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Introduction to External Aid and Project Cycle Management Valerie Bandeira de Lima Sax EuropeAid 11 June 2010. 1. External aid context. EU/EC aid history. 1950s - 1990s EC expansion of aid to ACP, Eastern Europe, Mediterranean, Asia, Latin America, Balkans and

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slide1

Introduction to External Aid and Project Cycle ManagementValerie Bandeira de Lima SaxEuropeAid 11 June 2010

external aid context

1

External aid context

eu ec aid history
EU/EC aid history

1950s - 1990s

EC expansion of aid to ACP, Eastern Europe,

Mediterranean, Asia, Latin America, Balkans and

birth of thematic instruments like human rights.

2000

Millennium Development Goals: halve extreme poverty and hunger by 2015.

2002

Monterrey

EU countries commit to reserve 0.7% GNI for

ODA.

eu ec aid history ctd
EU/EC aid history (ctd.)

2005

Paris Declaration on aid effectiveness

12 indicators for over 100 donors & partner countries.

2005

European Consensus on Development

Common vision, values & principles. Focus on poverty reduction and EU comparative

advantage

eu ec aid history ctd1
EU/EC aid history (ctd.)

2007

EU Code of Conduct on Division of Labour in

Development policy

2008

EU MDG Agenda for Action

sets key milestones

Accra Agenda for Action a wake-up call to achieve more radical action to meet aid effectiveness targets

Doha Conference confirmation of 0.7% GNI commitments by donors

2010

MDG Summit in New York

…and the impact of the different CRISES?

key aid figures at eu ec level

2

Key aid figures at EU & EC level

the ec and the external aid budget 2009
The EC and the external aid budget 2009

External aid: €12.3 bn(9%)

EuropeAid EDF fund: €3.5 bn (28%)

Non-EuropeAid Budget: €3.3 bn(27%)

Commission budget inside EU: €131 bn (91%)

EuropeAid Budget: €5.5 bn (45%)

EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, and Common Foreign and Security Policy (CFSP) aid. EC total budget includes European Development Fund (EDF).

eu and ec aid implementation
EU and EC aid implementation

EU the largest donor in the world

  • 27 + 1 donors together responsible for 56% of all development aid (2009: €48,2 bn)
  • USA provides 24%

European Commission on its own:

  • Second largest donor of development aid (13%, after USA)
  • Second largest donor of humanitarian aid
  • Present in aprox. 140 countries

Based on OECD/DAC preliminary figures 2010

eu and ec aid implementation1
EU and EC aid implementation

Budgetary constraints – EU ODA % of GNI: actual 2009, forecast 2010, objective 2015

2015

Source: EC data base on MS information to the EC or the DAC for 2009.

2009 europeaid performance geographic distribution of funds
2009 EuropeAid PerformanceGeographic distribution of funds

Without Thematic Programmes

ACP including South Africa, Bananas and Sugar

europeaid mandate
EuropeAid mandate

● since 2001 responsible forimplementing

external aid programmesacross the world

● aims todeliver development aid in an

efficient and effectiveway

● responsible for all the steps of an aid

delivery project:

 identification

 feasibility

 financial decisions & controls

 tendering

 contracting

 monitoring

 evaluation

europeaid does not work on its own
EuropeAid does not work on its own…

EuropeAid is part of the European Commission’sexternal relations family:

DG External Relations (RELEX)

DG Development (DEV)

DG Enlargement (ELARG)

DG Trade

EC’s Humanitarian Office (ECHO)

….and of course the fieldDelegations!

Will change with creation EEAS!

delegations
Delegations

Fullydevolved and regionalised Delegations

in countries receiving EC external assistance: 111. Staff in OPR. & F&C sections*: 2315

Delegations with international organisations

(e.g. UN, OECD)

Delegations with pre-accession countries

(e.g. Turkey)

Delegations with industrialised countries

(e.g. USA, Japan)

Total of aprox. 133…. and evolving

* Operational and Contracts & Finance sections of Delegations only.

slide18

Division of Labour at content level: HQ vs. Delegations

DEL: Identification & Design

HQ: Programming

HQ: Quality support; Coherence; Approval (funding decision)

