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

Introduction to External Aid and Project Cycle Management Valerie Bandeira de Lima Sax EuropeAid 11 June 2010. 1. External aid context. EU/EC aid history . 1950s - 1990s EC expansion of aid to ACP, Eastern Europe, Mediterranean, Asia, Latin America, Balkans and

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

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  1. Introduction to External Aid and Project Cycle ManagementValerie Bandeira de Lima SaxEuropeAid 11 June 2010

  2. 1 External aid context

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

  7. The EC and the external aid budget 2009 External aid: €12.3 bn(9%) EuropeAid EDF fund: €3.5 bn (28%) Non-EuropeAid Budget: €3.3 bn(27%) Commission budget inside EU: €131 bn (91%) EuropeAid Budget: €5.5 bn (45%) 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. 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. EU and EC aid implementation Budgetary constraints – EU ODA % of GNI: actual 2009, forecast 2010, objective 2015 2015 Source: EC data base on MS information to the EC or the DAC for 2009.

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

  11. 2009 EuropeAid PerformanceBudget & EDF paymentsPlanned: €7.6bn - we did €7.4bn Budget EDF

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

  13. 3. EuropeAid

  14. EuropeAid mandate ● since 2001 responsible forimplementing external aid programmesacross the world ● aims todeliver development aid in an efficient and effectiveway ● responsible for all the steps of an aid delivery project:  identification  feasibility  financial decisions & controls  tendering  contracting  monitoring  evaluation

  15. AIDCO organigramme

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

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

  19. Devolved implementation workflow PROGRAMMING DESIGN APPROVAL IMPLEMENTATION EVALUATION 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 DELEGATION AIDCO DELEGATION AIDCO 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 Abbreviations: AAR Annual Activity Report; COM Commission; DEL Delegation; ISC Interservice Consultation; DAS Declaration d’Assurance; QSG Quality Support Group

  20. 4 The programme cycle

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

  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:largemoneytransfer to the national treasury of a partner country in support of a national development policy. Use of country procedures.

  23. 5 Aid programmes implemented by EuropeAid & EU Delegations

  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. European Neighbourhood & Partnership Instrument Scope Country specific programmes Cross border cooperation with EU Member States Region 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Middle East Funding Average €1.6 billion per year Examples Palestine, migration management in Ukraine web http://ec.europa.eu/europeaid/where/neighbourhood/

  26. Health sector reform in Egypt

  27. Development Cooperation Instrument (1) Scope I Country specific programmes Funding average € 1.4 billion p.a. Regions Asia € 740 million Latin America 380 South Africa 140 Central Asia 100 Middle East 70 Examples Primary 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. Bridge in Pozuzo, Peru

  29. Development Cooperation Instrument (2) Scope II Thematic programmes Funding average € 800 million p.a. Region all third countries except industrialised / pre-accession Themes Investing in people € 150 million Environment 120 NSAs / local authorities 230 Food security 240 Migration / asylum 60 Examples HR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking web ec.europa.eu/europeaid/what/human-social-development

  30. Protecting biodiversity in China

  31. 10th European Development Fund (EDF) Scope Based on Cotonou agreement: Country specific programmes Horizontal programmes Region 78 African, Caribbean, Pacific countries and OCTs Funding average €3.7 billion per year Start July 2008 Examples primary 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. Access to water in Ghana

  33. Democracy and human rights (EIDHR) Scope Human rights Democracy (election observations) Rule of law Fundamental freedoms Region all third countries Funding average €160 million per year Examples Rehabilitation 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. Election observation in Mali

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

  36. Demining in Afghanistan

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

  38. Nuclear waste disposal facility at Chernobyl Nuclear Power Plant

  39. Food Facility Scope encourage producers to increase supply; deal with soaring food prices; increase food production capacity Region mostly Sub-Saharan Africa, South-East Asia and Central America (total of 50 priority countries) Funding average of over €330 million per year for a period of 3 years (‘09-’11) V-Flex Examples support 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

  40. Food security in Eritrea

  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. 6. Towards delivering better aid

  43. Better aid: quality assessment & evaluation  Quality feedback at design stage Screeningof project ideas throughQuality 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. QualityResults oriented monitoring - results Large majority of projects are performing well, Slight improvement in 2009

  45. QualityROM study – why projects perform badly

  46. QualityROM Study – why projects perform well

  47. ImpactEvaluations: Main Findings

  48. 7 Aid Effectiveness

  49. Better aid: aid effectiveness 49

  50. 50

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