Meeting of the European External Aid Committee

Meeting of the European External Aid Committee
14 October 2014
EFCA Secretariat, Brussels
1. Approval of the agenda and apologies for absence
The Chair welcomed all participants.
Apologies for absence were noted.
 The secretariat will contact the Danish Committee representative prior to next
meeting.
The Chair welcomed the announcement that ACEI (Ireland) would nominate a
representative shortly.
The proposed agenda, including under item 6 a briefing on the 3 October 2014 ‘Policy
Forum on Development - Workshop with Private Sector1’ was approved.
2. Approval of the minutes of the meeting held on 24 June 2014 in Brussels
The minutes of the 24 June 2014 meeting were approved.
3. Reports
v 24 June 2014 EFCA/FEACO meeting with Representatives of the Permanent
Representations
The agenda focussed on three topics: the position paper on the use of country systems
and on blending, and the SAFEGE study on the application of design, build and
operate methods to EC financed infrastructure projects in developing countries:
- the position paper on blending proved well-timed. It is important to get the
industry’s messages across and to motivate the Permanent Representation into
reflecting on the topic. The position paper serves as a reference document for all
member associations.
 The EFCA message on blending is to be conveyed to the World Bank.
 The position paper will be circulated again with the minutes to the Committee
members in order to continue the discussion at the national level.
- the Chair reported on the valuable remarks and suggestions that the Permanent
Representations submitted on the draft position paper on the use of country systems.
The discussion on the revised paper is noted under item 4.
EC Communication ‘A stronger role of the private sector in achieving inclusive and sustainable
growth
in
developing
countries’
http://ec.europa.eu/europeaid/european-commissioncommunication-com2014263-stronger-role-private-sector-achieving-inclusive-and_en
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v ‘The Application of Design, Build and Operate Methods to EC financed Infrastructure
Projects in Developing Countries’: Final Phase 2 Report
This study, commissioned to SAFEGE, is examining required legal changes (Financial
Regulation) for the introduction of PPPs in EC grant-funded infrastructure projects in
developing countries.
The report describes in detail the FIDIC contracts.
It states that “DEVCO has the choice either to decide to use an existing set of contract
conditions for DB/DBO contracts, such as those provided by FIDIC, in which case a
prior authorization will be required for each project, or to adapt its own contract
conditions which would, as a result, no longer qualify as an exception and would no
longer need prior authorization. DEVCO stated its preference for the latter, and ….”.
The report explains the procedures that are permitted under the PRAG guidelines (i.e.
the restricted procedure and the competitive dialogue procedure).
SAFEGE proposes the two-stage procedure: tenderers submit a technical design on
partially developed specifications which is individually discussed and clarified; in a
second stage the responsive bidders submit technical and financial proposals that are
based on the amended technical specifications.
SAFEGE also proposes that the Contracting Authority engages a team of Advisers for
the DB/DBO project preparation and implementation that should be kept the same. In
the Chair’s view, such advisory team would comprise mostly legal and procurement
experts, and only limited technical expertise. The report also states that ‘For the
construction phase, the Contracting Authority should hire a Supervision Consultant
(possibly a local company) who will be responsible for the day-to-day quality of the
construction…’.
In summary, the report suggests three possible roles for engineering consultants:
assist/advise the contracting authority in the preparation and implementation of
DB/DBO projects, supervise the construction and act as the designer on account of the
contractor. EFCA should react and submit the industry’s views to the EC.
The report is used as a reference document for the European Commission.
 The report and the Chair’s observations are attached to the minutes.
 EFCA and FEACO will jointly invite Roberto Ridolfi (DG DEVCO/C, Director) to
discuss the report (and new DG DEVCO initiatives).
v National meetings/lobby initiatives related to external aid/development assistance (if
any)
It was noted that although becoming more active, the Spanish Development Agency is
not a strong institution. Funds are increasingly channeled through investment facilities
and blending. Local contracting authorities are in charge of the procurement, and firms
are in a vulnerable situation.
GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) is being reorganised.
In the firms’ experiences, taxes are becoming increasingly unclear and difficult.
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A new public French Agency will be created as from 1 January 2015 by gathering six
specialized ones; a specific link will be developed with AFD (Agence Française de
Développement). Syntec-Ingénierie is establishing the dialogue with a recently
appointed new high ranking official.
Daniel Gras expressed interest in learning about recent developments in the national
agencies’ role in the implementation of aid projects and the competition with private
engineering consultancies.
 The Chair concluded that the Committee should consider developing the industry’s
position in the private sector’s involvement in development cooperation in 2015.
4. EU external aid
v 18 March 2014 letter to the Practitioners Network on new financing instruments such
as blending: response
The organisation, of which the address changed twice recently, would respond shortly.
v PRAG 2014: EFCA/FEACO feedback to DG DEVCO
The Chair invited comments on the draft letter.
-
Excessive financial reference criteria (to include the reference to the relevant
PRAG provision)
The meeting exchanged views on the general recommendation to remove financial
criteria (they are not well interpreted and applied appropriately) versus the need for
mixed criteria that demonstrate the firm’s financial stability (it is in the interest of
our industry to have reliable partners).
The letter would call for a clarification of the situation, point out our industry’s
interests, and express interest in a discussion together with financial experts.
-
Change of the ‘per diem’ system which creates an administrative burden
The item is deleted.
