1999R1267 — EN — 30.04.2004 — 003.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCILREGULATION(EC)No1267/1999
of21June1999
establishinganInstrumentforStructuralPolicies forPre-accession
(OJ L 161, 26.6.1999, p. 73)
Amended by:
Official Journal
No page date
►M1Council Regulation (EC) No 2382/2001 of 4 December 2001 L 323 1 7.12.2001
►M2Council Regulation (EC) No 2500/2001 of 17 December 2001 L 342 1 27.12.2001
►M3Council Regulation (EC) No 769/2004 of 21 April 2004 L 123 1 27.4.2004
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COUNCILREGULATION(EC)No1267/1999
of21June1999
establishinganInstrumentforStructuralPoliciesforPre-accession
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
inparticular Article 308 thereof,
Having regard to the proposal from the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and Social
Committee (3),
Having regard to the opinion of the Committee of the Regions (4),
(1)Whereas the conclusions of the Luxembourg European Council
of 12 and 13 December 1997 provide for an enhanced pre-acces-sion strategy for the applicant countries of central and easternEurope, and a specific pre-accession strategy for Cyprus;
(2)Whereas the conclusions of the Luxembourg European Councilof 12 and 13 December 1997 provide that the assistance
provided for inthis Regulationis to be gran ted for the time
being to the 10 applicant countries of central and eastern Europe;
(3)Whereas Council Regulation (EC) No 622/98 of 16 March 1998on assistance to the applicant States in the framework of the pre-accession strategy, and in particular on the establishment ofAccessionPartn erships(
5), provides that those partnerships are
to comprise a single framework for the priority areas and all
available resources for pre-accessionassistan ce;
(4)Whereas the pre-accessionstrategy in cludes provisionfor an
Instrument for Structural Policies for Pre-accession (ISPA),which will be directed towards aligning applicant countries onCommunity infrastructure standards and provide a financialcontribution for environmental measures, and transport infra-structure measures;
(5)Whereas assistance from the Community under ISPA, together
with assistance from the Community under Council Regulation
(EEC) No 3906/89 of 18 December 1989 onecon omic aid tothe Republic of Hungary and the Polish People's Republic (
6),
and assistance from the Community under Council Regulation(EC) No 1268/1999 of 21 June 1999 on Community support for
pre-accession measures for agricultural and rural development in
the applicant countries of central and eastern Europe in the pre-accessionperiod (
7) is to be coordinated within the framework of
Council Regulation (EC) No 1266/1999 of 21 June 1999 oncoordinating aid to the applicant countries in the framework ofthe pre-accession strategy and amending Regulation (EEC)
No 3906/89 (
8) and to be subject to the conditionality provisions
of Regulation (EC) No 622/98 and of the individual decisions onAccessionPartn erships;
(6)Whereas an equal balance should be the aim between financingfor transport infrastructure measures and financing for environ-mental measures, taking into account the specific situations inthe beneficiary countries;1999R1267 — EN — 30.04.2004 — 003.001 — 2
(1) OJ C 164, 29.5.1998, p. 4.
(2) Opinion delivered on 6 May 1999 (not yet published in the Official Journal).
(3) OJ C 407, 28.12.1998.
(4) OJ C 373, 2.12.1998.
(5) OJ L 85, 20.3.1998, p. 1.
(6) OJ L 375, 23.12.1989, p. 11. Regulationas last amen ded by Regulation
(EC) No 753/96 (OJ L 103, 26.4.1996, p. 5).
(7) See page 87 of this Official Journal.
(8) See page 68 of this Official Journal.
