COMMISSION OF THE EUROPEAN COMVSUNITIES 
C0M(93) 515 final 
Brussels, 20 October 1993 
Proposal for a 
COUNCIL DEÇI$IQN 
on the conclusion of an Agreement, in the form 
of exchanges of letters, with the European Bank 
for Reconstruction and Development on the 
contribution of the European Economic Community 
to the Nuclear Safety Account 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. In conformity with the conclusions of the European Council of Lisbon, and 
following the conclusion of the Council of 7 December 1992, the Commission 
proposed that the Community should make a contribution available of 20 
MECU to the Nuclear Safety Account set up at the EBRD, in order to enhance 
the nuclear safety of the countries of Central and Eastern Europe and of the 
former Soviet Union, and negotiate an agreement to this end in the form of an 
exchange of letters with the EBRD. 
(Doc. SEC(93) 363 final of 9 March 1993). 
On 21 April 1993, the Council decided to authorize the Commission to 
negotiate the Community's participation in the above mentioned account on 
the basis of negotiating directives aiming notably at the following points : 
- to provide for provisions on the coordination of nuclear safety related 
activities initiated by the Nuclear Safety Account, on the one hand, and of 
the Community assistance programs PHARE and TACIS, on the other; 
- to provide for rules concerning a certain degree of financial control by the 
Court of Auditors of the Nuclear Safety Account's financial operations; 
- to provide for a contribution of 20 MECU to the above mentioned 
account in 1993. 
(Doc. of the Council No. 6049/93 of 21 April 1993). 
In conformity with this Council decision, the Commission has negotiated 
exchanges of letters with the EBRD. These are reproduced in the annex of the 
attached draft decision. 
3.1 As regards the form of the agreement, it will consist, on the one hand, of 
letters from the Community and the EBRD as foreseen by Article II, Section 
2.02 of the Rules governing the use and functioning of the Nuclear Safety 
Account and, on the other hand, of "side letters" accompanying the former and 
relating to the points of the negotiating directives which are not covered by 
the former. 
32 As to the substance of the exchanges of letters, the foliowiiig points should be 
noted: 
• Tn orAer to hest safegnftfd thft fmflTiriftl mternsf of thn Cnrrmrnrnty aa w»11 
as the auditing powers of the Court of Auditors and of the Coimnissûm, it 
appears useful to ensure in particular that the reports of die internal and 
external auditors of die EBRD on the operations of the Nuclear Safety 
Account be put at the disposal of the Commission and of die Court of 
Auditors. Moreover, should they think it appropriate, the latter would be 
in a position to verify the financial operations of the Nuclear Safety 
Account to the extent that these operations are related to Community's 
• Following the first calls for tender issued by ms EBRD in the trame w mk 
of the Nuclear Safety Account's operations, it seems necessary to ensure 
that the Rules governing the Account as regards the awarding of tender 
contracts be correcdy inlarp^ To this 
effect, a particular provision specifies that, as from the conclusion of the 
flgrw^mftnt rtn fhft CmrnrmnTty cantrihnlinfnr tin difio-fmiflfltinm will "he maffc 
between Member States of the Community, irrespective of whether or not 
they have individually contributed to the Account 
• As far as the payment procedure of the Comnmnity contribution is 
concerned, it is foreseen that the contribution of 20 MECU will be made 
available to the Nuclear Safety Account either in cash or in non-interest 
bearing promissory notes in one single instalment in 1993. 
