ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(80)911
Vol.1980/0284

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(80)911 final
Brussels /,9thJanuary 1981
{
REPORT FROM THE COMMISSION TOTHE COUNCIL
onmeasures ^taken orproposed inorder toimprove theterms of
competition forparticipation inEDF-financed contracts
■
(Report presented inaccordance with Article 44ofthe
Financial Regulation applicable tothefourth EDF)
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COM (80)911final

-1-
Initsinterimreportonthedistribution amongMember'Statesof
EDF–financedcontracts,forwardedtothePermanentRepresentatives Committee
(COREPER)on19March1980,theCouncilACP~FINWorkingPartydescribedthe
progressithadmadeinseekingpracticalimprovements tothetermsof
competitionbetweenfirmsoftheNineinviewofthelowrateofparticipation
recordedforcertainnationalities .ThisreportwasapprovedbytheCOREPER
on17April.
Amongthemeasuressuggested,whichhadalreadybeenunanimously approvedby
allthedelegations,was.arequestthattheCommissionpresent,inaddition
toitsannualgeneralreportontheoutcomeofinvitationstotender,an
adhocreport>basedonArticle43oftheFinancialRegulationapplicableto
thefourthEDF,onthemeasuresthattheCommission hastakenorproposesto
takeinordertoimprovethetermsofcompetitionforparticipation in
invitationstotenderissuedforEDFprojects..
InresponsetothewishesoftheMemberStates,theCommissionispresenting
thisreporttotheCouncil.'Itdealswiththesixmeasuresonwhichthere
wasunanimousagreementwithintheCouncilandwhichareconcernedwith
informingfirmsdirectorwithinformingtheMemberStatesorACPStates.
Thefollowingpagesdescribetheprogressmadeinimplementing eachof
thesemeasures.. ,•
*
**

-2-
I.InformationbulletinonprojectsfinancedbytheCommunity
1.Thismeasureisamajorinnovationinthesystemofinformation on
development schemesfinancedbytheCommunity-
N »
Uptonow,information onprojectsfin^.icedbytheCommunityhasbeenpublished
intheOfficialJournaloftheEuropeanCommunities attwostagesinthe
procedure:followingthefinancingdecisionandatthemomenttheinvitation
totenderisissued(noticeofinvitationtotender).
t
1
Thenewarrangements resultingfromtheCouncil'sdeliberations aimtogivea
progressreportontheprojectsbeforetheyreachimplementation ,by
producinginformation fromtheearlieststage(identification )andupdatingit
asandwhenthesuccessivestagesinthelifeoftheprojectarereached;
appraisal,presentation forfinancing,financingdecision,implementation .
TheCommissionsharestheMemberStates'viewthatthisnewflowofinformation
shouldhelpencouragemorecompetition amongfirmstenderingforcontracts
sincetheinformation ontheinitialstagesoftheprocedureisavaluable
sourceofknowledgeforsuchfirms,particularly inhelpingthemplantheir
medium-andlong-termindustrialandcommercialstrategies.Atthesame
time,thefactthatmoreinformationisavailablemeansthattheadministration
ofdevelopmentaidfundsbecomesmoretransparent.
2.Itshouldbestressedthatthisexpandedinformation systemhasnotbeen
putintopracticesimplybychangingtheformoftheexistinginformation system.
*

-3-
(a)Inordertogathertheinformationitwasnecessarytostandardize and
centralize thedata,giventhevarietyoffactorstobetakeninto
consideration andthediversityofthedepartments responsible for
preparingdevelopment schemes. ".
Tothisend,twomeasuresweretaken:
i.instructions weregiventospreadtheuseofthe"projectcard",
givingtheessentials,instandardized form,oftheproposed
development schemes' .andtheprogressmadeonthecorresponding
dossiers; -
ii.agradeBofficialhasbeengiventhefull-timetaskofsummarizing
thedataprovidedonthebasisofthecentralizedprojectcards.'
Althoughcertaindelegationsfelt,aswasstated'inthereportto
theCOREPER,thatthereshouldnotbeanyconnection betweenthe
problemsofsubstance andtheCommission^staffingproblems,the
Commission wouldemphasizethatthisinternaladministrative
measure,takenbecauseofthehighpriorityaccordedbythe
MemberStatestoinformation matters,hasbeenpossibleonlyto
thedisadvantage oftheworkinwhichtheofficialconcerned was
engagedpreviously.
(b)Withregardto-thechannelfordisseminating thenewtypeofinformation
itisproducing,theCommission hashadtoabandonitsoriginalplan
topublishanindependent monthlybulletin.
Thisidearanintotoomanyproceduraldifficulties,whichwouldhave
delayedtheimplementation ofthisfirstmeasureforimprovingthe-
conditionsofcompetition andwouldinanycasehaverestrictedthe

