EN Official Journal of the European Union C 260/1

FINAL ACCOUNTS FOR THE FINANCIAL YEAR 2006 OF THE 6th, 7th, 8th AND 9th EUROPEAN DEVELOPMENT FUNDS

(2007/C 260/01)

TABLE OF CONTENTS

1. FINANCIAL STATEMENTS

1.1. Accounting principles and valuation rules

1.2. Consolidation

1.3. Currency and basis for conversion

1.4. Balance sheet accounts

1.5. Economic outturn accounts

1.6. Recording of operations

1.7. Use of estimates

1.8. Closure of 6th edf

1.9. financial statements

1.10. Notes to the accounts

1.11. Restatement of certain figures for 2005

1.12. Off balance items

2. REPORT ON FINANCIAL IMPLEMENTATION

2.1. Appropriations at 31.12.2006

2.2. Consolidated accounts

2.3. Situation by country and by instrument

2.4. Other management information

3. FINANCIAL INFORMATION EIB

3.1. Income statement investment facility

3.2. Balance sheet investment facility

3.3. Cash flow statement investment facility

3.4. Statement of changes in equity investment facility

3.5. Notes to the financial statements

4. APPENDIX — Sitution by country and by instrument

1. FINANCIAL STATEMENTS

1.1. ACCOUNTING PRINCIPLES AND VALUATION RULES

1.1.1. FINANCIAL REGULATIONS

The financial statements were drawn up in accordance with the Financial Regulation applicable to the 9th European Development Fund (1) (EDF).

The relevant documents must be presented to the Court of Auditors as provided for in Articles 66, 67 and 68 of the Financial Regulation applicable to the 6th EDF (2), Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF (3), Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF (4) and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF. Article 102 (9th EDF) stipulates that the Commission shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 103). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal by 31 October together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management.

1.1.2. ACCRUAL BASED ACCOUNTS

In accordance with the provisions of article 99 of the 9th EDF Financial Regulation, financial statements are prepared in respect of the principle of accrual based accounting.

The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer.

These financial statements have been drafted in conformity with accounting rules and methods for the EDF drawn up on the basis of International Accounting Standards (IPSAS/IAS) and Generally Accepted Accounting Principles (GAAPs). The layout of the financial statements has been changed following the modification of the acounting rules for the Commission, validated by the Accounting Standards Committee in July 2006.The rules of valuation and accounting methods adopted by the Accounting Officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management.

The annual accounts for 2006 are presented as follows:

— The financial statements

— The reports on financial implementation

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

1.1.3. ACCOUNTING PRINCIPLES

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

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

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

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

— going concern basis;

— prudence;

— consistent accounting methods;

— comparability of information;

— materiality;

— no netting;

— reality over appearance, and

— accrual-based accounting.

1.2. CONSOLIDATION

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

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

1.3. CURRENCY AND BASIS FOR CONVERSION

Functional and reporting currency

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

Transactions and balances

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

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December 2006:

EURO Exchange Rate at 31 December 2006 — GBP 0,6743

1.4. BALANCE SHEET ACCOUNTS

1.4.1. PRE-FINANCING AMOUNTS

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

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

Guarantees held to secure pre-financed amounts are treated as ‘Contingent Assets’ and as such they are not accounted for in the financial statements (IPSAS 19). Details are however provided in section 1.12 below for information purposes.

1.4.2. DEBTORS

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

1.4.3. CREDITORS

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

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

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

1.4.4. CASH & CASH EQUIVALENTS

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

1.5. ECONOMIC OUTTURN ACCOUNTS

1.5.1. INCOME

In application of Accrual Based Accounting Principles the only source of income for the funds is derived from interest payable on various cash balances held with commercial Banks (see notes to the accounts).

1.5.2. EXPENDITURE

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

— A contract has been signed which authorises the payment;

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

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

As expenditure incurred by Commission Delegations is not finally entered into the EDF accounts until it has been validated by both the Authorising Officer and the Accounting Officer, any expenditure which did not meet this double criterion at the year end is shown under the heading of ‘transactions to be finalised’.

Cash basis expenditure includes all payment orders executed by the banks up to 31 December 2006.

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

1.6. RECORDING OF OPERATIONS

The deadline for the commitment of the funds under the 9th EDF has been set at 31 December 2007 in line with the ‘sunset clause’ adopted by Council Decision 2005/446/CE of 30 May 2005 (5).

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

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

1.7. USE OF ESTIMATES

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

1.8. CLOSURE OF 6TH EDF

Given the state of progress of the 6th EDF, the Authorising Officer decided to close this fund on 31 July 2006. In the absence of a legal basis for the closure of EDFs, the balance remaining has been transferred to the 9th EDF according to the provisions of Part 3 of the Financial regulation applicable to the 9th EDF.

This operation involved the transfer to the 9th EDF of the balances of ongoing projets on that date, amounting to EURO 52 105 915,98.

1.9. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET 2006 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Notes 31.12.2006 31.12.2005 CURRENT ASSETS Contributions to be received 1 0,00 13,72 Debtors 2 216,74 138,77 Net Pre-financing 3 2 808,96 2 304,20 Other current assets 4 0,95 3,31 Liaison accounts 5 0,00 0,00 Cash and cash equivalents 291,50 662,10 STABEX Security accounts 6 191,60 371,88 D.R. Congo special fund 7 3,42 19,67 Cash at banks 8 96,48 270,55 Total assets 3 318,15 3 122,10 CURRENT LIABILITIES Accounts payable 8 2 095,84 1 485,75 Liaison accounts 5 0,00 0,00 Total liabilities 2 095,84 1 485,75 Net assets 1 222,31 1 636,35 FUNDS & RESERVES Called fund capital 10 29 900,00 27 390,00 Results carried forward from previous years 11 –26 787,49 –24 261,09 Result for the year –2 924,04 –2 526,40 Reserves 12 1 033,84 1 033,84 Funds & reserves 1 222,31 1 636,35





CONSOLIDATED ECONOMIC OUTTURN ACCOUNT 2006 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Notes Cash basis expenditure 2006 Increase in pre-financing Increase in accrued expenditure Accrual basis expenditure 2006 Accrual basis expenditure 2005 Operating interest 2.1 0,06 0,06 0,35 OPERATING INCOME (1) 0,06 0,06 0,35 Programmable aid 619,64 – 131,81 –1,88 749,57 982,45 Macro-economic support 411,33 3,51 407,82 383,01 Sectoral policy 817,83 260,40 353,81 911,24 492,16 Intra ACP Projects 423,34 423,08 339,10 339,36 198,91 Interest-rate subsidies 1,20 1,20 0,27 Emergency aid 116,33 17,05 30,84 130,12 134,92 Refugee aid 7,11 –6,96 –7,39 6,68 12,99 Aids Fund –0,01 0,01 0,00 Risk Capital 63,11 63,11 60,80 STABEX 189,52 189,52 66,40 Sysmin 15,72 –0,61 13,47 29,80 13,99 Transfers from former EDFs 5,20 10,41 20,36 15,16 15,61 Structural adjustment 1,07 0,18 0,89 15,89 Debt relief 2,00 15,42 17,42 23,19 Institutional Support 30,86 14,55 16,03 32,34 28,67 Compensation export receipts 35,36 –23,11 –5,65 52,82 –3,32 Congo Fund 15,73 51,53 22,41 –13,39 89,80 Operational expenditure 2 755,35 618,20 796,53 2 933,67 2 515,74 Administrative and financial expenditure 13 6,58 –36,74 –19,53 23,79 28,60 Total Expenditure (cash basis) 14 2 761,93 Accrual adjustments 15 195,39 581,46 777,00 –0,14 –0,19 TOTAL EXPENDITURE/Accrual basis (2) 16 2 957,31 2 957,31 2 544,15 NET COST OF OPERATING ACTIVITIES (2-1) 2 957,26 2 957,26 2 543,81 Financial income 17 31,61 31,61 23,95 Financial charges 18 –0,14 –0,14 –0,19 Provisions 2.7 1,75 1,75 –6,36 Surplus/(deficit) from financial activities (3) 33,22 33,22 17,41 NET ECONOMIC RESULT (1-2+3) –2 924,04 –2 924,04 –2 526,40





CASH FLOW STATEMENT 2006 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Notes 31.12.2006 31.12.2005 Net economic result –2 924,04 –2 526,40 Increase in provision 2.7 –1,75 6,36 Financial income adjustment 17 0,07 –1,40 Operational income adjustment 2.1 0,04 0,30 Accrual adjustments 15 195,39 59,42 Financial charges 18 0,14 0,19 Increase in provision for bank charges 9.3 –0,04 –0,03 Decrease in transactions awaiting finalisation 4 2,73 5,85 Cash flows from operating activities –2 727,46 –2 455,71 Contributions from Member States 1 2 525,82 2 199,70 Cash flows from financing activities 2 525,82 2 199,70 Net increase/decrease in cash and cash equivalent – 201,64 – 256,01 Treasury balance at beginning of period 8 270,55 261,89 STABEX security accounts at beginning of period 6 371,88 430,17 Congo Account 7 19,67 106,83 SWIFT account 9.2 – 119,23 0,00 Cash and cash equivalent at beginning of period 542,87 798,88 Treasury balance at end of period 8 96,48 270,55 STABEX security accounts at end of period 6 191,60 371,88 Congo Account 7 3,42 19,67 SWIFT account 9.2 49,73 – 119,23 Cash and cash equivalent at end of period 341,23 542,87





CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL 2006 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Equity (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 10 10 10 11 12 Closing balance 2004 42 250,15 17 210,15 25 040,00 –24 261,09 1 033,84 1 812,75 Contributions –2 350,00 2 350,00 2 350,00 Capital increase 627,00 627,00 Transfers from former FED Net economic result –2 526,40 –2 526,40 Other movements Closing balance 2005 42 877,15 15 487,15 27 390,00 –26 787,49 1 033,84 1 636,35 Contributions –2 510,00 2 510,00 2 510,00 Capital increase 122,00 122,00 Transfers from former FED Net economic result –2 924,04 –2 924,04 Other movements Closing balance 2006 42 999,15 13 099,15 29 900,00 –29 711,53 1 033,84 1 222,31





6TH EDF BALANCE SHEET 2006

(EUR million) Notes 31.7.2006 31.12.2005 CURRENT ASSETS Contributions to be received 1 0,00 0,00 Debtors 2 0,00 9,13 Net Pre-financing 3 0,00 37,01 Other current assets 4 0,00 2,85 Liaison accounts 5 2 279,31 2 355,51 Cash and cash equivalents 0,00 0,00 STABEX Security accounts 6 0,00 0,00 D.R. Congo special fund 7 0,00 0,00 Cash at bank 8 0,00 0,00 Total assets 2 279,31 2 404,50 CURRENT LIABILITIES Accounts payable 9 0,00 38,77 Liaison accounts 5 2 279,31 2 279,31 Total liabilities 2 279,31 2 318,07 Net assets 0,00 86,43 FUNDS & RESERVES Called fund capital 10 7 560,00 7 560,00 Results carried forward from previous years 11 –7 290,58 –7 243,09 Result for the year –10,36 –47,49 Reserves 12 – 259,06 – 182,99 Funds & reserves 0,00 86,43





6TH EDF ECONOMIC OUTTURN ACCOUNT 2006

(EUR million) Notes Cash basis expenditure 2006 Increase in pre-financing Increase in accrued expenditure Accrual basis expenditure 2006 Accrual basis expenditure 2005 Operating interest 2.1 OPERATING INCOME (1) Programmable aid 4,79 –37,50 –30,49 11,81 39,83 Macro-economic support Sectoral policy Intra ACP Projects –10,00 –8,27 1,73 1,91 Interest-rate subsidies –0,02 Emergency aid Refugee aid –0,05 0,05 0,13 Aids Fund –0,01 0,01 0,00 Risk Capital 1,22 STABEX Sysmin 0,04 0,04 0,04 Transfers from former EDFs 0,15 –0,11 –0,06 0,21 0,78 Structural adjustment Debt relief institutional support Compensation export receipts Congo Fund Operational expenditure 4,95 –47,67 –38,77 13,85 43,89 Administrative and financial expenditure 13 0,00 0,00 0,11 Total Expenditure (cash basis) 14 4,95 Accrual adjustments 15 8,90 –47,67 –38,77 0,00 –0,09 TOTAL EXPENDITURE/Accrual basis (2) 16 13,85 13,85 43,92 NET COST OF OPERATING ACTIVITIES (2-1) 13,85 13,85 43,92 Financial income 17 Financial charges 18 0,00 0,00 –0,09 Provisions 2.7 3,49 3,49 –3,48 Surplus/(deficit) from financial activities (3) 3,49 3,49 –3,57 NET ECONOMIC RESULT (1-2+3) –10,36 –10,36 –47,49





