EU financial instruments for external actionw
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1 Laurea Magistrale in Scienze dello Sviluppo e della Cooperazione Internazionale Laboratory on EU COOPERATION PROJECT DESIGNING FOR COOPERATIVES IN DEVELOPMENT (3 cfu) within the JEAN MONNET CHAIR Rethinking the EU trade policy for development (REUTRADE) Ref: EPP IT-EPPJMO-CHAIR Academic Year EU financial instruments for external actionw With the support of the Erasmus+ programme of the European Union
2 Why the focus on EU? 1) It is the main funder for international cooperation 2) It elaborated procedures for programmes and project management & for opening call for proposals that have been taken as benchmarking by all other international cooperation donors 2
3 (EU Treaties TEU Chap I art 21 General provisions on the external action of the EU & TFEU Art 4. 4 & oth.) From Policies. to Projects EU Policies (es. ENP) At this level we can find the definition of the objectives pursued by the EU on a certain thematics. We must ensure that the General Objective of our project is consistent with that objective. Financial Instrument (es ENI) The EU dedicate a certain amount of resources for reaching each of the above Policies, defining the criteria for their management. The complex of all those financial instruments, plus the general costs, are the Budget of the EU. Programs (es. ENI CBC Med Programme) Here the specific priorities are defines, alongside with the schedule of the Call to be issued, the rules for the submission of proposals, etc Calls Calls for Tender & Calls for proposals Projects 3
4 EU Budget MULTIANNUAL FINANCIAL FRAMEWORK (2011 PRICE) 960 Billion Within each of those «Budget Heading», there are several Financial Instruments of different dimension, each created by an EU Regulation for responding to a specific policy. Smart & Inclusive Growth: Structural Funds (ERDF, ESF & cohesion fund) adddressing the Cohesion Policy, they are mainly managed by Member Countries and their Regions. Few Programmes in this area are directly managed by the European Commission (Horizon 2020, Inteligent Energy Europe) other are managed by agencies or regionsbut merely as Managing Authorities (Erasmus Plus, European Territorial Cooperation) Natural Resources: Market related expenditure = mainly the European Agricultural Guarantee Fund (EAGF) for direct payments to farmers Rural development = European Agricultural Fund for Rural Development (EAFRD) + European Maritime and Fishery Fund + Other Programmes directly managed by EC (LIFE +). EU Global Partner: External Action of the EU: European External Action Service & development cooperation. They are all directly managed by the European Commission (enven if in some cases the EC delegate National Ministries as Managing Autorities). 4
5 Something is «out of the budget» Other External Action EU Budget Total MFF Headings 1, 2, 3 and 5 of the MFF Heading 4 Global Europe 960bn 901,3bn (93,9%) 58,7bn (6,1%) Outside EU Budget Outside MFF: 36,8bn Emergency Aid Reserve, Flexibility Instrument, Solidarity Fund,.. European Development Fund (11 EDF) 30,5bn 5
6 Differences between Call for Tenders & Call for Proposals Call for Tender Call for proposals Work/Service/Supply Contract Grant Contract Object of the activities Detailed in the call Only the final objectives Winners Only one (single or in consortium) Normally more than one, up to the amount of available funds Funding rate 100% Bewteen 50% and 100% Generate profit for the winner? YES NO 6
7 Enterprise A EnterpriseB European Commission Managing Authority / Contracting Enterprise Agency Offers C Programme who manages it?? Issue a TENDER for Managing the Programme DG Devco/ EU Delegations/ Local Ministry/ EU Region (in particular for European Territorial Cooperation Programs & othe Programs with impact on EU territories (ex ENICbcMed) Tenders e/o Call for Proposals Offers/ Proposals NGO/Association 1 NGO/Association 1 NGO/Association 1 PROJECT 1 PROJECT 2 7
8 Watch out! Within the same project an organization can be at the same time beneficiary of a Grant Contract and Contracting actor demanding for a service/work/supply needed for the project implementation. In both cases a set of rules resumed in the PRAG are applicable. 8
