EN Official Journal of the European Union C 277/1

FINAL ACCOUNTS FOR THE FINANCIAL YEAR 2007 OF THE 7th, 8th AND 9th EUROPEAN DEVELOPMENT FUNDS

(2008/C 277/01)

TABLE OF CONTENTS

1. FINANCIAL STATEMENTS

1.1. European Development Fund

1.2. Financial statements

1.3. Notes to the financial statements

1.4. Off balance sheet items

2. REPORT ON FINANCIAL IMPLEMENTATION

2.1. Allocations at 31.12.2007

2.2. Aggregated accounts

2.3. Situation by country and by instrument

2.4. Other management information

3. FINANCIAL INFORMATION EIB

3.1. Income statement investment facility

3.2. Balance sheet investment facility

3.3. Cash flow statement investment facility

3.4. Statement of changes in equity investment facility

3.5. Notes to the financial statements

4. APPENDIX — Situation by country and by instrument

1. FINANCIAL STATEMENTS

1.1. EUROPEAN DEVELOPMENT FUND

The European Development Fund (EDF) is the main instrument for providing community aid for development cooperation in the African, Caribbean and Pacific (ACP) States and Overseas Countries and Territories (OCTs). The 1957 Treaty of Rome made provision for its creation with a view to granting technical and financial assistance, initially to African countries which at that time were still colonised and with which some Member States had historical links.

Even though a heading has been reserved for the Fund in the Community budget since 1993 following a request by the European Parliament, the EDF does not yet come under the Community's general budget. It is funded by the Member States, is subject to its own financial rules and is managed by a specific committee. The geographic aid granted to ACP States and OCTs will continue to be mainly funded by the EDF for the period 2008-2013.

Each EDF is concluded for a period of around five years. Since the conclusion of the first partnership convention in 1964, the EDF cycles have generally followed the partnership agreement/convention cycles. The present 9th EDF will expire on the entry into force of the 10th EDF during 2008. Council decision 2007/792/EC (1) of 26 November 2007 establishes a transitory period for the prolongation of the 9th EDF from 1st January 2008 until the entry into force of the 10th EDF. Each EDF is governed by its own Financial Regulation which imposes the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the European Commission. These financial statements are also presented in an aggregated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible.

Given the clear division of responsibilities set out in Article 1 of the 9th EDF Financial Regulation (2), the financial statements of the Commission and the European Investment Bank — the entities entrusted with the management of EDF resources — have not been consolidated.

1.1.1. CLOSURE OF THE 6th EDF

Given the state of progress of the 6th EDF, the Authorising Officer decided to close this fund on 31st July 2006. In the absence of a legal basis for the closure of EDFs, the balance remaining was transferred to the 9th EDF according to the provisions of Part 3 of the Financial regulation applicable to the 9th EDF.

1.1.2. PRESENTATION OF ANNUAL ACCOUNTS

The annual accounts for 2007 are presented as follows:

— The financial statements

— The reports on financial implementation

— The financial statements and information supplied by the European Investment Bank (EIB)

1.2. FINANCIAL STATEMENTS

BALANCE SHEET FOR THE 7th, 8th AND 9th EDF

(EUR million) Notes 31.12.2007 31.12.2006 CURRENT ASSETS Receivables 1 8,50 216,83 Net Pre-financing 2 955,52 2 808,88 Other current assets 3 – 2,65 0,95 Cash and cash equivalents 388,22 291,50 STABEX security accounts 5 99,61 191,60 RD Congo special fund 6 3,36 3,42 Cash at bank 7 285,24 96,48 Total assets 1 349,58 3 318,17 CURRENT LIABILITIES Payables 8 703,98 2 095,86 Total liabilities 703,98 2 095,86 Net assets 645,60 1 222,31 FUNDS & RESERVES Called fund capital 9 25 019,17 29 900,00 Results carried forward from previous years – 22 410,59 – 26 787,49 Result for the year – 3 255,88 – 2 924,04 Reserves 10 1 292,89 1 033,84 Net assets 645,60 1 222,31





ECONOMIC OUTTURN ACCOUNT FOR THE 7th, 8th AND 9th EDF

(EUR million) Notes Cash basis expenditure 2007 Accrual adjustments Accrual basis expenditure 2007 Accrual basis expenditure 2006 Operating interest 1.1 0,02 0,02 0,06 OPERATING REVENUE (1) 0,02 0,02 0,06 Programmable aid 495,57 141,96 637,53 749,57 Macro-economic support 421,36 5,23 426,59 407,82 Sectoral policy 1 211,70 – 62,84 1 148,85 911,24 Intra ACP Projects 277,97 103,69 381,66 339,36 Interest-rate subsidies 0,95 0,95 1,20 Emergency aid 153,00 1,80 154,81 130,12 Refugee aid 1,31 – 6,89 – 5,58 6,68 Risk Capital 57,81 57,81 63,11 STABEX 98,37 98,37 189,52 Sysmin 23,36 8,22 31,58 29,80 Transfers from former EDFs 6,18 – 1,36 4,82 15,16 Structural adjustment 0,02 – 6,31 – 6,30 0,89 Debt relief -HIPC and World Bank – 12,62 192,49 179,87 17,42 Institutional Support 42,40 – 11,99 30,41 32,34 Compensation export receipts 57,63 26,28 83,91 52,82 R.D. Congo Fund 0,19 17,06 17,25 – 13,39 Operating expenses 2 835,19 407,33 3 242,52 2 933,67 Administrative and financial expenses 11 38,78 – 7,10 31,68 23,79 Total Expenses (cash basis) 12 2 873,97 Accrual adjustments 13 399,89 – 0,34 – 0,14 TOTAL EXPENSES/Accrual basis (2) 14 3 273,86 3 273,86 2 957,31 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) 3 273,83 3 273,83 2 957,26 Financial revenue 15 18,65 18,65 31,61 Financial expenses 16 – 0,34 – 0,34 – 0,14 Impairment of receivables 1.6 – 0,35 – 0,35 1,75 Surplus/(deficit) from financial activities (3) 17,96 17,96 33,22 ECONOMIC RESULT (1-2+3) – 3 255,88 – 3 255,88 – 2 924,04 (3)





CASH FLOW STATEMENT FOR THE 7th, 8th AND 9th EDF

(EUR million) Notes 31.12.2007 31.12.2006 Economic result – 3 255,88 – 2 924,04 Impairment of receivables 1.6 0,35 – 1,75 Financial revenue adjustment 15 – 0,11 0,07 Operational revenue adjustment 1.1 2,88 0,04 Accrual adjustments 13 399,89 195,39 Financial expenses 16 0,34 0,14 Bank charges to be refund 1 0,02 – 0,04 Decrease in advances for study grants and other current assets 3 & 2.2 3,81 2,73 Cash flows from operating activities – 2 848,69 – 2 727,46 Contributions from member states 2 886,76 2 525,82 Cash flows from financing activities 2 886,76 2 525,82 Net increase/decrease in cash and cash equivalents 38,07 – 201,64 Treasury balance at beginning of period 7 96,48 270,55 Stabex security accounts at beginning of period 5 191,60 371,88 Congo Account 6 3,42 19,67 SWIFT Account 8.2 49,73 – 119,23 Cash and cash equivalent at beginning of period 341,23 542,87 Treasury balance at end of period 7 285,24 96,48 Stabex security accounts at end of period 5 99,61 191,60 Congo Account 6 3,36 3,42 SWIFT Account 8.2 – 8,92 49,73 Cash and cash equivalent at end of period 379,30 341,23





STATEMENT OF CHANGES IN NET ASSETS FOR THE 7th, 8th AND 9th EDF

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Net Assets (a) (b) (c)=(a)–(b) (e) (d) (h)=(e)+(d)+(c) Notes 9 9 9 10 Closing balance 2005 42 877,15 15 487,15 27 390,00 – 26 787,49 1 033,84 1 636,35 Contributions – 2 510,00 2 510,00 2 510,00 Capital increase 122,00 122,00 Transfers from former EDF Economic result – 2 924,04 – 2 924,04 Closing balance 2006 42 999,15 13 099,15 29 900,00 – 29 711,53 1 033,84 1 222,31 Contributions – 2 640,00 2 640,00 2 640,00 Capital increase 40,17 1,00 39,17 39,17 Transfers from former EDF Economic result – 3 255,88 – 3 255,88 Closure of 6th EDF – 7 560,00 – 7 560,00 7 300,94 259,06 0,00 Closing balance 2007 35 479,32 10 460,15 25 019,17 – 25 666,46 1 292,89 645,60





7th EDF BALANCE SHEET

(EUR million) Notes 31.12.2007 31.12.2006 CURRENT ASSETS Receivables 1 2,12 17,06 Net Pre-financing 2 75,36 203,75 Other current assets 3 Liaison accounts 4 2 279,31 2 279,31 Cash and cash equivalents STABEX security accounts 5 RD Congo special fund 6 Cash at bank 7 Total assets 2 356,78 2 500,12 CURRENT LIABILITIES Payables 8 19,59 92,62 Liaison accounts 4 2 037,08 1 868,50 Total liabilities 2 056,67 1 961,12 Net assets 300,11 539,00 FUNDS & RESERVES Called fund capital 9 10 940,00 10 940,00 Results carried forward from previous years – 9 715,19 – 9 527,36 Result for the year – 166,97 – 187,83 Reserves 10 – 757,73 – 685,81 Net assets 300,11 539,00





7th EDF ECONOMIC OUTTURN ACCOUNT

(EUR million) Notes Cash basis expenditure 2007 Accrual adjustments Accrual basis expenditure 2007 Accrual basis expenditure 2006 Operating interest 1.1 OPERATING REVENUE (1) Programmable aid 63,04 61,52 124,56 105,55 Macro-economic support Sectoral policy Intra ACP Projects 8,67 Interest-rate subsidies – 0,49 – 0,49 – 0,01 Emergency aid 0,00 0,28 0,28 – 0,21 Refugee aid 0,28 0,28 – 0,66 Risk Capital 5,28 5,28 5,46 STABEX 8,23 8,23 51,71 Sysmin 20,21 6,80 27,01 16,59 Transfers from former EDFs 0,39 3,17 3,56 0,46 Structural adjustment – 6,62 – 6,62 0,03 Debt relief -HIPC and World Bank 4,96 4,96 0,06 Institutional Support Compensation export receipts R.D. Congo Fund Operating expenses 96,66 70,39 167,05 187,66 Administrative and financial expenses 11 Total Expenses (cash basis) 12 96,66 Accrual adjustments 13 70,39 TOTAL EXPENSES/Accrual basis (2) 14 167,05 167,05 187,66 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) 167,05 167,05 187,66 Financial revenue 15 Financial expenses 16 Impairment of receivables 1.6 0,08 0,08 – 0,18 Surplus/(deficit) from financial activities (3) 0,08 0,08 – 0,18 ECONOMIC RESULT (1-2+3) – 166,97 – 166,97 – 187,83





STATEMENT OF CHANGES IN NET ASSETS FOR THE 7th EDF

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Net Assets (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 9 9 9 10 Closing balance 2005 10 940,00 0,00 10 940,00 – 9 527,36 – 559,14 853,50 Contributions Capital increase Transfers to 9th EDF – 126,67 – 126,67 Economic result – 187,83 – 187,83 Closing balance 2006 10 940,00 0,00 10 940,00 – 9 715,19 – 685,81 539,00 Contributions Capital increase Transfers to 9th FED – 71,91 – 71,91 Economic result – 166,97 – 166,97 Closing balance 2007 10 940,00 0,00 10 940,00 – 9882,16 – 757,73 300,11





8th EDF BALANCE SHEET

(EUR million) Notes 31.12.2007 31.12.2006 CURRENT ASSETS Receivables 1 2,64 70,61 Net Pre-financing 2 126,98 888,93 Other current assets 3 Liaison accounts 4 3 301,13 2 450,58 Cash and cash equivalents STABEX security accounts 5 RD Congo special fund 6 Cash at bank 7 Total assets 3 430,74 3 410,12 CURRENT LIABILITIES Payables 8 124,35 651,73 Liaison accounts 4 2 065,45 2 065,45 Total liabilities 2 189,80 2 717,19 Net assets 1 240,94 692,93 FUNDS & RESERVES Called fund capital 9 12 840,00 11 295,00 Results carried forward from previous years – 8 724,21 – 7 851,95 Result for the year – 779,79 – 872,26 Reserves 10 – 2 095,06 – 1 877,85 Net assets 1 240,94 692,93





