EDF Grant Strategy and practical granting Bruno De Groote – Director SOGEROM SA – Luxembourg

1. European Development Fund A challenge for the Czech Republic Prague - October 31 - 2007 EDF Grant Strategy and practical granting Bruno De Groote – Director SOGEROM SA – Luxembourg An Initiative of the MINISTRY OF FOREIGN AFFAIRS OF THE CZECH REPUBLIC Department of Development Cooperation and Humanitarian Aid Sogerom SA

2. Few words about SOGEROM EDF grant schemes in ACP Past and future EDF grant projects EDF Grants procedures Best practice Sogerom SA Agenda

3. Sogerom SA ….SOGEROM • Business management consultancy • Areas: business, micro- macro-economics • Regions: ACP, ALA, MEDA • Across thee project management cycle • FWC, LT projects including in ACP • Grant schemes design and implementation

4. Sogerom SA • 10th EDF Key features • Part of a 3 pillars strategy: development(EDF), Trade (EPA), Politics • 3 deployment strategy: Project/Sector approach, Budget Support • not EC Budget (MS funds managed by the EC) • EC Budget for top priorities: HIV, environment, ECHO, etc • EDF Special legal structures and procedures and eligibility • 10thEDF: 22.7 billion (9th EDF = 15.2 billion) • 17.8 for national/regional; 2.7 intra-ACP; 1.5 for Investment • Main instruments: grant + investment facilities (EIB) • Working more closely with other donors • Independent M&E + creation of incentive amounts /county • Rolling programming + WTO compatibility (EPAs…) • Money: to Governments, Partners, contractors, private sector EDF Grant schemes

5. Sogerom SA • 10th EDF Core Objectives and Areas • Core objectives: • poverty eradication (ownership, partnership, more/better aid) • 9 Focal Areas (vs. non-focal) • “trade for aid” , regional integration; • environment , natural resources; • infrastructure, communications and transport; • water , energy; • rural development, territorial planning, agriculture and food security; • governance, democracy, human rights, support for reforms; • conflict prevention and fragile states; • human development; • social cohesion and employment. • mainstreaming cross-cutting issues: • democracy, good governance, human rights, rights of children and indigenous people; gender equality; environmental sustainability; fighting HIV/AIDS EDF Grant schemes

6. Sogerom SA • An opportunity for your organisation? • None state actors are invited to participate... • ...in a dialogue to address world critical issues • ...to act as services providers (participatory development) • Actors like you …. • … addressing the needs of the population, with specific competencies • …NGOs , umbrella organisations, thematic/regional networks, European platforms EDF Grant schemes

7. Sogerom SA • What type of activities? • In any areas supported by the ECD • At various steps of the PCM (identification, implementation, M&E) • EU and ACP contracting authorities • DG Dev, EuropeAid, EC Delegations in ACP countries • ACP secretariat, NAO of recipient country/sub-region • EC-funded institutions: CDE, CTA, etc. EDF Grant schemes

8. Sogerom SA • Regional projects • Microfinance (6.5 billions, 1 call, 100 proposals, 11 grants) • Water facility (750 millions, 2 calls, 800+550 proposals, ? grants) • Energy programme (220 millions, 1 call, 300 proposals, 75 grants) • ACP-EU Infrastructure Fund (60 millions Grants + EIB Loans) • Pro-Invest (110 millions, rolling calls) • ESIPP (similar to Pro-Invest, only on SADC) • Pest Integrated Programme - PIP (30 millions, rolling calls) • CDE (PSD) • CTA (Technical Centre for Agriculture/rural Development) • EDULINK (fostering CB in education through networking) • Strengthening Food Safety Systems through SPS measures • Support to the ACP movies industry EDF Grant Projects

9. Sogerom SA • Country specific Grant projects • 77 countries… • Many grant projects • Not always easy to identify but .. • Annual programme are published on EuropeAid web • Where to find them ? region /country • Check: one or multiple call programme • Check: RIP/NIP (national Indicative Programme), CSP • EuropeAid web, contact EC desk officer, ECD or NAO or PMU EDF Grant Projects

11. Net Revenues Net Income Earnings per Share

14. Sogerom SA • A few links • Strategy: DG Dev web-site • http://ec.europa.eu/development/PoliciesGen_en.cfm • Forecast, Open and closed international grants (region/country) • http://ec.europa.eu/europeaid/cgi/frame12.pl • Details of ACP Division of EuropeAid • http://ec.europa.eu/europeaid/where/acp/overview/index_en.htm • Programme web-site (exemple PIP) • http://www.coleacp.org/FO_Internet/Pip/Default.asp EDF Grant Projects

15. Sogerom SA • EDF Key features • Demand-driven (grants) versus Project Initiatives (contracts) • Open (or restricted) calls for proposals • International /national • Centralized (EC) versus decentralized (contracting authority/NAO) • … also from PMU, or CDE, CTA, etc • Application form and required documents • Resources at costs, kind or cash, sometimes co-financing • Guidelines + Application form + Budget + Logical framework • General and specific conditions (contract) EDF Grant Procedures

16. Sogerom SA • EDF Call for proposals criteria • Eligibility criteria: of lead applicant, partners, actions and costs • be legal persons and non profit making and be a Non State Actor and EU/ACP and good sources of finance and experience in the related field of actions being proposed and ... • Non cumulation of grant, non retroactivity of actions, • Partnerships: rights obligations apply to all partners • Budget: in general must involve co-financing (from 70% up to 5%) • Contract: % of the maximum amount of eligible costs • Evaluation: Only application with Concept notes pre-selected are evaluated EDF Grant Procedures

17. Sogerom SA • EDF Granting steps • Publication • Questions period • Deadline: 90 days from publication • Eligibility check and Evaluation • Notification of applicants • Contract preparation • Payment: advance of 80% of contract or of year 1. • Bank Guarantee: > 1 million • Procurement of goods services: must follow rules • M&E => reporting! EDF Grant Procedures

18. EDF Agreement Financial Proposal Financial Decision Financial Agreement and Technical and Administrative Provisions Contracts acp Third Party Supplies Works Services Grants Payment Advance Interim Final Sogerom SA

19. Sogerom SA • Knowing where you go.. To choose best • Map the funding opportunities that fit your strategy • Get connected... CONCORD, Euphoric, CONNECT • Know the context: ACP Peculiarities • poorest countries .. richest in natural resources • Diversity: 77 countries, many sub-regions, cultures and ethnics • ACP countries indicators (Transparency, corruption, stability, etc) • Few solid NGOs: absorption capacity • Choose the right programme/call • Choose your ACP partners with appropriate legal and financial standings EDF Grants Best Practices

20. Sogerom SA • Beware…. • Respect strictly the guidelines • Be cash rich..... • Making a good proposal (visit contact PMU, ECD, what is to be delivered) • Check payment conditions (including bank guarantee requirements) • Be patient.... (in general process longer then in other regions) • Don’t underestimate administrative overhead.... • Beware of Politics involvement: most ACP is still fragile in democracy... • Perverse effects of donor funding: the grant business of “trusted parties”...sponsored by authorities.. • No quick fix: it takes months to get funding EDF Grants Best Practices

21. Sogerom SA • Good Luck and Good bye…. • Bruno De Groote • SOGEROM, Luxembourg • admin@sogerom.com • T: +352-263 00675