Tacis Annual Report 1994 
from the European Commission 
Brussels 18.7.1995 Com (95) 349 final 
What is Tacis? 
for the New Independent States and Mongolia which 
fosters the development of harmonious and prosperous 
economic and political links between the European Union 
and these partner countries. Its aim is to support the 
partner countries' initiatives to develop societies based 
on political freedoms and economic prosperity. 
Tacis does this by providing grant finance for know-how 
to support the process of transformation to market 
economies and democratic societies. 
In its first four years of operation, 1991-1994, Tacis has 
committed ECU 1,757 million to launch more than 2,000 
projects. 
Tacis works closely with the partner countries to 
determine how funds should be spent. This ensures that 
policies and priorities. As 
effort, Tacis also works 
international organisations closely with other donors and 
Tacis provides know-how from a wide range of public 
and private organisations, which allows experience of 
market economies and democracies to be combined 
with local knowledge and skills. This know-how is 
delivered by providing policy advice, consultancy teams, 
studies and training, by developing and reforming legal 
and regulatory frameworks, institutions and organisations, 
and by setting up partnerships, networks, twinnings and 
pilot projects. Tacis is also a catalyst, unlocking funds 
from major lenders by providing pre-investment and Tacis promotes understanding of democracy and a 
market-oriented social and economic system by creating 
links and lasting relationships between organisations in 
the partner countries and their counterparts in the 
European Community. 
The main priorities for Tacis funding are: public ad­
ministration reform, restructuring of state enterprises and 
private sector development, transport and tele­
communications infrastructures, energy, nuclear safety 
and environment, building an effective food production, 
processing and distribution system, developing social 
services and education. Each country then chooses the 
priority sectors depending on its needs. 
Contents 
Commissioner's statement 2 
A year of change for Tacis 3 
The economic and political challenges 3 
Tacis and European Union policy 4 
Tacis financial overview 5 
Operational management of the Tacis Programme 8 
Developments in Programme techniques and issues 10 
Tacis and the European Community institutions 12 
Bilateral and international cooperation 13 
Armenia 15 
Azerbaijan 17 
Belarus 19 
Georgia 21 
Kazakhstan 23 
Kyrgyzstan 25 
Moldova 27 
Mongolia 29 
Russian Federation 30 
Tajikistan 35 
Turkmenistan 36 
Ukraine 38 
Uzbekistan 42 
Multi-country programmes 44 
Future outlook 47 
Annexes 
Tacis funds allocated by sector 48 
Tacis financial performance 53 
List of major contracts signed in 1994 56 
Commissioner's statement 
The European Community's Tacis Programme is unique in 
its breadth, the number of countries it involves and 
the type of support it offers. The Programme is devoted 
to the transfer of know-how towards economic trans­
formation and the development of democracy. 
It is implemented in the spirit of cooperation between the 
New Independent States and the European Union. Tacis 
is a demand-driven programme. Its success, therefore, is 
dependent on the ability to establish effective working 
relationships between partners. 1994 has been an 
important year in this respect. Tacis has taken some steps 
which have enabled it to become even closer to its 
partners and develop a greater involvement of the 
governments' Coordinating Units in the New Independent 
States as well as the organisations who benefit from Tacis 
projects. 
The year was also important in that Tacis became more 
sharply focused on those sectors and regions where its 
support can be used most effectively. The Programme 
was able to do this since 1994 was the first year that a 
significant number of projects were under implementation 
or reached completion and it was therefore possible to 
begin a process of monitoring and evaluating the success 
of projects. 
The work rate of the Programme also increased sub­
stantially. Tacis was able to contract funds in 1994 that 
were almost as much as those for the previous three 
years combined, and the amount of money that the 
Programme paid out was 41 per cent more than the total 
paid out from 1991 to 1993. That the Programme was able to achieve this is a 
credit to the dedication and commitment of all those 
involved, particularly since the Tacis Programme employs 
far less staff, in relation to its budget, than other major 
international programmes. The workload placed on indi­
vidual Tacis task managers is so high that we are near to 
a point where the workload cannot be sustained unless it 
is matched by sufficient staffing. 
In particular I would like to recognise the contribution 
made by Sir Leon Brittan, the Commissioner responsible 
for the Tacis Programme until December 1994. His per­
sonal involvement has played an important role in the 
improvement of the Programme's performance and 
effectiveness. 
The year 1994 has seen the development of initiatives 
which have provided a solid platform for Tacis to build on. 
I fully expect to see the benefits of this reflected in its 
performance in the near future. 
Hans van den Broek 
Member of the European Commission 
A year of change for Tacis 
1994 was a significant year for Tacis. Its political framework 
was reinforced through the development of Partnership 
and Cooperation Agreements - signed with the Russian 
Federation, Ukraine and Moldova and initialled with 
Kazakhstan, Kyrgyzstan and Belarus. These Agreements 
draw together all the elements of European Community 
support to the countries of the former Soviet Union and 
provide the framework for economic and political coopera­
tion within which Tacis operates. 
In the area of management, Tacis has significantly im­
proved its financial performance and taken important 
steps to make its operations more efficient. In particular, it 
has done this by introducing a greater element of decen­tralisation in certain areas, and by establishing a compre­
hensive system of monitoring and evaluation. 
In its relationships with the European Parliament, other insti­
tutions and key groups, significant steps have been taken 
to improve communication and the supply of information. 
The Programme has also sharpened its focus on a number 
of cross-sectoral issues, including the promotion of democ­
racy, the role of women and protection of the environment. 
These issues are examined in more detail in the following 
chapters. 
The economic and political challenges 
The achievements of Tacis have to be seen against the 
background of a political and economic framework which is 
subject to tremendous change. The governments in most 
of the New Independent States are still coping with the pro­
blems of establishing the mechanics of democratic govern­
ment and building a new system of public administration 
and local government. Unsurprisingly, there are still many 
difficulties, both in maintaining democratic government and 
in developing the skills necessary to run a functioning 
democracy. 
While this situation is stabilising, its impact on Tacis should 
not be underestimated given that it is a largely demand-
driven programme of know-how transfer, which relies 
heavily on cooperation with governments and their commit­
ment to economic and political reform. Despite the size and 
the diversity of the economies of the republics of the former 
Soviet Union the problems that Tacis has to overcome 
consistently have their root in common features, namely: 
industrial inter-dependence 
industrial 'monoculture' 
central planning 
command-driven production 
trade based on state orders 
service sectors that are in their infancy. 
While progress has been made in addressing these issues, 
it takes time to develop an understanding and acceptance 
of economic reform and undo 70 years of central planning. 
Each country can only move at a pace which economic, 
social and political conditions allow and in these circum­
stances Tacis can only assist and advise, not oblige its 
partners to change policies or embrace reforms faster than 
they wish. In addition to the challenges of economic and political transition, the Tacis partner countries are also hav­
ing to come to terms with the economic effects of the 
demise of the former Soviet Union. For some countries the 
difficulties this has created have been severe, resulting in 
immense restructuring problems. Production levels and 
economic activity in general have also suffered as a result of 
the disruption of trade flows between the former republics. 
This has been heightened by acute transport and commu­
nication problems and the absence of the required inter­
state payment systems. 
Some countries have also become embroiled in political 
disputes resulting, in some cases, in armed conflict. This 
has damaged the reform process in these states and 
created difficulties for the Tacis Programme. In certain 
instances Tacis has had to stop its activities altogether. 
The break-up of the former Soviet Union also meant that 
Tacis was setting up its operations at the same time as 
most of its partner countries were establishing the mecha­
nisms of independent government. This has meant that set­
ting up a basic operating framework has taken some time 
and affected the speed of implementation of the Pro­
gramme, especially in its first two years of operation (1991 
and 1992). 
This work has now been achieved and the improvement in 
the performance of the Programme over the last 18 months 
can largely be attributed to the fact that the operational 
framework both in Brussels and the partner countries is now 
well established and starting to work effectively. That said, 
there is still a need to continue the process of consolidation 
and if this can be maintained it can be expected that the 
improvements in qualitative and quantitative performance 
will continue in the future. 
3 
Tacis and European Union policy 
In 1994 an important development took place which pro­
vided an overall framework for future relations between the 
European Union and its partners. This was the negotiation 
of Partnership and Cooperation Agreements based on the 
principles of equality and partnership. They have a wide 
scope, covering future political, commercial, economic and 
cultural cooperation between the European Community, its 
Member States and the New Independent States. 
The Agreements aim to pave the way for the integration of 
the former Soviet states into a wider European economy 
and for their progressive integration into the global eco­
nomic system. Once in force, they will offer greater 
certainty to traders and investors from the European 
Community and will encourage the direct investment that 
the New Independent States' economies need. The Agreements may be suspended if the essential 
elements which underpin them - respect for democracy, 
human rights and the principles of a market economy -
are breached. 
At this stage, the Agreements do not establish a free-trade 
area. However, in the Agreements with the Russian Fed­
eration, Ukraine, Belarus and Moldova, there is a provision 
for a joint examination of the situation in 1998, with a view 
to the possible opening of free-trade area negotiations. 
In the case of the Russian Federation, Ukraine, Kazakhstan 
and Kyrgyzstan the Agreements foresee the negotiation of 
agreements on trade in nuclear materials. Sectoral agree­
ments on steel should be concluded with the Russian 
Federation, Ukraine and Kazakhstan. 
Agreements were signed with the Russian Federation and 
Ukraine in June, with Moldova in November and were 
initialled with Kazakhstan, Kyrgyzstan and Belarus. Explo­
ratory discussions were held with Georgia during 1994. 
The Partnership and Cooperation Agreement provides 
an umbrella for the activities of Tacis. In particular the 
Agreement identifies those areas of economic cooperation 
for which Tacis is the source of funding. 
Partnership and Cooperation Agreements cover four main 
areas: 
• political dialogue 
• trade relations 
. the investment and business environment 
• cooperation in a wide range of areas; economic, 
legislative, scientific, cultural and many others. 
The Partnership Agreements with the New Independent 
States establish trade relations based on the most-
favoured nation principle, which means that the parties 
agree not to discriminate against each other in tariff 
matters. In the case of the Russian Federation this status 
not only covers trade in goods, but is also extended to an 
exhaustive list of services. The Agreements confirm that 
quantitative restrictions applied to most categories of 
imports to the European Union from the New Independent 
States have been eliminated. Other significant areas of the Agreements include: 
• measures to foster economic cooperation 
• steps to liberalise the flow of capital 
• measures to improve conditions for investment and 
for the establishment of businesses, including banks 
and other financial service providers from the 
European Union. 
The Partnership and Cooperation Agreements will require 
approval by the parliaments of all Member States and by 
the parliaments of the partner countries, as well as by the 
European Parliament. Because this may take some time, 
the Commission is seeking to conclude, where possible, 
interim agreements which will enable trade and trade-
related aspects of the Partnership and Cooperation 
Agreements to enter into force more rapidly. 
In the context of the framework provided by the Partner­
ship and Cooperation Agreements, the Tacis Programme 
will create a new climate for economic growth and political 
stability, and the development of trade and investment, 
which are essential to economic restructuring and 
modernisation. 
Tacis financial overview 
In 1994, the Tacis Programme committed a total of 
ECU 470 million to its partner countries, including 
ECU 10 million for the Tacis Democracy Programme. This 
brings the total of Tacis commitments over the life of the 
Programme to ECU 1,757 million. 
During 1994, Tacis launched projects and contracted 
funds worth ECU 514.7 million - an increase of 48 per 
cent on the previous year - exceeding the target for the 
year by 11 per cent and also exceeding the annual budget 
commitment. This compares to a total of ECU 557.2 
million contracted from 1991 to 1993, and means that in 
1994 Tacis contracted almost as much as for the three 
previous years combined. 
Tacis funds committed from 1991 to 1994 
ECU 1,756.84 million 
472.09 469.682 
396.50 418.57 The contracting backlog from earlier years and the time-
span between commitments and contracting were thus 
significantly reduced. 
The Programme paid out ECU 300.3 million, an increase 
of 66 per cent from the previous year and 41 per cent 
more than the amount paid out over the three previous 
years together. 
This means that of the total Tacis commitments, 61 per 
cent has now been contracted, and of the amount con­
tracted 48 per cent has been paid. 
The time lag between commitment and payment is normal 
for a programme of this type. After four years of operation, 
Tacis has disbursed 67.8 per cent of its initial 1991 budget. 
This rate of disbursement is slightly better than average 
when compared to other major assistance programmes. 
1991 1992 1994 
1 For 1993, figures include ECU 22 million for humanitarian aid to 
Armenia, Azerbaijan and Georgia (managed by Tacis); for 1994, figures 
exclude humanitarian aid managed by ECHO 
2 Figures include ECU 10 million for the Tacis Democracy Programme 
(managed by Tacis under a separate budget line) 
1991-1994 funds committed by country (in ECU million) 
Armenia 1991 
1992 
1993 
1994 0 1.50 
17.00 
Azerbaijan 1991 
1992 
1993 
1994 0 
12.50 
8.00 
8.00 
Belarus 1991 
1992 
1993 
1994 9.44 
14.63 
9.00 
7.00 
Georgia 1991 5.23 
1992 9.00 
1993 *&- 6-00 
1994 •18.00 
Kazakhstan 1991 
1992 
1993 
1994 7.c 
20.60 
14.00 
14.00 
Kyrgyzstan 1991 0.70 
1992 9.23 
1993 10.00 
1994 0 
Moldova 1991 1-20 
1992 9.00 
1993 0 
1994 10.00 
Mongolia 1991 0 
1992 0 
1993 0 
1994 WÊÊ 8.00 
Russia 1991 
1992 
1993 
1994 209.14 
111.00 
160.75 
Tajikistan 
Turkmenistan 1991 
1992 
1993 
1994 
1991 
1992 
1993 
1994 • 4'00 
1.00 
0 
.00 
Ukraine 1991 
1992 
1993 
1994 28.90 
48.28 
43.25 
50.50 
Uzbekistan 1991 
1992 
1993 
1994 1.49 
18.78 
15.00 
Multi-country 1991 
1992 
1993 
1994 108.90 
192.98 
166.19 
1991-1994 funds allocated by sector (in ECU million) 
Nuclear safety 
and environment 1991 
1992 
1993 
1994 53.00 
30.00 / / 
100.00 
88.00 
Restructuring state 1991 
enterprises 1992 
and private sector 1993 
development 1994 
Public administration 1991 
reform, 1992 
social services 1993 
and education 1994 37.50 
42.28 
71.91 94.46 
103.00 
63.55 
Agriculture 1991 
1992 
1993 
1994 32.19 
141.58 79.95 
60.48 
Energy 
Transport 
Policy advice 
Telecommunications 1991 
1992 
1993 
1994 
1991 
1992 
1993 
1994 
1991 
1992 
1993 
1994 
1991 
1992 
1993 
1994 65.00 
0 
6.76 
5.65 
"'"* 4.10 43.70 
49.80 
Others 1991 
1992 
1993 
1994 8.25 
39.40 
Operational management of the Tacis 
Programme 
The operational management of Tacis has focused on 
some key areas in 1994. These have included financial 
performance and streamlining internal operations and pro­
cedures, developing greater decentralisation of programme 
operations and establishing a system of monitoring and 
evaluation. 
Management has also launched an initiative in com­
munications and focused attention on important cross-
sectoral issues, such as democracy, the role of women, 
and protection of the environment. 
A key theme running through these developments has 
been the establishment of a customer focus for the Pro­
gramme, seeking greater involvement of organisations in 
the partner countries and developing the role of Coordi­
nating Units. 
This has also involved using research to identify and 
respond to the needs of key audiences for information on 
the Programme's operation as well as intensifying the 
dialogue with other donors, organisations in the European 
Union and partner countries. 
These management issues are examined in more detail 
below. 
Improving performance 
In 1994, Tacis was able to commit its annual budget much 
more rapidly than in previous years. 23 per cent of the 
1994 budget was approved by March, 71 per cent by July 
and 93 per cent was approved by the end of September. 
This was a significant improvement on the previous year 
when the bulk of the budget was only approved during the 
last three months of the year. 
Tacis was able to achieve this improvement as a result of 
initiatives taken in 1993 to establish multi-annual program­
ming. This was because the Indicative Programmes 
prepared in 1993 covered the period up until 1996, so 
there was no need to prepare Indicative Programmes in 
1994 before preparing the annual Action Programmes. 
Tacis could therefore concentrate on the preparation of 
Action Programmes much earlier in the year. For some of the smaller countries 1993 and 1994 alloca­
tions were combined, some financed under the 1993 
budget and others under the 1994 budget. This avoided 
the need to produce an individual Action Programme 
every year. 
In parallel, the implementation of projects accelerated 
significantly, as demonstrated by the rise in contracting. In 
total, 1994 saw an increase in contracting with some 1,300 
contracts signed for a value of nearly ECU 515 million, an 
increase from approximately ECU 350 million in 1993. 
This means that in 1994, Tacis started and implemented 
more projects and mobilised more experts than ever 
before. The time lag between the approval of Action 
Programmes and the start of the implementation of 
projects was also reduced. 
The Commission plans to build on this in the future by 
proposing that Tacis make use of multi-annual financial 
planning. This would greatly improve the efficiency of Tacis, 
because a more long-term allocation of budget funds could 
be planned. 
Assurance that budget funds will be available in 
subsequent years would remove the need to work out 
country allocations on the basis of each annual budget and 
thus preparing Action Programmes for each country every 
year. Preparing Action Programmes to cover two or three 
years would save time and permit Tacis staff resources to 
allow greater concentration on programming and project 
implementation. 
Enhancing efficiency 
In 1994, steps were taken to improve the coordination of 
internal Tacis management and to clarify and simplify 
procedures. 
Tacis has also revised and simplified the guidelines for 
service contracts, making tendering and contracting pro­
cedures easier to use. 
In addition, in 1994 the Tacis services set up a system for 
the regular and comprehensive preparation of all experts 
working on Tacis projects. 
Assessing the impact of operations 
An important new initiative in monitoring and evaluation 
was introduced in 1994. Teams of monitors made up of 
independent experts from both the European Community 
and the relevant partner country have been assessing the 
design and results of the projects as well as their relevance 
to the needs of the partner countries. 
Monitoring experts visit projects to discuss progress 
against the agreed plan. They are able to warn project 
managers about potential problems at an early stage and 
can suggest solutions. At the end of the project, the results 
are evaluated in order to improve the quality of future 
programming. 
By the end of 1994, around half of those projects which 
were up and running had been covered by these teams. 
The exception was nuclear safety, where the implementa­
tion of monitoring is taking longer due to the complex tech­
nical nature of the projects. Monitoring in the nuclear safety 
sector will start in 1995. 
Although the monitoring and evaluation programme is in its 
first year of operation, it has shown that the majority of 
projects are running well and are achieving their broad 
objectives. 
