Reforming Technical Cooperation __________________ The Backbone Strategy on TC & its core elements The objective of this PowerPoint is to present the key elements of the Backbone strategy on Reforming TC and its core components, notably: The “Guidelines on making technical cooperation more effective”, and its annex on procedures (annex 6); the “wwwcapacity4Dev” Platform. This is a comprehensive presentation that needs to be tailored to context and to the audience. A number of slides can be skipped/hidden during the presentation. This presentation does not replace the original documents of the Backbone Strategy and of the Work plan and of the Guidelines. An ad hoc presentation on the Guidelines as well as a “flyer” on the “State of Progress of the Backbone Strategy” are available. All documents and background/video material are posted on: Intranet: http//www.cc.cec/dgintranet/europeaid/activities/adm/technical_cooperation/index_en.htm Internet: http://ec.europa.eu/europeaid/what/delivering-aid/aid-effectiveness/index_en.htm www.capacity4dev.eu – dedicated platform on TC reform  Definitions of Key terms (TC, PIUs, PIA etc) are included at the end of the presentation in the «Glossary section » Contact person: audrey.gueudet@ec.europa.eu (Unit E5 – EuropeAid) -------------------------------------------------------------------------------- The Backbone Strategy provides the overall approach for a reform process that will evolve over time through the implementation of a set of actions and internal learning. The Backbone strategy provides the vision, the principles and the approach. This Strategy is applicable to all regions and situations in which the EC provides external aid. A building block for the implementation of the Strategy are the “Guidelines on Technical Cooperation” offering operational guidance on programme design and management. They were officially adopted in March 09. EUROPEAN COMMISSION

Main challenges __________ Not enough focus on results Supply-driven Mixed standard of experts quality … and little evidence of change Unsatisfactory tracking of TA performance … Overreliance on northern commercial providers TC is an important component of ODA. Some figures: TC volume on average: 20-25% ODA; 2006 commitments : 24 bn USD (DAC figures) TC represents 1/3 od aid to government sector Increasing volume : + 50% in past 5 years (16 bn USD) For the last 30 years , TC has been criticized. This slides summarise main problem areas. Notwithstanding a number of positive contributions made by TC in many countries and contexts, for several decades there has been criticism of TC practices and the use of PIU structures in development cooperation. Renewed calls for reform have been made under the Aid Effectiveness Agenda articulated in the Paris Declaration and confirmed by the OECD/DAC in the "Overview of the results" of the first survey to monitor the Paris Declaration (2007). According to the Survey, ‘business as usual’ is no longer acceptable, TC "is still too much donor driven" and is considered as one of "six major priority areas requiring the attention of policy makers in the development field". The findings from the research and consultations carried out as part of the Strategy preparation, confirm most of the criticisms and were built upon in the Backbone Strategy process. A definition of a parallel PIU is presented in the glossary section. Parallel PIUs - outside country structures – absorb resources and do not develop capacities

Drivers of change __________ International Aid Effectiveness commitments – Paris indicators: Indicator 4: 50% of TC implemented via coordinated programmes Indicator 6: reduce by 2/3 the stock of parallell PIUs EU targets: Provide all capacity building assistance via coordinated programmes and increasing use of multi donors arrangements Avoid the establishment of (parallel) PIU There are two main drivers for this reform: The aide effectiveness agenda and related indicators. And also the additional EU targets signed by all MS in 2005 to show higher ambitions in this area. And the Court of Auditors Report on TA (2006) which was taken very seriously by Europeaid and provide big push to the change process. 3

European Court of Auditors on TA (2006) __________ Recommended areas of work: improve design + result orientation promote new sources/types of providers better selection of expertise/revision of evaluation criteria enhance coordination among donors performance tracking/database more ownership This slides summarizes findings and recommendations of ECA. Full development in the Core documents (Backbone and guidelines – annex 2) 4

Vision __________ Improved effectiveness and sustainability of EC development assistance, based on: Provision of “quality TC” that supports country-led programmes, based on partner demand and focused on sustainable results Provision of support through partner-owned project implementation arrangements, with a substantial reduction of Parallel PIUs First step in drawing the Backbone Strategy has been to agree on a “shared vision” for TC and for project implementation arrangements. Internal debate has been lively showing variety of views. The vision has two legs: 1) First leg is about a new TC approach where we highlight driving concepts: “country led”, “partner demand”, “results”. 2) Concerning the second leg, it is important to draw attention on the concept of Project Implementation Arrangement (PIA) introduced by the Backbone Strategy. The Strategy refer to PIA as the organisation set up established to implement a project in terms of accountability, internal division of labour, internal organisation. All projects requires implementation arrangements whatever is the financing sources. This PIA concept allows to go beyond the narrow and formalistic concept of PIU, focusing on the “unit” dimension.

