HELLASCO CONFERENCE 2017 The recent developments in the

HELLASCO CONFERENCE 2017 The recent developments in the external aid consulting sector September 29, 2017 Ines Ferguson, Chair of EFCA European External Aid Committee

EFCA • Is the only association representing the engineering consultancy industry in Europe • Comprises 25 professional associations from 25 European countries • Represents FIDIC in Europe

EFCA • The European engineering consultancy industry ü employs about 1 million staff ü generates more than EUR 150 billion annual turnover

EFCA • Aspires to positively influence EU legislation that impacts on the engineering consultancy business • Promotes fair competition and transparent procurement rules • Is a network/business platform for member associations and European firms

European External Aid Committe To improve the consulting engineering industry’s business opportunities and contracting conditions with European Institutions outside the EU Eastern Europe Asia Mediterranean Caribbean Central America Africa South Asia Latin America South Africa Pacific

2014 – 2020 European Union Budget for External Action Budget Line EUR Million Global Europe 66. 262 Thematic Lines 25. 337 ENI - Neighbourhood 15. 433 DCI – Latam&Asia 12. 654 IPA – Pre-accession 11. 699 PI - Partnership 955 Greenland 184 EDF – Africa, Caribbean & Pacific 30. 506 TOTAL Budget 96. 768 Source: European Commission – DG Budget

2014 – 2020 Planned Delivery Methods % Procurement Procedure Applied Calls for Tenders 25 PRAG Calls for Proposals 25 PRAG Budget Support 25 Country International Organisations 15 International Organisation Delivery Method Blending 6 Lead IFI Delegated Agreements 2 Lead Agency Twinning 2 - Source: European Commission – DG Budget

Main developments in European External Aid A GLOBAL framework New financing instruments for development

That have an impact the role and priorities of the EU’s external action European Consensus on Development Sustainable growth and jobs creation Environment and climate change Security Migration Peace-building Crisis response

And change the market and business model Company Changes New Project Delivery Methods Adding consulting to engineering (DB/DBO, PPP) Sustainability as a business model Being more competitive Project Preparation and Implementation support services Growth of local/regional companies Market Changes New institutional actors Increased International Competition Selection of markets/services /clients

2018 -2020: Blending and EIP EU Blending Financial Partners Private Sector

2018 -2020: Blending and EIP

EFCA EEAC Priorities for 2017 -2018 Blending and European External Investment Plan: Position paper to improve transparency, accessibility and participation of consultants in Pillar 2 (TA and project preparation) EIB/EBRD/European Development Financing Institutions and Agencies: involvement of consulting engineers in the project identification and preparation phases PRAG 2016 BIS: Comments to the DB/DBO/PPP methods EFCA as a European Platform of best practice in procurement Non-European IFIs: convey European industry concerns through FIDIC Follow-up on post-2020 EU Financial Framework and Instruments

EFCA EEAC Main achievements I § PRAG 2015 and 2016 ü Reference validity period extended to 5 years ü Financial selection criteria softened: current ratio to be “at least 1” ü Quality-Cost Ratio kept at 80 -20 to preserve quality ü Prior Information Notice (PIN) is kept: strategic for firms ü Conflict of interest is no longer systematic: proof from the Contracting Authority ü DB/DBO methods: emphasis on limited use, adequate project preparation and project delivery support, review of the PRAG set of documents

EFCA EEAC Main achievements II § Limit the use of Budget Support in European External Aid § Improve the Blending instrument to encourage private sector participation § Contribute to the WB Procurement Policy Reform through FIDIC § Centralise and advise on European best practice in procurement § Participate in the review of EIB’s on internal procurement guidelines for Consultants (in process)

Thank you for your attention Ines Ferguson Chair of European External Aid Committee iferguson@typsa. com