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STATUS OF DELEGATED COOPERATION

European Commission

Dr Mehtab Currey

AIDCO/01

16 Oct 2009

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The Context for Delegated Cooperation

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Fragmented AidAid fragmentation in Bangladesh

IDA33%

AsDF19%

UK13%

EC5%

Japan5%

Netherlands4%

Canada4%

Denmark3%

United States3%

Germany2%

Sw eden2%

Norw ay2%

UNDP1%

UNICEF1%

Sw itzerland1%

The Global Fund1%

11 smallest donors < 1%

IFAD1%

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Less Aid Fragmentation with EU Together

IDA32%

EU31%

AsDF18%

Japan5%

Canada4%

United States3%

Norw ay2%

UNDP1%

UNICEF1%

6 smallest donors <1%

The Global Fund1%

Sw itzerland1%

IFAD1%

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Sector Level: Pharmaceutical Procurement by Donors in Kenya

Contra-ceptives and

RHequipment

STIDrugs

EssentialDrugs

Vaccinesand

Vitam in ATB/Leprosy

BloodSafety

Reagents(inc. HIV

tests)

DFID

KfW

UNICEF

JICA

GOK, W B/IDA

Source offunds for

com m odities

Com m odityType

(colour coded) M OHEquip-m ent

Point of firstw arehousing

KEM SA Central W arehouse

KEM SARegionalDepots

Organizationresponsible

for delivery todistrict levels

KEM SA and KEM SA Regional Depots (essential drugs, m alaria drugs,

consum able supplies)

Procurem entAgent/Body

Crow nAgents

Governmentof Kenya

GOK

GTZ(p rocurem ent

im plem entationunit)

JSI/DELIVER/KEM SA LogisticsM anagem ent Unit (contraceptives,

condom s, STI kits, HIV test kits, TBdrugs, RH equipm ent etc)

EU

KfW

UNICEF

KEPI ColdStore

KEPI(vaccines

andvitam in A)

M alaria

USAID

USAID

UNFPA

EUROPA

Condomsfor STI/

HIV/AIDSprevention

CIDA

UNFPA

USGov

CDC

NPHLS store

M EDS(to M issionfacilities)

PrivateD rug

Source

GDF

Governm ent

NGO/Private

Bilateral Donor

M ultilateral Donor

W orld Bank Loan

Organization Key

JapanesePrivate

C om pany

WHO

GAVI

SIDA

NLTP(TB/

Leprosydrugs

Commodity Logistics System in Kenya (as of April 2004) Constructed and produced by Steve Kinzett, JSI/Kenya - please com m unicateany inaccuracies to skinzett@ cb.jsikenya.com or telephone 2727210

Anti-RetroVirals

(ARVs)

Labor-atorysupp-

lies

GlobalFund forAIDS, TB

and M alaria

The"Consortium"

(Crow n Agents,GTZ, JSI and

KEMSA)

BTC

M EDS

DANIDA

M ainly District level staff: DPHO, DPHN, DTLP, DASCO, DPHO, etc or staff from the Health Centres,Dispensaries com e up and collect from the District level

M EDS

Provincial andDistrict

HospitalLaboratory

Staff

Organizationresponsible fordelivery to sub-

district levels

KNCV

M SF

M SF

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Division of Labour

Objective: Reduction of transaction cost and of aid fragmentation without reducing aid volume

• Concentration on 3 sectors plus budget support

• Lead donor arrangements

• Delegated cooperation arrangements

• Implement coordinated missions

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Division of Labour DRAFT WORKING DOCUMENT

Fast Track Countries This document has no formal EU status

FACILITATING EU DONOR(countries underlined also participate in the fragile states pilot) SUPPORTING EU DONOR

