TWINNING PROJECT FICHE · 2015. 12. 10. · TWINNING PROJECT FICHE: Building the Capacity of the...

TWINNING PROJECT FICHE

Building the Capacity

of

the Egyptian Competition Authority

Under the

Support to the Implementation of the Action Plan and

Association Agreement Programme (SAAP IV)

This project is funded by

The European Union

TWINNING PROJECT FICHE: Building the Capacity of the Egyptian Competition Authority

- 2 -

TABLE OF CONTENTS

LIST OF ABBREVIATIONS ......................................................................... - 3 -

1. BASIC INFORMATION .................................................................................. - 4 -

2. OBJECTIVES ................................................................................................... - 4 -

2.1. Overall Objective ....................................................................................... - 4 -

2.2. Project Purpose ........................................................................................... - 4 -

2.3. Contribution to the Association Agreement and the EU-Egypt Action Plan - 4

-

3. DESCRIPTION ................................................................................................. - 6 -

3.1. Background and Justification ..................................................................... - 6 -

3.2. Linked Activities ...................................................................................... - 15 -

3.3. Results ...................................................................................................... - 17 -

3.4. Activities .................................................................................................. - 17 -

3.4.1. Component I: Legal Framework for Competition and Relations with

other Regulatory Bodies ................................................................................. - 17 -

3.4.2. Component II: Institutional Framework and Capacity Building .. - 18 -

3.4.3 Component III: Advocacy and Awareness Raising ............................... - 20 -

3.5. Means/ Input from the MS Partner Administration ................................. - 20 -

3.5.1 Profile and tasks of the Project Leader .................................................. - 20 -

3.5.2 Profile and tasks of the Resident Twinning Advisor (RTA) and RTA

Assistant .......................................................................................................... - 21 -

Tasks of STE experts ...................................................................................... - 23 -

4. INSTITUTIONAL FRAMEWORK ................................................................... - 24 -

5. BUDGET ............................................................................................................ - 24 -

6. IMPLEMENTATION ARRANGEMENTS ....................................................... - 24 -

6.1. Implementing Agency responsible for tendering, contracting and accounting ... -

24 -

6.2. Main Counterpart in the Beneficiary Country ............................................. - 25 -

6.3. Contracts ...................................................................................................... - 26 -

7. INDICATIVE IMPLEMENTATION SCHEDULE ........................................... - 26 -

8. SUSTAINABILITY ............................................................................................ - 26 -

9. CROSSCUTTING ISSUES ................................................................................ - 27 -

10. CONDITIONALITY AND SEQUENCING .................................................... - 27 -

11. ANNEXES ................................................................................................... - 28 -

ANNEX I: Logical Framework Matrix .................................. 29


- 3 -

LIST OF ABBREVIATIONS

AA EU-Egyptian Association Agreement

AP Action Plan

BC Beneficiary Country

CAPMAS Central Agency for Public Mobilisation and Statistics

ECA Egyptian Competition Authority, (Authority for the Protection of

Competition and the Prohibition of Monopolistic Practices)

EUD Delegation of the European Union in Egypt

EGP Egyptian pounds

ENP European Neighbourhood Policy

ENPI European Neighbourhood Policy Instrument

EU European Union

ENPI- CBC Neighbourhood Cross-border Cooperation Programme in the

Mediterranean SeaBasin

EUR Euro (Currency)

EUROPEAID European Union Directorate-General for Development and

Cooperation

GATT General Agreement on Tariffs and Trade

GDP Gross Domestic Product

HR Human Resources

ICN The International Competition Network

IMF International Monetary Fund

MoU Memorandum of Understanding

MS MemberState of the European Union

KEY

EXPERTS

Medium-Term Expert

NGO Non-Governmental Organisation

NTRA National Telecom Regulatory Authority

OECD Organisation for Economic Co-operation and Development

PAO Programme Administration Office in Egypt

PL Project Leader

PSC Project Steering Committee

RTA Resident Twinning Adviser

SAAP Support for the implementation of the Action Plan Programme and

the Association Agreements

SIGMA Support for Improvement in Governance and Management (managed

by the OECD and on behalf of the EU)

SME Small and Medium Sized Enterprises

STEs Short Term Experts

TA Technical Assistance

TAIEX Technical Assistance and Information Exchange Instrument

ToR Terms of Reference

UNCTAD United Nations Conference on Trade and Development

USAID United States Agency for International Development

WEKO Swiss competition commission

WTO World Trade Organisation


- 4 -

S T A N D A R D T W I N N I N G P R O J E C T F I C H E

1. BASIC INFORMATION

1.1 Programme: Support to the Implementation of the Action Plan and Association

Agreement (SAAP IV)

1.2 Twinning Number: EG/14/ENP/F1/24

1.3 Title: Building the Capacity of the Egyptian Competition Authority

(ECA)

1.4 Sector: Finance

1.5 Beneficiary Country: ArabRepublic of Egypt

2. OBJECTIVES

2.1. Overall Objective

To Contribute to ECA efforts in stimulating effective competition and the transition

towards a well functioningmarket economy in compliance with Egypt's international

commitments and its National Strategic Plan.

2.2. Project Purpose

The purpose of this project is to enhance ECA capacity to foster an effective and non-

discriminatory competition system in Egypt within the framework of a free-market

economy, in line with EU and international best practices.

2.3. Contribution to the Association Agreement and the EU-Egypt Action

Plan

2.3.1. Legal Basis: AA, ENP and AP

The legal basis of relations between the European Union and the Arab Republic of

Egypt is the Association Agreement (AA), which entered into force in 2004, with the

aim of intensifying cooperation on the economic, political and socio-cultural level.

With a view to defining specific mechanisms to implement the objectives of the

Association Agreement, the third EU-Egypt Association Council in 2007 adopted the

EU-Egypt Action Plan (AP) under the European Neighbourhood Policy (ENP). The

European Neighbourhood Policy Action Plan sets out the priorities for co-operation

in a wide range of sectors jointly agreed between the EU and Egypt. These are based

on Egypt‟s own reform schedule in the economic, social and political areas. The

Action Plan has been envisaged as a comprehensive policy framework based on an

agenda of mutual commitments and shared values. The AP introduces specific and

detailed mechanisms to support economic, political, and social development in the

Arab Republic of Egypt.


- 5 -

As a basic principle, EU assistance under the European Neighbourhood and

Partnership Instrument promotes enhanced cooperation and progressive economic

integration between the European Union and the partner countries and, in particular,

the implementation of partnership and cooperation agreements, association

agreements or other existing and future agreements. It also encourages partner

countries‟ efforts aimed at promoting good governance and equitable social and

economic development.

In support of the Association Agreement and the Action Plan, the EU has already

allocated €72 million with the aim of contributing to Egypt's efforts for reforming the

regulatory and operational framework of its public administration.1 This constitutes

only a part of the total support implementation of the AP as pledged by the European

Commission, which is accompanied by a substantial €558 million assistance package.

Reforms are being pursued through Institutional Twinning and Technical Assistance

projects being implemented in key selected areas. In particular, the AP refers to

"Institutional Twinning" as a viable EU instrument to align to the EU standards and

best practices, contributing to further integration into the European Union's economic,

social and technological structures, and accordingly enhancing prospects for trade,

investment and growth.

2.3.2. Sectoral Focus

Article 34 of the Association Agreement stipulates “The following are incompatible

with the proper functioning of the Agreement, in so far as they may affect trade

between the Community and Egypt:

(i) all agreements between undertakings, decisions by associations of undertakings

and concerted practices between undertakings which have as their object or effect the

prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the territories of the

Community or Egypt as a whole or in a substantial part thereof;

(iii) any public aid which distorts, or threatens to distort, competition by favouring

certain undertakings or the production of certain goods.”

Article 2.2.4 (b) of the EU-Egypt Action Plan underlines the requirement to “Enforce

the competition law in line with that of the EU and establish an independent and

adequately-resourced competition authority”.

Therefore, joint cooperation in the area of competition law is a priority for both the

Egyptian and European Union partners with the purpose of ensuring that a

competitive economic environment in Egypt can develop, which will accrue benefits

to the economy, consumers and society at large.

2.3.3. Contribution to the implementation of the EU-Egypt Action Plan

A Twinning Project in the area of Competition would contribute to the

implementation of the Action Plan through the development of an enabling

environment to promote free competition and the transition towards a free market

1Cf.Project document. LOT 10: Trade, Standards and Private Sector. Framework Contract

Beneficiaries 2009.Request 2011/278647.


