Decision No 4/2001 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part

of 26 April 2001

adopting the terms and conditions for the participation of the Republic of Estonia in the Financial Instrument for the Environment (LIFE)

(2001/454/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part(1), signed in Luxembourg on 12 June 1995, and in particular Article 108 thereof,

Whereas:

(1) According to Article 108 of the Europe Agreement and Annex X thereto, Estonia may participate in Community framework programmes, specific programmes, projects or other actions notably in the field of environment.

(2) According to the same Article, the terms and conditions for Estonia's participation in these activities shall be decided by the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

As from 1 January 2001, Estonia shall participate in the Financial Instrument for the Environment (hereinafter called LIFE) according to the terms and conditions set out in Annexes I and II which shall form an integral part of this Decision.

Article 2

This Decision shall apply for the duration of the LIFE third phase, starting from 1 January 2001.

Article 3

Proposals submitted to the Commission by Estonia before 31 October 2000 for LIFE Nature and before 30 November 2000 for LIFE Environment shall be eligible for evaluation.

Article 4

This Decision shall enter into force on the day of its adoption.

Done at Brussels, 26 April 2001.

For the Association Council

The President

T. H. Ilves

(1) OJ L 68, 9.3.1998, p. 3.

ANNEX I

Terms and conditions for the participation of Estonia in the Financial Instrument for the Environment (LIFE)

1. Estonia will participate in all actions of LIFE in accordance with the objectives, criteria, procedures and deadlines laid down in Regulation (EC) No 1655/2000 of the European Parliament and of the Council of 17 July 2000 concerning the Financial Instrument for the Environment (LIFE)(1).

2. To participate in the programme, Estonia will pay each year a contribution to the general budget of the European Union according to the procedures outlined in Annex II.

If necessary in order to take into account LIFE developments, or the evolution of Estonia's absorption capacity, the Association Committee is entitled to adapt this contribution, so as to avoid budgetary imbalance in the implementation of LIFE.

3. The terms and conditions for the submission, assessment and selection of applications related to eligible institutions, organisations and individuals of Estonia will be the same as those applicable to eligible institutions, organisations and individuals of the Community.

The Commission may take Estonian experts into consideration when appointing independent experts according to the relevant provisions of the decision establishing the programme to assist it in the project evaluation.

4. To reflect the Community dimension of LIFE, transnational projects and activities proposed by Estonia should, whenever relevant, include at least a partner from one of the Member States of the Community.

5. The Member States of the Community and Estonia will make every effort, within the framework of existing provisions, to facilitate the free movement and residence of experts and other eligible persons moving between Estonia and the Member States of the Community for the purpose of participating in activities covered by this Decision.

6. Activities covered by this Decision shall be exempt from imposition by Estonia of indirect taxes, customs duties, prohibitions and restrictions on imports and exports in respect of goods and services intended for use under such activities.

7. Without prejudice to the responsibilities of the Commission of the European Communities and the Court of Auditors of the European Communities in relation to the monitoring and evaluation of the programme pursuant to Article 9 of Regulation (EC) No 1655/2000, the participation of Estonia in the programme will be continuously monitored on a partnership basis involving the Commission and Estonia. Estonia will take part in any other specific activities set out by the Community in that context.

8. In conformity with the Community's Financial Regulations, contractual arrangements concluded with entities of Estonia shall provide for controls and audits to be carried out by, or under the authority of, the Commission and the Court of Auditors. Financial audits may be carried out with the purpose of controlling such entities' income and expenditure, related to the contractual obligations towards the Community. In a spirit of cooperation and mutual interest, the relevant authorities of Estonia shall provide any reasonable and feasible assistance as may be necessary or helpful under the circumstances to perform such controls and audits.

9. Without prejudice to the procedures referred to in Article 3(7) and in Article 11 of Regulation (EC) No 1655/2000, representatives of Estonia will, for the points which concern them, participate as observers in the relevant committees. These committees shall meet without the presence of representatives of Estonia for the rest of the points, as well as when voting takes place.

10. The language to be used in all contacts with the Commission, as regards the application process, contracts, reports to be submitted and other administrative arrangements for the programmes, will be one of the official languages of the Community.

11. The Community and Estonia may terminate activities under this Decision at any time upon twelve months' notice in writing. Projects and activities in progress at the time of termination shall continue until their completion under the conditions laid down in the appropriate agreements.

(1) OJ L 192, 28.7.2000, p. 1.

ANNEX II

Financial contribution of Estonia to LIFE

1. The financial contribution to be paid by Estonia to the general budget of the European Union to participate in LIFE will be EUR 600000 for each of the first two budgetary years. Supplementary costs of an administrative nature are included in the abovementioned amount.

The contribution to be paid by Estonia for the following period will be decided by the Association Council in the course of the year 2002.

2. Estonia will pay the contribution mentioned in point 1, partly from the Estonian national budget, and partly from Estonia's PHARE national programme. Subject to a separate PHARE programming procedure, the requested PHARE funds will be transferred to Estonia by means of a separate financing memorandum. Together with the part coming from Estonia's State budget, these funds will constitute Estonia's national contribution, out of which it will make payments in response to annual calls for funds from the Commission.

3. PHARE funds will be requested according to the following schedule:

EUR 285000 for the contribution to LIFE for the first year 2001;

EUR 285000 for the second year.

The remaining part of the contribution of Estonia will be covered from the Estonian State budget.

4. The Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities(1) will apply, notably to the management of the contribution of Estonia.

Travel costs and subsistence costs incurred by representatives and experts of Estonia for the purposes of taking part as observers in the work of the relevant committees referred to in point 9 of Annex I or other meetings related to the implementation of LIFE shall be reimbursed by the Commission on the same basis as, and in accordance with, the procedures currently in force for non-governmental experts of the Member States of the European Union.

5. After the entry into force of this Decision and at the beginning of each following year, the Commission will send to Estonia a call for funds corresponding to its contribution to LIFE under this Decision.

This contribution shall be expressed in euro and paid into a euro bank account of the Commission.

Estonia will pay its contribution according to the call for funds:

- by 1 April for the part financed from its national budget, provided that the call for funds is sent by the Commission before 1 March, or at the latest one month after the call for funds is sent if later,

- by 1 April for the part financed from PHARE, provided that the corresponding amounts have been sent to Estonia by this time, or at the latest in a period of 30 days after these funds have been sent to Estonia.

Any delay in the payment of the contribution shall give rise to the payment of interest by Estonia on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the European Central Bank, on the due date, for its operations in euro, increased by 1,5 percentage points.

(1) OJ L 356 31.12.1977, p. 1. Regulation as last amended by Regulation (EC, ECSC, Euratom No 762/2001 (OJ L 111, 20.4.2001, p. 1).