HQ & DEL: Evaluation

DEL: Tender, CfP, Implementation, Monitoring

devolved implementation workflow
Devolved implementation workflow

PROGRAMMING

DESIGN

APPROVAL

IMPLEMENTATION

EVALUATION

Translates political and recipient country’s needs in

Strategic development objectives

Translates development objectives in

Achievable project and programme proposals

Translates proposals in

Financing decisions

Translates financing decisions in

Activities on the ground

Translates implemented activities in

Reports and feedback for future work

DEV / RELEX

DELEGATION

AIDCO

DELEGATION

AIDCO

DEV/RELEX design strategy

AIDCO contributes through country teams

AIDCO agrees through ISC

DEV/RELEX prepare COM decision

AIDCO sets targets DEL identifies actions

AIDCO coherence checks QSG

DEL designs activity, prepares financing proposal

AIDCO provides expertise

AIDCO quality checks financing proposal

DEV/RELEX agree through ISC

AIDCO prepares comitology and COM decision

AIDCO signs global commitment

DEL tenders, signs individual commitment, implements, reviews and pays

AIDCO provides expertise

DEL reports on activities

AIDCO checks ex post and reviews targets

DEL closes contracts

DEL audits and evaluates projects

AIDCO evaluates programmes, sectors, internal systems

AIDCO reports on global development work

Abbreviations: AAR Annual Activity Report; COM Commission; DEL Delegation; ISC Interservice Consultation; DAS Declaration d’Assurance; QSG Quality Support Group

the programme cycle

4

The programme cycle

cycle management division of labour

Programming

Identification

Evaluation & Audit

Formulation

Implementation

Commission Financing Decision

Cycle management – division of labour

DEV/RELEX

IF

QSG 1

Dels / AIDCO

ROM

AF

Dels / AIDCO

QSG 2

QSG: Quality Support Group

ROM: Results-Oriented Monitoring

IF : Identification Fiche

AF : Action Fiche

aid delivery methods
Aid delivery methods

Projects: series of activities aimed at bringing about clearly specified objectives within a defined timeframe and a defined budget. Use of donor procedures.

Sector budget support: money transfer to the national treasury of a partner country in support of a sector programme. Use of country procedures.

General budget support:largemoneytransfer to the national treasury of a partner country in support of a national development policy. Use of country procedures.

aid programmes implemented by europeaid eu delegations

5

Aid programmes implemented by EuropeAid & EU Delegations

europeaid s external assistance instruments
EuropeAid’s external assistance instruments

Geographical coverage

  • European Neighbourhood & Partnership Instrument

Mediterranean, Eastern Europe

  • Development Cooperation Instrument (DCI)

Asia, Central Asia, Middle East, Latin America, South Africa

  • European Development Fund

Africa, Caribbean, Pacific

Thematic coverage

  • Under DCI: Environment, gender, food security, migration / asylum, non state actors, local authorities, human safety, ACP sugar sector
  • Human rights and democracy instrument
  • Stability instrument
  • Nuclear safety instrument
  • Food Facility
european neighbourhood partnership instrument
European Neighbourhood & Partnership Instrument

Scope Country specific programmes

Cross border cooperation with EU Member States

Region 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East

Funding Average €1.6 billion per year

Examples Palestine, migration management in Ukraine

web http://ec.europa.eu/europeaid/where/neighbourhood/

development cooperation instrument 1
Development Cooperation Instrument (1)

Scope I Country specific programmes

Funding average € 1.4 billion p.a.

Regions Asia € 740 million

Latin America 380

South Africa 140

Central Asia 100

Middle East 70

Examples Primary education in India, Colombia Peace Labs, Institution building in South Africa, development of SMEs in Kazakhstan, rule of law in Iraq

web http://ec.europa.eu/europeaid/where/

development cooperation instrument 2
Development Cooperation Instrument (2)

Scope II Thematic programmes

Funding average € 800 million p.a.

