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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 486 final  
Brussels, 29th July 1983
COMMISSION REPORT TO THE ACP-EEC  
COUNCIL OF MINISTERS  
ON THE ADMINISTRATION OF FINANCIAL  
AND TECHNICAL COOPERATION IN 1982,  
UNDER THE LOME CONVENTION

COMMISSION OF THE EUROPEAN COMMUNITIES
COM(83) 486 final  
Brussels, 29th July 1983
COMMISSION REPORT TO THE ACP-EEC  
COUNCIL OF MINISTERS  
ON THE ADMINISTRATION OF FINANCIAL  
AND TECHNICAL COOPERATION IN 1982,  
UNDER THE LOME CONVENTION
COM(83) 486 final

C O N T E N T S
Page
INTRODUCTION
TITLE I:  THE CHANGING POLICY APPROACH
Chapter I: Human resources
Chapter II: Agriculture, food and environment
Chapter III: Energy, mining, industry
TITLE II:  SECTORAL BREAKDOWN OF FINANCING
Chapter I: Agriculture and rural projects
Chapter II: Industrialization and energy
Chapter III: Transport and communications
Chapter IV: Education and training
Chapter V: Water engineering, urban
infrastructure and housing
Chapter VI: Health
Chapter VII: Trade promotion
TITLE III: FINANCIAL AND TECHNICAL COOPERATION BY
GEOGRAPHICAL AREA
Chapter I: The Sahel
Chapter II: West African coast
Chapter III: Central Africa
Chapter IV: The Horn of Africa
Chapter V: East Africa
Chapter VI: The Indian Ocean
Chapter VII: Southern African region
Chapter VIII: The Caribbean 
Chapter IX: The Pacific1
1
6
9
13
15
18
20
23
24 
28 
29
31
31
35
40
43
45
47
50
52
54

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Page
TITLE IV: IMPLEMENTATION OF THE SPECIFIC PROVISIONS OF THE
CONVENTION
Chapter I: Measures to help the least developed,
landlocked and island ACP States
Chapter II: Regional cooperation
Chapter III: Small and medium-sized enterprises
Chapter IV: Technical assistance
Chapter V: Emergency aid
Chapter VI: Stabex
TITLE V: BROAD QUALITATIVE ASSESSMENT OF THE IMPLEMENTATION
OF FINANCIAL AND TECHNICAL COOPERATION
Chapter I: Viability of operations, integrated
projects, participation by local 
people
Chapter II: Operation and maintenance of projects
Chapter III: Evaluation
Chapter IV: The ACP-EEC Courier
TITLE VI:  FINANCIAL IMPLEMENTATION IN 1982
Chapter I: Financing
Chapter II: Financing agreements - Invitations
to tender
Chapter III: Award of contracts55
55
58
61
63
65
68
70
70
76
78
83
87
87
94
97
Statistical annexes
Resolution by the ACP-EEC Council of Ministers

IN T R O D U C T IO N
This report for the ACR-EEC Council of Ministers on the management 
of financial and technical aid in 1982 has been drawn up by the Commission 
in collaboration with the European Investment Bank pursuant to Article 119 
of the second Lome Convention. It is the second such annual report.
The first report, on operations in 1981, was examined on 27 April this 
year at the third meeting (authorized representative level) of the 
Committee set up under Article 108 of the Convention. At a fourth meeting, 
on 6 May, again at authorized representative level, a report to the Council 
of Ministers was prepared, as well as a draft resolution on financial and 
technical cooperation which was on the agenda of the ministerial meeting 
of the Committee held on 18 May.
The resolution, which the Council itself adopted on 20 May, is an extension 
and amplification of that adopted in Libreville on 14 May last year, and 
thus represents the common thinking of ACP States and Community on financial 
and technical cooperation.
The Commission regards the resolution as matter for satisfaction and, 
in conjunction with the Libreville resolution, as a valuable guide in 
its work of implementing cooperation.
In the resolution, the Council invites the Commission, "in order to 
facilitate the work of the Article 108 Committee ... to accelerate the 
submission of its reports, and present them in any case not later than 
the end of July following the year under review".

-  2 -
The Commission has taken note of that injunction and will do its best 
to comply with it.
The financial and technical cooperation discussed in this report is not 
the whole of the Lome Convention, which is much wider in scope, ranging 
from trade cooperation to a system of joint institutions without an 
equivalent in the field of international relations: the whole forms the
comprehensive, contractual "Lome policy".— Such a policy has indeed 
made it possible to go beyond the letter of the texts and create a 
"de facto solidarity" reminiscent of that which Robert Schuman urged 
Europeans, in his historic declaration on 9 May 1950, to make a basis 
for the foundation of a Community. Nevertheless, though financial and 
technical cooperation is not the whole of Lome it is the most effective 
instrument of that policy, or in any case the one which produces the 
most obvious, and most obviously quantifiable, results in the field.
The Lome Convention, in turn, is not the whole of Community development 
policy, which has been considerably diversified and expanded over the 
years. In March this year the OECD's Development Assistance Committee 
(DAC) observed that Community aid had increased much faster than that 
of any other international institution, and indeed faster, probably, 
than that of the industrialized countries as a whole. Lome is, however, 
the most elaborate and complete manifestation of that policy.
Times change, however, and towards the end of last year the Commission 
published its "Memorandum" on Community development policy, at once a 
review of past operations and an exposition of the principles and guidelines 
which the Commission considers should inform the Community's development 
policy in the next ten years.
It is against this background that the Lome renewal negotiations will 
get under way in September.

-  3 -
In the memorandum the Commission spells out the objectives of development 
policy and the methods and institutional structure implementing it.
Among the objectives it stresses the importance of food self-reliance 
and operations in support of the countries' own policies.
As regards methods, it calls for the Community and the governments of 
the individual recipient countries to engage in a dialogue on development 
policy, while institutionally it favours the idea of organizing relations 
with the ACP countries within a framework convention of unlimited duration, 
supplemented from time to time by specific protocols laying down, or 
amending, the financial and other detailed provisions.
The present report is organized rather differently from the previous one.
Still central is the information required under Article 119, "in particular ... 
the position as to the commitment, implementation and use of the aid", 
but a greater effort has been made to look at financial and technical 
cooperation activities on a geographical basis. This new presentation 
reflects a major reshuffle in the Commission headquarters departments 
concerned, which are now organized mainly on a geographical basis so 
that a clearer and fuller overall picture can be obtained of the economic 
and social situation in each country.
The first specific item of information that Article 119 requires to be 
shown in the report is the commitment position. In 1982, almost eleven 
hundred million ECU (actually 1 095.3 m ECU) was committed out of the 
funds administered by the Commission or the Bank under Lome II. Total 
commitments for the year in fact came to 1 194.8 m ECU, including 
financing with residual Lome I funds, a figure 39.7% up on the previous 
year's total.

-  4 -
The report is also required to show in particular the position as to 
implementation of aid, another important aspect covered in detail later.
At this stage, however, it might be helpful simply to indicate the level 
of implementation by giving the figure for disbursements - not necessarily 
the most accurate yardstick, perhaps, but one which has the merit of 
simplicity. Payments in 1982, then, totalled 719.7 m ECU, almost exactly 
the same as the 1981 figure of 721 m ECU.

-  1  -
TITLE I: THE CHANGING POLICY APPROACH
CHAPTER I.  Human resources
In the introduction to the Report of the Independent Commission on
International Development Issues (the Brandt Report), Willy Brandt
wrote, in answer to the question "What Does Development Mean?":
"One must avoid the persistent confusion of growth and development,
and we strongly emphasize that the prime objective of development is
to lead to self-fulfilment and creative partnership in the use of a
1nation's productive forces and its full human potential".
This simply-stated objective reflects three basic propositions set out 
in the Brandt Report: "the elimination of hunger is the most basic of
human needs"; "the quality of life is almost meaningless without health, 
which depends on proper nutrition and a healthy environment"; "illiteracy 
too is a tremendous waste of human potential".
Human resources, therefore, are at once the end and the means of any 
development policy - the end, since every individual must be ensured of 
survival, and then of the opportunity to develop his potential to the 
full, and the means, since obviously development is impossible, inconceivable 
even, without human endeavour, human intelligence, science and technology. 
Obviously, perhaps; yet it .bears saying again, for the implications have 
not yet been fully assimilated in North or South.
The evaluation of the impact of financial and technical cooperation 
carried out under Article 57(1) of Lome I and Article 118(2) of Lome II 
has made it clear that while the provision of infrastructure and equipment 
has continued, too little has been done to increase recipient countries' own
"North-South: A Programme for Survival"; Pan World Affairs, p.23.

- 2 -
ability to administer and exploit these facilities, so that projects 
have sometimes been far from being used to capacity .
From all this the Commission has drawn the practical conclusion that if 
financial and technical cooperation is to become more effective it must 
be geared to a greater extent to the achievement by the developing 
countries, "and in particular the poorest among them", of "lasting, 
autonomous development".The capacity for~self-sustaining development 
can be increased by doing more to develop human resources, which are the 
key to a local community's or a country's potential. Many of the most 
pressing problems in ACP countries today have this specifically "human" 
character: the soaring birthrates and uncontrolled urban growth, the
problem of agricultural productivity and food security.
To give practical effect to its findings the Commission decided in 1982 
to give greater weight in its financial and technical cooperation activities 
to the relationship between the "human factor" and the process of economic 
and social development. On the organizational level this was reflected 
in the setting up within the Directorate-General for Development of a 
new administrative unit for human resources. The unit's job is to suggest 
ways and means of helping countries which so desire to get all sections 
of their people motivated and enable them to become more involved in 
the development process. They need to have access to more information, 
technical and vocational training opportunities and scientific and technical 
research facilities, they need to be given better opportunities, through 
better health conditions and judicious land use planning, to put their 
training to use; development institutions must be organized to stimulate 
and support human potential, and local communities, producer groupings, 
small businesses must be involved in the process. The Commission is 
thus aiming gradually to work out an integrated approach to the human 
factor in development, and follow it, in close cooperation with the ACP
1See especially the Commission Report to the ACP-EEC Council of Ministers 
on the administration of financial and technical cooperation in 1979 
,(C0M(80)239 final), pp 37-40.
Memorandum on the Community's development policy (C0M(82)640 final), p. II.2

-  3 -
States, in such a way that financial and technical cooperation can play 
an even greater part in the development of each country's resources.
Towards the end of last year the Commission departments concerned 
started work on the enhancement of human resources in the following fields.
Training
A study was put in hand which should make it possible:
(a) to identify what the Community can do in the training field in 
cooperation with the ACP countries;
(b) to identify specific scope for and means of cooperation among ACP 
universities to help them in their aim of working more closely 
together in education, research and training.
The Commission has also asked an institution specialized in this field 
to look at the scope for the training in Community countries of ACP 
nationals holding EDF awards and the conditions for such students.
The conclusions regarding the social integration of students working 
in different countries will be ready this year.
Employment and working conditions
In the social field more detailed consideration is being given to working 
conditions and employment, industrial relations and migrant workers.
Commission staff have had talks with ILO officials on issues of common 
interest such as the situation of migrant workers, labour-intensive work 
programmes and urban conditions. This fundamental work should make for 
an improvement in financial and technical cooperation with the ACP States 
in these areas.

-  4 -
Women's role in development
On 8 November last year the Council of the European Communities adopted 
a resolution on Community development aid and the situation of women in 
the developing countries. As well as a statement by the Community of 
its willingness to take full account of women's role in development, 
the resolution sets out objectives, defines practical measures to be 
taken and identifies areas of cooperation in which women have a particularly 
important part to play.
A sociological study was also undertaken last year into the consequences 
of Community aid-financed projects for the status of women in an ACP 
country. The conclusion reached was that in the three projects under 
review the position of women was ill-understood at the outset and women 
were subsequently ignored as economic actors and not involved in the 
peasant cooperatives set up. A major shortcoming had been the complete 
failure to consider how women might gain access to credit for agricultural 
equipment. These rather stark and negative findings, however, should be 
seen in the light of the study's narrow geographical and conceptual 
scope. There are obviously many projects, in health and education 
particularly, which bring about a direct improvement in the situation 
of women.
The cultural aspects of development
The greater attention being paid to the cultural aspects of development 
is due in particular to resolutions adopted by the Joint Committee, and 
subsequently the Consultative Assembly itself, in September 1981 
(Luxembourg), February 1982 (Harare), November 1982 (Rome), and February 
this year (Kingston) on the basis of the report by Mr Chasle on cooperation 
between the ACP States and the Community.
The Commission took part last year in a number of meetings at which 
cultural questions were discussed either by parliamentarians (the 
European Parliament and the ACP-EEC Consultative Assembly) or trade 
unionists (the ACP-EEC trade unionists meeting in December), or in a 
wider context, involving other developing countries: the International
Peace Academy's "Culture and Development" Conference at Aosta last October, 
the Avignon "encounters" between the cultural communities of Africa,
Europe and the Arab World last March and the big MONDIACULT conference

- 5 -
organized by  UNESCO  in Mexico Last August. There  were  also special 
working meetings  with  UNESCO  and British Council staff in December 
last year. 
Work and  discussions  in this field are still going on, and should result 
in greater  weight  being given to cultural factors, for instance in 
discussions  with  the recipient countries when projects or programmes 
are being prepared, as has been the case  with  recent operations such 
as the assistance given to the CIADFOR textbook project or the aid for 
cultural tourism in the Caribbean (CTRC). 
Work, including studies, has also been going on in other fields such 
as technical assistance, health, demography, and appropriate technology; 
the first results  will  be available  later  this year and  will  be discussed 
in subsequent annual reports. 

- 6 -
CHAPTER  II: Agriculture, food and environment 
The main developments in these fields stemmed from the follow-up 
to the 'Plan of Action to combat World Hunger', which had been 
transmitted by the Commission to the Council in October  1981. 
At its meeting in November  1981  the Council gave its broad 
approval  to the Commission's proposal. 
Among  the major elements of the proposed  Pi an ""Of Action  were  the 
following: 
operations  with  a specific theme (campaigns) covering regional 
groups  of countries and directed towards natural resource 
conservation  or improvement, 
support  for food strategies in selected countries. 
The essence of the food strategy idea is  that  it should be planned 
and executed by the country itself, assisted by the  joint  efforts 
of the Member States and the  Commission,  and possibly of other 
donors. 
The criteria used for choosing the 'first generation' of food 
strategy countries  were  as follows: 
existence  of a substantial food deficit and a potential capacity 
to increase production relatively quickly; 
capacity  and expressed desire of the country to conduct its 
own food strategy; 
the Member States and the Community  were  significant aid donors. 

- 7 -
Mr Pisani visited Kenya, Mali and Zambia in June Last year to expLain 
the food strategy approach and to ascertain  that  the  three  countries 
had the capacity and wiLL to impLement such a strategy. On the basis 
of his report, the CounciL approved in June the choice of these  three 
countries.  He visited Rwanda in  JuLy,  and this Led in November to 
the Commission proposing, and the CounciL accepting,  that  Rwanda 
shouLd  be incLuded in the 'first generation' of strategy countries. 
The outcome of these various contacts was the setting up in each 
country of  joint  Government-EEC Working Groups to estabLish the 
objectives and guideLines of the proposed food strategy. The  work 
done by these groups served as usefuL background to the officiaL 
Letters from the Governments concerned, in  three  cases from the 
Head of State, to the Commission reaffirming the country's commitment 
to a food strategy. The Commission has responded to each of these 
Letters and the first steps to put the strategy into practice are 
now under way. 
There are aLready indications as to  where  efforts wiLL be 
concentrated in each of the seLected countries. In Kenya a particuLar 
priority wiLL be support of the crop purchasing agency to faciLitate 
purchase  of maize from farmers. Joint Government/donor committees 
to discuss  the major aspects of agriculturaL poLicy have been estabLished. 
In MaLi arrangements have been made to reorganize and LiberaLize the 
cereaLs  market,  and in addition the prices farmers get for the main 
cereaLs  have been raised. In Rwanda, given the popuLation pressure 
on availabLe Land resources, the focus wiLL be on the intensification 
of production. 
In Zambia the finaL  text  of a study on a nationaL food strategy, 
carried out  with  Dutch financing, is now availabLe and wiLL form the 
basis  for decisions on a wide number of policy  issues. 

- 8 -
A number of countries have indicated a willingness to cooperate 
with  the Community in implementing a food strategy. These are 
Benin,  Burundi, Ethiopia, Niger, Somalia, Tanzania and 
Upper  Volta. The Commission is currently examining the various 
requests. 
In the environment field, two studies  were  commissioned: 
Environmental Education and Training; 
Environmental Guidelines. 
The major results of these studies  will  be presented to the annual 
meeting of the Committee of  International  Development  Institutions 
on the Environment  (CIDIE)  in the course of this year. 
The studies  will  also help to draw up a policy on how best to include 
environmental aspects in our development activity. 

- 9 -
CHAPTER  III: Energy, mining, industry 
The year 1982 saw both continuity in the financing of energy, mining 
and industrial operations under Lome II and a move to  integrate  the 
sectoral approach more fully into the overall development process 
and the environment in general. 
The guidelines set out in the September memorandum are already 
having their effect. 
Counting  global loans to development banks, nearly all of which  were 
on-lent, as needed, for individual small or medium-sized industrial 
projects (see Title V, Chapter IV), 89% of  total  Bank financing in 
1982 went  to these  three  sectors. 
The Commission's policy on energy continued to follow the course 
charted by the Convention towards the goal of self-sufficiency, 
giving priority to lessening the constraints of oil-import and 
fuelwood dependence equally. The emphasis was on measures to 
mitigate  the critical shortage of traditional forms of energy which 
are vital  to people's survival, and on operations of direct 
interest to both  sides,  such  as the bringing into production of 
fossil  fuel deposits, which can supply both ACP and Community 
countries. 
In volume terms the largest operations  (grants  totalling 27m ECU 
net of interest  rate  subsidies) involved hydro-electric schemes, but 
research  into new energy  sources,  and related pilot projects, also 
continued or increased. 
(2) 

- 10 -
The salient  feature  of EIB-financed energy projects in  1982  was the 
importance of investment projects designed not only to assist 
industrialization but to reduce ACP countries' dependence on imported 
energy, enabling them to cut imports of petroleum products by about 
700 000  tonnes a year, equivalent to some  2.5%  of total  ACP oil 
imports in  1981.  The projects financed since the  start  of the 
Lomé  I implementation period in April  1976 -  they include a number 
of hydro-electric power stations  - will  allow the ACP States to cut 
consumption  by approximately 1.7m tonnes of oil equivalent a year,  6% 
of their  total  oil imports. 
The Bank has also financed studies and research which  will  serve as a 
basis  for the development of ACP  coal,  oil and natural gas deposits 
and other energy resources. Even  where  a country's reserves appear 
limited, they could have a significant impact on its balance of 
payments . 
The EDF stepped up operations in the mining sector in  1982,  financing 
prospecting,  research and study projects. 
These  operations  were  undertaken strictly on the basis of mutual 
ACP-Community  benefit. The ACP countries can make the exploitation 
of their natural resources serve economic and social development, 
taking care to see  that  mining operations are more fully integrated 
into the fabric of local  life  so that  the activity provides a genuine 
stimulus for the rest of the economy,  while  the Community, which has 
to import  75%  of its raw materials, has an interest diversifying its 
sources  of supply  , dangerously concentrated in recent years on a 
handful of countries. 

- 11 -
Sysmin,  set up under Lome II, has already proved its usefulness for 
ACP countries which are established mineral producers, but for a variety 
of reasons, including the  state  of the world economy, are experiencing 
temporary difficulties  that  put their whole development at risk. Two 
operations have already been undertaken for copper and cobalt: a 
55m ECU loan to Zambia and a 40m ECU loan to Zaire, which have helped 
halt  the decline of production capacity in those countries. There 
have been procedural hold-ups, but these can be regarded as teething 
troubles.  With  its flexible trigger mechanism and the fact  that  the 
money is spent directly on preserving production facilities, Sysmin 
has proved from the outset  that  it can  meet  the real needs of the 
mining sector. 
In the industrial sector the results of both Commission-backed 
industrial promotion and technical assistance projects and Bank-financed 
operations in 1982  were  modest, reflecting the relatively low priority 
given to industrialization by the ACP States in their indicative 
programmes. However, they confirmed the soundness of the approach to 
industrialization through integration  with  rural development or the 
exploitation of natural resources. 
The emphasis was more on the creation of small businesses geared to 
self-reliant development than on financing of large-scale investment 
projects. 
Here again the approach being followed is in line  with  the guidelines 
set out in the memorandum, which call for priority to be given to rural 
development, and for productive activities to be more closely 
integrated into the whole economic and social development  process. 

- 12 -
For the  second  year running, in  1982  the Bank, Like aLL development 
agencies,  experienced problems in spotting direct investment financing 
prospects  in the industrial sector proper, for a number of reasons. 
One is that  once the most obvious industrial investment projects have 
been carried out, viable import substitution operations become 
increasingly  hard to find,  while  projects based on the industrial 
processing  of local raw materials for export are currently stymied 
by slack world demand arid low  prices.  The last few years of 
international recession have done nothing to  mitigate  these 
problems,  particularly for branches of industry which would be 
competing  with  the industrialized countries.  Also,  it should be 
borne in mind  that  priority is increasingly going to be given to 
agricultural development and food self-sufficiency in the ACP States. 
Bank  financing via the development banks for small or medium-sized 
industry, energy projects and, to a lesser  extent,  infrastructure 
projects, up in  1981,  increased again in  1982,  as did the EIB's 
support contribution to project identification, in the form of risk 
capital to finance pre-investment studies. 
The Joint Committee of the  ACP-EEC  Consultative  Assembly  initiated  a 
debate on industrial cooperation in  1982,  providing an opportunity not 
only for members of the Committee but for other  Lomé  bodies  with  an 
interest in the  matter  - the  Commission,  the EIB and the 
Centre for  Industrial  Development  - to think  more deeply about the 
forms industrialization might take. One early practical result of 
this  process  has been to give a fresh impetus to coordination between 
Commission,  Bank and CID, which have interlocking spheres of 
responsibility  for industrial development under the  Lomé  Convention. 

- 13 -
TITLE  II: SECTORAL  BREAKDOWN  OF FINANCING 
Community financing is presented in statistics broken down by sector 
The group of ACP States has some reservations about this form of 
presentation^. 
The Community considers  that,  in the absence of any recognized 
international rule on the question, the classification used reflects 
the reality  of the situation being portrayed^. 
Community financing is divided into eight sectors. The directly 
productive sector, which includes industrialization, tourism and 
rural production, always heads the list of Community financing  (63%). 
This  percentage is quite considerably higher than the 1981 figure 
(57.3%).  However, the absolute figures give an even clearer 
indication than the percentages do of the progress made in this field 
since  the results more than doubled from one year to the  next 
(690 million ECU compared  with  311 million ECU, or  121%). 
There was also a striking reversal compared  with  1981 in the results 
of the industrialization and rural production sectors. Financing in 
the latter  amounted to 355 million ECU compared  with  330 million ECU 
in the former. The agrifoods sector, which is classified under 
industrialization but has obvious connections  with  agriculture, 
accounted  for 40.4 million ECU. In all, therefore, very nearly 
400 million ECU was devoted to agricultural and agro-industrial 
development in 1982. This figure would be even higher if the 
financing devoted to village  water  engineering (18 million ECU)  were 
added to this already appreciable sum. 
See statistical annexes. 
2 
Energy  is included in industrial production in Community statistics, 
whereas other bodies exclude it. Moreover, the technical 
cooperation which is used for the remuneration of EEC experts is not 
considered  separately from the production sector 
(see  ACP-EEC  2156/82,  pp 8-9). 
3ACP-EEC  2183/82,  p. 4. 

- 14 -
A more detailed social and economic analysis would probably show 
that  a part  of the investments devoted to other sectors, notably 
the transport and communications sector, serves directly or 
indirectly to break the isolation of rural areas. 
Hence,  it does not seem excessive to estimate  that  the  total  amount 
of investment in the rural environment during the year came to 
about  50%  of overall investment (i.e. more than  500  million ECU). 
At Libreville, in its resolution of  14 May  1982,  the  ACP-EEC  Council 
of Ministers stressed, in connection  with  rural projects, the 
importance of developing the agricultural resources of each of the 
ACP countries, notably "from the more specific angle of combating 
hunger  in the world". While noting the "already substantial" 
share  of total  commitments  taken  up by the development of rural 
production,  the Council indicated  that  this share "could usefully 
be increased". The  1982  results show  that  this suggestion was 
followed up. 

- 15 -
CHAPTER  I: Agricultural and rural projects 
In 1982,  the appropriate departments of the ACP States and the 
Commission  administered  302  agricultural projects involving a  total 
of almost one thousand million ECU  (923  million ECU). These are 
global figures for both the fourth and  fifth  EDFs.  They cover 
projects proper and do not  take  into account either studies or 
experts' reports of  little  financial import or regional projects. 
Naturally, all these projects  were  at very  different  stages, 
ranging from appraisal to completed execution in the field. 
In 1982  alone,  75 new projects  were  financed for an overall amount 
of 312  million ECU, and  43 projects  worth  a total  of 
103 million ECU  were  completed. 
Although  no categorical  conclusions  should be drawn from a comparison 
of these figures, they do show  that  the average  unit  cost  was 
2.4 million ECU for completed projects and  4.2 million ECU for new 
projects. The average  cost  of projects administered is slightly 
over  3 million ECU  (3.06  million ECU). Since the beginning of the 
1980s  projects  with  a unit  cost  of 10 million ECU are not uncommon. 
In 1982,  the  20 million ECU barrier was almost reached for the 
Iringa  Agricultural Development Programme project in Tanzania 
(19.3  million ECU) and was broken for the Coffee Rehabilitation 
Programme in Uganda  (25  million ECU) and the Coffee  Improvement 
Phase  II in Ethiopia  (27.2  million ECU). 
Between the beginning of the fourth EDF and  1982,  a period of about 
seven  years, the  unit  costs  of rural investment projects virtually 
doubled. 
Agricultural projects can be classified in five main categories: 
(i) integrated projects; 
(ii) hydro-agricultural improvements; 
(iii) industrial-scale  crops; 
(iv) stock-farming projects; 
(v) fisheries and fish-breeding projects. 