The process of monitoring and evaluation has also identified 
areas where changes should be made. It confirmed that it 
is necessary to introduce qualitative changes such as: 
decentralisation 
a regional approach 
the introduction of new techniques 
improved coordination with other donors 
familiarising experts with the new environment within 
which they are going to work 
. closer coordination with the New Independent States 
partners at an early stage. 
Expanding decentralisation 
It has always been a fundamental objective of Tacis to 
involve the partner countries as much as possible in the 
operation of the Programme. However, it is only recently 
that the conditions have started to emerge, in terms of 
establishing management structures in each country, that 
allow substantial developments to be made in this area. The advantages that decentralisation can bring are clear. 
Closer coordination with partner organisations and gov­
ernments allows the Programme to reflect their needs 
more closely. It also speeds the implementation of pro­
jects by removing the difficulties that currently occur due 
to remote coordination from Brussels, and ensuring that 
the projects selected for funding are of a high quality and 
can be implemented with the minimum of disruption. 
However, these advantages can only be realised if greater 
decentralisation is implemented carefully and the nec­
essary structures put in place to ensure that programmes 
can still be managed effectively. 
As a basic pre-condition, this requires two elements: a 
strengthening of the Coordinating Units representing the 
partner government and the establishment of a Tacis 
presence on the ground. 
In terms of establishing a Tacis presence, the most import­
ant step was the setting up of a Delegation in Moscow in 
1991. This was followed in 1994 by a Delegation in Kiev. 
The Moscow Delegation already runs certain programmes 
itself, such as the Bistro programme, and was given ad­
ditional responsibilities during the first half of 1994 including 
the preparation of the terms of reference for a number of 
projects in each sector and the management of experts 
responsible for the implementation of the programmes in 
the regions. 
More recently, Delegations were also 
Kazakhstan and Georgia. opened in 
The Commission has also developed plans to open techni­
cal offices in some partner countries to support the pre­
paration and implementation of Tacis programmes. 
Technical offices are designed as self-contained entities 
with close links to a Coordinating Unit or a regional author­
ity. They will support the work of the Coordinating Units and 
report directly to Brussels. 
Technical offices will be established in those regions of the 
Russian Federation where Tacis has set up separate 
regional programmes. 
The Coordinating Units within the partner countries play a 
key role in the preparation and implementation of the 
Tacis national programmes. The Coordinating Units have 
become valid partners and useful counterparts for Tacis, 
representing an effective and credible liaison with the 
government authorities. They are increasingly involved 
with the drafting of country and sector strategy papers 
and the selection of project proposals on the basis of a 
continuous policy dialogue with Tacis services. 
Since mid-1994, the local counterparts have also been 
given greater influence in the tendering procedures to select 
the experts for Tacis projects through a voting right in the 
evaluation of offers. Partner organisations now also receive 
all progress and final reports by contractors and project-
related monitoring reports from the monitoring teams. 
Each year, a part of the financial allocations to the Russian 
Federation, Ukraine and Kazakhstan is earmarked for 
regional programmes. However, the activities funded within 
these regional programmes have so far been negotiated as 
much with the national as with the local authorities. With a 
view to decentralising Tacis, increased efforts will be made 
to administer cooperation programmes directly through 
regions and municipalities, thus establishing a channel to 
strengthen reform and sustainable development at local or 
regional level. Enhancing communications 
The European Community institutions and advisory 
bodies, Member States and the partner countries have 
shown considerable interest in the Tacis Programme. 
During 1993, it was decided that more resources should 
be devoted to developing and implementing a commu­
nications programme. 
Towards the end of 1993, a communications research 
programme was commissioned in order to understand 
the needs of the key decision-makers and those working 
with the Programme. After extensive consultation this led 
to a communications strategy, adopted in early 1994, and 
subsequently introduced mid-year. 
Programmes have included: a major review of the written 
and visual corporate identity of the Programme and its 
implementation by many of those involved; a substantial 
publications programme, including timely release of con­
tract information, and translations into Russian; the develop­
ment of a communications database in conjunction with the 
Phare Programme, which holds more than 20,000 names 
of individuals and organisations interested in Tacis; and a 
specific country programme for the Russian Federation 
which will become fully operational in the second quarter of 
1995. Other countries will follow, starting with Ukraine. 
Developments in programme techniques 
and issues 
Developing new techniques 
In 1994, Tacis has been developing a number of new 
techniques which build on experience gained to date and 
are aimed at establishing a greater degree of partnership 
and cooperation between the European Union and its 
partner countries. 
Twinning 
Tacis is increasingly using twinning to promote reform. 
Twinning creates partnerships between similar groups in 
different countries to facilitate mutual cooperation and 
training. In 1994, Tacis established a two-year twinning programme 
designed to build links between local government adminis­
trations of cities in the European Community and their 
counterparts in the partner countries. Some 60 twinning 
projects are planned and a new scheme is being launched 
between hospitals in the Russian Federation and western 
Europe. 
In addition to the immediate benefits derived from the 
exchange of know-how, twinning is also expected to form 
the basis of long-term links between eastern and western 
partners. 
10 
Partnerships 
Tacis is helping to establish partnerships between institu­
tions and organisations with common interests. A pro­
gramme which has just been established in support of this 
is the professional partnership programme. This estab­
lishes links between professional associations in the part­
ner countries and in the European Community. 
In the first programme, links are being financed between 
architectural practices in the Russian Federation and 
Ireland. The objective of these links is to expose Russian 
architects to architectural practices which operate in a 
market economy. 
Support for the training of textile industry managers is a 
similar programme which has been supported over the 
last year. 
Networks 
Establishing cooperation networks between organisations 
in the partner countries and counterparts in the European 
Community is becoming an increasingly important area of 
Tacis' work. 
The major networking programmes which Tacis is devel­
oping include the Tempus (Trans-European Mobility 
Programme for University Studies) Programme, which 
promotes links between higher education institutions in 
the European Community and the Tacis partner countries, 
the network of Business Communication Centres estab­
lished in many New Independent States to support small 
and medium-sized enterprises, as well as the ACE (Action 
for Cooperation in Economics) Programme, which aims to 
promote academic research and policy analysis in the field 
of economics. 
Major cross-sectoral issues 
There are some issues which cut across all of Tacis' op­
erations and therefore cannot be established as individual 
sectors in their own right. Tacis took some important 
initiatives concerning these issues in 1994, which are 
detailed below. 
Democracy 
The Tacis Democracy Programme, which is based on an 
initiative of the European Parliament, became operational 
in the New Independent States in 1994. It aims to con­
tribute to the consolidation of a human rights ethos and 
follows the successful Democracy Programme estab­
lished by the Phare Programme for the countries of central 
and eastern Europe. The programme is designed to respond to a double 
objective. The first is to give the Commission an instrument 
for its foreign relations in strengthening a more pluralist 
society in the New Independent States. The second is to 
be responsive to the needs of a wide range of interest 
groups, associations and non-governmental organisations 
(NGOs) which contribute to the development of a more 
pluralist society. 
Under the first objective, Tacis has provided support to 
the parliamentary elections in Russia and Ukraine. In 
addition, Tacis supported media monitoring during 
election campaigns in the Russian Federation, Ukraine, 
Moldova and Belarus and a training programme for 
Ukrainian parliamentarians. 
Under the second objective, two calls for proposals from 
these organisations were launched in 1994, in parallel with 
the Phare Democracy Programme. These resulted in the 
selection of 88 proposals from Tacis partner countries, 
representing a funding commitment of ECU 7.3 million. 
Environment 
Consideration for the environment plays an important role 
in the Tacis Programme. Care for environmental aspects 
is a necessary requirement for long-term sustainable eco­
nomic development. 
From the Tacis perspective, this includes building an 
environmental dimension into individual projects, as well 
as fostering institutional systems which incorporate 
environmentally sustainable development into the frame­
work of economic reform and growth. 
The Commission has therefore decided that it is best to 
take account of the environment across the whole pro­
gramme, thus ensuring that all reform is sustainable. At 
the same time, however, those environmental projects that 
are essential to the economic reform process are funded 
through an environmental multi-country programme. 
A major part of this multi-country programme, established 
in 1994, was the Environmental Support Facility. This 
funds short-term, high-profile, replicable and cost-effective 
environmental projects which support the principles set 
out in the Environmental Action Plan for central and 
eastern Europe. 
11 
In order to ensure that Tacis projects also stimulate much 
needed environmental investments, there is close co­
operation with the EBRD through the Bangkok facility. In 
order to guide the potential investor through the maze 
of regulations and laws, an 'Investor's Guidebook for 
Environment, Health and Safety' is under development for 
all the New Independent States. This should make it 
easier for investors to know what risks they are taking and 
thus stimulate investment. 
Most sectors include environmental projects, such as the 
energy sector with its focus on conservation and efficiency, 
and the agriculture sector which has trained locals in the 
management of by-products and waste in food processing 
operations. Furthermore, Tacis is helping the central Asian 
countries deal with the mismanagement of water supplies 
that has led to the shrinking of the Aral Sea, the destruction 
of agriculture and serious threats to human health. 
Worthwhile environmental projects that do not fit into any 
of the sectors can be financed under the environmental 
multi-country programme, which is already discussing joint 
projects with the World Wildlife Fund for Lake Baikal, as a 
follow-up to one of the European Parliament's resolutions. 
Equality for women and men 
Many of the problems experienced by women are derived 
largely from the general decline in the quality of life and by the reduction in economically sustainable employment 
opportunities. It is striking that women tend to be the first 
to be made redundant and it is those sectors of the 
economy which tend to employ women - health and 
education - which are experiencing the most severe cuts. 
It is felt that the best way to address this problem is 
through ensuring equal access for women to all Tacis 
projects, and ensuring that all Tacis projects make an 
effort to influence favourably the situation of women. For 
example, there should be a balance of male and female 
participants in seminars and training courses. 
In addition to Tacis' work directed at fostering economic 
prosperity, which will in itself improve the position of 
women, there are certain areas of Tacis activity which will 
have a particular impact on women. Thus actions aimed 
at improving social security can counterbalance pressure 
on women to go back to the household. The Tacis 
Democracy Programme offers a further framework for 
support of some more specifically targeted proposals, as 
does the Tacis LIEN Programme which provides co-
financing for projects from non-governmental organisations. 
Tacis also financed a conference in Moscow in December 
1994 on improving the opportunities for female entre-
preneurship in the Russian Federation. 
Tacis and the European Community 
institutions 
In 1994, Tacis made a concerted effort to improve its 
relationship with the European Community institutions, in 
particular the European Parliament and the Court of 
Auditors. This was in response to a number of queries 
which came to the fore in 1994. 
In particular there was a request from the Parliament for a 
bi-annual report on activities, a more decentralised ap­
proach to operations and for preferential treatment to be 
given to projects including sub-contracting to companies 
from partner countries. Tacis responded to these requests by enlarging the scope 
of decentralised activities managed from the Moscow 
Delegation and by revising tender documents to make it 
clear that preferential treatment would be given to offers 
which proposed sub-contracting to local companies. 
These changes, and Tacis' operations in general, were 
presented in a series of high-level meetings between the 
Parliament and the Commission, backed by an exchange 
of extensive information. 
12 
Another important development in Tacis' relations with the 
Parliament was the report prepared by the Parliament on 
an assessment of western aid to the Commonwealth of 
Independent States (the Randzio-Plath Report). 
This report raised some issues in relation to Tacis including 
the reliance on short-term experts, lack of transparency, 
heavy procedures, concern for specific issues including 
democracy, women, environment, nuclear safety and 
establishing partnerships with organisations in the Euro­
pean Union. 
Tacis took action to address the key issues. The reliance 
on short-term experts was reduced and procedures were 
streamlined. Tacis also presented a second report of its activities to the 
Parliament in September. The Parliament will now be 
supplied with information on Tacis' operations and finan­
cial performance on a regular basis. 
Relations with the Court of Auditors were also reviewed 
during 1994. The Commission has established regular 
contacts with the Court of Auditors in relation to the im­
plementation of Tacis. Commission personnel now ac­
company the Court on its missions. 
In 1994, the Commission's Tacis management also 
addressed many of the issues raised by the Court in its 
latest report, in particular improvements in the speed of 
implementation and streamlining of procedures. 
Bilateral and international cooperation 
The Commission plays an important role in the co­
ordination of assistance to the New Independent States. 
Cooperation has been pursued at both a strategic and 
operational level with international financial institutions and 
donor countries, notably the United States, to ensure the 
exchange and analysis of information on donor pro­
grammes. This helps to avoid duplication, fills gaps and 
allows the development of complementary activities. 
Partnership and Coordination programme 
1994 saw the launch of the Partnership and Coordination 
programme, Tacis' most important initiative to date to 
promote cooperation with the Member States of the 
European Union and their bilateral programmes. 
The wider objective of the programme is to contribute to 
the process of economic restructuring in the New 
Independent States by improving the coordination of 
assistance programmes thereby enhancing their effec­
tiveness and efficiency. 
By providing matching funding, the programme en­
courages organisations from the Member States to 
develop a proactive and systematic approach to the 
coordination of their activities with Tacis and with one 
another, thus creating synergies and avoiding overlapping. The programme was approved at the end of 1993 with an 
initial budget of ECU 5 million to co-finance projects with 
Member States in the Tacis priority sectors. Based on a 
bottom-up approach, the programme allows public and 
private sector organisations in Member States to develop 
proposals in partnership with institutions in the partner 
countries. Designated authorities in the Member States 
pre-select projects to ensure coordination with their own 
bilateral funding programmes. The final selection by the 
Commission ensures that projects complement on-going 
or planned Tacis activities, and where possible those of 
other international donors. 
A total of 72 projects was submitted in the first round, 
resulting in a final selection of 21 quality projects. A 
second round of the programme with a budget of ECU 
5 million was approved in October 1994 and launched in 
November 1994. 
Coordination with the World Bank 
Coordination with the World Bank has continued to 
develop in 1994, based on the framework of cooperation 
established in 1993. The cooperation includes consultation 
on overall strategy, exchange of project information and 
draft terms of reference, joint participation in information 
missions and use of Tacis funds to support the World 
Bank's loan preparation activities. 
13 
The Commission and the World Bank have signed an 
audit clause and interpretative letter to make it easier to 
dovetail programming and procedures. In 1994 the 
Commission also participated in consultative groups for 
Armenia, Georgia and Kyrgyzstan and in the informal 
World Bank meeting for Ukraine. 
Cooperation with the European Bank for 
Reconstruction and Development 
Tacis and the European Bank for Reconstruction and 
Development (EBRD) cooperate through a range of 
instruments. In 1994 the Bangkok Agreement allowed for 
ECU 20 million of Tacis funds to be used to provide the 
necessary know-how to support EBRD equity and lending 
projects. The IMF also coordinates the international steering 
committee for the payments and clearing system within 
the partner countries and plays an important role in the 
coordination of statistics for the New Independent States. 
Cooperation with the United States 
An informal framework for cooperation with the United 
States on aid to central and eastern Europe and the New 
Independent States, agreed at the end of 1993, was 
implemented in 1994. This allows coordination at the 
strategic level as well as on individual projects. 
This is complemented by a comprehensive exchange of 
information, assisted in particular by US stop-overs in 
Brussels on return from missions to the partner countries. 
Tacis also provides support for the EBRD outside this 
agreement in order to enhance the bank's ability to 
provide investments and loans to the Tacis partner 
countries. 
Cooperation with the International Monetary 
Fund 
The International Monetary Fund (IMF) is highly involved, 
along with other donors, in the Tacis training programme 
for the central banks of most of the New Independent 
States and cooperates with Tacis on the creation of the 
Inter-State Bank. Two high-level EC-US coordination meetings were held in 
1994 in Washington and Brussels respectively, allowing 
substantial discussion at policy and operational level and 
confirming this forum as a most effective framework for 
EC-US cooperation. 
14 
Armenia 
The conflict with Azerbaijan over Nagorny Karabakh is the 
dominant feature overshadowing the political and 
economic situation in Armenia. Although well placed to 
benefit from the future expansion of trade in the region, 
civil war in Georgia and the Azeri-Turkish economic 
blockade have left Armenia isolated and paralysed its 
trade relations. Exports which earn the country its hard 
currency have declined dramatically and the country's 
almost total dependence on energy imports has severely 
weakened the economy. Energy is therefore an issue of 
the utmost importance within the Tacis Programme. 
However, longer-term prospects for Armenia are good. 
Important steps have been taken to establish the basic 
legal and institutional framework necessary to support a 
competitive market economy. Indeed, Armenia was 
among the first of the New Independent States to initiate 
reforms, and continues to receive help from Tacis to 
restructure the enterprise sector. 
The Government's reform programme is ambitious, and a 
policy of price liberalisation and institutional reform has 
been launched. Tacis has played a significant role in this 
process, supporting the Government's actions with a 
number of measures, including important human resource 
development programmes. 
Tacis help to Armenia concentrates on 
. energy 
• enterprise restructuring and development 
. human resource development. 
In 1994, Tacis actions in Armenia were financed from 
previous 1991-1993 annual budgets. 
Addressing the energy challenge 
The main focus of the Tacis Programme is directed 
towards energy issues, particularly the implementation of 
an efficient energy policy to respond to the urgent needs 
of the population and industry. The limited availability of 
indigenous energy resources is one of the main reasons 
why Armenia's economic growth is constrained. Many of Armenia's industries are energy-intensive and, 
furthermore, housing was predominantly designed on the 
assumption that plentiful district heating would be 
available. Fuel supply structures need to be reinforced 
through political and commercial agreements; investment 
is required to improve flexibility and operating efficiency in 
the energy sector; and more effective use of available fuel 
supplies must be achieved. Tacis projects in the energy 
field in progress in 1994 focused on the rationalisation and 
diversification of the energy supply. This included a 
detailed evaluation of Armenia's hydrocarbon deposits, 
rehabilitation of mini-hydroplants, the feasibility of ex­
tending the country's gas pipeline network to link into 
Iranian supply sources, and guidance for the Government 
on appropriate energy conservation and energy efficiency 
measures as well as optimisation of underground gas 
storage facilities. 
Fostering an enterprise culture 
Privatisation remains a priority policy for the Armenian 
Government, although some nationalised enterprises will 
have to continue operating under state control. Tacis is 
supporting the privatisation process in Armenia, with 
specific emphasis on the development of small and 
medium-sized enterprises, as well as the development of 
the commercial banking sector as a prerequisite for the 
overall success of the privatisation strategy. 
Since April 1994, Tacis has been involved in a project of 
about ECU 1 million to advise the Government on the 
definition and implementation of its privatisation pro­
gramme which accelerated remarkably in the last quarter 
of 1994. A further Tacis project, launched in September 
1994 and worth ECU 1.4 million, is providing - within a 
structure known as a Management Advice and Services 
Facility (MASF) - the expertise necessary to support 
managers in the design, presentation and implementation 
of a business plan for those companies which are not 
suited to mass privatisation. 1994 Tacis support for 
private sector enterprises included the formation of a 
Business Communication Centre (BCC) and an SME 
Development Agency - now being established in Yerevan. 
