EN Official Journal of the European Union C 303/1

ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR 2004 OF THE 6TH, 7TH, 8TH AND 9TH EUROPEAN DEVELOPMENT FUNDS

(2005/C 303/01)

TABLE OF CONTENTS

1. Financial statements

1.1. Accounting principles and valuation rules

1.2. Consolidated balance sheet of the 6th, 7th, 8th and 9th EDFs

1.3. 6th European Development Fund

1.4. 7th European Development Fund

1.5. 8th European Development Fund

1.6. 9th European Development Fund

1.7. Statement of sources and uses of funds for the 6th, 7th, 8th and 9th EDFs

1.8. Notes to the accounts

2. Report on financial implementation

2.1. Appropriations at 31 December 2004

2.2. Consolidated accounts

2.3. Situation by country and by instrument

2.4. Other management information

3. Financial information EIB

3.1. Balance sheet as at 31 December 2004

3.2. Profit and loss account

3.3. Notes to the financial statements as at 31 December 2004

4. Appendix — Situation by country and by instrument

4.1. 6th EDF

4.2. 7th EDF

4.3. 8th EDF

4.4. 9th EDF

4.5. All EDFs

1. FINANCIAL STATEMENTS

1.1. ACCOUNTING PRINCIPLES AND VALUATION RULES

1.1.1. FINANCIAL REGULATIONS

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

The relevant documents must be presented to the Court of Auditors as provided for in Article 71 of the financial Regulation applicable to the 7th EDF, Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF.

In accordance with the provisions of articles 99 and 135.3, full accrual based accounts will be prepared for the first time for the financial year 2005. Therefore the first set of accrual-based accounts will be sent to the institutions on 31st July 2006.

1.1.2. ACCOUNTING PRINCIPLES & STANDARDS

A. Principle of unit of account

EDF resources are established and implemented in euro and the accounts are presented in euro.

However, for the treasury management purposes referred to in Article 26 of the Financial Regulation applicable to the 9th EDF, the accounting officer may carry out operations in euro, in other currencies and in national currencies.

According to Article 100 of the Financial Regulation applicable to the 9th EDF, the financial statements are presented in millions of euro. Therefore, in these accounts amounts of less than € 4 999 are shown as 0,00, while zero amounts are show as -.

B. Principle of specification

The resources of the EDF are earmarked for specific purposes according to the main instruments of cooperation, as described in the Financial Protocol of the ACP-EC Agreement and the Overseas Association Decision.

C. Principle of sound financial management

EDF resources are used in accordance with the principles of sound financial management, that is to say, in accordance with the principles of economy, efficiency and effectiveness.

D. Principle of transparency

The resources of the EDF are established and implemented and the accounts presented in compliance with the principle of transparency.

E. Revenue

Financial contributions are paid by Member States (EUR 15) in euro. The Commission makes transfers from the Treasury accounts to operational accounts held in euro or a Member State's currency to meet the cash requirements of projects and programmes.

Member States' contributions to an EDF must be fully utilised before contributions relating to the following EDF are called in.

F. Expenditure

Expenditure takes into account all payment orders executed by the banks up to 31 December 2004. However, in the case of local expenditure in the ACP States and for those payments for which information was not communicated to the Commission's accounting departments before the end of the financial year, payments are based on the information received for the latest period prior to 31 December. The total amount of payments in question, which are not included in the 2004 accounts, are not considered to be material.

Expenditure by delegations is not finally entered in to the EDF accounts until validated by the authorising officer and the accounting officer. Expenditure not yet validated is shown under the heading ‘transactions to be finalised’.

G. Payment of account/advances

Payments on account (any amount paid on the basis of supporting documents pending final payment) and advances paid within the framework of the implementation of the contracts are included in the expenditure of the year and do not appear under assets in the balance sheet.

However, advances for study awards and advances for technical assistance are regarded as a receivable and consequently appear under assets in the balance sheet.

H. Recording of operations

EDF appropriations are not subject to any time limit. Once granted, they are available until they are used up or reassigned. The obligation to present a balance sheet of the EDF's assets and liabilities means that the entitlements due from the Member States (mainly contributions for which payment has been deferred or interest on late payment) must be entered in the accounts. These headings are contained 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, however, operational payments are at present still accounted for on a cash basis.

I. Other generally accepted accounting principles

The financial statements have been drawn up in accordance with generally accepted accounting principles, namely:

a) going concern basis;

b) prudence;

c) consistent accounting methods;

d) comparability of information;

e) materiality;

f) no netting off;

g) reality over appearance;

h) accrual-based accounting.

This last principle represents that expenditure and revenue had been registered according to the value date on the bank statement, except for operational payments which continue to be accounted for on a cash basis. In accordance with the provisions of articles 99 and 135.3, full accrual based accounts will be prepared for the first time for the financial year 2005. Therefore the first set of accrual-based accounts will be sent to the institutions on 31st July 2006.

1.1.3. VALUATION RULES

A. Revenue

Member States' contributions are paid in euros.

Other revenue is booked at the exchange rates applying on the date of receipt.

B. Expenditure

The rates used for the conversion into euros of payments made in local currencies for projects and programmes are those in force on the actual date of such payments. Certain contracts involve fixed exchange rates; this constitutes an exception to the general rule.

C. Bank transfers

Transfers from accounts held in euros to operational accounts held in local currencies are made at the rate of exchange in force on the date of such transfers.

D. Assigned funds

Assigned funds are converted into euros at the exchange rate in force at the time of booking and are entered in the accounts at their historical value.

E. Cash at bank

The rates used for converting cash at bank in national currencies into euros at 31 December 2004 are those of the European Central Bank as follows:

1 euro = 0,701 GBP

1.2. CONSOLIDATED BALANCE SHEET OF THE 6TH, 7TH, 8TH AND 9TH EDFs

Consolidated Balance Sheet of the 6th, 7th, 8th and 9th EDF at 31 December 2004

(million EUR) Notes 2004 2003 ASSETS Long term assets Contributions Initial allocation 1 40 390,15 40 035,15 EIB special contribution 2 60,00 60,00 less: amounts called up 3 - 23 240,00 - 20 820,00 17 210,15 19 275,15 Amounts called up 3 23 240,00 20 820,00 less: payments received 4 - 23 197,62 - 20 724,23 42,38 95,77 Stabex contributions Initial allocation 1 800,00 1 800,00 less: amounts called up and received - 1 800,00 - 1 800,00 - - Net contributions receivable 17 252,53 19 370,92 Current assets Debtors 5 25,79 26,27 Short-term investments 6 - 3,15 Deferred expenditure 7 537,00 427,82 Cash at bank 8 798,88 526,16 Total assets 18 614,20 20 354,32 LIABILITIES Fund capital Contributions 1 40 390,15 40 035,15 EIB special contribution 2 60,00 60,00 Stabex contributions 1 800,00 1 800,00 42 250,15 41 895,15 Total inter-fund transfers 9 848,74 848,74 43 098,89 42 743,89 Capitalised income 10 704,68 689,00 Total Fund capital 43 803,57 43 432,89 Other sources of funds Payments 11 - 25 918,06 - 23 504,12 Recoveries 5 18,18 9,76 Transactions to be finalised 12 - 6,87 - 10,80 Doubtful debt provisions 8 - 0,02 - 2,75 Creditors 13 717,40 429,35 Total liabilities 18 614,20 20 354,32





Consolidated Income & Expenditure Account of the 6th, 7th, 8th and 9th EDFs for the year ended 31 December 2004

(million EUR) Notes Balance at 1.1.2004 I&E for the year ended 31.12.2004 Balance at 31.12.2004 Capitalised interest 5, 10 35,45 1,80 37,25 European bank interest 5, 10 25,42 1,51 26,92 Stabex interest 5, 10 322,52 - 2,63 319,89 Stabex interest — security accounts 5, 10 25,10 9,63 34,73 Interest on late contributions Stabex 5, 10 1,86 - 1,86 EIB interest 5, 10 3,51 0,02 3,53 Interest on late contributions 5, 10 6,23 0,71 6,94 Interest on Congo special Fund 5, 10 - 1,92 1,92 Inter EDF transfers 9 848,74 - 848,74 Transfer on closing 8 - - - Total income 1 268,83 12,95 1 281,78 Programmable aid 11 689,43 1 029,88 12 719,31 Macro-economic support 248,87 380,18 629,06 Regional programs 61,60 12,12 73,72 Interest-rate subsidies 341,92 9,62 351,54 Emergency aid 718,13 2,03 720,16 Refugee aid 235,96 26,55 262,51 Aids Fund 2,53 - 2,53 Risk Capital 1 993,82 143,28 2 137,10 STABEX 3 403,59 7,29 3 410,87 Sysmin 535,84 27,22 563,06 Rehabilitation Programmes 380,42 10,42 390,84 Structural adjustment 2 543,85 89,68 2 633,54 Debt relief 720,00 100,00 820,00 Payments world bank 380,00 - 380,00 Sectoral policy 18,89 277,77 296,65 Humanitarian Aid 37,56 118,77 156,33 Compensation export receipts - 20,67 20,67 Centre for the development of enterprise - 14,64 14,64 Centre for the development of agriculture - 12,46 12,46 General Assembly - 0,63 0,63 Special operations - - - Technical assistance 0,25 0,06 0,32 Social sectors 170,00 5,55 175,55 Methodological and developmental support - 5,74 5,74 Natural resources 0,35 0,07 0,42 Private sector - 1,18 1,18 Peace building and conflict prevention - 39,48 39,48 Miscellaneous - 6,87 6,87 Congo Fund - 0,09 0,09 Transactions awaiting finalisation 12 22,73 - 11,62 11,11 Operational expenditure 14 23 505,75 2 330,63 25 836,39 Implementation expenses 15 0,00 55,08 55,09 Costs linked to devolution 15 13,48 16,44 29,92 Administrative and financial costs 15 7,62 0,16 7,78 Provision for loss on short term investment 6 3,15 - 3,15 - Provision for doubtful debts 8.6 2,75 - 2,74 0,02 Provision for bank charges 13.2 0,10 - 0,05 0,05 27,10 65,75 92,85 Excess of expenditure over income - 22 264,02 - 2 383,43 - 24 647,45

1.3. 6TH EUROPEAN DEVELOPMENT FUND

6th EDF Balance Sheet at 31 December 2004

(million EUR) Notes 2004 2003 ASSETS Long term assets Contributions Initial allocation 1 7 500,00 7 500,00 EIB special contribution 2 60,00 60,00 less: amounts called up 3 - 7 560,00 - 7 560,00 - - Amounts called up 3 7 560,00 7 560,00 less: payments received 4 - 7 560,00 - 7 560,00 - - Stabex contributions Initial allocation - - less: amounts called up and received - - - - Net contributions receivable - - Current assets Debtors 5 9,77 16,49 Short-term investments 6 - - Deferred expenditure 7 - - Liaison accounts 8 2 395,42 2 446,01 Cash at bank 8 - - Total assets 2 405,19 2 462,51 LIABILITIES Fund capital Contributions 1 7 500,00 7 500,00 EIB special contribution 2 60,00 60,00 Stabex contributions - - 7 560,00 7 560,00 Total inter-fund transfers 9 - 343,53 - 311,29 7 216,47 7 248,71 Capitalised income 10 222,88 222,88 Total Fund capital 7 439,35 7 471,59 Other sources of funds Payments 11 - 7 312,16 - 7 282,16 Recoveries 5 5,54 4,58 Transactions to be finalised 12 - 6,84 - 10,80 Doubtful debt provisions 8 - - Creditors 13 - - Liaison accounts 8 2 279,31 2 279,31 Total liabilities 2 405,19 2 462,51





6th EDF Income & Expenditure Account for the year ended 31 December 2004

(million EUR) Notes Balance at 1.1.2004 I&E for the year ended 31.12.2004 Balance at 31.12.2004 Inter EDF transfers 9 - 311,29 - 32,24 - 343,53 Transfer on closing 8 - 166,70 50,59 - 116,11 Total income - 478,00 18,35 - 459,65 Programmable aid 4 696,06 27,20 4 723,25 Regional programs 10,00 - 10,00 Interest-rate subsidies 84,02 - 84,02 Emergency aid 179,90 - 179,90 Refugee aid 94,72 - 94,72 Aids Fund 2,53 - 2,53 Risk Capital 537,21 2,28 539,49 Stabex 1 451,12 - 1 451,12 Sysmin 128,11 0,04 128,15 Rehabilitation Programmes 85,53 0,33 85,86 Structural adjustment 5,33 - 5,33 7 274,54 29,84 7 304,38 Transactions awaiting finalisation 22,73 - 11,65 11,08 Total operational expenditure 14 7 297,27 18,19 7 315,46 Administrative and financial costs 15 7,62 0,16 7,78 Excess of expenditure over income - 7 782,88 0,16 - 7 775,10

