COMMISSION DES COMMUNAUTES EUROPEENNES 
Bruxelles, le 03.09.1998 
COM(1998) 502 final 
PROGRAMME EUROPEEN POUR LA RECONSTRUCTION ET LE 
DÉVELOPPEMENT EN AFRIQUE DU SUD 
(règlement n° 2259/96 du Conseil) 
RAPPORT ANNUEL 
(années 1996-1997) 
(présenté par la Commission) 

INTRODUCTION 
Le règlement n° 2259/96 du Conseil du 22 novembre 1996 établit la base juridique de la 
coopération au développement avec l'Afrique du Sud. Son article 9 prévoit que la 
Commission soumet au Parlement européen et au Conseil un rapport annuel sur la mise 
en oeuvre de ce règlement. 
Le présent document est le premier rapport établi en application de l'article 9; il couvre 
les exercices 1996 et 1997. 
La dotation budgétaire allouée au PERD s'est élevée à 130 millions d'écus en 1996 et à 
127,5 millions d'écus en 1997. 
1. HISTORIQUE DU PERD 
Dès l'exercice 1986, l'autorité budgétaire a créé une ligne (B7-5070) destinée à appuyer 
les actions de développement mises en oeuvre en Afrique du Sud. Cette dotation, ainsi 
que celles des années suivantes, a servi à financer le Programme spécial en faveur de 
l'Afrique du Sud. 
Ce programme visait principalement la société civile (jusqu'aux élections démocratiques 
de 1994, la CE n'entretenait pas de relations avec le gouvernement sud-africain) et portait 
$. l'origine essentiellement sur la lutte contre l'apartheid, mais il a progressivement 
accordé une attention de plus en plus grande aux problèmes du développement. Le 
programme spécial a appuyé 744 projets, pour un montant total de 443 millions d'écus. 
Depuis les élections démocratiques qui se sont tenues en avril 1994, la coopération entre 
l'UE et l'Afrique du sud a évolué vers une approche du développement plus traditionnelle, 
le nouveau gouvernement prenant une part de plus en plus active au programme européen 
pour la reconstruction et le développement (PERD), qui a pris la suite du programme 
spécial en 1995. • 
Dès avril 1994, le Conseil a exprimé son soutien à l'intensification de la coopération avec 
l'Afrique du Sud en concentrant l'aide communautaire dans des domaines d'activités 
susceptibles d'améliorer les conditions de vie de la population, et en particulier de ses 
couches les plus défavorisées. 
Cette approche était cohérente avec le programme de développement présenté par le 
nouveau gouvernement (programme pour la reconstruction et le développement - PRD). 
Celui-ci, toujours en cours, a connu des problèmes de mise en oeuvre et depuis 1996, il 
est poursuivi parallèlement à une politique macro-économique plus globale adoptée par le 
gouvernement et baptisée GEAR (Growth Employment and Redistribution). Cette 
politique insiste davantage sur la croissance (le principal facteur limitant le soutien 
budgétaire aux actions du PRD) et sur le rôle du secteur privé. 
Indépendamment de l'évolution politique, depuis 1996, les activités liées au 
développement en Afrique du Sud ont fait l'objet d'une restructuration et d'une 
réorganisation et la programmation a été renforcée (voir le chapitre 3). 
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Les relations entre l'UE et l'Afrique du Sud ont également évolué, avec l'adhésion du 
pays à la convention de Lomé, même s'il ne s'agit que d'une participation limitée à Lomé 
IV bis, qui ne deviendra effective qu'en 1998. 
Des négociations bilatérales sont en cours et l'accord qui devrait en résulter fournira un 
cadre contractuel qui permettra de développer la coopération en matière de commerce et 
de développement entre l'UE et l'Afrique du Sud. 
L'Afrique du Sud a vocation à devenir un des principaux partenaires au développement 
de l'UE, en Afrique et en particulier en Afrique australe. Cependant, le caractère dual de 
l'économie et de la société sud-africaine (au sein desquelles on trouve des secteurs très, 
avancés et des poches de richesse) et la consolidation progressive de la transition socio-
économique amorcée par le gouvernement issu des élections font de ce pays un partenaire 
particulier, original, doté de caractéristiques atypiques par rapport à celles des autres 
États ACP. 
2. LE PERD ET SES PRIORITES 
Les priorités du PERD sont fixées par sa base juridique. L'article premier de celle-ci 
prévoit que la Communauté apporte prioritairement son soutien aux couches les plus 
défavorisées de la population. 
L'article 2 établit la liste des domaines concernés par le PERD (démocratisation et droits 
de l'homme, éducation et formation, santé, développement rural, développement urbain et 
logement social, soutien au secteur privé, et en particulier aux petites et moyennes 
entreprises, renforcement institutionnel, coopération régionale, protection de 
l'environnement). 
Les actions financées par le PERD doivent clairement refléter les priorités du 
gouvernement (le PRD et la politique GEAR). 
3. PROGRAMMATION DU PERD 
L'article 6 de la base juridique (règlement n° 2259/96 du Conseil) prévoit l'établissement 
de programmes indicatifs pluriannuels (PIP) définissant un cadre et une stratégie pour les 
actions de coopération financées par l'UE en Afrique du Sud. 
Une étude stratégique a été présentée par la Commission européenne aux Éfats membres 
(comité Afrique du Sud) et examinée en janvier 1996. Sur cette base, la Commission a 
élaboré avec le gouvernement sud-africain un premier programme indicatif pluriannuel 
(PIP) couvrant la période 1997-1999; ce document a été signé en mai 1997 (voir l'annexe 
VII). 
Ce PIP respecte les dispositions de la base juridique en ce qui concerne les domaines de 
concentration de l'aide (soutien aux couches les plus défavorisées de la population sud-
africaine) et les domaines éligibles à l'aide (énumérés à l'article 2 du règlement). 
Les principaux domaines de concentration définis dans le PIP sont : 
3-
les services sociaux de base (santé, éducation et formation, eau et assainissement) 
(50 à 60 % du PIP), 
le soutien au secteur privé (essentiellement à la création d'emplois et aux petites et 
moyennes entreprises) (15 à 20 % du PIP), 
la bonne gestion des affaires publiques et la démocratisation (15 à 20 % du PIP) 
et 
la coopération régionale (+/- 5 % du PIP). 
Le développement des ressources humaines, les questions d'égalité entre les hommes et 
les femmes et la protection de l'environnement ont été retenus comme thèmes 
horizontaux. 
L'enveloppe financière indicative annuelle s'élève en moyenne à 125 millions d'écus pour 
la période allant jusqu'à la fin de 1999. 
La CE et le gouvernement sud-africain ont reconnu le rôle primordial joué dans le 
développement par les partenaires de coopération décentralisés (les autorités locales, les 
ONG, les syndicats, les universités, les organismes privés à but non-lucratif, etc.) et il a 
été convenu que 25 % au moins des ressources du PERD seraient allouées à ces 
partenaires et directement mis en oeuvre par eux (voir le chapitre 6). 
4. MISE EN OEUVRE DU PERD 
En 1996 et 1997, respectivement 15 et 14 programmes ont été approuvés par le comité 
Afrique du Sud (voir le chapitre 7) et signés. Le tableau ci-dessous indique la proportion 
des ressources allouée aux différents domaines de concentration et la répartition entre les 
partenaires de mise en oeuvre (gouvernement ou partenaire décentralisé). 
Tableau 1 - Le PERD en 1996 et 1997 
DOMAINES 
1996 
1997 Services 
sociaux 
de base 
52% 
69% Secteur 
privé 
9% 
13% 
(1) Bonne 
gestion et 
démocratisa 
-tion 
38% 
15% Cooperation 
regionale et 
autres 
1% 
3% PARTENAIRES DE 
MISE EN OEUVRE 
Gouverne-
ment 
88% 
83% Partenaire 
decentralise 
12% 
17% 
(1) Le programme de développement des compétences professionnelles (Labour Market 
Skills Development Programme), d'un montant de 46 millions d'écus, est pris en compte 
dans la partie "Services sociaux de base" mais il est également étroitement lié au domaine 
d'action concernant le "Secteur privé". 
L'annexe II fournit une liste des programmes et des projets approuvés en 1996 et 1997 
dans le cadre du PERD ainsi que les engagements et les paiements correspondants. 
L'annexe III fournit des informations sur l'engagement global et sur le rythme des 
paiements. 
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L'annexe IV fournit un rapport détaillé sur l'état d'avancement des principaux 
programmes en cours. 
L'annexe V présente des informations détaillées sur les marchés attribués dans le cadre 
des programmes de 1996 et 1997. 
Des gros efforts ont été entrepris pour mieux concentrer l'utilisation des ressources du 
PERD sur un petit nombre de programmes ayant une incidence significative. Cette 
approche a également été rendue nécessaire par les contraintes de gestion de l'aide, 
compte tenu de ressources en personnel très limitées (DG VIII et délégation à Pretoria) 
qui ont dû faire face à une charge de travail administratif considérable et qu'il convient de 
renforcer. 
Les premières années de mise en oeuvre du PERD ont eu pour caractéristique constante 
un faible taux de décaissement; 30 millions d'écus seulement ont été versés en 1996. Les 
obstacles ont été identifiés à plusieurs niveaux (capacité d'absorption du gouvernement 
sud-africain insuffisante, manque de procédures et de manuels normalisés, absence de 
certains instruments administratifs, etc.). Des mesures correctrices ont été prises et les 
paiements ont augmenté, 59 millions d'écus ayant été versés en 1997 (dont 13,6 millions 
au titre des projets de 1996); il apparaît néanmoins que des retards importants sont encore 
provoqués par : 
l'insuffisance des capacités, 
le manque de connaissances et d'expérience, 
les procédures de mise en concurrence, 
les remaniements de personnel, 
le délai extrêmement long nécessaire pour finaliser les conventions de 
financement, 
l'absence de procédures permettant l'exécution locale des paiements. 
5. SUIVI ET EVALUATION 
Un système complet de suivi et d'évaluation a été mis en place. Des consultations 
annuelles sont organisées en début d'année en partenariat avec le gouvernement et les 
partenaires de coopération décentralisés afin d'évaluer l'avancement des projets et 
d'examiner les problèmes rencontrés. Ces consultations nécessitent un important travail 
de préparation et fournissent l'occasion : 
• d'examiner en détail la mise en oeuvre de chacun des projets en cours, 
• de passer en revue et d'examiner les causes de retard, les difficultés et les problèmes 
rencontrés, etc., 
• d'établir un calendrier pour la programmation de l'année à venir. 
Le résultat de ces consultations est consigné par écrit sous la forme d'un "procès-verbal 
agréé" signé par les deux parties, qui constitue un document de référence officiel pour 
l'évaluation de la mise en oeuvre du PERD. 
Six mois plus tard a lieu un exercice similaire ("évaluation à mi-parcours"). 
5-
Les consultations annuelles ont été tenues en avril 1997 (voir l'annexe VI) et l'évaluation 
à mi-parcours a eu lieu en novembre 1997. 
L'évaluation des programmes (à mi-parcours et finale) est souvent prévue dans les 
conventions de financement. Les programmes de 1996 et de 1997 venant tout juste de 
débuter, ces évaluations n'ont pas encore été lancées. 
6. LES PARTENAIRES DE COOPERATION 
Comme il a été indiqué ci-dessus, outre le soutien au gouvernement (central ou 
provincial), 25 % au moins des ressources programmables sont mises en oeuvre par 
l'intermédiaire d'agents de coopération décentralisés. 
En ce qui concerne les ONG, la Commission européenne encourage activement la 
constitution de groupements, de réseaux ou d'autres associations en partenariat afin de 
parvenir à une meilleure intégration sectorielle et de faciliter le dialogue avec le secteur 
public. 
Dans le cadre du programme spécial, la stratégie de la Commission consistait à financer 
des ONG "channels" opérant par l'intermédiaire d'un large réseau de plus petites 
organisations. Les channels utilisés étaient le Kagiso Trust, le Conseil des églises sud-
africain (South African Council of Churches, SACC) et la Conférence des évoques 
catholiques d'Afrique du Sud (Southern African Catholic Bishops' Conference, SACBC). 
En 1996 et 1997, il a été décidé de financer plutôt des ONG spécialisées, capables de 
mettre en oeuvre des programmes de développement importants dans les domaines de 
concentration du PIP, en coordination avec les politiques gouvernementales. 
Au vu du nombre extrêmement élevé de candidatures d'ONG locales et de petite taille 
reçues par la Commission européenne, il est urgent d'instaurer ou de financer des 
intermédiaires chargés de filtrer, d'évaluer et par la suite de gérer ces propositions 
émanant d'ONG. Ce problème devra être prioritairement traité en 1998. 
7. COORDINATION AVEC LES ETATS MEMBRES 
L'article 4, paragraphe 6, l'article 7, paragraphes 2 et 3, et les articles 8 et 9 de la base 
juridique prévoient différents niveaux d'échange d'informations et de coordination entre 
les États membres. 
Des réunions sont périodiquement organisées à Pretoria par la présidence et par la 
délégation de la Commission européenne pour échanger des informations sur le PERD et 
les activités financées par les États membres. Les nouvelles initiatives dans le cadre du 
PERD (études, projets de propositions de financement, etc.) sont systématiquement 
présentées aux représentations locales des États membres. 
Après ces consultations locales, les propositions de financement sont transmises au 
comité Afrique du Sud au sein duquel les États membres donnent leur avis. Ce comité 
s'est réuni 4 fois en 1996 et 4 fois en 1997 pour examiner et approuver les programmes 
de 1996 et 1997. 
Des réunions locales portant sur des questions sectorielles sont également organisées afin 
de coordonner les politiques correspondantes de la CE avec celles des États membres. Par 
ailleurs, l'évaluation des actions effectuée à l'occasion des consultations annuelles (voir le 
chapitre 5) est examinée avec les États membres, qui reçoivent une copie du "procès-
verbal agréé", conformément à l'article 9. 
8. DIVERS 
En 1996 et 1997, la délégation a reçu la visite de plusieurs représentants des institutions 
européennes impliquées dans la coopération et le développement, notamment la Cour des 
Comptes, de plusieurs parlementaires européens, dont la délégation du Parlement 
européen chargée des relations avec l'Afrique du Sud, de représentants de la Banque 
européenne d'investissement, etc. 
