PREPARING CANDIDATE COUNTRIES FOR ACCESSION TO THE EU INSTITUTION BUILDING A REFERENCE MANUAL ON "TWINNING" PROJECTS

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1 PREPARING CANDIDATE COUNTRIES FOR ACCESSION TO THE EU INSTITUTION BUILDING A REFERENCE MANUAL ON "TWINNING" PROJECTS REVISED VERSION FEBRUARY 2002 This Twinning manual aims to provide the most practical and comprehensive information available to those individuals involved in the preparation and execution of Twinning projects. Clarifications of implementation rules may apply to earlier covenants, where appropriate or be subject to prior agreement with the CFCU. The manual also provides background information on Twinning and puts Twinning into the context of the European Union's pre-accession strategy. The entire manual and additional information on Twinning, Phare and related issues can be found on the European Commission's "Europa" Internet site under the address 1

2 KEY TERMS USED CC MS NCP CFCU PAA Practical Guide to Phare, ISPA and SAPARD (PRAG) SC Twins Twinning Covenant Candidate Country: for the purpose of this manual it includes countries eligible for support, i.e. Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. Cyprus and Malta will also be availing themselves of assistance from the MS through Twinning under their respective financing instruments. In the medium term, Twinning will be made available to Turkey. Member State of the European Union. National Contact Point for Institution Building. There is a designated person in each of the MS and CC who is the first point of contact for Twinning activities involving that country. Central Financing and Contracting Unit Structure within the beneficiary country Ministry of Finance, responsible for contracting and disbursing Community funds for Institution Building Pre-Accession Adviser: Individual (usually a civil servant) from a MS administration who works in the CC on a full-time basis for at least one year. This document is in force since 1/1/2001 and can be down-loaded from the EuropeAid Co-operation Office s web site. ( It lays down the rules for procurement of goods and services funded by the pre-accession instruments. They apply also to commercial inputs in Twinning projects, unless otherwise specified Steering Committee: Committee made up of Commission services which gives final approval to Twinning covenants. Refers to the lead MS and CC, which sign the Twinning Covenant. Legal document signed by CC and MS which commits both parties to achieving the results described through the implementation of a detailed work programme. 2

3 MAIN REVISIONS TO TWINNING MANUAL SINCE JUNE 2001 (UP TO FEBRUARY 2002) 3.3 Eligibility of potential Twinning partners IMPORTANT REVISIONS : Mandated bodies have to be approved by the Commission before presenting proposals Induction/training for PAAs New! Costs for travel and per diems for training at Commission HQ in Brussels 5.10 Equipment No more working tools (computers etc) for PAAs 5.11 Private sector subcontractors Audit costs 6.4 Project reporting requirements New! Quarterly financial reports Tacit approval of reports after 1 month 7.2 Payment procedures New! Applicable as of 1 March 2002! Bigger advance payment, total advances capped at 80% Annex A: Procedures for Twinning light Annex E1, point 4 Deadlines for presentation of proposals and finalisation of contract extended to 6 weeks each IMPORTANT CLARIFICATIONS : Limit of 2 tours of duty for PAAs 3.2 Call for proposals Eligibility of incomplete proposals 3.6 Drafting of the Twinning Overview of timeline from selection covenant notification to projects becoming operational 3.5 Selection of the Twinning Request to CCs for feedback on MS Partners proposals 5.9 Translation and interpretation Procedures for recruitment and contracting of Project Assistant Documentation in Support of Clearer explanation, audit certificate Invoices 3

4 TABLE OF CONTENTS PREAMBLE 9 PART A THE GENERAL APPROACH 10 Section 1: Introduction Context and Overall Objective Twinning as an Instrument for Institution Building EU Funding for Twinning 13 Section 2: The Components of a Twinning Project The Fundamental Basis of all Twinning projects The Project Leader and Pre-Accession Adviser The Twinning "Work Schedule" Role of the Candidate Countries Role of the Member States Role of the Commission Role of the CFCU 19 PART B PREPARATION OF TWINNING PROJECTS 20 Section 3: Process of Project Preparation Needs Identification and Programming Call for proposals Eligibility of Potential Twinning Partners Member State consortia Selection of the Twinning Partners Drafting of the "Twinning Covenant" Approval of Financing Signature of the Twinning Covenant Endorsement and Notification of the Twinning Covenant 29 Section 4: Detailed Project Design (Drafting the Covenant) Designing the Project to Achieve "Guaranteed" Results Benchmarks, Timeframes, Duration & Risk Analysis Deciding Project Management responsibilities Projects involving a Consortium of MS Inputs of CC (Staff & Infrastructure) Inputs of MS (Staff) Management & Accounting Translation & Interpretation Seminars, Training, Traineeships & Workshops Intangible Inputs 40 4

