European Union –Framework Partnership Agreement

for External Actions (EC-FPA)

Asif Shahab- EC-FPA Project Manager (Watchdog)

 European Union –for External Actions (EC-FPA)

About EU as a donor:

The European Union (EU) is the largest donor globally, with net (ODA)
at US$16.4 billion in 2017.

The EU provides funding:

Regional & urban development, Employment & social inclusion,

Agriculture & rural development, Maritime & fisheries policies,
Research & innovation, Humanitarian aid.

EU Fund Management

EU funding is managed according to strict rules to ensure:

There is tight control over how funds are used
The money is spent in a transparent, accountable manner.
EU PROJECTS - BASIC VOCABULARY:
/ outputs / outcomes / expected results / impact
Sustainability: financial, political, institutional
Dissemination, sustainability
Budget: person months, per diems, mobilities, eligible costs, ineligible
costs, audit costs, overheads, subcontracting
Target groups (direct / indirect), final beneficiaries
Consortium: coordinator, grant holder, beneficiary, co-beneficiaries,
subcontractors, external experts

Risks, assumptions, contingency plan/measures,

Capacity building, training for trainers, multiplier effects, …
…........
EU-Framework Partnership Agreement
Project titled
“Unlocking the Power of Producers and Workers to Drive
Inclusive Trade and Development through Fairtrade”
(Jan2019- April,2023)

EC Funding Programme - Purpose:

Strengthening Regional, European and Global

CSO Umbrella Organisations
 EC-FPA Project Objective

• O1 – Small producers and workers enjoy secure and

sustainable livelihoods, fulfil their potential and
decide on their future
• O2 – Advancement towards SDG targets in particular
2 and 8 (among others)”.

Goal 2 “End hunger, achieve food security and improved

nutrition and promote sustainable agriculture”
Goal 8 “Promote inclusive and sustainable economic growth,
employment and decent work for all”
 Some key highlights of EC-FPA
• It is all about meeting contractual obligation and respecting
tight deadlines.
• Organization’s prestige is at stake in EC project.
• 2025 Strategy would be co-created, New constitution.
• Revision of compliance mechanism
• Basic idea is to streamline the processes- Hiring external
consultant for SWS, ICT, Team Building, PMS, Governance,
Weaker SPOs (NAPP should not serve as Post Office)
• Focus is deepening the impact, rather than a large expansion
of producer numbers.
• Lead to Organizational Development.
• Successful completion of EC-FPA Project would lead to attract
several donor agencies in future.
 Some key highlights of EC-FPA
• 20 influential events (EU, global, regional, country
level)
• Global satisfaction survey ( Year 1 & Year 3)
• Annual impact learning event ( Year 1 & Year 3)
• Progress on deliverables will also be assessed as part
of both FI and PN Boards’ annual agendas.
• Advocacy Strategy (Global, Regional, National level)
• IT Strategy, 3 Meta Research Studies, CODImpact.
 Some key highlights of EC-FPA
• During the first half of year one a FI external consultant will be
recruited to conduct a baseline study

• A light-touch mid-term evaluation will be conducted,

assessing progress against the project's objectives and results

• An external final evaluation will be conducted at the final

year to assess achievements against target indicators and the
overall objective of the project.

• Document good practices of inclusion and participation via

case-studies, video and other media outputs for wider
replication and lesson learning.
 EC-FPA
• Funding: EUR 7,000,000 plus FI match 20%
(EUR 1,756,313 )
• Duration: 2019-2023 (4.5 yrs)
PNs = circa EUR 4.5million
FI = circa EUR 3.3million
FTAO = EUR 200K
 EC-FPA Staffing
Fairtrade International NAPP

Project Manager (100%), Project Manager- NAPP

Head of Planning (15%), (100%)
Head of Finance (15%), COO(25%)
Grant Accountant (35%), Advocacy Partnership
MEL Manager (60%) Manager - (30%)
Senior Manager Advocacy MEL Manager - (30%)
(100%) ICT Officer- 30%)
Compliance Officer (100%) Compliance Officer (30%)
ICT Manager (15%) Finance officer- (70%)
Project Admin Officer -
FATO (25%)
Executive Director (20%) Program Officers (40%)
Project Coordinator (40%)
 Budget Allocation: PNs
PN 2019 budget Total 4.5 yrs