Un effort particulier a été entrepris pour s'assurer que des informations suffisantes sur le 
PERD et ses résultats sont disponibles, principalement en Afrique du Sud mais aussi en 
Europe. Un programme ad hoc (Information et communication sur le PERD) a été lancé 
fin 1997. 
9. CONCLUSIONS ET PERSPECTIVES 
L'Afrique du Sud est le pays avec lequel la Commission européenne mène le plus vaste 
programme de coopération. 
Les activités de coopération avec l'Afrique du Sud ont traversé une période de 
réorientation et de restructuration, importantes entre 1994 et 1997. La Commission 
européenne et le gouvernement sud-africain se sont désormais lancés dans un processus 
de rationalisation (aspects de procédure, par exemple; intégration dans la Convention de 
Lomé) et de consolidation. 
Cette situation, de même que l'extrême complexité de l'organisation institutionnelle et 
sociale en Afrique du Sud, pèse lourdement sur tous les services de la Commission 
concernés et nécessite un renforcement permanent des capacités à tous les niveaux, 
notamment en ce qui concerne la délégation. Dans ce contexte, il est important de lancer 
une réflexion sur "l'après 1999" qui verra certainement l'Afrique du Sud devenir un 
partenaire important de l'UE, mais aussi d'un genre unique. 
Annexes 
I - Règlement n° 2259/96 du Conseil du 22 novembre 1996 
II - Liste des projets approuvés en 1996 - Engagements et paiements 
III - Liste des projets approuvés en 1997 - Engagements et paiements 
IV - Engagements et paiements en 1996/1997 (totaux) 
V - Informations sur les marchés attribués 
VI - Procès-verbal agréé des consultations annuelles de 1997 
VII - Programme indicatif pluriannuel (PIP) 
28. 11. 96 DOE Journal officiel des Communautés européennes N° L 306/5 
RÈGLEMENT (CE) N° 2259/96 DU CONSEIL 
du 22 novembre 1996 
relatif à la coopération au développement avec l'Afrique du Sud 
LE CONSEIL DE L'UNION EUROPÉENNE, 
vu le traité instituant la Communauté européenne, et 
notamment son article 130 W, 
vu la proposition de la Commission ('), 
statuant conformément à la procédure visée à l'article 
189C du traité 0, 
considérant que la politique de la Communauté vis-à-vis 
de l'Afrique du Sud a été marquée dans le passé par 
l'adoption de mesures négatives d'embargo commercial et 
de sanctions économiques à l'encontre du gouvernement 
responsable d'une politique d'apartheid, de même que de 
mesures positives de soutien aux populations victimes du 
système de l'apartheid, dans le cadre du programme 
spécial d'assistance à travers les organisations non gouver­
nementales; 
considérant que, à la suite des élections d'avril 1994 et de 
la mise en place d'un gouvernement démocratique, la 
Communauté s'est orientée vers une stratégie d'appui aux 
politiques et réformes menées par les autorités nationales; 
considérant que, dans sa déclaration du 25 mai 1993, le 
Conseil a exprimé son soutien à la création des structures 
démocratiques; 
considérant que, dans sa déclaration du 19 avril 1994 sur 
les relations futures entre la Communauté et l'Afrique du 
Sud, le Conseil a réitéré son soutien au renforcement de 
la coopération avec l'Afrique du Sud en concentrant 
l'appui communautaire sur des secteurs susceptibles 
d'améliorer les conditions de vie de la population, et en 
particulier de ses couches les plus défavorisées; 
considérant que l'accord de coopération entre la Commu­
nauté européenne et la république d'Afrique du Sud, signé 
en octobre 1994 à Pretoria, a pour objectif de promouvoir 
un développement socio-économique harmonieux et 
durable et constitue la première étape de l'établissement 
d'une coopération, à long terme avec ce pays, pour 
laquelle une proposition de directives de négociation a été 
soumise par la Commission au Conseil le 31 mars 1995; 
considérant que l'autorité budgétaire a décidé, dans le 
cadre du budget de 1986, de créer une ligne budgétaire 
destinée à appuyer les actions de développement dans ce 
pays; 
(•) JO n8 C 235 du 9. 9. 1995, p. 5. 
I1) Avis du Parlement européen du 10 octobre 1995 (JO n° C 287 
du 30. 10. 1995, p. 29), position commune du Conseil du 19 
mars 1996 (JO n° C 134 du 6. 5. 1996, p. 12) et décision du 
Parlement européen du 18 juillet 1996 (JO n° C 26l du 9. 9. 
1996, p. 144). considérant qu'il y a lieu de fixer les modalités de gestion 
des ressources financières affectées par la Communauté à 
la mise en œuvre de cette coopération; 
considérant qu'un montant de référence financière, au 
sens du point 2 de la déclaration du Parlement européen, 
du Conseil et de la Commission du 6 mars 1995, est 
inscrit dans le présent règlement pour l'ensemble de la 
durée du programme, sans que cela n'affecte les compé­
tences de l'autorité budgétaire définies par le traité, 
A ARRÊTÉ LE PRÉSENT RÈGLEMENT: 
Article premier 
La Communauté met en oeuvre une coopération finan­
cière et technique avec l'Afrique du Sud, en appui des 
politiques et réformes menées par les autorités nationales 
de ce pays. < 
Le programme de coopération communautaire, intitulé 
«programme européen pour la reconstruction et le déve­
loppement en Afrique du Sud*, a pour objectif de contri­
buer au développement économique et social durable et 
harmonieux de ce pays et de consolider les bases d'une 
société démocratique et d'un État de droit dans le respect 
des droits de l'homme et des libertés fondamentales. 
Dans ce contexte, la Communauté apporte prioritaire­
ment son soutien aux actions en faveur des couches les 
plus défavorisées de la population sud-africaine. 
Article 2 
1. Les actions de coopération à mettre en oeuvre'au 
titre du présent règlement portent principalement sur les 
domaines suivants: 
— soutien à la démocratisation et à la défense des droits 
de l'homme, 
— éducation et formation, 
— santé, 
— développement rural, 
— développement urbain et logement social, 
— soutien au secteur privé et coopération avec celui-ci, 
en particulier à l'égard des petites et moyennes entre­
prises, 
— renforcement institutionnel et organisation de com­
munautés locales, . 
— coopération et intégration régionales, 
— protection de l'environnement. 
2. Dans ses actions de coopération, la Communauté 
tient compte des priorités du programme sud-africain 
pour la restructuration .et le développement. 
% 
N° L 306/6 PER" Journal officiel des Communautés européennes 28. 11. 96 
Article 3 
Les partenaires de la coopération qui peuvent obtenir un 
soutien financier au titre du présent règlement sont les 
administrations et les agences publiques nationales, 
provinciales et locales, les organisations non gouverne­
mentales et les organisations à base communautaire, les 
organisations régionales et internationales, les instituts et 
opérateurs publics ou privés. 
Article 4 a) l'instauration d'un système d'échange systématique 
d'informations-sur les actions financées et celles dont 
le financement est envisagé par la Communauté et les 
États membres; 
b) une coordination sur le lieu de mise en oeuvre des 
actions à travers des réunions régulières et d'échange 
d'informations entre les représentants de la Commis­
sion et des États membres dans le pays bénéficiaire. 
7. La Commission, en liaison avec les États membres, 
peut prendre toute initiative nécessaire en vue d'assurer 
une bonne coordination avec les autres bailleurs de fonds 
concernés. 
1. Les moyens qui peuvent être mis en œuvre dans le 
cadre de la. coopération visée à l'article 1" comprennent 
notamment des études, une assistance technique, une 
action de formation ou la prestation d'autres services, des 
fournitures et des travaux, ainsi que des audits et des 
missions d'évaluation et de contrôle. Article 5 
Le soutien financier au titre du présent règlement prend 
la forme d'aides non remboursables. 
2. Le financement communautaire, en devises ou en 
monnaie locale, selon le besoin de la mise en œuvre des 
actions de coopération, peut couvrir: 
— des dépenses d'investissement, à l'exclusion de l'achat 
dé biens immeubles, 
— dans des cas dûment justifiés, des frais récurrents 
(englobant les dépenses d'administration, d'entretien 
et de fonctionnement), de manière à assurer l'utilisa­
tion optimale des investissements visés au premier 
tiret, dont l'exploitation représente temporairement un 
fardeau pour le partenaire. Dans ces cas, un plan 
prévoyant la reprise en charge de ces frais par le parte­
naire au terme du projet doit accompagner la proposi­
tion de financement de la Communauté. 
3. Une contribution financière des partenaires visés à 
l'article 3 est, en principe, requise pour chaque action de 
coopération. Cette contribution est demandée dans les 
limites des possibilités des partenaires concernés et en 
fonction de la nature de chaque action. Dans des cas 
spécifiques, et lorsque le partenaire est soit une organisa­
tion non gouvernementale, soit une organisation à base 
communautaire, la contribution peut être apportée en 
nature selon leurs possibilités. Article 6 
La programmation indicative pluriannuelle par objectifs 
ainsi que l'identification et la mise en œuvre des actions 
visées à l'article 2 qui en découlent s'effectuent dans le 
cadre d'un dialogue étroit avec le gouvernement sud-afri­
cain et compte tenu des résultats de la coordination visée 
à l'article 4 paragraphes 6 et 7. 
Afin de préparer la programmation, la Commission 
établit, dans le cadre d'une coordination renforcée avec les 
États membres, y compris sur place, un document synthé­
tique de stratégie de coopération, lequel est examiné par 
le comité visé à l'article 8 ci-après dénommé «comité».' La 
Commission transmet le programme indicatif pluriannuel 
établi sur la base de cet examen au comité aux fins d'un 
échange de vues, lequel a lieu à la demande de la 
Commission ou d'un ou plusieurs membres du comité. 
Lorsqu'il n'est pas possible de parvenir au consensus 
souhaitable sur le document synthétique ou le program­
me, le comité donne son avis selon la procédure prévue à 
l'article 8. La même procédure s'applique lorsque des 
modifications du programme se révèlent nécessaires. 
Article 7 
4. Des possibilités de cofinancement avec d'autres bail­
leurs de fonds peuvent être recherchées, en particulier 
avec les États membres. 
5. La Commission peut prendre toute mesure utile 
pour faire connaître le caractère communautaire des aides 
fournies au titre du présent règlement. 
6. Afin de réaliser les objectifs de cohérence et de 
complémentarité visés par le traité et de garantir une effi­
cacité optimale de l'aide, la Commission peut prendre 
toutes les mesures nécessaires de coordination, et notam­
ment: 1. La Commission est chargée d'instruire, de décider et 
de gérer les actions visées par le présent règlement, selon 
les procédures budgétaires et autres en vigueur, et notam­
ment celles prévues dans le règlement financier appli­
cable au budget général des Communautés européennes. 
2. Afin d'assurer la transparence et la réalisation des 
objectifs visés dans l'article 4 paragraphe 6, la Commis­
sion communique aux États membres et à leurs représen­
tants sur place les fiches d'identification des projets dès 
que la décision de procéder à l'instruction est prise. Par la 
suite, la Commission procède à une mise à jour de ces 
fiches d'identification et la communique aux États 
membres. 
3 
28. 11. 96 FR Journal officiel des Communautés européennes N° L 306/7 
3. Les décisions concernant les actions dont le finance­
ment au titre du présent règlement dépasse 2 millions 
d'écus par action, ainsi que toute modification de ces 
actions entraînant un dépassement supérieur à 20 % du 
montant initialement convenu pour l'action concernée, et 
les propositions de modifications fondamentales à prévoir 
comme conséquence des difficultés apparues dans l'exé­
cution de projets déjà engagés sont arrêtées selon la 
procédure prévue à l'article 8. 
Lorsque le dépassement visé au premier alinéa est supé­
rieur à 4 millions d'écus, mais inférieur à 20 % de l'enga­
gement initial, l'avis du comité sera recherché selon les 
procédures simplifiées et accélérées. 
La Commission informe succinctement le comité des 
décisions de financement qu'elle a l'intention de prendre 
au sujet des projets et programmes d'une valeur inférieure 
à 2 millions d'écus. Cette information a lieu au plus tard 
une semaine avant la prise de décision. 
4. Toute convention ou tout contrat de financement 
conclu au titre du présent règlement prévoit notamment 
que la Commission et la Cour des comptes peuvent 
sprocéder à des contrôles sur place selon les modalités 
habituelles définies par la Commission dans le cadre des 
dispositions en vigueur, en particulier celles du règlement 
financier applicable au budget général des Communautés 
européennes. 
5. Dans la mesure où les actions donnent lieu à des 
conventions de financement entre la Communauté et 
l'Afrique du Sud, celles-ci prévoient que le paiement de 
taxes, droits et charges n'est pas financé par la Commu­
nauté. 
6. La participation aux appels d'offres et aux marchés 
est ouverte, à égalité de conditions, à toutes les personnes 
physiques et morales des États membres, de l'Afrique du 
Sud et des États ACP. Elle peut être, étendue à d'autres 
pays en développement dans des cas dûment justifiés et 
dans le but d'assurer le meilleur rapport coût/efficacité. 
7. Les fournitures sont originaires des États membres, 
de l'Afrique du Sud ou des États ACP. Dans les cas excep­
tionnels, dûment justifiés, elles peuvent être originaires 
d'autres pays. 
Article 8 sur ce projet dans un délai que le président peut fixer en 
fonction de l'urgence de la question en cause. L'avis est 
émis à la majorité prévue à l'article 148 paragraphe 2 du 
traité pour l'adoption dés décisions que le Conseil est 
appelé à prendre sur proposition de la Commission. Lors 
des votes au sein du comité, les voix des représentants des 
États membres sont affectées de la pondération définie à 
l'article précité. Le président ne prend pas part au vote. 
3. a) La Commission arrête les mesures envisagées lors­
qu'elles sont conformes à l'avis du comité. 
b) Lorsque les mesures envisagées ne s'ont pas 
conformes à l'avis du comité, ou en l'absence d'avis, 
la Commission soumet sans tarder au Conseil une 
proposition relative aux mesures à prendre. Le 
Conseil statue à la majorité qualifiée. 
Si, à l'expiration d'un mois, le Conseil n'a pas 
statué, les mesures proposées sont arrêtées par la 
Commission. 
Article 9 
Après chaque exercice budgétaire, la Commission soumet 
au Parlement européen et au Conseil un rapport annuel 
sur la mise en œuvre du présent règlement. Ce rapport 
exposera les résultats de l'exécution du budget en ce qui 
concerne les engagements et les paiements ainsi que les 
projets et programmes financés dans l'année. Il compor­
tera des informations statistiques précises et détaillées sur 
les adjudications effectuées pour la mise en œuvre des 
projets et, programmes. 
La Commission procède régulièrement à une évaluation 
des actions financées par la Communauté en vue d'établir 
si les objectifs visés par celles-ci ont été atteints et de 
fournir des lignes directrices pour l'amélioration de l'effi­
cacité des actions futures. Des résumés des rapports d'éva­
luation seront communiqués aux États membres. Les 
rapports complets seront à la disposition des États 
membres qui les demandent. 
Article 10 
Le présent règlement entre en vigueur le troisième jour 
suivant celui de sa publication au Journal officiel des 
Communautés européennes. Il expire le 31 décembre 
1999. 
1. La Commission est assistée par un comité, composé 
des représentants des États membres et présidé par le 
représentant de la Commission. Le montant de référence financière pour l'exécution du 
présent règlement est de 500 millions d'écus pour la 
période du 1" janvier 1996 au 31 décembre 1999. 
2. Le représentant de la Commission soumet au comité 
un projet des mesures à prendre. Le comité émet son avis Les crédits annuels sont autorisés par l'autorité budgétaire 
dans la limite des perspectives financières. 
lo 
N° L 306/8 I FR 1 Journal officiel des Communautés européennes 28. 11. 96 
Le présent règlement est obligatoire dans tous ses éléments et directement applicable dans 
tout État membre. 
Fait à Bruxelles, le 22 novembre 1996. 
Par le Conseil 
Le président 
J. BURTON 
fl 
Annex II I:\lb7-3200\annurcp\projlist.doc 
LIST OF PROJECTS APPROVED IN 1996 
PROJECT 
Cato Manor* 
The Truth and 
Reconciliation Commission* 
Public Service 
Management Development 
Technical Support to 
tthe SA Department of 
Education 
Soul City 
NGO Rural Water Supply 
Non-grid Electrification of Rural Schools 
Policing in Eastern Cape Province 
Parliamentary Support Programme 
Support to the SA Trade Union Movement 
Trade and Investment Development 
Programme for SMMEs 
Young doctors 
IDASA 
DTI policy support 
FISCU CONTRACT No 
* 
• 
:hool 
/erne 96-73200-001 
96-73200-002 
96-73200-003 
96-73200-004 
96-73200-005 
96-73200-006 
s 96-73200-007 
96-73200-008 
96-73200-009 
ait 96-73200-010 
96-73200-011 
96-73200-012 
96-73200-013 
96-73200-014 
96-73200-015 Committments 
(ECU) 
24,500,000 
1,950,000 
19,206,000 
17,200,000 
2,350,000 
5,000,000 
15,000,000 
9,000,000 
16,000,000 
4,300,000 
8,907,000 
750,000 
1,978,000 
1,970,000 
1,100,000 Payments 
(ECU) 
160,440 
1,577,532 
1,147,453 
0 
2,071,993 
1,384,789 
0 
0 
5,057,398 
1,151,323 
0 
0 
572,837 
0 
528,324 
TOTAL 129,211,000 13,651,109 
* Approved in 1995 under the 1996 budget 
**Not included in train, but submitted separately by written procedures to the Member States in Brussels. 
12_ 
Annex III 
LIST OF PROJECTS APPROVED IN 1997 
PROJECT 
Audit (Ernst and Young) 
Audit (Price Waterhouse) 
SADC Régional Food Security Training 
Community Project Fund (Free State CONTRACT No 
97.73200.01 
97.73200.02 
97-73200-03 
97-73299-04 Commitments 
(ECU) 
192,600** 
96,300** 
300,000 
17,000,000 Payments 
(ECU) 
40,000 
30,531 
200.000 
Department of Agriculture) 
Support to Fight Corruption (Transparency 97-73200-05 
International) 
Soul City IV & V 97-73200-06 
Participatory Primary Health Programme 97-73200-07 
(SACLA) 
Labour Market Skills Development 
(Department of Labour) 97-73200-08 
Integrated Community Sports Programme 97-73200-09 
(SCORE) 
Strengthening Local Government in 
Mpumalanga and Northern Province 97-73200-010 
Public Health Sectoral Support Programme 97-73200-011 
Education Sectoral Support Programme 97-73200-012 
Conference, Workshop and Cultural 97-73200-013 
Initiatives (CWCI) Fund 
Information and Communication Programm 97-73200-
on the EPRD 
TOTAL(1997 Coram.) 
* To be commited under the 1998 budget 
** Dotation 31 300,000 
3,200,000 
9,600,000 
46,000,000 
7,900,000 
17,900,000 
22,500,000 
23,000,000* 
1,900,000 
900,000 
127.5 Mecu 853,368 
\S 
Annex IV 
COMMITMENTS AND PAYMENTS IN 1996/ 1997 
996 
Commitments: 129.211.100,00 Ecu (15 projects) 
Payments: 28514.567,74 (99 payments) 
1997 
Commitments: 127.500.000,00(11 projects) 
Payments: 59.768.980,61 (137 payments) 
i:\lb7-3200\annurcp\annyo-97.doc 
^ 
Annex V 
INFORMATION ON CONTRACTS AWARDED 
PROJECTS 1996 
Project: 96-73200-01 CATO MANOR à- V ^ 
Financing Agreement: Partner SA Government 
Amount ECU 24.500.000 
Contract: Contractor Doxiadis- Greece 
Amount: ECU 832.560 
Awarded through restricted tendering 
Total Paid: ECU 190.381 
Project: 96-73200-02 Truth and Reconciliation Commission (TRC) 
Financing Ag 
Contract: 
Total Paid: 
Project: reement: 
i Partner 
Amount 
Contracter 
Amount: 
96-73200-03 TRC 
ECU 
ECU 
ECU 
Public Service 1.950.000 
1.577.532 
Managem 
Financing Agreement: Partner SA Government 
Amount ECU 19.206.000 
Contract: * Contractor Symonds Travers Morgan- UK 
Amount: ECU 1.553.400 
Awarded through restricted tendering 
Total Paid: ECU '1.147.453 
Project: 96-73200-04 Technical Support to.SA Department of Education 
Financing Agreement: Partner SA Government 
Amount ECU 17.200.000 
Contract: Contractor Hedco-Rep. Of Ireland 
Amount: ECU 633.310 
Awarded through restricted tendering 
313.181 
Institute for Urban Primary Health Care (SA) 
2.350.000 Total Paid: ECU 
Project: 96-73200-05 Soul City 
Financing Agreement: Partner Institute 1 
Amount ECU 
Contract: Contractor 
Amount: ECU 
Total Paid: ECU 2.071.993 
/S-
Ptoject: 96-73200-06 NGO Rural Water Supply 
Financing Agreement: Partner Mvula Trust (SA) 
Amount ECU 5.000.000 
Contract: Contractor 
Amount: ECU 
Total Paid: ECU 1.384.789 
Project: 96-73200-07 Non Grid Electrification of Rural Schools 
Financing Agreement: Partner SA Government 
Amount ECU 15.000.000 
Contract: Contractor IED-France 
Amount: ECU 38.650 
Direct Agreement after consultation 
Total Paid: , - ECU 25.035 
Project: 96-7^200-08 Policing in Eastern Cape 
Financing Agreement: Partner SA Government 
Amount ECU 9.000.000 
Contract: Contractor Studio Bichara-ltaly 
Amount: ECU 1.167.050 
Awarded through restricted tendering 
Total Paid: ECU 0 
Project: .. 96-73200-09 Parliamentary Support Programrne|i|»5 
Financing Agreement: Partner SA Government 
Amount ECU 16.000.000 
Contract: Contractor 
• Amount: ECU 
To be awarded through open international tender 
Total Paid: ECU 5.057.398 
Project: 96-73200-10 Support to SA Trade Union Movement 
Financing Agreement: Partner South Africa Labour Development Trust 
Amount . ECU 4.300.000 
Contract: Contractor 
Amount: ECU 0 
Total Paid: ECU 1.151.323 
k 
Project:^ 
Financing Agreement: 96-73200-11 Trade arid lnvestmèni|Oe^^ ^ 
Partner SA Government 
Amount ECU 8.907.000 
Contract: Contractor 
Amount: ECU 0 
To be awarded through restricted tendering 
Total Paid: ECU 0 
Project: 96-73200-12 Young Doctors ;^ 
Financing Agreement: Partner SA Government and CIM-Germany 
Amount ECU . 750.000 
Contract: . Contractor 
Amount: ECU 0 
Total Paid: - ECU 186.250 
Project; 96-73200-13 IDASA .:^£..;g^ 
Financing Agreement: Partner Institute for Democracy in South Africa 
Amount ECU 1.978.000 
Contract: Contractor 
Amount: ECU 0 
Total Paid: ECU 572.837 
Project; 96-73200-14 DTI Policy Support 
Financing Agreement: Partner SA Government-Not signed 
Amount ECU 1.970.000 
Contract: Contractor 
Amount: ECU 0 
Total Paid: ECU 0 
Project;; 96-73200-15 FISCU ;3 '•''&: ^:-W^ 
Financing Agreement: Partner SA Government 
Amount ECU 1.100.000 
Contract: Contractor EAC- Bursvik ECU 85.000 
Price Waterhouse ECU 919.890 
Total Paid: ECU 528.324 
ir 
PROJECTS 1997 
Project: 
Financing Agreement 
Contract: 
Total Paid: 
Project: 
Financing Agreement 
Contract: 
Total Paid: 
Project: 
Financing Agreement 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 97-73200-01 Audit - Project Closure 
None 
ECU 192.600 
Ernst & Young-Belgium 
ECU 192.600 Partner 
Amount 
Contractor 
Amount: 
Awarded through restricted tendering 
ECU 40.000 
97-73200-02 Audit - Project Closure 
None 
ECU 96.300 
Price Waterhouse-Belgium 
ECU 96.300 Partner 
Amount 
Contractor 
Amount: 
Awarded through restricted tendering 
ECU 30.531 
97-73200-03 SADC Regional Food Security Training 
Partner 
Amount 
Contractor 
Amount: SA Government 
ECU 300.000 
ECU 
ECU 200.000 
Community Prbj. Fund (Free State Pep. Of Agriculture) 
SA Government 
ECU 17.000.000 
IP-Germany (not signed) 
ECU 651.963 97-73200-04 
Partner 
Amount 
Contractor 
Amount: 
Awarded through restricted tender 
ECU 0 
97-73200-05 Support to Fight Corruption 
Partner 
Amount 
Contractor 
Amount: Transparency International 
ECU 300.000 
ECU 
ECU 
IY 
Project:-; 
Financing Agreement: 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 
Project:. 
Financing Agreement: 
Contract: 
Total Paid: 
Project: . 
Financing Agreement: 
Contract: 
Total Paid: 97-73200-06 Soul City IV and V 
Partner 
Amount 
Contractor 
Amount: 
97-73200-07. 
Partner 
Amount 
Contractor 
Amount: 
97^73200-08 
Partner 
Amount 
Contractor 
Amount: 
97-73200^9$ 
Partner 
Amount 
Contractor 
Amount: 
97-73200-10 
Partner 
Amount 
Contractor 
Amount: Institute or Urban Primary Health Care 
ECU 3.200.000 
ECU 
ECU 0 
Participatiry Primary Health Programme 
SACLA (NGO-SA) 
ECU 9.600.000 
ECU 
ECU 853.368 
Labour Market Skills Development 
SA Government 
ECU 46.000.000 
ECU 
ECU 0 
Integrated Community Sports'Programme 
SCORE (NGO-SA) 
ECU 7.§00.000 
ECU 
ECU 0 
Strengt. Loc. Governm. Mpumalanga and North. Province 
SA Government 
ECU 17.900.000 
ECU 
ECU 
3 
Project:?;:'. 
Financing Agreement: 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 
Project: 
Financing Agreement: 
Contract: 
Total Paid: 
RrpjectF; 
Financing Agreement: 
Contract: 
Total Paid: 97-73200-11 Public Health SectoralSupportProg^ 
Partner 
Amount 
Contractor 
Amount: 
97-73200-12 
Partner 
Amount 
Contractor 
Amount: 
97-73200-13 
Partner 
Amount 
Contractor 
Amount: 
97-73200^14 
Partner 
Amount 
Contractor 
Amount: SA Government 
ECU 22.500.000 
ECU 
ECU 0 
Education Sectoral Support Programme 
SA Government 
ECU 23.000.000 
ECU 
ECU 0 
Conference, Workshop and Cultural Initiatives Fund 
SA Government 
ECU 1.900.000 
ECU 
ECU 0 
Information and Communication Programme 
SA Government 
ECU 900.000 
ECU 
ECU 
Zt> 
Annex VI 
AGREED MINUTES 
1997 ANNUAL CONSULTATIONS ON OFFICIAL DEVELOPMENT 
COOPERATION BETWEEN SOUTH AFRICA AND THE 
EUROPEAN COMMISSION ON THE EUROPEAN PROGRAMME 
FOR RECONSTRUCTION AND DEVELOPMENT (EPRD) 
Held in Pretoria from 14th - 15th April 1997 
1. OPENING REMARKS 
The South African Delegation welcomed the European Commission delegation and noted 
that these first Annual Consultations between the EU and South Africa were taking place 
exactly two years after the signing of the 'Declaration of Intent' by Minister Jay Naidoo 
and Commissioner Pinheiro. The purpose of the consultations was to review progress on 
the implementation of the European Programme for Reconstruction and Development 
(EPRD) and find solutions to problems that were being encountered in the implementation 
of the programme. The discussions would also focus on a Multi-annual Indicative 
Programme (MIP). It was noted that the EPRD had successfully channeled resources into 
RDP projects as well as NGO initiatives and that all funds available had so far been 
committed, implementation had however been slow. 
European Commission Delegation thanked the Department of Finance for all the 
preparation that had gone into the Consultations and noted that many of the Departments 
involved in EU cooperation were present indicating the extent and spread of the 
Programme. The achievements of the programme were stressed and the history of SA-EU 
cooperation which started with the EC 'Special Programme' was recalled. The EC stated 
that although the government was the Commission's principal interlocutor in its 
development cooperation, other actors also played an important role. The Delegation was 
happy to note that EU support was responding to government priorities as outlined in the 
Reconstruction and Development Programme (RDP) and the Growth Employment And 
Redistribution (GEAR) strategy. The 'Declaration of Intent' was designed to set out the 
priorities of the programme and that the MIP would be a step further in the process. 
The EC delegation noted that although there was a need to highhght the successes of the 
programme, it was also important to outline concerns. First there was a need to 
understand better why implementation and disbursement of funds was so slow and second 
there was a need for more clarity about future commitments of resources. The EPRD 
should be Relevant (to South Africa's policies and needs), Efficient and Sustainable (with 
a strong link between projects of support and government policy). 
*u 
2. GENERAL MATTERS 
2.1 Implementation of the Multi-annual Indicative Prolamine (MJP) 
The EC outlined the background to the MIP. It was required by the EU Council in terms 
of the agreement to provide support to South Africa, it could provide a multi-annual (3 
year) basis for longer-term programming. The MIP would be 'indicative' and have the 
necessary flexibility to respond to changing needs. The document would set out the 
sectors of cooperation, timetables, targets, expected results and means of implementation. 
The Commission would like to see the EPRD focused and the MIP to express the 
priorities of Government for EU support. The document should set out the roles of the 
different implementing partners of the programme and suggest which actors were 
appropriate for which activities. The MIP should clarify the role and tasks of the 
'National Authorising Officer' (NAO). It should indicate the scale of resources to be 
devoted to each sector. Finally the MEP should outline the Regional Dimension of the 
Programme. 
The EC added that the process of prioritisation would mean that some sectors would be 
effectively excluded from the MEP, however, this would lead to better management of the 
Programme and better visibility in the priority sectors. There needed to be a system of 
arbitration on the South African Government side to prioritise the sectors. 
2.2 Tender Procedures 
The SA Delegation (State Tender Board) noted that according to the new Constitution 
public procurement tenders needed to be: fair, equitable, competitive, transparent and cost 
effective. Two systems of preferences were also to be applied under South Africa's new 
government procurement policy. There would be a 10% price preference if over 80% of 
the content was local. There would also be a 10% price preference in favour of RDP 
principles of contracts over R2 million. 
The State Tender Board also considered that the Commission's regulations on tendering 
provided for much higher ceilings for restricted invitations to tender. The State Tender 
Board also stated that they would like to form part of the evaluation team of tenders 
where South African money was involved. 
The EC responded that there seemed to be no disagreement on the principles for 
tendering. It was noted that following detailed discussions between the Commission and 
South Africa in early 1996, a pragmatic approach had been adopted whereby draft EU 
regulations would be used prior to the outcome of long-term negotiations. It was added 
that too low ceilings for undertaking pre-qualification tenders would drastically slow down 
the implementation of projects. 
LL 
The SA Delegation stated that donor funds should be deposited in the RDP Fund. This 
fund was subject to the Exchequer Act, and therefore the same regulations governing 
South African Government funds applied to donor funds (notably tender rules and 
payment of taxes). 
It was proposed that the matter be taken up during discussions on the MEP in Wednesday. 
2.3 Payment of VAT and other tax and duties 
The SA Delegation introduced the topic explaining that current Financing Agreements do 
not foresee payment of taxes and duties. SA is now proposing that the provisions outlined 
in Article 309 of the Lomé Convention regarding the payment of local taxes should be 
adopted for the EPRD. 
The EC responded that South Africa's accession to Lomé would only be ratified by 
around September and hence problems might be encountered in the meantime. 
Furthermore, Article 309 followed on from article 308 which implied that the Commission 
should not pay taxes which do not apply to other donors. 
The EC noted that these issues of VAT and tendering were hampering implementation of 
the programme and made a strong plea that EU funds should be treated differently from 
South African exchequer funds and would not be subject to the domestic rules of the State. 
Tender Board. If agreement on VAT and tender issues could be reached, a major 
impediment to implementation would be removed. 
Tlie SA Delegation responded that it would look at a number of options for dealing with 
the VAT problem The Department of Finance would explore the possibility of instituting 
a reimbursement system within existing legislation. If this was not possible, the 
Department might ask Parliament to retrospectively authorise the provisions of the 
existing agreements. The Government would also seek to have the issue dealt with within 
a bilateral agreement. 
2.4 Reimbursement/disbursement and £ow of funds ' 
The EC Delegation introduced the item ^ saying that during the first discussions between 
the Commisrion and Department of Finance, a reimbursement system was requested by 
South Africa. In recent discussions with Deputy Minister Gill Marcus, an advance 
payment system had been agreed upon and will be reflected in future Financing 
Agreements. A standard text fo* a 'rider' to the existing Financing Agreements had 
therefore been prepared. 
SA Delegation asked that these be presented before the end of the week. 
The EC mentioned that as well as agreement on the text, a list was required of the 
Agreements it should apply to. 
zi 
2.5 Status of Technical Assistants 
The SA Delegation noted that agreements covering the status of technical assistants had 
been signed with most donors. 
The EC suggested that this issue might be dealt with in the interim by a reference in the 
MIP and taken up as appropriate in a standard annex in the Financing Agreement. 
The SA Delegation responded that an 'exchange, of letter' could be drafted dealing with 
the issue whereby EC funded technical assistants would benefit from provisions equivalent 
to those accorded under bilateral agreements with EU Member States. 
2.6 Format and timing of Financing Agreements 
The SA Delegation introduced this item by saying the Department of Finance had taken 
legal advice which suggested that the standard text of the existing Financing Agreement 
was acceptable. "There were some minor issues that needed to be discussed. 
The EC responded that it was very happy the issue had finally been resolved. It was 
suggested that a commitment might be undertaken by both parties that the Agreements be 
signed within 60 days of the Financing Decision, as happened under Lomé. 
The EC also pointed out that each Agreement was in two parts. The first part covered 
procedural issues and was not changed from agreement to agreement and the second was 
a summary of the project document which should have the prior agreement of the 
implementing Department. 
It was agreed that the NAO, once nominated, would be responsible for the signing of all 
Financing Agreements that were to be implemented by Government. 
The SA Delegation wound up the discussion by saying that in regard to Financing 
Agreements related to decentralised cooperation, the Department accepted the proposals 
set out in the draft MIP. This stated that the implementing! agents should be responsible 
for the implementation of the contract directly to the Commission and not through 
government. 
^ 
3. STATUS OF COOPERATION 
3.1 On-going projects 
LAND AFFAIRS 
Background 
There is one ongoing project with Land Affairs, support for the RDP Land Reform Pilot 
Programme along with Denmark and the UK There is an EU-funded TA in the 
Department (Paul Zille). 
LAND REFORM PILOT PROGRAMME Project No: '95-75070-003 
Project summary 
The project constitutes EU support for the initial phase of the Government's land reform 
effort. The Programme supports the acquisition of land for productive purposes by poor 
and landless communities which form legal entities. Qualifying communities also receive 
support for project planing, management and the development of basic on-farm 
infrastructure. The project is joint funded by the UK and Denmark. 
Total amount committed (ECUs): 11 m 
Total amount disbursed (ECUs): lm 
• Financing decision made 06/95 
• Financing Agreement signed 05/96 
• Workplan submitted 09/96 
• Installments made 11/96 
• End of contract 05/98 
Project status 
Programme implementation, although variable between provinces, has been slower than 
expected. This is due to the pilot nature of the programme; non-existence - prior to the 
project's inception - of Department of Land Affairs provincial and pilot offices and 
operational difficulties associated with the provincial agency agreements that were 
required for the management of the Programme's pilot districts. Following the completion 
of the Pilot's two year time-scale, district offices have been successfully integrated into the 
Department's provincial directorates. Tlds will allow for more effective management of 
the projects and staff; and facilitate the improvement and standardisation of project 
implementation and management procedures. 
A progress report and workplan was submitted in September 1996. An institutional 
review has been undertaken. A consultant has been selected following a tender as the 
implementing agency for the Community Facilitation Fund element of the project. 
2£ 
In line with the donor financing agreements, a report for all three donors to the 
programme is currently under preparation (for presentation on 22nd April 1997). A mid­
term review of the donor contribution to the land reform programme is scheduled for 
June/July 1997. Draft terms of reference have been prepared and circulated by the 
Department. 
Conclusions 
The meeting concluded that the meeting of donors scheduled for 22nd April might 
consider whether the production of the next workplan should await the outcome of 
the mid-term review. 
26 
HEALTH 
Background 
The Department of Health was the first government institution to enter into an agreement 
with the EU. Three projects were agreed in 1994 and Financing Agreements were signed 
by the Department of Health early in 1995. . 
Two EU-funded technical assistants (Mr. Bill Bradshaw and Dr. Malcolm Seagal) are 
currently working with the Department. 
Progress with the implementation of the three projects has been slow. The contract period 
for all the projects has been extended to the end of this year (December 1997). 
The administration of the three projects has received significant attention in recent months. 
In particular, newly designed management reports have been developed to enable weekly 
monitoring of progress. In addition a change in the management of the projects has been 
instigated to further improve the scrutiny of project activities. The Deputy Directors 
General have been requested to personally review the new weekly progress reports with 
programme and activity managers to ensure that issues and constraints are being 
addressed. 
HTV-AIDS PROGRAMME Project No: '94-75070-055 
Project summary 
The project supports the Department of Health's National HTV/AIDS programme. The 
objectives of the support are to increase the awareness of safe sex practices in youth and 
other socially vulnerable groups, reduce HTV infection and secure legal and social equality 
for those with HTV/AIDS. 
Total amount committed (ECUs): 11.2 m 
Total amount disbursed (ECUs): 3.3m 
Financing decision made 11/94 
Financing Agreement signed 03/95 
First installment paid (09/95) 
End of contract 31/12/97 
Project status 
The project is ongoing. Progress in implementation has been slow due to institutional 
capacity constraints and personnel changes in the Department and a lack of clarity 
i?r 
regarding procedures to be followed. However, a workplan for the final phase of the 
project has recently been agreed by the Commission. A further report is expected 
covering up to 31st March 1997. It is anticipated that a further 42% of the total contract 
amount will be spent in the second quarter, 30% in the third quarter and 13% in the last 
quarter. The contract for EU support will finish at the end of the year. 
DISTRICT HEALTH SYSTEMS SUPPORT PROGRAMME Project No: '94-75070-056 
Project summary 
Within the context of supporting the development of a national comprehensive strategic 
health plan, the objective of the project is to support the restructuring of the national 
health system through the development of district health systems. 
Total amount committed (ECUs): 5.7m 
Total amount disbursed (ECUs): 2.5m 
• Financing decision made 11/94 
• Financing Agreement signed 03/95 
• First installment paid (06/95) 
• End of contract 31/12/97 
Project status 
The project is ongoing. As with the other health projects, long delays have been 
experienced in implementation due mainly to institutional constraints particularly in the 
provinces and lack of clarity with regard to procedures. A report setting out progress to 
date is due as is a workplan setting out the timetable for implementation of the remainder 
of the programme before the end of the year. 
Conclusion 
The Department would prepare the report and workplan for this project as soon as 
possible. The meeting noted that there was a danger that failure to provide the 
workplan for the final phase of this project might lead to a gap in the coverage of 
expenditure. 
^? 
TECHNICAL ASSISTANCE PROGRAMME TO THE DEPARTMENT OF HEALTH Project No: 
'94-75070-058 
Project summary 
Health sector reforms planned and supported through this technical assistance project are 
aimed at improving the general health and well-being of majority of the population with a 
specific focus on the poorest populations in rural and urban areas. 
Total amount committed (ECUs): 2.5m 
Total amount disbursed (ECUs): lm 
• Financing decision made 11/94 
• Financing Agreement signed 03/95 
• First installment paid (06/95) 
• End of contract 31/12/97 
Project status 
The project is ongoing. Delays have been experienced along with the other health 
projects. However, expenditure has increased 100% in the first three months of this year. 
A workplan for the final phase of the project has recently been agreed by the Commission. 
A further report is expected covering up to 31st March 1997. It is anticipated that a 
further 31% of the total contract value will be spent in the second quarter, 25% in the 
third quarter and 22% in the final quarter of the year. 
YOUNG EUROPEAN DOCTORS FOR SA PROGRAMME Project No: '96-73200-012 
Project summary 
The project foresees the provision of 50 medical doctors as young European volunteers to 
hospitals in medically underserved areas in KwaZulu-Natal, Mpumalanga and Northern 
Province. The project will be run by GTZ/CIM in cooperation with Department of 
Health. The total EU contribution for the programme is 1,1 million ECUs ?. 750,000 
million ECUs will come from the EPRD, the balance from another EU programme 
budgetline 
Total amount committed (ECUs): 750,000 
Total amount disbursed (ECUs): Nil 
• Financing decision made 12/96 *© 
Project status 
The project has been agreed to but no Financing Agreement has been signed. The 
Commission has sent the annex related to technical and administrative provisions ior the 
Department to agree. The Department has recently forwarded comments on the annex to 
the Commission. * 
2-9 
Conclusion 
The Commission would provide the Department with the final text of the Financing 
Agreement for their scrutiny before signature. The Department will give their 
approval as soon as possible (within two weeks of receipt) to the agreement. 
Overall conclusions 
The Department will invite the Department of Finance and the Delegation to their 
next monthly meeting of project managers to see how the projects can be speeded 
up. The meeting noted that the performance of the Department in implementing 
existing projects would be taken into account when looking at future EU support for 
the sector. It was confirmed that the three existing agreements in the health sector 
will terminate at the end of 1997. 
3» ^ 
TRADE AND INDUSTRY 
Background 
There are three projects with DTI . Two on SMMEs and one on Industrial and Trade 
Policy. 
PRIVATE SECTOR DEVELOPMENT PROGRAMME - SMMEs Project No: '95 75070-006 
Project summary 
The project is divided into three components. The first part targets micro-lending NGOs 
by providing funds to build their capacity. This activity will be implemented by Khula 
Enterprise Finance Ltd, a section 21 company in which government has a 51% stake. The 
second element is an indemnity scheme, aimed at enabling SMEs to access capital from 
banks. It is being implemented by First National Bank and its subsidiaries and Khula. The 
third part of the programme is the provision of technical assistance to Khula. 
Total amount committed (ECUs): 11m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 06/95 
• Financing Agreement signed 05/96 
• Workplans prepared by implementing parties (Khula and FNB) 09-11/96 
Project status 
The project is not yet underway. Numerous delays have held up the implementation of the 
project. These have included institutional changes related to government agencies dealing 
with SMMEs and protracted discussions between the parties involved about procedural 
issues. Workplans have been prepared for some time and are still awaiting final agreement 
by the Department, before submission to the Commission. 
Conclusion 
The meeting agreed on a text for the DTI to convey to the Commission in agreeing 
the workplans relevant to the programme. 
"The DTI approves the management by Khula and implementation by private 
banks of the Micro and Small Enterprise Business Creation Scheme. The 
experience of the implementation of this programme calls for particular attention to 
be given to better defining the policy responsibilities of the Government vis a vis the 
implementation responsibilities of the private sector partners". 
It was agreed that the contract would not be split into its constituent components on 
the understanding that slow progress in one of the components would not be an 
impediment to financial disbursements to other elements. 
11 
3/ 
TRADE AND* INVESTMENT DEVELOPMENT PROGRAMME (SMMES) Project No: '96-73200-n 
Project summary 
The project, to be implemented through Ntsika Enterprise Promotion Agency (NEPA), 
will benefit previously disadvantaged SMEs providing training in the basic principles of 
international competitiveness for export. Furthermore, product specific groups of SMEs 
will receive 'hands on' integrated technical assistance in all aspects of export development. 
Opportunities to upgrade technology through a programme of international partnership 
instruments will be available to SMEs within specific product sectors. 
Total amount committed (ECUs): 8.9m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 10/95 
• Financing Agreement (FA) (signed 02/97 
Project status 
The project is not yet underway. Workplans need to be prepared by NEPA. A tender for 
the programme management unit needs to be launched. 
Conclusion 
The Commission and Ntsika will agree the terms of reference for consultants to 
prepare the workplan. These consultants will be contracted by Ntsika in the coming 
two weeks. In the meantime, Ntsika and the Delegation would begin immediately to 
prepare a tender dossier for the service contracts required for the projects. The 
meeting pointed out that normally consultants should not be required to draft 
workplans. 
DEPT. OF TRADE AND INDUSTRY (DTI) POLICY SUPPORT PROGRAMME Project No: '96-
73200-014 
Project summary 
The project aims to improve the policy development and implementation capacity of the 
DTI in issues con ^erning industrial policy and trade. 
Total amount committed (ECUs): 2m 
Total amount disbursed (ECUs): Nu 
• Financing decision made 12/96 
Project status 
Awaiting text, of Financing Agreement and signature thereof 
12 
2>2^ 
Conclusion 
The Commission will forward the text of the Financing Agreement to the 
Department in the coming few days. The Department and Delegation would 
complete the tender dossier for the service contracts required within the project, in 
the next two weeks. 
yi 
TRUTH AND RECONCILIATION COMMISSION 
Background 
The TRC signed their agreement directly with the EU in October. 
SUPPORT FOR THE TRUTH AND RECONCILIATION COMMISSION (TRC) Project No: '96-
73200-009 , 
Project summary 
EU support will assist the TRC's investigations unit, help with interpretation and 
translation and the research component of the Commission's work. The project covers 
the period up until the end of the year. 
Total amount committed (ECUs): 2m 
Total amount disbursed (ECUs): 1.56 
• Financing decision made 07/96 
• Financing Agreement signed 09/96 
• Workplan submitted to EU 01/97 
• First installment made 03/97 
• End of contract 12/97 
Project status 
The project is underway and on track. A first workplan was submitted early in the year 
and payment made soon after. 
Conclusion 
The TRC will meet in the coming three weeks with the Delegation to discuss 
financial issues and the selection of investigators. 
14 
2ft-
WATER AFFAIRS 
Background 
One project is on-going with the Department. A number of technical assistant contracts 
have been awarded following tender processes and these elements of the project are up 
and running. 
WATER DEVELOPMENT PROGRAMME - EASTERN CAPE Project No: '95-75070-004 
Project summary 
The project provides technical assistance to the Department, and particularly in the 
Eastern Cape, in project management, monitoring and evaluation and environmental 
issues. The EU contribution will also cover the extension of water supplies to 200 
communities in the province. 
Total amount committed (ECUs): 18m 
Total amount disbursed (ECUs): 724,000 
• Financing decision made 06/95 
• Financing Agreement signed 05/96 
• Tenders for programme management and technical assistance launched 01-09/96 
• Technical assistance teams in place 09-11/96 
• Workplans for water supply implementation 1997 sent to Brussels 03/97 
• End of contract May 1999 
Project status 
The project is underway. Four service contracts are operational concerning; project 
management, information systems, monitoring and evaluation and environmental technical 
assistance. A proposal for the first phase of the works element of the programme is with 
the Commission. 
Conclusion 
The Commission is expected to approve the workplan and make a payment of R18 
million in the coning days. 
15 
3,5 
EDUCATION 
Background 
There are two projects with the Department. 
LIBRARY BOOKS AND TRAINING FOR HISTORICALLY DISADVANTAGED 
INSTITUTIONS Project No: '95-75070-009 
Project summary 
The project will provide support for historically disadvantaged universities and technikons 
in the for of equipment, books and training. 
Total amount committed (ECUs): 11m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 10/95 
• Financing Agreement signed 05/96 
• Tender for management contract launched 07/96 
Project Status 
The project is not yet underway. The implementation of the project, and particularly of 
the establishment of the management unit have been delayed. The contract of the 
management of the project is currently being negotiated with The British Council. Once 
this unit is in place, implementation can proceed. 
Conclusion 
The Department will send a letter in the coming few days to the Delegation 
approving the appointment of the British Council. 
TECHNICAL SUPPORT TO THE DEPT. OF EDUCATION Project No: '96-73200-004 
Project summary 
The programme, to be managed by the Joint Education Trust (JET) will work mainly with 
provincial departments of education t^ "evelop and pilot Early Childhood Development 
and Adult Basic Education strategies. The programme will also focus on improving 
administrative and management capacity. 
Total amount committed (ECUs): 17m 
Total amount disbursed (ECUs): Nil 
16 
34 
• Financing decision made 07/96 
• Financing Agreement (FA) signed 02/97 
• Agreement between implementing agency (Joint Education Trust) and Department 
under discussion 
Project status 
Project not yet underway. Again, delays have been experienced in getting this project 
started. Initially this was due to discussion regarding the contractual relationships of the 
parties involved. Institutional constraints in the Department of Education have also 
hampered efforts to make decisions necessary to get the programme underway. However, 
the Joint Education Trust has drafted an interim workplan and established terms of 
reference for the technical assistant foreseen in the programme. 
Conclusions 
A meeting to be held on 16th April will discuss the interim workplan. The contract 
between JET and the Department is with the Director General and is expected to be 
approved in the coming few days. The tender documents for technical assistance 
were in Brussels. This tender would be launched within the next few weeks. 
Other projects 
The Bursary Programme: The Department will discuss with the Delegation the 
modalities for the transfer of the remainder of the Kagiso Trust Bursary Programme 
to the Tertiary Education Fund of South Africa (TEFSA). The meeting noted that 
the amount available for this transfer was around R30 - 35 million. The 
Commission stressed that no further commitments for bursary provision had been 
made. 
University of the North Maths and Science Programme (UNIFY). The Commission 
recalled the Financing Agreement and stressed the need to proceed with the tender 
that would provide technical assistance services for years 2 and 3. The meeting also 
resolved that the Department of Finance would convene a meeting between the 
Delegation and the Department regarding the UNIFY project at the University of 
the North. 
17 
^r 
MINERALS AND ENERGY 
Background 
This RDP project is being implemented by Eskom. 
NON-GRIP ELECTRIFICATION OF RURAL SCHOOLS Project No: '96-73200-007 
Project summary 
The project, to be implemented by the Department of Minerals and Energy and ESKOM, 
will provide non-grid electricity to 1,000 schools in the Eastern Cape and Northern 
Province. 
Total amount committed (ECUs): 15m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 07/96 
• Financing Agreement signed 02/97 
Project status 
Due to the brevity of the original project appraisal, the Department and Commission have 
agreed to conduct a review of the project before it gets underway. Meanwhile, Eskom 
have drafted technical specifications for the supplies that will be needed on the project. 
Conclusions 
The Commission had asked ISPRA to review the tender documents. The 
Commission would sign a contract in the near future with the consultant to 
undertake the review. 
18 
£* 
PARLIAMENT 
Background 
The Agreement was signed by the Speaker of the National Assembly in her capacity as 
President of the Speakers' Forum. 
PARLIAMENTARY SUPPORT PROGRAMME Project No: '96-73200-009 
Project summary 
The aim of the project is to empower legislatures both on national and provincial level to 
fulfill their democratic functions, namely; consideration of legislature, policy formulation, 
monitoring of the executive, constituency work and public education. 
Total amount committed (ECUs): 16m 
Total amount disbursed (ECUs): 0.6m 
Financing decision made 07/96 
Financing Agreement signed 10/96 
Interim workplan has been submitted to EU, 02/97 
First installment paid 03/97 
End of contract 04/99 
Project Status 
The project is underway and on track. A project coordinator and deputy coordinator have 
been appointed. An interim workplan has been submitted and approved covering the 
period 1st March to the end of June 1997. The project coordination team is currently 
preparing the 1st annual workplan. This is due to be submitted at the end of the month. 
Conclusions 
The annual workplan would be submitted in the 2nd or 3rd week of May. 
As regards future funding, the Commission pointed out that due to the scale of the 
existing project it was unlikely that further funds could be committed in the near 
future. 
19 
S3 
SAFETY AND SECURITY - EASTERN CAPE 
POLICING FN EASTERN CAPE Project No: '96-73200-008 
Project summary 
The project, will be implemented by the Provincial Ministry of Safety and Security over 
three years. It is jointly funded, with British ODA Improved civilian oversight of the 
Police Service, better management, improved infrastructure and management thereof and 
training will be promoted through the project. 
Total amount committed (ECUs): 9m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 07/96 
• Financing Agreement signed 02/97 
• Tender for technical assistance launched in February 
• End of contract 02/99 
Project status 
The project is underway and on track. A project manager has been recruited and the 
Project Steering Committee set up. A tender was opened on April 15th for the provision 
of technical assistance and the tender evaluation is underway. A fourth project steering 
committee to be held by the end of April will consider the first project report. 
20 
<f O 
HOUSING 
CATO MANOR DEVELOPMENT PROGRAMME Project No: '96-73200-01 
Project summary 
EU support for the RDP Presidential Project in Cato Manor is aimed in the following 
areas; the development of infrastructure, promotion of access to loan finance for housing 
and strengthening implementation capacity in the area of project management. 
Total amount committed (ECUs): 24.5m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 10/95 
• Financing Agreement (FA) signed 02/97 
• Tender for management unit launched 07/96 *o" 
Project status 
The project is not yet underway. Lengthy delays have been experienced. These have been 
caused by discussions about the role of the various parties involved. A contract is about 
to be signed with a company to provide technical assistance services. The project will 
soon be submitting an interim workplan. The ongoing conflict around land claims of the 
Cato Manor site have the potential to hamper project implementation. The Department 
stated that they felt this problem would be overcome. 
Conclusion 
The Commission is negotiating the signing of the contract for technical assistance. 
This should be done by month's end. 
21 
M 
JUSTICE 
Background 
There is one EU funded project which involves the Department. However, 
implementation is the responsibility of an independent foundation - the European Union 
Foundation for Human Rights. A proposed 'rider' to the Financing Agreement has been 
sent to the Commission which clarifies the relationship between the various parties 
involved in the Programme. 
HUMAN RIGHTS PROGRAMME Project No: '94-75070-066 
Project summary 
The programme uses NGOs as implementing agencies to support mdividuals and 
communities seeking access to their constitutional rights and basic services. The 
programme has four main objectives; to ensure that the public institutions dealing with 
human rights provisions of the Constitution function effectively, to encourage a strong 
NGO community in the sector, to increase legal provision to needy communities and to 
increase awareness about human rights. 
Total amount committed (ECUs): 15 m 
Total amount disbursed (ECUs): 3.8 m 
• Financing decision made 11/94 
• Financing Agreement signed 05/96 
• First installment paid (12/96) 
• End of contract 11/99 
Project status 
The project is ongoing. A number of delays were experienced in setting up the project, 
these revolved around the relationship of the Department to the project and the 
appointment of Board members for the Foundation. The programme is now running 
smoothly. The Commission has committed R21 million (approximately 3.8 million ECUs) 
for the Programme for this year, 80% of which it has disbursed. Of this, around R9 
million has already been committed to 21 individual projects. 24 NGOs are currently 
involved in the implementation of these projects. 
22 
<R, 
AGRICULTURE 
PARTICIPATION BY SOUTH AFRICA IN THE SADC REGIONAL FOOD SECURITY 
TRAINING PROGRAMME Project number 97/73200/003 
Project summary and status 
The project is an ongoing initiative within the SADC region. This project allows South 
Africa to participate in the programme using EPRD resources whereas the rest of the 
programme is funded from the European Development Fund. The regional programme 
contributes to agreed SADC goals for the food security sector. 
A draft copy of the Financing Agreement together with the technical and administrative 
provisions annex of the Financing Agreement have been sent to the department for 
approval. A workplan has been drafted by the project management and sent to the 
Department of Agriculture for approval. Terms of reference for two tenders have been 
sent to the Department for approval. 
A financial commitment is due to be formalised by the Commission in the coming days. 
Total amount committed (ECUs): 300,000 
Total amount disbursed (ECUs): Nil 
• Financing decision still to be taken 
• Financing Agreement still to be signed 
• End of contract 09/98 
Conclusions 
The Department of Finance will contact the Department of Agriculture to ensure 
they provide agreement for the Financing Agreement text and tender dossiers. This 
would be done in the next two weeks. 
23 
<*1 
PUBLIC SERVICE AND ADMINISTRATION 
Background 
This is the only programme with the department. It will be implemented by the public 
service training institute, SAMDI and by a consortium of six universities, JUPMET. 
PUBLIC SERVICE MANAGEMENT DEVELOPMENT PROGRAMME Project No: '96-73200-003 
Project summary 
The aim of the project is to enhance the performance and management capacity- of the 
Public Service. The three year project will be implemented by the Department of Public 
Service and Adrninistration along with training institutions. The project will consist of 
training of public servants and technical assistance to the department with regard to 
training policy. 
Total amount committed (ECUs): 19m 
Total amount disbursed (ECUs): Nil 
• Financing decision made 07/96 
• Financing Agreement (FA) signed 02/97 
Project status 
The project is not yet underway. The long process of a pré-qualification tender is the 
main reason for this. The pré-qualification tender for a management unit is currently being 
evaluated. 
