Proposal for a Council Decision concerning the Community position within the Association Council on the participation of Bulgaria in the multiannual Community programme for energy efficiency, SAVE II
Date: 1998-03-18
Institutions: European Commission
Subjects: Bulgaria, Central and Eastern European countries, EU programme, association agreement (EU), energy policy, energy use

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COMMISSION OF THE EUROPEAN COMMUNITIES 

_ 

: 

Brussels,  18.03.1998 
COM(1998)  152 final 
98/0120  (CSS) 
98/0121  (CSS) 
98/0122 (CNS) 
98/0123 (CNS) 
98/0124 (CNS) 
98/0125 (CNS) 

Proposal for a 
COUNCIL DECISION 
concerning  the Community position within the Association Council 
on the participation  of Bulgaria in the multiannual Community programme for 
energy efficiency,  SAVE II 

Proposal for a 
COUNCIL DECISION 
concerning  the Community  position within the Association Council 
on the participation  of Czech Republic in the multiannual Community  programme 
for energy efficiency,  SAVE II 

Proposal for a 
COUNCIL DECISION 
concerning  the Community position within the Association Council 
on the participation of Lithuania in the multiannual Community programme for 
energy efficiency,  SAVE II 

Proposal for a 
COUNCIL DECISION 
concerning  the Community position within the Association Council 
on the participation of Poland in the multiannual Community programme for energy 
efficiency,  SAVE II 

Proposal for a 
COUNCIL DECISION 
concerning  the Community position within the Association Council 
on the participation of Romania in the multiannual Community programme for 
energy efficiency,  SAVE II 

Proposal for a 
COUNCIL DECISION 
concerning  the Community position within the Association  Council 
on the participation  of Slovak Republic in the multiannual Community programme 
for energy efficiency,  SAVE II 

[presented by the Commission) 

Explanatory Memorandum 

In  the  conclusions  of  its  meeting  of  12  and  13  December  1997  in  Luxembourg,  the 
European  Council  stressed  the  importance of the  participation  of candidate  countries in 
Community  programmes,  which  will  help these  countries to  familiarise  themselves with 
the Union's policies and working methods. 

The  Europe  Agreements  or  their  Additional  Protocols  concerning  the  participation  in 
Community  programmes  explicitely  mention  the  field  of  energy  as  an  eligible  area. 
Moreover,  they  convey  the task  to  define  terms  and  conditions  for  participation  to  the 
Association  Councils.  Therefore,  in  preparation  of  Association  Council  decisions,  the 
Commission services concerned have held exploratory discussions with the  10 associated 
countries from central Europe in Brussels in December  1996 and the beginning of  1997 
concerning their future  participation  in the SAVE II programme, which was adopted  16 
December 1996, and provides for the participation of associated CEC's and Cyprus. 

During these discussions, information was provided on the content of the programme and 
on  conditions  and  modalities  for  these  countries'  participation,  including  the  cost  of 
participation.  More  particularly,  taking  into  account  that,  as  provided  in  the  Europe 
Agreements  or  their  Additional  Protocols,  the  CEC's  will  themselves  meet  the  costs 
resulting from their participation, they have been invited to make the necessary provisions 
in their  budgets  for  1998, on  the  basis  of  cost  estimates  provided  by the  Commission. 
Furthermore, the possibility for the  CEC's to draw on their national Phare allocation  for 
complementing the contribution from their own budget has been reiterated. 

So far,  six CEC's confirmed to the Commission in writing their willingness to participate 
in  SAVE  II  as  from  1998,  namely  Bulgaria,  the  Czech  Republic,  Lithuania,  Poland, 
Romania and the Slovak Republic; moreover, they provided sufficient  information on how 
they  envisage  to  pay  their financial contribution  thereto,  allowing  the  Commission  to 
prepare draft Association Council decisions. 

The main issues addressed  in the annexed  draft  Association  Council Decisions adopting 
the terms and conditions for the participation of Bulgaria, the Czech Republic, Lithuania, 
Poland, Romania and the Slovak Republic in SAVE II are the following : 

•  the  six countries will  participate  in  all activities  of  SAVE II,  in  conformity  with  the 

objectives, criteria and procedures of the Programme (Annex 1, point 1). 