6TH EDF STATEMENT OF CHANGES IN CAPITAL 2006

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Equity (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 10 10 10 11 12 Closing balance 2004 7 560,00 0,00 7 560,00 –7 243,09 – 158,43 158,48 Contributions Capital increase Transfers to 9th FED –24,56 –24,56 Net economic result –47,49 –47,49 Other movements Closing balance 2005 7 560,00 0,00 7 560,00 –7 290,58 – 182,99 86,43 Contributions Capital increase Transfers to 9th FED –76,06 –76,06 Net economic result –10,36 –10,36 Other movements Closing balance 2006 7 560,00 0,00 7 560,00 –7 300,94 – 259,06 0,00





7th EDF BALANCE SHEET 2006

(EUR million) Notes 31.12.2006 31.12.2005 CURRENT ASSETS Contributions to be received 1 0,00 0,00 Debtors 2 17,06 17,46 Net Pre-financing 3 203,75 287,54 Other current assets 4 0,00 0,00 Liaison accounts 5 2 279,31 2 279,31 Cash and cash equivalents 0,00 0,00 STABEX Security accounts 6 0,00 0,00 D.R. Congo special fund 7 0,00 0,00 Cash at bank 8 0,00 0,00 Total assets 2 500,12 2 584,30 CURRENT LIABILITIES Accounts payable 9 92,62 148,21 Liaison accounts 5 1 868,50 1 582,59 Total liabilities 1 961,12 1 730,80 Net assets 539,00 853,50 FUNDS & RESERVES Called fund capital 10 10 940,00 10 940,00 Results carried forward from previous years 11 –9 527,36 –9 233,99 Result for the year – 187,83 – 293,37 Reserves 12 – 685,81 – 559,14 Funds & reserves 539,00 853,50





7th EDF ECONOMIC OUTTURN ACCOUNT 2006

(EUR million) Notes Cash basis expenditure 2006 Increase in pre-financing Increase in accrued expenditure Accrual basis expenditure 2006 Accrual basis expenditure 2005 Operating interest 2.1 OPERATING INCOME (1) Programmable aid 88,71 –27,43 –10,60 105,55 194,78 Macro-economic support Sectoral policy Intra ACP Projects –50,00 –41,33 8,67 9,55 Interest-rate subsidies –0,01 –0,01 0,02 Emergency aid –0,21 –0,21 0,01 Refugee aid –0,18 –0,18 –0,66 –0,66 0,49 Aids Fund Risk Capital 5,46 5,46 12,23 STABEX 51,71 51,71 50,40 Sysmin 12,74 0,24 4,09 16,59 8,28 Transfers from former EDFs 0,78 –6,63 –6,95 0,46 14,83 Structural adjustment 0,03 0,03 0,03 Debt relief 0,06 0,06 0,07 Institutional Support Compensation export receipts Congo Fund Operational expenditure 159,24 –84,01 –55,59 187,66 290,69 Administrative and financial expenditure 13 0,00 0,00 0,00 0,00 0,00 Total Expenditure (cash basis) 14 159,24 Accrual adjustments 15 28,42 –84,01 –55,59 TOTAL EXPENDITURE/Accrual basis (2) 16 187,66 187,66 290,69 NET COST OF OPERATING ACTIVITIES (2-1) 187,66 187,66 290,69 Financial income 17 Financial charges 18 Provisions 2.7 –0,18 –0,18 –2,68 Surplus/(deficit) from financial activities (3) –0,18 –0,18 –2,68 NET ECONOMIC RESULT (1-2+3) – 187,83 – 187,83 – 293,37





7TH EDF STATEMENT OF CHANGES IN CAPITAL 2006

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Equity (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 10 10 10 11 12 Closing balance 2004 10 940,00 0,00 10 940,00 –9 233,99 – 473,06 1 232,96 Contributions Capital increase Transfers to 9th FED –86,09 –86,09 Net economic result – 293,37 – 293,37 Other movements Closing balance 2005 10 940,00 0,00 10 940,00 –9 527,36 – 559,14 853,50 Contributions Capital increase Transfers to 9th FED – 126,67 – 126,67 Net economic result – 187,83 – 187,83 Other movements Closing balance 2006 10 940,00 0,00 10 940,00 –9 715,19 – 685,81 539,00





8TH EDF BALANCE SHEET 2006

(EUR million) Notes 31.12.2006 31.12.2005 CURRENT ASSETS Contributions to be received 1 0,00 13,72 Debtors 2 70,61 55,78 Net Pre-financing 3 888,93 1 007,78 Other current assets 4 0,00 0,00 Liaison accounts 5 2 450,58 928,96 Cash and cash equivalents 0,00 0,00 STABEX Security accounts 6 0,00 0,00 D.R. Congo special fund 7 0,00 0,00 Cash at bank 8 0,00 0,00 Total assets 3 410,12 2 006,24 CURRENT LIABILITIES Accounts payable 9 651,73 611,17 Liaison accounts 5 2 065,45 2 065,45 Total liabilities 2 717,19 2 676,62 Net assets 692,93 – 670,38 FUNDS & RESERVES Called fund capital 10 11 295,00 8 785,00 Results carried forward from previous years 11 –7 851,95 –6 963,08 Result for the year – 872,26 – 888,87 Reserves 12 –1 877,85 –1 603,43 Funds & reserves 692,93 – 670,38





8TH EDF ECONOMIC OUTTURN ACCOUNT 2006

(EUR million) Notes Cash basis expenditure 2006 Increase in pre-financing Increase in accrued expenditure Accrual basis expenditure 2006 Accrual basis expenditure 2005 Operating interest 2.1 OPERATING INCOME (1) Programmable aid 477,43 –92,87 5,13 575,43 714,52 Macro-economic support 13,82 0,75 13,07 77,34 Sectoral policy 16,49 –3,05 3,67 23,21 8,41 Intra ACP Projects Interest-rate subsidies 1,21 1,21 0,27 Emergency aid 0,22 –0,96 –0,20 0,98 1,04 Refugee aid 7,29 –6,73 –6,73 7,29 12,37 Aids Fund Risk Capital 57,65 57,65 47,35 STABEX 137,80 137,80 16,00 Sysmin 2,98 –0,85 9,33 13,17 5,67 Transfers from former EDFs Structural adjustment 1,04 0,18 0,86 15,86 Debt relief — HIPC AND WB 15,36 15,36 15,52 Institutional Support Compensation export receipts 20,20 –0,49 10,11 30,80 –18,57 D.R. Congo Fund Operational expenditure 736,15 – 104,01 36,66 873,83 895,78 Administrative and financial expenditure 13 0,66 –0,08 3,90 4,64 1,74 Total Expenditure (cash basis) 14 736,81 Accrual adjustments 15 144,65 – 104,09 40,56 TOTAL EXPENDITURE/Accrual basis (2) 16 881,47 881,47 897,51 NET COST OF OPERATING ACTIVITIES (2-1) 881,47 881,47 897,51 Financial income 17 9,13 9,13 8,84 Financial charges 18 Provisions 2.7 0,08 0,08 –0,19 Surplus/(deficit) from financial activities (3) 9,20 9,20 8,65 NET ECONOMIC RESULT (1-2+3) – 872,26 – 872,26 – 888,87





8TH EDF STATEMENT OF CHANGES IN CAPITAL 2006

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Equity (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 10 10 10 11 12 Closing balance 2004 12 840,00 6 405,00 6 435,00 –6 963,08 –1 319,54 –1 847,63 Contributions –2 350,00 2 350,00 2 350,00 Capital increase Transfers to 9th FED – 283,89 – 283,89 Net economic result – 888,87 – 888,87 Other movements Closing balance 2005 12 840,00 4 055,00 8 785,00 –7 851,95 –1 603,43 – 670,38 Contributions –2 510,00 2 510,00 2 510,00 Capital increase Transfers to 9th FED – 274,42 – 274,42 Net economic result – 872,26 – 872,26 Other movements Closing balance 2006 12 840,00 1 545,00 11 295,00 –8 724,21 –1 877,85 692,93





9TH EDF BALANCE SHEET 2006

(EUR million) Notes 31.12.2006 31.12.2005 CURRENT ASSETS Contributions to be received 1 0,00 0,00 Debtors 2 129,07 56,41 Net Pre-financing 3 1 716,28 971,88 Other current assets 4 0,95 0,46 Liaison accounts 5 1 868,50 1 582,59 Cash and cash equivalents 291,50 662,10 STABEX Security accounts 6 191,60 371,88 D.R. Congo special fund 7 3,42 19,67 Cash at bank 8 96,48 270,55 Total assets 4 006,30 3 273,43 CURRENT LIABILITIES Accounts payable 9 1 351,49 687,61 Liaison accounts 5 2 664,43 1 219,01 Total liabilities 4 015,92 1 906,62 Net assets –9,62 1 366,81 FUNDS & RESERVES Called fund capital 10 105,00 105,00 Results carried forward from previous years 11 –2 117,60 – 820,93 Result for the year –1 853,59 –1 296,67 Reserves 12 3 856,56 3 379,41 Funds & reserves –9,62 1 366,81





9TH EDF ECONOMIC OUTTURN ACCOUNT 2006

(EUR million) Notes Cash basis expenditure 2006 Increase in pre-financing Increase in accrued expenditure Accrual basis expenditure 2006 Accrual basis expenditure 2005 Operating interest 2.1 0,06 0,06 0,35 OPERATING INCOME (1) 0,06 0,06 0,35 Programmable aid 48,70 25,99 34,07 56,78 33,32 Macro-economic support 397,51 2,76 394,75 305,66 Sectoral policy 801,34 263,45 350,14 888,03 483,75 Intra ACP Projects 423,34 483,08 388,69 328,96 187,45 Interest-rate subsidies Emergency aid 116,11 18,01 31,25 129,35 133,87 Refugee aid Aids Fund Risk Capital STABEX Sysmin Transfers from former EDFs 4,27 17,15 27,37 14,49 Structural adjustment Debt relief -HIPC and World Bank 2,00 2,00 7,60 Institutional Support 30,86 14,55 16,03 32,34 28,67 Compensation export receipts 15,16 –22,62 –15,76 22,02 15,25 D.R. Congo Fund 15,73 51,53 22,41 –13,39 89,80 Operational expenditure 1 855,01 853,89 854,22 1 855,34 1 285,38 Administrative and financial expenditure 13 5,91 –36,66 –23,43 19,15 26,75 Total Expenditure (cash basis) 14 1 860,93 Accrual adjustments 15 13,42 817,23 830,79 –0,14 –0,10 TOTAL EXPENDITURE/Accrual basis (2) 16 1 874,34 1 874,34 1 312,03 NET COST OF OPERATING ACTIVITIES (2-1) 1 874,29 1 874,29 1 311,69 Financial income 17 22,49 22,49 15,12 Financial charges 18 –0,14 –0,14 –0,10 Provisions 2.7 –1,65 –1,65 Surplus/(deficit) from financial activities (3) 20,70 20,70 15,02 NET ECONOMIC RESULT (1-2+3) –1 853,59 –1 853,59 –1 296,67





9TH EDF STATEMENT OF CHANGES IN CAPITAL 2006

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Equity (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 10 10 10 11 12 Closing balance 2004 10 910,15 10 805,15 105,00 – 820,93 2 984,87 2 268,94 Contributions Capital increase 627,00 627,00 Transfers from other EDF 394,54 394,54 Net economic result –1 296,67 –1 296,67 Other movements Closing balance 2005 11 537,15 11 432,15 105,00 –2 117,60 3 379,41 1 366,81 Contributions Capital increase 122,00 122,00 Transfers from other EDF 477,15 477,15 Net economic result –1 853,59 –1 853,59 Other movements Closing balance 2006 11 659,15 11 554,15 105,00 –3 971,18 3 856,56 –9,62

1.10. NOTES TO THE ACCOUNTS

Notes to the balance sheet

(1) CONTRIBUTIONS TO BE RECEIVED

Details of contributions called up and received during the year 2006 are shown in table 1. The EIB contribution is the sum of the Special Congo Contribution (see note 10) and the 20 EUR millions transfer referred to in note 10.