Other Tacis initiatives design a model investment fund to 
attract capital into the economy, especially from the 
Diaspora. 
15 
Funds allocated by sector each year 1991 1992 1993 1994* Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0.3 
0.7 
0 
0 
0.5 
0 
0 
0 0 
3.54 
1.5 
1.66 
0 
0 
2.85 
0 0 
2.3 
1.8 
0 
4.1 
0 
0 
0 
8 
0.8 0.3 
6.54 
3.3 
1.66 
4.6 
0 
2.85 
0 
8 
0.8 
Total 
Note: Armenia did not receive funds under the 1994 budget 1.5 9.55 17 28.05 
Developing human resources 
The human resources sector needs to adapt to the new 
challenges faced by Armenia as the market economy 
develops. Tacis support in that field includes the reform of 
the education system and the social security system as 
well as the strengthening of social services, notably by 
promoting cooperation between Armenia and the 
European Community. 
Tacis is supporting the Government with ECU 1.9 million 
to establish a working group which will prepare an action 
plan for the reform of the social security system. It also 
focuses on reviewing the social services of the Ministry of 
Labour and Social Security to improve their procedures 
and to strengthen their system of data collection. Training 
and study tours for the managers of the service are also 
being organised. In the area of public administration, Tacis concentrates on 
improving the performance of the civil service and the 
restructuring of the Armenian trade unions (ECU 1.5 
million). This project has three components. 
A School of Public Administration has been created under 
the aegis of the Government. The school is offering 
training for the public sector at central and local level 
which includes the design of training courses, training of 
the trainers and the provision of training material. In 
addition, a Commission for the Reform of the Public 
Administration is being developed to define the new legal 
and institutional framework. Furthermore, the project 
provides training and policy know-how for trade union 
leaders. 
16 
Azerbaijan 
The conflict in Nagorny Karabakh, and the resulting 
displacement of 15 per cent of the country's population, 
has distracted successive governments from the business 
of transformation to a market economy. Despite such 
problems, important steps have recently been taken in the 
reform process, including a number of anti-inflationary 
measures passed in June 1994 and comprehensive plans 
to liberalise prices by early 1995. 
The country's energy sector has the potential to provide 
the impetus for overall economic advancement, but has 
suffered from a lack of investment and from poor 
maintenance of the pipeline network. Given this situation, 
energy has been identified as a key area for Tacis 
involvement. Tacis has also given priority to accelerating 
the fledgling programme of privatisation and to developing 
a banking sector which will support the growth of 
enterprise. 
In parallel, help is being provided to reform the country's 
educational system to bring it more into line with 
Azerbaijan's changing economic imperatives. In order to 
maximise the effectiveness of the Programme, Tacis is 
concentrating on three areas: 
. energy 
. enterprise restructuring and development 
. human resource development. 
The Tacis 1994 budget commits ECU 8 million for the 
national programme with Azerbaijan. 
The economic dimension of energy 
Positive steps have been taken in the energy sector, 
despite problems relating to the reduction of domestic oil 
and gas production. Tacis has continued to stress the 
need for the Government to develop a coherent policy to 
promote the sustainable use of energy, including the 
development of a rational pricing policy and energy 
conservation. A large Tacis project began in 1994, offering 
expert input on many aspects of energy policy to the 
Government and the State Oil Company. This has included 
advice on legal questions relating to the oil resources of the 
country, with particular emphasis on preparing for 
Azerbaijan's signature of the European Energy Charter. 
Tacis also launched an ECU 1.5 million project to provide 
consultancy services to the gas distribution company 
Azerigaz and the electricity production and distribution 
company Azerenerji. This will focus on customer service 
issues and the promotion of metering, and will assist in 
establishing contacts and joint ventures with European Funds allocated by sector 1994 
ECU 8 million 
Other sectors 0.7 
Energy 3.6 Restructuring state 
enterprises and private 
sector development 1.9 
3lic administration reform, 
:ial services and education 1. 
Union organisations. Finally, Tacis launched an ECU 
2 million project to provide consultancy services to 
Azneftkhimmash, a state concern responsible for the 
manufacture of oil field equipment to: 
. maintain and consolidate its previous expertise for 
products designed to Russian standards 
. encourage the diversification of the present product 
range to include both oil field equipment produced to 
American Petroleum Institute (API) standards and 
new products 
. gain technical recognition and market entry for new 
API products in the New Independent States and 
worldwide. 
The stimulation of enterprise 
In the absence of a privatisation plan approved by 
parliament, little formal privatisation has taken place, 
although a number of laws have been passed to facilitate 
the privatisation process. A Tacis project began in April 
1994 to advise the State Property Committee on all issues 
relating to privatisation, and Tacis is providing support for 
the drafting of a comprehensive privatisation programme. 
A new private sector is beginning to emerge, largely at 
small-scale enterprise level. A small and medium size 
enterprise development agency has now been established 
under the 1994 Tacis Programme, providing advice and 
training in the disciplines associated with running a small 
business. The agency also serves as a vehicle for channel­
ling advice to the government on the development of a 
climate conducive to the growth of small businesses. A 
further project - agreed in 1994 and scheduled to begin in 
early 1995 - will provide management training to business­
men in newly-formed small companies. 
17 
Funds allocated by sector each year 1991* 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
2.6 
3 
2.5 
0 
0 
4.4 
0 
0 
0 0 
1.9 
1.8 
0 
3.6 
0 
0 
0 
0 
0.7 0 
4.5 
4.8 
2.5 
3.6 
0 
4.4 
0 
8 
0.7 
Total 
Note: Azerbaijan did not receive funds under the 1991 budget 12.5 8 28.5 
The acquisition of new skills 
Tacis actively supports the Government in the social 
protection sector. A small project is being developed to 
provide senior and middle-level staff of the Employment 
Services with information on institutional arrangements 
and management practices in European Community 
countries. This should raise awareness of unemployment 
issues and introduce new approaches to employment 
promotion, re-employment services and training. To reinforce public administration reform, a major ECU 
3 million project has recently been started in support of 
the Institute of Management of the National Economy in 
Baku. It seeks to provide managerial skills, as well as 
research and consulting services, to public admin­
istrations at both central and local level. The Institute will 
be able to provide a one-year programme (Master of 
Public Administration) and short-term courses to retrain 
existing public administration staff and to train public 
sector enterprises personnel. 
Belarus 
The Government of Belarus has affirmed its support for 
industrial reconstruction and has moved to accelerate the 
voucher privatisation scheme. The restructuring of enter­
prises is a priority for Tacis support and government steps 
to hasten the creation of small businesses represent a 
significant initiative. The Government's pledges to establish 
a macro-stabilisation plan are particularly encouraging. This 
plan will address the current problems of inflation, falling 
production and unemployment, and shape the legislative 
and structural base for further economic reform. 
Government attention is also being directed towards 
agriculture and the food supply chain, areas which are 
receiving strong backing from Tacis. The modernisation of 
the country's transportation systems has also been identi­
fied as meriting strong Tacis involvement. Funds allocated by sector 1994 
ECU 7 million 
Other sectors 0.7 
Transport 1,3 
Restructuring state 
enterprises and private 
sector development 5 
The Government's recent decision to create a single 
agency to coordinate foreign financing and international 
cooperation is viewed as a positive step. This body will 
provide a conduit for the efficient disbursement of Tacis 
funds. 
The main areas of Tacis support for Belarus in 1994 were: 
. support for enterprise 
• food production, processing and distribution 
. transport. 
The Tacis 1994 budget committed ECU 7 million for the 
national programme in Belarus. 
Speeding up the enterprise reform process 
During 1994 Tacis promoted industrial partnerships as a 
means of supporting enterprise restructuring, placing 
special emphasis on the electronics industry and the pro­
duction of equipment for the agriculture and food-
processing sectors. This programme has produced 
tangible results, such as commercial agreements for the 
local manufacture of European design food processing 
equipment. 
In the sphere of privatisation, in 1994 Tacis started to pro­
vide advice for the Ministry of State Property on the 
voucher privatisation programme and its implementation. 
The programme is a vital part of the Belorusian Govern­
ment's reform strategy. Another project - started in September 1994 with a budget 
of ECU 450,000 - will support the work of the Institute of 
Privatisation and Management, recently founded in Minsk. 
The objective of the Institute is primarily educational, 
teaching key government officials, other public sector 
bodies - and possibly universities - on privatisation issues 
and post-privatisation business management. Comple­
mentary assistance in the form of equipment and training 
for Belorusians, both in Belarus and abroad, will also be 
provided. 
A project to improve the long-term financing capabilities of 
newly-established banks and to research the feasibility of 
an investment fund (ECU 900,000) was begun in the first 
half of 1994. 
In 1994, Tacis provided wide-ranging support across the 
spectrum of Belarus enterprise reform, including guidance 
on strategic policies directed at the development of small 
and medium enterprises. 
A two-part major (ECU 1.9 million) project was launched in 
1994 to develop a strategy targeting the development of 
the private sector. The first part of the project aims to 
provide advice and practical support for the ministry 
charged with the development of small and medium-sized 
enterprises (SMEs) to set up seven regional Enterprise 
Support Centres and train their staff. The second objective 
is the development of consultancy services for SMEs 
throughout Belarus. 
19 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0.3 
0.7 
1.7 
4.5 
2.24 
0 
0 
0 
0 0 
7.52 
1 
2.51 
1.9 
1 
0.7 
0 
0 
0 0 
5 
0 
0 
0 
1.3 
0 
0 
0 
0.7 0 
16.82 
1.7 
6.21 
6.4 
6.54 
0.7 
0 
0 
1.7 
Total 9.44 14.63 40.07 
Help for Belorusian agriculture 
In the agricultural sector, an ECU 2.5 million project 
supporting the development of agricultural production, 
food processing and packaging is being implemented. 
This project also helps to upgrade wholesale and retail 
marketing and dstribution systems. In addition, two major 
projects were started in 1994, each worth ECU 
1 million. These are intended to support agricultural 
production increases through the provision of market 
information and the start-up of two pilot projects to help 
underpin the expansion of flax production. Enhancing the transport infrastructure 
Four new projects are being launched in the transport 
sector in Belarus, aimed at developing the structure of 
transport systems and supporting their modernisation. 
The largest contract is to implement technical and 
institutional reforms in the road building industry (ECU 
1.3 million). The project will address the technical 
considerations of road construction and maintenance -
techniques that Belarus can adopt to build roads that 
match European standards. 
20 
Georgia 
The Georgian economy is in disarray, a condition brought 
about by both external and internal pressures. Industrial 
production is in steep decline. The privatisation of large 
industrial concerns is restricted in both scope and scale, 
reflecting low levels of confidence in the economy. 
Commercial growth prospects are limited by the lack of an 
effective bank clearing system. 
The current state of the country's enterprise sector is the 
focal point for widespread Tacis support. Some two-thirds 
of Georgia's farmland has now been privatised and agri­
culture has increased its share of GDP. This rise, however, 
is due more to the substantial drop in industrial output 
than any markedly improved performance in the 
agricultural sector. Based on this, Tacis cooperation has 
been mobilised to support developments in agriculture 
and the food supply chain. 
Towards the end of 1994, the Government proposed an 
economic policy for Georgia, covering structural policies 
and financing needs. It highlighted recent laws that should 
accelerate privatisation efforts and strengthen the focus 
on government reform and private sector development. 
Public administration reform and the framing of effective 
social policies are critical to the realisation of productive 
economic change. A comprehensive education and train­
ing is considered essential to stimulate this process, which 
is being provided within the Tacis Programme. 
The European Commission opened a Delegation in Tbilisi 
in 1994. This will enhance the ability of the Tacis Pro­
gramme to cooperate with the Government and ensure 
that Tacis activities are closely integrated with Georgian 
reform priorities. 
The Tacis Programme is concentrating on several key 
sectors and projects to avoid spreading the funds over 
too many activities with little impact and low rates of 
implementation. These are the sectors which are of 
particular importance for the transition process or which 
offer the potential to accelerate this process. 
The prime sectors for Tacis action are 
. enterprise restructuring and development 
. food production, processing and distribution 
• human resource development. 
The 1994 Tacis budget committed ECU 8 million for the 
national programme in Georgia. Funds allocated by sector 1994 
ECU 8 million 
Other sectors 0.8 
Agriculture 
1.8 
Restructuring state 
enterprises and private 
sector development 3.6 
Public 
administration reform, 
social services and edi . 
Developing an enterprise economy 
The Georgian Government is accelerating the privatisation 
process and Tacis is backing this by ensuring the 
continuity of work in crucial areas. In particular, this 
involves establishing an environment in which private 
business can thrive and continue to build a source of tax 
revenues and hard currency. 
An ECU 1.8 million Tacis programme to strengthen the 
activities of Georgia's small and medium-sized enterprises 
(SMEs) progressed during 1994. This funding will be 
applied to widen the support offered by the SME 
Development Agency and Business Communication 
Centre in Tbilisi - established with support from the Tacis 
Programme. The opening of an additional support agency 
in Kutaisi is an integral element within this scheme. 
Another project worth ECU 1.2 million started in April, to 
promote cooperation with the Ministry of State Property 
Management in the resolution of a range of legal, 
managerial and procedural issues. It has also supported 
small-scale privatisation programmes and provided 
essential training for Ministry officials in order to prepare 
the launch of the voucher privatisation programme. 
Creating a new outlook for agriculture 
The development of a major food and agriculture sector 
policy, including a legal basis and an institutional public 
framework, has been identified as a major priority. 
21 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0 
1.2 
2.8 
0.5 
0.73 
0 
0 
0 
0 0 
3.5 
1.25 
1.5 
0 
0 
2.75 
0 
0 
0 0 
3.6 
1.8 
1.8 
0 
0 
0 
0 
0 
0.8 0 
7.1 
4.25 
6.1 
0.5 
0.73 
2.75 
0 
6 
0.8 
Total 5.23 9 8 28.23 
A strategic ECU 3.3 million programme was introduced in 
1994 which will help modernise the country's agricultural 
sector. This project offers expert support to the Ministry of 
Agriculture and Food Industry as it undergoes the process 
of transformation from a command to a support service. 
Reshaping this institutional base should prompt the 
development of effective, integrated agricultural policies 
and the promotion of 'best farming management 
practices'. A second project, completed in 1994 and 
valued at ECU 2.2 million, involved a detailed analysis and 
evaluation of Georgia's milk, meat, foodstuffs, fruit, cereals 
and vegetables sectors. On the basis of this work, 
practical proposals to support these sectors were 
presented to the Ministry of Agriculture and Food Industry 
for consideration and action. Widening Georgia's skills base 
The development of human resources in key areas of 
Georgia's political and economic system will help create a 
nucleus for continuing growth. Tacis is providing support 
to the institutional reform of public administration. Several 
important Tacis projects were in progress during the 
course of 1994 which focused on this objective. They 
included an ECU 943,000 management and economics 
training programme at the Tbilisi Business School and a 
highly successful series of bank training seminars 
(ECU 890,000). An ECU 1.8 million project to train civil 
servants in the area of public administration reform is 
ready for starting operations. A notable action in the field 
of human resources relates to an ECU 1.4 million project 
to reinforce the social security safety net in Georgia. This 
project proceeded according to schedule in 1994. 
22 
Kazakhstan 
Contacts between the European Community and 
Kazakhstan were strengthened in 1994 when Kazakhstan 
opened an embassy in Brussels. This relationship was 
further enhanced by the opening of a Delegation of the 
European Commission in Almaty. Tacis now has a solid 
programme of support for Kazakhstan, directed at 
sustaining the Government's drive for a rapid transition to 
a market economy based on democratic institutions. 
In July 1994, the Government adopted a plan for 
economic growth, seeking to stimulate production and 
attract the foreign investment which is essential in order to 
extract the country's considerable petroleum reserves. 
Kazakhstan also joined Uzbekistan and Kyrgyzstan in the 
formation of a common economic area. 
Unemployment and consumption have both been 
affected by falling production and therefore limited 
financial resources have been available for social policies, 
especially education. Tacis activity is helping to redress 
this imbalance through targeted human resource devel­
opment programmes. The country's agricultural sector 
remains underdeveloped and is one of the main areas for 
Tacis initiatives. The development of the private sector has 
been slow until now, but in June 1994 the Kazakh 
Government launched an accelerated mass privatisation 
programme - a commitment which is fully backed by a 
series of Tacis projects. 
Tacis support in 1994 was focused on three key areas, a 
shift from previous years when support was provided 
across a broader range of sectors. These three areas are 
• enterprise restructuring and development 
• food production, processing and development 
• human resource development. 
Tacis has committed ECU 14 million for the national 
programme in Kazakhstan under the 1994 budget. 
Restructuring for business 
The focus of Tacis support in this area is on the 
development of a modern financial services framework, as 
well as the promotion of small business development at 
local level and support for the Government to manage the 
process of privatisation and the restructuring of enter­
prises more efficiently. 
Tacis is cooperating with the Kazakh State Committee for 
State Property (GKI) in support of the mass privatisation 
programme. This project started in 1994 and aims to 
decentralise the privatisation programme and increase the 
participation of local experts. Funds allocated by sector 1994 
ECU 14 million 
Other sectors 1.12 
Restructuring state 
enterprises and private 
sector development 6.3 
Agriculture 
3.15 "III 
Public •< / 
administration reform, 
social services and education 1 
In addition, Tacis is providing conceptual and organisational 
support for the State Privatisation Fund (GPF) in the 
definition and implementation of its strategy. An advisory 
department was also formed in 1994 within the Business 
Communication Centre - a resource established in Almaty 
under the Tacis Programme. The work of the Kazakhstan 
enterprise support fund will be reinforced within the 
framework of this project. The programme has also 
provided advice on business links with western companies. 
Support for enterprises has been effected through a wide 
range of instruments, including cooperation in privatisation 
programmes and the establishment of a Tacis-funded 
banking advisory service. This project offers support to 
commercial banks in areas which are considered critical in 
the rapid upgrading and restructuring of bank operations in 
the new competitive environment. 
Funding for Kazakhstan's agriculture 
Notwithstanding fertiliser shortages, the greatest problem 
in the agricultural sector in 1994 was the supply of 
machinery, spare parts and fuel. Tacis' strategy in 
Kazakhstan aims to revive the agricultural economy and 
generate export earnings. 
A pilot development of private farming and food processing 
(ECU 2 million) was started in Akmola in 1994 to 
encourage greater efficiency in farming and increased 
production. A second ECU 1.2 million project seeks to 
reorganise a major agro-industrial factory. In addition, Tacis 
supports the Consumer Cooperative Union of Kazakhstan 
to improve supply sources and develop an efficient 
wholesale and retail system. 