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(7)Whereas the Community assistance under ISPA should facilitate
the implementation by the applicant countries of the acquis
communautaire in the field of the environment and contribute
to sustainable development in these countries;
(8)Whereas DecisionNo 1692/96/EC of the EuropeanParliamen tand of the Council of 23 July 1996 on Community guidelinesfor the development of the trans-European transport network (
1)
describes the criteria for projects of commonin terest, which
should be used, where appropriate, for selecting the measures
eligible under this Regulation;
(9)Whereas the Transport Infrastructure Needs Assessment (TINA)initiated by the Council should facilitate the process of selectingpriority measures for developing a pan-European transportnetwork during the pre-accession period;
(10)Whereas provisionshould be made for the Commissionto makeanin dicative allocationof the total resources from the Commu-
nity under ISPA available for commitment between the applicant
countries in order to facilitate the preparation of measures;
(11)Whereas paragraph 17 of the conclusions of the LuxembourgEuropean Council of 12 and 13 December 1997 provides thatfinancial support to the countries involved in the enlargementprocess will be based, inthe allocationof aid, onthe prin cipleof equal treatment, independently of time of accession, with
particular attention being paid to countries with the greatest
need;
(12)Whereas the rates of assistance provided from the Communityunder ISPA should be set in order to strengthen the leverageeffect of resources, promote co-financing and the use of privatesources of finance and to take account of the capacity ofmeasures to generate substantial net revenue;
(13)Whereas, as regards Community assistance, maximum transpar-
ency must be ensured in the implementation of financial
assistance, and stringent controls must be applied to the use ofappropriations;
(14)Whereas, in the interest of the proper management of Commu-nity assistance granted under ISPA, provision should be madefor effective methods of appraising, monitoring, evaluating and
controlling operations, specifying the principle governing the
evaluation, defining the nature of and the rules governing themonitoring, and laying down the action to be taken in responseto irregularities or failures to comply with one of the conditionslaid down when assistance under ISPA was granted;
(15)Whereas, during the transitional period from 1 January 1999until 31 December 2001, each reference made to the euro should
as a general rule also be read as a reference to the euro as a
monetary unit as in Article 2, second sentence, of Council Regu-lation(EC) No 974/98 of 3 May 1998 onthe in troductionofthe euro (
2);
(16)Whereas for the purpose of the implementation of this Regula-tion the Commission should be assisted by a managementcommittee;
(17)Whereas the implementation of the measures provided for by
this Regulationwill help to achieve the Commun ity's aims;
whereas the Treaty does not provide, for the adoption of thisRegulation, powers other than those of Article 308,1999R1267 — EN — 30.04.2004 — 003.001 — 3
(1) OJ L 228, 9.9.1996, p. 1.
(2) OJ L 139, 11.5.1998, p. 1.
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HAS ADOPTED THIS REGULATION:
Article 1
Definitionandobjective
1. The Instrument for Structural Policies for Pre-accession, herein-
after referred to as ‘ISPA’ is hereby established.
ISPA shall provide assistance to contribute to the preparation for acces-
sion to the European Union of the following applicant countries:
Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland,
Romania, Slovakia and Slovenia, hereinafter referred to as the ‘benefi-ciary countries’, in the area of economic and social cohesion,concerning environment and transport policies in accordance with theprovisions of this Regulation.
2. The Community assistance granted under ISPA shall contribute to
the objectives laid down in the Accession Partnership for each benefi-ciary country and to corresponding national programmes for theimprovement of the environment and of transport infrastructure
networks.
Article 2
Eligiblemeasures
1. The Community assistance financed under ISPA shall include
projects, stages of a project which are technically and financially inde-pendent, groups of projects or project schemes in the field of
environment or transport, hereinafter referred to collectively as
‘measures’. A stage of a project may also cover preliminary, feasibilityand technical studies needed for carrying out a project.
2. The Community shall provide assistance under ISPA in the light
of the objectives mentioned in Article 1 for the following:
(a) environmental measures enabling the beneficiary countries to
comply with the requirements of Community environmental law
and with the objectives of the Accession Partnerships;
(b) transport infrastructure measures which promote sustainable mobi-
lity, and in particular those that constitute projects of common
interest based on the criteria of Decision No 1692/96/EC and thosewhich enable the beneficiary countries to comply with the objec-tives of the Accession Partnerships; this includes interconnectionand interoperability of national networks as well as with the trans-
European networks together with access to such networks.
Measures shall be of a sufficient scale to have a significant impact in
the field of environmental protection or in the improvement of trans-port infrastructure networks. The total cost of each measure shall in
principle not be less than EUR 5 million. In duly justified cases, taking
into account the specific circumstances concerned, the total cost of ameasure may be less thanEUR 5 million .
3. A balance shall be struck between measures in the field of the
environment and measures relating to transport infrastructure.