- 16 -
As in all classifications, a certain amount of approximation is 
involved.  While nearly all hydro-agricultural improvements are 
geared to food-crop operations  (rice  in the  majority  of cases,  but 
sometimes cotton), integrated projects may also include coffee, 
groundnut or cotton  crops,  in addition to the production of food 
(which is very often the dominant component). Finally, as  well 
as projects involving permanent  crops  such  as palm or tea 
plantations,  there  are a number of others involving annual 
industrial  crops  such  as cotton or groundnuts, which are inserted 
into a food crop rotation system in which food production takes 
first place. 
There is a category heading "Other" in addition to the other five. 
It includes studies, technical assistance for various  purposes, 
and projects involving cooperatives. 
The following figures are for agriucltural projects under the 
fourth and  fifth  EDFs,  with  the exception of regional projects, 
which are listed elsewhere. 
In all, the agricultural projects administered during the year can 
be broken down as follows: 
Integrated  projects (food-crop biased) and purely food projects 
48 projects for a  total  of: 
average  : 287 million ECU 
6 million ECU 
Hydro-agricultural schemes 
28 projects for a  total  of: 
average  : 147 million ECU 
5.3 million ECU 
Industrial  crops 
57 projects for a  total  of: 
average  : 311 million ECU 
5.5 million ECU 
Stock-farming 
52 projects (including studies) 
for a  total  of: 83 million ECU 
average: 1.6 million ECU 
average per project (excluding studies) 
about 2 million ECU 
Fisheries 
51 projects (including studies) 
for a  total  of:  37  million ECU 
average:  0.7  million ECU 
average per project (excluding studies) 
about  1.3  million ECU 

- 17 -
Other (mostly studies) 
66 projects for a  total  of: 58 million ECU 
average: 0.8 million ECU 
In the resolution which it adopted as a result of its meeting of 
20 May 1983 in  Brussels,  the  ACP-EEC  Council of Ministers allocated 
an important place to rural development. This resolution recalls 
and strengthens the Libreville resolution (14 May  1982), 
particularly as regards the prices paid to producers for agricultural 
products,  which must be high enough to serve as incentives. A 
similar remark in respect of stock farming is a new development. 
The Council also stressed the need for an accurate assessment of 
the traditional farming situation when projects  were  being prepared, 
the advantages of choosing appropriate techniques and the importance 
of maintenance and the motivation of the local people. 
The Commission considers it very encouraging  that  the highest 
political authority of the Convention is dealing so pragmatically 
with  questions relating to the rural environment, which is indeed 
the main axis of development. 

- 18 -
CHAPTER  II: Industrialization and energy 
Industrialization, which received large amounts of financing during 
the year (330 million ECU) comes in second place, immediately  after 
rural production. In the statistics broken down by sector, 
industrialization includes the extractive industries and it should 
be pointed out in this connection  that  Sysmin operations accounted 
for 95 million ECU in 1982. 
The Commission's contributions to industry proper during the year 
were  relatively small. They consisted in the allocation of 
additional funds for the Demerara forestry project in Guyana and 
supplementary financing for the Soguiplast project in Guinea. 
The Bank's overall financing, on the other hand, in the various 
sectors  of industry came to more than 88 million ECU in 1982, 
about 57% of the Bank's  total  operations. This includes aid to 
development banks (49.4 million ECU), most of which is subsequently 
allocated to small and medium-sized industrial projects on a 
case-by-case  basis and over several financial years. There  were 
direct contributions (38.8 million ECU) to five agro-industrial 
projects (27.8 million ECU) - in Cameroon (two palm-oil works), 
Ivory  Coast (rubber factory), Somalia  (dairy)  and Papua New Guinea 
(palm-»oil  works) - as  well  as a project in the chemical industries 
sector  (phosphoric acid and  fertilizer  factory) in Senegal. The 
various individually financed projects should contribute towards 
the direct creation of about 3 600 jobs, mostly in 
agro-industrial complexes. 
Industrialization includes energy or "energy-biased" projects, 
which also account for a very large sum  (nearly  85 million ECU). 

- 19 -
EIB contributions in the energy sector amounted to 48.6 million ECU. 
This  is still a very important activity of the Bank  (31.4%  of its 
total  financing in  1982).  The projects aimed at reducing the 
ACP States' dependence on energy  (more  than 90% of the financing in 
this sector) involve two thermoelectric power stations fired by 
domestic  coal in Zimbabwe and Botswana and a geothermal power station 
in Kenya. The saving in foreign currency as a result  will  be 
equivalent to about 700 000 tonnes of oil per year, which is 20% 
of the oil consumption of the  three  countries concerned. 
The Commission co-financed large or medium-sized energy operations 
(Suniatu and Omus projects). 
Financing  in connection  with  new sources of energy covered studies 
and technical cooperation in preparation for projects. In Guinea 
and Senegal it was for drawing up a programme for the development 
of renewable sources of energy in the rural environment. In 
Ivory  Coast, Rwanda and Zaire it covered a scheme for introducing 
gasifiers  and in Togo the harnessing for energy purposes of liquid 
effluents from an oil works. There  were  projects in Zaire for the 
electrification of health and social centres and the refrigeration 
of vaccines and medicines by photovoltaic solar energy. There  were 
also  two regional projects, one in the South Pacific to  work  out a 
programme for the development of renewable sources of energy in the 
region,  and the other in the  CEA0 .1 and CILSS .2 countries. 
1 
2 C£A0:  West African Economic Community. 
CILSS:  Inter-state  Committee for Drought Control in the Sahel. 

- 20 -
CHAPTER  III: Transport and communications 
With  more than 112 million ECU committed in the course of the year, 
this sector receives the third largest share of financing. Within 
this sector, road transport infrastructure (roads and bridges) takes 
by far the biggest share  (nearly  72 million ECU). There is an 
increasing  trend towards repairs and maintenance rather than the 
building  of entirely new structures. This applies particularly 
to c had,  Togo,  Senegal and Central African Republic. 
It is certainly not an entirely new phenomenon. In its annual 
report covering the 1981 financial year the Court of Auditors gives 
the following examples: "37% of the  fifth  EDF indicative programme 
for Togo is devoted to infrastructure, and under this heading, 
provision  is made essentially for the reinforcement and maintenance 
of existing roads, rather than for new roads. The EDF  will  make a 
contribution of 5 million ECU for repairs to the Nouakchott-Rosso 
road  in Mauritania". 
The Court of Auditors does not confine this comment to road projects. 
Similar  remarks are made - mutatis mutandis - in practically all 
fields,  and in respect of projects involving buildings in particular. 
This  view seems to be tinged  with  a pessimism 2 which can be 
considered  to be too specific (to EDF-financed constructions) and,  what 
is more, somewhat excessive. It is too specific because  there  is no 
exception to the law  that  all things human  will  age and decay. It 
1 
0J C 344, 31 December 1982, p. 122. 
See also Title V, Chapter II, p. 67. 

- 21 -
is somewhat excessive, or at least too sweeping, because EDF 
constructions  belong to the recipients and it is in their interest to 
preserve them. Moreover, maintenance of most of the constructions in 
question is adequate. Distinctions could no doubt be drawn between 
countries on the basis of their economic and geographical situations, 
but the most relevant factor is probably project category. There can 
be no doubt  that  road projects, which are fundamental for development, 
are among the most expensive to study, execute and maintain. 
What  is more, the price rise already referred to in previous reports 1 
is continuing. It is due not only to well-known inflationary factors 
but also to difficulties in executing projects encountered on the spot. 
These  difficulties are not necessarily technical, but are often also 
administrative (management problems, supply breakdowns, etc.). 
Two important air-transport projects  were  financed, one in West Africa 
and one in East Africa, the aim being to modernize airports' technical 
facilities so as to increase the safety of air navigation both when 
flying over countries and during landing and  take-off  procedures. 
The Bank provided the transport sector  with  finance for a regional 
maritime  project covering seven ACP States in the Pacific in the form 
of four risk capital operations for a  total  of 2 575 000 ECU (1.7% of 
the Bank's operations in  1982). 
A 10 million ECU loan  with  an interest-rate  subsidy from the EIB's 
own resources (6.5% of  total  commitments) was allocated to the 
telecommunications sector as a contribution towards financing the 
extension of the international telephone installations in Abidjan 
(Ivory  Coast) to cope  with  the foreseeable increase in  traffic  up to 
1990. 
See the 1980 report:  C0M(81)686  final, p. 18. 

- 22 -
The tourism sector received only  4.85  million ECU  (3.1%  of the Bank's 
total  operations in  1982).  Both operations, which  were  financed via 
development banks, concerned the enlargement or construction of hotels, 
one in Lilongwe, the new capital of Malawi, and the other on the 
"Petite  Cote" in Senegal,  80 km south of Dakar. The Commission 
provided  800 000  ECU for a study on tourism in the Caribbean. 

- 23 -
CHAPTER  IV: Education and training 
In 1982, most of the financing in this sector  (nearly  60 million ECU 
out of a  total  of slightly more than 65 million ECU)  went  on study awards 
and training  courses  under multiannual training programmes. 
More emphasis was laid than in the past on the integration of 
training programmes in other Community-financed development  schemes. 
Vocational  training is given preference over general training, and 
study  awards must  meet  clearly defined requirements. 
An ever-increasing number of countries are concerned about the fact 
that certain types of training are not suited to actual employment 
opportunities.  This is why studies have been undertaken to look at 
this fundamental problem and propose appropriate solutions. These 
studies  will  have to specify the means which are to be used 
(infrastructure, equipment, teaching  staff,  practical forms of 
cooperation  between university institutions in the ACP States) to 
obtain the desired result. 
The teacher training schemes are not new. During the year the 
emphasis  was on training in the fields of primary and vocational 
education. 

- 24 -
CHAPTER  V: Mater  engineering, urban infrastructure and housing 
The commitments made in this sector in the course of the year came 
to slightly more than 40 million ECU. The urban development share was 
quite small  (about  4 million), most of the financing from the 
resources  of the  fifth  EDF going on  water  engineering for human 
purposes  (water  supply and sanitation). The level of this 
financing was distinctly lower than in 1981, when it exceeded 
87 million ECU. It should be borne in mind, however,  that  the 1981 
results had been very high because of the financing of the very 
large  water  supply project in Addis Abeba (53 million ECU). Generally 
speaking,  then,  water  supply systems in the urban environment have 
outweighed those in the rural environment. This is in line  with  the 
choices  made by the ACP at the  time  of programming, when about 
150 million ECU was earmarked for towns as against about 
50 million ECU for rural areas. This priority is no doubt imposed by 
the generalized phenomenon of urbanization, but it is not going to 
improve the living conditions of rural inhabitants, who account for 
more than 80% of the population, nor  will  it further the development 
of the rural productive sector, which should gradually enable the 
entire  country to be self-sufficient in food. Admittedly, choices 
inevitably mean limitations. 
A number of projects which have been submitted to the Commission for 
a financing decision are one-off operations, aimed at meeting certain 
clearly identified and well-defined needs. However, should the 
recipient country  want  to devise or implement a policy for  water 
engineering for human use via control operations, these operations do 
not provide back-up. 
In Sierra Leone, additional financing was granted to improve the  water 
supply  of N'Djala  University College. In Mali, financing is to be 
provided to fit solar pumps to existing boreholes on the main 
transhumance route between Nara and Bamako. In the  Comoros,  financing 
was granted to supply the Fombani Centre,  where  the existing system had 
been destroyed as a result of bad  weather. 

- 25 -
Other operations should  be mentioned because they  involve  cooperation 
with other donors.  One in  Guinea concerns  a village  water engineering 
project launched  successfully  with fourth EDF resources  and then 
developed  further  with fifth EDF resources  (5 million ECU as a  grant, 
of which 1.5 million  ECU for  micro projects)  with support from other 
external aid donors (UNCDF,  USAID and  UNICEF),  reaching  a level of 
12.5 million  ECU. Another concerns  a Community  financial  contribution 
(5.3 million  ECU in the  form of a grant) to the  Mogadishu  water supply 
project at a total cost of 39 million ECU with contributions  from IDA 
and AFESD.  Moreover,  the terms of Community  financing  (a grant in 
this case) make it easier to service the loans granted  by other donors. 
A third operation concerns  the development  of village  water engineering 
in Togo. As  financing  from fourth EDF resources  has well and truly 
reached its investment  objectives,  it has, and  will continue  to be, 
extended by parallel  operations financed  by other aid donors, such  as 
BOAD (Conseil  de 1'Entente)  and IBRD as  well as a joint operation  by 
USAID and  French  bilateral  aid. The appraisal  of another  project 
financed by French and Belgian  aid has  also been continued,  partly to 
develop water supply points  in a very deprived  rural environment,  but 
mainly to back up Togo's own  efforts  to set up a  system to ensure that 
the local  recipient  population takes  responsibility  for the  technical 
and financial  aspects  of maintenance.  The Community  contribution 
might take  the form of support  for national  departments' information 
campaigns  on water problems (water-borne diseases, maintenance  of 
water intake systems),  the training  of village  artisans  to carry out 
repairs, and the  development  of the  distribution  of spare parts  within 
the country. 
(3) 

- 26 -
Financing granted to Swaziland is to provide  rural inhabitants with 
water supply  systems  (using springs and boreholes) of varying  degrees 
of complexity, the technology being geared to the physical constraints 
and capacities of the  beneficiaries.  This project, being carried out 
with the cooperation of the  German  bilateral  aid authorities,  has 
highlighted  the problems  of operation and  maintenance  and solutions  have 
been proposed involving the  local people in day-to-day operations and the 
technical  and financial  support of central and regional  departments  for 
more complex  operations. 
Another operation, in  Zambia,  is of particular  interest in that it 
involves  the inhabitants of townships, with populations of  between 
3 000 and 16 000,  and is one of the  most effective  ways of preventing 
rural depopulation.  These  townships  offer the local people, who are 
engaged in rural activities,  attractive  enough  facilities  (health care, 
schools,  water,  electricity  and other public  utilities  plus cinemas) 
to stop the  drift to the  capital. 
It is worth noting in connection with these  village  water engineering 
operations that the "basic  principles"  which were jointly  defined by 
the ACP and EEC experts meeting in  Bamako  in November  1979 have 
helped the various  government  departments  responsible for devising 
sectoral  policies  in their search for  original  solutions well adapted 
to each country's  social  and economic  situation. 
In the urban environment, the project to  improve  the Georgetown 
sanitation  system in  Guyana  is interesting  in that the  Community 
financing  not only  meets an obvious and urgent  need but also  backs up 
the considerable  effort being made by the  local authorities to 
maintain a  minimum  service in a  relatively  densely populated  urban 
area. 

- 27 -
Finally,  mention  must be made of the  fifth EDF regional cooperation 
money (10  million ECU) used to pay for the  water supply  of Industries 
Chimiques  du Senegal (ICS), Senegal's counterpart  to contributions 
from' external  aid donors (over 300 million ECU) for  launching  an 
industrial  scheme to transform Senegalese  phosphates  into fertilizers 
required by the  regional  market (Senegal, Ivory Coast,  Cameroon  and 
Nigeria).  This project  was financed  in July 1982 and the  work was 
actually  started  in October.  It should be in  operation  by the end 
of 1983 so as to  enable the industrial  complex  to get  under way 
according  to schedule  at the  beginning  of 1984.  This promises  to be 
yet another  illustration  of the  fact that,  when the  objectives  are 
clearly defined  and people are willing to get on  with the job, the 
procedures  - very often accused  of delaying  the rate of commitments  -
do not hold up operations  at all, but, on the  contrary,  are a 
guarantee  of proper execution  for both the recipients  and the  donors. 
The only urban-planning project financed  in 1982,  back-up 
infrastructure  for the  rehabilitation  of the  Poura mine in Upper Volta, 
is relatively  new in some  respects.  It includes  not only urban 
infrastructure  works (water, roads, etc.)  but above all reafforestation 
and food crop  schemes  aimed at developing  urban  living linked to the 
rural environment.  It is a  kind of integrated  urban development 
project and the  results  are encouraging  at this stage. 

- 28 -
CHAPTER VI: Health 
Nearly all the financing in this sector in 1982 - a relatively  modest 
11 million ECU -  went on infrastructure (10.5 million ECU). The 
trends already  noted in certain projects financed in 1981  seem to have 
been confirmed, a particular  example  being the  Kaedi hospital project 
in Mauritania,  which is in execution but  still not complete.  The 
lessons to be learned  from this project, a  model one in many respects, 
will have to be examined  as soon as possible in order to evaluate the 
impact of this  type of project in various social and  economic 
envi ronments. 
Otherwise,  stress is  still being laid on better health services, 
mainly in the rural  environment,  with particular  emphasis  on preventive 
medicine  and the training of medical  staff. 
In the island state of the  Bahamas,  three rural health centres  were 
financed in July in order to provide better  facilities  for the 
inhabitants of the small isolated islands, who  until now had had no 
regular medical service and had to cross the sea by  boat, a dangerous 
venture sometimes,  to get health care in the larger neighbouring 
islands. 
In addition to national  schemes,  in October  Community  aid financed a 
regional health project  aimed at close cooperation  between  the health 
services of two neighbouring states in East Africa  (Kenya  and 
Tanzania). The  purpose  of the project is to identify and  examine 
health problems  in the rural  environment  and experiment  with pilot 
schemes  in order to  improve  rural inhabitants' health  (flying  doctor 
teams). 
The project also includes  ongoing  training  schemes  for rural health 
workers in the two states  concerned  in order to  improve  their 
qualifications,  knowledge  and working  methods. 

- 29 -
CHAPTER VII: Trade  promotion 
The new approach  to trade promotion introduced  by the  second Lome 
Convention  and the  choices made by the ACP  States were examined  in 
detail in the  report for 1981. 
Fifty ACP States have expressed  interest  in trade promotion  and asked 
for operations  of this kind to be included  in their national 
indicative  programmes.  Resources  for regional trade promotion 
can be up to 40  million ECU (Article  22 of the  Convention),  so that 
when the money  under national  programmes  is added, the total 
available  for trade promotion  can be put at  about 80 million ECU. 
In spite of this, many ACP  States have not yet  submitted concrete 
proposals  for trade promotion  schemes.  By 31  December  financing 
operations covered only  19 countries,  for a total amount of 
9.9 million ECU. Regional operations reached  8.1 million ECU, 
which brings  total commitments  for trade promotion  up to 
18 million ECU. 
Priority can be, and  is, given  to schemes to improve the training  of 
trade personnel  in government  departments,  and semi-public  or private 
organizations  with a view to the  promotion  of products  and 
adaptation  to developments  on both domestic  and external markets, 
all along the marketing chain. This involves,  for instance,  the 
training of chamber of commerce  staff and intra-ACP trade promotion. 
In practical  terms, one ACP  State was able to say  that within  the 
structure  of its foreign trade  the percentage  of its exports  of 
finished and semi-finished  goods had increased from  20% to 40%. 

- 30 -
Nevertheless, it has  been noted that ACP States too often  choose 
operations at the end of the marketing chain, such as participation 
in fairs and exhibitions,  whereas  operations at an  earlier  stage 
might often prove to be more useful. Be that as it may, a  total 
of two hundred  participations by ACP States in  forty-five  trade 
events - at a cost of  2 million  ECU - were organized for various 
ACP countries, either  individually  or through regional 
organizations. 

-31'-
TITLE III: FINANCIAL  AND TECHNICAL COOPERATION BY GEOGRAPHICAL AREA  
CHAPTER I: The  SaheL 
A number of  factors,  some external (oil  prices,  drop in world demand) and 
some internal  (climatic  vagaries),  have meant that the Sahel (Cape Verde, 
Chad, Gambia,  Mali, Mauritania, Niger, Senegal  and Upper Volta) has been 
facing serious  structural  difficulties  - even going as far as to  suffer a 
drop in per  capita income in numerous  cases - for  nearly a decade now. 
These economic  and - for some  countries  - financial  difficulties  (problems 
of indebtedness)  were aggravated  in 1982 by the  considerable drop  in the 
prices of raw  materia  Is,often  in conjunction with  a reduction  in the  volume 
of exports  and a corresponding drop  in export earnings. 
In the context of the  priorities  set by the  governments,  action financed  by 
Community  aid during the year continued  to aim at  reviving  the economies  by 
concentrating  on the  productive sectors,, notably  by: 
(i) diversifying  domestic production  and exports (market-gardening produce, 
fisheries  development); 
(ii) supporting  the production  and marketing system  for certain  export 
products (Stabex transfers  to Gambia,  Mali and Senegal). 
Also, wherever  the need was felt, training  schemes  were set up on the  basis 
of requirements  (qualifications  and numbers). 
Generally  speaking,  the financing operations fit  in with an overall  policy 
aimed at remedying several fundamental imbalances,  namely: 

- 32 -
(i) The disparity  between  grain production  and consumption 
Despite the very great  difficulties  involved  in collecting  reliable  data on 
grain production  and consumption  in the  Sahel, it appears that production  is 
tending to grow less quickly than consumption. Dietary habits  in the  towns 
have done much to  widen the gap  between the two, and  local accidents  of 
climate (inadequate  rainfall  or uneven spread over  a given province)  or 
other scourges  (infestation  with rodents)  do nothing to help. 
Rainfall was adequate  in the  Sahel in 1982. At the same  time the countries 
felt the need to take steps  to improve the working of their economies,  the 
main one being to raise agricultural  prices for 1981/82,  which led to an 
increase in food production throughout  the area, thus  reflecting  how 
sensitive  the reaction  of those engaged  in economic  activity  is to decisions 
of this nature. This step  had a positive effect  in particular  on rural 
development  projects financed  by Community  aid, a sector which accounts 
for a considerable proportion  of the  funds available  under the indicative 
programmes  (some 35% of the  total). 
Self-sufficiency  in food is still the prime objective  of the  Sahel countries 
For this, it is  important that  the rural population concerned should  adopt 
new cultivation  methods.  This is why the  most successful  framework  for 
action has turned out to be  that which  encourages  the peasant in the  village 
to take an interest  in dryland farming  and farming on small irrigated  areas. 
(ii) Deterioration  of the  land 
Any increase  in grain production  has been due, to a  large extent,  to an 
increase in the  area under cultivation,  although improved  varieties  or 
productivity  brought  about by the  introduction  of new growing techniques  are 
beginning  to have an effect. 

- 33 -
For ecological reasons,  the growing of food crops  in most Sahelian regions 
is practised  essentially  on an extensive scale. 
The Commission  took this situation  into consideration  in the  projects 
implemented  in 1982,  first by restoring  the fertility  of the  soil, worn out 
from successive  harvests,·and by  encouraging  a change in production techniques 
in order to take into account the  fact that there  was little land available. 
(i i i) The precarious  development  of stock farming 
Large-scale action  is being taken  in two  areas, namely: 
animal health: considerable progress  has been made in  protecting  the 
livestock  from major diseases; 
more watering points  have been provided  for the  livestock,  but at the same 
time care  has been taken to cut down on  pockets of overgrazing. 
(iv) Deforestation 
Another important problem  for the  Sahel is the  tree cover  and fuelwood supply, 
particularly  for cooking food.  So as to  slow down the  intensive deforestation 
caused around  towns and also in rural areas the Community  is providing  aid 
to help perfect techniques  to reduce consumption  of this source of energy. 
Several SaheLian countries  have set out to  devise and implement  food 
self-sufficiency  policies  or, as in  Mali, a "food strategy",  to which the 
Community  has pledged its support  as part of the  action plan  to combat 
world hunger.  This move is  aimed in particular  at ensuring  a greater degree 
of coordination  between the policies  worked out by the  states concerned 

- 34 -
and the support  which the Commission,  the Member  States and other aid  donors 
can provide. 
Finally,  experience has  shown that there is no purely national  answer  to 
all the problems  common  to the Sahelian countries. Their regional  dimension 
dictates  an approach  which must be coordinated if national efforts are to 
have any chance  of success. It is with this necessity in  mind that the 
Commission  is offering to collaborate with the  Permanent  Inter-State 
Committee  for Drought  Control in the Sahel (CILSS),  which acts as a focal 
point for relfection and analysis leading to the drafting of operation 
guidelines,  notably in the  attempt  to achieve national and regional 
self-sufficiency  in food, on the basis of an analysis of existing constraints 
(prices,  marketing, storage) and  financial  difficulties  (recurrent costs). 

- 35 -
CHAPTER II: West African coast 
The West African coastal  subregion  comprises nine countries, ranging 
Guinea-Bissau  to Nigeria, with very diversive populations, resources, 
cultures and languages.  Taken  all together,  however,  they make up a 
tropical,  humid zone, the main features  of which are that it has  direct 
access to the sea and  maritime  activities  such as fishing and the 
shipping  trade and consists  - with the exception  of Benin and Togo - of 
a band of tropical  forest in the  south with  savannah  forest in the  north. 
This means that rural production  in these countries  is very diversified 
as regards crops  - for food and export - and livestock,  notably 
trypanotolerant  cattle  that can be  used as draught animals  (an undeniably 
important factor  for stepping  up the  peasants' production capacity). 
The population density  is generally  low enough for there to be no  danger 
as yet of  overexploitation  of the  soil or of any  competition  between 
arable farmers and stock farmers. 
In short, the geographical, physical  and human  features  of these 
countries  mean they have substantial  advantages  over the landlocked 
countries  of the  interior  as regards both  the production  of food and 
export crops  and, generally, trade with  the outside world, since  the 
transport  costs for imports and exports are very much lower. In 
normal circumstances, these countries  do not, or should not,  have any 
serious food problems, provided that suitable  pricing  policies  are 
pursued, and it is  perfectly  feasible  to develop produce  for export 
provided that  the arrangements  for foreign trade  are liberal enough and 
the prices  set so as to  provide a better return than  on food crops,  for 

- 36 -
which the prices on the  Local market  provide  Less reward per work day; 
it can be  seen from the example set by  Ivory Coast that the path towards 
self-sufficiency  should not be  advocated  at all costs.  There  are also 
some countries  in the  subregion that  have considerable mineral resources. 
Among the  factors holding  back development,  to varying  degrees,  are the 
small size  of several of the  domestic  markets,  the lack of skilled 
labour, the absence of efficient  communications  (telecommunications  and 
intellectual  as well as physical links)  and monetary  instability;  hence, 
it is easy to understand  the attempts  that have been made since 
independence  to promote  regional cooperation  - in other words, to create 
a viable  economic  area. 
Despite the generally favourable natural conditions,  the economic 
situation  in all the countries  of the  subregion  has deteriorated  to 
varying degrees  in most sectors - traditional  and/or  export crops, 
industrial  production, trade  deficit  caused by the  levelling-off  or 
decrease in value of exports (lower prices  for raw  materials)  and by 
an increase  in the  cost of imports,  hence a more-or-less general 
deterioration  in the  terms of trade. The recent  fall in the  price of 
oil has meant that even Nigeria,  an important  member of OPEC, is  facing 
similar problems.  The consequences  of this state  of affairs are well 
known - a slowing-down  of economic  activity,  fewer jobs leading  to an 
increase in unemployment,  notably in the  towns, budget  deficits  and, in 
certain cases, an increase  in the  foreign debt.  The  fact that there  is 
a shortage  of foreign currency, that  the population  has continued  to 
grow over the last few decades,  that the towns are expanding  (rapidly  in 
certain countries  such as Ivory Coast and Nigeria)  and that agricultural 
productions  is at a  standstill,  all this helps  to make the  situation 
more sombre and make it  more urgent and more difficult  to find a solution 
to crucial  monetary  problems. 
Coffee, cocoa,  phosphates,  diamonds  and even, recently,  to some  extent, 
oi I. 

