EUROPEAN COMMISSION Brussels, 7.6.2021 COM(2021) 276 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL EMPTY Financial information on the European Development Fund







European Development Fund (EDF): forecasts of commitments, payments and contributions



1.Foreword In accordance with Article 19(4) of the Council Regulation (EU) 2018/1877 on the Financial Regulation applicable to the 11th European Development Fund (hereinafter referred to as "11th EDF Financial Regulation"), the Commission presents in this document the commitments, payments and contributions made in 2020 and to be made in the years 2021 and 2022, taking into account the forecasts of the European Investment Bank (EIB). This document sets out the financial implementation of the EDFs (Eighth to 11th) for 2020 and the forecasts of implementation for 2021 and 2022. The parties to the European Development Fund contribute funds directly to the EIB for the instruments, which it manages under the Ninth, 10th, and 11th EDFs (the Investment Facility and interest rate subsidies). 2.Introduction The Commission and the EIB have updated their commitment and payment forecasts for 2021 and 2022 for each of the African, Caribbean and Pacific (ACP) countries and the Overseas Countries and Territories (OCTs). The payment forecasts in particular have been compiled with the aim of helping the parties to the European Development Fund to assess as accurately as possible the amounts they need to earmark in their national budgets while ensuring that sufficient financial resources are available for the EDF to avoid liquidity problems. In accordance with Article 19(4) of the 11th EDF Financial Regulation, the estimates of commitments and payments have been updated following the latest forecasts. The graph below shows the general evolution in gross commitments and payments since 1999 until 2020 and projections for the period 2021-2022 (Commission and EIB cumulated amounts). Gross commitments and payments: trend 1999-2022 (EUR million) * Forecasts for 2021-2022 Note: Figures from implementation of the European Development Funds until 31 December 2020 (commitments and payments) and forecasts for 2021-2022.

3.Financial actuals 2020 and forecasts for 2021 - 2022 (EUR million) The following table provides an update of the commitments, the payments and of the contributions, based on the Commission's latest forecasts. Actuals 2020

Forecasts 2021-2022 (*) 2020 2021 2022 Commitments Commission 3 894 Not applicable Not applicable EIB 2 053 310 Not applicable Total 5 947 310 Not applicable Payments Commission 4 678 3 763 2 500 EIB 667 612 649 Total 5 345 4 375 3 149 Contributions Commission (11th EDF) 4 400 3 700 2 500 EIB (10th EDF) 300 70 0 EIB (11th EDF) 0 230 300 Total 4 700 4 000 2 800 *Gross amounts, i.e. no decommitments or recoveries/reflows have been deducted. This approach is in line with that used for the general budget of the Union. 4.Non-binding Estimates of contributions for 2023 - 2024 (EUR million) Forecasts 2023-2024 (*) 2023 2024 Contributions Commission (11th EDF) 1 800 1 500 EIB (11th EDF) 300 300 Total 2 100 1 800 *Art.19 (2) 11th EDF Financial Regulation (EU 2018/1877): indicative, non-binding forecast based on a statistical approach for the expected annual amounts of contributions for the years n + 3 and n + 4. 5.Financial implementation for 2020, forecasts for 2021 and 2022. The updated forecasts are set out in attachments 1 to 3. The year 2020 was marked by the COVID pandemic. The EU adapted its priorities and programmes with partner countries to address the crisis. As a result, the EU response to the pandemic had a positive impact on the commitments and payments in 2020: -the EDF commitments amounted to EUR 5 947 million, which is EUR 1 718 million more than the target of EUR 4 229 million communicated to the Council in October 2020 (140,6 % of the annual target). This surplus is explained mainly by the EU response to the pandemic, which involved the mobilisation of decommitments of old or ongoing projects to fund projects targeting COVID. -the EDF payments amounted to EUR 5 345 million. This represents an execution rate of 107.5% compared to the annual target of EUR 4 974 communicated to the Council in June 2020. In the context of the covid crisis, this target was revised to EUR 5 522 million in October 2020, to account for the increased number of payments to projects fighting the pandemic. The year 2020 was also the last year of commitments, since the sunset clause of the 11th EDF was reached on December 31. Overall, the Commission and the EIB have managed to commit more than 99.8% of the total 11th EDF enveloppe. Attachments 1, 2 and 3 show actuals for 2020 and forecasts of commitments, forecasts of payments and the financial situation compared with previous forecasts for the period 2021-2022, respectively. Attachments 4 and 5 show contributions for 2021 and for 2022 per instalment and per Member State and for the United Kingdom (UK), respectively. Attachment 6 shows the yearly contributions for the period 2021-2024 per Member State and for the UK. Attachment 7 shows the state of reserves of decommitted funds from previous EDFs.





