administrative capacity building linked to the management of esi funds priorities for 2014-2016...

Administrative Capacity Buildinglinked to the management of ESI

Funds

Priorities for 2014-2016

Committee of the Regions, 19 June 2014Pascal BoijmansHugh Goldsmith

Nathalie VerscheldeDG Regional and Urban Policy - Unit E1 "Competence Centre for Administrative

Capacity-Building and the Solidarity Fund"1

Mandate

We are a new unit set up to enhance the capacity of the Commission services to

help Member States and regions to overcome implementation bottlenecks

linked to administrative capacity problems in order to accelerate the

absorption of Funds and improve the quality of spending in the current and

future programming period. (E1 mission statement)

DG Regional and Urban Policy - Unit E1 "Competence Centre for Administrative Capacity-Building and the Solidarity Fund"

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Scope of our work:

• Administrative capacity linked to the management of the funds• Geographical: Member States and regions with weaker

administrative capacity• Horizontal: e.g. public procurement, environment, state aid, Land

Registers• Sectoral: sectors which lag behind in absorption like railways,

waste water treatment, solid waste, information society • Knowledge development: WB, OECD, EIB/Jaspers, Interact, IQ

Net, RSA…: methodologies, indicators, training, networks• Good practice database: exchange of good examples


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How to design administrative capacity?

Three interrelated factors determine the success of each step in the policy life cycle:

•Structure & Governance•Human Resources•Systems and Tools


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Administrative capacity bottlenecks in Member States

• Complexity of administrative organisations in some MS with unclear delegation of tasks

• High staff turnover in some MS: lack of clear HR policy• Development and implementation of strategic plans: weak in

several MS• Weak project development capacity of (local) beneficiaries• Underperforming sectors due to administrative capacity • Bottlenecks linked to public procurement and state aid• Insufficient monitoring systems in place• Risk of fraud and corruption: reputational risk


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Implementation rates after 7 years = 62% and 57% for ERDF and CF

Interruptions of payments amount to € 4.3 billion

€ 1 billion financial corrections

STATE OF PLAY – IMPLEMENTATION 2007-2013

SOMETHING NEEDS TO BE DONE…

Strong correlation between Government Effectiveness and Corruption

Latest data for all 28 Member

States

Competence Centre Work programme Already launched during 2013 :

Guidance and screening (27 PAs + 10 OPs) Public Procurement Action Plan Expert Exchange System (demand/supply analysis) Anti-fraud & anti-corruption events Study on funding of salaries from TA budgets Knowledge development (country fiches, EIBURS, links

to international organisations) Extended matrix with strong and active participation and

Inter-Service Group


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Also coming in 2014-2016 :

Modelling of fund management bodies Strategic training programme Exchange Platform for MAs and IBs Integrity Pacts pilot project Action Plan on State Aid Knowledge development : indicators Transparency, open data & promoting good governance


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Better implementation rates, reduced error rates, more effective investments

2 concrete project examples:

Public Procurement Action Plan

Hugh Goldsmith

CEES: Common Expert Exchange System

Nathalie Verschelde


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Public ProcurementAction Plan

EP Public Hearing01.10.2013

OLAF Study 2013 - Headlines

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• Direct public loss was 18% of the overall project budgets concerned, of which 13% attributed to corruption

• Overall direct cost of corruption for 5 sectors & 8 Member States studied estimated at:€1.4 - 2.2 billion

• Main forms of corruption: Bid-rigging; kick-backs; conflicts-of-interest; deliberate mismanagement

Public Procurement (PP) Basics

Key principles• Transparency• Equal treatment &

non-discrimination• Proportionality… in purchase of works,

supplies and services by public entities or entities with a public service mission in “special” sectors (water, energy, transport and postal services)

Legal enactment• Directive 2004/18/EC

(Classic Directive)• Directive 2004/17/EC

(Special sectors)• Directive 2007/66/EC

(Remedies Directive)• MARKT Interpretative

Communications & Explanatory Notes

• ECJ Case Law

A complex area with … New Directives 2014

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RISKSRISKSCompliance:•Fraud/Corruption•Errors => Financial Corrections

OPPORTUNITIESOPPORTUNITIESUse of public funds:•Value-for-money•Support to policy

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Public Procurement using ESI Funds

Improving public procurement (PP) involving EU Funds is a priority

It matters - 19% of EU GDP passes through public procurement!