8th EDF ECONOMIC OUTTURN ACCOUNT

(EUR million) Notes Cash basis expenditure 2007 Accrual adjustments Accrual basis expenditure 2007 Accrual basis expenditure 2006 Operating interest 1.1 OPERATING REVENUE (1) Programmable aid 298,39 95,13 393,52 575,43 Macro-economic support 1,73 1,06 2,79 13,07 Sectoral policy 18,83 2,12 20,95 23,21 Intra ACP Projects Interest-rate subsidies 1,45 1,45 1,21 Emergency aid – 0,15 – 0,15 0,98 Refugee aid 1,31 – 7,17 – 5,86 7,29 Risk Capital 52,52 52,52 57,65 STABEX 90,14 90,14 137,80 Sysmin 3,15 1,42 4,57 13,17 Transfers from former EDFs Structural adjustment 0,02 0,31 0,32 0,86 Debt relief -HIPC and World Bank – 14,22 187,53 173,31 15,36 Institutional Support Compensation export receipts 29,51 19,98 49,49 30,80 R.D. Congo Fund Operating expenses 482,67 300,37 783,04 876,83 Administrative and financial expenses 11 0,75 1,20 1,95 4,64 Total Expenses (cash basis) 12 483,42 Accrual adjustments 13 301,57 TOTAL EXPENSES/Accrual basis (2) 14 784,99 784,99 881,47 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) 784,99 784,99 881,47 Financial revenue 15 6,18 6,18 9,13 Financial expenses 16 Impairment of receivables 1.6 – 0,97 – 0,97 0,08 Surplus/(deficit) from financial activities (3) 5,20 5,20 9,20 ECONOMIC RESULT (1-2+3) – 779,79 – 779,79 – 872,26





STATEMENT OF CHANGES IN NET ASSETS FOR THE 8th EDF

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Net Assets (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 9 9 9 10 Closing balance 2005 12 840,00 4 055,00 8 785,00 – 7 851,95 – 1 603,43 – 670,38 Contributions – 2 510,00 2 510,00 2 510,00 Capital increase Transfers to 9th EDF – 274,42 – 274,42 Economic result – 872,26 – 872,26 Closing balance 2006 12 840,00 1 545,00 11 295,00 – 8 724,21 – 1 877,85 692,93 Contributions – 1 545,00 1 545,00 1 545,00 Capital increase Transfers to 9th EDF – 217,21 – 217,21 Economic result – 779,79 – 779,79 Closing balance 2007 12 840,00 0,00 12 840,00 – 9 504,00 – 2 095,06 1 240,94





9th EDF BALANCE SHEET

(EUR million) Notes 31.12.2007 31.12.2006 CURRENT ASSETS Receivables 1 3,75 129,17 Net Pre-financing 2 753,18 1 716,20 Other current assets 3 – 2,65 0,95 Liaison accounts 4 2 037,08 1 868,50 Cash and cash equivalents 388,22 291,50 STABEX security accounts 5 99,61 191,60 RD Congo special fund 6 3,36 3,42 Cash at bank 7 285,24 96,48 Total assets 3 179,57 4 006,32 CURRENT LIABILITIES Payables 8 560,05 1 351,51 Liaison accounts 4 3 514,98 2 664,43 Total liabilities 4 075,03 4 015,94 Net assets – 895,45 – 9,62 FUNDS & RESERVES Called fund capital 9 1 239,17 105,00 Results carried forward from previous years – 3 971,18 – 2 117,60 Result for the year – 2 309,12 – 1 853,59 Reserves 10 4 145,68 3 856,56 Net assets – 895,45 – 9,62





9th EDF ECONOMIC OUTTURN ACCOUNT

(EUR million) Notes Cash basis expenditure 2007 Accrual adjustments Accrual basis expenditure 2007 Accrual basis expenditure 2006 Operating interest 1.1 0,02 0,02 0,06 OPERATING REVENUE (1) 0,02 0,02 0,06 Programmable aid 134,14 – 14,69 119,44 56,78 Macro-economic support 419,63 4,17 423,80 394,75 Sectoral policy 1 192,87 – 64,96 1 127,91 888,03 Intra ACP Projects 277,97 103,69 381,66 328,96 Interest-rate subsidies Emergency aid 153,16 1,52 154,68 129,35 Refugee aid Risk Capital STABEX Sysmin Transfers from former EDFs 5,79 – 4,53 1,26 14,49 Structural adjustment Debt relief -HIPC and World Bank 1,60 1,60 2,00 Institutional Support 42,40 – 11,99 30,41 32,34 Compensation export receipts 28,12 6,30 34,42 22,02 R.D. Congo Fund 0,19 17,06 17,25 – 13,39 Operating expenses 2 255,86 36,58 2 292,43 1 855,34 Administrative and financial expenses 11 38,03 – 8,30 29,73 19,15 Total Expenses (cash basis) 12 2 293,89 Accrual adjustments 13 27,93 – 0,34 – 0,14 TOTAL EXPENSES/Accrual basis (2) 14 2 321,82 2 321,82 1 874,34 SURPLUS/(DEFICIT) FROM OPERATING ACTIVITIES (2-1) 2 321,80 2 321,80 1 874,29 Financial revenue 15 12,47 12,47 22,49 Financial expenses 16 – 0,34 – 0,34 – 0,14 Impairment of receivables 1.6 0,54 0,54 – 1,65 Surplus/(deficit) from financial activities (3) 12,67 12,67 20,70 ECONOMIC RESULT (1-2+3) – 2 309,12 – 2 309,12 – 1 853,59





STATEMENT OF CHANGES IN NET ASSETS FOR THE 9th EDF

(EUR million) Fund Capital Uncalled Funds Called funds capital Cumulative reserves Reserves Total Net Assets (a) (b) (c)=(a)-(b) (e) (d) (h)=(e)+(d)+(c) Notes 9 9 9 10 Closing balance 2005 11 537,15 11 432,15 105,00 – 2 117,60 3 379,41 1 366,81 Contributions Capital increase 122,00 122,00 Transfers from other EDF 477,15 477,15 Economic result – 1 853,59 – 1 853,59 Closing balance 2006 11 659,15 11 554,15 105,00 – 3 971,18 3 856,56 – 9,62 Contributions – 1 095,00 1 095,00 1 095,00 Capital increase 40,17 1,00 39,17 39,17 Transfers from other EDF 289,12 289,12 Economic result – 2 309,12 – 2 309,12 Closing balance 2007 11 699,32 10 460,15 1 239,17 – 6 280,30 4 145,68 – 895,45

1.3. NOTES TO THE FINANCIAL STATEMENTS

1.3.1. ACCOUNTING POLICIES

1.3.1.1. Legal provisions and the financial regulation

The financial statements were drawn up in accordance with the Financial Regulation applicable to the 9th European Development Fund (4) (EDF).

The relevant documents must be presented to the Court of Auditors as provided for in Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF (5), Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF (6) and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF. Article 102 (9th EDF) stipulates that the Commission shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 103). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal by 31 October together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management.

In accordance with the provisions of article 99 of the 9th EDF Financial Regulation, financial statements are prepared in respect of the principle of accrual based accounting.

The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer.

These financial statements have been drafted in conformity with accounting rules and methods for the EDF drawn up on the basis of International Public Sector Accounting Standards (IPSAS) or by default, International Financial Reporting Standards (IFRS) as respectively issued by the International Public Sector Accounting Standard Board (IPSASB) and International Accounting Standard Board (IASB). The rules of valuation and accounting methods adopted by the Accounting Officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management.

1.3.1.2. Accounting principles

The objectives of financial statements are to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users. For a public sector entity, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it.

If they are to present a true and fair view, financial statements must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but do so in a clear and comprehensible manner which allows comparisons between financial years. It is with these goals in mind that the present document has been drawn up.

The accounting system of the European Development Fund comprises general accounts and financial accounts. Both sets of accounts are kept in euro on the basis of the calendar year. The general accounts allow for the preparation of the financial statements as they show all charges and incomes for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The financial accounts give a detailed picture of the use of EDF resources. They are based on the cash accounting principle.

Article 98 of the 9th EDF Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements, as follows:

— going concern basis;

— prudence;

— consistent accounting methods;

— comparability of information;

— materiality;

— no netting;

— reality over appearance, and

— accrual-based accounting.

1.3.1.3. Currency and basis for conversion

The financial statements are presented in millions of euros, which is the European Communities' functional and reporting currency. Values in the tables may not add up, due to rounding.

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the underlying transactions.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December:

EURO Exchange Rate 31.12.2007 31.12.2006 GBP 0,7148 GBP 0,6743

1.3.2. BALANCE SHEET

1.3.2.1. Receivables

Receivables are carried at original amount less write-down for impairment. A write-down for impairment of receivables is established when there is objective evidence that the EDF will not be able to collect all amounts due according to the original terms of the receivables. The amount of the write-down is the difference between the asset's carrying amount and the recoverable amount, being the present value of expected future cash flows, discounted at the market rate of interest for similar borrowers. The amount for write-down is recognised in the economic outturn account. Also recognised is a general write-down in value of 20 % per year for outstanding recovery orders not already subject to a specific write-down.

1.3.2.2. Pre-financing amounts

Pre-financing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular pre-financing agreement. The float or advance is repaid or used for the purpose for which it was provided during the period defined in the agreement. If the beneficiary does not incur sufficient eligible expenditure, he has the obligation to return, in whole or in part, the pre-financing advance to the European Development Fund. The amount of the pre-financing is reduced (wholly or partially) by the acceptance of eligible costs and amounts returned.

At year-end outstanding pre-financing amounts are valued at the original amount(s) paid to the beneficiary less: any amounts returned, eligible amounts cleared and the estimated eligible amounts not yet cleared at year-end (see note 2.3).

Guarantees related to pre-financing amounts are disclosed as contingent assets (see point 1.4) and as such they are not accounted for in the financial statements (IPSAS 19).

1.3.2.3. Cash & cash equivalents

Cash and cash equivalents include accounts held with financial institutions in the ACP states and the OCTs, and with financial institutions in the Member States.

For the purpose of the cash flow statement, cash and cash equivalents include the current account with the general budget of the EU presented under accounts payable in the balance sheet (see note 8).

1.3.2.4. Payables

A significant amount of payables of the EDF are not related to the purchase of good or services — instead they are unpaid cost claims from beneficiaries of grants or other funding. They are recorded as payables for the requested amount when the cost claim/request for payment is received and, after verification, accepted as eligible by the relevant financial agents. At this stage they are valued at the accepted and eligible amount.

The EDF has current liabilities for amounts already due to beneficiaries for which no invoices were received at the reporting date. The recognition criteria foresee that a charge is recognised by the EDF for the amount of the estimated payment due for the period, that is to say the portion of the incurred eligible expenses due to the beneficiaries at the reporting date. Material amounts are recognised as an accrued expense (accrued expenditure) on the basis of estimates (e.g. the degree of execution of contracts) provided by the Authorising Officer.

1.3.3. ECONOMIC OUTTURN ACCOUNT

1.3.3.1. Revenue

The only source of income for the funds is derived from interest generated on various cash balances held with commercial Banks (see notes to the accounts) or on late payment of entitlements to the EDF.

1.3.3.2. Expenditure

Expenditure should be recognised in the EDF financial statements as expenditure of the period that the events giving rise to a payment occurred, as long as:

— A contract has been signed which authorises the payment;

— Eligibility criteria, if any, have been met by the beneficiary; and,

— A reasonable estimate of the amount due can be made based on, for example, invoices sent by the beneficiary, degree of execution of contracts etc..

As expenditure incurred by Commission Delegations is not finally entered into the EDF accounts until it has been validated by both the Authorising Officer and the Accounting Officer, any expenditure which was not validated at year end is shown under the heading of ‘unallocated expenses’ on the balance sheet (see table 3).

Cash basis expenditure includes all payment orders executed by the banks up to 31 December 2007.

In order to comply with accrual accounting principles the cash basis expenditure provided by the present IT accounting system (OLAS) has been adjusted with the additional information provided by the Authorising Officer about pre-financing and accrued expenditure.

1.3.4. CONTINGENT ASSETS AND LIABILITIES

1.3.4.1. Contingent assets

A contingent asset is a possible asset that arises from past events and of which the existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the European Communities. A contingent asset is disclosed when an inflow of economic benefits or service potential is probable.

Contingent assets are assessed continually to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits or service potential will arise and the asset's value can be measured reliably, the asset and the related revenue are recognised in the financial statements of the period in which the change occurs.

1.3.4.2. Guarantees

Guarantees are possible assets or obligations that arise from past events and whose existence will be confirmed by the occurrence or non-occurrence of the object of the guarantee. Guarantees thus qualify as contingent assets or liabilities. A guarantee is settled when the object of the guarantee no longer exists. It is crystallised when the conditions are fulfilled for calling a payment from the guarantor.

1.3.5. RECORDING OF OPERATIONS

Entitlements due from the Member States (mainly contributions which have not yet been called or interest due on the late payment of called funds) must be entered in the accounts. These items are set out in the balance sheets for the various EDFs.

In accordance with the principles of accrual-based accounting, the financial statements show the financial charges and income for the financial year regardless of the date of payment or collection.

1.3.6. USE OF ESTIMATES

In accordance with generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management based on the most reliable information available. Significant estimates include, but are not limited to, provisions for future charges, financial risk on accounts receivable, accrued income and charges. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known.

