Proposal for a Council Decision concerning a Community contribution to the European Bank for Reconstruction and Development for the Chernobyl Shelter Fund (97/C 364/08) COM(97) 448 final - 97/0235(CNS)

(Submitted by the Commission on 5 September 1997)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 203 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas a Memorandum of Understanding (MoU) was signed on 21 December 1995 between the governments of the G7 countries and the European Commission and the Government of Ukraine on the closure of the Chernobyl nuclear power plant by the year 2000;

Whereas Article III (4) of the MoU provided that Ukraine and the G7 will continue to cooperate in the development of a cost-effective and environmentally sound approach to the shelter for Chernobyl IV, including the definition, as soon as possible, of technical and cost options as the basis for reviewing financial requirements;

Whereas the Commission, through the Tacis programme, actively participated in the development of such an approach which resulted in the definition of the 'Shelter implementation plan` (SIP) endorsed by the Ukrainian authorities;

Whereas at their Denver Summit of June 1997, the G7 Heads of State or Government and the President of the European Commission decided to add to the commitments undertaken in the MoU with Ukraine and endorsed the setting-up of a multilateral funding mechanism to assist Ukraine in transforming the existing Chernobyl sarcophagus into a safe and environmentally stable system, with measures as described in the SIP;

Whereas the implementation of the SIP will be placed in the context of the MoU between the G7 and Ukraine on the closure of Chernobyl by the year 2000;

Whereas, for the purpose of implementing the SIP, the Chernobyl Shelter fund has been established at the European Bank for Reconstruction and Development (EBRD) and will be administered by the EBRD;

Whereas the Community pursues a clear policy of supporting Ukraine in its efforts to eliminate the consequences of the nuclear accident which occurred on 26 April 1986 at the Chernobyl nuclear power plant and is thus willing to contribute the Chernobyl Shelter Fund;

Whereas, without prejudice to the powers of the budgetary authority, the contribution should amount to a maximum of ECU 100 million over the two years 1998 and 1999;

Whereas the contribution will be taken from existing Tacis credits and will thus not imply any supplementary budgetary expenditures from the 1998 and 1999 budgets;

Whereas this contribution shall be administered by the European Commission;

Whereas the Commission will ensure that, with regard to procurement arrangements pursuant to the rules of the Chernobyl Shelter Fund, no discrimination will be made between individual Member States of the European Community, irrespective of their having concluded individual Contribution Agreements with the Bank or not,

DECIDES:

Article 1

1. The Community shall contribute to the European Bank for Reconstruction and Development (EBRD) for the Chernobyl Shelter Fund, pursuant to Article II, Section 2.02, of the Rules of the Fund.

2. The contribution to the Fund shall be administered by the Commission in accordance with this Decision.

Article 2

The Community will make a contribution to the Fund of a maximum amount of ECU 100 million, to be paid over the two years 1998 and 1999.

Article 3

1. The Commission will forward all relevant information to the Court of Auditors and will request from the EBRD supplementary information that the Court of Auditors may wish to receive, as regards the financial operation of the Chernobyl Shelter Fund to the extent that it is related to the Community's contribution.

2. The Commission shall present, on a yearly basis, a progress report on the implementation of the Chernobyl Shelter Fund to the Council through the Committee for assistance to the newly independent States and Mongolia.