•M COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 541 final 
Brussels, 02.12.1994 
FIFTEENTH ANNUAL REPORT 
FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
ON 
THE IMPLEMENTATION OF FINANCIAL AND TECHNICAL ASSISTANCE 
TO ASIAN AND LATIN AMERICAN DEVELOPING COUNTRIES 
AT 31 DECEMBER 1991 
chapter i 
chapter 2 
ÇftapÇer 3 
Chapter 4 CONTENTS 
Jntrofluctjon 
The origins, aims and methods of 
giving assistance to Asian and Latin 
American (ALA) devloping countries; 
the structure of this report 
The 1991 programme of financial and 
technical assistance 
Funds 
Projects launched 
Regional distribution of projects 
Breakdown by type of project 
Assistance received from 1976 to 1991 
Commitments and payments 
Commitments by recipient country 
Utilization of payment appropriations 
Effect of aid in kind on total 
Other types of aid 
1991 commitments 
Assistance received, 1976 - 1991 
ECIP Page 
4 
8 
8 
9 
11 
14 
16 
16 
18 
22 
23 
24 
26 
29 
32 
3 
TABLES 
1. Commitment appropriations and actual commitments 
for the 1991 financial year 8 
2. Actual commitments by project and by recipient 
for the 1991 financial year 10 
3. Programme commitments by region: 1976-90 and 1991 13 
4. Community's programme commitments for 1991 broken 
down by sector 15 
5. Commitment appropriations, sums actually committed, 
and disbursements, by calendar year, period 1976-91 16 
6. Actual commitments, by recipient, period 1976-91 19 
7. Payment appropriations and utilization thereof, 
by calendar year, period 1976-91 24 
8. All types of aid: 1991 commitments 26 
9. All types of aid, broken down by region, 
period 1976-91 30 
ANNEXES 
I. Council Regulation (EEC) No 443/92 of 25 February 1992 
II. ALA developing countries 1991 programme: descriptive 
summaries of projects 
III. Financial and technical assistance to ALA developing 
countries: disbursements by calendar year (1977-91). 
CHAPTER l: INTRODUCTION 
The origins, aims and methods of giving assistance to Asian and 
Latin American (ALAÏ developing countries: the structure of this 
report. 
1.1. Community financial and technical cooperation with Asian and 
Latin American developing countries is funded from Chapter 
BT^s of the General Budget of the European Communities. The 
overall aims of cooperation in this field are laid down in 
Council Regulation (EEC) No 443/92 of 25 February 19921, 
which establishes the overall framework and guiding prin­
ciples for EEC operations in that regard. This regulation 
replaces Council Regulation (EEC) No 442/81 of 17 February 
1981. 
1.2. In November 1989, the Council drew up conclusions in the 
light of the information emerging from the report on the 
first thirteen years (1976-88) of ALA financial and 
technical cooperation. These conclusions stressed the need 
to adapt the aims and form of cooperation to the situations 
and levels of economic development of the countries in 
question, while continuing to concentrate on the most needy 
sections of the population and the most disadvantaged 
countries. 
1.3. In May 1990, at the request of the Council and the 
Parliament, the Commission proposed new policy guidelines 
for cooperation with ALA developing countries during the 
coming decade. 
1.4. On 4 February 1991f the Council adopted final conclusions 
on guidelines for cooperation with the ALA developing 
countries. covering in particular the priorities and 
sectors for consideration and the desirability of 
increasing the resources to be allocated to them and of 
enabling indicative medium-term programming for these 
resources to be undertaken. 
1.5. The conclusions embodied in the new regulation were that 
policy on cooperation with the ALA developing countries 
should in future follow two main directions: development 
aid to assist the poorest people and countries and economic 
cooperation based on mutual interest for countries and 
regions with considerable potential for growth. The 
*The full text of this Council Regulation 
may be found at Annex 1. 
5 
environment would be a vital consideration in both cases. 
1.6. The Commission has, in other words, devised a balanced 
set of instruments for use in cooperation with the ALA 
developing countries, consisting of financial and 
technical development aid and economic cooperation. 
1.7. Funding for the planned aid covers an initial period of 
five years (1991-95). The volume of Community financing 
deemed necessary for the implementation of the aid is ECU 
2 750 million, 10% of which will be allocated to the 
environment, especially the protection of tropical 
forests. 
1.8. An amount of ECU 1 069.8 million has been earmarked for 
the period 1991-92 under the financial perspective for 
1988 to 1992. For the period 1993-95, the amount will be 
included in whatever Community financial framework is 
then in force. 
1-9. Financial and technical assistance is targeted on the 
following major areas: 
(a) development of the rural sector and enhanced food 
security; 
(b) protection of the environment and natural resources; 
(c) the fight against drugs; 
(d) regional cooperation. 
1.10. Care must be taken that the human dimension of 
development is taken into account in all areas of action. 
Special attention will be given to women's participation 
in projects, child protection, ethnic minorities and 
demographic questions. 
1.11. The Community's aid must favour operations which have an 
effect on the structural make-up of the economy, and on 
the development of sectoral policies and institutions. 
1.12 Part of the aid (15% at the most) may be set aside for 
rehabilitation and reconstruction measures in the wake of 
all types of disasters and for operations that reduce the 
risk thereof. 
1.13. Economic cooperation is particularly aimed at 
establishing a climate of confidence, by supporting 
countries which pursue macro-economic and structural 
>!* 
policies that are open to trade and investment and 
conducive to technology transfer, in particular by 
protecting intellectual property rights. 
1.14. Economic cooperation covers three sectors in particular: 
(a) improvement of scientific and technological 
potential and of the economic, social and cultural 
environment in general, by means of training schemes 
and the transfer of know-how; 
(b) improvement of the institutional structure; 
(c) support for undertakings: trade promotion, 
training, and technical assistance schemes, 
establishment of contacts between undertakings in 
order to facilitate cooperation between them. 
1.15. The aid is provided in the form of grants and may be used 
to cover both the cost of imports and local costs. 
Wherever possible, indicative five-year programming is 
established, for each objective, country or, if 
appropriate, region. Projects can be financed by the 
Community on its own, or co-financed with its Member 
States or international bodies. Part of each project is 
usually financed by the country receiving the assistance 
(national contribution) taking into account its ability 
to do so and the specific nature of each operation. 
1.16. The procedures stipulate that the Commission must provide 
the Council and Parliament with information on the 
administration of the programme. This report, the 
fifteenth of its kind, has been produced to comply with 
that requirement. 
1.17. Regulation (EEC) No 443/92 also lays down procedures for 
the approval of development operations (projects and 
programmes). 
1.18. The Commission adopts financing decisions for the 
projects after receiving the opinion of a financing 
committee consisting of representatives of the Member 
States and chaired by one of its own staff. The 
committee meets several times a year and therefore 
examines projects in batches as they are ready. In 1991, 
the committee devoted six meetings to ALA aid decisions. 
1.19. EEC financial and technical cooperation with the ALA 
developing countries began in 1976, with appropriations 
V* 
totalling 20 million units of account.2 The sum devoted 
to such cooperation has increased steadily since, and was 
approximately ECU 357.24 million in 1991. 
1.20. These funds were used to finance devlopment operations 
and projects in 34 Asian, Latin American and African3 
developing countries. Assistance was also given to 
fifteen regional institutions and organizations operated 
by or operating in the countries concerned, and to five 
international bodies engaged in agricultural research. 
1.21. Chapter 2 describes the content of and procedures 
involved in financial and technical cooperation 
undertaken in 1991, breaking down the data by 
geographical area and field of investment. Chapter 3 
describes and analyzes cooperation activities for the 
period 1976 to 1991. Chapter 4 gives a brief description 
of other forms of assistance to developing countries in 
Asia and Latin America. 
2In this report, amounts are quoted in ecus. 
*A number of African countries received this type 
of aid until they became part of the ACP group in 
1984. Three countries or territories in the 
Middle East are in a similar situation. 
8 
CHAPTER 2 THE 1991 PROGRAMME OF FINANCIAL 
AND TECHNICAL COOPERATION 
FUNDS 
2.1 The budgetary authorities approved the allocation of 
ECU 357.24 million to Chapters B7-300O and B7-3010 of the 
budget for the 1991 programme of financial and technical 
cooperation for ALA developing countries.4 Table 1 
provides a breakdown of this allocation by region, and 
the amounts committed by the end of 1991. In nominal 
terms, and discounting carryovers, the appropriations 
for 1991 are 28% higher than those for 1990 (ECU 279.6 
million). 
Table 1 : " Commitment appropriations and actual commitments 
for the 1991 financial vear (ECU '000 000) 
1991 appropriations 
Actual commitments in 1991 . 
a) agricultural research 
b) projects and programmes 
of which, ordinary 
disaster relief 
S/TOTAL a) + b) (*) 
c) administration "of the programme 
Total commitments for 1991 Latin 
America 
134.29 
3.15 
127.99 
127.99 
0.00 
131.14 
3.15 
134.29 
37.6% 
! 
(*): includes continuation of previous projs.J 16.03 Asia 
222.95 
5.85 
211.25 
181.66 
29.60 
217.10 
5.85 
222.95 
62.4% 
49.82 TOTAL 
357.24 
9.00 
339.24 
309.65 
29.60 
348.24 
9.00 
357.24 
100.0% 
65.85 % 
2.5% 
95.0% 
86.7% 
8.3% 
2.5% 
100.0% 
2.2. The ECU 357.24 million of commitments for 1991 absorbed 
the year's entire budgetary allocation. Table 1 shows 
the actual levels of appropriations and commitments for 
1991, broken down by region and broad category of 
expenditure. Agricultural research was allocated 2.5% of 
the actual 1991 commitments, and programme administration 
2.5%. 
The allocation for financial and technical cooperation 
was divided into a 37.6% share for Latin America and 
4Not including ECU 13.0 million allocated to Iran as 
disaster relief for building hospitals. 
a 6 2.4% share for Asia. Projects and programmes for 
disaster relief absorbed ECU 30 million, 8.3% of the 
total. 
PROJECTS LAUNCHED 
2.3. Forty-three projects were approved in 1991 (29 projects 
in the 1991 programme and 14 following on from previous 
projects), for which commitments (not including those for 
the administration of the programme) totalled 
ECU 357.24 million, as compared with 1990 figures of 31 
projects and ECU 279.59 million commitments. Table 2 
lists these projects, the amounts contributed to them by 
the Community, and their total cost. 
2.4. Leaving aside disaster relief measures, the average 
Commnity contribution per project approved stayed at the 
same level as in 1990, i.e. ECU 8 million. The total 
Community commitment, ECU 357.24 million, .was 
supplemented by local contributions from public and 
private sources amounting to ECU 143.33 million and co-
financing from the Member States of ECU 35.28 million. 
10 
Table 2: Actual commitments by project and by recipient 
for the 199-1 financial year (ECU «000 000) 
Number Country Title Amount Cofinan. Local Total 
1. 2. "Mnan. cost 
ALA/83/27/NN/0 •BANGLADE5 
ALA/84/7/NN/0 *NEPAL 
ALA/85/15/NN/0 *CHiNA 
ALA/85/17/NN/0 *CHINA 
ALA/86/31/NN/0 *CHINA 
ALA/88/5/NN/0 «THAILAND 
ALA/90/13/NN/0 *BANGLADE' 
ALA/90/19/NN/0 MNDONESh 
ALA/91/3/NN/0 INDIA 
ALA/91/7/NN/O SRI LANK; 
ALA/91/11/NN/0 INDIA 
ALA/91/12/NN/0 BANGLADE 
ALA/91/13/NN/0 BANGLADE 
ALA/91/19/NN/O INDONESI 
ALA/91/20/NN/O CHINA 
ALA/91/28/NN/O ASEAN 
ALA/91/35/NN/0 INDIA 1- Normal projects 
1 -1-5— Asia 
>H IMPROVEMENT OF GRAIN STORAGE 
NATIONAL ADMIN. STAFF COLLEGE 
RUR.WATER SUPPLY AND SEWERAGE 
GANSU SUGAR BEET DEVELOPMENT 
RUR. IRRIGATION PROJECT GANSU 
JOINT SECRETARIAT OFFICE 
SH NAT.MINOR IRR.DEV.(NMIDP) 
\ PUNGUR UTUARA IRRIGATION 
HORTICULT./KERALA SUPPL.FERTIL. 
\ NATION.IRRIGAT.REHABILITION 
MINOR IRRIGATION KERALA 
SH POPULATON & HEALTH IV: UFIPP 
SH POPULATON & HEALTH IV: CSP 
ft N.BALI IRR.& WATER SUPPLY 
INTENSIF.CROP PROO./XIUJIANG 
REG.RADAR REMOTE SENSING (ERS 1) 
SITMUKH & NOHAR IRRIGATION 
TOTAL ASIA 
ALA/91/21/NN/0 GUATEMA 
ALA/91/23/NN/0 REGION. 
ALA/91/25/NN/0 REGION. 
ALA/91/29/NN/O EL SALV 
ALA/91/33/NN/0 REGION. 
ALA/91/36/NN/O NICARAG 
ALA/91/37/NN/0 REGION. 
S/TOTAL CENTRAL AMER 
ALA/83/10/NN/0 *PERU 
ALA/86/1/NN/0 'PERU 
ALA/86/17/NN/0 '80LIVI 
ALA/87/21/NN/0 *PEC 
ALA/90/24/NN/0 *PARAGUA 
ALA/91/1/NN/0 IDB 
ALA/91/2/NN/0 IDB 1.2. Latin America 
1.2.1. Central America 
LA DEVELOP.RURAl/HUEHUETENANGO 
A.T. -TELECOM. SECTOR 
PROGR.MOTHER AND CHILD CARE 
ADOR MICRO ENTERPRISES 
TREATMENT HOSP. WASTE 
UA LAND REFORM AND I.R.D./ RIO BLANCO 
PLANT AND ANIMAL HEALTH SUPPORT 
[CA 
1.2.2. South America 
MAJES PILOT PROJECT 
MICROPROJETS PAMPA/PUNO 
A PAC 
FISHERIES COOPERATION 
Y RURAL DEV.(SETTLING PEASANTS) 
SPEC. FUND SMALL PROJECTS 
SPEC. FUND TECHN. CONSULT. 0.36 
0.40 
0.22 
0.20 
0.58 
0.03 
38.36 
9.30 
28.70 
3.34 
11.80 
18.75 
20.00 
10.30 
3.60 
3.90 
31.83 
181.66 
12.00 
13.80 
16.00 
7.00 
4.90 
7:06 
6.40 
67.16 
1.10 
3.20 
0.73 
0.60 
10.40 
8.00 
2.00 0.36 
0.40 
0.22 
0.20 
0.58 
0.03 
38.36 
9.30 
0.17 7.89 36.76 
24.66 13.50 41.50 
3.07 14.87 
1.25 - 20.00 
20.00 
2.60 12.90 
3.60 
1.70 5.60 
3.30 16.70 51.83 
29.38 45.46 256.50 
5.80 17.80 
3.64 17.44 
16.00 
7.00 
3.70, 8.60 
2.56 9.62 
0.84 2.56 9.80 
0.84 18.26 86.25 
1.10 
3.20 
0.73 
0.60 
10.40 
8.00 
2.00 
* : Continuation of previous projects . 1. = Origin. 2.= Amount. 
