Proposal for a Council Decision approving the text of a 10th EC-UNRWA Convention covering the years 1999-2001, prior to the signature of the Convention by the Commission and the United Nations Relief and Works Agency for Palestine Refugees in the Near East

(2000/C 021 E/06)

COM(1999) 334 final - 1999/0143(CNS)

(Submitted by the Commission on 8 July 1999)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 181 in conjunction with Article 300(3) first subparagraph thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the Convention concluded with the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), approved on 22 October 1996(1) expired on 31 December 1998;

Whereas the Community assistance to UNRWA forms part of the campaign against poverty in the developing countries and thereby contributes to the sustainable economic and social development of the population concerned and the host countries in which the population lives;

Whereas a new Convention should be concluded with UNRWA so that the Community's aid can continue to be provided as part of a comprehensive programme offering a measure of continuity;

Whereas support of UNRWA operations would be likely to contribute to the attainment of the Community objectives described in the above paragraph;

HAS DECIDED AS FOLLOWS:

Article 1

The Convention between the European Community and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) concerning aid to refugees in the countries of the Near East is hereby approved on behalf of the Community.

The text of this Convention is attached to this Decision.

Article 2

The execution of the Community programme of food aid to UNRWA shall be governed by the procedure defined in Regulation (EC) No 1292/96(2).

Article 3

The President of the Council is hereby authorised to designate the persons empowered to sign the Convention in order to bind the Community.

(1) OJ L 282, 1.11.1996, p. 69.

(2) OJ L 166, 5.7.1996, p. 1.

CONVENTION

between the European Community and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) concerning aid to refugees in the countries of the Near East

Article 1

The European Community (hereinafter referred to as "the Community") hereby concludes this Convention with the United Nations Relief and Works Agency for Palestine Refugees in the Near East (hereinafter referred to as "UNRWA") in order to confirm its commitment to a programme of aid to UNRWA. This funding, extending over a three-year period (1999-2001), shall take the form of cash contributions for use under the UNRWA education and health programmes and contributions in kind or in cash for the use under the UNRWA food aid programme.

The financial commitment will be made subject to budgetary availability and with respect to the financial perspectives of the European Communities until the year 2006.

Article 2

Community contribution

1. The Community shall pay to UNRWA annually a cash contribution towards the cost of the education and health programmes.

The size of this contribution for the education programme shall be EUR 32,45 million in 1999, EUR 34,07 million in 2000 and EUR 35,77 million in 2001.

The size of this contribution for the general health programme shall be EUR 5,88 million in 1999, EUR 6,17 million in 2000 and EUR 6,48 mmillion in 2001.

2. Taking into account the annual evaluation of the needs of the refugee population, other Community resources can also be mobilised for UNRWA's food aid programme to meet the specific needs of vulnerable groups.

The amounts, quantities and characteristics of the commodities, cash and services provided and all other conditions related to support to the food aid programme will be subject to separately agreed conditions, based on annual requests from UNRWA.

Article 3

Information

1. Before the beginning of each year UNRWA shall send the Community all relevant information as regards the planned implementation of the programmes as well as information on the planned distribution and use of the Community contribution.

This information shall in particular contain a clear and precise definition of the UNRWA programmes and the relevant budget, its priorities and the corresponding budgetary allocations, and structure of the specific programmes where the contribution of the Communtiy will be used.

2. UNRWA shall inform the Community beforehand of any significant changes tat may be planned in the education or health programmes provided by UNRWA.

In the event of any significant changes in the education or health programmes provided by UNRWA during the period of validity of this Convention, the Community reserves the right to withdraw its agreement on the use of the funds made available to UNRWA under the Convention for these purposes. In such a case or cases the Community would notify UNRWA accordingly.

Article 4

Payment arrangements and reporting

1. The Community contribution shall be used for the education and health programmes, in accordance with Article 2.1.

2. The Commission shall each calendar year pay the contribution to UNRWA as follows:

- 50 % of the annual amount specified in Article 2 by way of an advance the first semester, normally on 1 March of that year, within 60 days upon receipt of a request for payment and the documentation pursuant to Article 3(1).

- 45 % of the annual amount specified in Article 2 by way of an advance the second semester, normally on 1 October of that year, within 60 days upon receipt of a request for payment and for the first quarterly financial report.

- the remaining 5 % of the annual amount specified in Article 2 within 60 days upon receipt of the annual report pursuant to Article 5(2) and of a request for payment.

