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EuropeAid
1
STATUS OF DELEGATED COOPERATION
European Commission
Dr Mehtab Currey
AIDCO/01
16 Oct 2009
EuropeAid
The Context for Delegated Cooperation
EuropeAid
Fragmented AidAid fragmentation in Bangladesh
IDA33%
AsDF19%
UK13%
EC5%
Japan5%
Netherlands4%
Canada4%
Denmark3%
United States3%
Germany2%
Sw eden2%
Norw ay2%
UNDP1%
UNICEF1%
Sw itzerland1%
The Global Fund1%
11 smallest donors < 1%
IFAD1%
EuropeAid
Less Aid Fragmentation with EU Together
IDA32%
EU31%
AsDF18%
Japan5%
Canada4%
United States3%
Norw ay2%
UNDP1%
UNICEF1%
6 smallest donors <1%
The Global Fund1%
Sw itzerland1%
IFAD1%
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Sector Level: Pharmaceutical Procurement by Donors in Kenya
Contra-ceptives and
RHequipment
STIDrugs
EssentialDrugs
Vaccinesand
Vitam in ATB/Leprosy
BloodSafety
Reagents(inc. HIV
tests)
DFID
KfW
UNICEF
JICA
GOK, W B/IDA
Source offunds for
com m odities
Com m odityType
(colour coded) M OHEquip-m ent
Point of firstw arehousing
KEM SA Central W arehouse
KEM SARegionalDepots
Organizationresponsible
for delivery todistrict levels
KEM SA and KEM SA Regional Depots (essential drugs, m alaria drugs,
consum able supplies)
Procurem entAgent/Body
Crow nAgents
Governmentof Kenya
GOK
GTZ(p rocurem ent
im plem entationunit)
JSI/DELIVER/KEM SA LogisticsM anagem ent Unit (contraceptives,
condom s, STI kits, HIV test kits, TBdrugs, RH equipm ent etc)
EU
KfW
UNICEF
KEPI ColdStore
KEPI(vaccines
andvitam in A)
M alaria
USAID
USAID
UNFPA
EUROPA
Condomsfor STI/
HIV/AIDSprevention
CIDA
UNFPA
USGov
CDC
NPHLS store
M EDS(to M issionfacilities)
PrivateD rug
Source
GDF
Governm ent
NGO/Private
Bilateral Donor
M ultilateral Donor
W orld Bank Loan
Organization Key
JapanesePrivate
C om pany
WHO
GAVI
SIDA
NLTP(TB/
Leprosydrugs
Commodity Logistics System in Kenya (as of April 2004) Constructed and produced by Steve Kinzett, JSI/Kenya - please com m unicateany inaccuracies to skinzett@ cb.jsikenya.com or telephone 2727210
Anti-RetroVirals
(ARVs)
Labor-atorysupp-
lies
GlobalFund forAIDS, TB
and M alaria
The"Consortium"
(Crow n Agents,GTZ, JSI and
KEMSA)
BTC
M EDS
DANIDA
M ainly District level staff: DPHO, DPHN, DTLP, DASCO, DPHO, etc or staff from the Health Centres,Dispensaries com e up and collect from the District level
M EDS
Provincial andDistrict
HospitalLaboratory
Staff
Organizationresponsible fordelivery to sub-
district levels
KNCV
M SF
M SF
EuropeAid
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
EuropeAid
EuropeAid
Division of Labour DRAFT WORKING DOCUMENT
Fast Track Countries This document has no formal EU status
FACILITATING EU DONOR(countries underlined also participate in the fragile states pilot) SUPPORTING EU DONOR
COUNTRIES COM CZ DE DK FR IE IT NL ES SI SE UK
Latin America1 Bolivia2 Nicaragua
Carribean3 Haiti
Asia4 Bangladesh5 Cambodia6 Laos (LM letter)7 Vietnam
8 Albania9 Kyrgyz Republic
10 FYROM11 Moldova12 Mongolia
Africa13 Benin14 Burkina Faso15 Burundi16 Cameroon17 CAR18 Ethiopia19 Ghana20 Kenya21 Madagascar22 Malawi (LM letter)23 Mali24 Mozambique25 Rwanda26 Senegal27 Sierra Leone28 Tanzania29 Uganda30 Zambia
Footnote: supporting donors marked in yellow means that these will be actively helping out the facilitating donoras all EU donors have adopted the EU Code of Conduct these are all participating in division of labour processes, and are therefore not individually mentioned
EuropeAid
Based on monitoring of 22 countries in 2008and 5 Missions at country level:
• Donor mapping and self-assessment of comparative advantage well under wayBUT: sometimes only provide general, superficial or outdated data
• Lead donor arrangements in placeBUT: seem to vary across countries and sectors, e.g., in some countries only on policy dialogue and not financial
Monitoring Division of Labour
EuropeAid
• 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
Monitoring Division of Labour
EuropeAid
Delegated CooperationState of play
EuropeAid
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. […]”
Delegated Cooperation
EuropeAidDelegated 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
EuropeAidEC 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
EuropeAid
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
EuropeAid
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)
EuropeAid
Division of LabourEU Next steps
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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
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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
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