OFFICIAL JOURNAL N0 L 67ÿ , 12/03/1981 , P. 0043

CORRIGENDA

CORRIGENDUM TO THE GENERAL BUDGET OF THE EUROPEAN COMMUNITIES FOR THE FINANCIAL YEAR 1981

( OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES NO L 378 OF 31 DECEMBER 1980 )

PAGE 565 : ADD THE FOLLOWING TEXT TO THE REMARKS IN CHAPTERS 9.0 AND 9.1 :

' ANNEX IV ( TO SECTION III OF THE BUDGET ) INDICATES THE EXPENDITURE FORECASTS FOR 1981 AND THE THREE-YEARLY FINANCIAL FORECASTS FOR THE FIFTH EUROPEAN DEVELOPMENT FUND . '

AFTER ANNEX III TO SECTION III , ADD THE FOLLOWING ANNEX IV :

' ANNEX IV

FINANCIAL INFORMATION ON THE EUROPEAN DEVELOPMENT FUND

I . FINANCIAL RESOURCES AND ESTIMATE OF EXPENDITURE FOR 1981 AND IN A THREE-YEAR PERSPECTIVE

BEFORE ANY ATTEMPT IS MADE TO PRESENT COMMITMENT AND PAYMENT ESTIMATES , THE POSITION SHOULD BE GIVEN AS REGARDS THE FINANCIAL RESOURCES AVAILABLE UNDER THE NEW LOME CONVENTION AND UNDER THE DECISION TO BE TAKEN CONCERNING THE ASSOCIATION OF THE OCT .

1 . FINANCIAL RESOURCES UNDER THE NEW CONVENTION AND THE OCT DECISION

( A ) TOTAL VOLUME

THE FINANCIAL RESOURCES AVAILABLE FOR THE VARIOUS INSTRUMENTS UNDER THE NEW CONVENTION ARE 62 % UP ON THE LOME I CONVENTION . THE SUM OF 5 607 MILLION EUA HAS BEEN ALLOCATED TO THE ACP STATES , AND THE COMMUNITY HAS ALLOCATED 109 MILLION EUA TO THE OCT .

THE TOTAL BREAKS DOWN AS FOLLOWS :

( IN MILLIONS OF EUA ) // //

// ACP STATES // OVERSEAS COUNTRIES AND TERRITORIES //

//

GRANTS // 2 928 // 51 //

SPECIAL LOANS // 504 // 27 //

RISK CAPITAL // 280 // 7 //

STABEX // 550 // 9 //

ORES // 280 // TOKEN ENTRY //

//

EUROPEAN DEVELOPMENT FUND TOTAL // 4 542 // 94 //

//

EUROPEAN INVESTMENT BANK NORMAL LOANS // 685 // 15 //

//

CONVENTION TOTAL // 5 227 // 109 //

//

NON-CONVENTION : //

EUROPEAN INVESTMENT BANK : //

- MINING SECTOR LOANS // 200 // - //

- DELEGATIONS ( BUDGET OF THE COMMUNITIES ) // 180 // - ( 1 ) //

//

GRAND TOTAL // 5 607 // 109 //

( 1 ) A SUM OF 10 MILLION EUA HAS BEEN PROPOSED BY THE COMMISSION .

( B ) FINANCING METHODS AND CONDITIONS

THE VERY WIDE RANGE OF FINANCIAL FACILITIES AVAILABLE TO THE ACP STATES HAS , IN THE PAST , PROVIDED A PRACTICAL RESPONSE TO THESE STATES ' DEVELOPMENT NEEDS . WHILE THE FACILITIES OFFERED WILL AGAIN BE THE SAME , THEY HAVE BEEN IMPROVED OR MADE MORE FLEXIBLE , WHEREVER THIS WAS APPROPRIATE .

FOR INSTANCE , THE PROPORTION OF GRANTS REMAINS VERY HIGH COMPARED WITH SPECIAL LOANS AND RISK CAPITAL ( 80 %-20 % ).

