ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (82)500
Vol.1982/0167

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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(82)500 final .
7/"J^Brussels ,9September 1982
A' #~~ v« * V7 IiVr) <oc ' Ptn
s-:v\* > EZl
oi "»
FIFTH REPORT FROM THE COMMISSION TO THE COUNCIL
onthe implementation ofthe programme offinancial andtechnical
assistance tonon-associated developing countries
(asof31December 1981 )
C0M(82 )500final .

CONTENTS
IGENERAL
(a)Introduction
(b)Programmeobjectivesandprocedures
IITHE1981PROGRAMME
(a)Guidelines
(b)Allocationoffunding
(c)Projectscommitted
(d)Summary1976-81
IIIPROGRAMMEIMPLEMENTATION
(a)General
(b)Commitments
(c)Disbursements
IVCONCLUSIONS

1
IGENERAL
I.a.Introduction
TheRegulationgoverningtheCommunity'sprogrammeoffinancialandtechnical
assistancetonon-associateddevelopingcountries^callsfortheCommission
toprovideParliamentandCouncil,eachyear,withinformation onthe
administration ofthisprogramme.Thepresentdocumentrepresentsthe5"th
2)suchimplementation report',andcoverstheimplementation ofallthe
annualnon-associates programmesfrom197^on,duringtheyearending
31December1981.
Thisreportisthefirsttocoverthecalendaryear,previousreportshaving
dealtwiththeperiodending31Julyofeachyear.Thischangeintiming
wasnecessarytoallowthereporttobepresentedalongwiththeannual
guidelines,andinanycasereflectsmorepracticallytheactualscheduleof
programmeimplementation .
Thepresentreportisalsothefirsttogiveadetailedreviewofthepreceding
year'sprogramme(theI98Iprogramme,inthepresentcase).Thisreplacesthe
annualprogrammereviewpresentedtoCouncilundertheadhocprocedureapplied
priorto1981.
Giventhatonlysixmonthshaveelapsedsincethelastreportwasprepared,
thepresentdocumentisarelativelybriefone,updatingbasicstatistics,
reviewingtheI98Iprogramme,andoutliningthemostimportantdevelopments
duringthis6-monthperiod.Variouspointsofdetailwhichweredealtwithin
fullinthepreviousreporthavenotbeentakenupagainhere,andreference
shouldbemadetothisearlierreportasappropriate .
I.b.Programmeobjectives andprocedures
Thefinancialandtechnicalcooperation programmewithnon-associated developing
countriesbeganin1976.Itsbasicpolicyobjectiveswerelaiddownin
CouncilRegulation442/81^,andtheseareamplifiedinthegeneralguidelines
determinedannuallybytheCouncilactingonaproposalfromtheCommission.
Briefly,thesepolicyguidelines maybesummarizedasfollowss
–theaidshallbedirectedtothepoorestdevelopingcountriesandthepoorest
groupsintheirpopulations ,andshallbeaimedessentiallyatdevelopingthe
ruralsector,withparticularemphasisonimprovingfoodsupplies;
./•
^CouncilRegulation442/81.
2)'Annualreportshavebeenpresentedeachyearsince1978}thelastof
these(4thexecutionreport,COM(8l)691)providedaparticularlydetailed
?8l,the
appliedoverviewofthefirst5yearsofthenon-associates programme.
AlthoughthisRegulation wasonlyformallyadoptedinFebruary1981.the AlthoughthisKeguiation wasonlyformallyadoptedinFebruary1(basicpolicyguidelinessetputtherehadinfactbeenstrictly'fromthe1978programmeonwards.

-2-
-asubsidiarypartofthefundsshallbedirectedtowardsregional
projects(inwhichcaseprojectsoutsidetheruralsectormaybe
considered),andafurtherproportionshallbesetasidefor
exceptional measures,particularly post-catastrophe reconstruction
projects;
-theaidshallbeingrantform,andmaybeusedtocoverbothforeign
andlocalcosts;projectsmaybefinancedautonomously ,orin
cofinancement withMemberStatesorinternational organizations ;
-theallocationoffundingshallhelptomaintainaCommunitypresence
inthemajorregionsofthedevelopingworld.
TheRegulationalsolaysdowntheproceduresbywhichprojectsaredecided
upon.StartingfromtheI98Iprogramme(whenthisprocedurewasfirstapplied),
thefinancingdecisionsforindividualprojectsaretakenbytheCommissionafter
havingobtainedtheopinionofafinancingcommitteecomprisingrepresentatives
oftheMemberStatesandchairedbytheCommission.
Thiscommitteemeetsseveraltimesayear,andprojectscanthusbeprocessed
inbatchesasandwhentheyareready.TheCommitteemetforthefirsttime
inJune1981,andthreeothermeetingswereheldduringtheyear(inJuly,
SeptemberandDecember).Afinalmeetingforthe1981programmewasheldin
May1982.
II.THE1981PROGRAMME
H.a.Proerammeguidelines
TheannualguidelinesfortheI98IprogrammewereformulatedbytheCommission
additiontomakingabriefreviewoftheexperiencegainedunderthe
previousannualprogrammes,theguidelinesreiteratedthebasicpolicy
objectivesassetoutintheRegulation,andamplifiedcertainpointsof
detail.Inparticular,itwasindicatedthat:
-thegeographical allocationoffundingshouldfollowthesamepatternasin
previousyears,thatis73$forAsia,20$forLatinAmerica,and1%for
Africa.Thesepercentagesarecalculatedafterdeductionofthevarious
specialprovisions ;inSeptember1980pandadoptedbytheCouncilinNovemberofthatyear.In
^COM(80)537.