Eight guiding principles __________ 1. Primary aim is Capacity Development 8. Consider innovative options for TC provision 2.Demand led approach where TC is not provided by default EC Technical Cooperation 7. Avoid use of Parallel PIU & promote effective Project Implementation Arrangements 3.Strong result orientation A set of principles guides the provision of EC-funded Technical Cooperation, and the design of Project Implementation Arrangements. These principles – which are not new (many good practices already informed by them )- apply to all TC operations ( including decentralized and to the maximum possible extent centralized management and the Framework contract). 1.Focus on capacity development – TC is provided with the primary aim of supporting internal country processes to promote capacity development at individual, organisational and country-wide levels. Where relevant, TC can be called upon to play other roles, such as offering advice, providing support for the implementation and facilitation/preparation of EC cooperation. 2.Demand-led approach where TC is not provided by default – The provision of TC must be based on the demand and requirements of the partner country. Costs and available options should be transparent. Appropriate dialogue and support may be needed in order to enable clear formulation of the demand for TC. 3.Adopting a results-orientation – TC design will ensure that TC inputs/activities are linked to targeted outputs which in turn lead to sustainable development outcomes. Appropriate indicators will be agreed on in advance to monitor the implementation of TC. 4.Country-owned and managed TC process – Country partner ownership is the key underlying principle for the organisation of EC-funded TC. From the identification to the implementation phase, partner countries will be actively involved in the design of PIAs and TC-supported programmes, including the procurement of TC services and the management, review and accounting of TC results. 5.Taking account of country and sector-specific requirements – TC support will build on a thorough understanding of the political, socio-cultural, sectorial and institutional context. Blueprint approaches should be avoided. 6. Working through harmonised and aligned action – TC support will be closely coordinated with other donors and aligned to country strategies and programmes through the increased use of pooling arrangements or other harmonised approaches, such as delegated cooperation. 7. Avoiding the use of parallel PIUs and promoting effective Project Implementation Arrangements – The use of parallel PIUs will be avoided as far as possible in favour of effective implementation arrangements that are fully integrated and accountable to national structures Parallel PIUS may be justified and/or ‘unavoidable’ in exceptional cases only, such as emergency situations (post conflict), support to Non-State Actors or regional programmes. The use of ‘parallel PIUs’ should always be a last resort, and clearly justified. 8. Considering different and innovative options for the provision of Technical Cooperation – The design of TC support will consider alternatives to the use of international long- and short-term consultants. These alternatives include the use of national and regional resources, twinning arrangements and knowledge transfer beyond standard training approaches. 4.Country owned & managed TC processes 6. Work through harmonized and aligned actions 5. Take account of country/sector requirements

In line with the Accra Agenda for Action (AAA) __________ Donors’ support for capacity development will be demand-driven and designed to support country ownership Developing Countries and Donors will : i) jointly select and manage technical cooperation ii) promote the provision of technical cooperation by local and regional resources, including through South-South Cooperation Donors will strengthen their own capacity and skills to be more responsive to developing countries’ needs This slide presents “extracts” from the Accra Agenda for Action (AAA) showing that the Strategy is fully in line with this agenda. Principle 1 of the Backbone: Focus on capacity development AAA: capacity development is the responsibility of developing countries, with donors playing a supportive role. Principle 2: Demand-led approach where TC is not provided by default AAA: Donors’ support for capacity development will be demand-driven and designed to support country ownership. Technical cooperation is one means among others to develop capacity. Principle 6: Working through harmonised and aligned action AAA: developing countries and donors will jointly select and manage technical cooperation. Principle 7: The use of parallel PIUs will be avoided as far as possible in favour of effective implementation arrangements that are fully integrated and accountable to national structures. AAA: Donors agree to use country systems as the first option for aid programmes in support of activities managed by the public sector. Should donors choose to use another option and rely on aid delivery mechanisms outside country systems (including parallel project implementation units), they will transparently state the rationale for this and will review their positions at regular intervals. Principle 8: The design of TC support will consider alternatives to the use of international long- and short term consultants. These alternatives include the use of national and regional resources AAA: promote the provision of technical cooperation by local and regional resources, including through South-South Cooperation. Last bullet: The backbone heavily invest in training and Knowledge management activities to enhance EC staff capacity to deal with soft issues related to CD 7 8