1.4. 7TH EUROPEAN DEVELOPMENT FUND

7th EDF Balance Sheet at 31 December 2004

(million EUR) Notes 2004 2003 ASSETS Long term assets Contributions Initial allocation 1 10 940,00 10 940,00 EIB special contribution 2 - - less: amounts called up 3 - 10 940,00 - 10 940,00 - - Amounts called up 3 10 940,00 10 940,00 less: payments received 4 - 10 940,00 - 10 940,00 - - Stabex contributions Initial allocation - - less: amounts called up and received - - - - Net contributions receivable - - Current assets Debtors 5 8,00 4,06 Short-term investments 6 - - Deferred expenditure (STABEX) 7 9,03 9,53 Liaison accounts 2 279,31 2 279,31 Cash at bank 8 - - Total assets 2 296,34 2 292,89 LIABILITIES Fund capital Contributions 1 10 940,00 10 940,00 EIB special contribution 2 - - Stabex contributions - - 10 940,00 10 940,00 Total inter-fund transfers 9 - 473,06 - 420,58 10 466,94 10 519,42 Capitalised income 10 400,74 406,68 Total Fund capital 10 867,68 10 926,10 Other sources of funds Payments 11 - 9 849,57 - 9 605,10 Recoveries 5 8,00 4,06 Transactions to be finalised 12 - - Doubtful debt provisions 8 - - Creditors 13 9,03 - liaison accounts 1 261,20 967,84 Total liabilities 2 296,34 2 292,89





7th EDF Income & Expenditure Account for the year ended 31 December 2004

(million EUR) Notes Balance at 1.1.2004 I&E for the year ended 31.12.2004 Balance at 31.12.2004 Stabex Interest 5, 10 312,46 - 312,46 European bank interest 5, 10 22,47 - 22,47 EIB interest 5, 10 3,41 - 3,41 Interest late contributions 5, 10 6,21 - 6,21 Inter EDF transfers 9 - 420,34 - 52,72 - 473,06 Transfer on closing 8 - 1 311,47 293,36 - 1 018,11 Total income - 1 387,25 240,64 - 1 146,61 Programmable aid 4 702,40 203,06 4 905,47 Regional programs 50,00 - 50,00 Interest-rate subsidies 201,99 0,67 202,66 Emergency aid 405,81 - 0,42 405,39 Refugee aid 84,47 0,04 84,51 Risk Capital 764,56 10,07 774,64 Stabex 1 589,33 0,50 1 589,83 Sysmin 323,21 20,33 343,54 Rehabilitation programmes 294,89 10,09 304,98 Structural adjustment 1 148,43 0,12 1 148,54 Debt relief 40,00 - 40,00 Total operational expenditure 14 9 605,10 244,47 9 849,57 Excess of expenditure over income - 10 992,36 - 3,82 - 10 996,18

1.5. 8TH EUROPEAN DEVELOPMENT FUND

8th EDF Balance Sheet at 31 December 2004

(million EUR) Notes 2004 2003 ASSETS Long term assets Contributions Initial allocation 1 11 040,00 11 040,00 EIB special contribution 2 - - less: amounts called up 3 - 4 635,00 - 2 320,00 6 405,00 8 720,00 Amounts called up 3 4 635,00 2 320,00 less: payments received 4 - 4 592,62 - 2 224,23 42,38 95,77 Stabex contributions Initial allocation 1 800,00 1 800,00 less: amounts called up and received - 1 800,00 - 1 800,00 - - Net contributions receivable 6 447,38 8 815,77 Current assets Debtors 5 3,71 1,13 Short-term investments 6 - - Deferred expenditure (STABEX) 7 421,14 418,30 Liaison accounts 8 - - Cash at bank 8 - - Total assets 6 872,23 9 235,19 LIABILITIES Fund capital Contributions 1 11 040,00 11 040,00 EIB special contribution 2 - - Stabex contributions 1 800,00 1 800,00 12 840,00 12 840,00 Total inter-fund transfers 9 - 1 319,54 - 1 112,55 11 520,46 11 727,45 Capitalised income 10 72,04 62,41 Total Fund capital 11 592,50 11 789,86 Other sources of funds Payments 11 - 7 531,11 - 6 339,20 Recoveries 5 3,71 1,13 Transactions to be finalised 12 - - Doubtful debt provisions 8 - - Creditors 13 421,14 427,82 Liaison accounts 8 2 385,99 3 355,58 Total liabilities 6 872,23 9 235,19





8th EDF Income & Expenditure Account for the year ended 31 December 2004

(million EUR) Notes Balance at 1.1.2004 Income & Expenditure for the year ended 31.12.2004 Balance at 31.12.2004 Interest on late contributions Stabex 5, 10 1,86 - 1,86 Stabex interest — security accounts 5, 10 25,10 9,63 34,73 Capitalised EU banks interest 5, 10 35,45 - 35,45 Inter EDF transfers 9 - 1 112,55 - 207,00 - 1 319,54 Transfer on closing 8 3 355,58 - 969,59 2 385,99 Total income 2 305,44 - 1 166,95 1 138,49 Programmable aid 2 290,97 799,62 3 090,59 Macro-economic support 199,87 103,81 303,69 Interest-rate subsidies 55,91 8,94 64,85 Emergency aid 132,41 2,45 134,87 Aid to refugees 56,77 26,51 83,28 Risk capital 692,04 130,93 822,98 STABEX 363,13 6,79 369,92 Sysmin 84,52 6,84 91,36 Structural adjustment 1 390,09 89,57 1 479,66 Payments world bank 380,00 - 380,00 Payments HIPC 680,00 - 680,00 Total operational expenditure 14 6 325,73 1 175,46 7 501,19 Costs linked to devolution 15 13,48 16,44 29,92 Excess of expenditure over income - 4 033,76 - 2 358,86 - 6 392,62

1.6. 9TH EUROPEAN DEVELOPMENT FUND

9th EDF Balance Sheet at 31 December 2004

(million EUR) Notes 2004 2003 ASSETS Long term assets Contributions Initial allocation 1 10 910,15 10 555,15 EIB special contribution 2 - - less: amounts called up 3 - 105,00 - 10 805,15 Amounts called up 3 105,00 - less: payments received 4 - 105,00 - - - Stabex contributions Initial allocation - - less: amounts called up and received - - - - Net contributions receivable 10 805,15 10 555,15 Current assets Debtors 5 4,31 4,58 Short-term investments 6 - 3,15 Deferred expenditure (CONGO) 7 106,83 - Liaison accounts 1 581,74 2 257,96 Cash at bank 8 798,88 526,16 Total assets 13 296,91 13 347,01 LIABILITIES Fund capital Contributions 1 10 910,15 10 555,15 EIB special contribution 2 - - Stabex contributions - - 10 910,15 10 555,15 Total inter-fund transfers 9 2 984,87 2 693,15 13 895,02 13 248,30 Capitalised income 10 9,02 - 2,97 Total Fund capital 13 904,04 13 245,33 Other sources of funds Payments 11 - 1 225,22 - 277,66 Recoveries 5 0,93 - Transactions to be finalised 12 - 0,03 - Doubtful debt provisions 8 - 0,02 - 2,75 Creditors 13 287,24 1,53 Liaison accounts 329,96 380,56 Total liabilities 13 296,91 13 347,01





9th EDF Income & Expenditure Account for the year ended 31 December 2004

(million EUR) Notes Balance at 1.1.2004 I&E for the year ended 31.12.2004 Balance at 31.12.2004 Capitalised interest 5, 10 - 1,80 1,80 European bank interest 5, 10 2,94 1,51 4,45 Stabex interest 5, 10 10,06 - 2,63 7,43 EIB interest 5, 10 0,10 0,02 0,12 Interest on late contributions 5, 10 0,02 0,71 0,73 Interest on Congo special Fund 5, 10 - 1,92 1,92 Inter EDF transfers 9 2 692,91 291,96 2 984,87 Transfer on closing 8 - 1 877,40 625,63 - 1 251,77 Total income 828,63 295,28 3 001,32 Macro-economic support 49,00 276,37 325,37 Sectoral policy 18,89 277,77 296,65 Humanitarian Aid 37,56 118,77 156,33 Compensation export receipts - 20,67 20,67 Centre for the development of enterprise - 14,64 14,64 Centre for the development of agriculture - 12,46 12,46 General Assembly - 0,63 0,63 Special operations - - - Technical assistance 0,25 0,06 0,32 Regional indicative programs 1,60 12,12 13,72 Social sectors 170,00 5,55 175,55 Methodological and developmental support - 5,74 5,74 Natural resources 0,35 0,07 0,42 Private sector - 1,18 1,18 Peace building and conflict prevention - 39,48 39,48 Miscellaneous - 6,87 6,87 Debt relief (HIPC) - 100,00 100,00 Congo Fund - 0,09 0,09 277,66 892,48 1 170,13 Transactions awaiting finalisation - 0,03 0,03 Total operational expenditure 14 277,66 892,51 1 170,16 Implementation expenses 15 - 55,08 55,09 Provision for loss on short term investment 6 3,15 - 3,15 - Provision for doubtful debts 8 2,75 - 3,15 0,02 Provision for bank charges 13,2 0,10 - 0,05 0,05 Excess of expenditure over income 544,97 - 646,37 1 776,00

1.7. STATEMENT OF SOURCES AND USES OF FUNDS FOR THE 6TH, 7TH, 8TH AND 9TH EDFs

(million EUR) Treasury, ACP paying agents and EUR paying agents Treasury balance (excluding Stabex) at 1.1.2004 82,27 Contributions from Member States 2 652,32 2 547,32 Interest paid on late contributions 1,33 Interest 5,24 Decrease in transactions awaiting finalisation 3,96 Decrease in provision for doubtful debts 2,74 Decrease in advances 7,69 Total sources 2 673,27 Operational payments 2 406,41 Total uses 2 406,41 Treasury balance (excluding Stabex) at 31.12.2004 349,13 Stabex current account Stabex current account balance at 1.1.2004 22,20 Interest receipts 0,39 Receipts on investment sales 3,15 Total sources 3,54 Decrease in portfolio value 6,12 Transfer to security accounts - Portfolio management costs 0,02 Transfer to European bank accounts - Total uses 6,14 Stabex current account balance at 31.12.2004 19,59 Stabex security accounts Stabex security accounts balance at 1.1.2004 427,82 Transfers from Stabex current account - Interest received 9,63 Total sources 9,63 Stabex payments 7,29 Total uses 7,29 Stabex security accounts balance at 31.12.2004 430,17

1.8. NOTES TO THE ACCOUNTS

1) Initial allocation

(million EUR) Initial allocation 6th EDF 7th EDF 8th EDF 9th EDF Total Total 2003 7 500,00 10 940,00 11 040,00 10 555,15 40 035,15 2004 conditional billion 250,00 250,00 Congo Fund 105,00 105,00 Total 2004 7 500,00 10 940,00 11 040,00 10 910,15 40 390,15

This represents the total amount receivable from the Member States for the relevant EDF fund as laid down in 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 million Euro, has since been increased by an amount of 105 million Euro, 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.

A further 250 million Euro was taken from the 1 000 million Euro reserve (Article 2(2) of the Internal Agreement for the 9th EDF) following the adoption of Council Decision 2004/289/CE in order to establish a water facility.

2) EIB special contribution

The Special EIB contribution provided for by Council Decision 87/592/EEC of 14 December 1987 has been used to finance the special programme for highly indebted countries.

3) Contributions called up

(million EUR) Contributions called up 6th EDF 7th EDF 8th EDF 9th EDF Total Total 2003 7 560,00 10 940,00 2 320,00 - 20 820,00 2004 Member states 2 215,00 2 215,00 BEI 100,00 105,00 205,00 Total 2004 7 560,00 10 940,00 4 635,00 105,00 23 240,00

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

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

In an extraordinary meeting of the ACP Working Group at Council on 26 October 2004, Member States unanimously agreed that the EIB should transfer an amount of 100 million Euro from its EDF treasury to the Commission’s EDF treasury, with a consequent reduction of the overall amount of the contributions from Member States.

4) Contributions received

(million EUR) Contributions received 6th EDF 7th EDF 8th EDF 9th EDF Total Total 2003 7 560,00 10 940,00 2 224,23 - 20 724,23 2004 Member states 2 268,39 2 268,39 BEI 100,00 105,00 205,00 Total 2004 7 560,00 10 940,00 4 592,62 105,00 23 197,62

Details of contributions called up and received during the year 2004 are shown in table 1. The EIB contribution is the sum of the Special Congo Contribution (see notes 1 and 3) and the 100 million Euro transfer referred to in note 3 above.

