# Council Regulation (EU) No 567/2014Show full title

Council Regulation (EU) No 567/2014 of 26 May 2014 amending Regulation (EC) No 215/2008 on the Financial Regulation applicable            to the 10th European Development Fund as regards the application of the transition period between the 10th European Development            Fund and the 11th European Development Fund until the entry into force of the 11th European Development Fund Internal Agreement         

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U.K.

# Council Regulation (EU) No 567/2014                     

# of 26 May 2014

# amending Regulation (EC) No 215/2008 on the Financial Regulation applicable to the 10th European Development Fund as regards                        the application of the transition period between the 10th European Development Fund and the 11th European Development Fund                        until the entry into force of the 11th European Development Fund Internal Agreement                     

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the                           one part, and the European Community and its Member States, of the other part, as last amended(1) (‘the ACP-EU Partnership Agreement’),                        

Having regard to the Internal Agreement between the Representatives of the Governments of the Member States, meeting within                           the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance                           with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories                           to which Part Four of the EC Treaty applies(2) (‘the 10th EDF Internal Agreement’), and in particular Article 10(2) thereof,                        

Having regard to the proposal from the European Commission,

Having regard to the opinion of the Court of Auditors,

Having regard to the opinion of the European Investment Bank,

Whereas:

(1)Council Decision No 2013/759/EU(3) established transitional European Development Fund (EDF) management measures (‘Bridging Facility’) to ensure the availability                              of funds for cooperation with African, Caribbean and Pacific (ACP) States and with Overseas Countries and Territories (OCTs),                              as well as for support expenditure, from 1 January 2014 until the entry into force of the 11th EDF Internal Agreement.

(2)It is necessary to modify Council Regulation (EC) No 215/2008(4) as regards the operational and financial management by the Commission of the Bridging Facility in the transition period between                              the 10th EDF and the 11th EDF until the entry into force of the 11th EDF Internal Agreement and the 11th EDF Implementation                              Regulation.

(3)It is appropriate to modify in the same way the implementing rules for the operational and financial management of the Investment                              Facility implemented by the European Investment Bank (EIB) during this transitional period and until the entry into force                              of the 11th EDF Internal Agreement.

(4)Regulation (EC) No 215/2008 should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

# Article 1U.K.

For the transition period between the 10th EDF and the 11th EDF, Articles 1 to 159 of Regulation (EC) No 215/2008 are replaced                     by those laid down in the Annex to this Regulation.                  

# Article 2U.K.

This Regulation shall enter into force on the third day following that of its publication in the *Official Journal of the European Union*.                  

It shall apply until the entry into force of the 11th EDF Financial Regulation.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 26 May 2014.

*For the Council*                            

*The President*                            

Ch. Vasilakos                            

## ANNEXU.K.

## ‘PART ONEU.K.**MAIN PROVISIONS**

### *TITLE I*U.K.***Subject Matter, Scope And General Provisions***

#### Article 1Scope

This Regulation lays down the rules for the financial implementation of the resources of the European Development Fund (EDF)                        and the presentation and auditing of its accounts.                  

#### Article 2Relation to Regulation (EU, Euratom) No 966/2012

1.Unless specifically provided otherwise, direct references in this Regulation to the provisions of Regulation (EU, Euratom)                           No 966/2012 of the European Parliament and of the Council(5) shall be deemed to include also references to the corresponding provisions of Commission Delegated Regulation (EU) No 1268/2012(6).                  

2.References in this Regulation to the applicable provisions of Regulation (EU, Euratom) No 966/2012 shall not be deemed to                           include procedural provisions which are not relevant to the EDF, in particular those concerning the empowerment to adopt delegated                           acts.                  

3.Internal references in Regulation (EU, Euratom) No 966/2012 or in Delegated Regulation (EU) No 1268/2012 shall not render                           the provisions referred to indirectly applicable to the EDF.                  

4.Terms used in this Regulation shall have the same meaning as those in Regulation (EU, Euratom) No 966/2012, with the exception                           of the definitions referred to in points (a) to (e) of Article 2 of that Regulation.                  

However, for the purposes of this Regulation, the following terms in Regulation (EU, Euratom) No 966/2012 shall be defined                        as follows:                  

(a)“budget” or “budgetary” means “EDF”;                  

(b)“budgetary commitment” means “financial commitment”;                  

(c)“institution” means “the Commission”;                  

(d)“appropriations” or “operational appropriations” means “EDF resources”;                  

(e)“budget line” or “line in the budget” means “allocation”;                  

(f)“basic act” means, according to the relevant context, the 10th EDF Internal Agreement, Council Decision 2013/755/EU(7) (“the Overseas Association Decision”), or Council Regulation (EC) No 617/2007(8) (“the Implementation Regulation”);                  

(g)“third country” means any beneficiary country or territory covered by the geographical scope of the EDF.                  

5.The interpretation of this Regulation shall aim at preserving coherence with Regulation (EU, Euratom) No 966/2012 unless such                           interpretation would be incompatible with the specificities of the EDF as provided for in the ACP-EU Partnership Agreement,                           the 10th EDF Internal Agreement, the Overseas Association Decision, or the Implementation Regulation.                  

#### Article 3Periods, dates and time limits

Unless otherwise provided, Council Regulation (EEC, Euratom) No 1182/71(9) shall apply to deadlines set by this Regulation.                  

#### Article 4Protection of personal data

This Regulation is without prejudice to the requirements of Directive 95/46/EC of the European Parliament and of the Council(10) and to the requirements of Regulation (EC) No 45/2001 of the European Parliament and of the Council(11).                  

Article 29 of Delegated Regulation (EU) No 1268/2012 concerning information on transfers of personal data for audit purposes                        shall apply.                  

### *TITLE II*U.K.***Financial Principles***

#### Article 5Financial principles

The EDF resources shall be implemented in compliance with the following principles:                  

unity and budgetary accuracy;                           

unit of account;                           

universality;                           

specification;                           

sound financial management;                           

transparency.                           

The financial year shall run from 1 January to 31 December.                  

#### Article 6Principles of unity and budgetary accuracy

No revenue shall be collected and no expenditure effected unless booked to the EDF.                  

Article 8(2) and (3) and the first subparagraph of Article 8(4) of Regulation (EU, Euratom) No 966/2012 shall apply.                  

#### Article 7Principle of unit of account

Article 19 of Regulation (EU, Euratom) No 966/2012 on the use of the euro shall apply *mutatis mutandis*.                  

#### Article 8Principle of universality

Without prejudice to Article 9 of this Regulation, total revenue shall cover total estimated payments.                  

All revenue and expenditure shall be entered in full without any adjustment against each other, and without prejudice to Article                        23 of Regulation (EU, Euratom) No 966/2012 concerning rules on deductions and exchange rate adjustments, which shall apply.                  

However, the revenue referred to in point (c) of Article 9(2) of this Regulation shall automatically decrease payments made                        against the commitment from which it was generated.                  

The Union may not raise loans within the framework of the EDF.                  

#### Article 9Assigned revenue

1.Assigned revenue shall be used to finance specific items of expenditure.                  