Table 1

(EUR million) Contributions % Called up in 2005 Received in 2005 Contributions to be received at 31/12/2005 Called up in 2006 Received in 2006 Contributions to be received at 31/12/2006 Total called up Austria 2,65 61,75 61,75 66,52 66,52 248,44 Belgium 3,92 91,34 91,34 98,39 98,39 367,50 Denmark 2,14 49,86 49,86 53,71 53,71 200,63 Finland 1,48 34,48 34,48 37,15 37,15 138,75 France 24,30 566,19 594,85 13,72 609,93 623,65 2 278,13 Germany 23,36 544,29 544,29 586,34 586,34 2 190,00 Greece 1,25 29,13 29,13 31,38 31,38 117,19 Ireland 0,62 14,45 14,45 15,56 15,56 58,13 Italy 12,54 292,18 292,18 314,75 314,75 1 175,63 Luxemburg 0,29 6,76 6,76 7,28 7,28 27,19 Netherlands 5,22 121,63 121,63 131,02 131,02 489,38 Portugal 0,97 22,60 22,60 24,35 24,35 90,94 Spain 5,84 136,07 136,07 146,58 146,58 547,50 Sweden 2,73 63,61 63,61 68,52 68,52 255,94 United Kingdom 12,69 295,68 295,68 318,52 318,52 1 189,69 EIB 8th EDF 20,00 20,00 120,00 STABEX 1 800,00 Total 8th EDF 2 350,00 2 378,66 13,72 2 510,00 2 523,72 0,00 11 295,00 EIB 9th EDF 105,00 Total 9th EDF 0,00 0,00 0,00 0,00 0,00 0,00 105,00 Total 100,00 2 350,00 2 378,66 13,72 2 510,00 2 523,72 0,00 11 400,00

(2) DEBTORS

The detail of this heading is shown in table 2:

Table 2

(EUR million) Debtors Notes 6th 7th 8th 9th Total at 31/12/2006 Total at 31/12/2005 Interest on late contributions 2.1 2,09 2,09 2,13 Interest on late contributions — STABEX 2.2 0,79 0,79 0,79 Interest receivable — European banks 2.3 0,88 0,88 0,84 Interest receivable — STABEX security 2.4 0,61 0,61 0,72 Recovery orders to be issued 2.5 14,54 62,38 119,67 196,58 122,15 Open recoveries 2.6 5,38 8,35 6,68 20,40 18,52 Doubtful debts 2.7 2,87 0,11 1,65 4,63 6,37 Total 0,00 17,06 70,61 129,07 216,74 138,77

In accordance with the provisions of the Cotonou Agreement, interest income is presented in the balance sheet of the 9th EDF. The sole exception is the interest earned in STABEX security accounts which is presented in the 8th EDF as this aid instrument does not feature in the 9th EDF (see notes 6 and 17).

(2.1) Interest on late contributions

In accordance with Article 40(4) of the 9th EDF Financial Regulation interest is charged to the Member States in the event of late payment of the called-up contributions. Such funds can be used for financing projects. This interest results in an effective increase in the Funds' overall appropriations and represents its only source of operating income (see economic outturn account).

Details of interests charged and subsequently paid by the Member States are given in table 2.1.

Table 2.1

(EUR million) Interest for late payment 31/12/2006 Balance at 31/12/2005 Interest payable 2006 Interest paid 2006 Balance at 31/12/2006 Austria Belgium 0,01 0,01 Denmark Finland France 1,04 0,02 0,05 1,00 Germany Greece 0,01 0,01 Ireland 0,02 0,02 Italy Luxemburg Netherlands Portugal Spain 0,06 0,06 Sweden 0,00 0,00 United Kingdom 1,02 1,02 Total 2,13 0,06 0,09 2,09

(2.2) Interest on late contributions STABEX

All STABEX contributions were received prior to the beginning of the 2006 financial year. The amount shown for interest due represents the outstanding balance carried over and corresponds to interest due from France.

(2.3) Interest receivable European banks and STABEX main account

This amount represents interest earned on the European bank accounts and the STABEX current account during the financial year 2006 but only credited to the bank account in 2007.

(2.4) Interest receivable STABEX security accounts

This amount represents interest earned on the STABEX security accounts during the financial year 2006 but only credited to the bank account in 2007. This interest is the property of the relevant beneficiary countries.

(2.5) Recovery orders to be issued

In order to apply accrual accounting principles, the Authorising Officer has estimated the amount of advances to be recovered for which recovery orders have yet to be issued.

Details are shown table 2.2

Table 2.2

(EUR million) recovery orders to be issued 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31/12/2006 14,54 62,38 119,67 196,58 Total at 31/12/2005 2,38 15,38 53,19 51,19 122,15 Increase –2,38 –0,85 9,19 68,48 74,44

(2.6) Recoveries

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

(2.7) Provision for doubtful debts

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

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

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

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

The detail of this provision is shown is table 2.4:

Table 2.4

(EUR million) Provision for doubtful debts 6th EDF 7th EDF 8th EDF 9th EDF Total Balance at 31/12/2006 2,87 0,11 1,65 4,63 Balance at 31/12/2005 3,49 2,69 0,19 6,37 Increase –3,49 0,18 –0,08 1,65 –1,75

(3) NET PRE-FINANCING

Following the principles of accrual accounting, advance payments are classified as assets. The figures for open Pre-financing have been provided by the Authorising Officer (see table 3.1) and have been revised downwards by the open recoveries concerning advances and by the calculated figures for recovery orders to be issued, as shown in table 3.

Table 3

(EUR million) Net Pre-financing Notes 6th EDF 7th EDF 8th EDF 9th EDF Total 31/12/2006 Total 31/12/2005 Pre-financing 3.1 223,67 959,66 1 841,04 3 024,37 2 442,90 Advances for study grants management 3.2 1,58 1,58 1,96 — open recoveries 2.3 5,38 8,35 6,68 20,40 18,52 — recovery orders to be issued 2.5 14,54 62,38 119,67 196,58 122,15 TOTAL 0,00 203,75 888,93 1 716,28 2 808,96 2 304,20

(3.1) Pre-financing

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

The table below summarizes outstanding advances (except for Structural adjustment programmes and direct budgetary support programme) registered in the Authorising Officer's accounts at the end of the year. Conversion into EUR is made using the official exchange rate of December 31, 2006.

Table 3.1

(EUR million) Pre-financing 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31/12/2006 223,67 959,66 1 841,04 3 024,37 Total at 31/12/2005 47,67 307,68 1 063,75 1 023,80 2 442,90 Increase –47,67 –84,01 – 104,09 817,23 581,46

(3.2) Advances for study grants management

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

(4) OTHER CURRENT ASSETS

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects as shown in table 4.

Table 4

(EUR million) Other current assets 6th EDF 9th EDF Total at 31/12/2006 Total at 31/12/2005 Expenditure to be finalised 2,65 2,65 2,85 Devaluation 0,00 0,00 0,00 Income to regularise –2,12 –2,12 –0,06 RAR on offsettings 0,42 0,42 0,51 Total 0,00 0,95 0,95 3,31

(5) LIAISON ACCOUNTS

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

Balances on the liaison accounts at 31/12/2006 are detailed in tables 5 and 5.1.

Table 5

(EUR million) Liaison accounts 6th EDF 7th EDF 8th EDF 9th EDF Total at 31/12/2006 Total at 31/12/2005 To/from 6th EDF 2 279,31 –2 065,45 – 213,85 –76,20 To/from 7th EDF –2 279,31 1 868,50 – 410,80 – 696,71 To/from 8th EDF 2 065,45 –2 450,58 – 385,12 1 136,49 To/from 9th EDF 213,85 –1 868,50 2 450,58 795,93 – 363,58 0,00 410,80 385,12 – 795,93 0,00 0,00





Table 5.1

(EUR million) Liaison accounts 6th EDF 7th EDF 8th EDF 9th EDF Total 2006 assets 2 279,31 2 279,31 2 450,58 1 868,50 8 877,69 liabilities 2 279,31 1 868,50 2 065,45 2 664,43 8 877,69 Total 2006 0,00 410,80 385,12 – 795,93 0,00 2005 assets 2 355,51 2 279,31 928,96 1 582,59 7 146,37 liabilities 2 279,31 1 582,59 2 065,45 1 219,01 7 146,37 Total 2005 76,20 696,71 –1 136,49 363,58 0,00

Cash and cash equivalents

(6) STABEX SECURITY ACCOUNTS

This heading shows the cash balance remaining on the security STABEX accounts opened in the name of the various beneficiary States. The breakdown by country is shown in table 6:

Table 6

(EUR million) FED Balance at 31/12/2005 Interest Payments Balance at 31/12/2006 BENIN 8th 0,05 0,00 0,00 0,05 BURKINA FASO 8th 0,76 0,02 0,00 0,78 BURUNDI 7th/8th 26,40 0,74 0,51 26,62 CAMEROUN 8th 5,37 0,15 0,00 5,52 COMORES 8th 0,05 0,00 0,00 0,06 DOMINICA 8th 5,28 0,15 5,17 0,26 ETHIOPIA 8th 0,90 0,03 0,00 0,93 GAMBIA 8th 1,00 0,03 0,00 1,03 GRENADA 8th 0,33 0,01 0,00 0,34 GUINEA-BISSAU 8th 0,33 0,01 0,00 0,34 COTE D'IVOIRE 8th 42,83 1,05 28,03 15,85 JAMAICA 8th 0,58 0,02 0,00 0,60 MADAGASCAR 8th 13,81 0,37 13,53 0,65 MALAWI 8th 0,91 0,03 0,00 0,94 MAURITANIA 8th 17,72 0,50 0,00 18,22 PAPUA-NEW GUINEA 8th 0,66 0,02 0,00 0,68 RWANDA 8th 5,73 0,16 0,00 5,89 SENEGAL 8th 10,05 0,28 0,00 10,33 SIERRA LEONE 8th 3,05 0,09 0,00 3,13 SAINT LUCIA 8th 13,67 0,38 0,00 14,05 SOLOMON ISLANDS 8th 14,03 0,10 14,06 0,08 SUDAN 7th/8th 150,56 3,96 100,00 54,52 ST VINCENT & GRENADINES 8th 3,94 0,11 0,00 4,05 TANZANIA 8th 30,86 0,50 17,36 14,00 TONGA 8th 0,09 0,00 0,00 0,09 UGANDA 8th 20,12 0,47 10,87 9,72 ZIMBABWE 8th 2,82 0,08 0,00 2,90 Total STABEX 371,88 9,24 189,52 191,60

The balance on the stabex security accounts represents the total of STABEX funds available and which will be transferred to the relevant beneficiary ACP State at a future date. This total amount concerns the 8th EDF, with the exception of 8,23 EUR millions allocated to Burundi and 2,51 EUR millions allocated to Sudan, which fell under the 7th EDF.

In addition to these funds, there are other STABEX funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State have reached agreement on how the STABEX funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé IV Agreement (6) (as revised), the funds are transferred into an interest bearing double signature account (Commission official and Beneficiary State) opened in the name of the ACP State. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended. The funds are the property of the ACP State and as such are not recorded as assets in the EDF Annual Accounts. Details on these accounts are however provided in the annual EDF Financial Management Report.

(7) SPECIAL D.R. CONGO ACCOUNT

This balance represents the amounts available for D.R. Congo in accordance with the provisions of Council Decision 2003/583/EC (7).

