AGREEMENT

in the form of an Exchange of Letters between the European Community and the Kingdom of Norway concerning a Cooperation Programme for Economic Growth and Sustainable Development in Bulgaria

A. Letter from the European Community

Sir,

I have the honour to refer to the negotiations which have taken place between the European Community and the Kingdom of Norway (Norway) in the context of Bulgaria becoming a contracting party to the EEA Agreement and the establishment of a Cooperation Programme for promoting economic growth and sustainable development in Bulgaria.

The results of the negotiations are as follows:

1. A Cooperation Programme for promoting social and economic development in Bulgaria through bilateral projects is to be established between Norway and Bulgaria, in accordance with a bilateral agreement between the two States. The text of the bilateral agreement is annexed as an integral part of this Exchange of Letters.

2. For the purpose of the Programme, Norway shall make available a total amount of EUR 20 million, for commitment in a single tranche in 2007. This amount shall be made available from the date of entry into force of the Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area or an agreement to apply that Agreement provisionally, to 30 April 2009.

3. This Exchange of Letters: (a) is to be ratified or approved by the European Community and Norway in accordance with their respective procedures. The instruments of ratification or approval are to be deposited with the General Secretariat of the Council of the European Union. (b) it shall enter into force on the day following the deposit of the last instrument of ratification or approval provided that the instruments of ratification or approval of the following related agreements have been deposited as well: (i) Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area; (ii) Agreement in the form of an Exchange of Letters between the European Community and Norway concerning a Cooperation Programme for Economic Growth and Sustainable Development in Romania; (iii) additional Protocol to the Agreement between the European Economic Community and Iceland consequent on the accession of the Republic of Bulgaria and Romania to the European Union; and (iv) additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway consequent on the accession of the Republic of Bulgaria and Romania to the European Union.

I should be obliged if you would confirm your agreement to the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

Съставено в Брюксел на Hecho en Bruselas, el V Bruselu dne Udfærdiget i Bruxelles, den Geschehen zu Brüssel am Brüssel, Έγινε στις Βρυξέλλες, στις Done at Brussels, Fait à Bruxelles, le Fatto a Bruxelles, addì Briselē, Priimta Briuselyje Kelt Brüsszelben, Magħmul fi Brussell, Gedaan te Brussel, Sporządzono w Brukseli dnia Feito em Bruxelas, Adoptat la Bruxelles, V Bruseli V Bruslju, Tehty Brysselissä Utfärdat i Bryssel den

За Европейската общност Por la Comunidad Europea Za Evropské společenství For Det Europæiske Fællesskab Für die Europäische Gemeinschaft Euroopa Ühenduse nimel Για την Ευρωπαϊκή Κοινότητα For the European Community Pour la Communauté européenne Per la Comunità europea Eiropas Kopienas vārdā Europos bendrijos vardu Az Európai Közösség részéről Għall-Komunità Ewropea Voor de Europese Gemeenschap W imieniu Wspólnoty Europejskiej Pela Comunidade Europeia Pentru Comunitatea Europeană Za Európske spoločenstvo Za Evropsko skupnost Euroopan yhteisön puolesta För Europeiska gemenskapen

ANNEX AGREEMENT on a Norwegian Cooperation Programme for Economic Growth and Sustainable Development in Bulgaria between the Kingdom of Norway and the Republic of Bulgaria hereinafter referred to as ‘the Parties’ Article 1 Objective A Norwegian Cooperation Programme shall be established for promoting social and economic development in Bulgaria through bilateral cooperation projects between the Parties within the sectors referred to in Article 4. Article 2 Financial scope For the purpose of the Norwegian Cooperation Programme for the Republic of Bulgaria, the Kingdom of Norway shall make available a total amount of EUR 20 million, for commitment in a single tranche in 2007. Article 3 Duration The amount referred to in Article 2 shall be made available from the date of entry into force of the Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area, or as from the date of entry into force of an agreement to apply the Agreement provisionally, to 30 April 2009. Article 4 Priority sectors The Norwegian Cooperation Programme for Bulgaria shall be available for bilateral cooperation projects between eligible applicants from the Parties to promote social and economic development in the Republic of Bulgaria within the following priority sectors: — reduction of greenhouse gas emissions, including Joint Implementation projects under the Kyoto Protocol, and other emissions in air and water, — energy efficiency and renewable energy, — facilitating sustainable production, including certification and verification, — implementation of Schengen acquis, support of National Schengen Plans as well as strengthening the judiciary. Possible activities are, inter alia, innovation, human resource-development, networking, capacity-building, technology transfer, and research and development. Article 5 Co-financing ceilings The Norwegian contribution in the form of grants shall not exceed 60 % of the project cost except for projects otherwise financed by central, regional or local government budget allocations, where the contribution may not exceed 85 % of project cost. Community ceilings for co-financing shall not be exceeded in any case. Contributions to non-governmental organisations and social partners may be up to 90 % of project costs. Article 6 Management The Norwegian Cooperation Programme for Bulgaria shall be managed by the Norwegian Government or an entity appointed by it. The Management Entity shall consult with the Focal Point to be appointed by the Government of the Republic of Bulgaria. The Commission may screen the projects (1). Further provisions for the implementation of this Agreement will be issued by the Norwegian Government as necessary. The management costs of the Norwegian Cooperation Programme shall be covered by the amount referred to in Article 2. Article 7 Entry into force This Agreement shall be ratified by the Kingdom of Norway and the Republic of Bulgaria according to their national procedures. It shall enter into force 30 days after the date on which the last Party has deposited its instrument of ratification with the Norwegian Ministry for Foreign Affairs, but not earlier than the entry into force of the Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area, or as from the date of entry into force of an agreement to apply the latter agreement provisionally. Done at Brussels, ………2007, For the Kingdom of Norway For the Republic of Bulgaria