- 37 -
In these circumstances, unfortunately, it is hardly  surprising  that the 
majority  of the nine countries in the  subregion  figure in fact among 
the least developed countries. 
The European  Community  is trying to ease the  situation  by providing 
food aid for six out of the nine (Benin,  Ghana, Guinea, Guinea-Bissau, 
Sierra Leone and, to a small degree,  Togo) and, when the conditions are 
met, by transferring  Stabex funds  - over 70 m ECU was transferred for 
the 1981 application  year (of which nearly  16 m ECU from the  special 
allocation  of 40 m ECU), mainly for Ivory Coast and  Ghana and small 
amounts for Benin and  Sierra Leone. 
But these are  cyclical  measures  and only  structural  aid will go any way 
towards improving the  situation.  Formerly, under the two  Yaounde 
Conventions,  Community  aid went first and foremost towards improving 
economic  and social  infrastructure  but progressively, notably with the 
implementation of the  Lome Conventions, in response to the wishes of the 
states concerned, the  emphasis  has shifted  to the development of natural 
resources,  especially  via rural development, which is at the present 
stage the  essential  driving  force for development. 
An example  of this, for 1982, is the project for the development of the 
Kara valley in Togo, which received financing under the second, fourth 
and fifth EDFs; the present  phase (III) has now passed  beyond  the 
pilot stage reached by the two  earlier  phases and is enabling  numerous 
peasants in the overpopulated  Kabyée  mountains to  transfer  to a 
ready-developed zone,  where they can  practise  a more modern form of 
agriculture,  combining stock farming and the use of draught animals. 
Another integrated  rural development project was launched in northern 
Sierra Leone.  A similar  programme  has been under way in Guinea-Bissau 
for several years; although it is based on  industrial  crops (cotton and 
groundnuts), it contains a food-crop  component  based on action by peasant 
associations  (village  committees). As can be seen from the  modicum  of 
success achieved with the development of  rice growing, the  price policies 
pursued can play a decisive part,  sometimes  on the negative  side. 

- 38 -
Although  relatively  little has been done by way of developing  fishery 
resources, the  Community  is contributing  towards  such development  with 
projects  aimed at encouraging  artisanal fishing  in Guinea-Bissau and 
Sierra Leone and via  fishery  agreements  concluded with Guinea-Bissau 
and being negotiated with  Guinea;  these agreements  provide for  financial 
compensation  designed to help  improve  the countries'  economic  situation. 
They also help to  improve  the knowledge  of fishery  resources and the 
knowledge  of fishing  techniques on the part of the nationals of the 
countries concerned. 
As usual,  participation  by the  local people in projects was  most effective 
in the framework  of rural development  operations, microprojects (in  Ghana, 
Guinea-Bissau and  Togo for the time being;  programmes  are being prepared 
for various other countries of the  subregion,  notably Ivory  Coast)  and 
also in providing boreholes,  particularly  in rural areas, or motivating 
the villagers  to see that  maintenance  is carried  out properly on structures 
and equipment  (notably in Ivory Coast; the Togolese  government  has 
just taken some measures  intended to act as incentives in  this respect). 
Several agricultural  projects  have large training  components.  Also, 
work has continued  actively  on the implementation  and/or  preparation 
of the multiannual  training  programmes  (e.g. in Benin,  Guinea,  Guinea-Bissau, 
Nigeria and Togo).  Also, new  links have been established  between  Nigerian 
and European  universities. 
It is interesting  to add that, during the year,  Community  aid was  called 
upon to step in, probably temporarily but in an unusual  manner,  for 
another source of external financing,  which failed  to materialize  because 
of present circumstances. This was for the  SOGUIPLAST  project in  Guinea, 
for which a Community  grant of  7.15 m ECU was provided in addition to 
the aid accorded  earlier  for this same project, to replace aid  from Iraq 
which could not be mobilized. 

- 39 -
Appraisal  of regional cooperation operations has continued apace, despite 
the fact that, because  of sheer  chance  in many instances or  because 
cofinancing  arrangements are involved, the preparation and implementation 
of aid is  more complicated than for projects on an  indicative  programme. 
A large proportion of such  schemes  consist of  training  manpower  in 
technical  spheres,  where there is a notorious lack of  qualified  staff, 
especially  in the middle ranks. The spheres involved are  statistics, 
telecommunications,  electricity  (production and  management),  management 
refresher  courses and maritime occupations  (still at the  identification 
stage). The regional dimension of these  different  operations,  more often 
than not, spreads  beyond  the confines of the  West African coast.  Still 
on the subject of regional cooperation, complicated preparations are 
under way for a large-scale telecommunications project for cofinancing 
under ECOWAS,  as is the appraisal of new  phases  of agricultural  research 
projects  in Liberia  and Nigeria.  There are also plans for a  reafforestation 
project in the upper Niger valley  in Guinea, in cooperation with the 
Niger Basin Authority, which  will be an interesting  step towards protection 
of the soil and the environment in the subregion and deserves to be followed 
up by numerous  other such  schemes.  Along these  same lines, a study is 
being carried  out concerning an inventory and the  classification  of 
forestry  resources in Guinea-Bissau. It is designed to help plan the 
development  of forestry  resources and ensure that the environment is 
protected. 

- 40 -
CHAPTER III: Central Africa 
The geographical area  of central Africa  comprises  seven countries,  namely 
Cameroon,  Central African Republic  (CAR),  Congo,  Equatorial  Guinea,  Gabon, 
Sao Tome and  Principe  and Zaire. 
All these countries,  except the Central African Republic  - a landlocked 
country - have direct access to the  Atlantic;  Sao Tome and  Principe 
consists of two  islands and Equatorial  Guinea  covers part  of the  mainland 
and an island in the  Gulf of Guinea. 
It can be  said generally that  the central African countries  have fairly 
favourable climates;  except  in the  north of Cameroon  and the  Central 
African Republic there  is adequate  rainful  throughout  the region, 
which is even abundant  in the  equatorial  zone, to support  both the 
natural  flora and crops. Proof  of this is that there  are thousands 
of square  kilometres  of virgin forest  which are being exploited 
as the basis of a large-scale timber industry (in  Cameroon,  Central 
African Republic,  Congo,  Gabon and Zaire). 
Agriculture  is developed  enough to make  all the countries  of central 
Africa more or less self-sufficient  in food, except in Gabon, where 
there is no  rural tradition,  and in Sao Tome and  Principe,  where cocoa 
is grown as a monoculture,  preventing  adequate  production  of food 
crops. Given the good natural conditions,  a wide range of crops is 
grown, either specially for  local consumption  (such as root crops 
and tubers)  or for export (such  as coffee and, in the  Central African 
Republic, cotton),  or for both (such as fruit - bananas,  oranges and 
so on). For some  years now the  Community  has been contributing aid 
for the development  of this spectrum  of agricultural  produce.  An 
example of one  such project is "Rural development  in north-west  province" 
in Cameroon,  which really got off the ground in 1982 and  which will 
encourage  production generally  in the  region, while improving  the 
living conditions  of the  people.  Another  example  is the  project 

- 41 -
for "Rural development  in the  coffee belt" in the  Central African 
Republic,  which is aimed, inter alia, at intensifying  food-crop  and 
coffee production  and will constitute,  as from early 1983 under the 
fifth EDF, a  follow-up  to an  earlier  project financed  by the  fourth 
EDF. 
The central African countries referred  to above have  an advantage 
over many others on the  continent  in that they  are rich in raw  materials; 
Zaire's resources (cobalt,  copper,  diamonds,  gold, manganese,  tin, 
zinc, etc.) are well known, as are the  diamonds  of the  Central African 
Republic;  Cameroon,  Congo and Gabon are also oil-exporting countries. 
The challenge  of the  future for countries  such as Congo, Gabon and 
Zaire would seem to be how to  exploit the natural resources  to the 
utmost and use  their earnings  to improve the standard of living 
of the population  as a whole. It is in  this light that Community  aid 
to Zaire  under Sysmin must be viewed (40m ECU to  restore Gecamines' 
cobalt and copper production capacity). Nevertheless,  the drop in 
the prices  of several raw materials  and the  present drop in oil prices 
show how dependent  and vulnerable  these countries  are and  underline 
the need for a reasonable  and prudent  policy. 
The central African countries all suffer  from a common  problem,  that 
of an inadequate  transport  network.  It still needs improving,  not 
only to open up the  interior  of the  countries  but also to provide 
reliable means of  communication  so as to  guarantee  a regular flow 
of goods for export and import. This  is why a  large proportion 
of the indicative  programmes  under the fifth EDF has  been earmarked 
to improve  the transport  system.  Assistance  is being planned,  or 
is already forthcoming,  for Cameroon  (Yaounde  - Douala  road and 
railway);  the EDF has  financed  a modern  earth road  in the  Central 
African Republic,  linking  the Cameroon  frontier  with the centre of 
the country  and Bangui; a start has been made on  improving  the roads 
in Equatorial  Guinea and, next year, Sao Tome and Principe  will have 
a modern  vessel to provide a link with Gabon; in Congo the EDF is 
involved in the CFCO  railway project  and is  financing  a road to 
provide access to the  coast via Zaire. Finally,  studies  have been 
completed  on several other projects,  which will be starting  up shortly. 
(4) 

- 42 -
Mention should be  made here of the Transgabon  railway, the  first 
section of  which was opened  in January  1983 and to  which the EDF 
made a contribution.  Given  the high  degree  of interdependence 
between the success  of projects in several sectors  - to refer only 
to agriculture and its perishable production  - and the existence of 
good transport  facilities,  it makes sense for countries to place 
the emphasis  on operations  aimed at providing  efficient  and speedy 
transport at the lowest possible cost. In this context, we should 
like to highlight a regional project  aimed at improving air 
navigation safety in Africa and  Madagascar,  which was approved 
during the  first half of  1982 and which  will help to do just that 
in Cameroon  and Congo. 
We have already referred to the  optimum  allocation and  utilization 
of resources.  There  is still much to be done to achieve this aim 
in the field of education. We can scarcely claim that the 
projects carried out or  launched  in 1982 were essentially in the 
"social"  sector,  which includes not only education but also 
medicine,  etc., but it  must be stressed that the multiannual 
training programmes  being implemented  in these countries do help 
to fill gaps in both general and specialized education. 

- 43 -
CHAPTER IV: The Horn of  Africa 
Djibouti  had a  relatively  good year, but the  main two countries of 
this region were faced with serious troubles in 1982. 
These events worked against the development  efforts  of the governments 
of Ethiopia  and Somalia at a time  when concentration of all resources 
on that  objective  is essential  if the  situation  is to improve. An 
added, and  tragic,  complication is the presence of refugees in the 
region. 
Though there were fewer refugees in Somalia than in preceding years, 
there still remains on Somali  soil a very large  number of people who 
are dependent  exclusively  on international  aid for  their livelihood. 
Djibouti  is affected  by the same phenomenon,  though to a  lesser 
extent. 
For its  part, Ethiopia  is trying gradually to  bring back to normal 
the situation  of people displaced by the  wars in Eritrea  and the 
Ogaden. 
The UNHCR recently  launched a  series of schemes  to help encourage 
refugees to return to  their homes in Ethiopia. 
The Community  is making a  financial  contribution  to this operation, 
which is  essential  if peace is to be restored to the region for good. 
The EDF's action has run very smoothly in  this region, which is one 
of those concerned by operations planned as part of food strategy. 
Other efforts  are being  made by the governments themselves. 
Somalia in  particular  has embarked  upon the reform of its finance 
system and is  trying to revive its  economy  by encouraging the  private 
sector - which has  been disadvantaged in  relation  to the  state sector 
in the past - to play a  larger  part. 

- 44 -
In Ethiopia, the  government  is pursuing its  policy along the  lines 
set out in the  1981-91  ten-year plan despite the serious  difficulties 
encountered (drought and drop in the price of coffee, the  main export 
product). 
Djibouti  had a  relatively  good year, during which the  economic 
situation  improved, mainly  because  of the healthy state of the 
Djibouti  franc, which is  linked to the  dollar. 

- 45 -
All the East African states (Burundi, Kenya, Rwanda, Sudan, Tanzania,  
Uganda) have been adversely affected by a deterioration in the terms  
of trade, all of them having to import almost all their oil  
requirements and most of them dependent on similar export crops (tea,  
coffee, cotton, etc.) which have either undergone a drop in world  
prices, or are stagnant. Following dramatic expansion of investment  
in Sudan against the background of the oil crisis and the worsening  
terms of trade, the debt situation has deteriorated significantly,  
requiring almost annual rescheduling. Even a relatively prosperous  
country like Kenya is not free from this problem.
Sadly, the economic cooperation which would help to cope with the  
situation has not been achieved because of political factors. The  
old East African Community exists no more but, more seriously, the  
issue of the distribution of the net assets and liabilities is far  
from being resolved and political attitudes have hardened, resulting  
in increased barriers to cooperation. Kenya and Sudan (along with  
Ethiopia) are steadily developing links northwards to include Egypt.  
This process is being helped in part by growing cooperation with  
the West.
On the other hand, Uganda looks to Tanzania for protection, and  
Tanzania sees itself more and more as a front-line state and is  
deeply interested in southern African political questions (SADCC,  
Namibia) and related economic cooperation.
Rwanda and Burundi have, for historical reasons, more in common  
with Zaire, and their cooperation with East African countries is  
mainly to overcome their isolation and ensure an outlet to the  
Indian Ocean, through the so-called central and northern corridors.  
This cooperation, of course, is strongly supported by the front-line  
states in the interests of pan-Africanism and growing intra-African  
links, but the closure of the Tanzania-Kenya border is an important  
obstacle to this trend.CHAPTER V ;  East Africa

- 46 -
There are moves to establish a preferential trade area covering  
countries in east and central Africa and the Horn, but the process is  
slow and hampered by objections from certain participants, including  
Tanzania.
It is clear that the world economic recession has not affected  
Tanzania or Uganda alone, as both Kenya and Sudan find themselves  
in considerable difficulties as regards their balance of payments and  
foreign exchange availability, but the effect is felt more directly  
in the poorer states.
Nevertheless, with better economic management, and taking into account  
the considerable productive potential in all the countries of the  
area, especially Sudan and Kenya, the East African region could  
overcome most of its difficulties. There is a serious population  
problem at present in only three of them (Burundi, Kenya, Rwanda).
As long as the political will to cooperate is lacking, nothing of  
lasting value can be achieved on a regional basis; and with the  
possible exception (relatively speaking) of Kenya, and perhaps Rwanda  
and Burundi, the infrastructure and trained manpower is lacking to  
make real progress on a national basis.

- 47 -
This zone has suffered from the recession Like everywhere else but in  
a manner peculiar to the island countries of which it consists. The  
major event of the year was a conference in Port Louis, known as the  
Indian Ocean Conference, at which the authorities of Madagascar and  
Mauritius met to work out joint guidelines for the two governments so  
that they could promote projects of mutual interest.
This initiative is particularly interesting since regional projects -  
bar a few exceptions such as fishery (tuna fishing in Seychelles) or  
training (sea-training school in Majunga) projects - are difficult to  
implement in this part of the world, notably because the recurrent  
costs are frequently out of all proportion with the expected benefits  
for each country.
The economic year was a difficult one for Madagascar, notably because  
of the shortage of foreign exchange, which was taken up for the  
purchase of imported food and fuel required for the day-to-day running  
of the country; this, of course, means little is left for capital  
development. At the IMF meeting held in June to discuss Madagascar,  
it was confirmed that there would be international support for that 
country provided it took action to restore its economy to health.
The main features of cooperation with the Community were:
(i) continued implementation of the fourth EDF (69.5 m ECU). Two  
large-scale projects - the Manakara-Irondro road (18 m ECU) and  
water supplies in the south ( 9 m  ECU) - were of great political  
importance since they were in the south of the country, but have  
suffered from the lack of imports (cement, in respect of the  
road project) and inadequate management (water project);
(ii) the fifth EDF was slow getting started; only the small-scale  
water engineering programme (7 m ECU) and the assistance  
following cyclones (5 m ECU) have been carried out. Progress  
has been made with preparations for the other projects.CHAPTER VI :  The Indian Ocean

- 48 -
Little progress has been made with the fifth EDF indicative programme  
for the Comoros. The nature of the projects chosen for the programme  
account for this slow commitment rate (60% of funds were earmarked for  
port projects and for the development of energy resources, projects  
which call for long preparatory studies) but it is also due to the  
distribution of decision-making powers in the country and the necessary  
"running-in" period for a new administration.
The economic future of the Comoros will be dependent for a while yet  
on foreign currency earnings from sales on the world market of a few  
products, the prices of which fluctuate all too frequently (cloves,  
vanilla, ylang-ylang) and for which the markets are threatened by  
substitutes.
However, the measures taken by the government to improve food  
production and the Community's efforts to introduce a new crop (maize)  
and conserve and improve the soil also form part of an overall policy  
to promote rural development.
The 1982 elections in Mauritius led to a change in the political  
direction which the country is taking. Approximately half the amount  
available under the fifth EDF indicative programme had been committed  
when the new authorities re-examined the programme. Nevertheless,  
on the whole, the remaining projects outstanding were confirmed.
They involve diversifying agricultural production and a Community  
contribution to the construction of the Phoenix-La Vigie road, to be  
cofinanced with France. For this project the new government has  
requested not only funds earmarked under the fifth EDF but also the  
unexpended balance under the fourth EDF.

- 49 -
The Community is still the main trading partner for Mauritius.
Exports to the EEC in 1981 were worth Mau Rs 2 711 nJ - 75% of total  
exports. Sugar exports to the Community under the second Lomé  
Convention (Sugar Protocol) account for a large share of this sum.
This explains the great importance which Mauritius attaches to  
cooperation with the EEC. Express mention is made in the new  
government's policy programme of the need to maintain what the country  
has achieved in its relations with the EEC.
The economic situation in the Seychelles became distinctly worse in  
1982 because of a definite slowing down of the tourist trade, leading  
to a deterioration of the balance of payments.
Following the events of February 1982, the Community decided to grant  
emergency aid to the tune of 200 000 ECU for repairs to Mahé airport,  
which had suffered damage.
Discussions continued with the Seychelles government during the year  
about ways of financing the project for the development of Victoria  
hospital, which has been delayed because the feasibility study was  
not ready and there were problems over the cofinancing terms. The  
Community contribution will involve the construction of a new building  
(75% of the indicative programme).
A group of four Indian Ocean countries (Comoros, Madagascar,
Mauritius and Seychelles), which met in December, has presented a  
study on development of tuna fishing in the Indian Ocean for financing 
by the Community (regional cooperation, Lomé II).
1  ECU = Mau Rs 10.3307 (1.1.1983).

- 50 -
In the case of southern Africa, the situation in the region and the  
orientation of Community programmes have been the subject of detailed  
consideration by the Joint Committee of the ACP-EEC Consultative  
Assembly. These discussions led to the adoption by the Consultative  
Assembly of a wide-ranging resolution on southern Africa in  
November 1982, which called for increased economic assistance to all  
Lomé states in southern Africa and to all members of the Southern
'fcAfrican Development Coordination Conference (SADCC).
A major purpose of this aid would be to reduce dependence on South  
Africa and to encourage regional cooperation among the countries of  
southern Africa, with particular regard to humanitarian assistance  
for refugees and to the rehabilitation and development of the  
transport and communications system. The Consultative Assembly  
resolution also stressed the need to create a pool of technical and  
managerial skills to pave the way for majority rule in Namibia and  
South Africa and recommended that the Community should promote  
further assistance in this field.
Further recommendations on Community aid to southern Africa are  
contained in a report and resolution of Parliament, discussed in 1982 
and finally adopted in early 1983. In addition to aid for refugees  
and transport and communications infrastructure, this resolution  
called for increased cooperation with SADCC countries in the mining  
and energy fields, in the formulation of an agro-food strategy, in  
the industrial sector, and in the development of education and training  
systems. The parliamentary resolution also emphasized the need for  
the Community to participate fully in the development of Namibia  
expressing the hope that an independent Namibia would opt for ACP  
membership. In addition. Parliament welcomed the decision of Angola  
and Mozambique to participate in the negotiations relating to the  
third ACP-EEC Convention and reaffirmed that pending their accession  
to the convention, the two countries should benefit fully from  
Community programmes intended to assist other developing countries.
★SADCC members include Angola; Botswana,- Lesotho, Malawi>--Mozafnbique>-  
Swaziland, Tanzania, Zambia and Zimbabwe.CHAPTER VII:  Southern African region

- 51 -
The recommendations of these parliamentary bodies have had an important  
bearing on the evolution of Community programmes in southern Africa, and  
at the SADCC International Conference in Maseru, originally scheduled for  
November 1982, the Commission outlined the Community's contribution to the  
implementation of SADCC programmes and to the development of SADCC states.  
Under the Lomé II regional programme for ACP States, approximately a third  
has been allocated to SADCC projects in the transport and communications  
sector, with a further third earmarked for programmes in the fields of  
agriculture, food security and animal disease control. The remainder is  
assigned to education and training programmes and to projects in the  
industrial, mining and energy sectors. In addition, the Community has  
launched a technical assistance programme in support of the SADCC Secretariat  
and its initiatives in the different sectors.
As regards the Lomé II indicative programmes in southern African countries,  
approximately half the EDF commitments to end-1982 have been directed to  
agriculture and rural development, with a further third assigned to social  
infrastructure and training programmes, and the remainder to economic  
infrastructure, industry, energy and mining (see enclosed table).
Cooperation with Zambia assumed particular interest in 1982 with the initial  
implementation of the mining provisions of Lomé II, mainly with regard to  
the rehabilitation of the copper mining industry; further interest attaches  
to its role as a pilot country within the Community's food strategy  
programme.
Assistance has been provided from EDF regional resources and other Community  
aid programmes for the training of Namibian students and the relief of  
southern African refugees. Cooperation arrangements outside Lomé have been  
initiated with Angola and Mozambique, notably in the spheres of agriculture,  
fisheries and energy.

- 52 -
The List of states signatory to the Lomé Convention in this region grew
Longer in 1982 because two countries gained independence and acceded to the
Convention; they were BeLize, which became an ACP State on 5 March, and
Antigua and Barbuda, which acceded on 30 JuLy. Thus, the number of
Caribbean states whose reLations with the Community are governed by the
1Lomé Convention was brought up to tweLve.
ALL these countries are isLands, except BeLize, Guyana and Suriname, and  
account has been taken of their specific difficuLties in the Convention.
The difficuLties are caused in particuLar by the countries' remoteness,  
which puts up transport costs, and their smaLL size. In addition, buiLding  
and maintaining the minimum sociaL infrastructure required as weLL as ports  
and airports pLaces a very heavy burden on their economies, since the  
costs of investment, depreciation and maintenance have to be spread among  
a very smaLL number of taxpayers.
On account of these probLems, regionaL cooperation is essentiaL in order to  
spread the cost of joint services and form a broader market. Hence, the  
Commission wiLL be financing the LIAT (air transport, 5 m ECU) and WISCO  
(shipping, 6m ECU) projects - financing for the Latter started in 1978 and  
the project is currentLy under way; it invoLved the purchase of a vesseL  
and containers to provide a Link between the smaLL isLands and trans-shipment  
faciLities to the main intercontinentaL ports.
Since the majority of the countries in the region do not have abundant  
naturaL resources, their economies remain dependent on exports of products  
such as bananas, cocoa and sugar, which are subject to sharp price fLuctuations  
and easiLy damaged by naturaL disasters (hurricanes in 1979 and 1980).CHAPTER VIII:  The Caribbean
Antigua and Barbuda, Bahamas, Barbados, BeLize, Dominica, Grenada, Guyana,  
Jamaica, Saint Lucia, Saint Vincent and the Grenadines,Suriname, Trinidad  
and Tobago.

- 53 -
The way in which Community aid is allocated reflects the structure of these  
economies - the mutual commitments as regards sugar, the Protocol on rum and  
the use of Stabex and emergency aid to restore damaged economies to health.
However, the need to diversify agriculture has not been forgotten; the  
support granted to the Caribbean Food Corporation and the Caribbean Institute  
for Agriculture and Development could help in the future to restore the  
balance of the food situation in the region.
This diversification exercise will succeed only if trade promotion campaigns  
are launched for the different products selected. This is why several  
Community-funded projects during the year concerned trade promotion, either  
within the indicative programmes or using the resources provided under  
Article 22 of the second Lomé Convention for comprehensive operations of a  
regional nature (this is what is being done with the large-scale project -  
helped by an EDF grant of 1  800 000 ECU - to develop all the countries'  
trade promotion departments and train specialists for those departments).
Also, the important role that tourism plays in the economies of these  
countries has been taken into consideration, particularly in applying the  
already mentioned Article 22 to campaigns to encourage potential European  
customers to spend their holidays in the Caribbean; this promotion has been  
very successful, thanks in particular to the financing of a Caribbean stand  
(for some fifteen ACP countries and OCT) at the Berlin tourist fair and by  
launching projects designed to provide more efficient facilities for the  
Caribbean Tourism Association.

