Presentation on theme: "October 2010 – Delegation KENYA - FVDE"— Presentation transcript:
1 October 2010 – Delegation KENYA - FVDE EU financial & contractual Procedures (10th EDF & budget) How to implement EU funding (with others)…October 2010 – Delegation KENYA - FVDE
2 Legal basis and where to find our rules EDF : Revised Cotonou AgreementBudget : DCI Regulation, EIDHR Regulation & bananasFinancial Regulation and implementation Rules (Budget); 10th EDF Financial Regulation (Internal agreement 10th EDF & Regulation on 10th EDF implementation)
3 Legal basis and where to find EU rules PRAG Practical Guide to contract procedures for EC external actions (December 2008) : same document for EDF and budgetFinancial Guide (one for Budget and one for EDF)Practical Guide for programme estimates (version December 2009): same document for EDF and budgetSeveral instruction notes
4 Legal basis and where to find EU rules 10th EDF rules apply for projects financed on 10th EDF and on 9th EDF if a jumbo rider was signedSTABEX and 8th EDF projects still ruled by 8th EDF rulesProjects financed on (thematic) budget lines are ruled by BUDGET rules
5 By WHO can a project or a programme be implemented ?Management modes
7 Centralised management DIRECTImplementation done by the services of the EU(at HQ or in delegation)EU procurement & grant procedures apply (we launch tenders, sign contracts, make payments, etc...)Examples: Somalia operations, Audit & Evaluation contracts,framework contracts, Budget support, …
8 Delegated cooperation : centralised indirect There is a delegation of implementation tasks by the CommissionImplementation done (1) by bodies set up by the Communities or other specialsed Community bodies such as EIB or EIF, (2) national or international public sector bodies or bodies governed by private law with public service mission providing adequate financial guarantees and complying for with provisions IRProcedures of the delegated body can apply or EU procedures
9 Delegated cooperation : centralised indirect An ex-ante institutional assessment needs to be carried out of 6 pillarsA delegation agreement is signed
10 Delegated cooperation : joint management There is a delegation of implementation tasks by EUImplementation done by an international organisation(includes EIB)The IO concerned can apply its accounting, audit, internal control and procurement procedures which offers guarantees equivalent to the international accepted standardsA contribution agreements is signed (similar to a grant contract but more flexible)
11 Delegated cooperation : decentralised There is a delegation of implementation tasks by the Commission to third countries (beneficiary countries)Implementation done by beneficiary country with ex-ante control by the EU (partial or substantial decentralisation) or ex-post control (total decentralisation)Other Procedures than EU can apply (case by case, after assessment)Financing agreement to be signedEx-ante control could be delegated to another body
12 Delegated cooperation : decentralised criteriapartlyfulfilleddecentralisation of contractual proceduresPractical Guideon ContractProceduresex-ante control by COM at every step forprocurement contracts > 50,000 EUR + for grants(payment remains centralised)++ decentralisation of paymentsPractical GuideProgrammeEstimates< certain thresholds (ex-post control by COM)Lire aussi (pour formateurs!) Guide financier Budget, chap – annexé aux SO de cette session!! Pour critères voir aussi RF ’ et GDP !!Il y a 3 niveaux de décentralisation à distinguer (voir aussi en référence au slide 3).Seulement les procédures contractuelles sont décentralisées par la Com au pays bénéf: le pays peut donc établir le DAO/LD, lancer l’AO/AAP, réceptionner, évaluer, attribuer. Mais dans tous les cas, il y aura l’approbation de la Com avant chaque étape (contrôle ex-ante), SAUF pour les marchés publics ≤ € 50,000. L’exécution des paiements reste dans tous les cas du ressort de la Com. Tout ceci doit être fait dans le respect du Guide prat proc contractuelles.En plus de la situation 1, les paiements peuvent être décentralisés: càd le pays bénéficiaire peut exécuter les paiements au bénéf final, mais jusqu’à certains plafonds (max.!) => voir slide suivant. La Com exerce alors un contrôle ex-post, par ex lors de l’approvisionnement. On se trouve dans le contexte de DP, et donc en plus du Guide Proc Contr, ici il faudra aussi respecter le GDPSi tous les critères sont remplis, le pays bénéf recoit le pouvoir d’exécuter tous les paiements aux bénéf finaux, avec contrôle ex-post de la Com.Dans le cas de DP, on se trouve donc dans la situation de l’accumulation du niveau 1 et 2 de décentralisation.NB: in MEDA, avant 2004, gestion décentralisée; depuis 2004: gestion décentralisée partielle => CF établies après cette date suivent donc surtout 2ème cas de figure, ie décentralisation des procédures contractuelles et des paiements jusqu’à certains seuils, avec contrôle ex-post.Question to AIDCO/A5: where does the limit <50,000 has its reference other than in the Programme Estimate Manual? Because here we are not at the level of PE yet…. > Aidco: exists in the BUDGET, this comes from a procedure called ‘environnement simplifiée’allcriteriafulfilledSubstantial or total decentralisation(possibly only ex-post control by COM)
13 Delegated cooperation : decentralised Thresholds of contracts and grants for (partial)decentralisation of payments (Practical Guide forProgramme Estimates applies)WorksSuppliesServicesGrants< €< €< €≤ €La décentralisation des paiements se fait sur les contrats conclus jusqu’aux seuils (max!) indiqués ici.Les contrats peuvent être signés uniquement par des personnes habilités (Régisseur, voir plus loin).