mAm
freedomofactionofthedepartmentsresponsibleforgatheringand
producingtheinformation .
TheCommissionthereforedecidedtouseinsteadanexistingmedium
ofinformationspecializing indevelopmentmatters.Accordingly,
itturnedtotheadvantagesoffer"Jby"TheCourier",aoACP™EEC
reviewwhichisavaluablesourceofinformation onactivityunder
theLomeConventionandalreadypublishes,interalia,announcements
onbehalfoftheCentreforIndustrialDevelopment.Thefactthat
thisperiodicalispublishedonlyeverytwomonthsisnot.a
disadvantage fromthestandpointofprovidinginformation on
development schemes,sincethereisrarelyasuddenchangeoftempo
asthevariousstagesofaprojectgoaheadand/,inaddition,the
informationtobeprovidedwillrelatewhereverpossibletothefuture
(advancenoticeofpresentation forfinancing,&ftheissueof.
invitationstotender,andsoon);furthermore,thecentraldata,
bankofprojectcardswillmake'itpossibletokeeptrackofthe
latest .developments inaprojectrightuptotheeveofpublication ,,-
Asaresult .oftheCommission'saction,"TheCourier"willcarrya
newsectionentitled"Operational summaryofEEC-financed development
schemes"*Thissummarywillcoveralldevelopment schemesfinanced
fromCommunityresources,notonlyEDF-financedprojectsintheACP
StatesandtheOCTbutalsooperationsintheMediterranean countries
(MaghrebandHashreq)andinthenon-associated developingcountries.
Theinclusionofanewsectionhasalsomeantthatthecirculation of
"TheCourier"hashadtobesubstantially in«reasedforthespecific

-5-
\
aimofprovidinginformation onprojects:inthisconnectionit
wasdecidedtoincludeinthemagazine'smailinglistallthe
consultancyfirmsregistered onthecentralfilesofthe
Directorate-General forDevelopment andallthefirmswhichhave
previouslyatsometimesentinbidsinresponsetoinvitationsto;,
tenderissuedforoperationsfinancedbytheCommunityandwhich
couldstillbetracedbytheCommission.Itshouldbepointedout
thatthisexpansionof"TheCourier's"circulation amountstonearly
5000newaddresses,andtheCommissionwouldofcoursewelcomeany
newrequestfrominterestedbusinessfirmsforinclusiononthe
mailinglist.
ThenewsectionwillmakeitsfirstappearanceintheNovember-December
issueof"TheCourier"thisyear._Itdealswith.153projects.
II.Publicationofnoticesofinvitationtotenderinthereview
"Development Forum"
ι. -
1.Thisstepwasdevisedasausefulback-uptothepublicationofnotices
ofinvitationtotenderintheOfficialJournaloftheEuropeanCommunities,
inviewoftheinternational audiencereachedbytheaboveinformation
bulletin,whichispublishedfortnightlybytheUnitedNations.,
TheCommissionhopesbythismeanstoreachawiderpublic,beyondthe
circleofsubscriberstotheOfficialJournal,amongthosefamiliarwith
projectsfinancedbytheWorldBank,theAsianDevelopmentBank,andsoon,
andthustoarousegreaterinterestinCommunity-financedcontractsamong
\ • 4
potentialtenderers..
2.Inordertoimplementthismeasure,itwasnecessarytocometoan
agreementwiththeUN.*-Asaresult,sinceJuly1980allnoticesof^
invitationstotenderrelatingtoEEC-financedprojectsinthedeveloping
countrieshavebeensenttotheUNOfficeinGeneva.^Thefirstnotices
appearedintheissu6of."Development Forum"whichwaspublishedon
18August.

-L-
ι
freedomofactionofthedepartmentsresponsibleforgatheringand
producingtheinformation .
TheCommissionthereforedecidedtouseinsteadanexistingmedium
ofinformationspecializing indevelopmentmatters.Accordingly,
itturnedtotheadvantagesofferJby"TheCourier",anACP-EEC
reviewwhichisavaluablesourceofinformation onactivityunder
theLomeConventionandalreadypublishes,interalia/,announcements
onbehalfoftheCentreforIndustrialDevelopment.Thefactthat
thisperiodicalispublishedonlyeverytwomonthsisnota
disadvantage fromthestandpointofprovidinginformation on
development schemes,sincethereisrarely3suddenchangeoftempo
asthevariousstagesofaprojectgoaheadand,inaddition,the
informationtobeprovidedwillrelatewhereverpossibletothefuture
(advancenoticeofpresentationforfinancing,oftheissueof
invitationstotender,andsoon);furthermore,thecentraldata,
bankofprojectcardswillmakeitpossibletokeeptrackofthe
latest .developments inaprojectrightuptotheeveofpublication ,,>
Asa'resultoftheCommission'saction,"TheCourier"willcarrya
newsectionentitled"Operational summaryofEEC-financed --development
schemes",,Thissummarywillcoveralldevelopment schemesfinanced
fromCommunityresources,notonlyEDF-financedprojectsintheACP
StatesandtheOCTbutalsooperationsintheMediterranean countries
(MaghrebandMashreq)andinthenon-assoeiated developingcountries.
Theinclusionofanewsectionhasalsomeantthatthecirculationof
"TheCourier"hashadtobesubstantiallyincreasedforthespecific

