External Aid Workshop: Developing projects in Low and Middle Income countries. Copenhagen, 1 June 2017

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1 External Aid Workshop: Developing projects in Low and Middle Income countries Copenhagen, 1 June 2017 Ines Ferguson, Chair European External Aid Committee

2 EFCA Is the only association representing the engineering consultancy industry in Europe Comprises professional associations from 25 European countries Represents FIDIC in Europe Aspires to positively influence EU legislation that impacts on the engineering consultancy business Promotes fair competition and transparent procurement rules Is a network/business platform for member associations and European firms

3 European External Aid Committe (EEAC) Aims to improve the consulting engineering industry s business opportunities and contracting conditions with European Institutions outside the EU Eastern Europe Central America Caribbean Latin America Mediterranean Africa South Africa Asia South Asia Pacific

4 ToR Continuous improvements of the Practical Guide to contract procedures for EU external actions (PRAG) Advocacy of the highest international standards of fairness, openness, transparency and competition in the procurement of service contracts Ensure equal opportunities to bidders and transparency in the procurement process: publication of all blended project opportunities in the OJ (TED) Participation in the dialogue with other International Financing Institutions through FIDIC

5 Main achievements I PRAG 2015 and 2016 Reference validity period extended to 5 years Financial selection criteria softened: current ratio to be at least 1 Quality-Cost Ratio kept at to preserve quality Prior Information Notice (PIN) is kept: strategic for firms Conflict of interest is no longer systematic: proof from the Contracting Authority DB/DBO methods: emphasis on appropriate use, project preparation and project delivery support, review of the PRAG set of documents

6 Main achievements II Limit the use of Budget Support in European External Aid Improve the Blending instrument to encourage private sector participation Contribute to the WB Procurement Policy Reform through FIDIC Centralise and advise on European best practice in procurement for external actions

7 Global framework and objectives for 2030 Additional financing mecanisms

8 The EU in a global context: main challenges Sustainable growth and jobs creation Environment and climate change Migration Crisis response Security Peacebuilding

9 Changes in the Development Aid Market New Project Delivery Methods Sustainability as a business model New financing instruments and management modes Growth of local/regional companies Increased International Competition

10 Impact on European Consulting Engineering market Shortening delivery periods/single provider Strong pressure on price Need to add consulting to engineering More selective with markets Integrate sustainability in business lines

11 In EU External Aid: more use of blending and delegated mangement Private Sector

12 Key roles of Consulting Engineers in project development Project Indentification Capacity Building and knowledge transfer Project Implementation Support / Project Management Project Preparation With a multi-sector approach, local knowledge & bringing innovation

13 Impact of Independent Consulting Engineering Services in Project Development Increase project quality Reduce project development costs Reduce project preparation time Mitigate project risks Guarantee impartiality Integrate technology in the early stages

14 Key messages of development consulting engineers to EFIs Advise on appropriate project delivery methods Promote open, fair and transparent procurement Spread best practice and International standards in projects Secure funding for project development (identification)

15 Priorities of the EEA Committee for Blending: improving transparency, efficiency and effectiveness EIB/EBRD/bilateral financing institutions and development agencies: involvement of consulting engineers in the project identification phase European External Investment Plan and private investment in infrastructure DB/DBO/PPP methods in PRAG Knowledge platform on European bilateral and development agencies procurement procedures, industry experiences and data Post 2020 EU Financial Framework and Instruments IFIs: European industry concerns conveyed through FIDIC

16 For any issues related to the EEA Committee please contact your Member Association Representative or the Committee Chair Ines Ferguson Chair of EFCA European External Aid Committee