EU external assistance in the Neighbourhood: ENPI (and other instruments) Jyrki Torni EuropeAid Cooperation Office 1

Presentations Introduction on EC cooperation, the European Neighbourhood Policy and the ENPI 1. EC cooperation since 2007 – main characteristics 2. European Neighbourhood and Partnership Instrument (ENPI), Cooperation issues 3. Anticipating and answering to funding opportunities

EC Cooperation (since 2007): Key characteristics 1 EC Cooperation (since 2007): Key characteristics

EU and EC aid implementation EU the largest donor in the world 27 + 1 donors together responsible for 60% of all official development aid (2007: €46,1 billion) USA provides 21% European Commission on its own: Second largest donor of humanitarian aid Third largest donor of development aid (11,3%, after USA and Germany) Present in more than 150 countries Based on OECD/DAC figures 2008

The EU: the biggest donor in the world Donor landscape 2007 EU Donor Atlas 2006, OECD/DAC

The EC and the external aid budget 2008 External aid: €12.3 bn (9%) EuropeAid EDF fund: €4.7 bn (38%) Non-EuropeAid Budget: €3.2 bn (26%) Commission budget inside EU: €128 bn (91%) EuropeAid Budget: €4.4 bn (36%) EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, Common Foreign and Security Policy (CFSP) aid, and aid for trade. EC total budget includes European Development Fund (EDF). NB – 2008 provisional figures (Jan 09)

Political Framework of EU development cooperation UN Millennium Development Goals (2000) OECD Paris Declaration on Aid Effectiveness (2005) Accra Agenda for Action (2008) Cotonou Agreement (2000) Monterrey commitments (2002) Doha Declaration on Financing for Development (2008) European Consensus on Development (2005) Backbone Strategy (2008)

Millennium Development Goals (2000)

Paris Declaration on Aid Effectiveness (2005) Ownership: partner countries exercise effective leadership and coordinate development actions Alignment: donors base support on partner strategies, institutions and procedures Harmonisation: donors actions are harmonised, transparent, and effective Managing for results: improved resource management and decision making Mutual accountability: mutual assessment of progress http://www.oecd.org/dataoecd/11/41/34428351.pdf

Paris Declaration on Aid Effectiveness (2005) EU Response: commitment to four targets in addition to the Paris Declaration Provide all capacity building assistance through co-ordinated programmes with an increasing use of multi-donor arrangements Channel 50% of government-to-government assistance through country systems, including by increasing the percentage of our assistance provided through budget support or sector-wide approaches Avoid the establishment of any new Project Implementation Units (PIUs) Reduce number of un-coordinated missions by 50%

Accra Agenda for Action (2008) Ministers of developing and donor countries responsible for promoting development and Heads of multilateral and bilateral development institutions endorsed the Accra Agenda for Action in Ghana, on 4 September 2008 to accelerate and deepen implementation of the Paris Declaration on Aid Effectiveness. http://endpoverty2015.org/files/ACCRA_4_SEPTEMBER.pdf

Accra Agenda in a nutshell (1) Strengthening Country Ownership over Development Broaden country-level policy dialogue on development Developing countries will strengthen their capacity to lead and manage development Building More Effective and Inclusive Partnerships for Development Reduce costly fragmentation of aid Increase aid’s value for money Welcome and work with all development actors Deepen the engagement with civil society organisations Adapt aid policies for countries in fragile situations

Accra Agenda in a nutshell (2) Delivering and Accounting for Development Results Focus on delivering results More accountability and transparency to publics for results Continue to change the nature of conditionality to support ownership Increase the medium-term predictability of aid

The European Consensus on Development (2005) Objective: Eradication of poverty in the context of sustainable development including pursuit of MDGs Wider peace and stability – addressing global challenges More effective aid – range of modalities based on needs and performance; where conditions are right use budget support Reaffirm increased EU aid: 0.56 % of GNI by 2010 reaching 0.7% by 2015 (March 2002 Council Meeting, followed by May 2005 Council Meeting) http://ec.europa.eu/development/icenter/repository/eu_consensus_en.pdf