aimofprovidinginformation onprojects:inthisconnectionit
i
wasdecidedtoincludeinthemsgasine'smailinglistallthe
consultancy firmsregistered onthecentralfilesofthe
Directorate-General *orDevelopment andallthefirmswhichhave
previouslyatsometimesentinbidsinresponsetoinvitationsto
tenderissuedforoperationsfinancedbytheCommunityandwhich
couldstillbetracedbytheCommission.Itshouldbepointedout
thatthisexpansionof"TheCourier's"circulation amountstonearly
5000newaddresses,andtheCommissionwouldofcoursewelcomeany
newrequestfrominterestedbusinessfirmsforinclusiononthe
mailinglist.
ThenewsectionwillmakeitsfirstappearanceintheNovember-December
issueof"TheCourier"thisyear.Itdealswith153projects.
II.Publication ofnoticesofinvitationtotenderinthereview
"Development Forum" -
ι
1.Thisstepwasdevisedasausefulback-uptothepublication ofnotices
ofinvitationtotenderintheOfficialJournaloftheEuropeanCommunities,
inviewoftheinternational audiencereachedbytheaboveinformation
bulletin,whichispublishedfortnightly bytheUnitedNations.,
TheCommissionhopesbythismeanstoreachawiderpublic,beyondthe
circleofsubscriberstotheOfficialJournal,amongthosefamiliarwith
projectsfinancedbytheWorldBank,theAsianDevelopment Bank,andsoon,
andthustoarousegreater(interestinCommunity-financed contractsamong
potentialtenderers..
2.Inordertoimplementthismeasure,itwasnecessarytocometoan
agreementwiththeUN.*Asaresult,sinceJuly1980allnoticesof
invitationstotenderrelatingtoEEC-financedprojectsinthedeveloping
countrieshavebeensenttotheUNOfficeinGeneva.„Thefirstnotices
appearedintheissueof."Development Forum"whichwaspublishedon
18August.

-6-
III.Quarterlynotification ofstatisticsrelatingtocontracts
' 'V
I
1.HithertotheCommission hassuppliedtheMemberStateseachyearwith,
statistics oncontractsintwoways:
i.officially,initsannualreporttotheCouncil,pursuantto
Article43oftheFinancialRegulation (fourthEDF),ontheresults
ofinvitations totender:thesestatistics relatetoresultsasat
31Decemberoftheyearinquestion;
ii.moreinformally,theCommission hasdevelopedthepracticeof
supplyingthemembersoftheACP/FINWorkingPartywithstatistical
tablesrelatingtotheresultsascompiledupto30Juneofthe
currentyear.
/ - *
2.TheCouncilhasaskedtheCommissiontostartmakingquarterlyreturns
T
ofstatistics oncommitments relatingtoworksorsupplycontracts and
technicalcooperation contracts,so.astoprovideanup-to-datepictureof
thedistribution ofcontracts amongtheMemberStates.
TheCommissionisawareoftheimportance attachedtotheregularmonitoring
ofthesestatistics andwillensurethattherequestiscompliedwithby
presenting aninitialreport .' •onthesituation asat
30September 1980withregardtocontractsfinancedbythe,EDF..Itis
alsogatheringinformation forasimilarsystemdealingwiththeresults
ofoperationsfinancedintheMediterranean countriesandthenon-associated
developing .countries,althoughherethedataareatpresentmuchmore
sparsethanthoserelatingtotheEDF.