-3-
I
–specialattentionshouldbegiventoBangladesh,PakistanandNicaragua,
ascountriesrequiringaspecialorconcentrated effort.Forregional
activities,emphasiswouldcontinuetobegiventoASEAN,theAndeanPact
andCACM(theCentralAmericanCommonKarket);
–sectorally,themajoremphasiswouldcontinuetobewiththeruralsector,
thoughmentionwasalsomadeofpossiblyincludingcertainactivitiesin
theenergysector;
–thereserveforpost-catastrophe actionswouldbesetatbetween5$and
10$oftotalfunding,whilethespecialprovisionsforadministrative costs
andforsmallstudiesandtechnicalassistanceweresetat2$and1$
respectively ;
–cofinancingwithMemberStatesorinternational organizations shouldcontinue
toaccountforanimportantpartoftotalfunding.
II.b.Theallocation offunding
Thetotalfundingavailableunderthe1981programmeamountedto154*2MECU,
representing 150.0MECUinnewcreditsfromtheI98IBudget(forcommitment
in1981or1982),plus4.2MECUincreditsremainingavailableundertheI98O
Budget(forcommitmentbeforetheendof1981).
Inallocatingthisfunding,projectswereselectedinaccordancewiththe
policyobjectiveslaiddownintheRegulationandguidelines,thepriorities
expressedbyrecipients,andthestateofpreparedness ofindividualprojects.
Fullaccountwasalsotakenoftherelativeneedsoftheeligiblerecipients,
andoftheexperienceachievedinimplementing projectsinthesecountriesin
earlieryears.
Outofthespecialreserveforpost-catastrophe actions,atotalof9*7MECU
wasallocatedfortwoprojectsinIndiaandPakistan.Thisrepresents6.5$
ofI98Ibudgetcredits,comparedtothe5$-10$suggestedundertheguidelines
forthisyear.
I
Aspecialprovisionof2.0MECUwassetasideforexpertiseandcontrol
activities.Previouslyreferredtoastheadministrative costsprovision,
thisprovisioncoversthecostofrecruitingshorttermoutsideexpertsto
helpwithprojectevaluationandsupervision,andoftheDevelopmentOfficers
attachedtotheCommissionDelegationsinBangkokandCaracas.Itrepresents
1.3$of1981budgetcredits,ratherlessthanthe2.0$foreseeninthe
guidelines(asmallbalancewasstillavailableunderthe1980provision).•

-4-
Afurther special provision ,of1.5MECU ,wasmade forsmall-scale studies
andtechnical assistance .This enables theCommission torespond asquickly
aspossible torecipients -?requests forassistance inpreparing project ideas ,
andislimited toactions costing less than 300,000 ECU (theaverage cost is
however much less than this ,oftheorder of50,000 ECU).This provision
represents 1.0$ of1981 budget credits ,assuggested intheguidelines .
After deducting these various special allocations ,amounting intotal to
13.2 MECU ,abalance of141.0 MECUremained available fornormal projects
inthethree geographical regions served bytheprogramme .Ofthis ,the
4.2MECUcarried forward from theI98O programme wasreserved forprojects
inAsia (having been allocated forthis purpose ,butnotused ,under theI98O
programme ),while theremainder (136.8 MECU)wasallocated inaccordance with
theindicative geographical breakdown suggested inthe1981 guidelines .The
resulting basic geographical allocation offunding isasshown inTable 1below .
T.l Geographical allocation offunding under the1981 programme (MECU)
I98O I98ITotalcredits credits
Asia 4.2 99.9 7li IO4.I
Latin America - 27.3 20fa 27.3
Africa - 9.6 li 9.6
Total 4.2 136.8 100$ I4I.O
Inexecuting theprogramme ,every effort wasmade tocommit funding in
accordance with thebasic geographical breakdown shown above .Inpractice ,
however ,itwasimpossible toidentify anyprojects inAfrica ,given the
continuing uncertainty arising from thedebate among certain Member States
ontheeligibility fornon–associates aidofthecountries concerned .
Consequently thefunding earmarked forthis region (9*6MECU)hasbeen
carried forward tothe1982 programme .
•/

