EUROPEAN COMMISSION Brussels, 14.6.2017 COM(2017) 299 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL Financial information on the European Development Fund



European Development Fund (EDF): forecasts of commitments, payments and contributions



1.Foreword In accordance with Article 7(3) of the 11th EDF Internal Agreement and Article 21(4) of Council Regulation (EU) 2015/323 on the financial regulation applicable to the 11th European Development Fund (hereinafter referred to as "11th EDF Financial Regulation"), the Commission presents in this document the commitments, payments and contributions made in 2016 and to be made in the years 2017 and 2018, taking into account the forecasts of the European Investment Bank (EIB). This document sets out the financial implementation of the EDFs (Eighth to 11th) for 2016 and the forecasts of implementation for 2017 and 2018. Member States contribute funds directly to the European Investment Bank (EIB) for the instruments which it manages under the Ninth, 10th, and 11th EDFs (the Investment Facility and interest-rate subsidies). 2.Introduction The Commission and the EIB have updated their commitment and payment forecasts for 2017 and 2018 for each of the ACP countries and the OCTs. The payment forecasts in particular have been compiled with the aim of helping Member States to assess as accurately as possible the amounts they need to earmark in their national budgets while ensuring that sufficient financial resources are available for the EDF to avoid liquidity problems. In accordance with Article 7(3) of the 11th EDF Internal Agreement and Article 21(4) of the 11th EDF Financial Regulation, the estimates provided in this document have been updated. The graph below shows the general trend in gross commitments and payments since 1999 until 2016 and projections for the period 2017-2018 (Commission and EIB cumulated amounts).



Gross commitments and payments: trend 1999-2018 (EUR million) Note: Figures from implementation of the European Development Funds as of 31 December 2016 (commitments, payments and financial situation) and forecasts for 2017 and 2018. 3.Financial forecasts for 2017 – 2018 (EUR million) The following table provides an update of the commitments, the payments and of the contributions, based on the Commission's latest forecasts. Actuals 2016 (*) Forecasts 2017-2018 2016 2017 2018 Commitments Commission 6,919 5,629 4,550 EIB 878 855 880 Total 7,797 6,484 5,430 Payments Commission 3,416 4,064 4,600 EIB 679 540 565 Total 4,095 4,604 5,165 Contributions Commission 3,450 3,850 4,550 EIB 150 150 250** Total 3,600 4,000 4,800 * Gross amounts, i.e. no decommitments or recoveries/reflows have been deducted. This approach is in line with that used for the General Budget of the European Union. ** Ref. EIB explanatory note for information of 17/11/2015, MD no: 151/15 ADD 1 ACP.



4.Non-binding forecasts of contributions for 2019 – 2020 (EUR million) Forecasts 2019-2020 (*) 2019 2020 Contributions Commission 4,500 4,500 EIB 400 400 Total 4,900 4,900

