1999R1267 — EN — 07.12.2001 — 001.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B COUNCIL REGULATION (EC)No 1267/1999
of 21 June 1999
establishing an Instrument for Structural Policies for Pre-accession
(OJ L 161, 26.6.1999, p. 73)
Amended by:
OfficialJournal
No page date
►M1 CouncilRegul ation (EC) No 2382/2001 of 4 December 2001 L 323 1 7.12.2001
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COUNCIL REGULATION (EC)No 1267/1999
of 21 June 1999
establishing an Instrument for Structural Policies for Pre-accession
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and
in particular Article 308 thereof,
Having regard to the proposalfrom the Commission (1),
Having regard to the opinion of the European Parliament (2),
Having regard to the opinion of the Economic and SocialCommittee (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-accessionstrategy for the applicant countries of central and eastern Europe,
and a specific pre-accession strategy for Cyprus;
(2) Whereas the conclusions of the Luxembourg European Council of12 and 13 December 1997 provide that the assistance provided for
in this Regulation is to be granted for the time being to the 10applicant countries of central and eastern Europe;
(3) Whereas CouncilRegul ation (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 ofAccession Partnerships (
5), provides that those partnerships are to
comprise a single framework for the priority areas and all
available resources for pre-accession assistance;
(4) Whereas the pre-accession strategy includes provision for anInstrument for StructuralPol icies for Pre-accession (ISPA), whichwill be directed towards aligning applicant countries on Commu-nity infrastructure standards and provide a financialcontributionfor environmentalmeasures, and transport infrastructure
measures;
(5) Whereas assistance from the Community under ISPA, together
with assistance from the Community under CouncilRegul ation(EEC) No 3906/89 of 18 December 1989 on economic aid to theRepublic of Hungary and the Polish People's Republic (
6), and
assistance from the Community under CouncilRegul ation (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-accession period (
7) is to be coordinated within the framework of
CouncilRegul ation (EC) No 1266/1999 of 21 June 1999 oncoordinating aid to the applicant countries in the framework of thepre-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 onAccession Partnerships;
(6) Whereas an equal balance should be the aim between financingfor transport infrastructure measures and financing for environ-mentalmeasures, taking into account the specific situations in thebeneficiary countries;1999R1267 — EN — 07.12.2001 — 001.001 — 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. Regulation as last amended by Regulation (EC)
No 753/96 (OJ L 103, 26.4.1996, p. 5).
(7) See page 87 of this OfficialJournal .
(8) See page 68 of this OfficialJournal .
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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 Decision No 1692/96/EC of the European Parliamentand of the Council of 23 July 1996 on Community guidelines forthe development of the trans-European transport network (
1)
describes the criteria for projects of common interest, whichshould 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 selecting
priority measures for developing a pan-European transportnetwork during the pre-accession period;
(10) Whereas provision should be made for the Commission to makean indicative allocation of the total resources from the Commu-nity under ISPA available for commitment between the applicantcountries in order to facilitate the preparation of measures;
(11) Whereas paragraph 17 of the conclusions of the LuxembourgEuropean Councilof 12 and 13 December 1997 provides that
financial support to the countries involved in the enlargement
process will be based, in the allocation of aid, on the principle ofequaltreatment, independentl y of time of accession, withparticular 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 of measures
to generate substantialnet 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 Communityassistance granted under ISPA, provision should be made foreffective methods of appraising, monitoring, evaluating andcontrolling operations, specifying the principle governing theevaluation, defining the nature of and the rules governing the
monitoring, and laying down the action to be taken in response to
irregularities or failures to comply with one of the conditions laiddown when assistance under ISPA was granted;
(15) Whereas, during the transitionalperiod from 1 January 1999 until31 December 2001, each reference made to the euro should as ageneral rule also be read as a reference to the euro as a monetaryunit as in Article 2, second sentence, of Council Regulation (EC)
No 974/98 of 3 May 1998 on the introduction of the euro (
2);
(16) Whereas for the purpose of the implementation of this Regulationthe Commission should be assisted by a management committee;
(17) Whereas the implementation of the measures provided for by thisRegulation will help to achieve the Community's aims; whereas
the Treaty does not provide, for the adoption of this Regulation,powers other than those of Article 308,1999R1267 — EN — 07.12.2001 — 001.001 — 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
Definition and objective
1. The Instrument for StructuralPol icies for Pre-accession, herein-
after referred to as ‘ISPA’ is hereby established.