Doha Declaration on Financing for Development (2008) Member States adopted by consensus the Doha Declaration on Financing for Development at the closing of the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus (Doha, Qatar, 29 November - 2 December 2008). The declaration reaffirms the Monterrey Consensus and calls for a United Nations Conference at the highest level to examine the impact of the world financial and economic crisis on development. Officials from more than 160 countries, including nearly 40 Heads of State or Government, attended the four day conference http://daccessdds.un.org/doc/UNDOC/GEN/N08/630/55/PDF/N0863055.pdf?OpenElement

Responding to the call for simplification Simplification: More than 35 instruments, replaced by 10 Harmonisation: same rules for all financing instruments regarding eligibility, financing mechanisms, procedures Updating of the rules according to EU commitments: MDGs, untied aid, alignment, etc. More flexible: regarding the types of beneficiaries, the actions to be funded and the co-financing rules. Financing: budget support, SWAP, twinning, debt cancellation, pool funding, operational costs More implication of the European Parliament: democratic control, right of scrutiny

New Financial Instruments – 2007 2007 - 2013 Policy driven instruments: ► Instrument for Pre-Accession Assistance (IPA) ► European Neighbourhood and Partnership Instrument (ENPI) ► Development Cooperation Instrument (DCI) ► European Development Fund (EDF) ► Instrument for Nuclear Safety Cooperation (INSC) ► Human Rights Instrument (EIDHR) ► Instrument for Stability Before 2007 More than 30 instruments for delivering external relations assistance

Geographic and Thematic Programmes: the legal bases

Geographic and Thematic Programmes: differences Geographic cooperation Thematic cooperation Main focus Geographic location Theme Main partners States Civil Society Organisations Main forms (Sector) budget support Projects Means Direct negotiations Calls for proposals Approx. share 80 % of EC cooperation ENPI: More than € 12 billion for the period from 2007-13 20 % of EC cooperation

Complementarity between geographic and thematic instruments (a) The New Financial Perspective 2007-2013, provides a rationalization of the various geographic and thematic instruments: Greater Ownership Budget Support Sector Policy Support the geographic instruments provide the major mechanism for partnerships with recipient country governments, and focus on the development priorities of the country or region. SHIFT COMPLEMENTARITY In addition to geographic instrument, the thematic instruments are meant to support actions in areas of work which are not included in an AAP.

Complementarity between geographic and thematic programmes (b) Play on specific added value of instruments: Them. programmes to be mobilised around governance components in the NIPs: Geographic programmes should aim at enhancing dialogue between State and civil society on rather consensual issues … Egypt, “Promotion and Protection of Human Rights and Civil Society in Egypt, 2008”. Institutional support intertwined with support to civil society (HR, gender, children, environment). Possibility for thematic programmes to address sensitive/more specific issues, in principle not requiring government consent. Egypt: EIDHR call, enforcing women and children’s rights

DG External Relations and EuropeAid: Budget of the European Commission Programming € Budget of the European Commission Project 22

The programming process Strategy Papers Multi-annual Indicative Programmes Action Programmes ► Analysis of the situation ► Response strategy ► Priority sectors ► 7 years ► revised at mid-term ►annual ► describe projects identified for financing ► define the budget per project ►lead to EC decision & commitments of funds ►normally attached to Strategy Papers ► set indicative allocations (global & per priority) ► cover 3 – 4 years Strategy Papers 7 years (2007-2013) Long-term goals Overview of all priorities of Commission assistance; contains all existing instruments and programmes Multi-annual Indicative Programmes 4 years (2007-2010) Attached to strategy papers Details about target areas of ENPI support Mid-term Rewiew on-going (2011-2013) Action Programmes annual Attached to multi-annual indicative programmes specific project areas / activities and budget

Programmation: documents A financial instrument is a policy description with resources attached, and with very specific rules which describe how, where, when and for what the money can be spent. AAPs set out the respective amounts of funding for each country or each thematic priority and give details about the initiatives to be financed with those funds. They can be consulted on EuropeAid's website (http://ec.europa.eu/europeaid/work/ap/index_en.htm). "Annual" in this respect refers to the budget year.

 http://ec.europa.eu/europeaid/work/ap/index_en.htm

} } } Programming: Actors Strategy Papers DG RELEX Indicative Programs DG EuropeAid Annual Action Programmes } Delegations DG EuropeAid Tenders Projects 26

