplies contracts will be sub-delegated to the Municipality Development and Lending Fund (MDLF), which is applying the World Bank procurement rules. Through the MDP II, the PA is allocating grants for capital investment projects and capacity development interventions to municipalities in Gaza in line with the most critical needs identified in the PA post-war municipal damaged assessment. The Gaza Emergency Response window has proved to be a fast channel to provide funds to Gaza.
376096
U-LEAD with Europe: Ukraine Local Empowerment, Accountability and Development Programme – Component 1
BGUE
ENI NEAR C 01
Ukraine
Ukraine
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
20/07/2016
11/08/2016
20/07/2016
1/01/2016
31/12/2019
58.500.000,
00
To maximize the EU impact and visibility in Ukraine by combining EU and Member States efforts; Reduction of transaction costs.
GIZ good record of experience in Ukraine and on decentralisation: GIZ works for over 20 years on the regional and local level all over Ukraine, has an established network and currently already about 150 employees in the country.
GIZ implements component 1 of the U-LEAD with Europea programme on capacity building, including procurement and grant procedures and management of corresponding contracts and payments.
376097
U-LEAD with Europe: Ukraine Local Empowerment, Accountability and Devel
BGUE
ENI NEAR C 02
Ukraine
Ukraine
DAG
Delegation agreement
IM PL Public law bodies
6000074277
SWEDISH INTERNATIONAL DEVELOPMENTCOOPERATION AGENCY SIDA
8/08/2016
18/08/2016
8/08/2016
18/08/2016
17/04/2020
30.000.000,
00
To maximize the EU impact and visibility in Ukraine by combining EU and Member States efforts.
Sweden has more than 150 years of history of decentralised government with most of its public services delivered at local level. A more transparent and efficient public administration, closer to European standards and norms, is one of the main priorities of SIDA in Ukraine.
SIDA implements component 2 of the U-LEAD programme on the set up of administrative centers across Ukraine. SIDA would carry out the following budget-implementation tasks: procurement and grant procedures and management of corresponding contracts and payments.
DG NEAR_aar_2016_annexes_final Page 79 of 224
opment Programme Component 2: Administrative service centres and awareness raising of citizens on local self-governance
376717
Centrale photovoltaïque (PV) à Tozeur
BGUE
ENI NEAR B 03
Tunisia
Tunisia
DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
29/11/2016
29/11/2016
24/11/2016
29/11/2016
28/11/2020
1.605.000,0
0
indirect centralised management is the standard modality for projects adopted in the framework of the Neighbourhood investment facility. In the framework of the NIF a European financial institution presents a project to the NIF board together with a Tunisian promoter.
KfW is the European promoter of this NIF project.KfW has the technical expertise needed for this type of interventions (photovoltaic plant) where technical competencies and expertises are needed.
*- works and supplies- procurement and equipment- project management- technical supervision- technical assistance and accompanying measures- communication and visibility
377482
Local Development Programme for Deprived Urban Areas in North Lebanon
BGUE
ENI NEAR B 01
Lebanon
Lebanon
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
27/12/2016
20.000.000,
00
This action is implemented in indirect management with the GIZ in accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.
This implementation is justified because of the complexity and the political sensitivity of the programme and, after careful comparison between fields of activities and expertise of the various EU Member States development agencies, GIZ was considered as the most appropriate to conduct the activities foreseen in this programme given its expertise in each of the following fields:- Security, reconstruction and peace, - Governance and democracy, - Social development, - Rural development, - Vocational training, - Labour market, - Private sector development, - Economic development and employment, - Sustainable infrastructure.
The entrusted entity would carry out the following budget-implementation tasks: - Establishment and management of a Technical Coordination Unit, - Establishment of partnerships with the concerned local and national authorities, - Establishment of a steering committee, - Launching calls for tenders for works and supervision, - Launching calls for proposals, - Definition of eligibility, selection and award criteria, - Evaluation of tenders and proposals, - Conclusion, monitoring and managing of contracts, - Carrying out payments, and recovering amounts due when appropriate. - Carrying out communication and visibility measures.
DG NEAR_aar_2016_annexes_final Page 80 of 224
378826
''200 MW Wind Farm Project Gulf of Suez''
BGUE
ENI NEAR B 01
Egypt Egypt DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
22/12/2016
27/12/2016
22/12/2016
27/12/2016
26/06/2023
30.680.000,
00
The action consists in an investment in infrastructure. As a blending project in the framework of the Neighbourhood Investment Facility (NIF), the lead European Finance Institution (KfW), requested a grant from the NIF in order to realise the investment. Alignment with the lead EFI procedures and implementation is possible through entrusting the management of EU funds to KfW. Such type of management is the most appropriate to realise such complex infrastructure projects which include several stakeholders, while it gives the possibility for the EU to closely monitor the implementation.
KfW identified the project (project promoter), presented it to the NIF for funding and will be in charge of the implementation as the Lead Financial Institute. This institution has a large experience in the field of renewable energy and is largely present in Egypt. Moreover, a similar project (the 200 MW Gulf of El Zayt Widfarm) was successfully implemented recently under indirect management by the same institution with an EU grant contribution
Activities entrusted to the KfW for the implementation of the "200MW Wind Farm Project Gulf of Suez" are described in Annex I of the Delegation Agreement which lays down the rules for implementation, for the payment of the EU contribution, and defines the relations between the Organisation and the Contracting Authority. This implementation entails overall administration of the activities and Project supervision and no-objection during implementation for tendering of goods and services, disbursement and management of funds. The Delegatee Body will be in charge of the administration, monitoring and reporting; and will monitor and report on implementation of the Action including the no objection of the project's interim and final reports (technical and financial).
379972
Programme contribuant à la dépollution de la Méditerranée (DEPOLMED)
BGUE
ENI NEAR B 03
Tunisia
Tunisia
DAG
Delegation agreement
IM PL Public law bodies
6000095503
AGENCE FRANCAISE DE DEVELOPPEMENT
20/12/2016
28/12/2016
20/12/2016
1/01/2017
31/12/2021
10.750.000,
00
Indirect centralised management is the standard modality for projects adopted in the framework of the Neighbourhood investment facility. In the framework of the NIF a European financial institution presents a project to the NIF board together with a Tunisian promoter.
AFD is the European promoter of this NIF project. AFD has the technical expertise needed for this type of interventions (depollution of coastal areas and depollution of water and sanitation) where technical competencies and expertises are needed.
The project aims to contribute to: • The preservation of water quality along the Tunisian Mediterranean coast, through the reduction of water-related pollution (in line with H2020 objectives and new 5 year plan of Tunisia government, notably environmental protection, resource management, green economy); • Improve living conditions of coastal communities by improving their sanitary environment and access to sanitation services ; • Improve the performance of the National Sanitation Office (ONAS) in its investment programme management functions, operations and maintenance of infrastructure (pumping and depollution stations), and relations with the public (better communication and public consultation), in a perspective of sustainable development and governance of the sector.
DG NEAR_aar_2016_annexes_final Page 81 of 224
381021
Improved access to water, water distribution performance and related sewerage disposal in Irbid Governorate for host communities and Syrian refugees
BGUE
ENI NEAR B 02
Jordan
Jordan
DAG
Delegation agreement
IM PL Public law bodies
6000095503
AGENCE FRANCAISE DE DEVELOPPEMENT
20/12/2016
22/12/2016
20/12/2016
22/12/2016
21/12/2021
19.480.000,
00
In accordance with NIF procedures for evaluation of projects proposed by eligible European Financing Institutions, that are subsequently submitted to the opinion of the NIF Board and EC Decision. The Commission has adopted the Annual Action Programme 2016 contributing to the Neighbourhood Investment Facility from the general budget of the European Union . Following the selection process foreseen in the 2016 Annual Action Programme, some projects to be implemented have been selected.
AFD and KFW are leading implementing agencies in the water sector in Jordan. Over the past years, they have developed a high level of expertise in the sector and are trusted partners for the local authorities. Their institutional and operational network allows to implement project in the water sector in an efficient way that proved to be over the years much welcome by the beneficiary country. The proposal submitted to the NIF was very relevant for the country and the region especially in light of the Syrian influx in the Northern region. The action proposed was also complementary to other EU funded projects in the region.
The Action would include the following activities: • Component 1: Selected Investment in water and wastewater networks in Irbid Governorate (north of Jordan) Component 1.1: Implementation of an improved water distribution network in Irbid and Ramtha • The remaining distribution areas of Irbid, following the Water Master Plan. A detailed design will be needed before launching the tender of this second package. • The six distribution areas of Ramtha. It will come after the completion of Irbid as all the packages cannot easily be implemented simultaneously, given the load of supplementary works for the implementing unit, even though engineering consultant will support this unit. Also, to ensure continuity in Irbid, the completion of Irbid restructuring is prioritized • Component 2: Support to Yarmouk Water Company to ensure the sustainability of water service and to provide improved services to the population.
381119
Appui à la mise en œuvre des réformes budgétaire et comptable
BGUE
ENI NEAR B 03
Tunisia
Tunisia
DAG
Delegation agreement
IM PL Public law bodies
6000509044
AGENCE FRANCAISE D'EXPERTISE TECHNIQUE INTERNATIONALE
29/11/2016
29/11/2016
25/11/2016
31/01/2016
30/10/2019
3.400.000,0
0
The main bulk of this programme is implemented through budget support. However indirect centralised management is used for the supplementary support component. These measures are aimed at accompanying a complex reform of public finance management through objective based budgeting. in order to do so external expertise and highly skilled competences are needed.
Expertise France was selected to promote the transfer of best practices and competences in the field of public finance management and obkjective based budgeting.
The main tasks implemented by Expertise France will be: - accompanying the adoption of the finance bill and support to the drafting of the main complementary/implementing regulations. - technical assistance and capacity building to ensure the smmoth implementation of the public finance management reform - setting up of IT systems and software for public accounting - improve communication and manage change within the Tunisian administration to accompany the reform.
DG NEAR_aar_2016_annexes_final Page 82 of 224
381265
Education for all in times of crisis II
BGUE
IPA2 NEAR A 05
Turkey
Turkey
DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
28/11/2016
5/12/2016
28/11/2016
5/12/2016
4/01/2020
50.000.000,
00
The swift implementation of the project due to the crisis situation in the context of the massive refugee flow from Syria required the intervention of a body with the technical and human capacities to responsibly proceed with the construction of schools as soon as possible. This was only feasible through indirect centralised management and following the 2016 needs assessment jointly elaborated by the European Commission and Turkey.
KFW is a longstanding EU implementing partner in Turkey. They have got the experience and the knowledge of the country's institutions and functioning; a solid structure on the field (which has been even strengthened); and they excel in the field of education infrastructure.
The overall objective of the Action is to cater longer-termdevelopment needs to displaced persons, in particulareducation for children.The specific objectives of the Action are:1) To increase the access to inclusive quality primary andsecondary education opportunities for Turkish and Syrianchildren and youth / Construction of approx. 15 schools,including school furniture and equipment;2) To strengthen the implementation and managementcapacity of MoNE with regard to the construction of schools.
381435
SANAD MENA Fund for Micro-, Small and Medium Enterprises (Phase II)
BGUE
ENI NEAR B 02
Headquarters
Mediterranean Region
DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
22/12/2016
28/12/2016
22/12/2016
28/12/2016
27/06/2031
20.400.000,
00
The programme is implemented by KfW, one of the entities to which the EC entrusts budget implementation tasks under indirect management (art 60 of the FR) via the Neighbourhood Investment Facility (NIF).
The selection of the KfW to which the EC entrusts budget implementation tasks under indirect management (art 60 of the FR) in the context of the NIF is firstly done via the pillar assessment and subsequently via the financing decisions.
The tasks entrusted to tKfW are the subscription and the management of C-shares (acquired with EC funds) for the account of the EC.
381453
National Drainage Program III in the framework of the Joint Integrated Sector Approach in the irrigation sector (NDP III - JISA)
BGUE
ENI NEAR B 01
Egypt Egypt IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
22/12/2016
23/12/2016
22/12/2016
31/01/2024
40.000.000,
00
This action may be implemented in indirect management with KfW in accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.
The Programme consists in investments in infrastructure mainly implemented through civil work contracts. Taking into account the technical expertise in contracting and tendering works contracts, as well as the resources needed for the procurement and operational follow up, the recourse to indirect management is considered to be the most efficient and appropriate implementation modality for the achievement of the foreseen results. Since the 1990’s KfW has contributed to the implementation of the two previous phases, NDP-I and NDP II, of which NDP-III is considered a natural continuation. The beneficiary (MWRI) is aware of the contractual guidelines of KfW due to the previous experience. Delegating the management tasks to KfW, who has the adequate experience in the sector, as well as proven capacity and resources, justified its selection.
This implementation entails overall administration of the activities and Project supervision and no-objection during implementation for tendering of goods and services, disbursement and management of funds. The Delegatee Body will be in charge of the administration, monitoring and reporting; and will monitor and report on implementation of the Action including the no objection of the project's interim and final reports (technical and financial).
DG NEAR_aar_2016_annexes_final Page 83 of 224
381505
Programme National d’Assainissement phase 2 (PNA2) - Amélioration de l'assainissement au Maroc
BGUE
ENI NEAR B 03
Morocco
Mediterranean Region
DAG
Delegation agreement
IM PL Public law bodies
6000095503
AGENCE FRANCAISE DE DEVELOPPEMENT
21/12/2016
26/12/2016
21/12/2016
26/12/2016
25/10/2026
10.300.000,
00
Indirect centralised management is the standard modality for projects adopted in the framework of the Neighbourhood investment facility. In the framework of the NIF a European financial institution presents a project to the NIF board together with a Moroccan promoter.
AFD is the European promoter of this NIF project. AFD has the technical expertise needed for this type of interventions in the field of sanitation where specific technical competenciesare needed, and was the promoter of the previous project in this feld (PNA1) also funded through the NIF.
The entrusted entity would carry out the budget-implementation tasks - including the contract-management steps of the project cycle - for the provision of expertise and accompanying studies enabling the establishment of a legislative, institutional and communication framework for the sanitation sector; as well as for accompanying investments.
382081
Eastern Partnership SME Finance Facility - Phase II KfW
BGUE
ENI NEAR C 01
Headquarters
Eastern Europe Region
DAG
Delegation agreement
IM PL Public law bodies
6000075251
KREDITANSTALT FUR WIEDERAUFBAU
22/12/2016
23/12/2016
22/12/2016
1/03/2017
30/06/2030
5.200.000,0
0
The contract was signed in the context of blending operations under the Neighbourhood Investment Facility. Blending operations are implemented in accordance with Article 58(c) of FR 966/2012 as applicable and with respect to Article 40 of Reg 2015/323 (2) i.e. via indirect management.
The entrusted entity was selected during the selection process within the framework of the Neighbourhood Investment Facility.
The Action combines two pre-agreed KfW loans to the German Ukrainian Fund (GUF), for on-lending to its partner financial institutions (GUF-PFIs) and eligible SMEs, including micro-enterprises, with EU grant resources to support SME lending during the crisis period and beyond. Emphasis is given to stimulating local currency lending through Partner Financial Institutions (GUF-PFIs) in Ukraine.
382245
Upgrading Informal Areas Infrastructures
BGUE
ENI NEAR B 01
Egypt Egypt DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
14/12/2016
22/12/2016
14/12/2016
1/04/2017
30/09/2020
25.000.000,
00
This action may be implemented in indirect management with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.
The proposed intervention aims at contributing to the local socio-economic development in the informal areas of the Greater Cairo Region (GCR) by enhancing the delivery of services through the upgrading of basic community infrastructures. It will complement the ongoing two phases of the "Upgrading Informal Areas project in the GCR" implemented by the GIZ and mostly financed by the EU. These phases are part of a wider intervention of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) called the Participatory Development Programme in Urban Areas (PDP). The GIZ is successfully implementing the first two phases of the project and has accumulated over 10 years of experience in the development of informal areas in Egypt. During these years, it has established strong working relations with all stakeholders. Finally, the GIZ's know-how in works-related programmes will be another asset for this new phase.
The entrusted entity would carry out the following budget-implementation tasks, following its own procedures, covering several contract-management steps of the project cycle: needs assessment and identification of priorities, launching calls for tender; definition of eligibility, selection and award criteria; evaluation of tenders, award of contracts; acting as contracting authority concluding and managing contracts, carrying out payments and recovering moneys dues.
DG NEAR_aar_2016_annexes_final Page 84 of 224
382642
EU Anti-Corruption Initiative in Ukraine
BGUE
ENI NEAR SGUA
Ukraine
Ukraine
DAG
Delegation agreement
IM PL Public law bodies
6000005292
KONGERIGET DANMARK
30/12/2016
16/01/2017
30/12/2016
16/01/2017
15/01/2020
14.500.000,
00
To maximize the EU impact and visibility in Ukraine by combining EU and EU Member States efforts.
Good track record in preventing and fighting corruption of Denmark which scores as 1st in the Transparency International Corruption Perception Index 2015; long-standing experience in the successful implementation of EU-funded projects in third countries; proven expertise in the implementation of technical assistance projects in the area of good governance and anti-corruption projects, proven experience in Ukraine, in particular through its Good Governance program (2015-2018, DKK 60 million), which notably provides support to the establishment of the National Agency for the Prevention of Corruption (with UNDP), criminal justice reform (with the Council of Europe) and the Ombudsperson Office (with UNDP). DANIDA has also supported free media incl. investigative journalism in Ukraine since 2005 and civil society since 2009. Moreover, DANIDA co-finances the upcoming U-LEAD decentralisation programme (approximately DKK 40 million).
Procurement procedures and conclusion of service and supply contracts, allocation of grants and execution of related payments.
382859
Support to the European Humanities University
BGUE
ENI NEAR C 02
Belarus
Belarus
DAG
Delegation agreement
IM PL Public law bodies
6000074277
SWEDISH INTERNATIONAL DEVELOPMENTCOOPERATION AGENCY SIDA
21/12/2016
28/12/2016
21/12/2016
28/12/2016
27/10/2019
2.000.000,0
0
The action involves entrustment of budget implementation tasks in accordance with Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.
This implementation is justified because SIDA has a proven long-term commitment to supporting the EHU by being the biggest EU Member State donor to the university, and is very active in donor co-ordination on the EHU. As one of the most active donors, SIDA has also been very closely following up developments of the EHU in the past two years that led to a management reform of the university.
SIDA manages the EU contribution to the European Humanities University by signing with the EHU an agreement that will specify the range of activities to be funded by the EU contribution and execute the related payments.
383266
Strengthening Public Finance Management in Armenia
BGUE
ENI NEAR C 02
Armenia
Armenia
DAG
Delegation agreement
IM PM Private law bodies with a public service mission
6000057485
DEUTSCHE GESELLSCHAFT FUR INTERNATIONALE ZUSAMMENARBEIT (GIZ) GMBH
30/12/2016
29/12/2016
29/12/2016
1/04/2017
31/12/2019
1.000.000,0
0
It was decided to use indirect centralised management because the project would be best implemented through GIZ due to the expertise of this agency in this field (see next column).
The selection of GIZ for this project is justified since it has valuable expertise in Armenia since 2009. In particular, the three areas of specific support to be provided by GIZ are key area of expertise of GIZ in Armenia, also on the basis of the existing division of labor among local cooperating partners. Finally, GIZ has established strong professional and institutional networks from which this intervention would aslo benefit.
This programme aims at Public Finance Policy Reform in Armenia.The implementing tasks entail supporting the action in the fields of programme budgeting, public oversight and strengthening the external audit function.
23
Sum:
366.995.00
0,00
DG NEAR_aar_2016_annexes_final Page 85 of 224
ANNEX 7: List of Union Delegations submitting an EAMR
22 DG NEAR Delegations have submitted an EAMR report in 2016:
NEAR A TR Turkey IPA
NEAR B DZ Algeria ENI
NEAR B EG Egypt ENI
NEAR B PS West Bank and Gaza Strip ENI
NEAR B IL Israel ENI
NEAR B JO Jordan ENI
NEAR B LB Lebanon ENI
NEAR B MA Morocco ENI
NEAR B SY Syria ENI
NEAR B TN Tunisia ENI
NEAR C AM Armenia ENI
NEAR C AZ Azerbaijan ENI
NEAR C BY Belarus ENI
NEAR C GE Georgia ENI
NEAR C MD Moldova ENI
SGUA UA Ukraine ENI
NEAR D AL Albania IPA
NEAR D BA Bosnia and Herzegovina IPA
NEAR D XK Kosovo IPA
NEAR D ME Montenegro IPA
NEAR D MK The former Yugoslav Republic of
Macedonia IPA
NEAR D RS Serbia IPA
DG NEAR_aar_2016_annexes_final Page 86 of 224
ANNEX 8a: Annual AOSD Report – The EU Regional Trust Fund
in response to the Syrian crisis, The MADAD FUND
2016
Annual AOSD Report for EU Trust
Funds8
The European Union Regional Trust Fund in response to
the Syrian crisis, The MADAD FUND
8 The report included in the AAR does not contain the annexes of the AOSD report.
DG NEAR_aar_2016_annexes_final Page 87 of 224
"We are delivering on our commitment to support refugees and host communities across the region.
With this new package we are well on track to meet our ambitious target to mobilise EUR 1 billion for
the EU Syria Trust Fund and - with the latest contributions and pledges from our Member States and
the EU budget - I expect we shall actually exceed EUR 1.2 billion by early 2017. This funding will
secure better healthcare, education and economic opportunities for those affected by the Syrian
conflict, bringing more stability to the region and beyond''
Commissioner for European Neighbourhood Policy and
Enlargement Negotiations, Johannes Hahn
1. Policy and/or operational highlights of the year
1.1. Policy highlights of the year
The Syrian conflict has triggered the world’s largest humanitarian crisis. Refugees from Syria are
the biggest refugee population from a single conflict in a generation, with over 4.8 million Syrian refugees in neighbouring countries and the wider region.
Countries bordering Syria are hosting the majority of refugees: Lebanon hosts almost 1.1 million
Syria refugees and has, along with Jordan, the largest per capita refugee population in the world.
Turkey is currently hosting some 3 million Syrian refugees, the largest number of Syrian refugees
in one country in the world.
The European Union is the leading donor in the international response to the Syrian crisis with
an overall total of EUR 9 billion from the EU budget and Member States collectively allocated in
humanitarian and development assistance since the start of the conflict in 2011. The European
Commission’s support in response to the Syrian crisis has now exceeded EUR 3.4 billion, including
both immediate humanitarian assistance, and non-humanitarian aid.
The European Commission pledge for 2016 amounts to EUR 1.115 billion. The Commission has also
given an indicative amount for 2017 of EUR 1.275 billion, bringing the total pledge for the two
years to EUR 2.39 billion
The Partnership Priorities and the EU-Lebanon Compact have been adopted on 11
November 2016. In light of the revised European Neighbourhood Policy (ENP) and as announced
at the London Conference "Supporting Syria and the Region" of February 2016, the EU is proposing
a comprehensive support package which combines different policy elements within EU
competencies and which is based on mutual commitments. The Compact priority actions will be
funded through the additional EU funds pledged at the London conference (at least EUR 400 million
in grants). The core objectives of the EU-Lebanon Compact are both to provide an appropriate and
safe environment for refugees1 and displaced persons from Syria, during their temporary stay in
Lebanon, and to provide a beneficial environment for Lebanon, host communities and vulnerable
groups.
For Lebanon, the European Commission has allocated close to EUR 880 million in assistance to
refugees and vulnerable communities in Lebanon since the beginning of the crisis. This includes:
EUR 356.1 million from the humanitarian budget, including EUR 87 million for 2016.
close to EUR 250 million from the European Neighbourhood Instrument mainly to support
Lebanese institutions to provide Lebanese vulnerable communities and Syrian refugees with
access to basic services.
more than EUR 42 million from the Instrument contributing to Peace and Stability to address
longer term resilience needs of affected civilians, both refugees and Lebanese host
communities.
DG NEAR_aar_2016_annexes_final Page 88 of 224
EUR 1.2 million from the European Instrument for Democracy and Human Rights.
EUR 224 million through the EU Regional Trust Fund in response to the Syrian
crisis, the "Madad Fund", to address longer-term resilience needs of Syrian refugees and
support Lebanese host communities and the national administration with a focus on
increasing access for refugees to education and training, as well as livelihoods and health.
The EU programmes are aligned with priorities in the Lebanese Government's response plan to the
consequences of the influx of refugees from Syria, and integrated in the various documents such as
1) Regional Response Plans (RRP), 2) the Lebanon Roadmap of Priority Interventions for
Stabilization from the Syrian Conflict and 3) the ‘Reaching All Children with Education in Lebanon’
launched by the Minister of Education to ensure vulnerable school-aged children affected by the
Syria crisis access quality formal and non-formal learning opportunities.
Jordan has been severely affected by the Syrian crisis at the political, economic and social level
since its outbreak in 2011, with over 650,000 Syrian refugees currently living in Jordanian territory.
As a consequence, Jordan has benefited from significant additional EU allocations to help the
country deal with the burden imposed by the Syrian conflict.
For Jordan, the Commission’s total funding in response to the Syrian crisis amounts to EUR 836
million addressing both refugees and host communities’ needs. This support package includes
notably EUR 251 million of humanitarian aid and EUR 170 million of development assistance from
the ENI, as well as EUR 118 million from the EU Regional Trust Fund in response to the
Syrian crisis, the ‘Madad fund’, which targets Syria and its affected neighbouring countries. Most
of the ENI funds will be used to defray the cost of providing education for Syrian refugee children in
Jordanian public schools and studying opportunities for University students. Finally, the European
Commission adopted and fully disbursed a Macro-Financial Assistance (MFA) package of EUR 180
million, whilst a second Macro-Financial Assistance (MFA) operation for Jordan of EUR 200 million
was approved in 2016 and is expected to be contracted and disbursed in 2017.
The EU Regional Trust Fund in Response to the Syrian Crisis, the ‘Madad Fund’ (‘Madad’
broadly means "providing aid and help jointly with others" in Arabic), was established with the
signature of its Constitutive Agreement on 15 December 2014 by the European Union (represented
by the Commission) and one of its Member States (Italy).9 Its aim is to of address longer-term
resilience needs of Syrian refugees and internally displaced persons (IDPs) in neighbouring
countries, as well as supporting host communities and their administrations, principally in Lebanon,
Turkey, Jordan, Iraq and the Western Balkans through the provision of basic education and child
protection, better access to healthcare, improved water and waste-water infrastructure, as well as
support to resilience, economic opportunities and social inclusion. Today the fund is also one of the
key mechanisms through which the new EU “Compacts” with Jordan and Lebanon will be
implemented. The Fund has been established for an initial duration of 60 months in order to
provide a medium-term response.
1.2. Operational highlights of the year
In 2016, 13 Action Documents for a total of EUR 400 million were adopted by the
Trust Fund’s Operational Board. In addition, by way of a revised Commission establishment
decision in December 2015, and subsequent adoption by the Trust Fund Board in March 2016, the
Fund's scope has been expanded to also cover support to IDP's in Iraq fleeing from the interlinked
Syria/Iraq/Da'esh crisis, to provide flexibility to support affected countries also with hosting non-
Syrian refugees, and to provide support in the Western Balkans to non-EU countries affected by the
refugee crisis.
9 Establishment decision C(2014) 9615 of 10.12.2014 as amended by decision C(2015) 9691 of 21.12.2015. The Constitutive
Agreement was revised in March 2016.
DG NEAR_aar_2016_annexes_final Page 89 of 224
The revised Constitutive Agreement is published on the Fund webpage:
http://ec.europa.eu/enlargement/neighbourhood/countries/syria/madad/20160526-revised-madad-
fundconstitutive- agreement.pdf
In the reporting period the following actions were adopted by the Operational Board
between March and December 2016 for a total of EUR 400 million:
On 6 December 2016:
EUR 82 million for Lebanon
EUR 62 million Health Programme for Syrian refugees and vulnerable Lebanese populations
to increase access to quality, equitable and affordable health care services. The project will
furthermore increase capacities of primary and secondary health sectors, and provide equal
access to health services for refugees and host communities.
EUR 20 million Water, Sanitation and Hygiene (WASH) programme for Syrian refugees and
Lebanese host communities. The project will improve access to efficient and sustainable safe
water supply, environmental sanitation and hygiene in Lebanon for vulnerable populations.
Through the adoption of the above programmes, the EU is also implementing commitments it
undertook within the recently agreed EU-Lebanon Compact aimed at supporting Lebanon to address
the impact of the Syrian crisis while ensuring better living conditions for refugees and vulnerable
Lebanese communities.
EUR 50 million for Iraq
A multi-project action will foster socio-economic opportunities towards stabilisation. The
programme will significantly scale up the EU's contribution to stabilising Iraq especially in
areas liberated from ISIL/Da'esh so that displaced populations can return to their homes.
The focus is on demining and creating economic opportunities and livelihoods.
EUR 6.85 million in support of concessional loans and effective monitoring:
EUR 5 million is provided for the EU contribution to the MENA Concessional Financing
Facility for Jordan and Lebanon (CFF) led by the World Bank in order to support alternative
investment resources for Jordan and Lebanon.
EUR 1.85 million will be made available for a multi-tier external monitoring and evaluation
mechanism to continuously check the performance of the EU Trust Fund in real time. The
mechanism will intervene at project level and country level aggregating results into an
overall performance check for the Trust Fund.
On 21 June 2016:
EUR 165 million for actions in Turkey which will support education, including school
construction, as well as conditional cash transfers and higher education for young Syrians,
and extend water and waste-water facilities in southern Turkey. This will be implemented in
partnership with UNICEF, UNHCR, the EIB and KfW, working closely with the Turkish
authorities.
For Jordan, EUR 21 million in urgent grant financing for a EUR140 million programme
financed together with Germany and France to rehabilitate the overstretched water networks
in northern Jordan, where most of the Syrian refugees reside.
EUR 15 million allowing UNRWA to provide urgent education services and cash
assistance to thousands of Palestinian refugees from Syria who have now fled to Lebanon
and Jordan.
DG NEAR_aar_2016_annexes_final Page 90 of 224
In a teleconference meeting on 11 April 2016 (substituting for the planned Board of 22 March
cancelled due to the Brussels terror attacks):
EUR 20 million for refugee child education in Jordan, and
EUR 25million for higher education and training for young Syrians in the region,
By way of a written procedure on 7 March 2016:
EUR 15 million to provide support to manage the influx of migrants and refugees in the
Western Balkans.
2. Programming, implementation and results (including evaluations)
In partnership with the main refugee host governments, all Trust Fund-financed actions are
increasingly aligned and implemented in accordance with the refugee crisis response plans of the
affected countries, in particular the Jordan Response Plan 2016-2018, the Lebanon Crisis Response
Plan, and the national plans in Turkey and Iraq, as part of the regional UN refugee and resilience
response framework in this regard. The Trust Fund also supports relevant areas of the EU-Turkey
Joint Action Plan and has become one of the delivery instruments for the Facility for Refugees in
Turkey.
Including actions already adopted in 2015 for a total of EUR 367 million, the overall focus of the
Trust Fund has developed as follows:
EUR 233 million are being invested in education to provide a massive scale-up of support to
the Ministries of Education in Turkey, Lebanon and Jordan enabling them to enrol more than
200,000 additional refugee children in school, while also providing for accelerated learning
programmes, non-formal and early childhood education and child protection activities. It comprises
3 levels of action: (i) a multi-country programme with UNICEF focusing on Lebanon and Turkey, (ii)
several multi-country actions by European NGO groupings focusing on retention support, non-
formal and early childhood education, and (iii) additional direct support of EUR 20 million to the
Jordanian Ministry of Education. Together, these actions target up to 587,000 school-age children
and adolescents that are currently out of- school. As a result the EU Trust Fund financing will
contribute substantially to closing the remaining gap to achieve the goal of bringing all refugee
children into education.
EUR 203 million have been allocated for resilience & local development projects
responding to the urgent need of improving economic opportunities for refugees and vulnerable
host communities beyond dependency on humanitarian relief. These are being implemented
through a mix of single-country and multi-country activities by European NGOs, EU Member States
development agencies (GiZ, Expertise France, AECID, Italian Cooperation, AfD), and the Red
Cross/Red Crescent movement. The projects target more than 200 communities and 400,000
people across the region and notably also in Iraq and Turkey, addressing basic financial needs of
vulnerable families, engaging unemployed and disillusioned youth through work, skills development
DG NEAR_aar_2016_annexes_final Page 91 of 224
and community engagement in preparation of a future return to Syria, while also mitigating
tensions between host and refugee communities.
