Amended proposal for a Council Regulation (EURATOM, EC) concerning the provision of assistance to economic reform and recovery in the New Independent States and Mongolia
Date: 1996-05-08
Institutions: European Commission
Subjects: EU aid, Mongolia, USSR, economic reconstruction, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 08.05.1996 
COM(96) 213  final 

95/0056  (CNS) 

Amended proposal for a 

Council Regulation (EURATOM, EC) 

concerning the provision of assistance to economic reform and recovery in the New Independent 
States and Mongolia 

(presented by the Commission pursuant to Article  189 a (2) 
of the EC-Treaty) 

EXPLANATORY  MEMORANDUM 

The  Commission  submitted  to  the  Council  a proposal  for  a  new Tacis  regulation  in  early 
1995,  on  which  no  compromise  could  be  reached.  A  new  proposal  was  presented  by  the 
Italian  Presidency,  and  finally,  an  agreement  could  be  recorded  on  29  January  1996. The 
Council  re-consulted  the  European  Parliament  on  this  new  proposal  on  5 February  1996, 
and Parliament adopted  its opinion on  19 April  1996. 

The  Commission  accepted  27 out  of  36 amendments  proposed  by  Parliament,  and  is  now 
bound  to present  a modified  Commission  proposal  consisting  of  the compromise  proposal 
for  a new Tacis  Regulation  as agreed  upon  by  the  General  Affairs  Council  on  29  January 
1996 (doc. n° 4546/96)  and  the amendments  voted  by  EP  in  its  opinion  of  19 April  1996 
with the exception  of numbers 7,  10,  18, 20, 22, 23, 27, 28 and 36 which were rejected  by 
the Commission. 

The Commission has been favourable to amendments which 

•  aim to increase the duration of the Regulation to six years (6, 21 ), 

•  strive to ensure proper monitoring, audit and assessment  of projects  in order to be able to 

identify  and correct implementation problems (12, 34), 

•  propose  to  improve  reporting  requirements  of  the  Commission  to  the  other  European 

institutions (30, 35), 

•  strive to foster co-ordination between the various donors  (5, 16 and 29), 

•  aim to strengthen co-financing  of projects with other donors (15,  19), 

•  endeavour  to  expand  the  scope  and  to  facilitate  the  procedures  for 

infrastructure 
investments which  is to be allocated,  in particular,  to border-crossing  facilities  and  in the 
context of cross-border co-operation (3, 9 and  17), 

•  strengthen  the  role  of  environment  and  public  health  in  framework  of  the  Tacis 

programme in order to ensure long-term sustainability of reforms (4, 13), 

•  endeavour  to  expand  the  notion  of  Tacis  "Human  Resources"  sector,  and  to  include 

additional aspects like inter-cultural  exchanges etc. (8, 31, 32), 

•  strenghten the conditionality of the assistance and introduces the respect of minority  rights 

and the rights of indigenous peoples as essential element of assistance (1), 

•  endeavour to further decentralisation  of programme management to the recipient  countries 

(14), 

•  propose  to  review  certain  implementation  modalities  of the Tacis programme  (24,  25,  26 
and  33),  like  for  example  amendment  24  which  envisages  to  maintain  the  threshold  for 
Direct  Agreement  contracts  at  300,000  Ecu,  or  amendments  25  and  33  promoting  the 
participation of enterprises from Phare and Tacis countries in the programme. 

•  aim to strenghten the role of NGOs in the provision of assistance (2), 

•  attempt to promote multiplier effects  and spin-off effects  (11). 

The Commission was not able to accept amendments which 

•  prevent  the  Commission  from  proposing  a  modification  to  the  annexes  over  the  whole 
life-time  of  the  Regulation  (7  and 27).  These  amendment  would  hinder to  adapt  the  new 
Regulation  to  evolving  circumstances  in  the  partner  countries.  Given  the  rapid  change 
which  could  be  observed  in  Tacis  partner countries  over the  last  years,  the  Commission 
considers  it  necessary  to  keep  some  flexibility  with  regard  to  modifications  of  its  legal 
base. 

•  relate  to  comitology  questions  (22  and  28).  It  is  usual  Commission  practice,  owing  the 
nature  of  the  implementing  measures  concerned,  to  request  assistance  of  a  Management 
Committee  in  the  implementation  of  all  external  assistance  programmes.  The  Tacis 
Committee's  role  should  not  be  limited  to  receiving  information,  instead  of  delivering  an 
opinion. 

•  would  require to  consult  the European Parliament,  when Council  decides  on the  proposal 
of the Commission  concerning  the suspension  of aid (18).  This requirement would  render 
the  provision,  which  should  allow  a  fast  decision  on  the  suspension  of  assistance, 
operationally  invalid. 

•  would  allow  for the  duration of the programme  to employ  external  experts financed  from 
the  operational  budget  only  for  the  purpose  of  supervision  of  projects  on  the  spot  (20). 
The  Commission  currently  attempts  to  establish  and  Amending  and  Rectifying  Budget 
which would  include  additional  budget comments  allowing  Tacis to employ external  staff 
without limiting the tasks and location for these experts. 