14 Delegated cooperation NOTEThe other way around isalso an option :EU to receive funds fromother donors throughtranfer agreement(assigned revenues)14
15 EU Implementation modalities Delegated cooperation with MS bodies, international organisations or benef. country (if partial decentralisation through programme estimates)Budget supportProcurement contracts (services, supplies & works)Award of grant contractsOther15
16 Working with EIB ? HOW ? If several donors First question is who will be responsbile for managing the “common pot” (donor, beneficiary state, ...)Type of funds (EU : non reimbursable aid (grants), other donors: very often loans), blending the two makes loan conditions cheaperContractual arrangements to be made, depending on who is managing common potDetermine level of control (ex-ante or ex-post) donors want to exercise
17 Working with EIB, if EIB manages common pot, HOW ? Preferred option at this stage would be joint management with a contribution agreement if type of project/intervention allows or ad-hoc agreement (see Infrastructure Trust Fund)Under Neighbourhood Instrument as framework agreement is under negotiation to cover specialised interventions such as risk capital, loan guarantees (interest rate subsidies), ...Under revised Financial Regulation (2012) a new more flexible implementation mechanism will be introduced for financial intermediairies
19 IMPLEMENTATION MODALITIES HOW can a project or a programmebe implemented ?IMPLEMENTATION MODALITIES
20 EU Implementation modalities Budget supportProcurement contracts (services, supplies & works)GrantsDelegated cooperation with MS bodies or international organisationsIf partial decentralisation : programme estimatesOther20
21 EU Implementation modalities Delegated cooperation with MS bodies, international organisations or benef. country (if partial decentralisation through programme estimates)Budget supportProcurement contracts (services, supplies & works)Award of grant contractsOther21
22 Implementation procurement procedures 10th EDF/Budget ServicesSuppliesWorksInternational open tender->= EUR>= EURInternational restricted tender>= EUR- (derogation)Local open tender< EUR and >= EUR< and >= EURCompetitive negotiated procedure> EUR and < EUR> EUR and < EUR> EUR and < EURFramework contractSingle tender<= EUR
23 Implementation : procurement Alternative procedure applicable to works,supplies & services contracts = negotiatedprocedure but only in well defined cases, aprior approval is needed from authorisingofficer concerned (HQ or HoD)See note on derogations and prior approvals:
24 Implementation : procurement One important possibility to do a negotiated procedure for service contracts is : “where the services are entrusted to a public sector bodies or to non-profit organisations or associations ans relate to activities of an institutional nature or designed to provide assistance to people in the social field” A prior call for interest could be considered...
25 Implementation : grants What is a grant ? Co-financing and non profit are requirements !How to award a grant ?Open or restricted call for proposalIn well defined cases a direct award is possible, prior appoval is needed by authorising officer concerned (HQ or HoD)See note on derogations and prior approvals:
26 Implementation : grants One important possibility to do a direct award for grants is: “Actions with specifi characteristics that require a particular typ of body on account of its technical competence, its high degree of specialisation or its administrative powers ... “ A prior informal call for expression could be considered...
27 Implementation : grants Special cases of grants :Interest rate subsidiesTwinning / exchange activities
28 Implementation : decentralised operations & programme estimates Tasks (including payment and contracting up to certainceilings) are delegated to an imprest administrator and animprest accounting officer through a programme estimateDirect decentralised operations (department of ACP State concerned is in charge)Public indirect decentralised operations (public body legally distinct from ACP State is in charge)Private decentralised operations (private operator is in charge & responsible) – not for budget lines !
30 Financing decision – (Annual) Action Plan Country Strategy Paper & NIP(Joint Strategy Paper for Somalia)Identification fichesQuality Support Group (1)30
31 Financing decision – (Annual) Action Plan Annual Action Plan(s) with indicative budgetQuality Support Group (2)Financing Decision(after Inter-service Consultation & opinion Member StatesCommittee & Parliament)31
32 Financing decision – (Annual) Action Plan Financing Agreementsigned between EU and beneficiary country (not always applicable !!)=Special Conditions, General Conditions (Annex 1) and Technical & Administrative Provisions (TAPs – Annex 2)32
33 Important dates to keep in mind Deadline to sign financing agreement (31.12.n+1)Contracting deadlines (date of signature + 3 years or n+1 if no financing agreement)Period of execution of a financing agreement = operational implementation phase + closure phase
34 Important dates to remember What happens once the contractingdeadline is expired in a financingagreement ?
35 What “implementation issues” to be Management modesWhat “implementation issues” to beput in an Annual Action Plan (chapter 4)?Method of implementation - Management modesApplicable rules & proceduresBudget (always put in contingencies !) and calendarMore details will be given in TAPs (templates !)35
36 Implementation : eligibility rules For Budget : see applicable Regulation (DCI, EIDHR, ...)10th EDF :Individuals, legal persons, supplies and materials orginating from ACP States and 27 EU Member StatesInternational organisationsCountry participating in a regional initiativeThird Country in case of cofinancingDerogations still possible with prior approvalFor more details per instrument : see annex A2 of PRAG