23 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0 
4.9 
2.2 
0.7 
0 
0 
0 
0 
0 0 
6.55 
1.4 
3.05 
3.2 
0 
6.4 
0 
0 
0 0 
6.3 
3.15 
3.15 
0 
0 
0 
0 
0 
1.4 0 
6.3 
1.8 
3.15 
0 
0 
1.63 
0 
0 
1.12 0 
19.15 
11.25 
11.55 
3.9 
0 
8.03 
0 
0 
2.52 
Total 7.8 20.6 14 14 56.4 
Furthermore, Tacis supports the Ministry of Agriculture in 
policy formulation and statistics and is supporting private 
farmers by strengthening the institutional framework for 
agricultural producer organisations. 
Education and training for change 
Within the human resources sector, Tacis has focused on 
public administration reform, both by training individuals 
and providing policy advice to government. Tacis has also 
supported the teaching of economics and management. 
A major examination of the public services was 
undertaken in 1994 analysing the structures of govern­
ment and the linkages between central and local 
government. A project to assist in the future development 
of these issues, including legislative, structural and training 
needs, has been drawn up. Tacis funds have supported the activities of the 
Kazakhstan Institute of Management and Economics, 
which is now a flagship for reform. A project was initiated 
in 1994 to help the Kazakh Ministry of Education establish 
a modern higher education system appropriate for the 
future human resources requirements of Kazakhstan. 
Tacis support for this scheme totals ECU 700,000. Also 
within the educational sector, a plan to strengthen the 
training capacity of the Kazakh State Academy of Man­
agement and three provincial training centres received 
ECU 2.33 million. This project aims to train future genera­
tions of economics teachers and economics specialists to 
strengthen the country's public sector administration 
beyond the catchment area of the capital city and into the 
regions of Karaganda, Jambul and Attaral. 
24 
Kyrgyzstan 
Kyrgyzstan has set the achievement of a solid macro-
economic base as its highest priority. The country has 
largely escaped the civil unrest that has beset some of the 
other New Independent States. It was, however, one of 
the poorest republics of the former Soviet Union and since 
independence in 1991 it has experienced a rapid deterio­
ration in trade with its neighbours. 
The agricultural sector represents the country's strongest 
potential for economic growth, but this potential remains 
under-exploited - a situation which is now receiving priority 
attention in Tacis' strategy for Kyrgyzstan. There is also an 
urgent need to reform the country's civil service and to 
upgrade policy formulation. Tacis is therefore lending 
considerable support to human resource development 
initiatives. Increased prices for energy imports have been 
accompanied by a drastic fall in living standards - at least 
70 per cent of the population is living below the 
Government's notional poverty line. Energy is therefore 
one of the main components of the Tacis programme for 
the country. Good progress was made until the end of 
1993 with regard to structural reform, when imple­
mentation began to slow. To increase the momentum for 
change, a three-year reform programme to revise the 
privatisation strategy and reduce state interference in the 
economy was set in motion in 1994. 
The relatively rapid pace of change in Kyrgyzstan, due in 
particular to the initiation of substantial programmes of 
assistance by other donors, has led Tacis to concentrate 
its resources selectively on a limited number of areas, with 
a geographical focus where possible. 
Tacis support to Kyrgyzstan came fully on stream in 1994, 
with support focusing on 
• food production, processing and distribution 
• energy 
. human resource development. 
Investing in agriculture 
Although privatisation is well advanced in some other 
economic sectors, it is to date limited in agriculture. The 
Government, however, is committed to making the 
agribusiness sector a positive contributor to the overall 
transition process and significant progress was made in 
this field during 1994, with the initial drafting of a sector 
strategy. A major ECU 2.7 million project was launched in 1994, 
with two main objectives for the agricultural sector. The 
first objective is to raise the level of agricultural production 
and improve food processing and distribution through the 
establishment of a comprehensive and coordinated 
framework for the development of private farming, pro­
cessing and distributive enterprises. The second objective 
is to raise the standard of living of producers and 
consumers and contribute to the balanced development 
of the Kyrgyz economy. 
After eight months of implementation, the project is 
making considerable progress. A detailed analysis of the 
agricultural and food sector was completed, identifying 
strengths and weaknesses and pinpointing future 
opportunities for development. Work is also well advanced 
on a number of pilot institutions including the setting up of 
a farmers' organisation, a pilot agriculture training and 
advisory service and an agricultural machinery ring. 
Furthermore, Tacis launched projects to improve the 
private livestock sector (ECU 2 million) and to supply 
agricultural inputs and services to private farmers (ECU 
1.7 million). 
Helping to solve the energy equation 
Tacis has committed support worth ECU 1.4 million for 
the development of a national energy strategy. This will 
centre on the need for organisational restructuring and the 
establishment of an adequate legal and regulatory 
framework. 
A further project worth ECU 660,000 launched in 1994 
aims to improve the energy efficiency of buildings in 
Kyrgyzstan. The objectives of the project are to reduce 
overall energy consumption, to implement cost-effective 
energy-saving measures (whilst maintaining appropriate 
levels of comfort) and to make consumers aware of the 
importance of energy efficiency. Another major project 
(ECU 1.1 million) is now underway. This relates to the 
organisation of training programmes within public energy 
structures, in response to a particular need for a new 
class of manager, equipped to deal with the demands of 
energy organisations undergoing transformation. The 
project will upgrade the skills of managers and gov­
ernment officials in areas such as business administration, 
human resources management, innovation and technol­
ogy, and business and technical English. 
25 
Funds allocated by sector each year 1991 1992 1993 1994* Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0 
0 
0 
0.7 
0 
0 
0 
0 
0 0 
0.82 
0 
2.71 
0 
0 
5.7 
0 
0 
0 0 
0 
2.6 
4 
2.4 
0 
0 
0 
0 
1 0 
0.82 
2.6 
6.71 
3.1 
0 
5.7 
0 
0 
1 
Total 
Note: Kyrgyzstan did not receive funds under the 1994 budget 0.7 9.23 10 19.93 
Improving the social security system 
Tacis is contributing to the adaptation of the public sector 
to its essential new role in a market economy by funding 
projects which develop human resources in Kyrgyzstan. 
A major project (ECU 3.8 million) was launched in the 
second half of 1994 to modernise and rationalise 
Kyrgyzstan's social security provisions. Support will be made available to the Social Fund and the Ministry of 
Labour and Social Security to develop a benefit and 
collection system for invalidity and unemployment 
payments and retirement pensions. In addition, Tacis is 
cooperating with the Kyrgyz Government in the develop­
ment of its civil service in areas such as legislation, 
structural reform and staff training. 
26 
Moldova 
The Government's structural reform programme is 
progressing well and the state is transforming its role from 
one of direct intervention in the economy to one of 
facilitating and supporting the productive sectors, thus 
supporting the country in its transition from a command to 
a market economy. 
The economic situation, which worsened considerably 
over the period 1990-1993, is showing the first signs of 
improvement since the beginning of 1994. Strict monetary 
policy has brought inflation down and the introduction of 
the new currency resulted in a stable exchange rate 
during 1994. 
The main economic reforms in 1994 are related to 
privatisation and agricultural reform. Funds allocated by sector 1994 
ECU 10 million 
Other sectors 0.75 
Transport 0.6 
Energy 0.6 
Agrici Restructuring state 
enterprises and private 
sector development 1.45 
Public administration 
reform, social services 
and education 1.9 
The Ministry of Privatisation, established in April 1994, 
intends to step up the programme of state divestment - an 
initiative which is being backed by Tacis through support 
for enterprise restructuring and human resource develop­
ment. Agricultural privatisation has been slower. Subsidies 
on a range of staple foodstuffs were removed in 1993/4 as 
part of the Government's price deregulation programme. 
To fuel economic growth, the Moldovan Government 
needs to develop its energy network and substantially 
upgrade its transportation infrastructure. These are areas 
designated to receive further Tacis support. 
The 1993-1995 Indicative Programme identifies four 
priority sectors, with specific emphasis on food-related 
reforms. These are 
• food production, processing and distribution 
. human resource development 
. energy and transport 
• enterprise restructuring and development. 
To accelerate the implementation of projects, it was 
decided to combine the Action Programmes of 1993 and 
1994. Under this budget, Tacis has committed ECU 10 
million for the national programme in Moldova. In order to 
maximise the impact of projects, Tacis has concentrated 
its support for Moldova on a limited number of sub-
sectors in 1994, as detailed below. 
Support for agriculture 
In early 1994 an ECU 1.4 million project started to improve 
pig production, processing and distribution in Moldova, 
thus providing a cooperation model for producers and 
consumers. Another project, valued at ECU 0.9 million, is 
concerned with the country's wine and tobacco sectors 
and the evaluation and promotion of potential export markets for these products. Projects currently being 
developed to support Moldovan agriculture include an 
ECU 2.4 million scheme to fund a pilot project to expedite 
the privatisation of farms. Plans are also advanced for 
placing an ECU 0.6 million project to promote and attract 
investment in the agro-industry sector. ECU 1.4 million has 
been approved to set up a federation of private farmers 
associations. 
The provision of knowledge and skills 
Two significant projects commenced in 1994 in the field of 
human resources development. Phase I of an ECU 
1 million scheme to promote employment, carried out in 
conjunction with the Ministry of Labour Force and Social 
Protection, has now been completed, providing a detailed 
analysis of the labour market. Secondly, an ECU 1.25 
million project was started to extend the reach and quality 
of management education. 
Energy - a key factor in the Moldovan economy 
The energy sector is of strategic importance for Moldova 
as the country is completely dependent on imported 
energy (energy import constitutes half of total import costs). 
A major ECU 2 million project was launched in June 1994. 
This covers several prime action areas: the provision of 
expert advice to the Government on the restructuring of 
the energy sector; a power station demonstration project; 
the commercialisation of Moldenergo and Moldova gas 
and the establishment of a national energy efficiency 
office. An additional project, to be conducted in collabo­
ration with the Department of Energy and supported by 
ECU 0.6 million of Tacis funding, has been conceived to 
identify effective energy-saving measures within the 
industry sector. 
27 
Funds allocated by sector each year 1991 1992 1993* 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0 
0.2 
1 
0 
0 
0 
0 
0 
0 0 
1.73 
2 
2.27 
2 
0 
1 
0 
0 
0 0 
1.45 
1.9 
4.7 
0.6 
0.6 
0 
0 
0 
0.75 0 
3.18 
4.1 
7.97 
2.6 
0.6 
1 
0 
0 
0.75 
Total 
Note: Moldova did not receive funds under the 1993 budget 1.2 9 10 20.2 
Improving Moldova's trade links 
Tacis is also supporting the development of Moldova's 
transportation resources. An ECU 0.45 million project, 
started in October 1994, is investigating the viability of 
developing the port of Giurgiulesti and includes a feasibility 
study on the proposed construction of petroleum storage 
tanks within the confines of the port. Another Tacis project 
in cooperation with Air Moldova is aimed at laying the 
foundations for the restructuring and commercialisation of 
the airline. Help for Moldovan enterprises 
After a difficult start, the reform of the enterprise sector in 
Moldova showed encouraging results in 1994. A number 
of significant projects are now in progress to underpin the 
development of the sector. These include an ECU 
1 million project launched in March 1994 to support the 
activities of the Ministry of Privatisation and State Property. 
A second project valued at ECU 1 million is designed to 
lend support to the Business Communication Centre 
which offers guidance and advice on business issues to 
private sector businesses. Furthermore, Tacis cooperates 
with several Moldovan enterprises in the area of 
conversion. 
28 
Mongolia 
Mongolia was formerly the Mongolian People's Republic, 
a one-party state. In 1990 the political system was 
opened to opposition parties. While the country is more 
than twice the size of Ukraine, the population of Mongolia 
is only 2.5 million. The economy, in common with those of 
other countries supported by the Tacis Programme, was 
heavily dependent upon commercial links with the former 
Soviet Union. Recent economic reform measures intro­
duced by the Government in response to the collapse in 
trade with Mongolia's neighbours have included an 
accelerated privatisation scheme, which seeks to transfer 
80 per cent of the country's economic base to the private 
sector. 
European Community involvement with Mongolia was 
enhanced in 1994 when the country became a formal 
Tacis partner. The year was characterised by the estab­
lishment of the necessary operational framework to 
support the planned series of Tacis activities. Major 
emphasis is being placed on the need to develop the full 
potential of human resources, which is critical to the 
achievement of an efficient market economy in Mongolia. 
Enterprise restructuring is another area where there is 
scope for future collaboration to increase the economic 
contribution of SMEs, especially those within the agro-
industry sector. A number of Tacis programmes are now 
being pursued in both these areas. 
Mongolia's living standards, particularly in urban areas, 
have deteriorated. The availability of energy poses a 
continual challenge to Mongolia's economic ambi­
tions. Tacis support centres on the stabilisation of supply 
and the promotion of energy efficiency schemes. 
The 1994-1995 Tacis Indicative Programme for Mongolia 
focuses on the following activities: 
. human resource development 
• enterprise restructuring and development 
• energy. 
The Tacis 1994 budget has committed ECU 8 million for 
the national programme in Mongolia. 
Upgrading Mongolia's human resources 
With Tacis backing, support will be made available to the 
Ministry of Science and Education and to the Institute of 
Economy for the Government's search to define ways in 
which improvements can be made to the country's 
education system, with particular reference to the 
teaching of economics. The aim is to adapt higher 
education to meet the needs of a market economy by 
revising curricula, retraining teachers and reviewing the 
organisation of the Institute of Economy. Tacis funds will Funds allocated by sector 1994 
ECU 8 million 
Other sectors 0.64 
Energy 1 Restructuring state 
enterprises and private 
sector development 2.56 
Public < ' V'^,!>$ 
administration reform, 
social services and education 3.! 
be supporting the Ministry of Labour and Population 
Policy to strengthen employment services. In addition, the 
Mongolian Centre for Scientific and Technological Infor­
mation will be receiving Tacis finance to upgrade an 
education-oriented information system. 
Putting businesses to work 
Tacis activity in the sector of enterprise restructuring and 
development aims to help the Government define 
appropriate policies and stimulate an environment 
conducive to the rapid growth of the SME sector. To this 
end, a major ECU 2.4 million tender was launched in 
autumn 1994. The project has two main components: 
under the first, policy advice will be given to the National 
Development Board which is in charge of SME 
development. Under the second component, an SME 
Development Agency will be created in conjunction with 
the Mongolian Business Development Centre. An Agro-
processing Advisory Centre will be incorporated in this 
agency to accelerate investment by SMEs in agro-
processing industries. 
Improving energy efficiency 
Tacis' involvement with Mongolia's energy sector con­
centrates on practical measures to improve the reliability 
and efficiency of the power and heating supply in two 
provincial cities. In Darkhan, Tacis will determine ways to 
increase the efficiency and capacity of the district heating 
plant. In Choibalsan, options for refurbishing the power 
plant will be examined. Both projects have just been 
launched. In both cases, Tacis will finance feasibility 
studies, cost estimates and preliminary design work while 
examining the scope for energy savings and providing 
training. 
29 
Russian Federation 
The economic backdrop 
The overall trend of the Russian economy continued to be 
unclear in 1994. On one side, the economy worsened, with 
inflation rising sharply following the collapse of the rouble in 
October. Capital investment also fell by 26 per cent during 
the year. However, on the other side, preliminary figures for 
1994 suggest that the fall in output has come to an end. 
Since autumn 1994, real GDP and industrial production 
have started to grow after several years of decline: 
industrial production in the last quarter was five per cent 
higher than during the same period in 1993. 
The prospect of macroeconomic stabilisation became 
more elusive. Over the past three years the country has 
undoubtedly made substantial progress towards estab­
lishing a market economy in terms of both liberalisation 
and structural reforms. However, the creation of an 
adequate legislative and institutional framework has 
slowed down recently and there is little evidence to date of 
real enterprise restructuring. 
Official unemployment reached 7.1 per cent of the 
working population by the end of the year, a rise of 
1.6 per cent over the year. In addition, 6.4 per cent of the 
workforce is either on involuntary leave or on a shorter 
working week. 
The financial position of the Russian Federation deterio­
rated in 1994. The consolidated budget deficit in 1994 
was 9.9 per cent of GDP. The current account balance 
reverted to deficit ($2.8 billion), the total external debt con­
tinued to rise ($120 billion) and reserves were depleted, 
falling to $1.9 billion by the end of the year after rising to a 
high of $8 billion in June. 
However, Russia's large trade surplus changed little in 
1994, with growth in merchandise exports balancing a rise 
in imports. Exports to non-Commonwealth of Independent 
States countries increased by nearly 28 per cent in real 
terms, whereas the volume of trade with Commonwealth 
of Independent States countries decreased. 
Conflicting signs emerged on structural reform. A decree 
was issued to liberalise the oil export regime, but Parlia­
ment failed to introduce legislation on contracts, oil and gas 
securities and to take a definite stance on land ownership. 
However, in April, the International Monetary Fund 
approved a $6.8 billion 12-month standby credit facility, 
based on a serious federal government budget with a 
limited deficit (less than six per cent of GDP), a commit­
ment to tight monetary policy and further liberalisation of 
foreign trade. Funds allocated by sector 1994 
ECU 150 million 
Other sectors 15 
Telecom­
munications 4.1 Restructuring state 
enterprises and private 
sector development 43.4 
jblic administration 
form, social services 
id education 18.85 
Energy 19.5 Agriculture 16.3 
Agreement on Partnership and Cooperation 
As a means of creating a framework for future political, 
economic and cultural cooperation, the European Com­
munity, its Member States and the Russian Federation 
signed an Agreement on Partnership and Cooperation in 
June 1994. 
The Agreement aims to strengthen political, commercial 
and economic links, to pave the way for further economic 
integration between the Russian Federation and the 
European Community and to set the agenda for future 
negotiations on a free trade area. It provides a forum for a 
regular, high-level political dialogue and stresses the 
importance of human rights and democratic principles. 
An Interim Agreement would make the implementation of 
the trade-related provisions possible without waiting for 
the approval of the full Agreement by the European 
Parliament, Parliaments of the Members States and the 
Russian Federation. 
Tacis supports the reform process 
In the major areas of technical and economic cooperation 
outlined in the Agreement, support will be provided by the 
European Community through the Tacis Programme. The 
Agreement thus acknowledges that Tacis continues to 
have a practical role to play in the process of reform. 
The Indicative Programme for 1993-1995 determined that 
Tacis support should be made available at two distinct 
levels: at federal level and at the level of selected 
geographical regions. Activities carried out at federal level 
are intended to support the central institutions of 
government in the framing and management of the overall 
reform strategy and in formulating practical solutions with 
30 
a national bearing. The regional programmes complement 
this approach by targeting areas which play a key role in 
the reform process and the development of the economy. 
Under the 1994 budget, Tacis has committed a total of 
ECU 150 million to federal and regional projects within the 
national programme with the Russian Federation. 
Tacis in the regions 
Two regions of concentration are chosen each year and, 
under the 1994 budget, south west Russia and 
Kaliningrad became part of the Programme. 
