EN Official Journal of the European Union C 274/1

FINAL ACCOUNTS FOR THE FINANCIAL YEAR 2008 OF THE SEVENTH, EIGHTH, NINETH AND TENTH EUROPEAN DEVELOPMENT FUNDS

(2009/C 274/01)

TABLE OF CONTENTS

NOTE ACCOMPANYING THE ACCOUNTS

1. FINANCIAL STATEMENTS OF THE EUROPEAN DEVELOPMENT FUND AND EXPLANATORY NOTES

1.1. Principal events and key points

1.2. Financial statements

1.3. Notes to the financial statements

2. REPORT ON FINANCIAL IMPLEMENTATION

2.1. Allocations at 31.12.2008

2.2. Aggregated accounts

2.3. Situation by country and by instrument

2.4. Other management information

3. FINANCIAL INFORMATION EIB

3.1. Income statement investment facility

3.2. Balance sheet investment facility

3.3. Cash flow statement investment facility

3.4. Statement of changes in equity investment facility

3.5. Notes to the financial statements investment facility

4. APPENDIX – Situation by country and by instrument

NOTE ACCOMPANYING THE ACCOUNTS

I hereby declare that the annual accounts of the 7th, 8th, 9th and 10th European Development Funds for the year 2008 have been prepared in accordance with Title VIII of the Financial Regulation of the 10th European Development Fund and with the accounting principles, rules and methods set out in annex to the financial statements.

I have obtained from the authorising officer and from the EIB, who certified its reliability, all the information necessary for the production of the accounts that show the European Development Funds’ assets and liabilities and the budgetary implementation.

I hereby certify that based on this information, and on such checks as I deemed necessary to sign off the accounts, I have a reasonable assurance that the accounts present a true and fair view of the financial position of the European Development Funds in all material aspects.

(signed) Philippe TAVERNE Accounting Officer

1. FINANCIAL STATEMENTS OF THE EUROPEAN DEVELOPMENT FUND AND EXPLANATORY NOTES

1.1. PRINCIPAL EVENTS AND KEY POINTS

The European Development Fund (EDF) is the main instrument for providing Community aid for development cooperation in the African, Caribbean and Pacific (ACP) States and Overseas Countries and Territories (OCTs). The 1957 Treaty of Rome made provision for its creation with a view to granting technical and financial assistance, initially to African countries which at that time were still colonised and with which some Member States had historical links.

Even though a heading has been reserved for the Fund in the Community budget since 1993 following a request by the European Parliament, the EDF is not yet included under the Community's general budget. It is funded by the Member States, subject to its own financial rules and managed by a specific committee. The geographic aid granted to ACP States and OCTs will continue to be mainly funded by the EDF during the period 2008-2013.

Each EDF is concluded for a period of around five years. Since the conclusion of the first partnership convention in 1964, the EDF cycles have generally followed the partnership agreement/convention cycles. The 9th EDF expired on the entry into force of the 10th EDF on 1st July 2008. Council decision 2007/792/EC (1) of 26 November 2007 established a transitory period for the prolongation of the 9th EDF from 1st January 2008 until the entry into force of the 10th EDF. Each EDF is governed by its own Financial Regulation which imposes the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the European Commission. These financial statements are also presented in an aggregated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible.

Given the clear division of responsibilities set out in Article 2.2 of the 10th EDF Financial Regulation (2), the financial statements of the Commission and the European Investment Bank – the entities entrusted with the management of EDF resources – have not been consolidated in the accounts of the European Communities.

1.1.1. Closure of the 7th EDF

In order to facilitate the migration of the EDF accounting records to the new ABAC FED application, the Authorising Officer decided to close the 7th EDF on 31st August 2008. In the absence of a legal basis for the closure of EDFs, the remaining balances and the related contracts and decisions were transferred to the 9th EDF according to the provisions of Part 3 of the Financial Regulation applicable to the 9th EDF. This is different from the procedure applied at the closure of the 6th EDF on 31st July 2006, when only the remaining balances were transferred.

For information purposes, the 7th EDF balance sheet as at the closure date, 31st August, is disclosed under 1.2.

1.1.2. Presentation of annual accounts

The annual accounts for 2008 are presented as follows:

— The financial statements

— The reports on financial implementation

— The financial statements and information supplied by the European Investment Bank (EIB)

1.2. FINANCIAL STATEMENTS

BALANCE SHEET FOR THE 8th, 9th AND 10th EDF

(EUR millions) Notes 31.12.2008 31.12.2007 CURRENT ASSETS Receivables 1 17,16 8,50 Net pre-financing 2 917,85 955,52 Other current assets 3 –6,32 –2,65 Cash and cash equivalents 290,76 388,22 STABEX security accounts 5 87,98 99,61 Democratic Republic Congo special fund 6 1,75 3,36 Cash at banks 7 185,94 285,24 Co-financing bank accounts 8 15,09 0,00 Total assets 1 219,45 1 349,58 CURRENT LIABILITIES Payables 9 702,29 703,98 Total liabilities 702,29 703,98 Net assets 517,15 645,60 FUNDS & RESERVES Called fund capital 10 17 079,17 25 019,17 Economic outturn carried forward from previous years –15 784,30 –22 410,59 Economic outturn of the year –3 029,96 –3 255,88 Other reserves 11 2 252,25 1 292,89 Net assets 517,15 645,60





ECONOMIC OUTTURN ACCOUNT FOR THE 8th, 9th AND 10th EDF

(EUR millions) Notes cash basis expenditure 2008 accrual adjustments accrual basis expenditure 2008 accrual basis expenditure 2007 OPERATING REVENUE (1) 12 0,00 23,16 23,16 0,02 Programmable aid 413,68 2,90 416,58 637,53 Macro-economic support 349,87 –5,65 344,23 426,59 Sectoral policy 1 450,25 –62,77 1 387,48 1 148,85 Intra ACP Projects 487,17 30,08 517,24 381,66 Interest-rate subsidies 1,77 1,77 0,95 Emergency aid 181,95 5,67 187,62 154,81 Refugee aid 1,36 4,39 5,75 –5,58 Risk Capital 16,57 16,57 57,81 STABEX 24,54 24,54 98,37 Sysmin 7,24 –2,47 4,77 31,58 Other aid programmes related to former EDFs 29,57 –10,69 18,88 4,82 Structural adjustment 0,20 –0,13 0,07 –6,30 Debt relief - Heavily Indebted Poor Countries and World Bank –1,07 –1,07 179,87 Institutional Support 16,10 19,56 35,65 30,41 Compensation export receipts 40,78 1,24 42,01 83,91 Democratic Republic Congo Fund –1,67 3,22 1,56 17,25 Operating expenses 3 019,38 –15,71 3 003,67 3 242,52 Administrative and financial expenses 13 83,09 –24,81 58,28 31,68 Total expenses/cash basis 14 3 102,47 Accrual adjustments 15 –40,52 –0,34 Total expenses/accrual basis (2) 16 3 061,95 3 061,95 3 273,86 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (1 – 2) –3 061,95 –3 038,79 –3 273,83 Financial revenue 17 12,66 12,66 18,65 Financial expenses –0,02 –0,02 –0,34 Impairment of receivables 1.4 –3,81 –3,81 –0,35 Surplus/(deficit) from financial activities (3) 8,83 8,83 17,96 ECONOMIC OUTTURN OF THE YEAR (1 – 2 + 3) –3 053,11 –3 029,96 –3 255,88





Economic outturn of the year for the 8th, 9th and 10th EDF –3 029,96 Economic outturn of the year for the 7th EDF –98,49 TOTAL ECONOMIC OUTTURN OF THE YEAR –3 128,45





CASH FLOW STATEMENT FOR THE 7th, 8th, 9th AND 10th EDF

(EUR millions) Notes 31.12.2008 31.12.2007 Economic outturn of the year –3 128,45 –3 255,88 Impairment losses on receivables 1.4 1,02 0,35 Accrual adjustment – operating revenue –23,15 2,88 Accrual adjustment – operating & administrative expenses 15 20,15 399,89 Accrual adjustment - financial expenses 0,00 0,34 Bank charges to be refunded 0,00 0,02 Increase in co-financing payables 9 15,09 0,00 Decrease in accrued interest income 1 1,60 –0,11 Increase in advances for study grants and other current assets 3 & 2 4,60 3,81 Cash flows from operating activities –3 109,14 –2 848,69 Contributions from Member States 9.1 & 10.1 3 022,34 2 886,76 Cash flows from financing activities 3 022,34 2 886,76 Net increase/(decrease) in cash and cash equivalents –86,79 38,07 Cash at banks at beginning of period 7 285,24 96,48 STABEX security accounts at beginning of period 5 99,61 191,60 Democratic Republic Congo special fund at beginning of period 6 3,36 3,42 SWIFT account at beginning of period 9.2 –8,92 49,73 Cash and cash equivalents at beginning of period 379,30 341,23 Cash at banks at end of period 7 185,94 285,24 STABEX security accounts at end of period 5 87,98 99,61 Democratic Republic Congo special fund at end of period 6 1,75 3,36 Co-financing bank accounts at end of period 8 15,09 0,00 SWIFT account at end of period 9.2 1,74 –8,92 Cash and cash equivalents at end of period 292,50 379,30





STATEMENT OF CHANGES IN NET ASSETS FOR THE 7th, 8th, 9th AND 10th EDF

(EUR millions) Fund Capital Uncalled Funds Called fund capital Cumulative reserves Other reserves Total Net Assets (a) (b) (c) = (a) – (b) (e) (d) (h) = (e) + (d) + (c) Notes 10 10 10 11 Closing balance 2006 42 999,15 13 099,15 29 900,00 –29 711,53 1 033,84 1 222,31 Contributions –2 640,00 2 640,00 2 640,00 Capital increase 40,17 1,00 39,17 39,17 Transfers from former EDFs Economic outturn of the year –3 255,88 –3 255,88 Closure of 6th EDF –7 560,00 –7 560,00 7 300,94 259,06 0,00 Closing balance 2007 35 479,32 10 460,15 25 019,17 –25 666,46 1 292,89 645,60 Contributions –3 000,00 3 000,00 3 000,00 Capital increase 2,40 2,40 Transfers from former EDFs Economic outturn of the year –3 029,96 –3 029,96 Opening 10th EDF 21 152,00 21 152,00 Closure of 7th EDF –10 940,00 –10 940,00 9 882,16 959,36 –98,49 Closing balance 2008 45 693,72 28 614,55 17 079,17 –18 814,26 2 252,25 517,15





7th EDF BALANCE SHEET

(EUR millions) Notes 31.8.2008 31.12.2007 CURRENT ASSETS Receivables 1 0,00 2,12 Net pre-financing 2 0,00 75,36 Other current assets 3 0,00 0,00 Liaison accounts 4 0,00 242,23 Cash and cash equivalents 0,00 0,00 STABEX security accounts 5 0,00 0,00 Democratic Republic Congo special fund 6 0,00 0,00 Cash at banks 7 0,00 0,00 Co-financing bank accounts 8 0,00 0,00 Total assets 0,00 319,70 CURRENT LIABILITIES Payables 9 0,00 19,59 Total liabilities 0,00 19,59 Net assets 0,00 300,11 FUNDS & RESERVES Called fund capital 10 10 940,00 10 940,00 Economic outturn carried forward from previous years –9 882,16 –9 715,19 Economic outturn of the year –98,49 – 166,97 Other reserves – 959,36 – 757,73 Net assets 0,00 300,11





7th EDF ECONOMIC OUTTURN ACCOUNT

(EUR millions) Notes cash basis expenditure 2008 accrual adjustments accrual basis expenditure 2008 accrual basis expenditure 2007 Operating revenue (1) 12 0,00 0,00 0,00 0,00 Programmable aid 24,11 57,58 81,69 124,56 Macro-economic support 0,00 0,00 0,00 0,00 Sectoral policy 0,00 0,00 0,00 Intra ACP Projects 0,00 0,00 0,00 0,00 Interest-rate subsidies 0,00 0,00 0,00 –0,49 Emergency aid –0,01 0,14 0,13 0,28 Refugee aid –0,02 0,64 0,62 0,28 Risk Capital 4,30 0,00 4,30 5,28 STABEX 0,00 0,00 0,00 8,23 Sysmin 12,46 –6,20 6,27 27,01 Other aid programmes related to former EDFs –0,21 1,88 1,67 3,56 Structural adjustment –0,02 6,62 6,60 –6,62 Debt relief – Heavily Indebted Poor Countries and World Bank 0,00 0,00 4,96 Institutional Support 0,00 0,00 0,00 0,00 Compensation export receipts 0,00 0,00 0,00 Democratic Republic Congo Fund 0,00 0,00 0,00 0,00 Operating expenses 40,60 60,67 101,27 167,05 0,00 Administrative and financial expenses 13 0,00 0,00 0,00 Total expenses/cash basis 14 40,60 Accrual adjustments 15 60,67 0,00 0,00 Total expenses/Accrual basis (2) 16 101,27 101,27 167,05 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (1 – 2) – 101,27 – 101,27 – 167,05 Financial revenue 17 0,00 0,00 Financial expenses 0,00 0,00 0,00 Impairment of receivables 1.4 2,79 2,79 0,08 Surplus/(deficit) from financial activities (3) 2,79 2,79 0,08 ECONOMIC OUTTURN OF THE YEAR (1 – 2 + 3) –98,49 –98,49 – 166,97