- 6 -

economy focusing on certain legal and institutional reforms needed for the Egyptian

competition system in compliance with the country‟s international commitments,

pursuant to Art. 34 of the AA and Article 2.2.4 (b) EU-Egypt Action Plan.

3. DESCRIPTION

3.1. Background and Justification

3.1.1. General Economic Background

It has been observed that competition distortions have been more the norm than the

exception in Egypt and the presence of high market concentrations and monopolies

has been a persistent feature of the Egyptian economy.2 However, after two decades

of socialist economy Egypt has been striving for a free market economy since the

mid-1970s.

During the Open Door Policy that extended until 1991, several initiatives were

employed to liberalise the economy and to support industrialisation. In order to apply

that policy, the Egyptian Government enacted a bundle of new laws that granted more

managerial freedom to individual public undertakings.Moreover, many of the prices

were liberalised and subsidies were cut.3 However, competition policy remained

marginalised. Despite a growing private sector and foreign direct investment,

government ownership of business and industries remained dominant, with a public

sector constituting over 70% of GDP in 2002.

In the first decade of the 21st century, the macro-economic situation deteriorated, with

Egypt undergoing a liquidity crisis caused by the loss of hard currency from some of

the hitherto available sources, as well as the global financial downturn. During this

period, reforms were introducedwith the net result of allowing greater incentives to

the private sector in most economic activities.

After the January 2011 revolution, extant political parties have consistently advocated

for a free market. They all assure that the protection of the competitive process is an

essential safeguard to the success of a market economy. This suggests that irrespective

of any upcoming political shifts in Egypt, the support for a functioning competition

system is seen, by most political parties at least, as a reasonably secure policy choice.

By 2013, economic growth remains weak, with a high fiscal deficit and gross public

debt (domestic and external) rising to nearly 100 percent of GDP.

In view of the prevailing situation so far, the introduction of a market model based on

the principles of competition wouldconstitute a new paradigm for Egypt‟s economic

organisation: the country‟s economic structure is characterised by some large

companies, partly private and partly state owned, and a significant number of

medium, small and very small enterprises predominantly in the informal sector, this

latter comprises over four fifth of the companies.4 Most sectors of the Egyptian

economy are highly concentrated, dominated by a small number of firms and remain

sheltered by protectionist measures that limit entry. Moreover, an inefficient

distribution sector which concentrates power in a few large retailers, with most of the

2El Far, Assessing the Enforcement of the Egyptian Competition Regime (diss.), London: QMW, 2012

[unpub.]. 3Ibid.

4 Firms are considered informal if they fail to acquire a business license or commercial/industrial

registration or to maintain regular account books.


- 7 -

rest being small and informal. Distribution services also suffer from poor

infrastructure and logistics, lack of access to quality transport, roads, and storage.

Supply chain management remains poor and the existence of a large number of

intermediaries prevents distributors from reaping the benefits of economies of scale.5

The State still retains monopolistic influence in a number of areas (notably utilities,

transport, heavy industry and insurance) and while it may own less of the economy

than during the socialist era, its influence remains considerable. State enterprises now

constitute approximately one-third of the GDP, in particular in relation to „essential‟

and other closely regulated products and sectors, and they continue to benefit from

state subsidies and a system of preferences6 In this fashion, state protectionism and

the reluctance to open up state monopolies curtails genuine entrepreneurship and

competition, and as a result, consumers have been perennially faced with an economic

environment that presents them with limited alternatives.

It should be noted nonetheless, that Egypt has achieved a certain progress in

developing its legal and regulatory framework as regards to competition. Even though

not as rapidly as once envisaged, the last few years have seen certain concrete steps

towards economic reforms. Such framework improvements have been a contributory

mechanism for a number of increases in market efficiency in the country. On the

other hand, the macroeconomic situation in Egypt is less favourable now than it was a

few years ago: fiscal deficit and inflation continue to burden the economy. In the next

few years, providing Egypt‟s population with opportunities and prosperity in the

future will require putting the country on a higher and more sustainable growth path.7

This can be achieved only by resisting pressures against the reform process and

focusing on a competitiveness-enhancing agenda that will raise the economy‟s

productivity levels.

3.1.2. Regulatory and Legislative Framework

The Egyptian legislative framework in the field of competition consists of:

o Law no. 3/2005 on the protection of competition and the prohibition of

monopolistic practices.

o Prime Ministerial Decree no. 1316 of 2005 approving the Executive

Regulations for the Law on the protection of competition and the

prohibition of monopolistic practices.

o Law no. 190/2008 and 193/2008 amending certain articles of the Law no.

3/2005 on the protection of competition and the prohibition of

monopolistic practices.

o Prime Ministerial Decree no. 2957/2010, amending articles of the

Executive Regulations.

o Prime Ministerial Decrees no. 1410/2011 and No. 67/2013 delegating

certain functions to the ECA Chairman.8

5OECD Competition Law and Policy in Egypt” – Note by the Secretariat, Global Forum on

Competition, DAF/COMP/GF(2011)2/REV1, 2011, para 8. 6OECD Competition Law and Policy in Egypt” – Note by the Secretariat, Global Forum on

Competition, DAF/COMP/GF(2011)2/REV1, 2011, para 10. 7 The Global Competitiveness Report 2011-2012, World Economic Forum: Davos, 2012.

8With details, Iturriagagoitia, Legal Report (final), Project No. 2011/278647/1, April 2013.


- 8 -

The Egyptian Competition Law follows some basic EU principles but in reality only a

limited number of EU provisions have found their way in Egyptian legislation. Law

no. 3/2005 concentrates on three core prohibitions:

horizontal agreements

vertical restraints

abuse of a dominant position.

A closer look reveals specific gaps in the Egyptian Competition legislative framework

as it stands in late 2013. Some gaps can be considered as legal lacunae that can be

remedied by appropriate revision of the Egyptian Competition Law. Other

gapstendtoappear due to a lack of a systematic policy approach,with provisions

seemingly introduced as afterthoughts on occasion. It is because of this ad hoc

approach topolicy making that the legislative framework in competition remains

challenging in its construction and operation.

Indicatively, some of the gapsare:

noex antemerger controlis foreseen; mergers need only be notified9.

public utilities managed by the Egyptian state10

state price regulations11

remain exempt from competition provisions.

only a partial leniency system is provided

no regulation of collective dominance

a de minimis rule has not been introduced in law or administrative practice

Law 3/2005 on the Protection of Competition and the Prohibition of Monopolistic

Practices, has established the Authority for the Protection of Competition and the

Prohibition of Monopolistic Practices(ECA), responsible for monitoring the market,

enforcing certain provisions of the Law, receiving complaints and undertaking

inspections whenever there are doubts of malpractice that may harm competition and

is in violation of the provisions of the law. Since its founding in 2005, the ECA‟s

vision has been to be the key instrument for ensuring free competition in the market

and to prohibit anticompetitive practices, in order to serve producer and consumer

interests and enhance efficiency of national economy. The ECA‟s mission is to set,

apply, and develop free competition rules through monitoring market players‟

practices in order to promote market performance level and economic efficiency. To

efficiently undertake its role, the ECA liaises with different sector regulatory bodies,

as well as international organisations to share experiences and best practices in the

field of competition as well as to build the institutional and human capacity of the

Authority(see infra 3.2 with details).

The ECA began work in January 2006 and started to receive complaints from April

2006. It is located in the capital and possesses public legal personality. It reports to the

Prime Minister with the power being delegated to the Minister of Trade and Industry.

Art. 11 of Law 3/2005 defines the powers of the ECA as follows:

9 Although the AA does not require Egypt to introduce merger control, ECA considers tackling it of

benefit to the Egyptian economy. 10

Article 9 Law no. 3/2005;Article 14 of Prime Ministerial Decree no. 1316 of 2005. 11

Article 10, Law no. 3/2005.

http://eca.org.eg/ECA/StaticContent/View.aspx?ID=5

http://eca.org.eg/ECA/Upload/StaticContent/Form/ComplaintForm.doc


- 9 -

- Receive requests for inquiry, inspection, collecting information or issuing

orders to initiate such actions in relation to anti-competitive agreements and

practices.

- Obtain required data.

- Order the violator of the Law to readjust his position and to redress the

violation, otherwise the agreement or contract will be considered void.