(8) CASH AT BANKS

In accordance with Article 129 of the 9th EDF Financial Regulation the treasury is presented in the balance sheet of the 9th EDF. Table 7 shows the breakdown of total cash at bank:

Table 7

(EUR million) Cash and cash equivalents Notes Balance at 31/12/2006 Balance at 31/12/2005 Treasury accounts 8.1 3,55 1,53 ACP Paying Agents 8.2 59,37 47,86 EUR Paying Agents 8.3 21,29 207,99 STABEX current account 8.4 12,17 12,17 Funds en route 8.5 0,10 1,00 Total 96,48 270,55

(8.1) Treasury accounts

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

(8.2) ACP paying agents

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

(8.3) EUR paying agents

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

(8.4) STABEX current account

This amount represents the cash balance remaining on the STABEX main account. 8,47 EUR millions will be made available for Togo by way of transfer to a security account, once instructions have been received from the Authorising Officer. The remaining amount of 3,69 EUR millions will be reversed to the general long term development reserve in the course of 2007.

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

(8.5) Funds en route

Some replenishment sent before the year end were only registered by the beneficiary bank in 2007.

Current liabilities

(9) ACCOUNTS PAYABLE

The total creditor balance is detailed in table 8:

Table 8

(EUR million) Accounts payable notes 6th EDF 7th EDF 8th EDF 9th EDF Total at 31/12/2006 Total at 31/12/2005 Contributions received in advance 9.1 3,49 3,49 1,40 Liaison a/c with the General Budget 9.2 –49,73 –49,73 119,23 Provision for bank charges 9.3 –0,02 –0,02 0,02 Accrued expenditure 92,62 651,73 1 397,75 2 142,10 1 365,10 Non finalised payments 9.4 4,02 26,58 79,69 110,29 22,81 Eligibility to be confirmed 9.5 9,31 42,99 54,89 107,19 116,32 Invoices to be received 9.6 79,29 582,17 1 263,17 1 924,62 1 225,97 Total 0,00 92,62 651,73 1 351,49 2 095,84 1 485,75

(9.1) Contributions received in advance

Certain contributions were paid in advance by Member States, as shown in table 8.1:

Table 8.1

(EUR million) Contributions received in advance Balance at 31/12/2006 Balance at 31/12/2005 Ireland 3,49 1,40 Total 3,49 1,40

(9.2) Liaison account with the General Budget

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

(9.3) Provisions for bank charges

This amount is made up of transactions relating to bank charges for the year ended 31 December 2006, which were debited to the relevant bank accounts after the year end.

Accrued expenditure

The accounting information provided by the present IT accounting system (OLAS) has been adjusted in order to provide figures which comply with accrual accounting principles. Additional information has been provided by the Authorising Officer. This item includes non finalized payments, eligibility to be confirmed and an estimation of invoices to be received based in the degree of advancement of projects.

(9.4) Non finalized payments

These are payments authorised before 31 December 2006 but executed by the bank in 2007. The amounts registered in the accounts of the Authorising Officer are shown in table 8.2.

Table 8.2

(EUR million) Non finalised payments 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31/12/2006 4,02 26,58 79,69 110,29 Total at 31/12/2005 1,17 2,67 13,42 5,54 22,81 Increase –1,17 1,35 13,16 74,14 87,48

(9.5) Eligibility to be confirmed

These are invoices which arrived before the end of the financial year 2006 but which had still not been analysed at 31.12.2006. The amounts registered in the accounts of the Authorising Officer are shown in table 8.3.

Table 8.3

(EUR million) Eligibility to be confirmed 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31/12/2006 9,31 42,99 54,89 107,19 Total at 31/12/2005 1,14 11,62 50,14 53,43 116,32 Increase –1,14 –2,31 –7,15 1,46 –9,13

(9.6) Invoices to be recieved

These figures reflect expenditure which has been incurred but has not yet been invoiced (e.g. work in progress on capital projects). The amounts estimated by the Authorising Officer are shown in table 8.4.

Table 8.4

(EUR million) Invoices to be received 6th EDF 7th EDF 8th EDF 9th EDF Total Total at 31/12/2006 79,29 582,17 1 263,17 1 924,62 Total at 31/12/2005 36,45 133,92 547,61 507,99 1 225,97 Increase –36,45 –54,64 34,56 755,18 698,65

Funds and Reserves

(10) CALLED FUND CAPITAL

Details of this heading are provided in table 9:

Table 9

(EUR million) 6th EDF 7th EDF 8th EDF 9th EDF Total EDF Capital 2006 Funds Capital(a) 7 560,00 10 940,00 12 840,00 11 659,15 42 999,15 Uncalled funds (b) 1 545,00 11 554,15 13 099,15 Called fund capital (a)-(b) 7 560,00 10 940,00 11 295,00 105,00 29 900,00 Capital 2005 Funds Capital(a) 7 560,00 10 940,00 12 840,00 11 537,15 42 877,15 Uncalled funds (b) 4 055,00 11 432,15 15 487,15 Called fund capital (a)-(b) 7 560,00 10 940,00 8 785,00 105,00 27 390,00

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

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

Article 2(2) of the Internal Agreement for the 9th EDF set a 1 000 EUR millions reserve. 250 EUR millions were released in 2004 following the adoption of Council Decision 2004/289/CE in order to establish a water facility. A further 627 EUR millions were released during 2005 following decisions no 6/2005 (8) and 7/2005 (9) of the ACP-EC Council of Ministers of 22/11/2005. During 2006 and after the adoption of the corrigendums to Council decisions no 6/2005 (10) and 7/2005 (9) of the ACP-EC Council of Ministers, 122 EUR millions were released. The remaining amount will be released in 2007.

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

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

Contributions are still being called up from the 8th EDF, with the sole exception of the 105 EUR millions in favour of the Democratic Republic of the Congo called in from the 9th Fund. In 2005 Member States decided on a transfer of 20 EUR millions from the EIB's EDF treasury to the Commission's EDF treasury with a consequent reduction of the overall amount of the contributions due from Member States. Details of amounts called up and received during the year are shown in table 1 (see note 1).

(11) CUMULATIVE RESERVES — RESULTS CARRIED FORWARD FROM PREVIOUS YEARS

The cumulative reserves include the results carried out from previous years and the net economic result for the year (see economic outturn account). Tables 10 and 10.1 below sumarize the cumulative reserves until 31/12/2004 (see also notes to the economic outturn account).

Table 10

(EUR million) Cumulative reserves at 31/12/2004 6th EDF 7th EDF 8th EDF 9th EDF Balance at 31/12/2004 Cumulative interest at 31/12/2004 37,78 400,74 72,04 9,02 519,58 — Cumulative payments at 31/12/2004 7 312,25 9 849,57 7 531,11 1 225,49 25 918,42 — Provisions 0,01 0,01 0,02 Accrual adjustments 31,39 214,86 495,98 395,54 1 137,77 Total –7 243,09 –9 233,99 –6 963,08 – 820,93 –24 261,09





Table 10.1

(EUR million) Cumulative interest up to 31/12/2004 6th EDF 7th EDF 8th EDF 9th EDF Total at 31/12/2004 Capitalised interest 13,70 49,00 35,45 1,80 99,95 STABEX interest 24,08 319,89 343,97 EIB interest 3,41 0,12 3,53 European banks interest 22,47 4,45 26,92 Interest late contributions 5,96 1,86 0,73 8,56 Interest income STABEX security accounts 34,73 34,73 Interest income special Congo contribution 1,92 1,92 Total 37,78 400,74 72,04 9,02 519,58

(12) RESERVES

This heading includes the replenishment of STABEX resources under the 6th EDF, and the resources transferred from other EDFs, as shown in table 11.

Table 11

(EUR million) Reserves 6th 7th 8th 9th Balance at 31/12/2004 Transfers to/from other EDFs – 343,53 – 473,06 –1 319,54 2 984,87 848,74 Replenishment of STABEX resources 185,10 185,10 Total – 158,43 – 473,06 –1 319,54 2 984,87 1 033,84

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

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the 9th EDF after decommitment. The resources transferred from other EDFs increase the appropriation of the receiving fund and reduce that of the Fund of origin. The total balance is shown in table 11.1 below.

Table 11.1

(EUR million) Inter-EDF transfers 6th EDF 7th EDF 8th EDF 9th EDF Consolidate Total at 31/12/2006 To/from 4th EDF 144,32 144,32 To/from 5th EDF 177,63 526,78 704,41 To/from 6th EDF 181,76 94,00 490,36 766,12 766,12 To/from 7th EDF – 181,76 532,82 861,54 1 212,59 1 212,59 To/from 8th EDF –94,00 – 532,82 2 504,67 1 877,85 1 877,85 To/from 9th EDF – 490,36 – 861,54 –2 504,67 –3 856,56 –3 856,56 Total – 444,16 – 685,81 –1 877,85 3 856,56 0,00 848,74

Notes to the Economic Outturn Account

(13) ADMINISTRATIVE EXPENDITURE

This heading includes administrative and financial expenditure financed by bank interest. Under the 8th and 9th EDF it includes expenditure related to the devolution process in application of the provisions of articles 1.3, 4 and 9 of the Internal Agreement. The breakdown of this expenditure is shown in table 12.

Following Council Decision 599 on 21st June 2005, a complementary amount of 90 EUR millions from the intra ACP allocation has been reallocated to finance devolution. In 2006, expenditure for personnel and infrastructure costs in this heading amounted to 62,9 EUR millions.

Table 12

(EUR million) Administrative and financial costs Balance at 31/12/2005 Expenditure 2006 Balance at 31/12/2006 6th EDF 8th EDF 9th EDF Total 6th EDF 8th EDF 9th EDF Total 6th EDF 8th EDF 9th EDF Total Financial costs 0,12 0,17 0,28 0,00 0,01 0,01 0,12 0,17 0,29 Interest on late payments 0,11 0,11 0,11 0,11 Year end re-evaluations 4,24 0,21 4,44 0,14 0,14 4,24 0,34 4,58 Financial costs related to Study grants management 0,01 0,01 0,01 0,01 Total Financial Costs 4,47 0,00 0,37 4,84 0,00 0,00 0,14 0,14 4,47 0,00 0,51 4,99 Service contracts 0,43 0,43 0,43 0,43 Other costs 0,39 1,06 6,40 7,86 2,42 2,42 0,39 1,06 8,82 10,28 Audit and evaluation 2,59 2,19 4,78 0,48 0,48 2,59 2,67 5,26 Technical assistance 4,79 0,32 5,11 –0,02 –0,02 4,79 0,30 5,09 Consultancy 1,80 1,80 1,80 1,80 Personnel costs 13,17 35,60 48,77 0,00 0,00 13,17 35,60 48,77 Infrastructure costs 8,00 61,78 69,78 8,00 61,78 69,78 Individual Experts 0,77 3,40 4,17 0,18 0,74 0,92 0,95 4,14 5,09 Training 0,76 0,76 2,37 2,37 3,13 3,13 IT 0,66 0,66 0,26 0,26 0,92 0,92 Total Administrative Costs 3,42 31,79 108,91 144,12 0,00 0,66 5,77 6,43 3,42 32,45 114,68 150,55 Total 7,89 31,79 109,28 148,96 0,00 0,66 5,91 6,58 7,89 32,45 115,19 155,54

(14) TOTAL EXPENDITURE (CASH BASIS)

These amounts represent total payments for the Fund(s) in question during the 2006 financial year on a cash accounting basis, including advance payments and recoveries. Cumulative figures are shown in the Report on Financial Implementation prepared by the Authorising Officer.

(15) ACCRUAL ADJUSTMENTS

Total expenditure has been restated to comply with the international accounting standard, IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer. The breakdown is shown in table 13.

Table 13

(EUR million) Accrual adjustments annual increase 2006 Notes 6th EDF 7th EDF 8th EDF 9th EDF Increase 2006 — Pre-financing 3 –47,67 –84,01 – 104,09 817,23 581,46 — Financial charges 18 0,00 –0,14 –0,14 Accrued expenditure –38,77 –55,59 40,56 830,79 777,00 Non finalised payments 9.4 –1,17 1,35 13,16 74,14 87,48 Eligibility to be confirmed 9.5 –1,14 –2,31 –7,15 1,46 –9,13 Invoices to be received 9.6 –36,45 –54,64 34,56 755,18 698,65 Total accruals 8,90 28,42 144,65 13,42 195,39

(16) TOTAL EXPENDITURE ON AN ACCRUAL BASIS

Project expenditure by Fund for 2006 has been restated in accordance with the relevant international accounting standards. The expenditure for each aid instrument will be presented on an accrual basis as and from the 2008 financial year, once the accounts have been migrated to the new IT (ABAC) system.