Table 1

Contributions called up and received for the year ended 31 December 2004

(million EUR) % Called up in 2003 Received in 2003 Outstanding at 31.12.2003 Called up in 2004 Received in 2004 Outstanding at 31.12.2004 Total called up Austria 2,65 56,18 56,18 - 58,70 58,70 - 120,18 Belgium 3,92 83,10 83,10 - 86,83 86,83 - 177,77 Denmark 2,14 45,37 45,37 - 47,40 47,40 - 97,05 Finland 1,48 31,38 31,38 - 32,78 32,78 - 67,12 France 24,30 515,16 434,25 80,91 538,25 576,78 42,38 1 102,01 Germany 23,36 495,23 495,23 - 517,42 517,42 - 1 059,38 Greece 1,25 26,50 26,50 - 27,69 27,69 - 56,69 Ireland 0,62 13,14 13,14 - 13,73 13,73 - 28,12 Italy 12,54 265,85 265,85 - 277,76 277,76 - 568,69 Luxemburg 0,29 6,15 6,15 - 6,42 6,42 - 13,15 Netherlands 5,22 110,66 110,66 - 115,62 115,62 - 236,73 Portugal 0,97 20,56 16,49 4,07 21,49 25,56 - 43,99 Spain 5,84 123,81 123,81 - 129,36 129,36 - 264,84 Sweden 2,73 57,88 47,09 10,78 60,47 71,25 - 123,81 United Kingdom 12,69 269,03 269,03 - 281,08 281,08 - 575,49 EIB - 205,00 205,00 - 205,00 100,00 2 120,00 2 024,23 95,77 2 420,00 2 473,39 42,38 4 740,00

5) Debtors

The detail of this heading is detailed in table 2:

Table 2

(million EUR) Debtors Notes 6th 7th 8th 9th Total at 31.12.2004 Total at 31.12.2003 Interest on late contributions 5.1 - - - 2,43 2,43 3,29 Interest on late contributions — Stabex 5.2 - - - 0,79 0,79 0,79 Interest receivable — European banks 5.3 - - - 0,16 0,16 0,47 Interest receivable — Stabex main account 5.4 - - - - - 0,03 Advances bourses 5.5 4,24 - - - 4,24 11,93 Recoveries and VAT 5.6 5,54 8,00 3,71 0,93 18,18 9,76 Total 9,77 8,00 3,71 4,31 25,79 26,27

Until the 2003 financial year, interest earned was presented in the balance sheet of the 7th EDF. As and from 2004, for reasons of coherence, interest income is presented in the balance sheet of the 9th EDF (including interest earned in 2003, in accordance with the provisions of the Cotonou Agreement — see also note 16). The sole exception is STABEX security interest which is presented in 8th EDF as this aid instrument does not feature in the 9th EDF.

5.1) Interest on late contributions

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

Table 2.1

Interest for late payment of EDF contributions for the year ended 31.12.2004

(million EUR) Balance at 1.1.2004 Interest charged 2004 Interest paid 2004 Balance at 31.12.2004 Austria 0,01 - - 0,01 Belgium 0,02 0,05 0,06 0,01 Denmark - - - - Finland 0,00 0,00 0,00 - France 2,10 0,26 1,18 1,18 Germany - 0,10 - 0,10 Greece 0,01 - 0,01 - Ireland 0,00 - - 0,00 Italy - - - - Luxemburg 0,00 0,01 - 0,01 Netherlands - - - - Portugal 0,04 0,02 0,03 0,03 Spain 0,06 - - 0,06 Sweden 0,03 0,03 0,06 - United Kingdom 1,02 - - 1,02 Total 3,29 0,47 1,33 2,43

5.2) Interest on late contributions STABEX

All STABEX contributions were received prior to the beginning of the 2004 financial year. The amount shown for interest due represents the outstanding balance carried over from last year and corresponds to interest due from France.

5.3) Interest receivable European banks

This amount represents interest earned on the European bank accounts during the financial year 2004 but only credited to the bank accounts in 2005.

5.4) Interest receivable — STABEX main account

This amount represents interest earned on the STABEX current account during the financial year 2004 but only credited to the bank account in 2005.

5.5) Advances

This amount corresponds to advances for study awards and to bodies such as GTZ, AGRER and AEC, as shown in table 2.2.

Table 2.2

(million EUR) 6th EDF Balance at 31.12.2004 Balance at 31.12.2003 Study awards 2,41 1,53 AEC 0,56 0,56 AGRER - 0,37 GTZ 1,24 9,43 Adjustments 0,03 0,03 Total 4,24 11,93

5.6) Recoveries

In previous years, all negative payments were considered as recoveries. During the financial year 2004 a new procedure for the follow up of the recoveries has been put in place by the Accounting Officer, in order to distinguish between recoveries and other negative transactions. As a result the figures for open recovery orders have been restated. The difference in the 7th EDF (- 17,73 million Euro, see also note 16) is due to an error made in the calculation of the euro counter value of local currency recovery orders, when originally establishing the closing balance as of 31.12.2003.

The movements for the year on recoveries are shown below in table 2.3:

Table 2.3

(million EUR) Open recovery orders at 31.12.2003 Correction of opening balance Open recovery orders at 1.1.2004 New recovery orders issued in 2004 Recovery orders closed in 2004 Open recovery orders at 31.12.2004 6th EDF 0,54 - 0,54 4,60 0,48 4,66 7th EDF 21,79 - 17,73 4,06 9,27 5,33 8,00 8th EDF 1,13 - 1,13 15,64 13,06 3,71 9th EDF - - - 17,06 16,13 0,93 Transactions to be finalised 4,04 - 4,04 2,17 5,33 0,88 Total 27,50 -17,73 9,76 48,75 40,34 18,18

The closing balance for recovery orders (18,18 million Euro) represents the value of recovery orders issued but unpaid at the year end. During 2004, recovery order files closed amounted to € 40,34 million (including a ‘one-off’ recovery of 15 million Euro from DG RELEX). Of this total, an amount of 970 161,53 Euro was written off by the Authorising Officer during the year and an amount of 3 169 860,39 Euro was recovered by the Accounting Officer by way of offsetting, in accordance with the provisions of Article 46 of the 9th EDF Financial Regulation.

6) Short-term investments

Up to 2003 the funds from the main STABEX account which had not yet been transferred to a STABEX security account were invested. The value shown for short-term investments in the 2003 accounts included a provision for the loss resulting on the disposal of the last of the portfolio.

The shares in question were actually sold on 29 December 2003 — however the proceeds from the sale were not received until 6 January 2004. The portfolio had therefore been completely disposed of as at 31.12.2003 even if the proceeds from the sale were not credited to the bank account until after the year end.

Some misprints in 2003 accounts concerning sales price and the resultant profit/loss have been corrected in the table below.

Details of the profit and loss on the sale of individual investments are shown in table 3:

Table 3

(million EUR) Cost Sales price Profit/loss Portfolio at 1.1.2003 107,25 11.7.2003 sale - 3,73 4,18 0,46 11.7.2003 sale - 25,45 27,22 1,77 11.7.2003 sale - 5,81 6,24 0,43 11.7.2003 sale - 9,86 11,12 1,26 11.7.2003 sale - 20,94 21,94 1,00 11.7.2003 sale - 20,32 22,03 1,71 11.7.2003 sale - 5,05 5,56 0,51 1.12.2003 sale - 9,98 10,54 0,56 - 101,12 108,82 7,70 Portfolio at 31.12.2003 6,12 - - 6.1.2004 sale - 3,06 2,22 -0,84 6.1.2004 sale - 3,06 0,93 -2,13 - 6,12 3,15 -2,97 Portfolio at 31.12.2004 -

7) Deferred expenditure

(million EUR) Deferred expenditure 6th EDF 7th EDF 8th EDF 9th EDF Total Total 2003 - 9,53 418,30 - 427,82 2004 Stabex - 9,03 421,14 - 430,17 Congo Fund - - - 106,83 106,83 Total 2004 - 9,03 421,14 106,83 537,00

This heading represents the total funds available for the relevant ACP State. The amount shown in 7th and 8th EDF concerns STABEX deferred expenditure, whilst the amount shown in 9th EDF concerns the available Special Congo Fund.

A change in accounting policy was adopted during 2003 in relation to STABEX expenditure. In prior years amounts transferred to the STABEX security accounts (see also note 8.5 below) had been treated 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 European Commission it was considered more appropriate not to consider these transfers as expenditure in the accounts and to amend previous transactions accordingly. As and from 2003 accounts, the total of the STABEX deferred expenditure represents the total of STABEX funds available and which will be transferred to the relevant beneficiary ACP State at some future date. These final transfers to the beneficiaries will in future be accounted for as expenditure.

8) Cash at bank and transfers on closing

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.

(million EUR) Transfer on closing 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2004 to/from 6th EDF - 2 279,31 - 2 065,45 - 329,96 - 116,11 to/from 7th EDF - 2 279,31 - - 1 261,20 - 1 018,11 to/from 8th EDF 2 065,45 - - 320,54 2 385,99 to/from 9th EDF 329,96 - 1 261,20 - 320,54 - - 1 251,77 116,11 1 018,11 -2 385,99 1 251,77 -

Balances on the liaison accounts at 31.12.2004 are detailed in table 4.1.

Table 4.1

(million EUR) Liaison accounts 6th EDF 7th EDF 8th EDF 9th EDF Total 2003 Assets 2 446,01 2 279,31 - 2 257,96 6 983,28 Liabilities 2 279,31 967,84 3 355,58 380,56 6 983,28 Total 2003 166,70 1 311,47 - 3 355,58 1 877,40 - 2004 Assets 2 395,42 2 279,31 - 1 581,74 6 256,47 Liabilities 2 279,31 1 261,20 2 385,99 329,96 6 256,47 Total 2004 116,12 1 018,11 - 2 385,99 1 251,77 -

Until 2003 financial year, the treasury has been presented in the balance sheet of the 6th EDF. As from 2003 the treasury is presented in the balance sheet of the 9th EDF in accordance with Article 129 of the 9th EDF Financial Regulation. Table 4 shows the breakdown of total cash at bank:

Table 4

(million EUR) 9th EDF — Cash at bank Notes Balance at 31.12.2004 Balance at 31.12.2003 Treasury accounts 8.1 82,33 9,98 ACP Paying Agents 8.2 42,73 57,87 EUR Paying Agents 8.3 17,04 17,16 STABEX current account 8.4 19,59 16,07 STABEX security accounts 8.5 430,17 427,82 Congo Special Fund 8.4 106,83 - Provision doubtful debts 8.6 - - 2,74 Funds en route 8.7 100,20 - Total 798,88 526,16

8.1) Treasury accounts

Accounts held with the central banks of the Member States into which EDF contributions are paid.

8.2) ACP paying agents

Amounts held in bank accounts in the ACP States used for making payments locally. 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). The accounts are kept in euros and are used for payments to beneficiaries within the Union. 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.

8.4) STABEX current account and Special Congo Fund account

This amount represents the cash balance remaining on the principal STABEX account and the Special Congo Fund account.

8.5) STABEX security accounts

For the purposes of transparency and sound financial management and to secure the amounts due to the ACP countries prior to utilisation, it was decided during 2001 to open an account in the Commission’s name with a European commercial bank consisting of sub-accounts in the name of each beneficiary state. Detailed information on the accounts opened in the name of the various beneficiary States are given in table 4.2:

Table 4.2

STABEX movement schedule for the year ended 31.12.2004

(million EUR) Balance per 31.12.2003 Interest Transfers Payments Balance at 31.12.2004 BENIN 0,04 0,00 - - 0,05 BURKINA FASO 0,73 0,02 - - 0,75 BURUNDI 26,18 0,61 - 0,50 26,29 CAMEROON 5,15 0,12 - - 5,27 COMOROS 0,05 0,00 - - 0,05 DOMINICA 5,06 0,12 - - 5,18 ETHIOPIA 0,86 0,03 - - 0,88 GAMBIA 0,96 0,02 - - 0,98 GRENADA 0,31 0,01 - - 0,32 GUINEA-BISSAU 0,32 0,01 - - 0,32 HAITI 2,80 0,02 - 2,82 - COTE D'IVOIRE 41,04 0,97 - - 42,01 JAMAICA 4,50 0,04 - 3,96 0,57 MADAGASCAR 13,24 0,31 - - 13,55 MALAWI 0,87 0,02 - - 0,89 MAURITANIA 16,99 0,40 - - 17,39 PAPUA-NEW GUINEA 0,63 0,01 - - 0,64 RWANDA 5,49 0,13 - - 5,62 SENEGAL 9,63 0,23 - - 9,86 SIERRA LEONE 2,92 0,07 - - 2,99 SAINT LUCIA 13,10 0,31 - - 13,41 SOLOMON ISLANDS 28,83 0,68 - - 29,50 SUDAN 192,74 4,18 - - 196,92 ST VINCENT & GRENADINES 3,78 0,09 - - 3,87 TANZANIA 29,58 0,69 - - 30,27 TONGA 0,08 0,00 - - 0,08 UGANDA 19,25 0,48 - - 19,73 ZIMBABWE 2,70 0,06 - - 2,77 Total 427,82 9,63 - 7,29 430,17

8.6) Provision for doubtful debts

(million EUR) Doubtful debts provision 9th EDF Total 2003 Zaire bank account 2,74 2,74 Recoveries 0,01 0,01 Total 2003 2,75 2,75 2004 Zaire bank account - - Recoveries 0,02 0,02 Total 2004 0,02 0,02

In previous years recoveries which were written off were netted off against payments, meaning that they were not separately identified in the accounts. Towards the end of 2003 a new procedure was introduced whereby amounts written off will be posted to the provision for doubtful debts and if appropriate written off to a specific bad debts account.