* Art.21 (2) 11th EDF Financial Regulation (EU 2015/323): indicative, non-binding forecast based on a statistical approach for the expected annual amounts of contributions for the years n + 3 and n + 4. 5.Financial implementation for 2016 and forecasts for 2017 and 2018 End-of-year totals for 2016 commitments exceeded the estimates provided in the Communication of October 2016. However, the target for payments was not reached. The 2016 estimate for commitments provided in the October 2016 Communication (EUR 5,325 million) is exceeded by EUR 1,594 million. One of the reasons for the overrun of the target is that initial forecasts did not include the decision to allocate EUR 500 million of additional credits to the EU Emergency Trust Fund for Africa (EUTF Africa). The current level of absorption by the Commission keeps the 11th EDF on track for full commitment by the end of the implementation period. EDF payments (EUR 3,416 million) failed to reach the 2016 estimate announced in October 2016 (EUR 3,752 million) but are still EUR 216 million above the 2015 year's execution (EUR 3,210 million). The Commission's estimates depended on EUTF Africa payments (EUR 250 million for 2016 with EUR 207.5 million coming from the EDF). However, the EUTF Africa only called EUR 98.5 million EDF funds. A tight and difficult treasury situation is still expected for 2017-2018. Reasons include the consumption of the EDF "cash buffer" in 2015 (Contributions called = EUR 3,200 million against Payments EUR 3,210 million), disbursements for the EUTF Africa, increased funding of the African Peace Facility for the period 2016-2018 and the proposal for a Regulation on the European Fund for Sustainable Development (EFSD) establishing the EFSD Guarantee Fund.. Once adopted, this proposal envisages a contribution of EUR 400 million from the 11th EDF of which EUR 150 million to be paid in 2017. Attachments 1 and 2 show respectively for commitments and payments the actuals of 2016 and the forecasts for the 2017-2018, compared to the previous communicated forecasts. Attachment 3 shows the actual financial situation of 2016 and the forecasts for 2017-2020, compared to the previous communicated forecasts. Attachments 4 and 5 show respectively the Member States' contributions by EDF for 2017 by instalment and for the years 2017-2020 by total. Attachment 6 and 7 show respectively the decommitted funds from previous EDFs and the impact of the reduction on contributions of each Member State. 5.1.Attachment 1: actual commitments for 2016, and forecasts for 2017 and 2018 (EUR million) 2016 2017 2018 Communication October 2016 Actuals 2016 Communication October 2016 Communication June 2017 Communication October 2016 Communication June 2017 Regions East Africa 810 892 703 West Africa 1,776 2,729 1,943 Central Africa 1,139 1,179 950 Caribbean 213 272 352 Pacific 25 131 230 Southern Africa 560 682 469 Sub-total 4,525 5,886 4,646 Other Peace Facility, Human rights 545 627 467 Water and Energy Facility 100 118 367 Trust Fund (*) 0 0 0 Other (**) 155 287 150 Sub-total 800 1,032 984 Total European Commission 5,325 6,919 4,663 5,629 4,550 4,550 Investment facility 775 793 800 775 825 800 Interest rate subsidies (***) 80 85 80 80 80 80 Total EIB 855 878 880 855 905 880 TOTAL EC+EIB 6,180 7,797 5,543 6,484 5,455 5,430 Gross commitments, i.e. without de-commitments being deducted. * Emergency EU Trust Fund for stability and addressing root causes of illegal migration in Africa and the Bêkou EU Trust Fund.

** Includes support expenditures (e.g. joint institutions, ACP Secretariat), DG ECHO, other DG's and Agencies.

*** Including interest rate subsidies under previous EDFs.



5.2.Attachment 2: actual payments for 2016, and forecasts for 2017 and 2018 (EUR million) 2016 2017 2018 Communication October 2016 Actuals 2016 Communication October 2016 Communication June 2017 Communication October 2016 Communication June 2017 Regions East Africa 618 605 500 West Africa 918 911 1,501 Central Africa 513 477 674 Caribbean 176 171 199 Pacific 63 66 113 Southern Africa 442 437 334 Sub-total 2,730 2,666 3,322 Other Peace Facility, Human rights 436 211 151 Water and Energy Facility 95 92 105 Trust Fund (*) 290 98 298 Other (**) 201 348 188 Sub-total 1,022 749 742 Total European Commission 3,752 3,416 3,900 4,064 4,400 4,600 Investment facility 430 662 430 500 450 525 Interest rate subsidies (***) 20 17 40 40 50 40 Total EIB 450 679 470 540 500 565 TOTAL European Commission + EIB 4,202 4,095 4,370 4,604 4,900 5,165 * Emergency EU Trust Fund for stability and addressing root causes of illegal migration in Africa and the Bêkou EU Trust Fund.