ForLatinAmerica,sufficientprojectswereidentifiedtoutilizefullythe
creditsavailable.However,twoprojects(oneinHonduras,theotherin
Nicaragua)arestillunderdetailedappraisal,andcertaintechnicalquestions
remainto"beclarified "beforefundingcanbecommitted.Theseprojectsare
likelytobereadyforinclusioninthe1982programme,butasaresultonly
20.61MSOThasactuallybeencommittedforthisregioninI98I.Thebalance
oftheI98IallocationforLatinAmerica(6.69MECU)hasthereforebeen
carriedforwardtothe1982programme.
ForAsia,nosuchdifficultiesarose,andcommitmentsundertheI98Iprogramme
wereinfactfractionally higherthantheallocationoriginallyforeseen
(104*45MECU,ascomparedto104.1MECU).
Overall,therefore,atotalof125.06MECUhasbeencommittedfornormal
projectsundertheI98Iprogramme.Withthevariousspecialallocations
(13.2MECU),totalcommittedfundingundertheI98Iprogrammeamountsto
138.26MECU,leavingabalanceof15*94MECUtobecarriedforwardtothe
1982programme^.Thiscarry-overisofcourseconsiderablylargerthanin
previousyears,butthiswasinevitablegiventheuncertaintyoverAfrica.
ThefinalallocationofcommittedfundingissummarizedinTable2below.
T.2Fundingcommittedunderthe1981programme (MECU)
Iïlmdingavailable
1980credits
1981credits4.20
I5O.OO
TotalI 154.20
IIPost-catastrophe reserve
India
Pakistan7.00
2.70
TotalII 9.70
IIISpecialprovisions
Expertise/control
Studies/TA2.00
I.50
TotalIII. 3.50
IVNormalprojects
Asia
LatinAmerica
Africa
TotalIV I25.O6
VTotals
Totalcommitted
Carriedforward138.26
15.94
Total 154.20
Thiscarry-overof15.94MECUmaybebrokendownasfollows:Africa9*60MECU,LatinAmerica6.69HECU,Asia-0.35MECU.

-6-
II.c.Projectscommitted ,andcomments
Asnotedabove,totalcommitmentsunderthe1981programmeamountedto138.26MECU,
coveringatotalof28separateprojectsandactions,andserving20different
recipients(llcountriesorterritories,and9regionalorganizations).
Afulllistoftheindividualprojectsandactionscommittedundertheprogramme
isgiveninAnnexI,whilethecommitments "byrecipientaresummarizedinTable3
below,Afulllistofrecipientallocations from1976todateisgivenin
AnnexIT
T.31981programme,allocationbyrecipient (MECU)
I.ASIA II.LATINAMERICA
India 36.00 Nicaragua 8.25
Pakistan 12.00 Ecuador 3.00
Bangladesh 12.00 AndeanPact 5.03
Burma 5«50 OLADE 0.53
Indonesia 12.00 CIP 0.80
Philippines 7.10 CIAT 1.40
Thailand 2.20 IICA I.60
NorthYemen(A.R.)5.20Palestine(occupied;1,65territories)Sub-total 20.61
ASEåN 7.10III.POST-CATASTROPHE
ATip 1,nn
IRRI I.50
ICRISAT 1.20India
Pakistan7.00
2.70
Sub–total 9.7O
Sub-total IO4.45
IV.SPECIALPROVISIONS
Expertise/contro1
Studies/ΤΑ
Sub–total2.00
1.50
3.50
TOTAL
I+II+III+IV138.26
Majorrecipients_
Asshownintheabovetable,theprincipalrecipientundertheI98Iprogramme
wasIndia,with36.OOMECUfornormalprojects,equivalentto26.0$oftotal
committedfunding.OthermajorrecipientswerePakistan,Bangladeshand
Indonesia(eachwith12.00MECU,or8.7$offunding),andNicaragua(8.25MECU,
'6.0$).
Together,thesefiverecipientsaccountedfor58.0$oftotalcommittedfunding
(comparabletothe54$shareoofthe5largestrecipients1976-80).Theten
largestrecipientsinI98I(theabovecountriesplusthePhilippines,ASEAN,
Buima,N.YemenandtheAndeanPact)accountedfor79*7$oftotalfunding
(comparedto73$,onaverage,1976-80).

-7-
Twonewrecipientswereincludedforthefirsttimein1981:Palestine
(occupiedterritories)andIICA(institutoInter-Americano deCiencias
Agricolas,aregionalagriculturalresearchinstitutebasedinCostaRica).
Ontheotherhand,atotalofelevenrecipientswhohadbeenaidedin1980
werenotincludedinthe1981programme"^.Amongthemostimportantof
these,SriLanka,NepalandtheMaldiveswereomittedsincetheyhadreceived
substantialassistancein1980,whileforHaiti,HondurasandPeruprojects
wereinfactidentifiedbutcouldnotbefullyappraisedintimeforinclusion
intheprogramme.Zimbabwe,ofcourse,hasnowaccededtotheLom£Convention
andisthusnolongereligiblefornon-associates assistance .
Countrieswhoseshareoffundingin1981wasparticularly importantincluded
Bangladesh,PakistanandNicaragua(allsuggestedascountriesofconcentration
intheI98Iguidelines).ForThailand,ontheotherhand,thevolumeof
fundingwasratherlowerthaninthepast;thissimplyreflectsthestateof
preparedness ofindividualprojects,however,andasignificantincreaseis
likelyin1982.
Generally,itisclearthatthegreatbulkoffundingcontinuestobedirected
towardsthepoorestdevelopingcountries.Underthe1981programme,countries
withpercapitaGNPof$600orless(1979EBRDdata)accountedfor73of
totalcommittedfunding,whilecountriesintheWorldBank's"low–income"group
(pcGNPofS370orless)accountedfor63.1$oftotalfunding.Finally,
countriesontheUnitedNations'LLDClistaccountedfor12.4$oftotal
2)funding .'.
Thesefiguresareinfactverysimilartothepatternachievedinearlieryears;
thecomparablefiguresfortheperiod197^–80were7Q%($500orless),Gyfo
($360orless)and16%(LLDCs).Aswasnotedinpreviousreports,theapparently
lowshareoffundinggoingtotheLLDCgroupsimplyreflectsthesmallsizeof
thecountriesconcerned(withtheexceptionofBangladesh).Also,itmustbe
rememberedthattheabovefiguresdonotincluderegionalprojects,asignificant
proportionofwhichwasalsodirectedtowardstheproblemsbeingexperienced by
thepoorestdevelopingcountries.
1)TheMaldives,Nepal,SriLanka,Haiti,Honduras,Peru,BCIE,CATIE,IDB,
Zimbabwe,DominicanRepublic.
2)CountriesintheLLDCgroupwhichareeligiblefornon-associates fundingare
Afghanistan ,Bangladesh,Bhutan,Haiti,Laos,theMaldives,Nepal,NorthYemen
andSouthYemen,TheWorldBank'slow–incomegroupincludestheabovecountries
(withtheexceptionofthetwoYemens)plusBurma,India,Indonesia,Kampuchea,
Mozambique,Pakistan,SriLankaandVietnam.Thegroupofcountrieswithpc
GNPof$600orlessincludesallthoseinthelow–incomegroupplusBolivia,
Honduras,Thailand,thePhilippines ,andthetwoYemens.