9 Le PRAG All procedures concerning contracts within the EU External Action are codified into the PRAG : Practical Guide to Contract Procedures for EU External Actions. They concern all type of contracts: service, supply, works (awarded through call for tenders) and Grants (awarded through Call for Proposals) PRAG are periodically updated. Currently those of Jannuary 2016 are in force. There is an official E-learning course on the PRAG (for free): In addition to those general procedures, you must consider the norms of the Programme that funds your project and the Special Conditions set in the Grant Contract that you signed with the European Commission. As usual, specific norms prevail on general ones. 9
10 Timing: from few months uo to more than one year depending on the complexity of the Call. Phases of the participation to Call for Proposals Standard phases 1) Issuance of the Call 2) Sumbission of the Full Proposals (technical and financial) 3) Selection of the winners 4) Signature of the contract (official start of contract validity period) 5) Pre-financing 6) Start of the implementation period In some cases.. 1.a) Submission of Concept Note (open Call) 1.b) Selection of the best Concepts and invitation to submit the Full proposal 3.a) Negotiation (on budget or actions) 3.b) Request for integrative documents (if not submitted before) 4.b) Financial guarantee (normally when over and only for privates) 10
11 Timing: normally some months depending on the complexity of the Call. Phases of participation to Call for Tenders Standard phases 1) Opening of the Call for Tenders for Service/Work/Supplies or Framework contract 2) Submission of Proposal (technical and financial) 3) Awarding of the Contract 4) Signature of the contract (official start of the project) 5) Financial Guarantees 6) Start of the service/work implementation period In some cases.. 0.a) Forecast 1.a) Letter of Interest 1.b) Shortlisting (3-5 consultants) 3.a) Integrative admin documents In some Programs 0.b) Registration in the list of consultants for a specific Programme 0.c) Invitation / Shortlisting (3-5 consultants) 11
12 NEW FUNDING DELIVERY MECHANISMS for MFF (from CONCORD Guidelines on New trends in Europeaid funding) The EU s main funding mechanism is action grants, which are awarded through an open call for proposals. For both strategic and practical reasons, however, the EU has decided to diversify its funding mechanisms so it can reach the broadest possible range of civil society actors, including grassroots organizations and local CSOs. The EU institutions, however, are still in the process of defining how they will use some of these new mechanisms. Most have not yet been used widely enough for any major conclusions to be drawn on best practice. 12
13 REASONS FOR THE NEW MECHANISMS Structured Dialogue (with CSOs and LAs); The increased role of the EU delegations; Efficiency (granting procedures are time/money-consuming for the EU offices, expecially because of the increase of the number of applications); Simpler rules and shorter bureaucracy (time to wait between the date they apply and when they receive their contract and payment, es. for emergency). Warning: Fairness & Transparency (new mechanisms seems more suited to large organisations) Therefore: for the moment the new mechanisms are only derogations to the standard procedures. 13
14 Mainly to support humanitarian aid or emergency assistance. See the ramework contracts above. Supporting umbrella organisations. E.g. CooperativesEurope. Solitamente massimo ,00 To be specified within the eligibility criteria of the new Call for Proposals For CSO umbrella organisations, coalitions and networks. Little possibilities for in-kind (services or goods) Normally through standard Call for Proposals. from development finance institutions (FIs) as well as commercial loans and investment. In theory for encouraging Private sector intervention, in practices 14 up to date mainly used by Governments for additional fundings.
15 Framework Contract It is a Contract for a package of Work/Service/Supply that could be delivered to the Contracting Authority in different moments, according to its needs within a certain timeframe (up to 5 years normally). In the contract it is specified the typology of the Work/Service/Supply and the maximum amount that can be awarder, but the service/work/supply are actually only if and when the Contracting Authority demands them, detailing the request. The busget is therefore defined only in terms of maximum amount and rate per unit of Work/Service/Supply (e.g. rate for 1 working day of a senior expert). Normally there is not only one winner (usually in consortium), but a ranking of more winners, so that in case the first one is not in the condition to offer the service, the contracting authority can call the 15 second consortium.