11 
Table 2 (contd.): Actual commitments by project.and by recipient 
for the 1991 financial year (ECU '000 000) 
Number Country Title 
ALA/91/8/NN/O -BOLIVIA POTOSI WATER SUPPLY 
ALA/91/9/NN/O BOLIVIA POTOSI/QUINOA 
ALA/91/15/NN/0 COLOMBIA CREATING JOBS FOR URBAN YOUTH . 
ALA/91/26/NN/O ECUADOR FODERUMA PHASE II 
ALA/91/27/NN/O PERU MICROENTERPRISES 
S/TOTAL SOUTH AMERICA 
TOTAL LATIN AMERICA 
1. TOTAL NORMAL PROJECTS (Asia and. Latin America) taxnt 
0.50 
6.10 
6.30 
8.70 
13.20 
60.83 
127.99 
309.65 Cofinan. •••• Local Total 
1. 2. finan. cost 
0.06 - 0.56 
1.00 7.10 
0.85 7.15 
0.50 9.20 
2.26 15.46 
0.06 4.61 65.50 
0.90 22.87 151.76 
30.28 68.33 408.25 
2. Disaster relief projects 
ALA/87/5/CN/0 *BANGLA DESH CYCLONE PROTECTION 
ALA/91/16/CN/0 BANGLA DESH CYCL./SHELTERS-CUM-PR1M.SCHOOLS 
ALA/91/16/CN/A BANGLA DESH CYCL./SHELTERS-CUM-PRIM.SCHOOLS 
ALA/91/17/CN/A BANGLA DESH SUPPORT RECONSTR. SUPPLY CEMENT 
ALA/91/18/CN/A BANGLA DESH CYCL. PROTECT. PROJ II (PRIORITY 
2. TOTAL DISASTERS 
ALA/91/10/RR/0 CGIAR 
ALA/91/10/RR/0 CGIAR 0.38 
10.00 
0.72 
16.00 
2.50 
29.60 0.38 
G. 5.00 - 15.00 
0.72 
16.00 
75.00 77.50 
5.00 75.00 109.60 
3- Agricultural research 
CONTR.91 CIAT,CIMMYT,CIP,1SNAR 
CONTR.91 ICRISAT,IRR!,ISNAR 
3. TOTAL AGRICULTURAL RESEARCH 
ALA/91/7/EX/0 EEC (Acin 
ALA/91/9/EX/O EEC (con 3.15 
5.85 
9.00 3.15 
5.85 
9.00 
**• Administration of programme 
in costs, outside experts,) — Asia 
sultancy services /•• Latin Amer. 
4. TOTAL PROGRAMME ADMINISTRATION 
OVERALL T0TAL1+2+3+4: 5.85 
3.15 
9.00 
357.24 5.85 
3". 15 
9.00 
35.28 143.33 535.85 
: Continuation of previous projects. -|. = Origin. 2. = Amount. 
12 
Regional distribution of projects 
2.5. Table 3 shows the distribution of 1991 commitments by 
region and subregion , and by type of programme (ordinary 
or disaster relief; appropriations for the administration 
of the programme are not included). Ordinary projects and 
disaster relief projects in Asia received a total of ECU 
217 million (62% of the ECU 348 million made available) 
while those in Latin America received ECU 131 million 
(38%). 
2.6. Appropriations for 1991 were used for ordinary projects 
in seven countries in Asia - four in southern Asia 
(accounting for 82% of commitments to Asia) and three in 
South-East Asia (13% of commitments). The remaining 
commitments (5%) were concerned with a regional project 
and a contribution to agricultural research. 
2.7. Five countries and two regional institutions in Latin 
America received ordinary project funding. 39% of the 
total was used for South American and 51% for Central 
American projects. 42% of the commitments for this 
subregion were devoted to projects to assist regional 
institutions. 
13 
Table 3: Programme commitments by region 
for period 1976-90 and for 1991 (ECU '000 000) 
REGIONS 
ASIA 
1. REGIONAL (+.AG. RSCH.) 
2. SOUTH EAST 
3. SOUTHERN 
4- OTHER 
LATIN AMERICA 
5. REGIONAL (+AG. RSCH.) 
6. SOUTH AMERICA 
6.1. AS A REGION 
6.2. BY COUNTRY 
7- CENTR. AM.+ CARIB. 
7-1- AS A REGION 
7.2- BY COUNTRY • 
AFRICA 
TOTAL : Normal projects and 
agricultural research 
1976 - 1990 1991 
ECU million X ECU million X 
1670.90 68.6X 187.51 58.8X 
78.77 3.2X 9.75 3.1X 
464.54 19.IX 24.23 7.6X 
1099.54 45.2X 153.53 48.2X 
28.05 1.2X -
695.77 28.6X 131.14 41.2X 
40.15 1.6X 13.15 4.1X 
64.40 2.6X 0.60 0.2X 
176.55 7.3X 50.23 15.8% 
207.71 8.5X 41.10 12.9% 
206.96 8.5X 26.06 8.2X 
67.62 2.8X 
2434.29 100.OX 318.65 100.OX Disaster relief projects 
1976 - 1990 1991 
ECU million X ECU million % 
92.50 48.1X 29.60 100.OX 
20.00 10.4X 
67.25 35.OX 29.60 100.0% 
5.25 2.7X -
91.31 47.5% 
48.23 52.8% 
43.08 47.2% 
8.49 4.4% 
192.30 100.0% 29.60 100.0% TOTAL PiROGRAMHES 
1976 - 1990 1991 
ECU million X ECU million X 
1763.40 67.1X 217.11 62.3X 
78.77 3.OX 9.75 2.8X 
464.54 17.7X 24.23 7.OX 
1166.79 44.4X 183.13 52.6X 
33.30 1.3X 
787.08 30.OX 131.14 37.7X 
40.15 1.5X 13.15 3.8X 
64.40 2.5X 0.60 0.2X 
224.78 8.6X 50.23 14.4X 
207.71 7.9X 41.10 11.8X 
250.04 9.5X 26.06 7.5X 
76.11 2.9X 
2626.59 100.OX 348.25 100.OX 
Asia (Regional): 
Asia (South East): 
Asia (Southern) 
Other: 
Latin America (Regional) 
South America (Regional): 
South American (Countries) 
Central America and 
Caribbean (Regional): 
" (Countries): 
Africa: ASEAN, BAD, Mekong Committee 
Indonesia, Philippines, Thailand,+ Vietnam, Laos, China 
Afghanistan, Bangladesh, Bhutan, Burma, India, Maldives, Nepal, Pakistan 
Sri Lanka 
North Yemen, South Yemen, West Bank,Gaza Strip 
CFAD, CIM, ClfMYT, IADB, OLADE 
JUNAC, PEC 
Bolivian Colombia, Ecuador, Peru 
CASEI, CADESCA, CATIE, INCAP, IICA 
Costa Rica, Dominican Republic, Haiti, Honduras, Nicaragua, El Salvador, 
Guatemala, Panama 
Angola, Mozambique, Zimbabwe 
14 
Breakdown by type of project 
2.6. There has been a constant shift in the type of project 
and programme financed by the Community over the years 
towards operations focused on the development of 
institutions, credit for agro-industrial activities, 
fisheries, support for economic restructuring, and rural 
microprojects, at the expense of the more traditional 
forms like funding for rural infrastructure, individual 
irrigation projects and integrated rural development. 
This change is a response to both the Commuunity's policy 
of taking action in priority areas and the wishes of the 
project beneficiaries. Agricultural projects absorbed 45% 
of the 1991 commitments, compared with 75% between 1976 
and 1987. 
Table 4 shows the breakdown of projects by type in the 
1991 programme, together with additions to earlier 
projects. 
15 
TABLE 4: 1991 COMMITMENTS BROKEN 
DOWN BY PROJECT TYPE 
Area 
I. 1991 Programme No Of 
projects ECU '000 % of 
commitments 
1. Agriculture 12 
A. strategic planning 
B. agrarian reform 
C. infrastructure 
D. prodn./marketing 
E. support services 
F. agric. research 
G. microprojects and 
rural development 
H. irrigation 
2. Forestry/environment 
3. Fisheries 
4. Livestock 
5. Industry/crafts/ trades 4 
6. Social services 4 
7. General infrastructure 2 
8. Rebuilding/disasters 4 
9. Refugees 
10.Tech. assistance for 
public institutions 2 
11.Economic restructuring 
and adjustment 
12.Programme prepn., 
admin, and monitoring 2 1 
3 
2 
2 
4 132 422 
6 400 
34 500 
59 650 
4 400 
29 217 
15 800 
9 000 7 056 
38 400 
9 000 
20 700 
57 266 45.4% 
2.4% 
13.2% 
3?1% 
7.1% 
19.7 = 
2.2% 
11.8% 
20.5% 
1.5% 
10.0% 
5.4% 
3.1% 
TOTAL 1991 PROGRAMME 31 291 389 100.0% 
II. Additions to previous projects 
1. Agriculture 
D. prodn./marketing 
G. microprojects and rural 
development 
H. irrigation 
3. Fisheries 
7. General infrastructure 
8. Rebuilding/disasters 
10.Tech. assistance for 
public institutions 3 
3 
1 
1 
1 64 227 
600 
220 
380 
428 1 655 
14 334 
48 238 
TOTAL ADDITIONS 14 65 855 
TOTAL 1991 FINANCIAL YEAR 45 357 244 
16 
CHAPTER 3: ASSISTANCE RECEIVED FROM 1976 TO 1991 
3.1. Table 5 shows the commitments provided for and the sums 
actually committed and disbursed under Items 9300 and 
9310 (financial and technical cooperation for ALA 
developing countries) of the general budget for the 
period 1976-91. 
TABLE 5: COMMITMENT APPROPRIATIONS, SUMS ACTUALLY 
COMMITTED, AND DISBURSEMENTS, BY CALENDAR YEAR, 
PERIOD 1976-1991 (ECU '000 000) 
Calendar Commitment 
year appropri­
ations Actual 
commitments Disbursements 
for as % of year's 
year commitments 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 20.00 
45.00 
70.00 
110.00 
138.50 
150.00 
243.00 
212.20 
218.00 
264.00 
248.20 
172.81 
247.75 
283.00 
279.60 
357.24 21.00 
43.70 
29.70 
117.60 
132.50 
153.50 
134.70 
227.40 
249.30 
149.70 
268.60 
342.90 
264.00 
283.00 
279.59 
357.24 21.0 
42.2 
29 
115 
125 
137 
126 
213.0 
215.7 
108.8 
199.5 
123.4 
69.0 
67.0 
55.0 
11.3 100^ 
97! 
98 = 
98 = 
94 = 
90 = 
945 
94< 
87? 
73 = 
74? 
36 = 
26! 
24 = 
20? 
3 = 
TOTAL 3 059.30 3 054.43 1 660.22 54^ 
Commitments and disbursements 
3.2. Over the period 1976-91 as a whole, ECU 3 054 million was 
committed, accounting for almost all the appropriations 
in the budget. The total committed was allocated to four 
broad types of ALA aid operations: "ordinary" projects, 
disaster relief projects, agricultural research and 
programme administration. 
The amount disbursed for the same period was ECU 1 660 
million, i.e. 54% of the total committed. 
The disbursement percentage drops as the years progress 
17 
because recent projects are still in their early stages. 
A typical agricultural project (a major irrigation 
project,say) lasts six to eight years. 
Microprojects in rural areas, agricultural loan projects 
and some projects in industry last two to three years. 
Some projects, such as those relating to aid in kind, 
disaster relief, and agricultural research are completed 
and financed within the year. 
3.3. Most Community aid programmes are completed (actual 
disbursements reach 75%) during the fifth year following 
the date of the financing decision. Similarly, five 
years is the usual duration for which provision is made 
at the time of the decision. The pace at which financing 
for individual projects is disbursed varies widely from 
this rule and is difficult to predict. 
There are a number of explanations for this. 
Firstly, the appreciation in value in recent years 
of the ecu against the currencies in which suppliers 
are paid has made it possible to effect "savings" in 
the Community's contribution in the case of finished 
projects or to expand planned operations (e.g. 
irrigate larger areas) in the case of projects which 
are not yet complete. 
Secondly, there has been an increase in the share of 
local expenses met from the Community contribution. 
"Savings" against the appropriations allocated by 
the Community have been increasing more in those 
countries which have had success in their 
stabilization policies. Some countries have brought 
domestic inflation under control with deflationary 
economic or monetary measures coupled with a 
devaluation of their currency. 
Thirdly, international competition between suppliers 
of capital goods in recent years has kept many 
prices below those expected. 
18 
Commitments by recipient country 
3.4. Table 6 shows actual commitments over the period 1976-91 
for all the countries which have received technical and 
financial assistance from the Community. 
Of the total commitments for ordinary projects over this 
period (ECU 2 665 million), 29.7% went to Latin America, 
67.8% to Asia, and the remaining 2.5% to other areas. 
Latin America's share has, however, risen from 30% in 
1987 to 33% in 1988, 35% in 1989, 39% in 1990 and 41% in 
1991 (ECU 127.99 million out of ECU 309.65 million). 