•  would  signal  to  all  agents  involved  in  the  Tacis  programme  that  the  role  of  technical 
assistance  is  strongly  reduced  (10).  The  Commission  believes  that  technical  assistance 
should  remain  the  core  component  of  the  Tacis  programme  as  i)  Tacis  provides  grant 
funding,  ii)  Tacis  has  gained  some  experience  in this  field  and  iii)  a technical  assistance 
programme  complements  other  donors'  activities  and  therefore  wishes  to  keep  the 
threshold of  10 % for exceptional  activités. 

•  propose  to  modify  some  other  implementation  modalities  (23  and  36),  e.g.  the 
Commission wishes to maintain the present version of the Council proposal with regard to 
the time limit for submission of offers  in open tenders which follows the formula provided 
for  open  tenders  in  the  procurement  directives  in  the  common  market.  The  Commission 
also  wants  to  maintain  the  reference  excluding  "experience  in  Tacis"  as  an  evaluation 
criteria in order to  avoid that the programme  becomes  a 'closed club' in which only  those 
enterprises have  a possibility  to win a tender which have  already been awarded a contract 
before. 

The  Commission  believes  that  the  present  proposal  respects  a  good  balance  between  the 
institutions,  while  reinforcing  the  basis  for  the  continuation  of  an  efficient  programme 
management. 

Amended  proposal  for  a 

Council Regulation (EURATOM, EC) No 

of 

concerning the provision of assistance to economic reform and recovery in the New Independent 
States and Mongolia 

THE COUNCIL OF THE EUROPEAN  UNION 

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

Having  regard  to the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in  particular 
Article 203 thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European  Parliament, 

Whereas pursuant  to the European  Council  in Dublin and in Rome in  1990 the European  Community 
introduced  a technical  assistance programme in favour  of economic reform  and recovery in the  former 
Union of Soviet Socialist Republics; 

Whereas  Council  Regulation  (EURATOM,  EEC)  No  2053/93  of  19  July  1993  concerning  the 
provision  of technical  assistance  to  economic reform  and  recovery  in the New  Independent  States  of 
the  former  Soviet  Union  and  Mongolia  laid  down  the  conditions  for  the  provision  of  this  technical 
assistance and foresaw  such an operation from 1  January  1993 to 31 December  1995; 

Whereas  such assistance will be fully  effective  only  in the context of progress towards  free  and  open 
democratic  systems that respect  human  and minority  rights and the rights of indigenous  peoples,  and 
towards  market-oriented  economic  systems;  whereas  this  progress  is  an  essential  element  for  the 
continuation of assistance; 

Whereas  such  assistance  has already  generated  significant  impact  on reform  in  the New  Independent 
States  and  Mongolia,  and  further  assistance  is  still  required  to  ensure  that  this  reform  becomes 
sustainable, it is necessary to continue this  effort. 

Whereas  a  financial  reference  amount,  within  the  meaning  of  point 2  of  the  Declaration  by  the 
European Parliament, the Council  and the Commission of 6 March  1995, is included  in this  regulation 
for  the  entire  duration  of  the  programme,  without  thereby  affecting  the  powers  of  the  budgetary 
authority as they are defined  by the Treaty; 

Whereas  the  implementation  of  such  assistance  should  enable  conditions  favourable  to  private 
investment to be established; 

Whereas it is appropriate to establish priorities for this assistance; 

Whereas  Community  assistance  will  be  all  the  more  effective  where  it  can  be  implemented  on  a 
decentralised  basis within each partner country; 

Whereas  such  assistance  may  with  advantage  be provided,  in many cases, through  non-governmental 
organisations; 

Whereas 
reform and restructuring should be encouraged; 

the  development  of  inter-State  economic  links  and  trade  flows  conducive  to  economic 

Whereas in order to properly  meet the most acute needs of the New Independent  States and  Mongolia 
at the present stage of their economic transformation,  it is necessary to permit a limited  amount  of the 
financial  allocation  to be used  for  small  scale infrastructure  projects, particularly  aimed at the  creation 
or improvement  of border-crossing  facilities  and in the context of cross-border-co-operation; 

Whereas the development  of small  and  medium-sized  enterprises  is a priority  in all New  Independent 
States and Mongolia, and it is therefore  appropriate to provide equity funding  for such companies; 

Whereas the dialogue between the social partners should be encouraged; 

Whereas  the  integration  of  the  environment  and  public health  protection  aspects  into  the  programme 
would guarantee the long term sustainability of the economic reforms; 

Whereas  the  European  Council  at  its  meeting  in  Rome  also  stressed  the  importance  of  effective  co 
ordination  by the Commission  of the efforts  made in the New Indépendant States of the former  Union 
of  Soviet  Socialist  Republics  and  in  Mongolia  by  the  Community  and  its  Member  States  acting 
individually; whereas it is therefore the Commission's duty to ensure such co-ordination; 

Whereas it is appropriate that the Commission be assisted in the implementation  of Community  aid by 
a committee made up of Member States' representatives; 

Whereas  the  requirements  of  economic  reform  and  restructuring  now  in  progress,  and  the  effective 
management of this programme, require a multiannual  approach; 

Whereas  assistance  for  economic  reform  and  recovery  may  require  specific  types  of  expertise 
particularly available in the Phare partner countries and in certain other States; 

Whereas  procedures  for  tenders  shall  fully  respect  the  provisions  of  the  financial  regulation  of  the 
European  Communities; 

Whereas  the  widest  possible  participation  under  equal  conditions  in  tenders  for  supplies,  works  and 
services shall be ensured; 

Whereas  the  Commission  shall  ensure  the  necessary  transparency  and  rigour  in  application  of  the 
selection criteria; 

Whereas effective  competition amongst firms, organisations and institutions interested  in participating 
in the initiatives financed  by the programme shall be ensured; 

Whereas, to this  end,  all relevant  information  on projects  shall  be provided,  using, when  appropriate, 
the  most  modern  means  of  communication,  so as to  ensure  that  any  firm,  organisation  or  institution 
which may be interested, can express its interest to be considered for an invitation to tender; 

Whereas, in the  selection  process, the Commission  shall try to diversify  between  firms,  organisations 
and  institutions; 

Whereas  the  continued  provision  of  assistance  will  contribute  to  the  attainment  of  the  Community's 
objectives, notably in the context of the Partnership and Co-operation Agreements; 

Whereas  the Treaties  have not provided,  for the adoption  of this  Regulation,  powers other than  those 
of Article 235 of the EEC Treaty and Article 203 of the EAEC Treaty, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1.  A  programme  to  assist  economic  reform  and  recovery  in  the  partner  States  listed  in  Annex  I 
(hereinafter  called  'the partner  States')  shall be implemented  by the  Community  from  1 January  1996 
to 31 December 2001 in accordance with the criteria laid down in this Regulation. 

2.  Assistance  shall  be concentrated  on sectors and, where appropriate, on geographic  areas in which 
the partner  States  have already  taken concrete measures to promote  reform  and/or  for  which they  can 
present  a time-schedule. Criteria for implementation  of this regulation are set out in Annex IV, which, 
if appropriate, may be modified  according to the procedure laid down in Article 6 (2) and (3). 

Article  la 

The  financial  reference  amount  for  the  implementation  of  this  programme  for  the  period  1996-1999 
shall be 2.224 Mecu. The financial  reference amount for programme implementation  for the remaining 
years  will  be  set  up  in the  framework  of  the  establishment  of  the  next  financial  perspectives  for  the 
budget. 

The  annual  appropriations  shall  be  authorized  by  the  budgetary  authority  within  the  limits  of  the 
financial perspective. 
finanr.ial  nersnective 

Article 2 

1.  The  programme  referred  to  in  Article  1 shall  mainly  take  the  form  of  technical  assistance  in 
support of the economic reform  in progress in the partner States for  measures aimed  at bringing  about 
the  transition  to  a  market  economy  and  reinforcing  democracy,  inter  alia  through  support  for  the 
development  of  new  structures  for  the  provision  of  culture,  education,  health  and  social  welfare 
programmes and through the encouragement of the dialogue between the social partners. 

It shall  also, case by case and in accordance  with the procedure  set out  in Article  6 (2) and  (3), cover 
reasonable  costs of supplies  required  in support  of the implementation  of the technical  assistance.  In 
particular  cases,  such  as  nuclear  safety  environmental  protection  and  public  health  programmes,  a 
significant  supply element may be included. 

The cost of the project  in local currency  shall  be covered  by the Community  only to the extent  strictly 
necessary. 

2.  Assistance  may  cover  costs related  to small-scale  infrastructure  projects  in the context  of  border-
crossing facilities referred  to in Article 2 (9). 

3.  The  programme  shall  promote  industrial  co-operation  and  support  the  establishment  of  joint 
ventures through the funding  of equity investment  in small and medium-sized  companies. 

3a. The allocation to activities mentioned under 2.2 and 2.3 shall not exceed  10 % of the annual  Tacis 
budget. 

3b. In all  cases, particular  attention  shall be paid to the potential  multiplier  and  spin-off  effects  of the 
projects financed. 

4.  The  assistance  shall  also cover costs related  to the preparation,  implementation,  monitoring,  audit 
and evaluation  of the execution of these operations, as well as costs concerning  information. 

4a.  The  Commission  shall  ensure  constant  qualitative  monitoring,  audit  and  assessment  of  projects 
underway,  enabling  it  to  identify  and  correct  problems  arising  during  the  course  of  project 
implementation. 

5.  The  assistance  shall  be  concentrated  in  particular  in  the  indicative  areas  referred  to  in  Annex  II 
taking into account the evolving needs of the beneficiaries. Particular emphasis shall be laid on nuclear 
safety  issues. In addition, financial  support may be given to environmental  impact  assessments  or eco-
audits. 

6.  When designing and implementing programmes, due regard shall be taken of : 
- the promotion of equal opportunities for women in the recipient countries 
- the environmental  considerations. 