In 2003, following the prudence principle, a provision was created for the full balance of an old bank account in Congo (former Zaire) amounting to 2,74 million Euro, about which there were some doubt as to recoverability due to the fact that there was no Commission presence in the country and there had been no movements on the account for several years. However as the bank balance was confirmed to the Commission during 2004 (on resumption of activities in the country), this provision has now been reversed.

The amount of 15 498,96 Euro registered under this heading at 31.12.2004, concerns recovery orders from 6th and 7th EDF.

8.7) Funds en route

Some replenishments sent before the year end were only registered by the beneficiary bank in 2005.

9) Inter-fund transfers

This heading shows resources transferred from other funds which increase the appropriation of the receiving fund and reduce that of the Fund of origin. The total balance is shown in table 5 below.

Table 5

(million EUR) Inter-EDF transfers 6th EDF 7th EDF 8th EDF 9th EDF Consolidate Total at 31.12.2004 to/from 4th EDF 144,32 - - - - 144,32 to/from 5th EDF 177,63 526,78 - - - 704,41 to/from 6th EDF - 181,76 94,00 389,73 665,49 665,49 to/from 7th EDF - 181,76 - 532,82 648,78 999,84 999,84 to/from 8th EDF - 94,00 - 532,82 - 1 946,36 1 319,54 1 319,54 to/from 9th EDF - 389,73 - 648,78 - 1 946,36 - - 2 984,87 - 2 984,87 Total - 343,53 - 473,06 - 1 319,54 2 984,87 - 848,74

After the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the 9th EDF after decommittment. Table 2.1 on the Report on Financial Implementation shows the amounts still committed for ongoing projects under 4th EDF (91,15 million Euro transferred to 6th EDF. See table 2.2) and 5th (349,77 million Euro transferred to 7th EDF. See table 2.3).

10) Capitalised income

Until 2003 financial year, the interest earned has been presented in the balance sheet of the 7th EDF. As from 2004 for reasons of coherence the interest income is presented in the balance sheet of the 9th EDF with the exception of STABEX security interest which is presented in 8th EDF due to absence of this aid instrument in the 9th EDF.

Although interest income on STABEX late contributions is presented as well under the 8th EDF, it has been transferred to the 9th EDF during 2005 financial year. This amount is not yet booked on the Authorising Officer accounts and therefore there is a difference between the total fund capital presented in the balance sheet and the total appropriations shown in the Report on Financial Implementation (see table 2.1 on the report).

Capitalised income is shown in table 6 below:

Table 6

(million EUR) Capitalised income Notes 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2004 Total at 31.12.2003 Capitalised interest 10,1 13,70 49,00 35,45 1,80 99,95 98,15 Stabex interest 10,1 24,08 319,89 - 343,97 348,46 EIB interest 10,1 - 3,41 - 0,12 3,53 3,51 European banks interest 10,1 - 22,47 - 4,45 26,92 25,42 Interest late contributions 10,2 - 5,96 1,86 0,73 8,56 6,23 Replenishment of Stabex resources 10,3 185,10 - - - 185,10 185,10 Provision for loss on short term investments 6 - - - - - - 2,97 Interest income Stabex security accounts 10,4 - - 34,73 - 34,73 25,10 Interest income special Congo contribution 10,5 - - - 1,92 1,92 - Total 222,88 400,74 72,04 9,02 704,68 689,00

10.1) Capitalised interest, capitalised STABEX interest, EIB interest, European bank 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 projects. This interest results in an effective increase in the Funds’ overall appropriations.

10.2) Interest on late contributions

This is interest from late payment of contributions which can be committed for the financing of projects. This interest results in an effective increase in the Funds’ overall appropriations.

10.3) Replenishment of STABEX resources

This heading 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.

10.4) Interest income, STABEX security accounts

(See also note 7 above)

This represents the accumulated income generated by the STABEX security accounts. 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 beneficiary state.

10.5) Interest income, Special Congo Fund

This represents the cumulated income generated by the Special 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 account is earmarked for the specific purpose set out in Council Decision 2003/583/EC.

11) Payments

These amounts represents total project expenditure for the Fund(s) in question and includes advance payments to World Bank (209 million Euro in 2003; 100 million Euro in 2004) and final transfers of STABEX funds (to accounts held by the beneficiary ACP States), amounting to 114 million Euro in 2003 and 7 million Euro in 2004.

In order to present a true and fair view of the EDF financial situation, a change in accounting policy for STABEX payments (see note 7 above) was reflected in the 2003 Financial Statements. The differences between the restated figures, presented in these Financial Statements, and the figures drawn from the accounting system, presented in the Report on Financial Implementation (see section 2.2 ‘consolidated accounts’) are as follows:

Year Financial Statements restated figures (1) Accounting system figures (2) Difference 3 = (1-2) 2001 1 722,83 2 067,86 - 345,03 2002 1 872,33 1 852,72 19,61 2003 2 288,80 2 179,47 109,33 2004 2 413,93 2 197,84 216,09 Cumulative 25 918,06 25 913,69 4,36

It was not possible to give effect to all the relevant transactions in the accounting system before the date of the closure of the 2004 financial year. As a result, there is a difference of 4,36 million Euro (see cumulative figures above) between both sets of figures. This situation will be rectified during 2005.

12) Transactions awaiting finalisation

(million EUR) Transactions awaiting finalisation 6th EDF 9th EDF Total 2003 - transactions to be finalised 10,80 - 10,80 advances bourses (note 5.5) 11,93 - 11,93 Total 2003 22,73 - 22,73 2004 - transactions to be finalised 6,84 0,03 6,87 advances bourses (note 5.5) 4,24 - 4,24 Total 2004 11,08 0,03 11,11

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects as shown in table 7.

Table 7

(million EUR) Transactions to be finalized 6th EDF 9th EDF Total at 31.12.2004 Total at 31.12.2003 co financing - - - 0,28 expenditure to be finalised 6,93 - 6,93 10,61 devaluation - 0,09 - - 0,09 - 0,09 compensation transactions - 0,52 0,52 - income to be regularised - - 0,49 - 0,49 - Total 6,84 0,03 6,87 10,80

13) Creditors

The total creditor balance is detailed in table 8:

Table 8

(million EUR) Creditors Notes 6th EDF 7th EDF 8th EDF 9th EDF Total at 31.12.2004 Total at 31.12.2003 Contributions received in advance 13.1 - - - 180,36 180,36 1,43 Provision for bank charges 13.2 - - - 0,05 0,05 0,10 Outstanding Stabex payments 13.3 - 9,03 421,14 - 430,17 427,82 Outstanding Special Congo funds 13.4 - - - 106,83 106,83 - Total - 9,03 421,14 287,24 717,40 429,35

13.1) Contributions received in advance

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

Table 8.1

(million EUR) Contributions received in advance Balance at 31.12.2003 Balance at 31.12.2004 Ireland - 0,16 Italy 1,13 - Luxemburg 0,30 - United Kingdom - 180,20 Total 1,43 180,36

13.2) Provisions for bank charges

This amount is made up of transactions relating to bank charges for the year ended 31 December 2004, which were debited to the relevant bank accounts after the year end.

13.3) Outstanding STABEX payments

(See also notes 7, 8.5 and 10.4 above).

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

13.4) Outstanding Special Congo Funds

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

14) Expenditure

These amounts show the fund expenditure by aid instrument.

15) Administrative expenditure and financial costs

(million EUR) Administrative expenditure and financial costs 6th EDF Costs linked to devolution 8th EDF Implementation expenses 9th EDF Total 2003 7,62 13,48 0,00 21,10 2004 7,78 29,92 55,09 92,78

These amounts are detailed in tables 9 to 11:

Table 9

(million EUR) Administrative expenditure and financial costs — 6th EDF Balance at 1.1.2004 Charge for the year Balance at 31.12.2004 Financial costs 0,08 0,02 0,11 Interest on late payments 0,10 - 0,10 Year end re-evaluations 4,17 0,07 4,24 Interests and bank charges on account for advances on study grants - 0,06 - 0,00 - 0,06 Contract BDC 0,28 0,06 0,35 Service contract 0,09 - 0,09 Others 0,37 0,00 0,37 Total 5,03 0,16 5,18 Audit and evaluation costs financed from interest 2,59 - 2,59 Total 7,62 0,16 7,78

The implementation expenses related to the devolution process are financed following the provisions of articles 1.3, 4 and 9 of the Internal Agreement. The breakdown of theses expenses is shown in tables 10 (8th EDF) and 11 (9th EDF).

Table 10

(million EUR) Costs linked to devolution — 8th EDF Balance at 1.1.2004 Charge for the year Balance at 31.12.2004 Technical assistence AGEER — GTZ 4,79 - 4,79 Consultancy 0,94 0,87 1,80 Personnel costs (AIDCO) 1,13 1,41 2,55 Personnel costs (RELEX) 3,00 7,60 10,60 Other costs 0,60 0,46 1,06 Infrastructure costs 3,00 5,00 8,00 Audit 0,01 0,80 0,81 Personnel costs linked to Individual Experts management - 0,30 0,30 Total 13,48 16,44 29,92





Table 11

(million EUR) Implementation expenses Balance at 1.1.2004 Charge for the year Balance at 31.12.2004 Financial costs - 0,17 0,17 Individual experts - 1,03 1,03 Year end re-evaluations - 0,11 0,11 Personnel costs (RELEX) - 20,60 20,60 Other costs (RELEX) - 6,40 6,40 Infrastructure costs (RELEX) - 26,28 26,28 Training 0,00 0,33 0,33 IT - 0,18 0,18 Total 0,00 55,08 55,09

16) Re-statement of certain figures for 2003

Certain figures for 2003 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.

As shown in the comparative consolidated balance sheet below, these corrections lead to a reduction of the total balance amounting to 17,54 million Euro. This is the sum of a decrease of 17,73 million Euro in the figure for Recovery Orders payable (Debtors), an increase of 0,18 million Euro of the value of the short term investments and a decrease of 0,01 million Euro in the doubtful debt provision which was double counted in 2003 balance sheet by error. Details are set out in the table below:

Consolidated Balance Sheet of the 6th, 7th, 8th and 9th EDF at 31 December 2004

(million EUR) Notes Restated closing balance 2003 Correction of opening balance Balance as originally shown in 2003 accounts ASSETS Long term assets Contributions Initial allocation 1 40 035,15 - 40 035,15 EIB special contribution 2 60,00 - 60,00 less: amounts called up 3 - 20 820,00 - - 20 820,00 19 275,15 - 19 275,15 Amounts called up 3 20 820,00 - 20 820,00 less: payments received 4 - 20 724,23 - - 20 724,23 95,77 - 95,77 Stabex contributions Initial allocation 1 800,00 - 1 800,00 less: amounts called up and received - 1 800,00 - - 1 800,00 - - - Net contributions receivable 19 370,92 - 19 370,92 Current assets Debtors 5 26,27 - 17,73 44,00 Short-term investments 6 3,15 0,18 2,97 Deferred expenditure 7 427,82 - 427,82 Cash at bank 8 526,16 - 526,16 Total assets 20 354,32 - 17,54 20 371,87 LIABILITIES Fund capital Contributions 1 40 035,15 - 40 035,15 EIB special contribution 2 60,00 - 60,00 Stabex contributions 1 800,00 - 1 800,00 41 895,15 - 41 895,15 Total inter-fund transfers 9 848,74 - 848,74 42 743,89 - 42 743,89 Capitalised income 10 689,00 0,18 688,82 Total Fund capital 43 432,89 0,18 43 432,71 Other sources of funds Payments 11 - 23 504,12 - - 23 504,12 Recoveries 5 9,76 - 17,73 27,50 Transactions to be finalised 12 - 10,80 - - 10,80 Doubtful debt provisions 8 - 2,75 0,01 - 2,76 Creditors 13 429,35 - 429,35 Total liabilities 20 354,32 - 17,54 20 371,87

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 No 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 maximum of EUR 1 200 million 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 No 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 EUR 25 million from the unallocated resources of the 8th EDF (general reserve) and allocated it to regional cooperation under the ACP-EC Partnership Agreement.

As last year, to ensure transparency in the presentation of the accounts the various tables below set out separately for each of the 6th, 7th and 8th EDFs the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Entry in the accounts and the presentation of accounts in connection with the Cotonou Agreement is based on Article 3(2) of Annex IV of 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 (1). 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 programme and intra-ACP cooperation).

