Europe Aid Introduction to External Aid and Project

Europe. Aid Introduction to External Aid and Project Cycle Management Valerie Bandeira de Lima Sax Europe. Aid 11 June 2010 1

1 Europe. Aid External aid context 2

EU/EC aid history Europe. Aid 1950 s - 1990 s 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. 3

EU/EC aid history (ctd. ) Europe. Aid 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 4

EU/EC aid history (ctd. ) Europe. Aid 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? 5

2 Europe. Aid Key aid figures at EU & EC level 6

The EC and the external aid budget 2009 External aid: € 12. 3 bn (9%) Non-Europe. Aid Budget: € 3. 3 bn (27%) Commission budget inside EU: € 131 bn (91%) Europe. Aid EDF fund: € 3. 5 bn (28%) Europe. Aid Budget: € 5. 5 bn (45%) Europe. Aid 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). 7

EU and EC aid implementation Europe. Aid 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 8

EU and EC aid implementation Europe. Aid Budgetary constraints – EU ODA % of GNI: actual 2009, forecast 2010, objective 2015 9 Source: EC data base on MS information to the EC or the DAC for 2009.

2009 Europe. Aid Performance Budget & EDF commitments Planned: € 8 bn - we did € 8. 8 bn Europe. Aid Budget EDF 10

2009 Europe. Aid Performance Budget & EDF payments Planned: € 7. 6 bn - we did € 7. 4 bn Europe. Aid Budget EDF 11

2009 Europe. Aid Performance Geographic distribution of funds Without Thematic Programmes ACP including South Africa, Bananas and Sugar Europe. Aid 12

Europe. Aid 3. Europe. Aid 13

Europe. Aid mandate Europe. Aid ● since 2001 responsible for implementing external aid programmes across the world ● aims to deliver development aid in an efficient and effective way ● responsible for all the steps of an aid delivery project: identification feasibility financial decisions & controls tendering contracting monitoring evaluation 14

AIDCO organigramme Europe. Aid 15

Europe. Aid does not work on its own… Europe. Aid is part of the European Commission’s external relations family: DG External Relations (RELEX) DG Development (DEV) DG Enlargement (ELARG) DG Trade EC’s Humanitarian Office (ECHO) …. and of course the field Delegations! Will change with creation EEAS! 16

Delegations Europe. Aid Fully devolved 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. 17

Division of Labour at content level: HQ vs. Delegations HQ: Programming Europe. Aid DEL: Identification & Design HQ: Quality support; Coherence; Approval (funding decision) HQ & DEL: Evaluation DEL: Tender, Cf. P, Implementation, Monitoring 18

Devolved implementation workflow PROGRAMMING DESIGN APPROVAL IMPLEMENTATION EVALUATION Translates political and recipient country’s needs in Translates development objectives in Translates proposals in Translates financing decisions in Translates implemented activities in Activities on the ground Europe. Aid Reports and feedback for future work Strategic development objectives Achievable project and programme proposals DEV / RELEX DELEGATION DEV/RELEX design strategy AIDCO sets targets DEL identifies actions AIDCO contributes through country teams AIDCO agrees through ISC DEV/RELEX prepare COM decision AIDCO coherence checks QSG DEL designs activity, prepares financing proposal AIDCO provides expertise Financing decisions AIDCO quality checks financing proposal DEV/RELEX agree through ISC AIDCO prepares comitology and COM decision AIDCO signs global commitment DELEGATION DEL tenders, signs individual commitment, implements, reviews and pays AIDCO provides expertise DEL reports on activities AIDCO checks ex post and reviews targets AIDCO DEL closes contracts DEL audits and evaluates projects AIDCO evaluates programmes, sectors, internal systems AIDCO reports on global development work 19 Abbreviations: AAR Annual Activity Report; COM Commission; DEL Delegation; ISC Interservice Consultation; DAS Declaration d’Assurance; QSG Quality Support Group

4 Europe. Aid The programme cycle 20

Cycle management – division of labour Europe. Aid Programming DEV/RELEX Evaluation & Audit Identification Dels / AIDCO IF QSG 1 ROM Formulation Implementation Dels / AIDCO QSG 2 AF Commission Financing Decision QSG: Quality Support Group IF : Identification Fiche ROM: Results-Oriented Monitoring AF : Action Fiche 21

Aid delivery methods Europe. Aid 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: large money transfer to the national treasury of a partner country in support of a national development policy. Use of country procedures. 22

5 Europe. Aid programmes implemented by Europe. Aid & EU Delegations 23

Europe. Aid’s external assistance instruments Europe. Aid 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 24 • Food Facility

European Neighbourhood & Partnership Instrument Scope Country specific programmes Cross border cooperation with EU Member States Region Europe. Aid 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East Average € 1. 6 billion per year Funding Examples web Palestine, migration management in Ukraine http: //ec. europa. eu/europeaid/where/neighbourhood/ 25

