Proposal for a COUNCIL DECISION on the conclusion of an Agreement, in the form of exchanges of letters, with the European Bank for Reconstruction and Development on the contribution of the European Economic Community to the Nuclear Safety Account
Date: 1993-10-20
Institutions: European Commission
Subjects: Central and Eastern Europe, World Bank, agreement (EU), energy policy, nuclear power station, nuclear safety

COMMISSION  OF  THE  EUROPEAN  COMVSUNITIES 

C0M(93) 515  final 

Brussels, 20  October  1993 

Proposal  for a 

COUNCIL DEÇI$IQN 

on the conclusion of an Agreement, in the form 
of exchanges of letters, with the European Bank 
for Reconstruction  and  Development on the 
contribution  of the European  Economic  Community 
to the Nuclear Safety  Account 

(presented  by  the Commission) 

EXPLANATORY MEMORANDUM 

1. 

In conformity  with  the  conclusions  of  the  European  Council  of  Lisbon,  and 
following  the conclusion of the Council of 7 December  1992, the Commission 
proposed  that  the  Community  should  make  a  contribution  available  of  20 
MECU to the Nuclear Safety Account set up at the EBRD, in order to enhance 
the nuclear safety  of  the  countries  of  Central  and Eastern  Europe  and of the 
former Soviet Union, and negotiate an agreement to this end in the form of an 
exchange of letters with the EBRD. 

(Doc. SEC(93) 363 final of 9 March  1993). 

On  21  April  1993,  the  Council  decided  to  authorize  the  Commission  to 
negotiate  the  Community's  participation  in  the  above  mentioned  account  on 
the basis of negotiating directives aiming notably at the following points : 

- 

- 

- 

to  provide  for  provisions  on  the  coordination  of  nuclear  safety  related 
activities initiated by the Nuclear Safety  Account, on the one hand, and of 
the Community assistance programs PHARE and TACIS, on the other; 

to provide for rules concerning a certain degree of financial  control by the 
Court of Auditors of the Nuclear Safety Account's financial operations; 

to  provide  for  a  contribution  of  20  MECU  to  the  above  mentioned 
account in 1993. 

(Doc. of the Council No. 6049/93 of 21 April  1993). 

In  conformity  with  this  Council  decision,  the  Commission  has  negotiated 
exchanges of letters with the EBRD.  These are reproduced in the annex of the 
attached draft decision. 

3.1 

As  regards  the  form  of  the  agreement,  it  will  consist,  on  the  one  hand,  of 
letters from the Community and the  EBRD  as foreseen  by Article II, Section 
2.02  of  the  Rules  governing  the  use  and  functioning  of  the  Nuclear  Safety 
Account and, on the other hand, of "side letters" accompanying the former and 
relating  to  the  points  of  the  negotiating  directives  which  are not covered  by 
the former. 

32 

As to the substance of the exchanges of letters, the foliowiiig points should be 
noted: 

•  Tn orAer  to  hest  safegnftfd  thft  fmflTiriftl  mternsf  of  thn  Cnrrmrnrnty  aa w»11 
as the auditing powers of the Court of Auditors and of the Coimnissûm, it 
appears useful to ensure in particular that the reports of die internal and 
external auditors of  die EBRD  on the operations  of  the Nuclear  Safety 
Account be put at the  disposal  of  the  Commission  and of  die  Court  of 
Auditors.  Moreover, should they think it appropriate, the latter would be 
in  a  position  to  verify  the  financial  operations  of  the  Nuclear  Safety 
Account to  the  extent  that these  operations  are related  to  Community's 

•  Following the first calls for tender issued by ms EBRD in the trame w mk 
of the Nuclear Safety Account's operations, it seems necessary to  ensure 
that the Rules governing the Account as regards the awarding of tender 
contracts be correcdy inlarp^ 
To this 
effect,  a particular provision specifies that, as from the conclusion of the 
flgrw^mftnt rtn fhft  CmrnrmnTty cantrihnlinfnr tin  difio-fmiflfltinm  will  "he maffc 
between Member States of the Community, irrespective of whether or not 
they have individually contributed to the Account 

•  As  far  as  the  payment  procedure  of  the  Comnmnity  contribution  is 
concerned, it is foreseen that the contribution of 20 MECU will be made 
available to the Nuclear  Safety Account either in cash or in non-interest 
bearing promissory notes in one single instalment in 1993. 