9th EDF

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

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

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

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

Of the total 9th-EDF budget for the ACP States, EUR 1 000 million may only be released after examination by the EU Council in 2004, on the basis of a proposal from the European Commission. An initial tranche of EUR 250 million was released in 2004 in accordance with Council Decision 7189/04 of 22 March 2004 and allocated to the Intra ACP Fund (natural resources) to finance the Water Facility operation (EUR 42 million committed in 2004).

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:

9th EDF allocation Reduction/conditional billion Unopened allocations (EIB-managed) Open allocations OLAS Long-term development budget 10 000 000 000 (491 000 000) (186 850 000) (2) (interest-rate subsidies) 9 322 150 000 Regional budget 1 300 000 000 (96 000 000) 1 204 000 000 Investment facility 2 200 000 000 (163 000 000) (2 037 000 000) 0 Total 13 500 000 000 (750 000 000) (2 223 850 000) 10 526 150 000

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

The A allocation for macroeconomic support for sectoral policies, programmes and projects supporting focal or non-focal areas of Community aid corresponds to the allocation for the NIPs and structural adjustment in previous EDFs.

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

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

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.

Moreover, under Commission Decision E/982/2003 of 16 June 2003, all unspent balances from EDFs prior to the date of entry into force of the Cotonou Agreement (for ACP countries) and the date of entry into force of the internal agreement on the 9th EDF (for the OCT countries), and all amounts decommitted after those dates for ongoing projects under those EDFs, have been 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 subject to new programming under the 9th EDF.

The tables at Annex 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. Attention should be drawn to the impact which a reclassification carried out in 2004 had on Stabex security payments, reducing total payments that year by EUR 209 million.

2.1. APPROPRIATIONS AT 31.12.2004

Table 1.1

6TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF FUND BY INSTRUMENT

(million EUR) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2003 Increases or reductions in resources during 2004 Current appropriation ACP Lomé Grants 4 362,50 10,15 (31,36) 4 341,29 Special loans 600,00 (166,99) (0,08) 432,93 Interest-rate subsidies 207,50 (126,08) 81,42 Emergency aid 210,00 (30,61) 179,39 Aid for refugees 80,00 14,77 94,77 Risk capital 600,00 (70,30) 529,70 Stabex 925,00 522,12 1 447,12 Sysmin 415,00 (276,38) (0,59) 138,02 Transfer 4th EDF — 6th EDF 89,30 89,30 Structural adjustment 6,00 6,00 Intra ACP Allocation 10,00 10,00 General reserve TOTAL ACP 7 400,00 (18,01) (32,03) 7 349,96 OCT Grants 48,50 1,32 49,82 Special loans 25,00 (9,80) (0,21) 14,98 Interest-rate subsidies 2,50 0,10 2,60 Emergency aid 3,00 (2,49) 0,51 Aid for refugees 1,00 (1,00) Risk capital 15,00 (0,38) 14,62 Stabex 4,00 4,00 Sysmin 1,00 1,00 Transfer 4th EDF — 6th EDF 1,85 1,85 TOTAL OCT 100,00 (10,40) (0,21) 89,39 TOTAL 6TH EDF 7 500,00 (28,41) (32,24) 7 439,35

Table 1.2

6TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF MOVEMENTS DURING THE YEAR

(million EUR) 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 31.12.2003 (3) 4 372,65 433,01 81,42 179,39 94,77 530 1 447,12 138,62 89,30 6,00 10,00 0,00 7 381,99 (31,36) (0,08) (0,59) (32,03) Situation at 31.12.2004 4 341,29 432,93 81,42 179,39 94,77 529,70 1 447,12 138,02 89,30 6,00 10,00 0,00 7 349,96





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 31.12.2003 (3) 49,82 15,20 2,60 0,51 0 15 4 1 1,85 24,58 (0,21) (0,21) Situation at 31.12.2004 49,82 14,98 2,60 0,51 0 14,62 4,00 1,00 1,85 24,37

Table 1.3

7TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF FUND BY INSTRUMENT

(million EUR) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2003 Increases or reductions in resources during 2004 Current appropriation ACP Lomé Grants 6 215,00 (669,73) (42,07) 5 503,20 Interest-rate subsidies 280 ,00 (74,64) (5,21) 200,15 Emergency aid 250,00 154,82 (1,47) 403,35 Aid for refugees 100,00 (13,82) (1,31) 84,87 Risk capital 825,00 (3,47) (3,43) 818,10 Stabex 1 500,00 196,69 1 696,69 Sysmin 480,00 (33,69) (0,02) 446,29 Transfer 5th EDF — 7th EDF 0,00 343,54 (3,61) 339,93 Structural adjustment 1 150,00 1,28 (0,80) 1 150,48 Heavily indebted poor countries 40,00 40,00 Intra-ACP Allocation 50,00 50,00 General reserve TOTAL ACP 10 800,00 9,01 (57,92) 10 733,07 Grants 97,50 (9,99) (0,50) 87,01 Interest-rate subsidies 6,00 (1,78) 4,22 Emergency aid 2,50 (0,24) 2,26 Aid for refugees 0,50 (0,21) 0,29 Risk capital 25,00 (2,51) 22,49 Stabex 6,00 6,00 Sysmin 2,50 2,50 Transfer 5th EDF — 7th EDF 9,84 9,84 TOTAL OCT 140,00 (4,89) (0,50) 134,61 TOTAL 7TH EDF 10 940,00 (13,90) (58,42) 10 867,68

Table 1.4

7TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF MOVEMENTS DURING THE YEAR

(million EUR) 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 31.12.2003 (4) 5 545,27 205,36 404,82 86,18 821,53 1 696,69 446,31 343,54 1 151,28 40 50 0,00 10 790,99 (42,07) (5) (1,47) (1,31) (3,43) 0,00 (0,02) (3,61) (0,80) 0 0 0,00 (57,92) Situation at 31.12.2004 5 503,20 200 403,35 84,87 818 1 696,69 446,29 339,93 1 150,48 40 50 0,00 10 733,07





OCT Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital STABEX SYSMIN Transfer 5th EDF — 7th EDF TOTAL OCT Situation at 31.12.2003 (4) 88 4 2 0 22 6 3 10 135,11 (1) 0 0 0 0 (0,50) Situation at 31.12.2004 87 4 2 2 22 6 3 9,84 134,61

Table 1.5

8TH EDF

Situation of appropriations (EUR): 31 December 2003

ANALYSIS OF FUND BY INSTRUMENT

(million EUR) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2003 Increases or reductions in resources during 2004 Current appropriation ACP Lomé Grants 7 562,00 (1 756,12) (54,93) 5 750,95 Interest-rate subsidies 370,00 (246,51) (18,45) 105,04 Emergency aid 140,00 (0,01) (1,46) 138,53 Aid for refugees 120,00 (1,46) 118,54 Risk capital 1 000,00 210,23 (37,77) 1 172,46 Stabex 1 800,00 (1 136,53) 34,73 698,21 Sysmin 575,00 (453,83) (8,33) 112,84 Structural adjustment 1 400,00 204,83 (14,70) 1 590,14 Heavily indebted poor countries 1 060,00 1 060,00 Utilisation of interest income 38,15 38,15 Cotonou A envelope 552,21 (61,53) 490,68 B envelope 255,00 255,00 Regional 8,50 (8,50) TOTAL ACP 12 967,00 (1 265,53) (170,94) 11 530,53 OCT Grants 115,00 (68,12) (0,10) 46,78 Interest-rate subsidies 8,50 (6,13) (1,23) 1,14 Emergency aid 3,00 (3,00) Aid for refugees 0,50 (0,50) Risk capital 30,00 (21,50) 8,50 Stabex 5,50 (4,32) 1,18 Sysmin 2,50 2,50 TOTAL OCT 165,00 (103,57) (1,33) 60,11 TOTAL 8TH EDF 13 132,00 (1 369,10) (172,26) 11 590,64

Table 1.6

8TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF MOVEMENTS DURING THE YEAR

(million EUR) ACP Lomé Cotonou Total ACP Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital STABEX SYSMIN Structural adjustment Heavily indebted poor countries Utilisation of interest income A Envelope B Envelope Regional Situation at 31.12.2003 (5) (6) 5 805,88 123,49 139,99 118,54 1 210,23 663,47 121,17 1 604,83 1 060,00 38,15 552,21 255,00 8,50 11 701,47 (54,93) (18,45) (1,46) 0,00 (37,77) (8,33) (14,70) 0,00 0,00 (61,53) 0,00 (8,50) (205,67) 34,73 34,73 SITUATION AT 31.12.2004 5 750,95 105,04 138,53 118,54 1 172,46 698,21 112,84 1 590,14 1 060,00 38,15 490,68 255,00 0,00 11 530,53





OCT Grants Interest rate subsidies Emergency aid Aid for refugees Risk capital STABEX SYSMIN Heavily indebted poor countries Total OCT Situation at 31.12.2003 (5) 46,88 2,37 0,00 0,00 8,50 1,18 2,50 0,00 61,43 (0,10) (1,23) 0,00 0,00 0,00 0,00 (1,33) Situation at 31.12.2004 46,78 1,14 0,00 0,00 8,50 1,18 2,50 0,00 60,11

Table 1.7

9TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF FUND BY INSTRUMENT

(million EUR) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2003 Increases or reductions in resources during 2004 Current appropriation ACP A envelope 5 318,30 1 456,90 8 237,10 B envelope 2 107,90 0,00 (885,47) 1 222,43 National allocations reserve 1 224,10 0,00 (403,76) 820,34 CDE, CTA and Joint Assembly 164,00 (99,10) 0,00 64,90 Long-term dev. reserve 257,85 20,01 93,91 371,77 Regional allocations 904,00 10,00 23,13 937,13 Intra-ACP 300,00 1 135,71 253,28 1 688,98 Implementing expenses 125,00 0,00 0,00 125,00 Interest and other revenue 0,00 32,22 4,04 36,25 Special allocation for Congo 0,00 0,00 106,92 106,92 TOTAL ACP 10 401,15 2 555,73 653,94 13 610,82 OCT A envelope 0,00 78,62 83,55 162,17 Long-term dev. reserve 144,00 40,57 (81,97) 102,59 Regional allocations 8,00 17,99 0,47 26,47 Tech. assistance allocation 2,00 0,00 0,00 2,00 TOTAL OCT 154,00 137,18 2,05 293,22 TOTAL 9th EDF 10 555,15 2 692,91 655,98 13 904,04

Table 1.8

9TH EDF

Situation of appropriations (EUR): 31 December 2004

ANALYSIS OF MOVEMENTS DURING THE YEAR

(million EUR) ACP A envelope B envelope National allocations reserve CDE, CTA and Joint Assembly Long-term dev.reserve Regional allocations Intra-ACP Implementing expenses Interest and other revenue Special allocation for Congo Total ACP Situation at 31.12.2003 (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 6 775,20 2 107,90 1 224,10 64,90 277,86 914 ,00 1 435,71 125,00 32,22 0,00 12 956,88 172,67 96,54 23 ,13 3,28 295,62 191,00 13 (204) 0,00 532,50 86 (618) 0,00 (47,00) (372) 419 0,00 250,00 250,00 4,04 4,04 105,00 105,00 1,92 1,92 612,73 (613) (2,63) (2,63) Situation at 31.12.2004 8 237,10 1 222,43 820,34 64,90 371,77 937,13 1 688,98 125,00 36,25 106,92 13 610,82





OCT A envelope Long-term dev.reserved Regional Allocations Tech.assistance allocation Total OCT Situation at 31.12.2003 (7) 78,62 184,57 25,99 2,00 291,18 0,35 1,23 0,47 2,05 83,20 (83,20) 0,00 Situation at 31.12.2004 162,17 102,59 26,47 2,00 293,22

Table 1.9

6TH-7TH-8TH-9TH EDF

Increases, reductions and transfer of resources during 2004

(million EUR) ACP Total 6th EDF Total 7th EDF Total 8th EDF Total 9th EDF Net variation SITUATION AT 31.12.2003 7 381,99 10 790,99 11 701,47 12 956,88 Transfer to 9th EDF following the entry in force of Cotonou (Commission decision of 16 April 2003) (32,03) (57,92) (205,67) 295,62 0,00 Interest earned on Stabex security accounts 34,73 0,00 34,73 release of conditional billion 250,00 250,00 interest on EDF funds in 2004 4,04 4,04 Special Congo — Council decision 21.7.2003 105,00 105,00 interest on Congo funds in 2004 1,92 1,92 STABEX cash loss (2,63) (2,63) SITUATION AT 31.12.2004 7 349,96 10 733,07 11 530,53 13 610,82 393,05





ACP Total 6th EDF Total 7th EDF Total 8th EDF Total 9th EDF Net variation SITUATION AT 31.12.2003 24,58 135,11 61,43 291,18 Transfer to 9th EDF following the entry in force of Cotonou (Commission decision of 16 April 2003) (0,21) (0,50) (1,33) 2,05 0,00 SITUATION AT 31.12.2004 24,37 134,61 60,11 293,22 0,00 TOTAL ACP + PTOM 7 374,33 10 867,68 11 590,64 13 904,04 393,05 TOTAL TRANSFER TO 9th EDF (ACP + PTOM) (32,24) (58,42) (207,00) 297,66 0,00