COUNTRIES COM CZ DE DK FR IE IT NL ES SI SE UK

Latin America1 Bolivia2 Nicaragua

Carribean3 Haiti

Asia4 Bangladesh5 Cambodia6 Laos (LM letter)7 Vietnam

8 Albania9 Kyrgyz Republic

10 FYROM11 Moldova12 Mongolia

Africa13 Benin14 Burkina Faso15 Burundi16 Cameroon17 CAR18 Ethiopia19 Ghana20 Kenya21 Madagascar22 Malawi (LM letter)23 Mali24 Mozambique25 Rwanda26 Senegal27 Sierra Leone28 Tanzania29 Uganda30 Zambia

Footnote: supporting donors marked in yellow means that these will be actively helping out the facilitating donoras all EU donors have adopted the EU Code of Conduct these are all participating in division of labour processes, and are therefore not individually mentioned

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Based on monitoring of 22 countries in 2008and 5 Missions at country level:

• Donor mapping and self-assessment of comparative advantage well under wayBUT: sometimes only provide general, superficial or outdated data

• Lead donor arrangements in placeBUT: seem to vary across countries and sectors, e.g., in some countries only on policy dialogue and not financial

Monitoring Division of Labour

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• Lack of ownership

• Limited political push from capitals

• Unclear collective decision making process

• Strategic planning not synchronised

• Little commitment of non-EU donors

• Lack of timely systematic data on donor presence

• Legal and administrative challenges

• Individual versus common rationality

Monitoring Division of Labour

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Delegated CooperationState of play

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DoL Guiding Principle 4: Delegated Cooperation

“If a given sector is considered strategic for the partner country or the donor, EU donors may enter into a delegated cooperation/ partnership with another donor and thereby delegate authority to the other donor to act on its behalf in terms of administration of funds and / or sector policy dialogue with the partner government. […]”

Delegated Cooperation

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Council Conclusion 2006:

“Urgent need to revise some existing EC rules, in order to put them in line with the requirements of the Paris Declaration - in particular regarding joint EU co-financing activities…”

Done for all instruments, end 2007

EuropeAidEC Approach as delegating donor

•Art 56 assessment approved (9): SONA (NL Antilles); AfD (FR), KfW and GTZ (DE), ADA (AT), BTC-CTB (BE), IPAD (PT), Lux-Development; Ministry of Foreign Affairs Netherlands

•Under Assessment (8): AECID (ES); DED (DE); DFID (UK); FCI (FR); Ministry of Foreign Affairs Denmark; Ministry of Foreign Affairs Finland;SIMEST (IT);

•Potential (42): EU MS institutions (criteria: public, federal, and development cooperation)Plus: Non-EU donors like AusAid

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EC Approach as Delegating Donor

• Once and for all ex ante assessment to verify compliance with EC financial regulations

Status in Oct 2009• 54 proposals at different stages

• 40 Delegation Agreements (DA): € 216m

• 14 Transfer Agreement (TA): € 122 m

• ACP 26/9, other EDF 3/0, Asia 5/3, LA 1/0, ENPI South 1/1, ENPI East 1/0, Thematic 3/1

• Proposals range from 0.7m up to 38.5m

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Challenges for Delegated Cooperation

• Legal formulation of templates Treaties?

•Whether lead donor (delegated agreement) uses country systems

• Delegated cooperation in context of division of labour: E.g. Mali: 6 proposals already while division of labour process still to start

• Too many (small) projects inefficient?

• Global overview: how to keep track?

• Commercial interests of MS Agencies

• Reciprocity (per country or globally)

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Division of LabourEU Next steps

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Operational Framework GAERC (1)

• Objectives:

•Collective EU political decision making at headquarters level

•Enabling environment, instruments and incentives

•Communication between headquarters and country level

•Political: Letter of Com de Gucht to Ministers

•Agreement on country list for fast tracking with responsibilities for all EU donors

•Joint decision making meetings in capitals per country

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Operational Framework GAERC (2)

• High level missions in-country

• Promotion of multi-annual programming

• Limitation of vertical and thematic funding outside multi-annual programming and focal sectors

• Joint action plans for each fast track country by March 2010

• Monitoring and reporting to Council annually