CLAC
€333,075 €1.5m

FTA
€364,475 €1.5m

NAPP €277,842 €1.5m

 Areas of Work
Output Description Activities

1. Internal Fairtrade member Training of board members

Governance organisations are Development of internal Governance
representative and Mechanisms
accountable development Training of Producer Network
actors, with strong internal Management and Staff
governance, transparency Leadership Training of Product
and accountability Networks
mechanisms Compliance mechanisms roll-out
2025 strategy planning
2. Governance/ Producer/worker Regional meetings for
Representation organisations benefit from consultation/action planning for PN
(workers, improved participation strategies
women, youth) structures, fostering Capacity building of
inclusive decision-making weaker/marginalised producer
at national, regional and organisations
global levels Capacity building and strengthening
for Women and Youth inclusion
 Areas of Work
Output Description Activities
3. Operational The institutional and Development of system-wide
Capacity operational capacity of financial management
(Finance, IT, the Fairtrade network Operational planning
Global is strengthened to System-wide improvements to IT
Planning) meet the priorities of systems
producers and workers
4. Advocacy The Fairtrade network Capacity building on advocacy and
is advocating policy analysis
effectively the priorities Conduct/disseminate research
of producers and studies that inform advocacy work
workers at national, Producer representation in
regional and global external events
levels Strengthening producer voice
through campaigns work
 Areas of Work
Output Description Activities

5. MEL Fairtrade will be a Conduct studies that inform

global knowledge learning on strengthening SPOs
network through which Facilitate Annual Learning
members and affiliates Events
can exchange Develop Producer Network
experience and learning platforms
information as the basis
for coordinated global
action.
EU’s visibility
 Why EU Visibility
• Effective communication concerning the projects helps
raise awareness of the external policies and actions of
the Union in its role as a global player.

• It provides accountability and transparency on the use of

EU funds to taxpayers and citizens of partner countries.

• Ensure that any communication on EU-funded external

actions is consistent with the Union's values.

• Union’s political priorities and with other EU-related

communication activities and events.
 EU Visibility
- Take all necessary steps to publicize the fact that the
European Union has financed or co-financed the
Action
- Mention the grant on all publications
- Display EU flag on all publications
- Mention the grant in all conferences, trainings &
meetings
- Each publication must include that:
“This project has received funding from the European
Union’s The contents of this document are the sole
responsibility of NAPP and can under no circumstances be
regarded as reflecting the position of the European Union.”
 PENALTIES

Breach of contractual
Visibility Art.I.10.9 -10 obligations Art.II.17.2 up to
20% Reduction 10%

Weak
Implementation
Art.10.6 up to 75%

18
 Penalties for weak implementation
(Art. I.10.6)
Reduction of the final grant in the event of weak implementation

When does the performance evaluation take

place?
During the implementation of the project

 At Progress Report stage

 As a result of a Monitoring visit

 After the completion of the project

 At Final Report stage
How will the project performance be assessed ?

• Relevance (max. 30 pts)

• Quality of the project (design and) implementation (max. 30 pts)
• Quality of the project team and cooperation arrangements (max. 20 pts)
• Impact and sustainability (max. 20 pts)

What could be the impact of a weak performance?

25% : performance score between 40 points and below 50 points

35% : performance score between 30 points and below 40 points
55% : performance score between 20 points and below 30 points
75% : performance score below 20 points
 Issues & Challenges

- 100 % compliances to Donors requirements – Strict

compliances (Activities, Procurement, finances, reporting
visibility etc.)

- Timebound Project (Tight deadlines) 70% expenses per

year

- Prevailing orientation in NAPP- Conventional vs

Institutional Donors

- Payment to vendors vs. reimbursement/claims to POs

accounting practice in NAPP
 Meeting strict contractual
Compliances
- Ensure the accuracy of any information provided in the EC-FPA
Project.

- Providing progress and financial reports every three months

to ensure more effective project management.

- EU is entitled to withhold any payments or to claim a

contractual penalty in the amount of 10% of the total eligible
costs of the in case of breach.
 Meeting strict contractual
Compliances
- Ensure accurate invoices, receipts, tickets, including
boarding passes, and necessary documentation to
support all expenditure including human resources.

- Records must be kept for 7 years after the balance is paid

from the EC at the Project end.

- If a spot inspection is conducted by the EC, NAPP may

need to provide, copies of documents including certified
documents

- Worst case scenario- Refund in case if external audit

report reflects irregularities
Thank you for your attention

24