THE TERMS OF SPECIAL LOANS ARE TO BE STANDARDIZED : 40 YEARS DURATION , A 10-YEAR NON-CALL PERIOD , AND 1 % INTEREST . INTEREST ON THESE LOANS IS REDUCED TO 0.75 % FOR RECIPIENTS ON THE LIST OF LEAST-DEVELOPED STATES .

IN VIEW OF THE INTEREST SHOWN BY THE ACP STATES IN ASSISTANCE IN THE FORM OF RISK CAPITAL , THE VOLUME OF THIS TYPE OF AID MEASURE WILL BE INCREASED AND ITS RANGE EXTENDED .

INTEREST SUBSIDIES IN RESPECT OF NORMAL EIB LOANS WILL BE STANDARDIZED AND MADE AUTOMATIC AND , AS A RESULT , THE INTEREST RATE BORNE BY THE BORROWER WILL BE REDUCED BY 3 % . HOWEVER , THESE SUBSIDIES - CHARGED AGAINST THE GRANTS - WILL NOT BE AWARDED FOR PROJECTS FINANCED IN THE OIL SECTOR .

NEW PROVISIONS ALSO DEMONSTRATE THE IMPORTANCE OF CO-FINANCING OPERATIONS AND SEEK TO MAKE THEM EASIER TO CARRY OUT .

( C ) CONTRIBUTIONS FROM THE MEMBER STATES

THE INTERNAL AGREEMENT ADOPTED BY THE COUNCIL ON 20 NOVEMBER 1979 , WHICH IS IN THE COURSE OF RATIFICATION IN THE MEMBER STATES , SPECIFIES WHAT EACH MEMBER STATE MUST CONTRIBUTE TO MAKE UP THE ABOVE TOTAL .

THESE CONTRIBUTIONS ARE AS FOLLOWS :

// //

MEMBER STATES // MILLION EUA // % //

//

BELGIUM // 273.524 // 5.9 //

DENMARK // 115.900 // 2.5 //

GERMANY // 1 311.988 // 28.3 //

FRANCE // 1 186.816 // 25.6 //

IRELAND // 27.816 // 0.6 //

ITALY // 533.140 // 11.5 //

LUXEMBOURG // 9.272 // 0.2 //

NETHERLANDS // 343.064 // 7.4 //

UNITED KINGDOM // 834.480 // 18.0 //

//

TOTAL // 4 636.000 // 100.0 //

IN THE EVENT OF ACCESSION OF A NEW MEMBER STATE TO THE COMMUNITY , THE SCALE MUST BE ADJUSTED .

2 . EXPENDITURE ESTIMATES

THIS YEAR IS ONE OF TRANSITION BETWEEN THE EXPIRY OF THE FIRST LOME CONVENTION ( ON 29 FEBRUARY 1980 ) AND THE ENTRY INTO FORCE , ONCE THE RATIFICATION PROCEDURES HAVE BEEN COMPLETED , OF THE SECOND . SINCE NO DECISION ENTAILING A FINANCIAL COMMITMENT ON THE PART OF THE COMMUNITY CAN BE TAKEN BEFORE THE RATIFICATION PROCEDURES HAVE BEEN COMPLETED - WHICH WILL NOT BE BEFORE THE THIRD QUARTER OF THIS YEAR - THE ESTIMATED EXPENDITURE COMMITMENTS AND ESTIMATED PAYMENTS REQUIRED WILL BE FAIRLY SMALL IN 1980 .

FOR 1981 , DESPITE THE DIFFICULTY OF MAKING ANYTHING MORE THAN VERY ROUGH ESTIMATES AT THIS STAGE , THE RESULTS OF THE INITIAL PROGRAMMING MISSIONS CAN BE USED TO MAKE SOME KIND OF FORECASTS FOR ESTIMATED EXPENDITURE COMMITMENTS AND ESTIMATED PAYMENTS .

BY THE END OF JULY 1980 , 51 PROGRAMMING MISSIONS ( OUT OF THE 59 PLANNED ) WILL HAVE TAKEN PLACE , ENABLING MORE THAN TWO THIRDS OF THE TOTAL FUNDS SET ASIDE FOR NATIONAL SCHEMES TO BE PROGRAMMED .