3.5. The main beneficiaries in Latin America have been those 
countries involved in some form of integration (Central 
America, Andean Pact), because of the special emphasis 
the Community places on this type of policy, or those 
countries with the lowest revenues in which programmes 
for the poor in rural areas conform with the Community 
aid guidelines (Haiti, Bolivia and Peru in some years).In 
the past, considerable sums have also been allocated 
directly to institutions in Latin America (e.g. the 
Inter-American Institute for Cooperation in Agriculture 
in Costa Rica). 
3.6. The main beneficiaries of Community aid in Asia have been 
India (27.3% of total commitments for the period 1976-
91), Bangladesh (9.9%), Thailand (6.8%),Indoneais (6.4%) 
and Pakistan (5.4%). Regional and international 
institutions recieved 1.3%. 
19 
Table 6: Actual commitments, by recipient, 1976-91, 
1976 - 1981 -
1980 1985 1986 -
1990 1991 
CHINA 
INDONESIA 
LAOS 
PHILIPPINES 
THAILAND 
VIETNAM 
AFGHANISTAN 
BANGLADESH 
BHUTAN 
BURMA 
INDIA 
MALDIVES 
NEPAL 
PAKISTAN 
SRI LANKA 
VEST &XV. 7*D GAZA 
N30H YEMEN -
SOJLH YEMEN 
ADB 
ASEAN 
M=kcng Cbnrattee 1. ORDINARY PROJECTS 
26.60 
4.10 
8.00 
20.46 
2.40 
1.00 
32.70 
5.90 
86.40 
0.50 
5.20 
24.30 
21.70 
2.00 
2.80 
0.90 
0.40 12.00 
52.17 
1.20 
17.90 
93.74 
0.00 
0.00 
82.96 
9.00 
8.00 
206.50 
1.70 
14.00 
23.80 
20.00 
3.65' 
11.00 
2.74 
1.00 
14.63 
0.75 23.90 
71.44 
11.90 
51.40 
67.33 
70.79 
7.40 
3.95 
363.42 
4.56 
96.96 
8.80 
8.66 
0.00 
12.42 
SUBTOTAL FOR ASIA 245.36 576.74 802.93 
BOLIVIA 
COLOMBIA 
CC-STA RICA 
EL SALVADOR 
GUATEMALA 
HAITI 
HONDURAS 
NICARAGUA 
DOMINICAN REPUBLIC 
PANAMA 
CFAD 
CIM 
IDB 
OLADE 
JANDEAN PACT/JUNAC 
P.E.C. 
jCENTRAL AMERICA 
JCABIE 8.70 
2.90 
2.00 
7.70 
13.18 
2.80 
1.64 
2.00 
1.17 
8.58 
3.23 30.88 
4.00 
3.00 
11.60 
27.95 
11.80 
27.53 
24.16 
12.00 
1.40 
0.53 
26.02 
20.00 43.87 
12.00 
9.00 
48.60 
4.95 
6.00 
26.00 
6.50 
17.25 
14.14 
1.00 
4.00 
23.80 
6.00 
141.10 
32.00 10.00 
0.60 
41.10 
(contd.) 
20 
«toe-6 (contd.,: Actual, c^tftn^nts, b, recipialt, 1976.91, (ECU .000 00d) 
1976 -
1980 1981 -
1985 1986 -
1990 1991 TOTAL 
CADESCA 
CAT IE 
IICA 
INCAP 1.87 
1.80 4.82 
0.26 
1.71 
0.00 0.92 5.74 
2.13 
1.71 
1.80 0.2% 
0.1% 
0.1% 
0.1% 
SUBTOTAL FOR LATIN AMERICA 57.57 207.66 397.13 127.99 790.35 29.7%| 
ANGOLA 
MOZAMBIQUE 
ZIMBABWE 1.39 
3.60 
14.50 22.01 
26.12 23.40 
29.72 
14.50 0.9%| 
1.1% 
0.5% 
SUBTOTAL FOR AFRICA 19.49 48.13 0.00 67.62 2.5%| 
TOTAL 322.42 832.53 1200.06 309.65 2664.66 100.0%| 
BANGLADESH 
INDIA 
PAKISTAN 
SRI LANKA 
PHILIPPINES 
NORTH YEMEN 
SOUTH YEMEN 
BOLIVIA 
COLOMBIA 
ECUADOR 
PERU 
COSTA RICA 
EL SALVADOR 
HONDURAS 
MEXICO 
NICARAGUA 
NICARAGUA/HONDURAS 
HAITI 
DOMINICAN REPUBLIC 
DOM. REP./HAITI 
MOZAMBIQUE 
ANGOLA 
ZIMBABWE DISASTER RELIEF PROJECTS 
10.90 
3.00 
1.50 
2.49 
4.80 
3.99 11.00 
2.70 
0.00 
2.75 
2.50 
3.40 
3.90 
2.85 
0.00 
3.60 
1.10 
0.00 
3.20 
1.50 
2.50 
2.00 39.65 
20.00 
28.08 
3.50 
5.00 
15.30 
6.24 
4.85 29.60 69.25 
21.90 
2.70 
3.00 
20.00 
2.75 
2.50 
31.48 
3.90 
6.35 
6.50 
3.60 
15.30 
10 
24 
49 
20 
85 
80 
50 
2.50 
2.00 
3.99 31.2%| 
9.9% 
2% 
4% 
0% 
2% 
1% 
14.2%| 
.8% I 
.9% 
.9% 
,6% 
.9% 
0.5%| 
2.8% 
1%| 
4% 
2% 
2% 
7% 
1.1%| 
0.9% 
1.8% | 
2. TOTAL DISASTER RELIEF 26.68 43.00 122.62 29.60 221.90 100.0%| 
...(contd.) 
21 
Table 6 (contd.): Actual ccmmitments by recipient, 1976-91, (ECU '000 000) 
1976 -
1980 1981 -
1985 1986 -
1990 1991 TOTAL 
3. AGRICULTURAL RESEARCH 
CIMMYT 
CIAT 
CIP 
CGIAR 
ADB 
NORTH YEMEN 
ICRISAT 
IRRI 
CGIAR 2.95 
1.50 
1.50 
1.10 
5.52 
4.00 2.00 
3.00 
1.70 
5.35 
2.50 
3.20 
6.95 16.91 
21.10 3.15 
5.85 2.00 
5.95 
3.20 
25.41 
1.50 
1.10 
8.02 
7.20 
33.90 
3. TOTAL AGRICULTURAL RESEARCH 16.57 24.70 38.01 9.00 88.28 
ADMINISTRATION 6.00 21.50 21.81 9.00 58.31 
TOTAL COMMITMENTS 
(1+2+3+4) 371.67 921.73 1382.50 357.24 3033.14 
SUMMARY BY REGION (EOJ '000 000 ) 
ORDINARY PROJECTS 
DISASTER -RELIEF 
] AGRIC. RESEARCH 
TOTAL 1991 
ASIA LAT. AM.-
181.66 127.99 
29.60 
5.85 3.15 
217.11 131.14 
62.3% 3.7.7% TOTAL 
309.65 
29.60 
9.00 
348.25 
100.0% 1976 - 1991 
ASIA LAT. AM. 
1806.69 790.35 
122.10 91.31 
51.72 36.56 
1980.51 918.22 
68.3% 31.7% TOTAL 
2597.04 
213.41 
88.28 
'2898.73 
100.0% 
22 
Utilization of payment appropriations 
3.7. Payment appropriations and utilization rates for them for 
the period 1977-91 are summarized in Table 7 below and 
detailed in Annex IV. 
3.8. Payment appropriations and actual disbursements have 
increased at at an average rate of approximately 20% 
since 1977. Differences of over 100% between one year 
and the next have however been reported, especially 
during the early days of this cooperation programme. 
The overall level of utilization of payment 
appropriations (1977-91) exceeds 80%. This fifteen-year 
period divides into three phases, each associated with a 
different system for handling payment appropriations. 
Allocations in the first budgets were non-differentiated 
(payment appropriations were equal to commitment 
appropriations), an approach which proved unsuited to a 
technical assistance programme and which meant that 
implementation and expenditure could not keep pace with 
commitments. 
From 1979 to 1986, allocations were differentiated and 
unused appropriations were almost invariably carried over 
from one year to the next. This enabled the Commission 
to use the carryover as a "buffer", for coping with 
unforeseen early or late payments. This approach proved 
successful, and only 4.5% of the appropriations allocated 
(ECU 40 million out of ECU 900 million) were lost through 
non-utilization. 
Greater budgetary discipline was introduced in 1987 (with 
a formal amendment of the Financial Regulation in 1988) 
and by a return to the principle of administering 
appropriations on a year-by-year basis. Following some 
initial difficulties in 1987-88, the level of utilization 
has returned to a satisfactory level (93% in 1989 and 
100% in 1990). 
The explanations for the low rate of payment in 1991 are 
firstly, the changes in the Indian government's 
development policy which have slowed down the 
implementation rate of current projects, in particular 
the project to strengthen veterinary services for 
23 
cattle disease control (Project 89/4), and secondly, the 
new direction taken for the project to establish a 
regional payment system in Central America (Project 
89/12), which has brought project operations to a halt. 
3.9. Implementation of projects and the accompanying 
utilization of payments depend heavily on the 
beneficiaries' ability to absorb the funds, while the 
Commission has at its disposal only limited means of 
influencing events. 
The pace can sometimes be given an immediate boost by 
supplying additional technical assistance using the 
annual programme allocation for outside experts or 
support assignments undertaken by Commission officials. 
This approach is limited to a small numbr of projects 
recognized as being held up by a specific and soluble 
problem, however. 
The impact of changing the direction of the programme or 
its implementation procedures by agreement with the 
beneficiaries is gradual and is felt only after a year or 
more. An increase in project staff at Commission 
headquarters and in the delegations is vital if a 
substantial and lasting improvement in the speed of 
implementation is to be achieved. 
24 
Table 7: Payment appropriations and utilization thereof, by 
ra'lPndar vpar. nprind 197 -91. (FHl J000 000) 
Year 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
TOTAL Payment appropriations 
Current 
budget 
45.0 
40.8 
55.6 
22.0 
67.5 
168.0 
112.5 
118.0 
134.5 
210.0 
248.8 
198.0 
183.2 
181.6 
249.7 
2035.2 Carryover 
37.70 
35.60 
34.20 
14.10 
115.20 
66.40 
14.70 
. 0.90 
38.70 
132.10 
0.00 
n/a Total 
45.0 
40.8 
93.3 
57.6 
101.7 
182.1 
227.7 
184.4 
149.2 
210.9 
287.5 
330.1 
183.2 
181.6 
249.7 
n/a Disbursements 
Current 
budget 
6.5 
7.7 
18.6 
3.3 
53.4 
52.8 
28.6 
104.3 
133.7 
171.3 
154.3 
162.7 
169.6 
181.0 
170.9 
1418.0 Carryover 
"0.0 
35.6 
34.2 
14.1 
100.1 
41.9 
14.7 
0.9 
0.0 
0.0 
241.5 Total 
6.5 
7.7 
18.6 
38.9 
87.6 
66.9 
128.7 
146.2 
148.4 
172.2 
154.3 
162.7 
169.6 
181.0 
170.9 
1660.2 Utilization (%) 
Oirrent 
14 
19 
33 
• 15 
79 
31 
25 
88 
99 
82 
62 
82 
93 
100 
68 
n/a Carry­
over 
Too 
100 -
100 
87 
63 
100 
100 
n/a Total 
14 
19 
20 
68 
86 
37 
57 
79 
99 
82 
54 
49 
93 
100 
68 
n/a 
n/a : not applicable, as the amounts carried over could be counted twice 
into the figure given in the current budget for the preious year. 
25 
Effect o£ ajçl in Kind on total payments 
3.10 The figures for disbursements for each year (see above) 
include direct payments for ordinary projects and aid in 
kind. This form of aid has made possible a rapid 
transfer of resources for meeting local expenditure 
associated with projects in which the Community is 
involved. It can, however, only be of use in limited 
instances, those in which a country has a clear need for 
the goods in question and has the institutional structure 
necessary to handle the transfer of goods and resources 
from a material and financial point of view. An example 
of this is provided by India, which received an average 
of ECU 35 million per year in such aid (mainly fertilizer 
in bulk) between 1980 and 1989. 
Aid in kind accounted for an average 27% per year of the 
payments made for financial and technical cooperation 
over the period, with a high of 42% in 1983, after which 
there was a steady fall, with the level in 1989 being 
24%. The amounts allocated for such aid were reduced 
from 1988. The level of disbursements for ordinary 
projects has therefore actually been increasing. 
26 
CHAPTER 4: OTHER TYPES OF AID 
1991 commitments 
4.1. The Community's commitments to Asian and Latin American 
developing countries for 1991 in areas other than 
financial and technical cooperation are shown in Table 8. 
Commitments can be divided into three categories: 
development aid, economic cooperation and humanitarian 
aid. 
The figures in brackets are the total sums under the 
particular budget item, when countries other then the ALA 
developing countries are included. 