- Issue a decision to stop the prohibited practice.

- Give its opinion on draft laws and regulations relating to the regulation of

competition.

- Conduct studies on certain competition problems or on certain sectors.

- Prepare recommendations for a specific infringement case.

- Coordinate with partners in other countries on matters of common interest.

- Organise training and educational programmes with a view of creating

awareness about the provisions of the Law and free market principles in

general.

- Issue periodicals containing decisions, recommendations, procedures and

measures adopted and pursued by the Authority.

- Prepare an annual report on its activities, future plans and recommendations.12

In the event of infringement proceedings, the ECA introduces the new case to its

Board, which can either decide the case (albeit with limited ambit of juridical powers

compared to most other Competition Authorities), request further evidence or refer

the matter to the Prime Minister‟s office with a recommendation on the filing of a

criminal lawsuit. The Prime Minister will initially negotiate with the wrongdoer, and

will subsequently decide whether the matter shall be referred to the Prosecutor

General for the opening of a criminal law suit. The Prosecutor will be required to

start the investigation of the case ab initio, due to the strict requirements of proof in

criminal justice. The case will finally be adjudicated before the economic courts.

ECA cases 2006 - 201213

Year

Cases

2006 2007 2008 2009 2010 2011 2012 Total

Initiated

Studies

0 1 0 3 3 2 1 10

Government

Requests

4 6 1 1 1 0 0 13

Complaints 3 8 8 4 8 3 12 46

Sub-Total 7 15 9 8 12 5 13 69

Merger

Notifications

3 1 14 7 17 7 18 67

Total 10 16 23 15 29 12 31 136

Pending

Cases

31 32 32

Violations of the Law are punished by:

procedural fines or sanctions;

12

Boehnke, Institutional Report (final), Project No. 2011/278647/1, April 2013, p. 18 13

Unpublished Monograph: “Competition Law & Policy in a Nutshell” for 2006 to 2009; ECA Annual

Report 2010 – 2011 for the years 2010 and 2011. Data for 2012 provided by the ECA Secretariat.

Copied as found in :Boehnke, Institutional Report, page 23.


- 10 -

administrative14

remedies in the form of positive/negative orders or injunctions

to redress the infringement to the Law15

and administrative penalties in the

event of non-compliance with the administrative order or injunction;

andcriminal penalties/sanctions in the form of criminal fines.

The Prime Minister may settle with regard to any infringement before a final

judgment is rendered, in return for the payment of a fine. As it happens, after the file

is transmitted to the Prime Minister, unregulated negotiations may be launched with a

view to settle the case before the Economic Court renders its verdict. This means that

negotiations are possible even during the criminal proceedings. The procedural rules

of dealing with pending matters remain incomplete; with each case following the pace

fixed on a case-by-case basis by one of the ad-hoc teams charged with the inquiry.

The Egyptian legislator has omitted to issue detailed guidelines on the implementation

of the adopted principles of competition law, including block exemptions by

categories and individual exemptions. Criminal fines are not low, although still

deemed insufficient by the Competition Authority as a deterrent; no prison sentence is

foreseen alternatively as yet for violators of competition principles. Actually, the

guilty undertaking is indirectly penalised through high financial fines imposed

individually on members of management.16

The following diagram describes the structure of the existing enforcement regime:17

14

All administrative decisions are subject to judicial review at the State Council. 15

This corresponds to the “cease and desist orders” in the EU practice. 16

Iturriagagoitia, Legal Report (final), Project No. 2011/278647/1, April 2013. 17

Courtesy of El Far, Assessing the Enforcement of the Egyptian Competition Regime (diss.), London:

QMW, 2012 [unpub.]


- 11 -

Court of Cassation

Economic Criminal Court of Appeal

Office of the Public

Prosecutor

Economic Criminal Court

Competent Minister

ECA Board

Executive Director &

Team

Administrative

Court

Supreme

Administrative

Court

If only administrative

measures are taken

If ECA chooses to take

criminal action

Substantiate the

case

Choice to proceed


- 12 -

The Egyptian Competition Authority enjoys limited actual independence from the

Prime Minister. Although a provision in the Competition Law refers to its

independence, this attribute applies only to the Authority‟s budgetary independence.18

Furthermore, the ECA is only in a position to take administrative decisions in the

form of orders addressed to undertakings. An even superficial analysis of the

allocation of powers within the Egyptian competition system shows that the Prime

Minister exercises the predominant responsibility. He intervenes at the level of

appointing all Board members and all other high-ranking positions in the institution.

He is the organ in charge of negotiating a settlement with wrongdoers. He decides

whether a criminal procedure against a presumed wrongdoer is initiated. Thus, he

controls the entire competition system from the beginning until the end.19

3.1.3. Internal Organisation of the Beneficiary Institution

The Egyptian Competition Authority is one of the top young competition authorities

having fast developed in a short time span. It has so far shown impressive potential

which can be further improved. The highest organ of the ECA is its Board of

Directors20

, which is composed of 15 members:

- a full-time Chairperson, appointed by the Prime Minister / Competent

Minister,

- a Counsellor from the State Council, to be chosen by the President of the State

Council,

- Four members representing the concerned Ministries, to be nominated by the

relevant Minister,

- Three specialists and expert members,

- Six members representing commerce, industry, banking, General Federation

for Civil Associations, Consumer Protection, and the General Union of

Labour, to be appointed by each institution.21

ECA is managed by the Board of Directors, which is appointed for four years with the

possibility of extension for another term. Board Members receive remuneration. The

Board meets at least once a month. It decides about the competition cases by majority

vote of its members, ten of its members constitute a quorum. The Board issues

regulations concerning the organisation of the work of the Authority and sets out the

financial and administrative rules pertaining to its employees, without being restricted

by the rules and regulations applicable to State employees22

.

The Competition Authority Board of Directors is assisted in its duties by a Secretariat,

as provided for in Article 21 of Ministerial Decree no. 1316 of 2005 (Executive

Regulations). The Board is headed by a full-time Chairperson who23

- files law suits and handles law cases in line with the powers delegated to the

current Chairperson by the Prime Minister in Decree No. 67 of 2013,

- coordinates with the competition authorities of other countries,

- prepares the annual report,

- nominates the Executive Director,

18

Article 14, Law no. 3/2005. 19

Iturriagagoitia, Legal Report (final), Project No. 2011/278647/1, April 2013. 20

Article 12, Law no. 3/2005. 21

See Boehnke, Institutional Report (final), Project No. 2011/278647/1, April 2013, p. 19. 22

Article 15, Law no. 3/2005. For further particulars, Boehnke, Institutional Report (final), Project No.

2011/278647/1, April 2013. 23

Art. 28 of Ministerial Decree no. 1316 of 2005 (Executive Regulations).


- 13 -

- supervises the organisation of training and educational programmes related to

the awareness about the provisions of the Law and free market principles,

- decides about staff travel24

- supervises the issuance of periodic reports25

The Chairperson is supported by a full-time Executive Director who is appointed by

the Prime Minister / Competent Minister on recommendation of the Chairperson. The

Executive Director represents the Authority before the courts and third parties and

attends the Board meetings without voting rights. The Executive Director is the

central point for case handling. 26

ECA currently consists of 57 staff, plus its Chairperson. Its organisational structure is

relatively flat and wide spread. The following chart describes its current

organisational structure:27

24

Equally to be found under Decree No. 67 of 2013. 25

Refer to Boehnke, Institutional Report (final), Project No. 2011/278647/1, April 2013, p. 20. 26

Ibid. 27

Courtesy of ECA.


- 14 -

3.1.4. Advocacy, Awareness, Training and Public Perceptions

The Advocacy and the Communications Department of ECA are actively engaged in

promoting competition culture through a series of programmes and projects that

primarily target the business community, government officials, judges and the legal

profession, media, NGOs, and university students. The advocacy activities explain,

inter alia, the role of the Authority, the benefits to the economy from the competition

law and from the Competition Authority, how to cooperate with the Authority and

how to avoid violations of the Law. Lately, the Egyptian Competition Authority has

also undertaken steps towards improving the legislation in the field of competition in

the country.

Besides, ECA is very active in training initiatives and in numerous national and

international outreach programmes. In 2009, the ECA hosted a global workshop of

the International Competition Network (ICN). Senior ECA officials regularly attend

the OECD Global Forum on Competition and the Competition Committee as well as

UNCTAD meetings. The ECA also chaired the interim Steering Group for the newly

established African Competition Forum.