4. Assistance may also be granted for:
(a) preliminary studies related to eligible measures, including those
necessary for their implementation, and
(b) technical support measures, including information and publicity
actions, particularly:
(i) horizontal measures such as comparative studies to assess the
impact of Community assistance;
(ii) measures and studies which contribute to the appraisal, moni-
toring, evaluation or control of projects and to strengthening
and ensuring the coordination and consistency of projectswith the Accession Partnerships, and
(iii) measures and studies to ensure effective project management
and implementation and to make any necessary adjustments.1999R1267 — EN — 30.04.2004 — 003.001 — 4
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Article 3
Financialresources
Community assistance under ISPA shall be granted during the period
from 2000 to 2006.
The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial perspectives.
Article 4
Indicativeallocation
An indicative allocation between beneficiary countries of the total
Community assistance under ISPA shall be made by the Commission,acting in accordance with the procedure laid down in Article 14, on thebasis of the criteria of population, per capita GDP in purchasing powerparities and surface area.
This allocation may be adjusted to take account of the performance in
previous years of each of the beneficiary countries in implementingISPA measures. Due account shall also be taken of the countries'
respective deficiencies in environment and transport infrastructure.
Article 5
CompatibilitywithCommunitypolicies
1. Measures financed by the Community under ISPA shall comply
with the provisions set out in the Europe Agreements, including theimplementing rules for the application of the provisions on State aids,and shall contribute to the achievement of Community policies, parti-cularly those concerning environmental protection and improvement,
transport and trans-European networks.
2. The Commission shall ensure coordination and consistency
between measures undertaken pursuant to this Regulation and measures
undertaken with contributions from the Community budget, including
contributions from Community initiatives for cross-border transnationaland interregional cooperation, the operations of the European Invest-ment Bank (EIB), including through its pre-accession facility as wellas the other financial instruments of the Community and inform the
Committee established under Article 14 hereof.
3. The Commission shall seek coordination and consistency between
measures undertaken in the beneficiary countries pursuant to this Regu-
lation and the operations of the European Bank for Reconstruction and
Development (EBRD), the World Bank and other such financial institu-tions and inform the Committee established under Article 14 hereof.
Article 6
Formsandrateofassistance
1. Community assistance under ISPA may take the form of non-
repayable direct assistance, repayable assistance or any other form ofassistance.
Assistance repaid to the managing authority or to another public
authority shall be reapplied for the same purpose.
2. The rate of Community assistance granted under ISPA may be up
to 75 % of public or equivalent expenditure, including expenditure bybodies whose activities are undertaken within an administrative or legal
framework by virtue of which they are regarded as equivalent to public
bodies. The Commissionmay decide, inaccordan ce with the procedurelaid downinArticle 14, to in crease this rate to up to 85 %, inparti-cular where it considers that a rate higher than 75 % is required forrealising projects essential for achieving the general objectives ofISPA.1999R1267 — EN — 30.04.2004 — 003.001 — 5
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Save in the case of repayable assistance or when there is a substantial
Community interest, the rate of assistance shall be reduced to take intoaccount:
(a) the availability of co-financing;
(b) the measure's capacity to generate revenues, and
(c) anappropriate applicationof the polluter-pays prin ciple.
3. Measures which generate revenues in accordance with
paragraph 2(b) shall be those concerning:
(a) infrastructure the use of which involves fees borne by users;
(b) productive investments in the environment sector.
4. Preliminary studies and technical support measure, may be
financed exceptionally at 100 % of the total cost.
Total expenditure carried out at the Commission's initiative or on
behalf of the Commission pursuant to this paragraph may not exceed
2 % of the total allocationto ISPA.
Article 6a
Awardofcontracts
1. Inthe case of measures for which the Commun ity is the sole
source of external aid, participation in invitations to tender andcontracts shall be open on equal terms to all natural and legal personsof the Member States coming within the scope of the Treaties and ofthe countries referred to in the second subparagraph of Article 1(1), as
well as of countries benefiting from assistance pursuant to Council
Regulation(EC) No 2666/2000 of 5 December 2000 onassistan ce forAlbania, Bosnia and Herzegovina, Croatia, the Federal Republic ofYugoslavia and the former Yugoslav Republic of Macedonia (
1).
