EN Official Journal of the European Union C 265/1

ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR 2005 OF THE 6TH, 7TH, 8TH AND 9TH EUROPEAN DEVELOPMENT FUNDS

(2006/C 265/01)

TABLE OF CONTENTS

1. FINANCIAL STATEMENTS

1.1. Accounting principles and valuation rules

1.2. Consolidation

1.3. Currency and basis for conversion

1.4. Balance sheet accounts

1.5. Economic outturn accounts

1.6. Recording of operations

1.7. Use of estimates

1.8. Impact of the transition to accrual accounting

1.9. Financial statements

1.10. Notes to the accounts

1.11. Off balance items

2. REPORT ON FINANCIAL IMPLEMENTATION

2.1 Appropriations at 31 December 2005

2.2. Consolidated accounts

2.3. Situation by country and by instrument

2.4. Other management information

3. FINANCIAL INFORMATION EIB

3.1. Investment facility income statement

3.2. Investment facility balance sheet

3.3. Investment facility cash flow statement

3.4. Investment facility statement of changes in equity

3.5. Notes to the financial statements

4. APPENDIX — Situation by country and by instrument

1. FINANCIAL STATEMENTS

1.1. ACCOUNTING PRINCIPLES AND VALUATION RULES

1.1.1. FINANCIAL REGULATIONS

The balance sheets and income and expenditure accounts were drawn up in accordance with the Financial Regulations applicable to the 6th, 7th, 8th and 9th European Development Funds (EDFs) (1).

The relevant documents must be presented to the Court of Auditors as provided for in Articles 66, 67 and 68 of the Financial Regulation applicable to the 6th EDF, Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF, Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF. Article 102 (9th EDF) stipulates that, starting with the annual accounts for 2005, the Commission shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 103). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal of the European Union by 31 October together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management.

1.1.2. ACCRUAL-BASED ACCOUNTS

In accordance with the provisions of Articles 99 and 135(3) of the 9th EDF Financial Regulation, full accrual-based accounts have to be prepared for the first time for the 2005 financial year.

To ensure the comparability of the information, the EDF accounting officer has restated the opening financial statements for the financial year 2005, on a full accrual accounting basis. The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the authorising officer.

These financial statements have been drafted in conformity with a new set of accounting rules and methods for the EDF. These were drawn up on the basis of International Accounting Standards (IPSAS/IAS) and Generally Accepted Accounting Principles (GAAPs). The new rules and methods were subject to a peer review by the Accounting Standards Committee on which the Court of Auditors is represented as an observer.

The rules of valuation and accounting methods adopted by the accounting officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management.

The annual accounts for 2005 are presented as follows:

— the financial statements,

— the reports on financial implementation,

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

1.1.3. ACCOUNTING PRINCIPLES

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

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

The accounting system of the European Development Funds comprises general accounts and financial accounts. Both sets of accounts are kept in euro on the basis of the calendar year. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The financial accounts give a detailed picture of the use of EDF resources. They are based on the cash accounting principle.

Article 98 of the 9th Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements, as follows:

— going concern basis,

— prudence,

— consistent accounting methods,

— comparability of information,

— materiality,

— no netting,

— reality over appearance,

— accrual-based accounting.

In accordance with the provisions of Articles 99 and 135(3) of the 9th EDF Financial Regulation, the financial statements for 2005 have been prepared on a different basis to that of 2004, i.e. on accrual accounting rather than cash accounting principles. Therefore adjustments were made to the balance sheet as of 31 December 2004 so as to arrive at the opening, accrual-compliant, balance sheet as at 1 January 2005 (for example, the inclusion of prefinancing amounts).

1.2. CONSOLIDATION

Each EDF is governed by its own Financial Regulation which imposes the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the European Commission. These financial statements are also presented in a consolidated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible.

Given the clear division of responsibilities set out in Article 1 of the 9th Financial Regulation, the financial statements of the Commission and the European Investment Bank — the entities entrusted with the management of EDF resources — have not been consolidated.

1.3. CURRENCY AND BASIS FOR CONVERSION

Functional and reporting currency

The financial statements are presented in millions of euros, which is the European Communities' functional and reporting currency.

Transactions and balances

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the underlying transactions.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December 2005:

Euro exchange rate at 31 December 2005 — GBP 0,6853

1.4. BALANCE SHEET ACCOUNTS

1.4.1. PREFINANCING AMOUNTS

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

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

Guarantees held to secure prefinanced amounts are treated as 'Contingent Assets' and as such they are not accounted for in the financial statements (IPSAS 19). Details are, however, provided in section 1.11 below for information purposes.

1.4.2. DEBTORS

Receivables are carried at original requested amounts less any provision for bad debts. A provision for bad debts is established when there is objective evidence that the European Development Fund will not be able to collect the full amount due to it from third parties.

1.4.3. CREDITORS

Liabilities are recorded at the eligible amount when a request for payment meets the predefined criteria.

The EDF has current liabilities for amounts already due to beneficiaries for which no invoices were received at the reporting date. The recognition criteria foresee that a charge is recognised by the EDF for the amount of the estimated payment due for the period, that is to say the portion of the incurred eligible expenses due to the beneficiaries at the reporting date. Material amounts are recognised as an accrued expense (accrued expenditure) on the basis of estimates (e.g. the degree of execution of contracts) provided by the authorising officer.

Payments due must be pre-recorded when cost claims or expense summaries are received and not at the time of their payment. In these cases, payments due are carried at the original value of the related cost claim or expense summary.

1.4.4. CASH AND CASH EQUIVALENTS

Cash and cash equivalents are carried in the balance sheet at cost. They include accounts held with financial institutions in the ACP States and the OCTs, and with financial institutions in the Member States.

1.5. ECONOMIC OUTTURN ACCOUNTS

1.5.1. INCOME

In application of accrual-based accounting principles the only source of income for the funds is derived from interest payable on various cash balances held with commercial banks (see 1.10 below).

1.5.2. EXPENDITURE

Expenditure should be recognised in the EDF financial statements as expenditure of the period that the events giving rise to a payment occurred, so long as:

— a contract has been signed which authorises the payment,

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

— a reasonable estimate of the amount due can be made. For example, invoices sent by the beneficiary, degree of execution of contracts, etc.

Expenditure includes all payment orders executed by the banks up to 31 December 2005.

Expenditure incurred by Commission delegations is not finally entered in to the EDF accounts until it has been validated by both the authorising officer and the accounting officer. Any expenditure which did not meet this double criterion at the year end is shown under the heading 'transactions to be finalised'.

1.6. RECORDING OF OPERATIONS

The deadline for the commitment of the funds under the 9th EDF has been set at 31 December 2007 in line with the 'sunset clause' adopted by Council Decision 2005/446/CE of 30 May 2005 (2).

Entitlements due from the Member States (mainly contributions which have not yet been called or interest due on the late payment of called funds) must be entered in the accounts. These items are set out in the balance sheets for the various EDFs.

In accordance with the principles of accrual-based accounting, the financial statements show the financial charges and income for the financial year regardless of the date of payment or collection.

1.7. USE OF ESTIMATES

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

1.8. IMPACT OF THE TRANSITION TO ACCRUAL ACCOUNTING

(EUR million) 1.1.2005 31.12.2004 ASSETS Current assets Net contribution receivables 42,38 42,38 Debtors 121,04 21,56 Provision for doubtful debts -0,02 -0,02 Net prefinancing 1 885,06 -13,94 Other current assets 6,89 6,89 Deferred charges 537,00 537,00 Liaison accounts — — Security cash accounts 537,00 537,00 Stabex 430,17 430,17 RD Congo special fund 106,83 106,83 Cash and cash equivalents 261,89 261,89 Total current assets 3 391,24 1 392,75 Total assets 3 391,24 1 392,75 LIABILITIES Funds and reserves Subscribed funds (a) 42 250,15 42 250,15 Uncalled funds (b) -17 210,15 -17 210,15 Called fund capital (a) — (b) 25 040,00 25 040,00 Accumulated reserves -24 261,09 -25 398,49 cumulated reserves at 31.12.N-1 n.a. n.a. economic outurn for the year n.a. n.a. Reserves 1 033,84 1 033,84 interfund transfers 848,74 848,74 replenishment of Stabex resources 185,10 185,10 Total funds and reserves 1 812,75 675,35 Current liabilities Creditors 1 578,49 717,40 Liaison accounts — — Total current liabilities 1 578,49 717,40 Total funds and reserves and liabilities 3 391,24 1 392,75

1.9. FINANCIAL STATEMENTS

Consolidated balance sheet 2005 for the 6th, 7th, 8th and 9th EDF

(EUR million) Note 31.12.2005 1.1.2005 ASSETS Current assets Net contribution receivables 1 13,72 42,38 Debtors 2 145,14 121,04 Provision for doubtful debts 3 -6,37 -0,02 Net prefinancing 4 2 304,20 1 885,06 Other current assets 5 3,31 6,89 Deferred charges 6 393,19 537,00 Liaison accounts 7 — — Security cash accounts 8 391,55 537,00 Stabex 371,88 430,17 RD Congo special fund 19,67 106,83 Cash and cash equivalents 9 270,55 261,89 Total current assets 3 515,29 3 391,24 Total assets 3 515,29 3 391,24 LIABILITIES Funds and reserves Subscribed funds (a) 10 42 877,15 42 250,15 Uncalled funds (b) 11 -15 487,15 -17 210,15 Called fund capital (a)-(b) 12 27 390,00 25 040,00 Accumulated reserves 13 -26 787,49 -24 261,09 cumulated reserves at 31.12.N-1 -24 261,09 n.a. economic outurn for the year -2 526,40 n.a. Reserves 14 1 033,84 1 033,84 interfund transfers 848,74 848,74 replenishment of Stabex resources 185,10 185,10 Total funds and reserves 1 636,35 1 812,75 Current liabilities Creditors 15 1 878,94 1 578,49 Liaison accounts 7 — — Total current liabilities 1 878,94 1 578,49 Total funds and reserves and liabilities 3 515,29 3 391,24





6th EDF balance sheet 2005

(EUR million) Notes 31.12.2005 1.1.2005 ASSETS Current assets Net contribution receivables 1 — — Debtors 2 12,62 8,12 Provision for doubtful debts 3 -3,49 -0,01 Net prefinancing 4 37,01 47,75 Other current assets 5 2,85 6,84 Deferred charges 6 — — Liaison accounts 7 2 355,51 2 395,42 Security cash accounts 8 — — Stabex — — RD Congo special fund — — Cash and cash equivalents 9 — — Total current assets 2 404,50 2 458,13 Total assets 2 404,50 2 458,13 LIABILITIES Funds and reserves Subscribed funds (a) 10 7 560,00 7 560,00 Uncalled funds (b) 11 — — Called fund capital (a) — (b) 12 7 560,00 7 560,00 Accumulated reserves 13 -7 290,58 -7 243,09 cumulated reserves at 31.12.N-1 -7 243,09 n.a. economic outurn for the year -47,49 n.a. Reserves 14 - 182,99 - 158,43 interfund transfers - 368,10 - 343,53 replenishment of Stabex resources 185,10 185,10 Total funds and reserves 86,43 158,48 Current liabilities Creditors 15 38,77 20,34 Liaison accounts 7 2 279,31 2 279,31 Total current liabilities 2 318,07 2 299,65 Total funds and reserves and liabilities 2 404,50 2 458,13





7th EDF balance sheet 2005

(EUR million) Notes 31.12.2005 1.1.2005 ASSETS Current assets Net contribution receivables 1 — — Debtors 2 20,15 22,12 Provision for doubtful debts 3 -2,69 -0,01 Net Prefinancing 4 287,54 260,81 Other current assets 5 — — Deferred expenses 6 62,46 112,86 Liaison accounts 7 2 279,31 2 279,31 Security cash accounts 8 — — Stabex — — RD Congo special fund — — Cash and cash equivalents 9 — — Total current assets 2 646,76 2 675,09 Total assets 2 646,76 2 675,09 LIABILITIES Funds and reserves Subscribed funds (a) 10 10 940,00 10 940,00 Uncalled funds (b) 11 — — Called fund capital (a) — (b) 12 10 940,00 10 940,00 Accumulated reserves 13 -9 527,36 -9 233,99 cumulated reserves at 31/12/N-1 -9 233,99 n.a. economic outurn for the year - 293,37 n.a. Reserves 14 - 559,14 - 473,06 interfund transfers - 559,14 - 473,06 replenishment of Stabex resources — — Total funds and reserves 853,50 1 232,96 Current liabilities Creditors 15 210,67 180,93 Liaison accounts 7 1 582,59 1 261,20 Total current liabilities 1 793,26 1 442,13 Total funds and reserves and liabilities 2 646,76 2 675,09