• 

terms and conditions for the submission, assessment and selection of applications will 
be the same as for Member States (Annex 1, point 2). 

•  a  minimum  number  of  partners  from  EC  Member  States  will  be  required  for  all 
transnational  projects  proposed  by Bulgaria, the Czech Republic, Lithuania,  Poland, 
Romania and the Slovak Republic (Annex 1, point 3). 

• 

the six countries will ensure national coordination  and organisation  of participation in 
SAVE H (Annex 1, 4). 

a. 

•  financial  contributions are defined in Annex  1, point 5 and in Annex II to the respective 
Decisions; in accordance with Article 3 of the Additional Protocols with Bulgaria, the 
Czech Republic, Poland, Romania and the Slovak Republic and with Article 110 of the 
Europe Agreement with Lithuania,  these countries will  pay an annual  contribution  to 
cover  the  cost  of  their  participation,  which  will  be financed partly from their  own 
budget, and partly from their Phare allocation. 

• 

• 

• 

these  countries  will  participate  in  the  monitoring  of  their  participation  in  the 
Programme (Annex  1 point 7). 

v 

they  will  be  invited  to  coordination  meetings  prior  to  the  meetings  of  the  SAVE 
Committee; they will also be informed of their results (Annex  1, point 8). 

the  Decisions  shall  apply  for  the  duration  of  the  programme  (Article  2  in  the 
Decisions). 

Thç  adoption  of  Association  Council  decisions  to  allow  Bulgaria,  the  Czech  Republic, 
Lithuania, Poland, Romania and the Slovak Republic to participate in SAVE II from 1998 
will  offer  an opportunity to  participate actively in this internal  Community instrument,  as 
part  of  the  re-inforced  pre-accession  strategy.  It  is,  therefore,  of  considerable  political 
importance. 

In order to  allow  these  six  candidate  countries  to join  SAVE  II  in  the  near  future,  the 
Council is invited to adopt the annexed proposals for decisions concerning the Community 
position  within  the  Association  Councils  with  Bulgaria,  the  Czech  Republic,  Lithuania, 
Poland, Romania and the Slovak Republic on their participation in SAVE II. 

.3 

Proposal for a 
COUNCIL DECISION 

9^/o/2o£o,ujr) 

of 

concerning the Community position within the Association Council 

on the participation of Bulgaria in the multiannual Community programme for 
energy efficiency, SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  130r  and  130s, paragraph  1, in conjunction  with  Article 228,  paragraph  3,  1st 
alinéa thereof 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Additional  Protocol  to  thEurope  Agreement  establishing  an  association 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
Bulgaria,  of  the  other  part,  has  been  concluded  by  decision  of  the  Council  and  the 
Commission of 4 December 1995, 

Whereas, according to  Article  1 of the Additional Protocol, Bulgaria  may participate in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy and pursuant to Article 2, the terms and conditions 
for the participation of Bulgaria in the activities referred to in Article  1  shall be decided by 
the Association Council, 

Whereas Council Decision (96/73 7/EC)1 of 16 December  1996 establishing a multiannual 
programme  for  the  promotion  of  energy  efficiency  in the  Community  and  in particular 
Article  10 thereof,  provides  that  this  programme  shall  be  open  to  the  participation  of 
associated  Central  European  countries  in accordance  with the  conditions  set  out  in the 
Association Agreements on participation in Community programmes: 

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established by 
the Europe Agreement between the European  Communities and their Member States, of 
the one part, and Bulgaria, of the other part, concerning the participation  of Bulgaria in 
the Community programme for  energy efficiency,  SAVE II, is the attached  draft  decision 
of the Association Council. 
Done at Brussels 

For the Council 

1  O.J.N° L 335/50 of 24.12.1996 

U 

Draft Decision n°..../97 of the Association Council between the European 
Communities and their Member States, of the one part, and Bulgaria, of the other 

adopting the terms and conditions for the participation of Bulgaria in the 
Community programme for energy efficiency,  SAVE H 

part of 

1998 

THE ASSOCIATION COUNCIL 

Having regard  to  the Europe  Agreement  between the European  Communities  and their 
Member States, of the one part, and Bulgaria, of the other part  x; 

Having  regard  to  the  Additional  Protocol  of  the  Europe  Agreement  establishing  an 
association between the European Communities and their Member States, of the one part, 
and  Bulgaria,  of  the  other  part,  concerning  Bulgaria's  participation  in  Community 
programmes, and in particular Articles 1  and 2 thereof2; 

Whereas according to Article  1 of the said Additional Protocol, Bulgaria may participate 
in  Community framework programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy; 

Whereas according to Article 2 of the said Additional Protocol the terms and conditions 
for the participation of Bulgaria in the activities referred .to in Article  1 are to be decided 
by the Association Council, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Bulgaria shall participate in the European Community programme  SAVE II according to 
the terms and conditions set out in Annexes I and II which shall form  an integral part of 
this Decision. 

This Decision shall apply for the duration of the SAVE II programme. 

Article 2 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

1  O.J. N°L 358 of 31.12.1994 

2  O.J. N°L 317 of 30.12.1995 

r 

Annex I 

Terms and conditions for the participation  of Bulgaria 
in the multiannual Community  programme for energy efficiency,  SAVE H 

1. Bulgaria will  participate  in  all  actions  of  the  multiannual  Community  programme  for 
energy efficiency,  SAVE II (hereinafter called "SAVE H") in conformity, unless otherwise 
provided  in  this Decision,  with  the  objectives,  criteria,  procedures  and  time  limits  laid 
down  in  Council  Decision  (96/73 7/EC)  establishing  a  five-year  programme  for  the 
preparation  and  implementation  of  measures  and  actions  in  a  cost-effective  manner  in 
order to promote energy efficiency within the Community. 

2.  The terms and conditions for the submission,  assessment  and selection of  applications 
related to  eligible institutions,  organisations and individuals of Bulgaria  shall be the same 
as those applicable to eligible institutions, organisations and individuals of the Community, 
set  within the limits of the financial contribution  of Bulgaria  less  administrative  costs  as 
provided in Annex H. 

3.  Where  applicable,  to  ensure  the  Community  dimension  of  SAVE  II,  transnational 
projects and activities proposed by Bulgaria will be required to include a minimum number 
of  partners from the Member  States  of  the  Community.  This  minimum  number  will  be 
decided  in  the framework of  the  implementation  of  SAVE  n,  taking  into  account  the 
nature of the various activities, the number of partners in a given project,  and the number 
of countries participating in the activity. 

4. Bulgaria shall take all necessary  steps to ensure national  coordination and organisation 
of participation in SAVE EL 

5.  Bulgaria  shall  pay  each  year  a  contribution  to  the  general  budget  of  the  European 
Communities to cover the costs resulting from its participation in SAVE II (see Annex H). 

The Association Committee is entitled to adapt this contribution whenever necessary. 

6. The Member States of the Community and Bulgaria will make-every-effort,  within the 
framework  of existing provisions, to facilitate the free movement and residence of persons 
moving between Bulgaria and the Member  States  of  the  Community  for  the  purpose  of 
participating in activities covered by this Decision. 

7. Without prejudice to the responsibilities of the Commission and the  Court of Auditors 
of the European  Communities  in relation to  the  monitoring  and  evaluation  of  SAVE II 
pursuant to Article 5 of the Council Decision on SAVE H, the participation of Bulgaria in 
the programme will be continuously monitored on a partnership basis involving Bulgaria 
and the  Commission  of  the  European  Communities.  Bulgaria  will  submit  the  necessary 
reports  to  the  Commission  and  take  part  in  other  specific  activities  set  out  by  the 
Community in that context. 

£• 

8. Without prejudice to the procedures referred  to in Articles 4 and 5 of the Decision on 
SAVE  H,  Bulgaria will  be  invited  to  coordination  meetings  on  any  question  concerning 
the  implementation  of  this  Decision  prior  to  the  regular  meetings  of  the  SAVE 
Committee.  The  Commission  will  inform  Bulgaria  about  the  results  of  such  regular 
meetings. 

9.  The  language  to  be  used  as  regards  the  application  process,  contracts,  reports  to  be 
submitted and other administrative arrangements for the SAVE II programme, will be one 
of the official  languages of the Community. 