AN INITIAL PICTURE CAN BE DRAWN ON THE BASIS OF THE INDICATIVE PROGRAMMES OF COMMUNITY AID ALREADY PREPARED ; IT PROVIDES A GUIDE TO THE MAJOR AREAS TO WHICH COMMUNITY FINANCE WILL BE DIRECTED DURING THE LIFETIME OF THE NEW CONVENTION . THE LION ' S SHARE IS DESTINED FOR RURAL DEVELOPMENT ( 40 % OF THE TOTAL PROGRAMMED SO FAR ) AND ECONOMIC INFRASTRUCTURE ( 18 % ), BUT THE SOCIAL SERVICES ( 12 % ), HYDRAULIC ENGINEERING ( 9 % ) AND THE ENERGY AND MINING SECTOR ( 6 % ) ARE NOT FORGOTTEN . THE REMAINDER OF WHAT HAS ALREADY BEEN PROGRAMMED IS EARMARKED FOR TECHNICAL COOPERATION AND SPECIFIC FORMS OF COOPERATION ( MICROPROJECTS , TRADE PROMOTION , ETC .).

THESE PROGRAMMES WILL BE IMPLEMENTED IN ACCORDANCE WITH PROVISIONAL SCHEDULES AGREED WITH EACH ACP STATE IN THE COURSE OF THE PROGRAMMING EXERCISE UNDER ARTICLE 110 OF THE CONVENTION . THESE MAY BE AGGREGATED TO GIVE THE FOLLOWING ESTIMATE - STILL VERY TENTATIVE AT THIS STAGE - OF THE OVERALL RATE OF UTILIZATION OF COMMITMENTS IN SUCCESSIVE YEARS :

- FIRST YEAR : 13 % ,

- SECOND YEAR : 23 % ,

- THIRD YEAR : 28 % ,

- FOURTH YEAR : 22 % ,

- FIFTH YEAR : 14 % .

THE PROGRAMMING VISITS ALSO GAVE THE COMMISSION AN OPPORTUNITY TO DISCUSS REGIONAL COOPERATION POLICIES WITH THE VARIOUS ACP STATES ; AS A RESULT IT SHOULD BE ABLE TO BEGIN IMPLEMENTING THIS IMPORTANT ELEMENT OF COOPERATION BEFORE THE END OF THE YEAR .

ON THE BASIS OF ALL THE DATA WHICH HAVE BEEN COLLECTED AND WITH DUE ALLOWANCE BEING MADE FOR THE POSSIBLE RATE OF UTILIZATION OF THE RESOURCES ALLOCATED UNDER OTHER HEADS OF COOPERATION ( STABEX AND EMERGENCY AID , FOR EXAMPLE ), THE FOLLOWING ESTIMATES CAN NOW BE ADVANCED FOR ALL EDF FUNDS FOR 1981 :

- ESTIMATE OF EXPENDITURE COMMITMENTS:950 MILLION EUA , - ESTIMATE OF PAYMENTS:300 MILLION EUA . THESE ESTIMATES WILL BE REFINED IN THE SECOND HALF OF THE YEAR ONCE MORE DETAILED INFORMATION IS AVAILABLE CONCERNING PROGRAMMING .

FOR THE FOLLOWING YEARS A TENTATIVE SCHEDULE MAY BE CONSTRUCTED :

( IN MILLIONS OF EUA ) // //

COMMITMENTS // PAYMENTS //

//

// // 1981 // 1982 // 1983 //

//

1980 // 300 // 100 // 50 // 50 //

1981 // 950 // 200 // 200 // 250 //

1982 // 1 000 // - // 200 // 200 //

1983 // 1 000 // - // - // 200 //

//

TOTAL // // 300 // 450 // 700 //

II . THE MAIN ASPECTS OF THE NEW CONVENTION WITH REGARD TO FINANCIAL COOPERATION

NOT ONLY DOES THE NEW LOME CONVENTION PROVIDE FOR CONSIDERABLY MORE FUNDS FOR FINANCIAL AND TECHNICAL AID , IT ALSO PLACES SPECIAL EMPHASIS ON CERTAIN NEW ASPECTS AND AREAS IN WHICH A NUMBER OF INNOVATIONS HAVE BEEN MADE .