16 Financial instruments for external action Development Cooperation Instrument (DCI) European Neighborhood Instrument (ENI, before 2014 «ENPI») Instrument for Pre-Accession(IPA) Specific Programmes (Democracy and Human Rights, Stability Programme, etc.) + European Development Fund (EDF) Targets African, Caribbean and Pacific (ACP) countries and overseas countries and territories (OCTs). It is considered out of the EU Budget (because negotiated with the ACP Countires and with different approval procedures) All funds respond to different objectives and the relative Policies, but all of them converge toward the «New European Consensus on Development» signed in June
17 NEW EUROPEAN CONSENSUS ON DEVELOPMENT It is a blueprint which aligns the Union's development policy with the 2030 Agenda for Sustainable Development. The SDGs! 17
18 18
19 EU Funds for External Action(DG Devco) Partnership Instrument European Instrument for Democracy & Human Rights Instrument for Stability Instrument for Nuclear Safety Cooperation Development Cooperation Instrument Thematic Programs Global Public Goods EDF (outside budget) European Neighbourhood Instrument Greenland Instrument Pre-Accession Instrument Non-State Actors & Local Authorities Pan-African Programme Geographic programmes Common Implementing Regulation except Greenland and EDF Fonte: DG Devco 19
20 Fonte: CONCORD Factsheet EU Budget. Proposta Commissione Europea. Non considera IPA e include fondi ECHO 20
21 Development Cooperation Instrument (1) I Amount Regions Bilateral Geographic Programmes 11,8 billions Asia, Central Asia, Latin America, Middle East & South Africa 27 Countries Regional 46 Countries (including the 27 above) 21
22 Geographic Programmes 22
23 Development Cooperation Instrument (2) II Amount Regions Thematics Thematic Programmes 7 billions All third Countriers and OCT, exepting industrialized Countris and IPA Countries. Global Public Goods and Challenges (Environment, Food Security, Energy, Human Development, Migrations) 5 billions _ Civil Society Organisations and Local Authorities (NSA-LA) 1,9 billions 23
24 Global Public Goods and Challenges 24
25 Development Cooperation Instrument (3) III Pan African programme Amount Regions Temathics 0,8 billions All Africa Supporting the Joint-EU Africa Strategy (trans-regional activities) 25
26 Future dynamics of DCI Concentration on priority sectors (few sectors for each country) More attention on Human Rights, Democracy and Governance Coherence among Programmes and with other EU Policies (Policy Coherence, vd EPA / trade agreements) Reinforce all joint Programmes with other donors (demonstration of interest of several donors, including beneficiary Countries) Geographican redistribution (higher on LDCs and lower to Latine America and Asia) No more bilateral programmes for higher-middle income countries and with Countriew whose GDP is > 1% of global GDP (India and China) 26
27 11th European Development Fund Within the framework the Cotonou agreements (2000, revised in previous Lomé Convention 1975): Specific National and Regional programs Intra-ACP and Inter-regional programmes Amount Regions EIB Investment Facility 30,5 billion Africa, Caribbean and Pacific & Overseas Countries and Territories 27
28 European Neighbourhood Instrument (ex ENPI) Programs Amount Regions - Bilateral - Multi-country (thematics) - Cross-Border-Cooperation CBC 15.4 billion 16 Med Countries, Eastern Europe, Caucaso e Middle East, + Russia (only for multi-countries and CBC). 28
29 Cross Border Cooperation CBC ENI CBC Sea Basin Programmes (Baltic, Black Sea, Mediterranean) ENI CBC Land Border and Sea Crossing Programmes 29
30 Features of the CBC 1) They adopt the co-development approach: you should have an impact both on the partner Countries and on the EU. 2) The dimension of the governance, legislative harmonization, peace and stability are emphasized. There are also some side ENI Programs supporting directly Authorities: TAIEX - Technical assistance TWINNING - Expertise exchange SIGMA - Government and management 30
31 Programs Instrument for Pre-Accession Amount 11.7 billions - Bilaterals - Multi-Country (thematics) - Cross-Border-Cooperation CBC (Adriatic CBC IPA) Regions Objective Countries Candidate to enter in the EU, or potential Candidate Countries. Social, ecocnomic and political support for reaching the Copenaghen criteria (aquis communautaire). Legislative harmonization, and regional integration. 31
32 Democracy and human rights (EIDHR) Thematics: Democracy Human rights & Fundamental freedoms Rule of law Election observations Amount Regions 1.3 billion All third Countries 32
33 Instrument contributing to Stability and peace (IcSP) I Crisis response II Crisis preparedness III Global & trans-regional threats Dotazione Regioni 2.3 billion Tutti i paesi terzi 33
34 Partnership Instrument (PI) Bilateral Programs Mukltilateral Programs Amount Regions 1.1 billion All third Countries, but mainly industrialized and emergent Countries. Objectives Global Challenges and interests of EU in the world. International dimension of the EU 2020 Strategy. 34
35 Instrument for nuclear safety cooperation (INSC) Nuclear Safety awareness Radioactive waste Safeguarding nuclear material Amount Regions billions All third Countries 35
36 Website for Europeaid Calls line-services/index.cfm?do=publi.welcome 36
37 Be careful in selecting the funding channel which is more suitable for your project objectives and idea! Sample of other sources of funding: European investment Bank (EIB) World Bank Group (IDA & IBRD) Privats Foundations (ex. Bill&Melinda Gates Fundation,..) Multilateral Funds & Programs (es. GEF, CEPF, STDF, etc) Other UN funds within UN Agencies Funds from national agencies of cooperation (AICS, USAID, AfD, GIZ, etc..) 37
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