2.The following shall constitute assigned revenue:                  

(a)financial contributions from Member States and third countries, including in both cases their public agencies, entities or                           natural persons; and from international organisations to certain external aid projects or programmes financed by the Union                           and managed by the Commission or the European Investment Bank (EIB) on their behalf in accordance with Article 10 of the Implementation                           Regulation;                  

(b)revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests;                  

(c)revenue arising from the repayment, following recovery, of amounts wrongly paid;                  

(d)revenue generated by interest on pre-financing payments, subject to Article 8(4) of Regulation (EU, Euratom) No 966/2012;                  

(e)repayments and revenues generated by financial instruments pursuant to Article 140(6) of Regulation (EU, Euratom) No 966/2012;                  

(f)revenue arising from subsequent reimbursement of taxes pursuant to point (b) of Article 23(3) of Regulation (EU, Euratom)                           No 966/2012.                  

3.Assigned revenue referred to in points (a) and (b) of paragraph 2 shall finance such items of expenditure as are determined                           by the donor provided that it is accepted by the Commission.                  

Assigned revenue referred to in points (e) and (f) of paragraph 2 shall finance items of expenditure similar to those from                        which it was generated.                  

4.Article 184(3) of Regulation (EU, Euratom) No 966/2012 shall apply *mutatis mutandis*.                  

5.Article 22(1) and (2) of Regulation (EU, Euratom) No 966/2012 concerning donations shall apply to the assigned revenue referred                           to in point (b) of paragraph 2 of this Article. With regard to Article 22(2) of Regulation (EU, Euratom) No 966/2012, acceptance                           of a donation shall be subject to the authorisation of the Council.                  

6.The EDF resources corresponding to assigned revenue shall be made available automatically when that revenue has been received                           by the Commission. However, an estimate of amounts receivable shall have the effect of making EDF resources available in the                           case of the assigned revenue referred to in point (a) of paragraph 2 where the agreement with the Member State is expressed                           in euro; payments may be carried out against that revenue only when it has been received.                  

#### Article 10Principle of specification

EDF resources shall be earmarked for specific purposes per the ACP States or OCTs and in accordance with the main instruments                        of cooperation.                  

In respect of the ACP States, those instruments are laid down by the Financial Protocol annexed to the ACP-EU Partnership                        Agreement. Earmarking of resources (indicative allocations) shall also be based on the provisions of the 10th EDF Internal                        Agreement and of the Implementation Regulation and shall take account of the resources reserved for support expenditure linked                        to programming and implementation under Article 6 of the 10th EDF Internal Agreement.                  

In respect of the OCTs, those instruments are laid down in Part Four of the Overseas Association Decision and Annex II thereto.                        Earmarking of those resources shall also take into account the non-allocated reserve provided for in Article 3(3) of that                        Annex and the resources for studies or technical assistance measures under point (c) of Article 1(1) thereof.                  

#### Article 11Principle of sound financial management

1.Article 30(1) and (2) of Regulation (EU, Euratom) No 966/2012 concerning the principles of economy, efficiency and effectiveness                           shall apply. Without prejudice to point (a) of paragraph 3 of this Article, Article 18 of Delegated Regulation (EU) No 1268/2012                           shall not apply.                  

2.Specific, measurable, achievable, relevant and timed objectives shall be set. The achievement of those objectives shall be                           monitored by performance indicators.                  

3.In order to improve decision-making, in particular to justify and specify the determination of the contributions to be paid                           by Member States referred to in Article 21 of this Regulation, the following evaluations are required:                  

(a)the use of EDF resources shall be preceded by an *ex ante* evaluation of the operation to be undertaken, covering the elements listed in Article 18(1) of Delegated Regulation (EU)                           No 1268/2012;                  

(b)the operation shall be submitted to an *ex post* evaluation with a view to ensuring that the intended results justified the means deployed.                  

4.The types of financing provided for in Title VIII of this Regulation, and the methods of implementation provided for in Article                           17 of this Regulation, shall be chosen on the basis of their ability to achieve the specific objectives of the actions and                           their ability to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and                           the expected risk of non-compliance. For grants, this shall include a consideration of the use of lump sums, flat rates and                           unit costs.                  

#### Article 12Internal control

Article 32 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

#### Article 13Principle of transparency

1.The EDF shall be implemented and the accounts presented in accordance with the principle of transparency.                  

2.The annual statement of the commitments, payments and the annual amount of calls for contributions under Article 7 of the                           10th EDF Internal Agreement shall be published in the *Official Journal of the European Union*.                  

3.Without prejudice to Article 4 of this Regulation, the first subparagraph of Article 35(2) and Article 35(3) of Regulation                           (EU, Euratom) No 966/2012, concerning the publication of information on recipients and other information, shall apply. For                           the purpose of the second subparagraph of Article 21(2) of Delegated Regulation (EU) No 1268/2012, the term “locality” shall                           mean, where necessary, the equivalent to the region at NUTS 2 level when the recipient is a natural person.                  

4.Actions financed under the EDF may be implemented with parallel or joint co-financing.                  

In the case of parallel co-financing, an action is to be split into a number of clearly identifiable components which are                        each financed by the different partners providing co-financing in such a way that the end-use of the financing can always                        be identified.                  

In the case of joint co-financing, the total cost of an action is to be shared between the partners providing the co-financing                        and the resources are to be pooled in such a way that it is no longer possible to identify the source of financing for any                        given activity undertaken as part of the action. In such cases, *ex-post* publication of grant and procurement contracts as required by the first subparagraph of Article 35(2) and Article 35(3) of                        Regulation (EU, Euratom) No 966/2012 shall comply with the rules of the entrusted entity, if any.                  

5.When providing financial assistance, the Commission shall, where appropriate, take all necessary measures in order to ensure                           the visibility of the Union's financial support. This shall include measures imposing visibility requirements on recipients                           of Union funds, except in duly justified cases. The Commission shall be responsible for monitoring recipients' compliance                           with those requirements.                  

### *TITLE III*U.K.***EDF Resources and Implementation***

#### Article 14Sources of EDF resources

The EDF resources shall consist of the ceiling referred to in Article 1 of Decision 2013/759/EU and of other assigned revenue                        referred to in Article 9 of this Regulation.                  

The EDF resources managed by the EIB shall also consist of those resources of the Investment Facility managed as a revolving                        fund.                  

#### Article 15Structure of the EDF

The EDF revenue and expenditure shall be classified according to their type or the use to which they are assigned.                  

#### Article 16EDF implementation in accordance with the principle of sound financial management

1.The Commission shall assume the responsibilities of the Union as defined in Article 57 of the ACP-EU Partnership Agreement                           and in the Overseas Association Decision. To that end, it shall implement the revenue and expenditure of the EDF in accordance                           with the provisions of this Part and Part Three of this Regulation, under its own responsibility and within the limits of                           the EDF resources.                  

2.The Member States shall cooperate with the Commission so that the EDF resources are used in accordance with the principle                           of sound financial management.                  