1 . MANAGEMENT OF AID : RESPONSIBILITIES OF RECIPIENTS

THE NEW CONVENTION NOT ONLY MAINTAINS THE SPIRIT OF DIALOGUE AND PARTICIPATION WHICH PREVAILS IN THE PRESENT ARRANGEMENTS , BUT ALSO STRENGTHENS IT AND MAKES IT MORE TRANSPARENT . THIS HAS BEEN ACHIEVED AS A RESULT OF :

- A NEW ARTICLE DEFINING PRECISELY THE RESPECTIVE RESPONSIBILITIES OF THE ACP STATES AND THE COMMUNITY IN GIVING EFFECT TO COOPERATION ,

- A BETTER ENUMERATION OF THE RESPECTIVE POWERS OF THE EXECUTIVE BODIES AND EMPHASIS ON THE DESIRE TO SPEED UP THE PROCEDURES FOR FINANCING DECISIONS AND IMPLEMENTATION ,

- THE CREATION OF AN ACP-EEC COMMITTEE TO STUDY - IN GENERAL AND IN THE LIGHT OF SPECIFIC CASES - MEASURES WHICH COULD IMPROVE THE IMPLEMENTATION OF FINANCIAL AND TECHNICAL COOPERATION , IN PARTICULAR BY SPEEDING UP AND STREAMLINING PROCEDURES .

AS REGARDS THE ACTUAL EXECUTION OF PROJECTS , ANOTHER NOTEWORTHY FEATURE IS THE INCREASED OPPORTUNITY FOR PARTICIPATION OPEN TO FIRMS IN THE ACP STATES , WHICH WILL HAVE A 10 % PRICE PREFERENCE FOR THE PERFORMANCE OF WORKS CONTRACTS ESTIMATED AT BELOW 3.5 MILLION EUA AND A 15 % PREFERENCE FOR THE DELIVERY OF SUPPLIES , WITHOUT ANY LIMIT BEING SET AS TO THE AMOUNT INVOLVED .

2 . SCOPE OF AID

THE SECTORAL PRIORITIES CONFIRMED BY PAST EXPERIENCE HAVE BEEN MAINTAINED , BUT SPECIAL EMPHASIS IS PLACED IN THE FORTHCOMING CONVENTION ON CERTAIN PRINCIPLES WHICH ARE NEW OR WHICH HAVE SEEN A NUMBER OF INNOVATIONS .

( A ) STRENGTHENING COOPERATION WITH THE LEAST-DEVELOPED , LAND-LOCKED AND ISLAND ACP STATES

A GENERAL ARTICLE IN THE CONVENTION COVERS THE CASE OF THE LEAST-DEVELOPED ACP STATES ON THE ONE HAND , AND THE LAND-LOCKED AND ISLAND ACP STATES ON THE OTHER , AND A LIST IS GIVEN OF THE COUNTRIES BELONGING TO EACH OF THESE THREE CATEGORIES . THERE ARE NOW 35 COUNTRIES ON THE LIST OF LEAST- DEVELOPED ACP STATES .

IN ADDITION , VARIOUS ARTICLES IN THE DIFFERENT CHAPTERS IN THE CONVENTION DEFINE SPECIFIC PRACTICAL MEASURES TO HELP THESE DIFFERENT CATEGORIES OF COUNTRY , THE MOST SIGNIFICANT BEING THE SPECAL TREATMENT FOR THE LEAST-DEVELOPED ACP STATES IN THE DETERMINATION OF THE VOLUME OF FINANCIAL RESOURCES WHICH THEY MAY RECEIVE AND THE PARTICULARLY FAVOURABLE FINANCING CONDITIONS THEY ARE TO BE GRANTED .

( B ) GREATER SUPPORT FOR REGIONAL COOPERATION EFFORTS . THE OBJECTIVES OF REGIONAL COOPERATION HAVE BEEN SPECIFIED , ITS SCOPE EXTENDED AND THE FUNDS INCREASED ( 600 MILLION EUA ).