Region all third countries

except industrialised / pre-accession

Themes Investing in people € 150 million

Environment 120

NSAs / local authorities 230

Food security 240

Migration / asylum 60

Examples HR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking

web ec.europa.eu/europeaid/what/human-social-development

10 th european development fund edf
10th European Development Fund (EDF)

Scope Based on Cotonou agreement:

Country specific programmes

Horizontal programmes

Region 78 African, Caribbean, Pacific countries and OCTs

Funding average €3.7 billion per year

Start July 2008

Examples primary education in Tanzania, HIV &

TB in Benin, psychosocial support in

Rwanda, vocational training in Niger,

infrastructure fund, etc.

web http://ec.europa.eu/europeaid/where/acp/

democracy and human rights eidhr
Democracy and human rights (EIDHR)

Scope Human rights

Democracy (election observations) Rule of law

Fundamental freedoms

Region all third countries

Funding average €160 million per year

Examples Rehabilitation of torture victims in Pakistan, support to Rwanda tribunal, fight against death penalty in China, promote indigenous peoples in Ecuador, election observation in Angola

web http://ec.europa.eu/europeaid/where/worldwide/eidhr/

instrument for stability
Instrument for Stability

Scope ICrisis response and preparedness (RELEX)

II Global and trans-regional border

challenges (EuropeAid)

Region all third countries

except industrialised countries

Funding average €290 million per year

Examples combating trafficking of radioactive material, fighting drug trade, mediation for peace

web http://ec.europa.eu/europeaid/where/worldwide/stability- instrument/

instrument for nuclear safety cooperation
Instrument for nuclear safety cooperation

Scope nuclear safety

radiation protection

Nuclear material safeguards

Region all third countries

except industrialised countries

Funding average €75 million per year

Examples promote nuclear safety in Soviet- designed reactors, improve mgt of radioactive waste

web ec.europa.eu/europeaid/where/worldwide/nuclear-safety/

food facility
Food Facility

Scope encourage producers to increase supply; deal with soaring food prices; increase food production capacity

Region mostly Sub-Saharan Africa, South-East Asia and Central America (total of 50 priority countries)

Funding average of over €330 million per year for a period of 3 years (‘09-’11)

V-Flex

Examples support small farmers to overcome soaring food prices in Bangladesh, socio- eco stability in the Comores

web http://ec.europa.eu/europeaid/how/finance/food-facility_en.htm

europeaid and crisis situations
EuropeAid and crisis situations
  • Crisis situations in aprox. 25 countries / regions; entails more flexible procedures
  • Haiti reconstruction
  • V-Flex
  • Tsunami aid
  • Recurrent difficulties working in regions like Afghanistan and Iraq
better aid quality assessment evaluation
Better aid: quality assessment & evaluation

 Quality feedback at design stage

Screeningof project ideas throughQuality Support

Groups – 99% of amounts screened in ’09

 Quality feedback at implementation stage

Results oriented monitoring – ROM

2009: 150 countries visited producing 1500+ reports

73% good performance, 6% major problems

 Quality feedback after projects end

In-depth evaluations ex-post

2009 findings include: good relevance and EC added value in regional programmes, but problems with sustainability and ownership

quality results oriented monitoring results
QualityResults oriented monitoring - results

Large majority of projects are performing well,

Slight improvement in 2009

aid effectiveness

7

Aid Effectiveness

europeaid action plan
EuropeAid Action Plan

Priorities based on Paris & Accra

Use of country systems: TC/PIU backbone strategy; budget support and decentralised management

Division of labour: fast tracking initiative, delegated cooperation if needed

Untying of aid: assessment; revision of reporting

Predictabilityand transparency: assessment; International Aid Transparency Initiative

Conditionality: assessment

slide54

Delegated cooperation in practice

Agreements signed & being implemented:

  • 25delegation agreements aprox. €101.8 mn
  • 11transfer agreements aprox. €79mn

Total pipeline of delegation & transfer agreements (signed + not signed):

  • 51delegation agreements aprox.€231.3 mn
  • 22 transfer agreements aprox. €138.9 mn
outlook until end 2010 and beyond

8

Outlook until end 2010 and beyond

ec challenges priorities in coming years
EC: Challenges & Priorities in coming years

The internal dimension

  • Do more with same number of staff

AIDCO Budget: over 20% more funds 2009-2013

AIDCO 10th EDF: aprox. 30% more funds

  • Better orientation towards results
  • Positioning of development cooperation towards the new External Action Service (EAS)
  • EU Budget revision 2014 – 2020
ec challenges priorities in coming years1
EC: Challenges & Priorities in coming years

The external dimension: CREDIBILITY

  • Policy Coherence: need to coherence at EC level
  • Define position towards Middle Income Countries
  • Continue to deal with impact of crises
  • Contribution to Climate Change agenda
  • Observe status of 0.7% contributions by MS
  • Oversee implementation of EU policies on 2015 MDGs