** Includes support expenditures (e.g. joint institutions, ACP Secretariat), DG ECHO, other DG's and Agencies.

*** Including interest rate subsidies under previous EDFs.



5.3.Attachment 3: 2016 Financial situation, forecasts for 2017 and 2018 (EUR million) and non-binding forecasts for 2019-2020:

Communication October 2016 1 Communication June 2017 1 Commission EIB 8 TOTAL Commission EIB 8 TOTAL Balance 31/12/2015 2 508 222 730 508 222 730 2016 Member States contributions for 2016: 3,450 150 3,600 3,450 150 3,600 1st instalment 1,750 0 1,750 1,750 0 1,750 2nd instalment 1,000 100 1,100 1,000 100 1,100 3rd instalment 700 50 750 700 50 750 Reflows 3 209 209 347 347 Contributions 2017 received in 2016 0 261 261 Contributions 2016 received in 2015 -307 -307 -307 -307 Recoveries, interest and other income 80 80 65 65 Total payments 4 -3,752 -450 -4,202 -3,416 -679 -4,095 Balance 31/12/2016 2,7 -21 131 110 561 40 601 2017 Member States contributions for 2017: 3,850 150 4,000 3,850 150 4,000 1st instalment 1,700 100 1,800 1,700 100 1,800 2nd instalment 1,300 50 1,350 1,300 50 1,350 3rd instalment 850 0 850 850 0 850 Reflows 3 300 300 350 350 Contributions 2017 received in 2016 0 0 -261 -261 Recoveries, interest and other income 50 50 50 50 Total payments 4 -3,900 -470 -4,370 -4,064 -540 -4,604 Balance at 31/12/2017 2,7 -21 111 90 136 0 136 2018 Member States contributions for 2018 8: 4,550 250 4,800 4,550 250 4,800 Reflows 3 300 300 350 350 Recoveries, interest and other 80 80 80 80 Total payments 4 -4,400 -500 -4,900 -4,600 -565 -5,165 Balance at 31/12/2018 209 161 370 166 35 201 2019 Member States contributions for 2019 6 4,500 300 4,800 4,500 400 4,900 2020 Member States contributions for 2020 6 4,500 300 4,800 4,500 400 4,900 1 Funds available for operations as per Communication from the Commission to the Council.

2 Balances do not include: (i) Cofinancings received by 31/12, (ii) Receipts in bank not yet allocated to a specific EDF line, (iii) Special fund for Democratic Republic of the Congo. 3 Net of EIB management fees.

4 Including interest rates subsidies under the previous EDFs.

5 Balances do not include: (i) Cofinancings received by 31.12.2015, (ii) Receipts in bank not yet allocated to a specific EDF line, (iii) Special fund for Democratic Republic of the Congo.

6 Art.21(2)(d) Financial Regulation: non-binding forecast based on a statistical approach for the expected annual contributions for the years n + 3 and n + 4.

7 The EDF treasury balance can never be negative. Any negative amounts in the table indicate a shortage of payment credits. 8 EIB request for contributions for 2018: EIB information note of 17/11/2015, MD no: 151/15 ADD 1 ACP. 5.4.Attachment 4: Member States contributions for 2017 (EUR) MEMBER STATES 1st instalment 2nd instalment 3rd instalment Total EIB Total

