Delegated cooperation
EuropeAid
State of Play
(13 December 2011)
Lionel Atlan
EuropeAid/02
1
Summary
EuropeAid
1 Context
2 Definitions
3 Management modes
4 Delegation agreement prerequisites
5 “6 pillar compliance”
6 Figures
7 Balancing criteria
2
Context
EuropeAid
Aid effectiveness:
o
o
o
Paris Declaration (2005) and Accra follow-up (2008);
European Consensus (2005);
Code of Conduct on Division of Labour (2007)
Principles:
o Ownership
o Harmonisation
o Alignment
Drivers:
o Use of country systems and Division of Labour
3
Code of Conduct on DoL (2007)
EuropeAid
DoL Guiding Principle 4:
“ If a given sector is considered strategic for the partner
country or the donor, EU donors may enter into a delegated
cooperation / partnership with another donor and thereby
delegate authority to the other donor to act on its behalf in
terms of administration of funds and / or sector policy
dialogue with the partner government. […]”
4
Definitions (1) – Who is doing what?
EuropeAid
→ DELEGATION AGREEMENT
Management of funds entrusted by the European
Commission to delegated body from Member States (or
other third donor country) under the indirect centralised
management mode
→ TRANSFER AGREEMENT
Management of funds entrusted to the European Commission
by EU Member States, International Organisations and other
public donors
5
Definitions (2)
EuropeAid
• In both cases, the expression "Delegated cooperation" is
used
• For a transfer agreement, the main “constraint” is to
anticipate, because the amount has to be taken into account
in the Commission financing decision (and in the relevant
Action fiche)
• For a delegation agreement, there are also several
prerequisites (in addition to being mentioned in the relevant
Action fiche)
6
Management mode/Methods of
implementation
centralised
direct
shared
(Member
States )
decentralised
(Third
Countries)
EuropeAid
joint
Joint management
(International
Inter. organisations
)
indirect
The Commission may also manage
funds received from other donors
executive
agencies
bodies set up by
Communities
"(tradit. agencies) "
bodies with a public
service mission
"(nat. agencies)"
7
Overview – Management mode
Entity
Management
mode
1. Delegation
to
international
organisation
joint management
contribution
agreement
procedures of the
international
organisation
2. Delegation
to public or
private body
with a public
service
mission
indirect centralised
management
delegation
agreement
choice between the
EC rules or that of
the delegated
body
3. Delegation
to beneficiary
country
decentralised
management
financing
agreement
choice between the
EC rules, that of
the beneficiary
country or that of
other donor
4. Reception of
funds by
European
Commission
Defined in the AAP,
usually direct
centralised:
transfer
agreement
Depending on
management
mode defined in
AAP (usually EC’s
procedures)
this modality refers only
to the source of
financing
Legal
instruments
Procedures for
management
mode
EuropeAid
8
Delegation agreement - prerequisites (1)
EuropeAid
a) To be a national public-sector bodies or bodies governed by
private law with a public-service mission
b) To be « 6 pillar compliant » (according to the Financial
Regulation for EU General Budget / 10th EDF)
c) To comply with the following operational criteria
9
Delegation agreement - prerequisites (2)
EuropeAid
i. Bodies from Member States (EU 27);
ii. which operate at a national or federal level (i.e. no
regional or local authorities);
iii. which are specialised in technical or financial
development cooperation with beneficiary countries of
EC external assistance;
iv. which implement cooperation activities without
subcontracting entire programmes or projects to other
entities
10
Delegation agreement - prerequisites (3)
EuropeAid
• There are approximately 42 EU entities that could be
potential eligible partners for indirect centralised
management agreements under the above criteria;
• Donors from non EU third countries (such as the US,
Canada, Japan, etc.), which are also interested in engaging
in indirect centralised management with the Commission,
should only be accepted in exceptional cases and when
duly justified;
11
6-pillar compliance (1)
EuropeAid
1. Expression of interest by the donor’s body
2. Initial screening by EuropeAid services
3. External audit to assess the "existence and proper
operation" on the following “6 pillars”:
a.
transparent procurement and grant-award procedures;
b.
an effective internal control system for management of
operations;
c.
accounting system that enables the correct use of EU funds
d.
an independent external audit;
e.
public access to information at the level provided for in
Community regulations;
f.
adequate annual ex post publication of beneficiaries of
funds deriving from the budget
12
6-pillar compliance (2)
•
EuropeAid
19 organisations have already been assessed and
considered compliant (some with additional assessment to
be carried out within 12 months)
1. SONA (January 2008)
2. GTZ (February 2008)
3. BTC/CTB (March 2008)
4. ADA (March 2008)
5. AFD (April 2008)
6. KfW (April 2008)
7. IPAD (May 2009)
8. Lux-Development (May 2009)
9. NL MoFA (June 2009)
10. DFID (September 2009)
11. Finnish MoFA (December 2009)
12. DANIDA (December 2009)
13
6-pillar compliance (3)
13.
14.
15.
16.
17.
18.
19.