2. Paragraph 1 shall also apply to co-financing.
In the case of co-financing, however, the participation of third coun-
tries in invitations to tender and contracts may be authorised by theCommission, after examination on a case-by-case basis.
Article 7
Appraisalandapprovalofmeasures
1. The Commissionshall adopt decision s onthe measures to be
financed under ISPA in accordance with the procedure laid down inArticle 14.
2. The beneficiary countries shall submit applications for assistance
to the Commission. However, the Commission may grant assistance
pursuant to Article 2(4) on its own initiative, where there is an over-riding Community interest.
3. Applications shall contain:
(a) the information set out in Annex I;
(b) all relevant information proving that the measures comply with this
Regulation and with the criteria set out in Annex II, and in parti-cular that there are medium-term economic and social benefitscommensurate with the resources deployed.
4. On receipt of an application for assistance and before approving a
measure, the Commissionshall carry out a thorough appraisal inorderto assess the measure's compliance with the criteria set out in Annex II.1999R1267 — EN — 30.04.2004 — 003.001 — 6
(1) OJ L 306, 7.12.2000, p. 1. Regulationas amen ded by Regulation(EC) No
2415/2001 (OJ L 327, 13.12.2001, p. 3).▼M1
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5. Commission decisions approving measures shall determine the
amount of financial assistance and lay down a financing plan togetherwith all the provisions and conditions necessary for the implementation
of the measures.
6. The combined assistance under ISPA and other Community aid
for a measure shall not exceed 90 % of the total expenditure relatingto that measure.
7. The Commissionshall adopt commonrules for the eligibility of
expenditure in accordance with the procedure laid down in Article 14.
8. Where a measure is co-financed together with international finan-
cial institutions, expenditure meeting the rules for eligibility referred to
inparagraph 7 but carried out inaccordan ce with procedures appro-
priate to external sources of financing other than Communityassistance and borne by those financial institutions may be used incalculating total eligible expenditure for that measure.
9. Natural and legal persons from Cyprus, Malta and Turkey may
participate in invitations to tender and contracts on the same termsthat apply to all natural and legal persons from the Member Statesand the beneficiary countries.
Article 8
Commitmentsandpayments
1. The Commission shall implement expenditure under ISPA in
accordance with the Financial Regulation applicable to the general
budget of the European Communities on the basis of the financing
memorandum to be drawn up between the Commission and the benefi-ciary country.
However, annual budgetary commitments in respect of assistance
granted to measures shall be carried out in one of the following twoways:
(a) commitmen ts inrespect of the measures referred to inArticle 2(2)
to be carried out over a period of two or more years shall, as ageneral rule and subject to point (b), be effected in annual instal-ments.
The commitments in respect of the first annual instalment shall be
made when the financing memorandum is drawn up. Commitmentsin respect of subsequent annual instalments shall be based on theinitial or revised financing plan for the measure and in principle
be granted at the start of each financial year and at the latest by
1 April of the year in question according to forecast expenditurefor this year;
(b) for measures with a durationof less thantwo years or for which
the Community assistance does not exceed EUR 20 million a firstcommitment of up to 80 % of the assistance granted may takeplace when the financing memorandum is drawn up. The remainderwill be committed subject to the state of the implementation of themeasure.
2. Except in duly justified cases, assistance granted to a measure
where substantial work has not begun within the specified contractualperiod shall be cancelled.
3. Payments of financial assistance for measures may take the form
either of advances or of intermediate payments or payments of balances
in respect of expenditure certified and actually paid.
The Commission shall adopt detailed rules on payments in accordance
with the procedure laid downinArticle 14.
4. The details of the payment mechanism for measures shall be laid
down in the financing memorandum with each beneficiary country.1999R1267 — EN — 30.04.2004 — 003.001 — 7
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Article 9
Managementandcontrol
1. The Commission shall require the beneficiary countries:
(a) to establish as from 1 January 2000 and in any event not later than
1 January 2002, management and control systems which ensure:
(i) the proper implementation of the assistance granted under this
Regulation in accordance with the principles of sound finan-
cial management,
(ii) the separation of the functions of management and control,
(iii) that expenditure declarations presented to the Commission are
accurate and emanate from accounting systems based onsupporting documents which are open to verification;
(b) to verify on a regular basis that the measures financed by the
Community have been properly carried out;
(c) to prevent irregularities and take action against them;
(d) to recover any amounts lost as a result of irregularity or negligence.