The Council Is requested to approve the conclusion of the Agreement, in the 
form of exchanges of letters as reproduced in the annex to the attached draft 
decision, with the European Bank for Reconstruction and Devdopment on the 
contribution of the European Economic Community for the Nuclear Safety 
Account 
The Commission suggests that its Vice-President Sir Leon Brittaa be 
authorized by the Council to sign the Agreement with binding effect for the 
Community, 
COUNCIL DECISION 
of 1993 
on the conclusion of an Agreement, in the form of exchanges 
of letters, with the European Bank for Reconstruction and Development 
on the contribution of the European Economic Community 
to the Nuclear Safety Account 
THE COUNCIL OF THE EUROPEAN COMMUNITIES 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas the precarious situation in the field of nuclear safety in several countries of 
Central and Eastern Europe and of the former Soviet Union requires international 
efforts in order to enhance the level of nuclear safety in these countries; whereas the 
Community, through its technical assistance programs PHARE and TACIS, devotes 
considerable means to this end, 
Whereas in complement to the efforts already undertaken a multilateral fund, called 
Nuclear Safety Account, has been established with the European Bank for 
Reconstruction and Development which aims at the financing of short term measures 
to enhance the level of nuclear safety in the countries in question; whereas the 
European Council of Lisbon as well as the Council in its conclusions of 7 December 
1992 have expressed the wish that the Community contributes to this fund; whereas to 
this end the Council, on 21 April 1993, has authorized the Commission to negotiate a 
contribution agreement; and whereas this Agreement should now be concluded, 
Whereas the Agreement will contribute to the achievement of the Community's 
objectives; whereas the Treaty does not provide, for the adoption of this Decision, 
powers other than those of Article 235, 
Has decided as follows : 
Article 1 
The Agreement on the contribution to the Nuclear Safety Account in the form of an 
exchanges of letters between the Community and the European Bank for 
Reconstruction and Development, is hereby approved on behalf of the European 
Economic Community. 
The texts of exchanges of letters are annexed to this Decision. 
Article 2 
The Community shall be represented in the Assembly of contributors and, if need be, 
in the Operating Committee of the Nuclear Safety Account, by the Cornmission 
which shall appoint its representatives. 
Article 3 
This decision shall be published in the Official Journal of the European Communities. 
Done at Brussels, 1993 
For the Council 
The President 
earns. 
A. Form of Letter by Contributor to President of Bank 
Dear Sir, 
1 am writing to acknowledge your communication regarding the establishment by 
the European Bank for Reconstruction and Development (the "Bank") of the 
Nuclear Safety Account (the "Account") to be governed by the Rules which had 
previously been adopted by consensus among the representatives of the 6-7 
governments. 
1. I am pleased to confirm that the European Economic Community wishes to 
make a Contribution to the Account in accordance with the Rules in the 
aggregate amount of 20 million ECU on the basis of domestic laws and 
regulations and in accordance with annual budgetary appropriations. 
To the extent it is available by legislative action the Contribution win be paid 
in cash or in non interest bearing promissory notes in ECU in one instalment 
during the period of calendar year 1993. 
3. I confirm that the terms used herein have the meaning attributed to them in 
the Rules. 
Sincerely yours, 
^ 
B. Form of Reply by President of Bank 
Dear Sir, 
Thank you for your letter of concerning the contribution of the 
European Economic Community to the Nuclear Safety Account in the aggregate 
amount of 20 million ECU. 
This is to confirm that the European Bank will be pleased to accept this 
contribution for inclusion in the Account pursuant to the Rules governing the 
Account 
Sincerely yours, 
1 
C. Draft side letter to be sent jointly with the letter confirming the contribution 
Dear Sir, 
As a complement to my letter confirming the European Community's commitment to 
make a contribution of 20 MECU in 1993 to the Nuclear Safety Account, in accordance 
with Article II, Section 2.02 of the Rules, the Commission, on behalf of the European 
Economic Community, asks the Bank, in its capacity as administrator and operator of the 
Account, to confirm its agreement to the following provisions which will form an integral 
part of the Contribution Agreement: 
1. The Commission and the Bank shall closely coordinate on nuclear safety 
assistance projects and related policy orientations, ensuring the cohesion and the 
complementarity of the activities generated by the Nuclear Safety Account in 
relation to the Community's PHARE and TACIS nuclear safety assistance 
programmes. To this end, beyond the information received through normal 
channels of operation of the Account, particularly in the context of meetings of the 
Assembly of Donors or of the Operating Committee, the Commission and the Bank 
will arrange for a regular exchange of views and experiences on nuclear safety 
assistance projects of mutual interest as well as for any other useful means of 
coordination. 
As regards the financial operations of the Nuclear Safety Account to the extent that 
it is related to the Community's contribution, the Commission may forward all 
relevant information to the European Court of Auditors. Moreover, the Bank will 
supply all supplementary information that the Commission or the Court of Auditors 
may wish to receive. 