( C ) AS IN THE PAST , EMERGENCY AID WILL BE GRANTED TO ACP STATES EXPERIENCING EXCEPTIONAL DIFFICULTIES AS A RESULT OF NATURAL DISASTERS OR COMPARABLE SPECIAL CIRCUMSTANCES . THIS AID WILL BE COVERED BY A SPECIAL ALLOCATION OF 200 MILLION EUA CONSTITUTED BY DEDUCTIONS IN RESPECT OF THE GRANTS .

( D ) MICROPROJECTS PROVED A VALUABLE AND ATTRACTIVE POSSIBILITY UNDER THE PREVIOUS CONVENTION . THE NEW CONVENTION THEREFORE AGAIN ENSHRINES THE PRINCIPLE OF SUCH PROJECTS AND EXTENDS THEIR SCOPE , AND THERE WILL NO LONGER BE AN OVERALL LIMIT FOR THIS TYPE OF OPERATION . THE CEILING FOR EACH INDIVIDUAL OPERATION HAS BEEN RAISED FROM 75 000 TO 150 000 EUA .

( E ) STRENGTHENING THE EXPORT EARNINGS STABILIZATION SYSTEM . STABEX , WHICH HAS BEEN ALLOCATED INCREASED FINANCIAL RESOURCES ( 550 MILLION EUA COMPARED WITH 380 MILLION EUA IN THE PREVIOUS CONVENTION ), APPLIES TO MORE PRODUCTS AND THE INTERVENTION CONDITIONS HAVE BEEN IMPROVED , IN PARTICULAR AS A RESULT OF A REDUCTION IN THE DEPENDENCE AND ACTIVATION THRESHOLDS .

( F ) THE CREATION OF A MINING SAFEGUARD MECHANISM . WITH A TOTAL BUDGET OF 280 MILLION EUA , THIS MECHANISM , BY MEANS OF SPECIAL FINANCING FACILITIES ( SIMILAR TO SPECIAL LOANS ), WILL MAKE IT POSSIBLE TO HELP THOSE ACP COUNTRIES WHICH ARE DEPENDENT TO A LARGE EXTENT ON MINERALS TO COPE WITH A DROP IN THEIR CAPACITIES FOR EXPORTING SUCH PRODUCTS TO THE COMMUNITY . PRODUCTS COVERED WILL BE COPPER , COBALT , PHOSPHATES , MANGANESE , BAUXITE AND ALUMINIUM , TIN AND IRON ORE .

III . THE ESTABLISHMENT OF COOPERATION PROCEDURES

THE FUNDS FOR FINANCIAL AND TECHNICAL AID CANNOT BE USED UNTIL THE NEW CONVENTION ENTERS INTO FORCE , I.E . UNTIL THE RATIFICATION PROCEDURES HAVE BEEN COMPLETED , BUT THIS DOES NOT MEAN THAT THE COMMISSION CANNOT MAKE USE OF THIS TRANSITION PERIOD IN ORDER TO SET UP THE COOPERATION PROCEDURES AND BODIES , SO THAT THE ACTUAL WORK ON EDF PROJECTS CAN BEGIN AS SOON AS THE RATIFICATION PROCEDURES HAVE BEEN COMPLETED .

THE COMMISSION IS THEREFORE NOW ENGAGED IN PROGRAMMING AID , APPRAISING CERTAIN PROJECTS AND PREPARING THE TEXTS REQUIRED FOR THE OPERATION OF THE FUND .