- 54 -
Not only are the eight Pacific countries signatory to the second Lomé  
Convention island countries but their own territory is widely dispersed  
(archipelagos), they are far away from any large markets and all, except  
Papua New Guinea, are small.
These constraints mean that building and maintaining the minimum social  
infrastructure required as well as ports and airports places a very heavy  
burden on their economies, since the relative costs of investment, depreciation  
and maintenance have to be spread amongst a very small number of taxpayers.
Although the per capita GNP of these countries gives the impression that the  
standard of living is relatively high, there is in fact a huge disparity  
between incomes and living standards in the towns and in the countryside.
What does not appear from these figures either, in the case of the least  
developed countries, is the artifical nature of the economy, which is dependent  
essentially on self-sufficient activities. This is due partly to the fact  
that the people are still very much attached to their traditional way of  
life.
Since nature is pretty generous and the villages are run along communal  
lines, the rural population is never really ir. need, except when there is  
a natural disaster such as a cyclone.
Hence, the development effort is closely linked to rural activity and takes  
the form of progressive evolution rather than a revolutionary change in the  
living habits through large infrastructure projects.
As in most developing countries, one of the points of major concern here at  
present is dependence on outside sources of energy, which means a huge oil  
bill accounting for 25% of export earnings for Fiji and over 100% for Samoa.
Therefore, the Community is trying to improve these ACP countries' situation  
via regional projects in the transport sector (Pacific Forum Line - purchase  
of containers - 1m ECU), telecommunications (9m ECU) and new sources of  
energy (biomass, etc.). Fishery and forestry projects have also been financed  
recently on several islands.
t_-----Fij
i, Kiribati, Papua New ^Guinea, Samoa,-So l^on^slandS-^JLonga^ Tuvalu, Vanuatu.CHAPTER IX:  The Pacific

- 55 -
TITLE IV:  IMPLEMENTATION OF THE SPECIFIC PROVISIONS OF THE CONVENTION
CHAPTER I:  Measures to help the least developed, Landlocked and island
ACP States
The raison d'etre and content of the special policy introduced by the  
Lomé Convention to help the least developed, landlocked and island  
ACP States are well known and have already been described in detail.
This policy, set out in Article 155 of the Second Lomé Convention, is  
reflected in "special treatment" accorded to the least developed  
States on the basis of what the text rather eliptically refers to as  
"the nature of their needs". This involves in particular financial  
provisions designed to make the terms of the aid more favourable; the  
aid is made up mainly of grants and, where appropriate, special loans the  
terms of which are highly favourable to the borrower, and risk capital.
In the case of landlocked and island States there are "special measures"  
designed to take into account their particular geographical location,  
in particular as regards communications and energy.
The least developed ACP States, of which there were 35 when the Convention  
was signed, not total 39 following the accession of Antigua and Barbuda,  
Belize, Kiribati and Saint Vincent and the Grenadines.
Most of the landlocked and island ACP States are also on the list of  
least developed ACP States. The only landlocked ACP State not to appear  
on this list is Zambia.
Of the nineteen island ACP States, eight are not among the least  
developed too, namely Bahamas, Barbados, Fiji, Jamaica, Madagascar,  
Maruitius, Papua New Guinea, Trinidad and Tobago.

- 56 -
Under the fifth EDF, the amount of the programmable resources allocated
to  the least developed, landlocked and island ACP States is 1  765.5 m ECU,
whereas the corresponding amount for the other ACP States is 560.5 m ECU.
The former group of ACP States has therefore had 76% of the resources under
1the indicative programmes allocated to it; the per capita allocation  
in this group is on average double that of the other ACP States.
Non-programmable resources amount to 2 132 m ECU.
At 31 December 1982 the percentage of commitments under the indicative  
programmes for the least developed, landlocked and island countries was  
642 m ECU, i.e. 28% of their minimum national indicative programmes.
For the other ACP States the corresponding percentage was no more than  
6% at the same date. Total commitments embracing all EDF resources  
(i.e. not just the programmable funds, but also Stabex, interest rate  
subsidies and risk capital) amounted at the end of the year to 938 m ECU  
for the ACP States listed in Article 155 of the second Convention out of  
the overall committed total of 1 514 m ECU, i.e. 62%. These results  
show that the obligation contained in the texts, to grant more favourable  
treatment to the least developed, landlocked and island ACP States,a need  
reaffirmed by the ACP-EEC Council of Ministers of 20 May 1983,was observed  
and acted on.
For the regional projects involving these States, the amounts committed
up to 31 December total 111.1 m ECU, i.e. 17.6% of total fifth EDF
2resources available for this category.of projects.
Minimum indicative programmes.
The total amount of regional resources committed at 31 December was  
157.4 m ECU, i.e. 25% of available resources.

- 57 -
The ACP-EEC Subcommittee set up during the year to consider problems  
specific to the least developed, landlocked and island countries has  
so far held three meetings. On the basis of a jointly established  
working programme, it examines the specific problems of the ACP States  
concerned and the application of the specific provisions in the  
Lomé Convention which refer to these countries.
The breakdown of financing granted by the EIB during the year to the  
various ACP States according to whether or not they belonged to the group  
of least developed countries (Article 155 of the second Lomé Convention)  
resembles the breakdown under the first Lomé Convention (Article 48) and  
in the first year of implementation of the second Lomé Convention: over  
70% of aid in the form of risk capital has been granted to thirteen  
ACP States on the list of least developed countries while the other States  
have received over 87% of the loans from the Bank's own resources.
All the loans from the Bank's own resources have been granted for projects
1situated in countries with a relatively higher per capita income or with
2a middle-range income and over 54% of the aid in the form of risk capital  
has been granted to the poorest ACP countries.
Igdp exceeding US$ 1 000 a year-
2GDP between US$ 370 and US$ 1 000 a year.
( 5 )

- 58 -
Regional cooperation is one of the important aspects of financial and  
technical cooperation. The second Lomé Convention contains very  
comprehensive provisions on regional cooperation (Articles 133 to 136)  
and these set out the ways and means by which the Community can provide  
the ACP States with aid in this sphere.
The funds amount at present to 631.5 m ECU. Following the accessions of  
Zimbabwe, Vanuatu, Saint Vincent and the Grenadines and Belize, 31.5 m ECU  
were added to the 600 m ECU initially earmarked under Article 133.
Under the first Lomé Convention, regional cooperation went through what  
was at times a difficult running-in period. Its greatly improved progress  
under the second Convention bodes well for the future. Although it is  
obviously still too early to paint a full picture, only two years having  
passed since the entry into force of the second Convention, it is clear  
that a better balance has been obtained from the sectoral point of view  
(fewer infrastructure projects, more projects geared to production and  
training) and also from the geographical point of view (greater importance  
of regional cooperation in East Africa, central Africa and southern Africa).
In addition, the sharp increase in the number of projects proposed by  
ACP regional organizations is proof that the new provisions of Lomé II  
have encouraged these institutions to play a more important role in  
regional cooperation.
There is also the emergence of a new generation of more comprehensive  
operations which may be considered innovations if compared with the  
essentially "conventional" operations conducted under Lomé I. This new  
generation of projects (such as the Centre for research into new energy sourcesCHAPTER II:  Regional cooperation

- 59 -
set up by the CEAO, the SPEC's integrated energy programme, the agricultural
3 4 5research projects organized by CARDI, IITA, ILRAD, etc.) is intended to  
solve problems shared by the ACP States at regional level. It comes mainly  
from the ACP States' regional bodies but mention should also be made, in this  
context, of operations concerning the "corridors" in East Africa, for which  
the initiative rests, as is only natural, with the ACP States involved, in  
conjunction with the Commission.
The positive results obtained hitherto should not> however, disguise the fact  
that there are still some difficulties. First of all, there is a tendency to  
consider regional resources as a kind of supplement to national indicative  
programmes, and this sometimes gives rise to projects the truly regional nature  
of which may be queried.
Furthermore, the pull of all the various interests, further intensified by the  
desire to share out the available resources on an arithmetically fair basis -  
an admirable aim on the face of it - sometimes means that resources are thinly  
spread over too great a number of excessively small projects.
Lastly, the procedures for programming regional projects, although distinctly  
more efficient than under Lomé I, are still rather cumbersome, particularly as  
regards the identification of projects emanating from a number of ACP States  
but not backed by an active regional organization. The preparation of such  
projects is often too slow and time-consuming, and even costly in relation to  
their scale.
When the Convention is renewed, all the favourable results achieved, alongside  
which there have also been some substantial difficulties, will certainly have  
to be examined in detail by the partners in order to make regional cooperation  
even more effective.
CEAO: West African Economic Community.
SPEC: South Pacific Bureau for Economic Cooperation.
CARDI: Caribbean Agricultural Research and Development Institute.
IITA: International Institute for Tropical Agriculture.
ILRAD: International Laboratory for Research on Animal Disease.

- 60 -
By the end of 1982, financial commitments had been made for some hundred  
regional projects totalling 157.4 m ECU. This amount corresponds to some  
25% of the available regional resources.
At the same time projects for an amount of 93 m ECU were being appraised:  
the financial commitments for these projects were to be made during the first  
half of 1983.
The total commitments made or in the pipeline at 31 December 1982 therefore  
amounted to some 250 million ECU, i.e. 40% of regional resources.

- 61 -
During the year the European Investment Bank granted the development banks  
financing on fifteen occasions for a total of 49.4m ECU (29m ECU in the  
form of five subsidized loans from own resources and 20.4m ECU in the form  
of risk capital), representing 32% of its total operations.
The loans from own resources were accorded for financial institutions in Ivory  
Coast, Kenya, Mauritius, Barbados and Trinidad and Tobago. The aid provided  
as risk capital varies in kind; it consisted mainly of six global loans  
to development banks in Uganda, Burundi, the Seychelles, Mauritius and  
Vanuatu; it also took the form of three Loans to the State to help it to  
finance or increase its participation in the capital of national development  
banks in Uganda, Jamaica and Dominica, and once the acquisition by the EIB  
of a holding, on behalf of and at the risk of the Community, in the capital  
of a development bank in Djibouti.
This form of financing via development banks, which increased very significantly  
in 1982, makes it possible mainly to help set up and expand small businesses  
in the traditional sectors covered by the Bank's operations (see the  
Article 119 Report for 1981).
In 1982, 46 loans totalling 22.3m ECU (9.1m ECU under Lomé I and 13.2m ECU  
under Lomé II) were allocated under the various ongoing global loans. They  
were for small and medium-sized investment operations in manufacturing  
(40 loans amounting to 20.6m ECU), primarily agri-industry, textiles and  
leather, and also for tourism (six loans amounting to 1.7m ECU). The range  
of projects financed by funds allocated under global loans contributed  
directly to the creation of some 1  500 jobs.
In all, at 31 December 1982, under the two Lomé Conventions, the EIB had  
contributed to the financing of some 190 small businesses in the ACP  
countries.CHAPTER III:  Small and medium-sized enterprises

- 62 -
The financing decisions taken in 1982 by the Commission account for 4.8m ECU.  
These operations relate especially to small firms and have involved mainly  
technical assistance, training and information in the sphere of industrial  
cooperation. The small firm, which continues to pose a great many problems,  
belongs to one of two categories:
(i) the rural small firm in an "economic desert", completely cut off  
from the sources of financing to be found in urban areas;
(ii) the urban small firm, which has a degree of infrastructure and a  
potential market to draw on, namely the wage-earners in the  
towns.
These two kinds of firms find it difficult to gain access to institutionalized  
credit because they can rarely give any financial guarantees. People's  
banks and savings and credit cooperatives could act as efficient intermediaries  
in this respect for the development banks.
One of the major obstacles to the development of the small firm is often the  
lack of training (technical or management skills) of the entrepreneur. The  
Commission is anxious to help to provide this essential training.
Lastly, it should be pointed out that the Commission also finances the  
CID budget (Centre for Industrial Development), which amounted in 1982 to  
over 5.5m ECU.

- 63 -
The ACP-EEC Council of Ministers took the opportunity to draw attention to  
its Resolution of 20 May 1983 to the three main criteria according to which  
the use of technical assistance should be examined: quantity, quality and
cost. It had already stressed in Libreville in 1982 the importance of  
the training aspect of technical assistance. In this case, however, the  
objective cannot be easily reached, even though is it clearly "identified".
During the year just over 73m ECU was earmarked for technical assistance  
proper (operations directly concerned with training, including training  
awards, being excluded) from the resources of the fifth EDF.
As for the training aspect of technical assistance, it should be pointed  
out that although success has undeniably been achieved in some areas serious  
difficulties have arisen in most cases: "opposite numbers" with the right
kind of temperament and abilities are difficult to find, technical assistants  
are not necessarily good teachers and the actual work often takes up their  
full attention. In these cases, unfortunately, technical assistance merely  
provides substitute personnel and does not play any part in training.
Technical assistance is nevertheless essential for many operations. In some  
cases it is already needed when the project is being elaborated, i.e. when  
decisions are being taken on requirements and resources and on methods of  
execution, and costs are being evaluated, etc., but it is also necessary at  
the execution stage and even after: technical and financial supervision of
the works, helping the population affected to adjust to the project, and  
management of the project in many cases.
Technical assistance is a success in so far as the national departments  
concerned on the one hand and the expatriate staff on the other work in close  
cooperation. This is what makes the role being played in projects by technical  
assistance in countries such as Upper Volta, Guinea, Benin, Swaziland and  
Zambia a very positive one. The success achieved in these cases depends on  
the existance of effective dialogue between the various parties involved:  
government department, expatriate staff, beneficiaries. Commission staff.CHAPTER IV:  Technical assistance

- 64 -
Technical studies in particular will continue to be essential for a long time  
to come, especially in highly technical areas. Even in these areas, it  
would be advisable for the national departments to play a more active parti
in monitoring these studies and perhaps participate more readily in the  
administrative work involved in compiling the invitation to tender dossiers.

- 65 -
CHAPTER V: Emergency  aid 
Community  emergency  aid granted under  Article  137 of the  Second Lome 
Convention  is intended,  as stated in that Article,  for the victims of 
"natural  disasters  or extraordinary circumstances having comparable 
effects",  the latter generally  referring  to the  repercussions  of the 
various kinds of conflicts  which can affect these countries. 
This aid is mainly humanitarian: it provides  immediate  help for 
populations  whose existence  is threatened  owing to disasters  of one 
kind or another. The aid generally involves  the sending of certain 
foodstuffs,  medicines, medical instruments, shelters, bedding, etc., 
through the most appropriate channels:  governments,  intergovernmental 
1 organizations  (UNHCR, UNDRO, UNICEF, WHO, etc. ), non-governmental 
organizations  and agencies belonging  to the Red  Cross family,  and 
Commission  delegations. 
Such aid is granted on a flexible  basis and by  simplified  procedures, 
and this means that the requirements  of speed and effectiveness essential 
to this type of operation  can be met. 
UNHCR: Office  of the  United Nations High Commissioner  for Refugees 
UNDRO: Office  of United Nations Disaster  Relief Co-ordinator 
UNICEF: United Nations Children's  Fund 
WHO: World Health Organization. 

- 66 -
The funds available for  emergency  aid amount  to 200m ECU for the  five years of 
the Second  Lome Convention, 
During the year 30  emergency  aid operations  were undertaken under  Article  137 
of the Second  Lome Convention.  These  operations involved 20 ACP countries 
1 
and represented a  total of 19.1m ECU. 
Most of this money,  i.e. 12.1m ECU or 65% of the  total,  went to help refugees 
or displaced persons in the  wake of the various  conflicts  in Africa.  The 
money was channelled towards meeting the urgent  needs of refugees in the host 
countries  (Somalia: 5m ECU;  Rwanda:  2m ECU) and also the requirements 
resulting  from repatriation  operations (1.5m ECU for refugees returning to 
Ethiopia).  Most of these operations  were carried  out by the  UNHCR,  but the 
International  Committee  of the Red Cross  (ICRC)  and some other non-governmental 
organizations  (NGOs)  also participated. 
The remainder of  this aid, i.e. 6.6m ECU,  namely  35% of the  total,  was granted 
to the victims of a  number  of natural disasters, such as: 
(i) cyclones and the  like in Mauritius,  Madagascar,  Tonga,  Malawi: aid 
Drovided via the  Commission  delegations, the  governments  of the countries 
2 
concerned and an NGO (WCC) ; 
(ii) drought in  Zimbabwe,  Mali, Cape Verde: aid channelled through 
delegations  and a government; 
(iii) floods in Benin: delegation; 
(iv) epidemics in Swaziland and  Ghana:  aid provided via delegations and the 
WHO. 
It was decided on  13 November  1981 to grant aid to the tune of  450 000  ECU 
for the Ogaden  refugees in Somalia and  this sum was committed in January  1982. 
World Council of Churches. 

- 67 -
In all these operations involved: 
seven Commission  delegations; 
seven governments; 
four intergovernmental agencies belonging to the UN family; 
five non-governmental organizations. 
As a result of the  flexibility  of the aid system and the  simplification  of 
administrative  procedures, these operations  were implemented very  quickly. 
In full-scale  emergencies, the time lapse  between  receipt  of the request for 
aid and adoption of the decision by the  Commission  varied from one to six 
days. As for actual implementation, 28 of the 30 operations  were conducted 
within periods ranging from two to seven  months.  For the other two, the 
scheduled implementation dates  were not observed. In one case,  this was the 
result of late delivery  of products and the lack of a supplier for  some of 
the orders. In the other, the delay was due mainly to the  internal  procedures 
of the implementing organization. 

- 68 -
CHAPTER VI: Stabex 
On 14 September  1982, the Commission took 37  transfer  decisions representing 
total disbursements of over 183 m ECU  (including  341 412 ECU from OCT funds) 
to offset  all or  some of the losses in export earnings  suffered  in 1981 by 
27 ACP States. 
As in 1980, the losses  suffered  by the ACP States on  their export earnings 
reached a  distinctly  higher  figure  than the  amount  earmarked for the 
stabilization  of export earnings. Following  appraisal  of the  dossiers,  the 
applications  totalled  453 107 231 m ECU,  whereas  in 1981 the annual  ceiling 
under the second  Lome Convention up to which the European  Community  had 
undertaken to  offset  such losses  amounted  to 112.1 m ECU (= annual  allocation 
of 111.75  m ECU less advance withdrawals in 1980 of 22 m ECU plus advance 
withdrawals from the 1982 fund of  22.35 m ECU). 
In view of the  scale of the ACP States'  difficulties,  the Community  presented 
to the ACP-EEC  Council of Ministers at  Libreville  an exceptional proposal 
comprising  additional  financing  to be provided independently of the system. 
At the same time, following  a case-by-case examination of the repayments to 
the system due from  certain  ACP States for the  first two years of the  first 
Lome Convention, under  Article  21 of that Convention, a deduction was  made 
from those States'  transfer  rights. 
The consequence's of implementing the decisions taken by the  ACP-EEC  Council of 
Ministers  at Libreville  have been as follows: 
(i) the amount  of entitlement to  transfers  has been reduced to 427 320 422 ECU 
by the procedure of deducting repayments due under  Lome I; 
(ii) a total of 182.8 m ECU has  been made available  for financing,  of which 
40 m ECU  will be used for projects and 142.8 m ECU  will be transferred 
under Stabex or on a  similar  basis; 

- 69 -
(iii) an overall cover rate of 42.8% has thereby  been achieved: transfers of 
less than 1 m ECU  have been paid in  full, and the least  developed  ACP 
countries (cover rate of 46.5%  have been treated differently  from the 
others (41.9%). 
The ACP-EEC  Council of Ministers at  Libreville,  furthermore, instructed the 
ACP-EEC Committee  of Ambassadors  "to carry out, in the  letter  and the  spirit 
of the Convention,  a thorough  examination  of the  Stabex  system  with a  view 
to preparing the deliberations of the special  meeting  of the Council of 
Ministers,  convened  to this end". This special  meeting  was held in the  first 
half of 1983. 
In addition, for the following financial year, the  Commission  paid advances 
in 1982 which were to be offset against the transfers  totalling  1.45 m ECU 
to be paid in 1983 to  Tonga and Swaziland. 

- 70 -
TITLE V:• BROAD QUALITATIVE  ASSESSMENT  OF THE IMPLEMENTATION  OF  
FINANCIAL  AND TECHNICAL  COOPERATION 
CHAPTER  I - Viability  of operations, integrated projects, participation  
by local  people 
It was in connection with plans for integrated rural  development  that the 
ACP-EEC  Council, in its resolution of  20 May 1983, raised the  fundamental 
question of the  viability  of operations and the association of the local 
people with the  works undertaken. 
In this connection the  Convention's  supreme  political  institution 
strongly  recommends  that all involved: 
(i) take account  of the  importance  of the traditional holding; 
(ii) opt for simplicity and  coherence  in technical matters; 
(iii) associate the local  people  with the  work in hand. 
The Council certainly decided to bring up the question of  viability  in 
connection with rural  development  problems  because  these projects are the 
most important and the  most necessary. It is clear,  however,  that the 
issue of  viability  crops up with respect to all projects and that it is 
always an essential consideration. 
It would seem that the notion of  viability  can be  approach  from two 
angles, namely: 
(i) in the abstract  - technically the project is a  good one but it is 
not effective  - or not enough  - because  it is not suited to the 
environment  or there are no operating resources. This  phenomenon 
has been observed  in connection with certain hospital projects for 
example; 
(ii) from the practical angle  - the project is viable  because  it 
produces  the desired effects. 

- 71 -
To call in question the viability  of an operation  is to  call in question 
the choice  of design and execution  of the  project.  The question  of the 
management  and maintenance  of projects  is closely linked  to the  above 
issue but is  treated separately  by the  Council in its resolution. 
1 
The Court  of Auditors  adopted  a similar  approach  in its report  for 1981. 
The Court, although  it stated that "taken overall,  the situation  is 
satisfactory"  and stressed  "the important contribution  made by EDF aid 
to the development  of the  countries  concerned",  levelled strongly  worded 
criticism  in particular  at certain integrated  development  projects  aimed 
notably, but not  only, at the  rural sector. 
Getting down to the  root of the  matter the Court stated that it  was 
"regrettable  that the Commission  should agree in this way to  finance 
projects on the  basis of inadequate  studies  ...". 
The Commission  accepts this  criticism  but would point out that it is 
really exceptional that  a study - once it has been accepted  by the 
parties concerned  - proves to be inadequate  before the project is 
executed.  Moreover,  the case quoted  dates back to 1963.  Also, the 
Commission  has for a long time  - if not always - been against rushing 
into commitments  since it  knows full well how easy it is to  commit funds, 
but any carelessness  at that stage  always has to be  paid for during  the 
technical  and financial  execution. 
It is at the  programming  stage, even though  this is done "by objectives" 
under the Lome II  system,  that the question  of viability  has to be 
examined.  It is  important  to avoid a situation  where, in order to 
appear fair and do  justice  to everyone,  certain  political  arguments  are 
allowed to interfere with  the options dictated  by objective  economic 
and technical  criteria. 
OJ C 344, 31.12.1982,  pp. 117-119. 

- 72 -
In the agricultural context in particular we  must be very careful  about 
projects that are to be carried out in several  phases,  that could be 
referred  to as "telescopic projects" or, in an  even more graphic manner, 
as "grants in perpetuity",  which can turn out to be veritable  budget 
subsidies for the  local agricultural  departments  and a substantial 
annuity for the consultants responsible for the technical assistance 
(with an  average  increase of 10% per  annum in the cost of  such 
assistance). Luckily, projects of this  type are fairly  rare but they 
do exist. Therefore, the authorities  concerned  should, without having 
any preconceived ideas or being excessively  inflexible,  work out more 
precisely  the boundaries  of their contribution in  space and time. 
At the execution stage, care  must be taken to see that the administrative 
formula adopted  suits the desired objective.  Thus,  still on the subject 
of agriculture,  numerous  projects are carried out on a direct labour 
basis and the  bodies  involved  sometimes  have trouble procuring certain 
supplies on the  local market  (spares,  cement,  reinforcing  bars and so 
on). Lack  of foreign  exchange  is then often given as the  reason  for 
not being able to  import  the supplies  which are, after  all, essential 
for the project, and so project execution suffers. 
The attention of the authorities -  perhaps  even at central level -
should be  drawn to this situation, for any expenditure to be  made in 
local currency on an  EDF-financed  project is provided for via convertible 
currency transfers. The resources required should  always  be available 
and the project should  always  be financially  independent. 
Development  companies,  state or semi-public bodies,  whatever  their 
individual  denomination  may be, are in  some instances unsuitable 
management  structures and often  have an overabundant  staff.  Legally 
these companies'  budgets  are state-guaranteed, but their actual 
operation in fact  depends  on external financing. Experience has  shown 
that when this source  of financing dries up current, or  even completed, 
projects are frequently  endangered. 

- 73 -
It would be risky to put  forward a definition, perforce abstract,  of an 
integrated agricultural project. Nevertheless,  such projects  do have a 
number of common  traits from which we can  assess their  scope, namely: 
(i) they aim to  step up existing production  and improve  productivity, 
or create  new forms of production; 
(ii) they are carried out over a wide area; 
(iii) they comprise  a package  of schemes of different natures  in the 
communications,  housing  and other sectors  as well as in  agriculture. 
Hence, they are complex  projects that  call for the  deployment  of various 
resources on a large scale. 
Naturally,  this complexity  is reflected  in the  execution stage,  for it is 
sometimes  noted that the original targets  had been set too  high and the 
time allowed to reach them often assessed  in much too  optimistic  a manner. 
It is not  possible  to change the behaviour  of a rural community  in just 
a few years, especially since  it does not always view with a favourable 
eye the arrival on the  traditional  scene of external  management  structures 
and since  these structures turn out,  in many  instances,  to be cumbersome 
and unsuitable. 
It is not uncommon for an  integrated rural  development  project  to comprise 
ten to twelve components.  In the  case of one ten-component  project 
(food-crop productivity,  groundnut  propagation, plant health protection 
measures,  reafforestation, farming small livestock,  development  of swamps 
and lowlands, small agricultural  machinery  workshop,  rural tracks, extension 
services,  technical training centre), only  a few of  them came up  with 
the anticipated results, notably  the development  of swamps and  lowlands 
and the agricultural  machinery  workshop.  If a request were received  for 
continuation  of the  project, action  would obviously  have to be concentrated 
on these strong points. 
(6) 

- 74 -
It was Likewise  in connection with rural  development  projects that  the 
ACP-EEC Council,  in its  resolution  of 20 May 1983, brought up the  question 
of participation  by the  local people. It  stated clearly  and precisely 
that "the project  must involve  the local population  in the works or 
indeed in the expense,  where possible,  and must offer a guarantee of 
benefit to the  local population';.  The recommendation has been  forestalled 
by events  since examples have  already  been quoted in the  past, notably 
in the construction sector  . It can  also happen  that the local people 
do more than merely  participate  - the initiative  can sometimes  come 
from them. There is an example of  this in Madagascar,  where a small-scale 
agricultural  water engineering project  emanated  directly  from the  villagers. 
The people are  participating either  by providing  local materials  or 
directly  by providing their labour.  The project  is producing  a remarkable 
snowball effect  in that, in 1982, nearly 23 000  traditional 
holdings benefited  from the  scheme,  in which  173 small structures  have 
enabled  irrigation  to be improved over  8 500 ha for a sum of  some 
1 400 000  ECU. 
In the sphere of water  engineering  for human use, at  least in urban  areas, 
the people's  contribution consists  more often than not merely of  payment 
for services  rendered.  This is why it is of the utmost importance  that 
an evaluation  be made of the  real cost price  of distributing  water or 
of the cost of sewerage  facilities  in relation  to the  beneficiaries' 
ability to contribute. This  can lead either  to providing  for a level 
of service within  a project  which is in  line with the users' resources 
(as in a project currently  under appraisal,  for a water  supply to three 
regional centres  in Mauritania)  or to  scaling  the tariff by reference  to 
the level  of service  and consumption, which is  generally  the tendency 
in the large towns. 
1981 report,  p.26. 