8th EDF balance sheet 2005

(EUR million) Notes 31.12.2005 1.1.2005 ASSETS Current assets Net contribution receivables 1 13,72 42,38 Debtors 2 55,97 59,12 Provision for doubtful debts 3 -0,19 — Net prefinancing 4 1 007,78 1 057,31 Other current assets 5 — — Deferred expenses 6 310,14 317,31 Liaison accounts 7 928,96 — Security cash accounts 8 — — Stabex — — RD Congo special fund — — Cash and cash equivalents 9 — — Total current assets 2 316,39 1 476,12 Total assets 2 316,39 1 476,12 LIABILITIES Funds and reserves Subscribed funds (a) 10 12 840,00 12 840,00 Uncalled funds (b) 11 -4 055,00 -6 405,00 Called fund capital (a)-(b) 12 8 785,00 6 435,00 Accumulated reserves 13 -7 851,95 -6 963,08 cumulated reserves at 31.12.N-1 -6 963,08 n.a. economic outurn for the year - 888,87 n.a. Reserves 14 -1 603,43 -1 319,54 interfund transfers -1 603,43 -1 319,54 replenishment of Stabex resources — — Total funds and reserves - 670,38 -1 847,63 Current liabilities Creditors 15 921,32 937,75 Liaison accounts 7 2 065,45 2 385,99 Total current liabilities 2 986,77 3 323,75 Total funds and reserves and liabilities 2 316,39 1 476,12





9th EDF balance sheet 2005

(EUR million) Notes 31.12.2005 1.1.2005 ASSETS Current assets Net contribution receivables 1 — — Debtors 2 56,41 31,68 Provision for doubtful debts 3 — — Net prefinancing 4 971,88 519,19 Other current assets 5 0,46 0,05 Deferred expenses 6 20,58 106,83 Liaison accounts 7 1 582,59 1 581,74 Security cash accounts 8 391,55 537,00 Stabex 371,88 430,17 RD Congo special fund 19,67 106,83 Cash and cash equivalents 9 270,55 261,89 Total current assets 3 294,02 3 038,37 Total assets 3 294,02 3 038,37 LIABILITIES Funds and reserves Subscribed funds (a) 10 11 537,15 10 910,15 Uncalled funds (b) 11 -11 432,15 -10 805,15 Called fund capital (a) — (b) 12 105,00 105,00 Accumulated reserves 13 -2 117,60 - 820,93 cumulated reserves at 31.12.N-1 - 820,93 n.a. economic outurn for the year -1 296,67 n.a. Reserves 14 3 379,41 2 984,87 interfund transfers 3 379,41 2 984,87 replenishment of Stabex resources — — Total funds and reserves 1 366,81 2 268,94 Current liabilities Creditors 15 708,19 439,46 Liaison accounts 7 1 219,01 329,96 Total current liabilities 1 927,21 769,43 Total funds and reserves and liabilities 3 294,02 3 038,37





CONSOLIDATED ECONOMIC OUTTURN ACCOUNT 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Notes Cash basis expenditure 2004 Cash basis expenditure 2005 Increase in prefinancing Increase in invoices to be paid Accrual basis expenditure 2005 Operating interest 20 0,35 0,35 0,35 Other operating income — — — OPERATING INCOME (1) 0,35 0,35 0,35 Programmable aid 1 029,88 844,61 -38,65 65,87 949,13 Macro-economic support 380,18 383,01 — — 383,01 Regional programmes 12,12 23,06 10,82 21,08 33,32 Interest-rate subsidies 9,62 0,27 — — 0,27 Emergency aid 120,80 125,02 56,01 65,92 134,92 Refugee aid 26,55 8,15 -10,60 -5,76 12,99 Aids fund — — 0,00 — -0,00 Risk capital 143,28 60,80 — — 60,80 Stabex 7,29 66,40 — — 66,40 Sysmin 27,22 14,79 6,11 5,32 13,99 Transfers from former EDFs 10,42 4,68 -7,81 3,13 15,61 Structural adjustment 89,68 15,89 — — 15,89 Debt relief 100,00 7,60 — 13,99 21,59 Payments World Bank — — — 1,60 1,60 Sectorial policy 277,77 594,38 264,31 162,09 492,16 Compensation export receipts 20,67 26,33 40,04 10,39 - 3,32 Centre for the development of enterprise 14,64 20,07 20,07 16,51 16,51 Centre for the development of agriculture 12,46 12,03 15,15 14,21 11,09 General Assembly 0,63 1,15 — - 0,08 1,07 Special operations — — — — — Technical assistance — 0,00 -0,08 -0,04 0,04 Intra-ACP projects 58,96 131,42 64,19 131,68 198,91 Congo fund 0,09 89,23 — 0,57 89,80 Operational expenditure 2 342,25 2 428,88 419,58 966,63 2 515,78 Administrative and financial expenditure 16 71,68 55,86 24,83 -2,47 28,56 Total expenditure (cash basis) 17 2 413,93 2 484,73 Accrual adjustments 18 n.a. 59,42 -0,19 TOTAL EXPENDITURE (accrual basis) (2) 19 n.a 2 544,15 863,99 1 470,65 2 544,15 NET COST OF OPERATING ACTIVITIES (2-1) n.a. 2 543,81 2 543,81 — Financial income 20 12,24 23,95 23,95 Financial charges 21 -0,37 -0,19 -0,19 Provisions 3 - 0,01 - 6,36 -6,36 Surplus/(deficit) from financial activities (3) 11,87 17,41 17,41 NET ECONOMIC RESULT (1-2+3) n.a. -2 526,40 -2 526,40





6TH EDF ECONOMIC OUTTURN ACCOUNT 2005

(EUR million) Notes Cash basis expenditure 2004 Cash basis expenditure 2005 Increase in prefinancing Increase in invoices to be paid Accrual basis expenditure 2005 Operating interest 20 — — — Other operating income — — — OPERATING INCOME (1) — — — Programmable aid 27,20 20,02 -3,80 16,01 39,83 Macro-economic support — — — — — Regional programmes — — — — — Interest-rate subsidies — -0,02 — — -0,02 Emergency aid — — — — — Refugee aid — -0,05 -0,05 0,13 0,13 Aids fund — — 0,00 — -0,00 Risk capital 2,28 1,22 — — 1,22 Stabex — — — — — Sysmin 0,04 -0,05 — 0,09 0,04 Transfers from former EDFs 0,33 0,38 -0,12 0,28 0,78 Structural adjustment — — — — — Debt relief — — — — — Payments World Bank — — — — — Sectorial policy — — — — — Compensation export receipts — — — — — Centre for the development of enterprise — — — — — Centre for the development of agriculture — — — — — General Assembly — — — — — Special operations — — — — — Technical assistance — — — — — Intra-ACP projects — — — 1,91 1,91 Congo fund — — — — — Operational expenditure 29,84 21,50 -3,97 18,42 43,89 Administrative and financial expenditure 16 0,16 0,11 — — 0,11 Total expenditure (cash basis) 17 30,00 21,62 Accrual adjustments 18 n.a. 22,30 - 0,09 TOTAL EXPENDITURE (accrual basis) (2) 19 n.a. 43,92 -3,97 18,42 43,92 NET COST OF OPERATING ACTIVITIES (2-1) n.a. 43,92 43,92 Financial income 20 — — — Financial charges 21 -0,09 -0,09 -0,09 Provisions 3 — -3,48 -3,48 Surplus/(deficit) from financial activities (3) -0,09 -3,57 -3,57 NET ECONOMIC RESULT (1-2+3) n.a. -47,49 -47,49





7TH EDF ECONOMIC OUTTURN ACCOUNT 2005

(EUR million) Notes Cash basis expenditure 2004 Cash basis expenditure 2005 Increase in prefinancing Increase in invoices to be paid Accrual basis expenditure 2005 Operating interest 20 — — — Other operating income — — OPERATING INCOME (1) — — — Programmable aid 203,06 159,10 26,94 62,62 194,78 Macro-economic support — — — — — Regional programmes — — — — — Interest-rate subsidies 0,67 0,02 — — 0,02 Emergency aid -0,42 -0,00 — 0,01 0,01 Refugee aid 0,04 -0,46 -0,64 0,31 0,49 Aids fund — — — — — Risk capital 10,07 12,23 — — 12,23 Stabex 0,50 50,40 — — 50,40 Sysmin 20,33 9,69 6,13 4,73 8,28 Transfers from former EDFs 10,09 4,30 -7,69 2,85 14,83 Structural adjustment 0,12 0,03 — — 0,03 Debt relief — — — 0,07 0,07 Payments World Bank — — — — — Sectorial policy — — — — — Compensation export receipts — — — — — Centre for the development of enterprise — — — — — Centre for the development of agriculture — — — — — General Assembly — — — — — Special operations — — — — — Technical assistance — — — — — Intra-ACP projects — — — 9,55 9,55 Congo fund — — — — — Operational expenditure 244,47 235,31 24,75 80,13 290,69 Administrative and financial expenditure 16 — — — — — Total expenditure (cash basis) 17 244,47 235,31 Accrual adjustments 18 n.a. 55,38 — TOTAL EXPENDITURE/accrual basis (2) 19 n.a. 290,69 24,75 80,13 290,69 NET COST OF OPERATING ACTIVITIES (2-1) n.a. 290,69 290,69 Financial income 20 — — — Financial charges 21 — — — Provisions 3 -0,01 -2,68 -2,68 Surplus/(deficit) from financial activities (3) -0,01 -2,68 -2,68 NET ECONOMIC RESULT (1-2+3) n.a. - 293,37 - 293,37





8TH EDF ECONOMIC OUTTURN ACCOUNT 2005

(EUR million) Notes Cash basis expenditure 2004 Cash basis expenditure 2005 Increase in prefinancing Increase in invoices to be paid Accrual basis expenditure 2005 Operating interest 20 — — Other operating income — — OPERATING INCOME (1) — — Programmable aid 799,62 665,49 -61,79 -12,76 714,52 Macro-economic support 103,81 77,34 — — 77,34 Regional programmes — — — — — Interest-rate subsidies 8,94 0,27 — — 0,27 Emergency aid 2,45 1,43 -3,70 -4,09 1,04 Refugee aid 26,51 8,66 -9,91 -6,20 12,37 Aids fund — — — — — Risk capital 130,93 47,35 — — 47,35 Stabex 6,79 16,00 — — 16,00 Sysmin 6,84 5,15 -0,02 0,50 5,67 Transfers from former EDFs — — — — — Structural adjustment 89,57 15,86 — — 15,86 Debt relief — — — 13,92 13,92 Payments World Bank — — — 1,60 1,60 Sectorial policy — 14,70 6,05 -0,23 8,41 Compensation export receipts — — 16,93 -1,65 -18,57 Centre for the development of enterprise — — — — — Centre for the development of agriculture — — — — — General Assembly — — — — — Special operations — — — — — Technical assistance — — — — Intra-ACP projects — — — — — Congo fund — — — — — Operational expenditure 1 175,46 852,24 -52,45 451,24 895,78 Administrative and financial expenditure 16 16,44 1,87 -0,24 -0,37 1,74 Total expenditure (cash basis) 17 1 191,91 854,11 Accrual adjustments 18 n.a. 43,41 — TOTAL EXPENDITURE/accrual basis (2) 19 n.a. 897,51 -52,68 450,87 897,51 — — NET COST OF OPERATING ACTIVITIES (2-1) n.a. 897,51 897,51 Financial income 20 9,63 8,84 8,84 Financial charges 21 — — — Provisions 3 — -0,19 -0,19 Surplus/(deficit) from financial activities (3) 9,63 8,65 8,65 NET ECONOMIC RESULT (1-2+3) n.a. - 888,87 - 888,87





9TH EDF ECONOMIC OUTTURN ACCOUNT 2005

(EUR million) Notes Cash basis expenditure 2004 Cash basis expenditure 2005 Increase in prefinancing Increase in invoices to be paid Accrual basis expenditure 2005 Operating interest 20 0,35 0,35 0,35 Other operating income OPERATING INCOME (1) 0,35 0,35 0,35 Programmable aid — — — — — Macro-economic support 276,37 305,66 — — 305,66 Regional programmes 12,12 23,06 10,82 21,08 33,32 Interest-rate subsidies — — — — — Emergency aid 118,77 123,58 59,72 70,01 133,87 Refugee aid — — — — — Aids fund — — — — — Risk capital — — — — — Stabex — — — — — Sysmin — — — — — Transfers from former EDFs — — — — — Structural adjustment — — — — — Debt relief 100,00 7,60 — — 7,60 Payments World Bank — — — — — Sectorial policy 277,77 579,68 258,25 162,32 483,75 Compensation export receipts 20,67 26,33 23,12 12,04 15,25 Centre for the development of enterprise 14,64 20,07 20,07 16,51 16,51 Centre for the development of agriculture 12,46 12,03 15,15 14,21 11,09 General Assembly 0,63 1,15 — - 0,08 1,07 Special operations — — — — — Technical assistance — 0,00 -0,08 -0,04 0,04 Intra-ACP projects 58,96 131,42 64,19 120,23 187,45 Congo fund 0,09 89,23 — 0,57 89,80 Operational expenditure 892,48 1.319,83 451,24 416,84 1 285,42 Administrative and financial expenditure 16 55,08 53,88 25,07 -2,10 26,71 Total expenditure (cash basis) 17 947,56 1.373,70 Accrual adjustments 18 n.a. -61,67 -0,10 TOTAL EXPENDITURE/Accrual basis (2) 19 n.a. 1.312,03 476,31 414,74 1.312,03 NET COST OF OPERATING ACTIVITIES (2-1) n.a. 1.311,69 1.311,69 Financial income 20 2,61 15,12 15,12 Financial charges 21 -0,27 -0,10 -0,10 Provisions 3 — — — Surplus/(deficit) from financial activities (3) 2,34 15,02 15,02 NET ECONOMIC RESULT (1-2+3) n.a. -1 296,67 -1 296,67