Providing a total of EUR 117 million, two action documents in the health sector aim to
widen and enhance access of refugees across the region to primary, secondary and tertiary health
care, psycho-social support, and protection from sexual and gender-based violence. It will reach
and benefit at least 700,000 refugees with a focus on Turkey and Lebanon. In addition, specific
healthcare support is provided in northern Iraq to the Dohuk hospital.
EUR143 million are used for water, sanitation and hygiene programmes in Jordan and
Lebanon and to extend water and wastewater facilities in southern Turkey. These actions
are helping Syrian refugees and host communities, where the needs for supporting municipal water
and wastewater services are biggest, benefitting more than 1.5 million people.
EUR49 million are providing long-needed support for young Syrians to pursue higher
education as well as technical and vocational training in the region around Syria. While
before the war, 20% of 18-25 year old Syrians were enrolled in higher and further education, this
has dropped to less than 5% among the same age group today among the refugees. With partners
such as DAAD, British Council, Campus France, EP-Nuffic, Stichting Spark, UNHCR and the German-
Jordanian University, several thousand course placements and scholarships are made available in
the region, focusing on Turkey, Jordan, Lebanon and northern Iraq.
Overall, 20 action documents with projects in the above mentioned main sectors have already
been approved in 5 meetings of the Trust Fund’s Operational Board, covering a total amount of EUR
767 million.
Until the end of 2016 an amount of EUR 767 millon had been committed for individual projects,
of which signed contracts amount to EUR 339 million (EUR 321 in 2016 alone), while disbursements
from the Fund amounted to EUR 143 million (EUR 129 million in 2016 alone).
DG NEAR_aar_2016_annexes_final Page 92 of 224
All action documents are published on the TF webpage: https://ec.europa.eu/neighbourhood-
enlargement/news_corner/key-documents_en?field_file_theme_tid%5B0%5D=191
3. Financial report10
3.1. Amounts pledged and received
At the end of 2016, the EU and 23 donors contributed to the Madad Trust Fund: the EU
Budget, 22 Member States and 1 non-Member State, with total contributions reaching an amount of
approximately EUR 939 million. The contributions from the EU Budget amounted by the end of
2016 to EUR 822 million while the contributions from Member States amounted to EUR 92 million
and EUR 24 million from Turkey.
10 Draft annual accounts of the EU Trust Fund will be annexed to the AAR of the AOD.
DG NEAR_aar_2016_annexes_final Page 93 of 224
DG NEAR_aar_2016_annexes_final Page 94 of 224
Amounts paid in 2016 were EUR 128,957,460 as shown in the table below:
ALL payments
HQ Delegation Total
Amounts
(EUR) %
Amoun
ts
(EUR)
% Amounts
(EUR) %
Grants in Direct
Management 20.992.424 16% 0 0% 20.992.424 16%
Budget Support 0 0% 0 0% 0 0%
Procurement in Direct
Management 31.538 0% 0 0% 31.538 0%
Indirect Management with
International
Organizations
81.000.000 63% 0 0% 81.000.000 63%
Indirect Management with
EIB and EIF 0 0% 0 0% 0 0%
Indirect Management with
Development Agencies 25.474.659 20% 0 0% 25.474.659 20%
Indirect Management with
Beneficiary countries 0 0% 0 0% 0 0%
Administrative
expenditure 1.458.840 1% 0 0% 1.458.840 1%
Other 0 0% 0 0% 0 0%
Total : 128.957.460 100% 0 0% 128.957.460 100
%
3.2. Beneficiaries and amounts contracted
In 2016 the Trust Fund signed 12 contracts for a total value of EUR 321,070,819. The details with a
list of beneficiaries and amounts contracted are provided below and in full detail under Annex 3.
Ref. Title
Com L2
Budget
Manage
ment
Type
Code
Contractor
Com L2
Accepted
Amount
(EUR)
T04.17
T004 - DELEGATION AGREEMENT
WITH UNICEF - "GENERATION
FOUND": EU SYRIA TRUST FUND -
UNICEF PARTNERSHIP
IM UNITED NATIONS
CHILDREN'S FUND*UNIC 90.000.000
T04.21
T004 - ACTION DOCUMENT:
FURTHER AND HIGHER
EDUCATION PROGRAMME FOR
VULNERABLE SYRIAN YOUTH
DM
DEUTSCHER
AKADEMISCHER
AUSTAUSCHDIE
11.999.879
T04.23
T004 - CREATION OF BUDGETARY
COMMITMENT FOR ACTION:
LEADERS – PROMOTING
INCLUSIVE LOCAL ECONOMIC
EMPOWERMENT AND
DEVELOPMENT TO ENHANCE
RESILIENCE AND SOCIAL
STABILITY
DM
DANSK
FLYGTNINGEHJAELP*DAN
ISH REFUG
7.005.044
DG NEAR_aar_2016_annexes_final Page 95 of 224
T04.25
T004 - DELEGATION AGREEMENT:
GIZ - " QUDRA – RESILIENCE FOR
SYRIAN REFUGEES, IDPS AND
HOST COMMUNITIES IN
RESPONSE THE SYRIAN CRISES" -
ACTION DOCUMENT: REGIONAL
RESILIENCE & LOCAL
DEVELOPMENT PROGRAMME FOR
SYRIAN REFUGEES AND HOST
COMMUNITIES
IM
DEUTSCHE
GESELLSCHAFT FUR
INTERNATI
70.600.000
T04.27
T004 - GRANT CONTRACT TF-
MADAD/2016/T04.12- ACTION
DOCUMENT: REGIONAL
RESILIENCE & LOCAL
DEVELOPMENT PROGRAMME FOR
SYRIAN REFUGEES AND HOST
COMMUNITIES
DM SEARCH FOR COMMON
GROUND VZW*SFCG 4.453.447
T04.38 T004 - GRANT CONTRACT TF-
MADAD/2016/T04.18 DM
ASSOCIAZIONE ITALIANA
PER LA SOLIDA 5.727.304
T04.40
T004 - LEVEL 2 COMMITMENT FOR
CONTRACT TF-
MADAD/2016/T04.20 (GVC)
DM
GRUPPO DI
VOLONTARIATO CIVILE
ASSOC
12.618.649
T04.53
T004 - DELEGATION AGREEMENT
WITH IOM: "EU SUPPORT TO
SERBIA AND THE FORMER
YUGOSLAV REPUBLIC OF
MACEDONIA IN MANAGING THE
MIGRATION/REFUGEES
CRISIS/BALKAN ROUTE"
IM
INTERNATIONAL
ORGANIZATION FOR
MIGR
7.650.211
T04.54
T004 - ACTION DOCUMENT:
SCHOOL CONSTRUCTION TO
INCREASE THE NUMBER OF
PRIMARY ANS SECONDARY
SCHOOLS FRO SYRIAN REFUGEE
CHILDREN (REGIONAL
COMPETITIVENESS) - KFW
IM KREDITANSTALT FUR
WIEDERAUFBAU* 70.172.476
T04.55 T004 - CONTRACT TF-
MADAD/2016/T04.28 DM
REPUBLIKA
SRBIJA*REPUBLIQUE DE
SERB
7.299.999
T04.56
T04.27: DELEGATION AGREEMENT
WITH AFD "IMPROVED ACCESS TO
WATER, WATER DISTRIBUTION
PERFORMANCE AND RELATED
SEWERAGE DISPOSAL IN IRBID
GOVERNORATE FOR HOST
COMMUNITIES AND SYRIAN
REFUGEES"
IM AGENCE FRANCAISE DE
DEVELOPPEMENT* 21.420.000
T04.58 T004 - GRANT CONTRACT - TF-
MADAD/2016/T04.22 - AVSI DM FONDAZIONE AVSI* 12.123.811
Count
: 12 Sum: 321.070.819
4. Management and internal control
DG NEAR_aar_2016_annexes_final Page 96 of 224
4.1. Control results
General
The EU Trust Fund operates in the general system of of internal control defined by the
Commission. In addition the Trust Fund is subject to an external audit.
As per the Constitutive Agreement of the Trust Fund and given its objective to operate in a crisis
and post-crisis situation, flexible procedures appropriate to the local environment are used to
ensure that the Fund is effective and responsive to the needs identified. These procedures are in
accordance with the FR provisions and are set up in NEAR financial guides. Their use needs to be
justified on a case by case basis. A register of exceptions, derogations and prior approvals granted
under the Trust Fund together with non-compliance events detected during the year is kept.
Project implementation is foreseen in direct management where the Trust Fund is the Contracting
Authority and signs procurement and grant contracts, or indirect management by which project
implementation is delegated to a third party, a EU Member State Agency or International
Organisation. Candidate entities to be entrusted with budget-implementation tasks have to
demonstrate a level of financial management and protection of the EU's financial interest
equivalent to that of the Commission. International Organisations and Member States Agencies
have to provide Management declarations on the use of the funds they are entrusted of.
Ex-ante controls are carried out by the TF staff for all operations/transactions carried out under the
TF.
The Trust Fund Managers take into account reports and recommendations of the different control
bodies, notably the IAS and Court of Auditors, for the purpose of providing an assessment of the
effectiveness of risk management, control and governance processes, in addition to the results of
the audits carried out at the level of contractors/beneficiaries.
The European Anti-Fraud Office (OLAF) exercises the same powers over the Trust Fund in its
entirety, including its governance bodies and the representatives of donors and observers
participating in such bodies, as it does in respect of other activities of the Commission.
4.1.1.1. Results of ex-ante controls
N/A since only one report with a subsequent further pre-financing was received.
4.1.1.2. Results of external audits
N/A
4.1.2. Fraud prevention and detection11
N/A. No cases forwarded for investigation.
4.2. Observations and recommendations made by IAS/ECA
The MADAD Trust Fund (as well as the DG DEVCO managed Bekou EUTF) was subject of an IAS
audit (Ares (2016) 503448 29-01-2016). The IAS recommendations have resulted in an action plan
by DG NEAR to implement the 10 recommendations under its responsibility. By end of 2016, all
actions were implemented as planned except for parts of 1.3 and 5.2, which depend on DEVCO and
BUDG to agree the revised EUTF guidelines. Please see ARES(2016)6711979 by DEVCO stipulating
the new target date for the revised EUTF Guidelines as 30 June 2017. The status of the MADAD
EUTF action plan is provided as Annex 4.
11 EU Trust Funds are included in the anti-fraud strategy of the DG of the Authorising Officer in charge.
DG NEAR_aar_2016_annexes_final Page 97 of 224
4.3. Assessment of the effectiveness of the internal control systems
The EU Trust Fund operates in the general system of internal control defined by the Commission. In
this framework, during its first year of operation the EU Trust Fund has put in place the
organisational structure and the internal control systems suited to the achievement of the policy
and control objectives, in accordance with the standards and having due regard to the risks
associated with the environment in which it operates.
Monitoring of the compliance and effectiveness of the internal control systems was done on a
continuous basis by the Trust Fund Manager and adjusted and complemented where necessary.
Exceptions, derogations, prior approvals and non-compliance events occurred during the reporting
period have been registered and documented.
The TF manager ensured availability of a business management workflow process in place based on
EC standard operating procedures in line with PRAG and the Companion. Respective was shared
with FCA and all Delegations involved in managing TF business management to ensure clarity of
goals and transparency for all. The workflow process also entails the timely appointment of
negotiation committees and a business management process structuring the negotiations.
The Trust Fund Manager has taken appropriate measures to ensure that, when actions financed by
the Trust Fund are implemented, the financial interests of the Union and of the donors are
protected by the application of preventive measures against irregularities and fraud, by effective
controls and, if irregularities or fraud are detected, by the recovery of the amounts wrongly paid.
The contracts and agreements signed with third parties authorise the Commission to carry out
controls on the spot, to suspend payments and implementation of actions where serious
irregularities or fraud are noted, and to apply, where appropriate, effective, proportionate and
deterrent contractual penalties.
The following aspects to improve can be signalled which are mainly attributed to the general
environment of external aid in crisis situations:
• Systems, circuits and procedures to be further fine-tuned to the specificities of the Trust Fund
(revised EUTF guidelines due by DEVCO in 2017).
• IT systems need to be developed in order to provide for an automatic registration of information
that is currently compiled manually (e.g. exceptions, derogations and non-compliance events,
contributions pledged). The risk involved in manual processing, which is more prone to error, will
grow as the volume of actions financed by the Trust Fund increases. This may lead to an
unacceptably high risk of error and a reduction of the efficiency of the Trust Fund.
4.4. Conclusions as regards assurance
The allocation of Human Resources in line with Trust Fund Management responsibilities and
priorities, including FCA staff, needs to be urgently increased and streamlined. Currently,
operational TF staff sits in NEAR/B1, while FCA staff is separated and attached to NEAR/R, with the
latter team still based on the evacuated EUDEL Syria FCA section. This is an unsustainable set-up
and leads to fragmentation and increases the risk of errors. An integrated EUTF taskforce in DG
NEAR remains the best option for the future.
5. Declaration of assurance (and reservations)
6. Annexes:
DG NEAR_aar_2016_annexes_final Page 98 of 224
List of derogations, exceptions, non-compliance events, prior approvals and events to be
reported.
Questionnaire on the effectiveness of ICS implementation (to be filled in by the manager of the
EU Trust Fund).
Declaration of Assurance
I, the undersigned,
Manager of the European Union Trust Fund in Response to the Syrian Crisis, the ‘Madad
Fund’,
In my capacity as authorising officer by sub-delegation
Declare that the information contained in this report gives a true and fair view12.
State that I have reasonable assurance that the resources assigned to the activities
described in this report have been used for their intended purpose and in accordance with
the principles of sound financial management, and that the control procedures put in place
give the necessary guarantees concerning the legality and regularity of the underlying
transactions.
This reasonable assurance is based on my own judgement and on the information at my
disposal, such as the results of the self-assessment, ex-post controls, the opinion of the
Internal Auditor on the state of control. [the observations of the Internal Audit Service -
delete this if not applicable] [and the lessons learnt from the reports of the Court of
Auditors - delete this if not applicable] for years prior to the year of this declaration.
Confirm that I am not aware of anything not reported here which could harm the interests of
the European Union Trust Fund in Response to the Syrian Crisis, the ‘Madad Fund’
Brussels, 8 February 2017
(signature)
Nadim KARKUTLI
12 True and fair in this context means a reliable, complete and correct view on the state of affairs in the DG/Executive Agency.
DG NEAR_aar_2016_annexes_final Page 99 of 224
ANNEX 8b: Annual AOSD Report – The European Union
Trust Fund for Africa North of Africa window
2016
Annual / AOSD Report for EU
Trust Funds
The European Union
Trust Fund for Africa
North of Africa
window
DG NEAR_aar_2016_annexes_final Page 100 of 224
1. Policy and/or operational highlights of the year
1.1 Policy highlights of the year
The EUTF for Africa helps addressing current crises in the Sahel and Lake Chad, the Horn of Africa, and the North of Africa regions. It aims to help
fostering stability and contributing to better migration management. In line with the EU development-led approach to forced displacement, it also helps addressing the root causes of destabilisation, forced displacement and irregular
migration, by promoting economic and equal opportunities, security and development. The EU provides support to the three regions to face the growing
challenges of demographic pressure, environmental stress, extreme poverty, internal tensions, institutional weaknesses, weak social and economic infrastructures, and insufficient resilience to food crises, which have in some
places led to open conflict, displacement, criminality, radicalisation and violent extremism, as well as irregular migration, trafficking in human beings and the
smuggling of migrants. In June 2016, the Commission adopted a Communication13 on establishing a
new Partnership Framework with third countries under the European Agenda on Migration. The Communication sets out the plans for a new results-oriented
Partnership Framework, taking into account all policies and instruments at the EU's disposal. This is in line with the EU Global Strategy on Foreign and Security Policy which embeds challenges such as migration in the overall EU foreign policy
with third countries. This new comprehensive approach will allow the EU to manage the complex issues of migration more efficiently. At the end of June
2016, the EU Council adopted conclusions on migration14. Heads of States and Governments agreed that a more structured and balanced approach to bring
together the external aspects of the different EU policies was needed to maximise the leverage and effectiveness of our action in support of third countries' effort to manage crises and address migration challenges, as well as a
greater coordination between EU institutions and Member States.
This Communication on the Partnership framework also highlighted the fact that efforts should be continued so as to support Libya in its efforts to manage migration flows and that the EU should proceed with increased engagement with
the latter as well as with Tunisia. Commitments were also taken towards a stronger engagement with Egypt so as to provide some responses to increasing
migratory flows departing from Egypt on the Central Mediterranean route.
The EUTF for Africa has successfully positioned itself in complementarity with existing instruments, has acted as a flexible and swift instrument able to address
specific needs of beneficiary countries (which are not covered by other financial instruments). In the North of Africa region more specifically, it has consolidated
existing migration dialogue such as the ones undertaken under the Mobility partnerships with Tunisia and Morocco or dialogues undertaken under the sub-committees of the Association agreements (Governance and Democracy or
Justice and Home Affairs sub-committees), has created good synergies with
13 (COM(2016)385 final)
14 (EUCO 26/16)
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existing programmes, building upon results achieved in programmes supporting
the implementation of mobility partnership programmes (Tunisia) or working in complementarity with other migration programmes (see the way the focused programme adopted for Morocco complements the ENI budget support
programme adopted in parallel). Finally it has contributed to initiate more structured institutional cooperation on migration with partner countries, building
on the proposals of our partner countries and formulating programmes fully aligned with their policies, while respecting the balanced approach set between
the five pillars of the Valletta Action Plan (VAP).
1.2 Operational highlights of the year The strategic Board of the EUTF for Africa so far met twice: in November 2015,
at the margins of the Valletta Summit on Migration, and in December 2016. The next Meeting of the Board is expected in June 2017. The Operational Committee of the Trust Fund met in a joint session in December 2015 and twice under the
North Africa window configuration.
In the course of 2016, a number of systems have also been set in place to
ensure the coordination of activities among the three regional windows of the Trust Fund as well as to ensure a proper monitoring of Trust Fund activities. Appropriate measures have been taken to ensure the recording of EU and other
donors' contributions to the Trust Fund.
The identification of the priorities of the North of Africa window of the EUTF for
Africa is the result of a thorough dialogue with partners and relevant national and regional stakeholders. The process is based on a review of quantitative data
(latest data available from numerous sources such as national statistics, IOM, Eurostat, Frontex, ICMPD, UNHCR notably) as well as a qualitative analysis of the situation on the ground, based on the expertise developed by EU Delegations and
its partners, constant dialogue with stakeholders and lessons learned from past projects. This enables a better understanding of local contexts and the
identification of geographical areas and beneficiaries to be targeted and the most suitable implementing partners.
The North of Africa window addresses situations that are constantly evolving
(migration flows are adapting to new routes, trafficking/smuggling networks adapt to new opportunities and border situations, etc.) and needs to adapt. To
do so, the North of Africa window also relies on a research facility, to mobilise the best available research partners, enhance the knowledge and understanding of the complex root causes of instability, irregular migration and forced
displacement, their drivers and underlying factors.
All these efforts have been complemented by economic and employment projects
targeting regions with a high migration potential in order to prevent irregular migration and to facilitate returns. The North of Africa window has also targeted main transit regions to transform local systems built around irregular migration
by providing economic opportunities to local communities and supporting authorities to deal with the impact of migration flows, reinforcing migration
management capacities and strengthening the authorities' capacities to fight against migrant smuggling and trafficking of human beings.
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2. Programming, implementation and results
(including evaluations)
The North of Africa window of the 'EU Emergency Trust fund for Africa' managed by DG
NEAR is fully in line with the Commission's European agenda on migration and the
European Neighbourhood policy review. The North of Africa Window is very specific
compared to the two other windows as it is exclusively focused on pillar 3 of the
EUTF and aims at improving migration management in all its aspects.
The strategy of the North of Africa window has first of all been guided by the Strategic
Orientation Document adopted by the Board in November 2015, which sets out the
Trust Fund general objectives and strategic lines of action for each of the three windows.
Based on this document, the Operational framework of this window was adopted by
the Operational Committee of the North of Africa window in December 2016.
As of 31 December 2016, 6 actions have been approved by the Operational Board for a
total of EUR 64.5 million to capture the objectives of the EUTF Strategy and respond to
this Operational Framework.
2.1 Operational framework and strategic orientations: a logic exclusively focused on better migration management
The Operational framework of the North of Africa window adopted in December
2016 is focused on pillar 3 of the EUTF (“improved migration management”). Based on this strategic objective of the EU Trust Fund and fully in line with the
Valletta Action Plan, the European Agenda on Migration, the European Neighbourhood policy review and the regional policy dialogue of the Rabat and Khartoum processes, the North of Africa window aims at:
(i) improving migration governance including a rights-based migration management, which is expected to contribute to social cohesion, safe mobility
and security, as well as ensuring international protection, in accordance with international law. This includes capacity building on legislative and regulatory
issues, so as to progressively develop fully-fledged migration systems;
The EUTF is supporting the development of national and regional migration, asylum and integration policies and measures, so as to ensure that migrants'
needs and aspirations are addressed. To enhance the sustainability and coordination of the actions, capacity building of national authorities and key
stakeholders are included in all actions. For instance, in Egypt and Tunisia the EUTF aims at supporting the fulfilment of the national migration strategies and at reinforcing capacities of key institutions dealing with migration.
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Support the implementation of the National Migration Strategy in Tunisia
– Component 1 (EUR 11.5 million) The EUTF seeks to support Tunisia in its efforts to budget, implement and
monitor its National Migration Strategy in order to contribute to the planning, implementation, monitoring and evaluation of an effective and coherent
migration policy. Tunisia's National Migration Strategy will be transposed into a short- and medium-term budget. It will be backed by a qualitative household survey on migration, based on a methodology carried out as part of the
'Mediterranean Household, which will enable an evidence-based and informed policy making.
International Migration Survey Programme' (MED-HIMS) which is a joint initiative of the European Commission/Eurostat, the World Bank, UNFPA, UNHCR, ILO, IOM and LAS, in collaboration with the National Statistical Offices of the Arab
countries in the southern and eastern Mediterranean region. It also seeks to build capacity of Tunisian Institutions, both at national and local
level.
(ii) advancing mutually beneficial legal migration and mobility and in particular the improving of skills and strengthening of labour market information systems, reinforcing cooperation and networking between labour agencies and
relevant institutions in the field of job creation with a view to facilitating job placements and opportunities;
The EUTF also promotes diaspora engagement in countries of origin by supporting migrants willing to invest in or going back to their countries of origin, so they can contribute to socio-economic development with the acquired skills
and knowledge. The EUTF will support in Tunisia the mobilisation of human and financial capacities for local business development and as a means of boosting
economic development, with a specific focus on areas most affected by emigration. In Morocco, it will also support the development of an institutional
framework aiming at preventing racism and xenophobia.
Country Number of projects Total amount
(million EUR)
Egypt 1 11,5
Tunisia 1 11,5
Total 2 23
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Support the implementation of the National Migration Strategy in Tunisia – Component 2 (EUR 11.5 million)
The EUTF will contribute to strengthen the contribution of the Tunisian diaspora for the socio-economic development of the country, through support for
investment and creation of businesses and jobs, in areas most affected by emigration. The Action adopted in December 2016 consists in mobilizing the
talents of the Tunisian diaspora in EU Countries to foster socio-economic development in the Country, through support to investments for the creation of enterprises and job-opportunities. It will entail the set-up of incubators in several
regions of Tunisia, as well as capacity-building support to local authorities as well as the existing local structures aimed to accompany youngsters in the start-up of
new business. Project promoters will benefit from an incubation service, accompaniment during the critical phases of pre and post-creation, as well as
training and coaching in entrepreneurship.
(iii) ensuring protection for those in need, critical in strengthening the resilience of displaced populations together with their host communities. Capacities of partner countries to establish functioning policy, legislative and
institutional frameworks on asylum and international protection will be enhanced and the resilience of displaced populations together with their host communities
will be strengthened. These actions will build on the experience gained under the Regional and Development Protection Programmes (RDPP);
The EUTF contributes to reinforcing the protection and self-reliance of refugees
and displaced persons through an integrated approach in host communities. The Regional Development and Protection Programmes (RDPPs) are among key
instruments in North Africa as well as in the Horn of Africa. The RDPP for North Africa fully embeds the new approach put forward by the EU with the adoption of the Communication 'Lives in Dignity: from Aid-dependence to Self-reliance', by
looking at ways to help displaced persons and their host communities become more self-reliant in the countries where they reside, thus contributing to stabilise
host communities and prevent possible secondary movements.
Country Number of projects Total amount
(million EUR)
Tunisia 1 11,5
Morocco 1 5,5
Total 2 17
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Regional Development and Protection Programme for North Africa
Development Pillar (EUR 10 million)
The Regional Development and Protection Programme for North Africa, implemented by IOM and civil society organisations, will be strengthened
(EUR 10M) to help establish sustainable, national and local systems to effectively deliver inclusive services (education, health and social
protection) and provide members of migrant and host communities with greater economic opportunities, including self-employment and short-term employment opportunities. Micro-lending and crowd funding platforms
across North Africa will be expanded and public-private partnerships between public employment agencies (and private job intermediaries,
whenever possible) and private sector will be promoted.
Web platforms – an innovative approach 1/ Supporting Economic Opportunities & Livelihoods through
Narwi – Crowdfunding Platform that supports and facilitates
micro-lending, philanthropy and knowledge-exchange across
the Arab region and among the Arab expatriate community
throughout the world.
Upwork – Online Outsourcing that allows skilled members of
migrants communities in North Africa as well as host
communities to engage in employment remotely for
employers across the world.
2/ Supporting Social Service Delivery Bosla – Information & Referral Platform that includes all
relevant and up-to-date information on services availability
and provides guidance to migrants in accessing these
services appropriate to their needs.
"Supporting protection and humanitarian repatriation and reintegration of vulnerable migrants in Libya" (EUR 20 million)
In Libya, a EUR 20 million programme will better protect and assist the
most vulnerable migrants and their host communities This programme will in particular set up a 'Protection Fund' to cover impellent needs on the
ground. Grants under this Fund will be allocated on the basis of an independent needs' assessment and costs' analysis mechanism and in
strict coordination with the UN-led protection and migration clusters.
DG NEAR_aar_2016_annexes_final Page 106 of 224
(iv) addressing the drivers of irregular migration, in specific areas of origin, by supporting economic and social programmes creating employment and
education opportunities, especially for young people and women in local communities and support a sustainable reintegration of the returnees into their societies and communities;
Support to institutions in charge of preventing and fighting against smuggling and trafficking has been envisaged under the North of Africa window but has not
yet materialised. Support under this component has therefore concentrated on return and reintegration of highly vulnerable and stranded migrants (see below the cases of Libya and Tunisia), as well as on addressing root causes of irregular
migration through the contribution to the creation of increased socio-economic opportunities (mainly in Tunisia and Egypt).
Support the implementation of the National Migration Strategy in Tunisia
– Component 3 and 4 (EUR 11.5 million)
The EUTF will contribute to the establishment of a service for the social and economic reintegration of Tunisian returnees upon their arrival in Tunisia. This
common platform for reintegration aims to provide support to ensure the dignity of individuals and the sustainability of reintegration projects. The platform will offer a comprehensive and coordinated service from a single point of entry, in
cooperation with the Tunisian civil society operators and the territorial communities involved offering two types of assistance: Social assistance for the
installation for a duration of 6 months; Accompaniment to employment or start-up, covering a period of 12 months from the date of registration to the platform.
In the first phase, the project plans to accompany about 300 people. This activity will be backed up by a database that will allow statistics and monitoring the outcome of the reinsertion projects, allowing to improve over time the quality of
the services provided.
Country Number of projects Total amount (
million EUR)
Libya 2 26
Regional (RDPP) 1 10
Total 3 36
"Strengthening protection and resilience of displaced populations
in Libya" (EUR 6 million)
In Libya, the 'Strengthening protection and resilience of displaced populations in Libya' project (EUR 6M) is implemented by a Consortium of
NGOs led by the Danish Refugee Council, aims mainly at increasing access to protection spaces (especially health care) for stranded migrants and at
piloting alternatives to detention, in particular for minors. Whenever possible, this will be carried out with/through existing public service delivery facilities at local and regional level and local organisations.
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The EUTF put forward an inclusive and holistic approach where all the relevant
stakeholders – Local Authorities in primis, CSOs, incubators, local structures assisting young people in creating new business – will be put together with the
aim to mainstream migration in local development. The lack of economic perspectives and of job opportunities with a high unemployment rate (+30%) are the main factors pushing young Tunisians to migrate to Europe, this
component will contribute to provide them with better perspectives.
and (v) improving information and the protection of vulnerable migrants along the migratory route.
This component has until now been mainly addressed through the setting up of a strategic partnership between the Sahel & Lake Chad window and Libya together
with IOM which aims at working on migration issues on a structured and comprehensive way along the route. Cooperation under this priority will intensify in 2017, since cross-window programmes targeting the central and western
migration routes are currently being formulated.
Activities funded under the EUTF are implemented through a range of operating
partners, including EU Member States cooperation agencies, NGOs, international organisations or private sector entities. Several implementation modalities are envisaged: delegated cooperation, calls for proposals, budget support and
blending, and direct awards in particular situations.
Country Number of projects Total amount (
million EUR)
Libya 1 20
Tunisia 1 11,5
Egypt 1 11,5
Total 3 43
"Supporting protection and humanitarian repatriation and reintegration of vulnerable migrants in Libya" (EUR 20 million)
The humanitarian repatriation and reintegration component of this Action, with a first target of 5,000 vulnerable migrants stranded in Libya, will be
implemented by the International Organisation for Migration (IOM) in the framework of the newly launched joint initiative for Protection and
Reintegration of returnees along the Central Mediterranean migration routes (strategic partnership between the EU and IOM under the Sahel & Lake Chad window and in Libya signed on 16 December 2016). For the
purpose of this Action, Assisted Voluntary Return (AVR) is renamed as 'humanitarian repatriation' considering the current crisis situation in Libya,
affecting also operational capacities to carry out fully-fledged AVR operations, and the extreme vulnerability of migrants in detention or stranded in communities. Humanitarian repatriation from Libya will be
undertook on an exclusively voluntary basis.
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2.2 State of implementation of programmes in the North
of Africa region
Approved (million
EUR)
Contracted
(million EUR)
Disbursed
(million EUR)
64,5
0.2
Approved funding by strategic objectives of the EU Trust Fund for Africa
(MEUR)
North of Africa
window
1.Greater economic and employment
opportunities
2.Strengthening Resilience
3.Improving migration management 64,5
4.Improved governance
5.Other*
Grand Total 64,5
* Research facilities and Technical Cooperation Facility
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In 2016 the Trust Fund signed 1 contract for a total value of EUR 187.040 and
one legal commitment for EUR 5.9 million contracted on January 2017. The details with a list amount contracted and legal commitment is shown in the table below:
Contract title Contractor Contracted
amount (EUR)
T05-EUTF-REG-
NAFR-02-01 EUTF
NA MONITORING
AND EVALUATION
FRAMEWORK
INTERNATIONAL CENTER OF
MIGRATION POLICY DEVELOPMENT
187.040
Total 187.040
2.3 Research, Monitoring & evaluation activities The North of Africa window has revised its Operational Framework on the basis of
strategic objectives formulated in a way deemed to ease the measurement of results and their reporting. Specific indicators are currently produced at project
level inputs, so as to feed into the results matrices of each priority area, tying into the overarching results framework. The EUTF Results Framework is thereby
a crosscutting tool that will be fed by the data and subsequent analysis at each phase of the project cycle.
The North of Africa window makes use of a Research Facility jointly designed especially where more in-depth analysis is needed (e.g. during identification,
evaluation). In particular, this Research Facility will conduct, synthesize, disseminate and make use of new and existing research on the drivers and dynamics of the root causes of instability, insecurity, irregular migration and
forced displacement in West and North Africa and along the migration routes. The Facility will also advise on the most successful policy responses aimed at
addressing current challenges and improving migration management. The IT platform, created for all three windows of the Trust fund, as well as an
ad-hoc EUTF website will ensure the timely dissemination of collected and analysed EUTF information in order to ensure greater visibility of the Trust Fund
response to crisis among the general public and relevant stakeholders. The European Commission monitors the implementation of projects to ensure a
swift and flexible delivery of results, impact and cost-effectiveness. In order to improve coordination and joint efforts, the EUTF encourages actions to be
implemented by a variety of implementing actors.