5 4.11 Project Presentation 40 Section 5: The Twinning Project Budget The Project Budget Global envelope Content of the budget Eligible costs Structure of the budget Reimbursement of costs arising during the preparation of the covenant Drafting the covenant Induction/Training of PAAs Pre-Accession Advisers General principles Staff Categories and rates of reimbursement Project Leader, Short & Medium Term Expert Inputs Intangible supplies and provision of services Travel & Per Diem Travel Per Diem Reserve for adjustment of prices Training and Seminars Training in the CC Trainee/internships in the MS Flat rate compensation Principle Beneficiary Budget presentation Translation and Interpretation Equipment Private Sector Sub-Contractors Twinning Costs not covered by the EU 55 PART C IMPLEMENTATION OF TWINNING PROJECTS 56 Section 6: General Management of the Twinning Project Timing and deadlines Management by the Project Leaders Monitoring (Role of the Commission Delegation) Project Reporting Requirements Evaluation Non-budgetary changes to a Twinning covenant Termination Termination of PAA secondment Termination of the Twinning project 63 Section 7: Financial Management and Control General Principles Payment Procedure 65 5

6 7.3 Endorsement by the Beneficiary of Services Rendered and Documentation in Support of Invoices Endorsement by the Beneficiary of Services Rendered Documentation in Support of Invoices Private Sector Inputs: tendering, procurement and contracting Flexibility and Reallocation of the Twinning Budget General rules Procedures Reallocation of appropriations by project leaders (MS and CC), without prior approval by the Commission and the CFCU Reallocation of appropriations by the project leaders requiring prior approval by the Commission and the CFCU Use of Reserve Audit 72 Section 8: Other Issues Languages Troubleshooting Acknowledgement of Funding Source 74 6

7 PART D - ANNEXES A. Procedures for Twinning light B. Standard text of the Framework Agreement between the Commission and Member States, revised May 2001 (only on Website) C. The Twinning Covenant The Complete Document The Covenant itself: Purpose and objectives of the Twinning project Organisation, methods and timetable Breakdown of costs and recipients of funds Staff lists, CVs, bodies involved Final provisions Annex A: General Provisions Annex B: Budget Execution and Payment Procedures for the EU contribution Annex C: Reporting Annex D: Mandates to the lead MS from partner MS included in a consortium E. Pre-Accession Advisors Detailed Terms and Conditions E1 General Provisions E2 E2 Remuneration of PAAs E7 E3 Housing E10 E4 Health and Accident Insurance E14 E5 Schooling E16 E6 Travel Costs E7 Removal Costs E20 E8 Leave Entitlement E24 E9 Fiscal Situation of PAAs E25 F. Templates F1 F2 F3 F4 F5 F6 Standard project fiche Model Twinning proposal for partnership Oral presentation of MS proposal for partnership Request for advance/invoice Certificate Study visit Template for reallocation of budget G. Miscellaneous G1 G2 G3 Steering Committee Evaluation Criteria Interpretation Translation Co-ordination Units 7

8 H. Contact Points H1 H2 H3 H4 Commission (Brussels) Contact Points Commission (Delegations) Contact Points National Contact Points in Member States National Contact Points in Candidate Countries 8

9 PREAMBLE The "Twinning" instrument is designed to address a particular set of circumstances; a number of countries, which strive to become Member States of the European Union, are creating or adapting their administrative and democratic institutions to comply with membership requirements. To define institutions is by definition subject to State sovereignty. The present Member States respect the Union's legislation in a variety of ways; they can help the candidate countries to do the same, but without imposing any particular choice of system. Given the aim of the candidates to become full members as soon as possible, an exchange of academic views on legal principles without reference to their practical application would be futile. This is why Twinning projects for Institution Building are based on a small number of basic principles, which sometimes differ from standard Commission practice: 1. The candidate countries choose their Member State co-operation partners autonomously and freely; 2. Twinning projects must yield a concrete, operational result in terms of the candidate country meeting a requirement in connection with Community rules; 3. The signatories of Twinning covenants commit themselves to the result, and not only to the means to achieve them. At the end of the project a new or adapted system must function under the sole responsibility and means of the candidate country; 4. Twinning is not a one-way delivery of technical assistance from a Member State to a candidate country. It is a joint project covering a process, in which each partner takes on responsibilities; the candidate country commits itself to undertaking and funding reforms, the MS to providing assistance to the process for the duration of the project. 5. To underpin the credibility of their commitment, the Twinning partners draft a detailed work plan, before starting work. It may be adapted in the course of its implementation, but it must fix clear benchmarks to allow for close monitoring of progress towards the final result. The only purpose of these simple principles is to ensure efficient progress, and ultimately the early accession of the candidate countries to the Union. Some special rules are necessary to take account of the particular nature of Twinning; specifically, the absence of calls for tender and the freedom of choice by the beneficiary makes it necessary to find other means of controlling the costs which may legitimately be borne by the programme. This manual describes the rules and procedures particular to Twinning funded by EU funds. Where no particular rule is specified, the general rules for the preaccession financing instruments apply. 9

