TERMS OF REFERENCE (February 2012)

• To monitor developments in the European institutions involved in external aid, including the European Investment Bank (EIB), the Council of Europe Development Bank (CEB) and the European Bank for Reconstruction and Development (EBRD) and others from Member States managing European external aid.
• To develop proposals for the European institutions to improve the conditions of professional engagement
• To develop proposals for increasing the effectiveness of European external aid and multilateral funding
• To participate in the dialogue of FIDIC with International Financing Institutions (IFIs) and to give input to FIDIC on developments in these institutions from the European engineering consultancy perspective

SCOPE OF WORK (2010-2011)

• PRAG (Practical Guide to contract procedures for EC external actions)
  The planned review of PRAG 2008 is delayed (possibly until June 2011) due to the postponement of the revision of the Financial Regulation and Implementing Rules. The European Commission presented its proposal on 26 May 2010. The co-decision procedure for the adoption of the regulation will take approximately one year.
  Meanwhile AIDCO (European Aid Cooperation Office) invited EFCA to provide the industry’s suggestions for further improvements and feedback on any irregularities in the field.
• Continuous dialogue on quality aid projects between the industry and all EC DGs that are involved in EU external aid
  The Committee is elaborating proposals to strengthen the ‘management of aid for results’ through workable selection, award and financial management procedures (e.g. VAT, replacement of experts, conflict of interest and the return to the restriction of competition to 3 firms in AIDCO multiple framework contracts).
• EU funded infrastructure projects in Africa
  EFCA and EIC Cooperation in the technical dialogue with AIDCO (e.g. ‘standard terms of reference for road programme/project formulation – feasibility and design studies’ and ‘standard terms of reference for road project supervision’).
• EC development policies
  The Committee will draft a number of position papers reflecting the consulting engineers’ views on the topics that have a direct impact on the way they deliver services. The selected topics are: Division of Labour and Delegated Management, Use of Country Systems and Budget Support, and Technical Cooperation Reform for Capacity Development.

a) ‘Complementarity and division of labour’ between donors, and in particular ‘delegated cooperation’. This means that the European Commission authorises a national development agency to manage a project/programme on its behalf and to function as a fund managing donor (e.g. launching call for tenders/proposals and concluding contracts with third parties). EFCA concerns relate to negative impacts on transparency (accessibility of procurement notices of projects) and fair competition: information about proposed projects and calls for proposals are published by the fund managing donor and the fund managing donor can use its own rules and procedures for implementing the project / programme or EC rules.
EFCA will set out the industry’s concerns about ‘delegated cooperation’ to the EC.

b) Use of Country Systems / Budget Support could also result in a considerable loss of transparency, efficiency and fairness in the procurement of services.
The Committee will an overall assessment of the industry’s experiences and results of budget support and use of country systems, in particular the ensuing loss of transparency and efficiency in the procurement of services.

c) Technical Cooperation (TC) Reform for Capacity Development could entail conflicts of interest for consulting engineers, as well as risks of mismanagement of the TC by beneficiary countries that are not sufficiently prepared).

• EFCA BOOKLET: Introduction for engineering consultancies on tendering for EU development assistance (25 euro for non-member firms)
  The booklet explains the way the European Aid Cooperation Office is working and what consultants should bear in mind when considering tendering. It is an essential promotion tool to the firms.

Chair's Report (2011)