3. The Commission shall make payments in Euro (EUR).

4. Without prejudice to the payment schedule in Article 4(2), payments shall normally be made within 60 days of the approval of documentation supporting all payments. The Commission shall provide its approval or comments within 30 days after their reception.

Article 5

Reports, audit and review

1. UNRWA shall provide the Community with all relevant information that it may require relating to the progress of the execution of the education and health programmes, which shall include documents that will give detailed accounts of expenditure and budgetary estimates of future expenditure and the annual statistics of the UNRWA departments of education and health.

2. An annual report of the programmes and of the execution of the programmes financed under the Convention, including an audit of the programme acocunts including the part financed by the Community, must be established for each year and at the end of the period covered by this Convention.

The report on the operation of the food aid programme shall in particular indicate the number, category and location of recipients and the services provided the cost of the programme and the use made of Community contributions in kind and in cash.

Article 6

Adjustments

If necessary, during the life of the Convention, the parties can by mutual agreement change those parts of the contributions otherwise fixed under this Convention, on the basis of an exchange of letters between the Community and UNRWA.

By the end of 2000, political developments regarding the refugees will be reviewed by the parties, and an evaluation made of any plans UNRWA has formulated, and, if this is the case, put into effect, for the hand-over of its functions to the Palestinian Authority and/or any other body.

If, during the life of the Convention, any or all of the functions of UNRWA are transferred to the Palestinian Authority or to any other body, necessary adjustments will be made to those parts of the Community contribution to UNRWA under the Convention, on the basis of an exchange of letters between the Community and UNRWA.

Article 7

Financial control and visits

1. Financial transactions and financial statements shall be subject to the internal and external auditing procedures laid down in the Financial Regulations, rules and directives of UNRWA. A copy of the audited financial statements shall be submitted to the European Commisison by UNRWA.

2. UNRWA shall:

(a) Keep financial and accounting documents concerning the programmes financed by the Community, and

(b) make available to the competent bodies of the Community, upon request, all relevant financial information, including statements of accounts concerning the programme/project, whether they are executed by UNRWA or by subcontracting

3. In conformity with the Financial Regulation of the Community, the Commission and the Court of Auditors may undertake, including on the spot, checks related to the operations financed by the Community.

4. UNRWA shall facilitate the access of the representatives of the Community to the sites of UNRWA operations.

Article 8

Visibility of the Community contribution

1. UNRWA shall contribute to the visibility of the actions financed by the Community, provided that this does not harm its mandate, its basic principles or the safety of its staff.

2. During each action, UNRWA shall endeavour to bring the support and financing given by the Community to the attention of the target populations, the general public and the media and refer to this contribution in its internal and annual reports.

3. In keeping this objective UNRWA should present, where appropriate, a visibility plan within the framework of an action.

UNRWA shall ensure that all supplies, equipment and any other material financed by the Community display the EC logo that should be of the same size and with the same prominence as the logo of UNRWA, taking into account the provisions of paragraph 1 of its Article.

4. Evidence of implementation of activities undertaken to ensure appropriate visibility will be provided in the final reports.

5. Where appropriate, obligations in terms of visibility stemming from paragraphs 1, 2 and 3 of this Article shall apply to sub-contractors.

Article 9

Arbitration clause

1. Any dispute, controversy or claim arising out of or relating to the interpretation application or fulfilment of this Convention, including its existence, validity or termination, which cannot be settled amicably between the Parties shall be referred to arbitration in accordance with the Permanent Court of Arbitration's Optional Rules for Arbitration involving International Organisations and States in force at the date of the signature of this Convention.

2. There shall be one arbitrator.

3. The language to be employd during arbitration is English.

4. In the absence of agreement between the two Parties, the arbitrator shall be designated by the President of the International Court of Justice following written request submitted by either Party.

5. The Arbitrator shall reach his/her decision in accordance with the terms and conditions of the contract in the light of the general principles of law recognised by States.

Article 10

Agreement on global arrangements

Following agreement in the discussions being held between the United Nations and the Commission on global arrangements covering the donation of voluntary contributions, the relevant provisions of such agreement and this Convention shall be promptly reviewed and any necessary amendments agreed to by UNRWA and the Commission shall be made to the applicable provisions of this Convention.

Article 11

Duration of the Convention

The Convention shall cover a period of three calendar years (1999, 2000 and 2001).

Article 12

The Convention shall be approved by the parties in accordance with their own procedures.

This Convention shall enter into force on the first day following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.

Article 13

This Convention shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each version being equally authentic.