South west Russia comprises the oblasts of Rostov, 
Krasnodar and Stavropol which have a concentration of 
large enterprises and play a key role in producing and 
distributing food within the Russian Federation. 
Kaliningrad, located in the westernmost part of the 
country, has the potential to take on an expanded role as 
a commercial gateway between Russia and the west. 
Tacis is therefore supporting the development of the 
region as a free economic zone. 
Projects are also continuing in the other selected Tacis 
regions of Moscow, St. Petersburg, Tyumen, Samara, 
western Siberia and the Urals. Two more regions will be 
selected in early 1995. 
Priority sectors 
The sectors identified in the Russian Federation Indicative 
Programme as priorities for cooperation are 
enterprise restructuring and development 
human resource development 
food production, processing and distribution 
energy 
transport and telecommunications. 
Revitalising enterprise 
Much remains to be achieved in the area of privatisation, 
enterprise restructuring and development. In addition, the 
development of the private financial sector in Russia is 
central to economic progress as a whole. 
In June 1994 the Russian government completed the first 
phase of privatisation which consisted largely of voucher-
based auctions on a massive scale. By the end of the first 
stage some 10 per cent of the shares sold in voucher 
auctions and investment tenders had been bought by 
foreign investors and more than 15,000 medium and large 
scale enterprises had been privatised since the process 
started in December 1992. In July 1994 a decree was released outlining the second 
stage of privatisation. This aimed to change the ownership 
structure of Russian enterprises by permitting investors to 
acquire a major interest in companies and at the same 
time to inject new capital into businesses and prepare 
them for survival in a free market environment. In addition, 
the decree states that enterprises should be allowed to 
own or sell land for the first time. 
In December, however, the State Duma recommended a 
suspension of the decree and the pace of privatisation has 
been slowed. Some sales for cash and investment 
tenders took place towards the end of the year but land 
privatisation has not been widely implemented. 
Indicators show, however, that enterprises are being 
forced to restructure because of the sharp reduction in 
state budget support and the government's more active 
use of its bankruptcy legislation. But given the large equity 
stakes now held by top management following privati­
sation, their tendency is to focus on survival rather than 
profit maximisation which can result in declining output, 
investment and innovation. 
In 1994, an ECU 10 million project to support privatisation 
and enterprise restructuring on a national scale was 
started in conjunction with the Russian Privatisation 
Centre. The project, which is the first of its kind for Tacis, 
involves the provision of senior advisors seconded to the 
Russian Privatisation Centre who are responsible for the 
development of a network of technical support centres in 
key cities and regions and the restructuring of twelve 
newly privatised companies. The most promising com­
panies were selected through a tender process and 
represent sectors as diverse as packaging, clothing, 
tractor manufacture and furniture production. The restruc­
turing process has now started and two of the companies 
have already received investment commitments from 
foreign companies. 
Tacis projects have also been supporting the growth of 
small and medium-sized enterprises, in particular the 
setting up of a number of Business Communication 
Centres and SME Development Agencies which can play 
an advisory role. Twenty-six such centres and agencies 
are being established throughout the Russian Federation. 
Tacis continued to support the development of the 
financial services sector during 1994 through the projects 
carried out in bank training and the insurance industry. 
Even though foreign banks have so far been allowed only a 
limited presence, the banking sector itself is growing at a 
rapid pace. Initial Tacis support to this sector concentrated 
31 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 12.5 
27.2 
45.8 
49.7 
41.3 
32.64 
0 
0 
0 
0 0 
28.1 
24.57 
21.47 
16 
15.93 
0 
4.93 
0 
0 0 
54.5 
36 
12.5 
21.1 
13.55 
8 
5.1 
0 
10 0 
43.4 
18.85 
16.3 
19.5 
13.9 
18.95 
4.1 
0 
15 12.5 
153.2 
125.22 
99.97 
97.9 
76.02 
26.95 
14.13 
0 
25 
Total 209.14 111 160.75 150 630.89 
on the restructuring of individual institutions. This approach 
has now shifted towards providing know-how through 
advisory centres. 
Tacis has also contributed to initiatives being conducted in 
coordination with other donors, including an ECU 
5.5 million contribution to a financial institutions develop­
ment project which was decided upon by the G7 summit 
in Tokyo. 
Adding value to human resources 
Tacis activities in this sector initially focused on training in 
business, economics and management. This has now 
been expanded to include public administration, social 
protection and healthcare reform. 
In the regions of St. Petersburg, Samara, Sverdlovsk and 
Kusbass, Tacis is carrying out an ECU 4.5 million project 
to reform the health system. In the Urals and western 
Siberia, Tacis is funding initiatives to reform the employ­
ment services sector, to address the social impact of 
economic restructuring and to strengthen the local public 
administration. In October, an ECU 5.1 million project started to establish 
a viable pilot system for modern economics and business 
studies training, both for students and teachers at 
university and secondary school level. The main com­
ponents of the project comprise government policy advice 
and a teacher training programme. By expanding the 
awareness of modern economics within educational 
circles, it is hoped to promote a wider understanding of 
the free market economy. 
An ECU 14 million officers' retraining programme, aiming 
to help discharged army officers to adapt to civilian life, 
continued in 1994. Over 400 teachers from 15 regions 
were trained in general management and marketing, the 
principles of a market economy and modern teaching 
methods. They are now transferring their knowledge to 
16,000 army officers. 
In spring 1994, Tacis launched a pilot programme in 
distance learning which is testing methods such as self-
instruction, videos, electronic mail and radio among a 
number of target groups including business women. 
32 
A Tacis funded Dictionary of Management and Economic 
Terms was published in 1994 and this is currently the only 
dictionary which translates terms from English into 
Russian, German and French. 
Growing agriculture 
The development of a real private sector in agriculture and 
food production is proceeding at a much slower pace 
than in industry and commerce, with a heavy burden of 
subsidies falling on the federal budget. In 1994, gross 
agricultural production in Russia fell by 9 per cent over the 
previous year. The creation of private or family owned 
farms has slowed in pace and the restructuring of 
collective farms is still moving slowly. The food processing 
industry has moved forward, however, benefiting from the 
general progress in privatisation. Saving energy 
The energy sector continues to underperform in relation to 
its potential. Production in all areas apart from natural gas 
continued to decline, payment arrears built up and energy 
became cheaper by 10 per cent in real terms. Tacis 
activity has therefore focused on supporting the envi­
ronmentally sustainable restructuring of the sector by 
improving energy efficiency and promoting energy saving. 
Tacis projects worth ECU 2 million were launched to 
improve oil transport and ECU 2.3 million was committed 
to promoting the manufacture of energy-efficient and 
reliable equipment in the electricity, gas and building 
sectors. An ECU 950,000 project to help the federal 
ministry develop a legal framework for the oil and gas 
industries also started. 
The primary focus for Tacis in 1994 was to help improve 
primary food production. Tacis concentrated its activity on 
the major food producing regions, especially in the south 
west region of Russia. The objective will be achieved by 
implementing projects that address the key upstream and 
downstream constraints on production. 
The largest project to start in 1994 was in Tyumen. Tacis 
is helping to strengthen development in the region's 
agricultural and food sectors by financing a number of 
pilot actions in food distribution, milk production and 
processing, wholesale marketing and retail development. 
The total budget for the project is ECU 2.8 million. 
Tyumen was also the location for Tacis' first forestry 
management project. ECU 500,000 has been granted to 
a project helping to improve the region's forest manage­
ment practices. 
An ECU 5.4 million programme comprising four projects 
started in Samara to support reducing post-harvest 
losses, wholesale marketing methods, food and com­
modities transport and restructuring of agricultural 
research institutions. 
Many projects in St. Petersburg which have been 
supporting the development of food retail distribution and 
farm restructuring came to fruition during 1994. Pilot milk 
processing and food and vegetable packaging units were 
set up and pilot shops selling bread and milk were opened 
in St. Petersburg, where they were received with enthu­
siasm by local consumers. Funding of ECU 2.5 million helped the establishment of an 
energy centre offering practical support and advice to 
enterprises in the energy sector in Ekaterinburg and ECU 
2.1 million supported the opening of a similar centre in 
Novosibirsk. 
A number of other energy-related projects began, 
including an ECU 1 million project to reduce energy losses 
at installations in the Tyumen oblast and another which 
aims to determine how best to optimise the output value 
of oil and gas production in the oblast. This ECU 
3 million project will also work to reduce losses and 
improve health, safety and environmental standards for 
the transport of hydrocarbons. 
Helping transport run 
Air transport was the main focus for Tacis initiatives in the 
transport sector in 1994 and a total of 14 projects to help 
improve and develop the sector were designed. Support 
for air traffic control was identified as a pressing need, and 
projects will encompass training for staff and instructors 
and advice on systems modernisation. In addition, Russia 
received ECU 4 million from an ECU 10 million multi-
country project to train air traffic controllers, the first part of 
which was carried out successfully during the year and will 
continue into 1995. 
The primary area in need of support in the key regions is 
maritime transport. In Kaliningrad, Tacis will be helping to 
develop the transport aspects of the region's free eco­
nomic zone and in south west Russia the port authorities 
will be supported in their reorganisation programme for 
the Black Sea ports. 
33 
The largest project to be executed during the year was an 
ECU 6 million project to help the Port of St. Petersburg 
cope with a sharp increase in the flow of trade. The 
project team helped to implement modernised admin­
istrative systems and operations, and by the end of the 
year productivity at the port had risen by 30 per cent since 
the project started in March 1993. 
Framework programmes 
Support was also provided to key sectors and regions in 
Russia through the Tacis framework programmes which 
package together smaller scale projects or those of a 
similar type. In particular, development and cooperation in 
higher education continued to be fostered through the 
Tacis Tempus programme, and the Tacis Democracy 
programme became operational in 1994 to help build 
democratic institutions and practices at both governmental 
and non-governmental level. 
In 1994 there have been three major Tacis framework 
programmes which operated mainly, or only, in Russia: 
the Tacis Bistro programme, the Productivity Initiative and 
the International Science and Technology Centre. 
Small projects, large effect 
The Tacis Bistro programme is a framework programme 
which aims to approve project proposals within one 
month of submission, providing that the requested 
funding does not exceed ECU 100,000 and the activity 
can be completed within nine months. It thus allows Tacis 
to meet new needs in Russia promptly while adhering to 
the central objectives in the Indicative Programme which 
drive the Programme as a whole. 
Tacis Bistro is administered by the Tacis section in the 
Delegation of the European Commission in Moscow. The 
most common types of activity funded by Bistro include 
conferences, seminars and workshops, training and 
sector studies. 
During 1994, 450 project proposals were submitted and 
59 contracts were signed, exhausting the available budget 
of ECU 3 million. Tacis Bistro is continuing to fund projects 
in 1995 following an allocation of ECU 4 million from the 
1994 budget. 
Piloting productivity 
The Productivity Initiative aims to train executives at middle 
management level in both public and private sectors in the 
management techniques necessary when operating in a 
market economy. During 1994, the first pilot group of nearly 40 executives 
carried out a three-month placement in western European 
companies during which they gained first-hand experience 
of the business skills and practices applied in a market 
economy. Each executive had previously attended an 
intensive training seminar and had developed a business 
plan which they implemented within their own organisation 
on returning from Europe. The executives will be brought 
together once their plans have been implemented in order 
to share and consolidate their experiences. 
The pilot has been a success, with the development of 
strong relationships between the western European host 
companies and their Russian counterparts as well as the 
creation of an 'alumni' of the executives themselves. As a 
result, subsequent groups of executives will be sent to 
western Europe during 1995. 
The International Science and Technology Centre 
The Centre was established by an international agreement 
between the United States, Japan, the European Union 
and the Russian Federation and became operational in 
March 1994. Its main objective is to fund civilian research 
projects and thereby help redirect weapon scientists and 
engineers to peaceful activities. 
The activities of the Centre are funded by the European 
Community's Tacis Programme, the United States and 
Japan. Sweden and Finland have also contributed to the 
funding before joining the European Union. The initial 
overall resources available amounted to ECU 56 million. 
By the end of the year, ECU 47 million had been 
committed for over 90 projects involving more than 5,000 
scientists and engineers. 
The agreement establishing the Centre is open for other 
countries to join and in addition to the Russian Federation, 
several New Independent States have become members, 
notably Armenia, Georgia, Belarus and Kazakhstan. 
The projects cover basic and applied research and 
technological development in fields such as environmental 
protection, energy production, nuclear safely and 
development of medicines and pharmaceuticals. The 
Centre also assists scientists to establish contacts and 
cooperate with foreign colleagues, thereby promoting their 
integration into the international scientific community. 
34 
Tajikistan 
Following the establishment of Tajikistan as an inde­
pendent state in 1991, civil strife and political instability 
prevented any real reform. Now, with the introduction of a 
secular constitution and a new government in power, 
political continuity should be more secure. 
The Government has, however, inherited a tough 
economic legacy. Foreign debt has spiralled, severely 
restricting the flow of key imports, notably energy. 
Agricultural output is in sharp decline and industrial activity 
has been curtailed, despite continuing state subsidies. In 
response, the Government has committed itself to a 
process of cautious economic reform. Urban housing has 
largely been privatised and the small and medium-sized 
enterprise sector, though still in relative infancy, is growing. 
Price controls have largely been relaxed and the 
Government has approved measures to regulate the 
National Central Bank and commercial banks, most of 
which were formerly state-owned. The privatisation of 
state and collective farms or of prime agricultural land has 
not yet got off the ground. Similarly, the privatisation of 
Tajikistan's primary industries has not yet started on any 
significant scale. Funds allocated by sector 1994 
ECU 4 million 1 
Other sectors 0.32 
Transport 1 Dublic administration 
eform, social services 
and education 1 
Because of recent conflict within Tajikistan's borders, 
Tacis support - other than humanitarian aid - was 
temporarily suspended. With the return to comparative 
stability, the Tacis Programme was relaunched in 1994. 
Following a programming visit in early May, an Indicative 
Programme and an Action Programme were drawn up 
and agreed. The relevant Financial Memorandum was 
signed in December 1994. The Tacis 1994 budget 
commits ECU 4 million for the national programme in 
Tajikistan. Following extensive discussions with the 
Government, the following priority areas for Tacis support 
were identified: food production, processing and distri­
bution, including support for privatised farms; human 
resource development, notably in the fields of manage­
ment and economics; and support for the government in 
defining a strategy plan for the energy sector including a 
training programme for the energy decision makers. 
1 Note: Tajikistan did not receive funds under the 1991, 1992 or 
1993 budgets 
35 
Turkmenistan 
Turkmenistan's President recently indicated that the 
country will move cautiously towards démocratisation. A 
gradual approach to the creation of a market economy is 
also evident. A large number of laws have been adopted 
to underpin the basic foundations for a free market. 
The main sectors driving the economy are cotton and 
natural gas, and until recently Turkmenistan's main trading 
partners were other members of the Commonwealth of 
Independent States. Reflecting the energy debts to 
Turkmenistan run up by these countries, links have now 
been opened with Turkey, Pakistan and Iran. Plans exist 
for the privatisation of all non-strategic state enter­
prises. Turkmenistan's 'National Programme for Denation­
alisation and Privatisation' envisages the privatisation of all 
small and medium-sized enterprises within five years, as 
well as the initial privatisation of large concerns. 
For this policy to be fully effective considerable re­
structuring within the enterprise sector is necessary, 
particularly for small and medium-sized enterprises. The 
Tacis Programme is active in this area, expediting the 
transformation of businesses to reflect market economy 
conditions. Agricultural privatisation has been slow and 
food pricing and distribution are controlled by the state, 
although limited privatisation of the retail sector is under 
review. State and collective farms are likely to be 
privatised as well with the aim of achieving self sufficiency 
in food. The country's agricultural economy is heavily 
dependent on cotton, Turkmenistan's main source of hard 
currency, but possesses virtually no processing capacity 
to add value to this crop. 
In general, agriculture has the potential to be a major 
export earner and a driving force within the national 
economy, but the sector needs to diversify rapidly the 
number of crops under cultivation. With Tacis support, this 
objective is being progressively achieved. The government 
has placed a high priority on public administration reform 
and educational policies, seeking to link training more 
closely with economic development needs. This strategy 
is receiving strong backing and support in the Tacis 
Indicative Programme for Turkmenistan. In order to 
maximise the effectiveness of Tacis in Turkmenistan, the 
Programme concentrates on three main areas. It covers 
• food production, processing and distribution 
• enterprise restructuring and development 
• human resources development. Funds allocated by sector 1994 
ECU 8 million 
Other sectors 0.8 Restructuring state 
enterprises and private 
or development 1.8 
Agriculture Public administration 
reform, social services 
and education 1.8 
Under the 1994 budget, Tacis has committed ECU 
8 million for the national programme in Turkmenistan. 
Restructuring the agricultural sector 
Tacis support in this sector focuses on the transfer of 
know-how in the form of strategic government advice, 
training and education and support for the improvement 
of cereal production. A number of Tacis projects are 
currently in progress which, together, should help to 
streamline and modernise the country's agro-economy. 
The objective of one such project, backed by ECU 
1.9 million Tacis funding, is the establishment of an 
agricultural advisory service. This will create a training 
programme for both government and producers on 
agricultural production and increase knowledge on the 
subject of ways in which the food processing industry can 
be expanded. In parallel, the project will also provide 
essential training related to 'best management practices' 
in the food distribution sector. A further ECU 1.7 million 
has been allocated to fund an expert study for farming 
techniques employed in the production of cereal crops. 
Recommendations will be made as to how this can be 
achieved more efficiently and yields increased. 
In addition, an ECU 3.7 million project is in progress, 
reinforcing the government's efforts to create favourable 
conditions for a productive agricultural sector and 
providing support to the process of farm privatisation. 
36 
Funds allocated by sector each year 1991 1992 1993* 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0.6 
1.05 
3.65 
1 
0 
2.5 
0 
0 
0 0 
1.8 
1.8 
3.6 
0 
0 
0 
0 
0 
0.8 0 
2.4 
2.85 
8.25 
1 
0 
2.5 
0 
0 
0.8 
Total 
Note: Turkmenistan did not receive funds under the 1993 budget 8.8 8 17.8 
Mobilising Turkmenistan enterprise 
The restructuring and privatisation of businesses is 
essential to make the enterprise sector a more powerful 
driving force in the country's programme of economic 
regeneration. The government has been receiving support 
in managing this process from Tacis experts who have 
been working with the Ministry of Economy and Finance 
since April 1994. A scheme was introduced in December 
1994 which will reorganise those enterprises unsuitable for 
mass privatisation. These are organisations that need 
profound restructuring, new investment, new technology, 
a different product portfolio and expanded export 
markets. Tacis cooperation covers the provision of expert 
consultancy for framing and implementing business plans. 
