Logo


About us Members Positions Issue June 2016
Kopfbild

Dear Reader,

Please take note that you can also follow all news from and about EIC on our Website and on linkedin.com.

Sincerely,
Your EIC Team

Headlines
EIC Position on OECD Local Costs Rule for Construction Services submitted to EU Council Working Group on Export Credits
Headlines

EIC calls for raising the local costs restriction under OECD rules from 30% to 50% of the export contract value in order to ensure the competitiveness of construction exporters from OECD countries. Read more...

EIC Working CR holds meeting to comprise publication with good practice examples
Headlines

EIC's Working Group CR met on 31 May 2016 to analyse the options for establishing an EIC Position on Corporate Responsibility and discuss good practice examples for a forthcoming publication. Read more...

European Construction Industry calls for a holistic approach in the fight against corruption
Headlines

FIEC and EIC are committed to actively contributing to anti-corruption/ anti-bribery policies and measures world-wide, such as the forthcoming ISO standard on anti-bribery management systems. Read more...


News from Bruessels
EC Study evaluates EU Support to the Transport Sector in Africa

The study covers the time period from 2005 to 2013 during which the EU contracted a total amount of €6 billion and disbursed almost €5 billion in total for transport sector development in Africa. These sums refer to 394 Financing Decisions under which 1813 contracts have been signed, benefiting 47 partner countries in Africa. Read more...


Multilateral & International Issues
EIC joins CICA mission to World Bank Headquarters in Washington 

A delegation of European international contractors led by EIC President Dessoy joined a mission organised by CICA to the World Bank at its headquarters in Washington D.C. on 18-20 May 2016. Read more...

Brief Notices

Intl Construction Law Association holds Inaugural Seminar 

The recently formed International Construction Law Association (ICLA) is holding its inaugural seminar in Paris on Friday 24 June 2016 on “International Construction Law: Bridging
Common and Civil Law; is standardisation possible?”. The ICLA was founded with the aim of debating comparative construction law issues between the different families of law globally in order to foster an in-depth professional association on transnational construction law facilitating the development of successful projects around the world. Read more...


15th EY European Construction, Engineering & Infra-Structure Round Table

EIC Associated Company Member EY will is holding the 15the edition of its European Construction, Engineering & Infrastructure Round Table in London on 14-15 November 2016. The event brings together industry executives and EY representatives participating in insightful discussions, fuelled by the contributions of high-ranking speakers. A more detailed programme will be published shortly.

 
Headlines

EIC Position on OECD Local Costs Rule for Construction Services submitted to EU Council Working Group on Export Credits

The Hague   EIC submitted its Position on the “Review of the OECD Local Costs rule in relation to Construction Services” with a covering letter to the Chairman of the EU Council Working Group on Export Credits. EIC holds that the current approach taken in the so-called OECD Consensus towards local costs is no longer appropriate in relation to construction services.

Given that building or infrastructure “products” such as roads, railways, ports, dams, hospitals, etc. are not exportable, the existing local costs restriction in the OECD Consensus, amounting to the coverage of a maximum of 30% of the export contract value, has a negative effect on the competitiveness of construction exporters from OECD countries.

EIC calls for raising limit of cover from 30% to 50%

In the light of the fact that the European Union has the mandate to speak in the OECD on behalf of EU Member States with respect to the scope of the OECD Consensus EIC calls upon the EU Council Working Group on Export Credits to formulate a common EU proposition towards the other participants to the “OECD Consensus” to the extent that the limit for the coverage is raised from 30% to 50% for of the export contract value. Secondly, EIC calls for a specific Sector Understanding on “Construction Services”, as defined under the UN Statistics Central Product Classification, Version 2.1 (2015), Section 5, with an overall contract value of more than SDR 10 million.

Links
EIC Position on OECD Local Costs
EIC letter to the EU Council Working Group on Export Credits

Back to the top


Headlines

EIC Working CR holds meeting to comprise publication with good practice examples

Frankfurt   EIC's Working Group CR met on 31 May 2016 to analyse the options for establishing an EIC Position on Corporate Responsibility and discuss good practice examples for a forthcoming publication. The Working Group comprises contractors and CR experts from EIC member companies and federations in Belgium, Denmark, Finland, Germany, Netherlands, Spain and Sweden.

The Working Group discussed Corporate Responsibility both from a risk management as well as from a business development perspective and how European international contractors contribute to achieving the Sustainable Development Goals. Investment in infrastructure and innovation is one of 17 Global Goals that make up the 2030 Agenda for Sustainable Development.

Relevance of the 10 most important CR aspects for construction

The group will focus next on defining the relevance of the 10 most important CR aspects for construction companies, namely Health & Safety, Continuous Learning & Transfer of Know-how, Engagement of Stakeholders, Creating Added Value in Local Communities, Adapting to Climate Change, Greening Operations, Business Ethics, Labour Conditions, Supply Chain Responsibility, Human Rights & Diversity.

Back to the top


Headlines

European Construction Industry calls for a holistic appraoch in the fight against corruption 

Berlin   FIEC and EIC, defending the interests of European construction firms at European and international level, are committed to actively contributing to anti-corruption/ anti-bribery policies and measures world-wide, such as the forthcoming world-wide standard on “anti-bribery management systems” (ISO 37001, being drafted by ISO PC/278).