Table 8: All types of aid to Asian and Latin American 
developing countries (in ECU,'000 000) 
Part 1 (of 3): Development aid 
Chapter 
Article 
Item Title Total 
1991 as 
iations 
B7-3000 
3010 
B7-3030 Financial and technical coop­
eration with Asian and Latin 
American developing countries 357.24 
System for compensating for 
losses in export earnings for 
non-ACP least developed 
countries 
( 0.06 
0»07 56. 3^ 
0.0' 
B7-5010 Comm. unity contribution to­
wards schemes concerning 
developing countries carried 
out by non-governmental org­
anizations 46.90 
(104.28 ) 7.4% 
B7-20 Food aid 120.25 
(684.01 ) 18. 9'-
TOTAL Development aid 524*45 
(1 145 . 59- ) 82.6% 
27 
Table 8: All types of aid to Asian and Latin American 
developing countries (in ECU '000 000) 
Part 2 (of 3): Economic cooperation 
Chapter 
Article 
Item Title Total 
1991 
appropr­
iations as 
% 
B4-1040 Energy planning 
B4-1041 European Energy Charter 
and cooperation with third 
countries in the energy 
field 
B7-3001 Economic cooperation with 
3011 Asian and Latin American 
developing countries 
B7-3002 Measures to encourage region­
al or subregional integrat­
ion between Asian and Latin 
American developing countries 
B7-3003 Cooperation with Asian and 
3013 Latin American developing 
countries on energy 2.00 
9.41 ) 
1.36 
2.28 ) 0.3-' 
16.35 
3.22 
9.60 0.2% 
2.6% 
0.5' 
1.5' 
B7-3004 Training operations for 
3013 nationals of Asian and Latin 
American developing countries 
B7-3005 Operations to promote Commun-
3015 ity investment in Asian and 
Latin American developing 
countries in the context of 
economic and trade coop­
eration agreements 
B7-5020 Commercial and economic 
cooperation agreements 
with third countries 
( 12.35 
9.98 
1.37 
8.41 ) 1.9% 
1.6' 
0.2% 
TOTAL Economic cooperation 56.23 
( 64.56 ) 8.9' 
28 
Table 8: All types of aid to Asian and Latin American 
developing countries (ECU '000 000) 
Part 3 (of 3): Humanitarian aid 
Chapter 
Article Title 
Item Total 
1991 
appropr­
iations as 
% 
B7-3020 Aid towards self-sufficiency 
for refugees and displaced 
persons 
B7-5045 Programme of North-South 
cooperation schemes in the 
context of the campaign 
against drug abuse 
B7-5000 Aid to disaster victims in 
developing and other third 
countries ( 44.97 
46.02 ) 
4.41 
9.34 ) 
3.64 
122.70 ) 7.1% 
0.7% 
0.6' 
B7-5046 AIDS control in developing 
countries 1.04 
4.82 ) 0.2' 
TOTAL Humanitarian aid 
( 54.06 
182.88 ) 8.5' 
TOTAL ALL TYPES OF AID 634.74 
( 1 393.03 ) 100*0% 
4.2. Taking all types of aid together, the Community's 1991 
commitments amounted to ECU 634.74 million, of which 
82.6% (ECU 524.45 million) was allocated to development 
aid, 8.9% (ECU 56.23 million) to economic cooperation and 
8.5% (ECU 54.06 million) to humanitarian aid. 
29 
Assistance receivedf 1976-91 
4.4. Table 9 sets out by region and by country, for the period 
1976-91, all the Community's aid to the ALA developing 
countries, via the various instruments. It again gives the 
breakdown of the aid into three categories: development 
aid, economic cooperation and humanitarian aid. 
Out of the total, 86% (ECU 5 460 million) was allocated for 
development aid, 7% for economic cooperation (ECU 450 
million) and 8% (ECU 483 million) for humanitarian aid. 
Financial and technical assistance to the ALA developing 
countries accounted for 53% (ECU 2 899 million) of their 
development aid from the Community. Most of the remainder 
of the development aid was given via operations carried out 
by NGOs to assist the developing countries (Chapter B7-
5010)and via food aid (Chapter B7-2000). 
30 
Table 9: All types of aid, broken down by region, 
period 1976-91 (ECU '000 000) 
Development 
aid (1) Economic 
cooperation (2) 
of which: fin. and 
tech. assist. 
B7-3000/3010 Humanitarn. 
aid (-3) • 
924 
103 
979 
010 
359 
111 
407 
000 
006 
302 
000 
135 South East Asia 
CHINA 223. 
INDONESIA 198. 
LAOS 26. 
PHILIPPINES 129. 
THAILAND" 206. 
VIETNAM 43. 
CAMBODIA 14. 
BRUNEI 0. 
HONG KONG 0. 
MALAYSIA 0 
SINGAPORE 0 
SOUTH KOREA ° 
Southern Asia 
AFGHANISTAN. 3.287 
BANGLADESH 828.035 
BHUTAN 17.331 
BURMA 18.610 
INDIA Î 338.560 
MALDIVES 3.130 
NEPAL 33.460 
PAKISTAN 380.862 
SRI LANKA 137.968 
Other Asia 
WEST BANK AND GAZA 27.050 
NORTH YEMEN 43.804 
SOUTH YEMEN 26.188 
Asia - Regional 
ASEAN 31.850 
MEKONG COMMITTEE 1.150 
ASIA (REGIONAL) 20.520 
ASIA (COUNTRIES)- 0.000 
ASIA (GGIAR) 33.900 
REGIONAL 0.000 40.500 
169.810 
17.200 
97.300 
181.560 
2.400 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
1.000 
333.160 
16.400 
17.850 
750.550 
2.200 
24.160 
147.760 
56.840 
3.650 
25.510 
5.240 
31.850 
1.150 
20.520 
0.000 
33.900 
0.000 43.305 
9.351 
0.250 
9.811 
15.312 
2.332 
56.340 
0.100 
0.000 
3.223 
0.070 
0.000 
0.000 
4.661 
0.060 
0.620 
28.983 
1.680 
1.410 
5.936 
5.121 
0.000 
0.000 
0.130 
30.065 
0.600 
30.982 
1.057 
0.000 
0.355 4.050 
1.000 
7.733 
8.377 
22.512 
30.451 
0.000 
0.000 
3.250 
2.690 
0.000 
0.000 
22.400 
43.350 
17.391 
1.030 
47.603 
0.000 
1.407 
39.940 
2.370 
0.000 
0.750 
0.520 
2.055 
0.000 
4.597 271. 
208. 
34. 
147. 
244. 
75. 
70. 
0, 
3, 
6, 
0. 
0 279 
454 
962 
198 
183 
894 
747 
100 
256 
215 
070 
135 
000 
.000 
000 25.687 
876.046 
34.782 
20.260 
1415.146 
4.810 
36.277 
426.738 
145.459 
27.050 
44.554 
26.838 
63.970 
1.750 
56.099 
1.057 
33.900 
0.355 
(contd.) 
31 
Table 9 (contd.-): All types of aid, broken down by region 
period 1976-91 . (ECU'000 000) 
Development 
aid (1) Economic 
cooperation (2) 
of which: fin. 
and tech. assist 
B7-3000/3010 
South America (countries) 
BOLIVIA 
COLOMBIA 
ECUADOR 
PARAGUAY 
PERU-
VENEZUELA 
BRAZIL 
\RGSNTINA 
CHILE 
URUGUAY 
VARIOUS 205.453 
43.116 
54.325 
21.117 
183.965 
2.280 
47.407 
6.675 
66.109 
7.941 
0.000 
South America 
JUNAC 
3A~REGI0NAL [regional: 
65.000 
20.850 
Central America (countries) 
COSTA RICA 
EL SALVADOR 
GUATEMALA 
HAITI 
HONDURAS 
NICARAGUA 
DOMINICAN REP. 
PANAMA 
MEXICO 
CUBA 38.406 
48.860 
60.476 
87.528 
103.343 
218.267 
27.838 
4.776 
14.919 
34.933 
Central America (regional) 
CABIE 5572JO 
CA REGIONAL 182.200 
CA COUNTRIES 14.580 
Latin America (regional) 
LA REGIONAL 30.405 
OGIAR 25.410 
LA COUNTRIES * 0.544 122.260 
26.200 
29.950 
10.400 
86.200 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
65.000 
20.850 
36.500 
28.300 
38.000 
30.850 
57.960 
50.650 
19.300 
4.000 
6.240 
0.000 
55.230 
182.200 
14.580 
8.140 
25.410 
0.000 
OVERALL TOTAL 
% 
% 5 459.994 2 893 730 
86% 
100% 53% 1.749 
12.905 
9.186 
1.806 
11.176 
3.172 
16.037 
10.642 
15.106 
6.679 
0.150 
13.597 
1.048 
3.370 
1.251 
4.718 
0.430 
0.970 
7.528 
0.898 
0.738 
21.208 
0.010 
0.210 
10.321 
2.688 
31.560 
8.598 
449.505 
7% HumanitarnJ 
aid (3) 
78.597 
0.000 
2.552 
14.392 
11.601 
2.076 
7.667 
22.126 
29.966 
5.654 
12.480 
0.000 
0.000 
1.200 
0.000 
0.933 
0.148 
482.709 
8% 157.194 
21.898 
44 
64 
76, 
90. 
Ill, 
247. 
58. 
11. 
48. 
34. 328 
503 
795 
034 
980 
921 
702 
168 
607 
943 
55.440 
193.721 
17.268 
62.898 
9.290 
6 366.798 
100% 
ECIP 
4. Industrialists and businessmen in the Community, the ALA 
developing countries and non-mmember Mediterranean 
countries have an additional instrument which they can make 
use of, called "European Community Investment Partners" 
(ECIP). 
Firstly, ECIP offers assistance to initiatives generated by 
32 
the private sector for the purpose of looking into 
possibilities of setting up joint undertakings, and 
secondly, it contributes to the funding and development of 
human resources connected with such initiatives. In 1991, 
117 applications were approved. 
As a result of this programme's success, it has been 
decided to start preparing a Council regulation which would 
provide a solid and legal framework and which would enable 
the Commission to expand this instrument. 
Wè*^ 
27. 1 92 Official Journal of the European Communities No L 52/1 No L 52/2 Officii! Journal of Lh( European Communities 
(Acli whou publication ù obligatory) 
COUNCIL REGULATION (EEQ No 44J/92 
of 25 February 1992 
on financial and technical asaiatxusce to, and economic cooperation with, the 
developing countries in Asia and Latin America 
THE COUNCIL OF THE EUROPEAN COMWUNrTlES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 2J5 
thereof, 
Having regard lo the proposals from the Commission ('L 
Having regard to the opinion of the European Par­
liament (•), 
Whereas the Community has been pursuing a policy of 
financial and technical cooperation with the Asian and 
Latin American (ALA) developing countries since 1976 
and has, more recently, also embarked on economic 
cooperation with those countries ; whereas these forms of 
cooperation are part of in overall policy of cooperation 
with the developing countries as a whole, which includes 
expansion of their trade by integration into the multila­
teral trading system, by appropriate measures to be taken 
within the relevant international organizations and by 
specific measures such as the Community system of 
generalited preferences ; 
Whereas the current process of European construction 
and the growing influence of the Community in the 
developing countries worldwide justify the continuation, 
with due regard for the complementary nature of 
Community action, of mutually advantageous economic 
cooperation with, and Community development aid to, 
the Asian and Latin American developing countries, the 
extension of cooperation to other countries or sectors in 
the two regions, increased financing (or such policies and 
efforts to ensure that they are better adapted to national 
and local needs within each region ; 
Whereas the European Council has on • number of occa­
sions confirmed the Community'i political will to rein­
force its cooperation with regions of the world where the 
(') OJ No C II». 4. S. I»»l. p. • and 
OJ No C 214. 31. 10. I»*l. p. 4. 
0 OJ No C 2*7. 14. 10 l»»l. p. J5. level of development is still inadequate and to do so via 
an increased, coordinated and multi-faceted effort on the 
part of the Community and its Member Sûtes ; 
Whereas the European Council, meeting in Luxembourg 
on 28 and 29 June 1991, asked the Community and its 
Member States, through Community cooperation policy 
and by including clauses on human rights in economic 
and cooperation agreements with third countries, actively 
to promote human rights and the participation, without 
discrimination, of all individuals or groups in the life ol 
society, bearing in mind particularly the role of women ; 
Whereas the European Parliament has examined the 
matter in deuil on a number of occasions and has called 
for reinlorced cooperation and for a revision of present 
legislation in order to ensure that aid is more efficient 
and more transparent ; 
Whereas, on 4 February 1991, the Council adopted final 
conclusions on guidelines for cooperation with the Asian 
and Latin American developing countries, covering in 
particular the priorities and sectors for consideration and 
the desirability of increasing the resources to be allocated 
to them and of enabling indicative medium-term 
programming for those resources lo be undertaken ; 
Whereas both the European Parliament and the Council, 
while confirming traditional fields of action, have identi­
fied new priorities relating, in particular, to the environ­
ment, the human dimensio of development and the need 
(or economic cooperation to uke place in the mutual 
interest of the Community and its partner countries ; 
Whereas provision should be made for funding the aid 
relerred to in this Regulation and other aid lo the Asian 
and Latin American developing countries ; 
Whereas an amount of ECU 2 750 million is deemed 
necessary (or the implemenution of the aid covered by 
this Regulation and of other aid lo the Asian and Latin 
American developing countries for an initial five-year 
period (1991-1995); Whereas the amount deemed necessary for the funding 
period 1991-1992. under the present financial perspective, 
is ECU 1 069 J million ; 
Whereas the amounts to be committed for funding the 
aid during the period 1993 to 1995 should be included in 
the existing Community financial framework and whereas 
the Asian and Latin American developing countries 
should be given the same priority in the budget for 1993 
to 1995 as they were in the period 1991 to 1992; 
Whereas the volume of Community aid for the period 
after 1995 should be determined in accordance with 
existing procedures ; 
Whereas the rules governing the administration of finan­
cial and technical assisunce to, and economic cooperation 
with, the Asian and Latin American developing countries 
should be established ; 
Whereas it is necessary lo repeal Council Regulation 
(EEC) No 442/81 of 17 February 1981 on financial and 
technical aid to non-associated developing countries (') ; 
Whereas the Treaty does not provide specific powers of 
action (or the adoption of this Regulation, other than 
those conuined in Article 235, 
HAS ADOPTED THIS REGULATION : 
Artult I 
The Community shall continue and broaden Community 
cooperation with the Asian and Latin American devel­
oping countries, hereinafter referred to as 'the ALA devel­
oping countries', which arc not signatories to the Lomé 
Convention and do not benefit from the Community's 
cooperation policy with Mediterranean third countries. 
This cooperation, which shall be in addition to assisunce 
from the Member Sûtes, shall involve financial and tech­
nical development assisunce and economic cooperation. 
In this connection, the Community shall attach the 
utmost importance to the promotion of human rights, 
support (or the process of democratization, good gover­
nance, environmcnul protection, trade liberalization and 
strengthening the cultural dimension, by means of an 
increasing dialogue on political, economic and social 
issues conducted in the mutual interest. 
Articlt 1 
The aim of Community development and cooperation 
policies shall be human development. 
Aware that respect (or, and the exercise of, human rights 
and fundamenul freedoms and democratic principles are 
preconditions for real and lasting economic and social 
development, the Community shall give increased 
support lo the countries most committed to those princi-
(') OJ No L 41, 21. 2. I»ll. p. I. pies, particularly for positive initiatives to put them into 
practice. 