2. Without prejudice to checks carried out by beneficiary countries,
the Commissionan d the Court of Auditors may, through their ownstaff
or duly authorised representatives, carry out on-the-spot technical orfinancial audits, including sample checks and final audits.
3. The detailed implementing provisions of the principles established
in paragraphs 1 and 2 shall be contained in the financing memorandum,together with arrangements for cooperation and for coordination ofprogramming and methodology of control between the Commission
and the beneficiary country. The Commission shall inform the
Committee established under Article 14 hereof.
4. The financing memorandum shall also contain provisions
concerning the reduction, suspension and cancellation of assistancewhere the implementation of a measure does not justify either a partor the whole of the assistance allocated.
5. In implementing this Regulation, the Commission shall ensure
that the principles of sound financial management are adhered to, withparticular reference to the elements set out in Annex III.
Article 10
Useoftheeuro
1. The amounts in the applications for assistance, together with the
relevant financing plan, shall be expressed in euro.
2. The amounts of assistance and the financing plans approved by
the Commissionshall be expressed ineuro.
3. Declarations of expenditure in support of the corresponding
payment applications shall be expressed in euro.
4. Payments of financial assistance by the Commission shall be
made in euro to the authority designated by the beneficiary country to
receive such payments.
Article 11
Monitoringand ex-postevaluation
The beneficiary countries and the Commission shall ensure that the
implementation of measures under this Regulation is monitored and
evaluated in accordance with the provisions in Annex IV.
Article 12
Annualreport
The Commission shall present an annual report on Community assis-
tance granted under ISPA to the European Parliament, the Council,the Economic and Social Committee and the Committee of the1999R1267 — EN — 30.04.2004 — 003.001 — 8
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Regions. The annual report shall contain the information set out in
Annex V.
The European Parliament shall deliver an opinion on the report within
three months. The Commission shall report on the manner in which
that opinion has been taken into account.
The Commission shall ensure that the beneficiary countries are regu-
larly informed of the activities of ISPA.
Article 13
Informationandpublicity
1. The beneficiary countries responsible for implementing measures
for which the Community has granted financial assistance under ISPAshall ensure that adequate publicity is given to the measure with a view
to:
(a) making the general public aware of the role played by the Commu-
nity in relation to the measures;
(b) making potential beneficiaries and professional organisations aware
of the possibilities afforded by the measures.
Beneficiary countries shall ensure, in particular, that directly visible
display panels are erected showing that the measures are being co-financed by the Community, together with the Community logo, andthat representatives of the Community institutions are duly involved inthe most important public activities connected with Community assis-tance granted under ISPA.
They shall inform the Commission annually of the initiatives taken
under this paragraph.
2. The Commission shall adopt detailed rules on information and
publicity acting in accordance with the procedure laid down inArticle 14.
It shall inform the European Parliament thereof and shall publish them
intheOfficial Journal of the European Communities .
Article 14
Committee
1. The Commissionshall be assisted by a committee, composed of
representatives of the Member States and chaired by the representativeof the Commission(herein after referred to as ‘the Committee’). TheEuropean Investment Bank shall appoint a non-voting representative.
2. Where reference is made to this paragraph, Articles 4 and 7 of
Decision1999/468/EC shall apply.
3. The period provided for inArticle 4(3) of Decision1999/468/EC
shall be set at one month.
4. The Committee may examine any question relating to the imple-
mentation of this Regulation which is put to it by its Chairman,including at the request of the representative of a Member State.
5. The Committee shall adopt its rules of procedure by a qualified
majority.
Article 15
Reallocation ofresources
On accession to the European Union, a country shall lose its entitle-
ment to support under this Regulation. Resources made available as aresult of an applicant country acceding to the European Union shall bereallocated to other applicant countries listed in Article 1(1). Realloca-tion shall be based on applicant countries' need and capacity forabsorbing assistance and on the criteria laid down in Article 4.1999R1267 — EN — 30.04.2004 — 003.001 — 9
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The Council, acting by qualified majority on a proposal from the
Commission, shall take a decision outlining the general approach forreallocation.