#### Article 17Methods of implementation

1.Articles 56 and 57 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

2.Subject to the provisions of paragraphs 3 to 5 of this Article, the rules on methods of implementation provided for in Chapter                           2 of Title IV of Part One of Regulation (EU, Euratom) No 966/2012, and Articles 188 and 193 of that Regulation, shall apply.                           However, point (b) of Article 58(1) and Article 59 of that Regulation, concerning shared management with Member States, shall                           not be applicable.                  

3.The entrusted entities shall ensure consistency with the Union's external policy and may entrust budget implementation tasks                           to other entities under conditions equivalent to those applying to the Commission. They shall fulfil their obligations under                           Article 60(5) of Regulation (EU, Euratom) No 966/2012 annually. The audit opinion shall be submitted within one month of the                           report and management declaration, to be taken into account in the assurance of the Commission.                  

International organisations as referred to in point (c)(ii) of Article 58(1) of Regulation (EU, Euratom) No 966/2012 and bodies                        of the Member States as referred to in points (c)(v) and (vi) of Article 58(1) of that Regulation which have been entrusted                        by the Commission may also entrust budget implementation tasks to non-profit organisations possessing the appropriate operational                        and financial capacity, under conditions equivalent to those applying to the Commission.                  

ACP States and OCTs may also entrust budget implementation tasks to their departments and to bodies governed by private law                        on the basis of a service contract. Those bodies shall be selected on the basis of open, transparent, proportionate and non-discriminatory                        procedures, avoiding conflict of interests. The financing agreement shall stipulate the terms of the service contract.                  

4.Where the EDF is implemented in indirect management with ACP States or OCTs, without prejudice to the responsibilities of                           the ACP States or the OCTs acting in their capacity of contracting authorities, the Commission:                  

(a)shall, where necessary, recover amounts due from recipients according to Article 80 of Regulation (EU, Euratom) No 966/2012,                           including by means of a decision which shall be enforceable under the same conditions as those laid down in Article 299 of                           the Treaty;                  

(b)may, where the circumstances so require, impose administrative and/or financial penalties under the same conditions as those                           laid down in Article 109 of Regulation (EU, Euratom) No 966/2012.                  

The financing agreement shall contain provisions on the cooperation between the Commission and the ACP State or OCTs to this                        end.                  

5.The Union's financial assistance may be provided through contributions to international, regional or national funds, such                           as those established or managed by the EIB, Member States, or by partner countries and regions or by international organisations,                           for attracting joint financing from a number of donors, or to funds set up by one or more donors for the purpose of the joint                           implementation of projects.                  

Reciprocal access by Union financial institutions to financial instruments set up by other organisations shall be promoted,                        as appropriate.                  

### *TITLE IV*U.K.***Financial Actors***

#### Article 18General provisions on financial actors and their liability

1.The Commission shall provide each financial actor with the resources required to perform his or her duties and a charter describing                           in detail his or her tasks, rights, and obligations.                  

2.Article 64 of Regulation (EU, Euratom) No 966/2012 on the segregation of duties shall apply.                  

3.Chapter IV of Title IV of Part One of Regulation (EU, Euratom) No 966/2012 concerning the liability of the financial actors                           shall apply *mutatis mutandis*.                  

#### Article 19Authorising officer

1.Articles 65, 66 and 67 of Regulation (EU, Euratom) No 966/2012 concerning, respectively, the authorising officer, his or her                           powers and duties, and those of Heads of Union Delegations, shall apply.                  

The annual activity report referred to in Article 66(9) of Regulation (EU, Euratom) No 966/2012 shall include, as an annex,                        tables showing by allocation, country, territory, region or sub-region, the total commitments, assigned funds and payments                        effected during the financial year and aggregate totals since the opening of the respective EDF.                  

2.Where the responsible authorising officer of the Commission becomes aware of problems in carrying out procedures relating                           to the management of EDF resources, he or she shall, in conjunction with the appointed national, regional, intra-ACP, or territorial                           authorising officer, make all contacts necessary to remedy the situation and take any steps that are necessary. In case the                           national, regional, intra-ACP, or territorial authorising officer does not or is unable to perform the duties incumbent on                           him or her under the ACP-EU Partnership Agreement or the Overseas Association Decision, the responsible authorising officer                           of the Commission may temporarily take the former's place and act in the name and on behalf of the former; in that case, the                           Commission may receive financial compensation for the additional administrative workload incurred from the resources allocated                           to the ACP State or OCTs in question.                  

#### Article 20Accounting officer

1.The accounting officer of the Commission shall be the accounting officer of the EDF.                  

2.Article 68, with the exception of the second subparagraph of its paragraph 1, and Article 69 of Regulation (EU, Euratom) No                           966/2012 concerning, respectively, powers and duties of the accounting officer, and powers which may be delegated by the accounting                           officer, shall apply. Article 54 and Article 57(3), the second subparagraph of Article 58(5), and Article 58(6) of Delegated                           Regulation (EU) No 1268/2012 shall not apply.                  

### *TITLE V*U.K.***Revenue Operations***

#### Article 21Annual contribution and its instalments

1.In accordance with Article 7 of the 10th EDF Internal Agreement, the ceiling for the annual amount of the contribution for                           the year n + 2 and the annual amount of the contribution for the year n + 1, as well as its payment in three instalments,                           shall be determined according to the procedure set out in paragraphs 2 to 7 of this Article.                  

The instalments to be paid by each Member State shall be set in such a way as to be in proportion to that Member State's contributions                        to the EDF as fixed in Article 1(2) of the 10th EDF Internal Agreement.                  

2.The Commission shall present a proposal by 15 October of the year n, setting out:                  

(a)the ceiling for the annual amount of the contribution for the year n + 2;                  

(b)the annual amount of the contribution for the year n + 1;                  

(c)the amount of the first instalment of the contribution for the year n + 1;                  

(d)an indicative, non-binding forecast based on a statistical approach for the expected annual amounts of contributions for the                           years n + 3 and n + 4.                  

The Council shall decide on this proposal by 15 November of the year n.                  

The Member States shall pay the first instalment of the contribution for the year n + 1 at the latest by 21 January of the                        year n + 1.                  

3.The Commission shall present a proposal by 15 June of the year n + 1, setting out:                  

(a)the amount of the second instalment of the contribution for the year n + 1;                  

(b)a revised annual amount of the contribution for the year n + 1 in line with actual needs, in cases where, in accordance with                           Article 7(3) of the 10th EDF Internal Agreement, the annual amount deviates from actual needs.                  

The Council shall decide on the proposal at the latest 21 calendar days following the presentation by the Commission of its                        proposal.                  

The Member States shall pay the second instalment at the latest 21 calendar days following the adoption of the Council decision.                  

4.By 15 June of the year n + 1, the Commission, taking into account the EIB's forecasts concerning the management and operation                           of the Investment Facility, including those interest rate subsidies which are implemented by the EIB, shall establish and                           communicate to the Council a statement of the commitments, payments, and the annual amount of the calls for contributions                           made in the year n and to be made in the years n + 1 and n + 2. The Commission shall provide the annual amounts of the contributions                           by Member State, as well as the amount still to be paid by the EDF, distinguishing between the shares of the EIB and of the                           Commission. The amounts for the years n + 1 and n + 2 shall be based on the capacity to deliver effectively the proposed level                           of resources while endeavouring to avoid significant variations between the different years, as well as significant end-of-year                           balances.                  