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3. Financial report15 3.1 Amounts pledged and received The table below provides a summary of the contributions to the overall Trust
Fund as of 31/12/2016. Contributions are split between the three windows
according to the earmarking information contained in the Contribution Certificate
or if no earmarking has been requested according to the following distribution
key:
Window SAH(A) – Sahel and Lake Chad: 40%
Window HOA(B) – Horn of Africa: 40%
Window NOA(C) – North of Africa: 20%
Table I provides information on the contributions from external contributors (i.e.
Member States and other external donors), as follows:
Contributions pledged: total funding for the Trust fund as agreed by
donors (i.e. through a letter of intent);
Contributions certified: contributions supported by a certificate of the
external contributor;
Contributions received: contributions received in the Trust Fund bank
account, on the basis of which the amount available for commitment (i.e.
the total amount of legal obligations that can be incurred) and the amount
available for payment are subsequently established in the trust fund
accounting system (ABAC). As of 31/12/2016 an amount of EUR 62 million
for commitments and payments has been made available in the Trust
fund accounting system (ABAC). Contributions received in currencies other
than EURO are registered using the ECs official exchange rate.
Table II provides information on the contributions from the EU and EDF budgets,
as follows:
Contributions pledged: total funding for the trust fund as agreed by
donors;
Contributions certified: contributions supported by a Commission Financing
Decision, on the basis of which the amount available for commitment (i.e.
the total amount of legal obligations that can be incurred) is subsequently
established in the Trust Fund accounting system (ABAC). As of
31/12/2016 an amount available for commitments of EUR 1.865 million
had been made available in the Trust Fund accounting system (ABAC).
Contributions received: contributions received in the Trust Fund bank
account, on the basis of which the amount available for payment is
subsequently established in the Trust Fund accounting system (ABAC). As
15 Draft annual accounts of the EU Trust Fund will be annexed to the AAR of the AOD.
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of 31/12/2016 an amount available for payment of EUR 129 million had
been made available in the trust fund accounting system (ABAC).
Interest generated by cash received in Trust Fund bank account is shown in
section III.
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3.2 Amounts paid
In 2016 no payments have been initiated.
3.3 Beneficiaries and amounts contracted
Contract title Contractor Contracted
amount (EUR)
T05-EUTF-REG-
NAFR-02-01 EUTF
NA MONITORING
AND EVALUATION
FRAMEWORK
INTERNATIONAL CENTER OF MIGRATION
POLICY DEVELOPMENT
187.040
Total 187.040
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4. Management and internal control
4.1 Control results
General
The North of Africa window of the EU Trust Fund operates in the general system of internal control defined by the Commission.
It was decided that the EU Financial Regulation and the rules and procedures developed by the Directorate General for International Cooperation and
Development (DEVCO) for the management and implementation of its operations are equally applicable to the EUTF. For the North of Africa window the
Directorate-General for Neighbourhood and Enlargement Negotiations (NEAR) benefits from a sub-delegation of DEVCO.
Once approved by the Operational Committee, actions are implemented in
accordance with the implementing procedures provided for in the applicable Commission rules and regulations.
As per the Constitutive Agreement of the Trust Fund and given its objective to operate in a crisis and post-crisis situation, flexible procedures appropriate to the local environment are used to ensure that the Fund is effective and responsive to
the needs identified. These procedures are in accordance with the FR provisions and are set up in NEAR financial guides. A register of exceptions, derogations
and prior approvals granted under the Trust Fund together with non-compliance events detected during the year is kept.
Project implementation is foreseen in direct management where the Trust Fund is
the Contracting Authority and signs procurement and grant contracts, or indirect management by which project implementation is delegated to a third party, a EU
Member State Agency or International Organisation. Candidate entities to be entrusted with budget-implementation tasks have to demonstrate a level of financial management and protection of the EU's financial interest equivalent to
that of the Commission. International Organisations and Member States Agencies have to provide Management declarations on the use of the funds they are
entrusted of.
Ex-ante controls are carried out by the TF staff for all operations/transactions carried out under the TF.
In line with NEAR contractual models and audit policy, audits/expenditure verifications are either foreseen in contracts or can be launched by the TF based
on a risk analysis.
The Trust Fund accounts are subject to an annual external audit.
To be noted that in 2017 the North of Africa window will perform a risk
assessment on the basis of the Annual Risk Assessment method as used by DG NEAR to asses all ongoing contracts and to prepare a control plan that will not
only determine external audits, verification missions and/or on the spot visits but equally will be used select the contracts that will be subject of the foreseen specific monitoring scheme/contract. This will come in addition to the
audit/expenditure verification contractual modalities.
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The Trust Fund Managers take into account reports and recommendations of the
different control bodies, notably the IAS and Court of Auditors, for the purpose of providing an assessment of the effectiveness of risk management, control and governance processes, in addition to the results of the audits carried out at the
level of contractors/beneficiaries.
The European Anti-Fraud Office (OLAF) exercises the same powers over the Trust
Fund in its entirety, including its governance bodies and the representatives of donors and observers participating in such bodies, as it does in respect of other
activities of the Commission.
4.1.1 Results of ex-ante controls The first payments will be initiated in 2017. Within this framework no ex-ante controls proved to be necessary.
4.1.2 Results of external audits
No external audits were carried out. An Audit/verification Plan will be drawn-up
specifically for the Trust Fund in 2017.
4.1.3 Fraud prevention and detection16
No investigations by the European anti-fraud Office (OLAF) have yet been carried
out.
4.2 Observations and recommendations made by IAS/ECA
The Internal Audit Service of the Commission and the European Court of Auditors have not yet carried out reviews of this Trust Fund. The IAS report "Design and
implementation of EU trust funds excluded the Africa Trust Fund from its scope. Its recommendations will be considered by analogy.
4.3 Assessment of the effectiveness of the internal control systems
The EU Trust Fund operates in the general system of internal control defined by
the European Commission. In this framework, during its first year of operation the EU Trust Fund has put in place the organisational structure and the internal
control systems suited to the achievement of the policy and control objectives, in accordance with the standards and having due regard to the risks associated with the environment in which it operates.
Monitoring of the compliance and effectiveness of the internal control systems was done on a continuous basis by the Trust Fund Manager and adjusted and
complemented where necessary.
16 EU Trust Funds are included in the anti-fraud strategy of the DG of the Authorising
Officer in charge.
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Exceptions, derogations, prior approvals and non-compliance events occurred
during the reporting period have been registered and documented (see table in annex 6). Approvals were given to a certain number of direct grant awards where this procedure could be justified by the urgency of the initiative or the
monopoly situation of the grantee. Only one negotiated procedure for service contracts was equally registered. Derogations were granted in 2016, but the
contracts will only be signed in 2017.
End 2016, the TF manager started to work on a business management workflow
process based on EC standard operating procedures in line with PRAG and the Companion, with the aim of clarifying the role of all the different stakeholders involved at Headquarters and Delegation level. This workflow process has been
formally adopted beginning 2017.
The actions approved to date are still at an early stage of implementation. The
Trust Fund Manager has taken appropriate measures to ensure that, when actions financed by the Trust Fund are implemented, the financial interests of the Union and of the donors are protected by the application of preventive measures
against irregularities and fraud, by effective controls and, if irregularities or fraud are detected, by the recovery of the amounts wrongly paid. The contracts and
agreements signed with third parties authorise the Commission to carry out controls on the spot, to suspend payments and implementation of actions where serious irregularities or fraud are noted, and to apply, where appropriate,
effective, proportionate and deterrent contractual penalties.
The following aspects to improve can be signalled which are mainly attributed to
the recent set-up of the Trust Fund and the general environment of external aid in crisis situations:
• Systems, circuits and procedures to be further fine-tuned to the
specificities of the Trust Fund
• IT systems need to be developed in order to provide for an automatic
registration of information that is currently compiled manually (e.g. exceptions, derogations and non-compliance events, contributions pledged). The risk involved in manual processing, which is more prone to error, will grow as the
volume of actions financed by the Trust Fund increases.
4.4 Conclusions as regards assurance The North of Africa window of the EU Trust Fund initiates its Operations Management in 2016, expected to reach cruising speed in 2017. Based on the
two Operational Committees held in 2016, 30% of the volume of the fund is expected to be contracted in Q1 2017.
Based on experience gained of the first two Operational Committee meetings, an
internal control business workflow process, based on PRAG and Companion was created to ensure priority setting in contracting, clarify procedures and
transparency for all involved in business management of the Trust Fund, including Delegation staff and FCA section.
A deputisation system is in place in order to ensure business continuity of the
Trust Fund business operations.
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5. Declaration of assurance (and reservations)
DECLARATION OF ASSURANCE
I, the undersigned,
Manager of the North of Africa window of the European Union Trust Fund for Africa.
In my capacity as authorising officer by sub-delegation
Declare that the information contained in this report gives a true and fair view.
State that I have reasonable assurance that the resources assigned to the activities
described in this report have been used for their intended purpose and in accordance
with the principles of sound financial management, and that the control procedures put in
place give the necessary guarantees concerning the legality and regularity of the
underlying transactions.
This reasonable assurance is based on my own judgement and on the information at my
disposal for years prior to the year of this declaration.
Confirm that I am not aware of anything not reported here which could harm the
interests of the North of Africa window of the European Union Trust Fund for Africa.
Brussels, date 15 February 2017
Corinne André
6. Annexes:
List of derogations, exceptions, non-compliance events, prior approvals and events to be reported.
Region Action Document Signed amount Proposed
partner
Prior
approval
100%
financing
Prior approval
100% direct
award
Regional Development of a monitoring and
evaluation framework for the North
of Africa window of the EU
Emergency Trust Fund for Africa
187.040 ICMPD X X
Libya Strenghtening protection and
resilience of displaced populations
in Libya
5.900.000 DRC X X
Egypt Hand by hand.. Learn and stand 519.314 Caritas X X
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ANNEX 9: Evaluations and other studies finalised or cancelled during the year
Reference
No of Annex 4 MP2016 Title Reason 1 Scope 2
Type of evaluation or other study Associated
DGs Costs (EUR) Comments Reference Cancelled
Focus 3 Author4 Type 5
I. Evaluations finalised/ cancelled in 2016
a. Evaluations finalised in 2016
DG NEAR Unit B2
Support to AGADIR Secretariat
Final evaluation
R E E
80,000
Implemented by EUD Jordan
DG NEAR Directorate B
EUROMED INVEST (EU Support to Business and Investment Partnerships in Southern Mediterranean)
Final evaluation
R E E
100,000
EUD Lebanon ENPI/2009/020-485 Programme de Deminage
Ex-post evaluation
R E E
39,984
EUD Tunisia Programme d'appui au système de recherche innovation
Final evaluation
132,142
ENPI/2009/20-512
EUD Tunisia Programme PCAM Final
evaluation
168,760
ENPI/2008/20-216
EUD Tunisia
Composante microfinance Programme d'appui aux zones défavorisées
Mid-term evaluation
75,588
ENPI/2011/23-202
DG NEAR_aar_2016_annexes_final Page 118 of 224
EUD Tunisia Programme PEFESE Final
evaluation
160,000
ENPI/2009/20-511
EUD Tunisia Programme Environnement énergie
Final evaluation
100,496
ENPI/2007/19-239
EUD Tunisia Programme d'appui à la réforme de la justice
M-T
120,000
ENPI/2011/23-556; 557 et 560
EU Office West Bank and Gaza
Final evaluation of 'Livestock based livelihood programme institutional component (lbl-I)' (302119)
Final evaluation
15,000
The lbl-I programme
EU Office West Bank and Gaza
Evaluation of EIDHR-CBSS projects 2011-2014 (subject to available funds) as input into future prioritisation
thematic
180,000
EIDHR/CBSS support measures
EU Office West Bank and Gaza
Evaluation of PEGASE DFS programmes (2014-2015) and pilot Results-Oriented Framework.
Final ENPI/ENI
92,762
FA ENPI/2013/024-708
EUD Morocco
Programme d'appui à la stratégie de la lutte contre l'analphabétisme
Final
43,054
ENPI/2007/ 018-779 ; ENPI/2010/ 022-
376
EUD Albania
Evaluation of Justice and Home Affairs (JHA) sector IPA programmes in Albania
Thematic
88,660
FD 2015 Evaluation programme (FD 2015 /31-764).
DG NEAR_aar_2016_annexes_final Page 119 of 224
b. Evaluations cancelled in 2016
DG NEAR Unit D5
SEECEL - 2 contracts Final
evaluation R E E 100,000
Evaluation finally integrated into the thematic evaluation on Competitiveness launched by A3
McP 2015 - EIF
Y
EUD Armenia 247956 - Yerevan Metro Rehabilitation
Final evaluation
R E E
Was subject to a regional evaluation Y
EUD Georgia
Evaluation of EU Support to Justice Sector in 2014-2015 (except BS operations)
Thematic evaluation
70,000
The Decision (with all listed projects) is included under Result Reporting 2015-2016 exercise and the management do not see an added value to repeat the exercise
Justice Decisions 22-562 & 24-344
Y
EUD Morocco
Appui aux dynamiques de Développement Intégré des Provinces et territoires ruraux du Nord
Mid-term evaluation
100,000
Pas d'avancement significatif dans le côté "soft" de la mise en œuvre. MT à transformer en évaluation finale.
Y
EUD Morocco
Programme d'appui à la
Couverture médicale de Base II
Final evaluation
Evaluation globale
sur la mise en œuvre du Régime d'Assurance Médicale pour les Démunis (RAMED) sera lancée par le partenaire, l'Agence nationale de l'Assurance maladie (ANAM)- Phase III du programme en cours
Y
II. Other studies finalised or cancelled in 2016
DG NEAR_aar_2016_annexes_final Page 120 of 224
a. other studies finalised in 2016
DG NEAR Unit A3
Study on existing business linkages between SMEs from the EU and the Western Balkans. A focus on FDI in manufacturing sectors
P/R E O
151,300
b. other studies cancelled in 2016
DG NEAR Unit A3
Study for World Bank evaluation
Other - internal technical assistance
Support for former EC senior officials in preparatory activities for the launch of the evaluation of our cooperation with the World Bank
P E I
20,000
Y
1 L - legal act, LMFF - legal base of MFF instrument, FR - financial regulation, REFIT, CWP - 'evaluate first', O - other (please specify in Comments)
2 specify what programme/regulatory measure/initiative/policy area etc. has been covered
3 P - prospective, R - retrospective, P/R - prospective and retrospective
4 E - external, I - internal, M - mixed (internal with external support)
5 FC – fitness check, E – expenditure programme/measure, R – regulatory measure (not recognised as a FC), C – communication activity, I – internal Commission activity, O – other – please specify in the Comments
DG NEAR_aar_2016_annexes_final Page 121 of 224
ANNEX 10: European Court of Auditors – Performance
audits
DG NEAR dealt with 11 performance audits (8 as the lead DG and 3 as an associated DG)
during 2016.
Six out of eight performance audit reports, for which DG NEAR was in the lead, have
been finalised and published in 2016 (the former Yugoslav Republic of Macedonia,
Migration, Montenegro, Moldova, Meta-Audit on Western Balkans and Ukraine). The
Commission has accepted most of the recommendations made by the Court. These are
valuable for DG NEAR's future reflections on how to deliver assistance in more efficient
manner; their implementation is already on-going.
The key points of the completed reports were as follows:
"Strengthening administrative capacity in the Former Yugoslav Republic of
Macedonia"
Objective
The audit looked at whether the EU pre-accession assistance contributes effectively to
strengthening administrative capacity in the former Yugoslav Republic of Macedonia in
the sectors of public administration, transport and environment.
Main findings of the Court
The Commission should address gaps in capacity building in procurement and in
the area of fight against corruption.
Projects should be part of a coherent and coordinated approach.
The capacity to fight against corruption should improve.
The sustainability of projects was poor.
The need to strengthen administrative capacity is addressed in bilateral dialogue
but not in regional processes and dialogues.
The contribution of other processes and dialogue towards strengthening
administrative capacity is weakened by political factors outside the control of the
Commission.
Commission position
The Commission considers the report as constructive, mentioning real issues and
weaknesses, while acknowledging the complex political situation in which pre-accession
assistance has been delivered. For many of the issues mentioned in the report, the
Commission has already taken mitigating measures. For example, DG NEAR:
introduced under IPA II stronger conditions for EU financial assistance;
focused on shortening time between programming and implementation of EU
assistance;
has started to gradually integrate the better regulation approach and the key
principles of public administration in EU sectoral assistance in order to ensure a
more coherent approach on building administrative capacity;
DG NEAR_aar_2016_annexes_final Page 122 of 224
de-centralised management is now used more selectively. DG NEAR has
established a more balanced mix between direct and indirect management which
will improve the overall performance and effectiveness of IPA;
to secure the political commitment from the national authorities, DG NEAR is also
using a mix of positive and negative incentives. For example well performing
beneficiary countries will be rewarded, and for those performing below
expectations, the financial envelope will be reduced. In this respect, the
Commission has reduced the national envelope for the period 2014-2016 by
approximately EUR 50 million, because of the lack of reforms in the area of public
financial management.
"EU external migration spending in Southern Mediterranean and Eastern
Neighbourhood countries until 2014"
Objective
This audit aimed at assessing whether EU funded actions are aligned to the EU's
migration, mobility and asylum policy priorities.
Main findings of the Court
lack of clarity and coherence of objectives (many policy and funding instruments);
absence of indicators or too complex indicators used;
projects difficult to measure and implementation delays;
complexity of links between migration and development.
Commission position
The report looked at a very limited sample of 23 migration projects in six neighbouring
countries, which were launched as of 2007 and concluded by 2014. They pre-date the
current migration/refugee crisis (as well as the mandate of the Juncker Commission). In
addition the following points need to be considered:
• Migration and asylum is a multifaceted, complex and constantly evolving policy
area at both international and EU level, and the Commission is obliged to operate
in this changing and challenging environment. As a result, it is an area that
requires similarly complex and multi-dimensional structures for its
implementation.
• Over the last year, the EU has stepped up its efforts to respond to the crisis:
reoriented and mobilised all external action instruments, with the objective to
save lives, ensure protection to those in need and manage borders and mobility.
• The Facility for Refugees in Turkey, special measures to assist Western Balkan
countries, the European Emergency Trust Fund for stability and addressing root
causes of irregular migration and displaced persons in Africa, the EU Regional
Trust Fund in response to the Syrian crisis, comprehensive aid and support
packages for Lebanon and Jordan (Compacts) - this non-exhaustive list of
measures and instruments proves the enormous efforts of the EU and its Member
States to respond rapidly and effectively to the crisis.
• On top of that, migration was embedded in the political dialogues with third
DG NEAR_aar_2016_annexes_final Page 123 of 224
countries, in particular neighbourhood countries (via the specific JLS/Migration
and Social Affairs subcommittees with the relevant countries). With the current
Commission there is now a clearer impetus in linking further the internal with the
external dimension of migration and enhancing policy coherence (in the work of
the EEAS and relevant Commission Directorates-General).
• Looking at the Court's recommendations based on the audits of past projects, the
Commission underlines that much has been already done in 2015/2016. Tailor-
made monitoring and evaluation tools are being developed to allow the
measurement of achievements and progress, representing a key element towards
the delivery of more concrete and efficient co-operation frameworks on migration.
In line with the reviewed ENP, the Commission will seek to build reinforced
partnerships with a clearer focus and more tailored cooperation.
"EU pre-accession assistance contributes effectively to strengthening
administrative capacity in Montenegro?"
Objective
The objective of the audit was to address whether EU pre-accession assistance
contributes effectively to strengthening administrative capacity in Montenegro.
Main findings of the Court
The Court concludes that overall there was fairly good progress in strengthening
administrative capacity in Montenegro during the period audited.
The challenge now is to build on the adoption of legislation and deliver results on
reform.
Many of the audited projects produced results but were weak or not sustainable
because the national authorities did not provide the necessary follow-up support.
The mechanisms for political dialogue have helped to make significant progress in
many areas over a relatively short period of time.
The Court observed that the decentralised mode of management of EU funds
provides a potentially useful tool for strengthening administrative capacity
through transfer of knowledge.
In 2015 the Commission initiated the publication of quantitative data over time
which would allow achievements arising from Commission support for capacity-
building to be better measured.
Commission position
The Commission welcomes the report and agrees with its main findings.
• The report acknowledges the positive contribution of pre-accession assistance in
addressing the capacity-building needs of Montenegro. The Commission has
already taken steps to improve the impact of its financial support and ensure
better follow-up by the national authorities, including embedding projects in a
sectorial approach and strengthening conditionality, as well as improving
coordination between regional and national financial assistance.
• The Commission stresses the importance of prioritising quality over speed of
reforms, in particular in areas such as the rule of law where reforms required are
often difficult and results take a certain time to materialise.
DG NEAR_aar_2016_annexes_final Page 124 of 224
• On improving the measurement of progress on administrative capacity, the
Commission introduced with the 2015 Enlargement Package a new reporting
methodology in a number of pilot areas, such as the rule of law and public
administration reform, which will allow for better comparability of progress
between countries and also over time. The Commission has continued to expand
this new reporting methodology in the 2016 package.
• The Commission has also started to regularly check the coherence between sector
specific assistance and the horizontal public administration reform efforts, with
special emphasis on policy and legislative development and coordination
processes, accountability and rationality of public administration organisation, as
well as on coherence between general and special administrative procedures.
"Strengthening the Public Administration in the Republic of Moldova"
Objective
The audit considered the question of whether the EU assistance to Moldova did effectively
contribute to strengthening public administration.
Main findings of the Court
Reasons for choosing SBS (Sector Budget Support) as an aid modality to be better
documented.
Conditionality was not always used consistently to stimulate reforms. In certain
cases, funds were disbursed or reprogrammed, when conditions were not fulfilled.
Projects were not systematically designed to provide relevant support to
administrations in charge of managing SBS programmes.
Donor coordination was not systematic.
Projects were relevant, but did not always create sustainable capacity in public
administrations.
Commission position
The Commission considers the report to be constructive and agrees with its
recommendations.
The report reflects the difficult political context in Moldova, including the
implications of macro-economic instability and lack of an IMF programme, as well
as risks related to corruption.
The Commission has already taken risk mitigating measures to address many
points highlighted by the Court, including regular updates of risk analysis in all
countries where budget support is applied.
Systemically, the Commission is now taking a more results-based approach to
provision of financing, thereby addressing a number of the Court's points.
The report rightly emphasizes the key importance of political will to genuinely
improve and strengthen the public administration capacity in the country in a
sustainable manner.
The Commission regularly brings these issues in the political and sector policy
dialogue. The Commission has also developed programmes to support better
public finance management and public administration capacities.
DG NEAR_aar_2016_annexes_final Page 125 of 224
META- audit - "Effectiveness of pre-accession in the Western Balkans"
Objective
The Court was interested in whether EU funds used for Pre-accession assistance under
IPA I and IPA II (to a lesser extent) on all Western Balkans countries have been used in
an effective and efficient way in the field of rule of law, public administration reform
public finance management, fight against corruption and organised crime.
Main findings of the Court
The EU pre-accession assistance was broadly effective that IPA I partly
strengthened administrative capacity in the region, despite shortcomings inherent
to the national authorities in the Western Balkans.
IPA I objectives were not always specific and measurable. Programmes and
projects were based on needs but some beneficiaries’ assessments in the rule of
law sector showed shortcomings.
IPA generally delivered the outputs and its support for the rule of law and public
administration reform was partly sustainable also because of the lack of political
will.
The political dialogue for the rule of law had limited impact, especially for non-
negotiating countries, while for the public administration reform it achieved some
progress.
The potential for using decentralised management to strengthen administrative
capacity has not yet been fully exploited.
Commission position
The Commission welcomes the report and agrees with its recommendations.
While mentioning some weaknesses, the report acknowledges the positive
contribution of pre-accession assistance in addressing the capacity-building in the
Western Balkans region despite shortcomings inherent to the IPA beneficiaries'
authorities. The Commission has already taken steps to improve the impact of its
financial support and ensure better follow-up by the authorities, including
embedding projects in a sectorial approach and strengthening conditionality, as
well as improving coordination between regional and national financial assistance.
The political dialogue can only encourage reform, but the ownership of the reform
process lies with the IPA beneficiaries' authorities.
The Commission is gradually ensuring that the EU better regulation approach that
promotes inclusive and evidence-based policy and legislative development and the
key principles of public administration, is integrated into sectorial capacity-
building projects. For example, specific attention will be paid to ensuring that
sectorial training programmes are better coordinated with the national civil service
training institutions in order to ensure continuation of trainings.
Regional cooperation is an essential element of the enlargement process fostering
good neighbourly relations, reconciliation, economic growth and competitiveness.
The Commission will pursue its support to relevant, inclusive and effective
regional organisations and initiatives in order to help the region achieve
DG NEAR_aar_2016_annexes_final Page 126 of 224
measurable and sustainable results on the ground in line with the priorities set out
in the enlargement strategy.
"EU assistance to Ukraine"
Objective
The audit objective was to address the overall question: “Were the EU institutions’
actions and reactions well-prepared, adequate and effective in supporting the
transformation of Ukraine into a well-governed state, in the area of public finance
management (PFM) and in the sector of energy?”.
Main findings of the Court
The Court concludes that overall, EU assistance to Ukraine has been partially effective in
supporting the transformation of Ukraine into a well governed state in the three areas
mentioned above. The Court mainly found that:
EU assistance to Ukraine was partially effective in improving public finance
management and the fight against corruption;
EU-Ukraine dialogue on public finance management has significantly improved
since 2013, and that on fight against corruption since 2011;
The design of the assistance enabled rapid disbursements but did not always take
sufficient account of the reforms to be achieved;
Monitoring of the implementation of EU assistance has improved;
The results of EU assistance remain fragile.
Overall, EU assistance to Ukraine was partially effective in improving governance
in the gas sector and the security of the EU’s gas supply via Ukraine.
Commission position
The Commission's position on the key areas was as follows:
• Even though EU assistance was partially effective, important structural reforms in
all audited areas have been triggered or supported by EU programmes.
• EU assistance played a key role in promoting the political association and
economic integration of Ukraine with the EU.
• The Commission will continue to work on strengthening monitoring of EU
assistance implementation and will use all tools at its disposal to speed up
progress in reforms.
• The Commission maintained throughout the audited period a coherent policy in
view of the strategic role of the Ukrainian gas transit system and the need for
fundamental reforms in the gas sector.
• The Commission also continues its efforts to mediate in the ongoing gas dispute
between Russia and Ukraine.
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ANNEX 11: Analysis of Key Performance Indicators
2016
Analysis of Key Performance Indicators (KPIs)
DG NEAR_aar_2016_annexes_final Page 128 of 224
I – Objective
KPIs are at the basis of the assurance provided by the Heads of Delegations and by NEAR
Directors in their External Assistance Management Reports. They feed directly into the
Annual Activity Report of DG NEAR, supporting the Declaration of Assurance of the
Director-General.
KPIs are also used by DG NEAR as a management tool. They identify targets or
benchmarks in key issues of financial management, audits and controls. An analysis of
KPIs' results versus targets is regularly presented to the Management and a follow-up is
ensured by the concerned services at Headquarters and the EU Delegations through the
established action plans and regular review of progress made.
The purpose of this report is to present the results of NEAR17 KPIs on 31/12/2016 for 22
"EAMR Delegations" implementing projects as per Budget devolution and HQ units
managing projects or financial transactions centrally and to decide on necessary actions.
The main variances compared to the annual benchmarks are highlighted. Correlations
between KPIs and constraints that may have a negative impact are examined. KPI values
are based on the data as registered in the systems (ABAC, CRIS, Audits, MIS) on
31/12/2016. They are presented in the frozen version of the 2016 KPI Dashboard.
17 NEAR KPIs only cover transactions for which the Director General of DG NEAR is the Authorising Officer by
Delegation. Transactions made in the framework of the cross-sub-delegation made by NEAR to other DGs are not covered by the report.
DG NEAR_aar_2016_annexes_final Page 129 of 224
II – Analysis
Global results for DG NEAR at the end of the 2016 are presented in the table below. The
arrows indicate the evolution compared to 2015.
KPI Name KPI result
2016
Annual
Target/Benchma
rk
A - Sound Financial Management and Efficient Use of EC Resources
K1
Accuracy of initial
annual financial
forecast for payments
95.06%
▲
From 90% to 110% Actuals
EUR
3,086
million
K2
Accuracy of initial
annual financial
forecast for contracts
91.45%
▼
From 90% to 110% Actuals
EUR
4,284
million
K3
Accuracy of initial
annual financial
forecast for decisions
99.06
% From 90% to 110% Actuals
EUR
4,408
million
K4 RAL absorption period 4.15ye
ars▼
Not more than 4 years
K5
% of projects with red
traffic light for
implementation
progress
3.91% Not more than 10%
Number
of
projects
with red
traffic
light
84
K6
% of projects with red
traffic light for
achieving results
4.98% Not more than 10%
Number
of
projects
with red
traffic
light
107
K7 Reduction of old pre-
financing
32.83%
▲
At least 25%
Old pre-
financing
amount
31/12/20
16
EUR
1,390
million
K8
Expired contracts as
% of the contract
portfolio
15.62%
▲
Not more than 15%
Number
of expired
contracts
852
K9 Reduction of old RAL 36.55%
▲
At least 25%
Old RAL
amount
31/12/20
16
EUR 376
million
K1
0
% of payments paid
within EC internal
target of 30 days
54.13%
▼
At least 66%
Number
of
invoices
paid
within
target
2,625
K1
1
Use of DEVCO/NEAR
staff and respect of
the flexibility
arrangements
100.00
%
Yes for 100% of
Delegations
DG NEAR_aar_2016_annexes_final Page 130 of 224
B - Effectiveness of Internal Controls
K1
2
% of green traffic
lights for the
effectiveness of the
two ICS related to
mission and values in
Delegations
96.21%
▲
At least 80%
K1
3
% of green traffic
lights for the
effectiveness of the
two ICS related to
human resources in
Delegations
94.10%
▼
At least 80%
K1
4
% of green traffic
lights for the
effectiveness of the
two ICS related to
planning and risk
management in
Delegations
92.64%
▼
At least 80%
K1
5
% of green traffic
lights for the
effectiveness of the
five ICS related to
operations and control
activities in
Delegations
93.60%
▼
At least 80%
K1
6
% of green traffic
lights for the
effectiveness of the
two ICS related to
information and
financial reporting in
Delegations
93.18%
▲
At least 80%
K1
7
% of green traffic
lights for the
effectiveness of the
three ICS related to
evaluation and audit
in Delegations
95.20%
▼
At least 80%
K1
8
% of projects visited
by Commission staff
and/or the HoD, by
project value
81.77
% At least 80%
K1
9
% planned project
evaluations contracted
75.56
% At least 75%
K2
0
% ineligible amount
identified by ex-ante
controls
4.64%▲
At least 2%
Ex-ante
ineligible
amount
identified
EUR
129
milli
on
C - Effectiveness of Audit Systems
K2
1
% contracted of the
Annual Audit Plan
(year N)
61.81%▲ At least 60%
Number of
audits
implemented
191
DG NEAR_aar_2016_annexes_final Page 131 of 224
K2
2
% contracted of the
Annual Audit Plan
(year N-1)
96.61%▲ At least 85%
Number of
audits
implemented
285
K2
3
% contracted of the
Annual Audit Plan
(year N-2)
100.00%▲ At least 95%
Number of
audits
implemented
208
K2
4
Ineligible amounts
identified by audits as
a % of the audited
amount
1.83%▲ At least 2%
Audit ineligible
amount
identified
EUR
7
milli
on
Results at Delegation level
Good results have been achieved at Delegation level with an increased number of
Delegations meeting targets for most of the KPIs in 2016:
All Delegations except Syria have met benchmarks for 60% their KPIs compared to 11
Delegations at the end of 2015:
Results at global level
20 KPIs out of 24 fully reached the aggregated 2016 targets at DG level corresponding to
an overall success rate of 84%.
