2.2.8 Delegated Cooperation and Transfer agreements
Delegated cooperation, a widely used mechanism, refers to the implementation of projects and the management of funds by one public sector organisation on behalf of another. It is also a possibility toe to conclude agreements between several partners (e.g. through multi-partner contribution agreements). Delegated cooperation can effectively be one of the elements of a larger European package of support to achieve a joint result, for example when combined with budget support, a blended investment modality or in the form of a multi- development partner action that combines the funds of several European development partners in jointly co-financed or parallel financed programmes.
Transfer agreements: The possibility for the Commission to be the fund-managing development partner under Delegated Cooperation is provided for in the Financial Regulations. Any action implemented by the Commission on this basis will always be co-financed by other development partners. The co-financing development partner may be an EU Member State (or its entity operating at national, federal or regional level). The financed activities must fit the Commission’s programme priorities, as defined in the strategies and programming documents adopted. DG INTPA has developed an assessment tool for the identification and formulation phases.
→ For more information see INTPA Companion Section 5 on Management modes, delegated cooperation, cooperation with partners and partner organisations.
Budgetary Guarantees (EFSD+)137
In addition to the blending operations described above, the EFSD+ supports budgetary guarantees used to mitigate investment risk and attract private investment to activities that would not take place otherwise. The EFSD+ guarantee can be used to leverage financing from the private sector, as the guarantee acts to reduce the cost of risk for private investment through its ability to absorb potential losses incurred by financiers and investors.
137 INTPA Companion, Chapter 5A, link: https://webgate.ec.europa.eu/fpfis/wikis/pages/viewpage.action?pageId=1460077384