STATEMENT OF CHANGES IN NET ASSETS FOR THE 7th EDF

(EUR millions) Fund Capital Uncalled Funds Called fund capital Cumulative reserves Other reserves Total Net Assets (a) (b) (c) = (a) – (b) (e) (d) (h) = (e) + (d) + (c) Notes 10 10 10 11 Closing balance 2006 10 940,00 0,00 10 940,00 –9 715,19 – 685,81 539,00 Contributions Capital increase Transfers to 9th EDF –71,91 –71,91 Economic outturn of the year – 166,97 – 166,97 Closing balance 2007 10 940,00 0,00 10 940,00 –9 882,16 – 757,73 300,11 Contributions Capital increase Transfers to 9th EDF – 201,63 – 201,63 Economic outturn of the year –98,49 –98,49 Balance at 31.8.2008 10 940,00 0,00 10 940,00 –9 980,64 – 959,36 0,00 Closure of 7th EDF –10 940,00 –10 940,00 9 980,64 959,36 0,00 Closing balance 2008 0,00 0,00 0,00 0,00 0,00 0,00





8th EDF BALANCE SHEET

(EUR millions) Notes 31.12.2008 31.12.2007 CURRENT ASSETS Receivables 1 3,82 2,64 Net pre-financing 2 93,40 126,98 Other current assets 3 Liaison accounts 4 859,14 1 235,68 Cash and cash equivalents STABEX security accounts 5 Democratic Republic Congo special fund 6 Cash at banks 7 Co-financing bank accounts 8 Total assets 956,37 1 365,30 CURRENT LIABILITIES Payables 9 94,06 124,35 Total liabilities 94,06 124,35 Net assets 862,31 1 240,94 FUNDS & RESERVES Called fund capital 10 12 840,00 12 840,00 Economic outturn carried forward from previous years –9 504,00 –8 724,21 Economic outturn of the year – 321,18 – 779,79 Other reserves 11 –2 152,51 –2 095,06 Net assets 862,31 1 240,94





8th EDF ECONOMIC OUTTURN ACCOUNT

(EUR millions) Notes cash basis expenditure 2008 accrual adjustments accrual basis expenditure 2008 accrual basis expenditure 2007 Operating revenue (1) 12 0,00 4,17 4,17 Programmable aid 228,46 6,54 235,00 393,52 Macro-economic support 0,66 –0,94 –0,28 2,79 Sectoral policy 11,58 3,82 15,40 20,95 Intra ACP Projects Interest-rate subsidies 1,77 1,77 1,45 Emergency aid –0,06 –0,06 –0,15 Refugee aid 1,36 4,39 5,75 –5,86 Risk Capital 16,57 16,57 52,52 STABEX 24,54 24,54 90,14 Sysmin 7,24 –2,47 4,77 4,57 Other aid programmes related to former EDFs Structural adjustment 0,20 –0,13 0,07 0,32 Debt relief - Heavily Indebted Poor Countries and World Bank –1,07 –1,07 173,31 Institutional Support Compensation export receipts 29,77 –2,95 26,83 49,49 Democratic Republic Congo Fund Operating expenses 322,10 7,19 329,28 783,04 Administrative and financial expenses 13 1,02 –0,18 0,84 1,95 Total expenses/cash basis 14 323,12 Accrual adjustments 15 7,01 Total expenses/accrual basis (2) 16 330,13 330,13 784,99 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (1 – 2) – 330,13 – 325,95 – 784,99 Financial revenue 17 4,03 4,03 6,18 Financial expenses Impairment of receivables 1.4 0,74 0,74 –0,97 Surplus/(deficit) from financial activities (3) 4,77 4,77 5,20 ECONOMIC OUTTURN OF THE YEAR (1 – 2 + 3) – 325,36 – 321,18 – 779,79





STATEMENT OF CHANGES IN NET ASSETS For The 8th EDF

(EUR millions) Fund Capital Uncalled Funds Called fund capital Cumulative reserves Other reserves Total Net Assets (a) (b) (c) = (a) – (b) (e) (d) (h) = (e) + (d) + (c) Notes 10 10 10 11 Closing balance 2006 12 840,00 1 545,00 11 295,00 –8 724,21 –1 877,85 692,93 Contributions –1 545,00 1 545,00 1 545,00 Capital increase Transfers to 9th EDF – 217,21 – 217,21 Economic outturn of the year – 779,79 – 779,79 Closing balance 2007 12 840,00 0,00 12 840,00 –9 504,00 –2 095,06 1 240,94 Contributions Capital increase Transfers to other EDFs –57,45 –57,45 Economic outturn of the year – 321,18 – 321,18 Closing balance 2008 12 840,00 0,00 12 840,00 –9 825,18 –2 152,51 862,31





9th EDF BALANCE SHEET

(EUR millions) Notes 31.12.2008 31.12.2007 CURRENT ASSETS Receivables 1 13,33 3,75 Net pre-financing 2 761,90 753,18 Other current assets 3 –0,03 –2,65 Cash and cash equivalents 12,92 388,22 STABEX security accounts 5 99,61 Democratic Republic Congo special fund 6 3,36 Cash at banks 7 285,24 Co-financing bank accounts 8 12,92 0,00 Total assets 788,12 1 142,50 CURRENT LIABILITIES Payables 9 374,36 560,05 Liaison accounts 4 837,33 1 477,90 Total liabilities 1 211,69 2 037,95 Net assets – 423,57 – 895,45 FUNDS & RESERVES Called fund capital 10 4 239,17 1 239,17 Economic outturn carried forward from previous years –6 280,30 –3 971,18 Economic outturn of the year –2 690,15 –2 309,12 Other reserves 11 4 307,72 4 145,68 Net assets – 423,57 – 895,45





9th EDF ECONOMIC OUTTURN ACCOUNT

(EUR millions) Notes cash basis expenditure 2008 accrual adjustments accrual basis expenditure 2008 accrual basis expenditure 2007 Operating revenue (1) 12 0,00 18,98 18,98 0,02 Programmable aid 143,42 11,35 154,77 119,44 Macro-economic support 349,21 –4,70 344,51 423,80 Sectoral policy 1 438,67 –66,59 1 372,08 1 127,91 Intra ACP Projects 468,97 48,28 517,24 381,66 Interest-rate subsidies Emergency aid 182,01 5,67 187,68 154,68 Refugee aid Risk Capital STABEX Sysmin Other aid programmes related to former EDFs 29,57 –10,69 18,88 1,26 Structural adjustment Debt relief - Heavily Indebted Poor Countries and World Bank 1,60 Institutional Support 16,10 19,56 35,65 30,41 Compensation export receipts 11,00 4,19 15,19 34,42 Democratic Republic Congo Fund –1,67 3,22 1,56 17,25 Operating expenses 2 637,29 10,28 2 647,57 2 292,43 Administrative and financial expenses 13 52,29 4,72 57,01 29,73 Total expenses/cash basis 14 2 689,58 15,01 Accrual adjustments 15 15,01 –0,34 Total expenses/accrual basis (2) 16 2 704,58 2 704,58 2 321,82 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (1 – 2) –2 704,58 –2 685,60 –2 321,80 Financial revenue 17 12,47 Financial expenses –0,34 Impairment of receivables 1.4 –4,55 –4,55 0,54 Surplus/(deficit) from financial activities (3) –4,55 –4,55 12,67 ECONOMIC OUTTURN OF THE YEAR (1 – 2 + 3) –2 709,13 –2 690,15 –2 309,12





STATEMENT OF CHANGES IN NET ASSETS FOR THE 9th EDF

(EUR millions) Fund Capital Uncalled Funds Called fund capital Cumulative reserves Other reserves Total Net Assets (a) (b) (c) = (a) – (b) (e) (d) (h) = (e) + (d) + (c) Notes 10 10 10 11 Closing balance 2006 11 659,15 11 554,15 105,00 –3 971,18 3 856,56 –9,62 Contributions –1 095,00 1 095,00 1 095,00 Capital increase 40,17 1,00 39,17 39,17 Transfers from other EDFs 289,12 289,12 Economic outturn of the year –2 309,12 –2 309,12 Closing balance 2007 11 699,32 10 460,15 1 239,17 –6 280,30 4 145,68 – 895,45 Contributions –3 000,00 3 000,00 3 000,00 Capital increase Transfers from other EDFs 162,04 162,04 Economic outturn of the year –2 690,15 –2 690,15 Closing balance 2008 11 699,32 7 460,15 4 239,17 –8 970,46 4 307,72 – 423,57





10th EDF BALANCE SHEET

(EUR millions) Notes 31.12.2008 CURRENT ASSETS Receivables 1 0,00 Net pre-financing 2 62,55 Other current assets 3 –6,30 Cash and cash equivalents 277,84 STABEX security accounts 5 87,98 Democratic Republic Congo special fund 6 1,75 Cash at banks 7 185,94 Co-financing bank accounts 8 2,17 Total assets 334,10 CURRENT LIABILITIES Payables 9 233,87 Liaison accounts 4 21,81 Total liabilities 255,68 Net assets 78,41 FUNDS & RESERVES Called fund capital 10 0,00 Economic outturn carried forward from previous years 0,00 Economic outturn of the year –18,63 Other reserves 11 97,04 Net assets 78,41





10th EDF ECONOMIC OUTTURN ACCOUNT

(EUR millions) Notes cash basis expenditure 2008 accrual adjustments accrual basis expenditure 2008 Operating revenue (1) 12 0,00 0,00 Programmable aid 41,79 –14,98 26,81 Macro-economic support Sectoral policy Intra ACP Projects 18,20 –18,20 Interest-rate subsidies Emergency aid Refugee aid Risk Capital STABEX Sysmin Other aid programmes related to former EDFs Structural adjustment Debt relief – Heavily Indebted Poor Countries and World Bank Institutional Support Compensation export receipts Democratic Republic Congo Fund Operating expenses 59,99 –33,18 26,81 Administrative and financial expenses 13 29,78 –29,35 0,43 Total expenses (cash basis) 14 89,77 Accrual adjustments 15 –62,54 Total expenses/accrual basis (2) 16 27,24 27,24 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (1 – 2) –27,23 –27,23 Financial revenue 17 8,63 8,63 Financial expenses –0,02 –0,02 Impairment of receivables 1.4 Surplus/(deficit) from financial activities (3) 8,61 8,61 ECONOMIC OUTTURN OF THE YEAR (1 – 2 + 3) –18,63 –18,63





STATEMENT OF CHANGES IN NET ASSETS for the 10th EDF

(EUR millions) Fund Capital Uncalled Funds Called fund capital Cumulative reserves Other reserves Total Net Assets (a) (b) (c) = (a) – (b) (e) (d) (h) = (e) + (d) + (c) Notes 10 10 10 11 Opening balance 2008 21 152,00 21 152,00 0,00 0,00 0,00 0,00 Contributions Capital increase 2,40 2,40 Transfers from other EDFs 97,04 97,04 Economic outturn of the year –18,63 –18,63 Closing balance 2008 21 154,40 21 154,40 0,00 –18,63 97,04 78,41

1.3. NOTES TO THE FINANCIAL STATEMENTS

1.3.1. Accounting Policies

1.3.1.1. Legal provisions and the Financial Regulation

The financial statements were drawn up in accordance with the Financial Regulation applicable to the 10th European Development Fund (3) (EDF).

The relevant documents must be presented to the Court of Auditors as provided for in Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF (4), Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF (5), Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF (6) and Articles 124 and 125 of the Financial Regulation applicable to the 10th EDF (3). Article 124 (10th EDF) stipulates that the EDF Accounting Officer shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 125). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal by 15 November, together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management.

In accordance with the provisions of article 121 of the 10th EDF Financial Regulation, financial statements are prepared respecting the principles of accrual based accounting.

The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer. As from the financial year 2009, a new accounting system has been implemented in order to present accrual accounts without adjustments.

These financial statements have been drafted in conformity with accounting rules and methods of the EDF drawn up on the basis of International Public Sector Accounting Standards (IPSAS) or by default, International Financial Reporting Standards (IFRS) as respectively issued by the International Public Sector Accounting Standard Board (IPSASB) and International Accounting Standard Board (IASB). The rules of valuation and accounting methods adopted by the Accounting Officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management.

1.3.1.2. Accounting Principles

The objective of the financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users. For a public sector entity, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it.

If they are to present a true and fair view, financial statements must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but do so in a clear and comprehensible manner which allows comparisons between financial years. It is with these goals in mind that the present document has been drawn up.

The accounting system of the European Development Fund comprises general accounts and budget accounts. These accounts are kept in euro on the basis of the calendar year. The budget accounts give a detailed picture of the implementation of the budget. They are based on the modified cash accounting principle. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year based on accrual accounting rules and are designed to establish the financial position in the form of a balance sheet at 31st December.

Article 120 of the 10th EDF Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements, as follows:

— going concern basis;

— prudence;

— consistent accounting methods;

— comparability of information;

— materiality;

— no netting;

— reality over appearance; and,

— accrual-based accounting.

1.3.1.3. Basis of preparation

The financial statements are presented in millions of euros, which is the European Communities’ functional and reporting currency. Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the underlying transactions. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the economic outturn account.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December:

EURO Exchange Rate 31.12.2008 31.12.2007 GBP 0,9525 GBP 0,7148

Values in the tables may not add up, due to rounding.