CASH FLOW STATEMENT 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Net economic result -2 526,40 Increase in provision 6,36 Financial income adjustment -1,40 operational income adjustment 0,30 Accrual adjustments 59,42 Financial charges 0,19 provision for bank charges -0,02 Decrease in transactions awaiting finalisation 5,85 Cash flows from operating activities 2 455,70 Cash flows from financing activities 2 199,70 Net increase/decrease in cash and cash equivalent - 256,00 Treasury balance at beginning of period 261,89 Stabex security accounts at beginning of period 430,17 Congo account 106,83 Cash and cash equivalent at beginning of period 798,88 Treasury balance at end of period 270,55 Stabex security accounts at end of period 371,88 Congo account 19,67 SWIFT account - 119,23 Cash and cash equivalent at end of period 542,87

CONSOLIDATED STATEMENT IN CHANGES IN CAPITAL 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Fund capital Uncalled funds Called funds capital Other reserves Accumulated reserves Total equity (a) (b) (c) (d) (e) (h)=(e)+(d)+(c) Closing balance 2003 41 895,15 -19 275,15 22 620,00 1 033,84 n.a. n.a. Contributions — — 2 315,00 — — 2 315,00 Capital increase 355,00 - 250,00 105,00 — — 105,00 Transfers from former EDF — — — — — — Net economic result — — — — — — Change in accounting policy — — — — - 24 261,09 -24 261,09 Closing balance 2004 42 250,15 -17 210,15 25 040,00 1 033,84 -24 261,09 1 812,75 Contributions — — 2 350,00 — — 2 350,00 Capital increase 627,00 - 627,00 — — — — Transfers from former EDF — — — — — — Net economic result — — — — -2 526,40 -2 526,40 Other movements — — — — — — Closing balance 2005 42 877,15 -15 487,15 27 390,00 1 033,84 -26 787,49 1 636,35





6TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

(EUR million) Fund capital Uncalled funds Called funds capital Other reserves Accumulated reserves Total equity (a) (b) (c) (d) (e) (h)=(e)+(d)+(c) Closing balance 2003 7 560,00 — 7 560,00 - 126,19 n.a. n.a. Contributions — — — — — — Capital increase — — — — — — Transfers to 9th EDF — — — -32,24 — -32,24 Net economic result — — — — — — Change in accounting policy — — — — -7 243,09 -7 243,09 Closing balance 2004 7 560,00 — 7 560,00 - 158,43 -7 243,09 158,48 Contributions — — — — — — Capital increase — — — — — — Transfers to 9th EDF — — — -24,56 — -24,56 Net economic result — — — — -47,49 -47,49 Other movements — — — — — — Closing balance 2005 7 560,00 — 7 560,00 - 182,99 -7 290,58 86,43





7TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

(EUR million) Fund capital Uncalled funds Called funds capital Other reserves Accumulated reserves Total equity (a) (b) (c) (d) (e) (h)=(e)+(d)+(c) Closing balance 2003 10 940,00 — 10 940,00 - 420,58 n.a. n.a. Contributions — — — — — — Capital increase — — — — — — Transfers to 9th EDF — — — -52,48 — -52,48 Net economic result — — — — — — Change in accounting policy — — — — -9 233,99 -9 233,99 Closing balance 2004 10 940,00 — 10 940,00 - 473,06 -9 233,99 1 232,96 Contributions — — — — — — Capital increase — — — — — — Transfers to 9th EDF — — — -86,09 — -86,09 Net economic result — — — — - 293,37 - 293,37 Other movements — — — — — — Closing balance 2005 10 940,00 — 10 940,00 - 559,14 -9 527,36 853,50





8TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

(EUR million) Fund capital Uncalled funds Called funds capital Other reserves Accumulated reserves Total equity (a) (b) (c) (d) (e) (h)=(e)+(d)+(c) Closing balance 2003 12 840,00 -8 720,00 4 120,00 -1 112,55 n.a. n.a. Contributions 2 315,00 — — 2 315,00 Capital increase — — — — — — Transfers to 9th EDF — — — - 207,00 — - 207,00 Net economic result — — — — — — Change in accounting policy — — — — -6 963,08 -6 963,08 Closing balance 2004 12 840,00 -6 405,00 6 435,00 -1 319,54 -6 963,08 -1 847,63 Contributions — — 2 350,00 — — 2 350,00 Capital increase — — — — — — Transfers to 9th EDF — — — - 283,89 — - 283,89 Net economic result — — — — - 888,87 - 888,87 Other movements — — — — — — Closing balance 2005 12 840,00 -4 055,00 8 785,00 -1 603,43 -7 851,95 - 670,38





9TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

(EUR million) Fund capital Uncalled funds Called funds capital Other reserves Accumulated reserves Total equity (a) (b) (c) (d) (e) (h)=(e)+(d)+(c) Closing balance 2003 10 555,15 -10 555,15 — 2 693,15 n.a. n.a. Contributions — — — — Capital increase 355,00 - 250,00 105,00 — — 105,00 Transfers from other EDF — — — 291,72 — 291,72 Net economic result — — — — — — Change in accounting policy — — — — - 820,93 - 820,93 Closing balance 2004 10 910,15 -10 805,15 105,00 2 984,87 - 820,93 2 268,94 Contributions — — — — — — Capital increase 627,00 - 627,00 — — — — Transfers from other EDF — — — 394,54 — 394,54 Net economic result — — — — -1 296,67 -1 296,67 Other movements — — — — — — Closing balance 2005 11 537,15 -11 432,15 105,00 3 379,41 -2 117,60 1 366,81

1.10. NOTES TO THE ACCOUNTS

(1) MEMBER STATE (EUR-15) CONTRIBUTIONS

Details of contributions called up and received during the year 2005 are shown in Table 1. The EIB contribution is the sum of the Special Congo Contribution (see note 10) and the EUR 120 million transfer referred to in note 12.

Table 1

Contributions called up and received for the year ended 31 December 2004 and 2005 for the 8th and 9th EDF

(EUR million) % Called up in 2004 Received in 2004 Outstanding at 31.12.2004 Called up in 2005 Received in 2005 Outstanding at 31.12.2005 Total called up Austria 2,65 58,70 58,70 — 61,75 61,75 — 181,92 Belgium 3,92 86,83 86,83 — 91,34 91,34 — 269,11 Denmark 2,14 47,40 47,40 — 49,86 49,86 — 146,91 Finland 1,48 32,78 32,78 — 34,48 34,48 — 101,60 France 24,30 538,25 576,78 42,38 566,19 594,85 13,72 1 668,20 Germany 23,36 517,42 517,42 — 544,29 544,29 — 1 603,66 Greece 1,25 27,69 27,69 — 29,13 29,13 — 85,81 Ireland 0,62 13,73 13,89 — 14,45 14,45 — 42,56 Italy 12,54 277,76 277,76 — 292,18 292,18 — 860,87 Luxembourg 0,29 6,42 6,42 — 6,76 6,76 — 19,91 Netherlands 5,22 115,62 115,62 — 121,63 121,63 — 358,35 Portugal 0,97 21,49 25,56 — 22,60 22,60 — 66,59 Spain 5,84 129,36 129,36 — 136,07 136,07 — 400,92 Sweden 2,73 60,47 71,25 — 63,61 63,61 — 187,41 United Kingdom 12,69 281,08 461,28 — 295,68 295,68 — 871,17 EIB 8th EDF 100,00 100,00 — 20,00 20,00 — 120,00 Stabex 1 800,00 Total 8th EDF 2 315,00 2 548,75 42,38 2 350,00 2 378,66 13,72 8 785,00 EIB 9th EDF 105,00 105,00 — — — — 105,00 Total 9th EDF 105,00 105,00 — — — — 105,00 100 2 420,00 2 653,75 42,38 2 350,00 2 378,66 13,72 8 890,00

(2) DEBTORS

The detail of this heading is shown in Table 2:

Table 2

(EUR million) Debtors Note 6th 7th 8th 9th Total at 31.12.2005 Total at 1.1.2005 Interest on late contributions 2.1 — — — 2,13 2,13 2,43 Interest on late contributions — Stabex 2.2 — — — 0,79 0,79 0,79 Interest receivable — European banks 2.3 — — — 0,84 0,84 0,16 Interest receivable — Stabex security 2.4 — — 0,72 0,72 — Debit notes/ROs to be issued 2.5 2,38 15,38 53,19 51,19 122,15 99,92 Open recoveries 2.6 10,24 4,76 2,78 0,74 18,52 17,74 Total 12,62 20,15 55,97 56,41 145,14 121,04

In accordance with the provisions of the Cotonou Agreement, interest income is presented in the balance sheet of the 9th EDF. The sole exception is the interest earned in Stabex security accounts which is presented in the 8th EDF as this aid instrument does not feature in the 9th EDF.

(2.1) Interest on late contributions

In accordance with Article 40(4) of the 9th EDF Financial Regulation, interest is charged to the Member States in the event of late payment of the called-up contributions. Details of interests charged and subsequently paid by the Member States are given in Table 2.1.

Table 2.1

Interest for late payment of EDF contributions for the year ended 31.12.2005

(EUR million) Balance at 1.1.2005 Interest payable 2005 Interest paid 2005 Balance at 31.12.2005 Austria 0,01 -0,01 — — Belgium 0,01 0,01 0,01 0,01 Denmark — — — — Finland — 0,05 0,05 — France 1,18 0,06 0,20 1,04 Germany 0,10 0,27 0,37 — Greece — — — — Ireland 0,00 -0,00 — — Italy — — — — Luxembourg 0,01 0,01 0,02 — Netherlands — — — — Portugal 0,03 -0,03 — — Spain 0,06 — — 0,06 Sweden — — — — United Kingdom 1,02 — — 1,02 Total 2,43 0,35 0,64 2,13

(2.2) Interest on late contributions Stabex

All Stabex contributions were received prior to the beginning of the 2005 financial year. The amount shown for interest due represents the outstanding balance carried over and corresponds to interest due from France.

(2.3) Interest receivable European banks and Stabex main account

This amount represents interest earned on the Stabex security accounts during the financial year 2005 but only credited to the bank account in 2006. This interest is the property of the relevant beneficiary countries.

(2.4) Interest receivable Stabex security accounts

This amount represents interest earned on the Stabex security accounts during the financial year 2005 but only credited to the bank account in 2006.

(2.5) Debit notes/recovery orders to be issued

In order to apply accrual accounting principles, the authorising officer has calculated the amount of advances to be recovered for which recovery orders have yet to be issued.

Details are shown Table 2.2:

Table 2.2

(EUR million) Debit notes/ROs to be issued 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31.12.2005 2,38 15,38 53,19 51,19 122,15 Total at 1.1.2005 2,58 14,15 55,82 27,37 99,92 Increase -0,20 1,24 -2,63 23,82 22,22

(2.6) Recoveries

The movements for the year on issued recovery orders are shown in Table 2.3:

Table 2.3

(EUR million) 6th EDF 7th EDF 8th EDF 9th EDF Total Open recovery orders at 31.12.2004 5,54 8,00 3,71 0,93 18,18 correction of opening balance — -0,03 -0,42 — -0,44 Open recovery orders at 1.1.2005 5,54 7,98 3,30 0,93 17,74 New recovery orders issued in 2005 13,49 13,17 26,44 8,24 61,34 Recovery orders closed in 2005 8,79 16,38 26,96 8,43 60,56 cashed 6,19 8,91 24,98 8,42 48,50 waived (Article 73 FR) 1,97 1,20 0,32 0,00 3,49 off set 0,63 6,27 1,66 0,01 8,57 Open recovery orders at 31.12.2005 10,24 4,76 2,78 0,74 18,52

The closing balance for recovery orders (EUR 18,52 million) represents the value of recovery orders issued but unpaid at the year end. During 2005 recovery order files closed amounted to EUR 60,56 million. Of this total, an amount of EUR 3,49 million was written off by the authorising officer during the year and an amount of EUR 8,57 million was recovered by the accounting officer by way of offsetting, in accordance with the provisions of Article 46 of the 9th EDF Financial Regulation.

(3) PROVISION FOR DOUBTFUL DEBTS

In compliance with IPSAS 19, the accounting officer has established a provision for doubtful debts on two variables:

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

— the evaluation of the non-recovery risk, in collaboration with the authorising officer.

Potential exchange rate losses (on recovery orders not issued in euro) are not taken into account for this calculation, as these are not considered to be material.

The detail of this provision is shown is Table 3:

Table 3

(EUR million) Provision for doubtful debts 6th EDF 7th EDF 8th EDF 9th EDF Total Balance at 31.12.2005 3,49 2,69 0,19 — 6,37 Balance at 1.1.2005 0,01 0,01 — — 0,02 Increase 3,48 2,68 0,19 — 6,36

(4) NET PREFINANCING

Until 2004 financial year, payments on account and advances were treated as expenditure on projects in the annual accounts of the EDF (except for advances of study awards and to bodies such as GTZ, AGRER and AEC). Following the principles of accrual accounting, advance payments are now classified as assets. The figures for open prefinancing have been provided by the authorising officer (see Table 4.1) and have been revised downwards by the open recoveries concerning advances and by the calculated figures for invoices to be sent, as shown in Table 4.