1.3.7. NOTES TO THE BALANCE SHEET

(1) RECEIVABLES

Table 1

(EUR million) Receivables Notes 7th 8th 9th Total at 31.12.2007 Total at 31.12.2006 Contributions to be received 0,00 0,00 Interest receivable on late contributions 1.1 0,00 2,09 Interest receivable on late contributions — STABEX 1.1 0,00 0,79 Interest receivable — European banks 1.2 1,19 1,19 0,88 Interest receivable — STABEX security 1.3 0,41 0,41 0,61 Banks charges to be refund 0,00 0,02 Recovery orders to be issued (2006) 1.4 0,00 196,58 Open recovery orders 1.5 4,90 3,72 3,25 11,88 20,48 – Impairment of receivables 1.6 – 2,79 – 1,09 – 1,10 – 4,98 – 4,63 Total 2,12 2,64 3,75 8,50 216,83

In accordance with the provisions of the Cotonou Agreement, interest income relates to the 9th EDF. Such funds can be used according to the provisions of articles 1.3, 4 and 9 of the Internal Agreement applicable to 9th EDF (see note 11). The sole exception is the interest earned in STABEX security accounts which relates to the 8th EDF as this aid instrument does not feature in the 9th EDF (see notes 5 and 15).

(1.1) Interest receivable on late contributions

In accordance with Article 40(4) of the 9th EDF Financial Regulation, interest is charged to the Member States in the event of late payment of the called-up contributions. This interest results in an effective increase in the Funds' overall appropriations and represents its only source of operating revenue (see economic outturn account).

Table 1.1

(EUR million) Interest on late payment of EDF contributions Balance at 31.12.2006 Late interest revenue 2007 Interest received 2007 Balance at 31.12.2007 France 1,00 – 1,00 0,00 Netherlands 0,02 – 0,02 0,00 Spain 0,06 0,00 – 0,06 0,00 United Kingdom 1,02 – 1,02 0,00 Total 2,09 0,02 – 2,11 0,00

(1.2) Interest receivable European banks

This amount represents interest earned on the European bank accounts and the STABEX current account during the financial year 2007, for which the payment will be received in 2008.

(1.3) Interest receivable STABEX security accounts

This amount represents interest earned on the STABEX security accounts during the financial year 2007, for which the payment will be received in 2008. This interest is the property of the relevant beneficiary countries.

(1.4) Recovery orders to be issued

For the first time in 2007 and to improve transparency, recovery orders to be issued against prefinancing paid are not presented as receivables but instead they are classified as prefinancing. To allow comparison with previous years, the estimations calculated by the Authorising Officer are presented in the table below (see also note 2).

Table 1.4

(EUR million) Recovery orders to be issued 7th EDF 8th EDF 9th EDF TOTAL Total at 31.12.2007 9,90 24,95 144,97 179,82 Total at 31.12.2006 14,54 62,38 119,67 196,58 Increase (Decrease) – 4,64 – 37,42 25,30 – 16,76

(1.5) Open recovery orders

The closing balance for recovery orders represents the value of recovery orders issued but unpaid at the year end.

(1.6) Impairment of receivables

In compliance with IPSAS 19, the Accounting Officer has established a provision for doubtful debts based on two variables:

— Age of the debt, applying a provision of 20 % of the euro value for each year the debt is outstanding

— The evaluation of the non recovery risk, in collaboration with the Authorising Officer.

Potential exchange rate losses (on recovery orders not issued in euro) are not taken into account for this calculation, as these are not considered to be material.

Table 1.6

(EUR million) Impairment of receivables 7th EDF 8th EDF 9th EDF Total Balance at 31.12.2007 2,79 1,09 1,10 4,98 Balance at 31.12.2006 2,87 0,11 1,65 4,63 Increase (Decrease) – 0,08 0,97 – 0,54 0,35

(2) NET PRE-FINANCING

Following the principles of accrual accounting, advance payments made by the EDF are classified as assets. The figures for open pre-financing have been provided by the Authorising Officer (see table 2.1). The pre-financing is presented net of the open recovery orders concerning advances and the estimated amounts not yet cleared at year end.

To improve transparency, and for the first time in 2007, prefinancing is not netted of recovery orders to be issued (see note 1.4). This reclassification has no impact in the net assets of the funds.

Table 2

(EUR million) Net pre-financing Notes 7th EDF 8th EDF 9th EDF Total 31.12.2007 Total 31.12.2006 Pre-financing (gross) 2.1 152,34 383,89 2 230,29 2 766,52 3 024,37 Advances for study grants management 2.2 1,38 1,38 1,58 — Estimated clearing of Prefinancing 2.3 – 72,08 – 253,19 – 1 475,24 – 1 800,51 — Open recovery orders 1.5 – 4,90 – 3,72 – 3,25 – 11,88 – 20,48 — Recovery orders to be issued (2006) 1.4 0,00 – 196,58 Total 75,36 126,98 753,18 955,52 2 808,88

(2.1) Pre-financing(gross)

Many contracts provide for payments of advances before the commencement of works, deliveries of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments on account on the basis of progress reports. Advances, which normally are paid in the currency of the country or territory where the project is executed, are kept separate in the accounts of the Authorising Officer to allow them to be cleared.

The table below summarises outstanding advances (except for structural adjustment programmes and direct budgetary support programmes) registered in the Authorising Officer's accounts at the end of the year. Conversion into EUR is made using the official exchange rate of December 31 (see point 1.3.1.3).

Table 2.1

(EUR million) Pre-financing (gross) 7th EDF 8th EDF 9th EDF Total Total at 31.12.2007 152,34 383,89 2 230,29 2 766,52 Total at 31.12.2006 223,67 959,66 1 841,04 3 024,37 Increase (Decrease) – 71,34 – 575,76 389,26 – 257,84

(2.2) Advances for study grants management

This amount corresponds to advances paid to external bodies for the management of study awards.

(2.3) Estimated clearing of prefinancing

This amount represents the accrued charges calculated by the Authorising Officer corresponding to the amount of eligible costs that were incurred by the beneficiaries of the outstanding prefinancing at year end, but not yet reported. These amounts are treated as expenditure in the Economic Outturn Account and have been reclassified from accounts payables to prefinancing for the first time in 2007. This reclassification has no impact on the aggregated net assets and therefore the opening balance has not been restated.

For information purposes, the impact of the reclassification on the 2006 aggregated current assets and liabilities is detailed below.

(EUR million) Notes As presented in 2006 final accounts Reclassification Adjusted balance 31.12.2006 CURRENT ASSETS Receivables 1 216,83 216,83 Net Pre-financing 2 2 808,88 – 1 789,36 1 019,53 Other current assets 3 0,95 0,95 Cash and cash equivalents 291,50 291,50 STABEX security accounts 5 191,60 191,60 RD Congo special fund 6 3,42 3,42 Cash at bank 7 96,48 96,48 Total assets 3 318,17 – 1 789,36 1 528,81 CURRENT LIABILITIES Payables 8 2 095,86 – 1 789,36 306,50 Total liabilities 2 095,86 – 1 789,36 306,50 Net assets 1 222,31 0,00 1 222,31

(3) OTHER CURRENT ASSETS

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects and economic outturn account.

Table 3

(EUR million) Other current assets 9th EDF Total at 31.12.2007 Total at 31.12.2006 Unallocated expenses 1,19 1,19 2,65 Devaluation 0,00 0,00 0,00 Unallocated revenue – 4,55 – 4,55 – 2,12 Partial off-settings 0,70 0,70 0,42 Total – 2,65 – 2,65 0,95

(4) LIAISON ACCOUNTS

For reasons of efficiency, there is a single treasury for all the EDFs being implemented; this leads to operations between the various EDFs, which are balanced out in the liaison accounts between the various balance sheets.

Table 4

(EUR million) Liaison accounts 7th EDF 8th EDF 9th EDF Total at 31.12.2007 Total at 31.12.2006 To/from 6th EDF 2 279,31 – 2 065,45 – 213,85 0,00 To/from 7th EDF 2 037,08 2 037,08 – 410,80 To/from 8th EDF – 3 301,13 – 3 301,13 – 385,12 To/from 9th EDF – 2 037,08 3 301,13 1 264,05 795,93 242,23 1 235,68 – 1 477,91 0,00 0,00





Table 4.1

(EUR million) Liaison accounts 7th EDF 8th EDF 9th EDF Total 2007 Assets 2 279,31 3 301,13 2 037,08 7 617,51 Liabilities 2 037,08 2 065,45 3 514,98 7 617,51 Total 2007 242,23 1 235,68 – 1 477,91 0,00 2006 Assets 2 279,31 2 450,58 1 868,50 6 598,39 Liabilities 1 868,50 2 065,45 2 664,43 6 598,39 Total 2006 410,80 385,12 – 795,93 0,00

(5) STABEX SECURITY ACCOUNTS

The STABEX is the acronym for a European Commission compensatory finance scheme to stabilise export earnings of the ACP countries. It was first introduced in the first Lomé Convention (1975) with the purpose of remedying the harmful effects of the instability of export revenue from agricultural products.

The balance on the STABEX security accounts represents the total of STABEX funds available and which will be transferred to the relevant beneficiary ACP State at a future date. This total amount concerns the 8th EDF, with the exception of EUR 2,51 million allocated to Sudan, which fell under the 7th EDF.

Table 5

(EUR million) STABEX security accounts EDF Balance at 31.12.2006 Interest Payments Balance at 31.12.2007 BENIN 8th 0,05 0,00 0,05 BURKINA FASO 8th 0,78 0,01 0,78 0,01 BURUNDI 7th/8th 26,62 1,05 26,99 0,68 CAMEROUN 8th 5,52 0,04 5,54 0,02 COMOROS 8th 0,06 0,00 0,06 DOMINICA 8th 0,26 0,01 0,19 0,08 ETHIOPIA 8th 0,93 0,04 0,96 GAMBIA 8th 1,03 0,04 1,07 GRENADA 8th 0,34 0,01 0,35 GUINEA-BISSAU 8th 0,34 0,01 0,35 COTE D'IVOIRE 8th 15,85 0,44 14,73 1,57 JAMAICA 8th 0,60 0,02 0,62 MADAGASCAR 8th 0,65 0,03 0,68 MALAWI 8th 0,94 0,04 0,97 MAURITANIA 8th 18,22 0,72 18,56 0,38 PAPUA-NEW GUINEA 8th 0,68 0,03 0,70 RWANDA 8th 5,89 0,23 6,12 SENEGAL 8th 10,33 0,41 10,74 SIERRA LEONE 8th 3,13 0,12 3,19 0,07 SAINT LUCIA 8th 14,05 0,56 14,60 SOLOMON ISLANDS 8th 0,08 0,00 0,08 0,00 SUDAN 7th/8th 54,52 1,94 7,83 48,62 ST VINCENT & GRENADINES 8th 4,05 0,16 4,21 TANZANIA 8th 14,00 0,26 10,70 3,56 TONGA 8th 0,09 0,00 0,09 UGANDA 8th 9,72 0,07 9,78 0,00 ZIMBABWE 8th 2,90 0,11 3,01 Total STABEX 191,60 6,38 98,37 99,61

In addition to these funds, there are other STABEX funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State have reached agreement on how the STABEX funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé IV Agreement (7) (as revised), the funds are transferred into an interest bearing double signature account (Commission official and Beneficiary State) opened in the name of the ACP State. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended.

As these funds are the property of the ACP State, they are not recorded as assets in the EDF Annual Accounts and the transfers to these accounts are recorded as STABEX payments. Details on these accounts are however provided in the annual EDF Financial Management Report (8).

(6) SPECIAL D.R. CONGO ACCOUNT

This balance represents the amounts available for D.R. Congo in accordance with the provisions of Council Decision 2003/583/EC (9).

(7) CASH AT BANKS

In accordance with Article 129 of the 9th EDF Financial Regulation the treasury is presented in the balance sheet of the 9th EDF.

Table 7

(EUR million) Cash and cash equivalents Notes Balance at 31.12.2007 Balance at 31.12.2006 Treasury accounts 7.1 208,09 3,55 Local Paying Agents 7.2 54,67 59,37 European Paying Agents 7.3 13,06 21,29 STABEX current account 7.4 8,47 12,17 Cash in transit 7.5 0,95 0,10 Total 285,24 96,48

(7.1) Treasury accounts

These are accounts held with the central banks of the Member States into which EDF contributions are paid. The Accounting Officer makes transfers from these accounts to the European paying agents.

(7.2) Local paying agents

These are amounts held in bank accounts within ACP States and OCTs used for making payments in local currency within the beneficiary state. The accounts are generally kept in euros, but may also be kept in a currency of a Community Member State.

(7.3) European paying agents

These accounts are held with commercial banks established in the EU-15 Member States and with the EIB. The accounts are kept in euros and are used for payments to beneficiaries within the Union and elsewhere. Payments are generally made in euros, but may also be made in other currencies. These funds are also used to replenish local paying agent accounts and the liaison account with the General Budget of the EU.

(7.4) STABEX current account

This amount represents the cash balance remaining on the STABEX main account which will be made available for Togo by way of transfer to a security account, once instructions have been received from the Authorising Officer. The decrease of EUR 3,70 million compared to 2006 represents the transfer to the EDF main account (allocation to the general long term development reserve) in the course of 2007 following the instructions from the Authorising Officer.

The interest earned in this account is periodically transferred to the EDF main account to be used in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF.

(7.5) Cash in transit

Some replenishment sent before the year end were only registered by the beneficiary bank in 2008.

