91/401/EEC: Internal Agreement on the financing and administration of Community aid under the fourth ACP-EEC Convention
Date: 1990-07-16
Institutions: Representatives of the Governments of the Member States
Subjects: European Development Fund, financing of aid, fourth Lomé Convention













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41991A0401

91/401/EEC: Internal Agreement on the financing and administration of Community aid under the fourth ACP-EEC Convention  


Official Journal L 229 , 17/08/1991 P. 0288 - 0300 Finnish special edition: Chapter 11 Volume 17 P. 0341  Swedish special edition: Chapter 11 Volume 17 P. 0341  





INTERNAL AGREEMENT on the financing and  administration of Community aid under the FourthACP-EEC Convention (91/401/EEC) THE  REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE EUROPEAN ECONOMIC COMMUNITY, MEETING  WITHIN THE COUNCIL,  Having regard to the Treaty establishing the European Economic Community,  Whereas the Fourth ACP-EEC Convention, signed in Lomé on 15 December 1989 (hereinafter referred to  as 'the Convention'), set the aggregate amount of Community aid to the ACP States for the period  1990 to 1995 at ECU 12  000 million;  Whereas the representatives of the Governments of the Member States meeting within the Council,  agreed to set at ECU 140 million the amount of aid from the European Development Fund for the  overseas countries and territories to which Part Four of the Treaty applies (hereinafter referred  to as 'the countries and territories'); whereas provision is also made for operations to the amount  of ECU 25 million to be undertaken ty the European Investment Bank (hereinafter referred to as 'the  Bank') from its own resources in the countries and territories;  Whereas the ecu used for the application of this Agreement is defined in Council Regulation (EEC)  No 3180/78 as amended by Council Regulation (EEC) No 1971/89 or, where appropriate, in any  subsequent Council Regulation defining the composition of the ecu;  Whereas, in order to implement the Convention and the Decision concerning the countries and  territories (hereinafter referred to as 'the Decision'), a seventh European Development Fund should  be established and a procedure should be laid down for the provision of funds and for contributions  from Member States to these funds;  Whereas the rules for the administration of financial cooperation should be determined, the  procedure for programming, examining and approving aid should be decided and the detailed rules for  supervising the use of the aid should be laid down;  Whereas a committee of representatives of the Governments of the Member States should be set up  under the auspices of the Commission and a similar committee should be set up under the auspices of  the Bank; whereas the work done by the Commission and the Bank to apply the Convention and the  corresponding provisions of the Decision should be harmonized; whereas it is therefore desirable  that, as far as possible, the composition of the committees set up under the auspices of the  Commission and of the Bank should be identical;  Having regard to the Council Resolutions of 5 June 1984 and 16 May 1989 on the coordination of  cooperation policies and operations within the Community;  After consulting the Commission,  HAVE AGREED AS FOLLOWS:   CHAPTER I Article 1 1.    The Member States hereby set up a seventh European Development Fund  (1990), hereinafter referred to as the 'Fund`.  2.  (a)  The Fund shall consist of ECU 10  940 million to be contributed by the Member States as  follows: (in million ecus) Belgium433,234   Denmark227,032   Federal Republic of Germany2  840,480    Greece133,920   Spain644,999   France2  665,892   Ireland60,0325 Italy1  417,772    Luxembourg20,7385 Netherlands609,120   Portugal96,140   United Kingdom1  790,640   (b)The  allocation of contributions under (a) may be amended by a decision of the Council, acting  unanimously, should a new State accede to the Community. Article 2 1.    The amount stated in  Article 1 shall be allocated as follows: (a)  ECU 10  800 million for the ACP States, comprising: (i)  ECU 7  995 million in the form of grants, of which ECU 1  150 million shall be specifically  reserved for structural adjustment support; (ii)ECU 825 million in the form of risk capital; (iii)ECU 1  500 million in the form of transfers pursuant to Part Three, Title II, Chapter 1 of the  Convention; (iv)ECU 480 million in the form of the special financing facility pursuant to Part Three, Title II,  Chapter 3 of the Convention; (b)ECU 140 million for the countries and territories, comprising: (i)ECU 106,5 million in the form of grants; (ii)ECU 25 million in the form of risk capital;  (iii)ECU 2,5 million in the form of the special financing facility pursuant to the provisions of  the Decision relating to mining products; (iv)ECU 6 million in the form of transfers for the countries and territories, pursuant to those  provisions of the Decision which concern the system for stabilizing export earnings.  2.    