ECU 2.2 million has been made available to support this 
scheme (which also covers Azerbaijan), administered 
through a Management Advice and Service Facility 
structure. Help for small and medium-sized enterprises (SMEs) is a 
strategic economic imperative. This will now be provided 
through the establishment of an SME Development 
Agency in Ashkabad, set up to counsel the managers of 
SMEs across a wide range of business-related issues. 
Optimising human resources 
The development of the economy and sustained reform 
relies heavily on developing people's skills. The support of 
the Tacis Programme is focused primarily on establishing 
modern management structures and practices in the civil 
service. Among the Tacis measures in progress in 1994 
was an ECU 1.8 million project to advise government 
authorities on the ways in which the educational system 
could be reformed to strengthen training capacities in the 
discipline of economics. 
In addition, Tacis has been training civil servants and 
trainers in management, computer and language skills. 
37 
Ukraine 
Until recently, the Tacis Programme for Ukraine was 
managed from Brussels. In 1994, the Delegation of the 
European Commission in Kiev became fully operational, 
establishing a presence in the country which has 
improved the process of coordination with Ukrainian 
authorities and allowed Tacis to match its support more 
closely to the needs of the country. 
Further improvement in the programme is anticipated 
following a review, carried out in 1994, of the previous 
three years' programmes. This has helped to identify a 
number of areas where improvements can be made in the 
preparation and implementation of projects, and these will 
be introduced into the 1995 programme. 
Ukraine's heavy industries, until recently strongly 
dependent on the defence sector, are unwieldy, inefficient 
and require major restructuring. State enterprises in 
general continue to require substantial subsidies. The 
medium to long-term solution to this problem centres on 
accelerating the privatisation process and the creation of a 
thriving enterprise sector - objectives which are accorded 
high priority in the Tacis Programme. The country's 
balance of payments position remains resolutely negative 
- reflecting Ukraine's bureaucratic and fiscal constraints on 
exports and massive energy imports. Energy issues are 
key to Ukraine's economic prospects and substantial 
Tacis funding is allocated to projects in this sector. In this 
context, Tacis' contribution to the G7/ European Union 
Action Plan aiming at the rapid closure of Chernobyl is a 
key element of reform in the energy sector. 
Positive reform moves were made in 1994 by the Ukrainian 
Government, notably the reinforcement of democratic 
processes and the election of a new president and 
parliament. Although certain constitutional issues remain to 
be resolved, the Government - with the cooperation of the 
International Monetary Fund - has embarked on an 
economic programme which calls for wide-scale structural 
reform, including change within the agriculture and food 
distribution sectors. This task is receiving the strong 
backing of Tacis. To underpin the process of overall 
economic transformation the development of the nation's 
human resources is a priority area for Tacis action. Funds allocated by sector 1994 
ECU 50.5 million 
Other sectors 1.7 
Energy 15 Nuclear safety 
and environment 20.5 
Agricr 
Public administration reform, 
social services and education 4 Restructuring state enterprises 
and private sector development 4.3 
In summary, Tacis Programme priorities are: 
enterprise restructuring and development 
agriculture 
energy 
nuclear safety and environment 
transport and telecommunications 
human resources development 
The Tacis budget for the national programmes with 
Ukraine in 1994 totalled ECU 50.5 million. 
Encouraging the growth of the private sector 
Enterprise restructuring and development is a major 
priority since a large part of the formal economy is still 
controlled by government. To support the programme of 
privatisation and industrial reform, a series of actions were 
agreed or initiated in 1994. 
A major ECU 3 million initiative which assists the Ukrainian 
mass privatisation programme has started providing 
advice to the State Property Fund for the privatisation of 
some 200 Ukrainian enterprises. The project prepares the 
enterprises for corporatisation and privatisation, it includes 
the organisation of voucher and cash auctions and 
supports the emerging investment fund industry. All these 
aspects will encourage the mobilisation of foreign inves­
tors in the Ukraine. 
38 
An ECU 1.8 million project was launched to support the 
development of small and medium-sized enterprises in the 
Ukraine. This programme will provide selected innovative 
companies with support, channelled via the SME 
Development Agency - an organisation previously 
established with Tacis support. To reinforce this effort, an 
additional business centre will be established in 
Zaporyzhye. 
This region of Ukraine also provides the focus for a project 
conceived to support privatisation and restructuring plans. 
Through this involvement, Tacis financial support is being 
directed at establishing local investment funds and 
supporting the reorganisation of regional enterprises. 
Another important planned initiative calls for the allocation 
of ECU 2.8 million with the objective of helping six key 
enterprises - previously heavily engaged in armaments 
manufacture - to switch their production focus towards 
products that Ukraine urgently needs: energy control 
systems, medical equipment, domestic appliances, etc. 
The scope of this action ranges from the provision of 
expert advisers to each company concerned to the 
establishment of a monitoring team in Kiev to maintain 
relations with the Ukrainian Ministry of Conversion, track 
progress and evaluate the outcome of this initiative. 
To support the transfer of expertise to commercial banks 
in Kiev, the creation of a European Banking Advisory 
Service has been supported by Tacis with ECU 1.6 
million. The service and its western experts offer advice to 
Ukrainian banks in the areas of foreign exchange, 
payment systems, credit analysis and risk management, 
privatisation and general management skills. 
Another Tacis project in the financial sector is the 
Ukrainian Finance and Banking School (ECU 2.7 million). 
In 1994, Tacis supported the establishment of the school 
to ensure the provision of quality training for the personnel 
who will have to deal with the new procedures. Support for agriculture 
Substantial Tacis funding has been made available to help 
Ukraine's agricultural and food distribution sector, which 
remains a continuing priority. Support has been provided 
primarily to central and regional administrations to help in 
institutional and legislative reform and in the restructuring 
of the sector. In this context, a number of significant 
projects are in hand. ECU 5.7 million was taken up in 1994 
in the form of a programme conceived to support the 
national government in the formulation of new agricultural 
policies and the establishment of support services. 
The conservation of grain stocks has historically posed a 
problem for Ukrainian cereal farmers, due to poor storage 
facilities and practices. To address this need a Tacis grant 
of ECU 1 million is financing work that upgrades the 
country's grain storage capacity. A further Tacis initiative 
launched in 1994 offers support to farmers in the 
Zaporyzhye region. Amounting to ECU 1.9 million, this 
project reinforces privatisation efforts within the region's 
important sunflower farming sector. A further project 
launched in 1994 relates to an ECU 1.8 million scheme in 
the cities of Donetsk and Dnipropetrivsk. Tacis supports a 
programme conducted by the respective municipal 
authorities aimed at the privatisation of food wholesaling 
and distribution - the objective being to increase both the 
quantity and quality of food made available to urban 
populations. 
Further agriculture-related projects already underway in 
Ukraine in 1994 include an ECU 2.9 million pilot 
programme for restructuring the agricultural sector in the 
Lviv region. An ECU 2.7 million programme, applied in five 
Ukrainian regions, is also being put into effect. This is 
directed at establishing an efficient food distribution chain 
to make fresh food more readily available to consumers. A 
direct spin-off from the success of these ventures should 
be the promotion of efficient, privatised food processing 
enterprises and the virtual elimination of perishable 
produce losses in the present network of supply. 
39 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 3.6 
1.7 
4.7 
7.6 
6.4 
4.9 
0 
0 
0 
0 0 
16.8 
3 
12.31 
8.08 
7.26 
0 
0.83 
0 
0 0 
12.36 
7.36 
10.54 
5.4 
3.22 
0 
0.55 
0 
3.82 20.5 
4.3 
4 
5 
15 
0 
0 
0 
0 
1.7 24.1 
35.16 
19.06 
35.45 
34.88 
15.38 
0 
1.38 
0 
5.52 
Total 28.9 48.28 43.25 50.5 170.93 
In parallel, an additional grant has been made available to 
increase the efficiency - domestic and international - of 
food transportation. Other significant Tacis programmes 
within the Ukrainian agricultural sector include ECU 3.2 
million to establish vegetable and meat processing 
resources in the area of Bila - Tserkva. 
Energy: a scarce and costly resource 
The economic prospects of Ukraine depend upon the 
energy sector and reform in this sector is now recognised 
as one of the most urgent and difficult aspects of 
economic reform. Detailed discussions were held with 
Ukrainian Ministry of Power and Electrification officials in 
the course of 1994. Talks centred on thermal power plans 
proposed by the World Bank, investment needs for new 
generating capacity, and requirements to make existing 
obsolete capacity redundant. The mission additionally 
reviewed the supply and demand situation for electricity. A number of projects were launched during the year to 
help solve Ukraine's chronic energy problems. ECU 
500,000 was allocated to assist the government frame an 
effective energy pricing policy. Further support is being 
offered to government authorities for the development of a 
comprehensive framework of measures designed to save 
energy. 
Two major consumers of electricity are to undergo 
detailed energy audits with Tacis support. An ECU 
500,000 contract has been signed to finance a detailed 
energy appraisal of the Kriviy Rig iron and steel production 
complex, and a further ECU 440,000 project has been 
approved to undertake a similar audit at the Radehof-Lviv 
sugar refinery. These studies will assess all heat, gas and 
power requirements at the two locations and should 
reveal areas where appreciable energy savings can be 
achieved. 
40 
Also within the energy sector, an ECU 650,000 contract 
was awarded to prepare the ground for the restructuring 
and transition of the Ukrainian coal industry in the context 
of an emerging market economy. 
Helping Ukraine to shut down Chernobyl 
With a total budget of ECU 25 million, drawn from the 
1994 Tacis nuclear safety and energy sector allocations 
for Ukraine, Tacis is also a major contributor to the 
G7/European Community Ukraine Action Plan. The plan 
aims at the rapid and definitive closure of Chernobyl. It 
provides support for the completion and upgrading to 
adequate safety standards of three new WER 1000 
reactors under construction. 
In addition, the Action Plan supports Ukrainian safety 
authorities with supplies of basic equipment and fosters 
structural reforms in Ukraine's energy sector, including 
energy-saving measures and a realistic pricing structure. 
Transport and telecommunications 
In the area of transport and telecommunications, Tacis 
has been focusing on the restructuring of the Black Sea 
ports, on support for the establishment of a viable national 
and international airline sector and on cooperation with 
Ukrainian Railways as well as on a study to establish an 
international fibre optic telecommunication link. The 
support for the construction of two optical fibre cable links 
(ECU 550,000) comprises an engineering study which will 
prepare the ground for the construction of a major optical 
fibre route connecting Kiev westward to the Polish border 
and eastward to Lugansk. The construction of the 
transmission routes will be financed through a World 
Bank investment loan. Tacis also launched a national network study (ECU 
600,000) to determine expenditure priorities in the roads 
sector and to define a strategy for network development, 
and launched the establishment of a transport and logistic 
training centre (ECU 350,000) to promote the 
development of new and more efficient transport 
enterprises and to provide training. 
Human resources 
In this sector, Tacis is concentrating on public admin­
istration reform, strengthening of management training for 
managers, reform of the employment services and the 
retraining of military officers. Under the 1994 Action 
Programme, a project dealing with the social impact of 
restructuring of private enterprises (ECU 4 million) has 
been financed. 
With a budget of more than ECU 7 million, the retraining of 
ex-military officers in Ukraine is one of the largest 
programmes undertaken by Tacis. It involves a national 
retraining and reintegration scheme for former officers of 
the Ukrainian army. 
Experts from the European Community have been 
appointed to help design and develop an inter-linked, 
computerised information system containing detailed data 
relating to employment opportunities and skills 
development. The training of tutors and management has 
been complemented by the design and development of a 
system of self-learning by a multi-media computer system. 
41 
Uzbekistan 
Uzbekistan has adopted a gradual approach to the reform 
of its economy and society. This reflects the conviction of 
the Government that economic and social stability should 
not be compromised by radical change. The objective of 
the Tacis Programme is to give the Government 
confidence to broaden the reform process. 
The potential for growth is good and economic and 
political reform gained momentum during 1994. In 
January, a presidential decree concerning economic 
reform declared that the pace of privatisation and price 
liberalisation would accelerate. 
In the same month, Uzbekistan joined Kazakhstan and 
Kyrgyzstan in a single economic space, intended to lead 
to a common market and the improved coordination of 
economic policies. Uzbekistan also signed an economic 
cooperation agreement with the Russian Federation and 
has since made it clear that, while it wishes to develop 
more intense cooperation with its southern neighbours, in 
principle it wants to see the strengthening of mechanisms 
for exchange between the Commonwealth of 
Independent States. 
Uzbekistan has traditionally been a supplier of raw 
materials, predominantly of cotton. To help reduce the 
agricultural sector's dependency on one product, one of 
the main objectives of Tacis support is to broaden the 
base of the Uzbek agro-economy. The diversification, 
restructuring and transformation of the country's enter­
prises are core to economic regeneration and represent 
another area in which Tacis is heavily involved. 
The population of Uzbekistan remains an under-utilised 
economic asset in the Government's quest for growth. 
Tacis cooperation with Uzbekistan therefore emphasises 
the acquisition of relevant skills and the strengthening of 
the public sector, especially in the areas of higher 
education and employment. 
Tacis addresses the following activities: 
• human resource development 
• enterprise restructuring and development 
• food production, processing and distribution. 
The 1994 Tacis budget committed ECU 15 million for the 
national programme in Uzbekistan. Funds allocated by sector 1994 
ECU 15 million 
Other sectors 1.5 
Agriculture À 
3.35 M Restructuring state 
enterprises and private 
:or development 3.35 
Public administration 
reform, social services 
and education 6.8 
Broader competence for human resources 
Within the human resources sector, Tacis is focusing on 
education and training in the management of a market 
economy. The development of the skills of public sector 
staff and developing employment services is a further 
priority. 
A major project was initiated in 1994 offering support for a 
Market Skills Development Centre (ECU 3.6 million). 
Training packages will be produced and used by 
prospective trainers to deliver short, practical courses on 
management and business topics relevant to the manage­
ment of a market-oriented economy. A second significant 
project started in the year - valued at ECU 2.3 million -
seeks to extend the reach of management training 
through 'train the trainer' programmes and the creation of 
seminar modules for universities. 
Reshaping the enterprise sector 
The priority for Tacis support in the enterprise sector is on 
the development of small and medium-sized enterprises, 
restructuring and privatisation of state-owned enterprises 
and the development of financial institutions. 
Several significant projects funded by Tacis began in 
1994. The new Business Communication Centre was 
established in January. This establishment is helping 
Uzbek SMEs to identify foreign markets and export 
partners, potential joint ventures, and foreign investment 
sources with Tacis funding of ECU 1.5 million. 
42 
Funds allocated by sector each year 1991 1992 1993* 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 0 
0 
0 
0.8 
0.4 
0.29 
0 
0 
0 
0 0 
2.26 
3.51 
3.05 
5.28 
1.68 
3 
0 
0 
0 0 
3.35 
6.8 
3.35 
0 
0 
0 
0 
0 
1.5 0 
5.61 
10.31 
7.2 
5.68 
1.97 
3 
0 
0 
1.5 
Total 
Note: Uzbekistan did not receive funds under the 1993 budget 1.49 18.78 15 35.27 
Later in the year, work started on an ECU 1.8 million 
project for the foundation of an SME Development 
Agency. This agency is intended to support and increase 
the number of new businesses starting up, and provide 
help for existing SMEs so that they can improve their 
business performance. 
Furthermore, Tacis has been supporting the Uzbek 
Committee for Privatisation in the long-term privatisation 
and restructuring process and has been working with a 
number of key companies which serve as pilot projects in 
this area. In addition, Tacis has allocated ECU 1.5 million 
to co-finance the Regional Bank Training Centre in 
Tashkent which began operating in 1994. 
Finance for agricultural reform 
The diversification of agricultural production away from 
cotton, the development of food-processing and pack­
aging capabilities and the development of exports are 
priorities in the agricultural sector. In 1994, a number of actions were completed or set in 
motion. One such initiative in operation which began in 
March 1994, is directed at offering support services to 
farmers in their transition to private farming in the Gulistan 
and Fergana oblasts (ECU 3 million). A project to support 
the implementation of improvements and the removal of 
constraints affecting the production, storage, packaging, 
marketing and distribution of food in the Bulungur district 
(ECU 1.8 million) was also launched. This integrated 
development programme will prepare both private and 
state concerns for the advent of a free market eco­
nomy. The experience gained in this exercise will be 
shared with other regions and districts. Other projects 
include an ECU 4.5 million plan for water resource 
management in the Aral Sea basin, and the establishment 
of a food and agricultural policy advisory unit to support 
the Uzbek Government (ECU 1.6 million). 
43 
Multi-country programmes 
Many of the problems that the New Independent States 
are facing require cooperative solutions. Tacis is a catalyst 
for greater cooperation between the partner countries and 
has set up a number of multi-country programmes. The 
common element in all of these programmes is that either 
the solution to the problems is the same for each country 
or that groups of countries have to work together to 
achieve a significant impact. 
The 1994 multi-country programme, with a Tacis financial 
allocation of ECU 47 million, was approved by the 
Commission in November 1994. It concentrates on the 
areas of government advice (ECU 20.5 million), transport 
(ECU 7 million) and enterprise restructuring (ECU 5 million). 
In 1995, Tacis multi-country programmes will place 
particular emphasis on networks (transport, energy and 
telecommunications) and environment. 
Another ECU 67.5 million was allocated for the nuclear 
safely programme and ECU 17 million for the Tacis 
Tempus programme. 
Major multi-country programmes are outlined below. 
Nuclear safety programme 
The nuclear safety programme is the largest single Tacis 
programme. It is fully in line with the G7 Action 
Programme adopted in 1992 at the G7 summit in Munich. 
The programme seeks to improve the safety of operating 
power plants and other civilian nuclear fuel and waste 
management activities, to strengthen regulatory regimes 
and to promote regional cooperation on nuclear safety 
among countries operating Soviet-designed nuclear 
power facilities. 
The Commission committed ECU 67.5 million to the 
programme in 1994. Tacis contributes a considerable 
amount (ECU 25 million in 1994) to the G7/European 
Community action plan for Ukraine. Furthermore, an 
additional ECU 6 million programme aims to stimulate the 
economic rehabilitation of territories affected by the 
Chernobyl accident and to help Ukraine, the Russian 
Federation and Belarus to cope with the social and health 
problems which resulted from the accident. 
Design safety studies 
The programme includes a large number of generic safety 
studies covering specific types of reactors. Studies are 
being launched on WER-213 and 1000, RBMK and fast 
breeder reactors, as well as fuel cycle operations and 
waste treatment. Some activities for the provision of know-Funds allocated by sector 1994 
ECU 166.19 million 
Other sectors 
41.1 
slear safety 
i environment 67.5 
I state enterprises 
ector development 5 
social services and education 20 
how are subcontracted to Russian research centres, 
manufacturers and institutes. Due to the issue of liability 
and ensuing blockages, most of these projects began in 
late 1993 with the results becoming available in 1994. 