- 75 -
It is essential  in rural areas for the people to be associated with 
the decision-making processes (for instance concerning a watering point  -
whether it should be  modern  or traditional,  siting,  type of  work: 
well, borehole, spring, etc.) and it is desirable for  them to participate 
in carrying out the project by providing labour or  making  a financial 
contribution,  where possible, for the purchase of  equipment  for example. 
Social and economic  surveys  show that, in  most cases, the people are 
prepared to help choose the project and undertake it  when they are properly 
informed and motivated. The  same surveys  indicate  that the  ability  and 
desire to make a financial  contribution to the project are underestimated. 
in many instances, by the  authorities,  who do not even bother to ask. 
This is why the  Commission  recommends,  notably  where village  water 
engineering  is concerned, that project preparation should comprise a 
social and economic  survey and a motivation  programme  in order to  find 
the most effective  means of ensuring that the people do  participate. 
Projects  of this nature are under way (or being appraised) with  this 
in mind especially  in west Africa,  but also in Swaziland,  Zambia and Zimbabwe. 

- 76 -
CHAPTER  II: Operation and  maintenance  of projects 
The ACP-EEC  Council  acknowledged  the importance  and serious nature of the 
question of operation and  maintenance  of projects in that a special  paragraph 
was devoted  to it in its  latest  resolution. The court of Auditors, after 
noting that "EDF projects are in  danger  of rapid collapse" considers that the 
trend is irreversible "unless it is accepted that an increasingly large 
proportion of future  funds is to be  devoted  to salvaging the  achievements  of 
earlier  EDF projects, with the disturbing  consequence  that a 7th or 8th EDF 
may be anticipated purely to serve as a "Repairs  Fund". 
This prediction  would appear  too general;  many  projects, probably the majority, 
are maintained  satisfactorily  and operate well but they are  like contented 
people - they  have no problems  and so  no-one  talks about them,  at least not 
enough!  It is also probably too pessimistic;  Articles  152 and 153 of the 
Lome Convention contain provision - on certain conditions and within certain 
limits - for the financing of  maintenance  and operation of plant that is not 
yet fully productive and for  "extended  aid", notably for  maintenance.  The 
aid is provided temporarily and on a diminishing scale, but it exists. 
For its part, the Council of the  European  Communities  adopted,  on 8 November  1982, 
some "guidelines" on  maintenance  aid, to be accorded  when a serious situation 
of a structural nature arises preventing developing countries, particularly the 
poorest,  from maintaining their productive  system  (in the broadest  sense  of 
the word)  in operation. 
It is at the project-design stage - and the  ACP-EEC  Council is quite right in 
stressing  this - that attention  must be paid to  maintenance.  One example  among 
many in the  sphere  of rural  development  is that the introduction of the use of 
draught  animals is often preferable to motorised mechanization,  which  has been 
See 1980 report, p. 54. 

- 77 -
Looked upon for too  Long as a cure for aLL  evils.  GeneralLy speaking, the 
objectives  of projects  have to be viewed reaListicaLLy from the outset. 
It is one thing to  produce  on the drawing-board a  complex  and tempting 
project which is perfectly all  right on paper, but it is quite a  different 
matter to put it into practice in the  field.  And it is another thing 
altogether,  no less  difficult,  to make it work for any length of time. 
Hence, "developers" should learn a  little modesty,  which does not mean they 
should be bereft of ambition, quite the contrary. 
The Court of Auditors, in its  latest report, to which we  have referred  many 
times already, quotes  examples  of architectural  design and buildings which 
are unsuitable for  local conditions. It also quotes others which are 
perfectly  suitable. So, it is obvious which path we  must take (use of  local 
materials,  etc.), even though  that path may not be an easy one. 
The results of evaluations are of great value, of course, for designing 
projects  with presenting few  difficulties  regarding operation and  maintenance. 
In the field of village  water engineering, for  example,  the "basic  principles" 
worked out jointly  by ACP and EEC experts at  Bamako  in 1979 are helping the 
different  departments  responsible for drafting sectoral  policies  to come up 
with original  ideas that are well suited toeach country's  social  and economic 
environment. An  example  of this is the financing granted to Swaziland, which 
is to provide  rural inhabitants with water supply  systems  (using springs and 
boreholes) of varying  degrees  of complexity, the technology being geared to the 
capacities  of the  beneficiaries.  This project, which is being carried out with 
the cooperation of the  German  bilateral  aid authorities,  has highlighted the 
problems  of operation and  maintenance  and solutions  have been proposed involving 
the local in day-to-day operations and the technical and  financial  support of 
central and regional  departments  for more complex  operations. 

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Chapter  III: Evaluation 
The importance  which the ACP-EEC  Council is now attaching to evaluation  work 
was expressed in the resolution it  adopted  in Libreville  in May 1982. 
The point in question reads as follows: 
"The Council  recommends  that to  ensure  that the objectives  laid down in the 
Convention in the  field of financial  and technical cooperation as well as in 
the national indicative  programmes  and in the projects are attained, and to 
ensure that the  means  of action  brought  into play are as effective as possible, 
the relevant  departments  of the  Commission  and of the ACP States  shall regularly 
carry out appraisals, taking into account the provisions of  Article  118 of the 
Convention, on the effects and results of all  completed  projects as well as of 
the material condition of  each investment carried out.  They  will carry out 
these appraisals  jointly  and inform the Council, if possible as  from 1983, of 
the initial  conclusions  which  can be  drawn from the joint appraisals." 
The only  justification  for evaluation  work is its operational usefulness in 
applying the lessons learned  from experience in order to  improve  the impact 
of our action on  development. 
During the year the  Commission  launched and  completed,  with the assistance of 
independent  experts, an evaluation of one of the  most important instruments 
of the Community's  development  aid - food aid. 
In March 1982 the  Commission  ran an ACP-EEC  seminar  in Addis  Ababa  on education 
and training - a  seminar  from which the "basic  principles"  for that sector 
emerged,  which were agreed upon jointly  by the ACP and EEC  officials  that took 
part. 
Evaluation operations  have continued on the sectors of road infrastructure 
and livestock production. In both these  fields  summary  reports  were drawn 
up, from which draft "basic  principles"  were derived for  each sector.  These 
documents  were to serve as the basis for discussions at  ACP-EEC  seminars  on 
both these sectors to be held in 1983. 

- 79 -
The evaluation exercise on livestock production was carried out in cooperation 
with the  Member  States. Several of  them have contributed to the evaluation 
reports on stock-farming operations financed  from the various sources of 
bilateral  aid in question.  These  reports  were used in compiling the  summary 
report on livestock production,  which  was then distributed to all the  Member 
States that had contributed  towards  the individual project reports. In this 
way it was possible to  broaden  the basis of the "raw material" and put the 
results  to use for the benefit of several aid bodies  concerned. 
The results of these evaluation exercises are  summarized  below (those of the 
road infrastructure evaluation  were given in the  last report on  financial 
and technical cooperation  (1981)).  Lastly, in  1982 the Commission  launched 
an evaluation exercise for appropriate technology, suited to the  needs of 
grassroots rural and  urban communities. 
Main conclusions and  recommendations  derived  from the evaluation of food  
aid and livestock-production operations 
Food_aid 
The Community's  food-aid  programme  is a vast operation costing over  700 m ECU 
and it now  appears  certain that food aid  will have an important role to play 
throughout  the eighties. 
Food aid is financed  from the Community  budget  and, therefore,  lies outside 
the scope of the  Lomé Convention.  However,  it seems appropriate to report 
on it here since over  80% of the aid  goes to ACP countries. 
The evaluation study  concerned  ten countries,  five in Africa, three on the 
Indian subcontinent, one in the Middle East and one in Latin  America.  It 
showed that an appropriate  government  policy is of  vital importance  and that 
food aid can operate successfully only if it is closely associated with an 
overall  food strategy that stimultes  domestic  agricultural production. It 
also revealed that food aid has  complex  effects and that,  hence,  each country's 
specific  needs must be analysed in  depth. However,  it can also be  seen from 
the results of evaluation that, although EEC food aid has a part to play 
in improving food strategies, the long-term objective  must still be to 
cut down such aid gradually so as to  phase in financial  aid instead. The 
aim of the food strategies is, inter  alia, to achieve an  optimum  development 
impact,  including  improvement  of the balance of  payments.  There  has been 
only limited success with this  latter  objective since, given the size of 
the programme,  only a  relatively  small proportion  - barring exceptions  - of 
food import requirements has  been covered, and  because  of the structure of 
the programme,  which consists for the  most part of milk products,  whereas 
aid in the  form of grain sold on the  market  has been acknowledged  as the 
most suitable way of  meeting  food-strategy  needs. 

- 80 -
Three sets of  recommendations  emerge  from the evaluation, on the  programme's 
objectives, its  dimensions  and structure, and the  methods  of operation. As 
far as the objectives of  Communi  ty policy are  concerned,  it is recommended 
that they be  reviewed  in the  light of how far food aid may go  towards 
stimulating  growth  and in the  light of the effects of free distribution of 
food aid, while  emphasizing  that the top  priority  is food security. The 
need to set quantity objectives for  each country's  programme  is stressed 
in the study, as is the  need to combine  the objectives of food aid and the 
rest of the Community's  aid programmes  in a single  framework  with a common 
goal. 
It is recommended  that, for the  coming  years, the  Community  adopt a positive 
stance as regards increasing aid in the  form of grains for inclusion in a 
future Food Aid Convention.  Milk products are  much less worthwhile  and more 
difficult  to allocate effectively in a food-aid  programme.  Hence,  it is 
recommended  that milk products be replaced by financial assistance or by 
aid in the  form of grains of an equivalent value. Also  advocated  is that an 
increased proportion of food aid be delivered indirectly, via refugee 
agencies and organizations for  example. 
The evaluators also said that a larger  share of the food aid  programme  should 
be allocated for sale via the  domestic  distribution channels. 
The main institutional  change advocated  is that a multiannual  programme  be 
introduced comprising a formal  agreement  between  donor and recipient and the 
strengthening of the structure established in the  field for carrying out the 
food aid  programme.  The guiding principle for this  measure  is that an 
"indicative  food-aid  programme"  be negotiated for  each country. 

- 81 -
It is also  recommended  that the  Community  act more resolutely  to coordinate 
its food aid with that of other donors. 
In conclusion, the evaluation study points up the  need for a thorough review 
of the Community's  food-aid  programme  so as to adapt it in practice to 
development  objectives. 
The Commission  has started to follow up these  recommendations  in that it has 
sent a communication to the Council on the  role of food aid as a  development 
aid instrument and has set about  making  the first adjustments to its 
administrative  mechanisms. 
tly.§stock_grod^cti^n 
Taking stock of the operations to develop  livestock  production, the evaluators 
came to the following conclusions concerning the  main spheres. 
Operations to develop  traditional  stock farming aim to place at the farmers' 
disposal  certain  items of  infrastructure  and services, including health 
protection.  Generally,  however,  they do not succeed in helping the farmers 
to the extent expected in view of the  amount  of money invested. Since a 
large proportion of the  financial  resources is absorbed by the  administrative 
departments and semi-public bodies, such  schemes  all too frequently  have a 
hidden purpose - that of keeping these departments and bodies going.  They 
are hardly  likely to survive  once external aid has ceased. 
The health protection  measures,  notably the large-scale vaccination  campaigns, 
have been remarkably  effective  from the technical viewpoint. It is the 
fairly systematic lack of follow-up and monitoring afterwards that could 
well mean the results  will not be  lasting  and that these  measures,  instead 
of propping up the stock-farming departments  beyond  the period covered by 
the projects,  have often even led to  their becoming  more of a backwater within 
the administrative  framework  as a whole.  Here again what has been achieved 
could eventually disappear altogether. 
Operations to develop the use of draught animals  have turned out to be 
powerful development  instruments.. Not only do they  easily  remain viable  after 
the external aid has  been withdrawn but they tend to continue expanding, in 
a spectacular  manner in many instances,  carried  along by  their own impetus. 
These very encouraging features  have been observed in  particular  in cases 
where draught animals  have been introduced as part of  mass agricultural 
modernization operations. This  development  instrument has such  good development 
potential  that it deserves  special  attention. 

- 82 -
Modern stock farming (ranches, feed Lots, fixed-Location farms, etc.) 
has strictly  Limited  potential  as a development  instrument  because  of 
the one-off character of the operations in question. In  most cases, 
the viability  of such projects is not secured, except for those implemented 
and managed  in accordance with the  essential  high technical standards and 
a high level of financial  and managerial  discipline. 
Processing  and marketing operations, the king pins of which are 
slaughterhouses, can be successful in  certain  strict circumstances, 
which do not always pertain; they  must be based on simple, sturdy 
infrastructure  and equipment,  be of a capacity suited to actual  economic 
conditions  and evolve in tune with those conditions,  market the produce 
in harmony  with, and not in opposition to, private  interests  and be 
strictly managed  by experience and conscientious  staff. 
The evaluation report analyses the  weak spots in the  policies  for the 
development  of stock farming and  makes recommendations  for introducing 
the desired changes. It then reviews the  measures  that should be taken 
in respect of the  five categories of operation referred to  above. 
It places  particular  emphasis  on the need to concentrate not so  much 
on improving the animal - that is one way of going about it - but rather 
on the priorities  as perceived by the stock farmer himself and on the 
decisive  role he plays in developing  livestock  resources. 
The "basic  principles"  to be established following  this evaluation exercise 
will be discussed and  finalized  at an ACP-EEC  seminar during the course 
of 1983. 

- 83 -
CHAPTER IV: The  ACP-EEC  Courier 
During the  year the Courier confirmed its steady objective of acting 
as a source  of information, a  documentation  aid (notably via the "Dossiers"), 
a link between  the EEC and the ACP countries as well as  between  the ACP 
countries  themselves,  a forum for the  exchange  of ideas - enabling 
leading figures of the ACP States and of  European  countries, belonging 
to different nationalities and schools of  thought,  to express  themselves 
freely - and an instrument to help  implementation  of the Lome Convention 
to run smoothly,  notably via cooperation with the CID (yellow  pages) 
and by informing readers of the operational situation of EDF projects 
(blue pages). 
The Courier has continued appearing at the  same rate, every two months. 
During the  year the total number  of pages,  white, yellow  (news round-up 
and CID) and blue (operational  summary),  has never gone above the 
140-page  ceiling  set in the EDF  Committee's  decision  taken at its 
157th meeting  on 17 May 1981. 
The overall circulation figures of the English and  French  editions  have 
levelled  off at 77 500, of  which 36 500 in English and 41 000 in  French. 
The difference  between  the two editions also  seems to have levelled out 
with 4 500  more copies in  French than in English. In 1981 this difference 
was the same, while in 1980 it was  still 7 500 and in 1979 12 000. 
Around one quarter of the  total number  of issues -  both English and  French  -
is circulated in  Europe  (the Ten plus the rest).  Regarding  the distribution 
policy outside  Europe,  it should be  noted that, generally speaking, 
greater responsibility  falls to the Commission  Delegations,  which have 
better insight into the information  requirements  and distribution 
problems  on the spot and can provide  more effective  management  and 
monitoring of the mailing  lists,  especially  where new requests are 
concerned. 
As for the content,  each issue has dealt with a particular  theme in 
its "Dossier" section: 
(i) The dossier on new and  renewable  energy  (No 71) dealt with the 
key issues of the United Nations  Conference  on the same subject, 
which was held in Nairobi in  August  1981, and constitutes a 
follow-up to the  energy  dossier published in No 51. 

- 84 -
(ii) The dossier  on the Least  developed  countries (No  72) took stock 
of the United Nations  Conference  held in Paris in  September  1981, 
in which 22 ACP States  were directly  involved. 
(iii) The dossier on education and training (No  73) was intended to 
update earlier  dossiers on this  theme (Nos 25  and 46) and put 
forward, inter  alia, the viewpoint of Mr  M'Bow,  the 
Director-General of  Unesco. 
(iv) the dossier on  tropical  forestry (No  74) updated  the one contained 
in No 40 and illustrated  the importance  of this resource for the 
ACP States. 
(v) The dossier on  sugar (No 75) pointed up the  historical,  social and 
economic  importance  of sugar and showed  how vital was the  Sugar 
Protocol in the  Lomé Convention. 
(vi) The dossier on the  Memorandum  on the Community's  development 
policy (No 76) was illustrated  by an interview with Mr  Edgard  Pisani. 
As in the past, the aim of the dossiers was to present an overall 
approach  to the subject and then point out the  problems  peculiar to the 
ACP States as a  whole in relation to the issue in question. This 
picture was generally  completed  by reference to a few particular  cases 
in connection with ACP countries and a brief  summary  of Community 
cooperation, particularly on the part of the EDF and the  EIB, in the 
sector concerned. 
The "ACP"  columns  continued to consist mainly of reports on the  economies 
of the ACP States. The following ACP countries  were surveyed in  depth 
during the year (in chronological order and with a reference to the 
chief person  interviewed in brackets): No  71 - Dominica  (Prime Minister), 
Saint Vincent and the  Grenadines  (Prime Minister), Saint Lucia (Finance 
Minister);  No 72 - Rwanda  (President),  Jamaica  (Prime Minister); 
No 73 - Trinidad and  Tobago  (several ministers); No  74 - Ivory Coast 
(several  ministers); No  75 - Burundi (President); No  76 - Vanuatu 

- 85 -
(Prime Minister), Tuvalu (Prime Minister) and Kiribati (President).
These surveys helped to illustrate the needs and development priorities  
of the states concerned. They also provided a platform for the  
authorities to express their opinions on ACP-EEC cooperation and, lastly,  
enabled readers in the Community countries or other parts of the world  
to gain a better knowledge of these countries.
In these same columns it was possible for other persons in senior  
positions from the ACP countries to express their views, notably  
Mr E. Carrington, Deputy Secretary-General of the Group of ACP States,  
and the chairmen of the ACP specialized committees responsible for  
agricultural, industrial, financial and technical cooperation and for  
intra-ACP cooperation.
The section entitled "Viewpoint" began in 1982 with comments by a few  
leading figures on the Cancun summit (H.E. Mr I. Jazairy, H.E. Mr Sy,
Mr R. Hormats (US Assistant Secretary of State) and Lord Carrington).  
Other well-known people were also interviewed by the editorial staff  
during the year, namely Mr Y. Le Portz (EIB), Mr F. Blanchard (ILO),
Mr M. Tolba (UNDP), Mr F. Owono-Nguéma (ACCT) and Mr J.-P. Cot (the  
then French Minister for Development and Cooperation). A mini-dossier  
was published on the subject of world hunger, giving a broad idea of the  
overall problem and stating the principle of a strategy to combat hunger,  
with the comments of the Parliament rapporteur.
The columns headed "Europe" began with an interview with Victor Michel,  
MEP, on the evaluation of cooperation and also celebrated the 25th  
anniversary of the signing of the Treaty of Rome. Together with more  
general articles, a report on a conversation with the new President of  
the European Parliament, Mr Pieter Dankert, told readers about his  
ideas on reviving the European idea and Lomé policy.
Under "The Arts" came an article by H.E. Mr R. Chasle on the transfer  
of culture and other contributions on, for example, the Ile de Gorée,  
the British Museum, sculpture in Zimbabwe, Cameroonian art, cultural  
symbiosis in Mauritius, the African cinema and so on.
As in past years, the editorial staff have made every effort to improve  
the content of the "News round-up" (yellow pages) with its three

-  86  -
sections, namely "The Convention at work", "General information" on the  
developing countries and brief notes on the "European Community". The  
main events of 1982 covered in this section were the meeting of the ACP  
Council of Ministers in Lesotho, the meeting of the Joint Committee in  
Zimbabwe, the first Sysmin allocations to Zambia and Zaire, the meeting  
of the ACP-EEC Council of Ministers in Gabon and the restructuring of  
the Directorate-General for Development.
Since there were more press briefings and communiqués about the  
activities of the ACP Committee of Ambassadors, it was possible to report 
more fully in the "News round-up" columns on the ACP countries' viewpoints.
For their part, the CID officials made an effort to improve the content -  
and presentation - of the yellow pages reserved for them,which went a  
long way towards making the publication more functional.
The columns dealing with the "Operational summary of EEC-financed  
development schemes" (blue pages) got into full swing with the progressive  
execution of the fifth EDF. Hence,the publication has continued to make  
prospective EDF contracts more easily accessible to those engaged in  
economic activity in both the ACP countries and the EEC.

- 87 -
TITLE VI - FINANCIAL IMPLEMENTATION IN 1982
CHAPTER I Financing
Commitments
1As has already been mentioned, significant progress was made during the  
year in the commitments entered into under the second Lomé Convention,  
which totalled nearly 1 100 million ECU (1 095.3 million) compared with  
697 million ECU in 1981 (+ 57%).
To gain an overall view of all the commitments entered into in the year,  
it is necessary to add to this figure the commitments entered into under  
Lomé I, which are clearly tapering off but still total 100 million ECU  
(compared with 158 million ECU in 1981).
In all, commitments in 1982 totalled nearly 1 200 million ECU (compared  
with 855 million ECU in 1981). In percentage terms, the increase in  
the amount of commitments in 1982 compared with 1981 is practically the  
same as the increase in 1981 compared with 1980 (40%).
Aid administered by the Commission
The sum total of the commitments entered into in the year by the  
Commission from the Lomé II resources which it administers (i.e. from  
the fifth EDF, apart from interest rate subsidies and risk capital,  
which is administered by the EIB) was 914.7 million ECU compared with  
611 million ECU in 1981 (the latter figure an aggregate in respect of  
the fifth and fourth EOFs), i.e. a percentage increase of virtually  
50%. If the comparison is based solely on the fifth EDF, the increase  
from 1981 - the starting year, admittedly - to 1982 is obviously much  
greater still (101.5%).
See Introduction, p. 3.

-  88  -
The resources administered by the Commission consist of grants, special  
loans, Stabex and Sysmin. Following the most recent accessions to the  
Convention (Zimbabwe, Saint Vincent and the Grenadines, and Vanuatu),  
the final a l  locations under the various categories of aid were as follows
million ECU
Grants
(excluding 284 million ECU in risk capital  
and 175 million ECU in interest rate subsidies 2.469
Special loans 518
Stabex 557
Special financing facility in respect of mining  
products (Sysmin) 282
3.826
Financing approved by the Commission in 1982 breaks down as follows:
(i) commitments totalling 573.6 million ECU in the form of grants and
179.2 million ECU in the form of special loans or under the special  
financing facility in respect of mining products (Sysmin). These  
latter two types of financing involve the same highly favourable  
terms: duration of 40 years, grace period of 10 years, interest
rate of 1% reduced further to 0.75% for the least developed  
ACP States.
Since the commitments relating to Sysmin (95 million ECU) cannot be
programmed, the sum committed in 1982 in respect of national and
regional projects and programmes was 476.6 million ECU.

-  89  -
Under Article 110 of the Convention, an optimum rate of commitments  
year by year is worked out with each ACP State concerned. With the  
exception of Chad, Nigeria and Uganda, for which no advance rate of  
commitments has been worked out, it would appear that the average rate  
of commitments in respect of the indicative programmes at 31 December 1982  
was 32.1%.
It will be seen, therefore, that the slight lag in 1981 (2.7% compared  
with the optimum rate) was tending to increase, since the ideal rate  
in the second year should have been 38.6%, and that it reached 6.5%.
The result is better, however, if one considers merely the national  
indicative programmes, in which case the commitment percentage works  
out at 34%. It must also be stressed that this is an average covering  
a remarkable variety of situations: the commitments are almost negligible
in certain countries - fortunately very few - but in certain other  
countries exceed the optimum rate by several percentage points or even  
tens of percentage points. Thus:
(ii) 19.1 million ECU was committed in 1982 for emergency aid under  
Article 137 of the Convention (compared with 22.8 million ECU  
in 1981).
It will be seen that, as in the previous year, the annual ceiling  
of 60 million ECU was not reached.
(iii) 142.8 million ECU was committed for Stabex. As was the case the 
previous year, the transfer requests in respect of Stabex easily  
exceeded the resources available. However, the ACP-EEC Council  
of Ministers decided at its May 1982 meeting in Libreville to  
mobilize 40 million ECU of additional funds, bringing the aggregate  
to 182.8 million ECU.^
See Title IV - Chap. VII.

-  90  -
Aid administered by the EIB
In 1982, financing by the EIB totalled 155.7 million ECU, of which:
119.2 million ECU in the form of loans from its own resources at  
subsidized rates of interest;
36.5 million ECU in the form of risk capital, of which 1.2 million ECU  
under the first Lomé Convention (residue from overall authorizations  
for studies).
Loans from the Bank's own resources
In the course of the year the Bank accorded 14 subsidized loans totalling
119.2 million ECU. The terms of these loans are broadly similar;  
they run for between 11 and 18 years, with a grace period for the repayment  
of the principal of 3 to 5 years and a uniform interest rate of 8%,  
account being taken of the interest rate subsidies from EDF resources  
and the provisions of Article 104(3) of the second Lomé Convention.
Funds drawn from the Bank's own resources were broken down as follows:  
energy (36.9%), global loans to development banks (24.3%) to be spent  
on small-or medium-scale investment schemes, agro-industry (21.2%),  
chemical industries (9.2%) and telecommunications infrastructure (8.4%).
Risk capital
In 1982, 21 contracts were signed for risk capital operations involving  
35.3 million ECU under the second Lomé Convention. Nineteen ACP States  
were concerned (11 in Africa, 3 in the Caribbean and 5 in the Pacific).