Table 1.10

2.2. CONSOLIDATED ACCOUNTS

EDF consolidated accounts at 31.12.2004

Table 2.1

PROGRESS REPORT

(million EUR) Appropriations 6th EDF 7th EDF 8th EDF 9th EDF 6th, 7th, 8th and 9th Lomé Programmable aid 4 839,03 5 590,21 5 797,73 16 226,97 Non-programmable aid 2 499,17 4 877,70 5 047,23 12 424,09 Transfers to other Funds 91,15 349,77 440,92 Sundry revenue Cotonou A envelope 490,68 8 399,26 8 889,94 B envelope 255,00 1 222,43 1 477,43 Regional allocation 963,59 963,59 Intra-ACP allocation 10,00 50,00 1 688,98 1 748,98 CDE, CTA and Joint Assembly 64,90 64,90 Countries Reserve Cotonou 820,34 820,34 Long-term dev. reserve 474,36 474,36 Dot.speciale dec.cons.4/04 106,92 106,92 Implementing expenses and int. 163,25 163,25 Total 7 439,35 10 867,68 11 590,64 13 904,04 43 801,71





EDF Aggregate total Annual figures As at 31.12.2004 % of appropriation 2000 2001 2002 2003 2004 DECISIONS 6 7 439,35 100 % 29,81 (14,20) 2,84 (13,13) (32,24) 7 10 867,68 100 % 113,87 48,21 125,99 (2,60) (58,42) 8 11 590,64 100 % 3 613,74 1 520,15 1 639,56 255,11 (172,26) 9 5 794,53 42 % 0,00 3 156,44 2 638,08 TOTAL 35 692,19 3 757,42 1 554,16 1 768,39 3 395,83 2 375,15 ASSIGNED FUNDS 6 7 378,34 99 % 30,64 26,92 33,49 30,74 28,68 7 10 418,48 96 % 294,74 294,11 328,12 311,69 121,42 8 9 775,16 84 % 1 970,77 1 942,32 1 781,30 1 406,57 848,67 9 2 741,19 20 % 993,70 1 747,48 TOTAL 30 313,17 2 296,16 2 263,36 2 142,92 2 742,71 2 746,25 PAYMENTS 6 7 312,16 98 % 100,84 50,46 48,53 47,04 30,00 7 9 849,57 91 % 478,19 406,92 326,12 382,21 234,94 8 7 526,75 65 % 969,14 1 610,48 1 478,07 1 472,56 985,34 9 1 225,22 9 % 277,66 947,56 TOTAL 25 913,69 1 548,16 2 067,86 1 852,72 2 179,47 2 197,84 * Negative figures represent decommitments.

Table 2.2

CLASS OF AID

(million EUR) 6th EDF % 7th EDF % 8th EDF % 9th EDF % TOTAL % (17) (17) (17) (17) (17) Lomé PROGRAMMABLE AID (NIP) Appropriation 4 839,03 5 590,21 5 797,73 16 226,97 Decisions 4 839,03 100 % 5 590,21 100 % 5 797,73 100 % 16 226,97 100 % Assigned funds 4 791,18 99 % 5 256,21 94 % 4 418,81 76 % 14 466,20 89 % Payments 4 731,03 98 % 4 905,47 88 % 3 090,59 53 % 12 727,09 78 % NON-PROGRAMMABLE AID Appropriation 2 499,17 4 877,70 5 047,23 12 424,09 Decisions 2 499,17 100 % 4 877,70 100 % 5 047,23 100 % 12 424,09 100 % Assigned funds 2 487,78 100 % 4 788,39 98 % 4 903,52 97 % 12 179,68 98 % Payments 2 482,74 99 % 4 589,12 94 % 4 132,47 82 % 11 204,33 90 % TRANSFERS FROM OTHER FUNDS Appropriation 91,15 349,77 440,92 Decisions 91,15 100 % 349,77 100 % 440,92 100 % Assigned funds 89,39 98 % 323,88 93 % 413,27 94 % Payments 88,39 97 % 304,98 87 % 393,37 89 % TOTAL Appropriation 7 429,35 10 817,68 10 844,96 29 091,99 Decisions 7 429,35 100 % 10 817,68 100 % 10 844,96 100 % 29 091,99 100 % Assigned funds 7 368,34 99 % 10 368,48 96 % 9 322,32 86 % 27 059,15 93 % Payments 7 302,16 98 % 9 799,57 91 % 7 223,06 67 % 24 324,79 84 % Cotonou A ENVELOPE Appropriation 490,68 8 399,26 8 889,94 Decisions 490,68 100 % 3 583,18 43 % 4 073,85 46 % Assigned funds 386,98 79 % 1 633,99 19 % 2 020,96 23 % Payments 278,57 57 % 622,03 7 % 900,59 10 % B ENVELOPE Appropriation 255,00 1 222,43 1 477,43 Decisions 255,00 100 % 450,51 37 % 705,51 48 % Assigned funds 65,86 26 % 254,07 21 % 319,93 22 % Payments 25,12 10 % 177,00 14 % 202,12 14 % CDE, CTA ET ASS. PARITAIRE Appropriation 64,90 64,90 Decisions 64,85 100 % 64,85 100 % Assigned funds 36,52 56 % 36,52 56 % Payments 27,73 43 % 27,73 76 % REGIONAL ALLOCATION Appropriation 963,59 963,59 Decisions 303,16 31 % 303,16 31 % Assigned funds 66,17 7 % 66,17 7 % Payments 13,72 1 % 13,72 1 % INTRA-ACP ALLOCATION Appropriation 10,00 50,00 1 688,98 1 748,98 Decisions 10,00 100 % 50,00 100 % 1 173,42 69 % 1 233,42 71 % Assigned funds 10,00 100 % 50,00 100 % 592,50 35 % 652,50 37 % Payments 10,00 100 % 50,00 100 % 329,25 19 % 389,25 22 % DOT.SPECIALE DEC.CONS.4/04 Appropriation 106,92 106,92 Decisions 91,96 5 % 91,96 5 % Assigned funds 81,63 5 % 81,63 5 % Payments 0,09 0 % 0,09 0 % FRAIS DE MISE EN ŒUVRE ET INT. Appropriation 163,25 163,25 Decisions 127,45 78 % 127,45 78 % Assigned funds 76,32 47 % 76,32 47 % Payments 55,40 34 % 55,40 34 % TOTAL Appropriation 10,00 50,00 745,68 12 609,34 13 186,87 Decisions 10,00 100 % 50,00 100 % 745,68 100 % 5 794,53 46 % 6 571,16 50 % Assigned funds 10,00 100 % 50,00 100 % 452,84 61 % 2 741,19 22 % 3 268,64 25 % Payments 10,00 100 % 50,00 100 % 303,69 41 % 1 225,22 10 % 1 582,09 12 % COUNTRIES RESERVE — COTONOU 820,34 820,34 REGIONAL RESERVE — COTONOU RESERVE DEV.LONG TERME 474,36 474,36 TOTAL Appropriation 7 439,35 10 867,68 11 590,64 13 904,04 43 801,71 Decisions 7 439,35 100 % 10 867,68 100 % 11 590,64 100 % 5 794,53 42 % 35 692,19 81 % Assigned funds 7 378,34 99 % 10 418,48 96 % 9 775,16 84 % 2 741,19 20 % 30 313,17 69 % Payments 7 312,16 98 % 9 849,57 91 % 7 526,75 65 % 1 225,22 9 % 25 913,69 59 %

Table 2.3

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 6th EDF

(million EUR) 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 Total indicative programmes 4 774,22 4 774,22 (31,44) 100 4 727,11 29,78 99 4 667,48 26,99 99 LOMÉ Grants 4 341,29 4 341,29 (31,36) 100 4 296,37 29,73 99 4 237,22 27,21 99 Special loans 432,93 432,93 (0,08) 100 430,74 0,05 99 430,26 (0,22) 100 Total non-programmable aid 2 476,43 2 476,43 (0,59) 100 2 465,04 (1,02) 100 2 460,01 2,32 100 Interest-rate subsidies 81,42 81,42 100 81,42 100 81,42 100 Emergency aid 179,39 179,39 100 179,39 100 179,39 100 Aid for refugees 94,77 94,77 100 94,72 100 94,72 100 Risk capital 529,70 529,70 100 529,70 100 524,86 2,28 99 Stabex 1 447,12 1 447,12 100 1 447,12 100 1 447,12 100 Sysmin 138,02 138,02 (0,59) 100 127,35 (1,02) 92 127,15 0,04 100 Structural adjustment 6,00 6,00 100 5,33 89 5,33 100 Transfer 4th EDF — 6th EDF 89,30 89,30 100 87,54 (0,00) 98 86,56 0,33 99 COTONOU Intra ACP Allocation 10,00 10,00 100 10,00 100 10,00 100 General Reserve TOTAL ACP (a) 7 349,96 7 349,96 (32,03) 100 7 289,70 28,76 99 7 224,05 29,64 99 OCT Total indicative programmes 64,81 64,81 (0,21) 100 64,06 (0,09) 99 63,54 0,36 99 Grants 49,82 49,82 100 49,08 (0,09) 99 48,56 0,36 99 Special loans 14,98 14,98 (0,21) 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 0,00 Risk capital 14,62 14,62 100 14,62 100 14,62 100 Stabex 4,00 4,00 100 4,00 100 4,00 100 Sysmin 1,00 1,00 100 1,00 100 1,00 100 Transfer 4th EDF — 6th EDF 1,85 1,85 100 1,85 100 1,83 99 TOTAL OCT (b) 89,39 89,39 (0,21) 100 88,64 (0,09) 99 88,11 0,36 99 TOTAL (a) + (b) 7 439,35 7 439,35 (32,24) 100 7 378,34 28,68 99 7 312,16 30,00 99

Table 2.4

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 7th EDF

(million EUR) Appropriations Decisions Assigned funds Payments AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP Total indicative programmes 5 503,20 5 503,20 (42,07) 100 5 172,96 126,51 94 4 826,00 195,59 93 LOMÉ Total non-programmable aid 4 839,93 4 839,93 (12,24) 100 4 751,72 (8,45) 98 4 553,16 21,64 96 Interest-rate subsidies 200,15 200,15 (5,21) 100 200,15 (5,21) 100 198,44 0,67 99 Emergency aid 403,35 403,35 (1,47) 100 403,28 (0,72) 100 403,13 (0,42) 100 Aid for refugees 84,87 84,87 (1,31) 100 84,41 (0,70) 99 84,22 0,04 100 Risk capital 818,10 818,10 (3,43) 100 818,10 (2,93) 100 752,14 10,07 92 Stabex 1 696,69 1 696,69 0,00 100 1 696,69 0,00 100 1 583,83 (9,03) 93 Sysmin 446,29 446,29 (0,02) 100 360,21 1,11 81 342,85 20,18 95 Structural adjustment 1 150,48 1 150,48 (0,80) 100 1 148,88 100 1 148,54 0,12 100 Heavily indebted poor countries 40,00 40,00 100 40,00 100 40,00 100 Transfer 5th EDF — 7th EDF 339,93 339,93 (3,61) 100 314,82 2,52 93 296,98 10,12 94 Sundry Revenue COTONOU Intra-ACP Allocation 50,00 50,00 100 50,00 0,00 100 50,00 100 General Reserve TOTAL ACP (a) 10 733,07 10 733,07 (57,92) 100 10 289,50 120,58 96 9 726,14 227,35 95 OCT Total indicative programmes 87,01 87,01 (0,50) 100 83,25 0,03 96 79,47 7,47 95 Total non-programmable aid 37,77 37,77 0,00 100 36,67 0,80 97 35,96 0,15 98 Interest-rate subsidies 4,22 4,22 100 4,22 100 4,22 100 Emergency aid 2,26 2,26 100 2,26 100 2,26 100 Aid for refugees 0,29 0,29 100 0,29 100 0,29 100 Risk capital 22,49 22,49 100 22,49 100 22,49 100 Stabex 6,00 6,00 100 6,00 100 6,00 100 Sysmin 2,50 2,50 100 1,40 0,80 56 0,69 0,15 49 Transfer 5th EDF — 7th EDF 9,84 9,84 100 9,06 (0,00) 92 8,00 (0,03) 88 TOTAL OCT (b) 134,61 134,61 (0,50) 100 128,99 0,84 96 123,43 7,59 96 TOTAL (a) + (b) 10 867,68 10 867,68 (58,42) 100 10 418,48 121,42 96 9 849,57 234,94 95