-8-
.Sectoral^breakdown^
ThebreakdownofI98Icommitments byeconomicsectorissummarizedinTable4
below.
T.41981programme,sectoralbreakdown
I976-8O I98I
Totalcommitted
funding(MECU) 379.3 138.26
ofwhich:
Agricultural production 73.8$ 53.1$
Agricultural services 15.O 26.2
Utilities 3.2 15.4
Socialdevelopment 6.3 –
Industry 0.1 2.8
Espertise/ΤΑ 1.6 2.5
Total 100.0 100.0
Promtheabovetable,itisclearthatthe1981programmehascontinuedthe
traditional emphasisontheruralsector,andonfoodproductioninparticular.
Theagricultural productionandservicessectors,takentogether,accountedfor
79$oftotalcommitments (comparedto89$inpreviousyears).Afurther15$
wasaccountedforbytheutilitiessector(3$inpreviousyears),butofcourse
thegreatbulkofthisisalsoverymuchdirectedtotheruralsector,interms
ofvillag&-level watersupplyandsanitationprojects.
Theindustrialsector,whichiseligibleonlyinthecaseofregionalprojects,
accountedforafractionunder3$oftotalfunding,withtwomajortechnological
cooperationprojectswithASEANandtheAndeanPact.Finally,thespecial
provisionsforexpertiseandtechnicalassistancetookuptheremaining2.5$.
Withintheagriculturalsector,production-related activitiesaccountedfor53$
oftotalfundingin1981,withservice-related activities(credit,research,
cooperativedevelopment,etc.)accountingfor26$.
Themostimportantsub-sectorswereirrigation(21$),ruralwatersupplies(l5$)»
livestock,forestryandfisheries(14$),ruralcredit(13$)andintegratedarea
development (10$).Obviously,thebalanceamongthedifferentsub–sectorsmay
varyconsiderably fromyeartoyear,dependingontheavailabilityofindividual
projects.

-9-
£ofi£ancang
I
AsforeseenintheRegulation,cofinancingcontinuedtoaccountforasubstantia ,
partoftotalfunding.Underthe1981programme,atotalofelevenprojects
werecofinanced,accountingfor57*2MECU,or4-1•4$oftotalfunding.This
compareswithanaverageof43$between1976and.1980.Cofinancingpartners
thisyearweretheAsianDevelopmentBank(6projects,withtotalEECfunding
of49.6MECU),theCGIARagriculturalresearchinstitutes(4projects,4»9MECI
andUNICEF(lproject,2.7MECU).
Unusually,noprojectswerecofinancedwithMemberStatesin1981,althoughsuch
projectshavepreviouslyaccountedforalmost40$oftotalcofinancing.Howeve:
theabsenceofMember-State cofinancingthisyearsimplyreflectsthestateof
preparednessofindividualprojectsinthepipelined.Considerableefforts
havebeenmadetoidentifyvaluableopportunities forcombiningCommunityand
Members-State funding,anditisinfactlikelythatthe1982programmewill
includeasubstantialproportionofsuchcofinancing .
Otherremarks
Regionalprojectsaccountedfor20.16MECUundertheI98Iprogramme,or14.6$
oftotalfunding(comparedtoanaverageof11$between1976and1980).
PrincipalrecipientsherewereASEAN(2projects,foratotalof7«10MECU),
theAndeanPact(2projects,5*03MECU)andtheCGIARresearchinstitutes
(4projects,4.90MECU).TheconsiderableincreaseinfundingforASEAN
andtheAndeanPactreflectstheeffortputintoidentifying andpreparing
suchprojectsinearlieryears.
Post–catastropheprojectsaccountedfor9*70MECU,or7*0$oftotalcommitted
funding.Thisisbroadlyinlinewiththeshareoffundingallocatedtosuch
projectsinpreviousyears(8.6$onaverage,sincesuchprojectswerefirst
consideredin1978).
Studiesandtechnicalassistanceactionsaccountedfor6.13MECU,or4«4$of
totalfunding(comparedtoanaverageof6.9$between1976and1980).These
figuresdonotofcourseincludetechnicalassistanceelementsincludedwithin
theframeworkoffull-scaleprojects.
Finally,itmightbenotedthattheaveragesizeofprojectscommittedunder
theI98Iprogrammewas5*7MECU.Thisisratherhigherthantheaverageof
3.1MECUrecordedbetween1976and1980,largelyreflectingthegreatervolume
^TwoMember-Statecofinancedprojects,inLatinAmerica,wereinfactoriginally
programmedfor1981buthadtobecarriedforwardto1982duetocertain
technicalproblemswhichdelayedfullappraisal.