ISPA shall provide assistance to contribute to the preparation for
accession 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‘beneficiary countries’, in the area of economic and socialcohesion,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 eachbeneficiary country and to corresponding nationalprogrammes for theimprovement of the environment and of transport infrastructure
networks.
Article 2
Eligible measures
1. The Community assistance financed under ISPA shall include
projects, stages of a project which are technically and financiallyindependent, 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 technicalstudies 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) environmentalmeasures enabl ing 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 objectivesof the Accession Partnerships; this includes interconnection andinteroperability 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 transportinfrastructure 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 totalcost of a measuremay be less than EUR 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) horizontalmeasures such as comparative studies to assess the
impact of Community assistance;
(ii) measures and studies which contribute to the appraisal,
monitoring, evaluation or control of projects and to strength-
ening 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 — 07.12.2001 — 001.001 — 4
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Article 3
Financial resources
Community assistance under ISPA shall be granted during the period
from 2000 to 2006.
The annualappropriations shal lbe authorised by the budgetary authority
within the limits of the financial perspectives.
Article 4
Indicative allocation
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
Compatibility with Community policies
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,particularly those concerning environmental protection and improve-
ment, 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 interregionalcooperation, the operations of the European Invest-ment Bank (EIB), including through its pre-accession facility as well asthe other financialinstruments 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
Regulation and the operations of the European Bank for Reconstruction
and Development (EBRD), the World Bank and other such financialinstitutions and inform the Committee established under Article 14hereof.
Article 6
Forms and rate of assistance
1. Community assistance under ISPA may take the form of non-
repayable direct assistance, repayable assistance or any other form of
assistance.
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 by
bodies whose activities are undertaken within an administrative or legal
framework by virtue of which they are regarded as equivalent to publicbodies. The Commission may decide, in accordance with the procedurelaid down in Article 14, to increase this rate to up to 85 %, in particularwhere it considers that a rate higher than 75 % is required for realisingprojects essentialfor achieving the generalobjectives of ISPA.1999R1267 — EN — 07.12.2001 — 001.001 — 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) an appropriate application of the polluter-pays principle.
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.
Totalexpenditure carried out at the Commission's initiative or on behal f
of the Commission pursuant to this paragraph may not exceed 2 % of thetotal allocation to ISPA.
Article 6a
Award of contracts
1. In the case of measures for which the Community is the sole
source of externalaid, participation in invitations to tender and contractsshall be open on equal terms to all natural and legal persons of theMember States and of the countries referred to in the second
subparagraph of Article 1(1).
2. Paragraph 1 shall also apply to co-financing.
In the case of co-financing, however, the participation of third countries
in invitations to tender and contracts may be authorised by the
Commission, after examination on a case-by-case basis.
Article 7
Appraisal and approval of measures
1. The Commission shall adopt decisions on the measures to be
financed under ISPA in accordance with the procedure laid down in
Article 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 anoverriding 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 particularthat there are medium-term economic and socialbenefits commen-
surate with the resources deployed.
4. On receipt of an application for assistance and before approving a
measure, the Commission shall carry out a thorough appraisal in order to
assess the measure's compliance with the criteria set out in Annex II.
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 implementationof the measures.
6. The combined assistance under ISPA and other Community aid for
a measure shall not exceed 90 % of the total expenditure relating to thatmeasure.1999R1267 — EN — 07.12.2001 — 001.001 — 6
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7. The Commission shall adopt common rules 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
financial institutions, expenditure meeting the rules for eligibility
referred to in paragraph 7 but carried out in accordance with proceduresappropriate to externalsources of financing other than Communityassistance and borne by those financialinstitutions may be used incalculating total eligible expenditure for that measure.