European Neighbourhood and Partnership Instrument (ENPI) 2 European Neighbourhood and Partnership Instrument (ENPI) Cooperation issues

Occupied Palestinian Territory ENP partner states ENPI = ENP partner states + Russia East Russia Ukraine Belarus Moldova Georgia Armenia Azerbaijan South Morocco Algeria Tunisia Libya Egypt Occupied Palestinian Territory Jordan Lebanon Syria =17 Partner countries

Financial Instruments / Neighbourhood region European Neighbourhood and Partnership Instrument (ENPI) Instrument for Development Co-operation (DCI – only the 5 thematic programmes) European Instrument for Democracy & Human Rights (EIDHR) Instrument for Stability (IfS) Nuclear Safety Co-operation Instrument (NSCI)

Thematic Programmes (part of DCI) ”Investing in people” Human and social development Protection of the environment and sustainable planning / cultivation of natural resources, including energy Non-state actors and local authorities in the process of development Food security Migration and asylum policies  http://ec.europa.eu/europeaid/where/worldwide/index_en.htm

ENPI E uropean N eighbourhood and P artnership I nstrument http://ec.europa.eu/europeaid/where/neighbourhood/overview/index_en.htm 31

Occupied Palestinian Territory ENPI East Russia Ukraine Belarus Moldova Georgia Armenia Azerbaijan South Morocco Algeria Tunisia Libya Egypt Occupied Palestinian Territory Jordan Lebanon Syria =17 Partner countries 32

ENPI Goals Common space of stability, security and prosperity Avoid new dividing lines in Europe Increase efficiency of external assistance Greater coherence through unified instruments Simplified programming and administration 33

ENPI Stimulating cooperation and economic integration of ENPI partners with EU member states in order to support the achievement of • Partnership- and cooperation agreements (East) • Association agreements (South) • and other agreements (ENP Action Plans) 34

ENPI 2007-2013 Almost €12bn (+32% increase in “real terms”) European Neighbourhood & Partnership Instrument Almost €12bn (+32% increase in “real terms”) Much more flexible, policy-driven instrument Supporting priorities agreed in the ENP Action Plans and Four Common Spaces (Russia) Other features: cross-border co-operation, technical assistance Plus increased EIB lending mandate: €12.4 bn (for Mediterranean/Eastern Europe / Southern Caucasus / Russia) 35

ENPI allocations 2007 – 2013: 11. 2 bn € ENPI & 0 ENPI allocations 2007 – 2013: 11.2 bn € ENPI & 0.8 bn € on Thematic programmes and HR instrument Country and multi-country programmes Min. 95.0% (> € 10.6 bn) CBC programmes Up to 5.0% (+/- € 550 million + additional +/- € 600 million from ERDF) Earmarked funds under DCI and EIDHR EIDHR € 321.3 million and DCI € 464.3 million (earmarked for ENP countries and Russia under five thematic programmes)

ENPI 17 country programmes adapted to individual countries 17 country programmes 3 regional programmes (East, South, interregional)  http://ec.europa.eu/europeaid/work/ap/index_en.htm 37

ENPI Priorities 2007-2008 Armenia: Vocational Education and Training (VET), Justice Reform Azerbaijan: Energy, Justice Belarus: Energy, Environment Georgia: Public Finance, Justice, IDPs Moldova: Social Assistance, Public Health Russia: Higher Education, CBC Ukraine: Energy

ENPI INTERREGIONAL PROGRAM (2007-10): Promoting reforms through consultations and experts (TAIEX, SIGMA) Promoting higher education and student mobility (TEMPUS, Erasmus Mundus II) Promoting cooperation between local actors from partner countries and the EU (CIUDAD) Support in realizing the European Neighbourhood Policies and the strategic partnership with Russia Promoting Investment projects in ENP Partner Countries (NIF) More info http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/index_en.htm

ENPI REGIONAL PROGRAM EAST (2007-10): Priority 1: Establishment of networks (25-35%) Sub-priority 1: Transport Sub-priority 2: Energy Sub-priority 3: Regional cooperation SME Priority 2: Environmental protection and forestry (25-35%) Priority 3: Border security, migration, fight against international crime as well as customs (20-30%) Priority 4: Civil society contacts, information and development actions (10-15 %) Priority 5: Landmine cleansing, not exploded war relics, small arms and light arms (5-10%)