-10-
dffundingnowavailable.Itshouldbenoted,however,thatsmaller^-scale
actionsarenotatallexcluded,asevidenced "bytwoactionsincludedinthe
I98Iprogrammewhichgroupaseriesofmicro-projects .
ThetotalcostofI98Iprojects(i.e.,includinggovernmentandotherdonor
contributions aswellastheEECgrants)amountedto1778.6MECU,thoughthis
figureisverymuchdominatedbyoneverylargeprojectinIndia(ARDCTVrural
credit),whichalonehadatotalcostof1280.0MECU.Ifthisprojectis
excluded,itcanbeseenthatEECfundinggenerallyaccountedforabout30</o
ofthetotalcostofthevariousactionsincludedintheprogramme.
II.d.Summaryofactivities 1976-1981
Detailedstatisticsonthefirstfivenon-associates programmes(1976-80)were
presentedinthepreviousimplementation report,anditisunnecessarytorepeat
thesehere.
However,itmightbenotedthatwiththeinclusionoftheI98Ifigures,total
commitmentsunderthenon-associates programmesince1976haverisento ECt
Thiscoversatotalof25differentrecipientcountriesorterritories ,plus
16recipientorganizations .
Theaveragepercapitaincomeofthosecountriesreceivingaidundertheprogramme
is$260(IBRD1979figures),witharangefrom$90forBangladeshto&1050for
Ecuador,Thetotalpopulationofthesecountriesisoftheorderof
1300million,implyingatotalpercapitacontribution ,underthenon-associates
aidprogramme,of0.4ECUoverthe5years1977-81.
III.PROGRAMME IMPLEMENTATION
III.a.General
Giventhatonly6monthshaveelapsedsincethelastreportwasprepared,and
thatduringthisperiodnoverysignificant problemshavearisen,itwillnot
benecessarytomakeanydetailedcommentshereontheprogressofindividual
projectsorprogrammes.Instead,thepresentreportwillconcentrate onthe
overallprogressachievedduringthisperiod,particularly intermsoftotal
commitments anddisbursements .Amoredetailedprogressreviewwillof
coursebegivenagaininthenextimplementation report,whichwillcoverthe
yearendingDecember1982.

-11-
Beforegoingfurther,however,thereisonegeneralpointrelatingtoprogramme
implementation whichrequiresspecialemphasis.Manydevelopingcountries,
andparticularly thepoorest,faceacrucialproblemoflimitedabsorptive
capacity.Thiscanbemostclearlyseenintheconsiderabledifficulties which
theyfaceinpreparingandimplementing externally-funded projects.Tohelp
overcometheseproblems,itisessentialfordonorstoplayaveryactiverole
inpreparingapipelineofprojectsandinsupervisingtheirimplementation .
TheCommissionhasalwaysbeenparticularly consciousoftheseproblems,asis
evidencedbythesignificantproportionoftotalfundingallocatedtostudies
andtechnicalassistance,andbytheeffortsmadetopermitacloseron-site
controlofprojectimplementation .Recentyearshaveseentheestablishment
ofDevelopmentOfficersintheCommissionDelegationsinBangkokandCaracas,
aswellasanincreasingutilization ofoutsideexpertsonsupervisionvisits.
Afurtherimprovementinthisareawasinfactmadeattheendof1981,with
theestablishment ofaresidentDevelopmentOfficerinBangladesh(attachedto
theBangkokDelegation).Asnotedinthepreviousreport,theimportanceof
suchamovehadbeenparticularly emphasisedbytheEuropeanAuditCourt
followingtheirmissiontoBangladesh.
Ill.b.Commitments
Asnotedinearlierreports,theCommunity'sfinancialregulationspermitthe
creditsmadeavailableunderaparticularannualbudgettobecommittedeither
intheyearofthatbudgetortheoneyearfollowing"*"^.Therateofcommitment
achievedunderthevariousannualprogrammesfrom1976todateisshownin
Table5below.
l)Thiswasnotthecasewiththe197^and1977programmes,whenfundshad
tobecommittedwithinthebudgetyear.