5.The Commission shall present a proposal by 10 October of the year n + 1, setting out:                  

(a)the amount of the third instalment of the contribution for the year n + 1;                  

(b)a revised annual amount of the contribution for the year n + 1 in line with actual needs, in cases where, in accordance with                           Article 7(3) of the 10th EDF Internal Agreement, the annual amount deviates from actual needs.                  

The Council shall decide on the proposal at the latest 21 calendar days following the presentation by the Commission of its                        proposal.                  

The Member States shall pay the third instalment at the latest 21 calendar days following the adoption of the Council decision.                  

6.The sum of the instalments relating to a certain year cannot exceed the annual amount of the contribution determined for that                           year. The annual amount of the contribution cannot exceed the ceiling determined for that year. The ceiling cannot be increased                           except in accordance with Article 7(4) of the 10th EDF Internal Agreement. A possible increase of the ceiling shall be made                           part of the proposals referred to in paragraphs 2, 3 and 5 of this Article.                  

7.The ceiling for the annual amount of the contribution to be paid by each Member State for the year n + 2, the annual amount                           of the contribution for the year n + 1 and the instalments of the contributions shall specify:                  

(a)the amount managed by the Commission; and                  

(b)the amount managed by the EIB, including the interest rates subsidies managed by it.                  

#### Article 22Payment of the instalments

1.Calls for contributions shall first use up the amounts laid down for previous European Development Funds, one after the other.                  

2.The contributions of the Member States shall be expressed in euro and shall be paid in euro.                  

3.The contribution referred to in point (a) of Article 21(7) shall be credited by each Member State to a special account entitled                           “European Commission — European Development Fund” opened with the central bank of the relevant Member State or the financial                           institution designated by it. The amount of such contributions shall remain in those special accounts until the payments need                           to be made. The Commission shall endeavour to make any withdrawals from the special accounts in such a way as to maintain                           a distribution of assets in those accounts corresponding to the contribution key pursuant to point (a) of Article 1(2) of                           the 10th EDF Internal Agreement.                  

The contribution referred to in point (b) of Article 21(7) of this Regulation shall be credited by each Member State in accordance                        with Article 53(1).                  

#### Article 23Interest for unpaid contribution amounts

1.On expiry of the time limits laid down in Article 21(2), (3) and (5), the Member State concerned shall be obliged to pay interest                           in accordance with the following conditions:                  

(a)the interest rate shall be the rate applied by the European Central Bank to its principal refinancing operations, as published                           in the C series of the *Official Journal of the European Union*, in force on the first calendar day of the month in which the time limit expires, increased by two percentage points. That                           rate shall be increased by a quarter of a percentage point for each month of delay.                  

(b)the interest shall be payable for the period elapsing from the calendar day following expiry of the time limit for payment                           up to the day of payment.                  

2.In respect of the contribution referred to in point (a) of Article 21(7), the interest shall be credited to one of the accounts                           provided for in Article 1(6) of the 10th EDF Internal Agreement.                  

In respect of the contribution referred to in point (b) of Article 21(7), the interest shall be credited to the Investment                        Facility in accordance with Article 53(1).                  

#### Article 24Calling on unpaid contributions

Upon expiry of the financial protocol annexed to the ACP-EU Partnership Agreement, the part of the contributions which the                        Member States remain obliged to pay in accordance with Article 21 of this Regulation shall be called on by the Commission                        and the EIB, as required, in accordance with the conditions laid down in this Regulation.                  

#### Article 25Other revenue operations

1.Articles 77 to 79, Article 80(1) and (2) and Articles 81 to 82 of Regulation (EU, Euratom) No 966/2012 concerning the estimate                           of the amount receivable, the establishment of amounts receivable, the authorisation and rules of recovery, the limitation                           period and national treatment of Union entitlements, shall apply. Recovery may be done by way of a Commission decision enforceable                           pursuant to Article 299 of the Treaty.                  

2.With regard to Articles 77(3) and 78(2) of Regulation (EU, Euratom) No 966/2012, the reference to own resources shall be understood                           as reference to the Member States' contributions defined in Article 21 of this Regulation.                  

3.Article 83(2) of Delegated Regulation (EU) No 1268/2012 shall apply to recoveries established in euro. For recoveries in local                           currency, it shall apply using the rate of the central bank of the country issuing the currency in force on the first calendar                           day of the month in which the recovery order is established.                  

4.With regard to Article 84(3) of Delegated Regulation (EU) No 1268/2012, the list of entitlements shall be established separately                           for the EDF and shall be added to the report referred to in Article 44(2) of this Regulation.                  

5.Articles 85 and 90 of Delegated Regulation (EU) No 1268/2012 shall not apply.                  

### *TITLE VI*U.K.***Expenditure Operations***

#### Article 26Financing decisions

The commitment of expenditure shall be preceded by a financing decision adopted by the Commission.                  

Article 84 of Regulation (EU, Euratom) No 966/2012 shall apply, with the exception of paragraph 2 thereof.                  

#### Article 27Rules applicable to commitments

1.Article 85, with the exception of point (c) of paragraph 3 thereof, Articles 86, 87, 185, and Article 189(1) and (2) of Regulation                           (EU, Euratom) No 966/2012 concerning commitments and the implementation of external actions shall apply. Article 95(2), points                           (a) and (e) of Article 97(1) and Article 98 of Delegated Regulation (EU) No 1268/2012 shall not apply.                  

2.With regard to the application of Article 189(2) of Regulation (EU, Euratom) No 966/2012, the period to conclude individual                           contracts and grants agreements which implement the action may be extended beyond three years following the date of the conclusion                           of the financing agreement where ACP States and OCTs entrust budget implementation tasks pursuant to Article 17(3) of this                           Regulation.                  

3.Where the EDF resources are implemented in indirect management with ACP States or OCTs, the responsible authorising officer                           may, upon accepting justification, extend the two-year period referred to in the third subparagraph of Article 86(5) of Regulation                           (EU, Euratom) No 966/2012 and the three-year period referred to in the second subparagraph of Article 189(2) thereof.                  

4.At the end of the extended periods referred to in paragraph 3 of this Article, or the periods referred to in the third subparagraph                           of Article 86(5) and in the second subparagraph of Article 189(2) of Regulation (EU, Euratom) No 966/2012, the unused balances                           shall be, as applicable, decommitted.                  

5.Where measures are adopted under Articles 96 and 97 of the ACP-EU Partnership Agreement, the running of the extended periods                           referred to in paragraph 3 of this Article, in the third subparagraph of Article 86(5) and the second subparagraph of Article                           189(2) of Regulation (EU, Euratom) No 966/2012 may be suspended.                  