Performance improved in 2016 in comparison with 2015: 20 KPIs met or exceeded
the benchmarks compared with only 12 in 2015:
8 in the category "Sound Financial Management and Efficient Use of EC
Resources"
Nbr of Delegations % Nbr of Delegations %
Total Delegations 22 22
80% and more 0 0% 6 27%▲
60% and more 11 50% 21 95%▲
Less than 60% 11 50% 1 5%▼
% of green KPIs 2015 2016
Overall Green KPI Result for 2015 2016
Albania 50% 74%
Belarus 59% 70%
Egypt 44% 83%
European Union Office in Kosovo 50% 70%
Georgia 56% 91%
Morocco 50% 83%
The former Yugoslav Republic of Macedonia 56% 74%
Syria 31% 22%
Serbia 56% 65%
Turkey 50% 70%
Ukraine 56% 78%
DG NEAR_aar_2016_annexes_final Page 132 of 224
9 in the category "Effectiveness of Internal Controls resources in Delegations"
3 in the category "Effectiveness of Audit Systems"
The following four remaining KPIs show results that remain below targets:
RAL absorption period
Expired contracts as % of the contract portfolio
% of payments paid within EC internal target of 30 days
Ineligible amounts identified by audits as a % of the audited amount
The general trend at KPI level is positive with steady improvements achieved for most of
the KPIs.
Accuracy of initial annual financial forecast for payments: continuously accurate
and as good as within benchmarks over the last 2 years (2016: 95.06%, 2015:
90.68%).
Accuracy of initial annual financial forecasts for contracts: continuously accurate
and as good as within benchmarks over the last 2 years (2016: 91.43%, 2015:
104.52%).
In 2016, NEAR managed to considerably reduce its old pre-financing compared to
2015 when the target of at least 25% was not met (2016: 32.83%, 2015:
15.40%).
The KPI on expired contracts has deteriorated (2016: 15.66%, 2015: 13.32%)
and did not meet the target (not more than 15%).
The amount of old RAL has been considerably reduced since 2015. Both in 2015
and 2016 the KPI was within the target of minimum of 25% (2016: 36.55%,
2015: 25.92%).
Ex-ante ineligible amounts have the highest result over the last two years (2016:
4.64% - EUR 129 million, 2015: 3.88% - EUR 68 million). The guidance provided
on the proper encoding in particular related to budget support is reflected in this
result.
The implementation of all three audit plans has reached the highest results in 2
years.
III - Detailed analysis
A) Results at KPI level
KPI 1 – Accuracy of initial annual financial forecast for payments
In 2016, DG NEAR realized 95.06% of its financial forecasts for payments (EUR 3,086
million out of a total of EUR 3,246 million). In 2015, the result was lower at 90.68% and
EUR 2,336 million.
DG NEAR_aar_2016_annexes_final Page 133 of 224
Within target: 6 Delegations18 and 4 HQ Units19 were well situated within the target
of 90%-110%.
Above target: Delegations exceeding the forecast were: Turkey (241.72%), Moldova
(149.32%), Ukraine (149.17%) and Syria (144.61%). HQ Units exceeding the
forecast were: NEAR A 01 (195.09%) and NEAR C 01 (118.41%).
Below target: The remaining 12 Delegations and 7 HQ Units performed below the
target of 90%:
18 Algeria DZ, Egypt EG, West Bank and Gaza Strip PS, Georgia GE, Jordan JO, Morocco MA. 19 NEAR A 04, NEAR B 01, NEAR C 03, NEAR R 03.
95.06%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
NE
AR
R
SG
UA
Total
KPI Value 217,96% 86,68% 85,59% 66,47% 99,26% 149,17% 95,06%
Actuals (in M€) 517,7 1 304,7 540,3 433,5 76,7 213,0 3 086,0
Forecasts (in M€) 237,5 1 505,2 631,3 652,2 77,3 142,8 3 246,4
Variance (in M€) 280,2 -200,6 -91,0 -218,7 -0,6 70,2 -160,4
DG NEAR_aar_2016_annexes_final Page 134 of 224
12 Delegations didn't meet the target of minimum 90% and 4 Delegations performed
above the target of 110%. The reasons for under/over execution of forecasts were:
Under execution in ENI Delegations is mainly due to EUR 88 million in Budget
Support payments for a number of countries which were not executed either
because of the failure of the beneficiary country to deliver on time on agreed
benchmarks or results or because of unforeseen significant political events.
An additional important source of under execution for ENI Delegations that
amounts to EUR 80.6 million relates to delays by IFIs -including the European
Investment Bank- in finalizing the contracting in the framework of Neighborhood
Investment Facility for both ENI South and East.
In addition, an amount of EUR 60 million had been factored in for a Trust Fund
Syria payment. However, it was finally decided not to proceed with this payment
in a view of the fact that amounts on the relevant accounts generate negative
interest and should therefore be kept to a minimum.
Under executed amount of EUR 83.8 million relates to payments that the EU
Delegations in the Western Balkans have not executed, mainly due to delayed
procurement and contracting.
The negative result for all Delegations was compensated by over performance of Turkey
Delegation (241.72%). This is due to payments for Turkish Facility for Refugees that
were not included in the initial forecast in February 2016, which is used in calculation of
KPI 1, as they were agreed only in April.
KPI 2 – Accuracy of initial annual financial forecast for contracts
In 2016, DG NEAR achieved 91.45% of its financial forecasts for contracts (EUR 4,284
million against a total of EUR 4,684MEUR). In 2015, the result was 104.52% and EUR
3,847 million.
Delegation/HQ Unit (in M€) KPI Actual Forecast Variance
Albania AL 81,13% 81,4 100,4 -18,9
Armenia AM 84,35% 62,1 73,7 -11,5
Azerbaijan AZ 85,36% 22,3 26,1 -3,8
Belarus BY 83,44% 26,2 31,4 -5,2
Bosnia & Herzegovina BA 67,18% 50,6 75,3 -24,7
European Union Office in Kosovo XK 76,01% 58,4 76,9 -18,4
Israel IL 71,31% 5,6 7,8 -2,2
Lebanon LB 67,65% 72,5 107,2 -34,7
Montenegro ME 68,59% 18,6 27,2 -8,5
The former Yugoslav Republic of Macedonia MK 79,24% 43,7 55,2 -11,5
Serbia RS 63,20% 98,8 156,3 -57,5
Tunisia TN 58,87% 116,4 197,7 -81,3
NEAR A 02 58,50% 4,4 7,5 -3,1
NEAR A 03 68,15% 15,9 23,3 -7,4
NEAR B 02 78,43% 116,8 148,9 -32,1
NEAR B 03 1,87% 1,0 52,2 -51,2
NEAR C 02 28,03% 47,6 170,0 -122,3
NEAR D 04 0,00% 0,0 3,2 -3,2
NEAR D 05 51,93% 82,0 157,8 -75,8
Payments forecast - KPI value below the target of 90%
DG NEAR_aar_2016_annexes_final Page 135 of 224
Within target: 6 Delegations20 and 3 HQ Units21 were well situated within the target
of 90%-110%.
Above target: Delegations exceeding the forecast were: Algeria (121.18%), Israel
(189.27%), Jordan (135.89%), Lebanon (148.03%), Syria (879.58%), Moldova
(234.03%), Albania (171.93%) and the Former Yugoslav Republic of Macedonia
(159.38%). The HQ Unit exceeding the forecast was NEAR B 02 (131.97%).
Below target: The remaining 8 Delegations and 8 HQ Units performed below the
target of 90%:
20
Armenia AM, Azerbaijan AZ, Egypt EG, Morocco MA, Turkey TR, Ukraine UA. 21 NEAR A 02, NEAR C 03, NEAR R 03.
91.45%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
NE
AR
R
SG
UA
Total
KPI Value 101,40% 90,43% 77,97% 86,43% 105,21% 106,15% 91,45%
Actuals (in M€) 1 191,3 1 623,9 509,6 727,9 3,1 228,6 4 284,3
Forecasts (in M€) 1 174,9 1 795,7 653,5 842,2 2,9 215,3 4 684,6
Variance (in M€) 16,4 -171,9 -144,0 -114,3 0,2 13,2 -400,3
DG NEAR_aar_2016_annexes_final Page 136 of 224
KPI 3 – Accuracy of initial annual financial forecast for decisions
In 2016, DG NEAR reached 99.06% of its financial forecasts for decisions (EUR 4,408
million against a total of EUR 4,449 million). In 2015 this KPI was not available for DG
NEAR.
KPI 3 was calculated in 2016 in NEAR only at Directorate level.
KPI 4 – RAL absorption period
The RAL absorption period of 4.15 years is very close to the target which is less than 4
years. This is a net progress compared to the value of 5.02 years of the 2015 exercise. A
number of old NEAR commitments (average age 16.6 years) could not be linked to a
managing entity and were put under a column "N/A" in the table, as was the Trust Fund
for Syria (MADAD). KPI 4 is not being benchmarked for HQ Units.
The RAL absorption period is a snapshot of the situation of each Delegation at the end of
the year:
Delegation/HQ Unit (in M€) KPI Actual Forecast Variance
West Bank and Gaza Strip PS 68,39% 333,5 487,7 -154,2
Tunisia TN 87,34% 148,2 169,7 -21,5
Belarus BY 47,25% 14,1 29,9 -15,8
Georgia GE 73,80% 88,8 120,4 -31,5
Bosnia & Herzegovina BA 75,15% 45,7 60,8 -15,1
European Union Office in Kosovo XK 65,77% 52,2 79,4 -27,2
Montenegro ME 80,41% 34,3 42,7 -8,4
Serbia RS 42,12% 104,3 247,6 -143,3
NEAR A 03 86,19% 23,1 26,8 -3,7
NEAR A 05 0,00% 62,6 0,0 62,6
NEAR B 01 0,00% 2,0 0,0 2,0
NEAR B 03 0,52% 1,8 350,7 -348,9
NEAR C 01 0,00% 184,9 0,0 184,9
NEAR C 02 15,12% 57,3 378,9 -321,6
NEAR D 02 0,00% 15,0 0,0 15,0
NEAR D 05 87,81% 237,1 270,0 -32,9
Contracted forecast - KPI value below the target of 90%
99.06%
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
RTotal
KPI Value 96,01% 97,05% 106,64% 101,54% 102,38% 99,06%
Actuals (in M€) 1 448,7 1 278,7 641,7 834,2 204,8 4 408,1
Forecasts (in M€) 1 508,9 1 317,6 601,8 821,6 200,0 4 449,9
Variance (in M€) -60,2 -38,9 40,0 12,6 4,8 -41,8
4.15years▼
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
N/A
NE
AR
R
Total
KPI Value (years) 4,86 3,66 3,72 6,11 2,71 3,74 4.15
RAL (in M€) 2 524,8 4 791,0 2 009,5 2 761,3 577,5 500,2 13 164,4
Paid amount (in M€) 519,3 1 310,4 540,8 452,0 213,0 133,8 3 169,2
DG NEAR_aar_2016_annexes_final Page 137 of 224
The main reasons for not meeting the target are:
Delays in the signature of the Financing Agreements22 by Beneficiaries and
subsequently delays in all the tenders related. (Turkey, Montenegro, Macedonia)
Blocked Budget Support operations. (Egypt)
Contributions to Trust Funds, which should be excluded from Delegation's
calculation of KPI 4. (Syria)
Outstanding audits for many projects hinder their formal closure and such
increase the RAL. (Serbia)
The substantial increase in the volume of aid in 2016 (EUR 213.5 million) and the
late adoption of decisions financed by the Neighborhood Investment Facility (NIF)
and the Trust Fund for Migration have almost mechanically increased the RAL.
(Tunisia)
Delays in projects implementation linked to the inertia of the local authorities and
to the resignations/changes of experts at the crucial moments of the
implementation of the projects. (Algeria)
KPI 5 – % of projects with red traffic light for implementation progress
Project assessment in the EAMR is a snapshot of the situation of each project at the end
of the year. Red and orange traffic lights highlight risks that are identified by project
managers with regards to the implementation of the activities or the achievement of the
objectives at the end of the year. This enables corrective measures to be taken. The
actual impact of the identified difficulties can only be assessed at the end of the project.
22 Indirect Management mode.
Delegation (in M€) KPI RAL Paid amount
Turkey TR 4,78 2 376,4 497,2
Algeria DZ 5,40 233,9 43,3
Egypt EG 5,80 801,5 138,2
West Bank and Gaza Strip PS 0,71 243,4 341,2
Israel IL 2,95 16,5 5,6
Jordan JO 2,88 441,0 153,1
Lebanon LB 4,48 324,9 72,5
Morocco MA 3,83 896,8 233,9
Syria SY 8,14 672,9 82,6
Tunisia TN 5,08 591,1 116,4
Armenia AM 3,20 198,9 62,1
Azerbaijan AZ 4,32 96,2 22,3
Belarus BY 3,46 90,6 26,2
Georgia GE 3,67 384,6 104,8
Moldova MD 5,06 486,3 96,1
Albania AL 3,70 302,1 81,7
Bosnia & Herzegovina BA 4,79 242,5 50,6
European Union Office in Kosovo XK 5,06 296,3 58,6
Montenegro ME 6,24 116,9 18,7
The former Yugoslav Republic of Macedonia MK 5,74 254,0 44,3
Ukraine UA 2,71 577,5 213,0
Serbia RS 7,68 759,5 98,9
RAL Absorption period
DG NEAR_aar_2016_annexes_final Page 138 of 224
KPI 5 results are snapshots at a point in time, meant to draw specific attention on
performance of projects and programmes. The assessment takes into consideration other
factors than only financial ones.
One Delegation (Azerbaijan – 15.63%) and one HQ Unit (NEAR B 04 – 15.00%) have
more than 10% of projects with red traffic lights and therefore did not meet the target.
3.91%
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI result 2,00% 3,92% 4,76% 3,33% 3,79% 3.91%
Number of projects with red traffic light 1 31 26 21 5 84
Number of ongoing projects 50 790 546 631 132 2149
Project value with red traffic light (in M€) 2,6 371,6 168,5 194,8 49,0 786,5
Total project value (in M€) 658,0 6 264,9 2 143,4 2 775,9 722,0 12 564,1
Contextual indicator 0,39% 5,93% 7,86% 7,02% 6,79% 6,26%
Delegation/HQ Unit Green Orange RedNumber of
ProjectsKPI Value
Albania AL 57 13 4 74 5,41%
Algeria DZ 18 6 2 26 7,69%
Armenia AM 52 19 3 74 4,05%
Azerbaijan AZ 50 4 10 64 15,63%
Belarus BY 50 3 53 0,00%
Bosnia & Herzegovina BA 116 3 3 122 2,46%
Egypt EG 60 13 6 79 7,59%
European Union Office in Kosovo XK 174 3 9 186 4,84%
West Bank and Gaza Strip PS 117 10 3 130 2,31%
Georgia GE 131 12 2 145 1,38%
Israel IL 46 3 49 0,00%
Jordan JO 79 12 3 94 3,19%
Lebanon LB 52 14 5 71 7,04%
Moldova MD 70 12 4 86 4,65%
Montenegro ME 25 3 2 30 6,67%
Morocco MA 50 27 6 83 7,23%
NEAR A 03 19 1 20 5,00%
NEAR A 04 3 1 4 0,00%
NEAR A 05 5 5 0,00%
NEAR B 02 87 3 3 93 3,23%
NEAR B 04 12 5 3 20 15,00%
NEAR C 01 26 4 3 33 9,09%
NEAR C 02 57 12 4 73 5,48%
NEAR C 03 18 18 0,00%
NEAR D 05 119 3 1 123 0,81%
The former Yugoslav Republic of Macedonia MK 36 3 1 40 2,50%
Serbia RS 54 1 1 56 1,79%
Syria SY 25 7 32 0,00%
Tunisia TN 113 113 0,00%
Turkey TR 21 21 0,00%
Ukraine UA 119 8 5 132 3,79%
TOTAL 1861 204 84 2149 3,91%
Traffic Light
KPI 5 - % of projects with red traffic light for implementation progress
DG NEAR_aar_2016_annexes_final Page 139 of 224
KPI 6 – % of projects with red traffic light for achieving results
General comment made above on KPI 5 is applicable also for KPI 6.
Two Delegations (Azerbaijan – 15.63%, Syria – 21.88%) and one HQ Unit (NEAR B 04 –
20.00%) have more than 10% of projects with red traffic lights and therefore did not
meet the target.
4.98%
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI result 0,00% 5,57% 5,31% 4,12% 6,06% 4.98%
Number of projects with red traffic light 0 44 29 26 8 107
Number of ongoing projects 50 790 546 631 132 2149
Project value with red traffic light (in M€) 0,0 350,9 189,1 220,9 51,8 812,7
Total project value (in M€) 658,0 6 264,9 2 143,4 2 775,9 722,0 12 564,1
Contextual indicator 0,00% 5,60% 8,82% 7,96% 7,18% 6,47%
Delegation/HQ Unit Green Orange RedNumber of
ProjectsKPI Value
Albania AL 47 24 3 74 4,05%
Algeria DZ 9 16 1 26 3,85%
Armenia AM 45 23 6 74 8,11%
Azerbaijan AZ 45 9 10 64 15,63%
Belarus BY 48 4 1 53 1,89%
Bosnia & Herzegovina BA 92 28 2 122 1,64%
Egypt EG 56 16 7 79 8,86%
European Union Office in Kosovo XK 147 26 13 186 6,99%
West Bank and Gaza Strip PS 100 23 7 130 5,38%
Georgia GE 122 21 2 145 1,38%
Israel IL 46 3 49 0,00%
Jordan JO 73 16 5 94 5,32%
Lebanon LB 39 27 5 71 7,04%
Moldova MD 60 20 6 86 6,98%
Montenegro ME 17 11 2 30 6,67%
Morocco MA 51 27 5 83 6,02%
NEAR A 03 19 1 20 0,00%
NEAR A 04 4 4 0,00%
NEAR A 05 5 5 0,00%
NEAR B 02 78 12 3 93 3,23%
NEAR B 04 9 7 4 20 20,00%
NEAR C 01 23 9 1 33 3,03%
NEAR C 02 41 29 3 73 4,11%
NEAR C 03 18 18 0,00%
NEAR D 05 110 10 3 123 2,44%
The former Yugoslav Republic of Macedonia MK 21 18 1 40 2,50%
Serbia RS 51 3 2 56 3,57%
Syria SY 9 16 7 32 21,88%
Tunisia TN 108 5 113 0,00%
Turkey TR 21 21 0,00%
Ukraine UA 100 24 8 132 6,06%
TOTAL 1614 428 107 2149 4,98%
KPI 6 – % of projects with red traffic light for achieving results
Traffic Light
DG NEAR_aar_2016_annexes_final Page 140 of 224
Comments on KPI 5 and KPI 6
KPI5 and KPI6 are forward looking as they asses the probability to fully use the project
resources and to reach the expected level of outputs and outcomes at the end of the
projects. Orange or red traffic lights call for attention and indicate if corrective actions
are envisaged and if risks on implementation and on achieving results remain. A project
can be given an orange traffic light even if it is on schedule, if a risk remains. On the
other hand, a project behind schedule may be given a green traffic light if constraints or
issues have been solved and the project will now continue at full speed and make up for
delays. A project is defined as problematic if one of KPI5 and/or KPI6 is orange or red.
The table below shows statistics on traffic lights for Projects for both KPI 5 and KPI 6:
A problematic project is defined as a project for which at least one from two traffic lights
(of KPI 5 and KPI 6) is orange or red. In 2016 from 2149 Projects, 576 (27%) were
marked as problematic which represents EUR 4,529 million (36%) in total value of
projects. The table below shows the distribution of problematic projects between
Delegations/HQ Units ranked by total amount for problematic projects in million EUR:
KPI 5 and KPI 6 Green KPI 5 or KPI 6 Orange KPI 5 or KPI 6 Red Total
Number of Projects 1573 452 124 2149
% 73% 21% 6% 100%
Amount of Projects (in M€ ) 8 035,0 3 595,7 933,4 12 564,1
% 64% 29% 7% 100%
Delegation/HQ Unit Number Amount (M€)
Morocco MA 37 623,9
Egypt EG 27 556,7
Ukraine UA 32 528,8
Lebanon LB 33 334,2
Armenia AM 35 263,0
Moldova MD 26 261,1
Serbia RS 5 244,8
Jordan JO 26 179,9
Algeria DZ 18 179,2
The former Yugoslav Republic of Macedonia MK 19 177,0
Albania AL 29 173,1
West Bank and Gaza Strip PS 32 143,6
Georgia GE 26 132,8
NEAR C 02 37 111,9
NEAR C 01 10 105,3
Bosnia & Herzegovina BA 30 100,8
Syria SY 23 100,1
NEAR B 02 15 89,0
NEAR B 04 11 50,3
European Union Office in Kosovo XK 39 50,2
NEAR D 05 14 48,6
Belarus BY 8 27,8
Tunisia TN 5 17,7
Montenegro ME 15 12,3
Azerbaijan AZ 19 11,8
NEAR A 03 1 2,6
Israel IL 3 1,9
NEAR A 04 1 1,0
Total 576 4 529,2
Problematic Projects
DG NEAR_aar_2016_annexes_final Page 141 of 224
The following tables show the top 10 projects based on their value and classified per
category (Green/Orange/Red) both across Delegations and HQ Units:
Delegation/HQ Unit Project Title EU Contribution (M€)
Turkey TR Action Programme for Turkey 2015 - Objective 1 196,6
Serbia RS Serbia National Programme 2011 178,6
Serbia RS Serbia National Programme IPA 2012 170,6
NEAR B 02 2016 Contribution to the NIF (Neighbourhood
Investment Facility) for the SOUTH
146,5
West Bank and Gaza Strip PS Individual Commitment for payments of PEGASE
component n 1: contrubition to Civil Servants and
Pensioners (CSP) - 2016
115,0
NEAR D 05 Contribution Arrangement with respect to the
European Western Balkans Joint Fund under the
Western Balkans Investment Framework
102,1
West Bank and Gaza Strip PS EU Contribution to the UNRWA 2016 Programme
Budget
102,0
Morocco MA PROGRAMME D'APPUI A LA CROISSANCE ET
LA COMPETITIVITE AU MAROC- PACC
100,0
Tunisia TN Progamme d'Appui à la Relance IV 100,0
Morocco MA Contrat pour le versement des différentes tranches
de l'appui budgétaire du programme PASS II
94,0
Top 10 "Green" Projects
Delegation/HQ Unit Project Title EU Contribution (M€)
Ukraine UA State Building Contract for Ukraine (AAP 2014) 232,0
Egypt EG Water Sector Reform Programme – Phase II (WSRP-II) 120,0
Egypt EG HSPSP II-Health Sector Policy Support Programme II 110,0
Ukraine UA U-LEAD with Europe: Ukraine Local Empowerment,
Accountability and Development Programme
90,0
Morocco MA Programme d’appui à la réforme éducative au Maroc
''Education II''
89,9
Morocco MA Réussir le Statut Avancé phase II - RSA II 87,0
Serbia RS Annual Action Programme Serbia IPA 2015 - Sector
Budget Support PAR
80,0
Morocco MA Contrat pour le versement des différentes tranches de
l'appui budgétaire du programme Justice
65,5
Egypt EG Energy Sector Policy Support Programme 60,0
Morocco MA Programme d’appui à la politique sectorielle agricole du
Maroc, phase 2 (AGRI II)
60,0
Top 10 "Orange" Projects
DG NEAR_aar_2016_annexes_final Page 142 of 224
For problematic projects the following table shows an overview of the types of problems
or risks encountered in 2016:
Most of the problematic projects encountered issues with assumptions and/or risks as
well as in the intervention logic. Optimistic assumptions and risk analysis are in part due
the high expectations with regards the implementation. Projects are implemented in a
sometimes rapidly changing environment which may lead to the need of updating the
assumptions and risks, leading to a revised project plan.
Next to these issues, problematic projects are most often related to fiduciary risk
(corruption, fraud) and to low performance of the project implementation partner
(absorption, procedures).
For problematic projects the following table shows frequencies of corrective measures
proposed in 2016:
Delegation/HQ Unit Project Title EU Contribution (M€)
Serbia RS Serbia National Programme IPA 2013 (Decentralised part) 145,6
Egypt EG Targeted support for sector reforms-Transport 80,0
Morocco MA Contrat de décaissement des tranches de l'appui budgétaire
du Programme RSA I
70,0
Moldova MD Support to the Justice Sector 58,2
Ukraine UA Continued Support to the implementation of Ukraine`s
Energy Strategy
45,0
Morocco MA Contrat pour le versement des tranches d'appui budgétaire
du programme d'appui à la promotion de l'équité et de
l'égalité entre les femmes et les hommes au Maroc
37,5
Armenia AM Support to the Government of Armenia for the
implementation of the ENP AP and preparations for the
future Association Agreement – Phase II
36,8
Algeria DZ PAPS ENVIRONNEMENT (Programme d’Appui à la
Politique Sectorielle de l’Environnement)
34,0
Algeria DZ Programme d'appui à la protection et valorisation du
patrimoine culturel en Algérie
21,5
Gaza Strip PS Sewerage Nablus East 20,0
Top 10 "Red" Projects
DG NEAR_aar_2016_annexes_final Page 143 of 224
An increase in policy dialogue and a possible extension of the project are the corrective
measures most frequently mentioned.
KPI 7 – Reduction of old pre-financing
Old pre-financing was reduced by 32.83% or EUR 679 million in 2016. It currently
(31/12/2016) stands at EUR 1,390 million. The total old pre-financing amount at the end
of 2016 represents 18% of the total pre-financing open in DG NEAR (EUR 2,070 million).
KPI results, cleared amounts and open amounts are presented in the tables below with a
split between HQ Units and Delegations, ranked by highest amount cleared.
32.83%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
N/A
NE
AR
R
Total
KPI Value 77,85% 19,97% 11,29% 44,44% 18,74% 52,40% 32.83%
Old pre-financing 31/12/2016(in M€) 84,3 393,1 618,2 243,0 51,9 0,1 1 390,5
Reduction in amounts (in M€) 296,4 98,1 78,7 194,3 12,0 0,1 679,4
DG NEAR_aar_2016_annexes_final Page 144 of 224
Delegations with the highest open amounts of old pre-financing at 31/12/2016 were
Egypt (EUR 109 million), Turkey (EUR 77 million) and Morocco (EUR 71 million). In HQ
two Units with highest open amounts were NEAR C 01 (EUR 495 million) and NEAR D 05
(EUR 159 million).
KPI 8 – Expired contracts as a % of the contract portfolio
At the end of 2016, 852 contracts or 15.62% of the total number of open contracts
(5,456) were expired. This is deterioration of result when compared to 2015 when the
KPI was green: 13.32% and 787 expired contracts (total of 5,910 open).
Delegation/HQ Unit (in M€) KPIStart open
amount
End open
amount
Cleared
amount
Turkey TR 79,03% 371,3 77,9 293,5
NEAR D 06 97,50% 93,0 2,3 90,7
NEAR D 05 19,92% 198,6 159,1 39,6
Bosnia & Herzegovina BA 69,96% 43,0 12,9 30,1
NEAR C 01 4,39% 518,2 495,5 22,7
Moldova MD 31,00% 66,6 46,0 20,7
Lebanon LB 25,82% 78,1 57,9 20,2
Egypt EG 12,79% 125,8 109,7 16,1
NEAR C 02 27,94% 48,1 34,6 13,4
Tunisia TN 22,35% 58,9 45,7 13,2
Albania AL 40,14% 32,1 19,2 12,9
Jordan JO 49,31% 25,6 13,0 12,6
Ukraine UA 18,74% 63,9 51,9 12,0
NEAR B 02 17,71% 53,5 44,0 9,5
Serbia RS 36,67% 25,7 16,3 9,4
West Bank and Gaza Strip PS 48,23% 18,8 9,7 9,0
Georgia GE 20,25% 40,5 32,3 8,2
Belarus BY 65,44% 11,7 4,0 7,6
Morocco MA 8,99% 78,7 71,7 7,1
European Union Office in Kosovo XK 26,29% 24,7 18,2 6,5
Algeria DZ 46,51% 11,5 6,1 5,3
Syria SY 13,32% 31,8 27,6 4,2
The former Yugoslav Republic of Macedonia MK 26,32% 15,9 11,7 4,2
Azerbaijan AZ 66,62% 4,7 1,6 3,1
NEAR A 03 76,87% 2,5 0,6 1,9
Armenia AM 28,92% 5,9 4,2 1,7
NEAR C 03 100,00% 1,2 0,0 1,2
Montenegro ME 23,75% 4,2 3,2 1,0
Israel IL 32,80% 2,5 1,7 0,8
NEAR A 02 90,08% 0,9 0,1 0,8
NEAR A 01 100,00% 0,1 0,0 0,1
NEAR B 04 2,84% 2,4 2,3 0,1
NEAR B 03 100,00% 0,0 0,0 0,0
NEAR A 05 0,00% 5,8 5,8 0,0
NEAR B 01 0,00% 3,7 3,7 0,0
Reduction of Old Pre-financing
DG NEAR_aar_2016_annexes_final Page 145 of 224
Distribution of expired contracts between the Delegations/HQ Units is presented in below
table, ranked by RAL of expired contracts:
The table below shows the KPI results by contract type. Programme estimates, supplies
15.62%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
NE
AR
R
SG
UA
Total
KPI Value 9,71% 12,79% 14,90% 20,23% 12,20% 2,12% 15.62%
Number of expired contracts 20 242 145 436 5 4 852
Number of all open contracts 206 1892 973 2155 41 189 5456
RAL of expired contracts (in M€) 2,0 30,7 92,8 31,5 0,0 0,1 157,0
Delegation/HQ Unit KPI
Number
of Expired
contracts
Number
of Open
contracts
RAL of
expired
contracts
(in M€)
NEAR C 01 36,84% 28 76 81,4
NEAR B 02 29,12% 53 182 11,5
Serbia RS 17,68% 73 413 11,2
European Union Office in Kosovo XK 18,24% 87 477 8,3
NEAR C 02 30,95% 52 168 8,1
Morocco MA 13,85% 27 195 6,8
NEAR D 05 30,27% 89 294 5,2
Albania AL 24,42% 63 258 4,2
Lebanon LB 14,09% 41 291 3,0
Algeria DZ 14,14% 27 191 2,7
West Bank and Gaza Strip PS 12,15% 26 214 2,2
Moldova MD 17,50% 28 160 1,9
Turkey TR 10,32% 13 126 1,8
Egypt EG 10,81% 24 222 1,8
NEAR B 01 25,00% 1 4 1,4
Bosnia & Herzegovina BA 16,04% 51 318 0,9
The former Yugoslav Republic of Macedonia MK 17,82% 31 174 0,9
Tunisia TN 9,17% 22 240 0,8
Armenia AM 10,85% 14 129 0,7
NEAR D 04 85,71% 12 14 0,6
Belarus BY 12,21% 16 131 0,6
Israel IL 10,58% 11 104 0,3
Montenegro ME 14,29% 29 203 0,2
Jordan JO 3,01% 5 166 0,2
NEAR A 03 9,76% 4 41 0,2
Azerbaijan AZ 4,71% 4 85 0,1
Ukraine UA 2,12% 4 189 0,1
Georgia GE 1,49% 3 202 0,1
Syria SY 6,38% 3 47 0,0
NEAR A 05 28,57% 2 7 0,0
NEAR C 03 0,00% 0 22 0,0
NEAR D 02 0,00% 0 2 0,0
NEAR A 02 5,26% 1 19 0,0
NEAR A 04 0,00% 0 11 0,0
NEAR B 03 5,56% 2 36 0,0
NEAR A 01 0,00% 0 2 0,0
NEAR R 03 12,20% 5 41 0,0
NEAR D 03 50,00% 1 2 0,0
Expired contracts
DG NEAR_aar_2016_annexes_final Page 146 of 224
and works rate worst. 41% of the expired Programme-Estimates have an ongoing audit.