Four purposes of Technical cooperation __________ Another building block of the TC reform is to distinguish 4 types / purposes of TC. Capacity Development should be the focus area. But the strategy acknowledges that TC can be called upon to play other roles, such as offering advice, providing support for the implementation and facilitation/preparation of EC cooperation This illustrates the realistic and phased approach chosen for the Backbone. Clarity of purpose and roles of TA it’s a necessary sine qua non condition for better quality. Main problems arise in the past from ambiguous and multiple roles, very often profile of experts do not/cannot fit multiple roles and agenda. Being clear about roles/purposes is also necessary foundation for a result based design and for tracking performance and monitoring results.

The five working axis __________ 4. Communication, knowledge management, training 1. Strategic dialogue 2. Improve design management & accountability 3. Improve tendering, contracting & other procedures The Work plan is ambitious and goes beyond a classical “product based” approach, where mainly guidance/instruction are provided. The implementation is organised around five interlinked working axis. It includes: ‘Short-term priority actions’ which were carried out before January 09 and actions with a mid to long-term time horizon. The Work Plan will be updated following progress with implementation. Actions that are system-wide and need to be addressed at HQ level, and actions that need to be addressed at country level. Among the five axis there are various actions that are being taken in response to the recommendations made by the European Court of Auditors’ Report on TA Country Action Plans are key tools to design / modulate implementation of the strategy at country level. See axis 5. 5. Implementation and monitoring of the Strategy

Axis 1: Strategic dialogue on TC and PIUs __________ At country level – menu of interventions: Support sector/national policies on TC and PIU Support plans for capacity development at sector level Address public sector reforms Promote dialogue on "top up“ Inform other donors on TC operations in the pipeline engage in joint/co-financing HQ level: participation in ongoing dialogue at international level promote joint guidance organize joint training/sector seminars At country level, delegations will actively encourage and support local efforts to reform TC and will engage in high level dialogue with the partner country on TC and PIUs including at sectoral level and in the context of the annual programming process. Depending on the country context, this dialogue and related initiatives may have a different focus, scope and intensity. This dialogue should be developed with Partner Govern, with other donors, among donors. The focus depend on country context and on where the PG stands. The Strategy offers a menu of possible actions. To note that the delegations are expected to inform other donors on all « stand alone » TC in the pipeline. At international level, EC actively participates in the post Accra work stream on Capacity. TC is now being put high in DAC agenda and in the AAA. Dialogue and coordination mechanisms have been established with Member States during the preparation of the Strategy and the finalisation of the Guidelines on TC. These are being pursued with established EU coordination mechanisms with a view to produce joint EU working paper on TC in November 2009.

Axis 2: TC design, management and accountability __________ Better design - Guidelines on TC: Assess demand for TC Consider/adapt to context Assess existing capacity Optimize harmonization Result oriented design Get the right inputs – Dos and Don’ts in ToR Monitor/evaluate results … beyond PIU towards implementation arrangements Process wise: Partner countries involvement in project design and management accountability of TC providers to partner countries Better monitoring and performance assessment systems Attention on promoting better design and management of TC programmes lies at the heart of the Strategy, including via the application of Guidelines on TC and PIAs. The Guidelines are a response to ECA recommendation and a response to request from delegations. 2. “Process wise” Guidelines are one key tool but they are not sufficient to change practices. Processes/tools used in design and also in monitoring are important. During the preparation process, partner countries should be systematically involved even for centrally managed operations. The strengthening of ownership, joint monitoring of progress and accountability to partner countries will be encouraged. Where relevant, this will include the promotion of Performance Assessment Tools (see annex 4 of the Guidelines). Monitoring systems is also being adapted, including the ROM system. External evaluations of innovative and important capacity development-oriented TC operations are foreseen.