-7-
IV.Publication intheOfTiciatJournalofaweeklysummaryof
currentinvitations totender
1,Thepurposeofthisistosupplement thepresentpracticeofpublishing
noticesofinvitationtotenderasandwhentheyareissued,.bysupplying
aweeklytablesummarizing thesituationofprocedures whichhavebeen
opened,includingthefollowingdetails;serialnumber,countriesor
regionsconcerned,abriefdescription oftheservicestobeprovided,
finaldates,andsoon.Theadvantageofsuchanarrangement wouldbe
toprovideatfrequentintervals acompletepictureoftheinvitations
1totenderwhicharebeingpresentedatagivendate,thusprovidingthe
firmsinterested withtheLatestinformation ontheprogressofprocedures
andperhapsgivingthemtheopportunity toparticipate inaninvitationto
tenderwhosepublication theyhadmissed.
2.Whileconsidering thatwell-organized firmsornationalbodies
representing branchesofbusinessorindustryshouldbeperfectlycapable
ofkeepingtrackofdevelopments forthemselves theCommission agreedto
<
increaseitsinformation effortonthelinessuggested.Itwishesto
pointout,however,thataswithanypublication inthesixofficial
languagesoftheCommunity,thereareanumberoftechnicaldifficulties
tobeovercomebeforesuchameasurecanbeimplemented .Inaddition,
giventhelimitednumberofstaffatitsdisposalforcarryingoutthis
typeofwork,theCommission consideredthatpriorityshouldbegivento
launchingtheoperational summaryofdevelopment schemes(seepointI).
Nevertheless ,itwouldbereasonabletoexpectthattheweeklysummary
»willbeinoperationearlyin1981.
V.UpdatingoftheprogrammeofcontractsunderthefourthEPF
Thefirstversionofthis"programme",whichconsistsofanadvance
timetablefortheissueofinvitations totender,brokendownby
ACPState,waspublishedinFebruary1977andwassubsequently updated
ItwillberecalledthatundertherulesforCommunity-financed operations
thetimeallowedforsubmittingtendersisnormallytwomonthsforsupply
contracts andfourmonthsforworkscontracts.

to1January1978.
Asrequested bytheCouncil,theCommission hasupdatedthisdocument.
Thisnewversion,whichisbasedonknowledgeofprojectsupto'and
including 1July1980,covers ,the1980/31-1983period.
Thedocument wassenttotheCouncilSecretariat earlyin
November 1980. -
VI.KeepingtherecipientcountriesinformedviatheCommission Delegates
ofwhattheMemberStates'firms,notablythosewithouton-the-spot
representation ,canofferinthecontextofmutualagreementcontracts
1.Asitbecameapparentthatinthecaseofmutualagreementcontracts-
which,whilenotexcluding anyform.ofcompetition,leavethecontracting
authoritywithagreatdealoffreedomintheselectionofthecontractor-
theACPStates'authorities tendedtoconsultalimitedcircleoffirms\
knowntothemtosomedegree,certainMemberStates*delegations expressed
thewishtoseewiderconsultation .Oneofthesolutions advocatedin
thisconnection wasthattheCommission Delegatesshouldberequestedto.
keepthenationalauthorities oftherecipientcountriesinformedofwhat
theMemberStates'firmsotherthanthoserepresented onthespothadto
offer.Thisquestionwasraisedwithparticular referencetoDanish,
IrishandLuxembourgfirms,forwhichthedifficulties involvedinbeing
represented onthespotarefargreater.
j
2.TheCommission agreedtoconsideractionofthiskind.Itwishesto
pointout,however,thatinitsviewtheDelegateshaveonlyageneral
information missioninthisconnection .
Togivepracticaleffecttothisapproach,acirculartoallDelegatesis
incourseofpreparation .Itwillaccompanybrochurescontaining
information ontheinternalmarketsofDenmark,IrelandandLuxembourg
andthisinformation willbemadeavailabletotheACPStates'national
authorities attheCommissionDelegations .Thisactionwill,moreover.

fallwithinthegeneralcontextoftheCouncil'sworkonimproving
conditionsofcompetition :theaimofthecircularistogiveanaccount
ofthevariousmeasuresimplementedtothatend,inthesamewaythat
thisreporthasdone,thoughtheCommissionfeltthattheinformation
shouldgototheCouncilfirst»
*
**
WithoutwishingtoanticipatefutureworkbytheCouncil,theCommission
wouldstressthatsomeofthemattersreferredtoinpointIIIofthe
interim^ReporttothePermanentRepresentatives Committeehavealready
receivedattentionfromtheCommissiondepartments .
Withregardtotheupdatingofthebrochureonaccesstocontracts,in
particular,theCommission wouldinformtheCouncilthatthenewedition
isatpresentbeingprintedandshouldbeavailabletothepublic
towardsthebeginningoftheyear.
Similarly,theCommissionhasalreadyreceivedanumberofsuggestions .
fromsomeMemberStatesfDelegations concerningthenexteditionofthe
ManualofInstructions forDelegatesandontheroletobeplayedby
Delegatesinensuringequalopportunity ofaccesstoEDF-financed
contracts.Althoughsomeoftheproposalsmadecallforcareful
consideration -inthelightofcourseofdetaileddiscussionwithall
theCouncilDelegations-theCommissionwouldemphasizeitsopenness
toanysuggestionforimprovingLocalconditionsofcompetition among
firms,providedthattheflexibility whichisessentialforthe,
Delegates'activityissafeguarded.