Overview of the EC External Aid. The future

E. DalamangasE.C. / EuropeAid Co-operation Office

• Third donor of Official Development Assistance (ODA) after the USA and Japan

• First donor of humanitarian aid (€ 513,3 million in 2004)

• 2004: new commitments (grants) amounted to€ 8,5 billion (EuropeAid’s portfolio + Humanitarian Aid + Pre-Accession instruments + CFSP + Rapid Reaction Facility)

• Co-operation with more than 150 partner countries, territories and regional organisations

• Network of 130 Delegations

The Commission, today,a major development actor

A few examples (1)Top 20 recipients of EU and EC Aid

A few examples (2)EU Aid for Education

(by donor in US$ - average 2001/02)

Examples:

• Contribution to Global Health Fund (GFATM): around 442 million euros

• Set up of a 250 million euros facility for conflict prevention and peace keeping support in Africa

• Set up of a 500 million euros facility to develop access to drinkable water and sanitation in the ACP countries

Take up the most urgent challenges (1)

Examples :

• Post-Tsunami Action Plan: 350 million euros

In preparation:

• energy facility (proposal of 250 million euros)

• Use of additional ODA resources to reach the MDGs and an Initiative for Africa

Take up the most urgent challenges (2)

European Commission RELEX Family

• Policy making: RELEX, ELARG, DEV, TRADE, ECHO.

• Management of external aid budgets: EC Delegations (130), EuropeAid, ECHO and ELARG.

Reminder: European Council and European Parliament decide (approve) all Commission proposals.

• New financial perspectives 2007-2013: COM proposals in February, July and November 2004 / timing foreseen: political agreement at the European Council in 2005 and adoption of the full legislation before end 2005

• 3 new main lines for the external action of the European Union: Continental strength (neighbourhood policy) Partner for sustainable development Global actor ensuring civil and strategic security

• Simplification and rationalisation of instruments

• Budgetisation of the EDF

Towards a new strategic framework (1)

Developmentco-operation and

economic co-operation(new)

EuropeanNeighbourhoodand Partnership

Instrument(new)

Instrumentfor pre-Accession

Assistance (new)

HorizontalInstrument

for Stability (new)Instrument for

Humanitarian Aid

Macro-FinancialAssistance

Towards a new strategic framework (2)

New proposed instruments

• Development: 44 229 M€ of which 23 572 for ACP countries: EDF budgetisation as of 2008 (6.780 M€ to be committed each year / an increase of 34%

compared to years 2004-06)

• Neighbourhood Policy: 14 929 M€ (2.133 M€ to be committed each year / an increase of 67% compared to years 2004-06)

• Pre-Accession: 14 653 M€ (2.093 M€ to be committed each year / a decrease of 17% compared to years 2004-06)

• Stability: 4 455 M€ (652 M€ to be committed each year / an increase of 44% compared to years 2004-06)

• Other instruments and reserves: 14.895 M€

Indicative amounts 2007–2013(current prices – without administrative expenditure)

Development Co-operation and Economic Co-operation

Instrument (DCECI)

• Financial instrument designed to support development co-operation in pursuance of Millennium Development Goals, for economic co-operation, and for horizontal, thematic, and global initiatives

• DCECI covers all Countries, territories and regions not covered by IPA and ENPI: mainly Africa, Caribbean, Pacific (but not Overseas Countries and Territories), Asia, Central Asia, East-Jordan and Latin America

European Neighbourhood and Partnership Instrument (ENPI)

• Financial instrument designed to support the European Neighbourhood Policy and the strategic partnership with Russia: replaces MEDA, Tacis and other existing instruments

• ENPI covers Community assistance to 17 Countries: Russia, Belarus, Ukraine, Moldova, Armenia, Georgia, Azerbaijan, Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Palestinian Authority, Syria, Jordan, Lebanon

• Specific Cross Border co-operation component covering border regions in the Member States

Instrument for Pre-Accession (IPA)

• Integrated instrument to assist candidate (Croatia, Turkey) and potential candidate (Western Balkans) countries: replaces Phare, ISPA, SAPARD, Turkey pre-accession, and CARDS instruments

• Clear distinction between potential Candidate Countries (support for participation in the Stabilisation and Association process) and Candidate Countries (adopt and implement the acquit and implement EU funds on accession)

Instrument for Stability (IS)

Financial instrument designed to support:

• Response to political crisis, man-made or natural disaster, including Peace Support

• Response to urgent global and regional cross-border challenges affecting the security of the citizen

• Safeguarding against critical technological threats, nuclear safety, non-proliferation

External Aid projectsServices- Supplies-Works

The procedures

http://europa.eu.int/comm/europeaid/tender/gestion/index_en.htm

Call for tenders • Services. Restricted Call for tenders

for projects more than € 200.000. Framework contracts for less than € 200.000.

• Supplies. International open call for tenders for more than € 150.000. Local for less than € 150.000.

• Works. International call for tenders for more than € 5 million. Local for less than € 5 million.

Call for tenders for services

• Forecast Notice. After min. 30 days.• Procurement Notice. After min. 30 days• Establishment of Short list• Sending Terms of reference to the bidders.

After min. 50 days offer submission.• Evaluation of offers.• Contract• Exception: Negotiated procedure,

Simplified procedure.

Call for tenders for supplies or works

• Forecast Notice. After min. 30 days.• Procurement Notice. After min. 30 days• Technical specifications or Tender dossier.

After min. 50 days. Offer submission.• Evaluation of offers.• Contract• Exception: Restricted Call for tenders.

Negotiated procedure. Simplified procedure.

Infrastructure projectsFormulation

• Strategy paper (sector, budget).• Task Manager discuss with EC Delegations,

Partner Govt. Officials, Consultants, Other donors, EC Colleagues.

• The project idea • Feasibility study – Detailed technical

study (consultants). • Financing decision by the Commission after

consultation with the Member States.

Infrastructure projects Implementation

• Construction (contractors)• Supervision (consultants)

• Control by the EC Delegations and the HQ in Brussels.

• Evaluation

Transport

• Transport is the focal point for 32 African Countries and 3 regional programmes under the 9th EDF. For 2003, EDF Commitments were € 500 million

• TACIS / TRACECA € 12 million per year.

• CARDS / Balkans 1998-2003 € 198 million

Limited competition for transport

• Rapid survey of EDF road projects (works) tendered since 2002 in all ACP countries

• 38 international tenders have been issued since 2002 in this field

• following provisional figures (for only 35% of these international tenders):

– average number of tender dossiers purchased by firms: 10

– average number of total offers received: 4– average number of offers accepted:

2

Donor Community

• The Commission co-ordinates its external aid activities with main International Donors

• EIB, EBRD.• IMF, World Bank, UNDP.• Asian Development Bank, African

Development Bank, Kuwaiti Fund…• EU M.S. Agencies: DFID, DANIDA,

AFD…

Internet sites

• Call for tendershttp://europa.eu.int/comm/europeaid/index_en.htm• Policy

• RELEX http://europa.eu.int/comm/world/• DEV http://europa.eu.int/comm/development/index_en.htm• ELARG

http://europa.eu.int/comm/dgs/enlargement/index_en.htm

Thank you for your attention