6.For the purposes of point (c) of paragraph 1 and of point (b) of paragraph 2 of Article 87 of Regulation (EU, Euratom) No                           966/2012, compliance and regularity shall be assessed against the relevant provisions, in particular the Treaties, the ACP-EU                           Partnership Agreement, the Overseas Association Decision, the 10th EDF Internal Agreement, this Regulation, and all acts adopted                           in implementation of those provisions.                  

7.Each legal commitment shall expressly provide for the Commission and the Court of Auditors to have the power of verification                           and audit and for OLAF to have the power of investigations, on the basis of documents and on the spot, over all beneficiaries,                           contractors, and subcontractors who have received EDF funds.                  

#### Article 28Validation, authorisation and payment of expenditure

Articles 88, 89, Article 90, with the exception of the second subparagraph of paragraph 4 thereof, Article 91 and Article                        184(4) of Regulation (EU, Euratom) No 966/2012 shall apply.                  

#### Article 29Time limits for payment

1.Subject to paragraph 2, Article 92 of Regulation (EU, Euratom) No 966/2012 shall apply to payments carried out by the Commission.                  

2.Where EDF resources are implemented in indirect management with ACP States or OCTs and the Commission executes payments on                           their behalf, the time limit referred to in point (b) of Article 92(1) of Regulation (EU, Euratom) No 966/2012 shall apply                           to all payments not referred to in point (a) thereof. The financing agreement shall contain the necessary provisions to ensure                           the timely collaboration of the contracting authority.                  

3.Claims for delayed payments for which the Commission is responsible shall be charged to the account or accounts provided for                           in Article 1(6) of the 10th EDF Internal Agreement.                  

### *TITLE VII*U.K.***Various Implementation Provisions***

#### Article 30Internal auditor

The internal auditor of the Commission shall be the internal auditor of the EDF. Articles 99 and 100 of Regulation (EU, Euratom)                        No 966/2012 shall apply.                  

#### Article 31IT systems, electronic transmission and e-Government

Articles 93, 94 and 95 of Regulation (EU, Euratom) No 966/2012, concerning the electronic management of operations and documents,                        shall apply *mutatis mutandis*.                  

#### Article 32Good administration and redress

Articles 96 and 97 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

#### Article 33Use of the central exclusion database

The central exclusion database set up pursuant to Article 108(1) of Regulation (EU, Euratom) No 966/2012 which contains details                        of candidates and tenderers, and applicants and beneficiaries who are in one of the situations referred to in Article 106,                        point (b) of the first subparagraph of Article 109(1), and point (a) of Article 109(2) of that Regulation shall be used for                        the implementation of the EDF.                  

Article 108(2) and (5) of Regulation (EU, Euratom) No 966/2012 and Articles 142 and 144 of Delegated Regulation (EU) No 1268/2012                        on the use of the central exclusion database and on the access to it shall apply *mutatis mutandis*.                  

With regard to Article 108(2) of Regulation (EU, Euratom) No 966/2012, the Union's financial interests shall include the implementation                        of the EDF.                  

#### Article 34Administrative arrangements with the EEAS

Detailed arrangements may be agreed between the European External Action Service (EEAS) and the Commission services in order                        to facilitate the implementation by Union Delegations of the resources foreseen for support expenditure linked to the EDF                        under Article 6 of the 10th EDF Internal Agreement.                  

### *TITLE VIII*U.K.***Types Of Financing***

#### Article 35General provisions on types of financing

1.For the purpose of providing financial assistance under this Title, cooperation between the Union, the ACP States and OCTs                           may take the form, inter alia, of:                  

(a)triangular arrangements by which the Union coordinates with any third country its assistance to an ACP State, OCTs or region;                  

(b)administrative cooperation measures such as twinning between the public institutions, local authorities, national public bodies                           or private law entities entrusted with public service tasks of a Member State or an outermost region, and those of an ACP                           State or OCTs or their region, as well as cooperation measures involving public-sector experts dispatched from the Member                           States and their regional and local authorities;                  

(c)expert facilities for targeted capacity building in the ACP State, OCTs or their region and short term technical assistance                           and advice to them, as well as support of sustainable centres of knowledge and excellence on governance and reform in the                           public sector;                  

(d)contributions to the costs necessary to set up and administer a public-private partnership;                  

(e)sector policy support programmes, by which the Union provides support to an ACP State's or OCTs' sector programme; or                  

(f)interest rate subsidies in accordance with Article 37.                  

2.In addition to the types of financing provided for in Articles 36 to 42, financial assistance may also be provided through                           the following:                  

(a)debt relief, under internationally agreed debt relief programmes;                  

(b)in exceptional cases, sectoral and general import programmes, which may take the form of:                  
          -  (b)sectoral import programmes in kind; 
          -  sectoral import programmes providing foreign exchange to finance imports for the sector in question; or                         
          -  general import programmes providing foreign exchange to finance general imports of a wide range of products.                         

3.Financial assistance may also be provided through contributions to international, regional or national funds, such as those                           established or managed by the European Investment Bank, Member States or by ACP States or OCTs and regions or by international                           organisations, for attracting joint financing from a number of donors, or to funds set up by one or more donors for the purpose                           of the joint implementation of projects.                  

Reciprocal access by Union financial institutions to financial instruments set up by other organisations shall be promoted,                        as appropriate.                  

4.In implementing its support to transition and reform in ACP States and OCTs, the Union shall draw on and share the experiences                           of Member States and lessons learned.                  

#### Article 36Procurement

1.Article 101 of Regulation (EU, Euratom) No 966/2012 defining public contracts shall apply.                  

2.For the purposes of this Regulation, the contracting authorities shall be:                  

(a)the Commission on behalf of, and on account of, one or more ACP States or OCTs;                  

(b)entities and persons referred to in Article 185 of Regulation (EU, Euratom) No 966/2012 and entrusted with the corresponding                           budget implementation tasks.                  

3.For procurement contracts awarded by the contracting authorities referred to in paragraph 2 of this Article, or on their behalf,                           the provisions of Chapter 1 of Title V of Part One and of Chapter 3 of Title IV of Part Two of Regulation (EU, Euratom) No                           966/2012 shall apply, with the exception of:                  

(a)Article 103, the second subparagraph of Article 104(1) and Article 111 of Regulation (EU, Euratom) No 966/2012;                  

(b)Article 127(3) and (4), Article 128, Articles 134 to 137, Article 139(3) to (6), Article 148(4), Article 151(2), Article 160,                           Article 164, the second sentence of Article 260, and Article 262 of Delegated Regulation (EU) No 1268/2012.                  

Article 124(2) of Delegated Regulation (EU) No 1268/2012 shall apply to building contracts.                  

The first subparagraph of this paragraph shall not apply to the contracting authorities referred to in point (b) of paragraph                        2 of this Article where, following the checks referred to in Article 61 of Regulation (EU, Euratom) No 966/2012, the Commission                        has authorised them to use their own procurement procedures.                  

4.For procurement contracts awarded by the Commission on its own account as well as the implementing actions relating to crisis                           management aid and civil protection and humanitarian aid operations, the provisions of Title V of Part One of Regulation (EU,                           Euratom) No 966/2012 shall apply.                  