DED (July 2010)
AusAID (January 2011)
British Council (January 2011)
FEI (March 2011)
AECID (July 2011)
FIIAPP (August 2011)
DBSA (September 2011)
EuropeAid
• 4 organisations are still under assessment:
o IT MoFA (Ministry of Foreign Affairs of Italy)
o SIMEST (Societa Italiana per le Imprese al'Estero)
o
SIDA
o
ADETEF (Assistance au Développement des Echanges des
(Swedish International Development Cooperation Agency)
Technologies Economiques et Financières)
• Donors from non EU third countries are accepted in
exceptional and duly justified cases (AusAID and DBSA)
14
State of Play – DA & TA
EuropeAid
Delegation Agreements
Transfer Agreements
(DA - signed or foreseen)
(TA - signed or foreseen)
Financing
decision
DA
signature
Financing
decision
TA
signature
2006
1
0
0
0
2007
8
0
0
0
2008
7
4
6
3
2009
26
18
8
7
2010
31
14
16
6
2011
20
2
6
0
Total
93
38
36
16
15
Geographical/thematic repartition (DA/TA)
EuropeAid
Domain
ACP(*)
Number of
DA
foreseen
or
signed
44
Value of
DA
foreseen
or
signed
(€)
%
Number of
TA
foreseen
or
signed
219.2 M€
45%
22
Value of
TA
foreseen
or
signed
(€)
123 M€
%
77%
OCT
7
65.9 M€
14%
0
0
Asia
7
41.6 M€
9%
3
15.7 M€
Latin America
2
9.2 M€
2%
0
0
0%
Neighbourhood
South
7
61.4 M€
13%
7
14.2 M€
9%
Neighbourhood
East
2
10 M€
2%
0
0
0%
Total geographic
69
407.5 M€
Thematic
environment
10
46.5 M€
10%
4
6.1 M€
4%
Thematic food
14
32.4 M€
7%
0
0
0%
Total thematic
24
79 M€
4
6.2 M€
Grand total
93
486.5 M€
32
100%
36
0%
10%
153 M€
159.2 M€
100%
16
Some key figures…(1)
EuropeAid
Delegation Agreement (DA)
• DA average amount: 5.2 M€
• Average % of EC contribution: 44.1%
Transfer Agreement (TA)
• TA average amount: 4.4 M€
• Average % of EC contribution: 11%
17
Some other key figures…(2)
EuropeAid
Management fees
• DA: Average amount of fees paid to the donor by the
Commission is of maximum 7%;
• Most of the agencies apply this rate
• TA: Average amount of fees paid to the Commission is
of maximum 4% of the donor's contribution;
• In the case of budget support programmes, a smaller
rate (1.5% to 2%) is used
18
Figures - delegation agreements by entity
State
Number of DA
foreseen or
signed
Body
Value of DA
foreseen or
signed (€)
% of
total
AT
ADA
2
6.500.000
1%
BE
CTB/BTC
6
22.672.684
5%
GIZ
40
169.755.317
36%
KfW
3
9.500.000
2,0%
DK
DANIDA
3
19.950.000
4%
FR
AFD
15
94.741.528
20%
LU
LUX-Dev
2
10.500.000
2%
MoFA
0
0
0%
SONA
7
65.959.089
14%
PT
IPAD
5
29.580.000
6%
UK
DFID
9
45.400.000
10%
474.558.618
100%
DE
NL
Total EU
ZA
DBSA (South Africa)
Total other Donors
Grand total
92
1
12.000.000
1
12.000.000
93
EuropeAid
486.558.618
3%
100%
19
Figures - Transfer agreements by entity (EU)
State
Body
Number of DA
foreseen or
signed
Value of DA
foreseen or
signed (€)
% of
total
AT
ADA
5
4.000.000
3%
BE
CTB/BTC
6
25.830.000
16%
CY
MoFA
1
600.000
0%
CY
MoFA
1
200.000
0%
1
3.500.000
2%
DE
GIZ
KfW
DK
DANIDA
3
6.100.000
4%
ES
AECID
2
13.500.000
8%
EE
MoE
1
796.972
1%
FR
AFD
1
39.100.000
25%
LU
LUX-Dev
1
2.000.000
1%
1
2.700.000
2%
NL
MoFA
SONA
PL
MoFA
2
760.000
0%
PT
IPAD
-
-
0%
SE
SIDA
5
29.495.450
19%
UK
DFID
2
15.053.804
9%
32
143.636.226
100%
Total
EuropeAid
20
Figures - Transfer agreements by entity
(non- EU)
EuropeAid
State
Body
Number of DA
foreseen or
signed
AU
AusAID
1
3.600.000
2%
CH
DDC
1
2.000.000
1%
CA
MoFA
1
3.768.000
2%
JP
MoFA
1
6.260.000
4%
4
15.628.000
100%
Total
Value of DA
foreseen or
signed (€)
% of
total
21
Balancing criteria (1)
EuropeAid
EuropeAid has established a set of criteria seeking to
maintain a global adequate balance, which are regularly
monitored:
• Balance between delegation and transfer agreements
 at the global level and at the level of each entity
concerned, the total amount of transfer agreements
should be at least 50% of the total amount of
delegation agreements (provided there are sufficient
number of agreements: minimum 5)
 State of Play: At the global level, the TA/DA ratio is
currently of 33%. At the level of each entity, only 1
agency (BTC/CTB) meets the criterion so far…
22
Ratio TA/DA for each eligible entity (on the
basis of minimum 5 Delegation Agreements)
Body
Number
Amount
of DA
Number
Amount
of TA
EuropeAid
Ratio
TA/DA
CTB/BTC
6
22.6 M€
6
25.8 M€
114%
AFD
15
94.7 M€
1
39.1 M€
41%
DFID
9
45.4 M€
2
15 M€
33%
SONA
7
65.9 M€
1
2.7 M€
4%
GIZ
40
169.7 M€
1
3.5 M€
2%
23
Balancing criteria (2)
EuropeAid
• Balance between delegated entities
 the total amount of delegation agreements concerning a
particular entity should not exceed 33% of the total
amount of delegation agreements
 State of Play: This criterion is not met so far…
24