In 1994, the RBMK Safety Review was presented by a 
consortium of European Union organisations. In addition, 
the feasibility study for the early warning system was 
completed and equipment supply contracts have been 
tendered and signed. A major multifunctional simulator 
project for WER 230/213 reactors has also been 
contracted. Major projects were launched in 1994 at 
Chernobyl to deal with the safe enclosure of the unsafe 
current shelter which contains the damaged remains of 
unit 4. In addition, the decommissioning operations of the 
Chernobyl nuclear power plant have been prepared. 
Tacis actions to promote nuclear safety in Ukraine also 
include a decontamination project to clear up more than 
800 nuclear dumps located within a 30 km radius of 
Chernobyl. Tacis has furthermore financed a project to 
train Chernobyl staff in fire protection and decontami­
nation. 
On-site assistance 
The nuclear safely programme concentrates to a large 
extent on on-site assistance. Operational support has 
been given for the operation and technical improvement of 
nine plants: Smolensk, Sosnovy Bor, Kola, Kalinin, 
Balakovo, Beloyarsk (Russia), Rovno, South Ukraine, 
Zaporyzhye (Ukraine). Since June 1993 and throughout 
1994, Tacis experts have been present at each of the nine 
sites, advising on the operational safely and general safety 
culture as well as the supply of safety equipment for up to 
50 per cent of the budget. 
44 
Funds allocated by sector each year 1991 1992 1993 1994 Total 
Nuclear safety and environment 
Restructuring state enterprises 
and private sector development 
Public administration reform, 
social services and education 
Agriculture 
Energy 
Transport 
Policy advice 
Telecommunications 
Humanitarian aid 
Other sectors 36.6 
7.6 
45.5 
7.2 
7 
5 
0 
0 
0 
0 80 
4 
0 
3.8 
1.5 
9 
8.5 
1 
0 
15.37 100 
15 
21 
0 
5 
15 
8 
0 
0 
28.98 67.5 
5 
20 
2 
3 
7 
20.5 
0 
0 
41.19 284.1 
31.6 
86.5 
13 
16.5 
36 
37 
1 
0 
85.54 
Total 108.9 123.17 192.98 166.19 591.24 
In 1994, large-scale equipment tendering and procure­
ment was carried out for all sites. A number of important 
deliveries were made to the various sites in the Russian 
Federation and in Ukraine, including spare parts worth 
ECU 4.5 million to the Ukrainian sites. 
Assistance to safety authorities 
Experts from safety authorities in the European Com­
munity are working with the Russian and Ukrainian 
authorities on two major projects which have been 
underway since December 1993. A detailed programme 
has been established to develop a strong legal and 
technical basis for the national regulators in areas such as 
licensing, training and inspection. In addition computer 
equipment has been procured and installed for safety 
authorities including computer equipment and communi­
cations links between headquarters and regional offices. 
Policy and legal advice programme 
The policy and legal advice programme provides short-
term advice on macroeconomic, economic and social 
policy, restructuring, institution building, and drafting of 
legislation. The programme launches short-term projects 
involving high-level decision-making bodies in the New 
Independent States. The implementation of the programme 
is managed by the European Expertise Service (EES). In 1994, more than 50 projects were completed in all the 
New Independent States except Tajikistan. All the projects 
were assessed during the year by a Permanent Steering 
Committee composed of officials of the European 
Commission. 
In the Russian Federation, assistance was offered to the 
Working Centre of Economic Reforms, the think-tank of 
the Ministry of Economy and the government of the 
Russian Federation, to the publication 'Russian Economic 
Trends', to the Ministry of Finance by a Russian-European 
expert group and to the Central Bank. During 1994, 
negotiations were also concluded with the Russian 
Government for the establishment of the Russian Centre 
for Analysis of Policies (RECAP) in Moscow. It will 
concentrate on promoting synergies and coordination 
between various projects, to maximise the effectiveness of 
the programme in Russia. 
In Ukraine, support included the launch of the publication 
'Ukrainian Economic Trends' and advice on demonopo-
lisation and encouragement of competition as well as the 
development of SMEs. In Kazakhstan, projects con­
centrated on industrial policy and restructuring, the 
production of a unified tax code, the distribution of powers 
between central and local government and the develop­
ment of a business plan for the region of Aktubinsk. 
45 
Tacis has also launched a seminar programme bringing 
together representatives of all or several partner countries 
to discuss, develop and extend experience on issues of 
common concern. Subjects covered include aspects of 
the Partnership and Cooperation Agreements like trade 
and fiscal matters, or the policies and functioning of the 
European Community. 
Support to the Commonwealth of 
Independent States (CIS) 
Tacis is supporting the institutional structures of the CIS 
through an ECU 8 million programme which supports the 
institutions of economic cooperation in the region, 
including the Inter State Economic Committee in Moscow, 
the CIS Executive Secretariat in Minsk and the Central 
Asia Common Market secretariat to be established in 
Almaty. Programme activities for these institutions con­
centrate on training and institution strengthening and on a 
number of key issues for inter-state cooperation such as 
trade, transport, energy and payment mechanisms. 
Tacis framework programmes 
The Tacis Tempus Programme 
This programme is a cooperation scheme aiming to 
develop and restructure higher education institutions in the 
New Independent States. Tacis Tempus received a total 
of ECU 24 million (ECU 17 million from the 1994 budget 
and a further ECU 7 million from the balance of the 1993 
budget). 
The programme is based on networking of universities 
from the European Community and the New Independent 
States. In 1994, Belarus, Kazakhstan, Kyrgyzstan, 
Moldova, Russia, Ukraine and Uzbekistan participated in 
Tacis Tempus. 
The main instruments of the programme are joint 
European projects. In these projects, higher education 
institutions from two or three different European Com­
munity countries cooperate with one university or teacher 
training institution from the New Independent States to 
enable the latter to adapt its curricula, teaching methods 
and degrees to the challenges of democracy and the 
market economy. Funding is spent on communication 
equipment, textbooks, teaching assignments and mobility. 
In 1994, 27 full-scale and 76 preparatory projects were 
funded. The main areas of cooperation are: economics, political 
science, European language teaching, social studies, 
European studies, history and university management. 
The Phare and Tacis Democracy Programme 
The Democracy Programme was launched by the 
Commission in 1992, originally within the European 
Commission's Phare Programme for central and eastern 
Europe. However, it was extended to Tacis partner 
countries in 1993. The programme aims to contribute to 
the consolidation of pluralist democratic procedures and 
practices as well as the rule of law, with a view to 
supporting the overall process of economic and political 
reform. 
In particular the Democracy Programme seeks to support 
the activities and efforts of non-governmental bodies. 
The Democracy Programme received, in 1994, a budget 
of ECU 10 million from each of Phare and Tacis and is 
managed jointly by Phare and Tacis. A bi-annual call for 
proposals is launched to identify activities that could be 
supported through the programme. More information on 
the Democracy Programme is included in the section of 
this report on 'Developments in Programme techniques 
and issues'. 
The Phare and Tacis LIEN Programme 
This programme supports the development of non­
governmental organisations working in the social sector 
and promotes their activities in support of deprived 
communities so that local people in the poorest areas can 
assume responsibility for the running of their communities. 
The programme is jointly managed by Phare and Tacis. Its 
funding amounted to ECU 4 million in 1994. 
The programme gave rise to 12 projects in 1994. These 
included projects such as a rehabilitation centre for 
physically and mentally disabled children, a project to 
promote biological farming and an Aids prevention and 
education programme. 
Future outlook 
The transition process in the countries of the former Soviet 
Union is well underway. Since it is a dynamic process it is 
necessary for Tacis to adapt to ensure that the support it 
offers reflects the needs of the partner countries. 
The management of Tacis has therefore analysed in 1994 
a number of areas where changes could be introduced to 
support the changing needs of its partners and reflect the 
experience gained in implementing the Programme over 
the last four years. 
One area concerns establishing an overall multi-annual 
financial framework. The problems which the current an­
nual budget allocation cause have been covered earlier in 
this report. Providing some assurance of continuity of 
funding would make the current multi-annual program­
ming process more effective and improve Tacis' overall 
efficiency. 
Another area for consideration concerns the need to 
provide support in the important area of the development 
of small businesses. In 1994 a joint venture programme -
based on the successful JOPP programme (Joint Venture 
Opportunities Phare Programme) run by the Phare Pro­
gramme in central and eastern Europe - was introduced 
by Tacis for the Russian Federation. Unlike Phare, the 
Tacis initiative did not allow for the provision of equity 
funding. However, if the Tacis initiative proves successful, 
providing equity capital for joint ventures is an option 
which could be developed. Similarly, providing limited investment support through the 
financing of certain small infrastructure projects for cross-
border schemes is an option. Such support would only be 
used where it supports follow-up activities for Tacis 
projects. 
Tacis management has also reviewed the basis for 
determining the Programme's sectoral allocations. The 
conclusion is that this sectoral breakdown is still relevant 
but that some issues should be considered in relation to 
all sectors - these issues being environment and the 
promotion of women in economic and social life - while 
increased attention should be given to nuclear safety. 
Strengthening support for multi-country economic and 
political cooperation is also an area which must be taken 
into account when considering changes to the focus of 
the Programme. This is particularly important given the 
initiatives of the Tacis partner countries to re-establish 
economic links to foster sustainable development. 
Furthermore, it is important to underline respect for 
democratic principles, human rights and economic re­
forms as a condition for Tacis support. 
47 
Tacis funds allocated by sector 
This section contains a detailed breakdown of how Tacis 
funds allocated to each sector have been committed to 
various countries. 
For each sector, the following information is given: 
• an overview of total funds allocated by year 
. an overview of how total funds allocated have been 
committed by country. 
Nuclear safety and environment 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0.3 0 0 0 0.3 
Azerbaijan 0 0 0 0 0 
Baltic States 0 0 0 0 0 
Belarus 0 0 0 0 0 
Georgia 0 0 0 0 0 
Kazakhstan 0 0 0 0 0 
Kyrgyzstan 0 0 0 0 0 
Moldova 0 0 0 0 0 
Mongolia 0 0 0 0 0 
Russia 12.5 0 0 0 12.5 
Tajikistan 0 0 0 0 0 
Turkmenistan 0 0 0 0 0 
Ukraine 3.6 0 0 20.5 24.1 
Uzbekistan 0 0 0 0 0 
Multi-country programmes 36.6 80 100 67.5 284.1 
Other 0 0 0 0 0 
Total 53 80 100 88 321 
48 
Restructuring state enterprises and private sector development 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0.7 3.54 2.3 0 6.54 
Azerbaijan 0 2.6 0 1.9 4.5 
Baltic States 0 0 0 0 0 
Belarus 0.3 7.52 4 5 16.82 
Georgia 0 3.5 0 3.6 7.1 
Kazakhstan 0 6.55 6.3 6.3 19.15 
Kyrgyzstan 0 0.82 0 0 0.82 
Moldova 0 1.73 0 1.45 3.18 
Mongolia 0 0 0 2.56 2.56 
Russia 27.2 28.1 54.5 43.4 153.2 
Tajikistan 0 0 0 0 0 
Turkmenistan 0 0.6 0 1.8 2.4 
Ukraine 1.7 16.8 12.36 4.3 35.16 
Uzbekistan 0 2.26 0 3.35 5.61 
Multi-country programmes 7.6 4 15 5 31.6 
Other 0 0 0 0 0 
Total 37.5 78.02 94.46 78.66 288.64 
Public administration reform, social services and education 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0 1.5 1.8 0 3.3 
Azerbaijan 0 3 0 1.8 4.8 
Baltic States 0 0 0 0 0 
Belarus 0.7 1 0 0 1.7 
Georgia 1.2 1.25 0 1.8 4.25 
Kazakhstan 4.9 1.4 3.15 1.8 11.25 
Kyrgyzstan 0 0 2.6 0 2.6 
Moldova 0.2 2 0 1.9 4.1 
Mongolia 0 0 0 3.8 3.8 
Russia 45.8 24.57 36 18.85 125.22 
Tajikistan 0 0 0 11 
Turkmenistan 0 1.05 0 1.8 2.85 
Ukraine 4.7 3 7.36 4 19.06 
Uzbekistan 0 3.51 0 6.8 10.31 
Multi-country programmes 45.5 0 21 20 86.5 
Other 0 0 0 0 0 
Total 103 42.28 71.91 63.55 280.74 
49 
Agriculture 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0 1.66 0 0 1.66 
Azerbaijan 0 2.5 0 0 2.5 
Baltic States 5.95 - - - 5.95 
Belarus 1.7 2.51 2 0 6.21 
Georgia 2.8 1.5 0 1.8 6.1 
Kazakhstan 2.2 3.05 3.15 3.15 11.55 
Kyrgyzstan 0 2.71 4 0 6.71 
Moldova 1 2.27 0 4.7 7.97 
Mongolia - - - 0 0 
Russia 49.7 21.47 12.5 16.3 99.97 
Tajikistan 0 0 0 1.68 1.68 
Turkmenistan 1 3.65 0 3.6 8.25 
Ukraine 7.6 12.31 10.54 5 35.45 
Uzbekistan 0.8 3.05 0 3.35 7.2 
Multi-country programmes 7.2 3.8 0 2 13 
Other 0 0 0 0 0 
Total 79.95 60.48 32.19 41.58 214.2 
Energy 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0.5 0 4.1 0 4.6 
Azerbaijan 0 0 0 3.6 3.6 
Baltic States 3 0 0 0 3 
Belarus 4.5 1.9 0 0 6.4 
Georgia 0.5 0 0 0 0.5 
Kazakhstan 0.7 3.2 0 0 3.9 
Kyrgyzstan 0.7 0 2.4 0 3.1 
Moldova 0 2 0 0.6 2.6 
Mongolia 0 0 0 11 
Russia 41.3 16 21.1 19.5 97.9 
Tajikistan 0 0 0 11 
Turkmenistan 0 10 0 1 
Ukraine 6.4 8.08 5.4 15 34.88 
Uzbekistan 0.4 5.28 0 0 5.68 
Multi-country programmes 7 1.5 5 3 16.5 
Other 0 0 0 0 0 
Total 65 38.96 38 43.7 185.66 
50 
Transport 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 0 0 0 0 0 
Azerbaijan 0 0 0 0 0 
Baltic States 4 0 0 0 4 
Belarus 2.24 1 2 1.3 6.54 
Georgia 0.73 0 0 0 0.73 
Kazakhstan 0 0 0 0 0 
Kyrgyzstan 0 0 0 0 0 
Moldova 0 0 0 0.6 0.6 
Mongolia 0 0 0 0 0 
Russia 32.64 15.93 13.55 13.9 76.02 
Tajikistan 0 0 0 0 0 
Turkmenistan 0 0 0 0 0 
Ukraine 4.9 7.26 3.22 0 15.38 
Uzbekistan 0.29 1.68 0 0 1.97 
Multi-country programmes 5 9 15 7 36 
Other 0 0 0 0 0 
Total 49.8 34.87 33.77 22.8 141.24 
Policy advice 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 
Azerbaijan 
Baltic States 
Belarus 
Georgia 
Kazakhstan 
Kyrgyzstan 
Moldova 
Mongolia 
Russia 
Tajikistan 
Turkmenistan 
Ukraine 
Uzbekistan 
Multi-country programmes 
Other 
Total 2.85 
4.4 
0 
0.7 
2.75 
6.4 
5.7 
1 
0 
0 
0 
2.5 
0 
3 
8.5 
0 
37.8 16 0 
0 
0 
0 
0 
1.63 
0 
0 
0 
18.95 
0 
0 
0 
0 
20.5 
0 
41.08 2.85 
4.4 
0 
0.7 
2.75 
8.03 
5.7 
1 
0 
26.95 
0 
2.5 
0 
3 
37 
0 
94.88 
51 
Telecommunications 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 
Azerbaijan 
Baltic States 
Belarus 
Georgia 
Kazakhstan 
Kyrgyzstan 
Moldova 
Mongolia 
Russia 
Tajikistan 
Turkmenistan 
Ukraine 
Uzbekistan 
Multi-country programmes 
Other 0 
0 
0 
0 
0 
0 
0 
0 
0 
4.93 
0 
0 
0.83 
0 
1 
0 0 
0 
0 
0 
0 
0 
0 
0 
0 
5.1 
0 
0 
0.55 
0 
0 
0 0 
0 
0 
0 
0 
0 
0 
0 
0 
4.1 
0 
0 
0 
0 
0 
0 0 
0 
0 
0 
0 
0 
0 
0 
0 
14.13 
0 
0 
1.38 
0 
1 
0 
Total 6.76 5.65 4.1 16.51 
Other sectors 
Funds committed by country each year 1991 1992 1993 1994 Total 
Armenia 2.05 0 8.8 0 10.85 
Azerbaijan 0 0 8 0.7 8.7 
Baltic States 0 0 0 0 0 
Belarus 0 0 1 0.7 1.7 
Georgia 0 0 6 0.8 6.8 
Kazakhstan 0 0 1.4 1.12 2.52 
Kyrgyzstan 0 0 10 1 
Moldova 0 0 0 0.75 0.75 
Mongolia 0 0 0 0.64 0.64 
Russia 0 0 10 15 25 
Tajikistan 0 0 0 0.32 0.32 
Turkmenistan 0 0 0 0.8 0.8 
Ukraine 0 0 3.82 1.7 5.52 
Uzbekistan 0 0 0 1.5 1.5 
Multi-country programmes 6.2 39.4 40.09 62.18 147.87 
Other 0 0 0 0 0 
Total 8.25 39.4 80.11 86.21 213.97 
* Including Multidisplinary and Humanitarian Aid 
52 
Tacis financial performance 
The financial performance of the Tacis Programme can be 
measured from the following indicators 
• the level of commitments compared with the budget 
. the amount contracted 
. the level of payments compared with the budget for 
payments established at the start of the year 
. the amount paid 
• cumulative contracts as a percentage of cumulative 
commitments and cumulative payments as a per­
centage of cumulative contracts. 
Commitment of the Tacis Budget 
Since the beginning of the Programme, Tacis has been 
able to commit a very high percentage of its annual 
budget, with an average of 99.8 percent of the budget 
committed over its four years of operation. Fig. 1 - Funds committed, contracted and paid 
1991-1994 (in ECU million) 
1991 
commitments 1992 
contracts 1993 
payments 1994 
Amount contracted 
In 1994, Tacis dramatically increased the level of funds 
contracted. Funds contracted were almost as much as for 
the three previous years combined. ECU 514.7 million 
was contracted in 1994, compared with a total of ECU 
557.2 million contracted from 1991 to 1993 (see fig. 1 
and 2). Fig. 2 - Cumulative funds committed, contracted 
and paid 1991-1994 (in ECU million) 
CO I 
1991 1991-1992 1991-1993 1991-1994 
commitments contracts payments 
53 
During the course of 1994, Tacis signed about 1,300 
contracts. As a general rule, service contracts over ECU 
300,000 are awarded through restricted tendering 
procedures. The average size of the tendered contract is 
ECU 1.3 million. The budget year which the contracts 
signed in 1994 relates to can be seen in figure 3. 