(17) FINANCIAL INCOME

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

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

Table 14

(EUR million) Interest earned during 2006 notes 8th EDF 9th EDF total at 31/12/2006 total at 31/12/2005 EIB interest 17.1 10,56 10,56 0,23 European banks interest 17.1 11,44 11,44 13,70 Interest on recovery orders 17.2 0,00 0,00 0,12 Interest income on the STABEX security accounts 17.3 9,13 9,13 8,84 Interest income on the special D.R. Congo contribution 17.3 0,49 0,49 1,07 Total interest 9,13 22,49 31,61 23,95

(17.1) EIB interest and European banks interest

The interest earned on accounts with European paying agents (including the main STABEX account) can be used to finance projects in accordance with Articles 1.3 and 9 of the Internal Agreement.

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

(17.2) Interest on late payment of recovery orders

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

(17.3) Interest income, STABEX security accounts and the Special D. R. Congo account

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

(18) FINANCIAL CHARGES

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

1.11. RESTATEMENT OF CERTAIN FIGURES FOR 2005

Certain figures for 2005 have been restated in order to comply with the generally accepted accounting principle ‘Comparability of information’ and to implement International Accounting Standard, IPSAS no. 3.

A change in accounting policy was adopted during 2003 in relation to Stabex expenditure. In prior years amounts transferred to the Stabex security accounts had been booked as if they were payments and thus expensed in the income and expenditure account.

However, in view of the fact that the Stabex security accounts are bank accounts under the sole control of the Accounting Officer, it was considered more appropriate not to classify these transfers as expenditure in the accounts and to amend previous transactions accordingly.

As from 2003 and during the reclassification period, the STABEX deferred expenditure represented the total of STABEX funds transferred to the security accounts to be transferred to the relevant beneficiary ACP State at some future date. This liability to the beneficiary ACP State was included as account payable in the balance sheet.

The reclasification of these transactions was finalized in 2005. Thus the deferred expenditure and its countepart as accounts payable should not have been included in the balance sheet for the financial year 2005.

The restatement has no efect in the net assets, as set out in the table below:

Table 15

(EUR million) Notes Restated closing balance 2005 correction balance as originally shown in 2005 accounts CURRENT ASSETS Contributions to be received 1 13,72 0,00 13,72 Debtors 2 138,77 0,00 138,77 Net Pre-financing 3 2 304,20 0,00 2 304,20 Other current assets 4 3,31 0,00 3,31 Deferred expenses 0,00 – 393,19 393,19 Liaison accounts 5 0,00 0,00 0,00 Cash and cash equivalents 662,10 0,00 662,10 STABEX security accounts 6 371,88 0,00 371,88 D.R. Congo special fund 6 19,67 0,00 19,67 Cash at bank 7 270,55 0,00 270,55 Total assets 3 122,10 – 393,19 3 515,29 CURRENT LIABILITIES Accounts payable 8 1 485,75 – 393,19 1 878,94 Liaison accounts 5 0,00 0,00 0,00 Total liabilities 1 485,75 – 393,19 1 878,94 Net assets 1 636,35 0,00 1 636,35 FUNDS & RESERVES Called fund capital 9 27 390,00 0,00 27 390,00 Results carried forward from previous years 10 –24 261,09 0,00 –24 261,09 Result for the year –2 526,40 0,00 –2 526,40 Reserves 11 1 033,84 0,00 1 033,84 Funds & reserves 1 636,35 0,00 1 636,35

1.12. OFF BALANCE ITEMS

Guarantees are held to secure pre-financing and released when the final claim under a project is paid. In accordance with the ‘Prudence’ concept and in compliance with the provisions of IPSAS 19, Contingent Assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency.

As some errors were fund in the data registered in 2005. Table 16 shows the revised figures for guaranties held at the end of 2005 financial year. The total amount registered by the Authorising Officer at the end of 2006 is shown in table 17.

Table 16

Guarantees On pre-financing On guarantee withholding On performance Total 31/12/2005 6th EDF 4,63 0,05 1,34 6,01 7th EDF 66,34 24,47 39,49 130,30 8th EDF 211,14 49,36 100,36 360,86 9th EDF 117,00 31,19 31,74 179,93 Total 399,10 105,07 172,93 677,10





Table 17

Guarantees On pre-financing On guarantee withholding On performance Total 31/12/2006 6th EDF 7th EDF 58,51 21,78 31,41 111,70 8th EDF 195,82 39,79 73,09 308,71 9th EDF 195,83 43,82 62,97 302,62 Total 450,16 105,38 167,48 723,02

2. REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

Previous EDFs

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

Commission Decision 410/2001 of 16 March 2001, which fixes the allocations for the indicative programmes of the ACP countries under the ACP-EC Partnership Agreement, stipulates that the unallocated resources from previous EDFs up to a maximum of 1.2 billion are to be used for implementation in accordance with the rules and procedures of the relevant EDFs. pending the entry into force of the Financial Protocol to the 9th EDF.

Commission Decision No 1033/2001 of 15 June 2001 fixed the allocations for regional programmes and intra-ACP cooperation under the Financial Protocol to the ACP-EC Partnership Agreement.

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

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

As last year, to ensure transparency in the presentation of the accounts the various tables below set out separately for each of the 6th, 7th and 8th EDFs the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Entry in the accounts and the presentation of accounts in connection with the Cotonou Agreement is based on Article 3(2) of Annex IV to the ACP-EC Partnership Agreement, as regards countries. That Article gives the ACP countries an allocation A to cover macroeconomic support and support for programmes and projects and an allocation B to cover unforeseen needs such as emergency assistance, debt relief initiatives and support to offset the adverse effects of instability in export earnings (11). For the regions, the accounts are set out according to the regional programming as referred to in Chapter 2 of the ACP-EC Partnership Agreement (i.e. regional indicative programmes and intra-ACP cooperation).

6th EDF

Given the progress made, the Commission has decided to close the 6th EDF on 31 July 2006 (Decision PE/2006/1669 of 31 August 2006).

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

The final amount of the 6th EFD is set at €7 338 721 709,34, out of an updated pre-closure allocation of €7 390 827 625,32. At 31 July 2006 implementation of the allocation stood as follows: financing decisions (projects) €7 390 827 625,32 (100 %), individual commitments (contracts) €7 364 906 152,14 (99,64 %), and payments €7 338 721 709,34 (99,29 %).

The ‘to be executed’ balance at closure, transferred to the 9th EDF, is €52 105 millions; this is made up of €26 184 million of outstanding payments and €25 921 million of non-committed balance and concerns a portfolio of 86 projects and 193 individual commitments transferred to the 9th EDF.

Indicative programmes (subsidies and special loans) €48 099 835,28 Non-programmable aid (aid for refugees and risk capital) €3 662 617,80 Unexpended balances (4th EDF) €343 462,90

The annual figures for the 6th EDF are presented in the 2006 annual accounts under the 6th EDF for the period 1 January to 31 July 2006 and under the 9th EDF for the period 1 August to 31 December 2006.

9th EDF

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

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

The Cotonou Agreement was concluded for a twenty-year period with a review clause and a Financial Protocol for each five-year period. For the first Financial Protocol (financed by the 9th EDF), once the unexpended balances of previous EDFs (12) have been taken into account, the Agreement will cover the period up to the end of 2007 (13); for the second Financial Protocol (to be financed by the 10th EDF), it may be amended (and will in fact cover six years (14)).

The 9th EDF was set at €13 800 million, including €13 500 million allocated to the ACP States in accordance with the first Financial Protocol included in the Cotonou Agreement, €175 million allocated to the OCT (provided for by the EU Council Decision on the association of the OCT) and €125 million reserved for the European Commission to cover expenses in connection with implementing the 9th EDF resources (provided for in the internal agreement for the 9th EDF).

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

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

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

Of the total 9th EDF budget for the ACP States, €1 000 million was released in 2004 and 2005 after examination by the EU Council, on the basis of a proposal from the European Commission:

— €250 million were released in accordance with Council Decision 2004/289/EC of 22 March 2004 and allocated to the Intra-ACP Fund (natural resources) to finance the Water Facility operation.

— €18 million were released in accordance with Council Decision 10 752/05 of 19 July 2005 and allocated to the envelope for long-term development support to cover the financing of the National Indicative Programme of Timor-Leste for the period 2006-2007.

— €482 million were released in accordance with ACP-EC Council of Ministers Decision No 6/2005 of 22 November 2006 and allocated to the envelope for long-term development support (€352 million), the envelope for regional cooperation and integration (€48 million) and the Investment Facility (€82 million). These resources were released to contribute to financing of the EU Energy Initiative (€220 million), the International Commodity Risk Management Financing Facility (€25 million), adaptation to the new EU feed and food sanitary and phytosanitary rules (€30 million), strengthening the African Union (€50 million), the ‘Education for All’ Fast Track Initiative (€63 million), tackling HIV/AIDS, tuberculosis and malaria (€62 million), and the operating costs of the CDE/CTA (€32 million).

— €250 million were released in accordance with ACP-EC Council of Ministers Decision No 7/2005 of 22 November 2005 and the corrigendum of 1 February 2006 and allocated to the envelope for long-term development support (€185 million), the envelope for regional cooperation and integration (€24 million) and the Investment Facility (€41 million). These resources were released to finance the Water Facility operation.

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

(EUR) 9th EDF allocation Reduction/conditional billion Unopened allocations (EIB-managed) Open allocations OLAS (EC-managed) Long-term development budget 10 000 000 000 (1 000 000) (15) (186 850 000) (interest rate subsidies) 9 812 150 000 Regional budget 1 300 000 000 1 300 000 000 Investment facility 2 200 000 000 (2 037 000 000) 163 000 000 Total 13 500 000 000 (1 000 000) (2 223 850 000) 11 275 150 000

Council Decision 2005/599/EC of 21 June 2005 allocated €90 millions to the intra-ACP allocation for devolution financing.

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

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

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

Also, under Commission Decision E/982/2003 of 16 June 2003, any balances remaining from previous EDFs on the date of entry into force of the Cotonou Agreement and any amounts decommitted at a later date from ongoing projects under those Funds, were transferred to the 9th EDF. Any resource thus transferred to the 9th EDF after previously having been allocated to the indicative programme of an ACP State or region has been allocated to that State or region. On the other hand, the unallocated resources have been transferred to reserves which will be subject to new programming under the 9th EDF.