5.In the event of failure to comply with the procedures referred to in paragraph 3, expenditure on the operations in question                           shall not be eligible for EDF financing.                  

6.The procurement procedures referred to in paragraph 3 shall be laid down in the financing agreement.                  

7.With regard to point (a) of Article 263(1) of Delegated Regulation (EU) No 1268/2012:                  

(a)“a prior information notice” is the notice by which the contracting authorities make known, by way of indication, the estimated                           total value and subject of contracts and framework contracts which they intend to award during a financial year, but excluding                           contracts under the negotiated procedure without prior publication of a contract notice;                  

(b)“a contract notice” is the means by which the contracting authorities make known their intention to launch a procedure for                           the award of a contract or framework contract or to set up a dynamic purchasing system in accordance with Article 131 of Delegated                           Regulation (EU) No 1268/2012;                  

(c)“an award notice” is the notice which gives the outcome of the procedure for the award of contracts, framework contracts or                           contracts based on a dynamic purchasing system.                  

#### Article 37Grants

1.Subject to paragraphs 2 and 3 of this Article, Title VI of Part One and Article 192 of Regulation (EU, Euratom) No 966/2012                           shall apply.                  

2.Grants are direct financial contributions, by way of donation, from the EDF in order to finance any of the following:                  

(a)an action intended to help achieve an objective of the ACP-EU Partnership Agreement or the Overseas Association Decision,                           or of a programme or project adopted in accordance with that Agreement or Decision; or                  

(b)the functioning of a body which pursues an objective referred to in point (a).                  

A grant within the meaning of point (a) may be awarded to a body referred to in Article 208(1) of Regulation (EU, Euratom)                        No 966/2012.                  

3.When working with stakeholders of ACP States and OCTs, the Commission shall take into account their specificities, including                           needs and context, when defining the modalities of financing, the type of contribution, the award modalities and the administrative                           provisions for the management of grants with the purpose of reaching and best responding to the widest possible range of stakeholders                           of ACP States and OCTs, and most efficiently achieving objectives of the ACP-EU Partnership Agreement or the Overseas Association                           Decision. Specific modalities shall be encouraged, such as partnership agreements, financial support to third parties, direct                           award or eligibility-restricted calls for proposals or lump sums.                  

4.The following shall not constitute grants within the meaning of this Regulation:                  

(a)items referred to in points (b) to (f), (h) and (i) of Article 121(2) of Regulation (EU, Euratom) No 966/2012;                  

(b)financial assistance referred to in Article 35(2) of this Regulation.                  

5.Articles 175 and 177 of Delegated Regulation (EU) No 1268/2012 shall not apply.                  

#### Article 38Prizes

Title VII of Part One of Regulation (EU, Euratom) No 966/2012 shall apply, with the exception of the second subparagraph of                        Article 138(2) thereof.                  

#### Article 39Budget support

Article 186 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

Union general or sector budget support is based on mutual accountability and shared commitments to universal values, and aims                        at strengthening contractual partnerships between the Union and ACP States or OCTs in order to promote democracy, human rights                        and the rule of law, to support sustainable and inclusive economic growth and to eradicate poverty.                  

Any decision to provide budget support shall be based on budget support policies agreed by the Union, a clear set of eligibility                        criteria and a careful assessment of the risks and benefits.                  

One of the key determinants of such a decision shall be an assessment of the commitment, record and progress of ACP States                        and OCTs with regard to democracy, human rights and the rule of law. Budget support shall be differentiated to better respond                        to the political, economic and social context of the ACP States and OCTs, taking into account situations of fragility.                  

When providing budget support, the Commission shall clearly define and monitor its conditionality, and shall also support                        the development of parliamentary control and audit capacities and increase transparency and public access to information.                  

Disbursement of budget support shall be conditional on satisfactory progress towards achieving the objectives agreed with                        the ACP States and OCTs.                  

When providing budget support to OCTs, their institutional links to the Member State concerned shall be taken into account.                  

#### Article 40Financial instruments

Financial instruments may be established in the financing decisions referred to in Article 26. They shall be, whenever possible,                        under the lead of the EIB, a multilateral European financial institution, such as the European Bank for Reconstruction and                        Development (EBRD), or a bilateral European financial institution, e.g. bilateral development banks, possibly pooled with                        additional grants from other sources.                  

The Commission may implement financial instruments under direct management, or under indirect management by entrusting tasks                        to entities pursuant to point (c)(ii), (iii), (v) and (vi) of Article 58(1) of Regulation (EU, Euratom) No 966/2012. Those                        entities shall fulfil the requirements of Regulation (EU, Euratom) No 966/2012 and shall comply with Union objectives, standards                        and policies, as well as best practices regarding the use of and reporting on Union funds.                  

Entities which fulfil the criteria of Article 60(2) of Regulation (EU, Euratom) No 966/2012 are deemed to meet the selection                        criteria referred to in Article 139 of that Regulation. Title VIII of Part One of Regulation (EU, Euratom) No 966/2012 shall                        apply, with the exception of paragraph 1, the first subparagraph of paragraph 4 and paragraph 5 of Article 139 thereof.                  

Financial instruments may be grouped into facilities for implementation and reporting purposes.                  

#### Article 41Experts

The second paragraph of Article 204 of Regulation (EU, Euratom) No 966/2012 and Article 287 of Delegated Regulation (EU) No                        1268/2012 concerning remunerated external experts shall apply.                  

#### Article 42Union trust funds

1.Subject to paragraph 2 of this Article, Article 187 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

2.With regard to Article 187(8) of Regulation (EU, Euratom) No 966/2012, the competent committee shall be the committee referred                           to in Article 8 of the 10th EDF Internal Agreement.                  

### *TITLE IX*U.K.***Presentation Of The Accounts And Accounting***

#### Article 43EDF accounts

1.The EDF accounts describing its financial situation as of 31 December of a given year shall comprise:                  

(a)the financial statements;                  

(b)the report on financial implementation.                  

The financial statements shall be accompanied by the information supplied by the EIB in accordance with Article 57.                  

2.The accounting officer shall send the provisional accounts to the Court of Auditors by 31 March of the following year.                  

3.The Court of Auditors shall, by 15 June of the following year, make its observations on the provisional accounts as regards                           the part of the EDF resources for the financial management of which the Commission is responsible, so that the Commission                           can make the corrections deemed necessary for drawing up the final accounts.                  

4.The Commission shall approve the final accounts and send them to the European Parliament, to the Council and to the Court                           of Auditors by 31 July of the following year at the latest.                  

5.The second subparagraph of Article 148(3) of Regulation (EU, Euratom) No 966/2012 shall apply.                  

6.The final accounts shall be published in the *Official Journal of the European Union* together with the statement of assurance given by the Court of Auditors in accordance with Article 49 by 15 November of the                           following year.                  

7.The provisional and final accounts may be sent, pursuant to paragraphs 2 and 4, by electronic means.                  