A summary of the Guidelines in 6 lines __________ Convert ownership into practice : results, roles, inputs to be defined both for partners and donors Assess/adapt to demand, to context and to existing capacity – and harmonize Let results be the driver Analyse options, look for the right type of provider Track / monitor results, ensure domestic accountability …… think in terms of project implementation arrangements This slide summarizes key messages of the Guidelines. A practical approach to promote ownership is based on three hypothesis: i) What the partner country do to develop capacity, is the primary factor to focus on; ii) Ownership requires that critical resources as leadership, management time, staff are mobilised; iii) TC alone cannot achieve sustainable capacity. Therefore a programme which focuses only on TC is incomplete, and may indicate a lack of real involvement; Therefore major ingredients for good design include: i) Specify outcomes results of the combined activities including from partner countries; ii) Specify resources coming both from partner and donor; iii) Specify the managerial role of all stakeholders (partners, EC/donors/TA) 12

Focusing on the partner’s programme __________ Partner-owned TC support Focusing on the partner’s programme __________ Sustainable capacity and results TC inputs & activities Donor Donor TC inputs & activities is wrongly assumed leading to Activities by partner and by donor TC inputs, under partner leadership Sustainable capacity and results This illustrates how projects are often designed. The « wrong approach » marginalizes inputs/roles of the « owners of the process ». See section 2.3 of the Guidelines. “may” lead to 13

Look for results beyond TC deliverable __________ Result-oriented TC support Look for results beyond TC deliverable __________ TC support CD processes Recurrent inputs Capacity Outputs Outcomes Wider impact Internal resources Start from feasible impact, work backwards to determine if and how TC support may be and feasible relevant What’s new in this result chain: The « capacity bubble » highlighting the importance of being clear about expected increases in capacity. Partner countries are at the heart of this chain as well as resources to be mobilized by them. Start from result and rewind back Examples of system capacity enhanced: training will not result in more capacity if not combined with other procedures, tools, change in behaviour. An IT payroll system in place and used is an example of more capacity- the related output will be that right people are paid on time 14

…Programme implementation arrangement… __________ Programme implementation arrangements …Programme implementation arrangement… __________ Five key parameters: Governance and accountability Management set-up Logistical autonomy Relations between TC experts, partners and the EC EC’s and other donors’ roles More autonomous or more integrated depending on purpose / nature of the programme and changing over time Governance and accountability: Who should determine the most appropriate PIA and who should the programme be accountable to in the country system? Where authority lies ? Management set-up: Who will perform daily programme management functions, and with what authority over resource management decisions? Task force, part time staff, which power behind the manager? Logistical autonomy of the PIA: Does the programme require its own vehicles, photocopiers, janitor and coffee service etc, or should it share resources with others? Relations between TC experts, partners and the EC: If contracted by the EC (or another donor), who are the experts taking instructions from and to whom are they accountable? EC’s and other donors’ roles in the PIA: Should donors play a role at all in the PIA – and if so, which role? !! No blueprint solutions – help partners to get it right and flexible 15

Quality Matrix in a snapshot__________ 1. Demand, adequate ownership and capacity of partners 2. Fits the context and existing capacity 3. The support is harmonised and sustainability of benefits considered 4. Link to outputs and expected outcomes 5. The programme implementation arrangements are appropriate Commitment and demand Partner participation No critical constraints Existing capacity enable absorption Similar programmes/TC support has worked Synergies and harmonisation options explored Stand-alone TC support clearly justified Results defined beyond TC deliverables Partner inputs are specified PIA is adequate for results Managerial autonomy is adequate Partners lead and are accountable to domestic stakeholders The key messages of the Backbone strategy can be summarized in a Quality matrix that presents a set of quality criteria organized around 5 axis. This slide summarizes the QM presented fully in chapter 6 of the Guidelines. These criteria will be integrated in the QSG system. 1) Demand, ownership and capacity of partners CD suppose a real commitment and demand from the key stakeholders Make sure they participated in the design of TC support (not only formal endorsement) 2) Context and existing capacity TC support should be adapted to the context and to the existing capacity. We need to be sure that no critical constraint would impede achieving the purpose of the TC operation, support planned should be in line with the capacity to absorb the support, similar programmes have been successful 3) Harmonization and sustainability Synergies and harmonisation options were explored. Proposal for stand alone TC support are clearly justified. 4) Link to outputs and expected outcomes Outputs and outcomes are defined beyond immediate TC deliverables. Inputs from the partners are defined and confirm their involvement. 5) Programme implementation arrangements are appropriate See the 5 key parameters that were presented in previous slide. 16