Table 4

(EUR million) Net prefinancing Note 6th EDF 7th EDF 8th EDF 9th EDF Total 31.12.2005 Total1.1.2005 Study awards 1,49 — — — 1,49 2,41 AEC 0,44 — — — 0,44 0,56 GTZ 0,00 — — — 0,00 1,24 Adjustments 0,03 — — — 0,03 0,03 Prefinancing 4.1 47,67 307,68 1063,75 1023,80 2 442,90 1 998,49 — open recoveries 2.3 10,24 4,76 2,78 0,74 18,52 17,74 — recovery orders to be issued 2.5 2,38 15,38 53,19 51,19 122,15 99,92 Total 37,01 287,54 1 007,78 971,88 2 304,20 1 885,06

(4.1) Prefinancing

Many contracts provide for payments of advances before the commencement of works, deliveries of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments on account on the basis of progress reports. Advances, which normally are paid in the currency of the country or territory where the project is executed, are kept separate in the accounts of the authorising officer to allow them to be cleared.

The table below summarises outstanding advances (except for Structural Adjustment programmes and direct budgetary support programme) at the end of the year. Conversion into euro is made using the official exchange rate of 31 December 2005

Table 4.1

(EUR million) Prefinancing 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31.12.2005 47,67 307,68 1 063,75 1 023,80 2 442,90 Total at 1.1.2005 51,64 282,93 1 116,43 547,49 1 998,49 Increase -3,97 24,75 -52,68 476,31 444,41

(5) OTHER CURRENT ASSETS

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects as shown in Table 5.

Table 5

(EUR million) Other current assets 6th EDF 9th EDF Total at 31.12.2005 Total at 31.12.2004 Expenditure to be finalised 2,85 0,00 2,85 6,93 Devaluation 0,00 0,00 0,00 -0,09 Income to regularise 0,00 -0,06 -0,06 -0,49 Partial recoveries 0,00 0,51 0,51 0,53 Total 2,85 0,46 3,31 6,89

(6) DEFERRED CHARGES

This heading represents the total funds available for the relevant ACP State. The amount shown in 7th and 8th EDF concerns deferred Stabex expenditure, whilst the amount shown in 9th EDF concerns the available special Democratic Republic of the Congo Fund. The total amounts due to the states concerned (including accrued interest for 2005 — see note 2 and Table 2 above) are shown in Table 6.

Table 6

(EUR million) Stabex movement schedule for the year ended 31.12.2005 Balance per 31.12.2004 Balance per 1.1.2005 Interest Payments Balance at 31.12.2005 Benin 0,05 0,05 0,00 0,05 Burkina Faso 0,75 0,75 0,02 0,76 Burundi 26,29 26,29 0,56 0,40 26,45 Cameroon 5,27 5,27 0,11 5,38 Comores 0,05 0,05 0,00 0,05 Dominica 5,18 5,18 0,11 5,29 Ethiopia 0,88 0,88 0,02 0,90 Gambia 0,98 0,98 0,02 1,01 Grenada 0,32 0,32 0,01 0,33 Guinea-Bissau 0,32 0,32 0,01 0,33 Ivory Coast 42,01 42,01 0,90 42,91 Jamaica 0,57 0,57 0,01 0,59 Madagascar 13,55 13,55 0,29 13,84 Malawi 0,89 0,89 0,02 0,91 Mauritania 17,39 17,39 0,37 17,76 Papua-New Guinea 0,64 0,64 0,01 0,66 Rwanda 5,62 5,62 0,12 5,74 Senegal 9,86 9,86 0,21 10,07 Sierra Leone 2,99 2,99 0,06 3,05 Saint Lucia 13,41 13,41 0,29 13,69 Solomon Islands 29,50 29,50 0,56 16,00 14,06 Sudan 196,92 196,92 3,93 50,00 150,85 St Vincent and Grenadines 3,87 3,87 0,08 3,95 Tanzania 30,27 30,27 0,65 30,92 Tonga 0,08 0,08 0,00 0,09 Uganda 19,73 19,73 0,42 20,15 Zimbabwe 2,77 2,77 0,06 2,83 Total stabex 430,17 430,17 8,84 66,40 372,60 DR Congo 106,83 106,83 1,07 89,23 20,58 Total Stabex and Congo 537,00 537,00 11,82 155,63 393,19

The total of the deferred Stabex expenditure represents the total of Stabex funds available and which will be transferred to the relevant beneficiary ACP State at a future date. This total amount concerns the 8th EDF, with the exception of EUR 8,63 million allocated to Burundi and EUR 53,83 million allocated to Sudan which fall under the 7th EDF.

In addition to the funds shown above, there are other Stabex funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State have reached agreement on how the Stabex funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé 4 Agreement (as revised), the funds are transferred into an interest-bearing double signature account (Commission official and Beneficiary State) opened in the name of the ACP State. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended. The funds are the property of the ACP State and as such are not recorded as assets in the EDF annual accounts. Details on these accounts are however provided in the annual EDF financial management report.

(7) LIAISON ACCOUNTS

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

Balances on the liaison accounts at 31 December 2005 are detailed in Table 7.

Table 7

(EUR million) Liaison accounts 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2005 Total at 31.12.2004 To/from 6th EDF — 2 279,31 -2 065,45 - 290,05 -76,20 - 116,11 To/from 7th EDF -2 279,31 — — 1 582,59 - 696,71 -1 018,11 To/from 8th EDF 2 065,45 — - 928,96 1 136,49 2 385,99 To/from 9th EDF 290,05 -1 582,59 928,96 — - 363,58 -1 251,77 76,20 696,71 -1 136,49 363,58 — —

(8) SECURITY CASH ACCOUNTS

This heading shows the cash balance remaining on the security Stabex accounts opened in the name of the various beneficiary States and the special D R Congo fund account. See also note 6.

(9) CASH AND CASH EQUIVALENTS

In accordance with Article 129 of the 9th EDF Financial Regulation, the treasury is presented in the balance sheet of the 9th EDF. Table 8 shows the breakdown of total cash at bank:

Table 8

(EUR million) Cash and cash equivalents Note Balance at 31.12.2005 Balance at 1.1.2005 Treasury accounts 9.1 1,53 82,33 ACP paying agents 9.2 47,86 42,73 EUR paying agents 9.3 207,99 17,04 Stabex current account 9.4 12,17 19,59 Funds en route 9.5 1,00 100,20 Total 270,55 261,89

(9.1) Treasury accounts

Accounts held with the central banks of the Member States into which EDF contributions are paid. The accounting officer makes transfers from these accounts to the EUR paying agents.

(9.2) ACP paying agents

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

(9.3) Euro paying agents

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

(9.4) Stabex current account

This amount represents the cash balance remaining on the Stabex main account. EUR 12 165 852 will be made available for Togo by way of transfer to a security account, once instructions have been received from the authorising officer.

The interest earned in this account is periodically transferred to the EDF main account to be used in accordance with Articles 1.3 and 9 of the Internal Agreement.

(9.5) Funds en route

Some replenishment sent before the year end were only registered by the beneficiary bank in 2006.

(10) SUBSCRIBED FUNDS — FUND CAPITAL (A)

This represents the total amount receivable from the Member States for the relevant EDF fund as laid down in each of the internal agreements between the Member States and the beneficiary African, Caribbean and Pacific (ACP) States and the Overseas Countries and Territories (OCT).

The initial allocation for the (current) 9th EDF, which originally totalled EUR 10 555,15 million, has since been increased by an amount of EUR 105 million in 2004, which was released by the EIB in accordance with the provisions of Council Decision 2003/583/EC (3). This additional allocation is in favour of actions to be undertaken in the Democratic Republic of the Congo.

Article 2(2) of the Internal Agreement for the 9th EDF set a EUR 1 000 million reserve. EUR 250 million were released in 2004 following the adoption of Council Decision 2004/289/CE in order to establish a water facility (4). A further EUR 627 million were released during 2005 following Decisions No 6/2005 (5) and 7/2005 (6) of the ACP-EC Council of Ministers of 22 November 2005.

(11) UNCALLED FUNDS (B)

Initial allocation not yet receivable from Member States (EU-15).

(12) CALLED FUNDS CAPITAL (C)

This represents the amount of the initial allocations which has been called up for transfer to the treasury accounts by the Member States in accordance with the procedure in Article 8 of the Financial Regulation, whereby each year the Commission must establish and communicate to the Council a statement of the payments to be made in the following year and a schedule of calls for contributions. The Commission must justify the amount requested on the basis of its capacity to deliver the proposed level of resources effectively.

Contributions are still being called up from the 8th EDF, with the sole exception of the EUR 105 million in favour of the Democratic Republic of the Congo called in from the 9th Fund.

In an extraordinary meeting of the ACP Working Group at Council on 26 October 2004, Member Sates unanimously decided that the EIB should transfer an amount of EUR 100 million from its EDF treasury to the Commission's EDF treasury, with a consequent reduction of the overall amount of the contributions from Member States. Following the same principle, in 2005 Member States decided on a second transfer of EUR 20 million from the EIB treasury to the Commission.

Details of amounts called up and received during the year are shown in Table 1 (see note 1).

(13) CUMULATIVE RESERVES (D)

Up to the 2004 financial year the economic outturn of each fund was not included in the balance sheet. This category regroups the effects of the change in accounting policy.

The cumulative reserves for 2004 include the cumulative expenditure and interest (see Table 9.1) until 31 December 2004, as shown in Table 9.

Table 9

(EUR million) Cumulative reserves Note 6th EDF 7th EDF 8th EDF 9th EDF Balance at 31.12.2004 Cumulative interest at 31.12.2004 13 37,78 400,74 72,04 9,02 519,58 — cumulative payments at 31.12.2003 7 282,16 9 605,10 6 339,20 277,66 23 504,12 — payments 2004 30,00 244,47 1 191,91 947,56 2 413,93 Accrual adjustments 18 31,39 214,86 495,98 395,54 1 137,77 — provisions 3 0,01 0,01 — — 0,02 — financial costs 21 0,09 — — 0,27 0,37 Total -7 243,09 -9 233,99 -6 963,08 - 820,93 -24 261,09





Table 9.1

(EUR million) Cumulative interest up to 31.12.2004 Notes 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2004 Capitalised interest 13.1 13,70 49,00 35,45 1,80 99,95 Stabex interest 13.1 24,08 319,89 — — 343,97 EIB interest 13.1 — 3,41 — 0,12 3,53 European banks interest 13.1 — 22,47 — 4,45 26,92 Interest late contributions 13.2 — 5,96 1,86 0,73 8,56 Interest income Stabex security accounts 13.3 — — 34,73 — 34,73 Interest income special Congo contribution 13.3 — — — 1,92 1,92 Total 37,78 400,74 72,04 9,02 519,58

(13.1) Capitalised interest, Stabex interest, EIB interest, European banks interest

The interest earned on accounts with European paying agents (including the main Stabex account) can be used to finance projects in accordance with Articles 1(3) and 9 of the Internal Agreement.

This heading represents the amount of interest on deposited funds which can be committed for the financing of such projects. This interest results in an effective increase in the Funds' overall appropriations.

(13.2) Interest on late payment

This is interest due on the late payment of contributions by Member States or the late reimbursement of recovery orders. Such funds can be used for financing projects. This interest results in an effective increase in the Funds' overall appropriations.

(13.3) Interest income, Stabex security accounts and the special Democratic Republic of the Congo account

This represents the accumulated income generated by the Stabex security accounts and the special Democratic Republic of the Congo account. Whilst such income appears to increase the total of the Fund it should be borne in mind that any income generated by these accounts is earmarked for the specific purpose and beneficiary State.

(14) OTHER RESERVES (e)

This heading includes the replenishment of Stabex resources under 6th EDF, and the resources transferred from other EDFs.

The replenishment of Stabex resources (EUR 185,10 million) comprises direct contributions by the ACP States (replenishment of resources) and the amounts by which transfer entitlements have been reduced at the request of the ACP States. The obligation to replenish Stabex resources was abolished by the ACP-EDF Council Decision of 19 November 1991.

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the 9th EDF after decommitment. The resources transferred from other EDFs increase the appropriation of the receiving fund and reduce that of the Fund of origin. The total balance is shown in Table 10 below.