In accordance with generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available. Significant estimates include, but are not limited to, provisions for future charges, financial risk on accounts receivable, accrued income and charges. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known.

Balance sheet

1.3.1.4. Receivables

Receivables are carried at original amount less write-down for impairment. A write-down for impairment of receivables is established when there is objective evidence that the EDF will not be able to collect all amounts due according to the original terms of the receivables. The amount of the write-down is the difference between the asset’s carrying amount and the recoverable amount, being the present value of expected future cash flows, discounted at the market rate of interest for similar borrowers. The amount for write-down is recognised in the economic outturn account. Also recognised is a general write-down in value of 20 % per year for outstanding recovery orders not already subject to a specific write-down.

1.3.1.5. Pre-financing amounts

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular pre-financing agreement. The float or advance is repaid or used for the purpose for which it was provided during the period defined in the agreement. If the beneficiary does not incur sufficient eligible expenditure, he has the obligation to return, in whole or in part, the pre-financing advance to the European Development Fund. The amount of the pre-financing is reduced (wholly or partially) by the acceptance of eligible costs and amounts returned.

At year-end outstanding pre-financing amounts are valued at the original amount(s) paid to the beneficiary less: any amounts returned, eligible amounts cleared and the estimated eligible amounts not yet cleared at year-end.

Guarantees related to pre-financing amounts are disclosed as contingent assets and as such they are not accounted for in the financial statements (IPSAS 19).

1.3.1.6. Cash & cash equivalents

Cash and cash equivalents include accounts held with financial institutions in the ACP states, the OCTs and the Member States.

For the purpose of the cash flow statement, cash and cash equivalents include the current account with the general budget of the EU presented under accounts payable in the balance sheet.

1.3.1.7. Payables

A significant amount of payables of the EDF are not related to the purchase of goods or services – instead they are unpaid cost claims from beneficiaries of grants or other funding. They are recorded as payables for the requested amount when the cost claim/request for payment is received and, after verification, accepted as eligible by the relevant financial agents. At this stage they are valued at the accepted and eligible amount.

A critical element in accrual accounting is the exercise of ensuring that transactions are recorded in the accounting year to which they relate. This exercise is referred to as the cut-off exercise. In particular an assessment has to be made concerning eligible expenses incurred by beneficiaries of EDF funds but not yet reported to the EDF (accrued charges).

According to the European Communities accounting rules, transactions and events are recognised in the financial statements in the period to which they relate. At the end of the accounting period, accrued expenses are recognised based on an estimated amount of the transfer obligation of the period (e.g. the degree of execution of contracts) provided by the Authorising Officer.

Economic Outturn Account

1.3.1.8. Revenue

The revenue of the EDF comprises interest generated on various cash balances held with commercial banks and on late payment of entitlements to the EDF.

1.3.1.9. Expenditure

Expenditure is recognised in the period that the events giving rise to a payment occurred, as long as:

— A contract has been signed which authorises the payment;

— Eligibility criteria, if any, have been met by the beneficiary; and,

— A reasonable estimate of the amount due can be made based on, for example, invoices sent by the beneficiary, degree of execution of contracts etc.

As expenditure incurred by the Commission delegations is not entered into the EDF accounts until it has been validated by both the Authorising Officer and the Accounting Officer, any expenditure which was not validated at year-end is shown as ‘unallocated expenses’ under the heading other current assets in the balance sheet.

In order to comply with accrual accounting principles the cash basis expenditure provided by the present IT accounting system (OLAS) has been adjusted with the additional information provided by the Authorising Officer about pre-financing and accrued expenditure.

Off balance sheet

1.3.1.10. Contingent assets

A contingent asset is a possible asset that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the European Communities. A contingent asset is disclosed when an inflow of economic benefits or service potential is probable.

Contingent assets are assessed continuously to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits or service potential will arise and the asset’s value can be measured reliably, the asset and the related revenue are recognised in the financial statements of the period in which the change occurs.

1.3.1.11. Guarantees

Guarantees are possible assets or obligations that arise from past events and whose existence will be confirmed by the occurrence or non-occurrence of the object of the guarantee. Guarantees thus qualify as contingent assets or liabilities. A guarantee is settled when the object of the guarantee no longer exists. It is crystallised when the conditions are fulfilled for calling for a payment from the guarantor.

1.3.2. Notes to the balance sheet

(1) RECEIVABLES

Table 1

(EUR millions) Receivables Notes 8th 9th 10th Total at 31.12.2008 Total at 31.12.2007 Interest receivable - STABEX 1.1 –0,01 –0,01 0,41 Interest receivable - other 1.2 0,01 0,01 1,19 Open recovery orders 1.3 4,17 18,98 0,00 23,15 11,88 — Impairment of receivables 1.4 –0,35 –5,65 0,00 –6,00 –4,98 Total 3,82 13,33 0,00 17,16 8,50

In accordance with the provisions of the Cotonou Agreement, interest income and the corresponding receivables are allocated to the 10th EDF. Such funds can be used according to the provisions of articles 1 and 6 of the Internal Agreement applicable to the 10th EDF (7). The only exception is the interest earned on STABEX security accounts which is allocated to the 8th EDF.

(1.1) Interest receivable - STABEX

This amount represents interest earned on the STABEX security accounts during the financial year 2008, for which the payment will be received in 2009. This interest is the property of the relevant beneficiary countries.

(1.2) Interest receivable - other

This amount represents interest earned on the European bank accounts and the STABEX current account during the financial year 2008, for which the payment will be received in 2009.

(1.3) Open recovery orders

The closing balance for recovery orders represents the value of recovery orders issued but unpaid at the year-end.

As at 31 December 2007, the balance of outstanding recovery orders related to pre-financing was EUR 21,21 million. Of this amount, EUR 9,33 million was not included in the 2007 Annual Accounts. In 2008, the accounting records of the EDF were updated. The adjustment represents an increase in receivables and a corresponding decrease in pre-financing and therefore did not have any impact on the net assets.

The movements in open recovery orders during the period are detailed below.

Table 1.3

(EUR millions) 8th EDF 9th EDF Total Open recovery orders at 31.12.2007 6,96 14,25 21,21 Recovery orders issued in 2008 27,39 52,17 79,56 Recovery orders closed in 2008 –30,19 –47,00 –77,18 Cashed –27,54 –35,90 –63,45 Waived (art 73 FR) –1,06 –1,63 –2,69 Cancelled –0,62 –0,92 –1,54 Offset –0,96 –8,54 –9,51 Revaluation 0,00 –0,43 –0,43 Open recovery orders at 31.12.2008 4,17 18,98 23,15

(1.4) Impairment of receivables

In compliance with IPSAS 19, the Accounting Officer has established a provision for impairment losses on receivables based on two variables:

— The age of the debt, applying a provision of 20 % of the euro value for each year the debt is outstanding; and,

— The evaluation of the risk of non recovery, in collaboration with the Authorising Officer.

Table 1.4

(EUR millions) Impairment of receivables 7th EDF 8th EDF 9th EDF Total Balance at 31.12.2008 0,35 5,65 6,00 Balance at 31.12.2007 2,79 1,09 1,10 4,98 Increase (Decrease) –2,79 –0,74 4,55 1,02

(2) NET PRE-FINANCING

Following the principles of accrual accounting, advance payments made by the EDF are classified as assets. The figures for outstanding pre-financing have been provided by the Authorising Officer (see table 2.1). The pre-financing is presented net of open recovery orders related to advances and estimated amounts not yet cleared at year-end.

In 2008, the presentation of open recovery orders was changed. The outstanding amounts are now included in the line gross pre-financing.

Table 2

(EUR millions) Net pre-financing Notes 8th EDF 9th EDF 10th EDF Total 31.12.2008 Total 31.12.2007 Pre-financing (gross) 2.1 244,54 2 377,17 63,77 2 685,48 2 766,52 Advances for study grants management 2.2 0,00 0,45 0,00 0,45 1,38 — Estimated clearing of pre-financing 2.3 – 151,14 –1 615,72 –1,22 –1 768,08 –1 800,51 — Open recovery orders (2007) 1.3 0,00 0,00 –11,88 Total 93,40 761,90 62,55 917,85 955,52

(2.1) Pre-financing (gross)

Many contracts provide for payments of advances before the commencement of works, deliveries of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments on the basis of progress reports. Pre-financing is normally paid in the currency of the country or territory where the project is executed.

The table below summarises the outstanding pre-financing (except for structural adjustment programmes and direct budgetary support programmes) registered in the Authorising Officer's accounts at the end of the year. Conversion into EUR is made using the official exchange rate of December 31.

Table 2.1

(EUR millions) Pre-financing (gross) 7th EDF 8th EDF 9th EDF 10th EDF Total Total at 31.12.2008 244,54 2 377,17 63,77 2 685,48 Total at 31.12.2007 152,34 383,89 2 230,29 2 766,52 Increase (Decrease) – 152,34 – 139,35 146,88 63,77 –81,04

(2.2) Advances for study grants management

This amount corresponds to advances paid to external bodies for the management of study awards.

(2.3) Estimated clearing of pre-financing

This amount represents the accrued charges calculated by the Authorising Officer corresponding to the amount of eligible costs that were incurred by the beneficiaries of the outstanding pre-financing at year-end, but not yet reported. These amounts are treated as expenditure in the Economic Outturn Account and have been reclassified from accounts payable to pre-financing.

(3) OTHER CURRENT ASSETS

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects and economic outturn account.

Table 3

(EUR millions) Other current assets 9th EDF 10th EDF Total at 31.12.2008 Total at 31.12.2007 Unallocated expenses –0,03 –0,03 1,19 Unallocated revenue –6,47 –6,47 –4,55 Partial off-settings 0,17 0,17 0,70 Total –0,03 –6,30 –6,32 –2,65

(4) LIAISON ACCOUNTS

For reasons of efficiency, there is a single treasury for all the EDFs being implemented; this leads to operations between the various EDFs, which are balanced out in the liaison accounts between the various balance sheets.

Table 4

(EUR millions) Liaison accounts 8th EDF 9th EDF 10th EDF Total at 31.12.2008 Total at 31.12.2007 to/from 6th EDF –2 065,45 – 213,85 –2 279,31 0,00 to/from 7th EDF 2 279,31 2 279,31 2 037,08 to/from 8th EDF –3 075,80 151,21 –2 924,60 –3 301,13 to/from 9th EDF 3 075,80 – 173,02 2 902,79 1 264,05 to/from 10th EDF – 151,21 173,02 21,81 0,00 Total 859,14 – 837,33 –21,81 0,00 0,00

(5) STABEX SECURITY ACCOUNTS

STABEX is the acronym for a European Commission compensatory finance scheme to stabilise export earnings of the ACP countries. It was first introduced in the first Lomé Convention (1975) with the purpose of remedying the harmful effects of the instability of export revenue from agricultural products.

The balance on the STABEX security accounts represents the total of STABEX funds available which will be transferred to the relevant beneficiary ACP State at a future date. This balance is allocated to the 10th EDF.

Table 5

(EUR millions) STABEX security accounts Balance at 31.12.2007 Transfers from STABEX current account Interest Payments Balance at 31.12.2008 BENIN 0,05 0,00 0,05 BURKINA FASO 0,01 0,00 0,01 BURUNDI 0,68 0,07 0,75 CAMEROUN 0,02 0,00 –0,02 0,00 COMORES 0,06 0,00 0,06 DOMINICA 0,08 0,00 0,08 ETHIOPIA 0,96 0,04 1,01 GAMBIA 1,07 0,05 1,12 GRENADA 0,35 0,02 0,36 GUINEA-BISSAU 0,35 0,01 –0,37 0,00 COTE D’IVOIRE 1,57 0,07 1,64 JAMAICA 0,62 0,03 0,65 MADAGASCAR 0,68 0,03 0,71 MALAWI 0,97 0,04 1,02 MAURITANIA 0,38 0,06 0,44 PAPUA-NEW GUINEA 0,70 0,03 0,73 RWANDA 6,12 0,27 6,39 SENEGAL 10,74 0,24 –10,10 0,88 SIERRA LEONE 0,07 0,01 –0,08 0,00 SAINT LUCIA 14,60 0,63 15,24 SOLOMON ISLANDS 0,00 0,00 0,00 SUDAN 48,62 2,10 –2,05 48,67 ST VINCENT & GRENADINES 4,21 0,18 4,40 TANZANIA 3,56 0,14 –3,70 0,00 TOGO 0,00 8,47 0,29 –8,47 0,29 TONGA 0,09 0,00 0,10 UGANDA 0,00 0,00 0,24 0,25 ZIMBABWE 3,01 0,13 3,15 Total STABEX 99,61 8,47 4,45 –24,54 87,98

In addition to these funds, there are other STABEX funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State reach agreement on how the STABEX funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé IV Agreement (8) (as revised), the funds are transferred into an interest bearing double signature security account (Commission official and Beneficiary State) opened in the name of the ACP State. The funds remain on these security accounts until an FMO (Framework of Mutual Obligations) justifies a transfer for a project. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended. The funds on the double signature accounts are the property of the ACP State and are consequently not recorded as assets in the EDF Annual Accounts. The transfers to these accounts are recorded as STABEX payments. Details on these accounts are provided in the annual EDF Financial Management Report (9).

