EU Delegation Provides Clarification on Management of Procurement Processes for Earthquake Reconstruction Funds

The EU Delegation in Tirana has clarified a number of points regarding EU funds for earthquake reconstruction and how the funds will be managed.

In answer to questions posed by Exit, the Delegation stated that “funds recently provided by the EU for school rehabilitation and reconstruction will be managed by the UNDP.”

Exit asked how the EU will ensure transparency standards will be adhered to in terms of the management of the funds. They stated that the applicable transparency and management standards are the ones agreed in the Financial and Administrative Framework Agreement between the United Nations and the European Commission and are included in the contract itself.

“The EU works with UNDP and other organisations who passed a stringent assessment including their management, procurement and visibility procedures,” they said in their statement to Exit.

In terms of individual pledges from the EU Member States, the Delegation stated that each State is responsible for managing its own pledge, according to the specific nature, focus and implementation modality of their support. In addition to this, the EU Delegation and the Member States regularly share information on the support provided to post-earthquake recovery efforts.

The procurement processes that will be used to manage EU reconstruction aid are the ones of UNDP which were previously assessed by the EC in the context of the negotiation of the Framework Agreement. It was decided that they offer an equivalent level of assurance to EU procurement processes.

The rules and processes of the entrusted entity, UNDP, ensure “fair and equal treatment of potential bidders”. The Delegation said it will ensure regular monitoring of the progress of implementation of this support by the UNDP.

The Delegation clarified that the two tenders recently cancelled by the Albanian government relating to the construction of some 3000 homes, does not concern EU support for post-earthquake recovery.

Exit has previously raised concerns that EU Member State companies are effectively excluded from participating in tenders for reconstruction projects. This is due to the fact that the deadline for applications set by the government in some cases, was just nine out of the 20 days the law provides for. It is now clear that the procurement processes are managed by UNDP, not the EU Delegation.