Article 8
Commitments and payments
1. The Commission shall implement expenditure under ISPA in
accordance with the Financial Regulation applicable to the generalbudget of the European Communities on the basis of the financing
memorandum to be drawn up between the Commission and the
beneficiary country.
However, annualbudgetary commitments in respect of assistance
granted to measures shall be carried out in one of the following two
ways:
(a) commitments in respect of the measures referred to in Article 2(2) to
be carried out over a period of two or more years shall, as a generalrule and subject to point (b), be effected in annual instalments.
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 the
initial or revised financing plan for the measure and in principle be
granted at the start of each financialyear and at the l atest by 1 Aprilof the year in question according to forecast expenditure for thisyear;
(b) for measures with a duration of less than two years or for which the
Community assistance does not exceed EUR 20 million a firstcommitment of up to 80 % of the assistance granted may take place
when the financing memorandum is drawn up. The remainder will
be committed subject to the state of the implementation of themeasure.
2. Except in duly justified cases, assistance granted to a measure
where substantialwork has not begun within the specified contractual
period shall be cancelled.
3. Payments of financialassistance 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 down in Article 14.
4. The details of the payment mechanism for measures shall be laid
down in the financing memorandum with each beneficiary country.
Article 9
Management and control
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 controlsystems which ensure:
(i) the proper implementation of the assistance granted under this
Regulation in accordance with the principles of sound financial
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;1999R1267 — EN — 07.12.2001 — 001.001 — 7
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(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 Commission and the Court of Auditors may, through their own staffor 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 andthe 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 part orthe 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
Use of the euro
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
Commission shall be expressed in euro.
3. Declarations of expenditure in support of the corresponding
payment applications shall be expressed in euro.
4. Payments of financialassistance by the Commission shal lbe made
in euro to the authority designated by the beneficiary country to receivesuch payments.
Article 11
Monitoring and ex-post evaluation
The beneficiary countries and the Commission shall ensure that the
implementation of measures under this Regulation is monitored andevaluated in accordance with the provisions in Annex IV.
Article 12
Annual report
The Commission shall present an annual report on Community
assistance granted under ISPA to the European Parliament, the Council,the Economic and SocialCommittee and the Committee of the Regions.
The annualreport shal lcontain 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 thatopinion has been taken into account.
The Commission shall ensure that the beneficiary countries are regularly
informed of the activities of ISPA.
Article 13
Information and publicity
1. The beneficiary countries responsible for implementing measures
for which the Community has granted financialassistance under ISPA1999R1267 — EN — 07.12.2001 — 001.001 — 8
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shall 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
Community in relation to the measures;
(b) making potentialbeneficiaries and professionalorganisations 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, and that
representatives of the Community institutions are duly involved in themost important public activities connected with Community assistancegranted 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 in
Article 14.
It shall inform the European Parliament thereof and shall publish them
in theOfficial Journal of the European Communities .
Article 14
Committee
1. The Commission shall be assisted by a committee, composed of
representatives of the Member States and chaired by the representative
of the Commission (hereinafter 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
Decision 1999/468/EC shall apply.
3. The period provided for in Article 4(3) of Decision 1999/468/EC
shall be set at one month.
4. The Committee may examine any question relating to the
implementation 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 of resources
On accession to the European Union, a country shall lose its entitlement
to support under this Regulation. Resources made available as a result of
an applicant country acceding to the European Union shall be
reallocated 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.
The Council, acting by qualified majority on a proposal from the
Commission, shall take a decision outlining the general approach for
reallocation.
In the light of the decision referred to in the second paragraph by the
Council, the Commission shall decide on the reallocation of availableresources among the other beneficiaries in accordance with theprocedure laid down in Article 14.
Article 16
Final and transitional provisions
The Council, acting on a proposal from the Commission, shall re-
examine this Regulation by 31 December 2006. It shall act on the1999R1267 — EN — 07.12.2001 — 001.001 — 9
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proposal in accordance with the procedure laid down in Article 308 of
the Treaty.