The main reasons, quoted by Delegations, for not meeting the benchmark are:
Managing a large portfolio of projects while facing obstacles during
implementation phase, late reporting, institutional environment and co-financing
issues that prevent the closure of expired contracts. (Serbia)
Contracts which cannot be closed due to their different outstanding contractual
and legal issues: arbitration or settlement of disputes, defects notification period
in progress, recovery orders to be issued, recovery orders not cashed, waivers
initiated, contracts pending final acceptance certificate or under warranty period,
ongoing audit. (Kosovo, Albania, Bosnia and Herzegovina, Macedonia)
For contracts under Indirect Management, payments and closure modalities are
different from the Grants or Service Contracts. (Moldova)
KPI 9 – Reduction of old RAL
The overall result of 36.55% exceeds the target of at least 25%. Except for NEAR C and
NEAR D all Directorates have reached the benchmark.
The amount at decision level (RAC) is 155MEUR (41%) and at contract level (RAP)
220MEUR (59%). The total amount of 376MEUR in 2016 is a significant reduction
compared to 663MEUR in 2015.
The Old RAL represents 2.86% of the total RAL in 2016 compared to 5.55% in 2015.
Distribution of old RAL between the Delegations/HQ Units is presented in below table,
ranked by RAL reduction level:
Contract type
Number
of Expired
contracts
Number
of Open
contracts
RAL of
expired
contracts
(in M€)
KPI by
Contract
type
Financing Memorandum 13 38 1,8 34,21%
Grant 410 2566 17,9 15,98%
Implementation 370 2212 135,6 16,73%
Reconciliation 0 21 0,0 0,00%
Specific contract (framework contract) 59 619 1,8 9,53%
TOTAL 852 5456 157,0 15,62%
36.55%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
N/A
NE
AR
R
Total
KPI Value 32,75% 41,27% 21,25% 23,02% 62,70% 30,75% 36.55%
Reduction achieved in amounts (in M€) 7,3 154,5 7,4 29,5 15,3 2,9 216,9
Old RAL remaining 31/12/2016 (in M€) 15,0 220,0 27,3 98,7 9,1 6,4 376,5
DG NEAR_aar_2016_annexes_final Page 147 of 224
Contracts holding an old RAL relate mainly to Pro-forma registration (58%) and National
Funds (13%):
Delegation/HQ Unit (in M€) KPIRAL
reduction
Period end
RAL
Egypt EG 34,63% 80,2 151,5
Morocco MA 87,53% 56,3 8,0
Ukraine UA 62,70% 15,3 9,1
NEAR B 02 39,93% 9,2 13,8
Serbia RS 62,58% 7,9 4,7
Albania AL 48,04% 7,4 8,0
European Union Office in Kosovo XK 45,49% 6,9 8,3
Turkey TR 27,42% 5,6 14,8
Azerbaijan AZ 89,58% 4,2 0,5
Jordan JO 28,84% 4,1 10,0
NEAR D 06 22,22% 3,9 13,6
Bosnia & Herzegovina BA 19,26% 3,2 13,2
N/A 30,75% 2,9 6,4
West Bank and Gaza Strip PS 44,10% 2,4 3,1
Georgia GE 32,19% 2,4 5,1
NEAR A 02 91,71% 1,8 0,2
Algeria DZ 28,64% 1,1 2,9
Armenia AM 51,19% 1,1 1,1
The former Yugoslav Republic of Macedonia MK 20,26% 0,9 3,4
Lebanon LB 4,94% 0,8 15,5
Belarus BY 34,90% 0,7 1,3
Tunisia TN 5,81% 0,6 9,8
NEAR D 02 2,28% 0,4 17,7
NEAR C 03 68,90% 0,2 0,1
NEAR D 05 0,72% 0,1 15,3
Montenegro ME 88,86% 0,1 0,0
Syria SY 0,00% 0,0 0,1
NEAR B 00 -2,52% -0,0 0,5
NEAR A 05 0,00% -0,1 0,1
NEAR D 01 -19,50% -0,1 0,7
NEAR C 02 -2,17% -0,2 7,3
NEAR B 01 -4,06% -0,2 4,8
NEAR C 01 -5,48% -0,4 8,4
NEAR D 04 -5,48% -0,5 10,5
NEAR D 03 -22,28% -0,6 3,3
Moldova MD -22,55% -0,7 3,6
Reduction of old RAL
DG NEAR_aar_2016_annexes_final Page 148 of 224
KPI 10 – % of payments paid within the EC internal target of 30 days23
At NEAR level, 54.13% of the payments were paid within the EC internal target of 30
days which is below the benchmark of 66%. This is a similar result as in the 2015 EAMR
exercise - 54.81%.
In total, 4,849 invoices for a total amount of 2,553MEUR have been paid in 2016,
compared to 5,256 invoices for a total amount of 1,938MEUR in 2015.
In terms of amounts paid, the KPI is 67.46%. This is higher than it was in 2015
(52.27%).
Analysis of the contractual obligations shows that 82% of payments respected the
contractual deadlines in 2016.
The table below gives an overview by Directorate of the respect of the EC internal target
and the respect of payment deadline on a contractual basis.
23 With the latest release of the KPI Dashboard mid-December 2016, the computation of the baseline date for
payments was changed to consider the transfer date to EC of the invoice. This is also applied to figures of 2015.
54.13%▼
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
N/A Total
KPI Value 60,11% 54,73% 51,15% 47,65% 59,89% 100,00% 88,58% 54.13%
Number of On-target invoices 107 868 400 862 109 23 256 2625
Number of Total of invoices 178 1586 782 1809 182 23 289 4849
% of invoices paid within contractual delay 79,8% 77,7% 83,2% 83,4% 85,7% 100,0% 89,6% 81,9%
DG NEAR_aar_2016_annexes_final Page 149 of 224
Distribution of KPI10 between the Delegations/HQ Units is presented in below table,
ranked descending by number of on-target invoices:
Most of the invoices paid outside the EC internal target of 30 days relate to action grants
(40%) and service contracts (34%) which is consistent with the distribution of the total
number of invoices amongst contract types.
Delegation/HQ Unit KPI
Number of
On-target
invoices
Number of
Total of
invoices
European Union Office in Kosovo XK 59,53% 256 430
N/A 88,58% 256 289
West Bank and Gaza Strip PS 48,39% 135 279
Georgia GE 66,34% 134 202
Lebanon LB 54,95% 122 222
Albania AL 34,01% 118 347
Bosnia & Herzegovina BA 49,33% 111 225
Serbia RS 29,81% 110 369
Ukraine UA 59,89% 109 182
Algeria DZ 66,24% 104 157
The former Yugoslav Republic of Macedonia MK 73,24% 104 142
Jordan JO 62,05% 103 166
Montenegro ME 61,35% 100 163
Tunisia TN 53,55% 98 183
Morocco MA 62,16% 92 148
Egypt EG 51,18% 87 170
Turkey TR 58,93% 66 112
Azerbaijan AZ 78,31% 65 83
NEAR B 02 42,64% 55 129
Moldova MD 50,00% 54 108
NEAR D 05 47,17% 50 106
Belarus BY 47,12% 49 104
NEAR C 02 31,62% 43 136
Armenia AM 41,98% 34 81
Israel IL 45,45% 25 55
NEAR R 03 100,00% 23 23
NEAR B 03 58,33% 21 36
NEAR A 03 66,67% 20 30
Syria SY 65,52% 19 29
NEAR A 02 62,96% 17 27
NEAR C 01 30,95% 13 42
NEAR D 06 48,15% 13 27
NEAR C 03 30,77% 8 26
NEAR B 04 54,55% 6 11
NEAR A 04 42,86% 3 7
NEAR A 01 50,00% 1 2
NEAR B 01 100,00% 1 1
Payments paid within the EC internal target of 30 days
DG NEAR_aar_2016_annexes_final Page 150 of 224
The main reasons, quoted by Delegations, for not meeting the benchmark are:
Deadlines for contracts are different from KPI target value - for most Contracts
the legal obligation to pay is within 45 to 90 days. (All Delegations)
Change of the IT system for management of the financial transactions from CRIS
to ABAC in April 2016 partly hampered the timely processing of invoices. (Serbia,
Albania, West Bank and Gaza Strip)
Large number of decentralized payments, where the circuit is lengthened by the
beneficiary's processing of the invoice. (Egypt)
KPI 11 – Use of DEVCO staff and respect of the flexibility arrangements
Global DG NEAR result of 100.00% has met the target.
KPI 12 – % of green traffic lights for the effectiveness of the two ICS related to
mission and values in Delegations
The global DG NEAR result of 96.21% exceeds the target of 80% and has improved over
the 2015 result (95.14%).
Directorate KPI result
NEAR A 100,00%
NEAR B 92,59%
NEAR C 96,67%
NEAR D 100,00%
SGUA 100,00%
96.21%▲
DG NEAR_aar_2016_annexes_final Page 151 of 224
KPI 13 – % of green traffic lights for the effectiveness of the two ICS related to
human resources in Delegations
The global DG NEAR result of 94.10% exceeds the target of 80% but is slightly lower
than the result of 2015 (94.84%).
KPI 14 – % of green traffic lights for the effectiveness of the two ICS related to
planning and risk management in Delegations
The global DG NEAR result of 92.64% exceeds the target of 80% but is slightly lower
than the result of 2015 (93.06%).
KPI 15 – % of green traffic lights for the effectiveness of the five ICS related to
operations and control activities in Delegations
The global DG NEAR result of 93.60% exceeds the target of 80% but is slightly lower
than the result of 2015 (94.49%).
KPI 16 – % of green traffic lights for the effectiveness of the three ICS related
to information and financial reporting in Delegations
The global DG NEAR result of 93.18% is well above the target of 80% and has improved
since 2015 (92.77%).
KPI 17 – % of green traffic lights for the effectiveness of the two ICS related to
evaluation and audit in Delegations
The global NEAR result of 95.20% is well above the benchmark of 80% but slightly lower
than in 2015 (96.53%).
Directorate KPI result
NEAR A 83,33%
NEAR B 90,74%
NEAR C 95,56%
NEAR D 99,02%
SGUA 100,00%
94.10%▼
Directorate KPI result
NEAR A 100,00%
NEAR B 92,59%
NEAR C 90,48%
NEAR D 92,06%
SGUA 100,00%
92.64%▼
Directorate KPI result
NEAR A 95,45%
NEAR B 90,91%
NEAR C 93,64%
NEAR D 96,21%
SGUA 100,00%
93.60%▼
Directorate KPI result
NEAR A 100,00%
NEAR B 90,74%
NEAR C 92,22%
NEAR D 95,37%
SGUA 100,00%
93.18%▲
DG NEAR_aar_2016_annexes_final Page 152 of 224
KPI 18 – % of projects visited by Commission staff and/or the HoD, by project
value
In 2016, 81.77% of the ongoing projects (in value) were visited by NEAR staff and/or by
the Heads of Delegations. This is above the target of 80%.
The secondary/contextual indicator by number of projects visited stands at 80.69%.
Results by Directorate in charge are presented in below table.
KPI 19 – % planned project evaluations contracted
The global DG NEAR result of 75.56% is satisfactory and above the benchmark of 75%.
The secondary/contextual indicator by number of projects visited stands at 75.22%.
Results by Directorate in charge are presented in below table.
KPI 20 – Ineligible amounts identified by ex-ante controls as a % of amount
claimed
At DG NEAR level, the percentage of ineligible amounts identified by ex-ante controls by
the end of 2016 is 4.64% which is above the minimum target of 2%. It represents a total
amount of EUR 129 million of undue payment prevented. This is higher than in 2015
(3.88% and EUR 68 million).
Results by Directorate are presented in the table below.
Directorate KPI result
NEAR A 100,00%
NEAR B 91,98%
NEAR C 96,67%
NEAR D 97,22%
SGUA 100,00%
95.20%▼
81.77%
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI Value 29,28% 86,42% 75,48% 86,72% 88,97% 81.77%
Project value of visited projects (in M€) 192,7 5 414,0 1 617,9 2 407,3 642,4 10 274,2
Project value of all projects (in M€) 658,0 6 264,9 2 143,4 2 775,9 722,0 12 564,1
Number of visited projects 35 638 412 545 104 1734
Number of all projects 50 790 546 631 132 2149
Contextual indicator 70,00% 80,76% 75,46% 86,37% 78,79% 80,69%
75.56%
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI Value 0,00% 63,93% 94,44% 90,20% 0,00% 75.56%
Number of Evaluations implemented 0 39 17 46 0 102
Number of Evaluations planned 1 61 18 51 4 135
Evaluations implemented (in M€) 0,0 413,0 73,2 252,9 0,0 739,1
Evaluations planned (in M€) 5,0 625,1 74,5 257,0 20,9 982,5
Contextual indicator 0,00% 66,07% 98,25% 98,39% 0,00% 75,22%
DG NEAR_aar_2016_annexes_final Page 153 of 224
Ineligible amounts were identified for 17.23% of the total number of invoices and cost
claims issued during the year 2016.
The majority of ex-ante ineligible amounts are identified by Delegations: EUR 128 million
or a share of 99% of the ineligible amount.
Distribution of KPI20 between the Delegations/HQ Units is presented in below table,
ranked descending by non-accepted amount:
4.64%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
N/A
NE
AR
R
Total
KPI Value 0,08% 4,73% 5,03% 0,45% 25,17% 1,00% 4.64%
Total amount verified (in M€) 511,1 1 064,3 391,6 599,2 225,2 5,9 2 797,3
Ex-ante ineligible amount (in M€) 0,4 50,3 19,7 2,7 56,7 0,1 129,9
Total number of invoices verified 127 1179 534 1503 115 296 3754
Number of invoices with non-accepted amounts 31 280 128 174 28 6 647
DG NEAR_aar_2016_annexes_final Page 154 of 224
EUR 118 million of the total ineligible amount relates to Program Estimates and Budget
Support payments making up 91% of the total ineligible amounts identified. The
distribution by contract nature is presented below:
Delegation/HQ Unit (in M€) KPI
Non-
accepted
amount
Total
amount
verified
Ukraine UA 25,17% 56,7 225,2
Morocco MA 15,97% 36,9 231,2
Moldova MD 7,82% 7,9 100,4
Israel IL 60,39% 5,7 9,5
Armenia AM 11,39% 5,1 44,4
Georgia GE 4,46% 4,2 93,7
Jordan JO 3,05% 3,6 117,8
Algeria DZ 7,95% 2,6 33,0
Azerbaijan AZ 9,38% 1,8 19,3
Albania AL 1,25% 1,0 79,8
Serbia RS 0,51% 0,5 106,9
The former Yugoslav Republic of Macedonia MK 4,19% 0,5 12,4
Egypt EG 1,08% 0,5 46,1
Belarus BY 1,76% 0,5 27,1
West Bank and Gaza Strip PS 0,11% 0,4 328,4
Montenegro ME 1,42% 0,3 23,1
Turkey TR 0,05% 0,3 484,8
NEAR B 02 0,29% 0,3 87,4
NEAR C 02 0,56% 0,2 43,2
Tunisia TN 0,23% 0,2 95,8
European Union Office in Kosovo XK 0,27% 0,2 62,3
Lebanon LB 0,23% 0,1 57,9
NEAR A 03 0,64% 0,1 19,9
NEAR D 05 0,12% 0,1 89,9
NEAR C 01 0,19% 0,1 43,6
N/A 1,00% 0,1 5,9
NEAR D 06 0,01% 0,0 109,5
Bosnia & Herzegovina BA 0,01% 0,0 115,2
NEAR B 04 0,20% 0,0 4,1
NEAR A 04 0,79% 0,0 0,9
Syria SY 0,01% 0,0 51,7
NEAR A 02 0,08% 0,0 4,8
NEAR C 03 0,01% 0,0 19,9
NEAR A 01 0,13% 0,0 0,7
NEAR B 01 0,00% 0,0 0,0
NEAR B 03 0,00% 0,0 1,3
Ineligible amount identified by ex-ante controls
DG NEAR_aar_2016_annexes_final Page 155 of 224
KPI 21 - % contracted of the Annual Audit Plan (year N)
At DG NEAR level, 61.81% of the audits foreseen in the Annual Audit Plan year N have
been contracted. This is above the benchmark of 60% and higher than the 39.55% of
2015.
All Directorates, except for NEAR B, are above the benchmark.
The main reason for not meeting the benchmark in Directorate B was due to re-
structuration of Directorate R and transfer of tasks. The situation will be brought up to
date during 2017.
Distribution of KPI21 between the Delegations/HQ Units is presented in below table,
ranked descending by number of contracted audits:
61.81%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
RTotal
KPI Value 100,00% 54,79% 72,09% 64,36% 69,23% 61.81%
Number of audits in audit plan N 6 146 43 101 13 309
Number of audits contracted 6 80 31 65 9 191
Number of audits still to be contracted 0 66 12 36 4 118
DG NEAR_aar_2016_annexes_final Page 156 of 224
Action grants, Services, Programme estimates and Budget support represent the highest
number of audits planned and contracted.
Delegation/HQ Unit KPIAudits
contracted
Total
Audits
planned
Serbia RS 100,00% 21 21
Tunisia TN 77,78% 14 18
NEAR D 05 100,00% 12 12
Egypt EG 91,67% 11 12
Morocco MA 78,57% 11 14
Jordan JO 76,92% 10 13
Albania AL 83,33% 10 12
Ukraine UA 69,23% 9 13
Lebanon LB 36,36% 8 22
Georgia GE 100,00% 8 8
European Union Office in Kosovo XK 20,00% 8 40
West Bank and Gaza Strip PS 33,33% 7 21
Moldova MD 100,00% 7 7
Israel IL 75,00% 6 8
Azerbaijan AZ 100,00% 6 6
Algeria DZ 23,81% 5 21
NEAR B 02 45,45% 5 11
Montenegro ME 71,43% 5 7
The former Yugoslav Republic of Macedonia MK 100,00% 5 5
Turkey TR 100,00% 4 4
Armenia AM 66,67% 4 6
Bosnia & Herzegovina BA 100,00% 4 4
Syria SY 40,00% 2 5
Belarus BY 40,00% 2 5
NEAR C 02 25,00% 2 8
NEAR A 01 100,00% 1 1
NEAR A 03 100,00% 1 1
NEAR B 03 100,00% 1 1
NEAR C 01 50,00% 1 2
NEAR C 03 100,00% 1 1
% contracted of the Annual Audit Plan (year N)
DG NEAR_aar_2016_annexes_final Page 157 of 224
KPI 22 - % contracted of the Annual Audit Plan (year N-1)
At DG NEAR level, 96.61% of the audits foreseen in the Annual Audit Plan year N-1 have
been contracted. This is above the benchmark of 85% and higher than the 90.82% of
2015.
All directorates are above the benchmark.
Distribution of KPI22 between the Delegations/HQ Units is presented in below table,
ranked descending by number of contracted audits:
96.61%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI Value 100,00% 94,39% 96,00% 98,47% 100,00% 96.61%
Number of audits in audit plan N-1 2 107 50 131 5 295
Number of audits contracted 2 101 48 129 5 285
Number of audits still to be contracted 0 6 2 2 0 10
DG NEAR_aar_2016_annexes_final Page 158 of 224
Action grants, Services, Programme estimates and Budget support represent the highest
number of audits planned and contracted.
Delegation/HQ Unit KPIAudits
contracted
Total
Audits
planned
Serbia RS 100,00% 49 49
Montenegro ME 100,00% 26 26
Bosnia & Herzegovina BA 100,00% 22 22
Egypt EG 93,75% 15 16
Tunisia TN 100,00% 15 15
NEAR C 02 100,00% 15 15
Armenia AM 100,00% 12 12
European Union Office in Kosovo XK 85,71% 12 14
Jordan JO 100,00% 11 11
Albania AL 100,00% 11 11
Algeria DZ 83,33% 10 12
West Bank and Gaza Strip PS 90,91% 10 11
Morocco MA 90,91% 10 11
Israel IL 100,00% 9 9
Georgia GE 100,00% 9 9
Lebanon LB 88,89% 8 9
NEAR B 02 100,00% 8 8
The former Yugoslav Republic of Macedonia MK 100,00% 6 6
Azerbaijan AZ 100,00% 5 5
Ukraine UA 100,00% 5 5
Syria SY 100,00% 4 4
Moldova MD 100,00% 4 4
NEAR D 05 100,00% 3 3
Turkey TR 100,00% 2 2
Belarus BY 50,00% 2 4
NEAR B 03 100,00% 1 1
NEAR C 01 100,00% 1 1
% contracted of the Annual Audit Plan (year N-1)
DG NEAR_aar_2016_annexes_final Page 159 of 224
KPI 23 - % contracted of the Annual Audit Plan (year N-2)
At DG NEAR level, 100.00% of the audits foreseen in the Annual Audit Plan year N-1
have been contracted. This is above the benchmark of 95% and higher than the 82.90%
of 2015.
All directorates are above the benchmark.
Action grants, Services, Programme estimates and Budget support represent the highest
number of audits planned and contracted.
KPI 24 – Ineligible amounts identified by audits as a % of the audited amount
At DG NEAR level, 1.83% or EUR 8 million of audited expenditure was found to be
ineligible which is higher than the 1.80% or EUR 9 million of 2015 but still below
benchmark of at least 2%.
Distribution of KPI24 between the Delegations/HQ Units is presented in below table,
ranked descending by ineligible amount identified:
100.00%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI Value 100,00% 100,00% 100,00% 100,00% 100,00% 100.00%
Number of audits in audit plan N-2 4 78 52 69 5 208
Number of audits contracted 4 78 52 69 5 208
1.83%▲
NE
AR
A
NE
AR
B
NE
AR
C
NE
AR
D
SG
UA
NE
AR
R
Total
KPI Value 5,67% 1,14% 4,90% 2,14% 1,60% 1.83%
Ineligible expenditure (in M€) 0,3 3,5 2,6 1,4 0,2 8,0
Audited expenditure (in M€) 5,9 302,5 54,0 64,3 10,4 437,1
DG NEAR_aar_2016_annexes_final Page 160 of 224
87% of the total ineligible amounts were identified by risk assessment based audits
which represent around 50% of the number of audit reports registered in 2016.
The main reasons for not meeting the target are:
For West Bank and Gaza Strip the audited amount includes the yearly mandatory
audit of the PEGASE DFS (PDFS) mechanism processed in 2015, which accounts
for EUR 178 million in the denominator of KPI. The management of PEGASE
payments follows established rules and procedures and the amounts in question
Delegation/HQ Unit (M€) KPIIneligible
amount
Audited
amount
NEAR C 02 10,29% 2,2 21,4
West Bank and Gaza Strip PS 0,78% 1,9 239,1
Tunisia TN 4,78% 0,7 15,4
Bosnia & Herzegovina BA 3,70% 0,6 17,0
European Union Office in Kosovo XK 2,34% 0,6 23,9
Egypt EG 3,27% 0,5 14,7
NEAR A 01 9,00% 0,3 3,5
Georgia GE 2,92% 0,2 7,7
Belarus BY 2,75% 0,2 7,3
Ukraine UA 1,60% 0,2 10,4
Algeria DZ 1,23% 0,2 13,2
Jordan JO 1,52% 0,1 9,3
Albania AL 0,62% 0,1 11,9
NEAR B 02 0,95% 0,0 5,2
The former Yugoslav Republic of Macedonia MK 5,98% 0,0 0,7
Montenegro ME 2,15% 0,0 1,4
Serbia RS 0,88% 0,0 2,7
Turkey TR 0,74% 0,0 2,4
Morocco MA 0,95% 0,0 1,7
NEAR D 05 0,20% 0,0 6,6
Armenia AM 0,34% 0,0 3,3
Azerbaijan AZ 0,17% 0,0 2,2
Syria SY 0,00% 0,0 4,0
Moldova MD 0,00% 0,0 12,0
Ineligible amounts identified by audits
DG NEAR_aar_2016_annexes_final Page 161 of 224
are submitted to ex-ante verifications by external auditors who exclude up-front
ineligible amounts.
Verification missions are performed on a limited sample basis and may skew the
global result for the Delegation. (Ukraine)
Ex-ante verification of the payments performed by the Delegation staff was
effective and resulted in failure of external auditors to identify sufficient % of
ineligible amounts to meet the benchmark of the KPI. (Moldova)
DG NEAR_aar_2016_annexes_final Page 162 of 224
B) Results at Delegation level
Out of the 22 EAMR DG NEAR Delegations only Syria did not meet the minimum threshold of 60% of green KPIs at the end of 2016.
During 2016, the EU Delegation to Syria kept following a needs-based holistic (multi-
sector) approach to tackle the resilience needs of the Syrian population in a
comprehensive way. After more than six years of conflict, there is a need to move from
purely humanitarian to more resilience-focused and sustainable actions to better serve
the needs of the Syrians and avoid aid dependency. Due to security concerns the
Delegation has temporarily reduced its activities to a minimum and diplomatic staff in
2016 was still evacuated between Beirut and Brussels.
The extremely high value of KPI 2 is due amounts contracted for two Trust Funds
(Regional Trust Fund MADAD and Emergency Trust Fund for stability and addressing root
causes of irregular migration and displaced persons in Africa) which were not included in the Initial Forecast.
Syria SY
KPI 1 144,61%
KPI 2 879,58%
KPI 3 N/A
KPI 4 8,14
KPI 5 0,00%
KPI 6 21,88%
KPI 7 13,32%
KPI 8 6,38%
KPI 9 0,00%
KPI 10 65,52%
KPI 11 100,00%
KPI 12 66,67%
KPI 13 72,22%
KPI 14 47,62%
KPI 15 56,06%
KPI 16 27,78%
KPI 17 44,44%
KPI 18 28,69%
KPI 19 0,00%
KPI 20 0,01%
KPI 21 40,00%
KPI 22 100,00%
KPI 23 100,00%
KPI 24 0,00%
DG NEAR_aar_2016_annexes_final Page 163 of 224
ANNEX 12: Performance tables
General objective 1:A stronger global actor
IPA II
Impact indicator: GDP per capita (current prices-PPS) as % of EU level in countries that are
candidates or potential candidates for EU accession
Source of the data: Eurostat
ENI
Impact indicator: Ranking to measure political stability and absence of violence in
countries part of the European Neighbourhood Policy
Definition: This indicator measures perceptions of the likelihood that the government will
be destabilized or overthrown by unconstitutional or violent means, including politically-
motivated violence and terrorism. Higher values in percentile rank indicate better
governance ratings.
For Neighbourhood South(NS) Number of countries in a percentile rank above 10
For Neighbourhood East (NE) -Number of countries in a percentile rank above 30
Source of the data: [same source of data as in the SP] Worldwide Governance Indicators
(WGI) project (WB group) http://info.worldbank.org/governance/wgi/index.aspx#home
Baseline
(year)
Interim Milestone
Target
2020
Latest known results
IPA II 2014
32.53% for
WEB (except
Kosovo24)
52% for Turkey
Increase by
2020
Turkey: 52%
The economic convergence process
did not improve in the Western
Balkans, also in relation to modest
growth. It slightly improved in
Turkey, where economic growth
was higher than in the EU average.
The proposed targets seem anyway
out of reach.
ENI – 2014
NEast: 33.89
4 countries
above 30
NSouth: 11.99
5 countries
above 10
2015: 4 countries
above 30
NEast:
Increase
the number
of countries
above 30 to
five
NSouth:
Increase
the number
of countries
above 10
In the last two years there has
been a dramatic decline in GDP in
Ukraine, and a substantial one in
Belarus in 2015
24
No 2014 data available for Kosovo
DG NEAR_aar_2016_annexes_final Page 164 of 224
Specific objective: 1
Increased stability in the Neighbourhood in political, economic, and security
related terms
Related to
spending
program
me ENI
Result indicator: For Neighbourhood countries, development of more tailor-made
partnerships covering core issues of common interests
Definition: The purpose of the reviewed ENP is to build more effective partnerships
between the EU and the neighbourhood; hence having an indicator on the new partnerships
is highly relevant to measure the success of this policy.
Differentiation is the hallmark of the new ENP, recognising that not all partners aspire to EU
rules and standards, and reflecting the wishes of each country concerning the nature and
focus of its partnership with the EU. Therefore the partnerships should be tailor-made.
Core issues proposed for cooperation will notably include economic development for
stabilisation (e.g. economic modernisation, employment, transport, connectivity, energy,
climate action), the security dimension, and migration and mobility.
At the core of the revised ENP, there is also the idea that the ENP and the related
partnerships should reflect EU interests and the interests of our partners.
DG NEAR will contribute to launching work leading to the development of these new
partnerships, working in close cooperation with the EEAS. It will support the development
of partnerships, where relevant with its financial assistance.
Source of data: European Commission (DG NEAR)
Baseline
(year)
Interim Milestone
2017
Target
2020
Latest known results
(situation on
31/12/2016)
Not
applicable
- Complete negotiation on
new association agreements
with Armenia and
Azerbaijan.
- Complete discussions with
interested countries on
more tailor-made
partnerships
-New
association
agreements in
force or
provisionally
applied with
Azerbaijan and
Armenia.
- New priorities
established
The EU and Lebanon
adopted in November 2016
the Partnership Priorities for
the coming four years, as
well as a compact. The
partnership priorities set up
a renewed framework for
political engagement and
enhanced cooperation on
the following areas: security
and countering terrorism,
governance and the rule of
law, fostering growth and
job opportunities, and
migration and mobility.
The EU and Jordan adopted
in December 2016 their
partnership priorities as well
as a compact. Partnership
priorities in EU-Jordan
relations for the coming
years include strengthening
DG NEAR_aar_2016_annexes_final Page 165 of 224
cooperation on regional
stability and security,
including counter-terrorism;
promoting economic
stability, sustainable and
knowledge-based growth,
quality education and job
creation; strengthening
democratic governance, the
rule of law and human
rights.
New EU-Egypt Partnership
Priorities have been
negotiated throughout 2016
in line with the revised ENP
and are expected to be
approved in the first
semester of 2017. A final
agreement was reached in
December 2016
(overcoming major
differences on issues of
human rights and civil
society) that should open
the way towards EU broader
cooperation with Egypt,
including on migration-
related issues, on security
and on regional stability
ISG process led to a joint
EEAS-COM note on the
implementation of the ENP
security chapter (note
presented to PSC)
Algeria and the EU
negotiation of Partnership
Priorities finalised in
December 2016 and are to
be approved at the
Association Council in 2017
Armenia: Negotiations on a
new agreement are
advanced on all issues.
Azerbaijan: The negotiation
mandate was approved by
the Council in November
2016. Negotiations started
in February 2017.
Partnership Priorities (PPs):
Discussions on PPs have
been launched with
DG NEAR_aar_2016_annexes_final Page 166 of 224
Armenia, Azerbaijan and
Belarus.
Result indicator: Deep and Comprehensive Free Trade Agreements (DCFTA) with Morocco
and Tunisia
Definition: Continued participation in EU's awareness raising and negotiation efforts in
relation to DCFTA with Morocco and Tunisia. Ensure implementation of financial assistance
to accompany the DCFTA negotiations
Source of data: European Commission (DG TRADE and NEAR)
Baseline
2015
0
Interim Milestone
2017
Target
2020
Latest known results
Both DFCTA negotiated New DCFTA in force or provisionally applied
The year 2016 was marked
by Morocco's suspension of
all policy dialogue with the
EU. This followed the
European Court of Justice
Judgement of December
2015 annulling the Council
Decision of 8th March 2012
on an EU/Morocco
agreement on the trade of
agricultural products.
Consequently no progress
could be made regarding
DFCTA and no association
committee and sub-
committees could be held.
The Tunisia association
council took place in April
2016 during which the
mutual commitment by the
European Union (EU) and
Tunisia to deepen our
privileged partnership was
confirmed. Several sub-
committees were organised
throughout the year. The
first official round of DCFTA
negotiations took place in
April 2016. Contacts
between DG TRADE/NEAR
and Tunisia on the DCFTA
were maintained: although
no formal negotiation round
took place. ENI funds were
mobilised in an effort to
continue supporting Tunisia
in preparing for DCFTA
negotiations. The Joint EU
Communication on
DG NEAR_aar_2016_annexes_final Page 167 of 224
"Strengthening EU support
for Tunisia" offers additional
flexibilities in order to make
the DCFTA offer more
tailored to Tunisia's needs.
Result indicator: Joint programming: development of joint programmes between the
Commission's financial assistance and that of the Member States
Definition: This indicator looks at the number of joint programmes for financial assistance
implementation which are concluded with EU Member States within the period covered by
the Strategic Plan
Source of data: European Commission (DG NEAR)
Baseline
2014
No joint
programme
s concluded
Interim Milestone
2018
Neighbourhood East : 3
programmes concluded
Neighbourhood South : 5
programmes concluded
(Algeria, Egypt, Lebanon,
Morocco, Palestine)
Target
2020
4 programmes
concluded
5 programmes
concluded
Latest known results
(situation on
31/12/2016)
The Joint Programming
exercise in Libya was
launched in December
2015. MS concluded it was
too early to start full Joint
Programming due to the
lack of a national Libyan
plan and clear counterparts.