(8) PAYABLES

Table 8

(EUR million) Payables Notes 7th EDF 8th EDF 9th EDF Total at 31.12.2007 Total at 31.12.2006 Deferred income 8,1 211,08 211,08 3,49 Liaison a/c with General Budget of the EU 8,2 8,92 8,92 – 49,73 Accrued Expenses 19,59 124,35 340,04 483,98 2 142,10 Non finalised payments 8,3 4,22 15,85 62,04 82,11 110,29 Eligibility to be confirmed 8,4 3,76 30,00 81,19 114,96 107,19 Invoices to be received 8,5 83,69 331,69 1 672,04 2 087,42 1 924,62 — Estimated clearing of prefinancing 2,3 – 72,08 – 253,19 – 1 475,24 – 1 800,51 0,00 Total 19,59 124,35 560,05 703,98 2 095,86

(8.1) Deferred income

Table 8.1

(EUR million) Contributions received in advance Balance at 31.12.2007 Balance at 31.12.2006 Ireland 1,00 3,49 United Kingdom 208,09 Finland 2,00 Total 211,08 3,49

(8.2) Liaison account with the General Budget of the EU

As from the beginning of financial year 2005, payments to beneficiaries within the Union are executed through SWIFT by the General Budget of the European Union. For this purpose, a current account has been opened. This account is presented in the cash flow statement as cash equivalent.

Accrued expenses

The accounting information provided by the present IT accounting system (OLAS) has been adjusted in order to provide figures which comply with accrual accounting principles. Additional information has been provided by the Authorising Officer. This item includes non finalised payments, eligibility to be confirmed and an estimation of invoices to be received based in the degree of advancement of projects.

In 2007 the methodology for the determination of the accrued expenditure has been refined to incorporate to the analysis the type of contract.

The estimated amount of eligible costs incurred by the beneficiaries of outstanding prefinancing amounts but not yet reported at year is now classified under prefinancing (see note 2.3).

(8.3) Non finalised payments

These are payments authorised before 31 December 2007 but executed by the bank in 2008. The amounts registered in the accounts of the Authorising Officer are shown in table 8.3.

Table 8.3

(EUR million) Non finalised payments 7th EDF 8th EDF 9th EDF Total Total at 31.12.2007 4,22 15,85 62,04 82,11 Total at 31.12.2006 4,02 26,58 79,69 110,29 Increase (Decrease) 0,19 -10,72 -17,65 -28,18

(8.4) Eligibility to be confirmed

These are invoices which arrived before the end of the financial year 2007 but which had still not been analysed at the yearly closure. The amounts registered in the accounts of the Authorising Officer are shown in table 8.4.

Table 8.4

(EUR million) Eligibility to be confirmed 7th EDF 8th EDF 9th EDF Total Total at 31.12.2007 3,76 30,00 81,19 114,96 Total at 31.12.2006 9,31 42,99 54,89 107,19 Increase (Decrease) – 5,55 – 12,99 26,30 7,77

(8.5) Invoices to be received

These figures reflect expenditure which has been incurred but has not yet been invoiced (e.g. work in progress on capital projects). The amounts estimated by the Authorising Officer are shown in table 8.5.

Table 8.5

(EUR million) Invoices to be received 7th EDF 8th EDF 9th EDF Total Total at 31.12.2007 83,69 331,69 1 672,04 2 087,42 Total at 31.12.2006 79,29 582,17 1 263,17 1 924,62 Increase (Decrease) 4,40 – 250,48 408,87 162,80

Funds and Reserves

(9) CALLED FUND CAPITAL

Table 9

(EUR million) 6th EDF 7th EDF 8th EDF 9th EDF Total EDF Capital 2007 0,00 0,00 10 460,15 10 460,15 Funds Capital (a) 10 940,00 12 840,00 11 699,32 35 479,32 Uncalled funds (b) 0,00 0,00 10 460,15 10 460,15 Called fund capital (a)-(b) 10 940,00 12 840,00 1 239,17 25 019,17 Capital 2006 Funds Capital (a) 7 560,00 10 940,00 12 840,00 11 659,15 42 999,15 Uncalled funds (b) 0,00 0,00 1 545,00 11 554,15 13 099,15 Called fund capital (a)-(b) 7 560,00 10 940,00 11 295,00 105,00 29 900,00

The fund capital represents the total amount receivable from the Member States for the relevant EDF fund as laid down in each of the Internal Agreement (10) between the Member States and the beneficiary ACP States and OCTs.

The initial allocation for the (current) 9th EDF, which originally totalled EUR 10,555 million, has since been increased by an amount of EUR 105 million in 2004, which was released by the EIB in accordance with the provisions of Council Decision 2003/583/EC. This additional allocation is in favour of actions to be undertaken in the Democratic Republic of the Congo.

Article 2(2) of the Internal Agreement for the 9th EDF set a EUR 1,000 million reserve. Since 2004 a set of Council decisions (11) allowed the release of EUR 999 million. The remaining amount of EUR 1 million has been released during 2007.

Following the decision of the joint ACP/EU Council on 25th May 2007 (12), the Commission has decided to launch a call for additional voluntary contributions to support the African Peace Facility in the framework of the intra ACP cooperation. Detailed amounts by country are shown in table 9.1.

The 2007 aggregated financial statements include the 7th, 8th and 9th EDFs. The aggregated statement of changes in net assets reflects the closure of the 6th EDF as a 2007 event. The closure of the 6th EDF had not been reflected in 2006, which was when the closure effectively took place. As the net assets of the 6th EDF were nil at the end of 2006, an exclusion of the 6th EDF would not have had any impact on the aggregated net assets. For information purposes, the impact of the closure of the 6th EDF on the 2006 aggregated funds and reserves is detailed below.

(EUR million) As presented in 2006 final accounts Adjustment to exclude the 6th EDF Adjusted balance 31.12.2006 FUNDS & RESERVES Called fund capital 29 900,00 – 7 560,00 22 340,00 Results carried forward from previous years – 26 787,49 7 300,94 – 19 486,54 Result for the year – 2 924,04 0,00 – 2 924,04 Reserves 1 033,84 259,06 1 292,89 Net assets 1 222,31 0,00 1 222,31

Uncalled funds represent the initial allocation not yet receivable from Member States.

Called funds capital represents the amount of the initial allocations which has been called up for transfer to the treasury accounts by the Member States in accordance with the procedure in Article 8 of the Financial Regulation, whereby each year the Commission must establish and communicate to the Council a statement of the payments to be made in the following year and a schedule of calls for contributions. The Commission must justify the amount requested on the basis of its capacity to deliver the proposed level of resources effectively.

Details of contributions called up and received during the year 2007 are shown in table 9.1. In 2007 the contributions due under the 8th EDF were fully exhausted and the Authorising Officer started the call for the 9th EDF contributions which were increased by the voluntary contributions.

Table 9.1

(EUR million) Contributions % Called up in 2006 Received in 2006 Called up in 2007 (8th EDF) Called up in 2007 (9th EDF) Voluntary contributions 2007 Received in 2007 Total called up 8th EDF Uncalled 9th EDF Austria 2,65 66,52 66,52 40,68 29,28 69,96 289,12 276,93 Belgium 3,92 98,39 98,39 60,24 43,25 1,25 104,74 427,74 409,71 Denmark 2,14 53,71 53,71 33,29 23,21 56,50 233,91 224,07 Finland 1,48 37,15 37,15 22,83 16,24 39,07 161,58 154,78 France 24,30 609,93 623,65 375,32 266,21 10,00 651,52 2 653,44 2 541,70 Germany 23,36 586,34 586,34 361,49 255,22 25,00 641,70 2 551,49 2 444,07 Greece 1,25 31,38 31,38 18,81 14,19 0,50 33,50 136,00 130,25 Ireland 0,62 15,56 15,56 9,97 6,40 2,00 18,37 68,10 65,24 Italy 12,54 314,75 314,75 193,61 137,45 331,06 1 369,23 1 311,57 Luxemburg 0,29 7,28 7,28 4,24 3,41 0,20 7,86 31,43 30,10 Netherlands 5,22 131,02 131,02 80,40 57,41 137,81 569,78 545,77 Portugal 0,97 24,35 24,35 15,44 10,17 25,61 106,38 101,92 Spain 5,84 146,58 146,58 90,37 63,80 154,18 637,87 611,02 Sweden 2,73 68,52 68,52 41,65 30,43 72,07 297,58 285,03 United Kingdom 12,69 318,52 318,52 196,66 138,35 335,02 1 386,35 1 328,00 Estonia N.A. 0,03 0,03 N.A. N.A. Czech Republic N.A. 0,18 0,18 N.A. N.A. EIB 8th EDF 120,00 N.A. STABEX 1 800,00 N.A. Total 100,00 2 510,00 2 523,72 1 545,00 1 095,00 39,17 2 679,17 12 840,00 10 460,15

(10) RESERVES

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the 9th EDF after decommitment. The resources transferred from other EDFs increase the appropriation of the receiving fund and reduce that of the fund of origin.

Table 10

(EUR million) Inter-EDF transfers 7th EDF 8th EDF 9th EDF Consolidate Total at 31.12.2007 To/from 5th EDF 526,78 526,78 To/from 6th EDF 181,76 94,00 490,36 766,12 To/from 7th EDF 532,82 933,45 1 466,26 1 466,26 To/from 8th EDF – 532,82 2 721,88 2 189,06 2 189,06 To/from 9th EDF – 933,45 – 2 721,88 – 3 655,33 – 3 655,33 Total – 757,73 – 2 095,06 4 145,68 0,00 1 292,89

1.3.8. NOTES TO THE ECONOMIC OUTTURN ACCOUNT

(11) ADMINISTRATIVE AND FINANCIAL EXPENSES

This heading includes administrative and financial expenditure financed by interest and related to the devolution process in application of the provisions of articles 1.3, 4 and 9 of the Internal Agreement applicable to 9th EDF.

In addition, following Council Decision 599 on 21st June 2005, a complementary amount of EUR 90 million from the intra ACP allocation has been reallocated to finance devolution. In 2006, expenditure for personnel and infrastructure costs in this heading amounted to EUR 63 million and to EUR 26 million in 2007.

(12) TOTAL EXPENSES (CASH BASIS)

These amounts represent total payments for the Fund(s) in question during the 2007 financial year on a cash accounting basis, including advance payments and recovery orders. Cumulative figures are shown in the Report on Financial Implementation prepared by the Authorising Officer.

(13) ACCRUAL ADJUSTMENTS

Total expenditure has been restated to comply with the international accounting standard, IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the Authorising Officer.

Table 13

(EUR million) Accrual adjustments annual increase 2007 Notes 7th EDF 8th EDF 9th EDF Increase 2007 — Pre-financing 2 – 143,41 – 828,96 – 1 085,98 – 2 058,35 — Financial expenses 16 0,34 0,34 Accrued Expenses – 73,03 – 527,38 – 1 057,71 – 1 658,12 Non finalised payments 8.3 0,19 – 10,72 – 17,65 – 28,18 Eligibility to be confirmed 8.4 – 5,55 – 12,99 26,30 7,77 Invoices to be received 8.5 4,40 – 250,48 408,87 162,80 — Estimated clearing of prefinancing 2.3 – 72,08 – 253,19 – 1 475,24 – 1 800,51 Total accruals 70,39 301,57 27,93 399,89

(14) TOTAL EXPENSES ON AN ACCRUAL BASIS

Project expenditure by EDF has been restated in accordance with the relevant international accounting standards. The expenditure for each aid instrument will be presented on a full accrual basis as and from the 2009 financial year, once the accounts have been migrated to the new IT (ABAC) system.

(15) FINANCIAL REVENUE

Interest revenue is related to the 9th EDF. The sole is STABEX security interest which is related to the 8th EDF due to absence of this aid instrument in the 9th EDF.

Table 15

(EUR million) Interest earned during 2007 Notes 8th EDF 9th EDF Total at 31.12.2007 Total at 31.12.2006 EIB 15.1 2,49 2,49 10,56 European banks 15.1 9,80 9,80 11,44 Recovery orders 15.2 0,04 0,04 0,00 STABEX security accounts 15.3 6,18 6,18 9,13 Special D R Congo contribution 15.3 0,14 0,14 0,49 Total interest 6,18 12,47 18,65 31,61

(15.1) EIB and European banks interest revenue

The interest earned on accounts with European paying agents (including the main STABEX account) can be used to finance projects in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF. This interest results in an effective increase in the Funds' overall appropriations.

(15.2) Interest revenue on late payments of recovery orders

This is interest earned on late payments of recovery orders by debtors. Such funds can be used for financing projects in accordance with Articles 1.3 and 9 of the Internal Agreement applicable to 9th EDF. This interest results in an effective increase in the Funds' overall appropriations.

(15.3) Interest revenue on the STABEX security accounts and the Special D. R. Congo account

This represents the income generated by the STABEX security accounts and the Special Democratic Republic of the Congo account. Whilst such income appears to increase the total of the Fund it should be borne in mind that any income generated by these accounts is earmarked for a specific purpose and beneficiary state (see note 5).

(16) FINANCIAL EXPENSES

In the present IT system (OLAS), this category of expenditure is booked as a part of administrative costs. In the interests of transparency these costs are now presented under a separate heading. In 2007 financial expenses amount to EUR 0,34 million.