Payments compared with the budget 
The Tacis Programme establishes at the beginning of 
each year a budget for payments to be disbursed during 
the course of the year. For 1994, Tacis payments reached 
100 per cent of ECU 300.3 million budgeted. Fig. 3 - Contracts concluded by calendar year 
(in ECU million) 
396'5 . 36.2 472.1 469.7 
70.2 
1991 budget 1992 budget 
99.6% 86.9% 1993 budget 
51.5% 1994 budget 
14.9% 
% contracted as of 31.12.94 
contracted in 1991 contracted in 1992 
• contracted in 1993 • contracted in 1994 
IJ not yet contracted 
Funding procedure 
As part of the Tacis programming process, there are 
three steps which take the annual budget approved by 
the European Parliament through to the point where 
projects are implemented and funds disbursed. 
Tacis has a financial management procedure which 
matches this process, starting from the time when 
detailed programmes (Action Programmes) are drawn 
up through to eventual disbursements of funds over the 
life of an individual project. 
Commitment - The design of financing proposals for 
Action Programmes is the basis for the commitment of 
funds. Once a financing proposal has received the 
favourable opinion of the Tacis Committee, the relevant 
funds associated with that proposal are committed by 
the Commission. Tacis must commit its entire annual 
budget in the calendar year to which that budget 
applies. Uncommitted money is cancelled. Contracting - The conclusion of contracts for the 
implementation of the agreed projects contained in the 
Tacis Action Programmes marks the start of 
implementation on the ground. As soon as a tendering 
or negotiation process has been successfully 
completed and a contract signed, the relevant funds 
are said to have been contracted. 
Tacis signed about 1,300 contracts in 1994. As a 
general rule, service contracts over ECU 300,000 are 
awarded through restricted tendering procedures. The 
average size of a contract is about ECU 400,000. 
Payment - Payment is the final step in the funding 
process. This takes place over the length of the project, 
which can be up to three years. 
In 1994 Tacis made about 2,700 payments. 
54 
Amount paid 
The Tacis Programme greatly increased its payment level in 
1994. Payments reached ECU 300.3 million, a figure which 
is 41 per cent more than the amount paid over the three 
previous years together (payments from 1991 to 1993 
reached a total of ECU 212.8 million). The budget year 
which 1994 payments relate to can be seen in figure 4. Fig. 4 - Payments in each budget year 
(in ECU million) 
472.1 469.7 
418.6 
396.5 
67.8% 58 
15.6 9.4 
1991 budget 1992 budget 1993 budget 1994 budget 
38.5% 15.6% 2% 
% paid as of 31.12.94 
paid in 1991 paid in 1992 • paid in 1993 
• paid in 1994 U not yet paid 
Cumulative contracts as a percentage of cumula­
tive commitments and cumulative payments as a 
percentage of cumulative contracts 
Over the life of the Programme, both ratios have 
significantly improved (see fig. 5). In 1991, only 1.3 per 
cent of funds committed were contracted and 7.5 per 
cent of funds contracted were paid. These figures 
reached respectively 61 and 47.9 per cent by the end 
of 1994. Fig. 5 - Cumulative contracts and payments 
1991-1994 
1991 1992 1993 1994 
Cumulative contracts 
as percentage of 1.3% 
cumulative commitments 
Cumulative payments 
as percentage of 
cumulative contracts 7.5% 25.6% 
15.6% 43.3% 61.0% 
38.2% 47.9% 
55 
List of major contracts signed in 19941 
Armenia 
Advice to the government 
Privatisation strategy 
Irrigation extension and farmer services 
Energy saving strategy 
Management advice 
Provision of know-how for mutual 
and investment funds 
Reform of the social security system 
Policy advice 
Azerbaijan 
Privatisation strategy 
Strengthening of the public 
administration 
Assistance to family and 
commercial farms 
Privatisation of the food 
distribution sector 
Development of the Caspian 
shipping company 
Institutional support 
Energy advisors group 
Emergency centre for refugees 
Management advice and 
service facilities 
Belarus 
Strengthening employment - Belarus 
Integrated programme in food 
production and distribution 
Global energy strategy 
Training for entrepreneurs 
Advisory group for enterprises 
Support for a long-term financing 
capability 
Support for product market information 
and agriculture 
Development of pilot extension services 
Support for the voucher 
privatisation programme 
Strengthening of employment 
Conversion to telecommunications 
Monitoring and evaluation 
of energy projects ECU 500,000 
ECU 950,000 
ECU 1,659,000 
ECU 1,100,000 
ECU 1,245,000 
ECU 900,000 
ECU 1,799,000 
ECU 500,000 
ECU 1,400,000 
ECU 2,977,000 
ECU 653,000 
ECU 1,391,000 
ECU 618,000 
ECU 600,000 
ECU 1,500,000 
ECU 7,604,000 
ECU 1,200,000 
ECU 600,000 
ECU 
ECU 
ECU 
ECU 2,505,000 
828,000 
577,000 
706,000 
ECU 898,000 
ECU 952,000 
ECU 830,000 
ECU 614,000 
ECU 775,000 
ECU 1,259,000 
ECU 1,599,000 Belarus and Ukraine 
Procurement of the early warning 
system 3 
Georgia 
Civil service reform and training 
Privatisation strategy 
Management training 
Parliamentary research center 
Development of the energy policy 
Oil energy supply 
Kazakhstan 
Advice to the government 
for the energy sector 
Technical assistance to the Ministry 
of Education 
Establishment of an energy centre 
Management training centre 
for the energy sector 
Assistance to the state committee 
for the management of state property 
and investment funds 
Banking advisory services 
Political formation and 
agriculture statistics 
Tutoring to small and medium 
enterprises 
Improvement and reorganisation 
of production and servicing of farm 
and agro-industrial 
machinery and equipment 
Akmola private farmers 
Kyrgyzstan 
English and German training 
Civil service reform and training 
Energy advisory group 
Social insurance reform 
Assistance for support to agriculture 
inputs and services 
Assistance for the improvement of 
the private livestock sector 
Improving energy efficiency in buildings ECU 2,174,000 
ECU 1,800,000 
ECU 1,200,000 
ECU 843,000 
ECU 935,000 
ECU 500,000 
ECU 5,580,000 
ECU 1,400,000 
ECU 677,000 
ECU 1,234,000 
ECU 885,000 
ECU 1,493,000 
ECU 1,800,000 
ECU 800,000 
ECU 1,665,000 
ECU 1,080,000 
ECU 2,070,000 
ECU 813,000 
ECU 998,000 
ECU 1,405,000 
ECU 2,600,000 
ECU 1,716,000 
ECU 1,999,000 
ECU 660,000 
1 Contracts under ECU 500,000 are not listed. Individual projects may 
comprise several contracts, likewise one contract may cover more than 
one project. 
56 
Management training in the energy sector ECU 995,000 
Social insurance reform ECU 1,200,000 
Government policy advice ECU 750,000 
Institutional support ECU 672,000 
Moldova 
National Bank of Moldova ECU 500,000 
Management training ECU 958,000 
Privatisation implementation Phase 1 ECU 540,000 
Small and medium-sized 
enterprises support ECU 685,000 
Assistance to the development 
of the energy sector ECU 2,000,000 
Moldova employment service ECU 1,042,000 
Conversion of six enterprises 
in radio electronics in Chisinau ECU 1,043,000 
Russian Federation 
Post-privatisation of enterprises 
- Urals region ECU 
Oil equipment certification Yekaterinburg 
- Urals region ECU 
Support to employment services 
- Urals region ECU 
Models for farm management on newly 
privatised farms - Urals region ECU 
Advice to the Russian Federation 
in the oil and gas sector ECU 
Bistro facility ECU 
Business education programme 
- Voronezh ECU 
Food and agriculture information system 
- Samara ECU 
Reduction of post-harvest food losses 
- Samara ECU 
Human resources development 
- Samara Oblast ECU 
Assistance to the food supply chain 
- Moscow ECU 
Didactic equipment for regional 
training centre - Moscow ECU 
Assistance to the development of 
private transport - Moscow ECU 
Restructuring of banks from Moscow 
and Samara ECU 
Training managers in the Russian 
textile industry ECU 
Enterprise conversion and development 
- Voronezh ECU 
Privatisation of wood processing industry 
- Moscow ECU 9,000,000 
2,500,000 
2,498,000 
2,799,000 
907,000 
3,000,000 
1,350,000 
2,175,000 
1,610,000 
1,330,000 
2,282,000 
1,400,000 
950,000 
700,000 
523,000 
750,000 
1,860,000 1,100,000 
2,299,000 
799,000 
ECU 1,346,000 Assistance to Russian enterprises and 
managers in their negotiations with 
foreign partners ECU 
Advice to industry in the Moscow region ECU 
Advice to regional authorities in Moscow ECU 
Assistance in the modernisation 
of refinery and power generation 
facilities at Kirishi - Russia 
Support to the committee of St Petersburg 
in charge of municipal hotels ECU 746,000 
Integrated agriculture project - Tyumen ECU 2,842,000 
Training in enterprise management 
-Tyumen ECU 2,888,000 
Energy savings for Tyumenergo ECU 992,000 
On-site nuclear safety Kola - Phase II ECU 2,398,000 
Analysis of Russian documentation 
on WER nuclear power plants for 
safety upgrading ECU 771,000 
On-site assistance Phase 2 Beloyarsk ECU 571,000 
On-site assistance Phase 2 Balakova 
nuclear power plant ECU 946,000 
On-site assistance Phase 2 Smolensk 
nuclear power plant ECU 2,354,000 
On-site assistance Leningrad nuclear 
power plant project management ECU 945,000 
Nuclear safety procurement agent Russia ECU 638,000 
Spareparts for energy control ECU 617,000 
Transfer of western methodology 
and practices to nuclear safety 
authorities of Russia ECU 3,092,000 
Trade unions in market economy 
- Moscow ECU 500,000 
Policy advice on General Agreements 
on Tariffs and Trade to Russia ECU 926,000 
Support to the privatisation centre 
- Russian Federation ECU 4,116,000 
Support to the privatisation centre 
- Russian Federation ECU 1,597,000 
Committee for the management 
of state property - Russian Federation ECU 4,200,000 
Russian steel industry review and 
assistance - Russian Federation ECU 1,956,000 
ln-house training for the Central Bank 
- Russian Federation ECU 1,500,000 
Support to the Russian investment 
scheme - Russian Federation ECU 729,000 
Technical assistance to develop 
the network of small and medium 
enterprises - Russian Federation ECU 3,440,000 
Small and medium enterprises institution 
and capacity building 
- Russian Federation ECU 886,000 
57 
Restructuring of Soyouz enterprise 
- Russian Federation ECU 920,000 
Creation of a private pension fund 
- Russian Federation ECU 1,500,000 
Teaching of economics and business 
in secondary schools and technical and 
general universities in Russia ECU 5,100,000 
Science and technology management 
in the Russian market economy 
- Russian Federation ECU 
Land registry - Russian Federation ECU 
Development of capacity in oil equipment 
- Russian Federation ECU 
Development of food wholesale and retail Management advice and service facilities ECU 900,000 
Small and medium enterprises support unit ECU 900,000 
market chain - west Siberia ECU 
Development of agricultural marketing 
groups - west Siberia ECU 
Coordinating Unit - Moscow ECU 
Fruit & vegetable warehouse - Samara ECU 4,184,100 
762,000 
1,970,000 
2,760,000 
2,652,000 
799,000 
1,709,000 
779,000 
1,492,000 Agro - Industrial food complex - Moscow ECU 
Agriculture Bank - St Petersburg ECU 
Addition to restructuring of food 
wholesale and retail distribution system 
- St Petersburg ECU 501,000 
Conversion of Lomo and Svetlana 
(St Petersburg) enterprises to the 
production of civilian optical equipment ECU 673,000 
Bank training and bank support 
- St Petersburg ECU 3,086,000 
Valorisation of oil and gas streams 
and effective oil and gas production 
-Tyumen ECU 2,987,000 
Strengthening of the regional employment 
-west Siberia ECU 2,183,000 
Join venture programme ECU 3,000,000 
Support to the public administration 
-west Siberia ECU 2,418,000 
Russian Federation and Ukraine 
Office equipment and computerisation 
of the state committee for the supervision 
of radiation and nuclear safety of Russia 
(GAN) and Ukraine (SCRNS) ECU 1,348,000 
Turkmenistan 
Energy advisory group ECU 1,000,000 
Technical assistance for agriculture 
and food training ECU 1,847,000 
Government policy advice ECU 1,500,000 
Civil servants training ECU 942,000 
Advice to the Ministry of Agriculture ECU 3,680,000 
Improvements in wheat production ECU 1,494,000 Ukraine 
Term track improvement 
Reduction of losses in food 
distribution chain 
Coordinating Unit Kiev 
Telecommunication sector analysis 
Global energy saving strategy 
Transition of the coal industry 
to market economy 
Energy pricing and tariffs 
Procurement of spare parts 
for Ukraine's nuclear power plants 
On-site assistance south Ukraine 
Phase 1 - nuclear safety 
On-site technical assistance to Rivne 
Stabilisation of existing shelter 
- Chernobyl unit 4 
Tranfer of western methodology 
and practices to nuclear safety 
authorities of Ukraine 
Nuclear safety procurement agent 
- Smolensk 
Implementation of mass privatisation 
Privatisation and restructuring 
in Zaporyzhye region 
Training for Oshadny Bank 
Restructuring of the Bank of Ukraina 
Policy formulation and training 
Improving farming support 
in Zaporyzhye 
Grain storage improvement project 
Fruit and vegetable sector 
demonstration project 
Construction of two optical fibre cables 
On-site assistance for Zaporyzhye 
nuclear power plants 
Nuclear safety procurement agent 
- Ukraine and Zaporyzhye 
Pilot agro-industrial food chain 
in the Lviv region - Ukraine 
Processing vegetable and meat 
Advice on the labour market 
Improvement of transport 
for the Black Sea area 
EC bank advisory service 
Training for tax administration 
Monitoring of food projects 
Management of radio-active waste 
- Chernobyl ECU 990,000 
ECU 2,799,000 
ECU 1,147,000 
ECU 830,000 
ECU 1,015,000 
ECU 660,000 
ECU 503,000 
ECU 1,649,000 
ECU 2,123,000 
ECU 1,820,000 
ECU 2,992,000 
ECU 2,010,000 
ECU 22,000,000 
ECU 2,998,000 
ECU 900,000 
ECU 944,000 
ECU 660,000 
ECU 5,400,000 
ECU 1,789,000 
ECU 916,000 
ECU 1,665,000 
ECU 549,000 
ECU 553,000 
ECU 7,447,000 
ECU 3,148,000 
ECU 3,203,000 
ECU 1,385,000 
ECU 1,484,000 
ECU 1,600,000 
ECU 1,006,000 
ECU 912,000 
ECU 995,000 
58 
Ukraine and Kazakhstan 
Support to small and medium 
enterprises 
Uzbekistan 
Small and medium enterprise 
development 
Government policy advice 
Project management training 
Employment services 
Support services for private farmers 
Government advice for the oil industry 
Support for the market skills 
development centre 
Government advice for the oil industry ECU 1,197,000 
ECU 
ECU 
ECU 
ECU 
ECU 
ECU 1,700,000 
2,000,000 
2,358,000 
1,152,000 
2,781,000 
1,000,000 
ECU 3,599,000 
ECU 943,000 
Uzbekistan, Turkmenistan and Kyrgyzstan 
Technical assistance for privatisation ECU 740,000 
Multi-country 
Customs equipment supply ECU 2,300,000 
Monitoring and evaluation 
of programme 1991 ECU 604,000 
Oil and gas pipeline management ECU 1,500,000 
EBTRA (EC Bureau for Bank Training) ECU 2,750,000 
Seminars programme ECU 1,000,000 
On-site technical assistance 
to Rivne phase 2 ECU 2,400,000 
Equipment procurement 
- nuclear safety ECU 12,052,000 
On-site assistance Kalinin Phase 2 
- nuclear safety ECU 1,626,000 
Preparation of decommissioning 
operation Unit 1 and 3 at 
the Chernobyl nuclear power plant ECU 1,431,000 
Telecommunication training ECU 986,000 
First 6 months 1994 projects 
of the International Science and 
Technology Center ECU 978,000 
Multifunctional simulator 
- nuclear safety ECU 774,000 
Regional venture fund, project manager 
- Smolensk (EBRD) ECU 600,000 
Restructuring of Incar enterprise 
in relation to privatisation activities ECU 614,000 
Legal advice ECU 1,000,000 
Policy advice ECU 4,000,000 
Policy and legal advice ECU 6,500,000 
On-site assistance to Rivne phase 2 ECU 1,600,000 
European Training Foundation 
(Tempus) ECU 14,865,000 Tempus programme ECU 6,200,000 
Tempus programme ECU 834,000 
Early warning system 
- nuclear safety ECU 1,637,000 
Local computer network 
- nuclear safety ECU 547,000 
Confinement - nuclear safety ECU 2,000,000 
Monitoring food aid ECU 1,700,000 
Multi-country policy advice, except 
for Uzbekistan, Kyrgyzstan, Armenia, 
Moldova and Turkmenistan ECU 1,000,000 
Small and medium enterprises fund 
part 1 (EBRD) ECU 825,000 
Rivne equipment - nuclear safety ECU 2,000,000 
Monitoring and evaluation ECU 711,000 
Technical support for the financial 
services sector ECU 835,000 
Management services Action 
for Cooperation in the field of 
Economics (ACE) ECU 1,080,000 
Management services Action 
for Cooperation in the field of 
Economics (ACE) ECU 920,000 
European Senior Service Network 
(360 missions to CIS-countries) ECU 4,000,000 
Visiting Programme Chambers 
of Commerce ECU 500,000 
Perm Motors and Incar enterprise 
restructuring (EBRD) ECU 891,000 
Framework contracts for 
Tacis financial institutions ECU 950,000 
Urals regional venture fund 
investment advice ECU 1,000,000 
Belarus credit line - technical 
cooperation to participating banks ECU 997,000 
Management of the Coordinating 
Units in Azerbaijan, Armenia, 
Georgia and Moldova ECU 1,875,000 
Management of the Coordinating 
Units in Central Asia ECU 1,999,000 
Others 
Food aid programme for 
Caucasian Republics ECU 650,000 
Black Sea environment impact 
assessment ECU 734,000 
Development of WER 440 nuclear 
power plant, multifunctional 
simulators supply ECU 3,998,000 
Work attachment programme ECU 1,900,000 
Financial framework task force ECU 3,249,000 
Tacis environmental support facility ECU 1,054,000 
59 


ISSN 0254-1475 • Com (95) 349 final • DOCUMENTS • EN • Catalogue number: CB-CO-95-376-EN-C 
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