An extension of one year of
the programming
documents ending in 2015
(EG, LEB, PAL, TUN) has
been completed in 2016..
Palestine has materialised
the Joint Programming
process in the first-ever
European Joint Strategy in
the Neighbourhood that will
cover 2017-2020
Towards the end of 2016,
productive preliminary
discussions took place with
Algeria on the Single
Support Framework 2018-
2020, revealing large
consensus on the jointly
identified priority axes for
programming of future
cooperation.
The year 2016 was marked
by Morocco's suspension of
all policy dialogue with the
EU. This followed the
European Court of Justice
Judgement of December
2015 annulling the Council
DG NEAR_aar_2016_annexes_final Page 168 of 224
Decision of 8th March 2012
on an EU/Morocco
agreement on the trade of
agricultural products.
In the Eastern
Neighbourhood, the multi
annual programming
process has been launched
for Armenia, Georgia,
Moldova and Belarus for
2017-2020, mirroring
progress on the
development of a new set of
partnership priorities or
revised association
agendas. The joint analyses
were completed.
The multi-annual
programming process
(2018-2020) for Ukraine
started in September 2016
and it is expected to be
finalised by end of 2017.
For more details, see the
policy and main
expenditure outputs
hereafter
Main outputs in 2016:
Policy–related outputs
Description Indicator (e.g. adoption by
the Commission;
completion)
Target date Latest known results
(situation on 31/12/2016)
Roll-out of
the revised
ENP
-Prioritise the
implementation of the
revised ENP and drive it
forward with Commission
Line DGs and EEAS so that
Commission policies and
spending programmes for
Neighbourhood are in line
with the new priorities.
-Contribute to launching
work leading to the
development of tailor-made
partnerships
Throughout
2016
Following the review of the
ENP, Partnership Priorities
have been adopted with
Lebanon and Jordan and
agreed with Egypt, in order
to develop more effective
partnerships.
Negotiations on EU-IL
Partnership Priorities have
not commenced yet. The
current Action Plan was
extended until the end of
2016 with the Prime
Minister expecting that this
period would be used to
DG NEAR_aar_2016_annexes_final Page 169 of 224
develop new Partnership
Priorities.
In Palestine the Action Plan
is valid until 2018, so no PP
have been yet negotiated.
The UE has adopted
Compacts with Jordan and
Lebanon. These compacts
are the framework through
which the mutual
commitments made at the
London Conference on
"Supporting Syria and The
Region" (February 2016) are
translated into actions.
The EU-Jordan Compact
foresees amongst other EU
additional financial support
and simplified rules for
Jordanian exports of a large
number of products from 18
special economic zones
towards the EU for a 10
year duration, provided job
opportunities are given to
Syrian refugees, along with
Jordanians. Under the
compact, Jordan will make it
possible for more Syrian
children to take part in
education and vocational
training. Jordan currently
hosts more than half a
million Syrians.
The EU-Lebanon Compact
foresees EU additional
financial support and
increased assistance in a
number of policy areas.
Lebanon would continue
seeking ways to improve the
regulatory framework in
relation to registration and
residence permits for
refugees. The country
currently hosts at least 1.1
million Syrians. It is the
country hosting the highest
number of displaced persons
DG NEAR_aar_2016_annexes_final Page 170 of 224
and refugees both per
capita and per square
kilometer.
2016 Regional Action
programme for ENI South
(including one individual
measure) is adopted.
Algeria and the EU made
very good progress in the
negotiation of Partnership
Priorities over 2016,
epitomizing Algeria's
eagerness to "reset" its
relation with the EU.
Negotiations on those
Partnership Priorities, which
will serve as a guide for our
bilateral relations in the
years to come, were
finalised in December 2016
and are to be approved at
the Association Council in
2017.
The Joint communication on
"Strengthening EU support
for Tunisia", released on the
29th September 2016
contributed to significantly
step-up our cooperation
with Tunisia. The
Communication provides for
a major financial effort on
the part of the EU with a
substantial increase in the
ENI allocation granted to
Tunisia. It also provides for
the adoption of non-financial
measures in support to
Tunisia's economic recovery
and further stabilisation.
The Communication also
calls for stepping up our
cooperation in the field of
migration and security, in
line with the priorities of the
revised ENP.
New
agreements
with
Contribute to negotiations
on new agreement with
Armenia
Armenia: to be
concluded by
the end of the
In Armenia, negotiations are
advanced on all issues and
close to agreement.
DG NEAR_aar_2016_annexes_final Page 171 of 224
Armenia
and
Azerbaijan
Contribute to exploratory
talks, negotiation mandate
and possible launch of
negotiations on new
agreement with Azerbaijan
year
Azerbaijan:
Throughout
2016
The negotiation mandate for
Azerbaijan was approved by
the Council in November
2016. Negotiations started
in February 2017.
Association
/Cooperatio
n Councils
and
Association
/Cooperatio
n
Committee
s with
Neighbourh
ood
countries
Support implementation of
Association Cooperation
agreements/DCFTA.
Contribute to
Association/Cooperation
Councils and
Association/Cooperation
Committees
Throughout
2016
Association Council for
Jordan took place on 19th
December 2016 to adopt
the Partnership Priorities
and the Compact.
Association Committee took
place on 19th July 2016.
Association Council for
Lebanon took place on 11th
November 2016 to adopt
the Partnership Priorities
and the Compact.
Although no Association
Committee or Council
meetings concerning Israel
were held in 2016, a full
round of Working Group
meetings as well as bilateral
dialogue continued. At
political level there were
visits to Israel by high level
EU officials and at technical
level, regular meetings on
bilateral cooperation took
place, complemented by
technical discussions in the
context of the Twinning and
Taiex instruments.
The EU-Egypt Association
Committee took place in
Cairo on 23 May 2016.
For Algeria, two (ad hoc)
Association Committees,
held in February and
December 2016
respectively, saw excellent
progress on the negotiation
of Partnership Priorities on
the one hand and on the
Evaluation of the
Association Agreement on
the other hand.
DG NEAR_aar_2016_annexes_final Page 172 of 224
Joint
Communica
tion to the
European
Parliament
and the
Council
aiming at
developing
an EU-wide
strategic
framework
for
supporting
Security
Sector
Reform
Co-leading (with DEVCO and
EEAS) the drafting of an
EC/HRVP joint
Communication on Sector
Security Reform, due to be
released mid-2016
Agenda planning ref:
2016/EEAS+/001
Mid-2016
Cooperation and
coordination with Tunisia on
security sector reform have
set an example for other
countries in the area. DG
NEAR B has contributed to
the drafting of the
communication.
DG NEAR C contributed to
the drafting of the EC/HRVP
joint communication on
Security Sector Reform. It
has also started to further
streamline support in the
security sector, in particular
in Georgia, Ukraine and
Moldova. The Joint
Communication was
adopted in July 2016.
Main expenditure outputs
Description Indicator Target date Latest known results
(situation on 31/12/2016)
Multiannual
programmi
ng process
and joint
programmi
ng (2017–
2020)
Multiannual (2017–2020)
programming process with
four or five25 Neighbourhood
south countries is launched
and completed.
Multiannual (2017–2020)
programming process with 5
Neighbourhood East
countries and 1 regional is
launched.
Throughout
2016
An extension of one year of
the programming
documents ending in 2015
(EG, LEB, PAL, TUN) has
been completed in 2016.
The Second Phase of the
ENI programming (2017-
2020) has been launched on
the bases of the New
Partnership priorities
adopted with Egypt,
Lebanon and Jordan.
Outlines of the Single
Support Framework 2017-
20 for EEAS/NEAR political
validation and for the
Strategic Dialogue with the
European Parliament have
been drafted in Lebanon,
Palestine, Egypt and Jordan.
Palestine has materialised
the Joint Programming
process in the first-ever
European Joint Strategy in
25
Depends on a pending decision on the revision or extension of Libya's programming document
DG NEAR_aar_2016_annexes_final Page 173 of 224
the Neighbourhood that will
cover 2017-2020. It is fully
in line with the FAC Council
Conclusions of 12 May 2016
on "Stepping up Joint
Programming" and the
follow-up Note to the
attention of Heads of
Delegation of 13 June 2016
from Mogherini / Mimica /
Hahn encouraging EU
Delegations to "lead by
example". It is also in line
with the EU Global Strategy,
the revised Neighbourhood
Policy and the revised
Consensus on Development.
The European Joint Strategy
was endorsed at local level
by EU/HoMs on 22
December 2016. NEAR B2:
EEAS/NEAR guidance note
(including annexes) for the
ENI South Regional
programming (2018-2020)
is adopted.
Towards the end of 2016,
productive preliminary
discussions took place with
Algeria on the Single
Support Framework 2018-
2020, revealing large
consensus on the jointly
identified priority axes for
programming of future
cooperation.
The year 2016 was marked
by Morocco's suspension of
all policy dialogue with the
EU. This followed the
European Court of Justice
Judgement of December
2015 annulling the Council
Decision of 8th March 2012
on an EU/Morocco
agreement on the trade of
agricultural products.
Consequently no progress
could be made regarding
the setting up of the
DG NEAR_aar_2016_annexes_final Page 174 of 224
priorities for the 2018-2020
programming (SFF 2018-
2020)
A joint EEAS/DG NEAR
mission was organised in
October 2016 Tunisia to
discuss the preparation of
the new 2017-2020 Single
support framework.
In this context, several
meetings were organised
with Member states to
progress on joint
programming.
In the Eastern
Neighbourhood, the multi
annual programming
process has been launched
for Armenia, Georgia,
Moldova and Belarus for
2017-2020, mirroring
progress on the
development of a new set of
partnership
priorities/revised association
agendas. The joint analyses
were completed.
The multi-annual
programming process
(2018-2020) for Ukraine
started in September 2016
and it is expected to be
finalised by end of 2017
ENI Multi-
annual and
Annual
programme
s
2016 ENI country action
programmes adopted
Throughout
2016
Country Annual Action
Programmes have been
adopted according to the
revised ENP for the Middle-
East.
The 2016 Regional Action
programme for ENI South
(including one individual
measure) is adopted.
Algeria: programmes and
projects amounting to a
total of EUR 40 million were
adopted under the ENI
annual programme 2016 in
support to renewable
energy and energy
efficiency, the reform of
public finances and the
DG NEAR_aar_2016_annexes_final Page 175 of 224
implementation of the
Association Agreement.
Programmes amounting to
EUR 150 million overall were
adopted for Morocco under
the ENI annual programme
2016 in support to social
protection reform, migration
policy and civil society.
in 2016, the EU adopted an
action programme for a
total of EUR 213.5 million
for Tunisia. Four
programmes were adopted
in key sectors including
education and research and
innovation, health, local
development and public
administration reform.
Programmes for a total
amount of EUR 10 million
have been adopted under
the ENI annual programme
2016 for Libya in support to
the health sector (supply
chain and health information
system) and governance
(Public Finance Management
and Media).
The 2016 ENI country action
programmes were adopted
between July and
September.
In 2016 three Special
Measures for Ukraine were
adopted: on anti- corruption
(EUR 43.5 million), on public
administration reform (EUR
104 million), on rule of law
(EUR 52.5 million)
Lebanon
and Jordan
'Compacts'
Finalize the Lebanon and
Jordan 'Compacts' following
the London Conference of 4
February 2016, in close
coordination with all
Commission services to
complement ENI support
with other EU funding
sources and initiatives.
Throughout
2016
Lebanon and Jordan
Compacts have been
adopted by the EU/Lebanon
Association Council on 11th
November 2016 and by the
EU/Jordan Association
Council on 19th December
2016.
ENI and
ENPI
implementa
tion/
budgetary
Benchmarks for KPIs on
contract and payment are
met.
December Not all benchmarks for
financial indicators could be
met.
KPI 1 Forecasted payments
DG NEAR_aar_2016_annexes_final Page 176 of 224
execution vs payment execution
Under-execution of
payments on ENI budget
lines is mainly due to EUR
88 million in Budget Support
payments for a number of
countries which were not
executed either because of
the failure of the beneficiary
country to deliver on time
on agreed benchmarks or
results, or because of
unforeseen significant
political events (change of
government, etc.).
An additional important
source of under execution
that amounts to EUR 72
million (approximate figure)
relates to delays by
International Financing
Institutions (including EIB)
in finalising the contracting
in the framework of
Neighbourhood Investment
Facility (NIF).
Moreover, during the
forecast exercise, an
amount of EUR 60 million
had been factored in for a
Trust Fund payment.
However, it was finally
decided not to proceed with
this payment in view of the
fact that amounts on the
relevant accounts generate
negative interest and should
therefore be kept to a
minimum.
KPI 2: Forecasted contracts
vs signed contracts
Overall at Directorate level
including both Headquarters
and Delegations, the KPI
benchmark falls within an
acceptable value of 90 %.
Apparent under execution in
Headquarters and over
execution in Delegations can
DG NEAR_aar_2016_annexes_final Page 177 of 224
be explained by the fact
that Delegations cannot
forecast correctly contracts
which are allocated to them
from regional calls for
proposals managed in NEAR
headquarters and thematic
calls for proposals managed
in DEVCO headquarters.
Further, NIF contracts are
negotiated in NEAR
headquarters and
transferred to Delegations
after contract signature and
making of an advance
payment.
KPI 4: RAL absorption
period
Directorate overall KPI is
only very slightly above the
benchmark (4.2 vs below
4), understandable given
the increased funding
allocated to the region.
KPI 7 Reduction of Old Pre-
financing
Directorate KPI exceeding
the benchmark is
understandable given the
increased funding allocated
to the region. Further, pre-
financing to IFIs tends to
remain open for long
periods, as pointed out for
example in EAMR of
Delegation to Tunisia.
KPI 8: Expired Contracts as
a % of the contract portfolio
Directorate overall KPI is
only very slightly above the
benchmark (16 vs 15 %).
KPI 9: Reduction of Old RAL
Directorate overall KPI is
above the benchmark,
understandable given the
increased funding allocated
to the region. Further, pre-
financing to IFIs tends to
DG NEAR_aar_2016_annexes_final Page 178 of 224
remain open for long
periods, mainly due to the
reporting system and the
long duration of these
projects.
KPI 10: Payments paid
within the EC internal target
of 30 days
Directorate overall KPI is
above the benchmark. This
can be partially explained by
payments made in
decentralised management
where more attention to
following payment time
limits has to be made.
Further, encoding of budget
support invoices and related
payment requests (which
tend to remain pending for a
long time in the accounting
system) has an effect.
Directorate B has been
consulted by Directorate A
on guidelines on budget
support and in this context
also updated guidance on
encoding is envisaged,
namely to first encode only
the invoice, and to encode
payment request only after
approval of payment by
Director. Once adopted this
should improve average of
payment delays.
Technical
Assistance
and
Information
Exchange
instrument
- TAIEX
TAIEX events contributing to
the implementation of
AA/DCFTA and to current or
future agreements implying
approximation with EU laws
and norms (East and South)
Throughout
2016
Throughout 2016, 258
TAIEX events contributing to
the implementation of
AA/DCFTA and to current or
future agreements implying
approximation with EU laws
and norms were organised.
Specific objective: 2
Strengthened Eastern Partnership; support regional cooperation between
southern neighbours, including through the Union for the Mediterranean;
promote cross border cooperation between member states and partner
countries
Related to
spending
programm
es
ENI/ENPI
DG NEAR_aar_2016_annexes_final Page 179 of 224
Result indicator: Number of ministerial, platform and panel meetings under the Eastern
Partnership.
Definition: DG NEAR, in coordination with the EEAS and the line DGs, is supporting policy
dialogue in the Eastern Partnership countries at different levels (ministerials, platforms,
panels), in view of enhancing relations with partner countries and developing our sectorial
reforms and cooperation. This process is expected to become more focused and results-
oriented ensuring closer links between policy priorities and financial support within the
spirit of the four priority areas agreed at the Riga Summit (May 2015) and on the basis of
the ENP Review Communication, which promotes partnership, ownership and
differentiation. DG NEAR provides funding for the organisation of policy dialogue events
through the dedicated Facility.
Source of data: Events facility contract managed by NEAR
Baseline
2014
Interim Milestone
2016
Target
2020
Latest known results
2016
Between
70 and 80
policy
dialogue
events
were
organised
80 policy dialogue events
organised
This target is
based on the
2014-2015
Management
Plans.
90 policy
dialogue
events
organised.
101 policy dialogue events
organised.
Result indicator: Progress on Eastern Partnership priorities
Definition: The main four priority areas of the EaP were defined at the Riga summit in
2015. Progress can be monitored in the sectoral policy platforms and other relevant
activities/events. DG NEAR mainly supports the different processes through policy
coordination and financial assistance
Source of data: DG NEAR, European Council and outcomes from platforms and ministerial
sectoral meetings, implementation of relevant assistance projects.
Baseline
2015
Interim Milestone
2016
Target
2020
Latest known results
2016
Establish
ment of
the main
priority
areas at
the Riga
Summit in
2015
1.strength
ening
institution
s and
good
governanc
e
Strategic progress mainly in
the areas of:
Interconnections:
Approval of the extension
of the core TEN-T network
at ministerial level.
Endorsement of the single
project pipeline by the
EaP countries, IFIs and
the EU.
Market opportunities:
Development of the three
DCFTAs (i.e. Ukraine,
To achieve
the 20 key
deliverables
(20 for
2020) as set
in the Joint
SWD
(2016)467.
Interconnections: The
extension of the core TEN-T
network to Neighbourhood East
was agreed among all partners
and a delegated act was
submitted to European
Parliament. Work on the single
project pipeline is under way.
Market opportunities: The
DCFTA Initiative East Facility,
with the EIB, was signed in
December. The DCFTA Facility
Phase I, managed by the
DG NEAR_aar_2016_annexes_final Page 180 of 224
2.increasi
ng
mobility
and
people to
people
contacts;
3.market
opportunit
ies;
4.intercon
nections.)
Georgia, Moldova) and
assistance provided
EBRD, had committed almost
the full allocation
(predominantly in Moldova and
Georgia) by the end of 2016.
Result indicator: Increased credibility of the Union for the Mediterranean through a high
number of ministerial meetings establishing regional sector priorities and through the
engagement of regional cooperation, finance and planning ministers via the holding of UFM
ministerial conferences on regional cooperation and planning
Definition: DG NEAR, in coordination with the EEAS and the line DGs, is supporting policy
dialogue in the Southern Neighbourhood countries at different levels (ministerials,
platforms etc.), in view of enhancing relations with partner countries and developing our
sectorial reforms and cooperation. It also provides funding for the organisation of policy
dialogue events through its projects and a dedicated facility.
The Ministerial meetings are organised under the Union for the Mediterranean (UfM). A
dynamic regional dialogue could be expected to generate ministerial meetings in a given
sector about every 2 to 3 years.
This indicator is relevant to measure the results of DG NEAR's under this specific objective
as the Southern Neighbourhood as such remains one of the least integrated in the world,
hence organising regional cooperation meetings can prove already challenging. Indeed, the
overall political climate in this region remains tense, affecting the possibilities for regional
cooperation.
Whilst in recent years there has been progress on specific regional agenda-setting, there is
also a need to ensure cross-cutting political and financial support to these agendas. This
can be achieved with a closer involvement of ministers in charge of international
cooperation/national budgets etc.
Source of data:. Near B2 and events facility contract managed by NEAR
Baseline
2015
Interim Milestone26
2016
Target
2020
Latest known results
2016
Three
ministerial
s
establishi
ng
regional
sector
priorities
Three ministerials foreseen
in 2016 establishing regional
sector priorities
Three
ministerials
per year (15
in total)
Three UfM ministerial meetings
organised with the EC support
in the field of cooperation and
planning; energy; labour and
employment took place in
2016.
Ministries UFM Ministerial on Regional A regular UfM Ministerial Declaration on
DG NEAR_aar_2016_annexes_final Page 181 of 224
of
Finance,
Planning
and
Internatio
nal
Cooperati
on
relatively
un-
engaged
in
regional
cooperati
on.
No
cooperati
on
ministerial
ever held
Cooperation and Planning
successfully organised
process of
coordination
around
financing of
regional
integration is
operational
Cooperation and Planning
adopted in June.
Result indicator: Progress on specific regional objectives defined in ministerial
declarations under the Union for the Mediterranean
Definition: Each Ministerial meeting indicates specific regional cooperation and integration
objectives, and progress is monitored in the various sectoral policy platforms put in place
to enable discussions on issues and progress. Progress is dependent on many stakeholders'
actions, and is not fully under control of DG NEAR directly. DG NEAR supports the
developments measured by this indicator through its policy coordination role and its
financial assistance (in particular regional projects)
Source of data: UFM Secretariat, line DGs and EU agencies, UN, and NEAR B2
Baseline
2014
Interim Milestone
Target
2020
Latest known results
2016
N.A. Tangible
progress in
the key
elements for
regional
integration
and
cooperation
identified in
the Ministerial
Declarations,
such as:
- Regional
transport
network
identified
- Progress in
depolluting
Mediterranean
Technical work on the
identification of the RTA
finalised.
DG NEAR_aar_2016_annexes_final Page 182 of 224
- Electricity
connections
between
countries
enhanced
Result indicator: Number of Financing Agreements signed with partner countries under
the new ENI CBC programmes
Definition: The signature of the Financing Agreement (FAs) between the Commission and
partner countries in the new ENI-CBC programmes, allows for the implementation of the
ENI-CBC programmes adopted by the Commission.
16 ENI-CBC programmes were included in the ENI-CBC programming documents. An
additional programme was included (Baltic Sea) but its implementation is part of DG
REGIO's portfolio. The total EU's financial contribution amounts to approximately EUR 1
billion.
Out of the above 16 programmes, only 13 were adopted by the Commission in 2015. Due
to political reasons, two programmes (PL-RU and LT-RU) were not submitted to the
Commission for adoption in 2015, and the other programme (Mid-Atlantic), although
submitted, has not been adopted by the Commission yet.
23 FAs needs to be signed in 2016 to implement the 13 ENI-CBC adopted programmes. If
some of the remaining 3 programmes were adopted by the Commission in 2016 then
additional FAs would be signed in 2016/2017.
Source of data: DG Near as responsible DG for the ENI-CBC programmes
Baseline
2015
Interim Milestone
Target
2016
Latest known results
2016
0 n/a 23 FAs signed
between the
Commission &
participating
countries
which
correspond to
the 13 ENI-
CBC
programmes
adopted by
the
Commission
If some of the
3 remaining
ENI-CBC
programmes
were adopted,
then
additional FAs
would be
signed in
2016/2017
Out of the 23 Financing
Agreements, 17 were signed
by the end of 2016. The
implementation of the 13 ENI-
CBC programmes adopted in
2015 was secured. The two
remaining joint operational
programmes (Poland – Russia
and Lithuania – Russia) were
adopted. The 6 Financing
Agreements for sea basin
programmes will be signed in
2017.
Main outputs in 2016:
Policy–related outputs
DG NEAR_aar_2016_annexes_final Page 183 of 224
Description Indicator (e.g.
adoption by the
Commission;
completion)
Target date Latest known
results
(situation on
31/12/2016)
Eastern Partnership
Follow closely and
provide support to
Eastern Partnership
in view of
strengthening
synergies with
bilateral co-operation
and national
strategies
Throughout 2016 The "20
Deliverables for
2020" (Staff
Working Document
2016/467) were
adopted – a set of
twenty concrete
deliverables across
the four Riga
priorities, to be
achieved by 2020 in
the Eastern
Neighbourhood. The
realignment of
multilateral and
bilateral actions
along the four Riga
priorities began
with the new Single
Support
Frameworks 2017-
2020 for Armenia,
Georgia, Moldova
and Belarus.
Union for the
Mediterranean (UfM)
Support the UfM
sector policy dialogue
with partner
countries. Provide
institutional support
to the UfM.
Qualitative
assessment of
commitments made
in declarations
adopted at the
Ministerial Meetings
of the Union for the
Mediterranean and
qualitative
assessment of
progress reports
presented at these
meetings.
Throughout 2016
Support to the
participation of
partner countries to
UfM ministerial (or
ad-hoc SOM)
meetings in 2016 in
the field of digital
economy,
cooperation and
planning,
employment and
labour, energy,
sustainable urban
development.
Operating grant for
the functioning of
the UfM Secretariat
in 2016 awarded.
Qualitative
assessment of the
2016 UfM Work
Plan.
Main expenditure outputs
Description Indicator Target date Latest known
results
(situation on
31/12/2016)
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2016 ENI Multi-
country Programmes
2016 Programs
adopted by the
Commission
Throughout 2016
All Programs
adopted for
Neigbourhood East.
CBC Sign Financing
Agreements between
the European
Commission and
Partner Countries
participating in 13
ENI CBC Programs
adopted in 2015,
covering the period
2014-2020, worth 1
billion EUR.
Throughout 2016
2016 Regional
Action Program
(including one
individual measure)
for ENI South
adopted.
The implementation
of the 13 ENI-CBC
programs adopted
in 2015 was
secured. Out of the
23 Financing
agreements 17
were signed by the
end of 2016. The
two remaining joint
operational
programs (Poland –
Russia and
Lithuania – Russia)
were adopted. The
6 Financing
Agreements for sea
basin programs will
be signed in 2017.
Specific objective: 3
The enlargement countries are more ready to join the EU, in
particular as regards the fundamental areas of rule of law, public
administration reform and economic development, reaping benefits
of closer integration with the EU before accession and ensuring
continued progress in the accession negotiations where relevant.
Related to
spending
programme IPA
Result indicator: Readiness indicators on fundamental areas of political criteria (Areas:
Judiciary, Fighting organised crime, Freedom of expression, Fight against corruption, Public
administration reform).
Definition: These indicators aim at showing where the seven enlargement countries stand
in terms of their preparations for meeting key areas of the political accession criteria,
namely the functioning of the judiciary, fight against corruption, fight against organised
crime, freedom of expression and Public administration reform.
In each of these areas, the state of play (i.e. the readiness) is assessed according to the
following five-tier standard assessment scale: Early stage – Some level of preparation -
Moderately prepared - Good level of preparation – Well Advanced
These indicators have been introduced in the enlargement country reports of 2015. For
further details, please see the Communication on the EU Enlargement Strategy27.
These result indicators are particularly relevant for DG NEAR since they show the results of
27
COM (2016) 715 final, 09.11.2016
DG NEAR_aar_2016_annexes_final Page 185 of 224
its enlargement policy and financial assistance as regards two main fundamentals of the
enlargement strategy (i.e. The rule of law and fundamental rights and public administration
reform). DG NEAR role is to support the enlargement countries to address the core issues
measured by these indicators. These indicators provide also greater transparency in the
enlargement process and should facilitate greater scrutiny of reforms by all stakeholders..
Source of data: Annual enlargement country reports – European Commission
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
Five cases of
early stage of
preparation in
these areas
Reduced number of
cases of early stage of
preparation in these
areas
A majority of
countries are
moderately
prepared in these
areas28
Number of cases of early
preparation reduced to four.
Result indicator: Readiness indicators on fundamental areas of Economic criteria (i.e.
functioning market economy and competitiveness in the EU)
Definition: These indicators aim at showing where the seven enlargement countries stand
in terms of their preparations for meeting key areas of the two economic accession criteria,
namely the existence of a functioning market economy and the capacity to cope with
competitive pressures and market forces within the Union.
In each of these areas, the state of play, the state of play (i.e. the readiness) is assessed
according to the following five-tier standard assessment scale: Early stage – Some level of
preparation - Moderately prepared - Good level of preparation – Well Advanced.
These indicators have been introduced in the enlargement country reports of 2015. For
further details, please see the Communication on the EU Enlargement Strategy29.
These result indicators are particularly relevant for DG NEAR since they show the results of
its enlargement policy and financial assistance as regards one main fundamental of the
enlargement strategy (i.e. economic criteria). DG NEAR role is to support the enlargement
countries to address the core issues measured by these indicators. These indicators provide
also greater transparency in the enlargement process and should facilitate greater scrutiny
of reforms by all stakeholders.
Source of data: Annual enlargement country reports – European Commission
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
Four cases of
early stage of
preparation in
Reduced number of
cases of early stage of
preparation in these
A majority of
countries reach a
good level of
Four cases of early
preparation in this area.
For the first economic
28
Assuming that there will not be any backsliding on these areas, the target implies that by 2020 at least 3 more countries become moderately prepared on the functioning of the judiciary; at least four more countries become moderately prepared on the fight against corruption; at least four more countries become moderately prepared on the fight against organised crime; at least four more countries become moderately prepared on freedom of expression. As for the public administration reform area, a majority of countries are moderately prepared in this area already in 2015.
29 COM (2016) 715 final, 09.11.2016
DG NEAR_aar_2016_annexes_final Page 186 of 224
these areas areas
preparation in
these areas30
criterion, four countries
made some progress in
2015/2016, while one
country made no progress
(fYRoM) and one country
good progress (Serbia). For
the second economic
criterion, four countries
made some progress, while
one country made no
progress (Kosovo) and one
country made limited
progress (BiH).
For the first economic
criterion, there was
backsliding in Turkey in
2015/2016, while for the
second economic criterion,
Turkey made some
progress.
Result indicator: Degree of readiness and alignment to the acquis as reflected in the
country reports
Definition: These indicators aim at showing where the seven enlargement countries stand
in terms of their preparations for fulfilling the obligations stemming from the membership,
including the alignment to the acquis.
In each of the acquis chapters31, the state of play (i.e. the readiness) is assessed according
to the following five-tier standard assessment scale: Early stage – Some level of
preparation - Moderately prepared - Good level of preparation – Well Advanced
For further details, please see the Communication on the EU Enlargement Strategy32.
These result indicators are particularly relevant for DG NEAR since they show the results of
its enlargement policy and financial assistance as regards the third accession criteria33. DG
NEAR role is to support the enlargement countries to address the issues measured by these
indicators. These indicators provide also greater transparency in the enlargement process
and should facilitate greater scrutiny of reforms by all stakeholders.
Source of data: Annual enlargement country reports – European Commission
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
51 cases of
early stage of
Reduced number of
cases of early stage
A majority of
countries are
Thirty-seven cases of early
preparation in this area.
30
Assuming that there will not be any backsliding on these areas, the target implies that by 2020 at least two more countries reach a good level of preparation on the functioning market economy; at least three more countries reach a good level of preparation on the capacity to cope with competitive pressures and market forces within the Union. 31
BiH and Kosovo are assessed according to the European Standards, not the chapter structure.
32 COM (2016) 715 final, 09.11.2016
33 This criteria is about the administrative and institutional capacity to effectively implement the acquis and
ability to take on the obligations of membership.
DG NEAR_aar_2016_annexes_final Page 187 of 224
preparation in
the 35
chapters34.
of preparation in
these areas
moderately
prepared in these
areas.
Result indicator: Public Administration Reform (PAR) strategy framework, which is in line
with the Principles of Public Administration
Definition: This indicator aims at showing the progress of the seven enlargement
countries with the preparation, adoption and implementation of a strategic framework on
PAR, addressing the following core areas of PAR: Policy development and coordination,
Public service and human resources management; Accountability of Administration and
Service delivery. These core areas are in line with the new approach on PAR, as advocated
since the 2014-15 enlargement strategy and further defined by the Principles of Public.
Source of data: National authorities in the Enlargement countries leading Public
Administration Reforms
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
3 countries 5 countries are
implementing a PAR
strategy framework in
line with the
Principles of Public
Administration
7 countries are
implementing a
PAR strategy
framework
4 countries (Albania,
Montenegro, Serbia and
Kosovo) are implementing a
PAR strategy in line with the
Principles of Public
Administration
In Albania, PAR Strategy is
in place since 2015 in line
with the Principles. The 6th
meeting of PAR Special
Group took place on 8
March 2016.
In Bosnia and Herzegovina,
PAR strategic framework is
under development.
Kosovo: PAR strategic
package adopted in 2015.
Both strategies have been
revised at the end of 2016.
Latest PAR Special Group
was held on 2 December
2016.