10 PART A THE GENERAL APPROACH 10

11 Section 1: Introduction 1.1 Context and Overall Objective In July 1997, the European Commission published its Agenda 2000 proposals on enlargement, policy reform and future financing of the EU. In Agenda 2000, the Commission proposed to bring together the different forms of pre-accession support provided by the Union within a single framework, the Accession Partnerships. The Accession Partnerships are designed to help prepare the CC to meet fully the criteria set by the Copenhagen European Council for membership: stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; the existence of a functioning market economy, as well as the capacity to cope with competitive pressure and market forces within the Union; the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union. A key element of this pre-accession strategy is preparing CC for their tasks in adopting the acquis communautaire i.e. the Institution-Building process. These countries must establish a modern, efficient administration and institutions that are capable of applying the acquis to the same standards as the current MS. 1.2 Twinning as an Instrument for Institution Building Twinning is an initiative of the European Commission to assist CC in acquiring the independent capacity to adopt, implement and enforce the full acquis in accordance with Agenda 2000, before accession to the European Union. The CC eligible for assistance under this initiative are: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia. Cyprus and Malta will also be seeking to establish Twinning partnerships with MS, drawing on their respective financing instruments. In the medium-term, also Turkey will be following the same path. Twinning can be applied to all sectors of the acquis communautaire in the narrow and wider sense, provided the expertise required is located in the public domaine. Twinning will involve precise, timed and budgeted work programmes. 11

12 Secondment of long term MS experts to CC administrations will form the backbone of Twinning projects. These long-term experts are called Pre- Accession Advisors (PAAs). To achieve its objectives, a Twinning project will also need various other short-term specialist inputs. Following the completion of Twinning projects, the CC are expected to be able to meet the requirements deriving from the relevant Community acquis. In some cases, one Twinning project may not be sufficient to achieve this goal, and a series of projects may be required to achieve full compliance with the relevant obligations. However, this in no sense diminishes the need for each individual project to have clearly defined goals and a precise, timed and budgeted work programme for their achievement. Twinning is the main instrument by which CC s capacity to implement and enforce the acquis is developed. Twinning activities are ideally suited to projects with the following features: - the goal is relatively clear, i.e. the CC has a good understanding of the relevant part of the acquis, and has selected the type of system it intends to adopt; - sufficient political will exists in the CC to create the best possible conditions for drafting and adoption of the relevant legislation; - sufficient CC commitment exists to ensure that the required resources (financial, Human Resources) are mobilised in the context of a Twinning project. If a CC is lacking any point of reference for the development of a specific sector, there may be a case for traditional Technical Assistance in order to help better define the options for reform. For example, there are at least two quite different types of real estate registry systems in use in MS. One system requires a map based on very detailed measurements made on the ground, for this map is in itself considered sufficient proof of boundary lines. Another system allows the use of aerial photography, less accurate, which only supports the land ownership established by a legal text. Before a Twinning project can begin to develop a system for the registration of real estate, and for instance starts an aerial photography exercise, the CC must already have decided which model it wants to adopt. After Twinning, CC organisations must be: fully functioning; efficient; sustainable and properly funded from the CC budget. 12

13 1.3 EU Funding for Twinning Support for CC by the European Union is mainly provided through the Phare programme as adopted in Council Regulation (EEC) No 3906/89 of 18 December 1989 and subsequent amendments. In respect of Cyprus and Malta, funding is derived from the dedicated financing instruments. As part of its preparation for the accession of new members, the Commission decided in 1997 to re-orient its assistance. The most important policy change was the move to a much clearer focus on accession, with programmes being shaped in accordance with the priorities encapsulated in the Accession Partnerships. Accordingly, approximately 30% of the annual budget is to be used for strengthening institutions that are key to accession. Within this institution building part of the budget, Twinning is one of a limited number of instruments that are eligible for support. 13

14 Section 2: The Components of a Twinning Project 2.1 The Fundamental Basis of all Twinning projects A Twinning project is NOT designed to provide only advice or other types of classical technical assistance. It is a complex project in a specific field that must yield GUARANTEED RESULTS. A Twinning project is NOT one-way Technical Assistance from MS to CC. It is a close partnership in which the specific commitment of the beneficiary, who is also the driving force behind the changes targeted, is vital. At the completion of a Twinning project, the applicant country should have developed an efficient, working organisation enabling it to properly fulfil its Community obligations. The aim of Twinning is therefore to arrive at a fully operational outcome in a particular field. Achieving this aim calls for long and thorough co-operation between CC and MS, bringing into play whatever actions are required to achieve the desired results. 2.2 The Project Leader and Pre-Accession Adviser In all Twinning projects, success in delivering a guaranteed result will depend on the coherence of a number of successive inputs, the continuity of those inputs and steady progress. Every Twinning project will therefore include a Project Leader, who continues to work in his/her MS administration but who devotes some of his/her time to conceiving, supervising and co-ordinating the overall thrust of the project. S/he will always be complemented by at least one full-time expert, known as a Pre-Accession Advisor (PAA), from an MS to work on a day-to-day basis with the beneficiary in the CC and accompany the implementation of the Twinning project. PAAs will be civil servants or equivalent staff seconded to work and be based in the CC for at least twelve consecutive months. The rights and obligations for PAAs are detailed in annex E. 14