Due to such endeavours, the ECA has garnered considerable international recognition

and foreign expectations of the regime are high. Equally, buoyed by the sudden post

2011 revolutionary enfranchisement, the Egyptian public has developed a rather

misguided appreciation of the ECA‟s real powers, with commentators assuming that

the ECA can e.g. simply intervene to reduce high prices through direct action. As

these realities can be hard for many to understand, much unjustified criticism is

levelled at the ECA.

3.1.5. Justification

Despite the role that is played by the ECA, it has been encumbered by a number of

challenges that are to some extent external and contextual factors.28

These may affect

the role and proper functioning of the ECA and can be summarised to the following:

The lack of clear competition policy being designed by the Government

The issuance of laws and executive regulations that might hinder Competition.

The existence of a big number of informal sectors in the economy.

Continued Interventions which may distort market dynamics and hence

competition, especially state aid.

The absence of merger rules, which does not allow ECA to prevent unwanted

market concentrations.

The lack of the deterrence nature in the penalties provided by Egyptian

Competition Law.

In addition, the ECA‟s human capacity consists of 57 employees and the Chairperson.

Less than half of these (ca 25) are legal and economic researchers. An upgrading of

the capacities of the ECA researchers will be of significant value to help them to carry

out their role efficiently.

28

Project document. LOT 10: Trade, Standards and Private Sector. Framework Contract Beneficiaries

2009.Request 2011/278647, p.3.


- 15 -

In what regards the legislative framework, the consensus is that Egyptian Competition

legislation is in need of numerous considerable improvements. The current regime

does not provide sufficient guidance and certainty to enterprises, leaving also the

Egyptian Competition Agency exposed to challenges against all its decisions

rendered. The main reason explaining the lack of judicial challenges against ECA

administrative decisions so far probably lies in the fact that in most decisions ECA

has not found a breach of the Law in the last years and that competitors and third

parties did not take part in the procedure before ECA.

Equally, the independence of the institution is not a given. ECA is at present an

institution that depends on the Prime Minister. The current allocation of functions

within the Public Administration, Parliament (insofar as ECA has not power to issue

any regulation) and the Judiciary needs to be readjusted in a way that the institution

gains effective control over its own procedures and decisions, and obtains the power

to regulate competition-related behaviour of private and publicly owned enterprises.

The Twinning project would need to take into consideration these realities, especially

bearing in mind that measurable and precise results must be mandatorily achieved.

For this reason, the Twinning project should focus on hands-on transfer of public

sector expertise available in competition authorities of a MS; such a project should not

lead to replicating a particular MS administrative system. Equally, a Twinning does

not preclude additional Technical Assistance activities via other instruments (e.g.

TAIEX, SIGMA), such as professionally done evaluations of the advocacy activities,

evaluation of trainings and internships or residual amplification of the management

information system. Through the twinning project, there will be a significant

opportunity to review the existing legislation, and provide suggestions for

amendments and additions.

In what regards the institution itself, the Egyptian Competition Authority has the

advantage of well-educated staff and seven years of operating experience. It plays an

important role in the socio-economic field, working towards a balance of power

among economic players and redressing abuses.

There are, however, a number of institutional issues which should be addressed in

order to enhance ECA‟s effectiveness and efficiency in accomplishing its mission.

The ECA will emerge from these efforts as a stronger organisation.29

3.2. Linked Activities

3.2.1. National Initiatives

Within Egypt, ECA cooperates closely on competition related matters with a number

of Egyptian regulatory bodies, in an attempt to streamline activities and avoid

competence overlap

Memoranda of Understanding (MoU) or cooperation protocols have been signed in

relation to information and report exchange, notification of relevant procedures,

coordination of procedures, and exchange of experiences with:

- National Telecom Regulatory Authority (NTRA).

- General Organisation for Export and Import Control,

- Central Agency for Public Mobilisation and Statistics (CAMPAS),

- Consumer Protection Agency (pending)

29

Boehnke, Institutional Report (final), Project No. 2011/278647/1, April 2013, p. 64.


- 16 -

- Information and Decision Support Centre (pending)

- Anti-Dumping Authority

ECA has received supporting funds from the Egyptian Ministry for Foreign

Cooperation several times. The fund has been used for various projects including:

communications and awareness activities, staff hiring, visiting experts, OECD report

funding, training programmes and hiring temporary consultants.

3.2.2. Foreign and International Cooperation

The Competition Authority has benefited from technical assistance projects from the

European Commission through the PAO. The assistance involved mainly around

visiting experts through the TAIEX programme which ECA has activated on several

occasions in the past. It should be noted that a European Commission ENPI Twinning

Project has been in operation at the Consumer Protection Agency since 2011. Its title

is „Reinforcement of the Consumer Protection Framework in Egypt and Upgrading

the Capacity of the Consumer Protection Agency‟ with a budget of 1,400,000 EUR

and is projected to run until the end of 2013. Moreover, the 2009 Twinning Project

for the National Telecommunication Regulatory Authority contained a component

specifically aimed to strengthen the NTRA capabilities.

On an international level the ECA retains a very active bundle of activities. It is

involved in information exchange, knowhow and capacity building, case support,

jurisdiction-related investigations, and awareness-raising with other competition

authorities and institutions, namely with:

- The International Competition Network (ICN),

- The Competition Committee of the Organisation for Economic Co-operation

and Development (OECD),

- EMCN, The Euro-Mediterranean Competition Network,

- The Competition Commission of the Common Market for Eastern and

Southern Africa (COMESA),

- The Agadir Agreement.

- The Intergovernmental Group of Experts on Competition Law and Policy of

the United Nations Conference on Trade and Development (UNCTAD),

- The African Competition Forum (ACF),

- The Office of Fair Trading (UK),

- The Department of Justice (USA) and the Federal Trade Commission (USA),

- The Netherlands Competition Authority,

- The FTC in Japan,

- MoU with the Turkish Competition Authority,

- The KOIKA in South Korea,30

Finally, it should be noted that the Swiss government offers ECA an annual internship

through the Swiss competition commission (WEKO) where one staff member of ECA

goes to train for 3 months at the Swiss competition commission. The internship is

fully funded by the Swiss government. 4 ECA staff members have received this

training till present.

ECA has also collaborated with USAID on many levels since its establishment.

USAID have provided various technical assistance programmes including: visiting

experts, Internships, funding for ECA events and projects.

30

See Boehnke, Institutional Report, pages 24 - 25


- 17 -

3.3. Results

A key feature of Twinning is the concept of mandatory results. Thus, both project

partners commit themselves to work towards commonly agreed results in a joint

project implementation process.

Component I. Legal Framework for Competition and Relations with Other

Regulatory Bodies

Result 1: Legislative amendments to enhance the Competition Law and its

executive regulations are drafted and accepted by the ECA board.

Result 2: ECA guidelines for application of the Competition Law are established

and applied

Result 3: Functions of ECA are unambiguously defined with respect to all other

national regulatory agencies.

Component II.Institutional Framework and Capacity Building

Result 4: ECA capacity to implementand enforcethe Competition Law is

enhanced

Result 5: The Governance and Organisational Structure of ECA is enhanced.

Result 6: The Human Resources Management of ECA is improved.

Result 7: An in-house system for managing Capacity Building and knowledge is

established.

Result8: Internal and external ECA Communication system is improvedand

confidentiality and security is guaranteed.

Component III.Advocacy and Awareness Raising

Result 9: A well-defined advocacy and awareness raising strategies are

established and implemented

3.4. Activities

3.4.0 General & Organisational

The following general activities are envisaged, in addition to activities arising from

the project components:

a kick-off meeting at the beginning of the project with the participation of all

stakeholders; this activity takes place with the aim of increasing project

visibility.

a closure meeting to ensure that the results achieved by the end of the project

are made available to all stakeholders; this activity will be held to ensure

awareness and visibility in addition to wrapping-up of project activities.

3.4.1. Component I: Legal Framework for Competition and Relations with

other Regulatory Bodies

This component will support ECA to identify and propose specific measures to

improve the legal and regulatory competition framework, by addressing current

shortcomings, with the aim of legal approximation to the relevant EU acquis and best


- 18 -

practices. In this way, it shall contribute to comprehensive compliance of all

commitments related to competition law and policy contained in the Association

Agreement and ENP/EU Egypt Action Plan.