In 2008, EUR 8,47 million was made available for Togo by way of transfer from the STABEX current account to a double signature security account, following the instructions of the Authorising Officer (refer note 7.4).

(6) DEMOCRATIC REPUBLIC CONGO SPECIAL FUND

This balance represents the amounts available for the Democratic Republic of the Congo in accordance with the provisions of Council Decision 2003/583/EC (10).

Table 6

(EUR millions) 10th EDF Balance at 31.12.2008 Balance at 31.12.2007 Democratic Republic Congo special fund 1,75 1,75 3,36 Total 1,75 1,75 3,36

(7) CASH AT BANKS

In accordance with Article 153 of the 10th EDF Financial Regulation the treasury is presented in the balance sheet of the 10th EDF.

Table 7

(EUR millions) Cash at banks Notes 10th EDF Balance at 31.12.2008 Balance at 31.12.2007 Treasury accounts 7.1 133,98 133,98 208,09 Local Paying Agents 7.2 20,24 20,24 54,67 European Paying Agents 7.3 31,71 31,71 13,06 STABEX current account 7.4 0,00 0,00 8,47 Cash in transit 0,00 0,00 0,95 Total 185,94 185,94 285,24

(7.1) Treasury accounts

These are accounts held with the central banks of the Member States into which EDF contributions are paid. The Accounting Officer makes transfers from these accounts to the European paying agents.

(7.2) Local paying agents

These are amounts held in bank accounts within ACP States and OCTs used for making payments in local currency within the beneficiary state. The accounts are generally kept in euros, but may also be kept in a currency of a Community Member State.

(7.3) European paying agents

These accounts are held with commercial banks established in the EU-15 Member States and with the EIB. The accounts are kept in euros and are used for payments to beneficiaries within the Union and elsewhere. Payments are generally made in euros, but may also be made in other currencies. These funds are also used to replenish local paying agent accounts and the liaison account with the General Budget of the EU.

(7.4) STABEX current account

The 2007 balance has been made available for Togo in 2008 by way of transfer to a double signature security account, following the instructions of the Authorising Officer.

(8) CO-FINANCING BANK ACCOUNTS

These accounts include the remaining funds related to old co-financing agreements. These accounts are reported in the annual accounts for the first time. These funds are the property of the Member States concerned and hence a corresponding amount is registered as payable (see note 9.3). Therefore, the effect on the net assets is nil. The corresponding co-financing amount as at 31 December 2007 was EUR 30,91 million.

The new 10th EDF Danish co-financing (see note 10) will use the standard EDF treasury structure, without dedicated bank accounts.

Table 8

(EUR millions) 9th EDF 10th EDF Balance at 31.12.2008 Balance at 31.12.2007 Co-financing bank accounts 12,92 2,17 15,09 0,00 Total 12,92 2,17 15,09 0,00

(9) PAYABLES

Table 9

(EUR millions) Payables Notes 8th EDF 9th EDF 10th EDF Total at 31.12.2008 Total at 31.12.2007 Deferred income 9.1 233,43 233,43 211,08 Liaison account with the General Budget of the EU – SWIFT 9.2 –1,74 –1,74 8,92 Amounts due to Member States co-financing 9.3 12,92 2,17 15,09 0,00 Accrued Expenses 94,06 361,44 0,01 455,51 483,98 Eligibility to be confirmed and non finalised payments 9.4 28,74 81,33 0,00 110,08 197,07 Invoices to be received 9.5 216,45 1 895,83 1,24 2 113,52 2 087,42 — Estimated clearing of pre-financing 2.3 – 151,14 –1 615,72 –1,22 –1 768,08 –1 800,51 Total 94,06 374,36 233,87 702,29 703,98

(9.1) Deferred income

Table 9.1

(EUR millions) Contributions received in advance Balance at 31.12.2008 Balance at 31.12.2007 Ireland 2,74 1,00 United Kingdom 222,08 208,09 Finland 8,61 2,00 Total 233,43 211,08

(9.2) Liaison account with the General Budget of the EU- SWIFT

As from the beginning of financial year 2005, payments to beneficiaries within the Union are executed through SWIFT by the General Budget of the European Union. For this purpose, a current account has been opened. This account is presented in the cash flow statement as cash equivalent. This account will be closed as from 2009, when the EDF payments will be executed directly through the EDF SWIFT.

(9.3) Amounts due to Member States from co-financing

The Italian co-financing is still ongoing under the 9th EDF. The bank accounts in the 10th EDF relates to old co-financing. These funds will be returned to the Member States concerned after instruction from the Authorising Officer. See also note 8. These accounts are reported in the annual accounts for the first time; the corresponding co-financing amount as at 31 December 2007 was EUR 30,91 million.

Accrued expenses

The accounting information provided by the present IT accounting system (OLAS) has been adjusted in order to provide figures which comply with accrual accounting principles. Additional information has been provided by the Authorising Officer. Accrued expenses include eligibility to be confirmed and an estimation of invoices to be received based on the degree of advancement of projects.

In 2007, the methodology for the determination of the accrued expenditure was refined to incorporate the contract type.

(9.4) Eligibility to be confirmed and non finalised payments

These are invoices which arrived before the end of the financial year 2008 but which either had still not been analysed at the yearly closure or no payment had been authorised. The amounts registered in the accounts of the Authorising Officer are shown in the table below.

Table 9.4

(EUR millions) Eligibility to be confirmed and non finalised payments 7th EDF 8th EDF 9th EDF 10th EDF Total Total at 31.12.2008 28,74 81,33 0,00 110,08 Total at 31.12.2007 7,97 45,86 143,24 197,07 Increase (Decrease) –7,97 –17,11 –61,90 0,00 –86,99

(9.5) Invoices to be received

These figures reflect expenditure which has been incurred but not yet invoiced. The amounts estimated by the Authorising Officer are shown in the table below.

At the beginning of 2009, the Commission launched an in-depth analysis of the methodology and the different hypothesis on which the provision is established, with the help of an independent audit company. On the basis of the recommendations, a refined version of the methodology is currently under evaluation for a possible inclusion in the 2009 annual accounts.

Table 9.5

(EUR millions) Invoices to be received 7th EDF 8th EDF 9th EDF 10th EDF Total Total at 31.12.2008 216,45 1 895,83 1,24 2 113,52 Total at 31.12.2007 83,69 331,69 1 672,04 2 087,42 Increase (Decrease) –83,69 – 115,23 223,78 1,24 26,10

Funds and Reserves

(10) CALLED FUND CAPITAL

Table 10

(EUR millions) 7th EDF 8th EDF 9th EDF 10th EDF Total EDF Capital 2008 Fund Capital (a) 0,00 12 840,00 11 699,32 21 154,40 45 693,72 Uncalled funds (b) 0,00 0,00 7 460,15 21 154,40 28 614,55 Called fund capital (a) – (b) 0,00 12 840,00 4 239,17 0,00 17 079,17 Capital 2007 Fund Capital (a) 10 940,00 12 840,00 11 699,32 35 479,32 Uncalled funds (b) 0,00 0,00 10 460,15 10 460,15 Called fund capital (a) – (b) 10 940,00 12 840,00 1 239,17 0,00 25 019,17

The fund capital represents the total amount receivable from the Member States for the relevant EDF fund as laid down in each of the Internal Agreements (11) between the Member States and the beneficiary ACP States and OCTs.

The initial allocation for the 9th EDF, which originally totalled EUR 10 555,15 million, has since been increased by an amount of EUR 105,00 million in 2004, which was released by the EIB in accordance with the provisions of Council Decision 2003/583/EC. This additional allocation is in favour of actions to be undertaken in the Democratic Republic of the Congo.

Article 2(2) of the Internal Agreement for the 9th EDF set a EUR 1 000,00 million reserve which was released from 2004 to 2007 by different Council decisions (12). Following the decision of the joint ACP/EU Council on 25th May 2007 (13), the Commission decided to launch a call for additional voluntary contributions to support the African Peace Facility in the framework of the intra ACP cooperation which increased the 9th EDF by EUR 39,17 million.

The 10th EDF entered into force on 1st July 2008 with a fund capital amounting to EUR 21 152,00 million, according to the Internal Agreement applicable to the 10th EDF. This amount has been increased with the Danish co-financing (14), amounting to EUR 2,40 million.

Uncalled funds represent the initial allocation not yet receivable from Member States.

Called fund capital represents the amount of the initial allocations which has been called up for transfer to the treasury accounts by the Member States in accordance with the procedure in Article 16 of the 10th EDF Financial Regulation.

Details of contributions called up and received during the year 2008 are shown in table 10.1.

Table 10.1

(EUR millions) Contributions % called up in 2007 received in 2007 called up in 2008 received in 2008 Uncalled 9th EDF Austria 2,65 69,96 69,96 78,18 78,18 197,69 Belgium 3,92 103,49 104,74 115,70 115,70 292,44 Denmark 2,14 56,50 56,50 63,57 63,57 159,65 Finland 1,48 39,07 39,07 43,78 43,78 110,41 France 24,30 641,52 651,52 719,16 719,16 1 812,82 Germany 23,36 616,70 641,70 692,03 692,03 1 742,69 Greece 1,25 33,00 33,50 36,50 36,50 93,25 Ireland 0,62 16,37 18,37 18,74 18,74 46,25 Italy 12,54 331,06 331,06 371,05 365,42 935,50 Luxemburg 0,29 7,66 7,86 8,35 8,35 21,63 Netherlands 5,22 137,81 137,81 154,26 154,26 389,42 Portugal 0,97 25,61 25,61 29,16 29,16 72,36 Spain 5,84 154,18 154,18 173,01 173,01 435,67 Sweden 2,73 72,07 72,07 80,28 80,28 203,66 United Kingdom 12,69 335,02 335,02 376,23 376,23 946,69 Estonia N.A. 0,03 N.A. Czech Republic N.A. 0,18 N.A. EIB N.A. 40,00 45,63 N.A. Total 100,00 2 640,00 2 679,17 3 000,00 3 000,00 7 460,15

In 2008, contributions of EUR 5,63 million from Italy were received via the European Investment Bank.

(11) OTHER RESERVES

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the most recently opened EDF after decommitment. The resources transferred from other EDFs increase the appropriation of the receiving fund and reduce that of the fund of origin.

Table 11

(EUR millions) Inter-EDF transfers 8th EDF 9th EDF 10th EDF Consolidate Total at 31.12.2008 to/from 6th EDF 94,00 490,36 584,36 to/from 7th EDF 532,82 1 135,08 1 667,89 to/from 8th EDF 2 762,16 17,16 2 779,32 2 779,32 to/from 9th EDF –2 762,16 79,87 –2 682,29 –2 682,29 to/from 10th EDF –17,16 –79,87 –97,04 –97,04 Total –2 152,51 4 307,72 97,04 0,00 2 252,25

1.3.3. Notes to the Economic Outturn Account

(12) OPERATING REVENUE

As from 2008, recovery orders are cleared against the related pre-financing and included in operating revenue at the moment they are authorised/issued. In accordance with Article 60 of the 10th EDF Financial Regulation, interest is charged to the Member States in the event of late payment of the called-up contributions. This interest results in an effective increase in the Funds’ overall appropriations as operating revenue.

(13) ADMINISTRATIVE AND FINANCIAL EXPENSES

This heading includes administrative and financial expenditure financed by interest and related to the devolution process in application of the provisions of articles 1 and 6 of the Internal Agreement applicable to the 10th EDF.

In addition, following Council Decision 599 on 21st June 2005, a complementary amount of EUR 90 million from the intra ACP allocation was reallocated to finance devolution. Expenditure for personnel and infrastructure in this heading amounted to EUR 25,60 million in 2007 and to 0 million in 2008.

(14) TOTAL EXPENSES/CASH BASIS

These amounts represent total payments for the Fund(s) in question during the 2008 financial year on a cash accounting basis, including advance payments and recovery orders. Cumulative figures are shown in the Report on Financial Implementation prepared by the Authorising Officer.

(15) ACCRUAL ADJUSTMENTS

Total expenditure has been restated to comply with the international accounting standard, IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer.

Table 15

(EUR millions) Accrual adjustments annual increase 2008 Notes 7th EDF 8th EDF 9th EDF 10th EDF increase 2008 for the 8th, 9th and 10th EDF Pre-financing 2 80,26 37,30 –6,39 –62,55 –31,64 Accrued Expenses –19,59 –30,29 21,40 0,01 –8,88 Eligibility to be confirmed 9.4 –7,97 –17,11 –61,90 0,00 –79,01 Invoices to be received 9.5 –83,69 – 115,23 223,78 1,24 109,79 — Estimated clearing of pre-financing 2.3 72,08 102,06 – 140,49 –1,22 –39,65 Total accrual adjustments 60,67 7,01 15,01 –62,54 –40,52

(16) TOTAL EXPENSES/ACCRUAL BASIS

Project expenditure by the EDF has been restated in accordance with the relevant international accounting standards. The expenditure for each aid instrument will be presented on a full accrual basis as and from the 2009 financial year, once the accounts have been migrated to the new IT (ABAC FED) system.

(17) FINANCIAL REVENUE

Financial revenue mainly comprises interest earned on European bank accounts and STABEX accounts. Interest revenue is allocated to the 10th EDF.

