Funding strategy
Financing
Funds allocated to the EC external assistance come from two main sources: the EU general budget and the European Development Fund (EDF). Different administrative rules and decision-making structures apply to these two funding channels. EDF is delivered through national and regional indicative programmes (CSPs) and intra-ACP funding (facilities and programmes). It is funded by the Member States, is subject to its own financial rules and is managed by a specific committee.
Financial commitments for external assistance made from the general budget of the European Union follows a different procedure. Generally speaking, the EU's financial perspective defines the framework for the Union's budget priorities over a period of seven years. It describes over different budget headings the maximum amounts (ceilings) of commitment appropriations (financial commitments) for each year. Annual EU budgets are based on the multiannual financial framework agreed between the European Parliament, Council and Commission in an interinstitutional agreement. The financial framework sets the maximum amount of commitment appropriations in the EU budget each year for broad policy areas (“headings”) and fixes an overall annual ceiling on payment and commitment appropriations. The annual budget procedure determines the actual level of expenditure and the breakdown between the various budget headings.
Annex IV of the Cotonou Agreement was amended with the start of the 10th EDF to apply full alignment of the latter's rules and procedures on procurement to those of the EC General Budget, save few exceptions (eligibility, preference). This means that the same rules and templates will be applicable to these two sources of financing. These rules and procedures are summarised in the latest version of the Practical Guide (PRAG 2010).
Grants
EuropeAid finances external actions to beneficiary countries through financing agreements and by calls for proposals or calls for tenders. EC grants are awarded following an application procedure in order to implement projects or activities in relation to European Union policies. Grant beneficiaries are mainly private or public organisations, and exceptionally individuals, chosen by the European Commission for their capacity to implement the projects concerned.
Subsequently, EuropeAid publishes calls for proposals on its Internet site; the calls for proposals invite candidates to present, within a given deadline, a proposal for action that corresponds to the objectives pursued and fulfils the required conditions. These calls for proposals can also be published in the Official Journal of the European Union. All applications are examined and evaluated on the basis of criteria that have clearly been announced in the calls for proposals, while ensuring equal treatment; candidates are individually informed of the final decision concerning their proposal. Only exceptionally are grants awarded directly to certain beneficiaries without a call for proposals.
Sources and useful links: