Proposal for a COUNCIL REGULATION (EC) ON HIV/AIDS-RELATED OPERATIONS IN DEVELOPING COUNTRIES
Date: 1995-06-26
Institutions: European Commission
Subjects: AIDS, cooperation policy, developing countries, health policy

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 26.06.1995 
COM(95) 293  final 

95/0164  (SYN) 

Proposal for a 

COUNCIL REGULATION (EC) 

ON HIV/AIDS-RELATED  OPERATIONS  IN 

DEVELOPING  COUNTRIES 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Over the last ten years the HIV/AIDS epidemic has spread over the globe at an exponential 
rate.  The number of people now infected  by the virus is estimated  at around  17 million, 
a figure which  according  to WHO  projections  is  set to rise to 40 million  by 2000,  with 
developing  countries  accounting for  80% of all  cases.  The epidemic is  already  having a 
devastating impact  on a number of African  and Asian  countries,  as it primarily strikes at 
the active population  and thus attacks the very  heart of the social and  economic  fabric. 

In 1986 the international community responded to the terrible threat posed by the epidemic, 
acting on a WHO initiative to  set up a world programme to combat AIDS.  It was in the 
light  of  this  concerted  international  action  that  the  Community  launched  its  own 
programme  in  1987,  initially  as  part  of  its  cooperation  with  the  ACP  countries,  and 
subsequently  extending it to all the developing countries by creating a new budget heading 
in 1988.  Some 220 projects have been financed in 85 countries, partly from EDF resources 
and partly  - ECU  55.2 million  - under the new budget heading. 

Since  the  start  of  the  programme  great  care  has  been  taken  to  coordinate  Community 
activities  in  this  field  with  those  of  the  Member  States.  A  group  of  Commission  and 
Member  State experts convenes on a regular basis to pool their experience and ensure that 
Community  and  bilateral  programmes  and  policies  are  strategically  consistent.  In  early 
1994,  as  a result  of these  coordination  activities,  the  Commission  presented  the  Council 
with  a  Communication  on  the  policy  principles  and  strategic  priorities  governing  the 
activities  of  the  Community  and  its  Member  States  in  the  developing  countries.  In  a 
Resolution  adopted  in  May  1994,  the  Council  approved  these  guidelines  and  called  for 
closer coordination between the Commission and the Member States at the implementation 
stage.  The Community  programme provides the broad geographical  coverage required by 
the nature of the epidemic while ensuring that better use is made of the expertise available 
within the Community  and promoting technical  collaboration between specialist bodies in 
the Member  States. 

The proposed regulation is based on the political and strategic principles recently approved 
by  the  Council. 
It  is  designed  to  formalize  ongoing  structural  support  to  developing 
countries in their struggle to curb the expansion of the epidemic while addressing its social, 
economic and health-related  repercussions. 

The draft regulation establishes the objectives and procedures governing the implementation 
of  Community  support.  It provides for  a Committee to which  all  projects  costing  more 
than ECU 2 million  must be submitted  for  approval.  Given the very  limited  number  of 
projects  currently  exceeding this threshold,  it is proposed  that the  Committee meet  once 
a year in any  case for  an exchange of views based  on the general  guidelines for  the next 
year's projects. 

To emphasize the need for  continuity, no duration is specified  in this proposal. 

PROPOSAL FOR A COUNCIL REGULATION  (EC) No ... 
OF... 
ON fflV/AEDS-RELATED OPERATIONS  IN DEVELOPING  COUNTRIES 

THE COUNCIL  OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
130w thereof, 

Having regard  to the proposal  from  the Commission, 

In cooperation with the European Parliament,1 

Whereas the budgetary  authority  decided, in the framework  of the  1988 budget, to  create 
a budgetary  line designed  to support the fight against the HIV/AIDS epidemic; 

Whereas  the  Commission,  in  its  communication  of  7  January  1994  to  the  Council  and 
Parliament  on HIV/AIDS  in the  developing  countries,  outlined  the policy  principles  and 
strategic priorities needed to enhance the effectiveness  of action by the Community and the 
Member  States in that field; 

Whereas HTV7SIDA is no longer an emerging epidemic, but has become a pandemic spread 
throughout the whole world, and is evolving with different  social and political implications, 
depending  on the regions  and/or  countries in  question,  and thus requires a structural  and 
multisectoral  response; 

Whereas  the  Council,  in  its  resolution  of  6 May  1994,  emphasized  the  gravity  of  the 
HIV/AIDS epidemic and the need to step up efforts  to give more support to the developing 
countries' national  strategies; whereas it identified,  as priorities for such support, strategies 
aimed  at more effective  prevention  of transmission based  on education, the promotion  of 
sexual  and  reproductive  health  and  transfusion  safety,  along  with  strategies  to  help  the 
HIV-positive  and  the  sick,  in particular  by  strengthening  health  systems  and  combatting 
discrimination  and  social  exclusion; 

Whereas  the  European  Parliament  and  the  EEC-ACP  Joint  Assembly,  in  resolutions 
adopted respectively on  14 April  1986 and  15 February  1993, also underlined the need to 
take  greater  account  of  the  economic  and  social  consequences  of  HIV/AIDS,  notably 
through measures designed to enhance the status of women and help communities care for 
families  and individuals  affected  by the pandemic; 

Whereas  the  calls  of  both  the  Council  and  Parliament  for  increased  Community 
involvement in this field; 

Opinion delivered on  ... (OJ No ..., ...) and Decision of ... (OJ 
No .. ., of  . . . ). 