Conclusions 
The Commission will approve a shortlist and tender dossier for the second phase of 
the tender within the next three weeks. The workplan for JUPMET cannot be 
approved until one is received from SAMDI to ensure there are no overlaps. 
24 
H 
FINANCE 
TECHNICAL ASSISTANCE CONSULTANCY PROGRAMME Project No: '95-75070-007 
Project summary 
The project provides a facility for the engagement of consultants and technical assistants 
to work on various aspects of the EPRD throughout the project cycle. The facility is 
managed by GTZ. 
Total amount committed (ECUs): 5m 
Total amount disbursed (ECUs): 241,000 
• Financing decision made 06/95 
• Financing Agreement signed 05/96 
• Open tender launched 03/96 
• Contract awarded to GTZ 12/96 
• First installment made 12/96 
Project status 
The project is underway and on track. 
S ADC FINANCE AND INVESTMENT RESEARCH PROGRAMME Project No: '96-73200-15 
Project summary 
The project will consist of a major study on finance and investment in the SADC region. 
Total amount committed (ECUs): 1.1m ' 
Total amount disbursed (ECUs): Nil 
• Financing decision made 12/96 
• Financing Agreement signed 02/97 
• Tender concluded 
• End of contract 02/98 
Project status 
Negotiations with the company which will undertake the project have been concluded. 
Conclusion 
The Commission will sign the contract with the consultant in the coming days. 
•k-k-k 
25 
^ 
Without prejudging the decisions to be made about appraising or financing future 
projects, which would be taken in the light of the priorities to be agreed in the MIP, 
the following partners also took part in the consultations to present their plans or 
proposals. 
3.2 Projects under appraisal 
The Department of Agriculture in the Free State Province reported to the meeting that a 
project preparation exercise had been undertaken early this year to identify possible EU 
support. A project, proposal for a small projects fund for community initiatives in 
economically viable and sustainable food and income generation activities is in its final 
stages of development. 
The Department of Labour reported on a project identification exercise undertaken by the 
Department and Commission which is nearing conclusion. The exercise had explored 
possible EU assistance for the development and implementation of government's training 
policy. 
The Department of Housing reported on progress regarding possible EU support for RDP 
Special Integrated Presidential Projects ('SIPPs') in Northern Province and Mpumalanga. 
A preliminary * pre-feasibility' study was undertaken at the end of last year. Terms of 
reference have been developed for a further study to review the proposals for EU support 
and to strengthen the capacity-building emphasis of the project. 
3.3 Other projects discussed 
The Department of Arts Culture Science and Technology informed the meeting of South 
African policy in the sector and of the various projects already identified by the 
Department. The meeting was informed that terms of reference for a study to explore 
possible EPRD support for Science and Technology had been forwarded to the Delegation 
via the Department of Finance. The representatives of both the Department and the 
Department of Finance pointed out that Science and Technology was a government 
priority and requested a response from the Commission regarding the proposed study at 
the earliest opportunity. 
The Department V Public Works has submitted terms of reference to the Delegation via 
the Department of Finance proposing a project preparation study to look at possible EU 
support for the restnicturing of the unit ir the department dealing with public works policy 
as well as possible management and training support. 
772C Department of Finance has submitted a request to the Commission to explor~ the 
possibility of EU support for an initiative to bolster Financial Management in the Office of 
the Accountant General. The meeting was also informed that a proposal was being 
developed for support to Project Management in the Department of Finance. Discussions 
26 
H 
on these proposals would be held between the Department and the Delegation within the 
coming month. *o 
The Department of Transport had submitted a request to the Commission via the 
Department of Finance regarding support for a port management project in the SADC 
region to be organised by the International Maritime Organisation (IMO). The 
Commission responded that the request had not yet been received and noted that a 
proposal for a regional project would need to be submitted in liaison with the appropriate 
SADC structures. The Commission also mentioned that a major transport study in the 
region had recently been agreed to. 
The Department of Water Affairs and Forestry recalled to the meeting that they had 
submitted a request via the Department of Finance for the Commission to conduct a study 
into the Working for Water project. A response was expected from the Commission 
within the coming few weeks. 
The National Youth Commission based in the Office of the Deputy President informed the 
meeting of its plans to encourage the promotion of youth issues within the work of 
government. 
4. SECTOR SUPPORT PROGRAMMES 
The Department of Finance recalled their earlier request for the Commission to consider 
assistance for targeted Sector Support Programmes in the areas of Health and Education. 
The Department said that in the period of major budgetary restructuring by government in 
both sectors, such sector support was a major priority of the government for EPRD 
assistance. The Department further recalled the discussions between Deputy Minister Gill 
Marcus and Acting Director General Philippe Soubestre on this subject at their meeting in 
February. 
The Department underlined the urgency of the request and asked the Commission to 
consider the deployment of a team of experts as soon as possible to appraise the proposal 
The Commission took note of the request and suggested the matter be referred to 
discussions of the MEP. 
5. OVERALL CONCLUSION OF THE SESSION 
The session on project status provoked discussion on a number of issues. The conclusions 
of which are summarised below. 
• It was agreed that the issue of future programmes for support under the EPRD would 
be discussed in the context of the MTP. 
27 
^r 
• It was observed that a Department's ability to implement existing projects swiftly and 
successfully would be taking into account in decisions on future EPRD support. 
The coherence of projects with government and departmental policy was essential to 
ensure successful and sustainable projects. 
The volume and diversity of projects being undertaken and those in the pipeline 
illustrated the need for a stronger focus and a system of processing government 
priorities was required. 
6. OTHER MATTERS 
• The meeting agreed that annual consultations on the status of cooperation would take 
place in February of March. These consultations would review the status of projects 
and discuss policy and procedural issues related to the EPRD. A mid-term review 
would be held in September at a lower level and involve a review of only those projects 
in which discussion was required. Regular two-monthly meetings would be held 
between the Delegation and Department of Finance. 
• The meeting further agreed on channels of communication between the Commission 
and Government with regards to the EPRD. The Department of Finance would 
address all correspondence to the Head of Delegation. Correspondence between 
government and commission in regard to projects would be sent by the Department of 
Finance except where technical issues and operational matters of existing projects were 
concerned. In this case the Department responsible for the project would correspond 
directly with the Delegation with a copy to the Department of Finance. 
Signed on 18th April 1997 in Pretoria. 
Shaheed M Rajie Jean-Claude Boidin 
For the Government of the For the European Commissi'. 
Republic of South Africa 
28 
^ 
ANNEX 1 
Jean-Claude Boidin 
Olivier Ruyssen 
Ervvan Fouéré 
Robert De Vogelaere 
Abdoul-Aziz M'Baye 
Richard Zink 
Roberto Rensi 
Angelos Pangratis 
Janet Davies 
Pinky Mashigo 
Oda van der Kemp 
Tsepo Monaledi 
Logan Rangasamy 
Carlos Texeira 
Alfredo Perdiguero 
Peter Larsen 
Shaheed Rajie 
Adriaan Woudstra 
Israel Kidane-Mariam 
Seamus Jeffreson 
Jan Breytenbach 
Willem Bosnian 
Eh Bitzer 
Jim Paterson 
Laetitia Jackson 
Danie Meyer 
Rina-Louise Pretorius LIST OF PARTICIPANTS 
European Commission 
European Commission, Brussels 
EC Delegation, Pretoria 
South African Delegation 
Department of Finance 
EU - Technical Assistant 
State Tender Board 
Department of Foreign Affairs 
SA Mission, Brussels 
Sue Lund 
Pat Nkambule Department of Land Affairs 
29 
\3 
Paul Zille EU Technical Assistant 
Hennie van Rensburg 
Catherine Makwakwa 
Tsakani Mnisi 
Vanessa van Heerden 
Alicia Stevens 
Peter Ngobese 
Kariem Hoosain 
Kalinga Pelpola 
Ghaleep Jeppie 
Chris Madiba 
Daan Visser 
Chris Klopper 
CaarliiefLombard 
Richard Ndaba 
Sebolelo Nomvete 
Nohtha Linka 
Nick Taylor 
Rob Adam 
Marjorie Pyoos 
Nick Grobler 
Hannes Opperman 
Rodney Buttle, 
Lawson Naidoo 
Peter Du Plessis 
Peter van Straaten 
Gavin Bradshaw 
Piet Biesheuvel 
Johan Walhs 
Zinkle Mapumulo Department of Health 
Department of Trade and Industry 
Truth and reconciliation Commission 
Department of Water Affairs 
Department of Education 
Joint Education Trust 
Department of Arts, Culture, Science 
and Technology 
Department of Minerals and Energy 
Eskom 
Parliament 
SA Police Service 
SA Police Service (Eastern Cape) 
Safety and Security (Eastern Cape) 
ODA technical assistant 
Department of Housing 
Department of Justice 
30 
5^ 
Precious Dlamini 
Nicolas Marcoux 
Patrick Lekala 
Ian Goldman 
Bongani More 
Elroy Africa 
Adrienne Bird 
Adri Friess 
Steve Mokoena EU Foundation for Human Rights 
Department of Agriculture, Free 
State 
Technical assistant 
Department of Public Works 
Department of Labour 
National Youth Commission 
51 
Annex VII 
MULTI-ANNUAL INDICATIVE PROGRAMME 
FRAMEWORK FOR COOPERATION 
BETWEEN 
THE REPUBLIC OF SOUTH AFRICA AND THE EUROPEAN 
COMMUNITY 
May 1997 
<a i 1 
MULTI-ANNUAL INDICATIVE PROGRAMME 
A FRAMEWORK FOR COOPERATION 
BETWEEN SOUTH AFRICA AND THE EUROPEAN COMMUNITY 
I. GENERAL FRAMEWORK 
1. The Government of South Africa represented by Deputy Minister of 
Finance Ms. Gill Marcus, the European Commission represented 
by Mr. Philippe Soubestre, Director General for Development and 
the European Investment Bank represented by Mr. Justin Loasby 
held discussions in Cape Town on May 13, 1997 with a view to 
determining the general guidelines of cooperation between South 
Africa and the European Community. 
2. During these discussions, the indicative programme of the 
Community aid to South Africa was drawn up in accordance with 
the cooperation Agreement signed between South Africa and the 
European Community in October 1994. 
3. The representatives of the Government of South Africa and of the 
European Commission underlined that their cooperation is based 
on the following priorities, and that all the arrangements outlined 
in this programme will be inspired by them: 
• Development and consolidation of democracy, and of the rule 
of law as well as respect for human rights and fundamental 
freedoms. 
• Improvement in the standard of living as a contribution to 
poverty alleviation of previously disadvantaged communities 
through the development support programmes to basic social 
sectors in areas like health, education, water supply and 
sanitation ..etc. 
• Sustainable economic and social development with particular 
emphasis in the development of human resources talcing into 
account questions of gender and environmental protection. 
• Promotion of the private sector development that will 
encourage the establishment of sustainable income 
generating activities to historically disadvantaged part of the 
population. 
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4. These priorities will be implemented systematically on the basis of 
the Integrated Approach - The Project Management Cycle. 
5. Within this general framework, the overall objective pursued 
through the cooperation under this Indicative Programme is 
redressing the inequalities inherited from the system of apartheid. 
As poverty and the inequalities are found predominantly in the ex-
homelands, cooperation between South Africa and the European 
Commission will be primarily concentrated on the improvement of 
the living standards of the disadvantaged communities in these 
areas. In this context, particular emphasis will be given on the 
necessity of the improvement of the living condition of women. 
6. As regards programmable financial cooperation with South Africa, 
the Community envisages an annual indicative financial envelope 
of about 125 million ECU for the period up to the end of 1999. 
7. Furthermore, the European Investment Bank could contribute, 
from the resources which it manages, to the financing of productive 
investment projects in compliance with the criteria and Statute of 
the Bank. 
8. The effectiveness of any development effort requires a stable macro-
economic framework facilitating sustainable economic growth. The 
South African Government issued 'A Macro-Economic Strategy for 
Growth, Employment and Redistribution' (GEAR) in June 1996. In 
the medium to long run, the Government commits itself to pursue 
the objectives of the Strategy which seeks to attain, among others, 
a competitive fast-growing economy.which creates sufficient jobs, a 
redistribution of income and opportunities in favour of the poor 
and a society in which sound health, education and other services 
are available to all. 
II. FOCAL AREAS OF COOPERATION 
The European Programme for Reconstruction and Development 
(EPRD) earmarks a reference financial amount of 500 Million ECU 
for the period from lsl January 1996 to 31st December 1999. Thus, 
the annual allocation for the EPRD for the period up to end of 
1999 is about 125 Million ECU. This amount has to be committed 
every year for various agreed projects/programmes from within the 
focal areas. Considering the limited resources available for funding 
projects, it was agreed to identify focal areas of intervention on 
which the Commission's support will be concentrated. Focusing 
the EPRD support in a limited number of intervention areas will 
help avoid thinly spread activities. Such an approach will assist in 
targeting development assistance on impact-oriented priority 
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sectors of the Government which are coherent with the 
Government's overall development policies. ; 
The parties have agreed on the following areas of cooperation: 
, 
Focal Areas 
1. Basic Social Services 
• Sector Support 
Program for 
Health & 
Education Total 
Indicative 
Programmable 
Allocation 
50-60% 
40-50% Channels of Implementation 
(Indicative % Allocations) 
Government 
100% Agents of 
Decentralized 
Coop. 
• Other Activities 
2. Private Sector 
Development 10-20% 
15-20% 
3. Good Governance 
and Democratization 15-20% 50% 
50% 
50% 50% 
50% 
50% 
Other Areas 
4. Regional 
Cooperation 
5. Unallocated +/-5% 
+/-5% 100% 
50% 50% 
In implementing Government channeled programmes, 
opportunities to develop collaboration with agents of decentralized 
cooperation will duly be sought, and appropriate modalities to 
speed up effective delivery will be elaborated. 
The Multi-Annual Indicative Programme of the European 
Programme for Reconstruction and Development (EPRD) will also 
take into account human resource development, gender issues and 
environmental protection as cross sectoral themes. 
Decentralized cooperation is a mechanism or an instrument used 
for implementation of part or whole of various programmes. 
Development programmes covered by decentralized cooperation 
shall be within the focal areas indicated above and shall be based 
on the RDP objectives and principles. Formulation of projects or 
SS" W â 
programmes will be designed in a manner that is coherent with the 
Government's sectoral policies and priorities. See chapter III. 