-12-
T.5Programmecommitments ,1976-81
YearBudget Commitments Commitmentrates
credits
(MECU)1)(allprogrammes)
(MECU)1)(cumulative %ofrelevantbudget)
BudgetyearFollowingyear
July DecJuly Dec.
1976 20.0 20.00 100
197745.045.00 – 100
1978 7O.O63.10 – 9090100
I979110.086.90 1 7381100
I98O138.5133.90 8 7593100
1981I5O.OI54.53 14 83
ITotals533.5503.43
l)For1976and.1977»commitmentsweremadeinUnitsofAccount(UA)whichwere
slightlydifferentincomposition andvaluefromtheEuropeanUnitofAccount
orEuropeanCurrencyUnit(HJA/ECU)usedinsubsequentyears.Forclarityof
presentation ,noadjustmenthas"beenmadehere,withallunits"beingtakenas
equivalent.However,itmaythus"bethatthefiguresgivenherewoulddiffer
veryslightlyfromtheexchange-rate adjustedfiguresusedforaccounting
purposesandappearingin"budgetreports.
Asnotedabove,atotalof154*53MECUwascommittedforindividualprojects
oractionsduringtheyearendingDecember1981.Thisrepresented 30.40MECU
incompletionofthe1980programme,plus124.13MECUunderthe1981programme.
Totalfundingcommittedunderthevariousannualnon-associates programmesfrom
1976onthusamountsto503.43MECU,or94$ofthetotalcreditsmadeavailable
duringthatperiod.Thesmallgapof30.07MECU"betweencommitments and
credits(asof31.12.81)willinfactbeclosedduringthenextfewmonths,
with14.13MECUwhichwillhavebeencommittedincompletionoftheI98I
programme,plus15.94MECUcarriedforwardtothe1982programme(for
commitmentbeforetheendof1982).
Finally,onemightnoteherethattherateofcommitmenthasshownasatisfactory
increasesince1979.During1981,infact,14$ofI98Ibudgetcreditswere
committedduringthefirst6monthsoftheyear,andatotalof83$hadbeen
committedbytheendofDecember.Thisacceleration incommitmentsislikely
tocontinueinfutureyears,giventhatthecommitteeprocedurenowinforce
allowsproject-processing tobespreadmoreevenlyovertheyear.

-13-
i
III.c.Disbursements
Totaldisbursements underalltheannualprogrammesfrom1976todateare
showninTable6"below.
T.6Totalfundsdisbursed,asof31.12.81(MECU)
Proportion
Programme Ponds Fundsdisbursed disbursed
4,commixxea /"
1976I977I978I9791980I98ITotal
1976 20.0 6.13.34.31.31.916.984.5
1977 45.0 – –5.06.912.06.930.868.4
197863.1 – – –9.07.811.127.944.2
1979105.9 – – –0.2I8.927.146.243.6
I98O145·3-η– _ – –1.240.641.828.8
I98I124.1;–1– – – – – – –
Total 5G3.4 -6.18.320.44I.287.6163.632.5,
l)Notincludingafurther14.13MECUcommittedunderthe1981programmeduring
thefirstfewmonthsof1982.
Daringtheyearending31December1981,totaldisbursements tinderallpast
programmesamountedto87.6MECU.Thisbroughtthetotalamountdisbursed
todateto163.6MECU,or32.5$ofthetotalamountcommitted.
Asonewouldexpect,thelevelofdisbursements hasgrownrapidlyinrecent
years,reflectingtheincreasingmaturityoftheprogrammeandthegrowing
numberofprojectscomingfullyon-stream.Thusdisbursements during1981
weremorethantwicethelevelrecordedin1980(41.2MECU),whichinturn
wasgreaterthanthetotaldisbursedinthefouryearsfrom1976to1979
(34.8MECU).
AsofDecember1981,nodisbursements hadyetbeenmadeundertheI98Iprogramme.
However,thisisnotparticularly surprising,giventhatthemajorityofprojects
werecommittedonlyinDecember,andthatthoseprojectswhichhadbeencommitted
earlierintheyearwerestillinthepreliminarystageofimplementation
(preparationoftenderdocuments,consultantrecruitment,etc.),whenlittleor
noactualspendingshouldbeexpected.
Fortheearlierprogrammes,theoverallpaceofdisbursement seemsquite
satisfactory,withtotaldisbursementratesrangingfrom85$forthe1976
programmeto29$forthe1980programme.Spendingundertheearliestprogrammes
appearstobeslowingdownalittle,asmostoftheprojectsconcernedare
nearingcompletion.However,spendingunderthemostrecentprogrammeshas
shownamarkedacceleration ;duringthelast12months,boththe1979and1980
programmesshowedannualdisbursements equivalenttoabout20$ofcommitted/

-14-
funding(27.1MECUoutof105.9Mfor1979,and40.6MECUoutof145.3MECUfor
1980).Thisaccelerationreflectstheconsiderableattentionbeinggivento
disbursement planningintheselectionandpreparationofprojects,anditishoped
thattheimprovement canbecontinuedinfutureyears.
However,itisclearthatforcertainrecipientcountries(particularlythosewhere
thenationaladministration isrelativelyweak),akeyfactorinpromotingafurther
acceleration indisbursements willbetheestablishment ofaresidentDevelopment
Officerinthecapital,toclarifyCommissionprocedures(particularlyforprocurement),
assistinprojectprocessing,andgenerallyprovideanappropriateguidanceandstimulus
toaction.ThesepointshavebeenstressedinthereportsmadebytheAuditCourt
followingvisitstothesecountries,(themostrecentbeingPakistan)andtheCommission
hasofcoursealreadyestablishedDevelopmentOfficersinBangkokandCaracas(bothat
theregionallevel),andmorerecentlyinDacca.However,itisevidentthatthere
areseveralothercountrieswheresuchattentionwillbeessential,particularly when
oneconsidersthegrowingvolumeoffundingnowcommittedforthemajorrecipients
underthisprogramme.
Finally,itmightbenotedthattherecordlevelofdisbursements achieved
in1981mighthavebeenevenhigherifithadnotbeenforthestoppageof
payments,lastingseveralmonths,whichresultedfromtheinsufficiency of
paymentscredits.Asnotedinthepreviousreport,itisabsolutely
essentialthatsufficientpaymentcreditsbemadeavailabletocoverthe
growinglevelofpaymentsfallingdueeachyearasaresultofthecommitments
enteredintobytheCommunityinpreviousyears.
.CONCLUSIONS
Asnotedinpreviousreports,theCommunity'sprogrammeoffinancialandtechnical
cooperationwithnon-associated developingcountriesisnowawell-established ,and>-
well-received ,componentofitsoveralldevelopmentcooperationpolicy.Inthesix
yearsfrom197&to1981,totalcreditsof533.5MECUhavebeenmadeavailablefor
theprogramme.