Montenegro adopted Public
Administration Reform
Strategy 2016-2020. PAR
Special Group was held on
16 June 2016.
Serbia is implementing a
PAR Strategy. The 3rd EU-
Serbia PAR Special Group
was held on 10 March 2016.
The former Yugoslav
34
BiH and Kosovo are assessed according to the European Standards, not the chapter structure.
DG NEAR_aar_2016_annexes_final Page 188 of 224
Republic of Macedonia: PAR
Strategy for 2017-2022 is
under preparation and
should be finalised in the
first half of 2017.
PAR Special Group meets
once a year, however the
latest scheduled PAR SG on
31 May 2016 was cancelled
and PAR discussed at the SA
Committee on 15 June
2016.
Result indicator: Public Financial Management (PFM) reform programmes
Definition: This indicator aims at showing the progress of the seven enlargement
countries with the preparation, adoption and implementation of credible and relevant PFM
reform programmes.
The 2013-14 and 2014-15 enlargement strategies have gradually introduced a new policy
on Public Financial Management (PFM) in the enlargement countries. Improved public
financial management, including revenue administration and collection are of fundamental
importance for the functioning of the state and for implementing the reforms needed for EU
integration. Countries have been invited to prepare "credible and relevant" PFM reform
programmes/strategies
Both the enlargement strategy and the budget support guidelines highlight that an
acceptable PFM reform programme is both relevant and credible. Relevance means how key
constraints and weaknesses identified in different assessments (e.g. PEFA, SIGMA baseline
assessment, IMF Tax Administration Diagnostic Assessment Tool TADAT) are addressed in
the PFM strategy/programme. Credibility refers to the quality of the reform process in
terms of its 'realism', appropriate sequencing and prioritisation of actions, institutional
arrangements, allocation of resources, implementation track record and political
commitment to the reforms..
Source of data: Ministries of Finance in the Enlargement countries
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
Only 1 country
implements a
credible and
relevant PFM
reform
programmes
5 countries are
implementing credible
and relevant PFM
reform programmes
All 7 countries are
implementing
credible and
relevant PFM
reform
programmes by
2020
4 countries (Albania,
Serbia, Montenegro and
Kosovo) are implementing
credible and relevant PFM
reform programmes.
PFM strategy in Albania
implemented since
December 2014, country-led
PFM policy dialogue is
established and ongoing.
In Bosnia and
Herzegovina, country-wide
PFM strategy is under
development. No policy
dialogue is in place yet.
In June 2016 Kosovo
adopted the 2016-2020
DG NEAR_aar_2016_annexes_final Page 189 of 224
public financial management
reform strategy. PFM policy
dialogue meeting took place
on 1 June 2016.
Montenegro has adopted a
credible and relevant PFM
reform programme 2016-
2020 in December 2015. Its
implementation has started
in January 2016.
Serbia is implementing a
credible and relevant PFM
reform programme, adopted
in December 2015
The former Yugoslav
republic of Macedonia: PFM
reform programme is still
under preparation.
Planned evaluations:
A key source for assessing the achievement of this specific objective and the related
indicators is the annual Enlargement Package. Planned or already launched strategic
evaluations in 2016 somewhat related to this objective are the following:
At programme/strategic level:
Mid-term review of IPA assistance, 2017 – IPA II;
Interim evaluation of IPA assistance, 2017 – ENI;
Ex-post evaluation of IPA I 2007-2013, 2021 – IPA I;
Ex-post evaluation of IPA II, 2018 – IPA II.
At thematic level,
Economic governance, 2016 - thematic;
Competitiveness, 2016 - thematic;
Social protection, 2016 - thematic;
Public administration reform, 2016 - thematic;
Security, 2016 - thematic;;
Rule of Law, 2018 - thematic;
Education and vocational training, 2019 – thematic;
Migration and border management, 2019 – thematic;
Transport, 2019 – thematic;
Public Financial Management, 2020 – thematic;
Energy, 2019 – thematic 2019;
Environment and Climate action, 2019 – thematic.
None of these evaluations has been completed in 2016.
Main outputs in 2016:
Policy–related outputs
Description Indicator Target date Latest known
results
(situation on
31/12/2016)
DG NEAR_aar_2016_annexes_final Page 190 of 224
2016 enlargement
package
(communication and
country reports) and
contribution to council
conclusions.
- Ensure its adoption
including applying
the 2015 pilot
methodology to a
number of additional
areas, ensuring
support and buy-in
from all
stakeholders.
Agenda planning
reference:
2015/NEAR/008
- Work with
Presidency, Member
States and other DG
units on subsequent
General Affairs
Council Conclusions.
November 2016 for
adoption
End 2016 for
conclusions
Communication on
the EU
enlargement Policy
adopted by the
college on 9
November 2016.
DG NEAR expanded
the recalibrated
reporting
methodology to
chapters 1, 8, 14,
15 areas of 24 not
yet covered, as
well as 27. GAC on
13 December 2016
did not adopt
Council
conclusions;
instead; SK
Presidency issued
conclusions.
Accession negotiations Ongoing work with
negotiating countries
(Montenegro, Serbia
and Turkey) to
progress on
accession
negotiations. This
includes preparing
screening reports,
opening and closing
Benchmark Reports
(several per year, as
necessary), and Draft
Commission Positions
(DCP) (several per
year, as necessary)
Turkey: Updated
screening reports on
Chapter 15, 23, 24
and updated DCP for
Chapter 26
Serbia: complete all
screening reports
Montenegro: Draft
and present Opening
Benchmark (OBM)
Reports to COELA on
chapters where MNE
has fulfilled the
OBMs35 - several per
year, as necessary
For the other
negotiating
documents, several
per year, as
necessary.
Screening reports
for Chapters 15
and 31 were
updated and
submitted to
Council, together
with an updated
DCP for Chapter
26; A DCP was
prepared for
Chapter 33 which
was opened on 30
June; for 23/24:
awaiting
finalisation.
Montenegro
opened four
chapters in 2016
(11, 12, 13 and
19).
Serbia: All
screening reports
have been
presented to the
35
In cases where the fulfilment is ensured in time to allow this process to be completed within the timeframe
DG NEAR_aar_2016_annexes_final Page 191 of 224
Council.
Five DCPs were
presented to the
Council (chapters
5, 23, 24, 25, 26).
2 opening
benchmark
assessment reports
for chapter 23 and
24 were adopted
by the Council.
Four chapters were
opened in 2016 (5,
23, 24, 25).
Turkey Customs Union
Complete
preparations for
negotiations of
modernised Customs
Union. Prepare in
close association with
DG TRADE the
Impact assessment
study and the Draft
mandate
Agenda planning
reference:
2015/TRADE+/035
Indicator:
Impact assessment
study Q3 2016
Draft mandate,
Q4.2016
Impact assessment
and draft mandate
adopted by College
on 21/12/2016 and
submitted to
Council.
Kosovo36 –Serbia Support the Pristina-
Belgrade dialogue
process
Throughout 2016
Technical dialogue
taking place on a
regular basis.
Limited progress
due to the electoral
process in Serbia
and the domestic
situation in Kosovo.
Momentum
regained in August
2016
DG NEAR provided
support to the
EEAS throughout
2016, leading to a
significant
36
The designation of Kosovo is without prejudice to positions on status, and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
DG NEAR_aar_2016_annexes_final Page 192 of 224
breakthrough on
the telecoms
Dialogue.
Economic Reform
Programmes (ERP) for
the enlargement
countries
Coordination of the
2016 ERP exercise
for the enlargement
countries and
preparation of new
guidance note for the
2017 ERP exercise.
2016 assessments
and draft council
conclusions adopted
according to
schedule fixed in
2015. Adoption and
circulation of
guidance note to
partners before 1
July 2016
Commission
assessments
adopted on time
for discussion in
the Council working
group. ERP
guidance note
adopted on 30 May
2016.
In 2016, the
Turkish authorities
only sent the ERP
to the EC in March
(i.e. after the
deadline of 31
January). EC
assessment and
draft council
conclusions were
adopted according
to schedule. By 31
December, Turkish
preparations for
the 2017 ERP were
more advanced.
Monitoring the
Stabilisation and
association
agreements (SAA)
with Western Balkans
(WB) countries
SAA Council,
Committee, and sub-
committee meetings
taking place with
western Balkans
countries. DG NEAR
prepares,
participates in and
reports on these
meetings
All WB countries (for
Kosovo as from
entry into force of
SAA in April or May
2016 ):
SA Council (annual)
SA Committee
(annual) Sub-
committees (7/Yr)
For Kosovo: Until the
SAA enters into
force, continuation of
Meetings of the
Stabilisation and
Association Process
Dialogue (SAPD)
Adequate and
timely assessments
of Albania, Bosnia
and Herzegovina,
Kosovo,
Montenegro, Serbia
and the former
Yugoslav Republic
of Macedonia
Economic Reform
Programmes
provided according
to schedule.
Council conclusions
adopted on 25 May
2016.
For Albania the SA
Council took place
on 8 September
2016. 7th SA
Committee on 9
DG NEAR_aar_2016_annexes_final Page 193 of 224
June 2016. Seven
sub-committees
were organized in
2016.
Concerning Bosnia
and Herzegovina,
the 1st SA Council
took place on 11
December 2015.
1st SA Committee
was held on 17
December 2015. 5
sub-committees
took place in 2016
as part of 1st cycle
(the remaining 2
scheduled for
2017).
SAA entered into
force in Kosovo on
1 April 2016.
1st SA council held
on 25 November
2016. SA
Committee is
scheduled for
2017. The 2016
cycle of 7 sub-
committees took
place in 2016.
In Montenegro, the
SA Council took
place on 20 June
2016, 6th SA
Committee 19
December 2016, 7
sub-committee
meetings and the
Special group on
PAR in the course
of 2016.
For Serbia, the SA
Committee and
Council took place
in April and
December 2016,
respectively. In
2016, the cycle of
2015-2016 sub-
DG NEAR_aar_2016_annexes_final Page 194 of 224
committees was
completed and the
2016-2017 one
began.
Concerning the
former Yugoslav
Republic of
Macedonia, the SA
Council did not
take place in 2016.
The SA Committee
was held on 15
June 2016.
Seven sub-
committees were
organized in 2016.
Turkey - Joint Action
Plan on Migration and
visa liberalisation
roadmap
Monitor the Joint
Action Plan on
Migration and visa
liberalisation
roadmap
Throughout 2016
Visa reports in March
and September
Until 18 March
2016, EC was
monitoring
implementation of
the Action Plan and
issued a report in
March 2016. As of
18 March 2016, EU
and Turkey are
implementing the
EU-Turkey
Statement which
includes migration,
visa liberalisation,
Facility funding,
Customs Union,
etc. On the
Statement EC has
issued four
progress reports in
2016 in April, June,
September and
December. On Visa
Liberalisation, EC
issued 2 reports in
2016, in March and
May.
Thematic evaluation
on support to
Economic Governance
in enlargement
The evaluation
should serve to
provide advice and
evidence in future EU
assistance on
economic
The evaluation will
be completed end
2016 and will assess
the performance,
good examples and
lessons learned from
The evaluation has
reached the Open
Consultation Stage,
having
necessitated more
time than
DG NEAR_aar_2016_annexes_final Page 195 of 224
governance.
(ongoing through
2016)
Agenda planning
reference:
2016/NEAR/001
the pre-existing
assistance in areas
related to economic
governance in the
enlargement
countries.
expected, also for
the preparation of
the OPC
Thematic evaluation
on social protection
(2007-2013)
The objective of the
evaluation is to
assess the EU
support provided in
external action for
social protection
during the period
2007-2013.
Agenda planning
reference:
2016/NEAR/002
4th quarter 2016 Evaluation still
ongoing. The
integration of non-
NEAR countries has
necessitated more
time and resources
Main expenditure outputs
Description Indicator Target date Latest known
results
(situation on
31/12/2016)
IPA II Multi-annual
and Annual
programmes
2016 IPA II country
action programmes
adopted
Throughout 2016
Serbia has adopted
the IPA II country
action programme
6.12.2016 for an
amount of EUR
166.4 million
2 Action
programmes for
Kosovo* for the
Year 2016 – PART I
and PART II
adopted for a total
amount of EUR
70.5 million
1 Action
programme for the
former Yugoslav
Republic of
Macedonia adopted
in 6 December
2016 for an
amount of EUR
27.7 million
Commission
implementing
Decision of
02/12/2016
adopting a Country
DG NEAR_aar_2016_annexes_final Page 196 of 224
Action Programme
for Montenegro for
the year 2016 was
concluded for an
amount of EUR
22.9 million.
The 2016 IPA
country action
programme for
Bosnia and
Herzegovina was
adopted on 13
December 2016 for
a total amount of
EUR 47 million.
IPA 2016 country
programme for
Albania was
adopted on 13
December 2016 for
a total value of
EUR 64.94 million.
2016 action
programme for
Turkey was
adopted on 13
December 2016.
IPA I and II
implementation and
budgetary execution
The benchmarks for
KPIs on contract and
payment are met
December 2016 Albania:
Payments: KPI
Value: 81.13%
(benchmark
between 90% and
110%)
Contracting: KPI
Value 171.93%
(benchmark
between 90% and
110%)
Bosnia and
Herzegovina:
Payments: KPI
Value: 67.18%
Contracting: KPI
Value 75.15%
Kosovo:
Payments: KPI
Value: 76.01%
Contracting: KPI
Value 65.77%
Montenegro:
Payments: KPI
Value: 68.59%
Contracting: KPI
Value 80.41%
DG NEAR_aar_2016_annexes_final Page 197 of 224
Serbia:
Payments: KPI
Value: 63.2%
Contracting: KPI
Value 42.12%
The former
Yugoslav Republic
of Macedonia:
Payments: KPI
Value: 79.24%
Contracting: KPI
Value 159.38%
Strategy papers for
IPA beneficiary
countries (i.e. these
papers define the
priorities for action to
be financed by IPA II
during 2014-2020).
Launch of the Mid-
term review (for BiH:
extension of country
strategy paper until
2020).
Launch mid 2016 The process was
launched mid-
2016. Expected
adoption in Q3
2017.
Facility for Refugees in
Turkey up and running
Set up the Facility
(governance, rules)
Q1, take strategic
decisions in Steering
Committee from Q1,
actions programmed
Q3 and contracting
started Q4.
Throughout 2016 Five Steering
Committees of the
Facility organised
in 2016- first one
in February 2016.
EUR 2.2 billion out
of the EUR 3 billion
for the years 2016-
2017 have already
been mobilised in
2016.
Technical Assistance
and Information
Exchange instrument -
TAIEX
Continued co-
ordination of the
TAIEX instrument
across the
Commission to assist
enlargement
countries with regard
to the approximation,
application and
enforcement of EU
legislation.
Throughout 2016 Throughout 2016,
714 TAIEX events
were organised for
IPA to assist
enlargement
countries with the
approximation,
application and
enforcement of EU
legislation.
Thematic evaluation
on the support to SME
competitiveness
The evaluation will
assess the
performance, good
examples and
lessons learned from
the past assistance in
the area of SME
competitiveness in
the enlargement and
neighbourhood
3rd quarter 2016 Comments have
been
communicated on
the draft final
report, the
evaluation having
taken longer than
expected.
DG NEAR_aar_2016_annexes_final Page 198 of 224
countries. It should
serve to provide
evidence and advice
in designing future
EU assistance.
Agenda planning
reference:
2016/NEAR/003
Mid-term evaluation of
the Civil Society
Facility (CSF) for the
Western Balkans and
Turkey
The evaluation
should provide advice
for future EU
assistance on the
support to civil
society (Q3-Q4
2016)
The evaluation will
be completed end of
2016 and will assess
the performance,
good examples and
lessons learned from
the on-going
assistance to civil
society and media
through the CSF
The evaluation has
been recently
launched
Specific objective 4: Improved connectivity within the
Western Balkans and with the EU.
Improved good neighbourly relations among Enlargement
countries with a view to overcoming the legacy of the past
Related to
spending
programme IPA
Result indicator: Progress in completing the Core transport network and the Core
transport corridors.
Definition: The EU adopted, in January 2014, a new transport infrastructure policy to put
in place a powerful European transport network across the 28 Member States. These new
guidelines refocus transport financing on a tightly defined new core network, the Trans-
European Transport Core Network (TEN-T core network), which will form the
backbone for transportation in Europe's single market. It will remove bottlenecks, upgrade
infrastructure and streamline cross border transport operations for passengers and
businesses throughout the EU. Within the Western Balkans Six framework, the
European Commission and the six Prime Ministers from the Western Balkans agreed, on 21
April 2015 in Brussels, on indicative extensions of the TEN-T core network in the
Western Balkans region. In Riga, on 22 June 2015, the Western Balkans Six Transport
Ministers confirmed the maps of the comprehensive and core networks extending the TEN-
T network in the Western Balkans. A list of priority projects was agreed at the Vienna
Summit in August 2015.
Source of data: East Europe Transport Observatory (SEETO) Annual Report; Western
Balkans Investment Framework Annual Assessment
Baseline 2015
Interim Milestone
2018
Target
2020
Latest known results
2016
24 priority
projects on the
list agreed in
Vienna
At least 33% priority
projects
approved/under
implementation
75% of 24
priority projects
identified in
Vienna
approved/under
implementation
33.3% of the 24 priority
projects approved and under
implementation
Result indicator: Progress in implementing the Projects of Energy Community Interest.
DG NEAR_aar_2016_annexes_final Page 199 of 224
Definition: The South East Europe Energy Strategy adopted in October 2013 outlines the
key objectives and actions needed to create a regional energy market, as well as the
investment needs for energy efficiency and renewable energy. A list of Projects of Energy
Community Interest (PECIs) was subsequently adopted, identifying in particular the
electricity and gas interconnections as key areas that would contribute to the Western
Balkans economic development and further EU integration
Source of data: Energy Community Annual Report (revision of the PECI list in 2016);
Western Balkans Investment Framework Annual Assessment
Baseline
2015
Interim Milestone
2018
Target
2020
Latest known results
2016
20 electricity
and gas
projects in
2013 PECI list
At least 33% of the 20
relevant PECI project
approved/under
implementation
At least 75% of
the 20 relevant
PECI projects
approved/under
implementation
20% of the 20 relevant PECI
projects approved/under
implementation; 4 projects on
investment grants approved
and under implementation;
In addition 3 technical
assistance projects approved
and under implementation
Result indicator: Progress in implementing the soft measures on energy and transport
Definition: As agreed at the Vienna Summit in August 2015, the Western Balkans
countries have to complement the investments through the implementation of soft
measures aiming to increase the added value of the infrastructure investments. The soft
measures will require limited funding but a strong political commitment. They
include measures such as aligning and simplifying border crossing procedures, railway
reforms, information systems (ITS), road safety and maintenance schemes, unbundling
and third party access, regulator independence, licensing and permitting regimes, customer
switching, etc.
Source of data: Conclusions of Western Balkans Ministerial meetings and Summits
Baseline
2015
Interim Milestone
2016
Target
2020
Latest known results
2016
40 short and
long term
measures for
energy and
transport
agreed in
Vienna
50% of short term
measures in Vienna
list implemented
85% of all 40
soft measures
in Vienna list
implemented
0.9 % of short term measures
in Vienna list implemented.
In July 2016, at the Paris
summit, the 40 short and
long term measures agreed in
Vienna were transformed into
86 measures for transport
and 84 measures for energy,
due to the subdivision of the
initial 40 measures into
individual country measures.
At the end of 2016, 1 of the
transport measures had been
completed. For energy, the
figures are 14 out of 84. The
DG NEAR_aar_2016_annexes_final Page 200 of 224
measures have proven much
more difficult than foreseen to
implement but these absolute
figures hide a large amount of
preparation that has gone
into all the other measures.
Result indicator: European Commission contributes to smooth organisation of Berlin
process summits.
Definition: The European Commission is looking at boosting regional economic
development and connectivity in the Western Balkans as well as to improve good
neighbourly relations between Western Balkans countries. The aim will be to continue
progress achieved to date, notably through the "Berlin process" and the "Western Balkans
Six" format, which brings together heads of state and government from the region and is
strengthening the countries' ownership of regional co-operation.
Source of data: Conclusions of Western Balkans Ministerial meetings
Baseline
2015
Interim Milestone
2016-2018
Target 2020 Latest known results 2016
N/A Connectivity Package
endorsed by summit
At least 2 Western
Balkans Ministerial
meetings organised in
preparation of summit
Connectivity
Package
endorsed by
summit
At least 2
Western
Balkans
Ministerial
meetings
organised in
preparation of
summit
The connectivity package was
endorsed at the Paris summit
on 4 July 2016.
Main outputs in 2016:
Policy–related outputs
Description Indicator (e.g.
adoption by the
Commission;
completion)
Target date Latest known results
(situation on 31/12/2016)
Successful
Western Balkan
Summit in Paris
Prime Ministers
endorse 2016
connectivity package
including confirmation
of progress on the
soft measures on
transport and energy.
Progress in
completing the Core
transport network and
the Core transport
corridors.
Progress in
July 2016 At the Paris summit, Prime
Ministers endorsed 2016
connectivity package
including confirmation of
progress on the reform
measures on transport and
energy. The Energy
Connectivity Reform Measures
were reformed into a Regional
Electricity Market.
Through the package, there
has been significant progress
in completing the Core
DG NEAR_aar_2016_annexes_final Page 201 of 224
implementing the
Projects of Energy
Community Interest.
transport network and the
Core transport corridors. (See
above indicator)
Progress in implementing the
Projects of Energy
Community Interest. (See
above indicator)
Western Balkan
6 Ministerial
meetings
Ministers confirm
progress on the
implementation of
soft measures for
transport and energy
Jan-June 2016 The Meeting of Ministers of
Energy and Transport in
March 2016 confirmed
(limited) progress on the
connectivity reform
measures.
Main expenditure outputs
Description Indicator Target date Latest known results
(situation on 31/12/2016)
2016 IPA II
Multi-country
Programmes
prepared in line
with national
and regional
needs
Programmes adopted
by the Commission
July &
November 2016
Multi-country programmes
adopted in July and December
2016 for a total value of EUR
262 million.
IPA I and II
implementation/
budgetary
execution
Benchmarks for KPIs
on contract and
payment are met.
December 2016 66.47% for KPI 1 (payment
forecast) and for KPI 2
(contracted forecast) 86.43%.
For both the benchmark was
between 90% and 110%.
Technical
Assistance and
Information
Exchange
instrument -
TAIEX
Continued
organisation of TAIEX
regional events to
assist enlargement
countries in improving
and consolidating
good neighbourly
relations through
TAIEX events of
common interest
(energy, transport,
connectivity,
migration, judicial and
police cooperation,
etc.)
Throughout
2016
Throughout 2016, 19 TAIEX
regional events organised to
assist enlargement countries
in improving and
consolidating good
neighbourly relations in the
area of information society,
connectivity and justice and
home affairs.
DG NEAR_aar_2016_annexes_final Page 202 of 224
General objective 2 :
Towards a New Policy on Migration
Specific objective: 5 : Stem the influx of irregular
migrants to the EU by addressing the root causes of
destabilisation, forced displacement and irregular
migration in Enlargement and Neighbourhood
countries.
Promote mobility and mutually beneficial migration.
Related to spending
programmes IPA and
ENI
Result indicator:. Implementation of the Facility for Refugees in Turkey
Definition: The implementation of this facility will be measured by the amount for which
the Steering Committee of the Facility has provided guidance and by the amount
committed.
The Facility for Refugees in Turkey is the answer to the October 2015 European Council's
call for significant additional funding to support refugees in Turkey. The Facility will
provide a joint coordination mechanism for actions financed by the EU budget and national
contributions made by the Member States, designed to ensure that the needs of refugees
and host communities are addressed in a comprehensive and coordinated manner.
To ensure coordination, complementarity and efficiency in the financing, the Steering
Committee of the Facility will provide strategic guidance and decide on which types of
actions will be supported and through which financing instruments. The Steering
Committee will monitor and assess the implementation of the Facility. It will be composed
of representatives of Member States, the Commission and of Turkey, in an advisory
capacity.
The assistance provided under the Turkey Refugee Facility will be conditional on the
compliance by Turkey with the EU-Turkey Joint Action Plan, which aims to bring
order into migratory flows and help to stem irregular migration, and the EU-Turkey
Statement from 29 November 2015.
DG NEAR will be in charge of chairing the Steering Committee, managing its
secretariat; and implementing the actions conducted under IPA. This result indicator
is of high relevance to measure the results of DG NEAR's action on this specific objective
since the Facility will be managed by DG NEAR and because Turkey, by its geographical
position, is a major first reception and transit countries for migrants.
Source of data: Facility monitoring reports
Baseline
2015
Interim Milestone
2016
Target
2017
Latest known results
2016
Not
applicable
EUR 2 billion, on which
Steering Committee has
provided guidance
EUR 3 billion on
which Steering
Committee has
provided guidance.
Corresponding
amounts should be
committed by
31.12.17
EUR 2.2 billion out of the
EUR 3 billion from the
Facility for Refugees in
Turkey for the years 2016-
2017 have been mobilised in
2016. Implementation of 37
projects worth EUR 1.45
billion has effectively started
in 2016 and a total of EUR
748 million disbursed.
Result indicator:. Implementation of the EU Regional Trust Fund in response to the
Syrian Crisis
Definition: The EU Regional Trust Fund in response to the Syrian Crisis (EUTF) will
continue its activities, mainly linked to the contractualisation and delivery of projects
adopted by two Board meetings and identified until end 2015 and the preparation of a new
DG NEAR_aar_2016_annexes_final Page 203 of 224
pipeline of projects, in all the countries affected by the Syrian crisis.
The EUTF was established in December 2014 with the overall objective to provide a
coherent and reinforced aid response to the Syrian crisis on a regional scale,
responding primarily in the first instance to the needs of refugees from Syria in
neighbouring countries, as well as of the communities hosting the refugees and their
administrations, in particular as regards resilience and early recovery.
Following the Commission Communication of 23 September 2015 with proposals on
Managing the refugee crisis, the Commission i.a. proposed a substantial increase of
funding in support of Syrian refugees and their host countries through the Trust Fund,
amounting to more than EUR 500 million in appropriations. It has also received
contributions and pledges from 19 Member States amounting to EUR 60 million.
The Trust Fund is managed by DG NEAR who chairs the TF board and is in charge of
developing actions to be submitted to the board.
Source of data: N/A
Baseline
2015
Interim Milestone
2016
Target 2020 Latest known results
2016
2 Board
meetings held
Actions for EUR
387.5 million
adopted
EUR 17 .5
million
contracted
At least 2 Board
meetings held
At least Actions for
EUR 250 million
adopted
At least EUR 300
million contracted
At least EUR 1
billion mobilised
and implemented
through the Fund
(target from 23
Sept 2015
communication)
The 3° Board meeting was
cancelled due to Brussels
bombing in March 2016 and
substituted with a telephone
conference on April/written
procedure on 11 April.
The 4° Board Meeting was
held on 21st June.
The 5° Board Meeting was
held on 6th December.
Total volume of the Fund at
31 December 2016: EUR
907.80 million (target: EUR
1 billion). Sources: 22 EU
Member States, Turkey and
EU instruments (ENI, IPA,
DCI). The fund is open to
international donors.
Actions worth EUR 377.8
million have been adopted
in 2016
3rd Board (Telephone
Conference/written
procedure):
- EUR 15 million for
Migration Management in
Western Balkans (Serbia,
FYROM)
- EUR 25 million for Higher
Education and TVET (JO, IQ,
LEB and TR)
4th Board
- EUR 70 million for
DG NEAR_aar_2016_annexes_final Page 204 of 224
Education infrastructure
(TR)
- EUR 71 million for
Municipal services (TR)
- EUR 22 million for
Education (TR)
- EUR million 15 for UNWRA
(JO, LEB)
- EUR 21 million for Water
supplies (JO)
5th Board
- EUR 50 million for
Stabilisation (IQ)
- EUR 62 million for Health
(LEB)
- EUR 20 million for WASH
(LEB)
- EUR 5 million for WB/CFF
(JO LEB)
- EUR 1.8 million for M&E of
EUTF
EUR 321 million of the
committed funds have been
contracted in 2016.
Result indicator:. Implementation of the Emergency Trust Fund for stability and
addressing root causes of irregular migration and displaced persons in Africa – North of
Africa Window
Definition: The European Commission has launched an “Emergency Trust Fund for stability
and addressing root causes of irregular migration and displaced persons in Africa”, made
up of EUR 1.8 billion from the EU budget and European Development Fund, combined
with contributions from EU Member States and other donors. The EU Trust Fund for Africa
was signed by the President of the European Commission Jean Claude Juncker, along with
25 EU member states, as well as Norway and Switzerland, and was launched at the Valletta
Summit on Migration on November 12th 2015 by European and African partners
The Trust Fund benefits a coherent group of countries across Africa crossed by the major
migration routes. These countries are part of three regional operational windows: the Sahel
region and Lake Chad area, the Horn of Africa and the North of Africa.
DG NEAR is in charge of managing the North of Africa window, comprised of Morocco,
Algeria, Tunisia, Libya and Egypt.
The North of Africa window will be focused at improving migration management in all its
aspects, including contributing to the development of national and regional strategies on
migration management, containing and preventing irregular migration and fight against
trafficking of human beings, smuggling of migrants and other related crimes, effective
return and readmission, international protection and asylum, legal migration and mobility,
enhancing synergies between migration and development.
The first operational committee of the North of Africa window will take place around mid
2016 to examine a first pipeline of projects. The preparation of projects for 2017 will start
in parallel and it is expected that the following operational committees will be able to
achieve a higher level of commitments.
Source of data: Reports of the operational committee of the North of Africa window
DG NEAR_aar_2016_annexes_final Page 205 of 224
Baseline
2015
Interim Milestone
2016
Target
2020
Latest known results
2016
Launching of
the North of
Africa window
– No
operational
committee +
preparation of
a first pipeline
of projects
Operational
committees of the NA
window approve a
pipeline of EUR 40
million
Projects worth the
totality of ENI +
MS funds pledged
are approved by
the operational
committees.
Target set in 2016 was
reached. Operational
Committee of the NA
window adopted EUR 64,5
million
In April 2016 the EUTF for
Africa adopted three new
migration programmes
totalling EUR 27.5 million to
support the North Africa
region in addressing the
current migration situation.
- EUR 11.5 million for
actions in Egypt, as a first
strategic response to the
migration issues the country
is facing.
- EUR 6 million for projects
in Libya. The 'Strengthening
protection and resilience of
displaced populations in
Libya' programme
- EUR 10 million to Regional
level support providing
additional funding to the
Regional Development and
Protection Programme in the
North of Africa.
In December 2016 - A EUR
37 million EU assistance
package for North Africa
consisting of three
programmes addressing
migration challenges in
Libya, Tunisia and Morocco.
In Libya, a EUR 20 million
programme will better
protect and assist the most
vulnerable migrants and
their host communities.
In Tunisia, a EUR 11.5
million programme will
support the country in
implementing their National
Strategy on Migration.
In Morocco, a EUR 5.5
million programme will
support preventing racism
DG NEAR_aar_2016_annexes_final Page 206 of 224
and xenophobia against
migrants through capacity
strengthening and improved
treatment of complaints.
Result indicator:. Further Visa liberalisation with relevant countries (i.e. Georgia,
Armenia, Ukraine, Kosovo, Turkey)
Definition: Visa liberalisation is the result of 'Visa Liberalisation Dialogues' conducted
between the EU and third countries. Through the Visa Dialogues, the EU takes gradual
steps towards the long-term goal of visa-free travel for short term stays on a case-by-
case basis, provided that conditions for well-managed and secure mobility are in place.
These dialogues are reserved for enlargement and East neighborhood countries.
Visa-free regime can fulfill the purpose of increasing people-to-people contacts
between the EU and the third countries, hence helping to develop special relationships
between the EU and the concerned Neighbourhood countries or helping to advance the
integration process in case of Enlargement countries.
In terms of process, the Commission reports on the implementation by the third country of
the related Visa Liberalisation Action Plan (VLAP). Once all benchmarks are met by the
third country in a sustainable manner, the Commission is in a position to propose to
transfer this country to the list of third countries whose nationals are exempt from visa
requirement (Regulation 539/2001). Finally, the European Parliament and the Council
decide whether to approve the Commission's proposal, taking into account possible
migration and security risks.