Moral and organisational reciprocity

Preparing for the final meeting of ISO PC/278 in Mexico in June, FIEC/ EIC representative Per Nielsen (S/ NCC) stresses that “forthcoming guidelines should clarify this 'moral and organisational reciprocity' as one of the necessary conditions for success in practice.”

Explaining the rationale of this request, Per Nielsen points out: “Considering that by definition, corruption/ bribery needs at least two consenting parties, all these efforts would not achieve the envisaged aims, if measures such as the forthcoming ISO standard were not used by all public and private bodies alike.

In other words, a client requiring from contractors proof of ISO anti-bribery management systems in place should show his own commitment and credibility by including the corresponding proof for his own organisation.”

Per Nielsen adds: “On this basis, I think it would be logical to request International Financing Institutions and Procuring Agencies having a certified ISO anti-bribery management system in place to require in their procurement procedures that tenderers also be ISO 37001 certified, in order to be qualified for submitting bids. We will address this specific aspect with our member federations in the discussions on how to make best use of this new ISO standard.”

Links
FIEC/EIC Press Release

Back to the top


News from Bruessels

EC Study evaluates EU Support to the Transport Sector in Africa

Brussels   The study covers the time period from 2005 to 2013 during which the EU contracted a total amount of €6 billion and disbursed almost €5 billion in total for transport sector development in Africa. These sums refer to 394 Financing Decisions under which 1813 contracts have been signed, benefiting 47 partner countries in Africa.

Support to Transport Sector relevant but Road Maintenance deficient

One of the main conclusions states that EU support to the transport sector in Africa has been highly relevant and largely responsive to expressed needs but that road maintenance remains deficient in many African countries and thus serviceability of road networks continues to be in doubt. Therefore the EU should analyse closely whether to re-enter the transport sector at national levels to support backlog and emergency maintenance. With respect to Sector Budget Support in the transport sector, the study observes only limited success depending on adequate sector governance in the partner country.

Review of Disengagement from Transport Sector under EDF 11 recommended

The authors of the study also recommend, among other things, that the European Commission review the 11th European Development Fund (EDF) strategy of disengagement from the transport sector as its criteria “have not been consistently applied” and “support is withheld in some countries while it continues in others with analogue developmental situations”.

Promoting Blending as Preferred Modality for EU Support

A third recommendation calls for promoting blending of financial instruments as the preferred modality for EU support to financially viable capital investments in transport infrastructure thus reducing the amount of grant funding for such projects and using it for transport projects that are economically but not financially viable.

Other recommendations concern the carrying out of ex-post evaluations, the support for small and medium sized enterprises, the strengthening of management and governance capacities as well as the implementation of methodology and tools for the integration of governance into EU support for the transport sector.

Back to the top


Multilateral & International Issues

EIC joins CICA mission to World Bank Headquarters in Washington D.C.

Washington D.C.   A delegation of European international contractors led by EIC President Philippe Dessoy of BESIX joined a mission organised by CICA to the World Bank at its headquarters in Washington D.C. on 18-20 May 2016. 

EIC Delegation holds talks with World Bank Executive Directors from Europe

EIC met with representatives of the World Bank's European, Japanese and Canadian Executive Directors´ representatives to discuss the Bank's New Procurement Framework and seized this opportunity to explain its view on the use of Alternative Procurement Arrangements, the Value-for-Money principle and on Sustainable Procurement. In addition, participants discussed how the World Bank intended to share this new vision with other Multilateral Development Bank such as the newly created Asian Infrastructure Investment Bank (AIIB).  

Discussion on new Environmental and Social Safeguards Framework

The joined EIC-CICA delegation met with the Bank's Chief Procurement Officer Christopher Browne and Procurement Manager Enzo de Laurentiis. Discussions mainly focused on feedback on the implementation of the new procurement policy and on the ongoing reform of the Environmental and Social Safeguards Framework.

Furthermore, a meeting took place with Laurence Carter, Senior Director of the Public Private Partnerships Group of the World Bank, Maninder Gill, Director of the Social Development group and Neeraj Prasad, Manager at the Climate Change Group. The EIC-CICA delegation presented its expertise on climate change resilience and on the development of capacities of Low Income Developing Countries. This meeting was followed by a discussion with Simon Ellis, Lead Transport Specialist and representatives of operational units in which EIC presented its view on the inclusion of Environment, Security, Health and Hygiene clauses in Bank-financed contracts.

Meetings with IFC and US EXIM Bank

Besides meetings at the World Bank headquarters, meetings also took place at the International Finance Corporation on good preparation of projects, at the Public Private Infrastructure Advisory Group and at the Multilateral Investment Guarantee Agency. Finally, the policy of the US External Credit Agency in Africa as well as the review of the OECD Local Costs rule in relation to the construction sector were addressed in a meeting with Robert Morin, Senior Vice President of the US EXIM Bank and his team.

Links
MIGA Presentation on Political Risk Insurance and Credit Enhancement Solutions

Back to the top

www.eic-federation.eu

Your Feedback

Imprint

European International Contractors e.V., Kurfürstenstraße 129, D-10785 Berlin
Tel +49-30-21286-244, Fax +49-30-21286-285, E-Mail newsletter@eic-federation.eu
Director and responsible under § 10 MDStV: RA Frank Kehlenbach
Vereinsregisternummer: VR 18482 B (Amtsgericht Berlin-Charlottenburg, 14057 Berlin)

Picture Credits:  © HOCHTIEF, OECD, CSR - Corporate social responsibility by mattz90, FIEC, EIC 

Unsubscribe