15 2.3 The Twinning "Work Schedule" Most Twinning projects call for the co-ordinated deployment of a variety of means. These may also include traditional Technical Assistance, in cases where specific expertise can best be provided by private operators, e.g. public information campaigns, software development. See 5.11 on private sector subcontracting and 7.4 for details of tendering, procurement and contracting. The various means deployed in pursuit of a given outcome together form a Twinning Work Schedule. This includes all actions undertaken by the CC to reform its legislation and institutions, supported by: full-time long-term secondments of MS practitioners (PAAs); missions (short term, medium term) by specialised experts; seminars, workshops, trainee/internships, training, and training of trainers, ; intangibles software, documentation etc; other services considered necessary to ensure the success of the project. The work schedule details all the actions necessary to achieve the desired outcome, the order in which they must take place and the person responsible for each one. Inputs include work carried out by the CC (e.g. in passing appropriate legislation) and whatever technical assistance, training and know-how the MS may provide. Most emphasis should be placed on the reforms to be introduced by the CC, which will be crucial to the success of the Twinning project and the achievement of the desired outcome. Accordingly, preparing a work schedule will depend on finding the necessary outside know-how and, still more, on making a realistic assessment of the CC's capacities and commitment to reform. For example, introducing VAT in a country where it does not yet exist requires the development, introduction and enforcement of legal and fiscal legislation and rules for company accounts and invoicing. It also requires suitably organised tax and Treasury departments, appropriate administrative computerisation, with new software, specialised training for the public servants that will have to make the system work, and a general information programme for the public. None of the actions undertaken within a work schedule can be considered an end in itself. They will not be funded through a Twinning project unless they serve a specific purpose and directly contribute to achieving the required outcome. 2.4 Role of the Candidate Countries Twinning only makes sense if the CC is fully determined to carry out the reforms and reorganisation needed to adapt itself to the acquis communautaire in accordance with the priorities set in the Accession Partnerships. Twinning activities are best suited to projects where the goal is relatively clear in certain 15

16 cases, it might be more appropriate traditional Technical Assistance to be used in order to define the options for reform before proceeding to a detailed Twinning project. The CC is committed at a number of levels: the CC authority responsible for the Accession Partnership regularly informs its own administrations and the Commission of the areas in which Twinning is possible and desirable; CC administrations work with the Commission to develop specific Twinning projects in the context of the programming exercise; CC is committed to the implementation of Twinning projects to achieve the results required. This commitment includes both high level political commitment and a more practical commitment of CC human and financial resources. For each Twinning project, the CC concerned must contractually commit itself to achieving the results required. The formal commitment made by a CC will be in the form of a "Twinning Covenant" (see section 3.6). This constitutes the contractual framework for implementing the Twinning project and specifies the obligations of both the MS and CC. A Twinning work schedule is therefore more than just a list of the services to be provided by one or more MS to the CC. It must also, and primarily, set out the domestic tasks, which will, throughout the process, enable the CC's agencies and departments to reform, or even create, themselves. The CC must therefore include in the Twinning Covenant details of the departments or bodies concerned, the official(s) responsible for the changes to be made and for achieving the desired outcome, availability of appropriate office space and logistic, the budgetary resources to be mobilised and the timetable for the work it will itself undertake at each stage of the project's progress. This domestic planning and preparation is crucial to the absorption of the MS's contributions and the programme's smooth and uninterrupted progress. CC National Contact Points Each CC has a National Contact Point (NCP) for Institution Building activities. This individual has an important role in the development and co-ordination of Twinning activities. Since Twinning is a mechanism to implement pre-accession assistance projects, it is recommended that either the NCP and National Aid Coordinator is the same person or that these individuals work extremely closely together. 16