Where a country or territory which has become independent accedes to the Convention, the  amounts indicated in paragraph 1 (b) (i), (ii) and (iii) shall be reduced and those indicated in  paragraph 1 (a) correspondingly increased by a decision of the Council acting unanimously on a  proposal from the Commission. In such cases, the country concerned will continue to be eligible for the funds provided for in  paragraph 1 (b) (iv), subject to the administrative rules laid down in Part Three, Title II,  Chapter 1 of the Convention. Article 3 To the amount laid down in Article 1 shall be added ECU 1   225 million in the form of loans granted by the Bank from its own resources under the conditions  laid down by it in accordance with its Statute. These loans shall be allocated as follows: (a)  the amount of ECU 1  200 million for financing operations to be carried out in the ACP  States; (b)the amount of ECU 25 million for financing operations to be carried out in the countries and  territories. Article 4 In order to finance the interest rate subsidies referred to in Article 235  of the Convention and in the corresponding provisions of the Decision, an amount of up to ECU 280  million shall be set aside from the grant aid specified in Article 2 (1) (a) (i) and an amount of  up to ECU 6 million shall be set aside from the grant aid specified in Article 2 (1) (b) (i). Any  part of this amount not committed by the end of the period during which loans are granted by the  Bank shall again become available as grant aid under the original Articles. The Council may decide unanimously, on a proposal from the Commission drawn up in agreement with  the Bank, to raise these ceilings. Article 5 With the exception of loans granted by the Bank from  its own resources, all financial operations undertaken for the benefit of the ACP States or the  countries and territories in accordance with the Convention or the Decision  shall be carried out  under the conditions laid down in this Agreement and shall be charged to the Fund. Article 6 1.     Each year the Commission, taking account of the Bank's estimates concerning those operations  administered by it, shall establish and communicate to the Council before 1 October a statement of  the payments to be made in the following budget year and a schedule of calls for contributions. The  Council shall decide thereon by the qualified majority laid down in Article 21  (4). The detailed  rules for payment of contributions by the Member States shall be determined by the Financial  Regulation referred to in Article 32.  2.    Together with its annual estimates of contributions, the Commission shall send the Council  its estimates for expenditure, including that relating to the previous Conventions, for each of the  four years following the year relating to the call for contributions.  3.    If the contributions are insufficient to meet the actual requirements of the Fund in the  budget year in question, proposals for supplementary payments shall be submitted by the Commission  to the Council, which shall as soon as possible decide thereon by the qualified majority laid down  in Article 21  (4). Article 7 1.    Any remaining balance of the Fund shall be used up in  accordance with the same rules as those laid down in the Convention, the Decision and this  Agreement.  2.    Upon expiry of this Agreement, Member States shall still be obliged to pay, as provided in  Article 6 and in the Financial Regulation referred to in Article 32, the portion of their  contributions not yet called for. Article 8 1.    The Member States undertake to act as guarantor  for the Bank, waiving any right to object and in proportion to their contributions to its capital,  in respect of all financial commitments arising for its borrowers out of the loan contracts  concluded by the Bank with its own resources in implementation both of Article 1 of the Financial  Protocol annexed to the Convention and the corresponding provisions of the Decision and, where  appropriate, Articles 104 and 109 of the Convention.  2.    The guarantee referred to in paragraph 1 shall be restricted to 75  % of the total amount of  the credits opened by the Bank under all the loan contracts; it shall be applied to cover all  risks.   3.    Notwithstanding the overall guarantee referred to in paragraphs 1 and 2, the Member States  may, with regard to financial commitments under Articles 104 and 109 of the Convention, act as  guarantor for the Bank, in specific cases and at the latter's request, in respect of a percentage  greater than 75  % and up to 100  % of the credits opened by the Bank under the corresponding loan  contracts.  4.    The undertakings arising from paragraphs 1 to 3 shall be the subject of guarantee contracts  between each Member State and the Bank. Article 9 1.    Payments made to the Bank in respect of  special loans granted to the ACP States, the countries and territories and the French overseas  departments since 1 June 1964, as well as the proceeds and income from risk capital operations  undertaken since 1 February 1971 for the benefit of those States, countries, territories and  departments, shall be credited to the Member States in proportion to their contributions to the  Fund from which the sums are derived, unless the Council decides unanimously, on a proposal from  the Commission, to place them in reserve or allocate them to other operations. Any commission due to the Bank for managing the loans and operations referred to in the first  subparagraph shall be deducted in advance from these sums.  2.    