1.4. OFF BALANCE SHEET ITEMS

Guarantees are held to secure pre-financing and released when the final claim under a project is paid. In accordance with the ‘prudence’ concept and in compliance with the provisions of IPSAS 19, contingent assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency. There are two values to disclose for this type of guarantee: the ‘nominal’ and the ‘on-going values’. For the ‘nominal’ value the generating event is linked to the existence of the guarantee. The nominal value is disclosed as contingent asset. For the ‘on-going’ value, the guarantee's generating event is the prefinancing payment and/or subsequent clearings.

At 31st December 2007 the ‘nominal’ value of guarantees received in respect of prefinancing amounts EUR 576,79 million (see table below) compared to EUR 310,61 million for the ‘on-going’ value.

Guarantees On pre-financing On guarantee withholding On performance Total 31.12.2007 Total 31.12.2006 7th EDF 56,52 17,19 32,09 105,80 111,70 8th EDF 145,58 38,35 75,42 259,36 308,71 9th EDF 374,68 104,75 159,60 639,04 302,62 Total 576,79 160,30 267,11 1 004,20 723,02

2. REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

Previous EDFs

Decision 1/2000 of the ACP-EC Council of 27 July 2000 regarding transitional measures provides for some of the unallocated resources from previous EDFs to be used for programmes consistent with the relevant provisions of the Cotonou Agreement and put into early application under transitional measures.

Commission Decision 410/2001 of 16 March 2001, which fixes the allocations for the indicative programmes of the ACP countries under the ACP-EC Partnership Agreement, stipulates that the unallocated resources from previous EDFs up to a maximum of EUR 1,2 billion are to be used for implementation in accordance with the rules and procedures of the relevant EDFs, pending the entry into force of the Financial Protocol to the 9th EDF.

Commission Decision 1033/2001 of 15 June 2001 fixed the allocations for regional programmes and intra-ACP cooperation under the Financial Protocol to the ACP-EC Partnership Agreement.

Commission Decision 1252/2002 of 11 July 2002 increased the envelope intended for intra-ACP cooperation by EUR 60 million, from the general reserves of the 6th and 7th EDFs, and also provided for the use of these additional funds pending the entry into force of the Financial Protocol to the 9th EDF, in accordance with the rules and procedures applicable to the original EDFs.

Lastly, Decision 3/2002 of the ACP-EC Council of Ministers of 23 December 2002 took an amount of €25 million from the unallocated resources of the 8th EDF (general reserve) and allocated it to regional cooperation under the ACP-EC Partnership Agreement.

As in past years, to ensure transparency in the presentation of the accounts for 2007, the tables below set out separately for each of the EDFs (7th and 8th) the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Entry in the accounts and the presentation of accounts in connection with the Cotonou Agreement is based on Article 3(2) of Annex IV to the ACP-EC Partnership Agreement, as regards countries. That Article gives the ACP countries an A envelope to cover macroeconomic support and support for programmes and projects and a B envelope to cover unforeseen needs such as emergency assistance, debt relief initiatives and support to offset the adverse effects of instability in export earnings (13). For the regions, the accounts are set out according to the regional programming as referred to in Chapter 2 of the ACP-EC Partnership Agreement (i.e. regional indicative programmes and intra-ACP cooperation).

Pursuant to Commission Decision C(2003)1904 of 16 June 2003 as amended by Decisions C(2006) 3862 of 24 August 2006 and C(2007)2149 of 24 May 2007, any balances remaining from previous EDFs on the date of entry into force of the Cotonou Agreement and any amounts decommitted at a later date from projects charged to these Funds were transferred to the 9th EDF. Any resource thus transferred to the 9th EDF after previously having been allocated to the indicative programme of an ACP State or region has been allocated to that State or region. On the other hand, the unallocated resources were transferred to reserves which have been reprogrammed under the 9th EDF. As the 6th EDF was closed in 2006, the annual accounts no longer contain implementation tables for that EDF. However, implementation of the transferred balances can be found in the 9th EDF.

9th EDF

The ACP-EC Partnership Agreement signed on 23 June 2000 in Cotonou by the Member States of the European Community and the States of Africa, the Caribbean and the Pacific (ACP States) entered into force on 1 April 2003.

The EU Council Decision of 27 November 2001 (2001/822/EC) on the association of the overseas countries and territories (OCT) with the European Community entered into force on 2 December 2001.

The Cotonou Agreement was concluded for a twenty-year period with a review clause and a Financial Protocol for each five-year period. For the first Financial Protocol (financed by the 9th EDF), once the unexpended balances of previous EDFs (14) have been taken into account, the Agreement covered the period up to the end of 2007 (15); for the second Financial Protocol (to be financed by the 10th EDF), it may be amended (and will in fact cover six years (16)).

The 9th EDF was set at EUR 13 800 million, including EUR 13 500 million allocated to the ACP States in accordance with the first Financial Protocol included in the Cotonou Agreement, EUR 175 million allocated to the OCT (provided for by the EU Council Decision on the association of the OCT) and EUR 125 million reserved for the European Commission to cover expenses in connection with implementing the 9th EDF resources (provided for in the internal agreement for the 9th EDF).

The long-term development budget for ACP States has two components:

The A envelope for macroeconomic support, sectoral policies, and programmes and projects supporting Community aid: this corresponds to the allocation for the NIPs and structural adjustment in previous EDFs.

The B envelope, intended to cover unforeseen needs such as emergency aid, contributions to debt relief initiatives and support to offset adverse fluctuations in export earnings, generally corresponds to the Stabex, Sysmin and emergency aid allocations in previous EDFs.

Of the total 9th EDF budget for the ACP States, EUR 1 000 million was released in 2004 and 2005 after examination by the EU Council, on the basis of a proposal from the European Commission:

— EUR 250 million was released in accordance with Council Decision 2004/289/EC of 22 March 2004 and allocated to the Intra-ACP Fund (natural resources) to finance the Water Facility operation.

— EUR 18 million was released in accordance with Council Decision 10752/05 of 19 July 2005 and allocated to the envelope for long-term development support to cover the financing of the National Indicative Programme of Timor Leste for the period 2006-2007.

— EUR 482 million was released in accordance with ACP-EC Council of Ministers Decision 6/2005 of 22 November 2006 and allocated to the envelope for long-term development support (EUR 352 million), the envelope for regional cooperation and integration (EUR 48 million) and the Investment Facility (EUR 82 million). These resources were released to contribute to financing of the EU Energy Initiative (EUR 220 million), the International Commodity Risk Management Financing Facility (EUR 25 million), adaptation to the new EU feed and food health and plant health rules (EUR 30 million), strengthening the African Union (EUR 50 million), the ‘Education for All’ Fast Track Initiative (EUR 63 million), tackling HIV/AIDS, tuberculosis and malaria (EUR 62 million), and the operating costs of the CDE/CTA (EUR 32 million).

— EUR 250 million was released in accordance with ACP-EC Council of Ministers Decision 7/2005 of 22 November 2005 and the corrigendum of 1 February 2006 and allocated to the envelope for long-term development support (EUR 185 million), the envelope for regional cooperation and integration (EUR 24 million) and the Investment Facility (EUR 41 million). These resources were allocated to financing the Water Facility operation.

The breakdown of 9th EDF allocations for ACP States, including the ‘conditional billion’ and allocations managed directly by the European Investment Bank (EIB), is as follows:

(EUR million) 9th EDF allocation Unopened allocations (EIB-managed) Open allocations OLAS (EC-managed) Long-term development budget 10 000,00 (186,85) (17) 9 813,15 Regional budget 1 300,00 1 300,00 Investment facility 2 200,00 (2.037,00) 163,00 Total 13 500,00 (2 223,85) 11 276,15

The 9th EDF allocations for OCTs, including those managed directly by the European Investment Bank (EIB), break down as follows:

(EUR million) 9th EDF allocation Reduction/conditional billion Unopened allocations (EIB-managed) Open allocations OLAS (EC-managed) Long-term development budget 127,10 127,10 127,10 C reserve 17,90 (1,00) (18) 16,90 17,90 Regional budget 8,00 8,00 8,00 Budget for studies and technical assistance 2,00 2,00 2,00 Investment facility 20,00 (20,00) 0,00 20,00 Total 175,00 (21,00) 154,00 175,00

The unallocated C reserve for OCTs is maintained to finance humanitarian aid, emergency aid, refugee assistance and fluctuations in export earnings, and corresponds to the B allocation for the ACP countries

Council Decision 2005/599/EC of 21 June 2005 allocated EUR 90 million within the intra-ACP envelope to financing devolution.

Pursuant to Commission Decision E/982/2003 of 16 June 2003, any balances remaining from previous EDFs on the date of entry into force of the Cotonou Agreement and any amounts decommitted at a later date from projects charged to these Funds were transferred to the 9th EDF. Any resource thus transferred to the 9th EDF after previously having been allocated to the indicative programme of an ACP State or region has been allocated to that State or region. On the other hand, the unallocated resources were transferred to reserves which have been reprogrammed under the 9th EDF. The total amount transferred since the entry into force of the 9th EDF is EUR 4,1 billion.

Pursuant to Decision 2/2007 of the ACP-EC Council of Ministers of 25 May 2007 designed to allow additional bilateral contributions for intra-ACP cooperation in support of the objectives of the African Peace Facility, to be managed by the Commission, the 9th EDF was increased by EUR 39,17 million, which is shown separately on a specific financial instrument.

As the funds of the 9th EDF, including the expected decommitments, could no longer be committed after 31 December 2007 (19), a mechanism had to be found to commit the outstanding balances available before that date, in an effective manner, in support of the overall objectives of the ACP-EC partnership. Decision 1/2007 of the ACP-EC Council of Ministers of 25 May 2007 provides for reassigning part of the reserve of the 9th EDF envelope for long-term development to intra-ACP cooperation in the 9th EDF envelope for regional cooperation and integration. The funds transferred to the long-term development reserve on the basis of the end-of-term reviews of the national indicative programmes and the amounts available for intra-ACP cooperation have been mobilised in accordance with Decision 1/2007 as follows:

(a) one intra-ACP reserve of EUR 26,7 billion open to all ACP States for emergency assistance under Article 72(3)(a) and (b) of the ACP-EC Partnership Agreement;

(b) five regionalised B-envelopes amounting to EUR 17,5 million for the Southern African region, EUR 48,9 million for the region of Eastern and Southern Africa and the Indian Ocean, EUR 31,9 million for the West African region, EUR 16,1 million for the Central African region and EUR 35,4 million for the Caribbean region, mobilised for contributions to internationally agreed debt relief initiatives and for humanitarian and emergency assistance in accordance with Articles 72 and 73 of the ACP-EC Partnership Agreement on the basis of regional solidarity;

(c) an intra-ACP FLEX programme of EUR 50 million for 2006 (application year 2005) and an intra-ACP FLEX programme of EUR 50 million for 2007 (application year 2006) in order to ensure minimum support to countries subject to the adverse effects of instability in export earnings;

(d) replenishment of the African Peace Facility with EUR 100 million for various peace support, training and capacity-building activities;

(e) institutional support to the ACP Secretariat in order to bridge the period until the entry into force of the 10th EDF and to contribute to the running costs of the ACP Secretariat for 2008 (EUR 1 million);

(f) addition of EUR 2,5 million to the intra-ACP technical cooperation facility;

(g) EUR 4 million as an urgent carry-over of the rinderpest eradication programme in Africa (PACE);

(h) additional contribution of EUR 5 million to the Caribbean Knowledge and Learning Network (CKLN);

(i) cover of EUR 14,87 million for new and unexpected needs that cannot be financed from the B envelopes (amount used for an additional contribution of EUR 3 million for the CTA and the financing of specific projects (African Outlook — EUR 1,3 million; Microfinances — EUR 2,8 million, Pesticides Programme — EUR 5 million; Investment Observatory — EUR 2,8 million));

(j) additional support of EUR 38 million for the Global Fund against HIV/AIDS, Tuberculosis and Malaria (GFATM);

(k) top-up of EUR 48,7 million for the EU-ACP Infrastructure Trust Fund as an advance on the allocations scheduled under the 10th EDF.

The tables annexed, concerning the amounts decided, contracted and paid, show net figures. Only Table 2.7 shows separately the amounts committed and decommitted and the amounts paid and recovered.