In the case of fundamenul and president violations of 
human righu and democratic principles, the Community 
could amend or even suspend, the irnplemenulion ol 
cooperation with the Sûtes concerned by confining 
cooperation to activities of direct benefit to those sections 
of the population in need. 
A null J 
All ALA developing countries shall be eligible for finan­
cial and technical assisunce and economic cooperation. 
The recipienu of aid and partners in cooperation may 
include not only Sûtes and regions but decentralized 
authorities, regional organizations, public agencies, local 
or traditional communities, private institutes and open-
tors, including cooperatives and non-govemmenul or­
ganisations. The needs and priorities of each country and 
each region shall be uken into account when granting 
the aid covered by this Regulation. 
Financial and technical assisunce 
An nil 4 
Financial and technical assisunce shall be urgrtcd prima­
rily on the poorest sections of the population snd the 
poorest countries in the two regions, through the imple­
menution ol programmes and projects in whatever 
sectors Community aid is likely to play an important role 
In particular, measures shall be implemented in areas 
where domestic, economic and human resources ire diffi­
cult to mobilize, but which are of strategic importance 
either for the development o( the countries concerned or 
(or the international community as a whole. 
An kit i 
Financial and technical assisunce shall give pnonry to 
developing the rural sector «nd improving the level of 
food security In this regard, integrating food aid into 
other development instruments may help this form of aid 
to fulfil iu specific role and objectives. Community 
support for the rural sector must also include measures in 
small towns serving rural areas, in order to promote 
employment. The improvement of the economic, legal 
and social environment for the private sector, including 
small and medium-sized undertakings, must also be uken 
into account. 
Protection of the environment and natural resources, ind 
susuinable development, shall be long-term pnorities. 
10 V», being the weighted average ol the necessary finan­
cial resources of the aid, for the period 1991 to 1995, shall 
be set aside lor projects specifically aimed at protecting 
the environment, in particular tropical lore-sis. 
Furthermore, consideration shall be given in all opera­
tions to protecting the environment and natural resources. 
No L 52/4 Official Journal of the European Communities 27 2 92 
27. 2. 92 Official Journal of the European Communities No L 52/3 
Special attention must be given to measures to combal 
drugs. Community cooperation with the ALA developing 
countries to promote the fighl against drugs shall be 
stepped up on the basis of a dialogue within the more 
general context of the economic development of the 
producer countries and their cooperation with the Euro­
pean Community. This cooperation shall cover measures 
involving both humaniunan and development aid. 
The human dimension of development shall be present 
in all areas of action, given the objective of this form of 
cooperation 
The cultural dimension of development must remain a 
consunt objective in all activities and programmes with 
which the Community is associated. 
Aid should accordingly be allocated, inter alia, to specilic 
projects lor the spread of democracy, good governance 
and human rights. 
Furthermore, care should be uken lo ensure not only thai 
the changes brought in by the protects and programmes 
do not have any detnmcnul effects on the position and 
role ol women, but that, on the contrary, specific 
measures, or even projects, are adopted in order to 
increase their active participation, on an equal footing, in 
the productive process and its results, and in social activi­
ties and decision making. 
Special attention shall also be given to child protection. 
Ethnic minorities warrant special attention through 
measures designed lo improve their living conditions 
while respecting (heir cultural identity. 
Special attention shall be given to demographic questions, 
in particular those relating to population growth. 
Community aid lor development projects and 
programmes must uke account ol macro-economic and 
sectoral problems and favour operations which have an 
effect on the structural make-up of the economy, on the 
development o( sectoral policies and on the development 
of institutions. In order to increase their effectiveness and 
obuin greater synergy, dialogue and cooperation with the 
relevant international institutions and bilateral financiers 
should be sought. 
Support for the national institutions of the developing 
countries, so as to strengthen their capacity (o manage 
development policies and projecu, represent» an are» of 
action likely to assume • stratégie role in the development 
process. 
Mainuining a suiuble dialogue between the developing 
countries ind the Community if »n important element in 
this context. Regional cooperation between developing countries shall 
be considered a priority area for financial and technical 
assisunce, particularly in the following fields : 
— cooperation on the environment, 
— the development of intra-regional trade, 
— the strengthening of regional institutions, 
— support (or regional integration and the csublishment 
of |oinl policies and activities among developing 
countnes, 
— regional communications, particularly as regards 
sundards, networks and services, including telecom­
munications, 
— research, 
— training, 
— rural development and food security, 
— cooperation in the sphere of energy. 
Part of the aid may be used (or rehabiliuuon and recon­
struction lollowing disasters ol all kinds and lor disaster-
prevention measures. 
Article 6 
Financial and technical assisunce, shall be extended to 
the relatively more advanced ALA developing countnes, 
in particular in the following specific fields and cases : 
— the spread of democracy and human rights, 
— prevention of natural disasters and reconstruction in 
their wake, 
— the fight against drugs, 
— the environment and natural resources, 
— strengthening institutions, especially public authori­
ties. 
— pilot schemes to help particularly under privileged 
strau of the population especially in large conurba­
tions. 
— regional cooperation and integration, with special 
attention being paid to regional cooperation and inte­
gration schemes allowing partnerships to be formed 
between poor and relatively advanced countries. 
Economic cooperation 
Artidt 7 
Economic cooperation, devised to serve the mutual in­
terests of the Community and its partner countries, shall 
contribute to the development of the ALA developing 
countnes by helping th«m build up than institutional 
capacity to as to create an environment more favourable 
lo investment and development and make the most of the 
prospects opened up by the growth of international trade, 
including the European single market, and by enhancing 
the role of businessmen, technology and know-how from 
all the Member Sûtes, particularly in the private sector 
and in small and madium-siwd undertakings-Economic cooperation shall be aimed in particular at 
esublishing a climate of confidence by supporting coun­
tries which pursue macro-economic and structural poli­
cies thai are open to trade and investment and conducive 
to technology transfer, in particular by protecting intellec­
tual property rights. 
Artidt I 
Economic cooperation shall include three sectors : 
1. Improvement of scientific and technological potential 
and of the economic, social and cultural environment 
in general by means of training schemes and the 
transfer or know-how. Scientific and technological 
cooperation, including such cooperation in the field of 
high technology programmes, may derive benefit also 
from the irnplemenulion of the mulliannual frame­
work research programme and from the provisions of 
Article I30N of the Treaty. Economic cooperation 
shall be directed chiefly at executives, economic deci­
sion-makers and instructors and shall cover all 
economic, technical and scientific fields, in particular 
energy, industrial and urban ecology and services tech­
nology. It should promote links between institutes and 
research centres on both sides and uke account of 
their capacity for the rapid acquisition of know-how 
and modem technology which can then be dissemi­
nated in the recipient country ; 
2. Improvement of the institutional structure, which must 
go hand in hand with a closer dialogue with partners, 
in order to make the economic, legislative, administra­
tive and social climate more conducive lo develop­
ment ; 
3. Support for undertakings, for example by means of 
trade promotion, training and technical assisunce 
schemes, by esublishing contacts between undcr-
ukings and by schemes to faciliute cooperation 
between them. 
Regional cooperation must be regarded as an important 
sector for economic cooperation, in particular with 
respect lo : 
— cooperation on industrial ecology, 
— intra-regional trade, 
— regional institutions for economic integration, 
— regional policies, 
— communications, including telecommunications. 
— research and training, 
— cooperation in the sphere of energy, 
— industrial cooperation. 
Implementing procedures 
Artidt 9 
Financial and technical assisunce and expenditure on 
economic cooperation shall be provided mainly in the form of granu financed from the general budget of the 
European Communities. 
Wherever possible, indicative five-year programming shall 
be established for each objective, country or, if appro­
priate, region. 
Co-financing with the Member States or other donors 
shall be sought through greater coordination The 
Community nature of the aid must be mainuined. 
Artidt 10 
1. Community funding of the aid referred lo in 
Article 9 shall cover an initial live-year period (1991-
1995). 
2. The amount of Community funding deemed neces­
sary for the irnplemenulion of the aid shall be ECU 
2 750 million, 10 '/. of which shall be allocated to the 
environment, especially the protection ol tropical foresu 
An amount of ECU I 069.8 million shall be earmarked 
for the period 1991-1992 under the financial perspective 
for 1988-1992. 
For the period 1993-1995, the amount shall be included 
in the Community financial framework then in force 
3. The budget authority shall determine the appropna-
uons available for each financial year, account being uken 
of the principles of sound (inancial management referred 
lo in Article 2 of the Financial Regulation applicable to 
the general budget ol the European Communities 
4. For the subsequent period covered by this Regula­
tion, the amount ol aid shall be determined in accordance 
with the procedures then in force. 
Artult II 
Financial and technical assisunce may cover all foreign 
currency cosu and local costs for carrying out proiecu 
and programmes, including, whenever necessary, inte­
grated programmes and sectoral proiecu. 
Maintenance and operating expenses (or economic coop­
ération operations, training and research programmes and 
development projects and programmes may, in particular, 
be covered However, except lor training and research 
programmes, such expenses may be covered only at the 
launching suge and in gradually decreasing amounts 
Systematic el forts must be made to seek contributions, 
particularly in financial form, from partners (countnes. 
local communities, undertakings, individual recipients) 
within the limits of their possibilities'and according to 
the nature of each operation. 
joaaaaxiaa»iifi, *m,j.>u.j *.<trfr 
27. 2. 91 Official Journal of the European Communities No L 52/5 No L 52/6 Official Journal of the European Communities 27. 2. 92 
The payment of taxes, duties and charges, and the 
purchase of land, shall be excluded from Community 
financing 
Study coats and the short- and long-term use of experts lo 
assist the recipients and the Commission in devising 
general policies, identifying and preparing operations and 
monitoring and evaluating them shall normally be 
covered by Community funds, either as part of the 
financing for individual operations oi separately. 
Anidt 12 
1. Part of the financial and technical assisunce and of 
the economic cooperation shall be sel aside for measures 
to deal with exceptional circumsunces, in particular 
projects to promote reconstruction in the wake of disas­
ters, and to meet unforeseen priorities, particularly in 
countries in which the human rights situation or other 
political conditions did not previously allow Community 
aid to be given. An amount of, at most, 15 V» shall be 
provided for to this end when the budgeUry authority 
adopts the annual appropriations. 
2. Any unallocated amount equivalent lo the 15 */• 
portion of the annual appropriations shall be released on 
31 July of the same year to be allocated in some other 
way. 
Artidt U 
Participation in invitations to lender and purchasing and 
other contracts shall be open on equal terms lo all natural 
or legal persons of the Member Sûtes. 
With regard to financial and technical assisunce, such 
participation shall usually be extended to the recipient 
Sute and may also be extended, case by case, to other 
developing countries. 
In exceptional cases which arc duly justified, other coun­
tries ol ongin may be allowed lor specific components. 
Artidt 14 — the indicative mulliannusl guidelines that apply to the 
main partner countries, 
— the areas of cooperation according lo subject or sector. 
Anidt It 
1. The Commission shall administer the financial and 
technical assisunce and the economic cooperation. 
2. The Commission shall be assisted by a committee 
composed of the represenuuves of the Member Sûtes and 
chaired by the rcprescnuiivc of the Commission. 
3. The represenutive of the Commission shall submit 
to the committee a draft of the measures to be uken. The 
committee shall deliver its opinion on the draft within a 
time limit which the chairman may lay down according 
to the urgency of the matter. The opinion shall be 
delivered by the majority laid down in Article 148(2) of 
the Treaty in the case of Decisions which the Council is 
required to adopt on a proposal from the Commission 
The votes of the represenutives of the Member Sûtes 
within the committee shall be weighted in the manner set 
out in thai Article. The chairman shall not vote. 
The Commission shall adopt the measures envisaged il 
they are in accordance with the opinion of the 
committee. 
If the measures envisaged are not in accordance with the 
opinion of the committee, or if no opinion is delivered, 
the Commission shall, without delay, submit to the 
Council a proposal relating to the measures to be uken 
The Council shall act by a qualified majonry 
If, on the expiry of a period of one month, the Council 
has not acted, the proposed measures shall be adopted by 
the Commission. 
4. On a regular basis, at least once a year, the Commis­
sion shall send the Member Suies whatever informauon it 
bas on known sectors, projects and operations which 
could be supported under this Regulation. 
5. In addition, coordination between Community 
cooperation schemes and bilateral schemes undertaken by 
Member Sûtes shall be carried out in this committee, 
through an exchange of information. and programmes financed during the year. The report 
shall conuin. as far as possible, information on the funds 
committed at national level during the same financial 
year. Il shall also conuin specific, dcuiled information 
(undertakings, nationality, etc.) on the contracts awarded 
for the irnplemenulion of the projects and programmes. 
In addition, at the end of each five-year period the 
Commission shall submit a comprehensive report giving 
the resulu of the regular evaluation undertaken to show 
not only how the projects and programmes have been implemented but also the advisability of mainuining or 
amending the aid guidelines. 
Artidt 17 
1. Regulation (EEC) No 442/81 is hereby repealed. 
2. Any reference lo the repealed Regulation shall be 
deemed to be a reference to this Regulation. 
Arnclt It 
This Regulation shall enter into (orce on the third day 
following thai of iu publication in the Official Journal of 
the European Communities. 
This Regulation shall be binding in iu entirely and directly applicable in all Member 
Sûtes. 
Done at Brussels, 25 February 1992 
For tbt Council 
The President 
Vitor MAJtTINS 
Aid projects and programmes for which Community 
funding exceeds ECU 1 million, and any lubsuniiat 
modifications and possible overruns of approved projects 
and programmes which exceed 20 */• of the amount ini­
tially agreed, shall be adopted according to the procedure 
laid down in Article 15 (3). 
The same procedure shall be followed for adopting the 
acts required to esublish : Artidt 16 
The Commission shall submit to the European Par­
liament and the Council an annual report on the irnple­
menulion of this Regulation. The report shall sel oui the 
results of irnplemenulion ol the budget as regards 
commitments and payments and presenung the projects 
% 
ANNEX II 
ALA developing countries 
1991 Programme 
Descriptive summaries 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: y 
Inter-American Development Bank (countries 
of Latin America) 
ALA/91/01 
Special fund for the financing of small 
productive projects 
ECU 8 000 000 
The project is to set up within the Inter-American Development 
Bank a special fund for the financing of small productive 
projects which will benefit the poorest sections of the 
population. 