Without prejudice to Article 192 of the Convention, the revenue accruing from interest on  the funds deposited with the paying agents in Europe referred to in Article 319  (4) of the  Convention shall be credited to an account opened in the name of the Commission. After the EDF Committee referred to in Article 21, acting by a qualified majority, has delivered  its opinion, the Commission shall use such revenue: -  to cover the administrative and financial costs arising from the cash management of the Fund, -for limited-budget, short-term studies or consultancy services, in particular in order to  strengthen its own capabilities in the area of the analysis, diagnosis and formulation of  structural adjustment policies.  CHAPTER II Article 10 1.    Subject to Articles 22, 23 and 24 and without prejudice to the  Bank's responsibilities for the administration of certain forms of aid, the Fund shall be  administered by the Commission in accordance with the rules laid down in the Financial Regulation  referred to in Article 32.   2.    Subject to Articles 28 und 29, risk capital and interest rate subsidies financed from the  Fund's resources shall be administered by the Bank on behalf of the Community in accordance with  its Statute and the rules laid down by the Financial Regulation referred to in Article 32. Article  11 The Commission shall be responsible for implementing the aid policy defined by the Council and  the guidelines for development finance cooperation defined by the ACP-EEC Council of Ministers  pursuant to Article 325 of the Convention. Article 12 1.    The Commission and the Bank shall  provide each other periodically with appropriate information on the requests made to them for  finance and on preliminary contacts made with them, before their requests were submitted, by the  relevant bodies of the ACP States, the countries and territories, or other recipients of aid as  provided for in Article 230 of the Convention and in the corresponding provisions of the Decision.  2.    The Commission and the Bank shall keep each other informed of the progress made in  appraising requests for finance. They shall exchange all general information in order to promote  the harmonization of administrative procedures and of the course to be followed in their  proceedings from a development policy viewpoint and also the assessment of requests. Article 13 1.     The Commission shall appraise projects and programmes which, pursuant to Article 233 of the  Convention and the corresponding provisions of the Decision, could be financed by grants from the  Fund's resources.  The Commission shall also appraise requests for transfers submitted pursuant to Part Three, Title  II, Chapter 1 of the Convention and the corresponding provisions of the Decision, together with  projects and programmes eligible for the special financing facility pursuant to Part Three, Title  II, Chapter 3 of the Convention and the corresponding provisions of the Decision.  2.    The Bank shall appraise projects and programmes which, pursuant to its Statute, Articles 233  and 236 of the Convention and the corresponding provisions of the Decision, could be financed by  loans from its own resources with interest rate subsidies, or by risk capital.  3.    Production projects and programmes which come under the industrial, agro-industrial,  tourism, mining or energy sectors, and transport and telecommunications schemes linked to those  sectors shall be presented to the Bank, which shall examine whether they are eligible for one of  the forms of aid it administers.  4.    Where, in the course of appraisal of a project or programme by the Commission or by the  Bank, it is found that the project or programme could not be financed by one of the forms of aid  administered by the institution in question, the latter shall, having informed the potential  recipient, transmit the request to the other institution. Article 14 Without prejudice to general  instructions which the Bank receives from the Community in respect of the recovery of principal and  interest relating to special loans and operations under the special financing facility of the  previous Conventions, the Commission shall undertake, on behalf of the Community, the financial  execution of operations carried out with the Fund's resources in the form of grants, transfers or  the special financing facility; it shall make payments in accordance with the Financial Regulation  referred to in Article 32. Article 15 1.    The Bank shall undertake, on behalf of the Community,  the financial execution of operations carried out with the Fund's resources in the form of risk  capital. In this context, the Bank shall act on behalf and at the risk of the Community. Any  resulting rights, and particularly rights as creditor or owner, shall be vested in the Community.  2.    The Bank shall undertake the financial execution of operations carried out by means of loans  from its own resources combined with interest rate subsidies from the Fund's resources. Article 16  In order to attain the Convention's financing and investment support objectives, a significant  share of the risk capital shall be allocated to support private sector investment, in particular  small and medium-sized undertakings.  CHAPTER III Article 17 1.    