ENPI REGIONAL PROGRAM SOUTH (2007-10): Priority Nr. 1: COOPERATION IN THE AREAS OF POLITICS, JUSTICE, SECURITY AND MIGRATION Priority Nr. 2: SUSTAINABLE ECONOMIC DEVELOPMENT Priority Nr. 3: SOCIAL DEVELOPMENT AND CULTURAL EXCHANGE

ENPI Governance Facility additional financial support for partner countries with strongest development potential for the realization of leadership priorities of the respective action plan Neighbourhood Investment Facility (for the enrichment of IFI-loans in partner countries – grants, to support the loan activities of such institutions in conjunction with the priorities of the EU)  € 450m 2007-10 to foster the areas of Governance and Investments 42

Cross-Border Cooperation Programs for land borders (9) and sea crossings (3) http://ec.europa.eu/europeaid/where/neighbourhood/regional-cooperation/enpi-cross-border/index_en.htm 43

CBC Sea Basin Programs (3) 44

Anticipating and answering to funding opportunities 3 Anticipating and answering to funding opportunities

Grant Contract If you are looking for money to fund your project, then you will be interested in a grant. If you are looking for opportunities to sell your services or goods, then you will compete for a public contract. A grant is a direct payment of a non-commercial nature by the Contracting Authority (e.g. the EC) to a specific beneficiary to implement an action (or in some cases to finance part of its budget) in order to promote an EC policy aim. Grants, as a general rule, require co-financing by the grant beneficiary. The EU receives the product or service it needs in return for payment. Grants are concluded following calls for proposals. However, some grants are exceptionally awarded directly to certain beneficiaries without a call for proposals. This may be due to their specific competences or characteristics which meant that they are the sole beneficiaries for certain actions (situations of monopoly), or to the emergency nature of the action (humanitarian aid in particular). Procurement procedures are governed by specific rules which vary depending on the nature of the contract (supply of goods, implementation of works or provision of services) and its amount. These public contracts are concluded following calls for tender. The purpose of competitive tendering is twofold: • to ensure the transparency of operations; and • to obtain the desired quality of services, supplies or works at the best possible price.

Key characteristics and trends of thematic calls for proposals Competitive – which tendencies ? Right to initiative Procedural obligations – in order to maximise equality of chances of all applicants and transparency Budget obligations: no core financing, but activity related financing; obligation of co-financing Technicalities are important: HQ or local calls? Amounts? Eligibility? Pooling of funds

Good to keep in mind Experience Added value Partnership - In many cases it makes sense to build a consortium. A potential applicant may thus want to involve suitable partners (also from other countries) and discuss plans with them. It can also be useful to involve local partners, depending on the kind of action one is aiming for. It is always an advantage to start building a consortium as early as possible, meet the partners in person and distribute the responsibilities as clearly as possible. Sustainability Impact/multiplier effect

NSA definition in DCI How broad is the concept The non-State, non-profit making actors eligible for financial support under this Regulation operating on an independent and accountable basis include: non governmental organisations, organisations representing indigenous peoples, organisations representing national and/or ethnic minorities, local traders' associations and citizens' groups, cooperatives, trade unions, organisations representing economic and social interests, organisations fighting corruption and fraud and promoting good governance, civil rights organisations and organisations combating discrimination, local organisations (including networks) involved in decentralised regional cooperation and integration, consumer organisations, women's and youth organisations, teaching, cultural, research and scientific organisations, universities, churches and religious associations and communities, the media and any non governmental associations and independent foundations, including independent political foundations, likely to contribute to the implementation of the objectives of this Regulation.