2-

Whereas  the  effectiveness  of  programmes  to  support  national  strategies  to  combat 
HIV/AIDS depends on improved coordination of aid both within the Community and with 
other  donors  and  UN  agencies,  in  particular  the  new  programme  being  set  up  with 
cosponsoring  from  the UN, and  on the use of flexible  procedures tailored  to the  specific 
nature  of  the  activities  and  the  partners  concerned;  whereas the  Council  and  Parliament 
resolutions call  for  efforts  in that  direction; 

Whereas  rules  and  procedures  should  be  established  for  cooperation  in 
HIV/AIDS, 

the  field  of 

HAS ADOPTED THIS  REGULATION: 

Article 1 

The Community  shall implement a programme to assist the developing  countries in  their 
efforts to combat the spread of the HIV/AIDS epidemic and help them cope with its impact 
on health and social  and economic  development. 

The Community  shall give priority  to backing strategies aimed  at: 

promoting an effective  policy to prevent HIV/AIDS from  being transmitted sexually, 
perinatally  or through the blood; 
breaking  the  "poverty-instabiliry-HIV/AIDS"  cycle,  with  particular  attention  being 
accorded  to groups in high-risk  environments  (refugees,  migrants etc.); 
reinforcing  health  and  social  services  so  that  they  can  cope  with  the  growing 
demands  of the  spreading  epidemic; 
helping governments assess the epidemic's impact on different  economic sectors and 
social  groups, and  draft  and  implement  strategies to cope with it; 
developing  biomedical  and  sociological  knowledge  of  the  epidemic  and  scientific 
understanding  of the impact  of measures, with  a view to improving their  quality. 

Article 2 

The  measures to be  taken  to  achieve the priority  objectives  mentioned  in Article  1 shall 
include: 

sexual  and reproductive  health education  adapted  specially  to make it accessible  to 
the target  groups,  people  in  high-risk  environments  and  young people  and  women 
generally; 

better prevention of the transmission  of HTV and sexually-transmitted  diseases and 
better treatment of the latter diseases; 
improving the availability and use of different means and methods of protection; 
strengthening  health  services,  particularly  in  outlying  areas,  in  order  to  expand 
prevention and care, and improving the safety  of blood transfusions; 
technical back-up to help governments analyse the social and economic impact of the 
epidemic  and  develop  and  implement  suitable  strategies  in  the  sectors  concerned 
(health, education, the reduction of poverty etc.); 
technical  and financial  support to enable NGOs and grassroots groups to  optimize 
their contribution to prevention and care, notably through help with the formation of 
networks; 
the development of scientific training through better monitoring of programmes based 
on  relevant  indicators,  and the  strengthening  of  applied  medical,  sociological  and 
anthropological research; 
the  promotion  of  respect for  human rights and freedom  from  discrimination  and 
stigma for those living with the virus, in particular by putting an appropriate legal 
framework in place. 

Article 3 

The  agents  of  cooperation  eligible  for financial support  under  this  Regulation  include 
national,  regional  and local  government  departments and agencies,  local  authorities and 
other local  bodies, regional  organizations,  international  organizations,  research institutes 
and universities,  local  communities  and the  private  sector,  including  non-governmental 
organizations and grassroots associations able to contribute whatever expertise they have 
to the design, implementation and monitoring of the priority  strategies in the HIV/AIDS 
field described in Article 2. 

Article 4 

1.  The instruments to be employed in the course of the activities referred to in Article 1 
include studies, technical assistance, training or other services, supplies and works, along 
with audits and evaluation and monitoring missions.  Priority shall be given to enhancing 
national capacities, particularly through training with a view to long-term viability. 

2.  Community financing may cover both investment, with the exception of the purchase 
ildings, and operating costs in local or foreign currency, depending on the needs of 

3.  A systematic effort shall be made to get the agents or partners ultimately  benefiting 
from  the  operation  (countries,  local  communities, firms etc.)  to  contribute,  if  possible 
financially,  according to their means and the nature of the operation concerned. 

4.  Opportunities  shall  be  sought  for  cofinancing,  especially  with  Member  States. 
Necessary measures will be taken to emphasise the Community character of aid provided 
under this Regulation. 