In order to ensure coordination between cooperation operations and  improve complementarity between them and the Member States' bilateral aid, the Commission shall  communicate to the Member States and their representatives on the spot the notes identifying  projects as soon as the decision to appraise them has been taken.   2.    For their part the Member States shall periodically communicate to the Commission an  updated statement of any development aid they have granted or intend to grant.  3.    The Member States and the Commission shall also communicate to each other, in the context of  the proceedings of the EDF Committee referred to in Article 21, any information they possess on  other bilateral, regional or multilateral aid granted to or envisaged for ACP States.  4.    The Bank shall regularly and confidentially inform the representatives of the Member States  and of the Commission designated by name of any projects for the benefit of the ACP States which it  intends to appraise. Article 18 1.    The programming provided for in Article 281 of the  Convention shall be undertaken in each ACP State under the responsibility of the Commission and  with the participation of the Bank.  2.    In order to prepare the programming, the Commission, in consultation with the Member States,  in particular those represented on the spot, and in conjunction with the Bank, shall undertake an  analysis of each ACP State's economic situation so that any obstacles to development can be  identified and the consequent necessary policies can be assessed.  3.    The analysis referred to in paragraph 2 shall also concern sectors in which the Community is  particularly active and those for which a request for Community support may be envisaged; it shall  take account of the interdependence between sectors and be based on a detailed assessment of past  Community aid and of the lessons learned therefrom.  4.    The analysis referred to in paragraph 2 shall in addition cover the scope and effectiveness  of the reforms undertaken or planned by the State concerned at macroeconomic or sectoral level and  the State's financial requirements, so as to facilitate in particular the implementation of the  provisions of Part Three, Title III, Chapter 2, Section 3 of the Convention on structural  adjustment support.  5.    On the basis of the analysis referred to in paragraph 2 and proposals made by the ACP State  concerned, exchanges of view shall take place between the latter, the Commission and the Bank, for  the part concerning the latter, under Article 282 of the Convention with a view to drawing up the  indicative Community aid programme.  Article 19 1.    Before the indicative programme provided for  in Article 281 of the Convention is established jointly by the Commission, with the participation  of the Bank for the part concerning it, and the State concerned, the Commission shall, in  collaboration with the Bank, prepare a summary document on each country giving the conclusions of  the preparation of programming and setting out the sectors on which Community aid is to be  concentrated, the planned measures and operations to attain the objectives set for those sectors  and, where appropriate, the eligibility of the State concerned for the resources earmarked for  adjustment support and the broad lines of Community support.  This document shall be examined by the representatives of the Member States, the Commission and  the Bank, within the EDF Committee referred to in Article 21, in order to assess the general  framework of the Community's cooperation with each ACP State and to ensure, as far as possible,  coordination and complementarity of Community aid and aid from the Member States.  As soon as possible after this examination, the Commission, the Bank, for the part concerning it,  and the State concerned shall jointly establish an indicative programme.  2.    The indicative programme of Community aid for each ACP State shall be forwarded to the  Member States so that an exchange of views can take place between the representatives of the Member  States, the Commission and the Bank. This exchange of views shall be held if the Commission or one  or more Member States so request.  3.    The provisions in Article 18 and in this Article relating to national programming shall  apply mutatis mutandis to regional programming on the basis of Article 160 of the Convention.  Article 20 1.    The provisions of the Convention relating to adjustment support shall be  implemented on the basis of the following principles: (a)  When analyzing the situation of the States concerned, the Commission, using a diagnostic  method based on the indicators listed in Article 246 of the Convention, shall assess the scope and  effectiveness of the reforms undertaken or contemplated in the areas covered by that Article, in  particular monetary, budgetary and fiscal policies. (b)Support given for structural adjustment must relate directly to operations and measures adopted  by the State concerned in connection with that adjustment.   (c)The procedures applying in the award of contracts must be sufficiently flexible to adapt to  the normal administrative and commercial procedures in the ACP States concerned. (d)Subject to subparagraph (c), each structural adjustment support programme shall specify, for  imports, the tendering system, together with the values of import orders determining the choice of  the three forms of invitation to tender: -  international invitation to tender, -  restricted invitation to tender, -  direct agreement. However, normal public tendering procedures shall be followed for imports by the State or  quasi-public bodies. (e)At the request of the ACP State concerned and after concertation with this State, technical  assistance shall be made available to the ACP body responsible for implementing the programme. When technical assistance is negotiated, the Commission shall ensure that such technical assistance  is responsible for: -  supervising the operational aspects of the programme, -ensuring that imports are procured on the best quality/price terms following the widest possible  consultations with ACP and EEC suppliers, -advising importers, whenever technically possible and economically justified, on how to extend  their markets. Such technical assistance personnel may, if necessary, assist importers who so desire to combine  their orders where the goods to be imported are homogenous, and thus obtain a better quality/price  ratio.  2.    The Commission shall inform the Member States, as the need arises and at least once a year,  of the implementation of the adjustment support programmes and of any problem with regard to  maintaining eligibility. The information provided, accompanied by all necessary particulars  including statistical data, shall cover, in particular, the proper application of the agreement  concluded with the ACP body responsible for implementing the programme, including the provisions  relating to the consultations referred to in the second indent of paragraph 1  (e). On the basis of  this information, the progress of import programmes and coordination with other donors, the  Council, acting on a proposal from the Commission, may adjust the arrangements for implementing the  programmes, as specified in paragraph 1.  CHAPTER IV Article 21 1.    A committee (hereinafter called 'the EDF Committee`) consisting of  representatives of the governments of the Member States shall be set up under the auspices of the  Commission, for the resources it administers. The EDF Committee shall be chaired by a Commission representative, and its secretariat shall be  provided by the Commission. A representative of the Bank shall take part in its work.  2.    The Council, acting unanimously, shall adopt the rules of procedure of the EDF Committee.  3.    Within the EDF Committee, the votes of the Member States shall be weighted as follows: Belgium8 Denmark5 Federal Republic of Germany52 Greece4 Spain13 France49 Ireland2 Italy26  Luxembourg1 Netherlands12 Portugal3 United Kingdom33 4.    The EDF Committee shall act by a  qualified majority of 133 votes, expressing a vote in favour by at least six Member States.  5.    The weightings laid down in paragraph 3 and the qualified majority mentioned in paragraph 4  shall be amended, by a decision of the Council, acting unanimously, in the case referred to in  Article 1 (2) (b). Article 22 1.    The EDF Committee shall focus its work on the substantive  problems of cooperation on a country-by-country basis and seek appropriate coordination of  the  approaches and operations of the Community and its Member States in the interests of consistency  and complementarity.  2.    The Committee's tasks shall cover three levels: -  programming of Community aid, -  monitoring the implementation of Community aid, -the taking of decisions. Article 23 With regard to programming, the purpose of the examination  referred to in Article 19 shall be to reach the desirable consensus between the Commission and the  Member States. This examination shall take place within the EDF Committee and shall concern: -  the general framework of Community cooperation with each ACP State, in particular the proposed  focal sectors and the measures envisaged to attain the objectives set for those sectors and the  general guidelines proposed for the implementation of regional cooperation; -consistency and complementarity between Community aid and that of the member States. If it is not possible to reach the consensus referred to in the first subparagraph, then at the  request of a Member State or the Commission, the Committee will also give its opinion acting by a  qualified majority in accordance with the detailed rules laid down in Article 21. Article 24 With  regard to the monitoring of the implementation of cooperation, the EDF Committee shall discuss: -  development policy problems and any problem of a general nature which might result from the  implementation of the various projects or programmes financed from the resources administered by  the Commission, account being taken of the Member States' experience and operations, -the approach of the Community and the Member States to the adjustment support given to the States  concerned, -any changes which might appear necessary in the indicative programmes or in adjustment support,  -mid-term review, which will be provided by the Commission, of programmes in the context of the  programming exercise, or where otherwise requested by the Committee when approving proposals, -evaluations of Community aids when they give rise to issues relating to the work of the Committee.  Article 25 1.    