In particular, the reports of the internal and external auditors of the Bank on the 
Nuclear Safety Account, to be established in accordance with Art. IV, Section 4.04 
of the Rules, shall be made available to the Commission and, through it, to the 
European Court of Auditors. In case they consider it appropriate, the Commission 
and the European Court of Auditors, according to their respective competences, 
will be entitled to verify the financial 
operations of the Nuclear Safety Account to the extent that it is related to the 
Community's contribution. 
3. As concerns the procurement arrangements pursuant to the Rules, the 
Commission understands that the Bank accepts the understanding whereby, upon 
conclusion to this Contribution Agreement, no discrimination will be made between 
individual Member States of the European Community, irrespective of their having 
concluded individual Contribution Agreements with the Bank or not, as far as the 
awarding of procurement contracts for services or supplies are concerned in the 
course of operations of the Nuclear Safety Account. 
Sincerely yours, 
1 
D. Draft side letter of reply by President of Bank 
Dear Sir, 
In complement to my letter accepting the contribution of the European Economic 
Community to the Nuclear Safety Account, I am pleased to confirm the 
agreement of the Bank to the provisions contained in the side letter to your letter 
of 
Sincerely yours, 
FINANCIAL STATEMENT 
I. FINANCIAL IMPLICATIONS 
1. Title of operation: 
Community contribution to the Multilateral Fund for Nuclear Safety in the countries of 
Eastern and Central Europe and the former Soviet Union. 
("Nuclear Safety" Account established at the EBRD) 
2. Budget heading involved: 
Article B7 - 630 
3. Legal basis 
Article 235 EEC Treaty 
4. Description of operation 
4.1 Specific objectives of the operation 
Contribution of the Community to the "Nuclear Safety" Account established at the 
EBRD, administered by the Assembly of Donours/Operational Committee which 
includes the principal donours, thereunder the Community 
4.2 Period covered : 3 years 
4.3 Populations affected 
Countries of Eastern and Central Europe and the former Soviet Union. 
5. Classification of expenditure or revenue 
5.1 NCE 
5.2 NDA 
6. Type of expenditure or revenue 
6.1 100% subsidy, for joint financing of a multilateral fund established at the EBRD. 
7. Financial impact 
7.1 Method of calculating total cost of operation: 
Financial participation of the Community in the amount of 20 MECU, in accordance 
with the Council decision of 21 April 1993 (Council document nr. 6049/93 of 
21.4.93) 
7.2 Indicative breakdown of allocation commitments and payments 
BRS 1/93 I Draft budget 94 
Commitments 20 MECU pm 
Payments | 20 MECU | pm 
/lO 
8. Fraud prevention measures 
Auditing system of the EBRD as well as specific provisions regarding the auditing rights 
of the Commission and the Court of Auditors, according to the exchange of letters with the 
EBRD. 
II. ADMINISTRATIVE EXPENDITURE 
1. Will the proposed operation involve an increase in the number of Commission staff? 
No 
III. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
1. Objectives and coherence with financial programming 
1.1 Specific objectives of the proposed operation. This must be quantified (as far as is 
possible) and presented for each of the years concerned if the operation is 
multiannual. 
Support of the activities of the "Nuclear Safety" Account with the purpose of 
financing measures to improve the security of nuclear reactors in the countries of 
Eastern and Central Europe and the former Soviet Union. 
1.2 Is the operation incorporated in the DG's financial programming for the relevant 
years? 
Foreseen in the Programmes TACIS/PHARE 1993. 
1.3 To which broader objective defined in the DG's financial programming does the 
objective of the proposed operation correspond? 
Continuation of the Community action, notably with respect to the supply of 
equipment needed to improve nuclear safety. 
2. Grounds for the operation 
2.1 Grounds for the operation 
Multilateral operation following the decisions of the European Council of Lisbon 
(June 1992), the G7 Munich Summit of July 1992 and the Council conclusions of 
7.12.1992. 
3. Monitoring and evaluation of the operation 
Seat of the Commission in the Assembly of Donours/Operational Committee of the 
Account, which determines and monitors the projects and which has the authority to review 
the effectiveness of the activities financed. 
/K 
ISSN 0254-1475 
COM(93) 515 final 
DOCUMENTS 
EN 05 15 01 
Catalogue number : CB-CO-93-550-EN-C 
ISBN 92-77-59990-1 
Office for Official Publications of the European Communities 
Lr2985 Luxembourg