Table 17

(EUR millions) Interest earned during 2008 Notes 8th EDF 9th EDF 10th EDF total at 31.12.2008 total at 31.12.2007 EIB 17.1 0,00 2,16 2,15 2,49 European banks 17.1 2,45 6,47 8,92 9,80 Recovery orders 17.2 0,00 0,00 0,04 STABEX 17.3 4,03 –0,11 –0,11 3,81 6,18 Special Democratic Republic Congo contribution 17.3 0,06 0,11 0,17 0,14 Transfer to 10th EDF –2,39 –2,39 0,00 Total interest 4,03 0,00 8,63 12,66 18,65

(17.1) EIB and European banks interest revenue

The interest earned on accounts with European paying agents can be used to finance projects in accordance with Articles 1 and 6 of the Internal Agreement applicable to the 10th EDF. This interest results in an effective increase in the Funds’ overall appropriations.

(17.2) Interest revenue on late payments of recovery orders

This is interest earned on late payments of recovery orders by debtors. Such funds can be used for financing projects in accordance with Articles 1 and 6 of the Internal Agreement applicable to the 10th EDF. This interest results in an effective increase in the Funds’ overall appropriations.

(17.3) Interest revenue on the STABEX security accounts and the Special Democratic Republic Congo account

This represents the income generated by the STABEX security accounts and the Special Democratic Republic of the Congo account. Whilst such income appears to increase the total of the Fund it should be borne in mind that any income generated by these accounts is earmarked for a specific purpose and beneficiary state (see note 5).

1.3.4. Off balance sheet disclosures

Guarantees

Guarantees are held to secure pre-financing and released when the final claim under a project is paid. In accordance with the ‘prudence’ concept and in compliance with the provisions of IPSAS 19, contingent assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency. There are two values to disclose for this type of guarantee: the ‘nominal’ and the ‘on-going values’. For the ‘nominal’ value the generating event is linked to the existence of the guarantee. The nominal value is disclosed as contingent asset. For the ‘on-going’ value, the guarantee's generating event is the pre-financing payment and/or subsequent clearings.

At 31st December 2008 the ‘nominal’ value of guarantees received in respect of pre-financing amounts EUR 699,57 million (see table below) compared to EUR 410,25 million for the ‘on-going’ value.

Table 18

(EUR millions) Guarantees On pre-financing On guarantee withholding On performance Total 31.12.2008 Total 31.12.2007 7th EDF 105,80 8th EDF 93,98 18,88 46,66 159,52 259,36 9th EDF 605,59 167,18 243,51 1 016,28 639,04 10th EDF Total 699,57 186,06 290,17 1 175,80 1 004,20

2. REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

Previous EDFs

Decision 1/2000 of the ACP-EC Council of 27 July 2000 regarding transitional measures provides for some of the unallocated resources from previous EDFs to be used for programmes consistent with the relevant provisions of the Cotonou Agreement and put into early application under transitional measures.

Commission Decision 410/2001 of 16 March 2001, which fixes the allocations for the indicative programmes of the ACP countries under the ACP-EC Partnership Agreement, stipulates that the unallocated resources from previous EDFs up to a maximum of EUR 1,2 billion are to be used for implementation in accordance with the rules and procedures of the relevant EDFs, pending the entry into force of the Financial Protocol to the 9th EDF.

Commission Decision 1033/2001 of 15 June 2001 fixed the allocations for regional programmes and intra-ACP cooperation under the Financial Protocol to the ACP-EC Partnership Agreement.

Commission Decision 1252/2002 of 11 July 2002 increased the envelope intended for intra-ACP cooperation by EUR 60 million, from the general reserves of the 6th and 7th EDFs, and also provided for the use of these additional funds pending the entry into force of the Financial Protocol to the 9th EDF, in accordance with the rules and procedures applicable to the original EDFs.

Lastly, Decision 3/2002 of the ACP-EC Council of Ministers of 23 December 2002 took an amount of EUR 25 million from the unallocated resources of the 8th EDF (general reserve) and allocated it to regional cooperation under the ACP-EC Partnership Agreement.

As in past years, to ensure transparency in the presentation of the accounts for 2008, the tables below set out separately for each of the EDFs (7th and 8th) the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Regarding the latter, entry in the accounts and the presentation of accounts is based on Article 3(2) of Annex IV to the ACP-EC Partnership Agreement, as regards countries. That Article gives the ACP countries an A envelope to cover macroeconomic support and support for programmes and projects and a B envelope to cover unforeseen needs such as emergency assistance, debt relief initiatives and support to offset the adverse effects of instability in export earnings (15). For the regions, the accounts are set out according to the regional programming as referred to in Chapter 2 of the ACP-EC Partnership Agreement (i.e. regional indicative programmes and intra-ACP cooperation).

Under Point 4 of Annex Ib (Multiannual financial framework for the period 2008 to 2013) to the ACP-EC Partnership Agreement, the remaining balances and the amounts decommitted under these Funds between 31.12.2007 and the entry in force of the 10th EDF were transferred to the 9th EDF to ensure the working ability of the EU administration and to cover the ongoing costs to sustain running projects until the 10th EDF comes into force.

Since the 10th EDF came into force on 1 July 2008, the remaining balances and the amounts decommitted under these Funds have been transferred to the performance reserve for the 10th EDF. This reserve may be drawn on only under the conditions set out in Article 1.4 of the Internal Agreement on the 10th EDF.

As the 6th EDF was closed in 2006, the annual accounts no longer contain implementation tables for that EDF. However, implementation of the transferred balances can be found in the 9th EDF.

7th EDF

Given the state of progress of the 7th EDF, the Commission decided to close this fund on 31 August 2008 (Decision PE/2008/4803 of 29.8.2008).

All amounts committed, contracted and paid relating to contracts still open were transferred on that date (and not just the remaining balances as in the case of the 6th EDF). For that reason, the amounts transferred when closing the 7th EDF were much higher than those transferred when the 6th EDF was closed.

The transfers came to:

— EUR 740 980 526,27 for allocations and global commitments;

— EUR 690 996 406,08 for individual commitments;

— EUR 563 402 665,70 for payments already made and transferred.

The balance of outstanding commitments transferred to the 9th EDF on closure came to EUR 177 577 860,57 consisting of a balance of EUR 127 593 740,38 to be disbursed and a balance of EUR 49 984 120,19 to be contracted.

In view of the transfer of the remaining balance from the 7th EDF, the updated allocation for the 9th EDF rises from EUR 15 907 435 336,39 to EUR 16 648 415 862,66 (not including interest).

The EUR 740 980 526,27 in allocations breaks down as follows:

— indicative programmes (subsidies) EUR 406 572 791,03 — Non-programmable aid (emergency aid, risk capital, Sysmin, STABEX, balance EDF5, SAF management support, HIPC debt relief initiative) EUR 334 407 735,24 — of which STABEX only EUR 133 859 893,00

Global commitments (projects) and individual commitments (contracts) have been transferred to the 9th EFD under a specific heading which enables the amounts transferred and their use to be identified.

The annual figures for the 7th EDF are presented in the 2008 annual accounts under the 7th EDF for the period 1 January to 31 August 2008 and under the 9th EDF for the period 1 September to 31 December 2008.

10th EDF

The ACP-EC Partnership Agreement signed on 23 June 2000 in Cotonou by the Member States of the European Community and the States of Africa, the Caribbean and the Pacific (ACP States) entered into force on 1 April 2003. The Cotonou Agreement was amended by the agreement signed by the same States in Luxembourg on 25 June 2005.

The EU Council Decision of 27 November 2001 (2001/822/EC) on the association of the overseas countries and territories (OCT) with the European Community entered into force on 2 December 2001. This Decision was amended on 19 March 2007 (Decision 2007/249/EC).

The Internal Agreement on the financing of Community aid under the multiannual financial framework for the period 2008-2013 in accordance with the revised Cotonou Agreement, adopted by the Representatives of the Governments of the Member States of the European Community on 17 July 2006, entered into force on 1 July 2008.

Under the Cotonou Agreement, the second period (2008-2013) of Community aid to the ACP States and OCT is funded by the 10th EDF with total funds of EUR 22 682 million, of which:

EUR 21 966 million allocated to the ACP countries in accordance with the multiannual financial framework in Annex Ib to the revised Cotonou Agreement;

EUR 286 million allocated to the OCT in accordance with Annex IIAa of the revised Council Decision on the association of the OCT with the European Community;

EUR 430 million for the Commission to finance the costs arising from the programming and implementation of 10th EDF resources, in accordance with Article 6 of the Internal Agreement.

On the date of entry into force of the 10th EDF, these amounts were supplemented by unexpended balances and are still supplemented by decommitted funds resulting from the system to guarantee the stabilisation of export earnings from primary agricultural products (STABEX) under the Funds prior to the 9th EDF. These balances and decommitted funds should be used and managed in accordance with the revised Cotonou Agreement and the Internal Agreement.

10th EDF allocations for the ACP States and regions are as follows (in EUR):

EUR 15 300 million for the national indicative programmes, of which:

EUR 13 500 million for the A envelopes;

EUR 1 800 million for the B envelopes, of which EUR 601 million as initial allocations and EUR 1 199 million as a reserve for subsequent allocations;

EUR 1 783 million for the regional indicative programmes;

EUR 683 million as a reserve for subsequent allocation to the national and regional indicative programmes following the mid-term and end-of-term reviews.

The tables annexed, concerning the amounts decided, contracted and paid, show net figures. Only Table 2.7 shows separately the amounts committed and decommitted and the amounts paid and recovered.

2.1. ALLOCATIONS AT 31.12.2008

Table 1.1

7th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriations Increases/reductions in aggregate resources at 31 December 2007 Increases or reductions in resources during 2008 Current appropriation ACP Lomé Grants 6 215,00 – 935,40 – 419,63 4 859,97 Interest-rate subsidies 280,00 –81,51 –0,49 198,00 Emergency aid 250,00 153,27 –0,93 402,35 Refugee aid 100,00 –16,14 –0,30 83,55 Risk capital 825,00 –11,62 –52,20 761,18 Stabex 1 500,00 196,69 – 133,86 1 562,83 Sysmin 480,00 –49,46 – 103,65 326,89 Transfer 5th EDF - 7th EDF 0,00 309,00 –13,37 295,63 Structural adjustment 1 150,00 –1,33 –7,13 1 141,54 Heavily indebted poor countries 0,00 40,00 –28,97 11,03 Intra-ACP allocation 0,00 50,00 0,00 50,00 Total ACP 10 800,00 – 346,49 – 760,52 9 692,98 OCT Grants 97,50 –14,33 –3,24 79,93 Interest-rate subsidies 6,00 –1,82 0,00 4,18 Emergency aid 2,50 –0,24 0,00 2,26 Refugee aid 0,50 –0,21 0,00 0,29 Risk capital 25,00 –2,51 0,00 22,49 Stabex 6,00 0,00 0,00 6,00 Sysmin 2,50 0,00 –1,17 1,33 Transfer 5th EDF - 7th EDF 0,00 8,61 –0,10 8,52 Total OCT 140,00 –10,50 –4,51 125,00 Total 7th EDF 10 940,00 – 356,99 – 765,03 9 817,98

Table 1.2

7th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) Lomé Cotonou Total ACP ACP Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Transfer 5th EDF - 7th EDF Structural adjustment Heavily indebted poor countries Intra-ACP Situation 31.12.2007 5 279,60 198,49 403,27 83,86 813,38 1 696,69 430,54 309,00 1 148,67 40,00 50,00 10 453,51 Transfer to 9th EDF (16) –8,87 –0,49 –0,01 –0,18 –0,01 –0,55 –10,12 Transfer Performance Reserve EDF10 (17) –7,14 –0,12 –6,00 –0,27 –0,06 –13,60 Closure of 7th EDF and transfer to 9th EDF – 403,61 0,00 –0,92 0,00 –46,20 – 133,86 – 103,64 –12,54 –7,07 –28,97 0,00 – 736,81 Situation at 31.12.2008 4 859,97 198,00 402,35 83,55 761,18 1 562,83 326,89 295,63 1 141,54 11,03 50,00 9 692,98





OCT Grants Interest-rate subsidies Emergency aid Refugee aid Rick capital Stabex Sysmin Transfer 5th EDF - 7th EDF Total OCT Situation 31.12.2007 83,17 4,18 2,26 0,29 22,49 6,00 2,50 8,61 129,50 Transfer to 9th EDF (16) –0,21 –0,21 Transfer Performance Reserve EDF10 (17) –0,07 –0,06 –0,13 Closure of 7th EDF and transfer to 9th EDF (18) –2,96 0,00 0,00 0,00 0,00 0,00 –1,17 –0,04 –4,17 Situation at 31.12.2008 79,93 4,18 2,26 0,29 22,49 6,00 1,33 8,52 125,00

