europeaid eu financial & contractual procedures (10th edf & budget) how to implement eu...
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EuropeAid
EU financial & contractualProcedures (10th EDF &
budget)
How to implement EU
funding (with others)…
October 2010 – Delegation KENYA - FVDE
EuropeAidLegal basis and where to find our rules
•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
EuropeAidLegal basis and where to find EU rules
•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
EuropeAidLegal 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
EuropeAid
MANAGEMENT MODES
By WHO can a project or a programme
be implemented ?
EuropeAidManagement modes
• Centralised management
• Delegated cooperation
1) indirect centralised management
2) Joint management
3) Decentralised management
4) (Shared management)
EuropeAidCentralised 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, …
EuropeAidDelegated cooperation : centralised
indirect
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
EuropeAidDelegated cooperation : centralised indirect
An ex-ante institutional assessment needs to be carried out of 6 pillars
A delegation agreement is signed
EuropeAidDelegated 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)
EuropeAidDelegated cooperation : decentralised
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
EuropeAidDelegated cooperation : decentralised
decentralisation of contractual procedures
ex-ante control by COM at every step for procurement contracts > 50,000 EUR + for grants
(payment remains centralised)
Practical GuideProgramme Estimates
Practical Guideon Contract Procedures
+ decentralisation of payments
< certain thresholds (ex-post control by COM)
Substantial or total decentralisation
(possibly only ex-post control by COM)
criteria partly fulfilled
all criteria fulfilled
+
EuropeAidDelegated 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
EuropeAidDelegated cooperation
NOTE
The other way around is also an option :
EU to receive funds from other donors through tranfer agreement (assigned revenues)
EuropeAidEU 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
• Other
EuropeAidWorking with EIB ? HOW ?
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
EuropeAid
Working with EIB, if EIB manages common pot, HOW ?
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
EuropeAid
QUESTIONS ?
EuropeAid
IMPLEMENTATION MODALITIES
HOW can a project or a programme
be implemented ?
EuropeAidEU Implementation modalities
• Budget support
• Procurement contracts (services, supplies & works)
• Grants
• Delegated cooperation with MS bodies or international organisations
• If partial decentralisation : programme estimates
• Other
EuropeAidEU 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
• Other
EuropeAidImplementation procurement procedures
10th EDF/BudgetServices 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
EuropeAidImplementation : procurement
•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
EuropeAidImplementation : 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...
EuropeAidImplementation : 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
EuropeAidImplementation : grants
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...
EuropeAidImplementation : grants
Special cases of grants :
- Interest rate subsidies
-Twinning / exchange activities
EuropeAidImplementation : decentralised operations
& programme estimates
Tasks (including payment and contracting up to certain ceilings) are delegated to an imprest administrator and animprest 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 !
EuropeAid
QUESTIONS ?
EuropeAidFinancing decision – (Annual) Action Plan
Country Strategy Paper & NIP(Joint Strategy Paper for Somalia)
Identification fiches
Quality Support Group (1)
EuropeAidFinancing 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)
EuropeAidFinancing decision – (Annual) Action Plan
Financing Agreement
signed between EU and beneficiary country (not always applicable !!)
=
Special Conditions, General Conditions (Annex 1) and Technical & Administrative Provisions (TAPs – Annex 2)
EuropeAidImportant dates to keep in mind
• 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
EuropeAidImportant dates to remember
What happens once the contracting
deadline is expired in a financing
agreement ?
EuropeAidManagement modes
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 !)
EuropeAidImplementation : eligibility rules
• 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 organisationsCountry participating in a regional initiativeThird Country in case of cofinancingDerogations 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
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