1-

ANNEX II 

FINANCIAL CONTRIBUTION OF BULGARIA TO 
SAVE H 

1.  The financial contribution of Bulgaria will cover: 

-subsidies  or  any  other  financial  support  from  the  programme  to  Bulgarian 
participants, 

-supplementary administrative costs related to the management of the programme 
by  the  Commission  of  the  European  Communities  stemming  from  the  Bulgarian 
Republic's participation. 

2.  For  every financial year,  the  aggregated  amount  of  subsidies  or  any  other  financial 
support received from the programme by Bulgarian beneficiaries  will not  exceed the 
contribution  paid  by Bulgaria,  after  deduction  of  the  supplementary  administrative 
costs. 

Should  the  contribution  paid  by  Bulgaria  to  the  general  budget  of  the  European 
Communities,  after  deduction  of  the  supplementary  administrative  costs,  be  higher 
than the aggregated amount of the subsidies or other financial support received by the 
Bulgarian  beneficiaries  from  the  programmes,  the  Commission  will  transfer  the 
balance  to  the  next  budgetary  exercise,  and  it  will  be  deducted  from  the  following 
year's contribution.  Should  such a balance be left  when the programme  comes to an 
end, the corresponding amount will be reimbursed to Bulgaria. 

3.  Bulgaria's annual contribution will be of 231 768 ECU from 1998. From this sum, an 
amount of  15 768 ECU will cover  supplementary  administrative  costs  related to  the 
management  of  the  programme  by  the  Commission  stemming  from  Bulgaria's 
participation. 

4.  The  financial  regulations  applicable  to  the  general  budget  of  the  European 
Communities will apply, notably to the management of the contribution of Bulgaria. 

Upon  the  entry  into  force  of  this  Decision  and  at  the  beginning  of  each  year,  the 
Commission will send to Bulgaria a call for funds corresponding to its contribution to 
the costs under this Decision. 

This contribution will be expressed in ecus and paid into an ecu bank account of the 
Commission. 

f 

Bulgaria will pay its contribution to the annual costs under this Decision according to 
the  call  for funds  and at the  latest three months after the call for  funds  is  sent.  Any 
delay in the payment of the contribution  shall give rise to the payment of interest by 
Bulgaria on the outstanding amount from the due date. The interest rate corresponds 
to the rate applied by the European Monetary Cooperation Fund for the month of the 
due date, for its operations in ecus1, increased by 1,5 percentage points. 

5.  Bulgaria will  pay the  supplementary  administrative  costs  referred  to  in paragraph  3 

from  its national budget. 

6. 

Subject  to  regular  Phare  programming  procedures,  the  remaining  costs  of  216  000 
ECU for each of the years  1998,  1999 and 2000 will be paid from Bulgaria's annual 
Phare allocations 

Rate published monthly in the Official Journal of the European Communities - C series 

9 

FINANCIAL STATEMENT 

1. TITLE OF OPERATION 

Opening of the SAVE II Programme to Bulgaria 

2. BUDGET HEADING INVOLVED 

B7-503 - Opening of Community Programmes to the associated countries of Central and Eastern 
Europe 

3. LEGAL BASIS 

Treaty  establishing the European  Community,  and  in particular  Articles  13Or and  130s, 
paragraph l,in conjunction with Article 228, paragraph 3,  1st alinéa thereof,. 

The Additional Protocol to the Europe Agreement with Bulgaria (Articles  228 and 238) 
of  20  July  1995,  providing  for  the  opening-up  of  Community  programmes  (OJ  No  L 
317/24 of 30.12.1995) and 

Council Decision (96/73 7/EC) establishing a five-year programme for the preparation and 
implementation  of measures and  actions in a cost-effective  manner in  order  to  promote 
energy efficiency  within the Community, and Article  10 thereof, which provides that this 
programme shall be open to the participation of associated  Central European countries in 
accordance with the conditions set out in the Association Agreements on participation in 
Community programmes. 

4. DESCRIPTION OF OPERATION: 

4.1 General objective 

Bulgaria's  participation  in  SAVE  II  will  assist  in  preparing  its  future  accession  to  the 
Union, which was the aim set by the  Copenhagen European  Council  of June  1993 and 
confirmed  by  subsequent  European  Councils.  Its  participation  willnot  only  contribute 
towards  the  implementation  of  the  provisions  relating  to  economic  and  technical 
cooperation  in the Europe Agreements but will also enable Bulgaria  to  familiarise  itself 
with the procedures and methods used in Community programmes. The "Agenda 2000" 
communication  from  the  Commission  reiterates  the  importance  of  participating  in 
Community programmes as a key feature of a re-inforced pre-accession strategy. 

