Brussels,
22 January 2003.
Dear Counsellor,
We have learnt that representatives of the Council of the EU are presently
studying the European Commission proposal for a Council Regulation on the
Financial Regulation applicable to the 9th European Development Fund (EDF),
with a view to adopting it by the end of this month.
As a European Development NGO network, with partners in ACP countries, we
are conscious of the fact that the way the EDF Regulation is defined will
have a significant impact on the success of the translation of the provisions
on civil society and other non-state actors engagement in the Cotonou Agreement
into action. We are therefore writing this letter in order to put forward
suggestions, which we believe are critical to the effective implementation
of the EDF regulation and participation of non-state actors in ACP-EU cooperation.
ACP and EU governments have identified participation of non-state actors
in ACP-EU co-operation as a fundamental principle of the Cotonou Agreement.
This follows the widely recognised view that poverty eradication, the overall
goal of the ACP-EU partnership, is unachievable without effective participation
of all stakeholders of this process. To this end, the Cotonou Agreement states
that non-state actors, including civil society representatives, are supposed
to be, inter alia, involved in consultation on cooperation policies and strategies,
provided with financial resources, and provided with capacity building support.
Effective participation will only be possible if the EDF Financial Regulation
includes appropriate rules and procedures that allow civil society actors
to efficiently and responsibly access the EDF. These rules should take account
of the specific nature of civil society organisations and the context in
which they operate in ACP countries e.g. in rural and remote parts of under
developed countries. It should be recognised that this is a completely different
environment from which other actors have accessed the EDF to date.
We therefore strongly recommend that a careful analysis is made of the rules
of Title VI of the EDF regulation applicable to grants and that a certain
degree of flexibility is preserved in terms of:
- Bank guarantees The
indiscriminate request for bank guarantees could significantly limit civil
society access to funds and would de facto introduce eligibility criteria
based more on the financial capacities of organisations and their access
to a proper banking system than on the quality of their work. If guarantees
are to be requested, we believe that this should be done only for significantly
substantial amounts. In this respect a minimum figure should be set, below
which guarantees cannot be requested.
- Timing and frequency
of payments: The manner in which payments are made should take account of
the fact that many ACP projects are seasonal, e.g. agriculture projects,
or are subject to rapidly changing situations, e.g. rehabilitation projects.
Provision therefore should be made for retroactive payments, which are otherwise
accepted by the Cotonou agreement (Article 19 of Annex 4) for activities
linked to start-up of programmes and preliminary and seasonal work. Furthermore,
payments should be made in a timely manner as very few ACP organisations
have the capacity to pre-finance actions with their own funds and then wait
several months for the final payment (after the final report has been accepted
by the EC Delegation).
- Co-financing: It may
be difficult for small ACP organizations to co-finance projects with private
funds. Therefore co-financing should not be compulsory and the definition
of co-financing should be flexible enough to accommodate ‘in-kind’ inputs
and financial support from other public or private organisations.
Apart from taking the abovementioned
suggestions into consideration, it is essential that the EDF regulation adopted,
is in line with the process agreed by ACP and EU governments to adopt a common
paper on Eligibility Criteria for Non-State Actors Access to Funding under
the EDF. The ACP Council of Ministers has thus far adopted this paper.
It is supposed to form the basis for future discussion and refinement, with
a view to each ACP country, adapting them to their specific and unique circumstances.
The EDF regulation should not limit the scope of that discussion, beyond
the parameters that are set in joint paper on eligibility criteria.
In conclusion we also strongly recommend that the regulation foresees the
establishment of a mechanism for continuous dialogue between the EC Delegation’s
staff administering the funds and the beneficiaries of grants, as proposed
in the establishment of national steering committees in the abovementioned
paper on eligibility criteria.
We would very much welcome any suggestions for further elaboration of all
the points mentioned above, in view of our objective of ensuring that non-state
actors effectively engage in the fight against poverty.
Yours sincerely,
Simon Stocker
Director
© Eurostep.
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