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

2.1. APPROPRIATIONS AT 31.12.2006

Table 1.1

6th EDF

Situation of appropriations (EUR): 31 December 2006

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2005 Increases or reductions in resources during 2006 Current appropriation ACP Lomé Grants 4 362,50 (37,83) (62,52) 4 262,15 Special loans 600,00 (169,51) (0,23) 430,26 Interest-rate subsidies 207,50 (126,10) 0,00 81,40 Emergency aid 210,00 (30,61) 0,00 179,39 Aid for refugees 80,00 14,72 (0,05) 94,67 Risk capital 600,00 (70,30) (3,61) 526,09 Stabex 925,00 522,12 0,00 1 447,12 Sysmin 415,00 (281,53) (6,37) 127,10 Transfer 4th EDF — 6th EDF 0,00 89,15 (2,07) 87,09 Structural adjustment 0,00 5,33 0,00 5,33 Intra ACP Allocation 0,00 10,00 0,00 10,00 General reserve 0,00 0,00 0,00 0,00 TOTAL ACP 7 400,00 (74,55) (74,84) 7 250,61 OCT Grants 48,50 1,27 (1,20) 48,57 Special loans 25,00 (10,02) 0,00 14,98 Interest-rate subsidies 2,50 0,10 0,00 2,60 Emergency aid 3,00 (2,49) 0,00 0,51 Aid for refugees 1,00 (1,00) 0,00 0,00 Risk capital 15,00 (0,38) 0,00 14,62 Stabex 4,00 0,00 0,00 4,00 Sysmin 1,00 0,00 0,00 1,00 Transfer 4th EDF — 6th EDF 0,00 1,85 (0,02) 1,83 TOTAL OCT 100,00 (10,67) (1,22) 88,11 TOTAL 6th EDF 7 500,00 (85,22) (76,06) 7 338,72

Table 1.2

6th EDF

Situation of appropriations: 31 December 2006

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou General Reserve Total ACP Grants Special loans Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 4th EDF — 6th EDF Structural adjustment Intra ACP Situation at 31.12.2005 4 324,67 430,49 81,40 179,39 94,72 529,70 1 447,12 133,47 89,15 5,33 10,00 0,00 7 325,45 (16) (62,52) (0,23) 0,00 (0,05) (3,61) (6,37) (2,07) 0 (74,84) Situation at 31.12.2006 4 262,15 430,26 81,40 179,39 94,67 526,09 1 447,12 127,10 87,09 5,33 10,00 0,00 7 250,61





OCT Grants Special loans Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 4th EDF — 6th EDF Total OCT Situation at 31.12.2005 49,77 14,98 2,60 0,51 0 14,62 4,00 1 1,85 89,33 (16) (1,20) (0,02) (1,22) Situation at 31.12.2006 48,57 14,98 2,60 0,51 0 14,62 4,00 1,00 1,83 88,11

Table 1.3

7th EDF

Situation of appropriations (EUR): 31 December 2006

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2005 Increases or reductions in resources during 2006 Current appropriation ACP Lomé Grants 6 215,00 (775,95) (108,64) 5 330,40 Interest-rate subsidies 280,00 (79,85) (1,66) 198,49 Emergency aid 250,00 153,35 0,00 403,35 Aid for refugees 100,00 (15,50) (0,55) 83,95 Risk capital 825,00 (8,15) (0,33) 816,51 Stabex 1 500,00 196,69 0,00 1 696,69 Sysmin 480,00 (33,90) (5,49) 440,61 Transfer 5th EDF — 7th EDF 0,00 321,52 (8,67) 312,85 Structural adjustment 1 150,00 (0,83) 0,00 1 149,17 Heavily indebted poor countries 0,00 40,00 0,00 40,00 Intra ACP Allocation 0,00 50,00 0,00 50,00 General reserve 0,00 0,00 0,00 TOTAL ACP 10 800,00 (152,61) (125,35) 10 522,04 OCT Grants 97,50 (10,86) (1,07) 85,58 Interest-rate subsidies 6,00 (1,82) 0,00 4,18 Emergency aid 2,50 (0,24) 0,00 2,26 Aid for refugees 0,50 (0,21) 0,00 0,29 Risk capital 25,00 (2,51) 0,00 22,49 Stabex 6,00 0,00 0,00 6,00 Sysmin 2,50 0,00 0,00 2,50 Transfer 5th EDF — 7th EDF 0,00 9,83 (0,25) 9,58 TOTAL OCT 140,00 (5,80) (1,32) 132,88 TOTAL 7th EDF 10 940,00 (158,41) (126,67) 10 654,92

Table 1.4

7th EDF

Situation of appropriations: 31 December 2006

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou General reserve Total ACP Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 5th EDF — 7th EDF Structural adjustment Heavily indebted poor countries Intra Acp Situation at 31.12.2005 5 439,05 200,15 403,35 84,50 816,85 1 696,69 446,10 321,52 1 149,17 40,00 50,00 0,00 10 647,39 (17) (108,64) (2) 0,00 (0,55) (0,33) 0,00 (5,49) (8,67) 0,00 0,00 0,00 0,00 (125,35) Situation at 31.12.2006 5 330,4 198,5 403,3 84,0 816,5 1 696,7 440,6 312,9 1 149,2 40,0 50,0 0,00 10 522,04





OCT Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Transfer 5th Edf — 7th Edf Total OCT Situation at 31.12.2005 86,64 4,18 2,26 0,29 22,49 6,00 2,50 9,83 134,20 (17) (1,07) 0,00 0,00 0,00 0,00 0,00 0,00 (0,25) (1,32) Situation at 31.12.2006 85,58 4,18 2,26 0,29 22,49 6,00 2,50 9,58 132,88

Table 1.5

8th EDF

Situation of appropriations (EUR): 31 December 2006

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2005 Increases or reductions in resources during 2006 Current appropriation ACP Lomé Grants 7 562,00 (1 997,12) (173,27) 5 391,61 Interest-rate subsidies 370,00 (268,55) (6,89) 94,56 Emergency aid 140,00 (2,59) (0,88) 136,52 Aid for refugees 120,00 (2,76) (0,63) 116,60 Risk capital 1 000,00 150,48 (22,71) 1 127,77 Stabex 1 800,00 (1 092,96) 9,13 716,17 Sysmin 575,00 (463,26) 0,00 111,74 Structural adjustment 1 400,00 173,33 (58,78) 1 514,55 Heavily indebted poor countries 0,00 1 060,00 0,00 1 060,00 Utilisation of interest income 0,00 38,15 (0,77) 37,38 Cotonou A envelop 0,00 442,09 (8,50) 433,59 B envelop 0,00 255,00 (0,42) 254,58 Regional 0,00 0,00 0,00 0,00 TOTAL ACP 12 967,00 (1 708,20) (263,73) 10 995,07 OCT Grants 115,00 (69,53) (1,56) 43,91 Interest-rate subsidies 8,50 (7,36) 0,00 1,14 Emergency aid 3,00 (3,00) 0,00 0,00 Aid for refugees 0,50 (0,50) 0,00 0,00 Risk capital 30,00 (23,50) 0,00 6,50 Stabex 5,50 (4,32) 0,00 1,18 Sysmin 2,50 0,00 (0,01) 2,49 TOTAL OCT 165,00 (108,21) (1,57) 55,22 TOTAL 8th EDF 13 132,00 (1 816,41) (265,29) 11 050,29

Table 1.6

8th EDF

Situation of appropriations: 31 December 2006

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou TOTAL ACP Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital Stabex Sysmin Structural adjustment Heavily Indebted poor countries Utilisation of interest income A envelop B envelop Regional Situation at 31.12.2005 5 564,88 101,45 137,41 117,24 1 150,48 707,04 111,74 1 573,33 1 060,00 38,15 442,09 255,00 0,00 11 258,80 (17) (173,27) (6,89) (0,88) (0,63) (22,71) 0,00 (58,78) 0,00 (0,77) (8,50) (0,42) 0,00 (272,85) (18) 9,13 9,13 Situation at 31.12.2006 5 391,61 94,56 136,52 116,60 1 127,77 716,17 111,74 1 514,55 1 060,00 37,38 433,59 254,58 0,00 10 995,07





OCT Grants Interest rate subsidies Emergency Aid Aid for refugees Risk capital Stabex Sysmin Heavily indebted poor countries TOTAL OCT Situation at 31.12.2005 45,47 1,14 0,00 0,00 6,50 1,18 2,50 0,00 56,79 (17) (1,56) 0,00 0,00 0,00 0,00 0,00 (0,01) 0,00 (1,57) Situation at 31.12.2006 43,91 1,14 0,00 0,00 6,50 1,18 2,49 0,00 55,22

Table 1.7

9th EDF

Situation of appropriations (EUR): 31 December 2006

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2005 Increases or reductions in resources during 2006 Current appropriation ACP A envelope 5 318,30 3 499,76 362,19 9 180,25 B envelope 2 107,90 (811,37) 178,77 1 475,30 National allocations reserve 1 224,10 (790,90) (304,40) 128,80 CDE, CTA and Joint Assembly 164,00 (57,01) 34,03 141,02 Long-term dev. reserve 257,85 545,70 (605,81) 197,75 Regional allocations 904,00 52,85 (4,08) 952,77 Intra-ACP 300,00 1 645,23 896,29 2 841,52 Implementation costs 125,00 0,00 0,00 125,00 Interest and other receipts 0,00 52,51 23,96 76,47 Special allocation Congo 0,00 107,99 0,49 108,47 Transfer 6th — 9th EDF 0,00 0,00 36,14 36,14 TOTAL ACP 10 401,15 4 244,75 617,59 15 263,49 OCT A envelope 207,25 6,60 213,85 Long-term dev. reserve 144,00 (83,27) (3,69) 57,04 Regional allocations 8,00 19,02 0,49 27,51 Technical assistance envelope 2,00 0,00 0,00 2,00 Transfer 6th — 9th EDF 0,00 0,00 0,70 0,70 TOTAL OCT 154,00 143,00 4,11 301,11 TOTAL 9th EDF 10 555,15 4 387,75 621,70 15 564,60

Table 1.8

9th EDF

Situation of appropriations: 31 December 2006

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP A envelope B envelope National allocations reserve CDE, CTA and Joint Assembly Long-term dev. reserve Regional allocations Intra ACP Implementation costs Interets and other receipts Special allocation Congo Transfer 6th — 9th EDF TOTAL ACP Situation at 31.12.2005 8 818,06 1 296,53 433,20 106,99 803,55 956,85 1 945,23 125,00 52,51 107,99 0,00 14 645,90 (17) 246,53 0,42 2,03 109,97 54,17 6,62 1,91 421,65 (19) 115,30 0,00 (115,30) 0,00 (20) (58,67) 58,67 0,00 (21) 18,00 (523,00) 627,00 122,00 (22) (204,00) 204,00 0,00 (23) 32,00 (32,00) 0,00 (24) 22,05 22,05 (25) 0,49 0,49 (26) (18,00) 144,35 (154,00) 27,65 0,00 (27) 12,84 1,99 0,42 36,14 51,40 (28) 34,00 (34,00) 0,00 (29) (53,10) 53,10 0,00 (30) 9,49 (9,49) 0,00 (31) (3,97) 3,97 0,00 0,00 Situation at 31.12.2006 9 180,25 1 475,30 128,80 141,02 197,75 952,77 2 841,52 125,00 76,47 108,47 36,14 15 263,49





OCT A envelope C envelope Long-term dev. reserve Regional allocations Technical assistance envelope Transfer 6th — 9th EDF TOTAL OCT Situation at 31.12.2005 207,25 0,00 60,73 27,02 2,00 0,00 297,00 (17) 2,90 0,01 0,49 0,00 3,40 (32) 0,70 0,70 (33) 3,70 (3,70) 0,00 Situation at 31.12.2006 210,15 3,70 57,04 27,51 2,00 0,70 301,11

Table 1.9

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

Increases, reductions and transfer of resources during 2006

(EUR million) ACP TOTAL 6th EDF TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2005 7 325,45 10 647,39 11 258,80 14 645,90 Transfer to 9th edf following the entry in force of Cotonou (Decision of the Commission of 16 April 2003) (74,84) (125,35) (272,85) 421,65 0,00 Interest earned on Stabex security accounts 9,13 9,13 Release of conditional billion 122,00 122,00 Interets on EDF Funds, 2006 22,05 22,05 Interets on Congo Funds, 2006 0,49 0,49 Transfer to 9th EDF following the 6th EDF closure 51,40 SITUATION AT 31.12.2006 7 250,61 10 522,04 10 995,07 15 263,49 153,67





OCT TOTAL 6th EDF TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2005 89,33 134,20 56,79 297,00 Transfer to 9th edf following the entry in force of Cotonou (Decision of the Commission of 16 April 2003) (1,22) (1,32) (1,57) 3,40 (0,00) Transfer to 9th EDF following the 6th EDF closure 0,70 SITUATION AT 31.12.2006 88,11 132,88 55,22 301,11 (0,00) TOTAL ACP + OCT 7 338,72 10 654,92 11 050,29 15 564,59 153,67 TOTAL TRANSFER TO 9th EDF (76,06) (126,67) (274,42) 425,05 (52,10) Difference on net variation (Transfer due to 6th EDF Closure) 0,00 0,00 0,00 52,10 0,00

2.2. CONSOLIDATED ACCOUNTS

Table 2.1

EDF consolidated accounts at 31.12.2006:

