Transcript Slide 1

EU financial & contractual
Procedures (10th EDF &
budget)
How to implement EU
funding
(with others)…
October 2010 – Delegation KENYA - FVDE
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Legal basis and where to find our rules
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• EDF : Revised Cotonou Agreement
• Budget : DCI Regulation, EIDHR Regulation
& bananas
• Financial Regulation and implementation
Rules (Budget); 10th EDF Financial
Regulation (Internal agreement 10th EDF
& Regulation on 10th EDF implementation)
http://www.cc.cec/dgintranet/europeaid/contracts_finances/legislation/index_en.htm
Legal basis and where to find EU rules
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• PRAG Practical Guide to contract
procedures for EC external actions
(December 2008) : same document for EDF and budget
• Financial Guide (one for Budget and one
for EDF)
• Practical Guide for programme estimates
(version December 2009): same document
for EDF and budget
• Several instruction notes
http://www.cc.cec/dgintranet/europeaid/contracts_finances/guides/index_en.htm
Legal basis and where to find EU rules
• 10th EDF rules apply for
projects financed on 10th
EDF and on 9th EDF if a
jumbo rider was signed
• STABEX and 8th EDF
projects still ruled by 8th
EDF rules
• Projects financed on
(thematic) budget lines are
ruled by BUDGET rules
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By WHO can a project or a programme
be implemented ?
MANAGEMENT MODES
Management modes
• Centralised
management
• Delegated
cooperation
1) indirect centralised
management
2) Joint management
3) Decentralised
management
4) (Shared
management)
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Centralised management
DIRECT
Implementation done by the services of the EU
(at HQ or in delegation)
EU procurement & grant procedures apply (we launch
tenders, sign contracts, make payments, etc...)
Examples: Somalia operations, Audit & Evaluation contracts,
framework contracts, Budget support, …
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Delegated cooperation : centralised indirect
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There is a delegation of implementation tasks by the
Commission
Implementation done (1) by bodies set up by the
Communities or other specialsed Community bodies
such as EIB or EIF, (2) national or international public
sector bodies or bodies governed by private law with
public service mission providing adequate financial
guarantees and complying for with provisions IR
Procedures of the delegated body can apply or EU
procedures
Delegated cooperation : centralised indirect
 An ex-ante institutional assessment needs to be carried out
of 6 pillars
A delegation agreement is signed
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Delegated cooperation : joint management
 There is a delegation of implementation tasks by EU
 Implementation done by an international organisation
(includes EIB)
 The IO concerned can apply its accounting, audit, internal
control and procurement procedures which offers
guarantees equivalent to the international accepted
standards
 A contribution agreements is signed (similar to a grant
contract but more flexible)
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Delegated cooperation : decentralised
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There is a delegation of implementation tasks by the
Commission to third countries (beneficiary countries)
Implementation done by beneficiary country with ex-ante
control by the EU (partial or substantial decentralisation) or
ex-post control (total decentralisation)
Other Procedures than EU can apply (case by case, after
assessment)
Financing agreement to be signed
Ex-ante control could be delegated to another body
Delegated cooperation : decentralised
criteria
partly
fulfilled
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decentralisation of contractual procedures
ex-ante control by COM at every step for
Practical Guide
procurement contracts > 50,000 EUR + for grants on Contract
Procedures
(payment remains centralised)
+
+ decentralisation of payments
< certain thresholds (ex-post control by COM)
all
criteria
fulfilled
Substantial or total decentralisation
(possibly only ex-post control by COM)
Practical Guide
Programme
Estimates
Delegated cooperation : decentralised
Thresholds of contracts and grants for (partial)
decentralisation of payments (Practical Guide for
Programme Estimates applies)
Works
Supplies
Services
Grants
< € 300 000
< € 150 000
< € 200 000
≤ € 100 000
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Delegated cooperation
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NOTE
The other way around is
also an option :
EU to receive funds from
other donors through
tranfer agreement
(assigned revenues)
EU Implementation modalities
• Delegated cooperation with
MS bodies, international
organisations or benef.
country (if partial
decentralisation through
programme estimates)
• Budget support
• Procurement contracts
(services, supplies & works)
• Award of grant contracts
• Other
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Working with EIB ? HOW ?
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If several donors
 First question is who will be responsbile for
managing the “common pot” (donor, beneficiary
state, ...)
 Type of funds (EU : non reimbursable aid (grants),
other donors: very often loans), blending the two
makes loan conditions cheaper
 Contractual arrangements to be made, depending
on who is managing common pot
 Determine level of control (ex-ante or ex-post)
donors want to exercise
Working with EIB, if EIB manages
common pot, HOW ?
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 Preferred option at this stage would be joint
management with a contribution agreement if
type of project/intervention allows or ad-hoc
agreement (see Infrastructure Trust Fund)
 Under Neighbourhood Instrument as framework
agreement is under negotiation to cover
specialised interventions such as risk capital, loan
guarantees (interest rate subsidies), ...