2.1. ALLOCATIONS AT 31.12.2007

Table 1.1

7th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2006 Increases or reductions in resources during 2007 Current appropriation ACP Lomé Grants 6 215,00 – 884,60 – 50,80 5 279,60 Interest-rate subsidies 280,00 – 81,51 0,00 198,49 Emergency aid 250,00 153,35 – 0,07 403,27 Refugee aid 100,00 – 16,05 – 0,10 83,86 Risk capital 825,00 – 8,49 – 3,13 813,38 Stabex 1 500,00 196,69 0,00 1 696,69 Sysmin 480,00 – 39,39 – 10,08 430,54 Transfer 5th EDF — 7th EDF 0,00 312,85 – 3,85 309,00 Structural adjustment 1 150,00 – 0,83 – 0,50 1 148,67 Heavily indebted poor countries 0,00 40,00 0,00 40,00 Intra ACP Allocation 0,00 50,00 0,00 50,00 TOTAL ACP 10 800,00 – 277,96 – 68,54 10 453,51 OCT Grants 97,50 – 11,92 – 2,41 83,17 Interest-rate subsidies 6,00 – 1,82 0,00 4,18 Emergency aid 2,50 – 0,24 0,00 2,26 Refugee aid 0,50 – 0,21 0,00 0,29 Risk capital 25,00 – 2,51 0,00 22,49 Stabex 6,00 0,00 0,00 6,00 Sysmin 2,50 0,00 0,00 2,50 Transfer 5th EDF — 7th EDF 0,00 9,58 – 0,97 8,61 TOTAL OCT 140,00 – 7,12 – 3,38 129,50 TOTAL 7th EDF 10 940,00 – 285,08 – 71,91 10 583,01





Table 1.2

7th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou Total ACP Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Transfer 5th EDF — 7th EDF Structural adjustment Heavily indebted poor countries Intra-ACP Situation 31.12.2006 5 330,40 198,49 403,35 83,95 816,51 1 696,69 440,61 312,85 1 149,17 40,00 50,00 10 522,04 Transfer to 9th EDF (1) – 50,80 0,00 – 0,07 – 0,10 – 3,13 0,00 – 10,08 – 3,85 – 0,50 0,00 0,00 – 68,54 Situation at 31.12.2007 5 279,60 198,49 403,27 83,86 813,38 1 696,69 430,54 309,00 1 148,67 40,00 50,00 10 453,51





OCT Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Transfer 5th EDF — 7th EDF Total OCT Situation 31.12.2006 85,58 4,18 2,26 0,29 22,49 6,00 2,50 9,58 132,88 Transfer to 9th EDF (20) – 2,41 0,00 0,00 0,00 0,00 0,00 0,00 – 0,97 – 3,38 Situation at 31.12.2007 83,17 4,18 2,26 0,29 22,49 6,00 2,50 8,61 129,50





Table 1.3

8th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 december 2006 Increases or reductions in resources during 2007 Current appropriation ACP Lomé Grants 7 562,00 – 2 170,39 – 134,77 5 256,84 Interest-rate subsidies 370,00 – 275,44 – 0,85 93,70 Emergency aid 140,00 – 3,48 – 0,14 136,38 Refugee aid 120,00 – 3,40 – 5,36 111,24 Risk capital 1 000,00 127,77 – 48,99 1 078,78 Stabex 1 800,00 – 1 083,83 2,48 718,65 Sysmin 575,00 – 463,26 – 0,02 111,71 Structural adjustment 1 400,00 114,55 – 16,09 1 498,45 Heavily indebted poor countries 0,00 1 060,00 0,00 1 060,00 Utilisation of interest income 0,00 37,38 0,00 37,38 Cotonou A envelope 0,00 433,59 – 3,02 430,57 B envelope 0,00 254,58 0,00 254,58 TOTAL ACP 12 967,00 – 1 971,93 – 206,77 10 788,30 OCT Grants 115,00 – 71,09 – 4,26 39,65 Interest-rate subsidies 8,50 – 7,36 0,00 1,14 Emergency aid 3,00 – 3,00 0,00 0,00 Refugee aid 0,50 – 0,50 0,00 0,00 Risk capital 30,00 – 23,50 0,00 6,50 Stabex 5,50 – 4,32 0,00 1,18 Sysmin 2,50 – 0,01 0,00 2,49 TOTAL OCT 165,00 – 109,78 – 4,26 50,96 TOTAL 8TH EDF 13 132,00 – 2 081,71 – 211,03 10 839,26





Table 1.4

8th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP Lomé Cotonou Total ACP Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Structural adjustment Heavily indebted poor countries Utilisation of interest income A envelope B envelope Situation 31.12.2006 5 391,61 94,56 136,52 116,60 1 127,77 716,17 111,74 1 514,55 1 060,00 37,38 433,59 254,58 10 995,07 Transfer to 9th EDF (1) 134,77 0,85 0,14 5,36 48,99 3,69 0,02 16,09 0,00 0,00 3,02 0,00 212,95 Stabex security interest 6,18 6,18 Situation at 31.12.2007 5 256,84 93,70 136,38 111,24 1 078,78 718,65 111,71 1 498,45 1 060,00 37,38 430,57 254,58 10 788,30





OCT Grants Interest-rate subsidies Emergency aid Refugee aid Risk capital Stabex Sysmin Total OCT Situation 31.12.2006 43,91 1,14 0,00 0,00 6,50 1,18 2,49 55,22 Transfer to 9th EDF (21) – 4,26 0,00 0,00 0,00 0,00 0,00 0,00 – 4,26 Situation at 31.12.2007 39,65 1,14 0,00 0,00 6,50 1,18 2,49 50,96





Table 1.5

9th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF FUND BY INSTRUMENT

(EUR million) Instrument Initial appropriation Accumulated increases or reductions in resources at 31 December 2006 Increases or reductions in resources during 2007 Current appropriation ACP A envelope 5 318,30 3 861,95 351,63 9 531,87 B envelope 2 107,90 – 632,60 – 166,67 1 308,64 National allocation reserve 1 224,10 – 1 095,30 – 128,80 0,00 CDE+CTA+Joint Assistance 164,00 – 22,98 35,07 176,09 Long-term dev. reserve 257,85 – 60,10 – 197,75 0,00 Regional allocations 904,00 48,77 – 23,33 929,43 INTRA ACP 300,00 2 541,52 422,37 3 263,89 Implementation costs 125,00 0,00 0,00 125,00 Interest and other receipts 0,00 76,47 12,36 88,83 Special Congo allocation 0,00 108,47 0,14 108,61 Transfer 6th — 9th EDF 0,00 36,14 – 10,03 26,11 Voluntary Peace Facility Contributions 0,00 0,00 39,17 39,17 TOTAL ACP 10 401,15 4 862,34 334,15 15 597,63 OCT A envelope 0,00 210,15 40,01 250,16 Use of C reserve 0,00 3,70 3,30 7,00 Long-term dev. reserve 144,00 – 86,96 – 57,04 0,00 Regional allocations 8,00 19,51 22,14 49,65 Technical assistance envelope 2,00 0,00 0,00 2,00 Transfer 6th — 9th EDF 0,00 0,70 – 0,76 – 0,06 (22) TOTAL OCT 154,00 147,11 7,64 308,75 TOTAL 9TH EDF 10 555,15 5 009,45 341,78 15 906,38





Table 1.6

9th EDF

Situation of appropriations: 31 December 2007

ANALYSIS OF MOVEMENTS DURING THE YEAR

(EUR million) ACP A envelope B envelope National allocation reserve CDE+CTA+Joint Assembly Long-term dev. reserve Regional allocations INTRA ACP Implementation costs Interest and other receipts Special Congo allocation Transfer 6th — 9th EDF Voluntary Contribution to Peace Facility TOTAL ACP Situation at 31.12.2006 9 180,25 1 475,30 128,80 141,02 197,75 952,77 2 841,52 125,00 76,47 108,47 36,14 0,00 15 263,49 Transfer to 9th EDF (1) 154,64 0,07 90,60 24,03 12,14 281,48 Release of conditional billion 0,00 1,00 1,00 Transfer from lg. trm dev. res. to intra acp res (2) 36,14 35,00 – 431,52 360,38 0,00 2007 EFD interest + Special Congo allocation 0,00 12,36 0,14 12,50 Transfer from A & B envelope to LTDR (ETR) 85,72 – 216,37 130,64 – 36,69 36,69 – 0,00 Amendment of A & B envelopes (ETR) – 0,08 19,50 – 128,80 109,38 0,00 Mid term review Regional allocations Transfers – 10,68 10,68 0,00 Transfers — ad hoc review, 1 Dec. 2007 67,50 30,20 – 97,70 0,00 Transfer 6th — 9th EDF 7,70 0,85 1,48 – 10,03 0,00 Voluntary Contribution to Peace Facility (3) 39,17 39,17 Situation at 31.12.2007 9 531,87 1 308,64 0,00 176,09 0,00 929,43 3 263,89 125,00 88,83 108,61 26,11 39,17 15 597,63





OCT A envelope C envelope Long-term dev. reserve Regional allocations Technical assistance envelope Transfer 6th — 9th EDF TOTAL OCT Situation at 31.12.2006 210,15 3,70 57,04 27,51 2,00 0,70 301,11 Transfer to 9th EDF (23) 7,05 0,59 0,00 7,64 Reserve allocation (24) 32,27 3,30 -57,04 21,48 0,00 Transfer 6th — 9th EDF 0,69 0,07 – 0,76 0,00 Situation at 31.12.2007 250,16 7,00 0,00 49,65 2,00 – 0,06 308,75





Table 1.7

7th-8th-9th EDF

INCREASES, REDUCTIONS AND TRANSFER OF RESOURCES DURING 2007

(EUR million) ACP TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2006 10 522,04 10 995,07 15 263,49 Transfer to 9th EDF (1) – 68,54 – 212,95 281,48 0,00 Interest earned on Stabex security accounts 6,18 6,18 Release of conditional billion 1,00 1,00 2007 interest on EDF funds and special Congo allocation 12,50 12,50 Voluntary Peace Facility Contributions 39,17 39,17 SITUATION AT 31.12.2007 10 453,51 10 788,30 15 597,63 58,84





OCT TOTAL 7th EDF TOTAL 8th EDF TOTAL 9th EDF Net variation SITUATION AT 31.12.2006 132,88 55,22 301,11 Transfer to 9th EDF (25) – 3,38 – 4,26 7,64 0,00 SITUATION AT 31.12.2006 129,50 50,96 308,75 0,00 TOTAL ACP + OCT 10 583,01 10 839,26 15 906,38 58,84 TOTAL TRANSFER TO 9th EDF – 71,91 – 217,21 289,12 0,00

2.2. AGGREGATED ACCOUNTS

Table 2.1

EDF aggregated accounts at 31.12.2007

PROGRESS REPORT

(EUR million) Appropriations 7th EDF 8th EDF 9th EDF 7th, 8th and 9th Lomé Programmable aid 5 362,77 5 296,49 10 659,25 Non-programmable aid 4 852,63 4 820,24 9 672,87 Transfers to other Funds 317,61 26,05 343,66 Sundry revenue 37,38 37,38 Cotonou A envelope 430,57 9 782,03 10 212,61 B envelope 254,58 1 315,64 1 570,21 Regional Allocation 979,08 979,08 Intra ACP allocation 50,00 3 262,87 3 312,87 Intra ACP reserve 1,02 1,02 CDE, CTA and Joint Assembly 176,09 176,09 Special allocation Counc.dec.4/04 108,61 108,61 Voluntary contribution Peace facility 39,17 39,17 Implementation costs and interest 215,83 215,83 TOTAL 10 583,01 10 839,26 15 906,38 37 328,65





(EUR million) EDF Aggregate total Annual figures As at 31.12.2007 % of appropriation 2003 2004 2005 2006 2007 DECISIONS 7 10 583,01 100 % – 2,60 – 58,42 – 86,09 – 126,67 – 71,91 8 10 839,26 100 % 255,11 – 172,26 – 275,05 – 265,29 – 211,03 9 15 857,10 100 % 3 156,44 2 638,08 3 420,76 3 186,70 3 455,11 TOTAL 37 279,37 3 408,96 2 407,40 3 059,62 2 794,74 3 172,17 ASSIGNED FUNDS 7 10 517,15 99 % 311,69 121,42 110,52 – 6,34 – 5,51 8 10 484,62 97 % 1 406,57 848,67 471,95 202,48 35,03 9 11 044,21 69 % 993,70 1 747,48 2 070,90 2 914,80 3 317,33 TOTAL 32 045,98 2 711,97 2 717,58 2 653,36 3 110,94 3 346,85 PAYMENTS 7 10 340,78 98 % 382,21 234,94 235,31 159,24 96,66 8 9 605,45 89 % 1 472,56 985,34 858,47 736,81 483,42 9 6 753,74 42 % 277,66 947,56 1 373,70 1 860,93 2 293,89 TOTAL 26 699,96 2 132,43 2 167,84 2 467,48 2 756,98 2 873,97 * Negative figures represent decommitments.

Table 2.2

EDF aggregated accounts at 31.12.2007

CLASS OF AID

(EUR million) 7th EDF % 8th EDF % 9th EDF % TOTAL % (26) (26) (26) (26) Lomé PROGRAMMABLE AID (NIP) Appropriation 5 362,77 5 296,49 10 659,25 Decisions 5 362,77 100 % 5 296,49 100 % 10 659,25 100 % Assigned funds 5 303,11 99 % 5 062,12 96 % 10 365,23 97 % Payments 5 216,32 97 % 4 531,90 86 % 9 748,22 91 % NON-PROGRAMMABLE AID Appropriation 4 852,63 4 820,24 9 672,87 Decisions 4 852,63 100 % 4 820,24 100 % 9 672,87 100 % Assigned funds 4 850,59 100 % 4 787,55 99 % 9 638,14 100 % Payments 4 764,01 98 % 4 544,05 94 % 9 308,05 96 % TRANSFERS FROM OTHER FUNDS Appropriation 317,61 26,05 343,66 Decisions 317,61 100 % 26,05 100 % 343,66 100 % Assigned funds 313,45 99 % 21,06 81 % 334,51 97 % Payments 310,45 98 % 10,06 39 % 320,51 93 % SUNDRY REVENUE Appropriation 37,38 37,38 Decisions 37,38 100 % 37,38 11 % Assigned funds 35,54 95 % 35,54 10 % Payments 33,20 89 % 33,20 10 % TOTAL Appropriation 10 533,01 10 154,11 26,05 20 713,17 Decisions 10 533,01 100 % 10 154,11 100 % 26,05 100 % 20 713,17 100 % Assigned funds 10 467,15 99 % 9 885,21 97 % 21,06 81 % 20 373,42 98 % Payments 10 290,78 98 % 9 109,14 90 % 10,06 39 % 19 409,98 94 % Cotonou A Envelope Appropriation 430,57 9 782,03 10 212,61 Decisions 430,57 100 % 9 764,04 100 % 10 194,62 100 % Assigned funds 418,60 97 % 6 785,47 69 % 7 204,07 71 % Payments 392,61 91 % 4 318,73 44 % 4 711,34 46 % B Envelope Appropriation 254,58 1 315,64 1 570,21 Decisions 254,58 100 % 1 315,64 100 % 1 570,21 100 % Assigned funds 180,81 71 % 872,77 66 % 1 053,58 67 % Payments 103,70 41 % 650,65 49 % 754,34 48 % CDE, CTA and Joint Assembly Appropriation 176,09 176,09 Decisions 176,00 100 % 176,00 100 % Assigned funds 167,21 95 % 167,21 95 % Payments 134,24 76 % 134,24 80 % Regional Allocation Appropriation 979,08 979,08 Decisions 978,91 100 % 978,91 100 % Assigned funds 606,96 62 % 606,96 62 % Payments 219,63 22 % 219,63 22 % Intra ACP Allocation Appropriation 50,00 3 262,87 3 312,87 Decisions 50,00 100 % 3 261,85 100 % 3 311,85 100 % Assigned funds 50,00 100 % 2 276,62 70 % 2 326,62 70 % Payments 50,00 100 % 1 132,75 35 % 1 182,75 36 % Voluntary contribution Peace Facility Appropriation 39,17 39,17 Decisions 39,17 1 % 39,17 1 % Assigned funds 37,01 1 % 37,01 1 % Payments 29,22 1 % 29,22 1 % Spec. Alloc Counc.dec.4/04 Appropriation 108,61 108,61 Decisions 108,47 3 % 108,47 3 % Assigned funds 108,19 3 % 108,19 3 % Payments 105,24 3 % 105,24 3 % Implementation costs and interest Appropriation 215,83 215,83 Decisions 186,97 87 % 186,97 87 % Assigned funds 168,92 78 % 168,92 78 % Payments 153,23 71 % 153,23 71 % TOTAL Appropriation 50,00 685,15 15 879,31 16 614,46 Decisions 50,00 100 % 685,15 100 % 15 831,05 100 % 16 566,20 100 % Assigned funds 50,00 100 % 599,41 87 % 11 023,16 69 % 11 672,57 70 % Payments 50,00 100 % 496,30 72 % 6 743,68 42 % 7 289,98 44 % INTRA ACP RESERVE 1,02 1,02 TOTAL Appropriation 10 583,01 10 839,26 15 906,38 37 328,65 Decisions 10 583,01 100 % 10 839,26 100 % 15 857,10 100 % 37 279,37 100 % Assigned funds 10 517,15 99 % 10 484,62 97 % 11 044,21 69 % 32 045,98 86 % Payments 10 340,78 98 % 9 605,45 89 % 6 753,74 42 % 26 699,96 72 %





Table 2.3

EDF aggregated accounts at 31.12.2007:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 7th EDF

(EUR million) Appropriations Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2) : (1) (3) (3) : (2) (4) (4) : (3) ACP LOME Total indicative programmes 5 279,60 5 279,60 – 50,80 100 % 5 220,07 4,36 99 % 5 133,82 62,80 98 % Total non-programmable aid 4 814,91 4 814,91 – 13,88 100 % 4 813,07 – 3,78 100 % 4 726,73 32,47 98 % Interest-rate subsidies 198,49 198,49 100 % 198,00 – 0,49 100 % 198,00 – 0,49 100 % Emergency aid 403,27 403,27 – 0,07 100 % 403,27 – 0,00 100 % 403,13 – 0,00 100 % Aid for refugees 83,86 83,86 – 0,10 100 % 83,67 – 0,18 100 % 83,57 100 % Risk capital 813,38 813,38 – 3,13 100 % 813,38 – 3,13 100 % 775,11 5,28 95 % Stabex 1 696,69 1 696,69 100 % 1 696,69 100 % 1 694,18 8,23 100 % Sysmin 430,54 430,54 – 10,08 100 % 429,37 0,11 100 % 384,13 19,45 89 % Structural adjustment 1 148,67 1 148,67 – 0,50 100 % 1 148,67 – 0,08 100 % 1 148,61 100 % Heavily indebted poor countries 40,00 40,00 100 % 40,00 100 % 40,00 100 % Transfer 5th EDF — 7th EDF 309,00 309,00 – 3,85 100 % 304,88 – 4,86 99 % 301,88 0,39 99 % Sundry Revenue COTONOU Intra ACP Allocation 50,00 50,00 100 % 50,00 100 % 50,00 100 % General Reserve TOTAL ACP (a) 10 453,51 10 453,51 – 68,54 100 % 10 388,02 – 4,28 99 % 10 212,43 95,66 98 % OCT Total indicative programmes 83,17 83,17 – 2,41 100 % 83,04 – 0,97 100 % 82,50 0,24 99 % Total non-programmable aid 37,73 37,73 0,00 100 % 37,52 0,01 99 % 37,27 0,76 99 % Interest-rate subsidies 4,18 4,18 100 % 4,18 100 % 4,18 100 % Emergency aid 2,26 2,26 100 % 2,26 100 % 2,26 100 % Aid for refugees 0,29 0,29 100 % 0,29 100 % 0,29 100 % Risk capital 22,49 22,49 100 % 22,49 100 % 22,49 100 % Stabex 6,00 6,00 100 % 6,00 100 % 6,00 100 % Sysmin 2,50 2,50 100 % 2,29 0,01 92 % 2,05 0,76 89 % Transfer 5th EDF — 7th EDF 8,61 8,61 – 0,97 100 % 8,57 – 0,27 100 % 8,57 100 % TOTAL OCT (b) 129,50 129,50 – 3,38 100 % 129,13 – 1,23 100 % 128,34 1,00 99 % TOTAL (a) + (b) 10 583,01 10 583,01 – 71,91 100 % 10 517,15 – 5,51 99 % 10 340,78 96,66 98 %





Table 2.4

EDF aggregated accounts at 31.12.2007

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 8th EDF

(EUR million) Appropriations Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2): (1) (3) (3): (2) (4) (4): (3) ACP LOME Total indicative programmes 5 256,84 5 256,84 – 134,77 100 % 5 025,52 59,32 96 % 4 498,08 296,73 90 % Total non-programmable aid 4 846,31 4 846,31 – 68,99 100 % 4 811,84 – 52,51 99 % 4 567,01 134,53 95 % Interest-rate subsidies 93,70 93,70 – 0,85 100 % 93,70 – 0,85 100 % 66,64 1,45 71 % Emergency aid 136,38 136,38 – 0,14 100 % 136,37 – 0,15 100 % 136,37 – 0,15 100 % Aid for refugees 111,24 111,24 – 5,36 100 % 109,16 – 2,88 98 % 100,54 1,31 92 % Risk capital 1 078,78 1 078,78 – 48,99 100 % 1 078,78 – 48,99 100 % 974,50 52,52 90 % Stabex 718,65 718,65 2,48 100 % 692,93 5,63 96 % 612,67 90,14 88 % Sysmin 111,71 111,71 – 0,02 100 % 108,41 1,99 97 % 100,74 2,72 93 % Structural adjustment 1 498,45 1 498,45 – 16,09 100 % 1 496,94 – 7,76 100 % 1 496,58 0,02 100 % Heavily indebted poor countries 1 060,00 1 060,00 0,00 100 % 1 060,00 0,00 100 % 1 045,78 – 14,22 99 % Utilisation of interest income 37,38 37,38 100 % 35,54 0,51 95 % 33,20 0,75 93 % TOTAL 10 103,15 10 103,15 – 203,75 100 % 9 837,36 6,81 97 % 9 065,09 431,25 92 % COTONOU A Envelope 430,57 430,57 – 3,02 100 % 418,60 6,42 97 % 392,61 20,55 94 % B Envelope 254,58 254,58 100 % 180,81 21,40 71 % 103,70 29,51 57 % Regional allocation TOTAL 685,15 685,15 – 3,02 100 % 599,41 27,82 87 % 496,30 50,07 83 % TOTAL ACP (a) 10 788,30 10 788,30 – 206,77 100 % 10 436,77 34,62 97 % 9 561,39 481,32 92 % OCT Total indicative programmes 39,65 39,65 – 4,26 100 % 36,60 0,10 92 % 33,82 1,66 92 % Total non-programmable aid 11,31 11,31 0,00 100 % 11,25 0,30 99 % 10,23 0,43 91 % Interest-rate subsidies 1,14 1,14 100 % 1,14 100 % 1,14 100 % Emergency aid Aid for refugees Risk capital 6,50 6,50 100 % 6,50 100 % 6,00 92 % Stabex 1,18 1,18 100 % 1,18 100 % 1,18 100 % Sysmin 2,49 2,49 100 % 2,43 0,30 1,91 0,43 TOTAL OCT (b) 50,96 50,96 – 4,26 200 % 47,85 0,40 94 % 44,05 2,09 92 % TOTAL (a) + (b) 10 839,26 10 839,26 – 211,03 100 % 10 484,62 35,03 97 % 9 605,45 483,42 92 %





Table 2.5

EDF aggregated accounts at 31.12.2007:

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 9th EDF

(EUR million) Appropriations Decisions Assigned funds Payments Agg. total Annual % Agg. total Annual % Agg. total Annual % (1) (2) (2): (1) (3) (3): (2) (4) (4): (3) ACP A Envelope 9 531,87 9 531,75 1 787,75 100 % 6 666,60 1 908,48 70 % 4 242,35 1 581,62 64 % Macroeconomic support 2 278,21 314,29 1 999,78 356,36 1 597,30 411,12 Sectoral Policies 7 253,54 1 473,47 4 666,82 1 552,12 2 645,05 1 170,50 B Envelope 1 308,64 1 308,64 252,87 100 % 869,32 222,91 66 % 650,65 182,87 75 % Compensation export earnings 170,17 50,53 116,70 25,84 90,27 28,12 Emergency aid 1 127,27 200,74 741,42 195,47 549,18 153,16 Heavily indebted poor countries 11,20 1,60 11,20 1,60 11,20 1,60 Regional Allocation 929,43 929,33 202,47 100 % 600,33 307,27 65 % 215,54 132,61 36 % Intra ACP Allocation 3 262,87 3 261,85 931,57 100 % 2 276,62 725,47 70 % 1 132,75 248,74 50 % Other 176,09 176,00 67,00 100 % 167,21 60,26 95 % 134,24 42,40 80 % Implementation costs 125,00 125,00 7,63 100 % 120,45 7,74 96 % 120,19 9,37 100 % Interest and other receipts 88,83 59,97 31,62 68 % 47,76 36,00 80 % 32,58 28,50 68 % Special allocation Congo 108,61 108,47 0,32 100 % 108,19 0,42 100 % 105,24 0,19 97 % Voluntary contribution Peace facility 39,17 39,17 39,17 100 % 37,01 37,01 94 % 29,22 29,22 79 % Transfers from 6th EDF 26,11 26,11 – 10,03 100 % 21,12 – 3,40 81 % 10,12 5,77 48 % TOTAL 15 596,61 15 566,28 3 310,35 100 % 10 914,60 3 302,15 70 % 6 672,87 2 261,29 61 % RESERVE INTRA ACP 1,02 TOTAL ACP (a) 15 597,63 15 566,28 3 310,35 100 % 10 914,60 3 302,15 70 % 6 672,87 2 261,29 61 % OCT A Envelope 250,16 232,30 106,27 93 % 118,87 10,92 51 % 76,38 30,88 64 % Macroeconomic support 14,64 4,00 10,52 8,52 8,52 Sectoral Policies 217,66 102,27 108,36 10,92 67,86 22,37 B Envelope 7,00 7,00 3,30 3,46 3,46 Regional Allocation 49,65 49,58 35,26 100 % 6,63 0,46 13 % 4,09 1,53 62 % Support expenditure 2,00 2,00 100 % 0,71 0,41 36 % 0,46 0,16 65 % Transfers from 6th EDF – 0,06 – 0,06 – 0,07 100 % – 0,06 – 0,07 101 % – 0,06 0,02 100 % TOTAL OCT (b) 308,75 290,82 144,76 94 % 129,61 15,18 45 % 80,87 32,60 62 % TOTAL (a) + (b) 15 906,38 15 857,10 3 455,11 100 % 11 044,21 3 317,33 70 % 6 753,74 2 293,89 61 %





Table 2.6

ANNUAL 2007 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual Decision 2007

(EUR million) Commitments Decommitments Net Lomé Grants 0,00 (192,24) (192,24) Total indicative programme 0,00 (192,24) (192,24) Interest-rate subsidies 0,00 (0,85) (0,85) Emergency aid 0,00 (0,22) (0,22) Aid for refugees 0,00 (5,46) (5,46) Risk capital 0,00 (52,12) (52,12) Stabex (interets) 6,18 (3,69) 2,48 Sysmin 0,00 (10,10) (10,10) Transfer from other funds 0,00 (4,82) (4,82) Structural adjustment 0,00 (16,60) (16,60) Total non programmable aid 6,18 (93,86) (87,69) Transfer from 6th EDF 0,00 (10,10) (10,10) Total 6,18 – 296,21 – 290,03 Cotonou A envelope 1 981,08 (90,07) 1 891,00 B envelope 295,63 (39,46) 256,17 CDE + CTA + joint assembly 67,00 0,00 67,00 Regional allocation 251,92 (14,19) 237,73 Intra acp allocation 946,45 (14,88) 931,57 Voluntary contributions peace facility 39,17 0,00 39,17 Special congo allocation 0,32 0,00 0,32 Use of interest/implem.costs 48,59 (9,35) 39,24 Total 3 630,15 – 167,95 3 462,20 Total 3 636,33 – 464,16 3 172,17





Annual Payments 2007

(EUR million) Paid Recovered (27) Net Lomé Grants 388,34 (26,91) 361,43 Total indicative programme 388,34 (26,91) 361,43 Interest-rate subsidies 1,47 (0,52) 0,95 Emergency aid 0,00 (0,15) (0,15) Aid for refugees 1,78 (0,47) 1,31 Risk capital 57,81 0,00 57,81 Stabex 98,37 0,00 98,37 Sysmin 23,39 (0,03) 23,36 Transfer from other funds 0,41 (0,02) 0,39 Structural adjustment 0,06 (0,04) 0,02 Total non programmable aid 183,28 (1,22) 182,05 Use of interest 0,75 0,00 0,75 Transfer from 6th EDF 6,66 (0,87) 5,79 Total 579,02 (29,00) 550,02 Cotonou A envelope 1 641,69 (8,63) 1 633,06 B envelope 217,15 (4,77) 212,39 CDE + CTA + joint assembly 43,43 (1,03) 42,40 Regional allocation 135,77 (1,63) 134,14 Intra acp allocation 234,83 (0,30) 234,52 Technical assistance — OCTS 0,16 0,00 0,16 Voluntary contributions peace facility 29,22 0,00 29,22 Special congo allocation 0,19 0,00 0,19 Use of interest/implem.costs 38,04 (0,17) 37,87 Total 2 340,49 (16,54) 2 323,95 Total 2 919,51 (45,54) 2 873,97

2.3. SITUATION BY COUNTRY AND BY INSTRUMENT

The tables are in Annex 2.

Notes to the management accounts:

— In the tables, the figure ‘0,00’ indicates that the corresponding amount is between EUR –4 999 and EUR 4 999.

Where no figure is given, the amount is zero.

Countries with a nil balance in all columns are not listed in the tables.

— The heading ‘All countries’ refers to projects which cover a number of countries but are not financed by regional cooperation.

— The heading ‘Financial and administrative expenses’ represents projects financed by EDF interest which have been transferred to a financial instrument (grants, Structural Adjustment Facility).

2.3.1. 7th EDF

In the first column of tables 3.2.1 and 3.2.2, the allocation for ‘Regional cooperation’ (EUR 1 081,31 million) comprises the following:

Commission's regional cooperation target (ACP states only) 1 125,00 Target overrun (5,92) Transfers from unallocated resources in order to finance the programme of assistance to ACP countries for integration within the WTO 67,90 Amount transferred to the general reserve during 2000 in accordance with the transitional measures 10,00 Amount transferred to the general reserve during 2001 in accordance with the transitional measures (8,50) Amount transferred to the general reserve during 2002 in accordance with the transitional measures (2,20) Amount transferred to the 9th EDF during 2003 following the entry into force of Cotonou (0,70) Amount transferred to the 9th EDF during 2004 following the entry into force of Cotonou (49,10) Amount transferred to the 9th EDF during 2005 following the entry into force of Cotonou (8,26) Amount transferred to the 9th EDF during 2006 following the entry into force of Cotonou (34,41) Amount transferred to the 9th EDF during 2007 following the entry into force of Cotonou (12,44) Total at 31.12.2007 1081,31

All the amounts of allocations correspond to the decisions, as the amounts not committed were transferred to the 9th EDF following the entry into force of Cotonou (Commission decision of 16 April 2003).

2.3.2. 8th EDF

In the second column of tables 1 and 2, the allocation for ‘Regional cooperation’ (EUR 1 374,31 million) comprises the following:

Commission's regional cooperation target (ACP states only) 1 300,00 Council Decision 3/2000 in order to ensure the continuity of several activities pending the entry into force of the 9th EDF 306,00 Council Decision 10/2001 of 20.12.2001 on the use of unallocated resources from the 8th EDF 180,70 In accordance with the transitional measures (68,00) Council Decision 3/2002 of 23.12.2002 on the use of unallocated resources from the 8th EDF 54,20 Amount transferred to the 9th EDF during 2003 following the entry into force of Cotonou (317,33) Amount transferred to the 9th EDF during 2004 following the entry into force of Cotonou (5,01) Amount transferred to the 9th EDF during 2005 following the entry into force of Cotonou (31,62) Amount transferred to the 9th EDF during 2006 following the entry into force of Cotonou (20,83) Amount transferred to the 9th EDF during 2007 following the entry into force of Cotonou (23,81) Total at 31.12.2007 1 374.31

All the amounts of allocations correspond to the decisions, as the amounts not committed were transferred to the 9th EDF following the entry into force of Cotonou (Commission decision of 16 April 2003).

2.3.3. 9th EDF

In all tables the presentation takes into account the financial resources (envelope A, envelope B and implementation costs) used and the nature of the project (macroeconomic support, sectoral policies, emergency assistance, etc.).

2.4. OTHER MANAGEMENT INFORMATION

Table 4.1.1

SITUATION CONCERNING ‘DORMANT’ COMMITMENTS

The tables below show, for each of the allocations of the seventh, eighth and ninth EDFs, the commitments for which implementation is slow. A commitment is considered ‘dormant’ or ‘slow’ if, in the course of the 24 months preceding the end of the financial year 2007:

— no new contract has been concluded

— no existing contract has been revised

— no payment or advance has been made.

Pre-2002 dormant projects (old RAL) are not included in the table.

Slow commitments are in three categories:

Projects which must remain open, projects to be closed, projects whose staus is not known.

The book values shown are the sum of the amounts committed but not paid, commonly known as the ‘RAL’.

For projects with a book value of over €1 million which must remain open even though apparently inactive or for which no evidence of their status has been obtained, certain comments appear in the notes below

Appropriations 7 8 9 Total Amount not paid against commitment Balance to be left open Balance to be closed Amount not paid against commitment Balance to be left open Balance to be closed Status unknown Amount not paid against commitment Balance to be left open Balance to be closed Status unknown Amount not paid against commitment Balance to be left open Balance to be closed Status unknown Programmable aid 0,10 0,07 0,03 0,45 0,00 0,11 0,34 39,46 37,39 1,31 0,77 40,02 37,46 1,45 1,11 Saf 0,00 0,00 0,00 0,00 Aid for refugees 1,80 1,21 0,59 1,80 1,21 0,59 Interest subsidies 19,67 16,24 3,43 19,67 16,24 3,43 Risk capital 0,20 0,20 37,98 37,98 38,18 38,18 Previous edfs 0,01 0,01 0,01 0,01 Grand total 0,30 0,27 0,03 59,91 55,43 0,70 3,77 39,47 37,39 1,31 0,77 99,67 93,09 2,04 4,54

Table 4.1.2

CLASSIFICATION OF ‘TO REMAIN OPEN’ DORMANT PROJECTS

1. Commission projects

(EUR million) EDF Country Project RAL 7 Angola Support for production of film ‘Comboio da Canhoca’ 0,07 Sao Tome Programme Of support for cultural initiatives 0,00 8 Eritrea Inf. programme to support refugees and internally displaced 0,73 Eritrea Inf. support for voluntary repatriation and reintegration 0,47 Burkina Faso Support for decentralised cultural initiatives — Phase 2 0,00 9 Benin Rehabilitation of flood-prone districts of west cotonou 20,00 Burkina Faso Capacity-building civil society organisations (PROS) 15,00 Togo 4th general census of population and housing 1,98 Centrafrica Support for democratic transition 0,30 Bahamas Technical Cooperation Facility (TCF) 0,07 Malawi Increase in ceiling 8 acp may 14, note 28571 of 24.12.2003 0,04 Total 38,67

2. EIB projects

(EUR million) EDF Country Project RAL 7 ACP TV DBT II global loan (8 TV 3) (22440, 22441) 0,20 8 ACP MAS Plaines wilhems sewerage project (21396) 7,46 ACP SW Seb iii maguga (22105) 7,00 ACP DO Financial sector gl ii a (21889) 4,51 ACP DO Financial sector gl ii b (21993) 3,44 ACP SLU Bank of st. lucia gl (21432) 3,00 ACP SW Motraco ii 1,75 ACP SLU Bank of st. lucia gl (21435) 0,84 ACP MOZ Motraco II 0,58 ACP CD Global loan financial sector (22120) 0,50 ACP ET Development of Bank of Ethiopia (DBE) GL II (22424) 25,00 ACP TV DBT II Global loan 0,15 Total 54,43

Table 4.2.1

UNFINALISED PAYING AGENTS' CASHFLOWS

Revenue and expenditure on paying agents' accounts still to be entered in the authorising officer's accounts at the end of 2007 (shown by beneficiary country).

(amounts in EUR '000) Country Total Total ACP states 1 216,92 BARBADOS 32,14 CHAD 5,23 CAMEROON 75,78 CONGO BRAZZAVILLE 39,76 DOMINICA 0,52 ETHIOPIA 0,74 GAMBIA 29,17 GUINEA BISSAU 119,62 GUINEA 21,81 MADAGASCAR 405,94 MALAWI 174,02 MAURITANIA 121,67 NAMIBIA 210,50 SAO TOME PRINCIPE 63,20 TANZANIA 41,60 UGANDA 7,93 Other ACP (regional, fed gpr.) 21,47 OCT 4,69 Total 1 221,61 Situation at 31 December 2006: 2 682,82 Annual change: (54,47 %)

Table 4.2.2

ADVANCES FOR STUDY AWARDS AND TECHNICAL ASSISTANCE CONTRACTS AT 31.12.2007

Advances are paid to Commission delegations and agencies in Member States administering study awards and technical assistance contracts on behalf of the Commission. These advances are cleared regularly, when expense reports are received, and replenished based on the volume of study awards and technical assistance contracts handled.

The amount of outstanding advances at the end of 2006 and 2007 respectively is shown below.

(amounts in EUR '000) 31.12.2006 31.12.2007 STUDY AWARDS 1 145,4 940,8 Commission Delegations 755,9 572,3 BURKINA FASO 46,9 CAMEROUN 30,7 0,1 IVORY COAST 133,0 106,5 JAMAICA 26,3 19,8 KENYA 41,5 1,8 LIBERIA 45,0 45,0 MAURITIUS 23,5 RWANDA 53,6 53,6 SENEGAL 43,1 43,1 TANZANIA 77,2 77,2 NIGERIA 78,7 78,7 ZAMBIA 28,4 28,4 OTHER COMMISSION DELEGATIONS 198,6 118,1 Member State agencies 389,5 368,5 FRANCE/CIES 0,8 7,2 GERMANY/INWENT 0,9 0,9 NETHERLANDS/NUFFIC 13,0 PORTUGAL/INSTITUTO DA COOPERAÇAO PORTUGUESA 50,3 50,3 UK/BRITISH COUNCIL 324,5 324,5 TECHNICAL ASSISTANCE* 437,2 436,2 AEC 437,2 436,2 Total 1 582,6 1 376,9

Table 4.2.3

ITALIAN CO-FINANCING

In 1985 the European Commission signed an agreement with the Italian Government providing for the co-financing of development projects managed by the Commission.

The agreement was regularly extended by means of exchanges of letters between the Italian Government and the Development Commissioner until 31 December 2004.

Then by written procedure E/1588/2004 the Commission took a decision on implementation of the co-financing framework agreement. The purpose of the decision was to lay down the budgetary and regulatory framework for commitments made under the agreement. The Commission decision accordingly provided that this co-financing should be implemented in accordance with the provisions of the EDF financial regulation. The decision empowered the EDF authorising officers by delegation or subdelegation to manage Italy's contribution to this co-financing. They were also empowered to determine the final date for its implementation in compliance with the relevant rules.

In accordance with Article 4, point 4 of the July 1985 agreement between the European Commission and the Italian Government, a provision confirmed in Article 3, point 3 of decision E/1588