1 . THE PROGRAMMING OF AID

UNDER THE LOME CONVENTION , AT THE BEGINNING OF THE PERIOD COVERED BY THE CONVENTION , COMMUNITY AID - WHICH DOVETAILS INTO EACH ACP STATE ' S DEVELOPMENT PLANS AND PROGRAMMES - IS TO BE PROGRAMMED WITH EACH OF THESE STATES IN ORDER :

- TO ENABLE EACH ACP STATE TO OBTAIN , BEFORE THE INDICATIVE PROGRAMME IS DRAWN UP , AS CLEAR AN IDEA AS POSSIBLE OF THE AMOUNT OF FINANCIAL ASSISTANCE IT WILL RECEIVE FROM THE RESOURCES MANAGED BY THE COMMISSION , AND OF THE LIKELY DETAILS AND TERMS OF THIS ASSISTANCE ,

- TO ENABLE THE CONTRACTING PARTIES TO ENSURE THAT THE VARIOUS COOPERATION INSTRUMENTS AND MEANS ARE USED AS EFFICIENTLY AS POSSIBLE ,

- TO ENABLE THE COMMUNITY TO HAVE INFORMATION ON EACH STATE ' S DEVELOPMENT OBJECTIVES AND PRIORITIES .

THE INDICATIVE PROGRAMME DRAWN UP BY MUTUAL AGREEMENT BETWEEN THE COMMUNITY AND EACH ACP STATE IS TO BE DETERMINED ON THE BASIS OF EACH STATE ' S PROPOSALS SETTING OUT ITS OBJECTIVES AND PRIORITIES . THE PROGRAMME MAY MENTION SPECIFIC PROJECTS DESIGNED TO ATTAIN THESE OBJECTIVES , BUT ONLY IF THESE PROJECTS HAVE BEEN CLEARLY IDENTIFIED .

CONSEQUENTLY , THE PROGRAMMING PROCEDURE UNDER THE NEW CONVENTION ENTAILS A VERY MARKED CHANGE COMPARED WITH PREVIOUS PRACTICE .

MORE OFTEN THAN NOT , THE PREVIOUS PRACTICE RESULTED IN THE ESTABLISHMENT OF A LIST OF PROJECTS AMONG WHICH THE ENTIRE RESOURCES OF THE INDICATIVE PROGRAMME WERE DISTRIBUTED . THIS METHOD LED TO MISUNDERSTANDINGS BETWEEN THE COMMUNITY - WHICH WAS REQUIRED TO TAKE A DECISION ON PROJECTS THE SUBSTANCE AND VALUE OF WHICH WERE UNKNOWN TO IT - AND THE ACP STATE - WHICH WAS INCLINED TO BELIEVE THAT THE FACT OF INCLUDING A PROJECT ON THE LIST CONSTITUTED A COMMITMENT ON THE PART OF THE COMMUNITY TO FINANCE IT .

IN FUTURE , ONLY CLEARLY IDENTIFIED PROJECTS MAY BE MENTIONED IN THE PROGRAMME , BY WAY OF A GUIDE , AND PROGRAMMING BY OBJECTIVES WILL REMAIN THE UNDERLYING PRINCIPLE .

HOWEVER , PROGRAMMING MUST BE FLEXIBLE AND A REVIEW MUST BE POSSIBLE DURING THE PERIOD COVERED BY THE CONVENTION IN ORDER TO TAKE ACCOUNT OF ANY CHANGES IN THE ECONOMIC SITUATION OF THE COUNTRY CONCERNED OR IN ITS INITIAL PRIORITIES AND OBJECTIVES .

THIS NEW STYLE OF PROGRAMMING , WHICH SHOULD BE SEEN AS AN ONGOING DIALOGUE , WAS STARTED IN THE LAST QUARTER OF 1979 AND WILL BE CONTINUED THROUGHOUT 1980 .

2 . PROJECT APPRAISAL

IT SHOULD BE RECALLED , FIRST OF ALL , THAT AS A RESULT OF THE DIVISION OF RESPONSIBILITIES BETWEEN THE COMMISSION AND THE EUROPEAN INVESTMENT BANK AS REGARDS THE IMPLEMENTATION OF THE EDF :

- IT IS THE COMMISSION ' S RESPONSIBILITY TO APPRAISE THE PROJECTS FINANCES BY MEANS OF GRANTS OR SPECIAL LOANS OR BY SPECIAL FINANCING FACILITIES FOR MINING PROJECTS , AND STABEX TRANSFER APPLICATIONS ,

- IT IS THE BANK ' S RESPONSIBILITY TO APPRAISE THE PROJECTS FINANCED OUT OF OWN RESOURCES , AND INTEREST SUBSIDIES AND RISK CAPITAL .