The fund's resources will be made available to these population 
groups via private institutions such as foundations, 
cooperatives, and associations, to finance productive projects 
(agricultural,craft industries, services, etc.) or marketing 
ventures, with a view to generating extra income and/or creating 
jobs. 
The IDB will contribute up to USD 500 000 to such organizations 
which they will then pass on to their members or recipients, 
essentially in the form of loan programmes on conditions close 
to those of commercial credit in the country concerned, to which 
the recipients of this programme would not normally have access. 
The twin objectives of the project are to improve the living 
conditions of the poorest, marginalized population section, or 
of particular groups (indigenous people, women, the handicapped) 
and to strengthen grassroots organizations representing such 
groups. 
Annex II + 
Recipient: 
No: 
Title: 
EEC contribution: Inter-American Development Bank 
ALA/91/02 
Special fund for financing technical 
consultancy services 
ECU 2 000 000 
The aim of the project is to set up a special fund within the 
Inter-American Bank to pay for the short-term services of 
consultants who are Community nationals. 
They will be recruited to carry out studies, provide specific 
technical assistance and conduct training schemes. In general, 
such consultancy services will be performed in direct conjunction 
with the Bank's operational activities, to support projects 
financed or to be financed by the Bank. 
The Bank's technical capacity will be increased with the addition 
of European consultants. The fact that the recipient countries 
are provided with European consultants with specialist knowledge 
of particular areas should improve local capacity to absorb funds 
and the preparation and follow-up of development projects. 
The project is designed to step up the transfer of know-how and 
the exchange of experiences between Europe and Latin America, 
which should lead to a stronger European presence in the area 
and, in the medium or long term, should encourage joint 
activities. 
Annex II 
4 
Recipient;: Bolivia 
No: ALA/91/08 
Title: Water supply for the city of Potosi 
EEC contribution: ECU 500 000 
Type of project within the meaning of Article 3 of the Regulation 
Reserves for disaster. 
The various types of infrastructure work covered by the project will 
make it possible, in the short/medium term, to solve the problem of 
water supplies for the city of Potosi (population 120 000) which, at 
the end of the dry season, experiences an acute water shortage. The 
situation is made worse by the drought from which the region has been 
suffering for the last two years, with dire consequences for its 
inhabitants. 
The project will, under normal conditions, supply Potosi with a daily 
average of 70 litres of water per person - 40 litres per person in 
times of drought. 
One of the benefits of the project will be to improve water quality, 
for at present, the supply is untreated and since it is obtained from 
lakes is subject to all kinds of contamination. 
Since the project concerns such a vital matter, it will have 
considerable impact on the health of the population as a whole and of 
women and children in particular. 
Annex II 
y 
Recipient: Bolivia 
No: ALA/91/09 
Title: "Quinoa/Potosi" 
EEC contribution: ECU 6 100 000 
(Type of project within the meaning of Article 3 of the Regulation -
Rural development) 
Quinoa - the traditional Andean cereal adapted to the climate of the 
Bolivian high plateau (altiplano) - is for some Andean people, 
especially the peasants living in the south of Potosi department, the 
only important staple food crop, thanks to its high nutritional value. 
Any initiative to assist these population groups must include the 
development of guinoa. 
The programme, which is to run for four years, is intended to promote 
the cultivation of quinoa by coordinating activities such as 
production, research, improvement of minor infrastructure, loans for 
peasants and marketing initiatives. 
The programme will enable the 4 300 families living in the area (a 
total of 21 000 people from among the country's poorest and most 
marginalized groups) to improve both their diet and their economic 
situation, by increasing supplies of their basic food and generating 
income from the sale of surplus quinoa and livestock. 
Under the programme a number of initiatives, studies, research projects 
and the adaptation of methods currently used, whether or not 
mechanized, will be undertaken, with the aim of protecting soil and 
reclaiming land already laid waste, mainly because of over-intensive 
and unsuitable farming methods. 
In addition, the combination of growing quinoa along with livestock 
farming will be studied, organized and promoted, in an effort to 
increase productivity and ensure a minimum income when a harvest 
is poor, and to set up a scheme to provide loans and assistance for 
peasants and producer groups, for the marketing of quinoa. 
At a social level, the programme is in line with the priorities set by 
the government, aimed at helping the population on the altiplano, in 
particular those living in the parts worst affected by the crisis in 
the mining sector, with a view to ensuring their food self-sufficiency 
and preventing their moving away to coca-growing areas. 
From an economic standpoint, the expected increase in yield and the 
more profitable methods of quinoa cultivation should result in higher 
family incomes, thus encouraging peasants in other areas of the high 
plateau to switch to this tradition. 
Annex II 
4 
Recipient: 
No: 
Title: 
EEC contribution: Colombia 
ALA/91/15 
Creating jobs for urban youth 
ECU 6 300 000 
Against the background of poverty in which the population of 
Colombia's deprived urban areas live, the aim of the programme is to 
provide young people with an economic opportunity conducive to 
harmonious economic, social and technical development, thus 
constituting one of the best indirect weapons in the fight against 
illegal drug-related activities. 
These young people experience the highest level of under-employment and 
unemployment, suffer from a lack of technical training and have no 
access to normal lending to enable them to start a legal economic 
activity which will provide an income. This situation is particularly 
serious for single mothers. 
This programme will therefore seek to promote young people's 
entrepreneurial capabilities with sections relating to credit and to 
technical assistance aimed at improving productivity and business and 
credit management. Also planned are training and technical development 
sections. 
The programme will fall under the responsibility of the National 
Planning Department, in conjunction with the Consejeria para la 
Juventud. Muier y Familia. The main course of action will be to 
promote financial assistance for the target group, plus technical 
assistance for management, in order to enable the recipients to achieve 
a better level of income and output by giving them access to the new 
technology and commercial techniques forming part of the programme. 
The programme will be implemented over four years and will cost a total 
of ECU 7.15 million - ECU 6.3 million from the Community and ECU 0.85 
million from Colombia. 
Annex II 
Recipient: Guatemala 
No: ALA/91/21 
Title: Rural Development Programme in the Department 
of Huehuetenango 
EEC contribution: ECU 12 million 
The aim of the programme is to lay the foundations of self-sustaining 
development, based on agriculture and small craft industries producing 
non-luxury goods, in an area covering 15 municipal authorities in the 
north of the Department of Huehuetenango. 
Socio-economic indicators show the programme area to be one of the 
country's most depressed (GNP less than USD 100/year). Its 400 000 or 
so inhabitants are indigenous, non-Spanish speaking ethnic groups. The 
region is geographically isolated, mountainous and seriously under-
provided with social and production facilities; it also gets little 
attention from the authorities. The situation, serious enough in 
itself, may become disastrous with the return of refugees who left the 
country earlier; another EEC-funded project in the Department is now 
near completion and cannot cope with the problem. 
The programme is urgent, in other words. It will be carried out by the 
most rapid means available over three years, and will take three main 
directions: (a) providing basic social infrastructure (e.g. drinking 
water, health, access roads); (b) giving support to the production of 
basic foodstuffs and for small crafts;and (c) technical and social work 
training and community development. 
Under the authority of the Ministry for Development (MINDES), the 
programme will be completely decentrallized in the field (with its 
headquarters at Huehuetenango), and will be technically and financially 
autonomous in its implementation. The latter will be supervised by a 
team of expatriates (six technical experts and a co-director). 
The resources provided will be rapidly distributed by a method based 
on the active and voluntary participation of the beneficiaries or their 
local communities, from the identification phase through to 
implementation and management of the operations being funded. 
This participation, supported by the project's training staff, will 
consist mainly of providing labour for the construction works. 
The total cost of the programme is estimated at ECU 17 800 000 -
ECU 12 000 000 to be provided by the EEC, ECU 4 500 000 by the 
beneficiaries and ECU 1 300 000 by the Guatemalan government. 
Annex II 
Recipient: 
No: 
Title 
EEC contribution: Countries of Central America: Costa Rica, 
El Salvador, Guatemala, Honduras, 
Nicaragua, Panama 
ALA/91/23 
Regional programme for technical assistance 
and the development of the telecommunications 
sector in Central America 
ECU 13 800 000 
The programme aims t° increase regional and national capacity in the 
telecommunications sector by concentrating on their organization and 
management and, as a trial, on the actual infrastructure. 
The Community's speial effort in this sector - which is clearly 
identified in the Special Plan for Central America (PEC) - is justified 
by virtue of the low level of penetration of telecommunications 
services in the region, by the importance of improvements in this 
sector for the general process of development (opening up 
communications in certain areas, the introduction of new services, 
etc.) and of regional integration and, finally, by virtue of European 
expertise in this area. 
The operation consists of two complementary items: (a) a set of 
technical assistance measures to help the Technical Commission on 
Regional Telecommunications in Central America (COMTELCA) and the 
national operators, which mainly involves harmonizing national 
regulations, standardizing and aligning equipment, and drawing up a 
plan for using human resources and for specific training and 
consultation measures; (b) a set of specific projects in various 
Central American countries aimed primarily at developing rural 
telephone networks and stepping up transmission potential. 
The programme, which will be carried out under COMTELCA's 
responsibility, will be technically and financially independent in its 
implementation. The latter will be supervised by expatriate technical 
assistance (100 man/months). 
The total cost of the programme is estimated at ECU 17 640 000 -
ECU 13 800 000 to be financed by the EEC and ECU 3 840 000 by the 
region. 
In addition to covering technical assistance and training, Community 
funding will mainly be used to procure equipment and installations. 
Annex II 
4 
Recipient: Honduras 
No: ALA/91/24 
Title: Programme of credit and technical assistance 
for rural microenterprises (PROCATMER) 
EEC contribution: ECU 9 600 000 
The programme is part of the Honduran Government's efforts to offset 
the adverse social effects of its structural adjustment programme, 
through measures to relaunch the economy and provide social relief. 
These measures are coordinated by a new organization, the FHIS 
(Honduran Fund for Social Investment). 
The proposed investment is aimed at promoting the development of 
informal rural microenterprises, which represent considerable economic 
potential once they can overcome their principal weaknesses 
difficulties in obtaining loans and lack of management skills. 
The programme will therefore help to set up a revolving loan fund for 
rural microenterprises, which will be channelled through existing local 
financial institutions in Honduras, first and foremost via the 0PD 
(Private Development Organizations). 
Technical support and training operations will also be provided for 
these intermediary institutions, to strengthen their capacity to 
operate in the field by covering the cost of additional agents and 
funding individual technical assistance operations. 
While falling within the objectives and courses of action of the FHIS, 
the programme will be completely independent in its decision-making and 
its resources, under the control of two co-directors, one a Honduran 
and the other a European expatriate, head of the technical assistance 
team. 
The programme will cover a period of four years. Its total cost is 
ECU 10.9 million, to which the EEC will contribute ECU 9.6 million. 
Of the EEC contribution, ECU 5.5 million will go towards the revolving 
loan fund (to be funded also by the Honduran Government), with most of 
the remainder being used to support the agencies which will be 
operating the fund. 
This assistance should make a contribution to the integration of rural 
microenterprises in the economic process and thus ensure the continuity 
of the operation. 
Annex II 
Recipient: Central American countries: Costa Rica, 
El Salvador, Guatemala, Honduras, 
Nicaragua, Panama 
No: ALA/91/25 
Title: Mother and child health programme 
EEC contribution: ECU 16 000 000 
This project is a follow-up to the "child survival" project 
implemented in Central America from 1986 to 1991 with the financial 
support of the European Community and Italy. 
That project was aimed at redirecting mother-and-child health care 
policies in order to reduce the high mortality rate in the region. It 
involved seeking out high-risk groups and altering methods of care. 
The project was successful in promoting the practical implementation 
of new strategies: extension of health cover and a focusing of efforts 
on high-risk groups; decentralization and strengthening of grassroots 
structures; promotion of preventive methods and community involvement, 
incluuding the training oflocal community health workers; introduction 
or development of the concept of integrated mother-and-child care as 
part of a primary health care strategy, the establishment of 
appropriate technical, cultural and financial methods (low-cost 
approaches). 
The project was successful on all these fronts. Now these policies 
need to be extended in the field, broadened, consolidated and improved. 
But as well as extending them, they must by targeted more accurately, 
since they have favoured some areas arid groups more than others. They 
must be consolidated over the time scale since sometimes they have only 
borne fruit at the end of the project. And they must be improved 
wherever they can be made more effective through better monitoring or 
a strengthening of local management capacity. These are the project's 
aims, the purpose being to build on the process already embarked on in 
the earlier project in order to encourage a more widespread "take-off" 
on the local level : this is the chief goal of the present phase of the 
assistance. 
The project also aims at continuing to strengthen dialogue and foster 
cooperation on the Central American level in all areas affecting 
policies and the mother-child situation. In this way, policy conducted 
at national level can draw on this source for reinforcement and greater 
effectiveness. A further goal will be lending support to 
efforts to bring the countries in the subregion closer together. 
The programme is designed to last for five years and will cost an 
estimated ECU 16 000 000. It contains an item on regional operations, 
managed jointly by the group of countries, and another item on 
activities to be developed on the national level, in each country. The 
money for the latter will be mainly (90%) channelled towards health 
services on the periphery (areas, districts, provinces and the local 
level ,e.g. health posts and centres). 
Annex II 
Recipient: Ecuador 
No: ALA/91/26 
Title: Rural development in the area of Bolivar 
(FODERUMA, Phase II) 
EEC contribution: ECU 8 700 000 
This four-year programme has been devised to prolong, supplement and 
improve the operations which FODERUMA, with Community aid, has been 
carrying out in the Bolivar province since 1984 (Rural microprojects -
FODERUMA: NA/81/09). 
FODERUMA is a state organization for rural development, created by the 
Government of Ecuador Central Bank to aid the development of neglected 
rural communities through specific operations aimed at improving their 
incomes and living conditions. Community aid under this programme is 
specifically directed to the 60 000 or so members of the poorest and 
most destitute social levels of indigenous Indians in this depressed 
province, from which the rate of emigration is the highest in the 
country. 
The programme proposes: operations to identify needs and prepare 
plans, development of arable and pastoral yields through training 
advisory services and the making available of credit, promotion of 
small-scale industries and handcrafts, a programme for rehabilitating 
the access roads and tracks, another for health, and specific 
reafforestation operations. 