7.  Operations to be financed pursuant to this Regulation shall be selected taking account, inter alia, of 
the  recipients'  preferences  and  on  the  basis  of  an  assessment  of  their  effectiveness  in  achieving  the 
objectives aimed at by the Community assistance. 

8.  The assistance  shall  be  implemented  on a decentralised basis  as. far as possible.  To  this  end, the 
final  recipients  of  Community  assistance  shall  be  closely  involved  in the preparation, and  execution 
and, as far as possible,  ultimately  in the financial management  of  the projects,  and once  the  national 
authorities  of  the  partner  States  have  agreed  on  sectoral  policies  and  strategies,  as  well  as  the 
geographical  concentration  areas,  the  identification  and  preparation  of  the  measures  to  be  supported 
shall  be  carried  out  directly  at regional  level,  wherever  possible.  The  Commission  shall  establish  an 
appropriate level of local representation to achieve these aims. 

Particular  attention  shall  be  paid  to  projects  which  are  co-financed  directly  by  local  authorities  or 
economic operators in the countries of Central and Eastern Europe or on their behalf. 

Continuous  co-ordination  shall  be  established  between  the  Commission,  its  representative  offices  in 
the beneficiary  countries and the Member States, including on-the-spot co-ordination  in their contacts 
with the partner States, both in the programme-definition  and in the programme-implementation  stage. 

9.  Assistance shall be provided to support measures aimed at promoting inter-state, inter-regional and 
cross-border  co-operation.  Particular  attention  will  be  paid  to  cross-border  co-operation,  including 
border  crossing  facilities  on  borders  between  the  N.I.S.  and  the  Union,  and  the  N.I.S.  and  Central 
Europe,  to  the  co-operation  on  the  level  of  large  geographic  regions  as  well  as  to  measures 
complementary  to  those  undertaken  in  this  field  within  the  Union  and  the  Phare  countries.  Cross-
border projects may be funded jointly by this programme and INTERREG. 

10.  When  an  essential  element  for the  continuation  of  co-operation  through  assistance  is  missing,  in 
particular  in  cases  of  violation  of  democratic  principles  and  human  rights,  the  Council  may,  on  a 
proposal  from  the  Commission,  acting  by  a  qualified  majority,  decide  upon  appropriate  measures 
concerning the assistance to a partner State. 

Article 3 

1.  Community  assistance shall take the form of grants which shall be released  in tranches as projects 
materialise. 

la.  The  Community  shall  provide  assistance  either  independently  or  on  the  basis  of  co-financing  in 
conjunction with Member States, the European Investment Bank, third coimtries, multilateral  agencies 
or the recipient coutnries. 

2.  Financing  decisions  and any contracts resulting  therefrom  shall  expressly  provide  for  supervision 
by the Commission and the Court of Auditors,  to be carried out on the spot, if necessary. 

1.  Indicative  programmes  covering  three-year  periods  shall  be  established  for  each  of  the  partner 

Article 4 

States in accordance with the procedure provided for in Article 6.  These programmes shall define the 
principal  objectives  of and guidelines for  Community  assistance  in the indicative areas referred  to in 
Article  2, and  shall  include  financial  estimates. They may be amended  in accordance  with the  same 
procedure during the period of their application.  Before the establishment of indicative programmes, 
the Commission  shall inform  with the Committee referred  to in Article 6, on the priorities  identified 
with the partner States. 

2.  Action programmes based on these indicative programmes shall be adopted on an annual basis in 
accordance  with the procedure provided  for  in Article 6 (2) and (3).  These action programmes  shall 
include  a list of the main projects  to be financed within  the indicative  areas referred  to  in Article 2. 
The content of the programmes shall be determined  in detail so as to provide the Member States with 
the relevant information to enable the Committee referred to in Article 6 to deliver its opinion. 

Article 5 

1.  The Commission shall implement operations in accordance with the action programmes referred to 
in Article 4 (2) and  in accordance with Title IX of the Financial  Regulation applicable to the general 
budget of the European Communities as well as Articles 5a  of this Regulation. 

2.  Supply and works contracts shall be awarded by means of open invitations to tender except in the 
cases provided  for  in Article  116 of the Financial  Regulation  applicable to the general  budget  of the 
European Communities. 

Open  invitations  to  tender  for  the  award  of  supply  contracts  in  accordance  with  Article  114 of  the 
Financial regulation of the European Communities shall allow for a time limit to submit an offer  of not 
less than 52 days from the date of dispatch of the notice to the Official  Journal. 

Service contracts shall, as a general rule, be awarded by restricted  invitations to tender and by private 
treaty for operations up to ECU 300 000. 

Participation in invitations to tender and contracts shall be open on equal terms to all natural and legal 
persons in the Member States and in the partner States and the Phare countries. 

Participation  in  invitations to tender by natural  and  legal persons from Mediterranean  countries  with 
traditional economic, trade or geographical links may be authorised  by the Commission on a case-by-
case  basis  if the  programmes  or  projects  concerned  require  specific  forms  of  assistance  specifically 
available in such countries. 