With regard to the decision-making process, the EDF Committee shall give its  opinion, by the qualified majority laid down in Article 21, on: (a)  the eligibility of the ACP States for resources to support structural adjustment, except in  cases where, under Article 264 (2) of the Convention, such eligibility is automatic; (b)financing proposals for projects or programmes with a value greater than ECU 2 million,  according to a written procedure or a standard procedure the detailed arrangements for which shall  be determined in the rules of procedure referred to in Article 21 (2); (c)financing proposals relating to adjustment support or to the special financing facility  (Sysmin), irrespective of the amount involved; d)periodic financing proposals drawn up under Article 9 (2) (use of interest).  2.    The Commission is authorized to approve operations with a value less than ECU 2 million  without seeking the EDF Committee's opinion.  3.    The financing proposals shall indicate the relevance of the projects or programmes to the  development prospects of the country or countries concerned and how they fit in with the sectoral  or macroeconomic policies receiving Community support. They shall mention the use to which such  countries have put previous Community aid in the same sector; any existing project evaluations for  that sector shall be attached.  4.    In order to speed up the procedures, financing proposals may cover overall amounts for the  financing of: (a)  training, (b)  micro-projects;   (c)  trade promotion; (d)  packages of small-scale operations in a specific sector; (e)technical cooperation. Article 26 1.    If the EDF Committee requests substantial changes to  one of the proposals referred to in Article 25  (1), or in the absence of a favourable opinion on  the proposal, the Commission shall consult the representatives of the ACP State or States  concerned. Following such consultations, the Commission shall communicate the results to the Member States at  the next meeting of the EDF Committee.  2.    Following the consultations referred to in paragraph 1 the Commission may submit a revised  or extended proposal to the EDF Committee at one of its subsequent meetings.  3.    If the EDF Committee still refuses to deliver a favourable opinion, the Commission shall  inform the ACP State or States concerned, which may then request either: -  that the matter be brought before the ACP-EEC Ministerial Committee referred to in Article 324  of the Convention (hereinafter called 'the Development Finance Cooperation Committee`); or-that it  or they be given a hearing by the Community's decision-making bodies, on the conditions set out in  Article 27 (2). Article 27 1.    The proposals referred to in Article 25 (1), together with the  opinion of the EDF Committee, shall be submitted to the Commission for its decision.  2.    If the Commission decides to differ from the opinion expressed by the EDF Committee or if  the committee has not delivered a favourable opinion, the Commission shall either withdraw the  proposal or, at the earliest opportunity, refer the proposal to the Council, which shall decide on  it according to the same voting procedure as the EDF Committee within a period which, as a general  rule, may not exceed two months. In the latter case, where a financing proposal is involved, the ACP State concerned may, if it has  not decided to refer the matter to the Development Finance Cooperation Committee, forward to the  Council, in accordance with Article 289 (3) of the Convention, any additional information it  considers necessary before the final decision is taken and may be heard by the President and the  members of the Council.  Article 28 1.    A committtee (hereinafter called 'the Article 28  Committee`) consisting of representatives of the Governments of the Member States shall be set up  under the auspices of the Bank. The Article 28 Committee shall be chaired by the representative of the Member State currently  chairing the Board of Governors of the Bank; its secretariat shall be provided by the Bank. A representative of the Commission shall take part in its work.  2.    The Council, acting unanimously, shall adopt the rules of procedure of the Article 28  Committee.  3.    The weighting of the votes of the Member States and the qualified majority applicable to the  Article 28 Committee shall be those resulting from the application of Article 21 (3), (4) and (5).  Article 29 1.    The Article 28 Committee shall deliver an opinion by qualified majority on  requests for loans with interest rate subsidies and on proposals for financing by risk capital  which are submitted to it by the Bank. The Commission representative may, at meetings, submit the Commission's assessment of these  proposals. This assessment shall cover the conformity of the projects with Community development  aid policy, with the objectives of cooperation in development financing laid down by the Convention  and with the general guidelines adopted by the ACP-EEC Council of Ministers. The committee may also discuss, if requested by the Bank, or, with its agreement, by one or more  Member States, general or specific issues relating to the implementation of the Bank's activities  in ACP countries as well as issues arising from the evaluations of the Bank's activities envisaged  in Article 30 (6).  2.    