The Council Is requested to approve the conclusion of the Agreement, in the 
form of exchanges of letters as reproduced in the annex to the attached draft 
decision, with the European Bank for Reconstruction and Devdopment on the 
contribution of  the European Economic  Community for the Nuclear  Safety 
Account 

The  Commission  suggests  that  its  Vice-President  Sir  Leon  Brittaa  be 
authorized by the Council to sign the Agreement with binding effect for the 
Community, 

COUNCIL  DECISION 

of 

1993 

on the conclusion  of an Agreement, in the form of exchanges 
of letters, with the European  Bank for  Reconstruction  and  Development 
on the contribution  of the European  Economic Community 
to the Nuclear Safety Account 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES 

Having regard  to the Treaty  establishing the  European  Economic  Community, and in 
particular Article 235 thereof, 

Having regard to the proposal  from  the Commission, 

Having regard to the opinion of the European  Parliament, 

Whereas the precarious  situation  in  the  field  of nuclear  safety  in  several  countries  of 
Central  and  Eastern  Europe  and  of  the  former  Soviet  Union  requires  international 
efforts  in order  to enhance the  level  of  nuclear  safety  in these countries; whereas the 
Community,  through  its  technical  assistance  programs  PHARE  and  TACIS,  devotes 
considerable means to this end, 

Whereas  in complement  to the  efforts  already  undertaken  a  multilateral  fund,  called 
Nuclear  Safety  Account,  has  been  established  with 
the  European  Bank  for 
Reconstruction  and  Development  which  aims at the financing  of short term  measures 
to  enhance  the  level  of  nuclear  safety  in  the  countries  in  question;  whereas  the 
European  Council  of  Lisbon  as well  as the Council  in  its conclusions  of  7 December 
1992 have expressed  the wish that the Community contributes to this fund;  whereas to 
this end the Council, on 21 April  1993, has authorized  the Commission  to negotiate a 
contribution agreement; and whereas this Agreement should now be concluded, 

Whereas  the  Agreement  will  contribute  to  the  achievement  of  the  Community's 
objectives;  whereas  the Treaty  does  not  provide,  for  the  adoption  of  this Decision, 
powers other than those of Article 235, 

Has decided as follows : 

Article 1 

The Agreement  on the contribution  to the Nuclear  Safety  Account  in the form of an 
letters  between  the  Community  and  the  European  Bank  for 
exchanges  of 
Reconstruction  and  Development,  is  hereby  approved  on  behalf  of  the  European 
Economic Community. 

The texts of exchanges of letters are annexed to this Decision. 

Article 2 

The Community shall be represented in the Assembly of contributors and, if need be, 
in  the  Operating  Committee  of  the  Nuclear  Safety  Account,  by  the  Cornmission 
which shall appoint its representatives. 

Article 3 

This decision shall be published in the Official  Journal of the European Communities. 

Done at Brussels, 

1993 

For the Council 

The President 

earns. 

A.  Form of Letter by Contributor to President of Bank 

Dear Sir, 

1 am writing to acknowledge your communication regarding the establishment by 
the  European  Bank for  Reconstruction  and  Development  (the "Bank")  of  the 
Nuclear Safety Account (the "Account") to be governed by the Rules which had 
previously been adopted by consensus among the representatives  of the  6-7 
governments. 

1. 