5.1.Attachment 1: Actuals commitments for 2020, and forecasts for 2021 and 2022 (EUR million) 2020 2021 2022 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Regions East and Southern Africa 1 076 1 582 West and Central Africa 782 1 011 Latin America and Caribbean 181 215 Pacific 84 123 Sub-total* 2 123 2 932 Other Human rights, Health, Education 26 1 EU-Africa, African Peace Facility 13 5 EUTF Africa 359 389 Planet and Prosperity 431 286 Resources, Evaluation, process 253 221 DG ECHO, EACEA, DG EAC 61 60 Sub-total* 1 143 962 Total European Commission* 3 267 3 894 0 0 Investment Facility subsidies (**) 162 59 10 0 Total EIB*** 162 59 10 0 TOTAL EC+EIB* 3 429 3 953 10 0 * Due to the rounding effects, the sum of individual rounded amounts shown may differ slightly from the corresponding totals ** Including subsidy for technical assistance and interest rate subsidies from the current EDF and IRS disbursment under previous EDFs 2020 2021 2022 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Investment facility revolving fund*** 800 1994 300 0 *** The commitment under the revolving fund cannot be assimilated to budgetary commitments. It shall be therefore reported separately. 5.2.Attachment 2: Actuals payments for 2020, and forecasts for 2021 and 2022 (EUR million) 2020 2021 2022 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Regions East and Southern Africa 2 266 2 001 1 699 1 755 West and Central Africa 747 684 642 688 Latin America and Caribbean 254 218 191 194 Pacific 160 148 120 119 Sub-total* 3 427 3 050 2 652 2 756 Other Human rights, Health, Education 240 350 101 EU-Africa, African Peace Facility 287 331 215 196 EUTF Africa 668 777 600 311 Planet and Prosperity 138 60 103 320 Resources, Evaluation, process 67 42 50 52 DG ECHO, EACEA, DG EAC 105 67 79 26 Sub-total* 1 506 1 627 1 048 1 007 Total European Commission* 4 934 4 677 3 700 3 763 2 500 2 500 Investment Facility subsidies (**) 38 17 40 40 40 40 Total EIB*** 38 17 40 40 40 40 TOTAL European Commission + EIB* 4 972 4 694 3 740 3 803 2 540 2 540 * Due to the rounding effects, the sum of individual rounded amounts shown may differ slightly from the corresponding totals ** Including subsidy for technical assistance and interest rate subsidies from the current EDF and IRS disbursment under previous EDFs 2020 2021 2022 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Communication October 2020 Communication June 2021 Investment facility revolving fund *** 550 650 500 572 450 609 *** The disbursement under the revolving fund cannot be assimilated to budgetary gross payment. It shall be therefore reported separately. 5.3.Attachment 3: Financial situation for 2020, forecasts for 2021-2022 and non-binding estimations for 2023-2024 (EUR million): Communication October 2020 1 Communication June 2021 1 Commission EIB 6 TOTAL Commission EIB 6 TOTAL Balance at 31/12/2019 4 1 179 379 1 558 1 179 379 1 558 2020 Member States & UK Contributions for 2020: 4 400 300 4 700 4 400 300 4 700 1st instalment 1 800 100 1 900 1 800 100 1 900 2nd instalment 1 600 100 1 700 1 600 100 1 700 3rd instalment 1 000 100 1 100 1 000 100 1 100 Reflows 2 303 303 424 424 Contrib. & Adjust. 2020 received in 2019 - 264 0 - 264 - 264 0 - 264 Recoveries, interest and adjustment 60 60 91 91 Total payments 3 - 4 934 - 588 - 5 522 - 4 678 - 667 - 5 345 Balance at 31/12/2020 4 441 394 835 728 436 1 164 2021 Member States & UK Contributions for 2021: 3 700 300 4 000 3 700 300 4 000 1st instalment 1 600 70 1 670 1 600 70 1 670 2nd instalment 1 200 130 1 330 1 200 130 1 330 3rd instalment 900 100 1 000 900 100 1 000 Reflows 2 390 390 276 276 Recoveries, interest and adjustment 55 55 55 55 Provision for a refund of 8th 9th EDF - 223 - 223 - 223 - 223 Provision for the UK share 7 - 49 - 49 Total payments 3 - 3 700 - 540 - 4 240 - 3 763 - 612 - 4 375 Balance at 31/12/2021 4 225 544 768 497 400 896 2022 Member States & UK Contributions for 2022: 2 500 300 2 800 2 500 300 2 800 Reflows 2 431 289 289 Recoveries, interest and adjustment 50 50 50 Total payments 3 - 2 500 - 490 - 2 500 - 649 - 3 149 Balance at 31/12/2022 4 275 785 1 059 547 340 886 2023 Member States & UK Contributions for 2023 5 1 800 300 2 100 1 800 300 2 100 2024 Member States & UK Contributions for 2024 5 1 500 200 1 700 1 500 300 1 800 1 Funds available for operations as per Communication from the Commission to the Council;

2 Net of write-offs, EIB management fees and other costs such as swaps/hedging; does not include the UK share of reflows, according to art. 153 of the Withdrawal Agreement these shall not be reused. Refer to IF Financial Statements for full details;

3 Including interest rates subsidies under the previous EDFs;

4 Balances do not include: (i) Cofinancings received, (ii) Receipts in bank not yet allocated to a specific EDF line;

5 Art.19(2)(d) 11th EDF Financial Regulation: non-binding forecast based on a statistical approach for the expected annual contributions for the years n + 3 and n + 4;