WRITTEN QUESTION P-0036/01

by Joaquim Miranda (GUE/NGL) to the Commission

(16 January 2001)

Subject: Application for Cohesion Fund assistance in connection with the North Alentejo Multimunicipal Water Supply and Sewage Treatment System

An authoritative representative of the Portuguese State-controlled water company, Águas de Portugal, confirmed at a recent meeting of Portalegre Municipal Council (of which I am a member) that an application for Structural/Cohesion Fund assistance in connection with the above-mentioned system had been submitted to the Commission.

However:

(a) The system, which would encompass substantial resources of the 15 municipalities comprising Portalegre District, has been laid down by the Portuguese Ministry for the Environment and Regional Planning (under Decree-Law No 128/2000) without prior consultation of the municipalities themselves,

(b) The municipalities are currently considering whether to join the system and set up a corporation to run it. It therefore obviously follows that on the date when the application was submitted, they had not taken a decision on those two points, let alone on the terms of an application for assistance, although the resources concerned (still) fell under their responsibility,

(c) One of the municipalities involved, Portalegre, has already stated that it will not be joining the system, and there are others which may incline to the same view,

(d) Meanwhile, the Assembly of the Republic has already begun to debate Bill No 275/VIII, which, if adopted, will cast doubt on the above decree-law and hence on the water supply system in the form laid down.

The fact that an application for Structural/Cohesion Fund assistance has been submitted under the circumstances described above prompts the following questions:

1. What body is responsible for the application, according to the indications specified in the relevant papers, and under what conditions was the application drawn up?

2. What projects are covered by the application, and what amounts of investment are involved?

3. How far will the Commission protect the property of the municipalities concerned and the investment projects, especially if municipalities have already decided or eventually decide not to join the system?

4. How will it proceed as regards the application if the system does not come into being or, more to the point, is not set up in accordance with the stipulations of the Portuguese Government?

Answer given by Mr Barnier on behalf of the Commission

(20 February 2001)

The Portuguese authorities have not to date applied for Cohesion Fund assistance for the project in question. However, the northern Alentejo multimunicipal system has been included among the projects eligible for part-financing under the Fund and has been listed in the instrument's reference framework because the system is in keeping with the integrated approach per river basin advocated by Directive 2000/60/EC of Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy(1).

Applications for Cohesion Fund financing are always submitted by the department of regional development under the supervision of the Portuguese Minister for Planning.

The Commission examines the projects submitted by the beneficiary Member State. Safeguarding the municipalities' assets is governed national law.

As a general rule, if a project part-financed under the Cohesion Fund is not carried out in accordance with the conditions subject to which assistance was granted, the regulatory provisions in force(2) entitle the Commission to suspend, reduce or cancel the assistance granted.

Moreover, as regards possible Structural Fund financing for certain components of the system in question, under the existing financial management partnership and the provisions in force(3) responsibility for examining and approving applications in respect of the projects submitted rests with the Portuguese authorities. In particular, they must ensure compliance with the applicable Community legislation and with the selection criteria set out in the operational programme (OP) and the programming supplement. As a general rule, assistance part-financed by the Community must aim to maximise the leverage effect of the state resources mobilised while minimising the cost of attaining the public-service objectives sought.

Information on a possible application in respect of the project to the Alentejo OP can be obtained from the chairman of the Alentejo regional coordinating committee, which is responsible for managing the programme.

(1) OJ L 327, 22.12.2000.

(2) Council Regulation (EC) No 1265/1999 of 21 June 1999 amending Annex II to Regulation (EC) No 1164/94 establishing a Cohesion Fund (OJ L 161, 26.6.1999).

(3) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds (OJ L 161, 26.6.1999).