Table 10

(EUR million) Inter-EDF transfers 6th EDF 7th EDF 8th EDF 9th EDF Consolidated Total at 31.12.2005 to/from 4th EDF 144,32 — — — — 144,32 to/from 5th EDF 177,63 526,78 — — — 704,41 to/from 6th EDF — 181,76 94,00 414,30 690,05 690,05 to/from 7th EDF - 181,76 — 532,82 734,86 1085,92 1085,92 to/from 8th EDF -94,00 - 532,82 — 2 230,25 1 603,43 1 603,43 to/from 9th EDF - 414,30 - 734,86 -2 230,25 — -3 379,41 -3 379,41 Total - 368,10 - 559,14 -1 603,43 3 379,41 — 848,74

(15) CREDITORS

The total creditor balance is detailed in Table 11:

Table 11

(EUR million) Creditors Note 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2005 Total at 1.1.2005 Contributions received in advance 15.1 — — 1,40 1,40 180,36 Liaison a/c with General Budget 15.2 — — — 119,23 119,23 — Provision for bank charges 15.3 — — — 0,02 0,02 0,05 Outstanding Stabex payments 15.4 — 62,46 310,14 — 372,60 430,17 Outstanding Special Congo funds 15.5 — — — 20,58 20,58 106,83 Accruals Non finalised payments 15 6 1,17 2,67 13,42 5,54 22,81 58,68 Eligibility to be confirmed 15 7 1,14 11,62 50,14 53,43 116,32 178,98 Accrued expenditure 15 8 36,45 133,92 547,61 507,99 1225,97 623,42 Total 38,77 210,67 921,32 708,19 1 878,94 1 578,49

(15.1) Contributions received in advance

Certain contributions were paid in advance by Member States, as shown in Table 11.1:

Table 11.1

(EUR million) Balance at 31.12.2005 Balance at 1.1.2005 Ireland 1,40 0,16 United Kingdom — 180,20 Total 1,40 180,36

(15.2) Liaison account with General Budget

As from the beginning of financial year 2005, payments to beneficiaries within the Union in euros or in other currencies are executed through SWIFT by the General Budget of the European Commission. For this purpose, a current account has been opened.

(15.3) Provisions for bank charges

This amount is made up of transactions relating to bank charges for the year ended 31 December 2005, which were debited to the relevant bank accounts after the year end.

(15.4) Outstanding Stabex payments

This balance represents the amounts due to beneficiary ACP States in respect of the Stabex aid instrument. The total represents the balances held on the Stabex security accounts.

(15.5) Outstanding special Democratic Republic of the Congo Funds

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

(15.6) Non-finalised payments

Payments authorised before 31 December 2005 but executed by the bank in 2006. The amounts registered in the accounts of the authorising officer are shown in Table 11.2.

Table 11.2

(EUR million) Non-finalised payments 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31.12.2005 1,17 2,67 13,42 5,54 22,81 Total at 1.1.2005 0,13 0,98 10,21 47,36 58,68 Increase 1,05 1,69 3,21 -41,82 -35,87

(15.7) Eligibility to be confirmed

Invoices which arrived before the end of the financial year 2005 but which had still not been analysed at 31 December 2005. The amounts registered in the accounts of the authorising officer are shown in Table 11.3.

Table 11.3

(EUR million) Eligibility to be confirmed 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31.12.2005 1,14 11,62 50,14 53,43 116,32 Total at 1.1.2005 0,86 106,34 52,46 19,32 178,98 Increase 0,27 -94,72 -2,32 34,11 -62,66

(15.8) Accrued expenditure

These figures reflect expenditure which has been incurred but has not yet been invoiced (e.g. work in progress on capital projects). The amounts calculated by the authorising officer are shown in Table 13.4.

Table 11.4

(EUR million) Accrued expenditure 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31.12.2005 36,45 133,92 547,61 507,99 1 225,97 Total at 1.1.2005 19,35 -39,25 557,78 85,54 623,42 Increase 17,10 173,17 -10,17 422,45 602,55

(16) ADMINISTRATIVE EXPENDITURE

This heading includes administrative and financial expenditure financed by bank interest. Under the 8th and 9th EDF it includes expenditure related to the devolution process in application of provisions of Articles 1(3), 4 and 9 of the Internal Agreement. The breakdown of this expenditure is shown in Table 12.

Table 12

Administrative and financial costs

(EUR million) Balance at 1.1.2005 Expenditure 2005 Balance at 31.12.2005 6th EDF 8th EDF 9th EDF Total 6th EDF 8th EDF 9th EDF Total 6th EDF 8th EDF 9th EDF Total Financial costs 0,11 — 0,17 0,27 0,01 — — 0,01 0,12 — 0,17 0,28 Interest on late payments 0,10 — — 0,10 0,01 — — 0,01 0,11 — — 0,11 Year end re-evaluations 4,24 — 0,11 4,34 — — 0,10 0,10 4,24 — 0,21 4,44 Financial costs related to study grant management -0,06 — — -0,06 0,07 — — 0,07 0,01 — — 0,01 Financial costs total 4,38 — 0,27 4,65 0,09 — 0,10 0,19 4,47 — 0,37 4,84 service contracts 0,43 — — 0,43 — — — — 0,43 — — 0,43 Other costs 0,37 1,06 6,40 7,83 0,03 — — 0,03 0,39 1,06 6,40 7,86 Audit and evaluation 2,59 0,81 — 3,40 — 1,38 — 1,38 2,59 2,19 — 4,78 Technical assistance — 4,79 — 4,79 — — — — — 4,79 — 4,79 Consultancy — 1,80 — 1,80 — — — — — 1,80 — 1,80 Personnel costs — 13,15 20,60 33,75 — 0,02 15,00 15,02 — 13,17 35,60 48,77 Infrastructure costs — 8,00 26,28 34,28 — — 35,50 35,50 — 8,00 61,78 69,78 Individual Experts — 0,30 1,03 1,33 — 0,47 2,37 2,84 — 0,77 3,40 4,17 Formation — — 0,33 0,33 — — 0,43 0,43 — — 0,76 0,76 IT — — 0,18 0,18 — — 0,48 0,48 — — 0,66 0,66 Administrative costs total 3,39 29,92 54,81 88,13 0,03 1,87 53,78 55,67 3,42 31,79 108,59 143,80 Total 7,78 29,92 55,09 92,78 0,11 1,87 53,88 55,86 7,89 31,79 108,96 148,64

(17) TOTAL EXPENDITURE

These amounts represent total payments for the fund(s) in question during the 2005 financial year on a cash accounting basis, including advance payments and recoveries. Cumulative figures are shown in the report on financial implementation prepared by the authorising officer.

(18) ACCRUAL ADJUSTMENTS

Following the change in accounting policy (i.e. a switch from cash to accrual-based accounting), total expenditure has been restated to comply with the international accounting standard IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the authorising officer. The breakdown is shown in Tables 13.1 (financial year 2004) and 13.2 (financial year 2005).

Table 13.1

(EUR million) Accrual adjustments Note 6th 7th 8th 9th Cumulative total up to 1.1.2005 - prefinancing 4 51,64 282,93 1 116,43 547,49 1 998,49 - financial costs 21 -0,09 — — -0,27 -0,37 + non-finalised payments 15,1 0,13 0,98 10,21 47,36 58,68 + eligibility to be confirmed 15,2 0,86 106,34 52,46 19,32 178,98 + accrued expenditure 15,3 19,35 -39,25 557,78 85,54 623,42 Total accruals -31,39 - 214,86 - 495,98 - 395,54 -1 137,77





Table 13.2

(EUR million) Accrual adjustments Note 6th 7th 8th 9th Cumulative total up to 31.12.2005 Increase 2005 - prefinancing 4 47,67 307,68 1 063,75 1 023,80 2 442,90 444,41 - financial costs 21 -0,18 — — -0,37 -0,55 -0,19 + non-finalised payments 15,1 1,17 2,67 13,42 5,54 22,81 -35,87 + eligibility to be confirmed 15,2 1,14 11,62 50,14 53,43 116,32 -62,66 + accrued expenditure 15,3 36,45 133,92 547,61 507,99 1 225,97 602,55 Total accruals -9,08 - 159,47 - 452,58 - 457,21 -1 078,35 59,42

(19) TOTAL EXPENDITURE ON AN ACCRUAL BASIS

Project expenditure by fund for 2005 has been restated in accordance with the relevant international accounting standards. The expenditure for each policy area will be presented on an accrual basis as and from the 2008 financial year, once the accounts have been migrated to the new IT (ABAC) system.

(20) FINANCIAL INCOME

Interest income is presented in the balance sheet of the 9th EDF. The sole exception is Stabex security interest which is presented in 8th EDF due to absence of this aid instrument in the 9th EDF.

Financial income for the year is shown in Table 14 below:

Table 14

(EUR million) Interest earned during 2005 Note 8th EDF 9th EDF Total at 31.12.2005 EIB interest 13.1 — 0,23 0,23 European banks interest 13.1 13,70 13,70 Interest on recovery orders 13.2 — 0,12 0,12 Interest on late contributions 13.2 0,35 0,35 Interest income on the Stabex security accounts 13.3 8,84 — 8,84 Interest income on the special D R Congo contribution 13.3 — 1,07 1,07 Total operating — 0,35 0,35 Total financial 8,84 15,12 23,95 Total interest 8,84 15,46 24,30

(21) FINANCIAL COSTS

Up to the 2004 financial year this category of expenditure was presented as a part of administrative costs. In the interests of transparency these costs are now presented under a separate heading. See details in Table 12.

1.11. OFF BALANCE ITEMS

Guarantees are held to secure prefinancing and released when the final claim under a project is paid. In accordance with the 'Prudence' concept and in compliance with the provisions of IPSAS 19, contingent assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency.

The total amount registered by the authorising officer under this heading is shown in Tables 15 and 16.

Table 15

(EUR million) Guarantees on prefinancing on guarantee withholding on performance Total 1.1.2005 6th EDF 2,52 0,05 0,40 2,97 7th EDF 61,62 15,45 25,80 102,87 8th EDF 738,35 39,06 102,46 879,88 9th EDF 21,38 0,71 7,57 29,66 Total 823,87 55,27 136,24 1 015,38





Table 16

(EUR million) Guarantees on prefinancing on guarantee withholding on performance Total 31.12.2005 6th EDF 4,63 0,05 1,34 6,01 7th EDF 66,34 24,47 39,49 130,30 8th EDF 789,17 49,36 100,36 938,89 9th EDF 117,00 31,19 31,74 179,93 Total 977,14 105,07 172,93 1 255,13

2. REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

Previous EDFs

Decision No 1/2000 of the ACP-EC Council of 27 July 2000 regarding transitional measures (7) provides for some of the unallocated resources from previous EDFs to be used for programmes consistent with the relevant provisions of the Cotonou Agreement and put into early application under transitional measures.

Commission Decision C(2001) 717, which fixes the allocations for the indicative programmes of the ACP countries under the ACP-EC Partnership Agreement, stipulates that the unallocated resources from previous EDFs up to a maximum of EUR 1,2 billion are to be used for implementation in accordance with the rules and procedures of the relevant EDFs pending the entry into force of the Financial Protocol to the 9th EDF.

Commission Decision C(2001) 1578 fixed the allocations for regional programmes and intra-ACP cooperation under the Financial Protocol to the ACP-EC Partnership Agreement.

Commission Decision C(2002) 2567 increased the envelope intended for intra-ACP cooperation by EUR 60 million, from the general reserves of the 6th and 7th EDFs, and also provided for the use of these additional funds pending the entry into force of the Financial Protocol to the 9th EDF, in accordance with the rules and procedures applicable to the original EDFs.

Lastly, Decision No 3/2002 of the ACP-EC Council of Ministers of 23 December 2002 (8) took an amount of EUR 25 million from the unallocated resources of the 8th EDF (general reserve) and allocated it to regional cooperation under the ACP-EC Partnership Agreement.

As last year, to ensure transparency in the presentation of the accounts the various tables below set out separately for each of the 6th, 7th and 8th EDFs the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Entry in the accounts and the presentation of accounts in connection with the Cotonou Agreement is based on Article 3(2) of Annex IV to the ACP-EC Partnership Agreement, as regards countries. That Article gives the ACP countries an allocation A to cover macroeconomic support and support for programmes and projects and an allocation B to cover unforeseen needs such as emergency assistance, debt relief initiatives and support to offset the adverse effects of instability in export earnings (9). For the regions, the accounts are set out according to the regional programming as referred to in Chapter 2 of the ACP-EC Partnership Agreement (i.e. regional indicative programmes and intra-ACP cooperation).

9th EDF

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

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

The Cotonou Agreement was concluded for a twenty-year period with a five-year review clause and a Financial Protocol for each five-year period. The EU Council Decision on the association of the OCT with the European Community is applicable for 10 years.

The first five years are, therefore, financed under the 9th EDF. The 9th EDF was set at EUR 13 800 million, including EUR 13 500 million allocated to the ACP States in accordance with the first Financial Protocol included in the Cotonou Agreement, EUR 175 million allocated to the OCT (provided for by the EU Council Decision on the association of the OCT) and EUR 125 million reserved for the European Commission to cover expenses in connection with implementing the 9th EDF resources (provided for in the internal agreement for the 9th EDF). The total amount of the first Financial Protocol, supplemented by the balances transferred from the previous EDFs, covers the period 2000 to 2007 (Annex I(5) to the Cotonou Agreement).