3.  Taxes, duties and the purchase of immovable property shall not be funded  by the Community. 

4.  In the case of co-financing,  the participation  of third countries concerned  in invitations to tender 
and  contracts  may  be  authorised  by  the  Commission,  but  on  a  case-by-case  basis.  In  these  cases 
participation of undertakings from third countries shall only be acceptable if reciprocity is granted. 

Article 5 a 

The  principles  governing  the  application  of  the  present  Regulation  for  the  awarding  of  contracts  by 
means  of  restricted  tendering  are  contained  in  Annex  III,  which  may  be  modified  by  the  Council, 
acting by qualified  majority  on a proposal by the Commission. 

The Commission  shall present to the Council a report on the implementation  of these principles by 31 
December  1997. 

Article 6 

1.  The Commission shall be assisted by a committee composed of the representatives of the  Member 
States and chaired by the representative of the Commission (hereinafter  referred  to as the  'Committee') 
to be known as the "Committee for the assistance to the independent  States and Mongolia". 

2.  The representative of the Commission  shall submit to the Committee a draft  of the measures to be 
taken.  The Committee  shall deliver  its opinion  on the draft  within  a time  limit  the chairman  may  lay 
down according to the urgency of the matter. The opinion shall be delivered by the majority  laid down 
in Article  148 (2) of the EC Treaty in the case of decisions which the Council  is required to adopt on a 
proposal  from  the  Commission.  The  votes  of  the  representatives  of  the  Member  States  within  the 
Committee shall be weighed  in the manner set out in that Article. The chairman shall not vote. 

3.  The Commission  shall adopt the measures envisaged  if they are in accordance  with the opinion  of 
the Committee. 

If the measures envisaged are not in accordance with the opinion of the Committee, or if no opinion  is 
delivered,  the  Commission  shall,  without  delay,  submit  to  the  Council  a  proposal  relating  to  the 
measures to be taken. The Council shall act by a qualified  majority. 

If, on the expiry  of a period  of three  months  from  the date of referral  to the Council, the  Council  has 
not acted, the proposed measures shall be adopted by the Commission. 

4.  The Committee may examine any other question relating to the implementation  of this  Regulation 
which  may  be  put  to  it  by  its  chairman,  including  at  the  request  of  the  representative  of  a  Member 
State  and,  in  particular,  any  question  relating  to  general  implementation,  the  administration  of  the 
programme, co-financing  and the co-ordination referred  to in Article 7. 

5.  The Committee shall adopt its rules of procedure by qualified  majority. 

6.  The  Commission  shall  keep  the  Committee  regularly  informed,  supplying  specific,  detailed 
information  on  the  contracts  awarded  for  the  implementation  of  the  projects  and  programmes. 
Moreover,  for  projects  expected  to  be  put  out  for  restricted  invitations  to  tender  in  accordance  with 
Article  5  (2),  the  Commission  shall,  before  drawing  up  short-lists,  provide  in  good  time  advance 
information  which  shall  include  selection  and  evaluation  criteria  so  as  to  facilitate  participation  by 
economic operators. 

7.  The European  Parliament  shall  also be kept regularly  informed  of the implementation  of the  Tacis 
programmes. 

Article 7 

The  Commission  shall  ensure  the  effective  co-ordination  of  the  assistance  efforts  undertaken  in  the 
partner  States  by  the  Community  and  individual  Member  States  on  the  basis  of  the  information 
supplied by the Member States. 

In addition  co-ordination  and co-operation with the international  financial  institutions and other  donors 
shall be ensured. 

In  the  framework  of  the  assistance  provided  pursuant  to  this  Regulation,  the  Commission  shall 
promote co-financing  with public or private bodies in the Member States. 

Article 8 

By  1 September  of  each  year  the  Commission  shall  present  a  comprehensive  report  evaluating  the 
progress  of  projects  and  their  impact  on the  progress  of  development  in  each  of the  partner  States  to 
the  Member  States,  the  European  Parliament,  the  Council  and  the  Economic  and  Social  Committee 
and the Committee of the Regions. 

Article 9 

This Regulation  shall  enter  into force  on the third  day  following  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. 

ii 

ANNEX I 

Partner States referred to in Article 1 : 

Armenia 
Azerbaijan 
Belarus 
Georgia 
Kazakhstan 
Kyrgyzstan 
Moldova 
Russian Federation 
Tajikistan 
Turkmenistan 
Ukraine 
Uzbekistan 
Mongolia 

AX 

ANNEX II 

Indicative areas referred  to in Article 2 

Assistance shall give priority to the following areas: 

1.  Human Resources  Development: 

education, training including managerial and manpower training, inter-cultural  co-operation, 

restructuring of public administration, 

employment  services and social security advice, 

strengthening of the civic society, support for democracy and the rule of law, 

policy and macro-economic advice, 

legal assistance including approximation  of legislation; 

2.  Enterprise restructuring and development: 

support for the development of small and medium-sized  enterprises, 

conversion of defence related industries, 

privatisation  and restructuring 

financial  services; 

3. 