THE EXERCISE IN PROGRAMMING BY OBJECTIVES UNDERTAKEN DURING THE TRANSITION PERIOD WILL NOT PRECLUDE PROJECT APPRAISAL BY THE APPROPRIATE COMMISSION DEPARTMENTS AND THE BANK WHENEVER THIS IS POSSIBLE .

THIS WILL BE THE CASE FOR CLEARLY IDENTIFIED PROJECTS MENTIONED IN THE INDICATIVE PROGRAMMES , AND ALSO FOR THE PROJECTS SATISFYING THE OBJECTIVES SET IN THE INDICATIVE PROGRAMMES WHICH WILL NECESSITATE THE LAUNCHING OF A NUMBER OF PREPARATORY STUDIES IN 1980 .

3 . PREPARATION OF IMPLEMENTING TEXTS

ALONGSIDE THESE MEASURES , THE COMMISSION AND THE EIB WILL HAVE TO PREPARE AND SUBMIT TO THE COUNCIL FOR APPROVAL IN 1980 THE TEXTS , FLOWING FROM THE LOME CONVENTION AND THE INTERNAL FINANCIAL AGREEMENT , WHICH WILL GOVERN THE IMPLEMENTATION OF THE EDF : THE RULES OF PROCEDURE OF THE EDF COMMITTEE AND THE BANK COMMITTEE , AND THE EDF FINANCIAL REGULATION .

( A ) EDF COMMITTEE AND BANK COMMITTEE

BEFORE THEY ARE SUBMITTED TO THE COMMUNITY ' S DECISION- MAKING BODIES , FINANCING PROPOSALS - WHICH REFLECT THE CONCLUSIONS OF THE APPRAISAL PROCEDURE - ARE SUBMITTED , DEPENDING ON THE TYPE OF FINANCING , EITHER TO THE EDF COMMITTEE OR TO THE BANK COMMITTEE ( EACH OF WHICH CONSISTS OF REPRESENTATIVES OF THE MEMBER STATES ' GOVERNMENTS ) FOR AN OPINION .

- THE EDF COMMITTEE GIVES AN OPINION ON FINANCING PROPOSALS CONCERNING PROJECTS FINANCED BY MEANS OF GRANTS OR SPECIAL LOANS ;

- THE BANK COMMITTEE GIVES AN OPINION ON FINANCING PROPOSALS CONCERNING PROJECTS FINANCED BY MEANS OF SUBSIDIZED LOANS AND RISK CAPITAL .

IN ACCORDANCE WITH THE INTERNAL FINANCING AGREEMENT , EACH OF THESE TWO COMMITTEES REQUIRES RULES OF PROCEDURE . THE TWO SETS OF RULES OF PROCEDURE WILL BE ADOPTED IN 1980 .

( B ) EDF FINANCIAL REGULATION

IN ACCORDANCE WITH THE INTERNAL FINANCING AGREEMENT , THE COMMISSION WILL PREPARE A DRAFT FINANCIAL REGULATION FOR THE FIFTH EDF AND SUBMIT IT TO THE COUNCIL FOR APPROVAL . THIS FINANCIAL REGULATION WILL BASICALLY LAY DOWN IN DETAIL :

- THE CONDITIONS UNDER WHICH CONTRIBUTIONS FROM THE MEMBER STATES TO THE FUND FALL DUE AND ARE TO BE PAID ,

- THE EDF MANAGEMENT RULES ( SEPARATION OF THE FUNCTIONS OF AUTHORIZING OFFICER , CONTROLLER AND ACCOUNTING OFFICER ; DECISION-MAKING PROCESS AS REGARDS EXPENDITURE OPERATIONS ),

- THE SPECIFIC MEASURES CONCERNING THE IMPLEMENTATION OF THE EDF ,

- THE ROLE AND DUTIES OF THE COURT OF AUDITORS IN THE CONTROL OF THE EDF .