Indicative activities under Component Iare grouped,according to results, as follows:

Result 1:Legislative amendments to enhance the Competition Law and its executive

regulations are drafted and accepted by the ECA board

Activity 1.1: Preparation of a concept paper on “Present state of independence of the

Egyptian Competition Authority”, building on EU and international best

practices for approval of the ECA Board Directors.

Activity 1.2: Preparation of the Public Memorandum “recommendation for achieving

effective independence of ECA”

Activity 1.3: Review of the current competition law and draft recommendations for

amendments to bridge gaps to EU/international best practices and

principles laid out in the Association Agreement

Activity 1.4: Public consultations and hearings of business circles and academia.

Activity1.5:Drafting legislative amendments and executive regulations for

presentation to the Board of Directors for approval

Activity 1.6: sensitisation of stakeholders on content of the proposed legislative

amendments and executive regulations

Result 2: ECA guidelines for application of the Competition Law are established and

applied

Activity 2.1: Review current guidelines and draft a revised version of the guidelines in

line with EU best practices

Activity 2.2: hold training sessions on application of the revised guidelines

Result 3:Functions of ECA are unambiguously defined with respect to all other

national regulatory agencies

Activity 3.1: prepare a Report on functions conferred to all Egyptian regulatory

agencies and the Consumer Protection Agency, incl. analysis of

overlaps and arbitration of defined functions for each agency for

validation of ECA Board of Directors.

Activity 3.2: Workshop for streamlining dysfunctions with the participation of the

regulatory agencies, the state council, academia and representatives of

private enterprises.

3.4.2. Component II: Institutional Framework and Capacity Building

This component aims at enhancing the administrative capacity within ECA by means

of streamlining its structures and processes. Comprehensive reform of the internal

workings of the ECA in the fields of governance, workflow, structure, HR,

communication and training.

Focus under this component will address the Competition Authority‟s organisational

development and institutional set-up, Operations‟ modalities, structure, and functions


- 19 -

of core and possible non-core operations. This part of the Twinning Project should

support the ECA to upgrade the appropriate set up modalities and reinforce

sustainable capacities within the organisation.

Indicative activities under Component II are grouped, according to results, as follows:

Result 4:ECA capacity to implement and enforce the Competition Law is enhanced

Activity 4.1: Prepare an Economic Report on the impact of earlier positive and

negative competition-related decisions rendered by ECA, the Prime

Minister and the Economic Courts, for validation of the Board of

Directors.

Activity 4.2: Prepare a concept paper on state aid definition and a report on State aids

granted and their economic impact on trade between the Community

and Egypt

Activity 4.3: Provide training for ECA staff on investigation techniques and economic

impact analysis

Result 5:Governance and Organisational Structure of ECA is enhanced

Activity 5.1: Develop a Three-Year Action Plan for ECA

Activity 5.2: Review the Organisational Structure of the ECA

Activity 5.3: Develop guidelines and practical tools to ensure effective workflow,

clear lines of reporting, and transparent system for selection and annual

evaluation of senior staff with guaranteed confidentiality.

Activity 5.4: Review of priorities, time lines, benchmarks and targets for all work

assignments, including guidelines for the prioritisation and closure of

cases and time lines for responding to complaints; and revise related

guidelines

Activity 5.5: Conduct a study visit for technical staff members to study EU best

practice on prioritisation and closure of cases

Result 6:Human Resources Management improved

Activity 6.1:Updating of job descriptions in context of appropriate lines of

responsibility and accountability, and including rules of deputising

Activity 6.2: Development of a plan for long-term career path for staff, which could

include guidelines for study time off and non-monetary rewards

Activity 6.3: Review and revise according to the identified needs the performance

evaluation system and its indicators

Activity 6.4: Re-examine the internal complaints procedure

Activity 6.5: Develop a concept paper considering introduction of participatory

approach to management in ECA

Result 7:An in-house system for managing Capacity Building and knowledge is

established

Activity 7.1: Conduct a training needs assessment

Activity 7.2: Design an annual plan for training and study trips, including

development of an electronic listing of trainings

Activity 7.3: Develop guidelines for the selection of staff and middle management to

participate in trainings


- 20 -

Activity 7.4: Develop guidelines for the selection of staff and middle management to

participate in trainings

Activity 7.5: Develop introductory material for new staff

Activity 7.6: Study Tour for ECA administrative personnel, one each from library,

archiving, IT, HR and administration, to a competition agency of a

Member State

Result 8: Internal communication strategies of the ECA are improved

Activity 8.1: Conduct a Review of the vertical and horizontal information flow of the

office (incl distribution of Executive Board decisions), and develop

mechanisms to ensure an efficient information flow with guaranteed

confidentiality.

Activity 8.2: Conduct an assessment of the need for installing an intranet system and

prepare a cost/benefit analysis for it for consideration of ECA top

management.

3.4.3 Component III: Advocacy and Awareness Raising

Component III aims at upgrading ECA capacities in advocacy and awareness raising

activities enabling them to develop effective tools in their outreach to other

stakeholders and policy makers.

Indicative activities under Component III are grouped,according to results,as

follows:

Result 9:A well-defined advocacy and awareness raising strategies are established

and implemented

Activity 9.1: Conduct an In-depth investigation of the advocacy activities of ECA

Activity 9.2: Developing a 3 years action plan for advocacy and awareness raising for

the ECA

Activity 9.3: Developing tools to have a wide outreach, so that competition law and

policy reach as many stakeholders as possible

Activity 9.4: Build an institutional mechanism for advocacy and awareness raising

Activity 9.5: Conduct pilot activities in advocacy and awareness raising

3.5. Means/ Input from the MS Partner Administration

The means of the present Twinning Project describe the manpower capacity made

available by the MS organisation during the implementation period of the contract.

The employment status of the staff proposed as PL, RTA and STEs must comply with

applicable rules established in point 5.4.5 Staff categories and rate of reimbursement

of the Twinning Manual.

3.5.1 Profile and tasks of the Project Leader

The Project Leader (PL)will be responsible for the overall planning and

implementation of the MS inputs in this Twinning project. The PL is expected to

devote a minimum of 3 days per month to the project progress in addition to one visit

to the beneficiary country (BC) every 3 months. In cooperation with the PL

counterpart appointed by the ECA, he will be responsible for the organisation of the

project Steering Committee which will meet in Egypt at least every three months.


- 21 -

Profile:the PL should have a university degree at masters level or higher in one of the

fields of law, economics or business management.

Qualifications and Skills:

The project leader will be expected to have the following qualifications:

Inter-personal and leadership skills

Thorough knowledge of EU directives related to Competition matters.

Good command of the English language both written and oral.

Management Capacity:

Have at least 10 years of management experience, of whicha substantial part in

the field of competition policy/law.

Hold a senior position at a Competition Authority in an EU Member State.

Experience in management of international projects, and in particular EU

funded twinning initiatives would be an advantage.

Professional Experience:

Experience in the field of project management, institutional development and

supervision of competition projects;

Tasks:

Managing and coordinating the overall direction of the project in cooperation

with the PL counterpart

Ensuring the achievement of the project results

Overseeing project implementation and progress

Liaising with the PL of the beneficiary institution

Mediating in the event of conflicts

Overseeing financial management of the project

Managing and supervising the RTA

Preparing, with the assistance of the RTA, interim quarterly and final reports

Attending and moderating the PSC meetings

3.5.2 Profile and tasks of the Resident Twinning Advisor (RTA) and RTA Assistant

The Resident Twinning Adviser (RTA)will provide 24 months input on site, leading

all aspects of the work of the MS team and will work directly with the BC project

leader and RTA counterpart on a daily basis to support and coordinate the activities

being implemented in the BC. The RTA is normally a civil servant from an EU

Member Country seconded to work in the BC.

His/her role is not purely administrative as the RTA is expected to provide high-level

advice and direction on all project activities. The RTA is expected to ensure, together

with the host administration, the achievement of the results mentioned. In order to

meet these objectives the expert may propose alternative and/or complementary

project activities and/or outputs to those identified, if regarded as necessary and

justified.

Profile: The RTA should have a university degree or higher in economics, law, or a

related discipline.


Good inter-personal and communication skills;


- 22 -

Good computer skills;

Excellent command of written and spoken English.