Table 2.5

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 8th EDF

(million EUR) Appropriations Decisions Assigned funds Payments AGG. TOTAL ANNUAL % AGG. TOTAL ANNUELS % AGG. TOTAL ANNUELS % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP Total indicative programmes 5 750,95 5 750,95 (54,93) 100 4 382,94 668,56 76 3 065,47 788,06 70 LOMÉ Total non-programmable aid 5 033,90 5 033,90 (45,97) 100 4 891,97 88,49 97 4 124,98 78,54 84 Interest-rate subsidies 105,04 105,04 (18,45) 100 105,04 (18,45) 100 63,71 8,88 61 Emergency aid 138,53 138,53 (1,46) 100 137,82 (0,70) 99 134,87 2,45 98 Aid for refugees 118,54 118,54 0,00 100 111,27 11,39 94 83,28 26,51 75 Risk capital 1 172,46 1 172,46 (37,77) 100 1 120,75 27,08 96 818,15 127,94 73 Stabex 698,21 698,21 34,73 100 685,29 33,98 98 364,37 (199,79) 53 Sysmin 112,84 112,84 (8,33) 100 102,75 7,59 91 91,02 6,54 89 Structural adjustment 1 590,14 1 590,14 (14,70) 100 1 535,53 20,86 97 1 479,66 89,57 96 Heavily indebted poor countries 1 060,00 1 060,00 0,00 100 1 060,00 0,00 100 1 060,00 0,00 100 Utilisation of interest income 38,15 38,15 0,00 100 33,52 6,74 88 29,92 16,44 89 TOTAL 10 784,85 10 784,85 (100,91) 100 9 274,92 757,05 86 7 190,45 866,60 78 COTONOU A Envelope 490,68 490,68 (61,53) 100 386,98 51,47 79 278,57 98,89 72 B Envelope 255,00 255,00 100 65,86 38,65 26 25,12 4,92 38 Regional allocation 0,00 0,00 (8,50) 0,00 0,00 TOTAL 745,68 745,68 (61,53) 100 452,84 90,12 61 303,69 103,81 67 TOTAL ACP (a) 11 530,53 11 530,53 (170,94) 100 9 727,75 847,17 84 7 494,13 970,41 77 OCT Total indicative programmes 46,78 46,78 (0,10) 100 35,86 2,06 77 25,12 11,56 70 Total non-programmable aid 13,32 13,32 (1,23) 100 11,54 (0,56) 87 7,49 3,36 65 Interest-rate subsidies 1,14 1,14 (1,23) 100 1,14 (1,23) 100 1,14 0,06 100 Emergency aid Aid for refugees 0,00 0,00 Risk capital 8,50 8,50 100 8,50 100 4,83 3,00 57 Stabex 1,18 1,18 100 1,18 100 1,18 100 Sysmin 2,50 2,50 100 0,72 0,67 0,34 0,31 TOTAL OCT (b) 60,11 60,11 (1,33) 100 47,41 1,51 79 32,62 14,92 69 TOTAL (a) + (b) 11 590,64 11 590,64 (172,26) 100 9 775,16 848,67 84 7 526,75 985,34 77

Table 2.6

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 9th EDF

(million EUR) Appropriations Decisions Assigned funds Payments AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % AGG. TOTAL ANNUAL % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP A Envelope 8 237,10 3 536,27 1 708,10 43 1 606,68 1 063,64 45 615,42 547,66 38 Macroeconomic support 1 081,14 382,74 869,95 362,35 390,89 329,39 Sectoral Policies 2 455,13 1 325,36 736,74 701,30 224,53 218,27 B Envelope 1 222,43 450,51 230,22 37 254,07 204,57 56 177,00 139,44 70 Compensation export earnings 79,77 43,28 24,70 24,70 20,67 20,67 Emergency aid 363,14 179,34 221,77 172,27 156,33 118,77 Heavily indebted poor countries 7,60 7,60 7,60 7,60 Regional Allocation 937,13 296,07 127,66 32 65,32 57,84 22 13,48 11,88 21 Intra-ACP Allocation 1 688,98 1 173,42 413,62 69 592,50 218,12 50 329,25 158,89 56 Other 64,90 64,85 26,97 100 36,52 36,52 56 27,73 27,73 76 Implementing expenses 125,00 125,00 100 74,75 56,27 60 54,81 54,81 73 Interest and other receipts 36,25 1,80 1,80 5 1,12 1,12 62 0,27 0,27 24 Special allocation for Congo 106,92 91,96 91,96 86 81,63 81,63 89 0,09 0,09 0 TOTAL 12 418,71 5 739,88 2 600,33 46 2 712,59 1 719,70 47 1 218,05 940,78 45 Countries reserve — Cotonou 820,34 Reserve dev.long terme 371,77 TOTAL ACP (a) 13 610,82 5 739,88 2 600,33 42 2 712,59 1 719,70 47 1 218,05 940,78 45 OCT A Envelope 162,17 46,90 31,31 29 27,30 26,94 58 6,61 6,47 24 Macroeconomic support Sectoral Policies 46,90 31,31 27,30 26,94 6,61 6,47 Regional Allocation 26,47 7,10 6,45 27 0,84 0,84 12 0,25 0,25 29 Support expenses 2,00 0,65 33 0,45 69 0,32 0,06 70 Long-term development budget 102,59 Total OCT (b) 293,22 54,65 37,75 19 28,60 27,78 52 7,17 6,78 25 Total (a) + (b) 13 904,04 5 794,53 2 638,08 42 2 741,19 1 747,48 47 1 225,22 947,56 45

Table 2.7

ANNUAL 2004 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual decision 2004

(million EUR) Commitments Decommitments Net Lomé GRANTS 0,00 (128,97) (128,97) SPECIAL LOANS 0,00 (0,29) (0,29) TOTAL INDICATIVE PROGRAMME 0,00 (129,26) (129,26) INTEREST RATE SUBSIDIES 0,00 (24,88) (24,88) EMERGENCY AID 0,00 (2,94) (2,94) AID FOR REFUGIES 0,00 (1,31) (1,31) RISK CAPITAL 0,00 (41,20) (41,20) STABEX ( INTERETS) 34,73 0,00 34,73 SYSMIN 0,00 (8,94) (8,94) TRANSFER FROM OTHER FUNDS 0,00 (3,61) (3,61) STRUCTURAL ADJUSTMENT 0,00 (15,50) (15,50) TOTAL NON PROGRAMMABLE AID 34,73 (98,38) (63,64) USE OF INTERESTS Total 34,73 (227,63) (192,90) Cotonou A ENVELOPE 1 739,51 (61,63) 1 677,87 B ENVELOPE 230,22 0,00 230,22 CDE+CTA+JOINT ASSEMBLY 26,97 0,00 26,97 REGIONAL PROJECTS 134,12 (8,51) 125,61 INTRA ACP 413,62 0,00 413,62 INTRA ACP DEBT RELIEF 0,00 0,00 0,00 SPECIAL ALLOCATION FOR CONGO 91,96 0,00 91,96 IMPLEMENTING EXPENSES & USE OF INTEREST 1,80 0,00 1,80 Total 2 638,20 (70,14) 2 568,05 Total 2 672,93 (297,78) 2 375,15





Annual payments 2004

(million EUR) Paid Recovered Net Lomé GRANTS 1 075,07 (44,81) 1 030,26 SPECIAL LOANS 0,08 (0,30) (0,22) TOTAL INDICATIVE PROGRAMME 1 075,15 (45,11) 1 030,04 INTEREST RATE SUBSIDIES 9,78 (0,16) 9,62 EMERGENCY AID 2,48 (0,45) 2,03 AID FOR REFUGIES 26,89 (0,34) 26,55 RISK CAPITAL 143,28 0,00 143,28 STABEX SECURITY (208,81) (208,81) SYSMIN 27,36 (0,14) 27,22 TRANSFER FROM OTHER FUNDS 11,20 (0,79) 10,42 STRUCTURAL ADJUSTMENT 89,73 (0,05) 89,68 TOTAL NON PROGRAMMABLE AID 101,91 (1,93) 99,98 USE OF INTERESTS 16,45 (0,01) 16,44 Total 1 193,51 (47,05) 1 146,46 Cotonou A ENVELOPE 654,66 (1,64) 653,03 B ENVELOPE 144,39 (0,03) 144,36 CDE+CTA+JOINT ASSEMBLY 27,73 0,00 27,73 REGIONAL PROJECTS 12,27 (0,15) 12,12 INTRA ACP 58,93 (0,03) 58,89 INTRA ACP DEBT RELIEF 100,00 0,00 100,00 TECHNICAL ASSISTANCE, OCT 0,07 (0,00) 0,06 SPECIAL ALLOCATION FOR CONGO 0,09 0,00 0,09 IMPLEMENTING EXPENSES & USE OF INTEREST 56,49 (1,41) 55,08 Total 1 054,63 (3,26) 1 051,37 Total 2 248,15 (50,31) 2 197,84

2.3. SITUATION BY COUNTRY AND BY INSTRUMENT

2.3.1. 6TH EDF

Notes to the management accounts:

(a) In tables 3.1.1 to 3.1.8, the figure ‘0,0’ 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 cooperation’ (EUR 873,82 million) corresponds to the Commission’s regional cooperation target for ACP states only (EUR 912,23 million) minus the amount transferred during the years 2000, 2001 and 2002 to the general reserve according the transitional measures (i.e. EUR 1 million, EUR 1,36 million and 0,16 million EUR) and EUR 28,9 million transferred to 9th EDF following the entry in force of Cotonou in 2003 and 6,9 millions in 2004.

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

The relatives tables are attached in appendix.

2.3.2. 7TH EDF

Notes to the management accounts:

— 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 Cooperation’ (EUR 1 136,42 million) is composed as follows: Commission's regional cooperation target (ACP states only) 1 125,00 Target overrun 67,90 Transfers from unallocated resources in order to finance the programme of assistance to ACP countries for integration within the WTO 10,00 Amount transferred during the year 2000 to the general reserve according the transitional measures (8,50) Amount transferred during the year 2001 to the general reserve according the transitional measures (2,20) Amount transferred during the year 2002 to the general reserve according the transitional measures (0,70) Amount transferred during the year 2003 to the 9th EDF following the entry in force of Cotonou (49,10) Amount transferred during the year 2004 to the 9th EDF following the entry in force of Cotonou (5,92) Total as at 31.12.2004 1 136,42

— 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 into force of Cotonou (Commission Decision of 16 April 2003).

The relatives tables are attached in appendix.

2.3.3. 8TH EDF

Notes to the management accounts:

(a) In tables 3.3.1 to 3.3.8, 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).

(d) In the third column of tables 1 and 2, the allocation for ‘Regional Cooperation’ (EUR 1 450,56 million) is composed as follows: Commission's regional cooperation target (ACP states only) 1 300,00 Council Decision 3/2000 in order to ensure the continuity of several activities waiting the entry in force of 9th EDF 306,00 Council Decision 10/2001 dated 20.12.2001 on the use of unallocated Resources from the 8th EDF 180,70 Amount transferred during the year 2000 to the general reserve according the transitional measures (68,00) Council Decision 3/2002 dated 23.12.2002 on the use of unallocated Resources from the 8th EDF 54,20 Amount transferred during the year 2003 to the 9th EDF following the entry in force of Cotonou (317,33) Amount transferred during the year 2004 to the 9th EDF following the entry in force of Cotonou (5,01) Total as at 31.12.2004 1 450,56

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

The relatives tables are attached in appendix.

2.3.4. 9TH EDF

Notes to the management accounts:

(a) In tables 3.4.1 to 3.4.8, 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 presentation has been made taking in account the financial resources (envelope A, envelope B and implementation costs) used and the nature of the project (macroeconomic support, sectoral policies, emergency assistance etc.).

The relatives tables are attached in appendix.

2.3.5. ALL EDF

The total amount of cumulated and annual payments includes an amount of EUR 352,03 million which corresponds to Stabex payments transferred to security account Stabex in 2001. In 2004 the Commission has decided to regularise these operations. As a result of the regularisation, a net (negative) amount of € 209 million was booked as payments in the 2004 EDF accounts. The interests gained on the secured account during the concerned period (2001 — 2004) have been booked as new commitments (€ 34,7 million) and as additional allocations.

The relatives tables are attached in appendix.

2.4. OTHER MANAGEMENT INFORMATION

Table 4.1.1

STATUS OF ‘SLEEPING’ COMMITMENTS

The tables below set out, for each of the allocations of the 6th, 7th and 8th EDFs, commitments for which implementation is slow. A commitment is regarded as ‘dormant’ or ‘slow’ if, over the 24 months before the end of the 2004 financial year:

— no new contract has been concluded

— no existing contract has been revised

— no payment or advance has been made.

Projects which have been dormant since before 1999 (old outstanding commitments) are not included in this table.

Slow commitments have been broken down into three categories:

Projects which must remain open, projects to be closed, projects whose status is unknown.

The book values given represent the sum of unpaid commitments known as unexpended balances or RALs.

Some commentary is given in the notes below as regards projects with a book value of more than EUR 1 million, which must remain open despite appearing inactive, and projects for which no proof of status has been obtained.