Increasing EU-level competition for PP contracts is a core policy strengthening the single market

PP errors are single most common cause of administrative errors and financial corrections across all EU Funds

Slow PP procedures delay funds implementation Better PP procedures and management systems can help

limit risks related to Fraud & Corruption through more transparency, "red flag" checks etc

Major scope to pursue broader policy objectives via PP (green PP, PP of innovation, social inclusion, SME access to markets)

16… need to build capacity

DG REGIO audit workPublic Procurement irregularities

40% of irregularities detected by DG REGIO since 2005 are due to non-compliance with Public Procurement rules

European Court of Auditors: DAS 2011: 44% of all quantifiable errors were due to Public Procurement. From 2007-2012 32% of all transactions audited were affected by PP errors

National audits: report more and more irregularities on Public Procurement

Affects all Member States

Lots of fragmented initiatives …

• DG ENV 2008 "Green Public Procurement" toolkit• DG MARKT 2011 Study "Public procurement in

Europe: Cost and effectiveness" • DG MARKT 2012 Implementation Report &

"Golden book of e-procurement good practices"• DG ENTR 2013 Launch of "Procurement of

Innovation Platform"• OLAF 2013 Study "Identifying and reducing the

costs of corruption in Public Procurement" • DG HOME 2014 First "EU Anti-corruption Report"

identifies PP as "most vulnerable area" 18

Technical Working Group on PPestablished Sept 2013

Purpose: To develop common understanding of issues, and to prepare & deliver an Action Plan to support MS improve Public Procurement performance for ESI Funded investments during 2014-2020

REGIO (Chair), MARKT, EMPL, AGRI, MARE, EIB

ESI Fund DG's have most "in the field" knowledge from audits

MARKT primary focus is on policy (transposition and application of legislation), particularly preparation for new PP Directives, but also increasingly looking at implementation issues

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Action Status CommentsPrepare and appropriately disseminate Practical Guidance on "How to avoid common PP errors"

On-goingDraft ready

Prelim draft Guidance and Toolkit for discussion

Compilation and analysis of PP evidence/indicators on performance related to EAC negotiations

On-going Most data rec'dData request to ECA pendingMS v EC opinion

Transparency initiative against corruption/fraud in PP

On-going Anti-Fraud Conferences: SK, CZ, BG, RO, HR, IT (last 25/6)

MS specific Action Plans (RO, GR, BG & IT)

On-going GU lead

On-going in RO, BG pending (GR under Programme), IT proposal

Stock-taking/analysis of MS lessons learned, dissemination tools, good practices, etc. to improve PP capacity

Scoping Initial scoping mission to Scottish Procurement. ToR under preparation

Guidance on how to prepare and follow-up on EAC Action Plans

Started Learning by doing in BG. Will be prepared by E1 with Expert

Pilot integrity pacts Scoping Under study by REGIO/E1

ESI Funds PP Joint Action Plan

Approved by REGIO Board February 2014

Other Actions Identified

Preparation for new PP Directives (2016) – support to transposition, training, dissemination programmes (MARKT lead)

Assessment of current practices and scope to improve PP professionalization and accreditation linked to funds (will be started under Stocktaking Study)

Training/networks on PP as a strategic tool for Cohesion Policy (e.g. e-procurement, Green PP, Innovation: coordination with DGs ENTR and ENV)

Peer-to-Peer exchange mechanism (CEES) to include PP as pilot topic 21

Practical Guidance on "How to avoid common PP errors"

Target Audience is “Procurement Officer” managing day-to-day procurement activities

Guidance structured around the main stages of a public procurement process, highlighting issue to look out for and potential mistakes to avoid, with links through to a more detailed …

Toolkit of resources addressing specific topics in greater depth and giving concrete examples on what to do and what not to do during the procurement and contract management stages of the project cycle.