Management Capacity:

Previous experience of managing multi-disciplinary and multinational team

Experience in program management.


Working experience at senior technical level within a Competition Authority

at an EU Member State;

Experience in drafting and implementing competition policy and strong

background on EU-related competition legislation and best practices is

required;

Previous experiences of cooperation with ENPI Countries in the relevant field

would be considered an advantage.

Tasks

Monitor project implementation and achievement of project objectives;

Manage the day-to-day coordination and progress of the project's activities (office

accommodation will be provided by the beneficiary)

Liaise with the Beneficiary Country (BC) Project Leader and RTA counterpart.

Maintain close contact with the PAO and the EU Delegation; and

Liaise with the ECA relevant staff and other Egyptian administration authorities

Follow up progress in reform areas/policy developments at the national level that

are relevant to the project.

Provide hands on support in technical tasks of ECA staff related to the project.

Manage the input of short-term experts (STEs).

Provide expertise, advice and reports related to the project at the request of the

Egyptian authorities

Arrange study tours in the EU for staff of the beneficiary;

Report to the MS Project Leader

Prepare interim quarterly reports and final reports to be submitted to the PL;


- 23 -

RTA Assistant

The RTA will have a full-time Assistant, who will support him/her in the performance

of his/her duties during the entire project period. S/he will assist in the translation,

interpretation on a daily basis and general project duties at his/her disposal.

3.5.3.Profile and Tasks of The Short-Term Experts

There should be at least one senior, Key Expert from the MS for each of the two

major components (I & II). These Key Experts input would be between 4 and 6

months each over the duration of the project.

A team of Short-Term Experts (STE) from the MS will also be required in each

component.

Short Term Experts (STEs), whose professional skills and duration of assignment will

depend on the nature of the tasks, will assist in specific technical issues. The number

of STEs required in any particular component will depend a lot on the skills and

experience already possessed by the Key experts, and the nature of the detailed

methodology being followed.

Profiles of Key Experts and STEs:All experts should have at least a University

degree in a discipline related to the task.


Solid training skills and experience

Very Good communication skills;

Good computer literacy;

Excellent written and spoken command of English


Proven professional background in their field of expertise as required by the

respective Components of the Twinning Project

Experience in EU competition authorities or similar organisations

Experience in the formulation and implementation of new policy measures;

Previous experience of working in multi-disciplinary and multinational team.

Tasks of STE experts

All the STEs will have the following tasks to perform:

Providing expertise and knowhow transfer in their respective areas of

specialism.

Preparing and delivering workshops, seminars, on-the-job training as

appropriate to the needs of the project.

Preparing and submit brief mission reports to the RTA

Detailed Terms of Reference for Key Experts and the STEs will be elaborated by the

Twinning Project once in operation.


- 24 -

4. INSTITUTIONAL FRAMEWORK

The beneficiary of this project will be the Egyptian Competition Authority. As

Beneficiary administration, ECA will be committed to assign relevant staff to

cooperate and work closely with their MS counterparts. They will work together in

achieving the results of this project.

Most of the Twinning activities per se will be undertaken in the ECA premises,

located in Cairo. ECA will be in charge of ensuring coordination of project activities

with stakeholders. This commitment includes both high level political commitment

and a more practical commitment of BC human and financial resources.

It is expected that the Twinning Project may conceivably lead to a change of the

internal institutional framework of the beneficiary.

5. BUDGET

The maximum estimated budget for this Twinning Project is 1.100.000 Euros.

6. IMPLEMENTATION ARRANGEMENTS

6.1. Implementing Agency responsible for tendering, contracting and accounting

The Programme Administrative Office is the Contracting Authority and is in charge

of the coordination of all activities and the administrative management of the Support

to the Association Agreement Programme. The PAO will be the institution in charge

of the management of this twinning project. It manages the tenders, contracts and

payments in accordance with the procedures of ex-ante control defined in the Practical

Guide to contract procedures financed from the general Budget of the EC in the

context of external actions.

However, the BC will make available appropriate office and equipment (including

desks, internet access, telephone, fax, photocopier, etc.) for the RTA, RTA Assistant,

Key Experts and Short-Term Experts within ECApremises.Italso includes the

provision of suitable venues/material/equipment for training and meetings in the BC.

During the implementation period, the RTA will be accommodated with an

appropriate office space and communication tools. Co–financing of the BC will be in

kind.

Contact person at the PAO:

Ambassador GamalBayoumi

Programme Director

The Support of the Association Agreement Programme (SAAP)

9, Abdel Kader Hamza Street, 4th floor, Apt 401, Garden City, Cairo (Egypt)

Tel (+202) 27920583

Fax (+202) 27920583

E-mail: [email protected]

mailto:[email protected]


- 25 -

A new Financial Regulation applicable to the general budget of the European Union

entered into force on 1st of January 201331

. This implies several changes to the

Twinning contract templates. An updated version of the Twinning Manual and of its

Annexes, incorporating these changes, is in preparation and shall be published soon

on EuropeAid website32

. The Twinning contract that shall be signed as a result of the

present procedure shall follow the templates of the updated Twinning Manual and

Annexes.

6.2. Main Counterpart in the Beneficiary Country

6.2.1 Egyptian Project Leader

The Egyptian Project Leader (PL) is a senior civil servant at decision maker level.

He/she will act as the counterpart of the Member State PL. He/she will ensure the

overall steering and coordination of the project from the Egyptian side, including

proper policy dialogue and political support.

The PL's seniority will ensure his/her ability to mobilise the necessary staff in support

of the efficient implementation of the project. The Egyptian Project Leader will

coordinate the Project Steering Committee from the Egyptian side.

Project Leader in the BC

Dr. Mona El-Garf

Chairperson

Building B19, 1st Floor, Smart Village,

Cairo-Alex Desert Road, Cairo, Egypt

Tel: +202 35351900

Fax: +202 35370443

Email: [email protected]

6.2.2 RTA Counterpart

The RTA Counterpart will work with the RTA on a daily basis to ensure proper

coordination and implementation of all the activities of the project and achieve an

efficient transfer of knowledge. He/she will be responsible, together with the RTA, of

finalising the reports to be submitted to the PLs for the Project Steering. This will be a

full-time position.

RTA Counterpart in the BC

Name: Ms. Naira El-Sheikh

Title: International Relations

Building B19, 1st Floor, Smart Village,

Cairo-Alex Desert Road, Cairo, Egypt

Tel: +202 35351900

31

Financial Regulation: Regulation (EC, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October

2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:298:0001:0096:EN:PDF

Rules of Application: Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the

general budget of the Union.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:362:FULL:EN:PDF

32

http://ec.europa.eu/europeaid/where/neighbourhood/overview/twinning_en.htm


http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:298:0001:0096:EN:PDF

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:362:FULL:EN:PDF

http://ec.europa.eu/europeaid/where/neighbourhood/overview/twinning_en.htm


- 26 -

Fax: +202 35370443

Email: [email protected]

6.3. Contracts

In the event that the necessity arises, the PAO shall enter into Supply Contracts as

required for the different components of the twinning project. This will be funded

separately from the twinning budget. The supply will be provided upon the needs

assessment that will be undertaken by the experts during the implementation of the

twinning project.

There may also be other outsourcing contracts linked to the Twinning Project, but not

part of it. These will be the responsibility of the beneficiary.

7. INDICATIVE IMPLEMENTATION SCHEDULE

7.1 Launching of the call for proposals: March 2014

7.2 Start of project activities: December 2014

7.3 Project completion: November 2016

7.4 Duration of the execution period: 27 months (24 for implementation

and 3 for closure)

8. SUSTAINABILITY

The achievements of the Twinning project mandatory results should be maintained as

a permanent asset to the Beneficiary administration even after the end of the Twinning

project implementation. This presupposes inter alia that effective mechanisms are put

in place by the Beneficiary administration to disseminate and consolidate the results

of the project.

The transfer of knowledge by institutional twinning with a corresponding MS

Competition Authority is expected to provide sustainable developments; this is

envisaged if the results outlined are fully achieved. To maximise sustainability there

must be a particular focus on enhancing management procedures, communication and

training.

Specific factors affecting sustainability of the Twinning would be:

Ownership by beneficiaries: ECA has been involved in the preparation of this

project fiche and is thus committed to its objectives and targets.

Policy support/consistency: ECA will be able to entrench and enhance its

independence following the Twinning.