Inthe light of the decisionreferred to inthe secon d paragraph by the
Council, the Commission shall decide on the reallocation of availableresources among the other beneficiaries in accordance with the proce-dure laid downinArticle 14.
Article 16
Finalandtransitionalprovisions
The Council, acting on a proposal from the Commission, shall re-
examine this Regulation by 31 December 2006. It shall act on theproposal inaccordan ce with the procedure laid downinArticle 308 ofthe Treaty.
Article 17
Entryintoforce
This Regulation shall enter into force on the day following its publica-
tioninthe Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
inall Member States.1999R1267 — EN — 30.04.2004 — 003.001 — 10
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ANNEX I
Contentofapplications(Article 7(3)(a))
Applications are to contain the following information:
1. the name of the body responsible for implementation, the nature of the
measure and a description thereof;
2. the cost and location of the measure, including, where applicable, an indica-
tion of the inter-connection and interoperability of measures situated on the
same transport axis;
3. the timetable for implementation of the work;
4. a cost-benefit analysis, including the direct and indirect effects on employ-
ment to be quantified where they lend themselves to be quantified;
5. assessment of the environmental impact similar to the assessment provided
for in Council Directive 85/337/EEC of 27 June on the assessment of theeffects of certain public and private projects on the environment (
1);
6. information on compliance with competition law and public contract rules;7. the financing plan including, where possible, information on the economic
viability of the measure, and the total financing the beneficiary country is
seeking from ISPA, the EIB including its pre-accession facility and any
other Community or Member State source, the EBRD and the World Bank;
8. the compatibility of measures with Community policies;9. information on the arrangements for ensuring the efficient use and mainte-
nance of facilities;
10. (environmental measures) information on the place and priority of the
measure within the national environmental strategy as laid down in the
national programme for the adoption of the acquis communautaire ;
11. (transport measures) information on the national transport development
strategy and the place and priority of the measures within that strategy,
including the degree of coherence with the guidelines for the trans-European
networks and the pan-European transport policy.1999R1267 — EN — 30.04.2004 — 003.001 — 11
(1) OJ L 175, 5.7.1985, p. 40. Directive as amended by Directive 97/11/EC (OJ L 73,
14.3.1997, p. 5).
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ANNEX II
Appraisalofmeasures(Article 7(3)(b)and(4))
A. In appraising the measures, the following criteria are to be applied to ensure
their high quality inaccordan ce with Article 2:
1. their economic and social benefits, including their potential for leverage
of private financing, which will be commensurate with the resources
deployed; an assessment will be made in the light of a cost-benefit
analysis;
2. the arrangements for ensuring effective management of the measures;
3. the priorities established by the AccessionPartn erships for the areas of
intervention;
4. the contribution which measures make to the implementation of Commu-
nity policy on the environment and the result of the environmental impact
assessment referred to in Annex I;
5. the contribution of measures to trans-European networks and common
transport policies;
6. the establishment of an appropriate balance between the fields of the
environment and transport infrastructure;
7. consideration of possible alternative forms of financing as referred to in
Article 6.
B. The Commission may invite the EIB, EBRD or World Bank to contribute to
the appraisal of measures as necessary. The Commission is to examine appli-
cations for assistance to verify in particular that the administrative and
financial mechanisms are adequate for the effective implementation of the
measure.
C. The Commission is to appraise measures to determine their anticipated
impact in terms of the objectives of this Regulation, using appropriate quan-
tified indicators. The beneficiary countries are to provide all necessary
information, as set out in Annex I, including the results of their feasibility
studies and appraisals, an indication of alternatives not pursued and the coor-
dination of measures of common interest situated on the same transport
route, to make this appraisal as effective as possible.1999R1267 — EN — 30.04.2004 — 003.001 — 12
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ANNEX III
Financialmanagementandcontrol(Article9(5))
1. In each beneficiary country, a central entity is to be designated through
which Community funds granted under ISPA is to be channelled.
The head of this entity is to have overall responsibility for the management
of the funds within the beneficiary country in question.
