1. EuropeAid 1 Introduction to External Aid and Project Cycle Management Valerie Bandeira de Lima Sax EuropeAid 11 June 2010

2. EuropeAid 2 1 External aid context

3. EuropeAid 3 EU/EC aid history 1950s - 1990s EC expansion of aid to ACP, Eastern Europe, Mediterranean, Asia, Latin America, Balkans and birth of thematic instruments like human rights. 2000 Millennium Development Goals: halve extreme poverty and hunger by 2015. 2002 Monterrey EU countries commit to reserve 0.7% GNI for ODA.

4. EuropeAid 4 EU/EC aid history (ctd.) 2005 Paris Declaration on aid effectiveness 12 indicators for over 100 donors & partner countries. 2005 European Consensus on Development Common vision, values & principles. Focus on poverty reduction and EU comparative advantage

5. EuropeAid 5 EU/EC aid history (ctd.) 2007 EU Code of Conduct on Division of Labour in Development policy 2008 EU MDG Agenda for Action sets key milestones Accra Agenda for Action a wake-up call to achieve more radical action to meet aid effectiveness targets Doha Conference confirmation of 0.7% GNI commitments by donors 2010 MDG Summit in New York …and the impact of the different CRISES?

6. EuropeAid 6 2 Key aid figures at EU & EC level

7. EuropeAid 7 The EC and the external aid budget 2009 Commission budget inside EU: €131 bn (91%) External aid: €12.3 bn (9%) EuropeAid EDF fund: €3.5 bn (28%) EuropeAid Budget: €5.5 bn (45%) Non-EuropeAid Budget: €3.3 bn (27%) EuropeAid implements external assistance. This excludes pre-accession aid, humanitarian aid, and Common Foreign and Security Policy (CFSP) aid. EC total budget includes European Development Fund (EDF).

8. EuropeAid 8 EU and EC aid implementation EU the largest donor in the world 27 + 1 donors together responsible for 56% of all development aid (2009: €48,2 bn) USA provides 24% European Commission on its own: Second largest donor of development aid (13%, after USA) Second largest donor of humanitarian aid Present in aprox. 140 countries Based on OECD/DAC preliminary figures 2010

9. EuropeAid 9 EU and EC aid implementation 2015 Source: EC data base on MS information to the EC or the DAC for 2009. Budgetary constraints – EU ODA % of GNI: actual 2009, forecast 2010, objective 2015

10. EuropeAid 10 2009 EuropeAid Performance Budget & EDF commitments Planned: €8bn - we did €8.8bn EDF Budget

11. EuropeAid 11 2009 EuropeAid Performance Budget & EDF payments Planned: €7.6bn - we did €7.4bn EDF Budget

12. EuropeAid 12 2009 EuropeAid Performance Geographic distribution of funds Without Thematic Programmes ACP including South Africa, Bananas and Sugar

13. EuropeAid 13 3. EuropeAid

14. EuropeAid 14 EuropeAid mandate ● since 2001 responsible for implementing external aid programmes across the world ● aims to deliver development aid in an efficient and effective way ● responsible for all the steps of an aid delivery project:  identification  feasibility  financial decisions & controls  tendering  contracting  monitoring  evaluation

15. EuropeAid 15 AIDCO organigramme

16. EuropeAid 16 EuropeAid does not work on its own… EuropeAid is part of the European Commission’s external relations family: DG External Relations (RELEX) DG Development (DEV) DG Enlargement (ELARG) DG Trade EC’s Humanitarian Office (ECHO) …. and of course the field Delegations! Will change with creation EEAS!

17. EuropeAid 17 Delegations Fully devolved and regionalised Delegations in countries receiving EC external assistance: 111. Staff in OPR. & F&C sections * : 2315 Delegations with international organisations (e.g. UN, OECD) Delegations with pre-accession countries (e.g. Turkey) Delegations with industrialised countries (e.g. USA, Japan) Total of aprox. 133…. and evolving * Operational and Contracts & Finance sections of Delegations only.

18. EuropeAid 18 Division of Labour at content level: HQ vs. Delegations HQ: Programming DEL: Tender, CfP, Implementation, Monitoring DEL: Identification & Design HQ: Quality support; Coherence; Approval (funding decision) HQ & DEL: Evaluation

19. EuropeAid 19 Devolved implementation workflow Translates political and recipient country’s needs in Strategic development objectives Translates development objectives in Achievable project and programme proposals Translates proposals in Financing decisions Translates financing decisions in Activities on the ground Translates implemented activities in Reports and feedback for future work DEV/RELEX design strategy AIDCO contributes through country teams AIDCO agrees through ISC DEV/RELEX prepare COM decision AIDCO sets targets DEL identifies actions AIDCO coherence checks QSG DEL designs activity, prepares financing proposal AIDCO provides expertise AIDCO quality checks financing proposal DEV/RELEX agree through ISC AIDCO prepares comitology and COM decision AIDCO signs global commitment DEL tenders, signs individual commitment, implements, reviews and pays AIDCO provides expertise DEL reports on activities AIDCO checks ex post and reviews targets DEL closes contracts DEL audits and evaluates projects AIDCO evaluates programmes, sectors, internal systems AIDCO reports on global development work PROGRAMMINGDESIGNAPPROVALIMPLEMENTATIONEVALUATION DEV / RELEXDELEGATIONAIDCODELEGATIONAIDCO Abbreviations: AAR Annual Activity Report; COM Commission; DEL Delegation; ISC Interservice Consultation; DAS Declaration d’Assurance; QSG Quality Support Group