ALLOCATIONS 6 7 8 TOTAL AMOUNT UNPAID BALANCE TO REMAIN OPEN BALANCE TO BE CLOSED STATUS UNKNOWN AMOUNT UNPAID BALANCE TO REMAIN OPEN BALANCE TO BE CLOSED STATUS UNKNOWN AMOUNT UNPAID BALANCE TO REMAIN OPEN BALANCE TO BE CLOSED STATUS UNKNOWN AMOUNT UNPAID BALANCE TO REMAIN OPEN BALANCE TO BE CLOSED STATUS UNKNOWN PROGRAMMABLE AID 0,33 0,12 0,20 11,44 6,68 0,65 4,11 146,92 110,34 29,37 7,20 158,68 117,02 30,14 11,52 SAF 0,00 0,00 16,86 4,96 11,64 0,26 16,86 4,96 11,64 0,26 EMERGENCY AID 0,00 0,00 1,29 0,03 1,26 1,29 0,03 0,00 1,26 AID FOR REFUGEES 0,00 0,00 0,67 0,53 0,14 0,67 0,53 0,00 0,14 STABEX 0,00 0,00 197,50 197,50 197,50 197,50 0,00 0,00 SYSMIN 0,00 0,00 0,14 0,14 0,00 0,14 0,00 0,14 0,00 INTEREST SUBSIDIES 0,00 0,00 21,34 21,34 21,34 21,34 0,00 0,00 RISK CAPITAL 2,44 2,44 12,00 12,00 101,71 92,26 9,45 116,15 106,70 9,45 0,00 Grand Total 2,77 2,44 0,12 0,20 23,44 18,68 0,65 4,11 486,42 426,96 50,60 8,86 512,63 448,07 51,37 13,18

Breakdown of dormant sleeping commitments (TRO): Projects with outstanding commitments of over € 1 million

1. Stabex projects

(million EUR) Country Projects Amount unspent 8th EDF Burundi Coffee 8,7 Ethiopia Hides and skins 4,5 Madagascar Coffee 11,1 Mauritania Squid, octopus and cuttlefish 14,7 Rwanda Coffee 3,4 Rwanda Hides and skins 1,1 Senegal Oil 2,4 Sierra Leone Coffee 2,0 Sudan Cotton, Stabex 98 4,8 Sudan Cotton, Stabex 99 44,9 Tanzania Coffee 26,2 Tanzania Green coffee 1,0 Togo Oil cakes 1,4 Togo Coffee 2,0 Togo Cotton 3,0 Uganda Hides and Skins 1,0 St Lucia Bananas 3,1 Solomon Islands Coconut products 1,9 Solomon Islands Palm products 10,2 Solomon Islands Timber 13,8 Total 161,2

2. Slow starters

These are primarily projects for which contracts have not yet been awarded. This may be because the tender procedure had to be cancelled to comply with the rules of sound financial management (non-compliant bids, procedural failures by the beneficiary administration) or the start has been delayed (e.g. amendments had to be made to the financing agreement). In the case of budgetary support/structural adjustment projects, audits on previous instalments and/or those needed for payment of instalments have not been completed yet.

(million EUR) Country Projects Amount unspent 7th EDF Ethiopia Church conservation in Lalibela 4,0 8th EDF Cameroon Institutional support for decentralisation 23,4 Rep. Congo Supporting the rule of law 14,3 Ethiopia Church conservation in Lalibela 5,1 Ethiopia Water supply 6,0 Gabon Economic reform 4,9 Mauritania Renovation of ore port 45,0 All countries Multi-country demobilisation 10,0 Total 112,7

3. Ongoing projects which do not entail payments during the reference period and EIB projects for which the contract has not yet been signed.

(million EUR) Country Projects Amount unspent 6th EDF Mozambique Private sector support 1,9 7th EDF Rwanda Kigali international airport 6 8th EDF Benin Optb ii 6,5 Benin Global loan to financial sector 3,8 Caribbean region Dflsa global facilities 5,0 Caribbean region Tiona fund 1,6 Dominican Rep. Financial sector 4,5 Guyana Power project 20,0 Haiti Metropolitan water 6,0 Haiti Metropolitan water 10,0 Malawi Blantyre hotels 2,0 Mauritius Sewerage project 7,5 Mauritius SSR airport extension 3,0 Mauritius Water project 3,5 Mozambique Motraco ii 1,9 Mozambique RSA natural gas project 35,0 St Lucia Bank of St Lucia 3,0 Trinidad Caribbean microfinance 4,0 Total 125,2

4. Technically completed projects for which financial advances were granted but remain either unaccounted for or refundable. Projects for which, despite regularisation measures undertaken in particular by the National Authorising Officers of the ACP countries concerned, supporting documents or repayment had not been received by 31 December 2004

(million EUR) Country Projects Amount unspent 7th EDF Angola Micro projects 1,0 Nigeria Support for elections 1,0 8th EDF Botswana Community forestry development 1,0 Total 3,0

Table 4.2.1

UNFINALIZED PAYING AGENTS' CASHFLOWS

Revenue and expenditure on paying agents' accounts still to be entered in the authorizing officer's accounts at the end of 2004 (shown by beneficiary country).

At the date of publication of the financial statements, the vast majority of the revenues and expenditures in question have been recorded in the accounts of the projects concerned.

(EUR '000) Country revenue/expenditure total pre 2004 during 2004 Total ACP states 3 433,47 2 924,17 6 357,64 ANTIGUA AND BARBUDA 0,00 4,37 4,37 BARBADOS 32,14 0,00 32,14 BELIZE 0,00 145,75 145,75 BENIN 0,00 (135,44) (135,44) BOTSWANA 0,00 (5,58) (5,58) BURUNDI 0,03 (430,51) (430,48) CENTRAFRICA (30,76) 41,60 10,84 CHAD 51,23 0,00 51,23 CAMEROON 75,70 81,97 157,67 CONGO BRAZZAVILLE 39,76 131,51 171,27 COMORES 0,00 (0,00) (0,00) CAP VERTE 0,00 (7,02) (7,02) DOMINICAN REPUBLIC (24,26) (80,47) (104,72) DOMINICA 0,52 0,00 0,52 EQUATORIAL GUINEA 261,98 26,63 288,61 ETHIOPIA (0,74) (0,33) (1,07) GABON (10,60) 91,18 80,59 GHANA 0,00 467,27 467,27 GAMBIA 29,17 54,20 83,37 GUINEA BISSAU 119,62 379,32 498,94 GUINEA 21,81 0,00 21,81 HAITI 0,00 97,44 97,44 JAMAICA 0,00 (0,49) (0,49) KIRIBATI 0,00 29,05 29,05 LESOTHO 3,95 0,00 3,95 MADAGASCAR 415,67 0,00 415,67 MALAWI 174,01 0,00 174,01 MAURETANIE 0,00 121,67 121,67 NAMIBIA 210,50 6,53 217,03 PAPOUASIA NEW GUINEA 24,41 1 381,14 1 405,56 RWANDA 53,67 0,00 53,67 SENEGAL 0,00 (28,82) (28,82) SOLOMON ISLAND 0,00 (197,75) (197,75) SAO TOME & PRINCIPE 1,55 (67,58) (66,03) SWAZILAND 0,00 451,29 451,29 TANZANIA 37,95 (58,89) (20,94) TOGO 0,00 123,34 123,34 TRINIDAD AND TOBAGO (14,70) 157,57 142,87 UGANDA 354,18 (81,66) 272,52 VANUATU 0,00 (3,03) (3,03) ZAMBIA 1 423,89 0,00 1 423,89 ZIMBABWE 0,54 0,00 0,54 OTHER ACP (REGIONAL, ETC.) 182,22 229,90 412,12 OCT 2,71 0,00 2,71 TOTAL 3 436,18 2 924,17 6 360,35 Situation at 31 December 2003: 9 859,85 Annual change: (35,49 %)

Table 4.2.2

ADVANCES FOR STUDY AWARDS AND TECHNICAL ASSISTANCE CONTRACTS AT 31.12.2004

Advances are paid to Commission delegations and agencies in Member States administering study awards and technical assistance contracts on behalf of the Commission. These advances are cleared regularly, when expense reports are received, and replenished based on the volume of study awards and technical assistance contracts handled.

The amount of outstanding advances at the end of 2004 and 2003 respectively is shown below.

(Amounts in EUR '000) 31.12.2004 31.12.2003 STUDY AWARDS 2 442,6 1 568,2 Commission Delegations 1 228,3 1 030,9 BURKINA FASO 46,9 46,9 CHAD 21,1 21,1 CAMEROUN 165,9 41,3 IVORY COAST 398,3 278,6 JAMAICA 26,3 52,8 KENYA 41,5 41,5 LIBERIA 45,0 45,0 LESOTHO 23,2 23,2 MAURITIUS 23,5 23,5 RWANDA 53,6 53,6 SENEGAL 43,1 43,1 TANZANIA 139,3 139,3 NIGERIA 78,7 78,7 ZAMBIA 28,4 28,4 OTHER COMMISSION DELEGATIONS 93,6 114,0 Member State agencies 1 214,3 537,3 BELGIUM/AEC 40,1 40,1 FRANCE/CIES 37,0 86,5 GERMANY/CDG 182,6 120,2 NETHERLANDS/NUFFIC 100,2 58,6 PORTUGAL/INSTITUTO DA COOPERAÇAO PORTUGUESA 378,5 337,8 UK/BRITISH COUNCIL 475,9 - 105,8 TECHNICAL ASSISTANCE* 1 793,3 10 357,0 AEC 557,8 557,8 GTZ 1 235,5 9 433,5 AGRER 0,0 365,7 Total 4 236,0 11 925,2

Table 4.2.3

ADVANCES ON CONTRACTS AS AT 31.12.2004

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. In accordance with the Financial Regulation both payments on account and advances are treated as expenditure on projects in the annual accounts of the EDF.

Advances, which normally are paid in the currency of the country or territory, where the project is executed, are however kept separate in the accounts to allow them to be cleared. The table below summarizes outstanding advances at the end of the year. Conversion into EUR is made using the official exchange rate at December 31, 2004.

(million EUR) 6th EDF 7th EDF 8th EDF 9th EDF Total LOMÉ Grants and special loans 40,43 157,09 592,64 790,17 ACP 40,07 156,05 587,19 783,31 OCT 0,36 1,04 5,45 6,85 TOTAL INDICATIVE PROGRAM 40,43 157,09 592,64 790,17 ACP 40,07 156,05 587,19 783,31 OCT 0,36 1,04 5,45 6,85 SYSMIN/STABEX 0,00 13,84 5,50 19,35 ACP 0,00 13,71 5,31 19,02 OCT 0,00 0,14 0,19 0,33 Aid for refugees and emergency aid 0,00 0,14 38,26 38,41 ACP 0,00 0,14 38,26 38,41 OCT 0,00 0,00 0,00 0,00 TOTAL NON-PROGRAMMABLE AID 0,00 13,99 43,77 57,75 ACP 0,00 13,85 43,57 57,42 OCT 0,00 0,14 0,19 0,33 TRANSFER FROM OTHER FUNDS 0,20 19,76 0,00 19,96 ACP 0,20 19,69 0,00 19,89 OCT 0,00 0,06 0,00 0,06 USE OF INTEREST 0,69 0,00 0,69 ACP 0,69 0,00 0,69 OCT 0,00 0,00 0,00 COTONOU A envelope — Sectoral Policy 5,04 133,32 138,36 ACP 5,04 133,07 138,11 OCT 0,00 0,25 0,25 B envelop 0,00 87,96 87,96 ACP 0,00 87,96 87,96 OCT 0,00 0,00 0,00 Regional allocation 0,00 8,29 8,29 ACP 0,00 8,05 8,05 OCT 0,00 0,25 0,25 Intra ACP 0,00 327,53 327,53 ACP 0,00 327,53 327,53 OCT 0,00 0,00 0,00 CDE — CDA — Paritaire 0,00 24,62 24,62 ACP 0,00 24,62 24,62 OCT 0,00 0,00 0,00 USE OF INTEREST 0,00 50,90 50,90 ACP 0,00 50,90 50,90 OCT 0,00 0,00 0,00 TOTAL 40,63 190,83 642,14 632,62 1 506,23 ACP 40,27 189,59 636,49 632,13 1 498,48 OCT 0,36 1,24 5,64 0,50 7,74 Note: Under structural adjustment programmes and direct budgetary support programme, some payments are registered as advances. As they do not represent advances in the same sense as the above summarized advances on contracts, those payments are not included above table.

Table 4.2.4

ITALIAN COFINANCING

In 1985 the European Commission signed an agreement with the Italian Government to cofinance development projects that would be managed by the Commission.

The agreement was repeatedly extended to 31 December 2004 by exchanges of letters between the Italian Government and the Member of the Commission responsible for Development.

The Commission then took a decision to implement the framework cofinancing agreement under written procedure E/1588/2004. The purpose of this decision was to adopt the regulatory bud