Quality Grid: self assessment at country level __________ To be attached to the Action Fiche for “significant” TC operations and all TC focused programmes 1. How have key stakeholders express their demand (…) ? 2. How does the context analysis confirm that TC is the appropriate aid response (…) ? 3. What synergies and harmonization options have been explored (…)? 4. How are outputs and expected outcomes defined (…)? 5. How is the PIA design based on results to be achieved (…)? The Quality Grid presents the same criteria of the QM in another format (full version in annexe 4 of the Guidelines). It’s a simple tool that can be used by Delegations when they prepare /implement a project /programme. The objective is to make sure that key questions are considered when formulating /implementing a TC operation. Using this grid, delegation. can briefly explain how the quality criteria apply in their specific case. At QSG level, the info concerning the TC component in a Identification Fiche or even in a Action Fiches are often very light and does not allow to be sure that those key questions were considered. So, for « significant » TC operations (more than 1 m€ or focusing on Capacity Development) or for « TC programme » (mainly institutional support), the delegation will be asked to send the Grid to QSG with the AF. This will be put into practice with the new QSG system (foreseen by June 09). 17

Axis 3: TC procurement, contracting and other procedures __________ Objectives: More ownership of Partner Governments Facilitate co-financing and delegated cooperation Mobilize public sector expertise, including of MS Improved quality of experts … These objectives are possible with the existing rules and procedures! 1. Simplification of tools, decentralized management, use of national systems 2. Promote “quality oriented” criteria in selection and assessments of applicants, set up database to track previous performance, attention to quality of ToR 3. Use of suspension clause, address unavailability of experts, flexibility to revise project design 4. Promote the involvement of organizations other than commercial firms, use of existing possibilities (negotiated procedure for actions of institutional nature) 5. Facilitate access to local expertise through adaptation of TOR template, large local tender publications 6. Promote the use of delegated cooperation and pool funding for TC inputs 18 19

A menu of options __________ Three levels to consider during Identification and Formulation Procedures that support the TC reform Results Who is financing? Co-financing: preferably pooled funding under national leadership Better harmonisation of TC Who is managing the action Delegated Cooperation: preferably the Partner (Decentralised management) More ownership What contractual forms Possible modes of execution (service contract, grant...) Better CD result More ownership start right at the design of the action: Pooled funding help to harmonise the TC (one voice between various donors and the beneficiary) Decentralise management: the contracting authority is the partner: increase ownership – By default in EDF! No assess. needed Contractual forms for TC: there is more to consider that service contract: grant for instance… 19 20

Who will be managing the action? __________ Partner country Decentralised management More ownership and less // PIU EC procedure or, eventually, use of partner procedures National body of a donor Indirect centralised management Better coordination of TC Choice between EC rules or that of the delegated body International organisation Joint management Procedures of the international organisation Now we look at the management mode. Do not forget the five pillars assessment! !! Don’t forget national leadership 20 21

How to contract expertise (public administration expertise as example) __________ Identi-fication Based on a careful institutional and stakeholders analysis, choice the contractual forms: Identi-fication (2) Does the context analysis could justify the use of: Formu-lation Present the options in the identification fiche Further investigated the feasibility of the preferred options during the formulation Service contract Grant Negotiated procedure or others tendering Direct award or call for proposal Example from the guidelines (pg.27) The EC support to the implementation of the SADC Protocol on Finance and Investment is a capacity development programme for SADC Member States and the SADC Secretariat with a clear results orientation. The programme is meant to help SADC implement its own Finance and Investment Protocol which is a regional agreement that needs to be turned into domestic legislation in SADC Member States. A key feature of the programme is peer exchange and peer learning: staff from SADC Member States are seconded to other Member States and to the Secretariat during the period of the programme 21 22

When justified…. __________ Direct award of a grant: « Actions with specific caracteristics which require a particular type of body on account of its technical competence, its high degree of specialization or its administrative power » (PRAG) Well proven competence in the AAP/financing decision Informal call of interest to MS Negotiated procedure: « Where services are entrusted to public sector bodies or to non profit institutions /associations and relate to activities of an institutional nature or designed to provide assistance in the social field » (PRAG) Informal call of interest to MS 22

Good practices for more quality CONTENTS PROCESS Drafting good term of reference take time. Plan ahead! More 14 days necessary for good expertise. Has the partner be the leader in the drafting? Or at least be involved/consulted? Evaluation grid: specify the competencies needed (related to local expertise) as a criteria Check references Evaluation of tenders/standard practices: - organise interview for mid term position (telephone, video) -check references Is the partner responsible for the evaluation? If not how is he involved as a voting member in the evaluation? If not key experts must be approved by partner country. They can ask replacement of key experts. Monitoring: assess /fill up forms + creation of a database to monitor TC performance Is the partner supervising the TC activities? 23 24

Optional Slide This illustrates that « 24 months » rule leave enough time for dialogue and good design/ToR – So Plan Ahead! 24 25