Of the total budget of EUR 13 500 million for the ACP States, EUR 1 000 million was released in 2004 and 2005 after examination by the EU Council, on the basis of a proposal from the European Commission:

— EUR 250 million was released in accordance with Joint ACP-EU Council Decision 01/2004 of 7 May 2004 and allocated to the Intra-ACP Fund (natural resources) to finance the Water Facility operation,

— EUR 18 million was released in accordance with Council Decision 10752/05 of 19 July 2005 and allocated to the envelope for long-term development support to cover the financing of the National Indicative Programme of Timor-Leste for the period 2006 and 2007,

— EUR 482 million was released in accordance with ACP-EC Council of Ministers Decision No 6/2005 of 22 November 2005 and allocated to the envelope for long-term development support (EUR 352 million), the envelope for regional cooperation and integration (EUR 48 million) and the Investment Facility (EUR 82 million), in order to contribute to financing of the EU Energy Initiative (EUR 220 million), the International Commodity Risk Management Financing Facility (EUR 25 million), adaptation to the new EU feed and food sanitary and phytosanitary rules (EUR 30 million), strengthening the African Union (EUR 50 million), the ‘Education for All’ Fast Track Initiative (EUR 63 million), tackling HIV/AIDS, tuberculosis and malaria (EUR 62 million), and the operating costs of the CDE/CTA (EUR 32 million),

— EUR 250 million was released in accordance with ACP-EC Council of Ministers Decision No 7/2005 of 22 November 2005 and allocated to the envelope for long-term development support (EUR 185 million), the envelope for regional cooperation and integration (EUR 24 million) and the Investment Facility (EUR 41 million), also to finance the Water Facility operation.

The breakdown of 9th EDF allocations for ACP States, including the ‘conditional billion’ and allocations managed directly by the European Investment Bank (EIB), is as follows:

(EUR) 9th EDF allocation Reduction/conditional billion Unopened allocations (EIB-managed) Reallocations between envelopes and the conditional billion Open allocations OLAS (EC-managed) Long-term development budget 10 000 000 000 (186 850 000) (interest rate subsidies) - 690 000 000 9 123 150 000 Regional budget 1 300 000 000 731 000 000 2 031 000 000 Investment Facility 2 200 000 000 (122 000 000) (10) (2 037 000 000) -41 000 000 Total 13 500 000 000 (122 000 000) (2 222 850 000) 0 11 154 150 000

The long-term development budget for ACP States has two components:

The A allocation for macroeconomic support, sectoral policies, and programmes and projects supporting Community aid: this corresponds to the allocation for the NIPs and structural adjustment in previous EDFs.

The B allocation, intended to cover unforeseen needs such as emergency aid, contributions to debt reduction initiatives and support to offset adverse fluctuations in export earnings, generally corresponds to the Stabex, Sysmin and emergency aid allocations in previous EDFs.

The breakdown of 9th EDF allocations for the OCT, including those managed directly by the European Investment Bank (EIB), is as follows:

(EUR) 9th EDF allocation Unopened allocations (EIB-managed) Open allocations (OLAS) Long-term development budget 127 100 000 127 100 000 C reserve 17 900 000 (1 000 000) (interest rate subsidies) 16 900 000 Regional budget 8 000 000 8 000 000 Budget for studies and technical assistance 2 000 000 2 000 000 Investment Facility 20 000 000 (20 000 000) 0 Total 175 000 000 (21 000 000) 154 000 000

The unallocated C reserve for OCTs is maintained to finance humanitarian aid, emergencies, refugee assistance and fluctuations in export earnings, and corresponds to the B allocation for the ACP countries.

Also, under Commission Decision C(2003) 1904, any balances remaining from previous EDFs on the date of entry into force of the Cotonou Agreement and any amounts decommitted at a later date from ongoing projects under those Funds were transferred to the 9th EDF. Any resource thus transferred to the 9th EDF after previously having been allocated to the indicative programme of an ACP State or region has been allocated to that State or region. On the other hand, the unallocated resources have been transferred to reserves which will be subject to new programming under the 9th EDF.

All figures presented in the Report on Financial Implementation are on a cash basis.

The tables annexed giving the amounts decided, contracted and paid refer to net data. Only Table 2.7. refers separately to amounts committed and decommitted and amounts paid and recovered.

Owing to the technical limitations of the current accounting system, partial recoveries are recorded by the program as being fully recovered. An amount of EUR 0,46 million (EUR 0,09 million for 2005) is in fact shown as recovered in the income and expenditure accounts. The amount actually recovered is indicated in the financial statements in part one of this document. This discrepancy will no longer appear as from the 2007 financial year when the new ABAC accounting system comes on stream.

2.1. APPROPRIATIONS AT 31 DECEMBER 2005

Table 1.1

6th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2004 Increases or reductions in resources during 2005 Current appropriation ACP Lomé Grants 4 362,50 (21,21) (16,62) 4 324,67 Special loans 600,00 (167,07) (2,44) 430,49 Interest-rate subsidies 207,50 (126,08) (0,02) 81,40 Emergency aid 210,00 (30,61) 0,00 179,39 Aid for refugees 80,00 14,77 (0,05) 94,72 Risk capital 600,00 (70,30) 0,00 529,70 Stabex 925,00 522,12 0,00 1 447,12 Sysmin 415,00 (276,98) (4,56) 133,47 Transfer 4th EDF — 6th EDF 0,00 89,30 (0,15) 89,15 Structural adjustment 0,00 6,00 (0,67) 5,33 Intra ACP Allocation 0,00 10,00 10,00 General reserve 0,00 0,00 0,00 TOTAL ACP 7 400,00 (50,04) (24,50) 7 325,45 OCT Grants 48,50 1,32 (0,06) 49,77 Special loans 25,00 (10,02) 0,00 14,98 Interest-rate subsidies 2,50 0,10 0,00 2,60 Emergency aid 3,00 (2,49) 0,00 0,51 Aid for refugees 1,00 (1,00) 0,00 0,00 Risk capital 15,00 (0,38) 0,00 14,62 Stabex 4,00 0,00 0,00 4,00 Sysmin 1,00 0,00 0,00 1,00 Transfer 4th EDF — 6th EDF 0,00 1,85 (0,00) 1,85 TOTAL OCT 100,00 (10,61) (0,06) 89,33 TOTAL 6th EDF 7 500,00 (60,65) (24,56) 7 414,78

Table 1.2

6th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou General Reserve Total ACP Grants Special loans Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 4th EDF — 6th EDF Structural adjustment Intra ACP Situation at 31.12.2004 4 341,29 432,93 81,42 179,39 94,77 530 1 447,12 138,02 89,30 6,00 10,00 0,00 7 349,96 (31) (16,62) (2,44) (0,02) (0,05) (4,56) (0,15) (1) (24,50) Situation at 31.12.2005 4 324,67 430,49 81,40 179,39 94,72 529,70 1 447,12 133,47 89,15 5,33 10,00 0,00 7 325,45





OCT Grants Special loans Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 4th EDF — 6th EDF Total OCT Situation at 31.12.2004 49,82 14,98 2,60 0,51 0 14,62 4,00 1 1,85 89,39 (31) -0,06 (0,00) -0,06 Situation at 31.12.2005 49,77 14,98 2,60 0,51 0 14,62 4,00 1,00 1,85 89,33

Table 1.3

7th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial Appropriation Accumulated increases or reductions in resources at 31 December 2004 Increases or reductions in resources during 2005 Current appropriation ACP Lomé Grants 6 215,00 (711,80) (64,16) 5 439,05 Interest-rate subsidies 280,00 (79,85) 0,00 200,15 Emergency aid 250,00 153,35 (0,00) 403,35 Aid for refugees 100,00 (15,13) (0,36) 84,50 Risk capital 825,00 (6,90) (1,25) 816,85 Stabex 1 500,00 196,69 0,00 1 696,69 Sysmin 480,00 (33,71) (0,19) 446,10 Transfer 5th EDF — 7th EDF 0,00 339,93 (18,41) 321,52 Structural adjustment 1 150,00 0,48 (1,31) 1 149,17 Heavily indebted poor countries 0,00 40,00 0,00 40,00 Intra ACP Allocation 0,00 50,00 0,00 50,00 General reserve 0,00 0,00 0,00 TOTAL ACP 10 800,00 (66,93) (85,68) 10 647,39 Grants 97,50 (10,49) (0,36) 86,64 Interest-rate subsidies 6,00 (1,78) (0,04) 4,18 Emergency aid 2,50 (0,24) 0,00 2,26 Aid for refugees 0,50 (0,21) 0,00 0,29 Risk capital 25,00 (2,51) 0,00 22,49 Stabex 6,00 0,00 0,00 6,00 Sysmin 2,50 0,00 0,00 2,50 Transfer 5th EDF — 7th EDF 0,00 9,84 (0,01) 9,83 TOTAL OCT 140,00 (5,39) (0,41) 134,20 TOTAL 7th EDF 10 940,00 (72,32) (86,09) 10 781,59

Table 1.4

7th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou General Reserve Total ACP Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 5th EDF - 7th EDF Structural adjustment Heavily indebted poor countries Intra ACP Situation at 31.12.2004 5 503,20 200,15 403,35 84,87 818,10 1 696,69 446,29 339,93 1 150,48 40,00 50,00 0,00 10 733,07 (12) (64,16) 0 (0,00) (0,36) (1,25) 0,00 (0,19) (18,41) (1,31) 0,00 0,00 0,00 (85,68) Situation at 31.12.2005 5 439,0 200,2 403,3 84,5 816,8 1 696,7 446,1 321,5 1 149,2 40,0 50,0 0,00 10 647,39





OCT Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 5th EDF - 7th EDF Total OCT Situation at 31.12.2004 87,01 4,22 2,26 0,29 22,49 6,00 2,50 9,84 134,61 (12) (0,36) (0,04) 0,00 0,00 0,00 (0,01) (0,41) Situation at 31.12.2005 86,64 4,18 2,26 0,29 22,49 6,00 2,50 9,83 134,20

Table 1.5

8th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2004 Increases or reductions in resources during 2005 Current appropriation ACP Lomé Grants 7 562,00 (1 811,05) (186,07) 5 564,88 Interest-rate subsidies 370,00 (264,96) (3,60) 101,45 Emergency aid 140,00 (1,47) (1,12) 137,41 Aid for refugees 120,00 (1,46) (1,30) 117,24 Risk capital 1 000,00 172,46 (21,98) 1 150,48 Stabex 1 800,00 (1 101,79) 8,84 707,04 Sysmin 575,00 (462,16) (1,10) 111,74 Structural adjustment 1 400,00 190,14 (16,81) 1 573,33 Heavily indebted poor countries 0,00 1 060,00 0,00 1 060,00 Utilisation of interest income 0,00 38,15 0,00 38,15 Cotonou A envelope 0,00 490,68 (48,59) 442,09 B envelope 0,00 255,00 0,00 255,00 Regional 0,00 0,00 0,00 0,00 TOTAL ACP 12 967,00 (1 436,47) (271,74) 11 258,80 OCT Grants 115,00 (68,22) (1,31) 45,47 Interest-rate subsidies 8,50 (7,36) 0,00 1,14 Emergency aid 3,00 (3,00) 0,00 0,00 Aid for refugees 0,50 (0,50) 0,00 0,00 Risk capital 30,00 (21,50) (2,00) 6,50 Stabex 5,50 (4,32) 0,00 1,18 Sysmin 2,50 0,00 0,00 2,50 TOTAL OCT 165,00 (104,89) (3,31) 56,79 TOTAL 8th EDF 13 132,00 (1 541,36) (275,05) 11 315,59

Table 1.6

8th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou TOTAL ACP Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Structural adjustment Heavily indebted poor countries Utilisation of interest income A Envelope B Envelope Regional Situation at 31.12.2004 5 750,95 105,04 138,53 118,54 1 172,46 698,21 112,84 1 590,14 1 060,00 38,15 490,68 255,00 0,00 11 530,53 (13) (186,07) (3,60) (1,12) (1,30) (21,98) (1,10) (16,81) 0,00 0,00 (48,59) 0,00 0,00 (280,57) (14) 8,84 8,84 Situation at 31.12.2005 5 564,88 101,45 137,41 117,24 1 150,48 707,04 111,74 1 573,33 1 060,00 38,15 442,09 255,00 0,00 11 258,80





OCT Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Heavily indebted poor countries TOTAL OCT Situation at 31.12.2004 46,78 1,14 0,00 0,00 8,50 1,18 2,50 0,00 60,11 (13) (1,31) 0,00 0,00 0,00 (2,00) 0,00 (3,31) Situation at 31.12.2005 45,47 1,14 0,00 0,00 6,50 1,18 2,50 0,00 56,79

Table 1.7

9th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2004 Increases or reductions in resources during 2005 Current appropriation ACP Envelope A 5 318,30 2 918,80 580,96 8 818,06 Envelope B 2 107,90 (885,47) 74,10 1 296,53 National allocations reserve 1 224,10 (403,76) (387,14) 433,20 CDE+CTA+Joint Assistance 164,00 (99,10) 42,09 106,99 Long-term dev. reserve 257,85 113,92 431,78 803,55 Regional allocations 904,00 33,13 19,72 956,85 Intra ACP 300,00 1 388,98 256,24 1 945,23 Implementation costs 125,00 0,00 0,00 125,00 Interest and other receipts 0,00 36,25 16,25 52,51 Special allocation Congo 0,00 106,92 1,07 107,99 TOTAL ACP 10 401,15 3 209,67 1 035,08 14 645,90 OCT Envelope A 162,17 45,09 207,25 Long-term dev. Reserve 144,00 (41,41) (41,86) 60,73 Regional allocations 8,00 18,47 0,55 27,02 Technical assistance envelope 2,00 0,00 0,00 2,00 TOTAL OCT 154,00 139,22 3,78 297,00 TOTAL 9th EDF 10 555,15 3 348,89 1 038,86 14 942,90