- 91 -
During the year very wide use was made of the many different types of risk  
capital operation: conditional loans to the state, either for the latter to
acquire holdings in the capital of companies (e.g. the dairy project in Somalia)  
or of development banks (Uganda Development Bank, Dominica Agricultural,  
Industrial and Development Bank, National Development Bank of Jamaica), or  
for financing feasibility studies (coal in Zimbabwe); direct subordinated loans  
to undertakings (Empresa Püblica de Agua e Electricidade in Cape Verde,
Grenada Electricity Services Limited); acquisition of holdings by the EIB  
on behalf of the Community in development banks (Caisse de Développement de  
Djibouti); conditional or subordinated loans to development banks, which will  
onlend the funds to companies or acquire a holding in their capital  
(Capitol Hotel in Malawi, Société Hôtelière de Sali in Senegal, Mineral Water  
Catchment and Bottling Plant in Dominica), global loans (Banque Nationale  
de Développement Economique du Burundi, Seychelles Development Bank,
Vanuatu Development Bank).
A sectoral breakdown shows that over 55% of the total amount of assistance  
was granted to development banks; the tourism and energy sectors respectively  
absorbed about 13.6% and 13%. The remainder was used to finance operations  
involving shipping (7.4%), agro-industry(8.2%) and pre-investment studies (2.5%).
Disbursements
The very marked increase in commitments in 1982 was not matched by disbursements,  
which were actually slightly down on the previous year. The figures show that  
disbursements totalled 719.7 million ECU in 1982 compared with 721 million ECU  
in 1981. This demonstrates that the famous pipeline from commitment to  
disbursement tends to grow longer since commitments, are themselves increasing.

- 92 -
The Commission has endeavoured, on the basis of concrete evidence, to  
carry out a detailed analysis of the causes of the problems  
encountered in the implementation of financial and technical cooperation  
and, in particular, of the delays observed in the execution of projects.  
The inevitable consequence of such delays is that disbursements slow  
down, as is happening currently. Looking ahead to the meeting of the  
Article 108 Committee, the Community sent a communication to the  
ACP States on 11 March 1983. There would seem no point in repeating  
or summarizing its content, but the conclusion of the communication  
deserves to be quoted in full:
"The implementation of projects financed from EDF resources can clearly  
be delayed. Yet, good development is not only a matter of spending  
quickly but also of realizing viable projects within the funds available.  
This document has given many examples of this tension between dispatch  
and quality. Speed should not be an end in itself.
On the other hand, unnecessary delay is very costly due to the  
inexorable erosion by inflation of the value of the total funds allocation  
avai table.
Further efforts will be needed to improve integration of EDF projects and  
procedures into the ACP States' policy and administrative procedures."
Disbursements made in 1982 by the Commission from EDF resources (except  
for the risk capital administered by the Bank) totalled 596 million ECU,  
of which a little over 309 million ECU from the fifth EDF and nearly  
287 million ECU from the fourth EDF. The total volume of disbursements  
from the fifth EDF since the Convention entered into force is  
518.9 million ECU.
Doc. ACP-EEC 2126/83.

-  93  -
Disbursements by the Bank during the year in the form of loans from its own  
resources plus risk capital operations totalled 123.7 million ECU  
(75.2 million ECU under Lomé I and 48.5 million ECU under Lomé II),  
i.e. virtually no increase on 1981. This situation could be the result of  
reduced commitments in the ACP States in 1982 and the higher proportion of  
global loans in the Bank's operations, for the Bank's disbursements are often  
spread over longer periods in the case of projects financed through development  
banks.

- 94 -
CHAPTER II: Financing agreements - Invitations to tender
Financing agreements
During the year 151 financing agreements were signed with the ACP States  
for a total amount of 706 million ECU, comprising:
(i) 27 agreements involving a sum of 121 million ECU from the fourth EDF;
(ii) 124 agreements involving a sum of 585 million ECU from the fifth EDF  
(including 27 agreements representing a total of 18 million ECU  
for microprojects alone).
Compared with the previous year it will be seen that:
(i) the fourth EDF agreements were down 60% in number and 22% in value;  
(ii) the fifth EDF agreements were up 359% in number and 279% in value.
After 1981, which was a transitional year, 1982 marked a further  
winding-down in the implementation of the fourth EDF and saw the fifth EDF  
projects reach normal operation. The latter accounted for an average  
of 5.8 million ECU per financing agreement, a figure which has remained  
steady since the start-up period (1981). In the case of microprojects,  
the average amount of financing per programme was of the order of  
660 000 ECU.
Invitations to tender
In the year 114 international invitations to tender were issued for the  
ACP States, representing a total of 404.6 million ECU, up 31% in number  
and 81.3% in value compared with 1981.

- 95 -
The statistical breakdown is as follows:
Fourth EDF Fifth EDF
Number Amount (ECU) Number Amount (ECU)
Works 8 40 670 000 15 156 689 000
Supplies 38 73 804 350 52 128 387 000
Studies “ - -- 1 5 
000 000
TOTAL 46 114 474 350 68 290 076 300
With regard to the fourth EDF, although the total number of invitations to  
tender was 33% down on the previous year and overall value 16% down, contrary  
to the trend in 1981 there was a fall in terms of value in the case of works  
(56%) and an increase in the case of supplies (70%). These figures show that,  
at a later stage of the procedure, the wind-down in the implementation of the  
fourth EDF has not been uni form, unlike the case of financing agreements.
With regard to the fifth EDF, the total number of invitations to tender  
increased by 277% and their overall value by 233% compared with 1981. In  
the case of works, this increase amounted to 66% and 117% respectively, the  
relative difference between the two figures being explained by the larger  
scale of operations being set up than in the previous year. In the case of  
supplies, the number of contracts was virtually five times larger and their  
value over seven times greater. It is therefore clear that the fifth EDF,  
as from the second year of implementation, has reached normal operation.
It should also be noted that, for the first time, a major studies contract  
was the subject of an international invitation to tender.
General conditions
In accordance with Article 22 of Protocol No 2 to the first Lomé Convention  
and Article 131 of the second Lomé Convention, the Community transmitted to  
the ACP States its proposals for common rules for works, services and supplies,

-  96  -
respectively in March 1978, July 1978 and March 1979. These texts were the  
subject of counter-proposals from the ACP States. The Community expects to  
begin negotiations on the substance in 1983, and this should enable the  
ACP-EEC Council to take a formal decision on the matter. When this lengthy  
process is completed, the texts adopted will of course be applicable to  
contracts concluded under the second Lomé Convention arrangements.

- 97 -
CHAPTER III:  Award of contracts
Anxious to take account of the points contained in the Libreville Resolution  
on the award of contracts, the Commission has paid special attention to  
the question of the selection of contractors.
An analysis of the results of competitive tendering at 31 December 1982 shows  
that, under both the fourth and the fifth EDFs, the contracts awarded to the  
ACP States took first place in terms of their overall share (30%). This 
tendency was particularly evident in the case of works contracts, where the  
ACP States' share was 45%. This was largely the result of invitations to  
tender by accelerated procedure and a large number of works carried out by  
direct labour. There are a number of advantages of such procedures for  
undertakings and government departments in the ACP States.
With regard in particular to the selection of contractors, it must be  
emphasized that the price preference mechanism in favour of undertakings in  
the ACP States has reinforced the above tendency, this mechanism applying  
fully to both works contracts and supply contracts.
However, price has not been the sole criterion applied to the selection of  
contractors. The preference mechanism is itself proof that contracts are  
not automatically awarded to the lowest bidder. Nevertheless, the Commission  
and the national authorities concerned have, in a number of cases, given  
preference to other criteria such as the terms of execution of works or  
supplies (e.g. shorter periods of performance offered by certain tenderers)  
or the technical value of such works or supplies. This approach is in  
direct response to the wishes expressed by the ACP-EEC Council in the Libreville  
Resolution.

- 98 -
The Commission regrets, however, that in some cases - fortunately not many -  
problems in negotiations with a tenderer have caused the national authorities  
to delay the final choice of contractor for several months. Such difficulties  
also occur in the award of technical cooperation contracts. It is important  
that they be prevented from occurring, especially in view of their impact on  
the cost of the works or supplies.

T A B L E  la - Breakdown, by country and sector, of commitments in 1982 
(5th E D F  + EIB  ordinary Loans)
(million ECU)
Deve lo p m e n t o f  p r o d u c t i o n E conom ic
i n f r a ­
s t r u c t u r eS o c i a l
d e v e l o p ­
m en tT r a d e  
p ro m o t i  o rE m ergency
a i d
Stabex O th e r T o ta lI n d u s t ­
r i a l i z ­
a t i o nSysmin Touri smR u r a l
p ro d u c ­
t i o n
A n tig u a  a n d  B a rb u d a 0,1 0,1
Baham as 0 ,3 0,3
B a rb a d o s 4 ,9 0 ,2 5,1
Belize 0,1 0,1
Benin 3 ,0 6 ,7 0 ,4 0 ,7 10/8
Botswana 19,2 0 ,8 3 ,0 1,1 0 ,2 24,3
Burundi 1 ,3 8 ,3 0 ,3 9 ,9
C am eroon 13,9 13,8 0 ,7 13,5 4 1 ,9
C ape V e rd e 1 ,8 0 ,4 0 ,6 0 ,5 3 ,3
C e n t r a l  A f r i c a n  R ep . 0,1 10,1 18,2 1 ,2 2 9 ,6
Com oros 0,1 0,1 0 ,7 0 ,9
C ongo 1 ,0 0,1 1,1
I v o r y  C o a s t 13,9 4 ,6 12,4 2 7 ,6 58,5
Djibouti 0 ,4 1,1 0,1 1 ,6
D o m in ica 1 ,0 0,1 0,1 0 ,4 1 ,6
E t h i o p i a 12,4 27,2 5 ,0
0,11 ,8 0 ,8 47,2
FijiG abon 3 ,20 ,7
5,51 ,8 0 ,6
0 ,50,5 3 /7
9/2
G am bia 1,7 3 ,3 0,2 5 ,2
G hana 0,1 4 ,0 1,5 0,1 25,6 31,3
G re n a d a 2 ,4 0 ,4 0,1 0,1 3 ,0
G u in e a 7 ,2 0 ,3 4,5 1 2 ,0
G u in e a - B is s a u8 ,6 1,9 0,1 10/6
E q u a t o r i a l  G u in e a1 ,9 0,5 2,2 4 ,6
G uyana2 ,A 8 ,7 11,1
U pper V o lta 5 ,3 4 ,6 9 ,9
^ i c a 20,5 3 ,9 10,0 0 ,6 0 ,4 16,5 5 1 ,9
0 ,2 0 ,2
Lesotho 5,5 2,1 0,1 0,1 0 ,3 8/1
Liberia 0 ,5 0 ,4 0 ,9
Madagascar 5,3 0 ,3 1,1 2 ,7 9 ,4
M alaw i 3 ,0 0 ,4 0 ,3 0 ,5 4 ,2
M ali 2 ,6 14,5 3 ,6 0 ,4 0 ,3 0,5 2 1 ,9
M a u r itiu s 5 ,3 4 ,5 3 ,2 1 3 ,0
P f e u r ita n iaNiger20,5 
7 , A 0 ,3 0 ,3 0 ,320,5
8 ,3
Nigeria 0 ,6 0 ,5 1,1
U ganda 10,0 9 ,9 3 ,9 2 3 ,8
P a p u a  New G u in e a 9 ,3 3,2 0,1 13,8 26/4
R w anda 0 ,8 1 0 ,A 4,4 •  2 ,0 0,5 0,1 18,2
S a i n t  L u c ia 0 ,2 0 ,2 0 ,4
St Vincent &  Grenadines 0 ,6 0 /6
Solom on I s l a n d s 1,6 1 ,8 0 ,6 4 ,0
Samoa .0 ,3 1/7 2/0
SSo Tome a n d  P r i n c i p e 2,1 0 ,8 2 ,9
13,7
1 ,01 ,8 22,8 2,5 A,3  
0,11,1
0 ,220,5 66/ / 
1/3
Sierra Leone 11,6 0 ,3 4,8 0 ,9 17/6
S o m a lia 2 ,6 8 ,0 5 ,6 0 ,7 5,4 0 ,7 23/0
Sudan 1,2 3 8 ,0 0 ,3 3 ,0 0,1 1,2 8,5 52,3
S u rin am eSw azi land1/9
3,21 ,9
3,2
T a n z a n ia 2,5 33,0 5 ,0 12,2 0 ,5 53,2
Chad7/1 1,5
0,18/6
T ogo 2,2 15,6 0,2 18/1
Tonga 0 ,3 0,1 1,4 1 ,8
T r in id a d 'a n d  T o b ag o 9,2
0,1 0,19 ,2
Tuvalu 0 ,2 0/A
Vanuatu 1 ,0 2,3 0 ,2 3 ,5
Zai re 8,7 40,0 0 ,3 0 ,6 0 ,8 50,4
Zam bia 0,5 55,0 12,6 5,2 0 ,3 73/6
Z im babw e 24,8 1,4 0 ,8 0,1 1 ,0 28/1
R e g io n a l a i d 26,0 0 ,8 49,4 34,3 10,3 4 ,4 “ - 2,5 127/7
T O T A L 235,0 95,0 5 ,6 355,2 112,3 117,5 9,5 19,1 142,8 3 ,3 1.095/3

T A B L E  lb -  Breakdown, by country and sector, of commitments at end 1982 
(5th E D F  + EIB ordinary Loans)
(million E C U )
Total
0,1
0,4
6.7
0,1
11,4 i
26.3 |
25.4 |
56.4
4.2
31.3
2.8
4,4
92.1
3.6
4,9
100,9
21.2
38.3
17.0
39.3
3.2
13.4
12.9
0,1
5.2
40.4
13.5
88.0 
0,8
12,0
1.7
21.3 
9,6
42.5
14.6
21,8
43.1
1.8
32.1
78.6
42.4
2.9
3,1
4.0
11.3
3.0
124,2
1.3
20.3
47.0
67.7
2,8
12.5 i
72.2 i
13.2 |
28.1 :
3.4
10.4 
0,5
3.5
59,6
122,8
28,1
164,0
:7 9 2 ,rD e v elo p m en t o f  p r d o u c t i o n E conom ic S o c i a l T ra d e Em ergencyI
f
[ n d u s t - R u ra li n f r a - d e v e lo p ' -  a r o m o tia n a i dStabo O th e r" i a l i z - S y sm ir T ourism ir o d u c -s t r u c t u r e  m en t
a tio n t i o n
A n tig u a  a n d  B arb u d a 0,1
Baham as
B a rb a d o s 4,9 1,30,4
0,3 0,2
B e l i z e 0,1
Benin 0,2 3,0 7,0 0,4 0,7 0,1
Botswana 19/2 0,8 1,5 3,5 1,1 0,2
Burundi 5,3 8,4 0,7 11,0
C am eroon13,9 13,8 13,8 0,4 0,7 13,5 0,3
C ape V e rd e1,8 0,4
18,2
0,30,8 1,0 0,2
C e n t r a l  A f r i c a n  R ep. 
C om oros0,1
0,310,1 0,2
0,90,5
0,22/2
1,1Congo 0/4 0,2 3,7 0,1
I v o r y  C o a s t 13,9 4,7 12,4 12,0 2,3 46,8
Djibouti 2/2 1/1 0,20/1D om nnica 1/0 0,2 0/1 0,2 0,5 2,9
E t h i o p i a 12,5 27,2 58,4 2,0 0^8
Fiji 16,0 0,7 1/8 1,0 0,1 0,3 1/3G abon 32,4 5,5 0,6
G am bia
0,1
2,41,7 3,6 0,1 11/4 0/2G hana
G re n a d a4,6 7,0
0,42,0
0,20,2 i  25/6 
1  0/1 0-1
G u in e a 7,2 0,7 5,0 0,5
G u in e a - B is s a u 9,1 2/2 1/5 0/1
E q u a t o r i a l  G u in e aGuyana 1,910,50/1
2/7 0/1
U pper V o lta 3,7 1 17,0 19^7
J a m a ic a 5,3 0,1 4,8 3,3K enya 30,2 18,3 10,0 1,0 1/1 0/7 26^5 0.2Kiribati0,2 0/1 n 'sLesotho 8,5 0,1 2,5 0/1 0/1 n sLiberia 1,2 0,4 0,1
Madagascar 2,2 13,3 0,6 1,3 3.0M alaw i 3,0 0,4 3,8 0,2 Q,U 1/8M ali 2,6 31,4 4,1 0,4 0/9
M a u r itiu s 6,9 4,5 3,2
M a u r ita n ia 20,5 0,5 0,8 I
Niger 13,5 7,9 19,4 0,5 0,41/1Nigeria
U ganda 10,00,6
14,3 0,10,9
4,20,3
P a p u a  New G u in e a 61,3 3,3 0,20/2
R w anda
S a i n t  L u c ia3,0 24,9
0,2 1,35,3 2,0 ?'i
1/40,1
St Vincent 8  Grenadines
Solom on I s l a n d s 1,6 1,80/2
Sam oa 8,0
S a o  Tome a n d  P r i n c i p e2,22/9
0,8Senegal 28,9 1,8 23,6 2/5 7,0 1/1 0/2Seychelles 
Sierra Leone
S o m a lia
S u d an1/0
2,6
1,20,1 13,1
39,50,3
19,0
0,30,1
5.0
6.1 
3,00,7
0,10,2
16,0
1/71,8
2/6
?1  0
S u rin a m e 0,2 2/6Swazi land 8,93,6
T a n z a n ia
C hadT ogo10,0
0,133,0
7.1
5.25/0
21,617,3
0,5
1,10,1
3,06,8
2/6
0,1 Tonga
T r i n i d a d  a n d  T obago1,0
9,2 0,50,3 o,;
0,71/4 0,6
Tuvalu
Vanuatu0,2 ' 
1,00,1
2,30,1
0,20,1
Zaire
Z am bia14,7 A  
42,4 50,0
5,00,4
12,60,1 1/6
10,9 0,82,8
1,1
1,0Z im babw e 24,81,4 0,8 0,1
R e g io n a l a i d
| T O T A L38,3
472,7 9 5,00,8
5,852,9
429,740,6
197,311,3
235,1
.8,1
18,0 43,6 80, 812,0 
14,1 1

TABLE Ha - Breakdown of commitments in 1982 by sector and method of financing
( m i l l i o n  ECU)
I. D E V E L O P M E N T  O F  P R O D U C T IO N , ,
1. Industrialization 
■General
Extractive industries 
Chemical industries 
Manufacturing industries Agricultural and food industries 
Projects with energy bigs, Infrastructure linked with 
industrial projects
2. Tourism
3. Rural production 
General 
Plantations
H y d r o - a g r i c u l t u r a l  sc h e m e s  
AgricultureCredit arid marketing cooperatives
S t o c k - f a r m in gFisheries
Fçrests . ,Microprojects and other 
Integrated projects with 
agriculture bias
II. E C O N O M IC  IN F R A S T R U C T U R E
4. Transport and carmunications 
General
Rogds and bridges RaiIwaysPorts and inland waterways 
A i rportsTe lecom muni cations
III. S O C IA L  D E V E L O P M E N T
5. Education and training 
Education infrastructure 
Specific projects, vocational 
training 8 provision of instructors Study and training grants
6. Health 
Infrastructure
Health campaigns and technical 
cooperation
7. Water engineering, housing and 
urban infrastructure *  *  *  I V .  V .  V I .
bçneralVillage water supplyUrban watçr supply Urban drainage 
T ow n planning
IV. T R A D E  P R O M O T IO N
V . E M E R G E N C Y  A ID
VI. S T A B E X  
VU. O T H E R
Information, documentation, 
seminars, planning, general 
technical cooperation _________G r
a n ts S p e c i a l  lo a n s  ■ 
»
j S y sm inS ta b e x R is k
c a p i t a lEIB
o r d i n a r y  
I n a n sTotal X
6 9 0 ,8 63,1
3 3 0 ,0 30,1
2 1 ,8 2 0 ,4 2 9 ,0 7 1 ,2 6 ,5
5,1 i 9 5 ,0 100,1 9,1
2 ,9 1 1 ,0 1 3 ,9 1 ,3
7 ,2 2 ,5  j 9 ,7 0 ,9
6 ,08 /3  ! 2 ,9 2 5 ,2 4 0 ,4 3 ,7
36,1 4 ,6 4 4 ,0 8 4 ,7 7 ,7
1 0 ,0  ! 1 0 ,0 0 ,9
0 ,8 4 ,8 5 ,6 0 ,5
355,2 3 2 ,5
2 9 ,8 3 1 ,5  ! 6 1 ,3 5 ,6
8 1 ,9 4 ,2  j 86,1 7 ,9
15,4 15,4 1 ,4
9 8 ,3 9 8 ,3 9 ,0
0 ,3 0 ,3
2 9 ,8 2 ,0  ! 3 1 ,8 2 ,9
8 ,3 0 /5  ! 8 ,8 0 ,8
2 ,3 12 ,3 0 ,2
1 4 ,8 11 4 ,8 1 ,4
3 1 ,4 4 ,7  · 36,1 3 ,3
11111112,3 1 0 ,3
0 ,21111 0 ,2
55,5 1 6 ,3  ! 7 1 ,8 6 ,6
0 ,2 0 /3  | 0 ,5
1 ,6 12 ,6 4 ,2 0 ,4
10,1 10,1 0 ,9
9 ,6 5 ,9  ! 1 0 ,0 25,5 2 ,4
1»1 '117,5 1 0 ,7
11165,4 6 ,0
0 ,5 110 ,5
5,311 5 ,3 0 ,5
5 9 ,6 1115 9 ,6 5 ,5
11111 1 ,0 1 ,0
10,511110,5 1 ,0
0 ,511110 ,5
111141,1 3,7
5,411 5 ,4 0 ,5
1 8 ,0 1 1 8 ,0 1 ,6
11,5 1 11,5 1 ,0
1 ,9 1 1 ,9 0 ,2
4,3 1t4 ,3 0 ,4
9,51119 ,5 0 ,9
19,111119,1 1 ,7
1»11142,8 142,8 1 3 ,0
3 ,31111113 ,3 0 ,3
6 1 8 ,8
1 _______________8 4 ,2  j 9 5 ,0  
11 4 2 ,8 3 5 ,3 119,2 1.095,3 100 X

TABLE lib - Breakdown of commitments at end 1982 by sector and method of financing
( m i l l i o n  ECU)
I .  DEVELOPMENT OF PRODUCTION
1 . I n d u s t r i a l i z a t i o n
G e n e r a l
E x t r a c t i v e  i n d u s t r i e s  
C h e m ic a l i n d u s t r i e s  
M a n u f a c tu r in g  i n d u s t r i e s  
A g r i c u l t u r a l  a n d  fo o d  i n d u s t r i e s  
P r o j e c t s  w ith  e n e r g y  b i a s  
I n f r a s t r u c t u r e  l i n k e d  w ith  
i n d u s t r i a l  p r o j e c t s
2 . T o u rism
3 .  R u r a l p r o d u c t i o n
G e n e r a lPlantations
H y d r o - a g r i c u l t u r a l  sc h e m e s 
A g r i c u l t u r e
C r e d i t  a n d  m a r k e tin g  c o o p e r a t i v e s
S to c k - f a r m in g
F i s h e r i e s
F r jr e s ts
M i c r o p r o j e c t s  a n d  o t h e r  
I n t e g r a t e d  p r p j e c t s  w ith  
a g r i c u l t u r e  b i a s
I I .  ECONOMIC INFRASTRUCTURE
4 .  T r a n s p o r t a n d  c o m m u n ic a tio n s  
G e n e r a l
R o^ds a n d  b r i d g e s  
R a iIw a y s
P o r t s  a n d  i n l a n d  w a te rw a y s  
A i r p o r t s
T e le c o m m u n ic a tio n s
I I I .  SOCIAL DEVELOPMENT
5 .  E d u c a tio n  a n d  t r a i n i n g
E d u c a tio n  i n f r a s t r u c t u r e  
S p e c i f i c  p r o j e c t s ,  v o c a t i o n a l  
t r a i n i n g  & p r o v i s i o n  o f  i n s t r u c t o r  
S tu d y  a n d  t r a i n i n g  g r a n t s
6 .  H e a lth  
I n f r a s t r u c t u r e
H e a lth  cam paigns a n d  t e c h n i c a l  
c o o p e r a t i o n
7 .  W a te r e n g i n e e r i n g ,  h o u s in g  a n d  
u r b a n  i n f r a s t r u c t u r e
V i l l a g e  w a te r  s u p p ly  
U rb a n  w a te r  s u p p ly  
U rb a n  d r a i n a g e  
Town p la n n in g
IV . TRADE PROMOTION
V. EMERGENCY-AID
V I. STABEX
V I I . OTHER
i n f o r m a t i o n ,  d o c u m e n ta t io n , 
s e m i n a r s ,  p l a n n i n a ,  g e n e r a l  
t e c h n i c a l  c o o p e r a t i o nG rants Special loans R isk E IB
1!S y sm inStabexcapital - ordinaryloansf Total %
11
|1 .0 0 3 ,2 5 6 ,0
1 5 6 7 ,7 3 1 ,7
3 1 ,5 1 3 5 ,8 4 0 ,5 1 0 7 ,8 6,01 1 ,9 , 9 5 ,0 1 2 ,0 6 5 ,0 1 8 3 ,9 1 0 ,33,0 I 3,9 1 1 ,0 1 7 ,9 1 ,01 1 ,7 2,5  , 4,0 1 6 ,5 3 4 ,7 1,96,9 6,3 , 3,6 2 5 ,2 4 2 ,0 2 ,35 9 ,5 1 1 6 ,9 9 5 ,0 1 7 1 ,4 9,61 0 ,0  II1 0 ,0 0,6
1,0II 4,8 5,8 0,3
I 4 2 9 ,7 2 4 ,0
3 0 ,8 3 1 ,5 ' 6 2 ,3 3 ,58 2 ,1 4,2  1 8 6 ,3 4,82 3 ,6 2 3 ,6 1 ,3
134,6 1 3 4 ,6 7,50,3 0,33 6 ,5 2,0 1 3 8 ,5 2 ,28,7 0,5  1 9 ,2 0 ,52,9 2,9 0 ,22 2 ,0 2 2 ,0 1 ,24 5 ,3 5 0 ,0 2,8
1 9 7 ,3 1 1 ,0
1 9 7 ,3 1 1 ,0
0,4 0 ,41 1 9 ,8 1 6 ,3 1 3 6 ,1 7,64,0 0,8 | 1 0 ,0 1 4 ,8 0,83 ,2 2,6 4,4 1 0 ,2 0,61 0 ,1 I 1 0 ,1 0,69,8 5,9 I 1 0 ,0 2 5 ,7 1 ,4
I 2 3 5 ,1 1 3 ,1
I 8 7 ,6 4,9
0 ,5I
I 0 ,5
5,8 I 5 ,8 0 ,3
8 1 ,3 t 8 1 ,3 4,6
I. | 1 8 ,6 1 ,01 7 ,8  I*  i 1 7 ,8 1,00,8
I0,8
I 1 2 8 ,9 7,25 3 ,9 5,0  1 5 8 ,9 3,33 2 ,8 8,0 ' 4 0 ,8 2,31 7 ,1 1 7 ,1 1,07,8 0,44/3 1 4 ,3 0,2
1 8 ,0 1
11 8 ,0 1 ,0
4 3 ,6 1 4 3 ,6 2,4
1 2 8 0 ,8 2 8 0 ,8 1 5 ,7
1 4 ,11
i
J1 4 ,1 0,8
9 5 7 ,4 9 7 ,7  | 9 5 ,0  | 2 8 0 ,8 8 3 ,6 2 7 7 ,6 1 .7 9 2 ,1 1 0 0  X