Revision of PRAG (finalised end of 2008) __________ Recruitment of individual consultants Interviews and references of experts Mobilisation of public expertise Partner Government ownership (design, evaluation, reporting..) Suspensive clause for EDF Mid-term actions: Database on quality experts Further develop twinning What is in the new PRAG issued in December 08. 25 26

Axis 4: Communication, knowledge management and training __________ Ongoing broad in-house campaign Address broader audience at country level Mobilize and equip internal "strategy communicators/focal points“ Map knowledge centers 26 27

www.capacity4dev.eu: Facilitating exchanges, collaboration and learning __________ Users: EC family the rest of the world, including partner countries, Member States, other donors, academia and civil society Content: Advanced knowledge management and search capability User empowered (share knowledge, peer support, upload material comment, rate, tag etc) Online work groups, collaboration spaces and tools: both Internal (EC Only) and Public Spaces Dedicated editorial team for high value contents : news, interviews, hands on practical info, cases studies Launch: April 09 To meet a strong demand for information sharing, an interactive web platform www.capacity4dev.eu is launched at the end of April 2009. This platform will ease communication by promoting the exchange of good practices and encouraging collaboration and e-discussions both in-house and with external stakeholders. The Platform is managed and run by: A Steering Committee made up of staff from Directorates E and G as well as from the geographical Directorates A Project Management Team made up of staff from Unit E5 on « Quality Monitoring Systems and Methodologies » and the European Joint Research Centre (IES) An Editorial Team made up of staff from Directorate E as well as external support editors A Technical Team made up of staff from Unit E5 and the European Joint Research Centre (IES) 27

DRAFT 28

www.capacity4dev.eu: Structure__________ Vertical navigation: Capacity development Public Sector Reform PFM Governance Working with TC TC and Reforms Horizontal access by: Region / Country Sector (DAC) Type of Content Keyword / Tag Date, by Author / submitter… Utilise and contribute to the knowledge platform www.capacity4dev.eu! It's your tool to communicate and exchange innovative practices and kick off a structured learning process Contribute to capacity ! Upload contents at www.capacity4dev.eu or send us ideas: europeaid-tc-piu@ec.europa.eu 29

… and training open to other donors and partners __________ Basic training on TC: Hands-on training kit HQ - Syslog - 1,5 day (+ 0.5 days coaching) (FR) 13-14/05/09 (EN) 22-23/06/09 Country level – for pilot programmes E-learning – in progress Promote use of internal trainers …..and more: New course on Capacity Development within SWAP at country /sector level More training on Public Sector Reforms and on PFM reforms Check on Syslog for upcoming trainings! A training course, ‘The New Approach to Technical Cooperation’, is available for internal and external participants (apply via Syslog). Coaching on practical cases brought by participants is also offered during the session. Separate training for management has been organised. A hands-on training kit is being developed for use at country level, and will be available in various formats on the platform.

Axis 5: Implementation / monitoring of the strategy __________ Implementation Framework set up with identified responsibilities at HQ and in Delegations External evaluation of TA launched by the end of 2009 The Panel - Reach out to external partners to dialogue on TC, including partner countries European Court of Auditors announced follow up The Implementation Framework for the Strategy includes ‘core teams’ at different levels which will ensure that key functions are properly addressed and act as points of contact: Delegation Teams to develop and ensure implementation of the Action Plans, ensure communication and training activities are organised, contribute to feed the knowledge management system, Geo Teams to support the overall implementation of the Strategy (reviewing country Action Plans, active involvement in the quality assessment process of new programmes, communication activities, internal training, identification and support of innovative practices, and feeding the online platform). A Coordination Team in charge of methodology, Knowledge management, training, reviews and ensuring overall coordination A High Level Steering Committee, chaired by the EuropeAid Director General, ensures regular review of progress and that decisions are taken with regard to possible additional initiatives or adjustments to the Work Plan. To support this change process involving multiple actors, High Level review is key. When necessary, the Steering mechanism will also recommend adjustments to the Workplan. The first review took place in November 2008 focusing on the set of ‘short term priority actions’. A second review was done end of March and a report sent to the COCOBU/EP. Minutes of Steering Committee are posted on intranet. An external evaluation of Technical Cooperation will be launched at the end of 2009. An informal consultative panel will be set up to promote dialogue on innovative TC practices, which will be open to selected partner country representatives, member states and other donors. 32