2. Management and control systems of beneficiary countries are to provide a
sufficien t audit trail inorder to allow, inparticular, for:
— reconciliation of the summary accounts certified to the Commission with
the accounting records and supporting documents at the various adminis-
trative levels,
— verification of the transfers of the available Community and other funds,
— examination of the technical and financial plans of the project, progress
reports, tendering and contracting procedures at the various administrative
levels.
3. The procedure to be followed for the award of works, supply or service
contracts are to be specified in the financing memorandum and are to respect
the key principles laid down in Title IX of the Financial Regulation and in
particular:
— measures covered by a financing memorandum are to be implemented by
the beneficiary country in close collaboration with the Commission,
which will retain responsibility for the utilisation of appropriations,
— the Commission in close collaboration with the beneficiary country, is to
ensure that participants in tendering procedures can compete on an equal
footing, that there is no discrimination and that the tender selected is
economically the most advantageous.
However, pursuant to Article 12 of Council Regulation (EC) No 1266/1999,
the appropriations may be the subject of extended decentralised management,
inparticular as regards the ex-anteapproval by the Commission of launching
of tenders, the evaluation of bids and the award of contracts and financial
management.
These provisions, to be established in the financing memorandum with the
beneficiary country, are to take account of their quantitative and qualitative
financial management and financial control capacity.
4. Appropriate internal and external financial controls are to be carried out in
accordance with internationally accepted audit standards by the competent
national financial control authority, which must be independent in order to
perform this function. Each year an audit plan and a summary of the findings
of the audits carried out is to be sent to the Commission. Audit reports will
be at the disposal of the Commission.
The Commission and the beneficiary country are to cooperate in order to
coordinate programmes and methods relating to audits, so as to maximise
the usefulness of those carried out.
The beneficiary country is to ensure that when checks are performed by
Commission staff, or its duly authorised representatives, these persons have
the right to inspect on-the-spot all relevant documentation and accounts
pertaining to items financed under the financing memorandum. The benefi-
ciary countries are to assist the Court of Auditors to carry out audits
relating to the utilisation of funds granted under ISPA.
The responsible authorities are to keep available all the supporting docu-
ments regarding expenditure on any project for a period of five years
following the last payment in respect of a project.
5. The financing memorandum with each beneficiary country is to contain the
following provisions for financial corrections:
If the implementation of a measure appears not to justify either a part or the
whole of the assistance allocated, the Commission is to conduct an appro-
priate examination of the case, in particular requesting the beneficiary
country to submit its comments within a specified period of time and to
correct any irregularity.
Following the examination referred to in paragraph 1, the Commission may
reduce, suspend or cancel assistance in respect of the measures concerned if
the examination reveals irregularity, an improper combination of funds or afailure to comply with one of the conditions in the decision to grant assis-
tance, and in particular any significant change affecting the nature or
conditions of implementation of the measure for which the Commission's
approval has not been sought. Any reduction or cancellation of the assistance
is to give rise to recovery of the sums paid.1999R1267 — EN — 30.04.2004 — 003.001 — 13
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Where the Commission considers that an irregularity has not been corrected
or that all or part of anoperationdoes n ot justify either all or part of the
assistance granted to it, the Commission is to conduct a suitable examination
of the case and request the beneficiary country to submit its comments within
a specified period. After the examination, if no corrective measures have
been undertaken by the beneficiary country, the Commission may:
(a) reduce or cancel any advance;
(b) cancel all or part of the assistance granted to the measure.The Commission is to determine the size of a correction taking into account
the nature of the irregularity and the extent of any failures in the manage-
ment and control systems. Any sum to be recovered for grant of undue
entitlement is to be repaid to the Commission. To such a sum is to be added
interest on account of late repayment in accordance with arrangements to be
adopted by the Commission.1999R1267 — EN — 30.04.2004 — 003.001 — 14
▼B
ANNEX IV
Monitoringandex-postevaluation(Article 11)
A. Monitoring is to be carried out by means of jointly agreed reporting proce-
dures, sample checks and the establishment of ad hoccommittees. It is to be
carried out by reference to physical and financial indicators. The indicators
will relate to the specific character of the project and its objectives. They
will be arran ged insuch a way as to show the stage reached inthe measure
in relation to the plan and objectives originally laid down and the progressachieved on the management side and any related problems.