TABLE Ilia: Financinq situation in 1982 by method of financinq and by administrative body
(million ECU)
Total 
(Art. 95volume 
of theCommicments in 1982
Convention) Aid administered  
by the CommissionAid administered  
by the EIBTota l
Amount '  %1Amount i  %jI
Amount j  %-------- r
Am
ount J %
EDF Resources4.63787,1111
914,7 I 100-------- r111
j34
,0'  1 1 1 1
976*1 j 89,1
Grants2.99656,3 592,7 i 64,8 26,1 j14,4 618,8 ! 56,5
of which: interest rate subsidies (175)(3,3)11 (26,1) i(14,4) (26,1) (2,4)
emergency aid (202)(3,8) (19,1) ! (2,1)1(19,1) Ì (1,7)
Special loans5189,7 84,2 i 9,2111184,2 .  j7,7
Risk capital2845,3111135,3 j19,6 35,3 ! 13,2
Stabex55710,5 142,8 i 115,611142,8 ! 113,0
Special financing facility - Sysmin 2825,31
95,0 Ì 1 110,411a
111
95,0 j 18,7
EIB Resources 68512,91111111
n i i i  j 
166,01
H I * !  j 
110,9 ·
Loans from EIB resources 68512,9t11111
119,2 II66,01
119,2 !I10,9
Total 5.3221001
914,7 Ì 1 1100.  I
180,6 i 1 1100I
1.095,3 Î 1 1100

TABLE Illb: Financing situatiQn  at end 1982 by method of financing and by administrative body
(million ECU)
EPF Resources  
Grants
of which: interest rate subsidies
exceptional aid
Special loans
Risk capital
Stabex
Special financing facility - Sysmin
EIB Resources
Loans from EIB resources
TotalTotalvolume Commitments at end 1982
Total lArt. vs ot tne 
Convention) Aid administered  
by the CommissionAid administered  
by the EIB
--------------------1 ---------------
Amount 1  %11
Amount · %  IAmount |  %Amount %
4.637~i---------------1111
i  87,1 1111111
1
.368,5 ! 100 --- !j
111
14
6,0 | 34,5 
|1.514,5 84,5
2.996 i 56,3 895,0 | 65,4 62,4 ! 14,7 957,4 53,4
(175)1 « , 3 * ,11 (62,4) | (14,7) |(62,4) (3,5)
(202)i  (3 8) 1(43,6) ! (3,2) 111f(43,6) (2,4)
518 ! 9,7 197,7 ! 7,1 111197,7 5,4
284 !  5,3 111111
83,6 ! 19,8 83,6 4,7
5571
! 10,51I280,8 | 20,5 1  1111
1280,8 15,7
282 Ì  5,3 1  11
95,0 j 7,0 1  111111195,0 5,3
6851
!  12,9 11111
277,6 ! 65,5 277,6 15*5
6851
! 12,9i1111277,6 | 65,5
___________ 1________27
7,6 15,5
—
5.322H------------
j 
100 1  1- - - - - - - - - - - - - - - - - - - - 1
1.
368,5 s 100 11________ _1
42
3,6 j 100 11.792,1 100

TABLE IV-1-a: Sectoral  summary  for 1982, showing percentage breakdown,  method of financing  and administrative  body 
(programmable aid  and Sysmin) 
(million ECU) 
Development  of production Economi c 
^infra­Social 
devel­Trade 
promot­ Other Total 
Industrializat­
ion 
rSysmin Touri sm Rural 
production Total structure opment ion 
(1) (2) (3) (4) (5) <1 to 5) 
1. Aid administered  by the 
Commi ssion 
Programmable  grants 
Special loans 55,4  
18,8 95,0 0,8 312,3 
42,9 368,5 
156,7 74,8 
22,5 117,5 9,5 3,3 573,6 
179,2 
Total 
Breakdown  in % 74,2 95,0 
9,9 12,6 0,8 
0,1 355,2 
47,2 525,2 
69,8 97,3 
12,9 117,5 
15,6 9,5 
1,3 3,3 
0,4 752,8 
100 % 
2. Aid administered  by the EIB 
Loans from  EIB resources 
Interest rate subsidies 
Risk capital 109,2  
23,7  
27,9  4,8 109,2 
23,7 
32,7 10,0 
2,4 
2,6 119,2 
26,1 
35,3 
Total 
Breakdown  in % 160,8  
89,0  4,8 
2,7 165,6 
91,7 15,0 
8,3 180,6 
100 X 
3. Grand  total 235,0 95,0 5,6 355,2 690,8 112,3 117,5 9,5 3,3 933,4 
Breakdown  in % 25,2 10,2 0,6 38,0 74,0 12,0 12,6 1,0 0,4 100 X 

TABLE IV-1-b:  Sectoral  summary  at end 1982,  showing percentage breakdown,  method of financing  and administrative  body  
(programmable aid  and Sysmin) 
(million ECU) 
Development  of production  E conomi c 
nf ra-
tructure Social 
devel­
opment Trade 
Other Total 
Industrializat­
ion 
Sysmin Touri sm Rural 
production Total [ conomi c 
nf ra-
tructure Social 
devel­
opment promotior Other Total 
(1) (2) (3) (4) (5) (1 to 5) 
1. Aid administered  by the 
Commi ssion 
Programmable  grants 69,8 i 1,0 386,8 457,6 139,6 222,1 18,0 14,1 851,4 
Special  loans 18,8 i 95,0 42,9 156,7 23,0 13,0 192,7 
Total 88,6 95,0 1,0 429,7 614,3 162,6 235,1 18,0 14,1 1.044,1 
Breakdown  in % 8,5 9,1 0,1 41,2 58,9 15,6 22,5 1,7 1,3 100 X 
2. Aid administered  by the EIB 
Loans from  EIB resources 253,2 253,2 24,4 277,6 
Interest rate subsidies 54,7  54,7 7,7 62,4 
Risk capital 76,2 4,8 81,0 2,6 83,6 
Total 384,1 4,8 388,9 34,7 423,6 
Breakdown  in % 90,7  1,1 91,8 8,2 100 X 
3. Grand  total 472,7 95,0 5,8 429,7 1.003,2 197,3 235,1 18,0 14,1 1.467,7 
Breakdown  in % 32,2 6,5 0,4 29,3 68,4 13,4 16,0 1,2 1,0 100 X 

TABLE IV-2-a:  Sectoral  summary  for 1982, showing  percentage  breakdown,, method  of financing  and administrative  body 
(programmable  and non-programmable  aid) 
(million  ECU) 
Projects  and 
programmes Emergency  aid Stabex Total 
(1 to 5) (6) (7) (1 to 7) 
1. Aid  administered  by the 
Commi ssion 
Programmable  grants 573,6 573,6 
Special  loans 179,2 179,2 
Emergency  aid 19,1 19,1 
Stabex 142,8 142,8 
Total 752,8 19,1 142,8 914,7 
Breakdown  of total in % 82,3 2,1 15,6 100 X 
2. Aid  administered  by the EIB 
Loans from  EIB resources 119,2 119,2 
Interest  rate subsidies 26,1 26,1 
Risk capital 35,3 35,3 
Total 180,6 180,6 
3. Grand  total 933,4 19,1 142,8 1.095,3 
Breakdown  of total in % 85,3 1,7 13,0 100 X 

Projects and Emergency aid Stabex Total 
programmes Emergency aid 
(1 to 5) (6) (7) (1 to 7) 
1. Aid administered  by the 
Commi ssion 
Programmable  grants 851,4 851,4 
Special  loans 192,7 192,7 
Emergency aid 43,6 43,6 
Stabex 280,8 280,8 
Total 1.044,1 43,6 280,8 1.368,5 
Breakdown  of total in % 76,3 3,2 20,5 100 X 
2. Aid  administered  by the EIB 
Loans from EIB resources 277,6 277,6 
Interest  rate subsidies 62,4 62,4 
Risk capital 83,6 83,6 
Total 423,6 423,6 
3. Grand  total 1.467,7 43,6 280,8 1.792,1 
Breakdown  of total in % 81,9 2,4 14,7 100 X TABLE IV-2-b Sectoral  summary  at end 1982 showing percentage  breakdown, method  of financing  and administrative  hnriv 
(million ECU) 

TABLE v«  Situation  of commitments  arid payments  at end 1982 
EOF resources 
(million  ECO) 
Administered  by Coiaission 
. Com!  twnts Administered  by 
EIB Commitments Total 
EOF 
COBBIt-
mants EOF 
payments Payments 
as % 
of 
COBUll i-
ments Projects  am 
irogranies 
special. 
Teans and 
grants) Sysmin 
(special 
1oans) Stabex Emergency 
aid total Risk 
capital, Interest 
rate 
sub­
sidies Total 
EOF 
COBBIt-
mants EOF 
payments Payments 
as % 
of 
COBUll i-
ments 
(1) (2) (3) (4> <5> 
1 - 4 (6) (7) (8>> 
5*6*7 (9) (10) 
9/8 
Antigua and Barbuda 0,1 0,1 0,1 Bananas 0,3 0,3 0,3 
Barbados 0,2 0,2 0,9 1,1 0,1 9,1 
Belize 0,1 0,1 0,1 
Benin' 9,7 0,7 0,4 10,8 10,8 0,6 5,5 
Botswana; Burundi 5,2 5,2 4,1 9,3 4,3 46,2 Botswana; Burundi 8,6 8,6 1,3 9,9 2,3 23,2 
Cameroon 14,8 13,5 28,3 2,9 31,2 16,6 53,2 
Cape Verde 1,0 0,5 1,5 1,8 3,3 1,1 33,3 
Central African Rep. 28,4 1,2 29,6 29,6 1,2 4,0 
Comoros 0,9 0,9 0,9 0,6 66,6 
Congo 
Ivory Coast 1,1 1,1 1,1 0,2 18,2 Congo 
Ivory Coast 4,6 27,6 32,2 4,7 36,9 33,1 89,7 
Djibouti 1,2 1,2 0,4 1,6 1/4 87,5 
Doainica 0,2 0,4 0,6 1,0 1,6 0,6 37,5 
Ethiopia 44,1 0,8 1,8 46,7 0,5 47,2 2,2 4,7 
Fill 1,4 0,5 1,9 1,8 3,7 1/1 29,7 
Gabon 9,2 9,2 9,2 0,6 6,5 
Gambia 1/9 3,3 5,2 5,2 0,8 15,4 
Ghana 5,6 25,6 0,1 31,3 31,3 26,0 83,1 
Grenada 0,5 0,1 0,6 2,4 3,0 0,2 6,7 
Guinea 12,0 12,0 12,0 1,2 10,0 
Guinea-Bi  ssau 10,6 10,6 10,6 0,7 6,6 
Equatorial Guinea 
Guyana 4,6 4,6 4,6 1,3 28,3 
Upper Volta 11,1 11,1 11,1 2,7 24,3 
Janaica 4,» 4,9 5,0 9,9 0,2 2,0 
Kenya 14,5 16,5 0,4 31,4 3,5 34,9 21.9 62,7 
Kiribati 0,2 0,2 0,2 
Lesotho 7,7 0,3 0,1 8,1 8,1 1,6 19,7 
Liberia 0,9 
1,1 0,9 0,9 0,7 77,7 
Madagascar 5,6 2,7 1,1 9,4 9,4 6,2 65,9 
Malawi 0,4 0,5 0,3 1,2 3,0 4,2 1,2 28,6 
Hall 21,1 0,5 0,3 21,9 21,9 8,2 37,4 
Mauritius 7,7 7,7 0,5 0,8 9,0 0,8 8,9 
Mauritania 20,5 20,5 20,5 5,7 27,8 
Niger 8,0 0,3 8,3 8,3 3,1 37,3 
Nigeria 1,1 1,1 1,1 0,1 9,1 
Uganda 13,8 13,8 10,0 23,8 3,2 13,4 
Papua  New Guinea 3,3 13,8 17,1 1,4 18,5 19,2 103,8 
Rwanda 15,7 0,5 2,0 18,2 18,2 6,9 37,9 
Saint Lucia 0,4 0,4 0,4 1,2 300,0 
St,Vincent and Grenadlnes 0,6 0,6 0,6 1,1 183,3 
Solomon Islands 3,' 0,6 4,0 4,0 0,6 15,0 
Saaoa 1,7 1,7 0,3 2,0 1,8 90,0 
Sao Toae and Princip* 2,1 0,8 2,9 2,9 0,9 31,0 
Senegal 
Seychelles 
Sierra Leone 30,6 
0,1 
16,7 20,5 
0,9 0,2 51,1 
0,3 
17,6 1,9 
1,0 2,7 55,7 
1,3 
17,6 24,7 
0,5 
1,3 44,3 
38,5 
7,4 
Sosalla i;,3 0,7 5,4 20,4 2,6 23,0 17,2 74,8 
Sudan 42,6 8,5 1,2 52,3 52,3 21,7 41,5 
Surinaae 
Swaziland 1,9 
3,2 ' 1,9 
3,2 1,9 
3,2 0,2 10,5 
Tanzania 52,7 0,5 53,2 53,2 11,2 21,0 
Chad 7,1 1,5 8,6 8,6 2,5 29,1 
Togo 
Tonga 18,1 18,1 18,1 1,3 7,2 Togo 
Tonga 0,1 1,4 1,5 0,3 1,8 2,2 122,2 
Trinidad  and Tobago 
0,1 1/2 1,2 0,2 16,7 
Tuvalu 0,2 0,1 0,3 0,1 0,4 0,2 50,0 
Vanuatu 2,5 2,5 1,0 3,5 
Zaire 9,4 40,0 0,8 50,4 50,4 3,7 7,3 
Zaabla 
Ziababwe 18,3 55,0 0,3 73,6 73,6 32,1 43,6 Zaabla 
Ziababwe 2,8 1,0 3,8 0,4 3,9 8,1 1,3 16,0 
Regional  aid 127,7 127,7 127,7 24,3 19,0 
Total 657,8  · 95,0 142,8 19,1 914,7 35,3 26,1 976,1 328,1 33,6 

TABLE vb  Situation  of comments and paynents  at end 1982 
EDF resources 
(•11 Hon ECU) 
Administered  by Coailssion 
CORRItaents Adnlnlstered  by Ell 
Coniiitients ) 
Total EOF 
payments Payments 
as i of 
CORRI  t-
Rents Projects an 
prograaaes 
(•pedal 
leans and 
.grants) < Sysain 
(special 
loans) Stabe Eaer-
« gency 
aid Total Risk 
capital Interesl 
' rate 
subsi­
dies EDF 
coaalt-
•ents EOF 
payments Payments 
as i of 
CORRI  t-
Rents 
(D (2> (3) (4) (5) 
1 1 4 (6) (7) (8) • 
5+6+7 (9) (10) « 
9/8 
Antigua and Barbuda 0,1 0,1 0,1 
Bahaias 0,4 0,4 0,4 
Barbados 1,8 1,8 0,9 2,7 1,1 40,7 
Belize 0,1 0,1 0,1 
Benin 10,3 0,7 0,4 11,4 11,4 0,6 5,3 
Botswana 7,2 7,2 4,1 11,3 4,3 38,0 
Burundi 9,1 11,0 20,1 5,3 25,4 13,4 52,8 
Caaeroon 15,5 13,5 29,0 6,7 35,7 20,4 57,1 
Cape Verde 1,2 0,2 1,0 2,4 1,8 4,2 1,3 30,9 
Central African Rep. 28,6 2,2 0,5 31,3 31,3 2,7 8,6 
CoRoros 1,3 1,1 0,2 2,6 0,2 2,8 1,7 60,7 
Congo, 4,4 4,4 4,4 0,3 6,8 
Ivory  Coast Djibouti 19,0 
1,3 46,8 
0,1 65,8 
1,4 2,2 4,7 70,5 
3,6 52,3 
1,8 74,2 
50,0 
Qonlnica 
Ethiopia 0,5 2,9 0,5 3,9 1,0 4,9 3,5 71,4 Qonlnica 
Ethiopia 97,6 0,8 2,0 100,4 0,5 100,9 2,4 2,4 
Fiji 1,8 1,3 0,3 3,4 1,8 4,0 9,2 6,0 65,2 
Gabon 9,3 9,3 7,2 16,5 7,8 47,3 
Gambia 5,5 11,4 0,1 17,0 17,0 9,0 52,9 
Ghana 13,7 25,6 0,2 39,5 39,5 26,0 65,8 
Grenada 0,7 0,1 0,8 2,4 3,2 0,3 9,4 
Guinea 12,9 0,5 13,4 13,4 1,4 10,4 
Guinea-Bissau 11,4 1,5 12,9 12,9 2,3 17,8 
Equatorial Guinea 0,1 0,1 0,1 
Guyana 5,2 5,2 5,2 1,3 25,0 
Upper Volta 40,4 40,4 40,4 3,7 9,2 
Juralca 5,2 3,3 8,5 5,0 13,5 3,4 25,2 
Kenya 30,7 26,5 0,7 57,9 1,5 5,1 64,5 34,2 53,0 
Kiribati 0,3 0,5 0,8 0,8 0,5 62,5 
Lesotho 8,4 0,5 0,1 9,0 3,0 12,0 1,9 15,8 
Liberia 1,0 1,0 0,7 1,7 0,7 41,2 
Madagascar 13,9 3,9 1,3 19,1 2,2 21,3 9,2 43,2 
Malawi 4,4 1,8 0,4 6,6 3,0 9,6 2,5 26,0 
Hall 38,5 3,1 0,9 42,5 42,5 11,3 26,6 
Hauriti  us 9,3 9; 3 0,5 0,8 10,6 0,8 7,5 
Mauritani  a 21,8 21,8 21,8 5,7 26,1 
Niger 28,4 1,1 29,5 3,6 33,1 6,7 20,2 
Nigeria 1,5 0,3 1,8 1,8 0,1 5,5 
Uganda 18,8 3,3 22,1 10,0 32,1 3,5 10,9 
Papua  New Guinea 3,5 13,8 17,3 12,0 1,4 30,7 19,2 62,5 
Rwanda 33,3 7,1 2,0 42,4 42,4 13,5 31,8 
Saint Lucia 1,5 1,4 2,9 2,9 2,6 89,6 
Saint  Vincent  i 6renadines 2.9 0,2 3,1 3,1 1,1 35,5 
Soloion  Islands 3,4 0,6 4,0 4,0 0,6 15,0 
Samoa 5,1 2,9 8,0 3,3 11,3 3,0 26,5 
Sao Tone I Principe 2,2 0,8 3,0 3,0 1,0 33,3 
Senegal 
Seychelles 34,1 
0,1 59,1 0,2 
0,2 93,4 
0,3 4,2 
1,0 5,6 103,2 
1,3 66,5 
0,5 64,t 
38,5 
Sierra  Leone 18,5 1,8 20,3 20,3 2,3 11,3 
Somalia 25,8 2,6 16,0 44,* 2,6 47,0 26,3 56,0 
Sudan 44,1 21,9 1,7 67,7 67,7 36,0 53,2 
Surinane 2,8 2,8 2,8 0,2 7,1 Swaziland 3,6' 3,6 1,9 5,5 1,9 34,5 
Tanzania 57,8 6,8 0,1 64,7 7,5 72,2 17,6 24,4 
Chad 7,6 2,6 3,0 13,2 13,2 5,5 41,7 
Togo 22,2 22,2 1,5 23,7 2,8 11,8 
Tonga 0,1 0,6 1,4 2,1 1,3 3,4 2,8 | 82,3 
Trinidad  and Tobago 1,2 1,2 1,2 2,4 0,2 8,3 
Tuvalu 0,3 0,1 0,4 0,1 0,5 0,3 60,0 
Vanuatu 2,5 2,5 1,0 3,5 Zaire 
Zaabia 10,8 40,0 2,8 53,6 6,0 59,6 5,2 8,7 Zaire 
Zaabia 25,2 55,0 1,1 81,3 1,5 8,5 91,3 34,S 37,8 
Zimbabwe 2,8 1,0 3,8 0,4 3,9 8,1 1,3 16,0 
Regional  aid 156,1 156,1 1,6 1,3 159,0 29,9 18,8 
Tot»l 949,1 95,0 280,8 43,6 1 .368,5 83,6 62,4 .514,5 518,9 34,3 

Table VI 
Ordinary  loans and risk capital  committed  by the EIB in ACP  countries  in 1982 (Lome II) 
' (million  ECU) 
- Breakdown by  sector -
(million ECU) 
Sector Loans from own 
resources Risk capital  from EDF 
resources Total 
Sector 
No Amount Z No Amount Z No Amount Z 
Industrialization 
1. Agro-industrial  complexes 4 25,2 21,2 2 2,9 8,2 6 28,1 18 »2 
2. Chemical  industries 1 11,0 9,2 - - - 1 11,0 ^ 7,1 
3. Energy 3 44,0 36,9 3 4,6 13,0 6 48,6 31,4 
4. General  (including lines  of credit) 5 29,0 24,3 10 20,4 57,8 15 49,4 32,0 
Total 13 109,2 91,6 15 27,9 79,0 28 137,1 88,7 
Tourism _ 2 4,8 13,6 2 4,8 3.1 
Economic  infrastructure 
Transport - - - 4 2,6 7,4 4 2,6 1,7 
Telecommunications 1 10,0 8,4 - - - 1 10,0 6,5 
Grand total 14 119,2 100,0 21 35,3 100,0 35 154 ,5 100,0 

Table  VII 
FINANCING  IN AFRICAN, CARIBBEAN  AND PACIFIC (ACP) COUNTRIES  IN 1982 
UNDER LOME II 
Breakdown  by Location  of project ' (mi LLion ECU) 
Loans from 
own resources Risk capital 
• from EDF 
iesources Total 
No Amount Z No Amount Z No Amount Z 
AFRICA 11 99,3 83,3 11 23,3 66,1 22 122,6 79,4 
n ---- ----»-—» •••i mm « 
West Africa 4 32,6 27,3 2 3,6 10,2 6 36,2 23,5 
Cape Verde -- -1 1,8 5,1 1 1,8 1,2 
Ivory Coast 3 21,6 18,1 - -3 21,6 14,0 
Senegal 1 11,0 9,2 1 1,8 5,1 2 12,8 8,3 
Central and equatorial  Africa 2 10,7 9,0 1 1,3 3,7 3 12,0 7,7 
Burundi -- -1 1,3 3,7 1.3 0,8 
Cameroon · 2 10,7 9,0 -- -2 10,7 6,9 
East and southern  Africa 5 56,0 47,0 9 18,4 52,2 14 74,4 48,2 
Botswana 1 15,0 12,6 -- -1 15,0 9,7 
Djibouti --' - I 0,4 1,1 1 0,4 0,3 
Ethiopia - - -1 0.5 1,4 1 0,5 0,3 
Kenya 2 17,0 14,3 -- -2 17,0 11,0 
Malawi -- -1 3,0 8,6 1 3,0 2,0 
Mauritius 1 4,0 3,4 1 0,5 1,4 2 4,5 2,9 
Uganda -- -2 10,0 28,4 2 10,0 6,5 
Seychelles - -1 1,0 2,8 1 1,0 0.6 SomaIia ---1 2.6 7,4 1 2,6 1,7 Zimbabwe 1 20,0 16,7 1 0,4 1,1 2 20,4 13,2 
CARIBBEAN 2 12,0 10,1 4 8,4 23,8 6 20,4 13,2 « • ••• m mmmm mmmm m <»• •ai-lai 
Barbados 1 4,0 3,4 -- -1 4,0 2,6 
Dominica -- -2 1.0 2,8 2 1,0 0,6 
Grenada - - -1 2,4 6,8 1 2,4 1,6 
Jamaica -- -1 5,0 14,2 1 5,0 3,3 
Trinidad 8 Tobago I 8,0 6,7 --1 8,0 5,2 
PACIFIC 1 7,9 6,6 5 3,6 10,1 6 11.5 7,4 - mm mm m •-»- _ •••• •nam 
Fiji -- -1 1,8 5,1 1 1,8 1,2 Papua New Guinea 1 7,9 6,6 --1 7,9 5.1 Samoa - -1 0,3 0,9 1 0,3 0,2 
Tonga - - -1 0,3 0,9 1 0.3 0.2 Tuvalu — — -1 0,1 0,4 1 0.1 vr 
0.1 Vanuatu -1 1,0 2,8 1 1.0 0,6 
TOTAL 14 119,2 100,0 21 35,3 100,0 35 154,5 100,0 