Through the programme, the 12 000 or so families will be able to 
achieve an improvement in their living standards: they will profit from 
the help needed to get the best of the few existing natural resources 
by judicious use of the credit system (farming, livestock raising and 
micro-industry), to improve their diet and strengthen their ability to 
run their own affairs and participate in group development projects; 
in addition, an adequate basic infrastructure will enable them to enjoy 
the benefits of easier transport and marketing facilities for their 
produce, and improved health and education. 
The programme coincides completely with the Ecuadorian Government's 
social policy. In its programme to fight poverty (Programa de atencion 
a la pobresa extremal, it gives priority to indigenous Andean 
communities which have traditionally been pushed to the fringes of 
society and suffered from a lack of economic and social organization. 
The objective of government policy is to raise peasants' income, reduce 
emigration, encourage a return to the country and to set up a basic 
productive infrastructure. 
Annex II 
Recipient: Peru 
No: ALA/91/27 
Title: Microenterprises/Informa1 sector 
EEC contribution: ECU 13 200 000 
The current social and economic situation in Peru is very precarious, 
with extremely high levels of poverty and unemployment. This 
particularly the case in the towns, where 70% of Peruvians live and 
where the "black economy" is the only means of survival for most 
people. 
The Peruvian government has recently made enormous efforts to get the 
country back into the international financial community by means of a 
structural adjustment programme begun on 8 August 1990, which takes 
account of the IMF recommendations, and negotiations with the Club of 
Peris to reschedule the foreign debt. All these measures, which are 
clearly necessary, will however have a direct, major impact in the 
short and medium term on the circumstances in which the neediest 
sections of the population live. 
The situation is exacerbated by the fact that the Peruvian people are 
becoming submerged in the climate of violence and drug-related 
problems. 
Because of this, the Peruvian government is giving priority to measures 
which can relieve existing levels of poverty and above all improve the 
disastrous situation of those dependent on the "black economy". 
These measures aim to consolidate and create jobs by setting up 
microenterprises and providing training and technical assistance geared 
to specific situations. The proposed programme's main objective is to 
help the informal sector so that it can contribute fully to job 
consolidation and creation. Loans from the credit programme plus a 
training and technical assistance programme, based on the know-how of 
Peruvian and other Latin American bodies, can substantially improve the 
lives of this population group. 
The programme will also involve the distribution of essential, 
commodities, this item to be financed from the counterpart funds. 
The five-year programme will be conducted in four towns (Lima, Callao, 
Arequipa and Chiclayo) affected by under-employment. By the end of the 
programme it is hoped to support some 26 000 microenterprises and 
improve the income and standard of living of the people directly 
or indirectly dependent on them. 
In addition to the above quantitative objectives, the programme will 
have a considerable impact on methods, by showing that support measures 
tailored to the specific situation of microenterprises can strengthen 
the sector. 
The local banking sector will have to be convinced that the proposed 
solutions are valid. If so,it may consider granting loans geared to the 
prevalent conditions of the "black economy". 
Annex II 
(Project ALA/91/27 continued) 
The total cost of the programme has been estimated at ECU 15 460 000, 
of which ECU 13 200 000 will be financed by the EEC and the rest by the 
recipient country. 
Annex II 
Recipient: Colombia 
No: ALA/91/31 
Title: Development of silk production 
EEC contribution: ECU 8 000 000 
The object of the project is to develop the silk industry by 
establishing a complete silk production cycle, which includes egg 
production, plant production, the rearing of silkworms, the industrial 
production of high-quality silk yarn and the promotion and organization 
of craft weaving. 
The project will directly assist 1 000 farming families from the 
economically depressed north Cauca area (Caloto, Corinto, Miranda, 
Padilla, Puerto Tejada and Santander de Quillichao), which enjoys ideal 
climatic and topographical conditions for the development of 
sericulture. 
The project allows for the active participation by women at craft level 
(craft yarns), agricultural level (production of basic foodstuffs) and 
industrial level (rearing of silkworms). The development of silk 
production will help to start a process in Colombia of export 
diversification and diminishing dependence on coffee exports. 
The operations carried out during the poject will come under the 
supervision of the Secretariat for the People's Integration (SIP), the 
coordinating body of the National Rehabilitation Plan, responsible for 
the area's economic development. 
The main strategy will be to promote an association of silk producers, 
establish an industrial structure and organize craft workshops. 
On this basis it is hoped to produce an exportable surplus of silk yarn 
and to raise productivity of basic foodstuffs, which will lead to an 
increase in income and employment for the direct beneficiaries of the 
project. In the medium term, it will provide a focus of development 
at regional level and in the long term, Colombia's inclusion as a silk 
producer on the world market. 
The project, which is in line with the Special Cooperation Plan for 
Colombia, will take place over a period of six years at a total cost 
of ECU 12.1 million, of which the EEC will finance ECU 8 million and 
Colombia the remaining ECU 4.1 million. 
Annex II €) 
Recipient: Costa Rica, El Salvador, Guatemala, Honduras, 
Nicaragua, Panama 
No: ALA/91/33 
Title: Regional programme of collection and treatment 
of hospital waste 
EEC contribn. ECU 5 000 000 
Out of a total 45 000 hospital beds available in the countries of the 
Central American isthmus about 20 000, almost 45%, are located in the 
capital cities. The volume of solid waste that is generated is 
consequently considerable: PAHO's estimate puts it at 20 000 t a year 
for the six capitals. A high proportion of this tonnage is heavily-
laden with germs and constitutes a potential source of grave 
infections. As such, to obviate all danger, it needs to be handled by 
trained personnel and subjected to appropriate treatment before 
destruction by incineration. 
While aware of the problem, the hospital authorities do not, except in 
rare cases, have available the necessary means to deal properly with 
this disease-ridden waste, which, instead, is taken in its untreated 
state to the puublic tips. So the water running off or percolating 
through the tips, not to mention the animals and human beings 
frequenting them, come into close contact with the infected materials, 
becoming in their turn carriers of the germs and potential sources of 
serious epidemics. There is also the very worrying possibility that 
the aquifers from which the cities draw their water may become 
polluted, thus adding to the rapid spread of the cholera epidemic 
already hitting the region. 
For this reason, it is vital to recognize the urgent nature of the 
proposed programme. 
The latter consists of two items: 
Firstly, at the national level, it will organize, in each of the 
capitals, a system for handling, collecting and treating dangerous 
waste, capable of serving all the hospitals which at present have no 
such system. Particular care will be taken over the operating methods 
adopted and the system of payments for the service, in order to ensure 
that the programme is sustainable. At the same time, training and 
extension work operations will be mounted for all the agents who will 
be involved. 
Secondly, the programme will establish machinery by which the various 
public authorities can work together to define a common legal basis 
applicable to the treatment of hospital waste, to regularly exchange 
experiences on the subject and to provide further training for senior 
staff from time to time. 
The programme, which will be technically and financially independent, 
will be carried out, over four years, with technical support from the 
PAHO. Its total cost is estimated at ECU 8 600 000, of which ECU 4 900 
000 is financed by the EEC and the remaining ECU 3 700 000 by the 
recipient countries. 
Annex II 
Recipient: Nicaragua 
No: ALA/91/36 
Title: Land reform and integrated rural development 
in the Rio Blanco area 
EEC contribution: ECU 13 500 000 
In this central area of the country inhabited by poor peasants, the 
economy, traditionally based on marginal family holdings which are 
rendered even more precarious by their doubtful ecological viability, 
has been hard hit by the war. In addition, a number of demobilized 
fighters have recently settled there. The project has the following 
aims, therefore: 
(a) to ensure the rehabilitation and improve the economic situation 
of the inhabitants, by increasing the profitability 
of their holdings (crops, livestock), while encouraging methods 
designed to guarantee that the improvement is sustainable in the 
long term and while providing the area with better means of 
communication so as to open it up to the outside world; 
(b) to improve the quality of life of peasant communities, not only 
through boosting individual incomes, but also by improving the 
public infrastructure and social services (drinking water, 
schools, health service); 
(c) to respond to the problem of the precarity of land tenure, by 
enabling peasants to acquire the land which they work and to 
encourage types of organization which would foster private 
ownership of holdings and larger production surpluses throughout 
the region. 
The object of the project is to provide a local response to a problem 
which is widespread in post-war Nicaragua, but more acute in the 
agricultural frontier zones which constituted the theatre of the war 
and furnished the protagonists in the conflict. Its aim is to relaunch 
the peasant economy using methods which are more independent, less 
destructive of the environment and a better guarantee of food security. 
It will also tackle the problem of land ownership and access and 
encourage methods of organization in the peasant world which are better 
adapted to the reality of the situation. Finally, it will foster the 
re-integration of ex-fighters into the national economy in a way that 
will lay the foundations for genuine national reconciliation. 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: Central American countries: Costa Rica, 
El Salvador, Guatemala, Honduras, Nicaragua, 
Panama 
ALA/91/37 
Regional programme of support for plant and 
animal health measures in Central America 
ECU 6 400 000 
The general objective of the programme is to strengthen and promote 
plant and animal health services in Central America in order to 
minimize the losses caused by pests and diseases, which are estimated 
at some ECU 1 200 million a year (20% of the agricultural GDP, which 
is ECU 6 000 million). 
The programme provides for activities in two key areas: 
quarantine and control of the main pests and diseases. animal 
1. In the first area, the facilities and infrastructure for 
quarantine will be strengthened to prevent the invasion of 
diseases not present in the region and the system of preliminary 
inspection of exports will be improved in order to reduce the risk 
of goods being rejected by the importing countries. 
2. The second subprogramme is designed to strengthen the control of 
existing diseases which are of greater importance to small and 
medium-sized producers: brucellosis and rinderpest, swine fever, 
and mango fruit fly. 
The programme will be carried out in colaboration with OIRSA (the 
Inter-Regional Organization for Animal Health), whose headquarters are 
in San Salvador, and with national health authorities. 
The programme will, however, be provided with an independent unit for 
implementation. This will be composed of Central American experts and 
two long-term European experts. It is planned to include the private 
sector (Producers' Associations, Chambers of Commerce) to guarantee 
actual implementation and financing in the long term. 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: India 
ALA/91/03 
Kerala Horticulture Development Programme 
ECU 28 700 000 
The overall aim of the programme is to improve the income of farmers 
in Kerala State by increasing the production of high-value 
horticultural crops and improving the marketing of horticultural 
produce through the development of modern processing and through a 
better access to the agricultural market. 
This will be achieved by financing pilot activities to be duplicated 
in other suitable parts of Kerala. The local population will be fully 
involved in programme implementation and at least 30 000 farmers are 
expected to benefit directly from the operation. 
It is estimated that the six-year programme will cost ECU 36 760 000, 
of which ECU 28 700 000 will be financed by the European Community. 
Programme management will be carried out by the Directors' 
office, supported by technical assistance experts. The programme 
corresponds to one of the Indian Government's priorities and, with an 
economic IRR of 32%, is considered highly likely to be sustainable. 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: Sri Lanka 
ALA/91/07 
National Irrigation Rehabilitation Programme 
ECU 3 340 000 
The project's main objectives are to stabilize and increase 
agricultural production and income in farming communities, through 
rehabilitation and improvements in operations and maintenance in 
existing small- and medium-scale irrigation schemes. The project, to 
be co-financed with the World Bank and the government of Sri Lanka and 
implemented over seven years, will be nationwide in scope and include: 
(a) rehabilitation and improvements to about 1 000 minor and 60 medium-
scale/major irrigation schemes covering about 37 500 ha; (b) 
establishment of farmers' organizations, support units and introduction 
of improved operating and management practices; (c) training for staff 
and farmers; (d) environmental protection works; and (e) studies and 
technical assistance. 
The total cost of the project is estimated at ECU 41 500 000, of which 
the Community will finance ECU 3 340 000 under financial and technical 
cooperation (Chapter B7-3000), to cover foreign training costs, farmer 
support units, environmental measures, technical assistance and 
studies. In addition, ECU 7 590 000 will be made available from 
Community food aid counterpart funds in Sri Lanka, to finance the local 
costs of the same items. 
The primary benefits of the project are stabilized and increased annual 
agricultural production of 120 000 t of paddy valued at about ECU 12 
500 000. The project will directly benefit over 100 000 farming 
families in its area. The economic IRR of the project is calculated 
as 31%. 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: India 
ALA/91/11 
Kerala minor irrigation project 
ECU 11 800 000 
The overall aim of the project is to increase rural income, employment 
opportunities and self-sufficiency, providing irrigation facilities 
which will contribute to a rise in agricultural productivity over an 
area of 20 200 ha, benefiting 70 000 farmers and their families. 
It is estimated that project implementation will take five years and 
that the total cost will be ECU 14 870 000, of which the European 
Community will provide ECU 11 800 000. 
The project will be managed by a project management unit supported by 
technical assistance. It corresponds to one of the Indian Government's 
priorities, and with an economic IRR of 44% , is highly likely to be 
viable. 
Annex II 
Recipient: Bangladesh 
No: ALA/91/12 
Title: Population and Health IV: Upazila Functional 
Improvement Pilot Project (UFIPP) 
EEC contribution: ECU 18 750 000 
This Community project is one out of over 50 projects in the health and 
population sector which will be implemented between 1992 and 1997 as 
part of the Fourth Population and Health Project (FPHP). 
Twelve donors, including the European Community and four Member States 
(B, G, NL and UK) will provide over ECU 500 000 000 under the FPHP in 
order to assist the government in: (i) reducing fertility; (ii) 
lowering morbidity and mortality in children under five; (iii) 
improving maternity care and reducing maternal mortality; (iv) reducing 
disability, morbidity and mortality from poverty-related diseases such 
as tuberculosis, leprosy and goitre; (v) enhancing the nutritional 
situation of women and children, and (vi) improving the effectiveness 
and efficiency of family planning, maternal and child health and other 
health services. 
In addition, and complementary to this project, the Community also 
intends to support a major contraceptive supply project in the FPHP. 
The two projects (at a total cost of ECU 48 750 000) would make the EEC 
together with Germany, the second largest donors in the FPHP (after 
IDA, which is to contribute USD 180 000 000). 
