Agriculture, Forestry and Rural development in EU External Aid Programmes Our Experiences Bernhard Hulla, Executive Partner Human Dynamics Brussels, 2 December 2009

Current Contract Portfolio: € 50 million Human Dynamics Facts Among the Top Ten EuropeAid Contractors Staff: +300 Current Contract Portfolio: € 50 million

Institutional Building & Human Dynamics Facts Core business areas Economics Sectoral Policies Institutional Building & Good Governance Public Finance Management Market Regulation & Economic Development National Resources Management Human Development Rule of Law Public Sector Governance Selected references for sectoral policies – agriculture & rural development: Turkmenistan: Support to Further Economic Reforms and Sustainable Agricultural Development Serbia: Support  the  Supply  of  Animal  Feed & Fertiliser Providing HR Consultancy Services to the Togolese Cotton Company

Why is it important to support agriculture, forestry & rural development?

The importance of agriculture, forestry & rural development Some progress achieved but still a long way to go, i.e.: 1.4 billion people live on less than € 1.20 a day (2005) 746 million people rely on unimproved water Children living in rural areas are more likely to be underweight than those living in cities and towns (Source: The Millennium Development Goals Report 2009, UN)

The importance of agriculture, forestry & rural development Some progress achieved but still a long way to go, i.e.: Girls from poor and rural households face higher barriers to education 1.2 billion people practice open defecation. 87% live in rural areas (Source: The Millennium Development Goals Report 2009, UN)

The importance of agriculture, forestry & rural development Supporting agriculture, forestry & rural development directly contributes to achieving the UN Millennium Development Goals

A firm commitment by the EU: A worldwide challenge A firm commitment by the EU: Transposed into EU policies and financial instruments The EU provides more than 50% of official development assistance worldwide Increased financial support for 2007-2013

Financial Support provided by the EU for the period 2007-2013: A worldwide challenge Financial Support provided by the EU for the period 2007-2013: Geographical instruments supporting the implementation of sectoral policy at national, regional and continental levels (EDF, DCI, ENPI) Thematic instruments under the DCI, i.e. Food Security Thematic Programme Ad hoc instruments, i.e. € 1 billion Food Facility (rapid response to soaring food prices)

Geographical instruments: A worldwide challenge Geographical instruments: Macedonia: Adoption and implementation of the acquis vis-à-vis the Common Agricultural Policy, specifically CMO establishment (service contracts, forecast) Malawi: Long Term Technical Assistance to Improved Forest Management for Sustainable Livelihoods Programme (IFMSL) phase II (service contracts, forecast) India: National Rural Health Mission/Reproductive and Child Health Programme II

Thematic instruments: A worldwide challenge Thematic instruments: Mongolia: Innovative approaches to guarantee food security (Action grants, open)

Our experience with EuropeAid projects

Our Experiences with EuropeAid projects EuropeAid projects are: Relevant – provide an answer to a concrete problem Well targeted – the beneficiary(ies) are clearly identified Terms of Reference and objectives defined in a comprehensive way

Our Experiences with EuropeAid projects EuropeAid projects are: Well structured – conclusive intervention logic Efficient – tight financial resources, achievable results Challenging – political, socio-economic environment

Our Experiences with EuropeAid projects Recommendations towards efficiency and effectiveness: Enhanced coordination among projects, donors Closer matching of technical assistance, budget support and sector policy support programmes Faster programming and implementation (over the whole cycle)

Our Experiences with EuropeAid projects Recommendations towards efficiency and effectiveness: More precise assessment of the beneficiary’s absorption capacity Streamlined administrative procedures will release additional technical, managerial capacity

Our Experiences with EuropeAid projects Opportunities of EuropeAid contracts for a private company: Harmonised terms and conditions Legal certainty Low political risk Advanced project resource planning High client rating

Our Experiences with EuropeAid projects Opportunities of EuropeAid contracts for a private company: Medium term payment goals Transparent and objective award procedure Thought leaders on different topics Prestige and quality label for the service provider

Our Experiences with EuropeAid projects A very demanding client: Professional management & reporting procedures Highest quality standards Extensive networks are essential Profound expertise and matching references Highly experienced project managers & responsive bid managers

Our Experiences with EuropeAid projects A very demanding client: Substantial cash flow and liquidity requirements Capacity to invest some 3-5% of the total contract value for each tender Industry Success Rate at approx. 10-15%

Thank you for your attention