Health sector reform in Egypt Europe. Aid 26

Development Cooperation Instrument (1) Europe. Aid Scope I Funding Country specific programmes average € 1. 4 billion p. a. Regions Asia € 740 million Latin America 380 South Africa 140 Central Asia 100 Middle East 70 Primary education in India, Colombia Peace Labs, Institution building in South Africa, development of SMEs in Kazakhstan, rule of law in Iraq Examples web http: //ec. europa. eu/europeaid/where/ 27

Bridge in Pozuzo, Peru Europe. Aid 28

Development Cooperation Instrument (2) Europe. Aid 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 29

Protecting biodiversity in China Europe. Aid 30

10 th European Development Fund (EDF) Scope Based on Cotonou agreement: Country specific programmes Horizontal programmes Region Funding 78 African, Caribbean, Pacific countries and OCTs average € 3. 7 billion per year Start July 2008 Examples Europe. Aid 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/ 31

Access to water in Ghana Europe. Aid 32

Democracy and human rights (EIDHR) Europe. Aid 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/ 33

Election observation in Mali Europe. Aid 34

Instrument for Stability Europe. Aid Scope I II Crisis response and preparedness (RELEX) Global and trans-regional border challenges (Europe. Aid) 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/stabilityinstrument/ 35

Demining in Afghanistan Europe. Aid 36

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 Europe. Aid promote nuclear safety in Sovietdesigned reactors, improve mgt of radioactive waste web ec. europa. eu/europeaid/where/worldwide/nuclear-safety/ 37

Nuclear waste disposal facility at Chernobyl Nuclear Power Plant Europe. Aid 38

Food Facility Scope encourage producers to increase supply; deal with soaring food prices; increase food production capacity Europe. Aid 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, socioeco stability in the Comores 39 web http: //ec. europa. eu/europeaid/how/finance/food-facility_en. htm

Food security in Eritrea Europe. Aid 40

Europe. Aid and crisis situations Europe. Aid • 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 41

Europe. Aid 6. Towards delivering better aid 42

Better aid: quality assessment & evaluation Europe. Aid Quality feedback at design stage Screening of project ideas through Quality 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 43

Quality Results oriented monitoring - results Europe. Aid Large majority of projects are performing well, Slight improvement in 2009 44

Quality ROM study – why projects perform badly Europe. Aid Weak Analysis Stage/Identification Phase Strategic relevance (for EC or partner government) that does not correspond to real relevance for the target groups and final beneficiaries Mismatch between allocated resources and planned objectives Inadequate risk management Non-existent or very poor internal monitoring systems Weak Adaptation capacity and Communication among partners 45

Quality ROM Study – why projects perform well Europe. Aid Proactive managers and inclusive management approaches Implementing partners with strong organisational / technical capacity Strong analysis stage to target real problems/priorities with well-suited strategies Relevance for beneficiaries addressed throughout the project’s lifetime Demand-driven interventions resulting in widespread access and use of services and high levels of ownership Strong adaptation capacity as a result of good communication among project partners 46

Impact Evaluations: Main Findings Relevance: EC programming and implementation addresses the needs of partner countries and remains coherent with the goals of the EU. Effectiveness: is good for most of the activities: But: lack of coordination and synergy between our activities at partner country level. Efficiency: is still the weakest point. Need to set up good management tools (e. g. monitoring, score boards, etc). Impact: positive results are demonstrated. Need to elaborate a comprehensive system to measure these impacts. Sustainability: Europe. Aid of EC interventions is at risk because of a lack of ownership by partner country and of design for exit strategy from EC. 47

7 Europe. Aid Effectiveness 48

Better aid: aid effectiveness Europe. Aid 49

Europe. Aid 50

Aid Fragmentation in Ukraine Source: OECD Europe. Aid 51

Europe. Aid Action Plan Europe. Aid Priorities based on Paris & Accra 1. Use of country systems: TC/PIU backbone strategy; budget support and decentralised management 2. Division of labour: fast tracking initiative, delegated cooperation if needed 3. Untying of aid: assessment; revision of reporting 4. Predictability and transparency: assessment; International Aid Transparency Initiative 5. Conditionality: assessment 52

Aid effectiveness - division of labour Delegated cooperation - eligible entities Entities approved Entities in pipeline: Entities in pipeline outside EU: ADA BTC AFD FCI Kf. W, GTZ DED Lux-Devpt NL MFA, Sona IPAD DFID British Council DANIDA Europe. Aid FIN MFA SIDA SIMEST AECID Aus. AID 53

Delegated cooperation in practice Europe. Aid Agreements signed & being implemented: § 25 delegation agreements aprox. € 101. 8 mn § 11 transfer agreements aprox. € 79 mn Total pipeline of delegation & transfer agreements (signed + not signed): § 51 delegation agreements aprox. € 231. 3 mn § 22 transfer agreements aprox. € 138. 9 mn 54

8 Europe. Aid Outlook until end 2010 and beyond 55

EC: Challenges & Priorities in coming years Europe. Aid The internal dimension • Do more with same number of staff AIDCO Budget: over 20% more funds 2009 -2013 AIDCO 10 th 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 56

EC: Challenges & Priorities in coming years Europe. Aid 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 57

Europe. Aid THANK YOU! 58