I am pleased to confirm that the European Economic Community wishes to 
make a  Contribution to the Account in accordance with the  Rules in the 
aggregate amount of 20  million  ECU on the  basis of domestic  laws  and 
regulations and  in accordance with annual budgetary appropriations. 

To the extent it is available by legislative action the Contribution win be paid 
in cash or in non interest bearing promissory notes in ECU in one instalment 
during the period of calendar year 1993. 

3. 

I confirm that the  terms used herein have the meaning attributed to them in 
the Rules. 

Sincerely yours, 

^ 

B.  Form of Reply by President of Bank 

Dear Sir, 

concerning the contribution of the 
Thank you for your letter of 
European Economic Community to the Nuclear Safety Account in the aggregate 
amount of 20 million ECU. 

This  is  to  confirm  that  the  European  Bank  will  be  pleased  to  accept  this 
contribution for inclusion  in  the  Account  pursuant  to  the  Rules  governing  the 
Account 

Sincerely yours, 

1 

C.  Draft  side  letter  to  be  sent jointly  with  the  letter  confirming  the  contribution 

Dear Sir, 

As  a  complement  to  my  letter  confirming  the  European  Community's  commitment  to 
make  a contribution of  20  MECU  in  1993 to the  Nuclear  Safety  Account,  in  accordance 
with  Article  II, Section  2.02  of  the  Rules,  the  Commission,  on  behalf  of  the  European 
Economic Community, asks the Bank, in its capacity as administrator and operator of the 
Account, to  confirm its  agreement  to the following  provisions  which will form  an  integral 
part of the Contribution Agreement: 

1. 

The  Commission  and  the  Bank  shall  closely  coordinate  on  nuclear  safety 
assistance  projects  and related  policy orientations,  ensuring the cohesion and the 
complementarity  of  the  activities  generated  by  the  Nuclear  Safety  Account  in 
relation  to  the  Community's  PHARE  and  TACIS  nuclear  safety  assistance 
programmes.  To  this  end,  beyond  the  information  received  through  normal 
channels of operation of the Account,  particularly  in the context of  meetings of the 
Assembly of Donors or of the Operating Committee, the Commission and the Bank 
will  arrange  for  a  regular  exchange  of  views  and  experiences  on  nuclear  safety 
assistance  projects  of  mutual  interest  as  well  as  for  any  other  useful  means  of 
coordination. 

As regards the financial operations of the Nuclear Safety Account to the extent that 
it  is  related  to  the  Community's  contribution,  the  Commission  may  forward  all 
relevant  information  to  the  European  Court  of  Auditors.  Moreover,  the  Bank  will 
supply all supplementary  information that the Commission or the Court of Auditors 
may wish to receive. 

In particular,  the  reports  of  the  internal  and  external  auditors  of  the  Bank  on  the 
Nuclear Safety Account, to be established  in accordance with Art.  IV, Section 4.04 
of  the  Rules,  shall  be  made  available  to  the  Commission  and, through  it,  to  the 
European Court of Auditors.  In case they  consider  it  appropriate, the  Commission 
and the  European  Court  of  Auditors,  according  to  their  respective  competences, 
will  be  entitled  to  verify 
the  financial 
operations  of  the  Nuclear  Safety  Account  to  the  extent  that  it  is  related  to  the 
Community's contribution. 

3. 

the  procurement  arrangements  pursuant 

As  concerns 
the 
Commission understands  that the  Bank accepts  the  understanding whereby,  upon 
conclusion to this Contribution Agreement,  no discrimination will be made between 
individual Member States of the European  Community,  irrespective of their  having 
concluded  individual Contribution  Agreements  with the  Bank or  not,  as  far  as  the 
awarding of  procurement  contracts  for  services  or  supplies  are  concerned  in  the 
course of operations of the Nuclear Safety Account. 

the  Rules, 

to 

Sincerely yours, 

1 

D.  Draft side letter of reply by President of Bank 

Dear Sir, 

In complement to my letter accepting the contribution of the European  Economic 
Community  to  the  Nuclear  Safety  Account,  I  am  pleased  to  confirm  the 
agreement of the Bank to the provisions contained in the side letter to your letter 
of 

Sincerely yours, 

FINANCIAL  STATEMENT 

I. FINANCIAL  IMPLICATIONS 

1. 