5. 
In order to reinforce  coherence and complementarity  between the actions  financed 
by the Community and those financed by the Member States, with the aim of guaranteeing 
optimal efficiency  of the totality of these actions, the Commission will  take all necessary 
coordination measures, notably : 

a) 

b) 

the establishment of a system for the systematic exchange of information on actions 
financed or for  which  financing  is  foreseen  by  the  Community  and  the  Member 
States; 

on the spot coordination of these actions by means of regular meetings and exchange 
of information  between the representatives  of the Commission  and Member  States 
in the beneficiary  country or countries concerned. 

Financial  support under this Regulation shall be in the form of grants. 

Article 5 

Article 6 

1.  The Commission shall appraise, decide and administer the cofinancing  of operations 
covered by this Regulation according to the budgetary and other procedures in force, and 
in particular those laid down in the Financial Regulation applicable to the general budget 
of the European Communities. 

2.  Decisions  relating to grants of  more than ECU 2 million  for individual  operations 
financed  under this Regulation  or any change resulting in an increase of more man 20% 
in the sum initially approved for such an operation shall be taken under the procedure laid 
down in Article 7. 

3.  All financing agreements or contracts concluded under this Regulation shall provide 
for the Commission and the Court of Auditors to conduct on-the-spot checks according to 
the  usual  procedures  laid  down  by  the  Commission  under  the  rules  in  force,  and  in 
particular  those  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the 
European Communities. 

4.  Where operations are the subject of financing agreements between the Community 
and the recipient country, such agreements shall stipulate that the payment of taxes, duties 
or any other charges is not to be covered by the Community. 

5. 
Participation  in  invitations to tender  and the  award  of  contracts  shall  be  open  on 
equal terms to natural and legal persons of the Member States and of the recipient country. 
It may be extended to other developing countries and, in exceptional cases which are fully 
justified,  to third countries. 

6. 
Supplies  shall  originate  in  the  Member  States,  the  recipient  country  or  other 
developing  countries.  In exceptional  cases, where circumstances warrant,  supplies may 
originate elsewhere. 

Article 7 

1.  The  Commission  shall  be  assisted  by  an  advisory  committee  made  up  of 
representatives from the Member States and chaired by a representative of the Commission, 
depending on the beneficiary  country or region concerned, as follows: 

a) 

b) 

c) 

for  the  ACP  countries,  the  EDF  Committee  set  up  by  Article 21  of  Internal 
Agreement 91/401/EEC on the financing and administration of Community aid under 
the fourth Lomé Convention, adopted on 16 July  1990 by the representatives of the 
Member States meeting in the Council; 

for the Mediterranean countries, the MED Committee set up by Article 6 of Council 
Regulation (EEC) No  1762/92 of 29 June 1992; 

for the Asian and Latin American countries, the ALA Committee  set up by Article 
15 of Council Regulation (EEC) No 443/92 of 25 February  1992. 

2. 
The Commission representative shall submit to the committee a draft of the measures 
to  be  taken.  The  committee  shall  deliver  its  opinion  on the  draft,  voting  if  necessary, 
within  a period that the chairman may specify  according to the urgency  of the matter at 
hand. 

The opinion shall be entered in the minutes; each Member State shall be entitled to ask that 
its position  be recorded  in the minutes.  The Commission  shall  take full  account  of the 
committee's  opinion.  It shall  notify  the committee  of the manner in which it has taken 
account of mat opinion. 

Article 8 

An exchange of views will take place,  once a year, on the basis of a presentation by the 
Commission's representative of the general guidelines for the operations to be carried out 
in the year ahead, in the framework of a joint meeting of the three committees mentioned 
in Article 7,  paragraph 1 

Article 9 

After  each  budget  year,  the  Commission  shall  report  to  Parliament  and  the  Council, 
summarizing  the  operations  financed  in  the  course  of  that  year  and  evaluating  the 
implementation  of this Regulation  in that  period. 

The summary  shall in particular contain information  about those with whom contracts have 
been  concluded. 

The  report  shall  also  set  out  the  conclusions  of  any  independent  evaluations  of  specific 
operations. 

Article  10 

This Regulation  shall  enter into force  on the third  day following  that of its publication in 
the Official Journal of the European  Communities. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all  Member 
States. 

Done at Brussels, 

For the Council 
The President 

? 

FINANCIAL  STATEMENT 

L 

TITLE OF  OPERATION 
Council  Regulation  on  Community  aid  to  developing  countries  in  the  field  of 
HIV/AIDS. 

Proposed  new title 

Action in the field  of HIV/AIDS in the developing countries 

n. 

BUDGET HEADING INVOLVED1 

B7-5046 

m. 