17 Specifically, the CC NCP has the role of: The central point of communication between the Commission and the CC. Also the central contact point for other CC and MS NCPs; Channelling information to CC Ministries and other relevant bodies, and advising them on the process and development of Twinning projects; Co-ordination of administration of all Twinning activities in the CC and resolving any common administrative obstacles; Attending Commission meetings with other CC and MS NCPs. 2.5 Role of the Member States "Twinning" as a mechanism for assisting CC to adopt, implement and enforce the acquis, relies entirely on the efficient co-operation of MS with their counterparts in CC. MS involved in a Twinning project must contractually commit themselves to achieving the results required; The Commission will only provide funding to cover MS's costs once this commitment has been made. The formal commitment made by a MS will be in the form of a "Twinning Covenant" (see section 3.6). This constitutes the contractual framework for implementing the Twinning project and specifies the obligations of both the MS and CC. The Twinning Covenant will be endorsed by the Commission, which will provide the financial resources for the MS's contribution to the project. MS National Contact Points Each MS has a NCP for Institution Building activities. This individual has an important role in the development and co-ordination of Twinning activities. One of the main features of his/her work will be the channelling of information to all relevant Ministries, agencies and other relevant bodies in the MS, and advising them on the development of Twinning projects. His/her role in facilitating the sharing of information is vital. 17

18 Specifically, the MS NCP has the role of: The central point of communication between the Commission and the MS. Also the central contact point for other CC and MS NCPs; Channelling information to MS Ministries and other relevant bodies, and advising them on the process and development of Twinning projects; Co-ordination of administration of all Twinning activities in the MS and resolving any common administrative obstacles (e.g. accounting for reimbursements); Assistance in case of problems in the negotiation of consortium agreements between MS; Filtering project proposals prior to submission to the Commission; Attending Commission meetings with other CC and MS NCPs. 2.6 Role of the Commission Twinning is an important instrument of the European Union's pre-accession strategy for CC and is an integral part of the Commission's Assistance Programme. The Commission acts as a facilitator and guardian of the principles throughout all stages. Activities include: Setting the legal, financial, and procedural framework for Twinning projects. This includes establishing Framework Agreements (FAs) with each of the MS and also a network of NCPs; Together with the CC, setting priorities and allocating funds to Twinning projects in the framework of the National Programmes; Organising the process of selecting MS partners; Advising the partners in designing good work programmes; Checking that the detailed projects meet the required standards; Agreement of funding via endorsement of Twinning Covenants; Monitoring and evaluation of Twinning projects. Activities to establish the framework for Twinning projects will be carried out by the Commission centrally in Brussels. The Commission will use the network of NCPs in the CC and MS to develop this framework and disseminate information. Advice on the elaboration of individual projects will be a joint effort between the Commission Delegations in the CC and the Commission in Brussels. In the first instance, Twinning partners should always refer to the Delegation. Issues that cannot be dealt with by the Delegation will be referred to Brussels. Delegations 18

19 will also be responsible for organising meetings between MS administrations, which put forward Twinning proposals, and the relevant CC beneficiaries. Twinning Covenants will be formally endorsed by the Commission Delegations in the CC following approval by the Commission Steering Committee. The implementation activities will be monitored by the Delegations. This includes maintaining regular contact with PAAs and receiving and evaluating regular reports. A full list of Commission contact points is detailed in Annex H. 2.7 Role of the CFCU There is a Central Financing and Contracting Unit (CFCU) based in the Ministry of Finance within each CC (except Cyprus and Malta), which is responsible for making payments for Twinning projects. The CFCU is associated in the assessment by the Delegation of the budgetary aspects of draft Twinning covenants. Furthermore, it endorses Twinning covenants prior to notification and acts as the paying agent for the EU contribution to Twinning projects (see 7.1) The CFCU is also responsible for tendering and contracting of private sector inputs for services above a ceiling of per unit if this is required as part of the Twinning project (see 7.4). Goods above a ceiling of per unit may be mentioned only indicatively in the Twinning Covenant, but are tendered and contracted by the CFCU outside the Twinning budget. 19

20 PART B PREPARATION OF TWINNING PROJECTS 20

21 Section 3: Process of Project Preparation 3.1 Needs Identification and Programming To help the CC move towards accession, the EU provides assistance in key areas identified by the Accession Partnerships. For each of the CC, there is an annual programming exercise which results in a Financing Proposal presented to the Management Committee for approval by MS; this later becomes a Financing Memorandum when signed by the Commission and the CC. This document describes both the investment and institution-building support to be provided by the EU to the CC. Institution building needs are therefore identified within the framework of this annual programming exercise. A substantial part of these institution building needs will be implemented through specific Twinning projects. For each Twinning project, the Commission will work together with the CC to formulate a detailed project fiche (see Annex F1). These fiches will be attached to the National Programme. The financial contribution from the EU to each Twinning project will be clearly indicated within the overall project budget as detailed in the National Programme. 3.2 Call for proposals When the National Programme for a CC is submitted to the Management Committee for consultation, the Twinning project fiches are circulated simultaneously to MS via the National Contact Points (NCPs), inviting them to submit proposals for the implementation of the project. The Commission will work with the CC to try to ensure that these fiches are as detailed as possible in order to assist the MS in properly defining their proposals. Submission of Offers Simple expressions of interest will not be considered eligible. The offers made by the MS are expected to show a certain degree of preparation. At this first stage, in response to the project fiches, offers should follow the format in annex F2. This must include certain information as a minimum for the offers to be accepted i.e. 21