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Guidance for PractitionersStructure:1.Preparation and planning2.Invitation to bid3.Bid submission and opening4.Evaluation5.Award6.Contract implementation

Step by step description of the PP processhighlights areas of typical mistakeswhy and how to avoid them explanations of how to handle each situation list of most common/ most serious errorsLink to Toolkits on specific topics with examples

Translation into EU languages23


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Achievements to date:

•Good collaboration & coordination mechanism established with mandate to deliver useful tools to support MS

•Focus on both compliance (reduce errors) and value-added (policy support)

•Concrete actions and deliverables


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PURPOSE:Is there interest for a peer-to-peer exchange system among the ESIF management bodies (MA,CA,AA, IB) ?

METHODOLOGY:- On-line questionnaire all MA, CA and AA- Interviews in 8 Member States (33 institutions)

CONTRACTOREuropean Institute of Public Administration (Maastricht, NL)

Common Expert Exchange System (CEES)

Supply/demand analysis


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KEY QUESTIONS: Do you have capacity building needs ? Which ones ?How do you go about building capacity ?Your experience with private consultants and peer-to-peer support ?Your interest in peer-to-peer exchanges ? To do what ?Role of the Commission ? Use of Technical Assistance to cover costs ?

Common Expert Exchange System (CEES)

Supply/demand analysis

Web-survey : response rate


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Number of addressees (persons): 408Number of replies submitted: 131Percentage submitted replies: 32% Responses from 27 MS

Key findings - survey (1)


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48%

46%

6%

NeedsYES NO No opinion

90%

5%5%

InterestYES NO No opinion

Key findings – survey (2)


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0 10 20 30 40 50 60 70 80 90 100

other

IFI

Twinning/TAIEX pre accession

academic institutions

Peers from other MS

Networks/platforms

private consultants

conferences/seminars

Type of capacity-building measures used


30DG Regional and Urban Policy - Unit E1 "Competence Centre for Administrative Capacity-Building and the Solidarity Fund"

0 5 10 15 20 25 30

highly unlikely

indifferent

highly likely

Likely to use peer-to-peer



Assistance required mostly for :1.Programme Management : financial instruments, simplified cost options, financial management and verifications, anti-fraud measures

2.Ex-ante conditionalities : Public Procurement and State Aid

3.Thematic Objectives : TO1 (Research & Innovation) and TO11 (institutional capacity)



0 10 20 30 40 50 60 70 80

matchmaker

document exchange

launch seminars

National contact points

quality control (screening)

legal & admin support

draft assignement requests

database good practices

role of the Commission



47%

3%

50%

Prepared to pay ?YES with TA YES own resources NO



16%

16%

68%

Prepared to pilot ?yes, as a recipient yes, as a provider not now

Key findings – interviews (1)


Key findings – interviews (2)


• Strong message that more systematic peer-to-peer exchanges would be most welcome – interviewees in their majority expressed a need to have more contacts with peers

• But also strong need to have a place where they can talk to each other, and to the Commission = platform ? Social media ?

• Ad-hoc networks exist – build on them or embed them in a wider system

• Peer-to-peer assistance is complementary to private sector consultant assistance. Neither can cover all the needs – both should be used depending on the needs and tasks

• If a system is set up, it should be : light (non-bureaucratic), flexible (short, medium and long-term assignments), rapid (quick missions for burning issues)


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Main conclusions :

•MS strongly in favour of a peer-to-peer exchange system•System must be light, flexible and rapid•Commission should coordinate and control quality•Also a strong need for a platform to exchange views, questions, practices•And a need for more training (new CPR)


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Follow-upPeer-to-peer

•Unit E1 to make proposals to REGIO Board of Directors (July)•Pilot projects during Autumn 2014•Exploring system options (IT, coordination in MS, database of experts, etc.)•Launch system early 2015•Evaluate in 2018


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Follow-upOther measures

•Explore options to set up an IT-platform for MA, CA, AA. Technical dimension, content and management•Organise strategic training on new elements of ESIF implementation for 2014-2020 (pilot project on-going, first training session on 23-24/06)

Staffing and contacts in Competence Centre REGIO.E1

Pascal Boijmans, HoU Ann-Kerstin Myleus, Deputy HoU Daniela Negreanu, Secretariat

AC Team: Inguna Kramina, Agnieszka Krasicka, Denisa Perrin, Nathalie Verschelde, Hugh Goldsmith (EIB), Laura Indriliunaite, Anna-Lena Zademach

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Thank you !Please do contact us

[email protected]

administrative capacity building linked to the management of esi funds priorities for 2014-2016...

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