Martyn Pennington Head of Unit, EuropeAid European Commission and World Bank Group Cooperation Paris, 25 May 2009 Martyn Pennington Head of Unit, EuropeAid

Summary European Commission and World Bank Group co-operation: the last eight years key findings of evaluation and internal surveys the new Framework Agreement Before going into topic 1, there are first four slides on the new AIDCO organisation

1. EC and WBG cooperation The last eight years The original Framework Agreement was negotiated in 2001. What did co-operation between the European Commission and the World Bank Group look like in 2001? Good operational co-operation, extensive parallel co-financing Commission funds channelled through WBG in 2000 were just €11 million Commission's reform of external aid management just beginning (EuropeAid created on 1 January 2001, deconcentration not yet launched) Statistics are based on the planned month of the Commission decision: ie after comitology and EP scrutiny. There are no big differences between the different regions in the planning. On the 10th EDF (not included in the slide, draft G8 overview 5 September): 77 strategies, EDF committees as follows (totals do not add up, 7 not yet planned): June (05) 1 September 13 October 24 November 28 2008 5

1. EC and WBG cooperation The last eight years Since then, much has changed in the international aid scene: MDG's and focus on results Paris Agenda and Accra Agenda for Action on aid effectiveness scaling up division of labour

1. EC and WBG cooperation The last eight years Things have changed at the European Commission…. deconcentration new Financial Regulations concept of joint management – “four pillar” review Transparency (publication of beneficiaries) ….and at the World Bank Group restructuring of trust fund management

1. EC and WBG cooperation The last eight years Increase in the volume of funds channelled through the World Bank Group by the European Commission Commission funds channelled through the WBG in 2007 were € 530M but settled back in 2008 to around €270m

WB TFs’ contributions by the European Commission, 1999-2005 1. EC and WBG cooperation The last eight years Most of our funding (84%) has been in seven large trust funds WB TFs’ contributions by the European Commission, 1999-2005 …but this means that just 16% is in the rest (about 62 TFs)

1. EC and WBG cooperation The last eight years Increased funding through international organisations brings increased scrutiny from: European Parliament (discharge of accounts for 2006) NGOs Commission Services (eg. Internal audit) EU Member States European Court of Auditors

1. EC and WBG cooperation The last eight years Key questions are: why does the Commission contribute to international organisations? (Member States can do this) how does the Commission ensure funds are spent in accordance with EU policy? how does the Commission ensure funds are spent for the agreed purpose? The evaluation launched in 2007 gives some elements to answer

2. EC and WBG cooperation Key findings The evaluation shows, in general, the advantages of working with the World Bank Group, especially: it allows Commission to participate in global multilateral initiatives it enables the Commission to provide funds in crisis and reconstruction situations where the donors adopt a multilateral approach, or when cooperation was interrupted it promotes co-ordination (but there can be problems with small single-donor trust funds) It brings added value in certain thematic areas, specific context/countries and in terms of expertise The abovementioned data comes from the preliminary OECD DAC report of 4th April 2008. 10

2. EC and WBG cooperation Key findings Reports from our Delegations on a regular basis on co-operation with international organizations show: Total portfolio and how it is evolving Extent to which policy dialogue takes place and how it influences programme design Are we getting value for money – focus on impact, added value and results The type of implementation issues that arise

2. EC and WBG cooperation Key findings Cooperation with the WBG is important to the Commission and we want this to continue The Framework Agreement has facilitated this cooperation – we needed to update it in the light of experience and to bring it in line with today’s world Cooperation, more than ever, must demonstrate impact, results and added value

3. EC and WBG cooperation The new Framework Agreement Following preliminary consultations, the negotiation of the new Framework Agreement was launched in Washington in October 2008. The negotiation was completed in six months and the new Agreement was signed in Brussels on 20 March 2009.

3. EC and WBG cooperation The new Framework Agreement Key elements of the new Framework Agreement: The framework agreement is based on a standard format which the Commission proposes when channelling funds through an international organisation. (It is NOT a policy document). It lays down the possible forms of cooperation between the institutions and the principles governing such cooperation. It provides templates for Administration Agreements suitable for different funding situations. It also foresees the possibility for the parties to co-operate without establishing a trust fund and provides for regular consultations on its implementation.

3. EC and WB cooperation The new Framework Agreement Tools to strengthen implementation of the Framework Agreement: Frequently Asked Questions Annual reviews Regular contacts