22 relevance of the MS systems to the CC; a suggested strategy for how the project can be implemented; confirmation of the availability of a Project Leader and PAA (including CVs) to draft and implement the project; the Twinning reference code of the project fiche (eg. HU2001/IB/AG-01; full contact details of the administration making the proposal and the relevant individual officials involved. The proposal made by the MS should be described in a concise document (with the emphasis on quality not quantity). Annex F2 provides a template for this. In general terms, the proposal should be detailed enough to respond adequately to the project fiche but should not be a fully elaborated project. It should explain the key points of the approach of the MS but not all the possible activities. Note that MS which submit incomplete proposals (without PAA or addressing only part of the scope of the project) will only be invited to selection meetings if another MS has submitted a full proposal including a PAA, prepared to take the lead of the project. The deadline for submission of proposals will be set by the Commission balancing the need to give MS adequate time to prepare proposals, with the need to complete the Twinning selection process within a reasonable period. The Commission will try to be as flexible as possible but as a general guide, MS are likely to have approximately 6-8 weeks to prepare their proposals. 3.3 Eligibility of Potential Twinning Partners The general rule is that the MS "twin" is headed by a competent public administration, even if some specific items may be handled by private subcontractors. Any MS administration is automatically eligible as a Twinning partner. However, a MS may propose, and the Commission may accept, that nonadministrative bodies be mandated to implement Twinning projects according to the same conditions as if they were part of the administration. The NCP puts forward to the Commission an initial open-ended list of nonadministrative bodies to be mandated to act in lieu of public administrations in the context of signing the Framework Agreement. In addition, non-administrative bodies may be suggested for mandate in the context of a specific draft Twinning covenant under article These requests will be considered on a case by case basis. Proposals must be justified and satisfy the criteria. The Commission alone may accept or refuse proposals. 22

23 The reasoning behind assimilating certain non-administrative bodies to administrations is that some MS have or are in the process of out-sourcing and privatising parts of their administration. The know-how required for Twinning projects is therefore sometimes located outside the administration proper. In order to tap it for the purpose of Twinning, this is the arrangement, which allows for direct contracts without distorting competition. The Commission has set four qualifying criteria for mandated bodies: 1) proven competence in a field of the acquis communautaire, 2) non-profit organisation, non-commercial business purpose 3) public ownership and 4) under the supervision of an administrative body. In some cases where criterion 2 and/or 3 are only partially fulfilled, the mandate is restricted subject to an exclusion from commercial tenders in the direct follow-up to the Twinning project. The text of the Framework Agreement between the Commission and each MS reads as follows: " some bodies may nevertheless be mandated to implement Twinning covenants in lieu of a public administration in certain areas, provided that mandate does not in any way distort competition, i.e. confer onto the body any direct or indirect, immediate or ulterior commercial advantage. In application of this principle, the Commission may make its approval of funding conditional on a clause temporarily restricting the mandated body's commercial activities. Those restrictions will not, however, apply to administrative co-operation and technical assistance activities with public administrations." Mandated bodies involved in Twinning projects are thus in principle not excluded from providing TA under commercially tendered contracts. They must however be excluded from tendering commercially for follow-up contracts to the Twinning projects, if their involvement gives them a commercial advantage. They are also excluded from making a proposal for a Twinning project where they have been involved in drafting the project fiche or terms of reference. Mandated bodies must be approved by Commission headquarters before presenting proposals. The Commission cannot guarantee financing of the project, if a CC selects an institution which is not yet included in the list. If a mandated body wishes to apply for approval of fees other than the rates published in this manual (see ch 5.4), this too, must be approved before selection. In other words, only mandated bodies approved by the Commission (HQ) are eligible Twinning partners, and their experts may only charge the standard fees or the approved rates, published in the list. 3.4 Member State consortia It may be desirable for more than one MS to be involved in a Twinning project. This could be decided prior to the original proposal submission (joint proposal). It could also be decided during the selection process, the CC may wish to diversify its exposure to experience by requesting the involvement of one additional MS. In that case, the CC should ensure that the chosen MS are prepared to enter into a consortium and work together, before confirming its choice. 23