2. 

3. 

Title of operation: 
Community  contribution  to  the  Multilateral  Fund  for  Nuclear  Safety  in  the  countries  of 
Eastern and Central Europe and the former  Soviet Union. 
("Nuclear  Safety" Account established at the EBRD) 

Budget heading involved: 
Article B7 - 630 

Legal basis 
Article 235 EEC Treaty 

4. 

Description of operation 

4.1 

Specific  objectives of the operation 
Contribution  of the  Community  to the  "Nuclear  Safety"  Account  established  at  the 
EBRD,  administered  by  the  Assembly  of  Donours/Operational  Committee  which 
includes the principal  donours, thereunder the Community 

4.2 

Period covered  : 3 years 

4.3  Populations  affected 

Countries of Eastern and Central Europe and the former  Soviet Union. 

5. 

Classification  of expenditure or revenue 

5.1  NCE 

5.2  NDA 

6. 

Type of expenditure or revenue 

6.1 

100% subsidy, for joint financing  of a multilateral  fund  established at the EBRD. 

7. 

Financial  impact 
7.1  Method of calculating total cost of operation: 

Financial participation  of the Community  in the amount  of 20 MECU,  in accordance 
with  the  Council  decision  of  21  April  1993  (Council  document  nr.  6049/93  of 
21.4.93) 
Indicative breakdown of allocation commitments and payments 

7.2 

Commitments 
Payments 

BRS  1/93 

I Draft  budget 94 

20 MECU 
20 MECU 

| 

| 

pm 
pm 

/lO 

8. 

Fraud prevention  measures 
Auditing  system  of the EBRD as  well  as  specific  provisions  regarding  the  auditing  rights 
of the Commission and the Court of Auditors, according to the exchange of letters with the 
EBRD. 

II.  ADMINISTRATIVE  EXPENDITURE 

1.  Will the proposed  operation involve an increase in the number of Commission  staff? 

No 

III.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

1. 

Objectives and coherence with financial  programming 

1.1 

Specific  objectives  of the proposed  operation.  This  must  be  quantified  (as  far  as  is 
possible)  and  presented  for  each  of  the  years  concerned  if  the  operation  is 
multiannual. 
Support  of  the  activities  of  the  "Nuclear  Safety"  Account  with  the  purpose  of 
financing  measures  to  improve  the  security  of  nuclear  reactors  in  the  countries  of 
Eastern and Central Europe and the former Soviet Union. 

1.2 

Is the operation incorporated  in the DG's financial  programming for the relevant 
years? 
Foreseen in the Programmes TACIS/PHARE 1993. 

1.3  To which broader objective defined  in the DG's financial  programming does the 

objective of the proposed operation  correspond? 
Continuation  of  the  Community  action,  notably  with  respect  to  the  supply  of 
equipment needed to improve nuclear  safety. 

2. 

Grounds for the operation 

2.1  Grounds for the operation 

Multilateral  operation  following  the  decisions  of  the  European  Council  of  Lisbon 
(June  1992), the  G7  Munich  Summit  of  July  1992 and  the  Council  conclusions  of 
7.12.1992. 

3.  Monitoring and evaluation of the operation 

Seat  of  the  Commission  in  the  Assembly  of  Donours/Operational  Committee  of  the 
Account, which determines and monitors the projects and which has the authority to review 
the effectiveness  of the activities  financed. 

/K 

ISSN 0254-1475 

COM(93) 515 final 

DOCUMENTS 

EN 

05  15 01 

Catalogue number : CB-CO-93-550-EN-C 

ISBN 92-77-59990-1 

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