B. Letter from the Kingdom of Norway

Sir,

I have the honour to acknowledge receipt of your letter of today's date, which reads as follows:

‘I have the honour to refer to the negotiations which have taken place between the European Community and the Kingdom of Norway (Norway) in the context of Bulgaria becoming a contracting party to the EEA Agreement and the establishment of a Cooperation Programme for promoting economic growth and sustainable development in Bulgaria.

The results of the negotiations are as follows:

1. A Cooperation Programme for promoting social and economic development in Bulgaria through bilateral projects is to be established between Norway and Bulgaria, in accordance with a bilateral agreement between the two States. The text of the bilateral agreement is annexed as an integral part of this Exchange of Letters.

2. For the purpose of the Programme, Norway shall make available a total amount of EUR 20 million, for commitment in a single tranche in 2007. This amount shall be made available from the date of entry into force of the Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area or an agreement to apply that Agreement provisionally, to 30 April 2009.

3. This Exchange of Letters: (a) is to be ratified or approved by the European Community and Norway in accordance with their respective procedures. The instruments of ratification or approval are to be deposited with the General Secretariat of the Council of the European Union; (b) it shall enter into force on the day following the deposit of the last instrument of ratification or approval provided that the instruments of ratification or approval of the following related agreements have been deposited as well: (i) Agreement on the Participation of the Republic of Bulgaria and Romania in the European Economic Area; (ii) Agreement in the form of an Exchange of Letters between the European Community and Norway concerning a Cooperation Programme for Economic Growth and Sustainable Development in Romania; (iii) Additional Protocol to the Agreement between the European Economic Community and Iceland consequent on the accession of the Republic of Bulgaria and Romania to the European Union; and (iv) Additional Protocol to the Agreement between the European Economic Community and the Kingdom of Norway consequent on the accession of the Republic of Bulgaria and Romania to the European Union.’

I have the honour to confirm agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

Utferdiget i Brussel, Съставено в Брюксел на Hecho en Bruselas, el V Bruselu dne Udfærdiget i Bruxelles, den Geschehen zu Brüssel am Brüssel, Έγινε στις Βρυξέλλες, στις Done at Brussels, Fait à Bruxelles, le Fatto a Bruxelles, addì Briselē, Priimta Briuselyje Kelt Brüsszelben, Magħmul fi Brussell, Gedaan te Brussel, Sporządzono w Brukseli dnia Feito em Bruxelas, Adoptat la Bruxelles, V Bruseli V Bruslju, Tehty Brysselissä Utfärdat i Bryssel den

For Kongeriget Norge За Кралство Норвегия Por el Reino de Noruega Za Norské království For Kongeriget Norge Für das Königreich Norwegen Norra Kuningriigi nimel Για το Βασίλειο της Νορβηγίας For the Kingdom of Norway Pour le Royaume de Norvège Per il Regno di Norvegia Norvēģijas Karalistes vārdā Norvegijos Karalystės vardu A Norvég Királyság részéről Ghar-Renju tan-Norveġja Voor het Koninkrijk Noorwegen W imieniu Królestwa Norwegii Pelo Reino da Noruega Pentru Regatul Norvegiei Za Nórske kráľovstvo Za Kraljevino Norveško Norjan kuningaskunnan puolesta För Konungariket Norge

(1) The provisions laid down in the last sentence of Article 6, first paragraph, shall also apply as an adjustment to Article 4(3) of the Agreement between the Kingdom of Norway and the European Community on a Norwegian Financial Mechanism for the period 2004-2009 (OJ L 130, 29.4.2004, p. 81).