Implementation at country level __________ January 2009 Mapping of “significant” TC and parallel PIUs Concise Country Action Plans Redress “policy gaps” in significant TC operations Phase out parallel PIUs existing by 2010 Improve project implementation arrangements Frame the preparation of TC operations and PIUs Grasp opportunities for enhanced coordination Modulate / specify the strategy at country level This has been a key step in making the reform process. The objective of the exercice that each delegation engage and commit in screening TC operations and start new programmes in full compliance with the Guidelines and Quality Matrix. 32 33

Delegations tasks __________ Dialogue and communication Focus on design and management of programmes – Apply the Guidelines and their quality criteria Look carefully at the annex on procedures – Plenty of new options ! Follow up on the mapping of TC and your action plan Contribute/use the platform « Capacity4dev.eu » Organize training (hands on kit) Call for Directorate E / HQ support Identify innovative programmes and communicate around them to Headquarters 33

How can headquarters support you __________ A menu of possible activities : Tailored training and learning/coaching events Presentations and working sessions with country stakeholders Identification/support to innovations - ad hoc assistance and coaching Promotion of the web platform www.capacity4dev.eu including collecting your views on the platform, etc... Peer support among delegations at regional / sector level and/or partner countries, including reviews of mapping and action plans. Staff in Geographical Directorates and Directorate E will support the work of delegations. Their first points of contact are the Geographical Coordinators and the Geographical Teams involved in the implementation of the Backbone Strategy. Delegations can also contact the Coordination Team (mainly thematic staff in Directorate E) in charge of tools and systems, including: training, guidance, communication, platform, etc. Directorate E and the Geographical Teams in charge of the Backbone Strategy are also offering support activities to promote technical cooperation reform at country level. These activities may have various objectives, such as: strengthening country-owned and country managed technical cooperation processes and supporting the harmonisation of technical cooperation among development partners; supporting and disseminating emerging good practices; giving European Commission and the European Union visibility as a driver of change in technical cooperation and project implementation unit reform; assisting delegations in the implementation of the Backbone Strategy; learning about technical cooperation reform in practice, and adapting tools and activities. A menu of possible activities, can be flexibly combined: - Tailored training and learning/coaching events open to delegation staff, country and donor partners which could have either broad scope across sectors or focus on a single sector. Events would typically run two - three days including practical work on real cases/programmes. - Presentations and working sessions with EC staff, country stakeholders and other partners. According to context and demand, these sessions could span from basic awareness-raising to having a more specific focus. They may include presentations of the Backbone Strategy and of the Guidelines, follow up and refinement of Country Action Plans and of the TC mapping, work on specific country /sector coordinating mechanisms. Duration is normally 3-4 hours. - Identification and support to innovative programmes/processes through ad hoc assistance and coaching. - Promotion of our web platform www.capacity4dev.eu including collecting your views on the platform, video interviews, various material, ideas and viewpoints for sharing on the site. - Peer support among delegations at regional / sector level and/or partner countries, including reviews of mapping and action plans. Headquarters can be mobilised through missions or remote support by Directorate E, by the Geographical Directorate staff and may include facilitators and trainers from the Aid Delivery Methods Programme.

Thank you for your attention! __________ For further information: Internet: www.ec.europa.eu/europeaid/what/delivering-aid/aid-effectiveness/index_en.htm www.capacity4dev.eu Intranet: www.cc.cec/dgintranet/europeaid/activities/adm/technical_cooperation/index_en.htm Functional mail box: EuropeAid-TC-PIU@ec.europa.eu Conclusions Implementing the Backbone Strategy will be a great challenge in both the short and the medium/long term for all of us. We have made explicit commitments to other donors, EU institutions, Member States and Partner Countries to reform our approach to technical assistance. We have identified the main difficulties and constrains following broad consultations. It is now time to drive the reform and better meet the needs of our Partner Countries. This will not only require the implementation of specific actions, as presented in the attached Work Plan, but a real change in our way of working on these issues, on an every-day basis. Better TC and better PIA are feasible. Within the Aid Effectiveness Agenda this is maybe THE area of work where donors have a special responsibility. Implementing the Strategy will be demanding in the coming months but will improve significantly the effectiveness of our cooperation. 37

Glossary / Annexes __________ DAC definition: Technical Cooperation DAC definition: Coordinated TC DAC definition: Parallel PIU’s Project implementation arrangement ECA recommendations on TA Optional session of the Presentation. The Strategy uses definitions by the OECD - Development Assistance Committee (DAC)

DAC definition of “Technical cooperation _______ Technical cooperation (also referred to as technical assistance) is the provision of know-how in the form of personnel, training, and research, and associate costs. It comprises: donor-financed activities that augment the level of knowledge skills technical know-how or productive aptitudes of people in developing countries and Services such as consultancy, technical support or the provision of know-how that contribute to the execution of a capital project. The DAC survey of the Paris Declaration uses this definition and adds that “TC should include both free-standing TC and TC that is embedded in investment programmes or is included in programme based approaches”.

