1. STATUS OF DELEGATED COOPERATION
Aid Effectiveness, EuropeAid
STATUS OF DELEGATED COOPERATION
European Commission
Dr Mehtab Currey
AIDCO/01
16 Oct 2009

2. The Context for Delegated Cooperation

3. Fragmented Aid

5. Sector Level: Pharmaceutical Procurement by Donors in Kenya
Aid Effectiveness, EuropeAid
Aid Effectiveness, EuropeAid
Sector Level: Pharmaceutical Procurement by Donors in Kenya 5 5 5 5

6. Division of Labour
Objective: Reduction of transaction cost and of aid fragmentation without reducing aid volume
Concentration on 3 sectors plus budget support
Lead donor arrangements
Delegated cooperation arrangements
Implement coordinated missions

9. Monitoring Division of Labour
Based on monitoring of 22 countries in 2008
and 5 Missions at country level:
Donor mapping and self-assessment of comparative advantage well under way BUT: sometimes only provide general, superficial or outdated data
Lead donor arrangements in place BUT: seem to vary across countries and sectors, e.g., in some countries only on policy dialogue and not financial

10. Monitoring Division of Labour
Lack of ownership
Limited political push from capitals
Unclear collective decision making process
Strategic planning not synchronised
Little commitment of non-EU donors
Lack of timely systematic data on donor presence
Legal and administrative challenges
Individual versus common rationality

11. Delegated Cooperation State of play

12. Delegated Cooperation
DoL Guiding Principle 4: Delegated Cooperation
“If a given sector is considered strategic for the partner country or the donor, EU donors may enter into a delegated cooperation/ partnership with another donor and thereby delegate authority to the other donor to act on its behalf in terms of administration of funds and / or sector policy dialogue with the partner government. […]”

13. Delegated Cooperation
Council Conclusion 2006:
“Urgent need to revise some existing EC rules, in order to put them in line with the requirements of the Paris Declaration - in particular regarding joint EU co-financing activities…”
Done for all instruments, end 2007

14. EC Approach as delegating donor
Art 56 assessment approved (9): SONA (NL Antilles); AfD (FR), KfW and GTZ (DE), ADA (AT), BTC-CTB (BE), IPAD (PT), Lux-Development; Ministry of Foreign Affairs Netherlands
Under Assessment (8): AECID (ES); DED (DE); DFID (UK); FCI (FR); Ministry of Foreign Affairs Denmark; Ministry of Foreign Affairs Finland;SIMEST (IT);
Potential (42): EU MS institutions (criteria: public, federal, and development cooperation) Plus: Non-EU donors like AusAid

15. EC Approach as Delegating Donor
Once and for all ex ante assessment to verify compliance with EC financial regulations
Status in Oct 2009
54 proposals at different stages
40 Delegation Agreements (DA): € 216m
14 Transfer Agreement (TA): € 122 m
ACP 26/9, other EDF 3/0, Asia 5/3, LA 1/0, ENPI South 1/1, ENPI East 1/0, Thematic 3/1
Proposals range from 0.7m up to 38.5m

16. Challenges for Delegated Cooperation
Legal formulation of templates  Treaties?
Whether lead donor (delegated agreement) uses country systems
Delegated cooperation in context of division of labour: E.g. Mali: 6 proposals already while division of labour process still to start
Too many (small) projects  inefficient?
Global overview: how to keep track?
Commercial interests of MS Agencies
Reciprocity (per country or globally)

17. Division of Labour EU Next steps

18. Operational Framework GAERC (1)
Objectives:
Collective EU political decision making at headquarters level
Enabling environment, instruments and incentives
Communication between headquarters and country level
Political: Letter of Com de Gucht to Ministers
Agreement on country list for fast tracking with responsibilities for all EU donors
Joint decision making meetings in capitals per country 18

19. Operational Framework GAERC (2)
High level missions in-country
Promotion of multi-annual programming
Limitation of vertical and thematic funding outside multi-annual programming and focal sectors
Joint action plans for each fast track country by March 2010
Monitoring and reporting to Council annually 19