Table 1.3

8th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Increases/reductions in aggregate resources at 31 December 2007 Increases or reductions in resources in 2008 Current appropriation ACP Lomé Grants 7 562,00 –2 305,16 –41,92 5 214,93 Interest-rate subsidies 370,00 – 276,30 –1,54 92,16 Emergency aid 140,00 –3,62 –0,06 136,32 Refugee aid 120,00 –8,76 –0,84 110,40 Risk capital 1 000,00 78,78 –11,36 1 067,42 Stabex 1 800,00 –1 081,35 4,03 722,68 Sysmin 575,00 – 463,29 –0,01 111,70 Structural adjustment 1 400,00 98,45 –1,54 1 496,92 Heavily indebted poor countries 0,00 1 060,00 1 060,00 Utilisation of interest income 0,00 37,38 37,38 Cotonou A envelope 0,00 430,57 –0,09 430,48 B envelope 0,00 254,58 0,00 254,58 Total ACP 12 967,00 –2 178,70 –53,34 10 734,96 OCT Grants 115,00 –75,35 –0,08 39,57 Interest-rate subsidies 8,50 –7,36 0,00 1,14 Emergency aid 3,00 –3,00 0,00 0,00 Refugee aid 0,50 –0,50 0,00 0,00 Risk capital 30,00 –23,50 0,00 6,50 Stabex 5,50 –4,32 0,00 1,18 Sysmin 2,50 –0,01 0,00 2,49 Total OCT 165,00 – 114,04 –0,08 50,88 Total 8th FED 13 132,00 –2 292,74 –53,42 10 785,85

Table 1.4

8th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou Total ACP Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Structural adjustment Heavily indebted poor countries Utilisation of interest income A envelope B envelope Situation 31.12.2007 5 256,84 93,70 136,38 111,24 1 078,78 718,65 111,71 1 498,45 1 060,00 37,38 430,57 254,58 10 788,30 Transfer to 9th EDF (19) –23,09 –1,54 –0,01 –0,23 –1,00 –0,87 –26,75 Transfer Performance Reserve EDF10 (20) –18,82 –0,06 –0,61 –10,37 –0,01 –0,66 –0,09 –30,62 Security interest Stabex 4,03 4,03 Situation at 31.12.2008 5 214,93 92,16 136,32 110,40 1 067,42 722,68 111,70 1 496,92 1 060,00 37,38 430,48 254,58 10 734,96





OCT Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Total OCT Situation 31.12.2007 39,65 1,14 0,00 0,00 6,50 1,18 2,49 50,96 Transfer to 9th EDF (19) –0,06 –0,06 Transfer Performance Reserve EDF10 (20) –0,02 –0,02 Situation at 31.12.2008 39,57 1,14 0,00 0,00 6,50 1,18 2,49 50,88

Table 1.5

9th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation INcreases/reduction in aggregate resources at 31 December 2007 Increases or reductions in resources in 2008 Current appropriation ACP A envelope 5 318,30 4 213,57 –17,01 9 514,86 B envelope 2 107,90 – 799,26 –1,99 1 306,65 National allocation reserve 1 224,10 –1 224,10 0,00 0,00 CDE + CTA + Joint Assembly 164,00 12,09 –0,09 176,00 Long-term development reserve 257,85 – 257,85 0,00 0,00 Regional allocations 904,00 25,43 –0,11 929,33 Intra-ACP 300,00 2 963,89 –18,48 3 245,41 Implementation costs 125,00 0,00 0,00 125,00 Interest and other revenue 0,00 88,83 –19,86 68,97 Administrative expenditure 0,00 0,00 45,50 45,50 Special Congo allocation 0,00 108,61 –0,14 108,47 Transfer 6th - 9th EDF 0,00 26,11 –2,52 23,59 Transfer 7th - 9th EDF 0,00 0,00 736,55 736,55 Voluntary Peace Facility Contributions 0,00 39,17 0,00 39,17 Total ACP 10 401,15 5 196,48 721,85 16 319,49 OCT A envelope 0,00 250,16 –0,44 249,72 Use of C reserve 0,00 7,00 0,00 7,00 Long-term development reserve 144,00 – 144,00 0,00 0,00 Regional allocations 8,00 41,65 –0,07 49,58 Technical assistance envelope 2,00 0,00 0,00 2,00 Transfer 6th - 9th EDF 0,00 –0,06 0,00 –0,06 (21) Transfer 7th - 9th EDF 0,00 0,00 4,10 4,10 Total OCT 154,00 154,75 3,59 312,34 Total 9th EDF 10 555,15 5 351,23 725,44 16 631,82

Table 1.6

9th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP A envelope B envelope National allocation reserve CDE + CTA + Joint Assembly Long-term development reserve Regional allocations Intra-ACP Implementation costs Administrative expenditure Interest and other revenue Special Congo allocation Transfer 6th - 9th EDF Transfer 7th - 9th EDF Voluntary Contribution to Peace Facility Total ACP Situation at 31.12.2007 9 531,87 1 308,64 0,00 176,09 0,00 929,43 3 263,89 125,00 0,00 88,83 108,61 26,11 0,00 39,17 15 597,63 Transfer 9th EDF to administrative expenditure (22) –8,75 –0,61 –0,09 –0,11 –13,92 24,34 –0,42 0,45 Transfer Performance Reserve EDF10 (23) –8,27 –1,38 –4,56 –15,98 –0,14 –2,10 –0,27 –32,69 Transfer of undrawn interest to EDF10 interest –19,86 –19,86 Transfer previous EDFs to administrative expenditure (22) 37,14 37,14 Transfer 7th - 9th EDF (24) 736,81 736,81 Situation at 31.12.2008 9 514,86 1 306,65 0,00 176,00 0,00 929,33 3 245,41 125,00 45,50 68,97 108,47 23,59 736,55 39,17 16 319,49





OCT A envelope C envelope Long-term development reserve Regional allocations Technical assistance envelope Transfer 6th - 9th EDF Transfer 7th - 9th EDF Total OCT Situation at 31.12.2007 250,16 7,00 0,00 49,65 2,00 –0,06 0,00 308,75 Transfer 9th EDF to administrative expenditure (22) –0,38 –0,07 –0,00 –0,45 Transfer Performance Reserve EDF10 (23) –0,06 –0,07 –0,13 Transfer previous EDFs to administrative expenditure (22) Transfer 7th - 9th EDF (24) 4,17 4,17 Situation at 31.12.2008 249,72 7,00 0,00 49,58 2,00 –0,06 4,10 312,34

Table 1.7

10th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Increases or reductions in resources in 2008 Current appropriation ACP A envelope 0,00 11 372,00 11 372,00 A envelope reserve 13 500,00 –11 372,00 2 128,00 B envelope 0,00 737,05 737,05 B envelope reserve 1 800,00 – 737,05 1 062,95 Regional allocations 0,00 1 618,00 1 618,00 Regional allocations reserve 1 783,00 –1 618,00 165,00 NIP/RIP reserve 683,00 0,00 683,00 Intra-ACP allocations 0,00 2 325,00 2 325,00 Intra-ACP reserve 2 700,00 –2 325,00 375,00 Implementation costs 430,00 0,00 430,00 Interest and other revenue 0,00 28,40 28,40 Co-financing, A envelope, Benin 0,00 2,40 2,40 Performance reserve (not drawable), ACP 0,00 76,28 76,28 Total ACP 20 896,00 107,07 21 003,07 OCT A envelope 0,00 0,00 0,00 A envelope reserve 195,00 0,00 195,00 B envelope 0,00 0,00 0,00 B envelope reserve 15,00 0,00 15,00 Regional allocations reserve 40,00 0,00 40,00 Studies/Technical assistance OCT 6,00 0,00 6,00 Performance reserve (not drawable), OCT 0,00 1,00 1,00 Total OCT 256,00 1,00 257,00 Total 10th EDF 21 152,00 108,07 21 260,07

Table 1.8

10th EDF

Situation of appropriations: 31 December 2008

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP A envelope A envelope reserve B envelope B envelope reserve Regional allocations Regional allocations reserve NIP/RIP reserve Intra-ACP allocations Intra-ACP reserve Implementation costs Interest and other revenue Co-financing, A envelope, Benin Performance reserve, not drawable Total ACP Opening 10th EDF - 1.7.2008 13 500,00 1 800,00 1 783,00 683,00 2 700,00 430,00 20 896,00 Allocation of reserves 11 372,00 –11 372,00 737,05 – 737,05 1 618,00 –1 618,00 2 325,00 –2 325,00 0,00 Interest 2008 - EDF + Congo 8,63 8,63 Transfer, balance of undrawn interest, EDF9 19,86 19,86 Co-financing 2,40 2,40 Transfer performance reserve EDF10 (25) –0,10 76,28 76,18 Situation at 31.12.2008 11 372,00 2 128,00 737,05 1 062,95 1 618,00 165,00 683,00 2 325,00 375,00 430,00 28,40 2,40 76,28 21 003,07





OCT A envelope A envelope reserve B envelope B envelope reserve Regional allocations Regional allocations reserve Studies/Technical assistance OCT Performance reserve, not drawable, OCT Total OCT Opening 10th EDF - 1-07-2008 195,00 15,00 40,00 6,00 256,00 Transfer performance reserve EDF10 1,00 1,00 Situation at 31.12.2008 0,00 195,00 0,00 15,00 0,00 40,00 6,00 1,00 257,00

Table 1.9

EDF 7 - 8 - 9 - 10

INCREASES, REDUCTIONS AND TRANSFER OF RESOURCES DURING 2008

(EUR million) ACP Total 7th EDF Total 8th EDF Total 9th EDF Total 10th EDF Net variation Situation at 31.12.2007 10 453,51 10 788,30 15 597,63 0,00 36 839,44 Opening, EDF10 20 896,00 20 896,00 Transfers from previous EDFs to the 9th EDF before entry in force of 10th EDF –10,12 –26,75 37,14 0,00 0,27 Transfer from EDF9, OCT, to EDF9, ACP, to administrative expenditure before entry in force of 10th EDF 0,45 0,45 Transfer to EDF 10 (non-drawable reserve) –13,60 –30,62 –32,69 76,18 –0,73 Transfer to EDF 10 (balance of undrawn interest) –19,86 19,86 0,00 Interest accruing in 2008 from Stabex security accounts 4,03 4,03 Interest 2008 on EDF funds and special DRC allocation 8,63 8,63 Closure EDF7 and transfer to EDF9 – 736,81 736,81 0,00 Co-financing Benin 2,40 2,40 Situation at 31.12.2008 9 692,98 10 734,96 16 319,49 21 003,07 57 750,50





OCT Total 7th EDF Total 8th EDF Total 9th EDF Total 10th EDF Net variation Situation at 31.12.2007 129,50 50,96 308,75 0,00 489,21 Opening, EDF10 256,00 256,00 Transfers from previous EDFs to the 9th EDF before entry in force of 10th EDF –0,21 –0,06 0,00 –0,27 Transfer from EDF9, OCT, to EDF9, ACP, to administrative expenditure before entry in force –0,45 –0,45 Transfers to non-drawable EDF10 reserve after entry into force –0,13 –0,02 –0,13 1,00 0,73 Closure EDF7 and transfer to EDF9 –4,17 4,17 0,00 Situation at 31.12.2008 125,00 50,88 312,34 257,00 745,21 Total ACP + OCT 9 817,98 10 785,85 16 631,82 21 260,07 58 495,72 Total annual variation – 765,03 –53,42 725,44 21 260,07 21 167,06

Table 1.10

2.2. AGGREGATED ACCOUNTS

Table 2.1

EDF aggregated accounts at 31.12.2008

PROGRESS REPORT

(EUR million) Appropriations 7th EDF 8th EDF 9th EDF 10th EDF 7th, 8th, 9th and 10th EDF Lomé Programmable aid 4 939,90 5 254,49 10 194,39 Non-programmable aid 4 523,93 4 808,91 9 332,84 Transfers from other funds 304,15 764,18 1 068,33 Sundry revenue 37,38 37,38 0,00 Cotonou A envelope 430,48 9 764,58 11 372,00 21 567,05 B envelope 254,58 1 313,65 737,05 2 305,28 Regional allocation 978,91 1 618,00 2 596,91 Intra ACP allocation 50,00 3 245,41 2 325,00 5 620,41 CDE, CTA and Joint Assembly 176,00 176,00 Special allocation, Council Dec.4/04 108,47 108,47 Voluntary contribution Peace facility 39,17 39,17 Co-financing, A envelope, Bénin 2,40 2,40 Implementation costs and interest. 241,47 464,40 705,86 NIP/RIP reserve 683,00 683,00 National allocations reserve 205,00 205,00 Intra-ACP reserve 375,00 375,00 Country reserve 3 400,95 3 400,95 Non-drawable performance reserve 77,27 77,27 Total 9 817,98 10 785,85 16 631,82 21 260,07 58 495,72





EDF Aggregate total Annual figures At 31.12.2008 % of decision 2004 2005 2006 2007 2008 Decisions 7 9 817,98 100 % (58,42) (86,09) (126,67) (71,91) (765,03) 8 10 785,85 100 % (172,26) (275,05) (265,29) (211,03) (53,42) 9 16 631,82 100 % 2 638,08 3 420,76 3 186,70 3 455,11 774,73 10 4 766,39 22 % 4 766,39 Total 42 002,04 2 407,40 3 059,62 2 794,74 3 172,17 4 722,67 Assigned funds 7 9 817,98 100 % 121,42 110,52 (6,34) (5,51) (699,17) 8 10 539,24 98 % 848,67 471,95 202,48 35,03 54,62 9 14 207,44 85 % 1 747,48 2 070,90 2 914,80 3 317,33 3 163,22 10 130,40 1 % 130,40 Total 34 695,05 2 717,58 2 653,36 3 110,94 3 346,85 2 649,07 Payments 7 9 817,98 100 % 234,94 235,31 159,24 96,66 (522,80) 8 9 928,56 92 % 985,34 858,47 736,81 483,42 323,12 9 10 006,72 60 % 947,56 1 373,70 1 860,93 2 293,89 3 252,98 10 89,77 0 % 89,77 Total 29 843,03 2 167,84 2 467,48 2 756,98 2 873,97 3 143,07 * Negative figures represent decommitments

