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EuropeAid

Lionel AtlanEuropeAid/02

Delegated cooperation

State of Play

(13 December 2011)

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EuropeAidSummary

1 Context

2 Definitions

3 Management modes

4 Delegation agreement prerequisites

5 “6 pillar compliance”

6 Figures

7 Balancing criteria

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EuropeAidContext

Aid effectiveness:

o Paris Declaration (2005) and Accra follow-up (2008); o European Consensus (2005); o Code of Conduct on Division of Labour (2007)

Principles:o Ownershipo Harmonisationo Alignment

Drivers: o Use of country systems and Division of Labour

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EuropeAidCode of Conduct on DoL (2007)

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. […]”

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EuropeAidDefinitions (1) – Who is doing what?

→ 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

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EuropeAidDefinitions (2)

• 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)

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EuropeAid

Management mode/Methods of implementation

executiveagencies

bodies set up byCommunities

"(tradit. agencies) "

bodies with a publicservice mission"(nat. agencies)"

centralisedjoint

(International

)

shared(MemberStates )

direct indirect

decentralised(Third

Countries)

The Commission may also manage funds received from other donors

Joint management

Inter. organisations

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EuropeAid

Overview – Management modeEntity Management

modeLegal

instrumentsProcedures for

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:

this modality refers only to the source of

financing

transfer agreement

Depending on management

mode defined in AAP (usually EC’s

procedures)

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EuropeAidDelegation agreement - prerequisites (1)

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

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EuropeAidDelegation agreement - prerequisites (2)

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

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EuropeAidDelegation agreement - prerequisites (3)

• 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;

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EuropeAid6-pillar compliance (1)

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

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EuropeAid6-pillar compliance (2)

• 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)

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EuropeAid

6-pillar compliance (3) 13. DED (July 2010)14. AusAID (January 2011)15. British Council (January 2011)16. FEI (March 2011)17. AECID (July 2011)

18. FIIAPP (August 2011)19. DBSA (September 2011)

• 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 (Swedish International Development Cooperation Agency)

o ADETEF (Assistance au Développement des Echanges des Technologies Economiques et

Financières)

• Donors from non EU third countries are accepted in exceptional and duly justified cases (AusAID and DBSA)

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EuropeAidState of Play – DA & TA

Delegation Agreements

(DA - signed or foreseen)

Transfer Agreements

(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

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EuropeAid

Geographical/thematic repartition (DA/TA)

Domain

Number of DA

foreseen or

signed

Value of DA

foreseen or

signed (€)

%  

Number of TA

foreseen or

signed

Value of TA

foreseen or

signed (€)

%

ACP(*) 44 219.2 M€ 45%   22 123 M€ 77%

OCT 7 65.9 M€ 14%   0 0 0%

Asia 7 41.6 M€ 9%   3 15.7 M€ 10%

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€     32 153 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€ 100%   36 159.2 M€ 100%

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EuropeAidSome key figures…(1)

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%

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EuropeAidSome other key figures…(2)

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

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EuropeAidFigures - delegation agreements by entity

State BodyNumber of DA

foreseen or signed

Value of DA foreseen or signed (€)

% of total

AT ADA 2 6.500.000 1%

BE CTB/BTC 6 22.672.684 5%

DEGIZ 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%

NLMoFA 0 0 0%

SONA 7 65.959.089 14%

PT IPAD 5 29.580.000 6%

UK DFID 9 45.400.000 10%

  Total EU 92 474.558.618 100%

ZA DBSA (South Africa) 1 12.000.000 3%

  Total other Donors 1 12.000.000  

  Grand total 93 486.558.618 100%

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EuropeAidFigures - Transfer agreements by entity (EU)

State BodyNumber 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%

DEGIZ

1 3.500.000 2%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%

NLMoFA

1 2.700.000 2%SONA

PL MoFA 2 760.000 0%

PT IPAD - - 0%

SE SIDA 5 29.495.450 19%

UK DFID 2 15.053.804 9%

  Total 32 143.636.226 100%

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EuropeAidFigures - Transfer agreements by entity (non- EU)

State BodyNumber of DA

foreseen or signed

Value of DA foreseen or signed (€)

% of total

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%

  Total 4 15.628.000 100%

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EuropeAidBalancing criteria (1)

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…

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EuropeAidRatio TA/DA for each eligible entity (on the basis of minimum 5 Delegation Agreements)

Body Number

of DA

Amount Number

of TA

Amount 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%

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EuropeAidBalancing criteria (2)

•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…