The institutional sustainability of the project results will also be guaranteed by

the direct involvement of the beneficiary at all levels.



- 27 -

The project size appears to be in line with ECA‟s absorption capacity. It must

be borne in mind that achieving the results recommended may generate a

certain amount of change in working practice within the Authority.

Financial sustainability: ECA reveals good financial stability, secured from the

allotted government budget.

After-effects: The project shall continue its effects and benefits in the long

term after the end of the envisaged activities, by having improved the legal

foundations and the institutional and operational setting.

9. CROSSCUTTING ISSUES

Equal opportunity principles and practices in ensuring equitable gender participation

in the project will be guaranteed. Male and female participation in the project will be

based on the relevant standards of the EU. The main criteria for staff recruitment will

be appropriate qualifications and experience in the subject matter, including in similar

projects regardless of sex, racial or ethnic origin, religion or belief, disability, age or

sexual orientation. Both men and women will have equal opportunities and salaries.

10. CONDITIONALITY AND SEQUENCING

In what concerns the beneficiary, the most important elements for the successful

outcome of this project depend on

Unequivocal commitment of the ECA leadership to the achievement of the

Twinning Project results

Strong involvement of ECA staff at all levels,

ECA Management and Executive Board are agreeable to revised structures

The results of the assessments and the recommendations will be

implemented

Ensuring access to information and documents,

Assigning/employing indispensable personnel to activities connected with

the project,

Supply office rooms, including computers, telephone, internet access,

printer, photocopier to MS experts

Availability of all relevant documents translated into English

More importantly, on the broader national and administrative level, the following

shouldbevalid:

The full political support of the Egyptian governmental authorities to

fully modernise the structure and functions of ECA.

Commitment of Government to implement the Association Agreement

and to enforce obligations under the ENP EU/Egypt Action Plan.

Support to the concept of competition with the aim of fostering a

competition culture.

The continued commitment of all governmental bodies and public

undertakings to the process of liberalising the economy.


- 28 -

Effective competition legislation is put in place and current deviations

from economic freedoms repealed, in line with EU best practices.

In what regards sequencing, a number of various activities may run in parallel.

However, some activities are dependent upon the completion of other activities in the

same component or in another component.

11. ANNEXES

I. Logical framework Planning Matrix

Annex I - Logical Framework - Twinning Fiche on Building Capacity of the Egyptian Competition Authority

29 | P a g e

ANNEX I: Logical Framework Matrix

ANNEX I - LOGFRAME PLANNING MATRIX FOR twinning fiche

Building the Capacity of the Egyptian Competition Authority (ECA)

Programme name and number

Total budget: € 1,100,000

Overall Objective Assumptions

To Contribute to ECA efforts in stimulating effective competition and the transition

towards a well-functioning market economy in compliance with Egypt's international

commitments and its National Strategic Plan.

Continued commitment of all governmental bodies and public

undertakings to the process of liberalising the economy for

efficiency.

Harmonious and genuine relationship between competition policy

and competition law.

Substantive and procedural due process enforced in the field of

competition.

No political influence exercised on ECA/Board of Directors.

Cooperation among all stakeholders.

Legal reforms adopted by the Cabinet

Project Purpose Assumptions

Enhance ECA capacity to foster an effective and non-discriminatory competition

system in Egypt within the framework of a free-market efficient economy, in line

with EU & international best practices.

Commitment of Government to implement the Association

Agreement and to enforce obligations under the ENP EU/Egypt

Action Plan.

Clear elucidation of the type of economic policy/type of market

structure envisaged in the short, medium and long term.

Reforms are supported by the Government and the Governing

Bodies of ECA


30 | P a g e

Objectively Verifiable Indicators Sources of Verification Assumptions

COMPONENT I: Legal Framework for Competition and relations with other regulatory bodies

Mandatory Result 1:

Legislative amendments to

enhance the Competition Law

and its executive regulations are

drafted and accepted by the

ECA board.

Catalogue of areas requiring legislative

upgrade according to the competition

provisions contained in the Association

Agreement and in the ENP EU/Egypt

Action Plan, validated by the Board of

Directors.

Concept Paper on legal and economic

analyses of alternatives to specific

legislative proposals, validated by the

Board of Directors.

Legislative amendments put forward for

the approval of Cabinet and onward

consideration of the Parliament

Independence of ECA clearly defined in

draft legislation

Quarterly Progress Reports.

Roadmap for written and verbal actions

identifying shortcomings and

amendments of the Competition Law,

and at broadening/streamlining its ambit

in line with the Association Agreement.

Written documents issued by ECA.

Records of public consultations and

hearings of business circles and

academia.

Evaluation Questionnaires completed by

attendants.

Public statements, articles, interviews by

business circles and academia

Public consultation documents.

List of addressees and invitees in actions

related to public consultations and

hearings.

Decision reflected in minutes of Board of

Directors meeting.

Final Report.

Adequate competition

legislation is put in place.

Genuine participation of all

stakeholders

Mandatory Result 2:

ECA guidelines for application

of the Competition Law are

established and applied

Information available on administrative

practices applied to all previous market

studies, cases and decisions rendered by

ECA with an emphasis on the

relationship of these practices with legal

provisions in the EU.

Synopsis with a systematic classification

and description of such administrative

practices, validated by the Board of

Project Progress Reports.

Catalogue of all relevant cases and

market studies.

Publication of the Synopsis of

Administrative Practices.

Publication of the Compilation of prior

administrative practices published in the

Decision reflected in minutes of Board of

Directors meeting.

The complete ECA files

accessible for the twinning

project.

Adequate translations available


31 | P a g e

Directors.

Number of Best Practices manuals

distributed among staff.

Number of training programmes for the

disclosure of all administrative practices

on hard-core cartel, abuse of a dominant

position, market definition issues and

procedures conducted.

Number of training sessions with a train-

the-trainers approach based on the Best

Practices Manuals implemented.

Training Plan.

Training programmes for the sessions.

List of invitees to the sessions.

Attendance lists to the awareness raising

actions.

Evaluation Questionnaire completed by

participants at awareness-raising actions.

Final Report.

Mandatory Result 3:

Functions of ECA are

unambiguously defined with

respect to all other national

regulatory agencies.

Report produced on functions conferred

to all Egyptian regulatory agencies and

the Consumer Protection Agency,

analysis of overlaps and arbitration of

defined functions for each agency

adopted by the Board of Directors.

Number of workshops organised for

streamlining dysfunctions with the

participation of academia and

representative of representatives of

private undertakings.

Recommended:

A mechanism to facilitate cooperation

between ECA and other regulatory

bodies in competitive issues.

Project Progress Reports.

Schedule of activities.

Lists of invitees to public conferences

and symposia.

Signed attendance lists to public

conferences and workshops.

Evaluation questionnaires completed by

attendants.

Minutes of Board of Directors meetings

and in laws, regulations or inter-

institutional agreements.

Final Report.

Disclosure of administrative

practices in all regulatory

agencies.

Readiness to cooperate to

redistribute functions if needed.


32 | P a g e

Objectively Verifiable Indicators Sources of Verification Assumptions

COMPONENT II: Institutional Framework and Capacity Building

Mandatory Result 4:

ECA capacity to implement and

enforce the Competition Law is

enhanced

Economic Report on the impact of earlier

positive and negative competition-related

decisions rendered by ECA, the Prime

Minister and the Economic Courts,

validated by the Board of Directors.

We have to work on the State Aid

definition ( as it has to be clearly and

unanimously stated)

Report validated by the Board of

Directors on the progression of all non-

private undertakings after the fifth year

of the entry into force of the Association

Agreement.

Economic and legal analyses of State

intervention and on compliance of the

present market structures with Egypt‟s

international commitments.

Number of training workshops conducted

for related staff members.

Quarterly Progress Reports.

Catalogue of all decisions rendered by

ECA, the Prime Minister and the

Economic Courts, and all market studies.

Internal Regulations for the Monitoring

Department.

Inventory of all State aids granted since

the entry into force of the Association

Agreement.

Inventory of all non-private undertakings

operating in Egypt, including their

regulatory framework.

Statistical summary of trade between the

Community and Egypt in all economic

areas subsidised by Egypt and ideally in

all economic areas where State-owned

undertakings operate in the country.

Roadmap for written and verbal actions

geared at identifying State aids and the

progression of non-private undertakings

in the light of the relevant provisions

contained in the Association Agreement.