Commission Total 2017 EIB Commission EIB Commission Commission EIB Commission 10th EDF 10th EDF 10th EDF 10th EDF 11th EDF 10th EDF 11th EDF BELGIUM 3,530,000.00 60,010,000.00 1,765,000.00 2,586,394.39 39,859,803.57 0.00 27,618,795.00 5,295,000.00 130,074,992.96 135,369,992.96 BULGARIA 140,000.00 2,380,000.00 70,000.00 102,576.55 2,680,775.34 0.00 1,857,505.00 210,000.00 7,020,856.88 7,230,856.88 CZECH REPUBLIC 510,000.00 8,670,000.00 255,000.00 373,671.71 9,782,566.65 0.00 6,778,325.00 765,000.00 25,604,563.37 26,369,563.37 DENMARK 2,000,000.00 34,000,000.00 1,000,000.00 1,465,379.26 24,294,794.82 0.00 16,833,825.00 3,000,000.00 76,593,999.08 79,593,999.08 GERMANY 20,500,000.00 348,500,000.00 10,250,000.00 15,020,137.42 252,458,793.95 0.00 174,928,300.00 30,750,000.00 790,907,231.37 821,657,231.37 ESTONIA 50,000.00 850,000.00 25,000.00 36,634.48 1,059,282.25 0.00 733,975.00 75,000.00 2,679,891.73 2,754,891.73 IRELAND 910,000.00 15,470,000.00 455,000.00 666,747.56 11,532,007.79 0.00 7,990,510.00 1,365,000.00 35,659,265.35 37,024,265.35 GREECE 1,470,000.00 24,990,000.00 735,000.00 1,077,053.76 18,491,130.29 0.00 12,812,475.00 2,205,000.00 57,370,659.04 59,575,659.04 SPAIN 7,850,000.00 133,450,000.00 3,925,000.00 5,751,613.60 97,310,194.16 0.00 67,426,080.00 11,775,000.00 303,937,887.76 315,712,887.76 FRANCE 19,550,000.00 332,350,000.00 9,775,000.00 14,324,082.27 218,513,796.75 0.00 151,407,865.00 29,325,000.00 716,595,744.02 745,920,744.02 CROATIA 0.00 0.00 0.00 0.00 2,762,352.95 0.00 1,914,030.00 0.00 4,676,382.95 4,676,382.95 ITALY 12,860,000.00 218,620,000.00 6,430,000.00 9,422,388.64 153,710,502.99 0.00 106,505,765.00 19,290,000.00 488,258,656.64 507,548,656.64 CYPRUS 90,000.00 1,530,000.00 45,000.00 65,942.07 1,369,277.18 0.00 948,770.00 135,000.00 3,913,989.25 4,048,989.25 LATVIA 70,000.00 1,190,000.00 35,000.00 51,288.27 1,424,480.08 0.00 987,020.00 105,000.00 3,652,788.35 3,757,788.35 LITHUANIA 120,000.00 2,040,000.00 60,000.00 87,922.76 2,217,561.70 0.00 1,536,545.00 180,000.00 5,882,029.45 6,062,029.45 LUXEMBOURG 270,000.00 4,590,000.00 135,000.00 197,826.20 3,129,268.20 0.00 2,168,265.00 405,000.00 10,085,359.40 10,490,359.40 HUNGARY 550,000.00 9,350,000.00 275,000.00 402,979.30 7,538,998.26 0.00 5,223,760.00 825,000.00 22,515,737.56 23,340,737.56 MALTA 30,000.00 510,000.00 15,000.00 21,980.69 466,280.47 0.00 323,085.00 45,000.00 1,321,346.16 1,366,346.16 NETHERLANDS 4,850,000.00 82,450,000.00 2,425,000.00 3,553,544.71 58,598,242.83 0.00 40,602,630.00 7,275,000.00 185,204,417.53 192,479,417.53 AUSTRIA 2,410,000.00 40,970,000.00 1,205,000.00 1,765,782.01 29,411,735.32 0.00 20,379,345.00 3,615,000.00 92,526,862.33 96,141,862.33 POLAND 1,300,000.00 22,100,000.00 650,000.00 952,496.52 24,624,662.80 0.00 17,062,390.00 1,950,000.00 64,739,549.32 66,689,549.32 PORTUGAL 1,150,000.00 19,550,000.00 575,000.00 842,593.07 14,681,394.38 0.00 10,172,715.00 1,725,000.00 45,246,702.45 46,971,702.45 ROMANIA 370,000.00 6,290,000.00 185,000.00 271,095.16 8,809,768.94 0.00 6,104,275.00 555,000.00 21,475,139.11 22,030,139.11 SLOVENIA 180,000.00 3,060,000.00 90,000.00 131,884.13 2,754,256.52 0.00 1,908,420.00 270,000.00 7,854,560.66 8,124,560.66 SLOVAKIA 210,000.00 3,570,000.00 105,000.00 153,864.82 4,614,471.47 0.00 3,197,360.00 315,000.00 11,535,696.29 11,850,696.29 FINLAND 1,470,000.00 24,990,000.00 735,000.00 1,077,053.76 18,512,475.41 0.00 12,827,265.00 2,205,000.00 57,406,794.16 59,611,794.16 SWEDEN 2,740,000.00 46,580,000.00 1,370,000.00 2,007,569.59 36,054,974.58 0.00 24,982,435.00 4,110,000.00 109,624,979.17 113,734,979.17 UNITED KINGDOM 14,820,000.00 251,940,000.00 7,410,000.00 10,858,460.32 180,067,187.34 0.00 124,768,270.00 22,230,000.00 567,633,917.66 589,863,917.66 