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International Federation of Consulting Engineers. Ines Ferguson Chair of the European External Aid Committee - EFCA. FIDIC MDB Harmonised Construction Contract Conference. INDEX. An evolving European External Aid EFCA’s European External Aid Committee this year

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slide1
International Federation of Consulting Engineers
  • Ines Ferguson
  • Chair of the European External Aid Committee - EFCA
index
FIDIC MDB Harmonised Construction Contract ConferenceINDEX

An evolving European External Aid

EFCA’s European External Aid Committee this year

A look into the future of European External Aid

Conclusions

EEA Committee main challenges

1 an evolving european external aid
FIDIC MDB Harmonised Construction Contract Conference1. 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:
  • 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
1 an evolving european external aid1
FIDIC MDB Harmonised Construction Contract Conference1. An evolving European External Aid
  • .. In a rapidly changing international context:
  • Graduation: increasing standards of living in emerging economies
  • New actors in development: private sector, foundations, emerging donors, local authorities, etc.
  • Population growth: 9.3 billion in 2050. Fastest growth in Africa.
  • “Arab Spring” and the importance of good governance and democracy
  • Global Crises: financial, food & oil
  • Strong growth with weak impact in poverty reduction
  • Economic downturn and budget constraints in EU Member States
1 an evolving european external aid2
FIDIC MDB Harmonised Construction Contract Conference1. 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)
  • Backbone Strategy: Technical Cooperation Reform (2010)
  • Lisbon Treaty: European External Action Service – EEAS (2009)
  • Accra Agenda for Action: Enhanced Division of Labour (2008)
  • Paris Declaration on Aid Effectiveness (2005) …
2 efca s european external aid committee this year
FIDIC MDB Harmonised Construction Contract Conference2. EFCA’s European External Aid Committee this year
  • More visibility to the EC
  • 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
  • General Statement on the Industry (under preparation);
  • Policy Papers on New Financing Instruments & Delegated Management from the companies’ perspective (under preparation).
2 efca s european external aid committee this year1
FIDIC MDB Harmonised Construction Contract Conference2. EFCA’s European External Aid Committee this year
  • Extended Mandate
  • To other EU Institutions involved in Development, namely EIB, EBRD, CEB & others of Member States (Jan. 2012)
  • Increased Coordination FIDIC-EFCA
  • Convey concerns of EU firms in MDB-funded contracts through FIDIC;
  • Participation of FIDIC’s Managing Director in EEA Committee Meetings;
  • 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
3 a look into the future of european external aid
FIDIC MDB Harmonised Construction Contract Conference3. A look into the future of European External Aid
  • Multiannual Financial Framework 2014-2020
  • MoreAid in fewer sectors (concentration: 3 sectors maximum)
  • 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.
3 a look into the future of european external aid1
FIDIC MDB Harmonised Construction Contract Conference3. A look into the future of European External Aid
  • EU External Aid budget 2014-2020: 96.2 billion €
  • European Development Fund (EDF, outside EU Budget): € 34,276 million
  • Development Cooperation Instrument (DCI): € 23,295 million
  • European Neighbourhood Instrument (ENI): € 18,182 million
  • Pre-accession instrument (IPA): €14,110 million
  • Instrument for Stability (IfS): € 2,829 million
  • European Instrument for Democracy & Human Rights (EIDHR): € 1,578 million
  • Partnership Instrument (PI): € 1,131 million
  • Instrument for Nuclear Safety Cooperation: € 631 million
  • Instrument for Greenland: € 219 million
3 a look into the future of european external aid2
FIDIC MDB Harmonised Construction Contract Conference3. A look into the future of European External Aid
  • Revised PRAG 2012
  • Extending the use of global price contracts
  • Notification of tender evaluation results will be quicker
  • Documentary proof of prequalifying references to be submitted with the tender
  • 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.
4 conclusions
FIDIC MDB Harmonised Construction Contract Conference4. 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
  • More actors in development: growing relevance of CSOs and Local Authorities
  • Focus on local capacity building
5 eea committee s main challenges
FIDIC MDB Harmonised Construction Contract Conference5. EEA Committee’s main challenges
  • 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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