-15-
y
The1981programmehasrecently "beenfinalized,andfollowsthesamegenerallineasin
previousyears,intermsofitsemphasisonruraldevelopmentprojectsinthepoorest
developingcountries.Atotalof138.26MECUhasbeencommittedforprojectsinAsia
andLatinAmerica,thoughnoprojectscouldbeidentifiedinAfrica(giventhecontinued
debateonthisquestionamongcertainMemberStates).Thegeneraltypeofproject,
majorrecipientsandsectoralbrealcdownisbroadlysimilartothatestablishedin
previousyears.Cofinancingcontinuestoaccountforasubstantialpartoftotal
funding,thoughbychancenoprojectswerecofinancedwithMemberStatesduringthis
particularyear.Theshareofregionalprojectsisslightlyhigherthanbefore,with
particularly largeallocationstoASEANandtheAndeanPact.
Programmeimplementation hascontinuedtoproceedfairlysmoothly,andbytheendofI98I
atotalof503.4MECUhadbeencommitted,and163.6MECUdisbursed.Disbursements
duringI98Iwereinfactatarecordlevel,totalling87.6MECUoverthe12-monthperiod
Therehavebeennospecificimplementation problemswhichrequiremention,thoughithas
beennecessarytostressagainthegeneralproblemofabsorptivecapacity,particularly
forthepoorestdevelopingcountries.TheCommissionisfullyawareoftheseproblems,
andhasputincreasingeffortsintoassistingwithprojectpreparation andstrengthening
itsownsupervisorycapacities.However,staffingconstraintsmakeitimpossibleto
doallthatshouldbedoneinthisfield.

ANNEXES
I.Listofprojectscommitted,1981programme
II.Allocationoffunding "byrecipient.1976-81

ANNEXEI
NON-ASSOCIATES PROGRAMME 1981
LISTOFPROJECTSCOMMITTED
RECIPIENT STITLE SECTOR FINANCINGTOTALCOST
MECUEECGRANT
MECU
I.-ASIA
INDIA '
Fertilisersupplyprogram
withcounterpart Drolects
-Ruralwatersupplies
HlmaehaLPradeshme,
WatersuppliesS
sanitationAutonomous
18.00(36.00)
18.00
-ARDCIV Ruralcrédit 1280.00 18.00
PAKISTAN
KarachifishingportFisheriesParallelcof.
ADB45.50 12.00
BANGLADESH
Small-scaleirrigation IrrigationParallelcof.
ADB82.00 12.00
BURMA
Pumpirrigation IrrigationParallelcof.
ADB33.00 5.50
INDONESIA
Baliirrigation Irrigation Joint,cof.ADB 99.60 12.00
PHILIPPINES
PalawanIntegrated
aeradevelopmentIntegratedarea
developmentParallelcof.
ADB78.00 7.10
THAILAND
Seedcentre,Southern
regionGeneralagriculture Autonomous 4.40 2.20
NCRTH_YEMEN CAR)*
Seedproduction
programmeGeneralagriculture Autonomous 6.60 5.20
ΡALESILE(occupied
territories )
Cooperative development
micro-projectsRuralproduction
(general)Autonomous 1.65 1.65
ASEAN
Scientific 8technologi-
calcooperation programmeIndustry Autonomous 2.80 2.80

RECIPIENT 8TITLE SECTOR FINANCINGTOTALCOST
MECUEECGRANT
MECU
ASEAN
Post-harvest technology
programmePost-harvest
servicesAutonomous 4.30 4.30
ADB*
Technicalassistance
programmeRuralproduction
(general)Channelcof.
ADB1.00 1.00
IRRI
Researchsupport Agricultural
researchParallelcof.
CGIAR23.00 1.50
ICRSAT
Researchsupport Agricultural
researchParallelcof.
CGIAR15.80 1.20
SUB-TOTAL ASIA■1695.65 104.45
II.-LATINAMERICA
ECUADOR
Ruralmicro-projects Integratedarea Autonomous 3.40 3.00
(FODERUMA) development
NICARAGUA
ENABAStrainingprogramme Agriculture
(marketing)Autonomous 0.85 0.85
NICARAGUA *
Smallholder cooperatives
developmentRuralInstitutions Autonomous 19.90 7.40
ANDEAN__PACT
PADTruraltechnology
programmeIntegrated area
developmentAutonomous 7.90 3.93
ANDEAN_PA£T
Technicalcooperation Industry Autonomous 1.10 1.10
programme
OLADE*
Géothermiestudy
(pre-feasibility)Energy Autonomous 0.60 0.53
CIP
Researchsupport Agricultural
researchParallelcof.
CGIAR9.60 0.80
CIAT
Researchsupport Agricultural
researchParallelcof.
CGIAR20.20 1.40
IIÇA
Smallholder cooperatives
developmentRuralinstitutions Autonomous 2.90 :1.60
SUB-TOTAL LATINAMERICA 66.45 20.61