TOTAL EU-28 100,000,000.00 1,700,000,000.00 50,000,000.00 73,268,963.00 1,226,731,037.00 0.00 850,000,000.00 150,000,000.00 3,850,000,000.00 4,000,000,000.00 5.5.Attachment 5: Member States contributions for 2017-2020 (EUR) MEMBER STATES Key 10th Key 11th 2017 2018 2019 2020 EDF % EDF % COM 10th COM 11th EIB 10th COM 11th EIB 10th COM 11th EIB 10th COM 11th EIB 10th BELGIUM 3.53 3.24927 62,596,394 67,478,599 5,295,000 147,841,785 8,825,000 146,217,150 14,120,000 146,217,150 14,120,000 BULGARIA 0.14 0.21853 2,482,577 4,538,280 210,000 9,943,115 350,000 9,833,850 560,000 9,833,850 560,000 CZECH REPUBLIC 0.51 0.79745 9,043,672 16,560,892 765,000 36,283,975 1,275,000 35,885,250 2,040,000 35,885,250 2,040,000 DENMARK 2.00 1.98045 35,465,379 41,128,620 3,000,000 90,110,475 5,000,000 89,120,250 8,000,000 89,120,250 8,000,000 GERMANY 20.50 20.57980 363,520,137 427,387,094 30,750,000 936,380,900 51,250,000 926,091,000 82,000,000 926,091,000 82,000,000 ESTONIA 0.05 0.08635 886,634 1,793,257 75,000 3,928,925 125,000 3,885,750 200,000 3,885,750 200,000 IRELAND 0.91 0.94006 16,136,748 19,522,518 1,365,000 42,772,730 2,275,000 42,302,700 3,640,000 42,302,700 3,640,000 GREECE 1.47 1.50735 26,067,054 31,303,605 2,205,000 68,584,425 3,675,000 67,830,750 5,880,000 67,830,750 5,880,000 SPAIN 7.85 7.93248 139,201,614 164,736,274 11,775,000 360,927,840 19,625,000 356,961,600 31,400,000 356,961,600 31,400,000 FRANCE 19.55 17.81269 346,674,082 369,921,662 29,325,000 810,477,395 48,875,000 801,571,050 78,200,000 801,571,050 78,200,000 CROATIA 0.00 0.22518 0 4,676,383 0 10,245,690 0 10,133,100 0 10,133,100 0 ITALY 12.86 12.53009 228,042,389 260,216,268 19,290,000 570,119,095 32,150,000 563,854,050 51,440,000 563,854,050 51,440,000 CYPRUS 0.09 0.11162 1,595,942 2,318,047 135,000 5,078,710 225,000 5,022,900 360,000 5,022,900 360,000 LATVIA 0.07 0.11612 1,241,288 2,411,500 105,000 5,283,460 175,000 5,225,400 280,000 5,225,400 280,000 LITHUANIA 0.12 0.18077 2,127,923 3,754,107 180,000 8,225,035 300,000 8,134,650 480,000 8,134,650 480,000 LUXEMBOURG 0.27 0.25509 4,787,826 5,297,533 405,000 11,606,595 675,000 11,479,050 1,080,000 11,479,050 1,080,000 HUNGARY 0.55 0.61456 9,752,979 12,762,758 825,000 27,962,480 1,375,000 27,655,200 2,200,000 27,655,200 2,200,000 MALTA 0.03 0.03801 531,981 789,365 45,000 1,729,455 75,000 1,710,450 120,000 1,710,450 120,000 NETHERLANDS 4.85 4.77678 86,003,545 99,200,873 7,275,000 217,343,490 12,125,000 214,955,100 19,400,000 214,955,100 19,400,000 AUSTRIA 2.41 2.39757 42,735,782 49,791,080 3,615,000 109,089,435 6,025,000 107,890,650 9,640,000 107,890,650 9,640,000 POLAND 1.30 2.00734 23,052,497 41,687,053 1,950,000 91,333,970 3,250,000 90,330,300 5,200,000 90,330,300 5,200,000 PORTUGAL 1.15 1.19679 20,392,593 24,854,109 1,725,000 54,453,945 2,875,000 53,855,550 4,600,000 53,855,550 4,600,000 ROMANIA 0.37 0.71815 6,561,095 14,914,044 555,000 32,675,825 925,000 32,316,750 1,480,000 32,316,750 1,480,000 SLOVENIA 0.18 0.22452 3,191,884 4,662,677 270,000 10,215,660 450 000 10,103,400 720,000 10,103,400 720,000 SLOVAKIA 0.21 0.37616 3,723,865 7,811,831 315,000 17,115,280 525,000 16,927,200 840,000 16,927,200 840,000 FINLAND 1.47 1.50909 26,067,054 31,339,740 2,205,000 68,663,595 3,675,000 67,909,050 5,880,000 67,909,050 5,880,000 SWEDEN 2.74 2.93911 48,587,570 61,037,410 4,110,000 133,729,505 6,850,000 132,259,950 10,960,000 132,259,950 10,960,000 UNITED KINGDOM 14.82 14.67862 262,798,460 304,835,457 22,230,000 667,877,210 37,050,000 660,537,900 59,280,000 660,537,900 59,280,000 TOTAL EU-28 100.00 100.00 1,773,268,963 2,076,731,037 150,000,000 4,550,000,000 250,000,000 4,500,000,000 400,000,000 4,500,000,000 400,000,000 4,000,000,000 4 800 000 000 4,900,000,000 4,900,000,000