Table 2.2

EDF aggregated accounts at 31.12.2008

CLASS OF AID

7th EDF % 8th EDF % 9th EDF % 10th EDF % Total % (26) (26) (26) (26) (26) Lomé Programmable AID (NIP) Appropriations 4 939,90 5 254,49 10 194,39 Decisions 4 939,90 100 % 5 254,49 100 % 10 194,39 100 % Assigned funds 4 939,90 100 % 5 096,70 97 % 10 036,60 98 % Payments 4 939,90 100 % 4 760,36 91 % 9 700,26 95 % Non-programmable AID Appropriations 4 523,93 4 808,91 9 332,84 Decisions 4 523,93 100 % 4 808,91 100 % 9 332,84 100 % Assigned funds 4 523,93 100 % 4 787,24 100 % 9 311,17 100 % Payments 4 523,93 100 % 4 595,67 96 % 9 119,60 98 % Transfers from other funds Appropriations 304,15 764,18 1 068,33 Decisions 304,15 100 % 764,18 100 % 1 068,33 100 % Assigned funds 304,15 100 % 716,92 94 % 1 021,06 96 % Payments 304,15 100 % 603,03 79 % 907,18 85 % Sundry revenue Appropriations 37,38 37,38 Decisions 37,38 100 % 37,38 100 % Assigned funds 36,53 98 % 36,53 98 % Payments 34,22 92 % 34,22 92 % Total Appropriations 9 767,98 10 100,79 764,18 20 632,95 Decisions 9 767,98 100 % 10 100,79 100 % 764,18 100 % 20 632,95 100 % Assigned funds 9 767,98 100 % 9 920,47 98 % 716,92 94 % 20 405,36 99 % Payments 9 767,98 100 % 9 390,25 93 % 603,03 79 % 19 761,26 96 % Cotonou A envelope Appropriations 430,48 9 764,58 11 372,00 21 567,05 Decisions 430,48 100 % 9 764,58 100 % 4 062,61 36 % 14 257,66 66 % Assigned funds 424,06 99 % 8 350,98 86 % 49,52 0 % 8 824,57 41 % Payments 404,85 94 % 6 106,61 63 % 41,79 0 % 6 553,25 30 % B envelope Appropriations 254,58 1 313,65 737,05 2 305,28 Decisions 254,58 100 % 1 313,65 100 % 8,00 1 % 1 576,23 68 % Assigned funds 194,71 76 % 1 091,11 83 % 0,00 0 % 1 285,82 56 % Payments 133,47 52 % 843,66 64 % 0,00 0 % 977,13 42 % CDE, CTA and Joint Assembly Appropriations 176,00 176,00 Decisions 176,00 100 % 176,00 100 % Assigned funds 169,09 96 % 169,09 96 % Payments 150,34 85 % 150,34 85 % Regional allocation Appropriations 978,91 1 618,00 2 596,91 Decisions 978,91 100 % 0,00 0 % 978,91 38 % Assigned funds 761,96 78 % 0,00 0 % 761,96 29 % Payments 363,05 37 % 0,00 0 % 363,05 14 % Intra-ACP allocation Appropriations 50,00 3 245,41 2 325,00 5 620,41 Decisions 50,00 100 % 3 245,41 100 % 504,00 22 % 3 799,41 68 % Assigned funds 50,00 100 % 2 750,27 85 % 50,10 2 % 2 850,37 51 % Payments 50,00 100 % 1 601,23 49 % 18,20 1 % 1 669,43 30 % Voluntary contribution Peace Facility Appropriations 39,17 39,17 Decisions 39,17 100 % 39,17 100 % Assigned funds 37,18 95 % 37,18 95 % Payments 29,71 76 % 29,71 76 % Special allocation Council Dec.2003/583/EC Appropriations 108,47 108,47 Decisions 108,47 100 % 108,47 100 % Assigned funds 105,06 97 % 105,06 97 % Payments 103,57 95 % 103,57 95 % Implementation costs and interest Appropriations 241,47 464,40 705,86 Decisions 241,47 100 % 189,38 41 % 430,85 61 % Assigned funds 224,87 93 % 30,78 7 % 255,65 36 % Payments 205,51 85 % 29,78 6 % 235,29 33 % Total Appropriations 50,00 685,06 15 867,64 16 516,45 33 119,15 Decisions 50,00 100 % 685,06 100 % 15 867,64 100 % 4 763,99 29 % 21 366,69 65 % Assigned funds 50,00 100 % 618,77 90 % 13 490,52 85 % 130,40 1 % 14 289,69 43 % Payments 50,00 100 % 538,32 79 % 9 403,69 59 % 89,77 1 % 10 081,78 30 % RESERVE NIP/RIP 683,00 683,00 REGIONAL ALLOCATIONS RESERVE 205,00 205,00 INTRA-ACP RESERVE 375,00 375,00 COUNTRY RESERVE 3 400,95 3 400,95 Co-financing, A envelope, Benin Appropriations 2,40 2,40 Decisions 2,40 100 % 2,40 100 % Assigned funds 0,00 0 % 0,00 0 % Payments 0,00 0 % 0,00 0 % Performance reserve, non-drawable 77,27 77,27 Total Appropriations 9 817,98 10 785,85 16 631,82 21 260,07 58 495,72 Decisions 9 817,98 100 % 10 785,85 100 % 16 631,82 100 % 4 766,39 22 % 42 002,04 72 % Assigned funds 9 817,98 100 % 10 539,24 98 % 14 207,44 85 % 130,40 1 % 34 695,05 59 % Payments 9 817,98 100 % 9 928,56 92 % 10 006,72 60 % 89,77 0 % 29 843,03 59 %

Table 2.3

EDF aggregated accounts at 31.12.2008

ANALYSIS BY INSTRUMENT

ACP + OCT - 7th EDF

(EUR million) Appropriations Decisions Assigned funds Payments AGG.total Annual % AGG. total Annual % AGG. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 4 859,97 4 859,97 (419,63) 100 % 4 859,97 (360,10) 100,0 % 4 859,97 (273,85) 100,0 % Total non-programmable aid 4 487,38 4 487,38 (327,53) 100 % 4 487,38 (325,69) 100,0 % 4 487,38 (239,36) 100,0 % Interest-rate subsidies 198,00 198,00 (0,49) 100 % 198,00 100,0 % 198,00 100,0 % Emergency aid 402,35 402,35 (0,93) 100 % 402,35 (0,93) 100,0 % 402,35 (0,79) 100,0 % Refugee aid 83,55 83,55 (0,30) 100 % 83,55 (0,12) 100,0 % 83,55 (0,02) 100,0 % Risk capital 761,18 761,18 (52,20) 100 % 761,18 (52,20) 100,0 % 761,18 (13,93) 100,0 % Stabex 1 562,83 1 562,83 (133,86) 100 % 1 562,83 (133,86) 100,0 % 1 562,83 (131,34) 100,0 % Sysmin 326,89 326,89 (103,65) 100 % 326,89 (102,48) 100,0 % 326,89 (57,24) 100,0 % Structural adjustment 1 141,54 1 141,54 (7,13) 100 % 1 141,54 (7,13) 100,0 % 1 141,54 (7,07) 100,0 % Heavily indebted poor countries 11,03 11,03 (28,97) 100 % 11,03 (28,97) 100,0 % 11,03 (28,97) 100,0 % Transfer 5th EDF - 7th EDF 295,63 295,63 (13,37) 100 % 295,63 (9,25) 100,0 % 295,63 (6,25) 100,0 % COTONOU Intra-ACP allocation 50,00 50,00 100 % 50,00 100,0 % 50,00 100,0 % Total ACP (a) 9 692,98 9 692,98 (760,52) 100 % 9 692,98 (695,03) 100 % 9 692,98 (519,45) 100 % OCT Total indicative programmes 79,93 79,93 (3,24) 100 % 79,93 (3,11) 100,0 % 79,93 (2,57) 100,0 % Total non-programmable aid 36,55 36,55 (1,17) 100 % 36,55 (0,96) 100,0 % 36,55 (0,72) 100,0 % Interest-rate subsidies 4,18 4,18 100 % 4,18 100,0 % 4,18 100,0 % Emergency aid 2,26 2,26 100 % 2,26 100,0 % 2,26 100,0 % Refugee aid 0,29 0,29 100 % 0,29 100,0 % 0,29 100,0 % Risk capital 22,49 22,49 100 % 22,49 100,0 % 22,49 100,0 % Stabex 6,00 6,00 100 % 6,00 100,0 % 6,00 100,0 % Sysmin 1,33 1,33 (1,17) 100 % 1,33 (0,96) 100,0 % 1,33 (0,72) 100,0 % Transfer 5th EDF - 7th EDF 8,52 8,52 (0,10) 100 % 8,52 (0,06) 100,0 % 8,52 (0,06) 100,0 % Total OCT (b) 125,00 125,00 (4,51) 100 % 125,00 (4,14) 100,0 % 125,00 (3,35) 100,0 % Total (a) + (b) 9 817,98 9 817,98 (765,03) 100 % 9 817,98 (699,17) 100,0 % 9 817,98 (522,80) 100,0 %

Table 2.4

EDF aggregated accounts at 31.12.2008

ANALYSIS BY INSTRUMENT

ACP + OCT - 8th EDF

(EUR million) Appropriations Decisions Assigned funds Payments AGG. total Annual % AGG. total Annual % AGG. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 5 214,93 5 214,93 (41,92) 100 % 5 059,96 34,45 97,0 % 4 725,28 227,20 93,4 % Total non-programmable aid 4 834,98 4 834,98 (11,33) 100 % 4 812,46 0,61 99,5 % 4 619,26 52,24 96,0 % Interest-rate subsidies 92,16 92,16 (1,54) 100 % 92,16 (1,54) 100,0 % 68,41 1,77 74,2 % Emergency aid 136,32 136,32 (0,06) 100 % 136,31 (0,06) 100,0 % 136,31 (0,06) 100,0 % Refugee aid 110,40 110,40 (0,84) 100 % 109,01 (0,15) 98,7 % 101,89 1,36 93,5 % Risk capital 1 067,42 1 067,42 (11,36) 100 % 1 067,42 (11,36) 100,0 % 991,07 16,57 92,8 % Stabex 722,68 722,68 4,03 100 % 703,34 10,42 97,3 % 637,22 24,54 90,6 % Sysmin 111,70 111,70 (0,01) 100 % 110,81 2,40 99,2 % 107,58 6,84 97,1 % Structural adjustment 1 496,92 1 496,92 (1,54) 100 % 1 496,87 (0,07) 100,0 % 1 496,78 0,20 100,0 % Heavily indebted poor countries 1 060,00 1 060,00 100 % 1 060,00 100,0 % 1 045,78 98,7 % Utilisation of interest income 37,38 37,38 100 % 36,53 0,99 97,7 % 34,22 1,02 93,7 % Total 10 049,91 10 049,91 (53,24) 100,0 % 9 872,42 35,06 98,2 % 9 344,54 279,45 94,7 % COTONOU A Envelope 430,48 430,48 (0,09) 100 % 424,06 5,47 98,5 % 404,85 12,24 95,5 % B Envelope 254,58 254,58 0,00 100 % 194,71 13,90 76,5 % 133,47 29,77 68,5 % Total 685,06 685,06 (0,09) 100 % 618,77 19,37 90,3 % 538,32 42,01 87,0 % Total ACP (a) 10 734,96 10 734,96 (53,34) 100 % 10 491,19 54,43 97,7 % 9 882,85 321,46 94,2 % OCT Total indicative programmes 39,57 39,57 (0,08) 100 % 36,73 0,13 92,8 % 35,08 1,25 95,5 % Total non-programmable aid 11,31 11,31 100 % 11,31 0,06 100,0 % 10,63 0,40 94,0 % Interest-rate subsidies 1,14 1,14 100 % 1,14 100,0 % 1,14 100,0 % Emergency aid Refugee aid Risk capital 6,50 6,50 100 % 6,50 100,0 % 6,00 92,3 % Stabex 1,18 1,18 100 % 1,18 100,0 % 1,18 100,0 % Sysmin 2,49 2,49 100 % 2,49 0,06 99,9 % 2,31 0,40 92,7 % Total OCT (b) 50,88 50,88 (0,08) 100 % 48,04 0,19 94,4 % 45,71 1,66 95,1 % Total (a) + (b) 10 785,85 10 785,85 (53,42) 100 % 10 539,24 54,62 97,7 % 9 928,56 323,12 94,2 %