DAC definition of “Coordinated TC” __________ Coordinated TC meets both criteria below: Have relevant country authorities (government or non-government) communicated clear capacity development objectives as part of broader national or sector strategies? (Y/N) Is the technical cooperation aligned with the countries’ capacity development objectives? (Y/N) … and at least one of the criteria below: Do relevant country authorities have control over the technical cooperation? (Y/N) If more than one donor is involved in supporting country programmes, are there arrangements involving the country authorities in place for coordinating the technical cooperation provided by different donors? (Y/N)

DAC definition of Parallel PIU __________ A PIU is parallel when it is created and operates outside existing country institutional and administrative structures at the behest of a donor. PIUs are said to be parallel when there are three or more “Yes” to the four questions below (anything less counts as integrated): Are the PIUs accountable to the external funding agencies/donors rather than to the country implementing agencies (ministries, departments, agencies etc)? (Y/N) Are the terms of reference for externally appointed staff determined by the donor (rather than by the country implementing agencies)? (Y/N) Is most of the professional staff appointed by the donor (rather than the country implementing agencies)? (Y/N) 4. Is the salary structure of national staff (including benefits) higher than those of civil service personnel? (Y/N) PIUs are TYPICALLY required to perform subsidiary (rather than principal) tasks EC promotes use of the concept of Project Implementation Arrangement : the organisation set up established to implement a project in terms of accountability, internal division of labour, internal organisation. This concept allows to go beyond the narrow concept of PIU, restricted to the “unit”, with the risk of a formalistic approach.

Programme implementation arrangement __________ Generic term adopted by the EC for the organizational set-up that any project needs for implementation, whether supported by donors or not. A PIA may focuses on how both donor and country partner inputs will be organized and managed Five parameters to consider when defining the PIA: 1. Governance and accountability 2. Management set-up 3. Logistical autonomy of the PIA 4. Relations between TC experts, partners and the EC 5. EC’s and other donors’ roles in the PIA Governance and accountability: Who should determine the most appropriate PIA and who should the programme be accountable to in the country system? Management set-up. Who will perform daily programme management functions, and with what authority over resource management decisions? Logistical autonomy of the PIA: Does the programme require its own vehicles, photocopiers, janitor and coffee service etc, or should it share resources with others? Relations between TC experts, partners and the EC: If contracted by the EC (or another donor), who are the experts taking instructions from and to whom are they accountable? EC’s and other donors’ roles in the PIA: Should donors play a role at all in the PIA – and if so, which role?

European Court of Auditors' Report: 8 recommendations on TA__________ Country Strategy Papers to include analysis of institutional weaknesses & capacity needs. Develop TA guidelines. Improve design of capacity development projects. Review TA procedures for preparation/start-up to allow more time for implementation and more flexibility. Full formulation of the 8 recommendations is in box 3 (P 12) of The Strategy. The ECA recommendations were issued in 2007 (See European Court of Auditors’ Special Report No. 6/2007 on the effectiveness of technical assistance in the context of capacity development ). They are also supported by the European Council. The Council commented on the ECA report and welcomed the development of a strategy to meet aid effectiveness targets for Technical Cooperation, See Council Conclusions with regard to Special Report No. 6/2007 on the effectiveness of technical assistance in the context of capacity development . In early September 08 the strategy has been presented to the CODEV in the Council. The European Parliament Committee on Budgetary Control has also examined the audit and integrate the issue in the discharge process. The Backbone Strategy has been presented to the COCUBU and to Development Committee in September 08. The EP has asked to be regularly updated on implementation of the Strategy 42

European Court of Auditors' Report: 8 recommendations on TA__________ 5. Review evaluation criteria in TA tenders to reflect quality and previous experience. 6. Consider more options/choices in procuring technical expertise, e.g. public institutions and beneficiary country/region. 7. Increase use of TA through coordinated programmes and apply implementation arrangement that encourage local ownership. 8. Assess systematically TA performance (management information system). 44