1. BASIC SOCIAL SERVICES SECTOR 
1.1 Specific Objective 
The main objective of support to the basic social services sector 
is to contribute to an improvement in the standard of living of 
the poor in disadvantaged community areas. Interventions, are 
multi-dimensional and designed to contribute to the social 
transformation of the inherited inequalities . Particular 
emphasis will be given on 'sectoral support to education, 
training and health'. 
1.2 Sectoral Policies and the Government's Commitments 
The Government has already given particular focus on the 
provision of basic social services development to the historically 
disadvantaged communities. This has been elaborated in the 
White Paper for Reconstruction and Development Programme 
(RDP). The Government is exerting maximum effort to ensure 
that proper mechanisms are in place to enhance convenient 
access to economic opportunities as well as easier access to 
health, education and to other social amenities. Taking account 
of the discrepancies inherited from the past, sectoral policies 
were drawn for health, education and training. A White Paper 
on water supply and sanitation was adopted stating that water 
supply is a human right issue; and that due to the scarcity of 
quality water supply, it is to be given economic value. See 
Annex 2. 
The Government has confirmed its commitment to the 
transformation of the social sector in favour of the 
disadvantaged communities by undertaking a reprioritisation of 
the national budget based on the objectives and principles 
envisaged in the RDP policy document. This would result in 
additional budgetary allocation for operation and maintenance 
of social infrastructures and basic social services. 
It will ensure that adequate financial and human resources will 
be provided in the education and health sectors to guarantee 
sustainability of agreed programmes/projects including 
coverage of recurrent expenditures. It will also review policy 
developments (including budgetary allocations) during annual 
consultations. 
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Support of the European Community 
Support of the Community in basic social services development 
will have as its goal improvement in the standard of living of the 
historically disadvantaged communities both in rural and urban 
areas. The programme will focus on key initiatives in support of 
primary education, further education and training and in 
primary health, HIV/AIDS and reproductive health. 
Complementary activities such as provision of water and basic 
sanitation, urban upgrading, access road may also be 
supported. 
The "sector support programmes" on health and education will 
provide financial resources to cover capital and equipment 
expenses related to the implementation of specific Government 
priority projects and programmes to be agreed upon after joint 
appraisal. In duly substantiated cases recurrent expenditures 
could be covered provided they are explicitly stipulated in the 
financing agreements. 
Questions related to gender and impact of the projects on 
environmental protection will receive special consideration 
during the project formulation stage and in the course of 
development of the various interventions. 
2. Private Sector Support 
Specific Objective 
The primary objective of the private sector support is to 
encourage income generating and employment creation 
activities in favour of the previously disadvantaged part of the 
population in both the rural and urban areas. It will also take 
as its objective the enhancement of linkage opportunities of 
small and medium enterprises with the developed sectors of the 
economy. 
Sectoral Policies and the Government's Commitment 
The 'Macro-Economic Strategy' document of 1994 takes 
promotion of small and medium enterprise development as a 
key element for employment creation and income generation. It 
entails areas related to creating an enabling environment to 
investment, trade policy reform, including in enhancing 
productivity and competitiveness. The strategy also covers 
competition policy which introduces anti-trust legislation to 
create a more competitive and dynamic business environment. 
53- p^ 5 
It also stressed that due to the obstacles encountered in the 
past, the SMME sector is to receive particular attention. 
In order to address the issue, a White Paper was issued on 
small business promotion. Various programmes and 
institutions such as a business centre for small enterprises, a 
promotion agency to provide non-financial assistance, financing 
scheme for wholesale loans, loan guarantee schemes and a 
competitiveness fund for consultancy advice on technology and 
marketing have been established. 
Support of the European Community 
Support of the Community will primarily aim at SMMEs (small, 
medium and micro-enterprises) including possible linkages to 
developed parts of the economy. Promotion of linkages will 
reinforce new enterprises by activating resources (financial, 
services and training facilities...etc.) of the former in favour of 
the latter. Assistance could entail business support in new 
ventures through outsourcing, increased competitiveness, the 
outcome of which would envisage increased sales and job 
creation. Within the private sector development, small scale 
farmers might be considered as potential target group for the 
EPRD support. 
SMME support will address gender issue by giving particular 
attention to the needs and aspiration of women who play a key 
role in many of the informal business activities. 
Particular attention will also be given to the role of the financial 
intermediaries such as the banks, NGOs and the like by 
encouraging and supporting them to offer their services to the 
disadvantaged population previously excluded from those 
services. Guarantee and indemnity schemes, technical and 
other targeted assistance to the public and private sector 
institutions and companies can provide through the 
participatory support schemes. 
Closer collaboration and partnership with chambers of 
commerce, business schools and with other professional 
organizations dealing with private sector development could be 
encouraged as well as funding of targeted vocational and 
managerial training. 
The contents of future programmes in these areas will take 
account of the experience gained in implementation of ongoing 
projects/ programmes. 
h 
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(5) 
3. Good Governance and Democratization 
Specific Objectives 
The main objective of the EPRD support to good governance is to 
enhance the effective and efficient management system of the 
national, provincial and local government administrations 
including that of strengthening the legislature (parliament) and 
the judiciary systems. The other objective of the support is to 
advance and deepen a transparent and accountable democratic 
system of Government with the active participation of the 
society. Programmes directed to local governments shall put 
emphasis on increasing their capacity to improve living 
conditions of their constituencies. 
Sectoral Policy and the Government's Commitment 
One of the major components of the RDP has been its emphasis 
on capacity building of the provinces and local governments. 
Issues related to democratization, good governance and rule of 
the law are all well entrenched in the new constitution which 
underscores on the basic tenets of democracy which entail a 
non-racial and non-sexist society. 
The Department of Constitutional Affairs and Local Government 
has been established to strengthen the capacity of local 
governments to enable them to effectively run the day-to-day 
administration in their localities and to ensure that they are 
capable of efficient delivery of services to their constituencies. 
The crime prevention strategy recently adopted is another 
major initiative taken by the Government which targets at 
rooting out the serious crime situation in the country. The 
Government will continue committing adequate budgetary 
allocations and human resources in order to ensure 
sustainability of implementation of policies, in particular in 
crime prevention initiatives. 
Support of the Community 
• The Community will provide support in good governance 
related initiatives. The assistance will focus.on the 
restructuring and reorientation of public service, capacity 
building and establishment of appropriate management and 
information systems at national, provincial and local levels. 
• Special emphasis will be given to capacity building in 
departments (national and provincial), local governments, 
professional associations, NGOs ..etc. involved in the 
S3 A~V 7 (M 
management of the focal areas of the EPRD. These will focus 
mainly in policy formulation, programming, budgeting and 
service delivery. 
Assistance to the legal system will address efficiency in the 
legal practice. The support will envisage restructuring of the 
judiciary system and training of judges and technical advisory 
services in specific areas as identified by the Government. 
Support to crime prevention initiatives and human right 
issues shall be part of the programme. In general the 
cooperation will aim at attaining a qualitative change in legal 
practice so that confidence in the legal system will prevail and 
that the rule of law in the country will be enhanced. 
4. Regional Cooperation 
Specific Obfectives 
The primary objective of regional cooperation is to incorporate 
South Africa within the regional programmes being implemented 
through the Southern African Development Community 
(SADC). 
Government's Policy and Commitments 
The RDP White Paper and the Macro-Economic Strategy clearly 
stress the importance of regional cooperation. Both policy 
documents reiterate that growth and development within South 
Africa cannot be looked at in isolation from the regional 
development. As a result, South Africa has been nominated as 
a coordinator of the financial and investment portfolio of the 
SADC region. 
South Africa has already committed itself in the studies to be 
undertaken in the areas of regional investment and finance 
matters. 
Support of the Community 
The SADC and the Commission have agreed on the following 
focal areas: 
Infrastructure and Services 
Trade, Investment and Finance 
Food, Agriculture and Natural Resources 
SADC Secretariat for Capacity Building 
Other Activities. 
t. 
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Even though the modalities of cooperation will be elaborated in 
due course, the first two major sectors of the regional 
programmes represent the focal areas of concentration. 
Programmes falling under food, agriculture and natural 
resources; and capacity building of the SADC secretariat will be 
supplementary support programmes. 
5. Cooperation Outside of the Focal Areas 
Unallocated resources referred to in page 3 may be used to 
finance limited activities (e.g. preparatory studies and pilot 
programmes) of common interest. Support to science and 
technology will be addressed from this resource allocation. 
Appropriate resources will also be earmarked to reinforce the 
capacities of the NAO and the Commission services for the 
appraisal, monitoring, implementation, evaluation and ensuring 
adequate visibility in the public of the above mentioned 
activities. 
6. Horizontal Themes: Human Resource Development, Gender 
and Environmental Protection 
Programmes that will be developed within the focal areas will 
have cross-sectoral support dimensions translated into practice 
through three horizontal themes - human resource 
development, gender and environmental protection . 
Human resource development is an important element in the 
EPRD initiatives. Attention will be given to training and 
technical assistance related to capacity building and 
institutional development. In addition, the support will address 
entrepreneurial, technical and vocational training. The latter 
initiative will have a strong emphasis on training and advisory 
services on job creation in both formal and informal sectors 
particularly benefiting the youth and women, 
Gender sensitivity assessment has crucial implications for 
achievement of all development objectives. Gender analysis 
should, therefore, be addressed in the conception, design and 
implementation of all development policies and interventions as 
well as in monitoring and evaluation stages. 
Environmental protection and preservation are key factors in 
all development initiatives. The primary reasons for performing 
environmental assessment, which include socio-cultural 
elements, are to improve, the quality of projects and their 
sustainability through direct discussions with stake-holders and 
C\ 
beneficiaries. Development programmes financed under the 
EPRD, need to take account of environmental consideration at 
all phases of the ^project management cycle'. 
III. DECENTRALIZED COOPERATION 
Decentralized cooperation is an instrument for implementation 
of development projects or programmes at local and grass root 
levels. A minimum of 25% of programmable resources will be 
allocated for implementation through agents of decentralized 
cooperation. 
Agents of decentralized cooperation mainly cover decentralized 
public authorities, rural and village groups, cooperative, trade 
unions, teaching and research institutions, NGOs, other 
associations including professional and business associations, 
groups and agents which are able and wish to contribute to the 
development of the country on their own initiatives, providing 
that the agents and/or the operations are non-profit making. 
The historical involvement of civil society in the evolution of the 
present day South Africa has resulted to the widespread 
presence of agents of decentralized cooperation'. These 
partners have, in general, proven to be an effective instrument 
for implementation of grass root developments. Moreover, they 
have often shown efficiency in delivery of services. The support 
given to programmes being implemented through decentralized 
cooperation mechanism will, however, be within the focal areas 
. stipulated above, i.e., basic social services, private sector 
development, and good governance and democratization. 
Identification, preparation of projects and signing of agreements 
with agents of decentralized cooperation will be handled by the 
EU Commission.. The implementing agencies will be 
accountable to the Commission. However, copies of the 
agreements and progress reports on implementation of 
projects/programmes will be submitted to the Department of 
Finance on a regular basis. 
IV. EIB INTERVENTION 
The EIB loans can be made available to borrowers in the public 
and private sectors. The support will focus on long-term 
investment projects which will enhance and be coherent with 
the RDP principles and objectives. In line with the Bank's 
normal requirement, projects have to be evaluated against 
financial and economic viability and should be technically 
feasible taking into account the environmental implications. 
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V. MODALITIES OF PROGRAMME PREPARATION, 
IMPLEMENTATION, MONITORING AND EVALUATION 
Appropriate qualitative exercise will be emphasized during the 
identification and formulation (appraisal) phases of the project 
cycle following the logical framework approach. The financing 
proposals emanating from the project formulation documents 
will result in preparing the financing agreements. Attention will 
be given to regular follow-up and monitoring of project 
implementation. Ongoing and ex-post evaluation of the 
programmes will receive due attention. 
The Government of South Africa will appoint a National 
Authorizing Officer (NAO). The NAO will designate an 
appropriate official in the Department of Finance to act as 
Deputy National Authorizing Officer to handle day-to-day 
.activities related to EU development assistance. 
The status of non-national technical assistants and their 
dependents with regard to exemption from customs duties, 
income taxes, residence and work permits, imports of personal 
effects, open and management of bank accounts, arrest and 
detention and settlement of disputes and other relevant matters 
will be addressed by exchange of letters between the 
Department of Finance and the European Commission. 
The implementation of the EPRD projects will be supported with 
technical assistance experts. The specialists will be expected to 
play an important role in expediting the tasks related to 
fulfillment of the project management cycle. In the course of 
their duties, the transfer of skills and capacity building to their 
counterparts will be ensured. In order to attain maximum 
coordination, coherence and complimentarity of programmes; 
an effective mechanism of consultation with other donors, in 
particular with the EU member states, will be undertaken. 
The Community's annual allocation for South Africa will be 
decided by the end of each year in the framework of its 
budgetary procedure. In order to speed up.the implementation 
process, the South African Government will identify specific 
government executed projects for the subsequent year latest at 
the beginning of the last quarter of each year. The project ideas 
will be discussed and elaborated with the EU Delegation during 
the last quarter of the year. 
The implementation of the projects being drawn from the multi-
annual indicative programme begins with the signing of the 
financing agreements for the specific projects. Implementing 
agencies arc required to have approved annual work plans and 
Q 
have to submit regular reports as stipulated in the respective 
financing agreements. 
The Annual consultation will take place tentatively in 
February/March of each year. It will review the status of 
implementation of the various project/programmes. The Annual 
Consultation will also address ongoing policies including 
budgetary issues within the focal sectors. Furthermore, it will 
elaborate projects and programmes to be committed for the 
ensuing year. 
There will be a mid-term review tentatively in September or 
October of each year which will review implementation 
constraints and programming of uncommitted funds. 
Besides regular follow up and monitoring mechanism will be 
established between the Department of Finance and the EU 
Delegation on a monthly basis. 
The tendering system will be transparent and shall be open, fair, 
cost effective and competitive. It will be implemented according 
to the relevant EC regulations (i.e. Financial regulation 
applicable to the European Communities General Budget; 
Council regulation (EC) 2259/96 of 22 Nov. 1996 on 
Development with South Africa). The closing dates and times 
for the invitation of tenders will be coordinated by the 
Commission in conjunction with the appropriate state authority. 
The Multi-Annual Indicative Programme will enter into effect six 
weeks upon signature by the South African Government and the 
European Commission, unless one party advises the other to 
the contrary within this period. 
