# CE2004065EN.01016101.xml

| 13.3.2004 | EN | Official Journal of the European Union | CE 65/161 |
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13.3.2004

EN

Official Journal of the European Union

CE 65/161

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(2004/C 65 E/176)

WRITTEN QUESTION E-2489/03

by Sérgio Marques (PPE-DE) to the Commission

(25 July 2003)

Subject:   State of implementation of aid for Venezuela

Subject:

Following the tragic floods which hit Venezuela in December 1999, the Commission allocated a substantial amount of funding to support reconstruction in the areas affected, the purpose being to aid reconstruction in Vargas State and to support risk prevention, i.e. the drawing-up and implementation of programmes aimed at the management of natural risks in a vast area adjacent to that struck by the 1999 floods, in Falcon, Miranda and Yaracuy States.

With regard to the projects on ‘Support for reconstruction and disaster prevention in Vargas State’ (Community contribution: EUR 25 million) and ‘Social reconstruction in Vargas State’ (Community contribution: EUR 10 million), signature of the financing agreement by the Venezuelan national authorities is being awaited for implementation to commence.

With regard to the programme on ‘Flood prevention in Falcon, Yaracuy and Miranda States’ (Community contribution: EUR 20 million), a Commission decision on the allocation of the relevant appropriations was expected in the first half of 2003.

A European Parliament delegation, of which I formed part, visited Venezuela between 7 and 9 July 2003 and observed that there has been a series of delays in the approval and implementation of these projects, largely on account of differences of opinion between the Commission and the Venezuelan authorities concerning the tax arrangements for the Community projects (exemption from VAT on goods and services).

Can the Commission answer the following:

| 1. | What date is scheduled for implementation of the two projects in Vargas State? Will it be possible for all the funding allocated to be used up despite the significant delay? What obstacles remain as regards implementation of the projects? |
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1.

What date is scheduled for implementation of the two projects in Vargas State? Will it be possible for all the funding allocated to be used up despite the significant delay? What obstacles remain as regards implementation of the projects?

| 2. | What is the Commission's position on the programme on ‘Flood prevention in Falcon, Yaracuy and Miranda States’ and, if a decision has been taken in favour of this programme, what timescale is envisaged for its implementation? |
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2.

What is the Commission's position on the programme on ‘Flood prevention in Falcon, Yaracuy and Miranda States’ and, if a decision has been taken in favour of this programme, what timescale is envisaged for its implementation?

Answer given by Mr Patten on behalf of the Commission

(24 September 2003)

(24 September 2003)

| 1. | Financing agreements for two projects in the State of Vargas were signed by the Venezuelan Government on 19 December 2002. These two projects will be implemented by Corpovargas (Instituto Autónomo Corporación para la Recuperación y Desarrollo del estado Vargas) and will start on the arrival of two European technical assistants experts already hired by the Commission. The Commission has done its utmost to ensure that these projects start in September this year.
  Since the beginning of the year Corpovargas has been carrying out a detailed identification of measures/works to be carried out to reduce the time required for the projects' start-up phase. Contracts for these projects' funding will be concluded in accordance with the conditions and time limits laid down in the financing agreements.
  The framework cooperation agreement signed with the Venezuelan Government laying down the operational framework for Community cooperation has not yet been ratified by the Venezuelan Parliament. Nevertheless Presidential Decree No 2.374 of 24 April this year exempts all international cooperation projects from VAT.
  The Commission considers it will be possible to utilise all the resources made available for work to be undertaken under the two projects in question within the time limits laid down in the relevant financing agreements. |
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1.

Financing agreements for two projects in the State of Vargas were signed by the Venezuelan Government on 19 December 2002. These two projects will be implemented by Corpovargas (Instituto Autónomo Corporación para la Recuperación y Desarrollo del estado Vargas) and will start on the arrival of two European technical assistants experts already hired by the Commission. The Commission has done its utmost to ensure that these projects start in September this year.

Since the beginning of the year Corpovargas has been carrying out a detailed identification of measures/works to be carried out to reduce the time required for the projects' start-up phase. Contracts for these projects' funding will be concluded in accordance with the conditions and time limits laid down in the financing agreements.

The framework cooperation agreement signed with the Venezuelan Government laying down the operational framework for Community cooperation has not yet been ratified by the Venezuelan Parliament. Nevertheless Presidential Decree No 2.374 of 24 April this year exempts all international cooperation projects from VAT.

The Commission considers it will be possible to utilise all the resources made available for work to be undertaken under the two projects in question within the time limits laid down in the relevant financing agreements.

| 2. | The Commission adopted a decision on 25 October 2002 providing EUR 20 million for the ‘Prevención de las inundaciones en los Estados de Falcón, Yaracuy y Miranda’ project.
  The technical annexes to the financing agreement are being finalised and the agreement is expected to be signed by both parties (the Commission and Venezuelan Government) before 31 December of this year.
  The Commission would inform the Honourable Member that the delays in the signing of this financing agreement are due to the inability of the Venezuelan Government to decide who will act as the supervisory authority for this project which concerns three different States. The Commission delegation is negotiating an appropriate solution with the relevant authorities. |
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2.

The Commission adopted a decision on 25 October 2002 providing EUR 20 million for the ‘Prevención de las inundaciones en los Estados de Falcón, Yaracuy y Miranda’ project.

The technical annexes to the financing agreement are being finalised and the agreement is expected to be signed by both parties (the Commission and Venezuelan Government) before 31 December of this year.

The Commission would inform the Honourable Member that the delays in the signing of this financing agreement are due to the inability of the Venezuelan Government to decide who will act as the supervisory authority for this project which concerns three different States. The Commission delegation is negotiating an appropriate solution with the relevant authorities.

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