COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 15.06.1998 
COM(1998) 369 final 
Proposal for a 
COUNCIL DECISION 
on financing the fixed costs of the system of managing 
technical assistance for the ACP States and OCT 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
The European Association for Cooperation (EAC), which managed the provision of 
technical assistants and other experts in developing countries with funding from the EDF 
and the budget, is currently being wound up. It is to be replaced by two private 
companies selected on the basis of an international call for tender: 
- GTZ (Deutsche Gesellschaft fur Technische Zusammenarbeit GmbH), Eschborn, 
Germany; 
- AGRER SA, Brussels, Belgium. 
GTZ has been chosen for operations in Africa and the Indian Ocean. It will have sole 
responsibility for matters within the remit of DG VIII. The bulk of its activities will be 
financed by the EDF. 
AGRER has been chosen to cover the rest of the world and experts in humanitarian and 
food aid throughout the world. It will be responsible for the fields managed by the 
various RELEX DGs. In the case of DG VIII, these fields are the Caribbean and Pacific 
regions and food security. Its activities will be financed mainly from budgetary resources. 
These companies will provide the logistic framework. Technical assistance contracts will 
be concluded between the Commission and technical assistants. 
The financial arrangements are identical for both contracts, which will be signed for a 
period of two years and will be renewable once, likewise for two years. These 
arrangements are: 
- a fixed lump sum to cover operating costs 
GTZ AGRER 
ECU 2 563 440 ECU 2 160 590 
variable technical assistance costs (technical assistance contracts plus 6% for 
management costs). 
Given the scale of its technical assistance, the EDF will have to finance over 90% of 
GTZ's fixed costs and less than 10% of AGRER's fixed costs1. The total cost is 
estimated at ECU 5.5 million for four years. 
The fixed costs, unlike the variable costs, cannot be borne solely by the ACP States and 
OCT that receive technical assistance. As the system is one that benefits all recipient 
States, the structural costs should be borne jointly by all ACP States and OCT As 
technical assistance is provided on an irregular, case-by-case basis, spreading the cost 
among the ACP States and OCT receiving technical assistance could lead to their being 
charged costs which bear no relation to the actual services provided. 
These percentages were determined on the basis of allocations made in previous years. 
2 
Consequently, it is proposed that these costs be financed by revenue accruing from the 
deposited funds referred to in Article 9(2) of the 8th EDF Internal Agreement (EDF 
interest). The Council must decide by a qualified majority on the use of this revenue, in 
accordance with the final paragraph of Article 9(2) of the 8th EDF Internal Agreement. 
PROPOSAL FOR A COUNCIL DECISION 
on financing the fixed costs of the system of managing 
technical assistance for the ACP States and OCT 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the fourth ACP-EEC Convention, signed at Lomé on 15 December 
1989 and amended by the agreement signed in Mauritius on 4 November 1995, 
hereafter called the "Convention"; 
Having regard to Council Decision 91/482/EEC of 25 July 1991 on the association 
of the overseas countries and territories with the European Community, as amended 
by Decision 97/803/EC of 24 November 1997; 
Having regard to the internal agreement on the financing and administration of 
Community aid under the second financial protocol of the fourth ACP-EEC 
Convention, hereafter called the "Internal Agreement", and in particular Article 9 
thereof; 
Having regard to the Commission proposal, 
Whereas it is necessary to cover, for a period of four years, the fixed costs arising 
from the replacement of the European Association for Cooperation (LAC) for the 
management of technical assistance for the ACP States and OCT; 
Whereas the revenue accruing from the interest on the deposited funds referred to in 
Article 9(2) of the Internal Agreement would cover these fixed costs, 
HAS DECIDED AS FOLLOWS: 
Article 1 
The sum of ECU 5.5 million shall be deducted from the revenue accruing from the 
interest on the funds deposited with paying agents in Europe referred to in Article 
319(4) of the Convention, to finance the fixed costs arising from the replacement of 
the European Association for Cooperation (EAC) for the management of technical 
assistance for the ACP States and OCT. 
Article 2 
This Decision shall enter into force on the day of its adoption. 
Done at Brussels 
For the Council 
The President 

ISSN 0254-1475 
COM(98) 369 final 
DOCUMENTS 
EN 11 01 09 15 
Catalogue number : CB-CO-98-384-EN-C 
ISBN 92-78-37160-2 
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