24 The Commission is positively disposed to more than one MS being involved in any Twinning project, with a view to forestalling the temptation of simply copying a MS system and providing opportunities for MS with less experience of administrative co-operation to participate in Twinning. Experience has shown that large consortia generate management problems and high costs at the expense of the potential value added. Generally, no more than two MS should be involved in a Twinning project; only exceptionally and subject to detailed justification will the Commission agree to provide funding for consortia of up to three MS. Requests may be introduced through the Delegation prior to confirmation of partner choices. Only a MS prepared to commit itself at an institutional level (administration or mandated body) to implementing part of the project under its own responsibility, subject to overall co-ordination by the lead MS, is considered a full partner in a consortium and will be mentioned in the statistical overview. If an administration or mandated body from any MS simply provides an expert for ad hoc participation in the Twinning project, without taking responsibility for his/her activities, that institution or body is not a partner and is not required to sign a mandate. In this case, the expert provided contributes to the Twinning project under the authority and the responsibility of the Project Leader. It is the Project Leader s responsibility to ensure the availability of the expert and to define the details of his involvement. The agreement of a consortium to prepare and deliver a Twinning project will raise important practical management issues, even at the project preparation stage. It is vital that partners agree a clear division of responsibilities and establish efficient channels of communication to maximise their efficiency in preparing and implementing the project. (Refer to sections 3.8 and 4.4 for further information on the practical implications of MS consortia.) 3.5 Selection of the Twinning Partners The Commission registers the proposals received from the MS interested in participating in the project and transmits them to the CC. For each project fiche, MS institutions (administration or mandated body) making a proposal may do so only once, i.e. either individually or as a participant in one specific consortium. Simple expressions of interest are not a satisfactory response to a project fiche; MS proposals should follow the template provided in annex F2. It has to be noted that there is no pre-selection by the Commission. The choice of the Twinning partner is left entirely to the CC. CC/MS Meetings in the CC EC Delegations organise and chair meetings between the MS administrations, which have put forward Twinning proposals and the relevant CC beneficiary. 24

25 These meetings take place in the CC concerned. Annex F3 offers guidance to MS on key points to cover during their oral presentations. (cf chapter 3.2 regarding incomplete proposals) The purpose of these meetings is for the CC to appreciate the quality of the expertise offered by the MS in order to make its choice; The CC delegation should include the Project Leader and PAA counterpart. The MS delegation should always include the proposed Project Leader and PAA(s). If the CC so requests, the MS may be given some more time (e.g. 1-2 weeks) to develop their proposals after the meeting. Equal opportunity and transparency must be maintained between all MS involved. The Commission will set a deadline for the CC to make its final decision on the choice of Twinning partners. If the CC would like to invite two MS to work together, their prior agreement should be sought. The CC will make its choice based on objective criteria. The CC beneficiary administrations are encouraged to communicate with all MS who have submitted proposals as a matter of courtesy. Information on the reasons which motivate the CC choice constitutes valuable feedback for MS administrations to plan and adapt future strategy in submitting proposals. The Commission Delegation will communicate the final choices of the CC to the MS partners individually, with a copy to the MS NCP and DG Enlargement. This letter will indicate any particularities and spell out rights and responsibilities; it will constitute the green light to proceed with the drafting of the covenant. DG Enlargement will publish a summary of all final selections of each CC in tabular form, once the selection process is completed. Should a CC find itself unable to select a partner from the first round of proposals, the project may be recirculated a second time. If it still proves impossible to select a suitable partner, the CC may resort to traditional Technical Assistance. 3.6 Drafting of the "Twinning Covenant" Once the choice of the partner(s) has been made by the CC, it is entirely the duty and responsibility of both Twinning partners (MS and CC) to draw up the detailed work and time schedule, with a corresponding budget (see Sections 4 & 5). The Commission will provide advice and a standard contract template (annex C). Together, these elements will form the Twinning Covenant. It is important that the work schedule reflects a clear strategy, linked to measurable benchmarks/milestones, in pursuit of the targeted result, rather than being drowned in minute details. Twinning partners shall submit a draft covenant for assessment to the EC Delegation within 3 months of notification of selection. EC Delegations are committed to formulating a consolidated substantial and financial feedback within 25

26 no more than 6 weeks. Provided the comments by the Delegation are fully addressed, the target is to conclude finalisation, consultation of the Steering Committee and notification within a further 6 weeks, so that projects can become operational within 6 months of selection notification. The Covenant is not a Memorandum of Understanding in the same way as the Framework Agreement. It can, however, be equated to a contract between administrations, by which each partner undertakes to fulfil specific tasks and obligations. In brief, the mandatory elements of the detailed Twinning Covenant are: obligation of result (e.g. functioning phytosanitary inspection); explicit link to the acquis; and a long-term seconded expert (PAA, minimum 1 consecutive year). Other elements: a Project Leader with an overall appreciation of the problems and possible solutions, capable of unblocking any problems at highest level; short and medium-term expert visits; training, seminars, traineeships in MS, on-site visits, design of software, etc. The Covenant should detail the relevant organisation and methods, including work- and time schedule, a very precise division of tasks between the partners, and a detailed breakdown of costs. If the MS and CC partners do not produce a draft Twinning Covenant for submission to the Commission Delegation within three months of the MS partner(s) being informed of their selection, the CC partner may review its choice of partner and recirculate the project fiche. 3.7 Approval of Financing Once the partners have agreed on the content of the Twinning Covenant, they initial it and submit it to the Commission, via the EC Delegation in the CC, for assessment. The Delegation assesses the draft covenant, its Financial Officers, together with the CFCU, verify compliance of the breakdown of costs with the rules. Only projects considered mature for examination are submitted to the Commission Steering Committee. The Steering Committee is called upon to assess the credibility of the work programme in relation with the targeted guaranteed result and the accuracy of the underlying acquis communautaire. The Commission's Steering Committee: role and procedures The Steering Committee is chaired by DG Enlargement and is attended by representatives from relevant Commission services. It meets roughly once per month. 26