Infrastructure: 

transport 

telecommunication; 

4.  Energy, including nuclear  safety; 

4a.  Development of the social  sector: 

- strengthening the provision of culture, education, health and social welfare, 

- support for institution-building  in the filed of social  welfare 

5.  Food production, processing and distribution. 

6.  Environment: 

- institutional  strengthening 

-  legislation 

- training 

45 

Principles governing the award of contracts by means of tendering, in particular restricted  tendering 

Annex III 

1.  All necessary  information  shall be made available with the "Invitation to Tenderers" to each of the 
tenderers which have been registered on the short-list or which so request in reply to the publication  of 
a  notice  of  an  open  tender.  This  information  shall  contain,  in  particular,  the  evaluation  criteria.  The 
technical evaluation of the tender may include interviews with the persons proposed in the tender. 

2.  The  Commission  shall  chair  all  evaluation  committees  and  shall  appoint  a  sufficient  number  of 
evaluators before  the tenders are launched. One evaluator should come from  the recipient  institution  of 
the beneficiary  countries. All evaluators shall sign a declaration of impartiality. 

3.  The tender is evaluated  on the basis or a weighing of technical quality against price. The weighing 
of  the  two  criteria  shall  be  announced  in  each  invitation  tender^3)-  The  technical  evaluation  shall  be 
carried  out  according  in particular  to the  following  criteria:  organisation,  time  schedule,  methods  and 
plan  of  work  proposed  for  providing  the  services,  the  qualifications,  experience,  skills  of  the  staff 
proposed  for  the  provision  of  the  services  and  the  use  made  of  local  companies  or  experts,  their 
integration  into the  project,  and  their  contribution  to  the  sustainability  of the  project  results.  Specific 
experience of the tenderer in Tacis shall not be taken into account. 

4.  Unsuccessful  tenderers  shall  be  informed  by  a  letter,  including  an  indication  of  the  reasons  for 
their failure and the name of the successful  tenderer. 

5.  Any  natural  or  legal  person  involved  in  the  preparation  of  a  project  shall  be  excluded  from 
participation  in the project  implementation.  If any participating  tenderer employs  such persons, in any 
capacity  within  six months of the termination  of their  involvement  in the tender  process, that  tenderer 
may  be  excluded  from  participation  in  the  project.  Any  tenderer  included  on  a  short  list  shall  be 
excluded  from  participation  in the evaluation of that tender. 

6.  The  Commission  shall  ensure  that  all  commercially  sensitive  information  relating  to  a  proposed 
tender remains  confidential. 

7.  Whenever a firm, organization or institution has serious reasons to ask for review of a tender, there 
will  always  be  the  possibility  to  address  the  Commission.  In  that  event,  a  reasoned  reply  should  be 
given to this request. 

8.  In the cases of award  of contracts after  restricted  invitations to tender as referred  to  in Article  116 
of the  Financial  Regulation  of the European  Communities, all  written  expressions  of interest,  shall  be 
registered  by the Commission, which will use this registration when drawing up the short-list. 

In  addition,  other  information,  in  particular  from  the  Tacis  central  consultancy  register,  may  be 
considered  when  drawing  up  the  short  list.  This  register  shall  be  open  to  all  interested  firms, 
organisations and institutions for  registration. 

9.  When  drawing  up  the  short-list  the  Commission  shall  be  guided  by  qualification,  interest  and 
availability  of the firm, organisation  or institution.  The number of firms, organisations  and  institutions 

41 

on  a shortlist  shall  depend  on  the  size  and  the  complexity  of the project  and  should  offer  the  widest 
possible choice with the inclusion of the operators from the recipient states, wherever possible. 

Firms, organisations and institutions which have expressed their interest in writing  in a project  shall be 
informed  whether or not they have been included on the shortlist. 

10.  Every  year  the  Commission  shall  give  to  the  Committee  a  list  of  the  firms,  organisations  and 
institutions which have been selected. 

11.  In highly  complex  projects,  the Commission  may suggest to firms, organisations  and  institutions, 
which  have  been  retained  on  a short-list,  the  formation  of consortia  among  them.  In  these  cases, this 
suggestion,  as  well  as  the  complete  short-list,  shall  be  transmitted  to  all  firms,  organisations  and 
institutions having been retained on it. 

12.  In  restricted  tendering  there  shall  be  a  minimum  period  of  60 calendar  days  between  the  final 
opinion  delivered  by the Committee and the launching  of the tender. Nevertheless,  in case of  urgency 
this period may be shortened by the Commission, provided that a detailed explanation  is transmitted  to 
the Committee. 

An  invitation  to  a  restricted  tender  shall  allow  for  a time  limit  of  60 calendar  days  from  the  date  of 
delivery  of the  invitation  letter.  In urgent  cases this period  may  be reduced,  but  it  may  never  be  less 
than 40 calendar  days. In exceptional  cases, this delay may be extended  by the Commission,  provided 
that a detailed  explanation  is transmitted to the Committee. All changes of delay must  be duly  notified 
to the firms, organisations or institutions concerned. 