#### Article 44Financial statements and the report on financial implementation

1.Article 145 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

2.The report on financial implementation shall be prepared by the responsible authorising officer and transmitted to the accounting                           officer by 15 March for the inclusion in the EDF accounts. It shall present a true and fair view of the revenue and expenditure                           operations from EDF resources. It shall be presented in millions of euro and shall comprise:                  

(a)the financial outturn account, which sets out all financial operations for the year in terms of revenue and expenditure;                  

(b)the annex to the financial outturn account, which shall supplement and comment on the information given in that account.                  

3.The financial outturn account shall contain the following:                  

(a)a table describing changes over the preceding financial year in the allocations;                  

(b)a table showing by allocation the total commitments, assigned funds and payments effected during the financial year and aggregate                           totals since the opening of the EDF.                  

#### Article 45Monitoring and reporting by the Commission and the EIB

1.The Commission and the EIB shall monitor, each to the extent to which it is concerned, the use of EDF assistance by the ACP                           States, the OCTs or any other beneficiary, and the implementation of projects financed by the EDF, having particular regard                           to the objectives referred to in Articles 55 and 56 of the ACP-EU Partnership Agreement and in the corresponding provisions                           of the Overseas Association Decision.                  

2.The EIB shall periodically inform the Commission regarding the implementation of projects financed by the EDF resources it                           administers, following the procedures set out in the operational guidelines of the Investment Facility.                  

3.The Commission and the EIB shall provide the Member States with information on the operational implementation of EDF resources                           as foreseen in Article 18 of the Implementation Regulation. The Commission shall send that information to the Court of Auditors                           in accordance with Article 11(5) of the 10th EDF Internal Agreement.                  

#### Article 46Accounting

The accounting rules referred to in Article 143(1) of Regulation (EU, Euratom) No 966/2012 shall apply to the EDF resources                        managed by the Commission. Those rules shall be applied to the EDF while taking into account the specific nature of its activities.                  

The accounting principles contained in Article 144 of Regulation (EU, Euratom) No 966/2012 shall apply to the financial statements                        referred to in Article 44 of this Regulation.                  

Articles 151, 153, 154 and 155 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

The accounting officer shall prepare and, after consulting the responsible authorising officer, adopt the chart of accounts                        to be applied to the EDF's operations.                  

#### Article 47Budgetary accounting

1.The budgetary accounts shall provide a detailed record of the financial implementation of the EDF resources.                  

2.The budgetary accounts shall show all:                  

(a)allocations and the corresponding EDF resources;                  

(b)financial commitments;                  

(c)payments; and                  

(d)established debts and collection operations for the financial year, in full and without any adjustment against each other.                  

3.When commitments, payments and debts are expressed in national currencies, the accounting system shall make it possible, where                           necessary, for them to be recorded in national currencies as well as in euro.                  

4.Global financial commitments shall be recorded in euro for the value of the financing decisions taken by the Commission. Individual                           financial commitments shall be recorded in euro at the equivalent of the value of the legal commitments. That value shall                           include where appropriate:                  

(a)provision for the payment of reimbursable expenses on presentation of supporting documents;                  

(b)provision for the revision of prices, for the increase in quantities, and for contingencies as defined in EDF-funded contracts;                  

(c)financial provision for exchange rate fluctuations.                  

5.All accounting records referring to the fulfilment of a commitment shall be kept for a period of five years from the date                           of the decision giving discharge in respect of the financial implementation of EDF resources referred to in Article 50, concerning                           the financial year during which the commitment was closed for accounting purposes.                  

### *TITLE X*U.K.***External Audit And Discharge***

#### Article 48External audit

1.Regarding the operations financed from EDF resources managed by the Commission in accordance with Article 16, the Court of                           Auditors shall exercise its powers in accordance with this Article and Article 49.                  

2.Articles 159, 160, Article 161, with the exception of paragraph 6 thereof, Article 162, with the exception of the first sentence                           of paragraph 3 and of paragraph 5 thereof, and Article 163 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

3.For the purposes of Article 159(1) of Regulation (EU, Euratom) No 966/2012, the Court of Auditors shall have regard to the                           Treaties, the ACP-EU Partnership Agreement, the Overseas Association Decision, the 10th EDF Internal Agreement, this Regulation                           and all other acts adopted pursuant to those instruments.                  

4.For the purposes of Article 162(1) of Regulation (EU, Euratom) No 966/2012, the date set out in the first sentence shall be                           15 June.                  

5.The Court of Auditors shall be informed of the internal rules referred to in Article 56(1) of Regulation (EU, Euratom) No                           966/2012, including the appointment of authorising officers, as well as of the instrument of delegation referred to in Article                           69 of Regulation (EU, Euratom) No 966/2012.                  

6.The national audit authorities of the ACP States and the OCTs shall be encouraged to cooperate with the Court of Auditors                           at its invitation.                  

7.The Court of Auditors may, at the request of one of the other Union institutions, issue opinions on matters relating to the                           EDF.                  

#### Article 49Statement of assurance

At the same time as the annual report referred to in Article 162 of Regulation (EU, Euratom) No 966/2012, the Court of Auditors                        shall provide the European Parliament and the Council with a statement of assurance as to the reliability of the accounts                        and the legality and regularity of the underlying transactions, which shall be published in the *Official Journal of the European Union*.                  

#### Article 50Discharge regarding the Commission

1.The discharge decision shall cover the accounts referred to in Article 43, except the part thereof provided by the EIB in                           accordance with Article 57, and shall be adopted in accordance with Article 164 and Article 165(2) and (3) of Regulation (EU,                           Euratom) No 966/2012. The discharge referred to in Article 164(1) of Regulation (EU, Euratom) No 966/2012 shall be given in                           respect of those EDF resources that are managed by the Commission in accordance with Article 16(1) of this Regulation for                           year n.                  

2.The discharge decision shall be published in the *Official Journal of the European Union*.                  

3.Articles 166 and 167 of Regulation (EU, Euratom) No 966/2012 shall apply.                  

## PART TWOU.K.**INVESTMENT FACILITY**

### Article 51Role of the European Investment Bank

The EIB shall manage the Investment Facility and conduct operations thereunder, including interest rate subsidies and technical                        assistance, on behalf of the Union in accordance with Part Two of this Regulation.                  

In addition, the EIB shall undertake the financial implementation of other operations carried out by means of financing from                        its own resources in accordance with Article 4 of the 10th EDF Internal Agreement, where applicable combined with interest                        rate subsidies drawn from the EDF resources.                  

The implementation of Part Two of this Regulation shall not give rise to any obligations or liabilities on the part of the                        Commission.                  

### Article 52Estimates of commitments and payments of the Investment Facility

Before 1 September of each year, the EIB shall send the Commission its estimates of commitments and payments, which are necessary                        for drawing up the statement referred to in Article 7(1) of the 10th EDF Internal Agreement, in respect of the operations                        of the Investment Facility, including those interest rate subsidies that it implements, in accordance with the 10th EDF Internal                        Agreement. The EIB shall send the Commission updated estimates of commitments and payments when deemed necessary. Modalities                        shall be defined in the management agreement provided for in Article 55(4) of this Regulation.                  