PROGRESS REPORT

(EUR million) Appropriations 6th EDF 7th EDF 8th EDF 9th EDF 6th, 7th, 8th and 9th Lomé Programmable aid 4 755,96 5 415,98 5 435,52 15 607,46 Non-programmable aid 2 483,84 4 866,51 4 889,23 12 239,58 Transfers to other Funds 88,92 322,43 36,85 448,19 Sundry revenue 37,38 37,38 0,00 Cotonou A envelop 433,59 9 390,40 9 823,99 B envelop 254,58 1 479,00 1 733,58 Regional Allocation 980,28 980,28 Intra ACP allocation 10,00 50,00 2 841,52 2 901,52 CDE + CTA and Joint assistance 141,02 141,02 Countries Reserve Cotonou 128,80 128,80 Long-term dev. reserve 254,79 254,79 Special alloc. Decision 4/04 108,47 108,47 Implementation costs and interest 203,47 203,47 Total 7 338,72 10 654,92 11 050,29 15 564,60 44 608,54





(EUR million) EDF Aggregate TOTAL Annual figures As at 31/12/2006 % of appropriation 2002 2003 2004 2005 2006 DECISIONS 6 7 338,72 100 % 2,84 (13,13) (32,24) (24,56) (76,06) 7 10 654,92 100 % 125,99 (2,60) (58,42) (86,09) (126,67) 8 11 050,29 100 % 1 639,56 255,11 (172,26) (275,05) (265,29) 9 12 401,98 80 % 3 156,44 2 638,08 3 420,76 3 186,70 TOTAL 41 445,92 1 768,39 3 395,83 2 375,15 3 035,06 2 718,67 ASSIGNED FUNDS 6 7 338,72 100 % 33,49 30,74 28,68 (1,32) (38,30) 7 10 522,66 99 % 328,12 311,69 121,42 110,52 (6,34) 8 10 449,59 95 % 1 781,30 1 406,57 848,67 471,95 202,48 9 7 726,88 50 % 993,70 1 747,48 2 070,90 2 914,80 TOTAL 36 037,85 2 142,92 2 742,71 2 746,25 2 652,05 3 072,64 PAYMENTS 6 7 338,72 100 % 48,53 47,04 30,00 21,62 4,95 7 10 244,12 96 % 326,12 382,21 234,94 235,31 159,24 8 9 122,03 83 % 1 478,07 1 472,56 985,34 858,47 736,81 9 4 459,85 29 % 277,66 947,56 1 373,70 1 860,93 TOTAL 31 164,72 1 852,72 2 179,47 2 197,84 2 489,10 2 761,93 * Negative figures represent decommitments.

Table 2.2

EDF consolidated accounts at 31.12.2006

CLASS OF AID

(EUR million) 6th EDF % 7th EDF % 8th EDF % 9th EDF % TOTAL % (34) (34) (34) (34) (34) Lomé PROGRAMMABLE AID (NIP) Appropriation 4 755,96 5 415,98 5 435,52 15 607,46 Decisions 4 755,96 100 % 5 415,98 100 % 5 435,52 100 % 15 607,46 100 % Assigned funds 4 755,96 100 % 5 299,73 98 % 5 002,70 92 % 15 058,38 96 % Payments 4 755,96 100 % 5 153,28 95 % 4 233,51 78 % 14 142,75 91 % NON-PROGRAMMABLE AID Appropriation 2 483,84 4 866,51 4 889,23 12 239,58 Decisions 2 483,84 100 % 4 866,51 100 % 4 889,23 100 % 12 239,58 100 % Assigned funds 2 483,84 100 % 4 854,36 100 % 4 840,27 99 % 12 178,47 100 % Payments 2 483,84 100 % 4 730,78 97 % 4 409,83 90 % 11 624,45 95 % TRANSFERS FROM OTHER FUNDS Appropriation 88,92 322,43 36,85 448,19 Decisions 88,92 100 % 322,43 100 % 36,16 98 % 447,50 100 % Assigned funds 88,92 100 % 318,58 99 % 24,53 67 % 432,03 96 % Payments 88,92 100 % 310,06 96 % 4,27 12 % 403,25 90 % SUNDRY REVENUE Appropriation 37,38 37,38 Decisions 37,38 100 % 37,38 8 % Assigned funds 35,03 94 % 35,03 8 % Payments 32,45 87 % 32,45 7 % TOTAL Appropriation 7 328,72 10 604,92 10 362,13 36,85 28 332,62 Decisions 7 328,72 100 % 10 604,92 100 % 10 362,13 100 % 36,16 98 % 28 331,92 100 % Assigned funds 7 328,72 100 % 10 472,66 99 % 9 878,00 95 % 24,53 67 % 27 703,91 98 % Payments 7 328,72 100 % 10 194,12 96 % 8 675,79 84 % 4,27 12 % 26 202,91 92 % Cotonou A Envelop Appropriation 433,59 9 390,40 9 823,99 Decisions 433,59 100 % 7 870,02 84 % 8 303,61 85 % Assigned funds 412,18 95 % 4 866,08 52 % 5 278,25 54 % Payments 372,05 86 % 2 706,23 29 % 3 078,28 31 % B Envelop Appropriation 254,58 1 479,00 1 733,58 Decisions 254,58 100 % 1 059,47 72 % 1 314,04 76 % Assigned funds 159,41 63 % 646,41 44 % 805,82 46 % Payments 74,18 29 % 467,77 32 % 541,96 31 % CDE + CTA and Joint assistance Appropriation 141,02 141,02 Decisions 109,00 77 % 109,00 77 % Assigned funds 106,95 76 % 106,95 98 % Payments 91,84 65 % 91,84 86 % Regional Allocation Appropriation 980,28 980,28 Decisions 741,18 76 % 741,18 76 % Assigned funds 299,23 31 % 299,23 31 % Payments 85,49 9 % 85,49 9 % Intra ACP Allocation Appropriation 10,00 50,00 2 841,52 2 901,52 Decisions 10,00 100 % 50,00 100 % 2 330,29 82 % 2 390,29 82 % Assigned funds 10,00 100 % 50,00 100 % 1 551,15 55 % 1 611,15 56 % Payments 10,00 100 % 50,00 100 % 884,01 31 % 944,01 33 % Special allocation Dec. 4/04 Appropriation 108,47 108,47 Decisions 108,15 4 % 108,15 4 % Assigned funds 107,77 4 % 107,77 4 % Payments 105,05 4 % 105,05 4 % Implementation costs and interest Appropriation 203,47 203,47 Decisions 147,72 73 % 147,72 73 % Assigned funds 124,77 61 % 124,77 61 % Payments 115,19 57 % 115,19 57 % TOTAL Appropriation 10,00 50,00 688,17 15 144,16 15 547,84 Decisions 10,00 100 % 50,00 100 % 688,17 100 % 12 365,83 82 % 13 114,00 84 % Assigned funds 10,00 100 % 50,00 100 % 571,59 83 % 7 702,35 51 % 8 333,94 54 % Payments 10,00 100 % 50,00 100 % 446,23 65 % 4 455,58 29 % 4 961,81 32 % COUNTRIES RESERVE COTONOU 128,80 128,80 REGIONAL RESERVE COTONOU LONG-TERM DEV. RESERVE 254,79 254,79 TOTAL Appropriation 7 338,72 10 654,92 11 050,29 15 564,60 44 608,54 Decisions 7 338,72 100 % 10 654,92 100 % 11 050,29 100 % 12 401,98 80 % 41 445,92 93 % Assigned funds 7 338,72 100 % 10 522,66 99 % 10 449,59 95 % 7 726,88 50 % 36 037,85 81 % Payments 7 338,72 100 % 10 244,12 96 % 9 122,03 83 % 4 459,85 29 % 31 164,72 70 %





Table 2.3

EDF consolidated accounts at 31.12.2006:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 6th EDF

(EUR million) Appropriation Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 4 692,41 4 692,41 (62,75) 100 % 4 692,41 (33,31) 100 % 4 692,41 4,83 100 % Grants 4 262,15 4 262,15 (62,52) 100 % 4 262,15 (33,31) 100 % 4 262,15 4,83 100 % Special loans 430,26 430,26 (0,23) 100 % 430,26 100 % 430,26 100 % Total non-programmable aid 2 461,11 2 461,11 (10,03) 100 % 2 461,11 (3,86) 100 % 2 461,11 0,00 100 % Interest-rate subsidies 81,40 81,40 — 100 % 81,40 100 % 81,40 100 % Emergency aid 179,39 179,39 — 100 % 179,39 100 % 179,39 100 % Aid for refugees 94,67 94,67 (0,05) 100 % 94,67 100 % 94,67 100 % Risk capital 526,09 526,09 (3,61) 100 % 526,09 (3,61) 100 % 526,09 100 % Stabex 1 447,12 1 447,12 100 % 1 447,12 100 % 1 447,12 100 % Sysmin 127,10 127,10 (6,37) 100 % 127,10 (0,25) 100 % 127,10 100 % Structural adjustment 5,33 5,33 100 % 5,33 100 % 5,33 100 % Transfer 4th EDF — 6th EDF 87,09 87,09 (2,07) 100 % 87,09 (0,63) 100 % 87,09 0,15 100 % COTONOU Intra ACP Allocation 10,00 10,00 100 % 10,00 100 % 10,00 100 % General Reserve TOTAL ACP (a) 7 250,61 7 250,61 (74,84) 100 % 7 250,61 (37,80) 100 % 7 250,61 4,99 100 % OCT Total indicative programmes 63,55 63,55 (1,20) 100 % 63,55 (0,49) 100 % 63,55 (0,04) 100 % Grants 48,57 48,57 (1,20) 100 % 48,57 (0,49) 100 % 48,57 (0,04) 100 % Special loans 14,98 14,98 100 % 14,98 100 % 14,98 100 % Total non-programmable aid 22,73 22,73 0,00 100 % 22,73 0,00 100 % 22,73 0,00 100 % Interest-rate subsidies 2,60 2,60 100 % 2,60 100 % 2,60 100 % Emergency aid 0,51 0,51 100 % 0,51 100 % 0,51 100 % Aid for refugees Risk capital 14,62 14,62 100 % 14,62 100 % 14,62 100 % Stabex 4,00 4,00 100 % 4,00 100 % 4,00 100 % Sysmin 1,00 1,00 100 % 1,00 100 % 1,00 100 % Transfer 4th EDF — 6th EDF 1,83 1,83 (0,02) 100 % 1,83 (0,01) 100 % 1,83 100 % TOTAL OCT (b) 88,11 88,11 (1,22) 100 % 88,11 (0,50) 100 % 88,11 (0,04) 100 % TOTAL (a) + (b) 7 338,72 7 338,72 (76,06) 100 % 7 338,72 (38,30) 100 % 7 338,72 4,95 100 %





Table 2.4

EDF consolidated accounts at 31.12.2006:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 7th EDF

(EUR million) Appropriation Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 5 330,40 5 330,40 (108,64) 100 % 5 215,71 (4,05) 98 % 5 071,02 88,07 97 % Total non-programmable aid 4 828,79 4 828,79 (8,03) 100 % 4 816,85 0,26 100 % 4 694,26 69,25 97 % Interest-rate subsidies 198,49 198,49 (1,66) 100 % 198,49 (1,66) 100 % 198,49 (0,01) 100 % Emergency aid 403,35 403,35 100 % 403,28 100 % 403,13 100 % Aid for refugees 83,95 83,95 (0,55) 100 % 83,86 (0,56) 100 % 83,57 (0,18) 100 % Risk capital 816,51 816,51 (0,33) 100 % 816,51 (0,33) 100 % 769,83 5,46 94 % Stabex 1 696,69 1 696,69 100 % 1 696,69 100 % 1 685,95 51,71 99 % Sysmin 440,61 440,61 (5,49) 100 % 429,26 2,81 97 % 364,68 12,25 85 % Structural adjustment 1 149,17 1 149,17 100 % 1 148,75 100 % 1 148,61 0,03 100 % Heavily indebted poor countries 40,00 40,00 100 % 40,00 100 % 40,00 100 % Transfer 5th EDF — 7th EDF 312,85 312,85 (8,67) 100 % 309,74 (2,50) 99 % 301,49 0,78 97 % Sundry Revenue COTONOU Intra ACP Allocation 50,00 50,00 100 % 50,00 0,00 100 % 50,00 100 % General Reserve TOTAL ACP (a) 10 522,04 10 522,04 (125,35) 100 % 10 392,30 (6,28) 99 % 10 116,77 158,11 97 % OCT Total indicative programmes 85,58 85,58 (1,07) 100 % 84,01 (0,26) 98 % 82,26 0,64 98 % Total non-programmable aid 37,73 37,73 0,00 100 % 37,51 0,43 99 % 36,51 0,49 97 % Interest-rate subsidies 4,18 4,18 100 % 4,18 100 % 4,18 100 % Emergency aid 2,26 2,26 100 % 2,26 100 % 2,26 100 % Aid for refugees 0,29 0,29 100 % 0,29 100 % 0,29 100 % Risk capital 22,49 22,49 100 % 22,49 100 % 22,49 100 % Stabex 6,00 6,00 100 % 6,00 100 % 6,00 100 % Sysmin 2,50 2,50 100 % 2,29 0,43 91 % 1,29 0,49 56 % Transfer 5th EDF — 7th EDF 9,58 9,58 (0,25) 100 % 8,84 (0,22) 92 % 8,57 (0,01) 97 % TOTAL OCT (b) 132,88 132,88 (1,32) 100 % 130,37 (0,06) 98 % 127,34 1,13 98 % TOTAL (a) + (b) 10 654,92 10 654,92 (126,67) 100 % 10 522,66 (6,34) 99 % 10 244,12 159,24 97 %