B. These committees are to be set up by arrangement between the beneficiary
country concerned and the Commission. The authorities or bodies designated
by the beneficiary country, the Commission and where appropriate, the EIB
will be represented on the committees. Where regional and local authorities
and private enterprises are competent for the execution of a project and
where they are directly concerned by a project they will also be represented
onsuch committees.
C. For each measure, the authority or body responsible for the measure is to
submit progress reports to the Commission within three months of the end
of each full year of implementation.
D. On the basis of the results of monitoring and taking account of the
comments of the monitoring committee, the Commission is to adjust the
amounts and conditions for granting assistance as initially approved, as
well as the financing plan envisaged, if necessary on a proposal by the bene-
ficiary countries.
The Commission will define the appropriate arrangements for these adjust-
ments differentiating them according to their nature and importance.
E. The authority or body responsible for the measure is to submit a final report
to the Commissionwithinsix mon ths of completionof the measure or stage
of project. The final report will contain the following:
1. a description of the work undertaken, accompanied by physical indicators,
quantification of expenditure by category of work and the measures taken
with regard to the specific clauses contained in the decision to grant
assistance;
2. certification of the conformity of the work with the decision granting
assistance;
3. a first assessment of the extent to which the expected results have been
achieved, including notably:
(a) the effective date of implementation of the measure;
(b) an indication of the wax in which the measure will be managed once
completed;
(c) confirmation, if appropriate, of financial forecasts, especially as
regards operating costs and expected revenues;
(d) confirmation of the socioeconomic forecast, especially the expected
costs and benefits;
(e) an indication of the actions taken to ensure protection of the environ-
ment and their cost.
4. information relating to publicity actions.
F.Ex-postevaluationis to cover the utilisationof resources an d the effective-
ness and efficiency of assistance and its impact. It is to cover the factors
contributing to the success or failure of implementation of measures and
the achievements and results. After the completion of measures, the
Commission and the beneficiary countries will therefore evaluate the
manner, including the efficient and effective use of resources, in which
they have beencarried out. The evaluationwill also cover the actual impact
of their implementation in order to assess whether the original objectives
have beenachieved. This evaluationwill, inter alia , address the contribution
made by measures to the implementation of Community policies on the
environment or to the contribution of trans-European networks and common
transport policies, and they will also assess the environmental impact of the
measures.1999R1267 — EN — 30.04.2004 — 003.001 — 15
▼B
G. For the greater effectiveness of Community assistance granted under ISPA,
the Commission is to ensure that in administering ISPA particular attention
is paid to transparency of management.
H. The detailed rules for monitoring and evaluation are to be laid down in the
Commission decisions approving the measures.1999R1267 — EN — 30.04.2004 — 003.001 — 16
▼B
ANNEX V
AnnualreportfromtheCommission(Article 12)
The annual report is to provide information on the following:
1. financial assistance committed and paid by the Community under ISPA with
an annual breakdown by beneficiary country by type of project (environ-
ment or transport);
2. the contribution which the Community assistance under ISPA made to the
efforts of the beneficiary countries to implement Community environment
policy and to strengthen trans-European transport infrastructure networks;
the balance between measures in the field of the environment and measures
relating to transport infrastructure;
3. assessment of the compatibility of operations of Community assistance
under ISPA with Community policies, including those concerning environ-
mental protection, transport, competition and the award of public contracts;
4. the measures taken to ensure coordination and consistency between
measures financed through ISPA and measures financed with contribution
from the Community budget, the EIB and the other financial instruments
of the Community;
5. the investment efforts of the beneficiary countries in the fields of environ-
mental protection and transport infrastructure;
6. the preparatory studies and technical support measures financed;
7. the results of appraisal, monitoring and evaluation of measures, including
information on any adjustment of measures to accord with the results of
appraisal, monitoring and evaluation;
8. the contribution of the EIB to the evaluation of measures;9. summary of information on the results of checks carried out, irregularities
found and administrative and judicial proceedings in progress;
10. information on publicity actions.1999R1267 — EN — 30.04.2004 — 003.001 — 17