Development and relations with African,Caribbean and Pacific StatesTogether for a better world

EC development financing instruments

Eero SaueA/2: Aid Effectiveness and

Relations with Member States

DG Development

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Structure

1. EU in the Global Context

2. What are the EC’s external aid instruments

3. Briefly on EC procurement

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Political Context

• MDGs

• European Consensus

• Paris Agenda

• ODA commitments

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

EU in the Global ContextGlobal Aid Flows 2008

49,468

18,031

6,493,275 2,75 2,194 1,397 0,24

83,8

0

10

20

30

40

50

60

EU 27 US Japan Canada Norway Australia Switzerland NewZealand

Total aid

€ b

illi

on

Source: European Commission and OECD

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Breakdown of EU aidEU Bilateral disbursements

PT; 0,6%EL; 0,5%FI; 1,2%

LU; 0,5%

EU12; 2,0%IE; 1,5%

AT; 2,0%

BE; 2,3%

IT; 2,8%

DK; 3,1%

SE; 5,5%

ES; 7,8%

EC; 22,2%

DE; 15,2%

UK; 12,6%

NL; 9,1%

FR; 11,1%

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

2008 EC external aid budget

Commission budget inside EU: €124 bn (91%)

External aid: €12.8 bn(9%) EuropeAid EDF

fund: €4.8 bn (37%)

EuropeAid Budget: €4.6 bn

(37%)

Non-EuropeAid Budget: €3.3 bn

(26%)

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). NB – 2008 provisional figures (April 09)

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

EC External Aid InstrumentsPolicy driven instruments: ► Instrument for Pre-Accession Assistance (IPA)► European Neighbourhood and Partnership Instrument (ENPI) ► Development Cooperation Instrument (DCI)► European Development Fund (EDF)► Economic Cooperation Instrument (ECI)► Instrument for Nuclear Safety Cooperation (INSC)► Human Rights and Democracy Instrument (EIDHR)

Crisis response instruments: ► Humanitarian Aid Instrument ► Macro-financial Assistance► Instrument for Stability

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Geography of funds - 2008

EuropeAid spending per region, ACP including South Africa and Bananas

In M€

Africa, Caribbean,

Pacific: 3443M 60%

Latin America: 310M 5%

Asia: 673M 11%

Neighbourhood east: 318M

5%

Neighbourhood south: 1137M

19%

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

ENPIScope Country and region specific programmes (95 %)

Cross border cooperation (CBC) programmes on the external borders (enhanced by ERDF funding)

Region: 17 countries: Mediterranean, Eastern Europe, Russia, Caucasus, Near East

Funding 11.8 bln EUR 2007-13, average €1.68 billion per year

Examples Palestine, all national envelopes, Eastern Partnership, NIF

web http://ec.europa.eu/europeaid/where/neighbourhood/http://ec.europa.eu/world/enp/

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

DCI Geographic programmesScope: Country specific programmes

Funding: Average € 1.4 billion p.a.

Regions: Asia € 740 millionLatin America 380South Africa 140 Central Asia 100Middle East 70

ENPI (under thematic) 70,5

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/

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

DCI Thematic programmes Funding Average € 800 million p.a.

Region All third countries except industrialised/pre-accession

Themes Investing in people € 150 millionEnvironment 120NSAs / local authorities 230Food security 240Migration / asylum 60

Examples: HR development in Fiji, food security in Niger, community dialogue in Lebanon, fight human trafficking

web http://ec.europa.eu/europeaid/what/human-social-development

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

10th EDFLegal Basis revised Cotonou Agreement:

Country and Region specific programmes Thematic programmes

Coverage 77 African, Caribbean, Pacific countries, OCTsFunding Total €22.682 billion

Average €3.7 billion per year Period covered 2008-2013

web http://ec.europa.eu/europeaid/where/acp/

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

The Programming Process

Strategy Papers

Strategy Papers

Multi-annual Indicative

Programmes

Multi-annual Indicative

Programmes

Action Programmes

Action Programmes

► Analysis of the situation

► Response strategy

►Priority sectors

► 7 years

► revised at mid-term

►normally attached to Strategy Papers

► set global and per priority allocations

► cover 3 – 4 years

►annual

► describe projects identified for financing

► define the budget per

project

►lead to EC decision & commitments of funds

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

EC procurement & grants

• Eligibility rules

• Financial Regulation

• Practical Guide (“PRAG”)http://ec.europa.eu/europeaid/work/procedures/implementation(practical_guide/index_en.htm

• EuropeAid funding opportunities http://ec.europa.eu/europeaid/work/funding/index_en.htm

Development and relations with African,Caribbean and Pacific StatesTogether for a better world

Summary

• EU donors = 27+1

• Same objectives, different instruments

• United in Diversity, for better impact