-
Criteria applied to experts: all main plus sub criteria
DG DEVCO recently introduced positive changes (including clarification) to the
weighting of CVs and methodology in the evaluation. The item is deleted from the
letter. However, in the future, EFCA will share with DG DEVCO the industry’s
experience with the evaluation grid.
-
Documentary proof for the selection criteria
The meeting commented the inconsistency between the PRAG and the annexes,
and the required submission of supporting documents to avoid that candidates are
invited which prove unable to submit the supporting documents at the award stage.
It was concluded that the current practice is reasonable. The item is deleted.
-
Disproportionate and excessive liability (and insurance) requirements: €1 million
for 10 years duration (to include the reference to the relevant PRAG provision)
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The meeting emphasised that the limitation of the candidate’s references to the last
three years is very short for consulting engineering services and should be extended to
at least five years. In this context, Jan Van der Putten sent Laurent Sarazin copy of
annex XII of the 2014 public procurement Directive - Part II: Technical Ability,
which reads under a (ii): ‘Where necessary in order to ensure an adequate level of
competition, contracting authorities may indicate that evidence of relevant supplies or
services delivered or performed more than three years before will be taken into
account’.
 The topic ‘limitation of candidate’s references to the last three years’ will be
incorporated in the letter.
 As regards the complex matter of taxes, the meeting agreed not to raise it in the
letter.
 The revised letter will be circulated for a 10-days consultation round with the
Committee.
v EFCA position paper on the use of country systems
The revised paper, which is still general and carrying clear messages, incorporates the
Perm Reps’ suggestions.
The following remarks were noted:
- the views of the World Bank on the use of country systems is impacting on
procedures of other IFIs. The World Bank differentiates between countries, and is
focusing on the capacity of the local industry (cf. ‘local preference’) and skills of
the local awarding agencies. The Chair reacted that the industry is advocating
international competitive bidding with international standards. Engineering
consultancy services are knowledge-based services. It will be explained that these
services are high-risk and high-value and thus eligible for international competitive
bidding (ICB). Also, it is important to encourage raising local procurement
standards to international ones;
- the phrase ‘In many developing and middle-income countries, these procurement
conditions are far from being met’, needs positive rephrasing (e.g.: ‘evolve to meet
these procurement conditions’);
- the statement on the industry’s experience on the use of inappropriate country
systems is general, vague and debatable. It was reacted that in practice, many
indirect barriers exist for international firms, which make it impossible to operate
in the market. The industry’s message on ICB as well as the decrease of quality
due to the lack of international standards will be included;
- the title will carry the message that the European consultancy industry is in favour
of using international procurement standards;
- the paper will not include a reference to other procurement procedures.
 The revised position paper will be circulated for a 10-days consultation round with
the Committee.
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v Feedback on EIB, EBRD, CEB and other European Public Financing Institutions’
procurement (if any)
The programme of the EBRD-EFCA one-day hands-on seminar (Brussels, 13
November 2014) was presented.
Vice-Chair Martin Güldner invites feedback on working with EBRD from all
Committee members.
A joint FIDIC-EFCA visit to the EBRD offices in London is planned on 17 November
2014.
5. FIDIC dialogue with IFIs
v World Bank Procurement Policy and Procedures Review: status report on second stage
(articulation of policy and implementation strategy)
Enrico Vink reported on the schedule of the next consultation round, and the
preparation of the FIDIC submission. FIDIC will consult with EFCA and EIC before
the end of 2014.
The Chair outlined the main themes: modernisation to adapt to future type of
operations; competitive dialogue, private investment and PPPs; selection of best
suppliers (cf. past performance and debarment); extended use of national competitive
bidding processes (local SMEs) and domestic preference criteria; WB intervention in
hands-on complaints procedure; prior review only of tenders of high risk and high
value; ICB to remain preferred system and NCB to guarantee certain aspects; strategic
sector-wise decision of national governments on the threshold ICB or NCB; and push
for electronic tendering.
Enrico Vink underlined the early involvement of engineering consultants in project
programmes, education of best practice, development effectiveness (value and quality)
and capacity building. He concluded that FIDIC is offering toolboxes (integrity
management and sustainability) and generic training.
6. Date of the next meeting
The next meeting will be held in Brussels on Tuesday, 17 March 2015 (11:30-15:30).
___
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Participants
Ines Ferguson, Chair (TECNIBERIA)
Martin Güldner, Vice – Chair (VBI)
Walter Painsi (ACA – FTBI)
Rasit Ünüvar (ATCEA)
Daniel Gras (CINOV – SYNTEC)
Hero Heering (NLingenieurs)
Gianluca Vedova (OICE)
Jürgen Wummel (VBI)
Enrico Vink, FIDIC Managing Director
Raphael Zayat (FEACO)
Jan Van der Putten (EFCA)
Anne Croisiau (EFCA)
Apologies:
Jorge Nandin de Carvalho (APPC)
Patrick-Yann Dartout (CINOV – SYNTEC)
Claus Jorgensen (FRI)
Ian Reeckmann (FRI)
Ryszard Neugebauer (SIDIR)
Matti Manonen (SKOL)
Anders Olin (STD-Företagen)
Uwe Moshage (VBI)
Etienne Matton (FEACO)
Didier Wynrocx (FEACO)
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