AS 

Annex IV 

Criteria for the Implementation of the Regulation 

1.  Cross-Border Co-operation 

Cross-Border  Co-operation  (CBC)  shall  primarily  serve  to  assist  border  regions  in  overcoming 
their specific  development  problems stemming from  relative  isolation  in the national  economies, 
to  encourage  the  creation  of  co-operation  networks  and  the  establishment  of  links  between 
networks  on  both  sides  of  the  border  including  border-crossing  facilities,  and  accelerate  the 
transformation  process in the N.I.S. by their integration into the co-operation  with border regions 
in the Union or the CEEC. 

CBC may take place along all borders between the Union and the N.I.S., the Central  and Eastern 
European Countries and the N.I.S. and the N.I.S. amongst themselves, including maritime borders. 

CBC includes both measures in the field  of technical assistance and infrastructure.  Activities in all 
priority sectors may be financed  under this form of co-operation. 

2.  Industrial Co-operation, Equity Funding of Joint Ventures (see Art. 2.3.) 

In  the  framework  of  the  assistance  provided  pursuant  to  this  Regulation,  the  promotion  of 
industrial co-operation as referred  to in Article 2.3 shall be implemented  by encouraging pilot co 
operation  projects  between  EU  and  N.I.S.  companies  and  direct  inter-industry  contacts.  Any 
activity  in this context  shall  fully  comply  with this  Regulation,  in  particular,  the  demand-driven 
approach and the tendering procedures. 

In  the  case  of  nuclear-safety  programmes  due  account  shall  be  taken  in  procurement  of  the 
commitment of the recipient country to the objectives of technical assistance in nuclear safety. 

In addition, a specific  facility  ("JOPP")  shall  support the establishment  of joint  ventures through 
the funding  of equity investments in small and medium-sized companies. This facility  will operate 
along the lines and criteria of "JOPP". 

2 bis Contract Information 

For the implementation of Article 5 of this regulation, the Commission shall provide upon request 
to all interested firms, organisations and institutions throughout the Union a documentation on the 
general aspects of the Tacis programme and the ways and specific requirements for a participation 
in the programme. 

The information  on projects,  which are going to be tendered, shall  be made available, as soon as 
possible after  the project  has been submitted  to the Member States in the Tacis Committee. This 
information  shall  be  made  available  to  every  interested  firm,  organisation  or  institution  who 
registers on the Tacis mailing list. 

db 

A  publication  shall  be  made  available  normally  on  a  two-monthly  basis  to  update  the  above 
information,  and  to  inform  firms,  organisations  and  institutions  if  projects  are  still  open  for 
expression of interest. 

3.  Supervision, Monitoring and Evaluation 

In order to  ensure  a full  implementation  of  Article 2.4  of  this  Regulation,  the  Commission  shall 
always ensure effective  control over the whole project cycle. 

In order to  ensure that the Tacis objectives  are being  achieved  to a level  that is  satisfactory  to all 
parties  concerned  an  independent  Monitoring  and  Evaluation  (M  &  E)  programme  shall  be 
implemented. 

Expenditure for this purpose may not exceed  3% of total contracts awarded each year. 

In  the  context  of  the  Tacis  programme,  Monitoring  shall  consist  of  preparing\submitting  an 
analytical  assessment, carried out at regular intervals in the form of a written detailed  summary  of 
Tacis projects  in order to  indicate  the degree  to which these  have achieved  their stated  objectives 
for project management  and other involved  parties. This  shall  aim at ascertaining that projects are 
"on course" and signal  "early warning" of potential  problems to allow adjustments to be made with 
the minimal disruption. 

The  immediate  objective  of  monitoring  shall  be  to  provide  a  regular  reporting  mechanism  to 
enable more focused  project management  decisions  to be reached  in order to ensure that a project 
remains on course thus achieving its objectives. 

Evaluation  shall  consist  of  an  independent  objective  examination  of  the  background,  objectives, 
activities,  means  deployed  and  results  with  a  view  to  drawing  lessons  that  may  be  more  widely 
applicable.  A  number  of  objective  criteria  may  be  used,  for  example  sustainability,  impact  and 
lessons learned. 

The system shall be set up and implemented via regional  offices  and a central M & E section at the 
Commission. 

Monitoring  offices  are  to  be  established  and  maintained  in  the  N.I.S.  and  staffed  by  European 
experts and local counterparts monitors which cannot be involved in the preparation of any project 
according  to  the  criteria  laid  down  in  Annex III,  point 5,  last  indents.  These  offices  shall  be 
responsible  for  all  day  to  day  projects  Monitoring  and  providing  specific  sectoral,  country  and 
regional  reports as  required.  These  offices  shall  cover  interstate  as well  as  sectoral  projects.  The 
European experts will also provide training to the counterpart monitors. 

The  Monitoring  offices  will  interface  with  all  the  participants  in  the  programmes  i.e.  the 
Commission (including  Delegations), Co-ordinating  Units, Project Partners and Contractors. They 
shall  provide  Monitoring  reports  on  a  systematic  and  agreed  basis  to  the  above  participants  on 
projects  and  prepare  regional  reports  and  evaluations  as  required  for  the  M  &  E  Section  in  the 
Commission. 

i? 