Table 2.5

EDF aggregated accounts at 31.12.2008

ANALYSIS BY AID INSTRUMENT

ACP + OCT - 9th EDF

(EUR million) Appropriations Decisions Assigned funds Payments AGG. total Annual % AGG. total Annual % AGG. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP A Envelope 9 514,86 9 514,86 (16,89) 100 % 8 166,23 1 499,63 86 % 6 011,10 1 768,75 74 % Macroeconomic support 2 309,88 (5,06) 2 268,19 232,77 2 018,00 388,44 Sectoral policies 7 204,98 (11,83) 5 898,04 1 266,86 3 993,10 1 380,31 B Envelope 1 306,65 1 306,65 (1,99) 100 % 1 084,36 215,04 83 % 841,71 191,07 78 % Compensation export receipts 170,17 133,64 16,94 101,27 11,00 Emergency aid 1 125,28 (1,99) 939,52 198,10 729,24 180,06 Heavily indebted poor countries 11,20 11,20 11,20 Regional allocation 929,33 929,33 (0,00) 100 % 722,06 121,73 78 % 353,69 138,15 49 % Intra-ACP allocation 3 245,41 3 245,41 (16,45) 100 % 2 750,27 473,65 85 % 1 601,23 468,48 58 % Other 176,00 176,00 100 % 169,09 1,88 96 % 150,34 16,10 89 % Implementation costs/Administrative expenditure 170,50 170,50 45,50 100 % 161,75 41,30 95 % 159,49 39,29 99 % Interest and other revenue 68,97 68,97 9,00 100 % 62,22 14,47 90 % 45,30 12,73 73 % Special allocation Congo 108,47 108,47 100 % 105,06 (3,13) 97 % 103,57 (1,67) 99 % Voluntary contribution Peace Facility 39,17 39,17 100 % 37,18 0,17 95 % 29,71 0,49 80 % Transfers from 6th EDF 23,59 23,59 (2,52) 100 % 19,88 (1,24) 84 % 11,43 1,31 57 % Transfers from 7th EDF 736,55 736,55 736,55 100 % 693,42 693,42 94 % 588,35 588,35 85 % TOTAL ACP (a) 16 319,49 16 319,49 753,21 100 % 13 971,53 3 056,92 86 % 9 895,92 3 223,04 71 % OCT A Envelope 249,72 249,72 17,42 100 % 184,75 65,88 74 % 95,51 19,13 52 % Macroeconomic support 14,64 10,53 0,02 8,53 0,02 Sectoral policies 235,08 17,42 174,22 65,86 86,98 19,12 B Envelope 7,00 7,00 0,00 6,76 3,30 1,95 1,95 Regional Allocation 49,58 49,58 100 % 39,90 33,27 80 % 9,36 5,27 23 % Studies/Technical assistance OCT 2,00 2,00 100 % 0,89 0,18 45 % 0,73 0,27 81 % Transfers from 6th EDF (0,06) (0,06) (0,00) 100 % (0,06) 100 % (0,06) 100 % Transfers from 7th EDF 4,10 4,10 4,10 100 % 3,67 3,67 90 % 3,32 3,32 90 % Total OCT (b) 312,34 312,34 21,52 100 % 235,91 106,30 76 % 110,80 29,94 47 % Total (a) + (b) 16 631,82 16 631,82 774,73 100 % 14 207,44 3 163,22 85 % 10 006,72 3 252,98 70 %

Table 2.6

EDF aggregated accounts at 31.12.2008

ANALYSIS BY INSTRUMENT

ACP + OCT - 10th EDF

(EUR million) Appropriations Decisions Assigned funds Payments AGG. total Annual % AGG. total Annual % AGG. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP A Envelope 11 372,00 4 062,61 4 062,61 36 % 49,52 49,52 1 % 41,79 41,79 84 % B Envelope 737,05 8,00 8,00 1 % 0,00 0,00 0 % 0,00 0,00 0 % Compensation export receipts 0,00 0,00 0,00 0,00 0,00 0,00 Emergency aid 0,00 0,00 0,00 0,00 0,00 0,00 Heavily indebted poor countries 8,00 8,00 0,00 0,00 0,00 0,00 Regional Allocation 1 618,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Intra-ACP Allocation 2 325,00 504,00 504,00 22 % 50,10 50,10 10 % 18,20 18,20 0 % Institutional and support costs 300,00 54,00 54,00 18 % 50,10 50,10 93 % 18,20 18,20 36 % Peace Facility 300,00 300,00 300,00 100 % 0,00 0,00 0 % 0,00 0,00 0 % Various intra ACP, other sectors programmed 1 725,00 150,00 150,00 9 % 0,00 0,00 0 % 0,00 0,00 0 % Implementation costs 430,00 183,38 183,38 43 % 29,78 29,78 16 % 29,78 29,78 100 % Interest and other revenue 28,40 6,00 6,00 21 % 1,00 1,00 0 % 0,00 0,00 0 % Total 16 510,45 4 763,99 4 763,99 29 % 130,40 130,40 3 % 89,77 89,77 69 % NIP/RIP RESERVE 683,00 REGIONAL ALLOCATIONS RESERVE 165,00 INTRA-ACP RESERVE 375,00 COUNTRIES RESERVE - COTONOU 3 190,95 Co-financing, A envelope, Benin 2,40 2,40 2,40 100 % 0,00 0,00 0 % 0,00 0,00 0 % Total ACP 20 926,80 4 766,39 4 766,39 23 % 130,40 130,40 3 % 89,77 89,77 69 % Non-drawable performance reserve ACP 76,28 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Total ACP + performance reserve (a) 21 003,07 4 766,39 4 766,39 23 % 130,40 130,40 3 % 89,77 89,77 69 % OCT A Envelope 0,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % B Envelope 0,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Regional Allocation 0,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Studies/Technical assistance OCT 6,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Total 6,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % NIP/RIP RESERVE 0,00 REGIONAL ALLOCATIONS RESERVE 40,00 COUNTRIES RESERVE 210,00 Total OCT 256,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Non-drawable performance reserve OCT 1,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Total OCT + performance reserve (b) 257,00 0,00 0,00 0 % 0,00 0,00 0 % 0,00 0,00 0 % Total (a) + (b) 21 260,07 4 766,39 4 766,39 22 % 130,40 130,40 3 % 89,77 89,77 69 %

Table 2.7

ANNUAL 2008 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual Decision 2008

(EUR million) Commitments Decommitments Net Lomé Grants 0,00 (58,29) (58,29) Total indicative programmes 0,00 (58,29) (58,29) Interest rate subsidies 0,00 (2,04) (2,04) Emergency aid 0,00 (0,07) (0,07) Refugee aid 0,00 (1,15) (1,15) Risk capital 0,00 (17,36) (17,36) Stabex (interest) 4,04 (0,01) 4,03 Sysmin 0,00 (0,02) (0,02) Transfer from other funds 0,00 (0,89) (0,89) Structural adjustment 0,00 (1,60) (1,60) Total non-programmable aid 4,04 (23,12) (19,08) Transfer from 6th edf 0,00 (2,52) (2,52) Transfer from 7th edf 0,00 (0,33) (0,33) Total 4,04 –84,26 –80,22 Cotonou A envelope 4 080,24 (17,19) 4 063,04 B envelope 8,00 (1,99) 6,01 Regional allocation 0,00 (0,00) (0,00) Intra-ACP allocation 504,00 (16,45) 487,55 Use of interest/Implementation Costs 243,88 0,00 243,88 Co-financing benin 2,40 0,00 2,40 Total 4 838,52 –35,63 4 802,89 Total 4 842,56 – 119,89 4 722,67





Annual Payments (27)

(EUR million) Paid Recovered (28) Net Lomé Grants 288,13 (35,57) 252,57 Total indicative programmes 288,13 (35,57) 252,57 Interest rate subsidies 1,80 (0,03) 1,77 Emergency aid 0,00 (0,07) (0,07) Refugee aid 1,59 (0,25) 1,34 Risk capital 20,86 0,00 20,86 Stabex 24,54 0,00 24,54 Sysmin 19,71 (0,00) 19,71 Transfer from other funds 0,22 (0,43) (0,21) Structural adjustment 0,21 (0,03) 0,17 Total non-programmable aid 68,93 (0,82) 68,12 Use of interest 1,02 0,00 1,02 Transfer from 6th edf 4,17 (2,86) 1,31 Transfer from 7th edf 29,46 (1,19) 28,26 Total 391,71 (40,44) 351,28 Cotonou A envelope 1 861,14 (19,22) 1 841,92 B envelope 224,80 (2,01) 222,79 CDE + CTA + joint assembly 17,86 (1,77) 16,10 Regional allocation 145,20 (1,78) 143,42 Intra-ACP allocation 489,50 (2,82) 486,68 Technical assistance - OCT 0,27 0,00 0,27 Voluntary contributions peace facility 0,49 0,00 0,49 Special congo allocation 1,72 (3,39) (1,67) Use of interest/implementation costs 81,83 (0,03) 81,80 Total 2 822,81 (31,02) 2 791,79 Total 3 214,52 (71,45) 3 143,07

2.3. SITUATION BY COUNTRY AND BY INSTRUMENT

The tables are attached.

Notes to the management accounts:

— In the tables, the figure ‘0.00’ indicates that the corresponding amount is between EUR –4 999 and EUR 4 999. Where no figure is given, the amount is zero. Countries with a nil balance in all columns are not listed in the tables.

— The heading ‘All countries’ refers to projects which cover a number of countries but are not financed by regional cooperation.

— The heading ‘Financial and administrative expenses’ represents projects financed by EDF interest or the envelope covering administrative expenditure.

2.3.1. 7th EDF

The figures in Tables 3.1.1 to 3.1.8 show the amounts relating to the transfer of projects, contracts and payments on closure of the 7th EDF (see point 4 ‘Appendix – Situation by country and by instrument’).

In the first column of tables 3.1.1 and 3.1.2, the allocation for ‘ACP regional cooperation’ (EUR 1 008,04 million) comprises the following:

Commission's regional cooperation target (ACP states only) 1 125,00 Target overrun (5,92) Transfers of unallocated resources in order to finance the programme of assistance to ACP countries for integration within the WTO 67,90 Amount transferred to the general reserve during 2000 in accordance with the transitional measures 10,00 Amount transferred to the general reserve during 2001 in accordance with the transitional measures (8,50) Amount transferred to the general reserve during 2002 in accordance with the transitional measures (2,20) Amount transferred to the 9th EDF during 2003 following the entry into force of Cotonou (0,70) Amount transferred to the 9th EDF during 2004 following the entry into force of Cotonou (49,10) Amount transferred to the 9th EDF during 2005 following the entry into force of Cotonou (8,26) Amount transferred to the 9th EDF during 2006 following the entry into force of Cotonou (34,41) Amount transferred to the 9th EDF during 2007 following the entry into force of Cotonou (12,44) Amount transferred to the 9th EDF before entry into force of the 10th EDF and to the 10th EDF after its entry into force (2,32) Amount transferred to the 9th EDF on closure of the 7th EDF (–70,96) Total at 31.12.2008 1 008,04

All the amounts of allocations correspond to the decisions, as the amounts not committed were transferred to the 9th EDF following the entry into force of Cotonou (Commission decision of 16 April 2003) or to the 10th EDF after its entry into force (1 July 2008).

2.3.2. 8th EDF

In the second column of tables 3.2.1 and 3.2.2, the allocation for ‘Regional cooperation’ (EUR 1 358,50 million) comprises the following:

Commission's regional cooperation target (ACP states only) 1 300,00 Council Decision 3/2000 in order to ensure the continuity of several activities pending the entry into force of the 9th EDF 306,00 Council Decision 10/2001 of 20.12.2001 on the use of unallocated resources from the 8th EDF 180,70 In accordance with the transitional measures (68,00) Council Decision 3/2002 of 23.12.2002 on the use of unallocated resources from the 8th EDF 54,20 Amount transferred to the 9th EDF during 2003 following the entry into force of Cotonou (317,33) Amount transferred to the 9th EDF during 2004 following the entry into force of Cotonou (5,01) Amount transferred to the 9th EDF during 2005 following the entry into force of Cotonou (31,62) Amount transferred to the 9th EDF during 2006 following the entry into force of Cotonou (20,83) Amount transferred to the 9th EDF during 2007 following the entry into force of Cotonou (23,81) Amount transferred to the 9th EDF before entry into force of the 10th EDF and to the 10th EDF after its entry into force (15,80) Total at 31.12.2008 1 358,50

All the amounts of allocations correspond to the decisions, as the amounts not committed were transferred to the 9th EDF following the entry into force of Cotonou (Commission decision of 16 April 2003) or to the 10th EDF after its entry into force (1 July 2008).

2.3.3. 9th EDF

In all tables the presentation takes into account the financial resources (envelope A, envelope B and implementation costs) used and the nature of the project (macroeconomic support, sectoral policies, emergency assistance, etc.).

The figures in Tables 3.3.1 to 3.3.8 show the amounts relating to the transfer of projects, contracts and payments on closure of the 7th EDF (see point 4 ‘Appendix – Situation by country and by instrument’).

2.4. OTHER MANAGEMENT INFORMATION

Table 4.1.1

SITUATION CONCERNING ‘DORMANT’ COMMITMENTS

The tables below show, for each of the allocations of the eighth and ninth EDFs, the commitments for which implementation is slow. A commitment is considered ‘dormant’ or ‘slow’ if, in the course of the 24 months preceding the end of the financial year 2008:

— no new contract has been concluded.

— no existing contract has been revised

— no payment has been made or advance cleared.

Pre-2003 dormant projects (old RAL) are not included in the table.

Slow commitments are in two categories:

projects which must remain open and projects