At the request of one of the parties and when the circumstances 
do justify, there may be a review of the agreed indicative sectoral 
allocations and/or other provisions of the present Multi-Annual 
Indicative Programme. 
Done in Cape Town, Republic of South Africa, on the fourteenth 
day of May 1997, in three originals. 
For the Government Fof the Commission 
of 1 of the 
South Africa European Communities 
Of 12 
Annex 1 
MEMORANDUM OF UNDERSTANDING 
SUPPORT OF THE EUROPEAN INVESTMENT BANK TO THE 
REPUBLIC OF SOUTH AFRICA TOWARDS THE 
IMPLEMENTATION OF DEVELOPMENT COOPERATION 
With reference to Section 1/7 and Section IV of the Multi-Annual 
Indicative Programme (Framework of Cooperation between 
South Africa and the European Community), the European 
Investment Bank (the "Bank") could contribute to the financing 
of productive projects and programmes - or other investments 
aimed at promoting the private and public sectors - in particular 
in industry (including agro-industry), commercial agriculture, 
tourism, mining, energy, water and sewerage, transport and 
telecommunications, as well as other services linked to these 
sectors. 
The determination of the amounts and the conditions for the 
financing of the projects will depend on the results of a detailed 
appraisal of every project, carried out in compliance with the 
procedures of the Bank. 
The ceiling amount to be made available by the Bank under the 
- two Framework Agreements is 675 (300 + 375) MECU for the 
period to end 1999. 
The Bank takes note of the intention of the Government of 
South Africa to submit proposals to the Bank, or to authorize 
that proposals be submitted to it, for financial assistance in the 
following areas: 
• Assistance to the small and medium scale enterprise 
sector through approved financial intermediaries or 
through government; 
• Investment in infrastructure (e.g. electricity, water and 
telecommunications); and 
• Development of operations in the industry (including 
the agro-industry), mining, tourism,transport sectors. 
With respect to the financing by the Bank in South Africa, both 
parties undertake that operations from the Bank's own resources, 
whether made directly or through intermediaries, will be in 
accordance with the provisions as stipulated in the Framework 
U Gi 13 
Agreements for financial cooperation between the Government of the 
Republic of South Africa and the Bank, the first as signed on 12 
September 1995, and the second to be signed in the second half of 
1997. During April 1997, consultations on the second Framework 
Agreement for financial cooperation between the Republic of South 
Africa and the European Investment Bank commenced. 
The Bank draws attention to the fact that this programme could be 
suspended in the event that the Government of the Republic South 
Africa were to fall into arrears in its obligations to the Bank. 
Signed in Cape Town, Republic of South Africa, on May 2, 1997. 
.wÀ.Mfff^ 
On behalf of the Government On behalf of the of the 
Republic of South Africa European Investment Bank 
4 14 
ANNEX 2 
BASIC GOVERNMENT POLICIES 
1. The Reconstruction and Development Programme (RDP) 
Following the democratic election in April 1994, a White Paper 
on Reconstruction and Development was issued in November 
1994. The White paper is a policy framework for integrated and 
coherent socio-economic progress and transformation of South 
Africa. It is a basic policy document which addresses key areas 
of interventions in order to redress the political and socio­
economic imbalances of the apartheid legacy. 
The RDP has the following six basic principles: 
a) Integrated and sustainable development 
b) People-driven in the process of meeting the needs with 
maximum transparency and inclusivity 
c) Peace and security 
d) Nation building 
e) Meeting basic needs and building infrastructure 
f) Democratization 
The RDP policy document refers to the following five key 
programmes: 
a) Meeting Basic Needs:-- This include job creation, land 
and agrarian reform, housing, water and sanitation, 
energy supplies, health care and nutrition...etc. 
b) Developing Human Resources:- The key government 
support area is transformation of the educational and 
training system 
c) Building the Economy:- It highlights issues related to 
barriers to growth and investment such as government 
dissaving, capital outflows, low exports, high import 
propensity and low productivity. The close economic 
relationship with the neighbouring countries and the 
need to develop a comprehensive strategy are 
emphasized. 
d) Democratizing the state and society 
e) Implementing the RDP. 
The economic policy framework of the RDP White Paper 
highlights the creation of a strong, dynamic and balanced 
economy which will; 
a) create jobs in both formal and informal sectors 
Ctt 
b) alleviate poverty, low wages and extreme inequalities 
inherited from the apartheid system 
c) address economic imbalances and structural problems 
in the various sectors 
d) integrate into the world economy by raising the 
efficiency of the manufacturing capacity and increase 
country's export potential 
e) address uneven development within the region 
f) ensure that no one suffers from discrimination in 
hiring, promotion or training on the basis of race or 
gender 
g) develop the human resource capacity 
h) democratize the economy and empower the historically 
disadvantaged. 
In order to achieve the RDP objectives, the Government stressed 
on the following basic economic development strategy: 
a) Financial and monetary discipline 
b) Establishment of a conducive environment for 
economic growth. 
c) Trade and industry policies designed to foster a greater 
outward orientation. 
d) Modernization of human resource programmes 
e) Reform of the labour market institutions to facilitate 
fair and equitable collective bargaining. 
A MACRO-ECONOMIC STRATEGY: Growth, Employment and 
Redistribution 
The macro-economic strategy stresses that the prevailing 3% 
economic growth per annum will not reverse the unemployment 
situation. It will also provide inadequate resources for the 
necessary expansion of in social service delivery. The economy 
should grow by 6% per year and 400,000 jobs per annum in 
order to reduce unemployment and improve the living standard 
for all. 
In order to attain higher economic growth and significant job 
creation without undermining the macro-economic stability, the 
Government strategy is design to entail: 
a) A competitive platform for export growth; 
b) A stable environment for a surge in private 
investment; 
c) Restructuring public services and government capital 
expenditure; 
d) New emphasis in industrial and infrastructural 
development; 
e) Greater labour market flexibility; 
&r 16 
f] Enhanced human resource development 
The macro-economic package envisages the following elements: 
a) A faster fiscal deficit reduction programme to contain 
debt service obligations, counter inflation and free 
resources for investment; 
b) A renewed focus on budget reform to strengthen the 
redistribution thrust of expenditure; 
c) An exchange rate policy to keep the real effective rate 
stable at a competitive level, 
d) A consistent monetary policy to prevent a resurgence of 
inflation; 
e) Further steps in the gradual relaxation of exchange 
controls; 
f) Speeding up the restructuring of state assets; 
g) Tax incentives to stimulate new investment in 
competitive and labour absorbing projects; 
h) Expansion of infrastructure programmes that will 
address service deficiencies and backlogs; 
The long term vision of the macro-economic strategy will be: 
a) A competitive fast growing economy which creates 
sufficient jobs for all work-seekers, 
b) A redistribution of income and opportunities in 
favour of the poor, 
c) A society in which sound health, education and other 
services are available to all, and 
d) An environment in which homes are secure and 
places of work are productive. 
II. SECTORAL POLICIES 
1. Education 
The educational system under apartheid era was organized in a 
complex hierarchy of separate racial and ethnic departments 
and services. Funding of education and training had been 
grossly unequal across the racial ethnic sub-systems. These 
discriminatory provisions resulted to huge disparities in 
physical, professional services and teaching quality. Majority of 
the black population had little access to education and training. 
As a result of unequal access to education, huge inequalities in 
skills and competence in the nation's labour force along racial 
and ethnic line developed. Consequently, there have been 
unequal opportunities in employment. 
^ 17 
The constitution guarantees equal access to basic education for 
all. The policy of the Government stipulated that education and 
training are basic human rights. The need to overhaul the 
learning programmes or curricula have been highlighted in the 
White Paper. Special attention has been given to student 
recovery programme in science and mathematics. 
The White Paper on Reconstruction and Development 
Programme (RDP) took human resource development as one of 
the key programmes. A White Paper on Education and Training 
was issued in March 1995. 
The policy on education specified that state resources are 
deployed according to the principles of equity so that the same 
quality of learning opportunities for all citizens will be 
established. The rehabilitation of the schools and colleges is to 
go hand in hand with gradual transfer of ownership of these 
institutions to the communities. National Qualification 
Framework (NQF) has been put in place to ensure that standard 
quality of education is maintained. 
Adult Basic Education and Training:- Specially the black adult 
population, had no schooling or inadequate schooling in the 
past. The Department of Education views adult education and 
training as a driving force for social change and economic 
development. 
Early Childhood Development:- Early childhood education is 
taken as a starting point of a national human resource 
development strategy. As it is a multi-disciplinary field, the 
need for closer cooperation with the Departments of Health and 
Welfare is recognized. 
Further Education and Training: According to the Government, 
the key to a successful integrated approach to education and 
training lies at the post compulsory phase of education. 
Higher Education or Tertiary education: The government 
acknowledges that higher education represents a major source 
for national development. The Government has approved the 
appointment of a National Commission on Higher Education. 
The Commission has started its work. 
The White Paper on Education and Training has delineated the 
national and provincial powers in education and training. 
Substantial powers have been vested in the provincial 
legislatures and governments to run educational affairs other 
than the universities and technikons which are subject to a 
national policy framework. 
-9-0 
2. Health 
Following the democratic election in April 1994, the Government 
has given special emphasis to strengthen of and improve access 
to primary health services. The budget allocation for non-
hospital primary care services has gone up to 19% in 1995/96 
as compared to 11% of total public sector health expenditure in 
1992/93. A Medium Term Expenditure Framework has been 
adopted to guide the relative redistribution of resources towards 
primary health care. 
In 1994 health care for children under 6 and pregnant women 
has been declared to be free. In April 1996, the Government 
announced access to free health care to all groups of patients at 
primary health care clinics. 
The key area in health sector transformation has been the 
District Health System. It is considered as a vehicle for the 
provision of the comprehensive primary health care. 
3. Water Supply and Sanitation 
The Water Supply and Sanitation Policy document was issued in 
November 1994. Provision of water supply and sanitation have 
been targeted objectives as part of the fulfillment of basic needs 
stipulated in the Reconstruction and Development Programme. 
The lack of basic services such as .water supply and sanitation is 
one of the major symptoms of poverty and underdevelopment. 
The following eight principles have been established in the 
Water Supply and Sanitation Policy: a) Water supply 
development should be demand driven and community based, 
b) Basic water supply services are human rights c) Some for 
'all' rather 'all' for some d) Equitable regional allocation of 
development resources, e) Water has economic value, f) The user 
pays, g) Water supply being part of the integrated development 
of the country, h) Environmental integrity. 
* }wu- 19 
5. Private Sector Development 
The Government has elaborated policy statements on both the 
RDP policy paper and the 'Macro-Economic Strategy' of 1996. 
The RDP White paper covers a wide range of policy issues 
related to private sector development. It entails areas related to 
creating an enabling environment to investment; trade policy 
reform in areas like enhancing productivity and 
competitiveness. It also covers competition policy which 
introduces anti-trust legislation to create a more competitive 
and dynamic business environment. This policy ensures that 
efficient participation of small and medium enterprises are not 
jeopardized by anti-competitive nature of operation by 
developed business entities. 
The Government has committed itself to the support of smail 
and medium enterprise development. The key areas of support 
to this sub-sector includes the following: 
Access to advice and training 
Access to marketing 
Access to finance 
Access to infrastructure and premises 
Access to appropriate technology 
Encouraging inter-firm linkages 
The 'Macro-Economic Strategy also gives special emphasis to 
private sector development. Various institutions were 
established to support small and medium enterprises. Small 
business centre has been constituted in the Department of 
Trade and Industry. A promotion agency has been set up to 
support non-financial assistance; an enterprise to handle 
wholesale loans; an agency for credit guarantee schemes and 
special support for 
pre-shipment export finance guarantee and access to working 
capital. Competitive fund for consultancy advice on technology 
and marketing has been established. 
In order to support the small and medium enterprise 
development and give legal basis for the establishment of the 
above enterpreneurial development institutions; a National 
Sniall Business Enabling Act (Notice 1304 of 1995) was issued. 
?2~ 20 
ANNEX 3 
GUIDING PRINCIPLES FOR DECENTRALIZED COOPERATION 
1. Background 
The European Union has been supporting development 
initiatives in South Africa through non-government 
organisations since 1986. Since the start of EU cooperation 
with the Government in 1994, support under the EPRD has 
been composed of a combination of support for government 
projects and support for non-governmental organisations -
NGOs. 
The European Commission has recently launched a study into 
the issue of-decentralised cooperation. This process is aimed at 
identifying potential 'agents' of decentralised cooperation and at 
examining ways in which this type of development assistance 
might best be implemented. 
2. Definition of'decentralised cooperation' 
'Decentralised cooperation' is an approach to development 
which gives 'decentralised agents'1 of development a key role in 
the conception and management of development projects. The 
approach must be participatory, bottom up, unambiguously 
focusing on the final beneficiaries and on the identification by 
them of their needs and requests. The role of the central 
authorities and the Commission is limited to monitoring and 
being kept informed, having agreed to the modalities of this 
instrument of support. 
3. Objectives 
The aim of this type of cooperation i.s to speed up 
implementation of development projects under the EPRD and 
benefit the particular capabilities, innovative operating methods 
and resources of the agents of decentralised cooperation. 
1 The fourth Lome Convention refers to 'agents of decentralised cooperation' as; decentralised public 
authorities, rural and village groups, cooperatives, trades unions, teaching and research institutions, 
non-governmental development organisations, other associations, groups and agents which are able 
and wish to contribute to the development of the Country on their own initiative, providing that the 
agents and/or the operations arc non-profit-making. 
Jl 21 
li Guiding principles of decentralised cooperation under the EPRD. 
An indicative proportion of 25% of the resources available under 
the EPRD will be devoted to decentralised cooperation. The 
precise modalities of how this element of the EPRD will be 
implemented will be agreed by the South African Government 
and European Commission at a later stage following the 
completion of the study into decentralised cooperation. The 
following three guiding principles have been agreed by the 
Government and Commission regarding the implementation of 
decentralised cooperation; 
• The actions will be within the three focal sectors agreed 
in the MIP. 
• Appropriate reporting mechanisms will be developed. 
• Actions funded through decentralised cooperation 
should be coherent with initiatives being implemented 
within the rest of the EPRD. 
>V 22 
ISSN 0254-1491 
COM(98) 502 final 
DOCUMENTS 
FR 11 01 
N° de catalogue : CB-CO-98-509-FR-C 
ISBN 92-78-38794-0 
Office des publications officielles des Communautés européennes 
L-2985 Luxembourg 
JS