Evaluation Questionnaires completed by

participants with respect to written

consultations and hearings carried out.

Final Report.

Availability of sufficiently

precise market statistics.

Critical uptake in surveys,

notably at the level of

consumers.

A unified State Aid definition

that has to be unanimously

approved by the ministry of

finance and the rest of the

authorities have to abide by and

cooperate accordingly.

MandatoryResult 5:

Governance and

Working Group on reform of the

Executive Board has been established

An Action Plan for the ECA, covering a

Reports by the Working Group

Text or draft of Action Plan

New organisational structure is designed

Government and Board

Members are agreeable to

reform the Executive Board


33 | P a g e

OrganisationalStructure of ECA

is enhanced

span of about three years, is developed

Organisational structure of ECA is

reviewed and recommendations are

implemented, in line with best practices

in EU countries

Clear lines of reporting are established

Priorities, time lines and benchmarks for

all work related activities are established

Codified Lines of reporting

Project progress reports.

ECA Executive Board is

agreeable to revised structure

Flexibility to hire staff.

Mandatory Result 6:

Human Resources Management

of ECA is improved

Updated job descriptions

Guidelines for study time off prepared

Performance evaluation system reviewed

Internal complaints procedure reinstated

HR files

Text of guidelines

Review report of performance evaluation

system

Reports on use of complaints procedure

HR has the capacity to follow

up with the reforms

Mandatory Result 7:

An in-house system for

managing Capacity Building and

knowledge is established

Training needs assessment conducted

including the usefulness of specific

trainings for the operations of the ECA

Annual training plan for managers and

staff in line with the needs assessment

Cost comparison of different ways of

staff training made

Number of training workshops

undertaken

Results of training needs assessment

Training plan available

Cost comparison available

Attendance lists of training workshops

The results of the assessments

will be implemented

Mandatory Result 8:

Internal ECA Communication

system is improved and

confidentiality and security is

guaranteed.

Institutionalisation of distributing

internally all decisions by the Executive

Board

Horizontal and vertical information flow

reviewed and improved

Target audience and advocacy content

reviewed, and recommendation on

improvement provided

Registration book of communications

distribution

Newsletter monthly issued

Review report of information flow,

including recommendations, is available

Recommendations will be

implemented


34 | P a g e

COMPONENT III: Advocacy and awareness raising

Mandatory Result 9:

A well-defined advocacy and

awareness raising strategies are

established and implemented

Approved Advocacy Strategy document

Approved Awareness raising Strategy

document

Regular Consultation documents and

hearings addressed to line Ministries,

academia and representatives of relevant

privately-owned business circles.

Number of related staff trained.

Advocacy Strategy document

Awareness raising Strategy document

List of attendance

Openness of stakeholders to

participate in EAC outreach and

advocacy activities is

maintained


Building the Capacity of the Egyptian Competition Authority

35

Indicative Activities By component Assumptions33

Activity 0.1: Kick-off Workshop

Activity 0.2: Final Closing Conference

COMPONENT I: Legal Framework for Competition and relations with other regulatory bodies

MANDATORY RESULT 1: legislative amendments to enhance the Competition Law and its executive regulations are drafted and accepted by the ECA board

Activity 1.1: Preparation of a concept paper on “Present state of

independence of the Egyptian Competition Authority”, building on EU and

international best practices for approval of the ECA Board Directors.

Activity 1.2: Preparation of the Public Memorandum “recommendation for

achieving effective independence of ECA”

Activity 1.3: Review of the current competition law and draft

recommendations for amendments to bridge gaps to EU/international best

practices and principles laid out in the Association Agreement

Activity 1.4: Public consultations and hearings of business circles and

academia.

Interest of stakeholders to participate

Activity 1.5: Drafting legislative amendments and executive regulations for

presentation to the Board of Directors for approval

33

Most of the assumptions are already reflected at overall objective, project purpose and result levels



36


Activity 1.6: sensitisation of stakeholders on content of the proposed

legislative amendments and executive regulations

Interest of stakeholders to participate

MANDATORY RESULT 2: ECA guidelines for application of the Competition Law are established and applied

Activity 2.1: Review current guidelines and draft a revised version of the

guidelines in line with EU best practices

Activity 2.2: hold training sessions on application of the revised guidelines

MANDATORY RESULT 3: Functions of ECA are unambiguously defined with respect to all other national regulatory agencies

Activity 3.1: prepare a Report on functions conferred to all Egyptian

regulatory agencies and the Consumer Protection Agency, incl. analysis of

overlaps and arbitration of defined functions for each agency for validation

of ECA Board of Directors.

Activity 3.2: Workshop for streamlining dysfunctions with the participation

of the regulatory agencies, the state council, academia and representatives of

private enterprises.

Willingness of stakeholders to

participate

COMPONENT II: Institutional Framework and Capacity Building

MANDATORY RESULT 4: ECA capacity to implement and enforce the Competition Law is enhanced

Activity 4.1: Prepare an Economic Report on the impact of earlier positive

and negative competition-related decisions rendered by ECA, the Prime

Minister and the Economic Courts, for validation of the Board of Directors.

Activity 4.2: Prepare a concept paper on state aid definition



37


Activity 4.3: prepare a report on State aids granted and on the economic

impact of such State aids on trade between the Community and Egypt

Activity 4.4: provide training for ECA staff on investigation techniques and

economic impact analysis

MANDATORY RESULT 5: Governance and Organisational Structure of ECA is enhanced

Activity 5.1: Develop a Three-Year Action Plan for ECA

Activity 5.2: Review the Organisational Structure of the ECA

Activity 5.3: Develop guidelines and practical tools to ensure effective

workflow, clear lines of reporting, and transparent system for selection and

annual evaluation of senior staff with guaranteed confidentiality.

Activity 5.4: Review of priorities, time lines, benchmarks and targets for all

work assignments, including guidelines for the prioritisation and closure of

cases and time lines for responding to complaints; and revised related

guidelines

Activity 5.5: conduct a study visit for technical staff members to study EU

best practice on prioritization and closure of cases

MANDATORY RESULT 6: Human Resources Management improved

Activity 6.1 Updating of job descriptions in context of appropriate lines of

responsibility and accountability, and including rules of deputising

Activity 6.2: Development of a plan for long-term career path for staff,

which could include guidelines for study time off and non-monetary rewards



38


Activity 6.3: Review and revise according to the identified needs the

performance evaluation system and its indicators

Activity 6.4: Re-examine the internal complaints procedure

Activity 6.5: Develop a concept paper considering introduction of

participatory approach to management in ECA

MANDATORY RESULT 7: An in-house system for managing Capacity Building and knowledge is established

Activity 7.1: Conduct a training needs assessment

Activity 7.2: Design an annual plan for training and study trips, including

development of an electronic listing of trainings

Activity 7.3: Develop guidelines for the selection of staff and middle

management to participate in trainings

Activity 7.4: Develop introductory material for new staff

Activity 7.5: Study Tour for ECA administrative personnel, one each from

library, archiving, IT, HR and administration, to a competition agency of a

Member State

MANDATORY RESULT 8: Internal communication strategies of the ECA are improved

Activity 8.1: Conduct a Review of the vertical and horizontal information

flow of the office (incl distribution of Executive Board decisions), and

develop mechanisms to ensure an efficient information flow with

guaranteed confidentiality.



39


Activity 8.2: Conduct an assessment of the need for installing an intranet

system and prepare a cost/benefit analysis for it for consideration of ECA

top management

Component III. Advocacy and Awareness Raising

MANDATORY RESULT 9: A well-defined advocacy and awareness raising strategies are established and implemented

Activity 9.1: Conduct an In-depth investigation of the advocacy activities of

ECA

Activity 9.2: Developing a 3 years action plan for advocacy and awareness

raising for the ECA

Activity 9.3: Developing tools to have a wide outreach, so that competition

law and policy reach as many stakeholders as possible

Willingness of stakeholders to

participate

Activity 9.4: Build an institutional mechanism for advocacy and awareness

raising

Activity 9.5: Conduct pilot activities in advocacy and awareness raising Responsiveness of the government

to advocacy actions

TWINNING PROJECT FICHE · 2015. 12. 10. · TWINNING PROJECT FICHE: Building the Capacity of the...

Documents

Transcript of TWINNING PROJECT FICHE · 2015. 12. 10. · TWINNING PROJECT FICHE: Building the Capacity of the...