27 The project is sent for consultation before being discussed by the Committee and is evaluated on the basis of the criteria listed in annex G1. Decisions taken by the Steering Committee can take the following forms: I. agree to finance the project as presented, either (i) (ii) unconditional approval, or conditional approval; II. request that the twins undertake further amendments or clarifications, either by (i) (ii) written procedure, or full debate; III. reject the proposal as it stands and request a full reworking. If the members agree to full or conditional approval within the given deadline (10 working days) and do not request a specific discussion, the project need not be discussed at a plenary meeting. If the Covenant is conditionally approved subject to a number of alterations (case I(ii) above), the modifications requested will be of a technical nature, and not fundamental. The Delegation is sent a specification of the conditions to be fulfilled, with a copy to the partners. The partners modify the project accordingly and resubmit it, fully signed, to the Delegation. The Delegation verifies compliance with the conditions, consulting with DG ELARG in cases of doubt, and confirms final approval to the partners. The project does not have to be resubmitted to the Steering Committee. If the Steering Committee requests more substantial modifications, the project is sent back to the partners for reworking before being resubmitted to the Committee. The Committee may request resubmission for further examination by written procedure (case II(i) above) or, alternatively, if the revisions are sufficiently major to warrant further discussion, the project may be resubmitted for full debate (case II(ii)). This involves undergoing the full Steering Committee consultation procedure. The Commission will not normally select option III in the first submission of a Covenant to the Steering Committee (except in cases where Covenants contain fundamental flaws) and will always try to work with both the CC and MS to assist them in developing the Covenant into a viable format. The Commission will always endeavour to make its reasoning clear. The Delegation is informed of the Steering Committee decision in writing, with a copy to the partners and the National Contact Points of the respective MS and CC for the sake of expediency. 27

28 3.8 Signature of the Twinning Covenant Signatories of the Twinning Covenants Twinning Covenants approved by the SC will be signed by: on behalf of the CC, the person responsible for the Twinning project in the beneficiary administration, and by a person representing a binding commitment by the government (administrative authority); on behalf of the MS, the person in the administration or entitled body responsible for the implementation of the MS obligations in the Twinning project, and by a person representing a binding commitment by the government (administrative authority) as defined in the relevant Framework Agreement. Examples of people who may be able to bind the government (administrative authority) concerned would be a senior official authorised to sign on behalf of the government, the NCP or the Ambassador to the EU. If a Twinning project is entirely under the responsibility of a decentralised public authority (Land, département or region), it may sign instead of a central administrative authority, subject to approval by the central authorities (e.g. represented by the NCP). Permanent sub-delegation of signature in this sense may be enshrined in annex 8 of the Framework Agreement between the Commission and the respective MS. Signatories in the case of a MS consortium Where MS have formed a consortium to implement a Twinning project, the MS signatories to the Covenant will be from the MS which has been designated as Project Leader. The Commission will require a general mandate (see annex C, Twinning Covenant) from the other MS partners to the Project Leader which gives the Leader the power to commit their administrations and take any project implementation decisions on their behalf. In addition to the general mandate, the MS in the consortium will also need to reach agreement on detailed working arrangements and will define these in an intra-consortium agreement (see 4.4). 28

29 3.9 Endorsement and Notification of the Twinning Covenant Once the covenant has the full approval of the Commission, the EC Delegation is in charge of legally notifying partners. In cases where Covenants examined by the Steering Committee were not yet fully signed (only initialled) partners are requested to fully sign the covenant. Four originals of the fully signed project Covenant (one each for the partners, one for the CFCU, one for the Delegation) are required. The Delegation sends a copy of the signed, endorsed and notified covenant to Commission headquarters. The Head of Delegation or statutory Commission staff designated by him/her signs the covenant to signify Commission endorsement. The Delegation then transmits the covenant to the CFCU and requests it to sign the covenant to signify its endorsement. The Delegation then notifies the partners of endorsement, attaching the appropriate originals. The date of notification signifies the first possible starting date for the implementation of the work programme of the project or reimbursement for presence in the CC of the PAA. No costs incurred before that date may be covered out of project funds, except those related to costs incurred for its preparation, subject to the provisions under