Table Vili 
GEOGRAPHICAL  BREAKDOWN OF £IB  .FINANCING  IN ACP  COUNTRIES  IN 1982 
BY PER CAPITA INCOME 
LOME II 
(million ECU) 
COUNTRY Loans from Risk capital Total 
(per capita  GDP - US$ 1980) own resources operations Total 
(per capita  GDP - US$ 1980) 
Amount X Amount Z Amount 
Per capita  GDP ^ US$ 370 - -19,2 54,4 19,2 
Burundi 1,3 3,7 1,3 
Cape Verde - - 1,8 5,1 1,8 
- Ethiopia. — - 0,5 1,4 0,5 
Malawi - - 3,0 8,5 3,0 
Uganda - -10,0 28,3 10,0 
Somalia - - 2,6 7,4 2,6 
US$ 370< per cap. GDP^US$1,000 81,6 68,4 7,8 22,1 89,4 
Botswana 15,0 12,6 _ 15,0 
Cameroon 10,7 9.0 - -10,7 
Djibouti - - 0,4 1.1 0,4 
Dominica - -LP— 2,8 1,0 
Grenada - - 2,4 6,8 2,4 
Kenya' 17,0 14,3 -17,0 
Papua New Guinea : 7,9 6,6 - - 7,9 
Samoa --0,3 0,9 0,3 
Senegal 11,0 9,2 1,8 5,1 12,8 
Tonga _ 0,3 0,9 0,3 
Tuvalu _ — 0,2 0,6 0,2 
Vanuatu _ — 1 ,0 2,8 1,0 
Zimbabwe 20,0 16,7 0,4 1,1 20,4 
Per cap.>GDP US$1,000 37,6 31,6 8,3 23,5 45,9 
Barbados 4,0 3,4 -4,0 
Ivory Coast 21,6 18,1 - -21,6 
Fiji _ _ 1,8 5,1 1,8 
Jamaica _ 5,0 14,2 5,0 
Mauritius 4,0 3,4 0,5 1,4 4,5 
Seychelles 1,0 2,8 1,0 
Trinidad S Tobago 8,0 6,7 8,0 
TOTAL ACP 119,2 100,0 35,3 100,0 154,5 

Table IX 
Interest rate subsidies  in 1982 
- LOME II  -
(million ECU) 
Country Name of project Amount 
of 
, loan Amount 
of 
subsidy 
Barbados 
Botswana 
Cameroon 
Ivory Coast 
Kenya 
Mauritius 
Papua New 
Guinea 
Senegal 
Trinidad & 
Tobago 
Zimbabwe Barbados  Development  Bank 
Morupule 
CAMDEV II 
SOCAPALM  III 
INTELCI 
COFINCI II 
SAPH II 
Development  Finance  Company  (DFCK III) 
Olkaria Geothermal  Power 
Development  Bank of Mauritius  (DBM) 
Higaturu  II 
Industries  Chimiques  du Sénégal  (ICS) 
TTDFC Global Loan 
Wankie Power 4,00 
15,00 
6,90 
3,80 
10,00 
5,00 
6,60 
8,00 
9,00 
4,00 
7,90 
11,00 
8,00 
20,00 
TOTAL 119,20 0,92 
4,11 
1,91 
1,04 
2,43 
0,77 
1,49 
1,88 
1,63 
0,75 
1,36 
2,70 
1,16 
3,93 
26,08 

Table X:  Stabex  1982 payments  (year of  application  1931) 
(million ECU) 
Products Stabex 
payments Breakdown  of 
40 million  ECU Total 
Benin Cotton, not carded or combed 101.694 28.475 130.169 
Palm oil 198.893 55.692 254.585 
Palm nut and  kernel oil 425.520 119.148 544.668 
Cameroon Cocoa products" 8.084.683 2.263.765 10.348.448 
Raw or roasted coffee 5.459.706 1.528.755 6.988.461 
Central African Republic Raw or roasted coffee 1.200.616 336.180 1.536.796 
Ivory Coast Raw or roasted coffee 27.601.201 7.728.523 35.329.724 
Dominica Coconut products 392.297 109.846 502.143 
Ethiopia  : Raw or roasted coffee 756.794 211.908 968.702 
Fiji Coconut oil 510.459 142.932 653.391 
Gambia Groundnuts 1.738.342 486.747 2.225.089 
Groundnut  oil 1.125.275 315.085 1.440.360 
Oil-cake 413.858 115.883 529.741 
Ghana Cocoa products 25.606.655 7.170.037 32.776.692 
Grenada Nutmeg and mace 154.320 43.211 197.531 
Kenya Raw or roasted coffee 16.448.532 4.605.699 21.054.231 
Lesotho Mohai r 276.977 77.556 354.533 
Madagascar Raw or roasted coffee 2.688.131 752.695 3.440.826 
Malawi Tea 510.459 142.932 653.391 
Mali Shea almonds 510.459 142.932 653.391 
Papua New Guinea Raw or roasted coffee 7.360.518 2.060.995 9.421.513 
Cocoa beans 4.482.798 1.255.214 5.738.012 
Copra 1.082.569 303.126 1.385.695 
Coconut oiI 906.347 253.783 1.160.130 
Rwanda Raw or roasted coffee 510.459 142.932 653.391 
Solomon  Islands Copra 565.092 158.229 723.321 
Samoa Cocoa beans 914.719 256.127 1.170.846 
Copra 808.903 226.498 1.035.401 
Sao Tome and Principe Cocoa beans 777.258 217.637 994.895 
Senegal Groundnut  products 20.525.673 5.747.326 26.272.999 
Sierra Leone Palw nuts and kernels 845.514 236.749 1.082.263 
Cocoa beans 41.680 11.671 53.351 
Somalia Fresh bananas 741.567 207.644 949.211 
Sudan Cotton, not carded or combed 8.499.198 2.379.832 10,879.030 
Tanzania Raw or roasted coffee 542.321 151.853 . 694.174 
Tuvalu Cop^a 44.223 12.383 56.606 
Total payments Cop^a 
142.853.710 4U.U00.U00 182.853.710 
Vanuatu Cocoa beans (OCT  appropriation) 
-341.412 

Table ... XI - a 
Statistical  situation  of fourth EDF at 31 December 1982 
Breakdown  including  ACP, OCT and  other countries 
('000 ECU) 
Nationality Works contracts Supply contracts Technical cooperation" 
contracts Total contracts 
of firms Amount j % 
31.12.82 % 
31.12.81 Amount % 
31.12.82 % 
31.12.81 Amount % . 
51.12.82 % 
31.12.81 Amount \ 51.12.82 f % 
1.12.81 
Germany 72.865 6,79 7,63 81.847 19,98 20,14 71.749 21,00 20,81 226.462 12,41 12,84 
Belgium 61.461 5,72 6,60 19.928 4,87 4,42 26.079 7,63 8,30 107.469 5,90 6,46 
France 259.367 24,16 23,43 93.603 22,84 22,75 68.234 19,97 19,98 421.203 23,08 22,63 
Italy 114.682 10,68 11,23 60.447 14,76 14,80 38.175 11,17 11,35 213.303 11,69 12,02 
Luxembourg - - -21 0,01 0,01 4.608 1,35 1,52 4.629 0,25 0,29 
Netherlands 33.850 3,15 3,44 16.653 4,07 4,31 25.444 7,45 7,32 75.948 4·, 16 " 4,37 
Denmark 2.309 0,22 0,25 2.803 0,68 0,59 6.859 2,00 2,03 11.971 0,66 0,67 
United Kingdom 43.830 4,08 3,39 75.964 18,55 18,49 51.989 15,22 14,19 171.782 9,41 8,69 
Ireland - - -46 0,01 0,02 6.241 1,83 1,69 6.287 0,34 0,32 
ACP-OCT 475.052 44,25 42,93 34.694 8,47 8,47 40.490 11,85 12,30 550.237 30,15 29,67 
Third countries 10.254 0,95 1,10 23.567 5,76 6,00 1.794 0,53 0,51 35.614 1,95 2,04 
1.073.67C 100,00 100,00 409.573 100,00 100,00 341.662 100,00 100,00 1.824.905 100,00 I 100,00 
58,83 X 22,45 X 
-18,72  X 100,00  X 

Table XI - b 
Statistical  situation  of fifth EPF at 31  December  1982 
Breakdown  including  ACP, OCT and  other countries 
•('000 ECU) 
1 Works contracts Supply contracts Technical  cooperation Total contracts 
Nationality  of 
f i rms • cn Nationality  of 
f i rms % I % ' % % 
Amount Amount Amount I Amount 
31.12.82 30.6.82 - 31.12.82 --30.6.82 31.12.82 30.6.82 2!,12.82 Vl.'6..R? 
Germany 34.961 17,69 25,8' 10.353 19,04 15,77 11.382 21,62 20,57 56.696 18,61 23,78 
Belgium- 5.517 2,79 2,6C 1.321 2,43 4,24 4.178 7,94 8,42 11.016 3,62 3,62 
France 41.008 20,75 24,1] 9.073 16,69 12,79 14.971 28,43 28,54 65.052 21,35 23,23 
Italy 9.706 4,91 7,17 8.972 16,50 26,02 5.324 10,11 5,83 24.002 7,88 9,48 
Luxembourg - - - - - -398 0,76 0,47 398 0,13 0,06 
Netherlands - - -7.647 14,07 2,90 3.282 6,23 3,93 10.929 3,59 0,92 
Denmark — - - 15 0,01 0,06 1.384 2,63 3,41 1.399 0,46 0,48 
United Kingdom 118 0,06 0,01 10.848 19,96 34,94 7.175 13,63 4,13 18.141 5,95 5,21 
Ireland - - -4.800 8,83 -832 1,58 0,99 5.632 1,85 0,14 
Greece - - - - - -— 
ACP-OCT 88.918 44,99 27,3J 1.205 2,22 3,14 3.684 7,00 23,71 93.807 30,79 23,67 
Third countries 17.410 8,81 12,87 136 0,25 0,14 35 0,07 17.581 5,77 9,41 
197.638 100,00 100,00 54.370 . 100,00 100,00 52.645 100,00 100,00 304.653. 100,00 100,00 
64,87 X 17,85 X 17,28 X 100,00 X 

TABLE  XII 
Numbers  of technical cooperation  staff employed in ACP  countries  in 1982 
Sector 
- Planning  and administration 
- Public  utilities 
- Agriculture 
- Industry 
- Trade 
- .Training 
- -Health 
- Social  services 
- ftulti-sector Total ACP 
42 
84 
444 
147 
33 
73 
11 
21 
92 
947 Least-deve  Loped, 
Landlocked  or 
island countries % 
32 I 76,2 
70 1 83,3 
285 I 64,2 
127 I 86,4 
8 24,2 
60 1 82>2 
10 1 90,1 
15 I 71,4 
52 56,5 
659 69,6 

ANNEX 
RESOLUTION BY THE ACP-EEC COUNCIL OF MINISTERS 
of 20 May 1983 
9 
on financial  and technical co-operation 
THE ACP-EEC COUNCIL OP MINISTERS, 
Having regard to the  Second ACP-EEC  Convention, signed 
at Lome on 31 October  1979 (hereinafter  referred  to as 
the "Convention"),  and in  particular  Article  108 (6) 
an? Article  119 thereof, 
HaviDP;-regard  to the  Report and the  Draft Resolution 
submitted  by the  Article  108 Committee, 
Aware of the  need to implement  the entirety  of the 
Resolution  on financial  and technical co-operation, 
adopted by the ACP-EEC  Council  of Ministers  at 
Libreville  on 14 May 1982, 
HEREBY ADOPTS THE FOLLOWING  RESOLUTION : 
ACP-CEB 2161/2/83 ACP/81/013/83  REV 2 dot E 

- 2 -
I. GENERAL 
Council  takes note of the report  submitted  by the 
Commission  according to  Article  119 of the  Convention  and 
appreciates the quality of the information provided. 
However,  in order to  facilitate  the work of the  Article  108 
Committee,  Council  invites  the Commission  for .the .future : 
a) to accelerate the  submission  of its reports, and  submit 
them in any case not later than the end of July following 
•' thè year under review, 
b) to cover more fully the points to  which special attention 
was paid during the discussions of the  Article  108 Committee 
and, the resolutions  passed, 
c) to provide  statistical  data on  disbursements  related to the 
various  types of financing and the  sectorial  aspects of the 
co-operation. 
In addition, Council  invites  both parties to  illustrate  tfee 
discussions of the  Article  108 Committee  by including in separate 
papers or reports concrete  examples  of difficulties  encountered 
the implementation  of financial  and technical co-operation. 
ACP-CEE  2161/2/83 
(ANNEX) ACP/81/013/83  REV 2 dot E 

- 3 -
II. APPLICATION  OF CERTAIN  SPECIFIC  PROVISIONS  OF THE CONVENTION 
1. Least developed, landlocked ar.d  island  ACP States 
Council  reaffirms the  need for special  treatment 
to be accorded to the  least developed ACP States, and for 
special measures  in favour of the landlocked and  island 
ACP States. 
Council  recalls  that in order to help these countries 
overcome  the specific  difficulties  with which they are 
faced, special  provisions,  inspired  by this spirit,  exist 
in the Convention. 
Council  notes the  efforts  already  made in this regard by 
the Community  and invites  the relevant  ACP-EEC  institutions 
to examine  as soon as possible the  real impact of these  measures 
and to submit  to Council proposals regarding these  measures 
in order to  ensure  the effective  implementation of the  most 
flexible  and efficient  ways and means  by the Convention. 
2. Regional co-operation 
Council  refers  to point II.2 of its Resolution of 
14 May 1982 on  financial  and technical  co-operation' and 
reiterates  its support of the desire of the ACE States 
to strengthen regional co-operation, given that  this is 
basic to their development. 
Council  further notes that in order to achieve the 
objective  laid down in the Convention, the increase in 
resources should be  matched  by a closer  co-operation  between 
the ACP States and the  Community  in the  practical  implementation 
of regional projects. 
Council  therefore  calls on both  parties  to identify  and 
implement  projects  which make a real contribution  towards  solving 
development  problems  common  to a number  of ACP countries. 
ACP-CEE 2161/2/83 
(ANNEX), ACP/81/013/83  REV 2 dot 

- 4 -
3. Cofinancing 
Council welcomes  the emphasis  put in the  Convention  on the 
use of cofinancing  which makes it possible to mobilize the 
additional  financial  flows needed  to carry out  seme large scale 
projects. 
Council recommends  that preference  be-given  to joint 
financing  as far as possible, especially  where resources  from 
various donors  are put together in. a single  fund, and further 
recommends  the simplification  of the administrative  procedures 
for the implementation  of the projects  concerned. 
' Council  welcomes  the initiative  of the  Commission  in harmonizing 
its cofinancing  procedures  with the World Bank and the  Arab Funds, 
and invites it to  extend  its efforts in the  same direction as 
regards  other donors. 
4. Micro-projects 
Council refers to point II.3 of its Resolution of 14 Kay 19&2 on 
financial  and technical co-operation to the effect that  both parties 
attach great  importance  to micro-projects. 
Council draws  attention to the  improved  procedure  introduced 
in this respect,  whereby  the Commission's  approval is  based on annual 
programmes  setting out the  types  cf projects to be carried out, 
leaving  approval of the actual projects to the  Commission  Delegate 
as and when these projects are ripe for  implementation. 
Council hopes  that this procedure  will certainly increase the 
effectiveness of the  system  and hopes  that micro-orojects may be 
prepared,  carried out and followed  through  under the best possible 
conditions. '"' v 
ACP-CEE 2161/2/83 
(ANNEX) ACP/81/013/23  REV 2 dot E 

- 5 -
III. ACCELERATION  AND IMPROVEMENT  OF THE IMPLEMENTATION  OF FINANCIAL  
AND TECHNICAL  CO-OPATION 
1. Programming 
Council  notes that the  principle  of Article  110 of the 
Convention  was not achieved, the projected  average  rate of 
commitment  being 14,8 i» while the actual  overall  commitment 
rate amounted  to 12,1 % of the  funds available. 
Council therefore  mandates  the Article  108j Committee  to 
look at the  reasons  for the gap  between  projections and actual 
performance,  and, where  appropriate,  propose  to the  competent 
authorities  the necessary  measures  to remedy  the situation. 
2. Identification  and preparation of projects or action  programmes 
Council  agrees  on the  need for increased assistance to help 
the ACF States,  particularly  the least developed  countries, to . 
define and  prepare  projects or action  programmes  for submission 
for Community  financing. 
3· Drafting and signature of financing  agreements  . 
Council  calls on both parties to  take the necessary  measures 
so that financing  agreements,  the conclusion of  which influences 
, ,.,the actual  implementation  of the projects or action  programmes, 
• -.'are drafted and signed as  soon as possible. 
ACP-CEE  2161/2/83 
(ANNEX) ACP/81/013/83  REV 2 do 

- 6 -
A , Prenarn  ti or. of tender  dossiers  ; award in-~ ?rd ^imin,!-  of 
contracts 
Council recommends  that the AC?  Stater- ensure  that ^^•i 
tender dossiers  are prepared  vithin the time-limits  laic down, 
and calls on both parties  to ensure that the procedures  for 
awarding  and signing contracts  do not  result in unnecessary 
delays. 
5. Payment  and accounting procedures 
' Council  notes that as regards disbursements  the rate in 
the fir3t year of the  Convention  constitutes apparently 
an improvement  over the rate of disbursement  in the 
firs; year of the  First Lome Convention  (191 MECU or 4,1  •;' of 
the overall  5th ED?  appropriations  as compared  to 97 KUCU 
or 3,5 ^ of the  overall 4th EDF  appropriations). 
Council,  however,  mandates  the Article 108 Committee 
further nna 1yse the situation  in order to  appreciate 
whether these  figures necessarily  signify,  in.real  terms, an 
improved performance  in implementation of  projects  and action 
n»n^ram-ces,  since the first year of the  First Lome Convention 
covered  only nine months  whereas  that of the  Convention 
was for a  period of twelve months. 
Council recommends  that both parties take  measures 
de?: .rr.ed tc •ir..-":r?  a speedy payment  system by see.ng to it 
th"t f  cr-ali ties and administrative  procedures  are reduced to 
the mininum  compatible  with the sound financial  management 
of the prosets  or action programmes. 
ACP-CEE 2161/2/83 
(ANNEX) ACP/S1/013/83  REV 2 dot E 

- 7 -
Council also  urges the ACP States to  endeavour, 
when administering  advance  payments,  to provide, within 
the time-limits  laid down,  the supporting  payment  documents 
needed to renew advance  funds  set up to cater for the projects 
concerned. 
Council further  draws the attention of the ACP States 
to the rew favourable provisions  adopted  by the  Community 
whjoh allow contractors  from ACP States to obtain, subject 
to the provision of proof of the external use of the  funds, 
payment  in the Member  States' currencies required to carry 
out those contracts  which they are performing. 
6« Follow-up,  completion  and start-up 
Covncil recommends  that the AC? States  take all useful 
measures  , if necessary  with the support of the  Community, 
to set up within the time—limits  laid down the administrative, 
technicEd or  financial  structures  essential  for the  starting 
up of the projects or action  programmes. 
7• Opggaticn andjnaintenancy  of projects 
Recognizing that  many ACP States  have difficulties  in 
undertaking  immediately  the financial  responsibility  for 
•ororects;  operation and  maintenance,  Council strongly  recommends 
that more attention be given to  maintenance  possibilities  as from 
the desi.fm  phase,  in terms of finance,  import  requirements, 
necessary  expertise, and of  institutional  limitations. 
ACP-CE2  2161/2/83  ACP/31/013/83  REV 2 mcs E 
(ANNEX) 

- 8 -
3. Appropriate  technology  and ad  justment_of  _gro ;3cts and action 
programmes  to local circumstances 
In noting that  most investments  have a high  import 
component  and are foreign-firm oriented,  thus limiting 
the benefits for the  local economy  in terms of local 
va^ue added,  Council therefore  recommends  that the SDF should 
take fully into consideration the benefits for the  local 
economy which  would  result from increasing the  local content 
and from involving  local design and construction  companies  and 
the need for adjusting the  imported  techniques  to the 
environmental  and cultural  milieu of the ACP countries. 
IV. SECTORS  OF INTERVENTION 
1. Energy 
Council  recalls  the Resolution of the ACP Council of. 
July 1980 calling  for the  comprehensive  collation  of data 
on the enerrcy potential and  requirements  of the ACP States 
with a view to providing guidelines for furthering intra-AC? 
co-operation in  this field. 
In noting that  this work has not yet  been done due 
to a lack of  funds,  Council  welcomes  the possibility  of the 
Community  financing  such studies (preferably at a regional 
level) in accordance  with Article  76 of the  Convention. 
2. Industrialization 
Council underlines the  importance  of Title V of the 
ConventioK  and of the  common  declarations in  Annexes  X and XI 
to tho Fir.al Act. 
ACP-CEE  2161/2/83 
(ANNEX) ACP/81/012/93  REV 2 mcs E 

- 9 -
Recalling  point III.1 of its Hesoluticn of 14 May 1982 
on financial  and technical co-operation, Council looks 
forward  with great interest to the  outcome  of the work of 
the Committee  on Industrial  Co-operation. 
3» 3ural  development 
Council draws.attention to the  problems  of stock-farming, 
particularly  those  relating  to deficiencies in  price-fixing 
measures  for meat and their  effects on  animal  care and 
nutrition. 
Council, therefore, in referring to point III.2 of 
its Resolution of 14 May 1982 on  financial  and technical 
co-ooeration, again stresses that  prices  for agricultural 
•nroduct?!  paid to  producers  are one of the factors for the 
success  of projects  aimed at increasin/r production capacities 
and therefore further  stresses  that it is desirable  that 
the ACP States  benefit  from all necessary  support  from the 
Community. 
•T~> ensure  the viability  of integrated  rural development 
schemes,  and-to  improve  their performance  under the Convention, 
Council strongly  recommends  that" : 
- the projects  must be framed  on the basis of a precise 
evalua ion of the resources and constraints at the 
traditional  farm level ; 
- te^hnir.al solutions  chosen  must be simple  and consistent ; 
special,  attention  must be /river,  to the problem  of 
maintaining the  means  of production ; 
ACP-CEE 
(ANNEX) 2161/2/83 ACP/81/013/83  HEV 2 mcs 

- 10 -
- tve nro.iect  must involve  the Local population  in 
the work or indeed in the  expense,  where  possible,  and 
must offer a guarantee  of benefit  to the  local 
•copulation. 
4. 'Training 
Taking account  of the  importance -o~f training  in all 
aspects of development,  Council stresses  the increasing 
necessity  to offer a wider variety  of EDP  instruments 
as a package,  and that infrastructure,  equipment,  technical 
assistance, recurrent costs, fellowships  and training 
programmes  should be offered  for financing  and should be 
manan-ed in an  integrated  way. 
For this reason,  Council  recommends  that a great effort 
be made, supported  by institutional  and administrative  measures 
within the Community  and the  recipient  ACP Governments,  to 
ensure the explicit  inclusion  of training projects  in EDF 
investment  schemes. 
Finally,  Council recognizes tha"u  the issue of training 
calls for a  real dialogue  between  the Community  and the 
A"10 states in order to evolve a coherent  and overall 
ro] -i -v which  will enable  the AC?  States to work out 
cri V'T .3. for action. 
ACP-CEE  2161/2/83 
( ANNEX) ACP/81/013/83  REV 2 mcs E 

- 11 -
5. Transport  projects 
In recognizing that  the regular and satisfactory-
maintenance  of transport infrastructures  must remain a 
matter of constant  concern  to both parties,  in order to 
ensure a balance  between  the building  of new  infrastructures 
and the maintenance  of existing  ones, Council  recommends 
that special efforts  be made,  if necessary  with Community 
support,  to improve  the administrative  and material capacity 
of the national  maintenance  services,  in particular  by 
taking measures  to provide training  and suitable  equipment. 
6. Water supply and sanitation 
Council notes with satisfaction  the considerable 
imnrovements  in the  planning  and realization  of water 
sun-ply and sanitation projects since  the basic principles 
drawn from the assessment  work in this sector  were adopted, 
and therefore  requests  the parties  to continue  to take the 
maximum  account  of the  basic -principles,  which constitute 
ar -irvpl uable <mide for action. 
7· 2£'• :cation and health 
Council refers  to point IT.4 of  its Resolution  of 
IA "nv 1982 on  financial  and technical co-operation,  in 
nartic-jlar  subparagraphs  (a) and (c)  concerning  the 
choice of projects  and the  technologies  to be  applied. 
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Council "therefore requests the  narti ^- to ensure 
thnt the architectural design of hospital and educational 
centres is  fully adapted  to meet local conditions and 
that attention he given to the  need to match technical 
installations  in the management  and maintenance  capacities 
o^ the staff involved, and in  particular,  to the  social 
and cultural  development  of the  rural communities. 
Council wishes  further to  draw attention to the  need 
for integrated  programmes  in order to promote  the social  and 
cultural  development  of the rural  community  in accordance 
with Article  83(2)(e) of the Convention. 
8. Technical co-pneration 
Council  recalls  its Resolution of  9 Kay 1980 on financial 
and technical co-operation and the three  broad aspects of 
Quantity,  quality and cost,  under which technical assistance 
must be reviewed. 
Council mandates  the Article  108 Committee  to undertake 
an in-depth  review  of this important  question,  talcing  into 
consideration the  study being carried out by the  Commission 
relating  to the evaluation of technical assistance. 
9. Trade promotion  ^ 
Council draws attention to the  fact that, despite the 
•vider provisions of the  Convention  covering the  possibility 
of assi stance from the production  stage  up to the  final 
?'.··.-e of distribution,  many ACT States  still limit  their 
trru'iP pr-.wotier,  activities  to participation in trade  fairs, 
bhourh tva.de iVirs clearly  represent the  final stage  in 
the mr.rk&tirig process. 
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Council therefore  urges  ACP States to  evolve more 
innovative  methods  of trade  promotion  based on a clearly 
determined  trade policy and also on a competitive production 
capacity, and  urges  the Community  to support  such measures. 
V. FUTU..E PROGRAMME  OF WORK FOR ARTICLE  10fi COMMITTEE 
In addition  to its normal  programme,  defined  by 
Article  108 of the Convention,  Council  mandates  the 
Article  108 Committee  to undertake an in-depth review of : 
i . . 
(1) Issues of procedure 
( a^ Programming  : reasons for the gap  between  target 
and actual  commitment,  including  statistical  analysis 
of projects  presented,  rejected  or modified, in order to. 
ensure improved implementation of  Article  110 of the 
Convention ; 
(b) Disbursements :  analysis  of the breakdown  of statistical  data, 
with a view to ensuring an improved  presentation  of these 
data in the annual  Commission  report  in accordance with 
Article  119 of the Convention. 
(2 ) Sectoral  issues 
(ax Rural  projects  ; identification  of the  sociological 
and cultural  difficulties  resulting  from the implementation 
of rural projects,  and in  paiJicular  the resettlement 
and land ownership problems ; 
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(b) Training  : development  of a coherent  and overall 
training  policy,  based on an examination  of ACP 
States' development  needs ; 
(c) Technical cooperation  : in-depth  review  of the  cost 
and quality  of technical assistance, taking  into 
consideration  among  other assessments  the Commission's 
'study on evaluation  of r"s^u^~assTsTance,  in order to 
improve the implementation  .of the relevant sections  of 
the Convention. 
Done at Brussels,  20 May 1983 
For the ACr-EEC  Council  of Irn" 
The President 
(s.) M. Qionibaravi 
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