Article 17
Entry into force
This Regulation shall enter into force on the day following its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1999R1267 — EN — 07.12.2001 — 001.001 — 10
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ANNEX I
Content of applications (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
indication 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
employment to be quantified where they lend themselves to be quantified;
5. assessment of the environmentalimpact simil ar to the assessment provided
for in CouncilDirective 85/337/EEC of 27 June on the assessment of the
effects 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
maintenance of facilities;
10. (environmentalmeasures) information on the pl ace and priority of the
measure within the nationalenvironmentalstrategy as l aid down in the
nationalprogramme for the adoption of the acquis communautaire ;
11. (transport measures) information on the nationaltransport devel opment
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 — 07.12.2001 — 001.001 — 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
Appraisal of measures (Article 7(3)(b) and (4))
A. In appraising the measures, the following criteria are to be applied to ensure
their high quality in accordance 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 Accession Partnerships for the areas of
intervention;
4. the contribution which measures make to the implementation of
Community 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 appraisalof measures as necessary. The Commission is to examine
applications for assistance to verify in particular that the administrative and
financialmechanisms are adequate for the effective impl ementation 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 quantified
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 coordination of
measures of common interest situated on the same transport route, to make
this appraisalas effective as possibl e.1999R1267 — EN — 07.12.2001 — 001.001 — 12
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ANNEX III
Financial management and control (Article 9(5))
1. In each beneficiary country, a centralentity 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 controlsystems of beneficiary countries are to provide a
sufficient audit trail in order to allow, in particular, for:
— reconciliation of the summary accounts certified to the Commission with
the accounting records and supporting documents at the various
administrative levels,
— verification of the transfers of the available Community and other funds,
— examination of the technicaland financialpl ans 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,
in particular as regards the ex-ante approvalby the Commission of l aunching
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
financialmanagement and financialcontrolcapacity.
4. Appropriate internaland externalfinancialcontrol s are to be carried out in
accordance with internationally accepted audit standards by the competent
nationalfinancialcontrolauthority, 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 disposalof 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
beneficiary 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 documents
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 appropriate
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 cancelassistance 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 assistance,
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 — 07.12.2001 — 001.001 — 13
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Where the Commission considers that an irregularity has not been corrected or
that all or part of an operation does not 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 cancelany advance;
(b) cancelal lor 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 management
and controlsystems. Any sum to be recovered for grant of undue entitl ement 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 — 07.12.2001 — 001.001 — 14
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ANNEX IV
Monitoring and ex-post evaluation (Article 11)
A. Monitoring is to be carried out by means of jointly agreed reporting
procedures, sample checks and the establishment of ad hoc committees. It is
to be carried out by reference to physicaland financialindicators. The
indicators will relate to the specific character of the project and its objectives.
They will be arranged in such a way as to show the stage reached in the
measure in relation to the plan and objectives originally laid down and theprogress achieved 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 on such
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 beneficiary
countries.
The Commission will define the appropriate arrangements for these
adjustments 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 Commission within six months of completion of the measure or stage of
project. The final report will contain the following:
1. a description of the work undertaken, accompanied by physicalindicators,
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
environment and their cost.
4. information relating to publicity actions.
F.Ex-post evaluation is to cover the utilisation of resources and the effectiveness
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 been carried out.
The evaluation will also cover the actual impact of their implementation in
order to assess whether the originalobjectives have been achieved. This
evaluation will, 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.
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 — 07.12.2001 — 001.001 — 15
▼B
ANNEX V
Annual report from the Commission (Article 12)
The annual report is to provide information on the following:
1. financialassistance committed and paid by the Community under ISPA with
an annualbreakdown by beneficiary country by type of project (environment
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 environmental
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 financialinstruments of the
Community;
5. the investment efforts of the beneficiary countries in the fields of
environmentalprotection and transport infrastructure;
6. the preparatory studies and technicalsupport 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 judicialproceedings in progress;
10. information on publicity actions.1999R1267 — EN — 07.12.2001 — 001.001 — 16