### Article 53Management of contributions to the Investment Facility

1.The contributions referred to in point (b) of Article 21(7) and adopted by the Council shall be paid without cost for the                           beneficiary by the Member States to the EIB via a special account opened by the EIB in the name of the Investment Facility                           in accordance with detailed rules laid down in the management agreement provided for in Article 55(4).                  

2.Save where the Council decides otherwise regarding the remuneration of the EIB, in accordance with Article 5 of the 10th EDF                           Internal Agreement, proceeds received by the EIB via the credit balance of the special accounts referred to in paragraph 1                           shall supplement the Investment Facility and shall be taken into consideration for the calls for contribution referred to                           in Article 21.                  

3.The EIB shall undertake the treasury management of the amounts referred to in paragraph 1 in accordance with the detailed                           rules laid down in the management agreement provided for in Article 55(4).                  

4.The Investment Facility shall be managed in accordance with the conditions laid down in the ACP-EU Partnership Agreement,                           the Overseas Association Decision, the 10th EDF Internal Agreement and Part Two of this Regulation.                  

### Article 54Remuneration of the EIB

The EIB shall be remunerated on a full indemnity basis for the management of the Investment Facility operations. The Council                        shall decide on the resources and mechanisms for remuneration of the EIB in accordance with Article 5(4) of the 10th EDF Internal                        Agreement. The measures implementing that decision shall be incorporated in the management agreement provided for in Article                        55(4).                  

### Article 55Implementation of the Investment Facility

1.The EIB's own rules shall apply to instruments financed by the EDF resources which it manages.                  

2.Where programmes or projects are co-financed by the Member States or their implementing bodies, and correspond to the priorities                           which are laid down in the Country Cooperation Strategies and Programming Documents provided for in the Implementation Regulation                           foreseen in Article 10(1) of the 10th EDF Internal Agreement and in Article 83 of the Overseas Association Decision, the EIB                           may entrust tasks in the implementation of the Investment Facility to Member States or their implementing bodies.                  

3.The names of the recipients of financial support under the Investment Facility shall be published by the EIB, unless such                           disclosure risks harming the commercial interests of the recipients, with due observance of the requirements of confidentiality                           and security, in particular the protection of personal data. The criteria for disclosure and the level of detail published                           shall take into account specificities of the sector and the nature of the Investment Facility.                  

4.The detailed rules for implementing this Part shall be the subject of a management agreement between the Commission, acting                           on behalf of the Union, and the EIB.                  

### Article 56Reporting under the Investment Facility

The EIB shall regularly inform the Commission of the operations carried out under the Investment Facility, including interest                        rate subsidies, the use made of each call for contributions paid to the EIB, and, in particular, of the total quarterly amounts                        of commitments, contracts and payments, in accordance with the detailed rules laid down in the management agreement provided                        for in Article 55(4).                  

### Article 57Accounting, financial statements and annual report of the Investment Facility

1.The EIB shall keep the accounts of the Investment Facility, including those interest rate subsidies that are implemented by                           it and financed by the EDF, to provide a trail for the full circuit of the funds, from receipt to disbursement and then to                           the revenue to which they give rise and any subsequent recoveries. The EIB shall draw up the relevant accounting rules and                           methods which are guided by international accounting standards and inform the Commission and the Member States accordingly.                  

2.Each year the EIB shall send the Council and the Commission a report on the implementation of operations financed from EDF                           resources under its management, including the financial statements drawn up in accordance with the rules and methods referred                           to in paragraph 1 and the information referred to in Article 44(3).                  

Those documents shall be submitted in draft form no later than 28 February and in their final version no later than 30 June                        of the financial year following the one which they concern, so that they can be used by the Commission in preparing the accounts                        referred to in Article 43 in accordance with Article 11(6) of the 10th EDF Internal Agreement. The report on the financial                        management of the resources managed by the EIB shall be submitted by the latter to the Commission by 31 March.                  

### Article 58External audit and discharge on EIB operations

The operations financed from EDF resources managed by the EIB in accordance with this Part shall be subject to the audit and                        discharge procedures laid down in the Statute of the EIB for all its operations. Detailed rules for auditing by the Court                        of Auditors are set out in a Tripartite Agreement between the EIB, the Commission and the Court of Auditors.                  

## PART THREEU.K.**TRANSITIONAL PROVISIONS**

### Article 59Revenue from interest on resources of the Eighth, Ninth and Tenth EDFs

The balance of revenue accruing from interest on the resources of the Eighth, Ninth and Tenth EDFs shall be transferred to                        the EDF and allocated for the same purposes as the revenue provided for in Article 1(6) of the 10th EDF Internal Agreement.                        The same shall apply to miscellaneous revenue of the Eighth, Ninth and Tenth EDFs comprising, for example, default interest                        received in the event of late payment of contributions to those EDFs by Member States. The interest generated by the EDF resources                        managed by the EIB shall supplement the Investment Facility.                  

### Article 60Application of this Regulation to operations under the Eighth, Ninth and Tenth EDFs

The provisions of this Regulation shall apply to operations financed from the Eighth, Ninth and Tenth EDFs without prejudice                        to existing legal commitments. This rule shall not apply to the Investment Facility.                  

### Article 61Commencement of contribution procedures

The procedure concerning Member States' contributions laid down in Articles 21 to 24 of this Regulation shall apply for the                        first time with regard to the contributions of the year 2016. Articles 57 to 61 of Regulation (EC) No 215/2008 shall continue                        to apply until then.’                  

1

OJ L 317, 15.12.2000, p. 3. Agreement as amended by the Agreement signed in Luxembourg on 25 June 2005 (OJ L 287, 28.10.2005, p. 4) and by the Agreement signed in Ouagadougou on 22 June 2010 (OJ L 287, 4.11.2010, p. 3).                           

2

OJ L 247, 9.9.2006, p. 32.                           

3

Council Decision No 2013/759/EU of 12 December 2013 regarding transitional EDF management measures from 1 January 2014 until                              the entry into force of the 11th European Development Fund (OJ L 335, 14.12.2013, p. 48).                           

4

Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development                              Fund (OJ L 78, 19.3.2008, p. 1).                           

5

Regulation (EU, 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 (OJ L 298, 26.10.2012, p. 1).                           

6

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                              (OJ L 362, 31.12.2012, p. 1).                           

7

Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European                              Union (“Overseas Association Decision”) (OJ L 344, 19.12.2013, p. 1).                           

8

Council Regulation (EC) No 617/2007 of 14 May 2007 on the implementation of the 10th European Development Fund under the ACP-EC                              Partnership Agreement (OJ L 152, 13.6.2007, p. 1).                           

9

Council Regulation (EEC, Euratom) No 1182/71 of 3 June 1971 determining the rules applicable to periods, dates and time limits                              (OJ L 124, 8.6.1971, p. 1).                           

10

Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with                              regard to the processing of personal data and on the free movement of such data (OJ L 281, 23.11.1995, p. 31).                           

11

Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals                              with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data                              (OJ L 8, 12.1.2001, p. 1).