Table 1.8

9th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Envelope A Envelope B National allocations reserve CDE+CTA+Joint Assistance Long-term dev.reserve Regional allocations Intra ACP Implementation costs Interest and other receipts Special allocation Congo TOTAL ACP Situation at 31.12.2004 8 237,10 1 222,43 820,34 64,90 371,77 937,13 1 688,98 125,00 36,25 106,92 13 610,82 (15) 293,96 8,09 54,74 19,72 14,24 390,76 (16) 45,00 (45,00) 0,00 (17) 148,00 181,80 (329,80) 0,00 (18) (13,70) 13,70 0,00 (19) 32,00 523,00 72,00 627,00 (20) (170,00) 170,00 (21) 2,00 (2,00) (22) (26,04) 26,04 (23) 16,25 16,25 (24) 1,07 1,07 (25) 94,00 (94) Situation at 31.12.2005 8 818,06 1 296,53 433,20 106,99 803,55 956,85 1 945,23 125,00 52,51 107,99 14 645,90





OCT Envelope A Long-term dev.reserve Regional allocations Technical assistance envelope Total OCT Situation at31.12.2004 162,17 102,59 26,47 2,00 293,22 (15) 1,19 2,04 0,55 3,78 43,90 (43,90) 0,00 Situation at 31.12.2005 207,25 60,73 27,02 2,00 297,00

Table 1.9

6th-7th-8th-9th EDF

Increases, reductions and transfer of resources during 2005

(EUR million) ACP TOTAL 6th EDF TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2004 7 349,96 10 733,07 11 530,53 13 610,82 Transfer to 9th EDF following entry in force of Cotonou (Commission decision of 16 April 2003) (24,50) (85,68) (280,57) 390,76 0,00 Interest earned on Stabex security accounts 8,84 8,84 release of conditional billion 627,00 627,00 interest on EDF Funds, 2005 16,25 16,25 interest on Congo Funds, 2005 1,07 1,07 SITUATION AT 31.12.2005 7 325,45 10 647,39 11 258,80 14 645,90 653,16





OCT TOTAL 6th EDF TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2004 89,39 134,61 60,11 293,22 Transfer to 9th EDF following entry in force of Cotonou (Commission decision of 16 April 2003) (0,06) (0,41) (3,31) 3,78 0,00 SITUATION AT 31.12.2005 89,33 134,20 56,79 297,00 0,00 TOTAL ACP + OCT 7 414,78 10 781,59 11 315,59 14 942,90 653,16 TOTAL TRANSFER TO 9th EDF (24,56) (86,09) (283,89) 394,54 0,00

Table 1.10

2.2. CONSOLIDATED ACCOUNTS

EDF consolidated accounts at 31 December 2005:

Table 2.1

PROGRESS REPORT

(EUR million) Appropriations 6th EDF 7th EDF 8th EDF 9th EDF 6th,7th,8th and 9th Lomé Programmable aid 4 819,91 5 525,69 5 610,35 15 955,94 Non-programmable aid 2 493,88 4 874,55 5 008,15 12 376,58 Transfers to other Funds 91,00 331,35 422,35 Sundry revenue 0,00 0,00 Cotonou A envelope 442,09 9 025,31 9 467,40 B envelope 255,00 1 296,53 1 551,53 Regional Allocation 983,86 983,86 Intra ACP allocation 10,00 50,00 1 945,23 2 005,23 CDE + CTA and Joint assistance 106,99 106,99 Countries Reserve Cotonou 433,20 433,20 Long-term dev. reserve 864,29 864,29 Special alloc. Decision 4/04 107,99 107,99 Implementation costs and interest 179,51 179,51 Total 7 414,78 10 781,59 11 315,59 14 942,90 44 454,87





(EUR million) EDF Aggregate TOTAL Annual figures As at 31.12.05 % of appropriation 2001 2002 2003 2004 2005 DECISIONS 6 7 414,78 100 % (14,20) 2,84 (13,13) (32,24) (24,56) 7 10 781,59 100 % 48,21 125,99 (2,60) (58,42) (86,09) 8 11 315,59 100 % 1 520,15 1 639,56 255,11 (172,26) (275,05) 9 9 215,28 62 % 3 156,44 2 638,08 3 420,76 TOTAL 38 727,25 1 554,16 1 768,39 3 395,83 2 375,15 3 035,06 ASSIGNED FUNDS 6 7 377,03 99 % 26,92 33,49 30,74 28,68 (1,32) 7 10 529,00 98 % 294,11 328,12 311,69 121,42 110,52 8 10 247,10 91 % 1 942,32 1 781,30 1 406,57 848,67 471,95 9 4 812,08 32 % 993,70 1 747,48 2 070,90 TOTAL 32 965,22 2 263,36 2 142,92 2 742,71 2 746,25 2 652,05 PAYMENTS 6 7 333,77 99 % 50,46 48,53 47,04 30,00 21,62 7 10 084,88 94 % 406,92 326,12 382,21 234,94 235,31 8 8 385,22 74 % 1 610,48 1 478,07 1 472,56 985,34 858,47 9 2 598,92 17 % 277,66 947,56 1 373,70 TOTAL 28 402,79 2 067,86 1 852,72 2 179,47 2 197,84 2 489,10 * Negative figures represent decommitments.

Table 2.2

CLASS OF AID

(EUR million) 6th EDF % 7th EDF % 8th EDF % 9th EDF % TOTAL % (26) (26) (26) (26) (26) Lomé PROGRAMMABLE AID (NIP) Appropriation 4 819,91 5 525,69 5 610,35 15 955,94 Decisions 4 819,91 100 % 5 525,69 100 % 5 610,35 100 % 15 955,94 100 % Assigned funds 4 789,76 99 % 5 304,03 96 % 4 784,17 85 % 14 877,96 93 % Payments 4 751,16 99 % 5 064,57 92 % 3 756,08 67 % 13 571,81 85 % NON-PROGRAMMABLE AID Appropriation 2 493,88 4 874,55 5 008,15 12 376,58 Decisions 2 493,88 100 % 4 874,55 100 % 5 008,15 100 % 12 376,58 100 % Assigned funds 2 487,71 100 % 4 853,67 100 % 4 912,44 98 % 12 253,81 99 % Payments 2 483,84 100 % 4 661,03 96 % 4 233,41 85 % 11 378,29 92 % TRANSFERS FROM OTHER FUNDS Appropriation 91,00 331,35 422,35 Decisions 91,00 100 % 331,35 100 % 422,35 100 % Assigned funds 89,56 98 % 321,30 97 % 410,86 97 % Payments 88,77 98 % 309,28 93 % 398,05 94 % TOTAL Appropriation 7 404,78 10 731,59 10 618,50 28 754,88 Decisions 7 404,78 100 % 10 731,59 100 % 10 618,50 100 % 28 754,88 100 % Assigned funds 7 367,03 99 % 10 479,00 98 % 9 696,61 91 % 27 542,64 96 % Payments 7 323,77 99 % 10 034,88 94 % 7 989,49 75 % 25 348,14 88 % Cotonou A Envelope Appropriation 442,09 9 025,31 9 467,40 Decisions 442,09 100 % 6 325,17 70 % 6 767,26 71 % Assigned funds 397,87 90 % 3 190,55 35 % 3 588,42 38 % Payments 341,74 77 % 1 507,37 17 % 1 849,12 20 % B Envelope Appropriation 255,00 1 296,53 1 551,53 Decisions 255,00 100 % 713,67 55 % 968,67 62 % Assigned funds 152,63 60 % 474,08 37 % 626,71 40 % Payments 53,98 21 % 334,51 26 % 388,49 25 % CDE + CTA and Joint assistance Appropriation 106,99 106,99 Decisions 104,97 98 % 104,97 98 % Assigned funds 69,81 65 % 69,81 67 % Payments 60,98 57 % 60,98 87 % Regional Allocation Appropriation 983,86 983,86 Decisions 520,39 53 % 520,39 53 % Assigned funds 157,22 16 % 157,22 16 % Payments 36,79 4 % 36,79 4 % Intra ACP Allocation Appropriation 10,00 50,00 1 945,23 2 005,23 Decisions 10,00 100 % 50,00 100 % 1 324,42 68 % 1 384,42 69 % Assigned funds 10,00 100 % 50,00 100 % 713,95 37 % 773,95 39 % Payments 10,00 100 % 50,00 100 % 460,67 24 % 520,67 26 % Special allocation dec.4/04 Appropriation 107,99 107,99 Decisions 91,96 5 % 91,96 5 % Assigned funds 91,69 5 % 91,69 5 % Payments 89,56 5 % 89,56 4 % Implementation costs and interest Appropriation 179,51 179,51 Decisions 134,70 75 % 134,70 75 % Assigned funds 114,78 64 % 114,78 64 % Payments 109,04 61 % 109,04 61 % TOTAL Appropriation 10,00 50,00 697,09 13 645,42 14 116,01 Decisions 10,00 100 % 50,00 100 % 697,09 100 % 9 215,28 68 % 9 912,21 70 % Assigned funds 10,00 100 % 50,00 100 % 550,50 79 % 4 812,08 35 % 5 372,69 38 % Payments 10,00 100 % 50,00 100 % 395,72 57 % 2 598,92 19 % 2 999,41 21 % COUNTRIES RESERVE COTONOU 433,20 433,20 REGIONAL RESERVE COTONOU LONG-TERM DEV. RESERVE 864,29 864,29 TOTAL Appropriation 7 414,78 10 781,59 11 315,59 14 942,90 44 454,87 Decisions 7 414,78 100 % 10 781,59 100 % 11 315,59 100 % 9 215,28 62 % 38 727,25 87 % Assigned funds 7 377,03 99 % 10 529,00 98 % 10 247,10 91 % 4 812,08 32 % 32 965,22 74 % Payments 7 333,77 99 % 10 084,88 94 % 8 385,22 74 % 2 598,92 17 % 28 402,79 64 %

Table 2.3

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 6th EDF

(EUR million) Appropriation Decisions Assigned funds Payments AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 4 755,16 4 755,16 (19,07) 100 4 725,72 (1,40) 99 4 687,58 20,10 99 Grants 4 324,67 4 324,67 (16,62) 100 4 295,46 (0,91) 99 4 257,32 20,10 99 Special loans 430,49 430,49 (2,44) 100 430,26 (0,48) 100 430,26 100 Total non-programmable aid 2 471,14 2 471,14 (5,29) 100 2 464,97 (0,07) 100 2 461,11 1,10 100 Interest-rate subsidies 81,40 81,40 (0,02) 100 81,40 (0,02) 100 81,40 (0,02) 100 Emergency aid 179,39 179,39 (0,05) 100 179,39 (0,05) 100 179,39 (0,05) 100 Aid for refugees 94,72 94,72 100 94,67 100 94,67 100 Risk capital 529,70 529,70 (4,56) 100 529,70 100 526,09 1,22 99 Stabex 1 447,12 1 447,12 100 1 447,12 100 1 447,12 100 Sysmin 133,47 133,47 100 127,35 95 127,10 (0,05) 100 Structural adjustment 5,33 5,33 (0,67) 100 5,33 100 5,33 100 Transfer 4th EDF — 6th EDF 89,15 89,15 (0,15) 100 87,72 0,17 98 86,93 0,38 99 COTONOU Intra ACP allocation 10,00 10,00 100 % 10,00 100 % 10,00 100 % General reserve TOTAL ACP (a) 7 325,45 7 325,45 (24,50) 100 7 288,41 (1,29) 99 7 245,62 21,58 99 OCT Total indicative programmes 64,75 64,75 (0,06) 100 64,04 (0,02) 99 63,59 0,04 99 Grants 49,77 49,77 (0,06) 100 49,05 (0,02) 99 48,60 0,04 99 Special loans 14,98 14,98 100 14,98 100 14,98 100 Total non-programmable aid 22,73 22,73 0,00 100 22,73 0,00 100 22,73 0,00 100 Interest-rate subsidies 2,60 2,60 100 2,60 100 2,60 100 Emergency aid 0,51 0,51 100 0,51 100 0,51 100 Aid for refugees Risk capital 14,62 14,62 100 14,62 100 14,62 100 Stabex 4,00 4,00 100 4,00 100 4,00 100 Sysmin 1,00 1,00 100 1,00 100 1,00 100 Transfer 4th EDF — 6th EDF 1,85 1,85 (0,00) 100 % 1,84 (0,00) 100 % 1,83 99 % TOTAL OCT (b) 89,33 89,33 (0,06) 100 88,62 (0,02) 99 88,15 0,04 99 TOTAL (a) + (b) 7 414,78 7 414,78 (24,56) 100 7 377,03 (1,32) 99 7 333,77 21,62 99