 Under revised Financial Regulation (2012) a new
more flexible implementation mechanism will be
introduced for financial intermediairies
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QUESTIONS ?
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HOW can a project or a programme
be implemented ?
IMPLEMENTATION
MODALITIES
EU Implementation modalities
• Budget support
• Procurement contracts
(services, supplies & works)
• Grants
• Delegated cooperation with
MS bodies or international
organisations
• If partial decentralisation :
programme estimates
• Other
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EU Implementation modalities
• Delegated cooperation with
MS bodies, international
organisations or benef.
country (if partial
decentralisation through
programme estimates)
• Budget support
• Procurement contracts
(services, supplies & works)
• Award of grant contracts
• Other
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Implementation procurement procedures
10th EDF/Budget
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Services
Supplies
Works
International
open tender
-
>=150.000
EUR
>= 5.000.000
EUR
International
restricted
tender
>= 200.000
EUR
-
- (derogation)
Local open
tender
-
<150.000 EUR
and >= 60.000
EUR
<5.000.000
and >=300.000
EUR
Competitive
negotiated
procedure
>10.000 EUR
and <200.000
EUR
>10.000 EUR
and <60.000
EUR
>10.000 EUR
and <300.000
EUR
Framework
contract
>10.000 EUR
and <200.000
EUR
-
-
Single tender
<=10.000 EUR
<=10.000 EUR
<=10.000 EUR
Implementation : procurement
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• Alternative procedure applicable to works,
supplies & services contracts = negotiated
procedure but only in well defined cases, a
prior approval is needed from authorising
officer concerned (HQ or HoD)
See note on derogations and prior approvals:
http://www.cc.cec/dgintranet/europeaid/contracts_finances/fin_and_cont_rules/other_issues/index_en.htm
Implementation : procurement
One important possibility to do a
negotiated procedure for
service contracts is :
“where the services are
entrusted to a public sector
bodies or to non-profit
organisations or associations
ans relate to activities of an
institutional nature or designed
to provide assistance to people
in the social field”
A prior call for interest could be
considered...
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Implementation : grants
• What is a grant ? Co-financing and non
profit are requirements !
• How to award a grant ?
Open or restricted call for proposal
In well defined cases a direct award is possible,
prior appoval is needed by authorising officer
concerned (HQ or HoD)
See note on derogations and prior approvals:
http://www.cc.cec/dgintranet/europeaid/contracts_finances/fin_and_cont_rules/other_issues/index_en.htm
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Implementation : grants
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One important possibility to do a
direct award for grants is:
“Actions with specifi
characteristics that require a
particular typ of body on
account of its technical
competence, its high degree of
specialisation or its
administrative powers ... “
A prior informal call for
expression could be
considered...
Implementation : grants
Special cases of grants :
-Interest rate subsidies
-Twinning / exchange activities
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Implementation : decentralised operations
& programme estimates
Tasks (including payment and contracting up to certain
ceilings) are delegated to an imprest administrator and an
imprest accounting officer through a programme estimate
Direct decentralised operations (department of ACP State
concerned is in charge)
Public indirect decentralised operations (public body
legally distinct from ACP State is in charge)
Private decentralised operations (private operator is in
charge & responsible) – not for budget lines !
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QUESTIONS ?
Financing decision – (Annual) Action Plan
Country Strategy Paper & NIP
(Joint Strategy Paper for Somalia)
Identification fiches
Quality Support Group (1)
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Financing decision – (Annual) Action Plan
Annual Action Plan(s)
with indicative budget
Quality Support Group (2)
Financing Decision
(after Inter-service Consultation & opinion Member States
Committee & Parliament)
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Financing decision – (Annual) Action Plan
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Financing Agreement
signed between EU and beneficiary country
(not always applicable !!)
=
Special Conditions, General Conditions (Annex 1)
and Technical & Administrative Provisions (TAPs –
Annex 2)
Important dates to keep in mind
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• Deadline to sign financing
agreement (31.12.n+1)
• Contracting deadlines (date
of signature + 3 years or
31.12.n+1 if no financing
agreement)
• Period of execution of a
financing agreement =
operational implementation
phase + closure phase
Important dates to remember
What happens once the contracting
deadline is expired in a financing
agreement ?
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Management modes
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What “implementation issues” to be
put in an Annual Action Plan
(chapter 4)
?
• Method of implementation - Management modes
• Applicable rules & procedures
• Budget
(always put in contingencies !)
and calendar
More details will be given in TAPs
(templates !)
Implementation : eligibility rules
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• For Budget : see applicable Regulation (DCI, EIDHR, ...)
• 10th EDF :
Individuals, legal persons, supplies and materials orginating
from ACP States and 27 EU Member States
International organisations
Country participating in a regional initiative
Third Country in case of cofinancing
Derogations still possible with prior approval
For more details per instrument : see annex A2 of PRAG
http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm