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COM (83) 421 
 
 
 
Vol. 1983/0 157 
  
 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
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COMMISSION OF THE  EUROPEAN  COMMUNITIES 
COM(83) 421 final 
Brussels,  4 July 1983 
COMMUNICATION  FROM THE  COMMISSION  TO THE  COUNCIL 
ON THE IMPLEMENTATION  OF COMMUNITY AID TO THE ACP  STATES AND THE 
OCT AND OD:  SITUATION  AT 31 DECEMBER  1982 
COM (83) 421 final 

INTRODUCTION 
I. Rate of implementation 
A. Financing agreements 
B. Financing contracts 
B.1.  Resources administered by the Commission 
B. 2. Resources administered by the Bank 
C. Invitations  to tender 
C. 1. Resources administered by the Commission 
C.2.  Resources administered by the Bank 
D. Contracts and disbursements 
II. Incidence on  project  costs of the movements of ACP currencies 
A. Resources administered by the Commission 
B. Resources administered by the Bank. 
III. Implementation  problems 
A. Resources administered by the Commission 
B. Resources administered by the Bank 
IV. Control and inspection 
A. Commission Delegations 
B. Financial Control 
C. The Court of Auditors 
D. Management of Bank operations 
V. Difficulties in recovering loan repayments 
A. Causes  of the difficulties 
B. Action which can be taken 
C. Loans  from  own resources 
D. Risk capital operations 
E. Loans on special terms 
VI. Closure of operations 
A. Fourth EDF 
B. Fifth EDF 
CONCLUSION 

1 . 
This  report on the implementation of Community aid to the ACP States 
and OCT is the  third  such report presented to the Council in respect 
of the  fourth  EDF  (1),  and the  first  in respect of the  fifth  EDF, 
pursuant to Article  25(4)  of the  Internal  Agreements on the financing 
and administration of Community aid  (first  and second  Lomé  Conventions 
and 1976  and  1980  Decisions on the OCT). 
This  report covers  1981  and  1982,  which saw the end of commitments under 
the fourth  EDF and the start-up of operations under the  fifth  EDF. It 
is the  first  report to be submitted  jointly  by the Commission and the 
European  Investment Bank. 
This  is the  first  time the Bank, in compliance  with  the relevant legislation, 
has been involved under the  Lomé  Convention in the drafting of  à communication 
on the implementation of the aid it administers. The Bank has framed its 
contribution so as to avoid going over ground already covered in the report 
transmitted to the Council pursuant to Article  119  of the second  Lomé 
Convention and also to conform to the obligation of confidentiality imposed 
on it by the regulations governing its activities as the Community's 
long-term financing institution. 
The Commission likewise has taken care not to cover ground dealt  with 
elsewhere,  in particular in the report to the  ACP-EEC  Council of Ministers 
on the administration of financial and technical cooperation (Article  41 
of Lomé  I and Article  119  of Lomé  II) and the report to the Council on 
improvement of the terms of competition (Article  43  of the Financial 
Regulation applicable to the  fourth  EDF and Article  44  of the Financial 
Regulation applicable to the  fifth  EDF). For the same reason, the Commission 
refrains from going  into  details of the way in which recipients have 
used  the aid, since the Council is kept regularly up to date on the work 
of evaluation undertaken by the Commission departments concerned. 
In the  light  of the above, the aim in the present report has been to analyse 
six aspects of the way in which Community aid under the EDF has been 
implemented: rate of implementation, the incidence on project costs of 
the movements of ACP currencies, problems in recovering loan repayments, 
implementation problems, control and inspection and the closing of 
ope rations. 
(1) Previous reports in C0M(80)107 of  24  April  1980  and C0M(81)825 of 
11 January  1982 . 

2. 
I. RATE  OF  IMPLEMENTATION 
A. FINANCING  AGREEMENTS 
1 . The figures 
a) For the two years covered by this  report  the figures for the signing 
of financing agreements break down as foLLows: 
Fourth EPF  Fifth EPF 
Number  of agreements 94 152 
Amount in million ECU 275 739.8 
As far as the  fourth  EDF is concerned,  that  brings the  total  number 
of financing agreements signed since the  entry  into  force of 
Lome  I to 650, representing aggregate commitments of approximately 
1 .900m ECU. 
b) In all then, 246 financing agreements were signed in 1981 and 1982, for 
a total  of about 1 .015m ECU, which is an average of 10 agreements a 
month and approximately 4m ECU per agreement (1). The average value 
per agreement works out higher for the  fifth  EPF, at 4.9 m ECU as 
opposed  to 2.9m ECU for agreements under the  fourth  EDF. It is also 
higher than the average over the  first  33 months of implementation of 
the fourth  EDF (3.3m ECU), noted in the  first  report. 
2. Assessment 
a) These figures suggest  that  the  fifth  EDF has got off to a quicker 
start  than its predecessor. 
(1) A clear idea of the scope of the  work  done by the relevant Commission 
department can be gained  from  the fact  that,  in addition to the 
financing agreements for ACP States and OCT, it had in the period 
under consideration to prepare 34 financing agreements under Maghreb/ 
Mashreq  cooperation arrangements  (total  value 190m ECU) and 60 
financing agreements  with  non-associated developing countries 
(272m ECU). 

3. 
This  is primarily owing to the new ACP States' better grasp of 
EDF procedures, which has made it possible to get larger-scale 
projects under way  from  the outset. This is particularly 
noteworthy in  that  since the  fifth  EDF came  into  force, financing 
agreements have been needed for the smaller types of operation 
(micro-projects, trade promotion,  training)  which used to be covered 
by a simple exchange of letters. 
b) The tendency to make more use of the  written  procedure, whereby the 
document is  first  signed by the appropriate Member of the Commission 
and then simply forwarded for signature to the competent ACP  authority 
(usually the Ambassador in Brussels), continued in the period under 
review. In the whole of the two years only two agreements were signed 
by the "formal" procedure (as against 119 in 1976-78 and 20 in 1979-80). 
c) The rate at which agreements were signed remained close to the average 
for the previous period, i.e. about ten a month (see above). There are 
still delays  with  island ACP States which have no ambassadors in 
Brussels,  and  with  regional projects, which by definition involve 
several  ACP States. 
B. FINANCING  CONTRACTS 
1 . Resources administered by the Commission 
The first  and second Lome Conventions made the Commission responsible for 
drawing up and negotiating financing contracts,  with  the European 
Investment Bank in charge of recovering loans. 
At 31 December 1982 the Community had taken commitment decisions on special 
loans  to ACP States and overseas countries and territories to a  total  value 
of 429m ECU under the  fourth  EDF and 98m ECU under the  fifth  EDF. The 
commitments were reflected in the signing of 123 financing agreements under 
the fourth  EDF and 13 financing agreements under the  fifth  EDF; a  further 
three are about to be signed. 

4. 
As regards the financing contracts corresponding to these commitments, 
106 and 1 respectively have been signed for aggregate sums of 383m ECU 
and 770 000 ECU. Of the additional 16 contracts drawn up at 
31 December 1982, 3 were signed in the  first  few days of 1983; the signing 
of the others has been delayed either, in the  light  of the payment 
schedule,  to avoid starting the grace period too early, or for reasons to 
do with  the borrower (the reorganization of semi-public bodies, or difficulties 
with  project implementation). 
The period under review bridged the transition between the  fourth  and 
fifth  Funds,  which inevitably brought about a fall in the number of 
contracts concluded.  Since  mid-1982, however, there have been signs 
of a  return  to "cruising  speed"  at a rate of about 35-40 contracts a year 
under the  fourth  EDF. 
As regards the implementation procedure for financing by means of special 
loans,  shortcomings in recipient countries' administrations have increasingly 
led the Commission,  often  at the borrowers' own request, to use a system 
of direct payments to the creditor firms instead of the more normal method 
of routing  payment via the borrower. 
2. Resources  administered by the Bank 
Since  the  entry  into  force of the second Lome Convention on 1 January 1981, the 
Bank  has concluded 68 contracts, to a  total  value of 366m ECU. The financing 
contracts for several large operations approved in financial 1982 had still 
not been signed by 31 December 1982, generally because the borrowers were 
late in carrying out the legal formalities and other preliminaries to the 
conclusion  of contracts, even though the contracts had been negotiated 
and agreed on when the operations were planned and submitted to the Bank's 
decision-making  bodies. 
The Bank granted 28 loans  from  its own resources for a  total  sum of 280.000m ECU, 
and undertook 40 risk capital operations  totalling  85.4m ECU. 
Without offering any detailed forecast of the rate of implementation of the 
Bank's  share of financial and technical cooperation operations under Lome II— 
-in any  case,  the aid administered by the Bank is not subject to quotas 
allocated  by year or recipient country-the level of commitments over the 
first  two years of application of the Convention suggest  that  the Bank 
should  be able to discharge its task and achieve the objectives set out 
in the Convention. 

5. 
C. INVITATIONS  TO TENDER 
C.1.  Resources  administered by the Commission 
.",L. the beginning of 1983 the Commission, pursuant to Article 43 of the 
Financial  Regulation applicable to the  fourth  EDF (1), sent the Council 
details  of measures to improve competition for participation in contracts, 
particularly as regards the provision of information, and certain considerations 
on the role of competition in the  light  of the 1981 figures. 
What follows is intended purely as a supplement to the January report, though 
some  of the information has been updated. 
1. International invitations to tender 
A total  of 204 invitations to tender were issued in 1981-82, for an aggregate 
(1) Report from the Commission to the Council on measures taken or proposed 
in order to improve the terms of competition for participation in 
EDF-financed  contracts  (C0MC83Î5  of 13  January  1983). 

6. 
value  of 637.2m ECU (1). The figures break down as follows: 
Fourth EDF Fifth EDF 
No. of invitations Amount 
(ECU) No. of invitations Amount 
(ECU) 
Works 
1981 
1982 10 
9 92 .851 ,000 
47 637 000 9 
15 72 .120 000 
156 689 000 
Supplies 
1981 
1982 59 
39 43 406 549 
76 104 350 9 
53 14 788 269 
128 615 300 
Studi  es 
1982 
Total 1 
117 259 998 899 87 5 000 000 
377 212 569 
a) The number and aggregate value of invitations to tender for the  fourth  EDF 
are slightly down on the comparable figures for 1979-80, though the average 
value  of individual invitations to tender is slightly higher. This reflects 
the characteristic beginnings of a slowdown towards the end of a 
particular  Fund,  compared  with  the "cruising  speed"  attained in the period 
1978-81 . 
b) The figures for the  fifth  EDF reflect the opposite "start-up" pattern. 
Compared  with  the  first  33 months of the  fourth  EDF, in the  first 
24 months of the  fifth  EDF - i.e. a period shorter by 27% - the number 
of invitations to tender was down 35% and their value down 18%. This 
suggests  that  over a comparable 33-month period the value of invitations 
to tender could be slightly higher under the  fifth  EDF, particularly 
since  the average value of individual invitations to tender is higher, 
at 4.3m ECU compared  with  3.4m ECU under the  fourth  EDF; this is a 
reflection of the larger-scale works put in hand in the start-up period 
of the  fifth  Fund. 
:(1) Over the same period, a  further  94 international invitations to tender 
were also issued for the Maghreb and Mashreq countries and the non-
associated  developing countries. 

7. 
2. The role of competition 
The Commission here takes the opportunity of updating to 31 December 1982 
the information contained in the  full  report on terms of competition 
already  mentioned. 
The relative importance of international invitations to tender and the 
various closed procedures (restricted invitations to tender, mutual agreement, 
direct labour etc.) is shown below: 
Fourth EDF Fifth EDF 
31 .12.81 31 .12 .82 31 .12.82 
1 . All contracts 
- international 
- closed 69,5  % 
30,5  % 67,9  % 
32,1 % 69,2 % 
30,8 % 
2. Works 
- international 
- closed 72,5  % 
27,5  % 71 % 
29 % 72,6 % 
27,4 % 
3. Supply 
- international 
- closed 61,3  % 
38,7 % 59,8 % 
40,2 % 57 % 
43 % 
As the table shows, the order of magnitude of the figures varies  little  from 
one Fund or period to another, indicating  that  there are certain constants 
governing the breakdown between the two  classes  of procedures for awarding 
contracts. That confirms the conclusions set out in the Report presented 
pursuant to Article 43, viz: 
- the international invitation to tender procedure is still wery much the 
rule for works contracts, the exceptions being largely where direct labour 
is used; 
- in the  case  of supply contracts, exceptions to the international invitation 
to tender procedure are more frequent,  with  significant use made of the 
restricted invitation to tender and mutual agreement procedures. 

8. 
3. Results of competition 
3.1.  As regards the  fourth  EDF, the situation at 31 December 1982 was 
not fundamentally  different  from  that  at 31 December 1980 (see 
Annex  1). 
a) In terms of overall performance (all contracts) the greatest gain 
recorded since 1980 was the United Kingdom's  1.14%;  the other 
countries gained or lost less than 1%. 
b) For works contracts alone the most marked improvement (up by nearly 
2%) was shown by the  ACP-OCT,  which have been gaining steadily since 
the beginning of the  fourth  EDF; this suggests  that  measures to 
encourage  participation by local undertakings have borne  fruit. 
Germany  has also slightly increased its share since 1978; Belgium 
and France, on the other hand, have lost a  little  ground. 
c) For supply contracts the marked (3.65%) fall in  Italy's  share was 
matched by the 3.45% rise in the United Kingdom's share; a similar, 
though smaller,  shift  contrasted Germany (down  1.03%)  and France 
(up 1 .73%). 
d) Germany made up for its declining share of supply contracts by a 
1 .92% rise in its share of technical cooperation contracts, for 
which it now leads the field; the  ACP-OCT  share declined by 1.41%. 
3.2. Turning to the  fifth  EDF (see Annex 2), the position at 31 December 1982 
represents the  first  set of yearly statistics available for this  Fund. 
a) Overall, the  ACP-OCT  achieved a share equivalent to their  fourth  EDF 
performance (around 30%), as did France, more or less (approximately 
22%);  Germany, on the other hand, unlike the United Kingdom and  Italy, 
is doing markedly better under the  fifth  EDF. 
b) As regards works contracts, the ACP continue to take the largest share 
(nearly 45%), ahead of France -  with  a smaller share than it managed 
under the  fourth  EDF - and Germany which, on the strength of a big 
contract in  Mali,  forged ahead in 1982; the United Kingdom, on the 
other hand, is still managing only a very small share. 

9. 
c) As regards supply contracts, a certain balance seems to have been 
achieved  between the United Kingdom and Germany, at around 20% and 
between France and  Italy  (approximately 17%). Two of the smaller 
Member  States are achieving encouraging results - the Netherlands 
with  14%, and Ireland  with  nearly 9%. 
d) For technical cooperation contracts the situation is broadly the 
same  as under the  fourth  EDF, apart  from  France's marked improvement 
(28%) and the decline of the  ACP-OCT  share (7%). 
C .2 .  Resources  administered by the Bank 
As a rule the Bank insists  that  the tendering procedure for projects or 
part-projects which it helps finance in the ACP countries should be as open 
as possible. The most appropriate procedure for each project, whether 
an international  invitation  to tender or consultation, or a purely 
national  invitation  to tender, is decided by agreement  with  the project 
authority,  taking  into  consideration the type of project and any 
requirements under co-financing agreements. 
International  invitations to tender are open at least to Member States' and 
AC? countries' firms. The Bank is also willing to help finance tenders by 
firms  from  countries in which it is able to borrow the ":unds it needs for 
its activities or, in specific  cases,  from  countries which in its opinion 
offer obvious technical or geograp vical advantages for a particular project. 
Where  the international  invitation  to tender procedure is used the Bank 
published  a notice in the Official Journal. 
An international consultation must involve a minimum of three suitably 
qualified contractors or suppliers  from different  Bank member countries. 
The Bank reserves the  right  to monitor and approve tendering procedures, 
particularly as regards prequalification of firms, the preparation and 
content of the  invitation  to tender dossier, appraisal of tenders and award 
of contracts. 
The relevant Bank consultative and decision-making bodies (the Article 22 
Committee and the Board of Directors respectively) are notified concerning 
the use of the above procedures for each project. 

10. 
Bank  directors also receive advance information, in their personal capacity, 
about projects under appraisal which it is anticipated  will  give rise to 
an international  invitation  to tender. 
D. CONTRACTS  AND  DISBURSEMENTS 
1. The commitment/disbursement pipeline 
1.1. Fourth EDF 
a) Situation at  31 .12 .1982 
- P_H_rnary_ £0£mj_tm_ent^ (financing decisions) for all the ACP States 
and OCT amounted to 2 974m ECU, an increase of 8.9% during the 
1981-82  period. 
- jSecj3nda_ry_  £omm_itmients_ (conclusion of contracts) entered  into  under 
those decisions totalled 2 606m ECU, up 28,3% on the figure for 
end 1980. 
- Disbursements totalled 2 173m ECU, up 49.3%  from  the 1980  level. 
The rate of increase is obviously  less  spectacular than in  1979-80  (the 
comparable  figures for  that  period were  + 65%, +  106& and  + 154%^,  and 
is typical of a period in which commitments are nearing their final level 
(see  next paragraph) while disbursements are still going on at a steady 
rate; the volume of disbursements in  1981-82  (718m ECU) was much the same 
as in 1979-80  (882m ECU) . 

11 . 
b) Commitment position at 31.12.1982 
- The average level of commitments in respect of  fourth  EDF indicative 
programme at end 1982 was  95.1%.  In 44 ACP States the actual level 
was around  that  figure; in a  further  seven it was between 80% and 
90%,  so  that  the level of commitments in respect of indicative 
programmes was over 80% in 86% of ACP States. There are only three 
countries (Dominica, St.  Lucia  and Suriname) in which the level is 
sti 11 under 50%. 
Analysis  of the commitment figures for indicative programmes over 
the whole  fourth  EDF period  from  1976 onwards shows  that  while in 
countries where a major project was predominant (Rwanda, Congo and 
Liberia) the rate was exceptionally high  from  the outset, in general 
the 50% mark was reached at the end of 1978 and the 80% mark  from 
1980 onwards. 
At end 1982 the primary commitment/secondary commitment  ratio 
was 87.6%, as against 74.4% at end 1980. Looking at secondary 
commitments for projects alone, however, excluding operations 
giving rise to a single secondary commitment (Stabex transfers, 
risk capital operations and interest rate subsidies), the  ratio 
falls to 84.8% as against 68% at end 1980. 
- Disbursements represented 73.1% of  total  primary commitments, 
compared to 53.3% at end 1980. Subtracting the payments made under 
expedited procedures (1), gives a figure of 67.5% as against 
45.9%  at end 1980. 
It is noteworthy  that  at end 1982 the level of disbursements for 
34 ACP States (58% of all  ACPs)  was above the average; many of 
them are already beyond the 70% mark.  Seven  countries (12% of  ACPs) 
are, however, still below the 50% mark. 
- Disbursements stood at 83.4% of secondary commitments (79.6% taking 
the narrower criterion) as against 71.6% (67.5%) at end 1980. 
(1) At end 1980 Stabex payments were at 100% of commitments, risk 
capital payments at 82.5% and interest rate subsidies at 97%. 

12 . 
1 .2. Fifth  ED  F 
a) The following levels were recorded at 31 December 1982: 
- primary commitments: 1 448m ECU 
- secondary commitments: 721m ECU 
- disbursements: 461m ECU 
b) Commitment position 
- The average Level of commitments in respect of indicative 
programmes at end 1982 was approximately 30%. Above-average 
levels  were achieved by 28 countries (46% of all  ACPs); 
13 countries were over the 50% mark and two, Western  Samoa  and 
Saint  Vincent, over the 80% mark. On the other hand, in 
11 countries (18% of  ACPs)  the level was below 10%. 
- The secondary commitment/primary commitment  ratio  was 49.8% overall 
and 30.6% for projects alone; the corresponding figures after the 
first  33 months of the  fourth  EDF (1978) were 59.6% and 44.3% 
respec  t i ve Ly. 
Disbursements  stood at 63.9% of secondary commitments overall 
(58% in 1978) and 37.4% for projects alone (45.5% in 1978); the 
figure for Stabex was 100%, for interest rate subsidies 96.4% 
and for risk capital 26%. 
2. Measures taken to spaed up payments on supply contracts 
Cases  of delay in payment having been brought to its notice by its own 
departments or the suppliers concerned, the Commission reviewed the 
system  of payments in force for supply contracts. The improvements 
introduced at the beginning of 1982 are of three kinds. 
a) Reduction in the number of payment instalments 
The original system provided for payment in four instalments: 
30% with  the order, 30% on shipment of the supplies, 30% after 
provisional acceptance and 10% after final acceptance. 

13. 
As experience has shown  that  the overwhelming  majority  of suppliers 
are scrupulous in  fulfilling  their obligations regarding the shipment 
of goods, the  first  two instalments have been merged  into  a single 
60% payment due when the authorities sign the contract. 
This  also simplifies matters for the Commission, since most supplies 
come  from  Europe and Commission departments consequently had the task 
hitherto  of directly authorizing and effecting payment of the  first 
two instalments. 
A security for the  full  amount of the advance for the 60% instalment 
is required as a guarantee. 
The new system has succeeded in speeding things up, particularly in 
the case  of simple supply contracts where no guarantee period is 
involved,  as there is  just  the single acceptance and therefore only 
two payment instalments: 60% when the order is signed and 40% on 
ac ceptance. 
b) Speeding up the acceptance process 
Acceptance  formalities whether provisional or final, have been 
unsatisfactory in not a few  cases  with  repercussions on the 
subsequent  stages of the payment procedure. 
To solve this problem, which is to a great extent due to the 
negligence  of the local administrative authorities, the Commission 
has asked its Delegates to make every  effort  to see  that  acceptance 
takes  place  within  the period specified in the  invitation  to tender 
documents.  Where the authorities are manifestly failing to do 
what  is necessary, the Delegate has  further  been asked to take steps 
himself to see  that  a payment order goes to the national authorizing 
officer as quickly as possible. 
c) Better monitoring of guarantees . 
Difficulties have also arisen regarding compliance  with  certain 
guarantee conditions; the originals of guarantee documents sent 
direct to the authorities in recipient countries have sometimes 
been  lost. 

14. 
To improve matters the Commission has decided  that  once its 
departments have paid the  initial  60% instalment, the supplier's 
security should be sent to the authorities concerned via the Delegate, 
who has been asked to keep a special record of the operations. The 
Delegate has also been asked to take particular care to see  that 
securities are released as soon as possible after completion of 
the acceptance formalities. In return, it has been made simpler 
for the ACP authorities to get an extension of the validity of 
securities. 
The new measures have now been in operation for a year and are 
beginning to make an impact; they have contributed to the 
improvement noted in the rate of disbursement. 

15. 
II. INCIDENCE  ON  PROJECT  COSTS  OF THE  MOVEMENTS 
OF ACP  CURRENCIES 
The dollar's rise against the ECU since mid-1980 has meant  that  the currencies 
of many ACP countries which declare parities against the dollar or the SDR 
have  also appreciated, comparing the most recent rates  with  those prevailing 
from  1978  to 1980,  when the dollar was very weak. 
A. RESOURCES  ADMINISTERED  BY THE  COMMISSION 
1. The Commission departments concerned have been giving  thought  to what 
this appreciation of ACP currencies is likely to mean in terms of cost 
overruns in ECU when the final bill for EDF operations comes in. 
They  have carried out a study of the 57 ACP currencies listed by the IMF, 
classified  in the six major groupings used by the IMF. In the EDF context, 
with  several years elapsing between approval of a project and the final 
expenditure, comparisons based on a six-month or twelve-month period are 
of limited significance. 
Accordingly,  the Commission departments traced the movement of ACP exchange 
rates against the ECU back over a period of more than six years, to the 
entry  into  force of the  first  Lome Convention on 1 April 1976. 
The study provides the basis for a number of general conclusions. 
a) First, the ECU has held up remarkably well over the six years. Admittedly, 
at the beginning and end of the period a number of the ACP currencies were 
above  it, but in the intervening period - for as much as four years - all 
but one of the ACP currencies were below the ECU. 
b) Secondly, declaring parity against the dollar or the SDR is one thing, 
maintaining it is another. Looking at the respective economic situations 
of the  different  groups of countries, in particular their inflation rates, 
one wonders whether the ACP currencies currently above the ECU are likely 
to stay there long. 

16. 
c) Finally,  from  the  point  of view of  assessing  the likelihood of cost 
overruns on EDF-financed projects, the problem currencies are those 
which fluctuated significantly in-opposite directions during the 
lifetime  of Lome I,  first  falling and then rising. There are about 
25 such currencies. 
In this connection two points should be made: 
None  of the situations is critical. The currencies have not 
appreciated disproportionately and the rise is in many  cases  offset 
by the earlier considerable ECU savings achieved when the dollar 
was so weak. 
However,  we should not be too complacent.  Even  though the dollar has, 
in the natural course of things, more or  less  settled down, projects 
were approved on the basis of estimates worked out when it was at 
rock-bottom; actual expenditure  will  be on the basis of a stronger 
dollar. The question is whether the dollar  will  continue stable, 
whether it  will  start  to rise again, or whether there may even be 
a depreciation, either because the dollar stinks to a  less  artifically 
inflated level or because the ACP currencies declared against the 
dollar have to sever the link. 
2. In the present economic situation it would be risky to forecast the 
outcome; the continuing danger of overruns calls for a cautious approach. 
For that  reason the Commission departments  took  the view  that  movements 
of ACP currencies against the ECU should never in themselves be regarded 
as grounds for increasing the  initial  appropriations. 
Cost  overruns are probably best handled on a  case-by-case  basis.  But 
the Commission feels  that,  generally speaking, where currency movements 
lead  to cost overruns in local currencies because expenditure expressed 
in those currencies is effected when the rate of exchange is  less  favourable to 
the ECU than when the estimates for the project were worked out, then the 

17. 
clause  in the financing agreement requiring the recipient country 
to bear the cost should be strictly applied. 
Where  cost overruns are independent of the rate of exchange of the 
local  currency, on the other hand, they can be accepted on the usual 
terms, i.e.  within  judicious limits. 
B. RESOURCES  ADMINISTERED  BY THE  BANK 
The Bank broadly agrees  with  the Commission's analysis and for its own 
part  insists on the  strict  application of the clause in all its contracts 
which stipulates  that  recipients shall bear the cost of or finance all 
project cost overruns. To date, notwithstanding a number of very  difficult 
and protracted  cases,  this requirement has been almost  totally  met and 
projects financed have been or are being completed  without  fresh recourse 
to the Bank. 
However,  among risk capital operations there is one special  case,  of 
purely limited signficance, namely where funds are denominated in ECU 
and made available to an ACP State to enable it to finance the 
acquisition of a stake denominated and redeemable in the local currency 
in an industrial company or development bank. If there is a major upward 
parity movement by the local currency against the ECU between the 
conclusion  of the financing contract and the  time  when the recipient 
subscribes  the funds, then the borrower may have to make up the shortfall 
in the financing provided by the Bank. In the opposite event, or once 
the original sum in local currency has actually been subscribed, the 
balance,  if any, of the financing in ECU is cancelled. 

18. 
III. IMPLEMENTATION  PROBLEMS 
A. RESOURCES  ADMINISTERED  BY THE  COMMISSION 
The main difficulties encountered in the implementation of projects and 
programmes financed out of Commission administered funds were analysed 
recently in preparation for a meeting of the Article  108  Committee set up 
under  Lomé  II, when a number of specific  cases  were examined by the Council's 
joint  ACP-FIN/ACP  Working Party  (1). 
The Commission does not propose in this report to go over the same ground again, 
as the full  analysis is contained in the Council document  (2).  It confines 
itself here to summarizing the main points made, viz: 
1. Holdups can occur at any stage of a project, from the preparation of the 
indicative programme to completion and entry  into  service; many of the 
delays  are attributable to the system of  joint  management of projects by 
the Commission and the recipient countries. In addition to the specific 
point already dealt  with  concerning the signing of some financing agreements, 
we would draw attention to delays by some ACP States in the signing of 
contracts (which incidentally are often not well drafted) and the frequent 
slowness  of payment procedures. 
2. Some of the implementation problems which arise may be inherent in the project 
itself or the sector concerned. In particular, this happens  with  many 
agricultural projects, which may involve problems of pricing policies or 
land ownership, while integrated rural development projects may have 
over-ambitious goals. 
3. Getting the money spent quickly is not in itself enough to ensure  that  a 
project runs smoothly; speed is not an end in itself, and the most important 
thing is to design viable projects  within  the limits of the resources 
available.  Nevertheless, it has to be borne in mind  that  needless delays 
(1) Council document No.  4994/83  of 17  February  1983... 
(2) See also the conclusions of the Commission's  first  report under Article  25 
of the  Internal  Agreement (COM(80)107 of  24  April  1980). 

19. 
are extremely expensive, as inflation inexorably erodes the value of 
the sum allocated. 
B. RESOURCES  ADMINISTERED  BY THE  BANK 
Obviously,  the projects financed in the  first  two years of Lome II alone 
provide  little  in the way of experience on which to base any significant 
conclusions  about the way in which Bank aid to the ACP States is being 
used.  It is therefore advisable, though going beyond the legal terms of 
reference, to draw on the experience of projects financed for those 
countries before Lome II. 
It should be noted  that  the problems arising  with  projects financed by 
loans  from  the Bank  differ  in kind  from  those which occur in connection 
with  the sum of grant-financed projects, and show up earlier, as the Bank 
is dealing  with  projects in productive sectors in which financial management, 
very  often  independent, calls for balancing of resources and expenditure, 
the latter  including debt servicing. 
Such  projects, highly sensitive to the  trend  of the domestic or 
international economic climate and dependent on the provision of  basic 
supporting infrastructure or back-up measures, are particularly 
vulnerable. 
The unsatisfactory progress of some projects, where performance has fallen 
technically, financially or economically well short of the specifications 
or targets indicated at the appraisal stage, can ger.erally be  attributed  to 
the worsening economic and financial situation of most ACP States, though 
also  domestic policy considerations. Sometimes the  causes  may also be 
sought in the poor organization(or inefficient management of the enterprise. 
Where projects financed by the Bank (usually  with  other international 
organizations or Member States' bilateral aid) have been  difficult  to 
complete or operate, the following factors may be singled out as having 
a detrimental effect: 
a) stalled or delayed government decisions on price rises (despite specific 
undertakings given to the Bank) in connection  with  the production of 
cement in West Africa or sugar in  Kenya  and Malawi, for example; 

20. 
b) government delays in carrying out planned and contractually promised 
back-up  infrastructure projects  (textile  project in the Sudan and 
tourist  project in Malawi); 
c) delays in payment, or even cancellation, of contributions or subsidies 
from  the national budget  (textile  and transport projects in  Ivory  Coast, 
textile  project in Tanzania); 
d) excessive taxation in breach of agreements (mining projects in Zaire 
and Mauritania); 
e) failure to comply  with  undertakings on covering foreign exchange 
requirements (projects in Zaire and Tanzania); 
f) severe political upheavals, as in  Chad; 
g) management structures or technical assistance which are unsuitable or 
unable to function for political reasons (several countries). 
It is the Bank's constant endeavour, by repeated representations to the 
borrowers concerned and to the highest government authorities, in close 
collaboration  with  the other co-financing bodies, to secure compliance 
with  undertakings and see  that  practical measures are taken to improve 
the situation and if possible establish, satisfactory conditions for the 
implementation and operation of projects. 
In most  cases  adequate solutions have been found  within  the terms of the 
contract but some  difficult  cases  may require constant representations and 
supervision,  which may even lead to proposals being put to the Bank's 
decision-making  bodies for action to be taken. 

21 . 
IV. CONTROL  AND  INSPECTION 
A. COMMISSION  DELEGATIONS 
1. Change in the status of the EAC 
Following the detailed studies carried out by an ad hoc Commission 
group of experts, as requested by the Permanent Representatives 
Committee on 9 January 1980, the Commission's proposal for the 
creation of a European Agency for Cooperation as a body acting in 
conformity  with  Community public law was,after Parliament had been 
consulted,  duly adopted by the  Council.  (1) 
Under  Articles 13 and 14 of the Council Regulation, it is for the 
Commission  to adopt the necessary implementing measures for the 
Agency's  administrative and financial arrangements and the terms of 
employment for its  staff. 
Interdepartmental groups composed of representatives of the various 
DGs concerned were set up to  draft  the necessary provisions. 
Article 12(2) of the Council Regulation provides for the setting-up 
of a single Committee composed of representatives of the governments 
of the Member States ; the Committee must give its opinion on the 
draft  terms of employment before they are finally adopted by the 
Commission  and is also empowered to examine the Agency's  draft  estimate 
of revenue and expenditure. 
The draft  financial arrangements for the Agency are already undergoing 
the various consultation procedures necessary prior to their adoption. 
The terms of employment for agency  staff  are still at the  drafting 
stage ;  initial  informal consultations  with  representatives of overseas 
staff  have provided an opportunity to explain the principles which 
will  be followed and hear all parties' views, concerns and desiderata 
regarding the effects of the change of status. 
The Agency  will  only really come  into  being once the various texts 
have been adopted and the consultation procedures are complete. 
(1) Council Regulation (EEC) N° 3245/81, 26.10.1981 (0J N° L 328, 16.11.1981) 

22. 
2. The Commission's delegations in the ACP countries 
a^ §i.Sii_L§££yit[nSDt_a.Dd_!I!a.Da.2S!!!?n£ 
Since  the previous  report  (end 1980) the number of delegations 
has risen  from  42 to 45 : 
1°) a  fairly  large delegation opened in Zimbabwe in March 1981 
following the country's independence ; 
2°) at the beginning of 1982 the delegation in Maseru (Lesotho), 
which had been dealing  with  the three southern African states 
of Botswana, Lesotho and  Swaziland,  was divided up  into  three 
independent delegations. The former arrangement had given rise 
to operational difficulties at the political level and in 
general. 
Six new sub-delegations also opened in 1981 : Tonga, Western  Samoa, 
Solomon  Islands,  Belize,  Seychelles and Equatorial  Guinea.  This is 
in pursuance of a policy enshrined in Article 123 of the second Lome 
Convention,  which makes express provision for the appointment in each 
ACP State of a deputy to represent the accredited Delegate when the 
latter  is not resident on the spot. 
The number of expatriate  staff  in the ACP and OCT delegations has 
increased,  but not much ;  from  the 1980 level of 235 to only 248 at 
end 1982, despite the extra workload. 
The reassignment of all expatriate  staff  (normally every four years) 
and the necessary recruitment continue to be dealt  with  systematically 
in accordance  with  arrangements  that  are  both  rational and economical. 
b) Management of property 
- Property purchase or building in ACP countries 
The final authorization to spend 4 000 000 ECU on buying or 
building property in ACP countries was given by the Commission 
on 23 July 1980 after the EDF Committee had given its opinion 
on the  oroDOsal. 

23. 
A working party on buildings, composed of DG  VIII  officials and 
EAC staff,  has been instrumental in having the following 
transactions completed : 
1. Purchase of a factory-built house in Praia (Cape Verde) as a 
residence  for the head of the sub-delegation. Cost : 134 000 ECU. 
2. Purchase of a building for the delegation's offices in Kigali 
(Rwanda). Cost : 80 000 ECU. 
3. Purchase of a building in Port Moresby (Papua New Guinea) as 
the Delegate's residence. Cost : 494 000 ECU. 
4. Purchase of a site in Gaborone (Botswana)  with  a villa for the 
Delegate and a "guest cottage" which has been converted  into 
offices for the delegation. Cost : 360 000 ECU. 
5. Purchase of a building for the offices of the delegation in 
Lusaka  (Zambia). Cost : 270 000 ECU. 
6. Purchase of a villa in Lilongwe (Malawi) as a residence for 
the Delegate. Cost : 200 000 ECU. 
7. Purchase of a building in Bujumbura (Burundi) as a residence 
for the Delegate. Cost : 200 000 ECU. 
8. Building of a residence and offices for the head of the sub-
delegation in Malabo (Equatorial Guinea). Cost : 350 000 ECU. 
9. Building of a residence for an adviser in Bissau (Guinea Bissau). 
Cost  : 115 000 ECU. 
10. Purchase of property in Kigali (Rwanda) as a residence for 
the delegation's advisers. Cost : 190 000 ECU. 
The EAC intends to undertake two types of property purchase or 
building operation. 
- Purchase or building of property on "purely economic" grounds, in 
order to cut costs or keep them under control (particularly in 
countries where rents are rising rapidly). 
- The building of property not only on economic grounds (which are 
always taken  into  account) but also to pioneer new types of 
construction. The style of building used for the delegation's offices 

24. 
or Delegate's residence can have an impact on the development 
projects the Commission decides to finance. In operations of this 
type, the central administration  will  be helping or working  with 
the delegations in order to give them : 
. administrative and technical back-up in deciding on their space 
requirements ; 
. assistance at the actual building stage (bringing in specialist 
architects) ; the centralized back-up should also ensure consistency 
in the delegations' building policy - in particular  that 
accommodation specifications are up to standard - through  without 
standardizing the type of building, since each country has its 
own characteristics and constraints. 
c) Expenditure 
The following table shows the level of actual expenditure per year 
in the ACP and OCT  from  1976 to 1981, to be set against the pre­
viously published estimates, and thus gives an idea of the cost 
of delegations under the  fourth  EDG ('000 ECU). 
ACP OCT  TOTAL 
Amounts earmarked 94 607 3 782 98 389 
Real  expenditure 1976 13 486 843 14 329 
1977 21 176 423 21 599 
1978 22 364 657 23 021 
1979 25 450 346 25 796 
1980 4 848 1 993 6 841 
1981 68 5 73 
Commitment for property 87 392 4 267 91 659 
purchases 4 000 — 4 000 
91 392 4 267 95 659 
Since  March 1980 the ACP and OCT deleaations have been financed 
out of the general budget of the European Communities, under 
Article 992. 

25. 
Expenditure under  that  article has been as follows  : 
('000  ECU) 
ACP OCT TOTAL 
Real  expenditure  1980 
1981 22 810 
31 455 300 
5 07 23 110 
31 962 
B. FINANCIAL  CONTROL 
1. Activities of the seconded financial controller 
A financial controller seconded to the Directorate-General for 
Development directly endorses all commitment or payment dossiers 
for up to 60 000 ECU. As a result of this decentralization measure, 
plus the changes to the payments system introduced in 1982 (see 
above),  the rate of disbursement has continued to improve. 
2. On-the-spot inspection 
The Financial Controller undertakes missions overseas in conjunction 
with  the financial departments of the Directorate-General for 
Development, in order to check  that  commitments made and the resulting 
work  done are in conformity  with  the terms of the financing agreements. 
Visits  were made to the following countries : 
- 1981 :  Ghana,  Nigeria, Mauritania,  Senegal,  Uganda,  Zambia 
- 1982 :  Guinea  Bissau,  Cape  Verde, Caribbean region,  Gambia, 
This  means  that  inspection visits have now been made to  37 countries 
since  1977. 
3. Inspection of records 
This  procedure, which requires prior endorsement by the Financial 
Controller, was of course extended in  1979  to authorizations made in 
local  currency by authorizing officers before being entered finally 
in the EDF accounts. Rwanda,  Somalia. 

26. 
It is no Longer restricted to authorizations for foreign currency 
expenditure to be made via the EDF accounting officer and also 
continues to appLy to all commitment proposals concerning contracts. 
C. THE  COURT  OF  AUDITORS 
During the two years under review the collaboration between the 
Commission  and the Court of Auditors which started in  1978  was  further 
extended.  The Court was keen to step up its on-the-spot inspection 
of EDF-financed projects and programmes and undertook missions to 
the following countries  : 
- 1981 : Togo, Benin,  Ivory  Coast, Malawi ; 
- 1982 : Mauritania,  Gabon,  Congo, Tanzania, Comoros, Seychelles, 
Mauritius (and Reunion). 
D. MANAGEMENT  OF  BANK  OPERATIONS 
The Bank exercises supervision of its financing operations  throughout 
the duration of the loans,  both  by inspection of documents at Bank 
headquarters and by periodic visits (1) to projects at the execution 
stage  and later, when they are in operation. 
Supervision  covers the material execution of investment projects, 
their cost, the financial resources  used,  the start-up of facilities 
and progress to capacity operation, checks on special undertakings, 
the financial situation of the borrower and the undertakings by the 
state providing the security or the project authority's guarantor, 
which are very  often  crucial. 
The Bank's aim is to  assess  whether the financial, economic and 
social  objectives of a project have been achieved ; in close colla­
boration  with  the other bodies financing the project, it also keeps 
an eye on any problems arising during the execution or operation 
stages  and helps  find  suitable solutions. 
(1) Often by a team of representatives  from  all the bodies engaged in 
co-financing the project. 

27. 
In carrying out its supervisory functions the Bank also relies 
on detailed information which the borrower is contractually required 
to furnish (periodic progress reports,  report  on completion of 
work,  annual financial statements) and on correspondence and answers 
to its questions on specific points, which supplement and provide 
a basis for its on-the-spot investigations. 

28. 
V. DIFFICULTIES  IN RECOVERING  LOAN  REPAYMENTS 
In recent years the Bank has been tending to  find  greater diffi­
culty in recovering the sums owing to it by certain ACP borrowers 
in respect either of loans  from  its own resources or of funds 
it administers on behalf of the Community. 
A. Causes  of the difficulties 
The situations of the sixty-odd ACP States  differ  widely, owing to 
the diversity of their  size,  population, domestic markets, natural 
resources,  level of development, administrative structures and 
organization,  budget position and ability to withstand the blows 
dealt by  successive  oil price rises and the world  recession. 
It would be a mistake to generalize but, broadly speaking, the main 
cause  of repayment delays is the deteriorating financial and balance 
of payments position of increasing numbers of ACP States. This  causes 
often  considerable delays in settlement, going beyond the normal 
technical  holdups  that  are usually due to a shortage of foreign 
currency at the central bank. Recipients of Community loans are 
often  finding it impossible to make foreign currency repayments on 
time  even if they do have the local currency available, despite the 
formal undertakings which have been given by all the  AASM  or ACP 
States  signatory to the various Conventions (1). 
Delays  in payment can also be  caused,  though  less  frequently, where 
a country forgets to enter the debt in its budget or has to  wait  for 
certain budget revenue to come in in order to replenish the exchequer. 
Governments  may also have social or domestic policy motives for the 
not infrequent delays to decisions on retail price  rises,  which 
obviously  affect the earnings of enterprises even if they are otherwise 
well-managed. 
B. Action which can be taken 
The Bank has various means of recovering amounts due  from  recipients 
of Community loans ; on the loans it manages, it can even suspend 
payment where borrowers fail to keep up to date  with  debt servicing. 
It uses  these measures pragmatically; and is understanding of 
particular circumstances, but is careful not to give borrowers the 
impression  that  they can neglect their undertakings or shirk their 
obligations regarding the  prompt  repayment of Community loans. 
It is vital  that  the Bank, like other international financing insti­
tutions, does not allow borrowers to believe  that  obligations contracted 
towards it can be dealt  with  like obligations towards the commercial 
banking sector,where recourse is increasingly being had to debt 
rescheduling  or even moratoria. In order to protect its  portfolio 
(1) Article 36 of the  first  Yaounde Convent n;- ; / iv,c 38 of the second Yaounde 
Convention  ; Article 67 of the  first  Lome Convention; Article 158 of the second 
Lome  Convention. 

29. 
and its credit rating on the international capital markets, which 
enables  it to borrow on the best possible terms, to the advantage 
of its own customers, the Bank has a duty to see  that  those 
borrowing from it scrupulously discharge their obligations. 
Wherever  necessary, the Bank's moves in respect of sums outstanding 
on EDF special loans are backed up by Commission departments and 
the Commission Delegates. 
C. Loans from own resources 
Despite  many problems  with  recovery, in all the  twenty  years the 
Bank  has been lending from its own resources to African countries 
under the association Conventions it has so far neither suffered 
a loss nor had to take legal action to recover amounts due. In four 
instances,  ACP States themselves took the necessary steps to enable 
borrowers to meet their commitments  without  it being necessary to 
call  up the guarantee. However, the Bank and its Member States should 
be aware  that  the deteriorating financial situation of certain ACP 
States  could,in some  cases,  make it very  difficult  in practice for 
them to honour the guarantee straight away. 
D. Risk capital operations 
Risk  capital operations are specifically intended to finance projects 
which,  although  fulfilling  the criteria for technical and economic 
viability, involve a particularly high degree of risk or are situated 
in countries  with  scant borrowing capacity. The standard subordination 
or conditionality clauses in the contracts make it possible in 
certain contractually specified circumstances for repayments to be 
postponed,  the loan to be extended or even, in exceptional  cases, 
for all or part of the Community claim to be abandoned, in keeping 
with  the concept of "risk" capital, analogous to the funds put  into 
industrial companies by shareholders. So far there has been only one 
case  of repayment being postponed under the terms of the contract, 
for a textile project in  Sudan. 
There  is also the special  case  of Chad,  which since the beginning 
of 1980 has been unable, because of its troubed political situation, 
to service the special loans granted by the Community or the risk 
capital put up by the Bank for two industrial projects. The Commission 
and the Bank have coordinated their position throughout and hope  that 
with  the normalization of the situation they will soon be able to open 
talks  with  the Chad authorities about the outstanding payments and 
the fate of the risk capital operations. 

30. 
E. Loans on special terms 
As regards special loans, including those which the Bank is 
responsible  for recovering under mandate from the Community, 
delays  in repayment are also becoming worse despite  joint 
representations by the Commission  (often  in the person of its 
Delegates)  and the Bank to government authorities in the countries 
concerned,  who are to all intents and purposes the only recipients 
of this type of loan. The two institutions are examining the 
possibility of  further  action to improve the situation. 

31. 
VI - CLOSURE  OF  OPERATIONS 
1. Fourth EDF 
At 30 November 1982, the number of operations  cLosed  stood at 338, 
for an aggregate amount of 484  MECU,  186 % up on the situation at 
end 1980 in terms of numbers and 50 % in terms of volume,  indicati 
the completion of numerous small or medium-sized projects. 
2. Fifth EDF 
At the same date two projects had been closed under the  fifth  EDF, 
for an aggregate amount of 2.3  MECU. 

32. 
CONCLUSION 
The following conclusions may be drawn  from  this report. 
1. As far as the  fourth  EDF is concerned, the ref  erence'^dat  e of 
31 December  1982  provides  scope  for an overall view of the 
profile of implementation. 
1.1.  It can be illustrated by the following graphs  : 
a^ EiDiD£ÏDQ_i2!l§Ë!nËDt§_§n^_iD^itËti2D§_t2_ÎËDdËr a) Financing agreements and invitations to tender 
Volume  (million  ECU,) 
per two-year period Numbers  per two-
year  period 
FA : financing agreements 
IT : invitations to tender 

33. 
b) Primary commitments, secondary commitments and disbursements 
Volume  per two-year period 
(million  ECU) Aggregate  volume 
(million  ECU) 
C 1 : primary commitments 
C 2 : secondary commitments 
D : disbursements 
c) The graphs show  that  the transition  from "cruising  speed"  to 
decelerating  implementation comes : 

34. 
- as regards the number and volume of financing agreements, 
the number of invitations to tender and the volume of 
primary commitments, at a point in 1978-79 ; 
- as regards the volume of invitations to tender and the 
volume of secondary commitments and disbursements, at a 
point in 1980-81 ; the deceleration in disbursements follows 
a gentler curve. 
It should be borne in mind  that  the period under consideration 
was 33 months at 31 December 1978 as opposed to 24 months at 
31 December 1980 and 31 December 1982. 
1.2. Although there are still numerous implementation problems, 
some  of them of a structural nature  (type  of project, location, 
etc.), implementation of Community aid in recent years indicates 
that  the ACP States as a whole are now thoroughly familiar  with 
the procedures under Lome I and the other relevant texts. 
1.3. To complete the picture of the  fourth  EDF a survey of projects 
closed  is needed,  with  particular reference to the problem of 
cost  overruns. As we have  seen,  this is in some  cases  a matter 
of currency movements. But such an evaluation would only have 
real  significance if more large-scale projects than have yet 
been  completed could be analysed. 
2. As regards the  fifth  EDF, which came  into  force only 24 months 
before the reference date for this report, and operations 
administered by the Bank, it is still somewhat early to draw 
any conclusions as to the implementation profile. 
As the reference period for this report was nine months shorter 
than  that  covered in the  first  report to the Council on the 
fourth  EDF, it would be premature to conclude  that  the  fifth 
EDF is being implemented more slowly, as the figures analysed in 
Chapter  I might suggest. 

35 . 
On the other  hand, the tendency  towards  the Launching  of Larger-
scale projects at  this stage in the  fifth EDF shouLd  be pointed 
out. 
Our partners' greater  familiarity  with EDF procedures,  which 
is bound to increase with the  work of the  Article  108 Committee, 
pLus the improvements  introduced by the  Commission  in respect 
of payment  procedures  etc. should  soon bring about satisfactory 
implementation  of the new  Fund. 

Annex  1 
Fourth EDF : statistical  situation  at 31 December  1982 
000 ECU 
Nationality  of Works contracts Supply contracts Technical cooperation 
contracts All contracts 
f i rms 
amount X at 
S1.12.82 i X at 
31.12.80 amout Xat 
31.12.82 X at 
31.12.80 amount X at 
31.12.82 X at 
31.12.80 amount X at 
31.12.82 X at 
31.12.80 
Germany 
BeLgium 
F ranee 
Italy 
Luxembourg 
Netherlands 
Denmark 
United Kingdom 
Ireland 72.865 
61.461 
259.367 
114.682 
33.850 
2.309 
43.830 6,79 
5,72 
24,16 
10,68 
3,15 
0,22 
4,08 5,58 
6,97 
25,48 
10,25 
3,93 
0,34 
3,81 81.847 
19.928 
93.603 
60.447 
21 
16.653 
" 2.803 
75.964 
46 19,98 
4,87 
22,84 
14,76 
0,01 
4,07 
0,68 
18,55 
0,01 21,01 
4,61 
21,11 
18,41 
0,01 
4,27 
0,25 
15,10 
0,02 71.749 
26.079 
68.234 
38.175 
4.608 
25.444 
6.859 
51.989 
67241 21,00 
7,63 
19,97 
11,17 
1,35 
7,45 
2,00 
15,22 
1,83 19,08 
8,70 
20,33 
11,07 
1,54 
7,55 
2,46 
14,01 
1,48 226.462 
107.469 
421.203 
213.303 
4.629 
75.948 
11.971 
171.782 
6.287 12,41 
5,90 
23,08 
11,69 
0,25 
4,16 
" 0,66 
9,41 
0,34 11,58 
6,84 
23,50 
12,12 
0,32 
4,75 
0,76 
8,27 
0,31 
ACP-OCT 
Third countries 475.052 
10.254 44,25 
0,95 42,28 
1,36 34.694 
23.567 8,47 
5,76 9,19 
6,02 40.490 
1.794 11,85 
0,53 13,26 
0,52 550.237 
35.614 30,15 
1,95 29,40 
2,15 
Total 1.073.670 100,00 
i 100,00 409.573 100,00 100,00 341.662 100,00 100,00 1.824.905 100,00 100,00 
-
58,83 X 22,45 X 18,72 % 100,00 X 

Annex 2 
Fifth EDF :  statistical,  situation  at 31 December  1982 
000 ECU 
Nationality  of 
f i rms works cc )nt racts Supply contracts Technical cooperation' 
contracts All contracts Nationality  of 
f i rms 
amount X at 
31.12.82 X at 
30.6.82 amount X at 
31.12.82 • X at 
30.6.82 amount Xat 
31.12.82 X at 
30.6.82 amount Xat 
31.12.82 X at 
30.6-82 
Germany 
Belgium 
F ranee 
Italy 
Luxembourg 
Netherlands 
Denmark 
United Kingdom 
Ireland 
Greece 
ACP-OCT 
Third countries 34.961 
5.517 
41.008 
9.706 
118 
88.918 
17.410 17,69 
2,79 
20,75 
4,91 
0,06 
44,99 
8,81 25,84 
2,60 
24,13 
7,17 
0,01 
27,38 
12,87 
100,0C 10.353 
1.321 
9.073 
8.972 
7.647 
15 
10.848 
•4.800 
1.205 
136 
54.370 19,04 
2,43 
16,69 
16,5C 
14,07 
0,01 
19,96 
8,83 
2,22 
0,25 
100,00 15,77 
4,24 
12,79 
26,02 
2,90 
0,06 
34,94 
3,14 
0,14 11.382 
4.178 
14.971 
5.324 
398 
3.282 
1.384 
7.175 
832 
3.684 
35 21,62 
7,94 
28,43 
10,11 
0,76 
6,23 
2,63 
13,63 
1,58 
7,00 
0,07 20,57 
8,42 
28,54 
5,83 
0,47 
3,93 
3,41 
A,13 
0,99 
23,71 56.696 
11.016 
65.052 
24.002 
398 
10.929 
1.399 
18.141 
5.632 
93.807 
17.581 18,61 
3,62 
21,35 
7,88 
0,13 
3,59 
0,46 
5,95 
1,85 
30,79 
5,77 23,78 
3,62 
23,23 
9,48 
0,06 
0,92 
0,48 
5,21 
0,14 
23,67 
9,41 
Tota I 197.638 100,00 25,84 
2,60 
24,13 
7,17 
0,01 
27,38 
12,87 
100,0C 10.353 
1.321 
9.073 
8.972 
7.647 
15 
10.848 
•4.800 
1.205 
136 
54.370 19,04 
2,43 
16,69 
16,5C 
14,07 
0,01 
19,96 
8,83 
2,22 
0,25 
100,00 100,00 52.645 
17,28 X 100,00 100,00 304.653 100,00 100,00 
64,87 X 17,85  X 52.645 
17,28 X 100,00 
100,00 X