Table 2.4

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 7th EDF

(EUR million) Appropriations Decisions Assigned funds Payments AGG. Total Annual % AGG. Total Annual % AGG. Total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 5 439,05 5 439,05 (64,16) 100 5 219,76 46,80 96 4 982,95 156,95 95 Total non-programmable aid 4 836,82 4 836,82 (3,11) 100 4 816,58 64,86 100 4 625,01 71,85 96 Interest-rate subsidies 200,15 200,15 100 200,15 0,00 100 198,51 0,07 99 Aid for refugees 403,35 403,35 (0,00) 100 403,28 (0,00) 100 403,13 (0,00) 100 Aid for refugees 84,50 84,50 (0,36) 100 84,41 0,00 100 83,76 (0,46) 99 Risk capital 816,85 816,85 (1,25) 100 816,85 (1,25) 100 764,37 12,23 94 Stabex 1 696,69 1 696,69 100 1 696,69 0,00 100 1 634,23 50,40 96 Sysmin 446,10 446,10 (0,19) 100 426,45 66,25 96 352,43 9,59 83 Structural adjustment 1 149,17 1 149,17 (1,31) 100 1 148,75 (0,13) 100 1 148,58 0,03 100 Heavily indebted poor countries 40,00 40,00 100 40,00 100 40,00 100 Transfer 5th EDF - 7th EDF 321,52 321,52 (18,41) 100 312,24 (2,58) 97 300,71 3,72 96 Sundry revenue COTONOU General reserve 50,00 50,00 100 50,00 0,00 100 50,00 100 General reserve TOTAL ACP (a) 10 647,39 10 647,39 (85,68) 100 10 398,58 109,09 98 9 958,66 232,52 96 OCT Total indicative programmes 86,64 86,64 (0,36) 100 84,28 1,02 97 81,62 2,15 97 Total non-programmable aid 37,73 37,73 (0,04) 100 37,08 0,41 98 36,02 0,06 97 Interest-rate subsidies 4,18 4,18 (0,04) 100 4,18 (0,04) 100 4,18 (0,04) 100 Emergency aid 2,26 2,26 100 2,26 100 2,26 100 Aid for refugees 0,29 0,29 100 0,29 100 0,29 100 Risk capital 22,49 22,49 100 22,49 100 22,49 100 Stabex 6,00 6,00 100 6,00 100 6,00 100 Sysmin 2,50 2,50 100 1,86 0,45 74 0,80 0,10 43 Transfer 5th EDF - 7th EDF 9,83 9,83 (0,01) 100 9,06 (0,00) 92 8,58 0,58 95 TOTAL OCT (b) 134,20 134,20 (0,41) 100 130,42 1,44 97 126,22 2,79 97 TOTAL (a) + (b) 10 781,59 10 781,59 (86,09) 100 10 529,00 110,52 98 10 084,88 235,31 96

Table 2.5

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 8th EDF

(EUR million) Appropriations Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) Lomé ACP Total indicative programmes 5 564,88 5 564,88 (186,07) 100 4 748,37 365,43 85 3 725,79 660,32 78 Total non-programmable aid 4 996,83 4 996,83 (37,08) 100 4 902,15 10,18 98 4 224,32 99,35 86 Interest-rate subsidies 101,45 101,45 (3,60) 100 101,45 (3,60) 100 63,98 0,27 63 Emergency aid 137,41 137,41 (1,12) 100 136,83 (0,99) 100 136,30 1,43 100 Aid for refugees 117,24 117,24 (1,30) 100 113,36 2,09 97 91,94 8,66 81 Risk capital 1 150,48 1 150,48 (21,98) 100 1 140,48 19,73 99 864,32 46,17 76 Stabex 707,04 707,04 8,84 100 685,29 0,00 97 384,73 20,36 56 Sysmin 111,74 111,74 (1,10) 100 107,07 4,33 96 95,75 4,73 89 Structural adjustment 1 573,33 1 573,33 (16,81) 100 1 523,22 (12,31) 97 1 495,52 15,86 98 Heavily indebted poor countries 1 060,00 1 060,00 0,00 100 1 060,00 0,00 100 1 060,00 0,00 100 Utilisation of interest income 38,15 38,15 0,00 100 34,45 0,93 90 31,79 1,87 92 TOTAL 10 561,71 10 561,71 (223,15) 100 9 650,52 375,61 91 7 950,12 759,67 82 COTONOU A Envelope 442,09 442,09 (48,59) 100 397,87 10,89 90 341,74 63,18 86 B Envelope 255,00 255,00 100 152,63 86,77 60 53,98 28,86 35 Regional allocation 0,00 0,00 0,00 0,00 TOTAL 697,09 697,09 (48,59) 100 550,50 97,66 79 395,72 92,04 72 TOTAL ACP (a) 11 258,80 11 258,80 (271,74) 10 201,02 473,27 91 8 345,84 851,71 82 OCT Total indicative programmes 45,47 45,47 (1,31) 100 35,79 (0,07) 79 30,29 5,17 85 Total non-programmable aid 11,32 11,32 (2,00) 100 10,29 (1,25) 91 9,09 1,59 88 Interest-rate subsidies 1,14 1,14 100 1,14 100 1,14 100 Emergency aid Aid for refugees 0,00 0,00 Risk capital 6,50 6,50 (2,00) 100 6,50 (2,00) 100 6,00 1,17 92 Stabex 1,18 1,18 100 1,18 100 1,18 100 Sysmin 2,50 2,50 100 1,47 0,75 0,76 0,42 TOTAL OCT (b) 56,79 56,79 (3,31) 100 46,08 (1,32) 81 39,38 6,76 85 TOTAL (a) + (b) 11 315,59 11 315,59 (275,05) 100 10 247,10 471,95 91 8 385,22 858,47 82

Table 2.6

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 9th EDF

(EUR million) Appropriations Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP A Envelope 8 818,06 6 262,23 2 725,95 71 3 161,49 1 554,80 50 1 492,30 876,88 47 Macroeconomic support 1 803,48 722,34 1 343,88 473,93 788,67 397,78 Sectoral policies 4 458,75 2 003,61 1 817,60 1 080,87 703,63 479,10 B Envelope 1 296,53 713,67 263,16 55 474,08 220,01 66 334,51 157,51 71 Compensation export earnings 92,25 12,48 50,81 26,11 47,00 26,33 Emergency aid 609,14 246,00 415,67 193,90 279,91 123,58 Heavily indebted poor countries 12,28 4,68 7,60 0,00 7,60 7,60 Regional allocation 956,85 513,29 217,22 54 154,84 89,51 30 36,16 22,68 23 Intra ACP allocation 1 945,23 1 324,42 151,00 68 713,95 121,45 54 460,67 131,42 65 Other 106,99 104,97 40,12 98 69,81 33,29 67 60,98 33,25 87 Implementation costs 125,00 125,00 100 112,41 37,66 90 108,35 53,88 96 Interest and other receipts 52,51 9,05 7,25 17 1,99 0,87 22 0,37 0,00 19 Special allocation Congo 107,99 91,96 85 91,69 10,06 100 89,56 89,23 98 TOTAL 13 409,15 9 144,59 3 404,71 68 4 780,25 2 067,66 52 2 582,90 1 364,84 54 COUNTRIES RESERVE — COTONOU 433,20 LONG-TERM DEV. RESERVE 803,55 TOTAL ACP (a) 14 645,90 9 144,59 3 404,71 62 4 780,25 2 067,66 52 2 582,90 1 364,84 54 OCT A Envelope 207,25 62,95 16,04 30 29,07 1,76 46 15,07 8,47 52 Macroeconomic support Sectoral policies 62,95 16,04 29,07 1,76 15,07 8,47 Regional allocation 27,02 7,10 0,00 26 2,38 1,54 34 0,63 0,39 27 Support expenditure 2,00 0,65 33 0,38 (0,07) 58 0,32 0,00 84 Long-term development envelope 60,73 TOTAL OCT (b) 297,00 70,69 16,04 24 31,83 3,23 45 16,03 8,86 50 TOTAL (a) + (b) 14 942,90 9 215,28 3 420,76 62 4 812,08 2 070,90 52 2 598,92 1 373,70 54

Table 2.7

ANNUAL 2005 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual Decision 2005

(EUR million) Commitments Decommitments Net Lomé Grants 0,00 (268,58) (268,58) Special loans 0,00 (2,44) (2,44) Total indicative programme 0,00 (271,03) (271,03) Interest rate subsidies 0,00 (3,66) (3,66) Emergency aid 0,00 (1,13) (1,13) Aid for refugees 0,00 (1,71) (1,71) Risk capital 0,00 (25,23) (25,23) Stabex (interest) 8,84 0,00 8,84 Sysmin 0,00 (5,85) (5,85) Transfer from other funds 0,00 (18,57) (18,57) Structural adjustment 0,00 (18,79) (18,79) Total non-programmable aid 8,84 (74,92) (66,08) Use of interest Total 8,84 (345,95) (337,11) Cotonou A envelope 2 806,32 (104,92) 2 701,41 B envelope 288,00 (24,84) 263,16 CDE+CTA+Joint assistance 40,46 (0,34) 40,12 Regional projects 217,23 (0,01) 217,22 Intra ACP 143,00 0,00 143,00 Intra ACP debt relief 0,00 0,00 0,00 Special allocation Congo 0,00 0,00 0,00 Implementation costs, use of interest 7,25 0,00 7,25 Total 3 502,27 (130,10) 3 372,17 Total 3 511,11 (476,05) 3 035,06





Annual payments 2005

(EUR million) Paid Recovered (27) Net Lomé Grants 885,80 (41,08) 844,72 Special loans 1,85 (1,85) 0,00 Total indicative programme 887,65 (42,93) 844,72 Interest rate subsidies 0,39 (0,12) 0,27 Emergency aid 1,86 (0,43) 1,43 Aid for refugees 9,41 (1,26) 8,15 Risk capital 60,80 0,00 60,80 Stabex security 70,76 0,00 70,76 Sysmin 14,99 (0,20) 14,79 Transfer from other funds 5,61 (0,93) 4,68 Structural adjustment 15,93 (0,04) 15,89 Total non-programmable aid 179,75 (2,98) 176,76 Use of interest 1,87 (0,01) 1,87 Total 1 069,27 (45,92) 1 023,35 Cotonou A envelope 950,47 (1,94) 948,52 B envelope 192,81 (6,44) 186,37 CDE+CTA+Joint assistance 33,25 0,00 33,25 Regional projects 23,79 (0,73) 23,06 Intra ACP 131,53 (0,11) 131,42 Intra ACP debt relief 0,00 0,00 0,00 OCT technical assistance 0,00 0,00 0,00 Special allocation Congo 89,23 0,00 89,23 Implementation costs, use of interest 53,89 (0,01) 53,88 Total 1 474,98 (9,23) 1 465,74 Total 2 544,25 (55,15) 2 489,10

2.3. SITUATION BY COUNTRY AND BY INSTRUMENT

2.3.1. 6th EDF

Notes to the management accounts:

(a) In Tables 3.1.1 to 3.1.8, the figure ‘0,00’ indicates that the corresponding amount is between EUR – 4 999 and EUR 4 999. Where no figure is given, the amount is equal to zero. Countries with a nil balance in all columns are not listed in the tables.

(b) In all tables the heading ‘All countries ACP’ refers to projects which cover a number of countries but are not financed by regional cooperation.

(c) In all tables the heading ‘Financial and administrative expenses’ represents projects financed by EDF interest which have been transferred to a financial instrument (grants, Structural Adjustment Facility) with the exception of one amount of EUR 1 million financed from the ‘grants’ appropriation and used for posting bank charges and exchange rate differences.

(d) In the first column of Tables 3.1.1 and 3.1.2, the allocation for ‘Regional cooperation’ (EUR 871,64 million) corresponds to the Commissions regional cooperation target for ACP States only (EUR 912,23 million) minus the amount transferred during the years 2000, 2001 and 2002 to the general reserve according the transitional measures (i.e. EUR 1 million, EUR 1,36 million and EUR 0,16 million) and EUR 28,9 million transferred to 9th EDF following the entry in force of Cotonou in 2003, EUR 6,9 million in 2004 and EUR 2,18 million in 2005.

(e) All the amounts of appropriations are the same of those of decisions since the amounts not committed have been transferred to 9th EDF following the entry in force of Cotonou (Commission Decision of 16 April 2003).

2.3.2. 7th EDF

Notes to the management accounts:

(a) In Tables 3.2.1 to 3.2.8, the figure ‘0,00’ indicates that the corresponding amount is between EUR – 4 999 and EUR 4 999. Where no figure is given, the amount is equal to zero. Countries with a nil balance in all columns are not listed in the tables.

(b) In all tables the heading ‘All countries ACP’ refers to projects which cover a number of countries but are not financed by regional cooperation.

(c) In all tables the heading ‘Financial and administrative expenses’ represents projects financed by EDF interest which have been transferred to a financial instrument (grants, Structural Adjustment Facility).

(d) In the first column of Tables 3.2.1 and 3.2.2, the allocation for ‘Regional Cooperation’ (EUR 1 128,16 million) is composed as follows: Commission’s regional cooperation target (ACP States only) 1 125,00 Target overrun 67,90 Transfers from unallocated resources in order to finance the programme of assistance to ACP countries for integration within the WTO 10,00 Amount transferred during the year 2000 to the general reserve according the transitional measures (8,50) Amount transferred during the year 2001 to the general reserve according the transitional measures (2