This project is a pilot scheme which together with seven other projects 
in the FPHP will aim at strengthening health and family welfare service 
delivery. More particularly, the Community project will aim at 
increasing the demand for and the use of health and family welfare 
services, especially among women, children, and low income groups in 
50 of the country's subdistricts (Upazilas). 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: Bangladesh 
ALA/91/13 
Population and Health IV: 
Supply Project (CSP) 
ECU 20 000 000 Contraceptive 
This project constitutes a vital input in the FPHP's component known 
as "Strengthening Family Planning (FP) Services Delivery". It will 
help to ensure a supply and the uninterrupted availability of 
contraceptives through the public, NG0 and private non-profit sectors, 
aimed at sustaining a targeted increase in the Contraceptive Prevalance 
Rate (CPR) from approximately 33% at the start of the FPHP to 
approximately 50% by the end of the project. 
The Community project will finance the procurement of about 840 million 
condoms in the period between January 1993 and December 1996. The use 
of condoms is one of the five temporary methods of family planning 
available to couples in Bangladesh. Condoms, and the other types of 
contraceptive provided by other sources, are available free-of-charge 
in Bangladesh. The project is first and foremost a supplies project. 
It includes the appointment of a supplies agent in the Community who 
will be responsible for issuing the tender, purchase, inspection, 
transport and monitoring of arrivals of the goods in Bangladesh. The 
agent will also be responsible for managing financial transactions 
concerning international currency for the purchase and transport. 
Customs clearance and distribution in Bangladesh will be carried out 
by the Family Welfare Directorate and by the Social Marketing Company. 
The cost of the project is estimated at ECU 20 000 000. 
Annex II 
Recipient: Indonesia 
No: ALA/91/19 
Title: North Bali: Irrigation and Water Supply 
EEC contribution: ECU 10 300 000 
The project objective is to impove farmers' income in a backward area 
on the North Bali coast, through the resumption of citrus cultivation. 
This crop was grown extensively in the past, but the orchards 
had to be destroyed for health reasons. The project will provide 
irrigation facilities for about 1 575 ha, benefiting some 7 000 
families. Drinking water will also be provided under the project. It 
is hoped that the income of a farming family will increase by 200% as 
a result of the project. The economic IRR is 44%. The estimated cost 
of the five-year project is ECU 12 900 000, to which the EEC will 
contribute ECU 10 300 000. 
Annex II 
Recipient: China 
No: ALA/91/20 
Title: Intensification of crop production 
in Xinjiang province 
EEC contribution: ECU 3 600 000 
This project, located in Xinjiang province in North China, aims at 
assisting the Chinese authorities to develop the production of wheat, 
maize and sunflower as well as certain other crops, as a means of 
providing medium and long-term food security and incomes. It comprises 
support for two agricultural trial stations, the strengthening of 
extension and demonstration programmes, and assistance to other 
existing agricultural support services. 
The total cost of the project is estimated at ECU 5 100 000. The EEC 
contribution will be ECU 3 600 000. It will cover the foreign exchange 
costs of technical assistance, agricultural equipment and inputs, 
overseas training and so on. 
The benefits will be derived in the form of higher and more stable 
yields and an increase in the area under cultivation, made possible by 
better water management. The project area to be directly affected is 
about 16 000 ha, cultivated by some 6 800 farmers. 
Annex II ' ' o <i 
Recipient: ASEAN 
No: ALA/91/28 
Title: EC-ASEAN Radar Remote Sensing, ERS-1 Project 
EEC contribution: ECU 3 900 000 
The project aims at enhancing EC-ASEAN cooperation and a transfer of 
Community know-how in the remote sensing domain, particularly as 
regards radar satellite technologies developed by the European Space 
Agency. Through the upgrading of Bangkok receiving station, and 
installation of connected data workstations in Indonesia, Malaysia and 
the Philippines, the project will make available ERS-1 satellite radar 
data. It will also promote ASEAN's capability to make use of and apply 
ERS-1 technologies to meet its development and environmental needs, 
through training and demonstrative applications conducted with the 
assistance of EC experts. 
Annex II 
Recipient: India 
No: ALA/91/35 
Title: Sidmukh and Nohar Irrigation Project 
EEC contribution: ECU 31 830 000 
The proposed project may be classified as an integrated rural 
development project, based on the investment of ECU 65 000 000 in an 
extensive irrigation network covering a Cultivable Command Area of 
84 170 ha. This investment in irrigation and associated agroforestry 
and livestock activities will lead to an increase in farm incomes from 
Rs 5 700 (ECU 190) to Rs 35 700 (ECU 1 190), as well as to a 
diversification of the source of such income (diversification of 
cropping patterns and development of livestock activity). 
It is estimated that project implementation will take seven years 
and that the total cost will be ECU 65 000 000. The Community's 
contribution to this total is ECU 45 000 000, of which ECU 38 000 000 
will be made available as counterpart funds in the form of fast 
disbursed emergency aid (commodities). 
The project will be managed by a project management unit, supported by 
technical assistance. The project is among the Government of India's 
priorities under its structural adjustment programme, and its economic 
IRR has been calculated as 13%. 
Annex II 
Recipient: Bangladesh 
No: ALA/91/16 
Title: Cyclone protection and primary schools project 
EEC contribution: ECU 10.72 million 
The project should be seen against a general consensus which has 
emerged among the Government and the donors in Bangladesh, following 
the April 1991 cyclone, to the effect that there is an urgent need for 
a major investment programme for cyclone protection in the country's 
high-risk coastal areas and islands. Provisional estimates put the 
number of shelters required at 3 000, with 1 500 of these in the 
high-risk areas. While the government and the major financing agencies 
(e.g. the World Bank) prepare this investment programme, some donors 
(the European Community and Saudi Arabia in the main) are commencing 
work on part of the protection considered as vital in the high-risk 
areas selected, and combining this with repairing the social 
infrastructure damaged by the cyclone. 
The project will build and equip about 150 shelters and primary schools 
which will provide protection for at least 150 000 people in the Cox's 
Bazaar district of Bangladesh. The project will significantly improve 
cyclone protection in one of the areas most exposed to the hazard, and 
at the same time rebuild and improve the primary school infrastructure, 
after the damage cause by the April 1991 cyclone. In order to ensure 
that the shelters are put to optimum use and that local communities are 
brought into the early warning and evacuation scheme, the project will 
also include assistance to NGOs like the Red Crescent. This assistance 
will cover, among other items, the supply of radio communication 
equipment. The project will be implemented by a project management 
unit under the responsibility of the Ministry of Education, and 
supported by technical assistance. It will last for three and a half 
years (January 1992 to June 1995). Local costs are estimated at a 
total of ECU 15 716 000. The Community's contribution to this will be 
ECU 10 716 000, which includes ECU 716 000 transferred by Greece to 
a special account in the Commission budget for post-cyclone assistance 
to Bangladesh, following the Council decision of 14 May 1991 on 
Special Post-Cyclone Aid from the EC to Bangladesh amounting to ECU 60 
000 000. 
The remaining cost of the project (ECU 5 000 000) will be financed by 
Germany, via the Kreditanstalt ftlr Wiederaufbau (KfW). 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: Bangladesh 
ALA/91/17 
Contribution to the post-disaster reconstruction 
effort: supply of cement 
ECU 16 000 000 
This project provides support for the efforts being made in Bangladesh 
to repair and construct the infrastructure, following the 1991 cyclone, 
and to attenuate the effects of the Gulf War on the country's fragile 
economy. The project was included in the very heavy budget for the year 
following these events (1991-92). 
Through the agency of the normal banking system, the project gave the 
private sector (for the most part) the possibility of importing two or 
three months' supply of cement. 
The project used the counterpart funds generated by the imports of 
cement to supplement the sums set aside in the country's 1991-92 budget 
for the Annual Development Programme, especially infrastructure repair 
and construction projects. 
The cost of the project is ECU 16 000 000, which includes about ECU 
400 000 for technical assistance for control and evaluation (plus 
audits). 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: Bangladesh 
ALA/91/18 
Cyclone Protection Project II 
Priority Works Programme 
ECU 2 500 000 
This project should be seen against a general consensus which has 
emerged among the Government and the donors in Bangladesh after the 
April 1991 cyclone, to the effect that there is an urgent need to 
rebuild and rehabilitate the sea-facing coastal embankments in the area 
devastated by the cyclone. It is estimated that 193 km of embankments 
need to be rehabilitated and 70 km of new embankments constructed. As 
a result of the cyclone, large parts of the coastal area are 
effectively unprotected against monsoon storm floods and future 
cyclonic surges. 
At the time of the cyclone, European Community consultants had almost 
completed a survey of sea-facing coastal embankments as part of the 
preparation of the Cyclone Protection Project II (ALA/87/05), under 
which these embankments and associated structures (e.g. sluices and 
regulators) would be rehabilitated. The Cyclone Protection Project II 
(CPP II) was planned as a five-year project starting in 1992-93 and was 
to have been financed by the World Bank. 
Because of the damage caused by the 1991 cyclone, however, the 
Government of Bangladesh has decided to advance the schedule of the CCP 
II and to implement a Priority Works Programme of embankment 
reconstruction in the affected area, in the 1991-92 and 1992-93 dry 
seasons. The project is to be known as the Cyclone Protection Project 
II (Priority Works Programme) and will involve the rehabilitation or 
reconstruction of all 263 km in need. 
The estimated cost of the CPP II (Priority Works Programme) is 
ECU 78 000 000 (USD 91 800 000). Capital expenditure costs will be 
financed by the World Bank, the Saudian Fund for Development and Japan. 
The Community will cofinance the project and provide the technical 
assistance needed for preparing the plans and supervising the works. 
Annex II 
Recipient: 
No: 
Title: 
EEC contribution: CGIAR international research centres 
ALA/91/10 
Aid for agricultural research: contribution 
to the 1991 budgets of CIAT, CIMMYT, CIP, 
ICRISAT, IRRI and ISNAR 
ECU 9 000 000 
This programme is a continuation of aid granted by the Community for 
the first time in 1977 to international agricultural research centres 
sponsored by the Consultative Group on International Agricultural 
Research (CGIAR). It relates to six research centres - CIAT, CIMMYT, 
CIP, ICRSAT, IRRI and ISNAR. The amount of the proposed contribution 
is EC 9 000 000, which corresponds to 7.6% of the 1991 budget 
estimates for the centres. 
Annex III 
Financial and Technical Assistance 
to ALA developing countries : 
disbursements by calendar year 
Annex III 
Year Actual 
commit­
ments 
1976 21.00 
1977 43.70 
1978 29.70 
1979 117.60 
1980 132.50 
1981 153.50 
1982 134.70 
1983 227.40 
1984 249.30 
1985 149.70 
1986 268.60 
1987 342.90 
1988 264.00 
1989 283.00 
1990 279.59 
1991 357.24 
TOTAL 3054.43 
,Year Actual 
commit­
ments 
1976 21.00 
1977 43.70 
1978 29.70 
1979 117.60 
1980 132.50 
1981 153.50 
1982 134.70 
1983 227.40 
1984 249.30 
1985 149.70 
1986 268.60 
1987 342.90 
1988 264.00 
1989 283.00 
1990 279.59 
1991 357.24 
TOTAL 3054.43 Annex III: Disbursements by calendar year, 
period 1976-91 (ECU '000 000) 
Disbursements in the year 
_ (amount/%) 
77 x 78 X 79 % 80 X 81 % 82 % 83 X 
6.5 31 3.1 15 3.9 19 1.2 6 2.1 10 1.3 6 2.0 10 
" • 4-6 11 5.5 13 9.8 22 6.8 16 3.2 7 2.8 6 
- • " " 5.5 19 1.9 6 4.5 15 2.8 9 4.4 15 
* " * * 3.7 3 24.3 21 30.5 26 15.3 13 14.5 12 
1.7 1 41.8 32 28.7 22 15.6 12 
1.9 1 12.3 8 52.1 34 
3.3 2 8.7 6 
6-5 - 7-7 * 18.6 - 38.9 - 87.6 - 66.9 - 128.7 -
Disbursements in the year 
85 % 86 % 87 % (ag£Ur%t/%) 89 X MX 91 X 
3.2 7 1.8 4 0.9 2 -0.5 - 1.4 3 - -
°-5 2 2.4 8 0.7 2 0.8 3 0.6 2 1.6 5 0 9 3 
6.8 6 3.5 3 1.3 1 2.5 2 1.4 1 0.3 0 15 1 
7.8 6 8.5 6 1.7 1 -0.3 - 2.0 2 2.3 2 2.0 2 
16.6 11 8.5 6 7.7 5 6.8 4 8.0 5 6.2 4 73 5 
19.8 15 21.1 16 10.0 7 10.8 8 11.6 9 4.0 3 5*6 4 
35.5 16 19.6 9 13.1 6 13.6 6 5.2 2 10.1 4 19 9 9 
55.1 22 59.0 24 21.6 9 20.7 8 22.5 9 18.5 7 10.6 4 
2.8 2 27.1 18 18.9 13 19.8 13 11.3 8 11.8 8 17 1 11 
-• 20.7 8 64.8 24 42.7 16 28.0 10 15.7 6 27.6 10 
13.6 4 36.7 11 32.9 10 21.9 6 18.3 5 
* " " • " - 9.1 3 33.4 13 12.6 5 13.9 5 
11.3 4 39.3 14 16.4 6 
' - 36.7 13 18.3 7 
11.3 3 
148.4 - 172.2 - 154.3 - 163.5 - 169.6 - 181.0 - 170.9 -84 X 
0.6 3 
2.7 6 
2.6 9 
10.1 9 
13.3 10 
10.0 7 
31.8 24 
67.4 30 
7.7 3 
146.2 -
TOTAL X 
21.0 100.0 
42.2 97.7 
29.2 98.2 
115.7 98.4 
125.1 94.7 
137.4 89.5 
126.7 94.1 
213.0 93.7 
215.7 86.5 
108.8 72.7 
199.5 74.3 
123.4 36.0 
69.0 31.4 
67.0 17.9 
55.0 19.7 
11.3 3.2 
1660.2 54.4 
* Negative amounts involve repayments to the ADB. 
ISSN 0254-1475 
COM(94) 541 final 
DOCUMENTS 
EN 11 
Catalogue number : CB-CO-94-568-EN-C 
ISBN 92-77-82980-X 
Office for Official Publications of the European Communities 
Lr2985 Dixembouig