20. EuropeAid 20 4 The programme cycle

21. EuropeAid 21 Cycle management – division of labour Programming Identification Formulation Implementation Evaluation & Audit QSG 1 QSG 2 Commission Financing Decision ROM QSG: Quality Support Group ROM: Results-Oriented Monitoring IF AF IF : Identification Fiche AF : Action Fiche DEV/RELEX Dels / AIDCO

22. EuropeAid 22 Aid delivery methods Projects: series of activities aimed at bringing about clearly specified objectives within a defined timeframe and a defined budget. Use of donor procedures. Sector budget support: money transfer to the national treasury of a partner country in support of a sector programme. Use of country procedures. General budget support: large money transfer to the national treasury of a partner country in support of a national development policy. Use of country procedures.

23. EuropeAid 23 5 Aid programmes implemented by EuropeAid & EU Delegations

24. EuropeAid 24 EuropeAid’s external assistance instruments Geographical coverage European Neighbourhood & Partnership Instrument Mediterranean, Eastern Europe Development Cooperation Instrument (DCI) Asia, Central Asia, Middle East, Latin America, South Africa European Development Fund Africa, Caribbean, Pacific Thematic coverage Under DCI: Environment, gender, food security, migration / asylum, non state actors, local authorities, human safety, ACP sugar sector Human rights and democracy instrument Stability instrument Nuclear safety instrument Food Facility

25. EuropeAid 25 European Neighbourhood & Partnership Instrument ScopeCountry specific programmes Cross border cooperation with EU Member States Region17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East FundingAverage €1.6 billion per year ExamplesPalestine, migration management in Ukraine web http://ec.europa.eu/europeaid/where/neighbourhood/ http://ec.europa.eu/europeaid/where/neighbourhood

26. EuropeAid 26 Health sector reform in Egypt

27. EuropeAid 27 Development Cooperation Instrument (1) Scope ICountry specific programmes Fundingaverage € 1.4 billion p.a. RegionsAsia € 740 million Latin America380 South Africa140 Central Asia 100 Middle East 70 ExamplesPrimary education in India, Colombia Peace Labs, Institution building in South Africa, development of SMEs in Kazakhstan, rule of law in Iraq web http://ec.europa.eu/europeaid/where/

28. EuropeAid 28 Bridge in Pozuzo, Peru

29. EuropeAid 29 Development Cooperation Instrument (2) Scope IIThematic programmes Fundingaverage € 800 million p.a. Regionall third countries except industrialised / pre-accession ThemesInvesting in people €150 million Environment120 NSAs / local authorities230 Food security240 Migration / asylum 60 ExamplesHR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking web ec.europa.eu/europeaid/what/human-social-development

30. EuropeAid 30 Protecting biodiversity in China

31. EuropeAid 31 10 th European Development Fund (EDF) ScopeBased on Cotonou agreement: Country specific programmes Horizontal programmes Region78 African, Caribbean, Pacific countries and OCTs Fundingaverage €3.7 billion per year StartJuly 2008 Examplesprimary education in Tanzania, HIV & TB in Benin, psychosocial support in Rwanda, vocational training in Niger, infrastructure fund, etc. web http://ec.europa.eu/europeaid/where/acp/

32. EuropeAid 32 Access to water in Ghana

33. EuropeAid 33 Democracy and human rights (EIDHR) Scope Human rights Democracy (election observations) Rule of law Fundamental freedoms Regionall third countries Fundingaverage €160 million per year ExamplesRehabilitation of torture victims in Pakistan, support to Rwanda tribunal, fight against death penalty in China, promote indigenous peoples in Ecuador, election observation in Angola web http://ec.europa.eu/europeaid/where/worldwide/eidhr /

34. EuropeAid 34 Election observation in Mali

35. EuropeAid 35 Instrument for Stability Scope ICrisis response and preparedness (RELEX) IIGlobal and trans-regional border challenges (EuropeAid) Regionall third countries except industrialised countries Fundingaverage €290 million per year Examplescombating trafficking of radioactive material, fighting drug trade, mediation for peace web http://ec.europa.eu/europeaid/where/worldwide/stability- instrument/ http://ec.europa.eu/europeaid/where/worldwide/stability-

36. EuropeAid 36 Demining in Afghanistan

37. EuropeAid 37 Instrument for nuclear safety cooperation Scope nuclear safety radiation protection Nuclear material safeguards Regionall third countries except industrialised countries Fundingaverage €75 million per year Examplespromote nuclear safety in Soviet- designed reactors, improve mgt of radioactive waste web ec.europa.eu/europeaid/where/worldwide/nuclear-safety/