Table 2.5

EDF consolidated accounts at 31.12.2006:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 8th EDF

(EUR million) Appropriation Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOMÉ Total indicative programmes 5 391,61 5 391,61 (173,27) 100 % 4 966,20 217,83 92 % 4 201,35 475,56 85 % Total non-programmable aid 4 915,30 4 915,30 (81,53) 100 % 4 864,35 (37,80) 99 % 4 432,48 208,16 91 % Interest-rate subsidies 94,56 94,56 (6,89) 100 % 94,56 (6,89) 100 % 65,20 1,21 69 % Emergency aid 136,52 136,52 (0,88) 100 % 136,52 (0,31) 100 % 136,52 0,22 100 % Aid for refugees 116,60 116,60 (0,63) 100 % 112,05 (1,31) 96 % 99,23 7,29 89 % Risk capital 1 127,77 1 127,77 (22,71) 100 % 1 127,77 (12,71) 100 % 921,97 57,65 82 % Stabex 716,17 716,17 9,13 100 % 687,30 2,01 96 % 522,54 137,80 76 % Sysmin 111,74 111,74 100 % 106,42 (0,65) 95 % 98,02 2,27 92 % Structural adjustment 1 514,55 1 514,55 (58,78) 100 % 1 504,71 (18,51) 99 % 1 496,56 1,04 99 % Heavily indebted poor countries 1 060,00 1 060,00 0,00 100 % 1 060,00 0,00 100 % 1 060,00 0,00 100 % Utilisation of interest income 37,38 37,38 (0,77) 100 % 35,03 0,58 94 % 32,45 0,66 93 % TOTAL 10 306,90 10 306,90 (254,80) 100 % 9 830,55 180,03 95 % 8 633,84 683,72 88 % COTONOU A Envelop 433,59 433,59 (8,50) 100 % 412,18 14,31 95 % 372,05 30,31 90 % B Envelop 254,58 254,58 (0,42) 100 % 159,41 6,78 63 % 74,18 20,20 47 % Regional allocation 0,00 0,00 0,00 0,00 TOTAL 688,17 688,17 (8,92) 100 % 571,59 21,09 83 % 446,23 50,51 78 % TOTAL ACP (a) 10 995,07 10 995,07 (263,73) 100 % 10 402,14 201,12 95 % 9 080,07 734,23 87 % OCT Total indicative programmes 43,91 43,91 (1,56) 100 % 36,50 0,70 83 % 32,16 1,87 88 % Total non-programmable aid 11,31 11,31 (0,01) 100 % 10,95 0,66 97 % 9,80 0,71 89 % Interest-rate subsidies 1,14 1,14 100 % 1,14 100 % 1,14 100 % Emergency aid Aid for refugees 0,00 0,00 Risk capital 6,50 6,50 100 % 6,50 100 % 6,00 92 % Stabex 1,18 1,18 100 % 1,18 100 % 1,18 100 % Sysmin 2,49 2,49 (0,01) 100 % 2,13 0,66 1,48 0,71 TOTAL OCT (b) 55,22 55,22 (1,57) 100 % 47,45 1,36 86 % 41,96 2,58 88 % TOTAL (a) + (b) 11 050,29 11 050,29 (265,29) 100 % 10 449,59 202,48 95 % 9 122,03 736,81 87 %





Table 2.6

EDF consolidated accounts at 31.12.2006:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 9th EDF

(EUR million) Appropriation Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP A Envelop 9 180,25 7 743,99 1 473,77 84 % 4 758,12 1 596,64 61 % 2 660,73 1 168,43 56 % Macroeconomic support 1 963,92 160,44 1 643,42 299,54 1 186,18 397,51 Sectoral Policies 5 780,07 1 313,33 3 114,70 1 297,10 1 474,55 770,92 B Envelop 1 475,30 1 055,77 342,09 72 % 646,41 172,33 61 % 467,77 133,26 72 % Compensation export earnings 119,64 27,39 90,86 40,05 62,16 15,16 Emergency aid 926,53 317,38 545,94 130,28 396,02 116,11 Heavily indebted poor countries 9,60 (2,68) 9,60 2,00 9,60 2,00 Regional Allocation 952,77 726,86 213,57 76 % 293,06 138,22 40 % 82,93 46,77 28 % Intra ACP Allocation 2 841,52 2 330,29 1 013,86 82 % 1 551,15 837,21 67 % 884,01 423,34 57 % Other 141,02 109,00 4,03 77 % 106,95 37,14 98 % 91,84 30,86 86 % Implementation costs 125,00 117,37 (7,63) 94 % 111,31 (0,91) 95 % 110,49 1,97 99 % Interest and other receipts 76,47 28,35 19,30 37 % 13,16 10,98 46 % 4,41 3,96 33 % Special allocation Congo 108,47 108,15 16,19 100 % 107,77 16,08 100 % 105,05 15,73 97 % Transferts FED 6 36,14 36,14 36,14 100 % 24,52 24,52 68 % 4,35 4,35 18 % TOTAL 14 936,94 12 255,93 3 111,34 82 % 7 612,45 2 832,20 62 % 4 411,58 1 828,68 58 % COUNTRIES RESERVE — COTONOU 128,80 LONG-TERM DEV. RESERVE 197,75 TOTAL ACP (a) 15 263,49 12 255,93 3 111,34 80 % 7 612,45 2 832,20 62 % 4 411,58 1 828,68 58 % OCT A Envelop 210,15 126,03 63,08 60 % 107,95 78,88 86 % 45,49 30,42 42 % Macroeconomic support 10,64 10,64 10,52 10,52 Sectoral Policies 115,39 52,45 97,44 68,37 45,49 30,42 B Envelop 3,70 3,70 3,70 Regional allocation 27,51 14,32 7,22 52 % 6,17 3,79 43 % 2,56 1,93 41 % Support expenditure 2,00 2,00 1,35 100 % 0,30 (0,08) 15 % 0,30 (0,02) 100 % Transferts FED 6 0,70 0,01 0,01 2 % 0,01 0,01 87 % (0,08) (0,08) Long-term development envelope 57,04 TOTAL OCT (b) 301,11 146,06 75,36 49 % 114,43 82,60 78 % 48,27 32,24 42 % TOTAL (a) + (b) 15 564,60 12 401,98 3 186,70 80 % 7 726,88 2 914,80 62 % 4 459,85 1 860,93 58 %





Table 2.7

ANNUAL 2006 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual Decision 2006

(EUR million) Commitments Decommitments Net Lomé Grants 0,00 (300,39) (300,39) Special loans 0,00 0,00 0,00 Total indicative programme 0,00 (300,39) (300,39) Interest rate subsidies 0,00 (8,55) (8,55) Emergency aid 0,00 (0,88) (0,88) Aid for refugies 0,00 (1,19) (1,19) Risk capital 0,00 (23,04) (23,04) Stabex (interets) 9,13 0,00 9,13 Sysmin 0,00 (11,87) (11,87) Transfer from other funds 0,00 (9,19) (9,19) Structural adjustment 0,00 (58,78) (58,78) Fight against aids 0,00 (1,47) (1,47) Total non-programmable aid 9,13 – 114,97 (105,85) Use of interests 0,00 (0,77) (0,77) Transfer from 6th EDF 0,00 (15,95) (15,95) Total 9,13 – 432,08 (422,95) Cotonou A envelop 1 744,05 (215,70) 1 528,35 B envelop 353,70 (8,33) 345,37 CDE + CTA + Joint assembly 4,03 0,00 4,03 Regional allocation 222,79 (2,00) 220,79 Intra ACP allocation 1 036,97 (23,10) 1 013,86 Special Congo allocation 16,19 0,00 16,19 Use of interests/Implem. costs 21,00 (7,98) 13,02 Total 3 398,73 – 257,11 3 141,62 Total 3 407,86 – 689,19 2 718,67





Annual Payments 2006

(EUR million) Paid Recovered (35) Net Lomé Grants 611,98 (41,04) 570,94 Special loans 0,00 0,00 0,00 Total indicative programme 611,98 (41,04) 570,94 Interest rate subsidies 1,60 (0,40) 1,20 Emergency aid 0,25 (0,02) 0,22 Aid for refugies 8,00 (0,89) 7,11 Risk capital 63,11 0,00 63,11 Stabex 189,52 0,00 189,52 Sysmin 15,95 (0,24) 15,72 Transfer from other funds 1,05 (0,11) 0,93 Structural adjustment 1,12 (0,05) 1,07 Total non-programmable aid 280,59 (1,71) 278,88 Use of interests 0,66 0,00 0,66 Transfer from 6th EDF 4,54 (0,27) 4,27 Total 897,78 (43,02) 854,76 Cotonou A envelop 1 240,86 (11,70) 1 229,16 B envelop 154,02 (0,56) 153,46 CDE + CTA + Joint assembly 31,04 (0,18) 30,86 Regional allocation 49,62 (0,92) 48,70 Intra ACP allocation 431,17 (7,83) 423,34 Technical assistance — OCTS 0,00 (0,02) (0,02) Special Congo allocation 15,73 0,00 15,73 Use of interests/Implem. costs 6,00 (0,06) 5,93 Total 1 928,43 (21,26) 1 907,16 Total 2 826,21 (64,28) 2 761,93

2.3. SITUATION BY COUNTRY AND BY INSTRUMENT

2.3.1. 6th EDF

Notes to the management accounts shown in appendix:

(a) In tables 3.1.1 to 3.1.8, the figure ‘0.0’ indicates that the corresponding amount is between EUR –4 999 and EUR 4 999. Where no figure is given, the amount is equal to zero. Countries with a nil balance in all columns are not listed in the tables.

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

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

(d) In the first column of tables 3.1.1 and 3.1.2, the allocation for ‘Regional co-operation’ (EUR 856,41 million) corresponds to the Commission's regional co-operation target for ACP states only (EUR 912,23 million) minus the amount transferred during the years 2000, 2001 and 2002 to the general reserve according the transitional measures (i.e. EUR 1 million, EUR 1,36 million and EUR 0,16 million) and EUR 28,9 million transferred to 9th EDF following the entry in force of Cotonou in 2003, EUR 6,9 million in 2004, EUR 2,18 million in 2005 and EUR 15,2 million in 2006

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

2.3.2. 7th EDF

Notes to the management accounts shown in appendix:

— In tables 3.2.1 to 3.2.8, the figure ‘0.0’ indicates that the corresponding amount is between EUR –4 999 and EUR 4 999. Where no figure is given, the amount is equal to zero. Countries with a nil balance in all columns are not listed in the tables.

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

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

— In the first column of tables 3.2.1 and 3.2.2, the allocation for ‘Regional Co-operation’ (EUR 1 128,16 million) is composed as follows: Commission's regional co-operation target (ACP states only) 1 125,00 Target overrun 67,90 Transfers from unallocated resources in order to finance the programme of assistance to ACP countries for integration within the WTO 10,00 Amount transferred during the year 2000 to the general reserve according the transitional measures (8,50) Amount transferred during the year 2001 to the general reserve according the transitional measures (2,20) Amount transferred during the year 2002 to t