Within the Commission, DG HOME is in the lead for conducting Visa Liberalisation
Dialogues, with support from DG JUST, the EEAS and DG NEAR.
Source of data: European Commission (DG HOME and DG NEAR)
Baseline
2015
Interim Milestone
2016
Target
2020
Latest known results
2016
Ukraine:
Ukraine meets
criteria for visa
liberalisation,
based on the
commitments
taken in the
sixth VLAP
report
Georgia:
Positive
appraisal of
benchmarks
under the Visa
Liberalisation
Ukraine: Entry into
force of visa
liberalisation for
Ukraine
Georgia: Entry into
force of visa
liberalisation for
Georgia
Ukraine: In its sixth and
final progress report on Visa
Liberalisation Action Plan
(VLAP), adopted on 18
December 2015, the
European Commission
considered that Ukraine had
made the necessary
progress and had
undertaken all the required
reforms to ensure effective
and sustainable
implementation and
consequently put forward a
legislative proposal to lift
visa requirements for the
citizens of Ukraine in April
2016
Georgia: Visa liberalisation
was proposed for Georgia by
the European Commission in
DG NEAR_aar_2016_annexes_final Page 207 of 224
Action Plan
Armenia:
Preliminary
discussions on
Visa
Liberalisation
Kosovo: visa
liberalisation
dialogue
launched with
Kosovo on 19
January 2012
Turkey: visa
liberalization
dialogue
started in
December
2013
Armenia:
Discussions on
Armenia's request to
launch a Visa
Liberalisation
Dialogue
Kosovo: Visa
liberalisation possibly
granted to Kosovo
Turkey: Visa
liberalisation granted
to Turkish citizens in
the Schengen zone by
October 2016 once
the requirements of
the Roadmap are
met.
Armenia:
Advancement on
fulfilling
benchmarks for
Visa Liberalisation
2015. On 2 February 2017,
the European Parliament
approved the visa
liberalisation process,
paving the way for its entry
into force in April 2017.
Armenia: The request to
launch a Visa Liberalisation
Dialogue has been
submitted to the Council.
Kosovo: the Commission
issued its proposal for visa
liberalisation in May 2016.
The remaining two
requirements for visa
liberalisation are the
ratification of the border
demarcation agreement with
Montenegro and the
strengthening of the track
record on organised crime
and corruption.
Turkey made progress in
the implementation of the
Roadmap. There are still 7
outstanding benchmarks,
out of 72, that Turkey must
meet. Once al benchmarks
are fulfilled, Commission will
report to Council and EP, to
which a final decision
belongs.
Planned evaluations:
Migration and border management, 2019 – thematic;
Security, 2016 – thematic (not completed).
Main outputs in 2016:
Policy–related outputs
Description Indicator (e.g.
adoption by the
Commission;
completion)
Target date Latest known results
(situation on 31/12/2016)
Turkey - Joint
Action Plan on
Migration and
visa liberalisation
roadmap
Monitor the Joint
Action Plan on
Migration and visa
liberalisation
roadmap
Throughout 2016
Visa reports in
March and
September
Until 18 March 2016, EC was
monitoring implementation of
the Action Plan and issued a
report in March 2016. As of
18 March 2016, EU and
Turkey are implementing the
EU-Turkey Statement which
DG NEAR_aar_2016_annexes_final Page 208 of 224
includes migration, visa
liberalisation, Facility funding,
Customs Union, etc. On the
Statement EC has issued four
progress reports in 2016. On
Visa Liberalisation, as
planned, EC issued 2 reports
in 2016, in March and May.
Alignment with
"acquis" by
candidates and
potential
candidates
Negotiations and
alignment by
candidates and
potential candidates
to EU standards and
acquis related to
chapter 24
monitoring
Throughout 2016
Albania adopted the law on
border control, which entered
into force in August 2016.
The law and associated by-
laws are aligned with the
acquis.
Bosnia and Herzegovina
Some progress was made
with the adoption of a
strategy on integrated border
management and a new
legislative framework for
migration and asylum.
Montenegro: Chapter 24
was opened in 2013 and has
38 interim benchmarks. In
2016, some progress was
made through the continued
implementation of the Action
Plan for Justice, Freedom and
Security. The law on asylum
adopted in December 2016
was further aligned with the
EU acquis.
Kosovo :The Stabilisation
and Association Agreement
(SAA) between the European
Union and Kosovo entered
into force on 1 April 2016,
Serbia: Ongoing alignment
with the acquis on chapter 24
following the opening of
negotiations in July 2016.
In the former Yugoslav
Republic of Macedonia,
during 2016, chapter 24
activities focused on
achieving full alignment of
the domestic legislation with
the asylum acquis
Visa liberalisation Kosovo: In 2016 Two requirements for visa
DG NEAR_aar_2016_annexes_final Page 209 of 224
process for
Kosovo
Implementation of
2012 visa
liberalisation
roadmap
liberalisation remain : the
ratification of the border
demarcation agreement with
Montenegro and the
strengthening of the track
record on organised crime
and corruption.
Commission
Proposal on
Georgia Visa
Liberalisation
prepared
Drafting of the
proposal by the
Commission (DG
HOME in the lead)
and adoption by the
College
March 2016 Visa liberalisation was
proposed for Georgia by the
European Commission in
2015. On 2 February 2017,
the European Parliament
approved the visa
liberalisation process, paving
the way for its entry into
force in April 2017.
Launch of the
Mobility
Partnership with
Belarus
1. Finalising the
Annex to the
Mobility Partnership
with Belarus
2. Signature of the
Mobility Partnership
Declaration by the
EU, the Member
States and Belarus
Second half of
2016 (DG HOME
in the lead)
The Mobility Partnership was
signed in October.
Commission
Proposal on
Ukraine Visa
Liberalisation
prepared
Drafting of the
proposal by the
Commission (DG
HOME in the lead)
Early 2016 The European Commission
put forward a legislative
proposal to lift visa
requirements for the citizens
of Ukraine in April 2016
Joint ECHO,
DEVCO and
NEAR
Communication
on forced
displacement and
development
Adoption of this
Communication by
the College
Agenda planning
reference:
2015/ECHO+/009
April 2016 Lives in dignity – from aid
dependence to self-reliance.
Communication from the
Commission to the European
Parliament, the Council, the
European Economic and
Social Committee and the
Committee of the Regions —
(COM(2016) 234 final,
published on 26.4.2016 and
COM(2016) 234 final/2,
published on 2.5.2016)
Main expenditure outputs
Description Indicator Target date Latest known results
(situation on 31/12/2016)
Facility for
Refugees in
Turkey up and
running
Set up the Facility
(governance, rules)
Q1, , take strategic
decisions in
Steering Committee
from Q1, actions
Throughout 2016 EUR 2.2 billion out of the EUR
3 billion from the Facility for
Refugees in Turkey for the
years 2016-2017 have been
mobilised in 2016 in the
space of 8 months .
DG NEAR_aar_2016_annexes_final Page 210 of 224
programmed Q3
and contracting
started Q4
Implementation of 37
projects worth EUR 1.45
billion has effectively started
in 2016 and a total of EUR
748 million disbursed.
EU regional Trust
Fund in response
to the Syrian
Crisis
Implementing
initiatives via the
EU regional Trust
Fund in response to
the Syrian Crisis
Throughout 2016 In 2016, the EU Regional
Trust Fund in Response to the
Syrian Crisis, the 'Madad
Fund', adopted new actions
for a total amount of EUR 378
million, signed contracts for a
total of EUR 321 million in the
same period, and disbursed
EUR 129 million to projects at
the same time.
Emergency Trust
Fund for stability
and addressing
root causes of
irregular
migration and
displaced
persons in Africa
– North Africa
Commitment of
35% of the funds
approved by the 1st
operational
committee for 2016
31.12.2016 Commitment of 22% of the
funds approved by the 1st
operational committee for
2016
Support to
Georgia VLAP
implementation
Support to the
continuous
implementation of
the VLAP
benchmarks, in
particular in the
fields of migration
and organised crime
Throughout 2016 To ensure the sustainable
implementation of the
benchmarks of the visa
liberalisation action plan
(VLAP) in the fields of border
management and migration,
DG NEAR support was
provided to Georgia in 2016
through a number of
measures including the
project 'Enhancing Georgian
Migration Management
(ENIGMMA).
Support to
migration
management in
Belarus
Commission
Financing Decision
to be adopted.
End July 2016 An action has been approved
under the 2016 Annual Action
Programme (EUR 7 million) to
address irregular migration in
Belarus and to help
implement the future EU-BY
readmission agreement.
TAIEX Support to VLAP,
border
management and
asylum related
matters, including
in collaboration with
interested line DGs
Throughout 2016 Throughout 2016, 34 TAIEX
events have been organised
to support to VLAP, border
management and asylum
related matters.
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General objective 3 :
A Resilient Energy Union with a Forward-Looking
Climate Change Policy
Specific objective: 6 Increased energy security and
more effective climate policies in the Enlargement and
Neighbourhood countries as well as increased energy
connectivity between the EU and these countries.
Related to spending
programmes
IPA and ENI
Result indicator: Number of sector dialogues on gas, renewable energy and energy
Efficiency at regional level.
Definition:
Eastern Partnership (EaP):
At regional level, meetings of the regional EaP Platform 3 on Energy Security, which
supports dialogue in developing electricity, gas and oil interconnections, as well as
improving energy efficiency and renewable energy sources.
Neighbourhood South:
The progressive integration of the energy markets in the Mediterranean is a key aspect of
the ENP Review and one of its objectives. Such integration could only be achieved through
the establishment and functioning of dedicated international fora where the policy priorities
and the actions to implement them are discussed and adopted. In the Mediterranean
region, this is currently done through the sector policy dialogues under the UfM umbrella
(i.e.: the UfM Energy Platforms in the field of Gas; Regional Electricity Markets; Renewable
Energies and Energy Efficiency). The level of activity and relevance of these policy
dialogues is measured through the frequency of their meetings and the quantity and quality
of the results that are produced therein. Therefore the number of meetings held in the
framework of each policy dialogue can be considered as an appropriate indicator to be
employed.
Together with DG ENER, DG NEAR is leading the policy dialogues that are being shaped in
the framework of the three UfM Energy Platforms. More specifically, NEAR regularly
provides technical input regarding the following aspects: definition of the platforms' work
programmes and activities; identification and formulation of policy priorities in the energy
sector; logistical aspects that are linked to the organisation of the platforms' meetings. This
work is essential to achieve the desired frequency of policy dialogue meeting and the
quality of their results. In addition, DG NEAR provides a more political contribution, by
regularly cooperating with DG ENER in view of the UfM Energy Ministerial meetings. Finally,
DG NEAR manages two contracts with the key technical partners of the UfM Regional
Electricity Markets Platform: MEDREG and MED-TSO.
Source of data:
- EaP: Platform 3 meetings funded by regional EaP events facility.
- Neighbourhood South: DG NEAR and DG ENER internal reporting. UfMS activity report
and minutes of meetings.
Baseline
2015
Interim
Milestone 2016
Target 2020 Latest known results 2016
EaP: 2 per year
UfM: 1 meeting
of the Regional
EaP: 2 meetings
per year
UfM :The target is
2 meetings per
UfM :30 meetings
in total
Eastern Partnership: Over
the course of 2016, two energy
security platform meetings and
one workshop took pace. A
DG NEAR_aar_2016_annexes_final Page 212 of 224
Electricity
Platform (REM)
and 1 meeting
for the Gas
Platform
year for each UfM
Platform until 2020
high level conference 'EU
Energy Cooperation with the
Eastern Neighbourhood and
Central Asia' took place in
March 2016.
3 joint meetings, (all
platforms) and the December
energy Ministerial.
Result indicator: Neighbourhood East - Number of investments from the Neighbourhood
Investment Facility (NIF) adopted on Renewable Energy and Energy Efficiency
Definition: Strategic investment projects on Renewable Energy and Energy Efficiency
funded by the NIF – Neighbourhood East
Source of data: NIF Board decisions
Baseline
2015
Interim
Milestone 2018
Target 2020 Latest known results 2016
0 2 per year 2 per year
(based on desk
evaluation)
Two investments from the
Neighbourhood Investment
Facility (NIF) have been
adopted; a EUR 10.4 million
project for the extension of the
Georgian Transmission
Network (Renewable Energy),
and a EUR 3.2 million project
to improve energy savings in
universities in Ukraine (Energy
Efficiency). Both were
approved by the NIF Board in
2016.
Result indicator: Neighbourhood South - At least 30% of the Neighbourhood Investment
Facility (NIF) grant investments in the Southern Neighbourhood will be devoted by 2020 to
facilitate investments in the Renewable Energy and Energy Efficiency Sectors
Definition: Facilitating investments to establishing better and more sustainable energy
interconnections (between the EU and neighbouring countries and between the
neighbouring countries themselves), improving energy efficiency and demand
management, promoting the use of renewable energy sources, strengthening energy
security through diversification of energy supplies and energy market integration are part
of the NIF strategic orientations and priority objectives adopted by the Commission
with the agreement of partner countries for the period 2014-2020.
The NIF is a blending designed to combine EU grants with other public and private
financing. By reducing, through co-financing, the overall cost or risk of the project or by
subsidising interest rates and/or financing technical assistance, the Facility will encourage
the beneficiary governments, private sector and/or public institutions to carry out essential
investments in sectors which would otherwise be postponed due to lack of resources.
The role of DG NEAR is to discuss and promote with the European Financial Institutions,
in close association with the concerned EU Delegations, the identification and
submission to the NIF of investment projects in the targeted sector.
Source of data: NIF Secretariat and NIF Annual Reports
DG NEAR_aar_2016_annexes_final Page 213 of 224
Baseline
2018-2013
Interim
Milestone 2018
Target 2020 Latest known results 2016
The base line
was 20% to
25% of NIF
grants for the
Energy sector
At least 30% of
the NIF grant
investments in the
Southern
Neighbourhood
will be devoted by
2020 to facilitate
investments in the
Renewable Energy
and Energy
Efficiency Sectors
Jordan NEPCO green corridor,
total cost EUR 146.2 million
(EU grant contribution
17.787.000)
33% of NIF grant investments
in the Southern Neighbourhood
are devoted to energy
Result indicator: Progress in implementing the Projects of Energy Community
Interest
See description of this indicator under Specific objective 4
Main outputs in 2016:
Policy–related outputs
Description Indicator (e.g.
adoption by the
Commission;
completion)
Target date Latest known results
(situation on 31/12/2016)
Energy
Community
Treaty.
Level of
Enforcement of
existing Energy
Community Acquis
(through Berlin
Process ‘soft
measures’
Application of the
EU’s Security of
Supply (SoS)
Regulation to the
Energy
Community (EnC)
Inclusion of
climate elements
in Energy
Community Acquis
By the time of the
Paris Summit, the
level of
enforcement of
these ‘soft
measures’ should
allow investments
in energy projects.
Once the revised
SoS Regulation is
approved, this is
transposed in the
EnC countries,
allowing the SoS
Regulation to
apply to those
countries.
Transposition of
EU’s Monitoring
Mechanism
Regulation into
the Energy
Community by the
The transformation of the
Energy Connectivity Reform
Measures into a Regional
Electricity Market
demonstrates a high level of
enforcement of the Energy
Community Acquis.
This application has not been
possible following the legal
analysis.
In October 2016, the
Monitoring Mechanism
Regulation became a part of
the Energy Community Acquis.
DG NEAR_aar_2016_annexes_final Page 214 of 224
end of the year.
Alignment with
"acquis" by
candidate
countries
Outputs related to
negotiations and
alignment by
candidate
countries to EU
standards, acquis
on related
chapters (Energy
etc.) and Energy
Community Treaty
obligations.
(see also the ‘level
of enforcement’
above)
Serbia and
Montenegro, in
particular, should
make further
progress to full
alignment.
Approve the
Screening Report
for Turkey for the
Energy Chapter
Accession negotiations
continued. However, the
formal progress in these
negotiations depends on the
countries themselves.
Montenegro made some
progress on chapter 14 -
transport policy and good
progress on chapter 15 –
Energy, in full alignment. Both
chapters were opened in
December 2015.
Serbia has a good level of
preparation in transport policy
(chapter 14). In energy
(chapter 15) Serbia has made
some progress in the internal
energy market
ENP review roll-
out – Priority
actions on
Energy
Strengthen energy
dialogue with
Neighbourhood
partners
Also develop
regional and sub-
regional
measures.
Throughout 2016,
on the basis of the
ENP Review roll-
out
"EU4Energy" has been
launched as a key action to
cover the preparation of
evidence-based policies in the
region and to help countries
prepare priority project
pipelines.
In Jordan, the energy dialogue
is under the auspices of the EU
Renewable Energy and Energy
Efficiency Budget Support.
In Egypt, the EU has kept a
very close dialogue with the
Government in the Energy
Sector through the “Energy
Sector Policy Support
Programme” (EUR 60 million)
signed in 2011. The
programme aims at improving
the energy policy and
regulatory framework, the
sector's financial transparency
and performance, and
promoting the development of
renewable energy and energy
efficiency.
In Lebanon, a policy dialogue
on energy is part of the mutual
commitments of EU-Lebanon
DG NEAR_aar_2016_annexes_final Page 215 of 224
compact.
Furthermore, a contract
granted for the evaluation of
the EU support provided at
regional and bilateral level in
the field of energy.
In Tunisia, the Joint EU
Communication on Tunisia
details a number of axes for
cooperation in the sector of
energy. Specific measures will
be foreseen in 2017.
In the wake of the 2015 high-
level EU-Algeria dialogue on
Energy, an Energy Business
Forum took place in May 2016
in Algiers gathering public
institutions, energy regulators,
business organisations and
financial institutions to explore
cooperation and investment
opportunities in the area of
conventional but also
renewable energies and energy
efficiency.
Main expenditure outputs
Description Indicator Target date Latest known results
(situation on 31/12/2016)
Number of
Neighbourhood
Investment
Facility (NIF)
projects in
2016 on
renewables
energy and
efficiency
sectors
Neighbourdhood
East: 2
Two investments from the
Neighbourhood Investment
Facility (NIF) have been
adopted; a EUR 10.4 million
project for the extension of the
Georgian Transmission
Network (Renewable Energy),
and a EUR 3.2 million project
to improve energy savings in
universities in Ukraine (Energy
Efficiency). Both were
approved by the NIF Board in
2016.
ENP review roll-
out – Priority
actions on
Energy
Contracting and
implementation of
new regional
energy
programme (EUR
20 million) to
support evidence-
based energy
policies and closer
energy
End 2016 In Jordan, the energy dialogue
happens under the auspices of
the EU Renewable Energy and
Energy Efficiency Budget
Support (EUR 90 million,
including 35 million granted to
EBRD to improve Energy
Efficiency of water pumps and
a waste to energy pilot project
in Amman). The programme
will install about 20,000 units
DG NEAR_aar_2016_annexes_final Page 216 of 224
interconnections. of Solar Water Heating
systems in rural community
areas and CSOs will have a say
on where and to whom these
should be provided.
Thanks to Energy Sector Policy
Support Programme, the EU
has supported Egypt in
preparing the Integrated
Sustainable Energy Strategy to
2035, which covers all energy-
related topics with a special
focus on Renewable Energy,
Energy Efficiency, institutional
set up, and financial
mechanisms. In addition, a
Medium Term Action Plan has
been developed to support the
implementation of the
Strategy.
Initial identification of
components of the Energy, and
climate change regional action
programme have within this
context been carried out.
General objective 4 :
A New Boost for Jobs, Growth and Investment
Impact indicator: Europe 2020 target - Employment rate population aged 20-64
Source of the data: EUROSTAT
Baseline 2014 Target 2020
69.2% at least 75%
DG NEAR will contribute to the specific objective through a variety of policy-related
actions. These include completing preparations for the negotiations of modernised
Customs Union with Turkey, monitoring the Stabilisation and Association
Agreements with the countries of the Western Balkans as well as ensuring financial
assistance to Morocco and Tunisia to accompany them in the DCFTA
negotiations.
Specific objective 7: Increased prosperity in the Enlargement
and Neighbourhood countries and in the EU through increased
economic and trade opportunities between the EU and these
countries.
Related to spending
programmes IPA and
ENI
Result indicator: Initiative on the enhancement of EU-Turkey bilateral trade relations and
modernisation of the EU-Turkey Customs Union (CU).
Definition: The main policy objective of this initiative is to enhance the bilateral
preferential trade framework by extending the CU to other areas (agriculture,
DG NEAR_aar_2016_annexes_final Page 217 of 224
services and public procurement) and improving the functioning of current mechanisms.
This indicator will measure the progress of the negotiation between Turkey and the EU with
a view to modernising the EU-Turkey Customs Union.
This indicator is particularly relevant to this specific objective since Turkey is the EU's 6th
biggest trading partner and accounts for nearly 4% of its total trade. Three fourths of
FDI inflows to Turkey originate in the EU, mainly greenfield and services investments.
Enhancing economic integration by improving market access in agricultural and public
procurement markets, and fostering investments in the services sectors through better
opening and regulatory alignment would increase further market integration to the benefits
of both parties.
DG NEAR will work jointly with DG TRADE on this initiative, in a supportive and
complementary role.
Source of data: European Commission (TRADE and NEAR)
Baseline
2016
Interim
Milestone 2017
Target 2018 Latest known results 2016
Existing
Customs Union
Agreement EU-
Turkey (in
force since
1996)
Conduct
negotiations for
modernising
Customs Union
with Turkey
Upgraded/exten
ded CU in force
or provisionally
applied,
including new
mechanisms
On track. Negotiation directive
tabled by the Commission to
Council in December 2016.
Result indicator: DCFTA Facility for Georgia, Moldova and Ukraine
Definition: DG NEAR, jointly with European Financial Institutions (EFIs) – the European
Investment Bank (EIB) and the European Bank for Reconstruction and Development
(EBRD) in the first place – has put in place the DCFTA Facility for SMEs to help SMEs to
seize new trade opportunities opened thanks to the DCFTA and to comply with the DCFTA
provisions.
Source of data: European Commission (TRADE and NEAR)
Baseline
2015
Interim
Milestone
Target 2018 Latest known results 2016
The two DCFTA
Facilitation
programmes with
the EIB and the
EBRD will generate
approximately
13,750 sub-loans to
companies. Other
objectives include
to:
- improve technical
and SPS standards
leading to enhance
the competitiveness
of SMEs in the
DCFTA signatory
countries
The DCFTA Initiative East
Facility, with the EIB, was
signed in December. The
DCFTA Facility Phase I,
managed by the EBRD, had
committed almost the full
allocation (predominantly in
Moldova and Georgia) by the
end of 2016. Programmes are
ongoing to improve technical
and SPS standards in the
DCFTA signatory countries.
DG NEAR_aar_2016_annexes_final Page 218 of 224
- transfer
knowledge on how
to use the
opportunities and
address the
challenges resulting
from the DCFTA
implementation.
Planned evaluations:
Economic governance, 2016 – thematic
Competitiveness, 2016 – thematic
None of these evaluations has been finalized in 2016
Result indicator: Deep and Comprehensive Free Trade Agreement with Morocco and
Tunisia
See description of this indicator under Specific objective 1
Main outputs in 2016:
Policy–related outputs
Enlargement
Description Indicator Target date Latest known results
(situation on 31/12/2016)
Turkey
Customs Union
Complete
preparations for
negotiations of
modernised
Customs Union.
Prepare in close
association with
DG TRADE the
Impact
assessment study
and the Draft
mandate
Agenda planning
reference:
2015/TRADE+/03
5
Indicator:
Impact assessment
study Q3 2016;
Draft mandate,
Q4.2016
On track. Impact
assessment of the
Customs Union was
validated by RSB in
October 2016, and
negotiation directive tabled
by the Commission in
December 2016.
Economic
Reform
Programmes for
the
enlargement
countries
Coordination of
the 2016 ERP
exercise for the
enlargement
countries and
preparation of new
guidance note for
the 2017 ERP
exercise.
2016 assessments and
draft council
conclusions adopted
according to schedule
fixed in 2015.
Adoption and
circulation of guidance
note to partners
before 1 July 2016
Adequate and timely
assessments of Albania,
Bosnia and Herzegovina,
Kosovo, Montenegro,
Serbia and the former
Yugoslav Republic of
Macedonia Economic
Reform Programmes
provided according to
schedule. Council
conclusions adopted on 25
May 2016.
Commission assessments
adopted on time for
discussion in the Council
working group. ERP
DG NEAR_aar_2016_annexes_final Page 219 of 224
guidance note adopted on
30 May 2016.
Monitoring the
Stabilisation
and association
agreements
(SAA) with
Western
Balkans
countries
SAA Council,
Committee, and
sub-committee
meetings taking
place with western
Balkans countries.
DG NEAR
prepares,
participates in and
reports on these
meetings
All WB countries (for
Kosovo as from entry
into force of SAA in
April or May 2016 ):
SA Council (annual)
SA Committee
(annual) Sub-
committees (7 / year)
For Kosovo: Until the
SAA enters into force,
continuation of
Meetings of the
Stabilisation and
Association Process
Dialogue (SAPD)
Albania:
SA Council took place on 8
September 2016. 7th SA
Committee on 9 June
2016. Seven sub-
committees were
organized in 2016.
Bosnia and
Herzegovina: 1st SA
Council took place on 11
December 2015. 1st SA
Committee was held on 17
December 2015. 5 sub-
committees took place in
2016 as part of 1st cycle
(remaining 2 scheduled for
2017).
Kosovo:
SAA entered into force on
1 April 2016.
1st SA council held on 25
November 2016. SA
Committee is scheduled for
2017. The 2016 cycle of 7
sub-committees took place
in 2016.
Montenegro:
SA Council took place on
20 June 2016, 6th SA
Committee 19 December
2016, 7 sub-committee
meetings and the Special
group on PAR in the course
of 2016.
Serbia:
The SA Committee and
Council took place in April
and December 2016,
respectively. In 2016, the
cycle of 2015-2016 sub-
committees was completed
and the 2016-2017 one
began.
The former Yugoslav
Republic of Macedonia:
SA Council did not take
place in 2016. SA
Committee was held on 15
June 2016.
Seven sub-committees
were organized in 2016.
Alignment with
economic
criteria and
economic
Outputs related to
negotiations and
alignment by
candidates and
Throughout 2016 Alignment with economic
criteria and economic
related "acquis" chapters
was ongoing throughout
DG NEAR_aar_2016_annexes_final Page 220 of 224
related "acquis"
chapters by
candidates and
potential
candidates
potential
candidates to EU
standards and
acquis on related
chapters (free
movement of
goods, services,
capital, public
procurement,
company law,
intellectual
property rights,
competition,
financial services,
taxation,
employment,
enterprise and
industrial policy,
research,
consumer
protection,
customs, etc.)
2016.
In Albania during 2016
the Market surveillance
inspectorate was
established and some
progress was achieved in
alignment with New and
Global Approach acquis,
adoption of a new Law on
services, establishing on-
line business registration,
and National Business
Centre, adoption of new
copyright and intellectual
property Laws, further
alignment of the state aid
law with the acquis,
amendment of the Labour
code adopted, and
adoption of a National
Strategy on Consumer
Protection and Market
Surveillance.
Bosnia and Herzegovina
is at an early stage of
preparation for the free
movement of goods and
services, employment,
education and research.
The country has some
level of preparation in the
area of public procurement
and competition. Bosnia
and Herzegovina is
moderately prepared in the
area of movement of
capital, customs and
taxation and intellectual
property rights.
Good progress was made
in Kosovo customs and
taxation, especially in
fighting corruption in
customs, collecting
customs revenue. Some
progress was achieved in
public procurement and
intellectual property rights.
In the employment area,
little progress was made
as Kosovo still needs to
amend the labour law to
align with the acquis.
Kosovo is at an early stage
in the area of competition.
In Montenegro, the
DG NEAR_aar_2016_annexes_final Page 221 of 224
Commission continued to
assess the fulfilment of the
economic accession
criteria. One economic
related chapter was
opened in 2016 (ch19
employment). Monitoring
of benchmark-related work
in public procurement,
company law, intellectual
property law and financial
services continued (ch 5,
6, 7, 9). Slow progress
was made in the
competition policy, despite
of the substantial support
from Commission side
(opening benchmark).
For Serbia, two economic
related chapters were
opened in 2016 (5 public
procurement and 25
research). Serbia has good
level of preparation in the
area of public
procurement, company
law, intellectual property
law, research and
customs. The country is
moderately prepared for
the free movement of
goods, services and
capital, in the area of
competition policy,
financial services, taxation,
employment, enterprise
and industrial policy and
consumer protection.
The former Yugoslav
Republic of Macedonia
has good level of
preparation in the area of
company law, customs
union and research. In
most of the economic
related chapters, the
country is moderately
prepared: free movement
of goods, services and
capital, public
procurement, intellectual
property law, competition,
financial services, taxation,
employment, enterprise
and industrial policy,
consumer protection.
In summary, there has
DG NEAR_aar_2016_annexes_final Page 222 of 224
been consistent and
marked progress in this
area, with a steady
reduction in cases of "early
stages of preparation",
from 51 cases in 2014, to
49 in 2015, and 37 in
2016.
Thematic
evaluation on
support to
Economic
Governance in
enlargement
The evaluation
should serve to
provide advice and
evidence in future
EU assistance on
economic
governance.
(ongoing through
2016)
Agenda planning
reference:
2016/NEAR/001
The evaluation will be
completed end 2016
and will assess the
performance, good
examples and lessons
learned from the pre-
existing assistance in
areas related to
economic governance
in the enlargement
countries.
Evaluation still ongoing
Neighbourhood
Policy-related outputs
Description Indicator Target date Latest known results
(situation on 31/12/2016)
DCFTA with
Morocco and
Tunisia.
Continued
participation in
EU's awareness
raising and
negotiation efforts
in relation to
DCFTA with
Morocco and
Tunisia.
Ensure
implementation of
financial
assistance to
accompany the
DCFTA
negotiations.
Throughout 2016 2016 was marked by
Morocco's suspension of all
policy dialogue with the
EU. This followed the
European Court of Justice
Judgement of December
2015 annulling the Council
Decision of 8th March 2012
on an EU/Morocco
agreement on the trade of
agricultural products.
Consequently no progress
could be made regarding a
DFCTA.
In Tunisia, support
measures (studies,
assessment, awareness
raising events) to
accompany the DCFTA
negotiations were
implemented throughout
the year. While technical
discussions continued to
take place between the EU
and the Tunisian
Government on the
DCFTA, no formal
negotiation round took
DG NEAR_aar_2016_annexes_final Page 223 of 224
place in 2016. Several EU-
civil society dialogues
however took place in the
course of the year with a
view to raise awareness on
the opportunities offered
by the DCFTA and
accompanying measures
DCFTA Facility
for Georgia,
Moldova and
Ukraine
The two DCFTA
Facilitation
programmes with
the EIB and the
EBRD will
generate
approximately
13750 sub-loans.
Improve technical
and SPS standards
leading to enhance
the
competitiveness of
SMEs in the
DCFTA signatory
countries.
From now up to 2020 The DCFTA Initiative East
Facility, with the EIB, was
signed in December. The
DCFTA Facility Phase I,
managed by the EBRD,
had committed almost the
full allocation
(predominantly in Moldova
and Georgia) by the end of
2016. Programmes are
ongoing to improve
technical and SPS
standards in the DCFTA
signatory countries.
Concerning Ukraine, the
programme EU-SURE
adopted as Special
Measure in 2015 was
contracted and launched
under the common
branding EU4Business
covering all EU country
and regional support to
economic development in
the Eastern
Neighbourhood.
The component related to
Business Support Centre
network started its
operation in April 2016
(EUR40 million).
The contract for the Credit
Guarantee Facility for
Ukraine (EUR40 million)
was signed with the
European Investment Fund
in December 2016.
Main expenditure outputs
Description Indicator Target
date
Latest known results
(situation on 31/12/2016)
Technical Assistance and
Information Exchange
instrument - TAIEX
TAIEX events
contributing to the
implementation of
AA/DCFTA and to
Throug
hout
2016
Throughout 2016, 363
TAIEX events contributed
to the implementation of
DG NEAR_aar_2016_annexes_final Page 224 of 224
current or future
agreements implying
approximation with EU
laws and norms (East
and South)
AA/DCFTA and to current
or future agreements
implying approximation
with EU laws and norms.