38. EuropeAid 38 Nuclear waste disposal facility at Chernobyl Nuclear Power Plant

39. EuropeAid 39 Food Facility Scopeencourage producers to increase supply; deal with soaring food prices; increase food production capacity Regionmostly Sub-Saharan Africa, South-East Asia and Central America (total of 50 priority countries) Fundingaverage of over €330 million per year for a period of 3 years (‘09-’11) V-Flex Examplessupport small farmers to overcome soaring food prices in Bangladesh, socio- eco stability in the Comores web http://ec.europa.eu/europeaid/how/finance/food-facility_en.htm http://ec.europa.eu/europeaid/how/finance/food-facility_en.htm

40. EuropeAid 40 Food security in Eritrea

41. EuropeAid 41 EuropeAid and crisis situations Crisis situations in aprox. 25 countries / regions; entails more flexible procedures Haiti reconstruction V-Flex Tsunami aid Recurrent difficulties working in regions like Afghanistan and Iraq

42. EuropeAid 42 6. Towards delivering better aid

43. EuropeAid 43 Better aid: quality assessment & evaluation  Quality feedback at design stage Screening of project ideas through Quality Support Groups – 99% of amounts screened in ’09  Quality feedback at implementation stage Results oriented monitoring – ROM 2009: 150 countries visited producing 1500+ reports 73% good performance, 6% major problems  Quality feedback after projects end In-depth evaluations ex-post 2009 findings include: good relevance and EC added value in regional programmes, but problems with sustainability and ownership

44. EuropeAid 44 Quality Results oriented monitoring - results Large majority of projects are performing well, Slight improvement in 2009

45. EuropeAid 45 Quality ROM study – why projects perform badly Weak Analysis Stage/Identification Phase Strategic relevance (for EC or partner government) that does not correspond to real relevance for the target groups and final beneficiaries Mismatch between allocated resources and planned objectives Inadequate risk management Non-existent or very poor internal monitoring systems Weak Adaptation capacity and Communication among partners

46. EuropeAid 46 Quality ROM Study – why projects perform well Proactive managers and inclusive management approaches Implementing partners with strong organisational / technical capacity Strong analysis stage to target real problems/priorities with well-suited strategies Relevance for beneficiaries addressed throughout the project’s lifetime Demand-driven interventions resulting in widespread access and use of services and high levels of ownership Strong adaptation capacity as a result of good communication among project partners

47. EuropeAid 47 Impact Evaluations: Main Findings Relevance: EC programming and implementation addresses the needs of partner countries and remains coherent with the goals of the EU. Effectiveness: is good for most of the activities: But: lack of coordination and synergy between our activities at partner country level. Efficiency: is still the weakest point. Need to set up good management tools (e.g. monitoring, score boards, etc). Impact: positive results are demonstrated. Need to elaborate a comprehensive system to measure these impacts. Sustainability: of EC interventions is at risk because of a lack of ownership by partner country and of design for exit strategy from EC.

48. EuropeAid 48 7 Aid Effectiveness

49. EuropeAid 49 Better aid: aid effectiveness

50. EuropeAid 50

51. EuropeAid 51 Aid Fragmentation in Ukraine Source: OECD

52. EuropeAid 52 EuropeAid Action Plan Priorities based on Paris & Accra 1.Use of country systems: TC/PIU backbone strategy; budget support and decentralised management 2.Division of labour: fast tracking initiative, delegated cooperation if needed 3.Untying of aid: assessment; revision of reporting 4.Predictability and transparency: assessment; International Aid Transparency Initiative 5.Conditionality: assessment

53. EuropeAid 53 Aid effectiveness - division of labour Delegated cooperation - eligible entities Entities approvedEntities in pipeline: Entities in pipeline outside EU: ADA BTC AFDFCI KfW, GTZDED Lux-Devpt NL MFA, Sona IPAD DFIDBritish Council DANIDA FIN MFA SIDA SIMEST AECID AusAID

54. EuropeAid 54 Agreements signed & being implemented:  25 delegation agreements aprox. €101.8 mn  11 transfer agreements aprox. €79 mn Total pipeline of delegation & transfer agreements (signed + not signed):  51 delegation agreements aprox. €231.3 mn  22 transfer agreements aprox. €138.9 mn Delegated cooperation in practice

55. EuropeAid 55 8 Outlook until end 2010 and beyond

56. EuropeAid 56 EC: Challenges & Priorities in coming years The internal dimension Do more with same number of staff AIDCO Budget: over 20% more funds 2009-2013 AIDCO 10th EDF: aprox. 30% more funds Better orientation towards results Positioning of development cooperation towards the new External Action Service (EAS) EU Budget revision 2014 – 2020

57. EuropeAid 57 EC: Challenges & Priorities in coming years The external dimension: CREDIBILITY Policy Coherence: need to coherence at EC level Define position towards Middle Income Countries Continue to deal with impact of crises Contribution to Climate Change agenda Observe status of 0.7% contributions by MS Oversee implementation of EU policies on 2015 MDGs

58. EuropeAid 58 THANK YOU!