The document submitted to the Article 28 Committee by the Bank shall, in particular, explain  the relevance of the project to the development prospects of the country or countries concerned  and, where appropriate, indicate the situation as regards repayable aid granted by the Community  and holdings acquired by it and the use made of previous aid in the same sector; any existing  project evaluations for that sector shall be attached.  3.    Where the Article 28 Committee delivers a favourable opinion in respect of a request for a  loan with an interest rate subsidy, the request, together with the reasoned opinion of the  committee and, where appropriate, the assessment of the Commission representative, shall be  submitted for a decision to the Board of Directors of the Bank, which shall act in accordance with  the Bank's Statute.   In the absence of a favourable opinion from the committee, the Bank shall either withdraw the  request or decide to uphold it. In the latter event the request, together with the reasoned opinion  of the committee and, where appropriate, the assessment given by the Commission representative,  shall be submitted for a decision to the Bank's Board of Directors, which shall act in accordance  with the Bank's Statute.  4.    Where the Article 28 Committee delivers a favourable opinion in respect of a proposal for  financing by risk capital, the proposal shall be submitted for a decision to the Bank's Board of  Directors, which shall act in accordance with the Bank's Statute. In the absence of a favourable opinion from the committee, the Bank, in accordance with Article 289  (2) and (3) of the Convention, shall inform the representatives of the ACP State or States  concerned, who may request either: -  that the matter be referred to the Development Finance Cooperation Committee, or-that they be  given a hearing by the competent body of the Bank. At the end of that hearing the Bank may either: -decide not to follow up the proposal, or-request that the Member State chairing the Article 28  Committee refer the matter to the Council as soon as possible. In the latter case, the proposal shall be submitted to the Council together with the reasoned  opinion of the Article 28 Committee and, where appropriate, the assessment of the Commission  representative and any further information which the ACP State concerned considers the Council  requires. The Council shall act in accordance with the same voting procedure as the Article 28 Committee. If the Council confirms the Article 28 Committee's position, the Bank shall withdraw its proposal. If, however, the Council is in agreement with the Bank's proposal, the Bank shall implement the  procedures laid down in its Statute. Article 30 1.    The Commission and the Bank shall ascertain,  each to the extent to which it is concerned, how the Community aid they administer is used by the  ACP States, the countries and territories or any other recipients.   2.    The Commission and the Bank shall also ascertain, each to the extent to which it is  concerned and in close collaboration with the relevant authorities of the country or countries  concerned, how projects financed with Community aid are used by the recipients.  3.    When ascertaining how Community aid and projects are used, as provided for in paragraphs 1  and 2, the Commission and the Bank shall examine the extent to which the objectives referred to in  Articles 220 and 221 of the Convention and in the corresponding provisions of the Decision have  been attained.  4.    The Bank shall regularly send the Commission all information relating to the implementation  of projects financed from the Fund resources it administers.  5.    The Commission and the Bank shall inform the Council, upon the expiry of the Financial  Protocol annexed to the Convention, of their findings pursuant to paragraphs 1, 2 and 3. The report  by the Commission and the Bank shall also contain an assessment of the impact of Community aid on  the economic and social development of the recipient countries.  6.    The Council shall be informed periodically of the results of work done by the Commission and  the Bank on the evaluation of projects being carried out or completed, particularly in relation to  development objectives set.  CHAPTER V Article 31 1.    The amounts of the Stabex transfers referred to in Part Three, Title  2, Chapter 1 of the Convention and in the corresponding provisions of the Decision shall be  expressed in ecus.  2.    Payments shall be made in ecus.  3.    Each year the Commission shall draw up a comprehensive report for the Member States on the  operation of the system of stabilization of export earnings and the use made by the ACP States of  the funds transferred; The report shall indicate in particular the effects of the transfers made on the development of the  sectors to which they were allocated.  4.    Paragraph 3 shall also apply as regards the countries and territories.   CHAPTER VI Article 32 The provisions for implementing this Agreement shall be the subject of a  Financial Regulation adopted, upon the entry into force of the Convention, by the Council, acting  by the qualified majority laid down in Article 21 (4), on the basis of a Commission draft, after an  opinion has been delivered by the Bank on the provisions of concern to it and by the Court of  Auditors established under Article 206 of the Treaty. Article 33 1.    