RECIPIENT &TITLE SECTOR FINANCINGTOTALCOST
MECUEECGRANT
MECU
III.POSTCATASTROPHE RESERVE
INDIA•
Reforestation Ssoil
conservation (W.Bengal
&UttarPradesh)Forestry Autonomous 7.00 7.00
PAKISTAN .
Ruralwatersupplies,
NWFP
SUB-TOTAL POST-
CATASTROPHEWatersuppliesand
sanitationParallelcof.
UNICEF6.00 2.70
13.00 9.70
IV.SPECIALPROVISIONS
ExpertiseScontrol
.2.00 2.00
Small-scale studies &
technicalassistance1.50 1.50
SUB-TOTAL SPECIAL
PROVISIONS3.50 3.50
TOTALCOMMITTED 1778.60 138.26
Note:The4projectsmarkedwithanasteriskwereapprovedinMay1982;allotherswere
approvedbeforetheendof1981

ANNEXE II
ALLOCATION OFFUNDING BYRECIPIENT .1976-1981 (MECU )
1976 1977 1978 1979 1980TOTAL
1976/801981 TOTAL
1976/81
I. NORMAL PROJECTS
AFGHANISTAN
BANGLADESH
BURMA
INDIA
INDONESIA
LAOS
MALDIVES
NEPAL
PAKISTAN
PALESTINE (O.T. )
PHILIPPINES
SRI LANKA
THAILAND
VIETNAM
YEMEN (NORTH )2.50
6.00
1.00
3.00
2.001.00
5.00
1.00
12.00
2.00
4.00
2.00
1.00
2.40
2.006.60
15.40
5.50
2.00
3.00
4.80
2.00
0.308.00
4.90
25.00
9.90
2.10
6.70
4.50
0.30
5.70
1.1010.60
28.00
8.20
0.50
2.20
5.80
3.50
15.40
13.501.00
32.70
5.90
86.40
26.60
4.10
0.50
5.20
24.30
8.00
21.70
20.50
2.40
3.1012.00
5.50
36.00
12.00
12.00
1.65
7.10
2.20
5.201.00
44.70
11.40
122.40
38.60
4.10
0.50
5.20
36.30
1.65
15.10
21.70
22.70
.2.40
8.30
ADB
ASEAN
ICRISAT
IRRI
MEKONG COMMITTEE1.50
2.000.40
1.00
1.001.20
0.60
0.80
0.801.20
0.30
0.80
1.00
0.400.95
1.204.30
0.90
5.55
4.00
0.401.00
7.10
1.20
1.505.30
8.00
6.75
5.50
0.40
SUB-TOTAL ASIA 18.00 34.80 43.00 71.90 89.85 257.55 104.45 362.00
BOLIVIA
ECUADOR
HAITI
HONDURAS
NICARAGUA
PERU2.00 1.80
1.001.90
2.40
2.403.00
2.90
5.00
3.20
2.005.50
8.20
2.808.70
2.90
12.90
14.80
2.80
2.003.00
8.258.70
5.90
12.90
14.80
11.05
2.00
ANDEAN PACT
BCIE
CATIE
CFAD
CIAT
CIP
IDB
IICA
INCAP
OLADE-3.60
1.80
1.802.70
0.43
0.57
1.80
0.80
0.40
0.600.30
0.50
1.10
1.00
0.502.00
0.50
0.20
1.15
0.60
2.00
0.608.60
3.23
1.87
1.80
2.95
1.50
2.00
1.80
1.205.03
1.40
0.80
1.60
0.5313.63
3.23
1.87
1.80
4.35
2.30
2.00
1.60
1.80
1.73
SUB-TOTAL LATIN
AMERICA2.00 10.00 14.00 19.50 23.55 69.05 20.61 89.66
ANGOLA
MOZAMBIQUE
ZIMBABWE-
-0.50
3.000.90
14.501.40
3.00
14.50- 1.40
3.00
14.50
SUB-TOTAL AFRICA- - 3.50 0.90 14.50 18.90- 18.90
TOTAL NORMAL
PROJECTS20.00 44.80 60.50 92.30 127.90 345.50 125.06 470.56

1976 1977 1978 1979 1980TOTAL
1976/801981TOTAL
1976 /81
II.POST-CATASTROPHE
PROJECTS
DOMINICAN REP.
INDIA
NICARAGUA
PAKISTAN
PERU
SRI LANKA
ZIMBABWE
CENTRAL AMERICA
(PAHO )- -2.00 4.50
2.50
3.00
1.104.80
4.40
1.50
4.004.80
10.90
2.50
1.50
3.00
4.00
1.107.00
2.704.80
17.90
2.50
2.70
1.50
3.00
4.00
1.10
TOTAL POST-
CATASTROPHE- - 2.00 11.10 14.70 27.80 9.70 37.50
III.SPECIAL
PROVISIONS
SMALL-SCALE STUDIES
8TECHNICAL ASSIS­
TANCE- - - 1.50 1.00 2.50 1.50 4.00
EXPERTISE &
CONTROL- 0.20 0.60 1.00 1.70 3.50 2.00 5.50
TOTAL SPEICIAL
PROVISIONS- 0.20 0.60 2.50 2.70 6.00 3.50 9·.50
TOTAL COMMITTED
FUNDING(I+II+III )20.00 45.00 63.10 105.90 145.30 379.30 138.26 517.56