5.6.Attachment 6: State of reserves of decommitted funds from previous EDFs (EUR) In accordance with Article 61 of the Council Regulation (EU) 2015/323 on the financial regulation applicable to the 11th EDF, the following table displays the amount of reserves of decommitted funds from previous EDFs at the end of 2016 and per previous EDF (Eighth/Ninth or 10th EDF, as each EDF has a specific list of Member States participating and a specific contribution key per Member State). Reserves of decommitted funds from previous EDFs at the 31/12/2016 10th EDF 8th/9th EDF Grand Total ACP 31,435,360.12 242,695,821.82 274,131,181.94 OCT 3,445,760.70 21,496,601.75 24,942,362.45 Grand Total 34,881,120.82 264,192,423.57 299,073,544.39 On 2 August 2016, the Council adopted Decision (EU) 2016/1337 to allocate an amount of up to a maximum of EUR 491,387,500 of decommitted funds from the 10th EDF for the purpose of replenishing the African Peace Facility for the period 2016-2018 in accordance with Article 1(4) of the 11th EDF Internal Agreement. At year end, the total of 10th EDF funds transferred for consumption is EUR 386,387,500; therefore an additional amount of EUR 121,387,500 shall be transferred from the 10th reserve of decommitted funds. From the Eighth/Ninth EDF reserve, an amount of EUR 200,000,000 shall be deducted in order to refund the participating Member States, pending the adoption by the Council of the Commission proposal enclosed with the current proposal for the 2nd instalment 2017.



5.7.Attachment 7: Impact of the reduction on contributions by remaining balances of each Member States (EUR) In accordance with Article 61 of the Council Regulation (EU) 2015/323 on the Financial Regulation applicable to the 11th EDF, the following table displays the impact of a reduction of contribution based on the amount in the reserve from decommitted funds of previous EDFs. However, the amounts presented in the table are theoretical, since they do not take into account the proposed implementation of the refund of EUR 200 million, as per proposal presented by the European Commission together with this Communication, nor the envisaged allocation of EUR 150 million foreseen for 2017 to the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD Guarantee Fund.