International Federation of Consulting Engineers
Ines Ferguson
Chair of the European External Aid Committee - EFCA
FIDIC MDB Harmonised Construction Contract Conference
INDEX
1.
An evolving European External Aid
2.
EFCA’s European External Aid Committee this year
3.
A look into the future of European External Aid
4.
Conclusions
5.
EEA Committee main challenges
FIDIC MDB Harmonised Construction Contract Conference
1. An evolving European External Aid
The EU is the world’s leading donor..
with 53.8 billion € in 2010 (EC + MS), representing 50% of all ODA.
The European Commission implements 20% of the EU ODA acting as
coordinator, convener and policy-maker.
Goals of European External Aid:
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Reduce poverty through inclusive and sustainable development
Focus on Results
Strengthen partner ownership and mutual accountability
Promote European values - human rights, democracy, rule of law, good
governance, gender equality, solidarity, social justice and multilateral
action.
Increase Aid Effectiveness and its impact
FIDIC MDB Harmonised Construction Contract Conference
1. An evolving European External Aid
.. In a rapidly changing international context:
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Graduation: increasing standards of living in emerging economies
New actors in development: private sector, foundations, emerging donors,
local authorities, etc.
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Population growth: 9.3 billion in 2050. Fastest growth in Africa.
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“Arab Spring” and the importance of good governance and democracy
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Global Crises: financial, food & oil
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Strong growth with weak impact in poverty reduction
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Economic downturn and budget constraints in EU Member States
FIDIC MDB Harmonised Construction Contract Conference
1. An evolving European External Aid
To increase aid effectiveness and “do more with less”: new structure,
policies, financial instruments & management modalities
Set out in a series of EC communications, statements, declarations and
action plans over the past years:

Agenda for Change: increasing the impact of EU Development Policy
(2011)
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Backbone Strategy: Technical Cooperation Reform (2010)
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Lisbon Treaty: European External Action Service – EEAS (2009)

Accra Agenda for Action: Enhanced Division of Labour (2008)

Paris Declaration on Aid Effectiveness (2005) …
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1. An evolving European External Aid
EC
Significant changes
Structure
•
Policy
•
Instruments
•
Management
Modes
DG DEV+DG Europeaid = DG DEVCO to optimise resources
• EEAS to reinforce decentralisation
Increased donor coordination (mainly EU MS) and
concentration in countries/sectors (Division of Labour)
Financing: Blending, trust funds, budget support
• Technical: cooperation agreements, twinning
Indirect centralised, joint, shared (other donors, incl. MS)
• Decentralised (partner country)
•
Sectors
•
Multiplier effect: sustainable agriculture & renewable energy
• Regional integration, trade, infrastructure, environment
Regions
•
Neighbourhood countries + Sub-Saharan Africa
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2. EFCA’s European External Aid Committee this year
More visibility to the EC
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Meetings with EuropeAid on the main changes to the PRAG;
EFCA Position Papers to EC public consultations:“Assessment of Experts on
Service Contracts under EU External Actions” (Jun. 2011) and the “Revised
PRAG 2012” (Jun. 2012);
EC-EIC-EFCA Roundtable on EDF Contracts (Mar. 2012);
Better understanding of EC reforms affecting our industry

EuropeAid Technical Cooperation Reform presentation during Committee
meeting;
Policy in addition to Procurement Issues
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General Statement on the Industry (under preparation);
Policy Papers on New Financing Instruments & Delegated Management from
the companies’ perspective (under preparation).
FIDIC MDB Harmonised Construction Contract Conference
2. EFCA’s European External Aid Committee this year
Extended Mandate
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To other EU Institutions involved in Development, namely EIB, EBRD, CEB &
others of Member States (Jan. 2012)
Increased Coordination FIDIC-EFCA
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Convey concerns of EU firms in MDB-funded contracts through FIDIC;
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Participation of FIDIC’s Managing Director in EEA Committee Meetings;
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Joint FIDIC-EFCA visit to EBRD in Feb. 2012. New mandate for MEDA
Countries: Morocco, Tunis, Egypt and Jordan;
Next EEA Committee meeting coinciding with the FIDIC-MDB Conference in
Brussels, Jun. 2012
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3. A look into the future of European External Aid
Multiannual Financial Framework 2014-2020
More Aid in fewer sectors (concentration: 3 sectors maximum)
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Graduation: 17 Upper Middle Income Countries (Argentina, Brazil, Chile,
China, Colombia, Costa Rica, Ecuador, Kazakhstan, Iran, Malaysia, Maldives,
Mexico, Panama, Peru, Thailand, Venezuela and Uruguay) and 2 large Lower
Middle Income Countries (India, Indonesia) will benefit of new partnerships not
based on bilateral aid.
Growing use of innovative financing instruments with international financial
institutions, the EU funds acting as a catalyst for leveraging investment in
infrastructure.
FIDIC MDB Harmonised Construction Contract Conference
3. A look into the future of European External Aid
EU External Aid budget 2014-2020: 96.2 billion €
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European Development Fund (EDF, outside EU Budget): € 34,276 million
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Development Cooperation Instrument (DCI): € 23,295 million
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European Neighbourhood Instrument (ENI): € 18,182 million
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Pre-accession instrument (IPA): €14,110 million
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Instrument for Stability (IfS): € 2,829 million
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European Instrument for Democracy & Human Rights (EIDHR): € 1,578 million
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Partnership Instrument (PI): € 1,131 million
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Instrument for Nuclear Safety Cooperation: € 631 million
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Instrument for Greenland: € 219 million
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3. A look into the future of European External Aid
Revised PRAG 2012
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Extending the use of global price contracts
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Notification of tender evaluation results will be quicker
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Documentary proof of prequalifying references to be submitted with the
tender
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Change of Key Experts: finding a replacement in 15 days

Ensuring the availability of evaluators in the Tender Evaluation Committee
A Position Paper on the Revised PRAG 2012 is being prepared in reply to a
public consultation (Jun. 2012)
New PRAG in line with the new financial regulations 2014-2020 will be ready in
early 2013.
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4. Conclusions
•
More Aid with an increasing use of new financing instruments
•
Accelerated Division of Labour – other donors’ procurement systems
•
Concentration - appointment of leading donors per country/sector
•
Increasing use of budget support - use of country procurement systems
•
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More actors in development: growing relevance of CSOs and Local
Authorities
Focus on local capacity building
FIDIC MDB Harmonised Construction Contract Conference
5. EEA Committee’s main challenges
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Defending the importance of European consulting engineers’
professional services in EU External Aid projects & programmes: best
practice, quality services, budget control, capacity building, contribution
to sustainable growth in partner countries.
Increasing our visibility in EU institutions as relevant partners in
Development.
Improving contract conditions for Consulting Engineers working in
Development, ensuring transparency and equal opportunties in all
actions funded or financed with EU External Aid.
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THANK YOU
Ines Ferguson
Chair of EFCA European External Aid Committee
iferguson@typsa.com
www.typsa.com