At the end of each  financial year the Commission shall adopt the revenue and expenditure account and the balance sheet  of the Fund.  2.    Without prejudice to paragraph 5, the Court of Auditors established under Article 206 of the  Treaty shall also exercise its powers in respect of the Fund's operations. The conditions under  which the Court exercises its powers shall be laid down in the Financial Regulation referred to in  Article 32.  3.    The discharge for the financial management of the Fund shall be given to the Commission by  Parliament on the recommendation of the Council, which shall act by the qualified majority laid  down in Article 21 (4).  4.    The Commission shall make the information referred to in Article 30 (4) available to the  Court of Auditors so that the latter may on the basis of the documentary evidence carry out checks  on the aid provided from the Fund's resources.  5.    The operations financed from the Fund resources managed by the Bank shall be subject to the  control and discharge procedure laid down by the Statute of the Bank for all its operations. Each  year the Bank shall send the Commission and the Council a report on the execution of operations  financed from the Fund resources managed by the Bank.  6.    The Commission shall draw up periodically, in agreement with the Bank, lists of the  information it receives from the latter in order to assess how the Bank is carrying out its brief  and to encourage close coordination between the Commission and the Bank. Article 34 1.    The  remaining balance of the Fund set up under the Internal Agreement of 1975 on the financing and  administration of Community aid shall continue to be administered as provided in that Agreement and  in accordance with the rules and regulations in force on 1 March 1980. The remaining balance of the Fund set up under the Internal Agreement of 1979 on the financing and  administration of Community aid shall continue to be administered as provided in that Agreement and  in accordance with the rules and regulations in force on 28 February 1985. The remaining balance of the Fund set up under the Internal Agreement of 1985 on the financing and  administration of Community aid shall continue to be administered as provided in that Agreement and  in accordance with the rules and regulations in force on 28 February 1990.  2.    In the event of successful completion of projects financed from the Funds referred to in  paragraph 1 being jeopardized by a lack of resources owing to the remaining balance being used up,  proposals for additional financing may be submitted by the Commission under the conditions laid  down in Article 21. Article 35 1.    This Agreement shall be approved by each Member State in  accordance with its own constitutional requirements. The Government of each Member State shall  notify the General Secretariat of the Council of the European Communities when the procedures  required for the entry into force of this Agreement have been completed  (1).  2.    This Agreement is concluded for the same duration as the Financial Protocol annexed to the  Convention. However, it shall remain in force for as long as is necessary for all the operations  financed under the Convention and the Protocol to be fully executed. Article 36 This Agreement,  drawn up in a single original in the Danish, Dutch, English, French, German, Greek, Italian,  Portuguese and Spanish languages, each of these texts being equally authentic, shall be deposited  in the archives of the General Secretariat of the Council of the European Communities, which shall  transmit a certified copy to each of the governments of the signatory States.  Hecho en Bruselas, el dieciséis de julio de mil novecientos noventa.  Udfaerdiget i Bruxelles, den sekstende juli nitten hundrede og halvfems.  Geschehen zu Bruessel am sechzehnten Juli neunzehnhundertneunzig.  ¸ãéíaa óôçò ÂñõîÝëëaaò, óôéò aeÝêá Ýîé Éïõëssïõ ÷ssëéá aaííéáêueóéá aaíaaíÞíôá.  Done at Brussels on the sixteenth day of July in the year one thousand nine hundred and ninety.  Fait à Bruxelles, le seize juillet mil neuf cent quatre-vingt-dix.  Fatto a Bruxelles, addì sedici luglio millenovecentonovanta.  Gedaan te Brussel, de zestiende juli negentienhonderd negentig.  Feito em Bruxelas, em dezasseis de Julho de mil novecentos e noventa. Pour Sa Majesté le roi des Belges Voor Zijne Majesteit de Koning der Belgen>REFERENCE TO A FILM> For Hendes Majestaet Danmarks Dronning>REFERENCE TO A FILM>Fuer den Praesidenten der  Bundesrepublik Deutschland  >REFERENCE TO A FILM>Ãéá ôïí Ðñueaaaeñï ôçò AAëëçíéêÞò AEçìïêñáôssáò> REFERENCE TO A FILM>Por Su Majestad el Rey de España>REFERENCE TO A FILM>Pour le président de la  République française>REFERENCE TO A FILM>For the President of Ireland>REFERENCE TO A FILM>Per  il Presidente della Repubblica italiana  >REFERENCE TO A FILM>Pour Son Altesse Royale le  grand-duc de Luxembourg>REFERENCE TO A FILM>Voor Hare Majesteit de Koningin der Nederlanden> REFERENCE TO A FILM>Pelo Presidente da República Portuguesa>REFERENCE TO A FILM>For Her Majesty  the Queen of the United Kingdom of Great Britain and Northern Ireland>REFERENCE TO A FILM>  (1)  The date of entry into force of the accord will be published in the Official Journal  of the European Communities by the General Secretariat of the Council.