Evaluation full proposal Financial & Operational Capacity (20 points – pass threshold 12)‏ Relevance (25 points – pass threshold 20)‏ Methodology (25 points)‏ Sustainability (15 points)‏ Budget & cost-effectiveness (15 points)‏ 50

Steps Register in PADOR – Potential Applicant Data Online Registration system Check the main features of the Call – priorities? Eligibility criteria (nature of the applicant, nationality, experience)? deadlines? partnership requirements (number, nationality)? Prepare application – description of activities, including a working plan and a presentation of partners, logical framework and budget Evaluation, selection and contracting – criteria in the Guidelines. Open and restricted Calls. Timeline. Action implementation Reporting and final payment

Checklist: Get an idea of the types of actions the European Commission funds by browsing EuropeAid's website (http://ec.europa.eu/europeaid/where/neighbourhood) and the websites of the EC Delegations Consult the lists of those who have already received a grant or contract with the EU (http://ec.europa.eu/europeaid/work/funding/beneficiaries_en.htm) Check funding priorities in the multiannual and annual programmes of each instrument. The annual programmes and appropriate action fiches provide a good indication of upcoming funding opportunities (http://ec.europa.eu/europeaid/work/ap/index_en.htm) Check the appropriate European Commission website which publishes all calls for proposals and calls for tender (http://ec.europa.eu/europeaid/work/funding/index_en.htm) and the websites of the European Commission's Delegations in the countries of your interest International calls for tenders are simultaneously published in the supplement S of the Official Journal of the European Communities available from the TED (Tenders Electronic Daily) at http://ted.europa.eu/ Learn about the European Commission's external assistance procedures (http://ec.europa.eu/europeaid/work/procedures/index_en.htm) - Check the annual work programmes for grants which are published by 31 March each year (http://ec.europa.eu/europeaid/work/awp/index_en.htm)

Evaluation full proposal Financial & Operational Capacity (20 points – pass threshold 12)‏ Relevance (25 points – pass threshold 20)‏ Methodology (25 points)‏ Sustainability (15 points)‏ Budget & cost-effectiveness (15 points)‏ 53

Open call for proposals: steps 1. Publicity 2. Receipt and registration 3. Opening and administrative check 4. Assessment of the quality of the concept notes 5. Assessment of the technical and financial quality of the proposal 6. Eligibility 7. Committee’s recommendations 8. Approval of the Evaluation Report with list 9. Contract preparation 10. Publicity PRAG 6.4 54

KEY reference links and documents Guidelines of the Call – priorities, eligibility criteria and contacts to ask questions on a specific call http://ec.europa.eu/europeaid/work/funding/index_en.htm Practical Guide – all the procedures http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm The European Commission's "Practical Guide" explains the contracting procedures applying to all EC external assistance contracts (grants and public procurement contracts) financed from the European Communities general budget and the European Development Fund (EDF). 2009, launching of the Civil Society Helpdesk (CISOCH) – interactive platform based on a Wiki software for Delegations & Civil Society Organisations.

How to award a grant? Call for Proposals: Open or restricted International or local Exceptions where direct award may be allowed: urgency or crisis situation de jure or de facto monopoly mention in basic act actions with specific technical characteristics requiring a specific entity joint management with an international organisation grants of low amount (less than 10 000€) in decentralised management PRAG 6.3 56

 EuropeAid website http://ec.europa.eu/europeaid

 http://ec.europa.eu/europeaid/work/funding/index_en.htm

KEY reference links and documents Calls for proposals and calls for tenders: http://ec.europa.eu/europeaid/work/funding/index_en.htm Programmation documents: Instrument (Regulation), Strategy, Annual Action Programme http://ec.europa.eu/europeaid/work/ap/index_en.htm Stakeholder meetings (DCI)

Thank you! EU external assistance in the Neighbourhood EuropeAid Cooperation Office http://ec.europa.eu/europeaid Jyrki Torni Geographical coordination and supervision for Europe jyrki.torni@ec.europa.eu 61

Abbreviations AAP Annual Action Programme CBC Cross-Border Cooperation CFSP Common Foreign and Security Policy DCI Instrument for Development Cooperation EC European Community EDF European Development Fund EIDHR European Instrument for Democracy and Human Rights ENP European Neighbourhood Policy ENPI European Neighbourhood and Partnership Instrument EU European Union IBPP Institution Building Partnership Programme MDG Millennium Development Goals NIP National Indicative Programme NSA Non-state Actors NSA-LA Non-State Actors and Local Authorities ODA Official Development Aid SC Civil Society SCO Civil Society Organisations SWAP Sector-wide approach