The  whole  programme  shall  be  co-ordinated  by  an  M  &  E  section  established  within  Tacis 
services  in  Brussels.  This  section  shall  be  responsible  for  the  overall  policy  and  direction  of  the 
service  and  shall  provide  regular  management  summaries  and  evaluation  reports  on  the  Tacis 
programmes  to  internal  services.  The  European  Parliament  and  the  Tacis  Committee  shall  be 
provided every six months with evaluation summaries and on request with full  evaluation reports. 

4.  Programming 

Before  drawing  up  the  indicative  programmes  referred  to  in  Article 4  of  this  Regulation  the 
Commission shall inform the Committee referred to in Article 6 of the priorities identified with the 
partner States. 

At  the  beginning  of  every  year  the  Commission  shall  provide  an  indicative  timetable  for  the 
presentation of the action programmes to the Committee referred to in Article 6 of the Regulation. 

The  action programmes  shall  be  established  in close  co-operation  with  the partner  States.  In this 
respect  the  Co-ordinating  Units  shall  play  an  important  role.  These  Units  should  be  formed  by 
representatives  of  the  local  Government  and  when  necessary  they  shall  be  assisted  by  experts 
appointed  by  the  Commission.  In this  case,  the  Commission  will  ensure  an appropriate  selection 
procedure in order to guarantee their independence, qualifications  and a wide  representation  of the 
different  nationalities. 

The  action  Programmes  shall  encompass  the  following  information;  link  between  the  indicative 
and the  action  programme;  insertion  of  the action  programme  in the reform  process  underway  in 
the  partner  State;  co-ordination  of  the  action  programme  with  other  donors  activities;  general 
organisation  for the  implementation  and the management of the programme; list  of projects to be 
funded. 

Whenever  possible,  the  objective,  recipient  and  main  components  of  each  project  shall  be 
specified  in the appendix to the action programmes. 

For  each  project  above  1 Mecu,  a  project  sheet  shall  be  attached  in  the  appendix  to' the  action 
programme.  For each  project  above  3 Mecu,  a logical  framework  matrix  shall  be  attached  in the 
appendix to the action programme. 

4  bis Co-ordination 

For the implementation  of Article 7, the Commission  shall  as a rule and on a quarterly  basis  hold 
in those partner countries where a Delegation  exists an information  meeting on the programmes  in 
order to ensure co-ordination of Community  and bilateral efforts  on the spot.  Member States shall 
be  informed  sufficiently  in  advance of  the co-ordination  meetings  on  the  spot,  in order to  ensure 
that these meetings can be thoroughly prepared and a maximum of Member States can be present. 

Co-ordination and co-operation  with other donors shall  be encouraged.  In order to obtain  effective 
co-operation  with  the  International  Financing  Institutions  there  shall  be  regular  consultations 
between the Commission and these institutions on a central as well as a local  level  (4). 

5.  Reporting 

In accordance with Article 8 of this Regulation, the Commission  shall provide an annual  progress 
report. This report shall  include an overview and relevant data on the implementation of the Tacis 
programme on a per country basis. 

Other  aspects  of  operational  or administrative  nature  which  might  have  an  important  impact  on 
programme implementation shall be included in the progress report. 

The report shall upon request be made available to the general public. 

Additional  reports shall be made available to the Committee  and to the European Parliament on a 
quarterly  basis,  containing  a  review  of  the  position  regarding  contracts,  payment  authorisations 
and commitment authorisations and, in particular: 

(i) 

list  of  firms,  organisations,  institutions  and  their  nationality  being  awarded  contracts  in 
excess of  100.000 Ecu, and procedure followed  for award, 

(ii) 

list concerning the distribution of awarded contracts per country of origin. 

The  list  mentioned  under (i)  shall  be published  in the Official  Journal  according  to  Art.  117  of 
the Financial regulation. 

/W 

Statements for entry  in the Council minute 
tes 

1)  Re: Article 2.10. 

Statement by the Member States 

"If any delegation so requests, the Council will endeavour, within a resonable time scale and 
without prejudice  to the procedures provided  for in the legal basis of the act, to reach a common 
view on the respect of human rights and democratic principles in the third country  concerned 
before taking the measure concerning the assistance." 

2)  Re: first parargraph of Article 5 

Council  statement 

"The Council agrees that the Commission will submit to it a report in the event of difficulties  in 
applying the principles set out in Annex III." 

3)  Re: second paragraph of Annex III.3 

Commission  statement 

"The Commission  states that in evaluating tenders it will apply as a general rule a weighting of 
technical  quality (70%) against price (30%)." 

4)  Re: second paragraph  of Annex IV.4a 

Commission  statement 

"The Commission  declares that the European Training Foundation in Turin shall  be given a 
specific  role in the implementation  of the Tacis programme in the area of vocational  training." 

eh* 

ISSN 0254-1475 

COM(96) 213  final 

DOCUMENTS 

EN 

u 

Catalogue number  :  CB-C0-96-225-EN-C 

ISBN 92-78-04044-4 

Office for Official Publications of the European Communities 

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