LEGAL BASIS 

-  Draft  Regulation  submitted  to the Council  and  Parliament; 
-  Parliament Resolutions  on AIDS, OJ C 88,  14 April  1986; 
-  Council  Resolutions,  OJ C  184, 23 July  1986; 
-  Resolutions  of the ACP-EEC  Joint Assembly,  OJ C 41/22,  15 February  1993; 
-  Council  Resolution  (6449/94,  6 May  1994). 

IV. 

DESCRIPTION  OF  OPERATION 

A.  General  objective 

-  To  curb  the  spread  of the HIV/AID S epidemic,  counteract  discrimination  against 
AIDS  sufferers  and  contribute  to  measures  to  cope with  the  consequences  of  the 
epidemic in the  developing  countries. 

B.  Period  covered  and  arrangements  for  renewal  or extension 

- 

indeterminate 

V. 

CLASSIFICATION  OF  EXPENDITURE  OR  REVENUE 

Non-compulsory  expenditure 
Differentiated  appropriations 

VI. 

TYPE  OF  EXPENDITURE 

Financing activities in the field  of HIV/AIDS as part of the strategies and policies 
laid  down in the Council Resolutions of May  1994.  100% subsidies and  subsidies 
for joint financing  with  other  sources in the public and/or  private  sector. 

EDF resources are also used. 

Supporting measures may take the form  of technical assistance, studies, supplies of 
material and equipment, works and administrative expenditure (parts A and B). One 
full-time  A-grade  administrator  is currently  allocated  to the  operation. 

V I I. 

FINANCIAL  IMPACT 

A.  Method  of  calculating  total  cost  of  operation 

12,5  millions  ECUs  for  the  95  Budget,  increased  to  13,5  millions  ECUs  in  the 
frame  work  of the RB.  The amount  for  the APB for  96 is  15 millions ECUs. 

B.  Itemised  breakdown  of  cost  (%  of total)2 

Minimizing  the  spread  of the 
virus  (using the health  system) 

Support  for  the health  system 
(treatment  and  care) 

Social  and  economic impact 

Scientific  apprenticeship 

Other3 

Operating  expenditure, 
including part B 

1995 

55 

12 

6 

8 

9 

10 

2  Budget and EDF financing. 

3  Including 

short-term 

technical 

assistance 

for 

supervision, monitoring and evaluation. 

3 

7.3 

Indicative  schedule of  appropriations 

Budget heading 

1995 Budget 

B7-5046 

13.5 

1996 
(APB) 

110 

8.  FRAUD PREVENTION MEASURES 

Each project  is managed  and supervised to minimize the risk of fraud.  There are 
regular  technical  and  financial  reports  and  monitoring  and  evaluation missions. 
The internal  and  external  evaluations  carried  out to date have been  satisfactory. 

9.  ELEMENTS  OF  COST-EFFECTIVENESS  ANALYSIS 

9.1  A.  Specific  and  quantified  objectives 

To  contain  the  spread  of  the  epidemic  among  the  population  in 
general  and  certain target groups in  particular. 

To  support  the  health  care  system  and  help  it  to  cope  with  the 
epidemic. 

To  evaluate  the  social  and  economic  impact  of  the  epidemic  and 
support the infrastructure  and  communities  affected. 

To  improve  scientific  knowledge  of  HIV/AIDS  and  priority 
measures. 

9.1  B.  Target  population 

The  general  public  of  the  developing  countries  and  certain  groups 
targeted  by  specific  measures.  These  measures  will  be  carried  out  in 
cooperation with AIDS committees, governments, the private sector and 
NGOs. 

9.1  C.  Indicators 

Special direct and indirect indicators will be devised and evaluated 
for  each  project,  thus  enabling  the  Community  to  quantify  the 
results of its input. 

Community  measures  will  dovetail  with  public  health,  education 
and  general  development  projects  implemented  at  international, 
regional  and  national  level. 

10 

9.2 

Grounds  for  the  operation 
The HIV/AIDS epidemic is recognized  as a major  threat to public health  and 
general  development  in the developing  countries. 

A  worldwide,  coordinated  response  is  needed  in  view  of  the  scale  of  the 
problem and the resources required. The Community approach allows for such 
a response throughout  the developing world. 

9.3 

Monitoring  and  evaluation  of the  operation 

Monitoring  and  evaluation  indicators  are devised  for  each  project. 

Some special  impact  studies will  also be carried  out. 

Cost-effectiveness  is a key  criterion  for  all projects. 

Results  and  information  will  be disseminated  regularly. 

Management  procedures  and methods will  be reassessed  regularly. 

Annual  and final reports will  be produced  for  each  project. 

The operation as a whole will be systematically  monitored,  and an evaluation 
will  take place after  three years. 

9.4 

Coherence with  financial  programming 

The  operation  is included  in  the  Commission financial programming  for  the 
period  concerned. 

y* 

ISSN 0254-1475 

COM(95) 293  final 

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