EU EXTERNAL AID

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EU EXTERNAL AID
Raul Mateus Paula
EFCA - 21th March 2002
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This presentation underlines

• The key objectives of the Relex Reform
• The division of the responsibilities
• EuropeAid organization
• Project cycle phases (Financial phase.
  Implementation phase.)
• Futures developments

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The Key Objectives of the Relex Reform
The key objectives of the Relex Reform

• Make significant improvements in the quality and
  efficiency of project management
• Substantially reduce the time taken to implement
  projects
• Ensure robust and efficient management procedures
• Improve the impact and visibility of the Aid

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The division of the responsabilities
Division of Responsibilities

• EuropeAid is responsible for the project cycle
  from identification through implementation
• DG Relex and DG Dev are responsible for the
  pluri-annual programming

Mettre en oeuvre lensemble des instruments d
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EuropeAid organization
The six stages of the Project Cycle Today
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Project cycle phases
Project cycle phases

• Programming
• Analyse situation to identify problems which
  development co-operation could address
• Identification
• Identify project ideas and screen them for
  further study
• Formulation
• Develop relevant project ideas into operational
  project plans
• Financing
• Commission decides to fund project and agrees
  arrangements with beneficiary country
• Implementation
• Mobilise and execute project
• Evaluation
• Assess project achievements and identify lessons

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Financing phase
Project cycle phases
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Implementation phase
Project cycle phases

• Award contract(s) to implement projects
• fair competition
• transparency
• Manage execution of projects

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Procurement rules applicable to EC external aid
Project cycle phases

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

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Public procurement Directives
Project cycle phases

• Apply to public procurement by Member States and
  the Commission itself
• Govern
• choice of award procedure
• rules on publicity
• candidates allowed to tender
• selection and award criteria

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EC external aid contracts
Project cycle phases

• Commission for and on behalf of the Government
  of a beneficiary country
• Title IX of the existing Financial Regulation
  provisions applicable to external aid
• Commission must comply with the basic principles
  adhered to by the Union in the field of public
  contracts, particularly for the Directives
  Committee of Independent Experts

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Manual of Instructions
Project cycle phases

• Adopted by the Commission on 10/11/99 after 3
  years of consultations with the market and
  representatives of the EU Member States
• negotiated with Member States
• warmly welcomed by consultancy organisations
• commended by Transparency International

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Impact of Manual of Instructions
Project cycle phases

• Before
• 46 different contract procedures between the EC
  external aid programmes
• different Web sites with different presentations
  and information content
• After
• 8 contract procedures for all EC external aid
  programmes
• unique Web site

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EuropeAid Web site
Project cycle phases

• Allows consultants to search procurement notices
  by programme and type of contract
• Contract forecasts, procurement notices, Calls
  for Proposals, shortlist notices and contract
  award notices all published
• Initially 200,000 hits per month, now 800,000
  hits per month, making it the most heavily
  consulted Web site on the entire Europa server

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Practical Guide to EC external aid contracts
Project cycle phases

• Incorporates full text of Manual of Instructions
• Provides operational detail necessary to
  implement Manual of Instructions
• Annexes include standard tender dossiers,
  contracts, publication templates, Guidelines for
  Grant Applications and templates for letter to
  candidates and tenderers

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Contract award procedures - Service contracts
Project cycle phases

• ? 200,000
• International restricted tender procedure
• lt 200,000 but gt 5,000
• 1 Framework Contract
• 2 Simplified procedure
• ? 5,000
• Single tender

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Contract award procedures - Supply contracts
Project cycle phases

• ? 150,000
• International open tender procedure
• lt 150,000 but ? 30,000
• Local open tender procedure
• lt 30,000 but gt 5,000
• Simplified procedure
• ? 5,000
• Single tender

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Contract award procedures - Works contracts
Project cycle phases

• ? 5,000,000
• 1 International open tender procedure
• 2 International restricted tender procedure (in
  exceptional cases)
• lt 5,000,000 but ? 300,000
• Local open tender procedure
• lt 300,000 but gt 5,000
• Simplified procedure
• ? 5,000
• Single tender

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International tender procedure - Service contract
Project cycle phases

• Publish procurement notice
• Candidates submit applications
• Shortlist panel applies selection criteria
• Tender dossier sent to short-listed candidates
• Tenderers prepare and submit tenders
• Evaluation Committee examines tenders
• Award contract

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International tender procedure - Supply or works
contract
Project cycle phases

• Publish procurement notice
• Tender dossier sent to interested tenderers
• Tenderers prepare and submit tenders
• Evaluation Committee examines tenders
• Award contract

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Project cycle of a 2-year service contract
Project cycle phases
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Grants
How to award grants

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

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Grants
Award procedures

• Local Call for Proposals
• If one or more of the 4 conditions are not
  satisfied
• Direct Award
• Exceptional procedure to be used only in four
  specific cases
• objective of the grant programme
• special legal or technical characteristics
• running cost grants
• unforeseeable events (urgency)

• International Call for Proposals
• If 4 conditions are all satisfied
• programme budget is at least 2,000,000
• minimum grant is at least 100,000
• applications from other countries are likely
• programme is not restricted to national
  applicants

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Grants
Evaluation procedure

• Receipt and opening
• Administrative compliance
• Eligibility
• Evaluation of technical quality
• Recommendations
• Approval of final list

Signature of the contract

• Standard contract
• Derogations must all be individually endorsed
  by the EC
• No derogations global endorsement by the EC
• Modifications addendum

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Futures developments
Futures developments

• Application to EDF
• Standard financing decision financing agreement
• EC external aid Finance Guide Update
• Update of the Practical Guide
• CRIS Appel doffre
• Extensive Devolution