The decision-making process for the opening-up of programmes involves a decision by the 
Association Council between the Union and the associated country. This decision also lays 
down the practical conditions and arrangements for participating in the programmes. 

The Additional Protocol with Bulgaria entered into force on 1  August  1996 and provides 
for Bulgaria's participation in community programmes, notably in the field of energy. 

/O 

SAVE II is one of a number of programmes opening up for the countries of Central and 
Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For  the  duration  of  SAVE  H,  i.e.  until  31  December  2000.  The  Phare  contribution, 
however, is dependent on decisions taken as regards the budget after  1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved : 

Since the first paragraph of Article 3 of the Additional Protocol  stipulates  that  Bulgaria 
itself will meet the cost of its participation, it will be invited to transfer  its contribution to 
item 6091 of the EUs budget receipts. However, as  the second paragraph of Article 3 of 
the  Additional  Protocol  states  that  the  Community  may  supplement  Bulgaria's 
contribution, Bulgaria will contribute only part from its own budget,  with the remainder 
being  charged  to  heading  B7-503.  A  transfer  from  the  relevant  Phare  appropriations 
(heading  B7-500)  to  heading  B7-503  will  be  made  upon  receipt  of  the  Bulgarian 
contribution. 

6. TYPE OF EXPENDITURE OR REVENUE AND DEGREE OF SUBVENTION 
FOR ACTTVITIES PROPOSED 

100%  (maximum)  subsidy  will  be  allowed  on  total  eligible  expenses.for  the  following 
actions: 

- for studies, information  dissemination and other actions aimed at the implementation 
and  completion  of  Community  measures  such  as  voluntary  agreements,  cooperative 
procurements,  mandates to  standardisation  bodies,  legislation,  etc.  taken  to  improve 
energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a  view  to  establishing  energy  efficiency  as  a  criterion  within 
Community programmes. 

-  for  measures  proposed  by  the  Commission  to  foster  the  exchange  of  experience 
aimed  at  promoting  better  coordination  between  international,  Community,  national, 
regional and local activities by appropriate means for information dissemination. 

-  for monitoring of energy efficiency  progress in the Community, in individual Member 
States and in Bulgaria; and for the evaluation and monitoring of actions and measures 
undertaken under the programme. 

// 

For the above actions with  100% subsidy, the Council Decision  of  16 December  1996 
(96/737VEC) may in and of itself be considered a call for tender. 

50% (maximum) subsidy on total eligible expenses will be allowed for joint financing with 
other sources for the following actions: 

-  for sectoral targeted pilot actions aimed at accelerating energy efficiency  investment, 
and/or  improving  energy  use  patterns  including  specific  actions  in  favour  of  energy 
management at the regional and urban level and in favour of greater cohesion between 
Member States and Bulgaria, and regions thereof  in the field of energy efficiency. 

for measures proposed to promote better coordination  of activities for  information 

- 
dissemination. 

- for measures, proposed otherwise than by the Commission, to foster the exchange of 
experience aimed at promoting better coordination between international,  Community, 
national,  regional  and 
information 
dissemination. 

local  activities  by  appropriate  means  for 

For  the  above  actions,  activities  may  be  carried  out  by  organisations  or  public  and 
private  enterprises  as  well  as  by  existing  Community-wide  networks  or  temporary 
groupings of organisations and/or enterprises formed to accomplish the projects. 

For  the  above  actions  with  50% subsidy,  a  call  for  tender  will  be  published  in  the 
Official  Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It  is  understood  that  all  actions  undertaken  will  have  a  clear  and  visible  European 
dimension. 

As far as revenue is concerned,  provision for Bulgaria's contributionio cover the cost  of 
its participation is made under item 6091. The revenue will be allocated  to the  items for 
expenditure  on  SAVE  II  and,  where  appropriate,  to  the  relevant  items  of  operating 
expenditure. 

The total revenue expected is given under item 7.2. 

IX 

7. FINANCIAL IMPACT 

7.1  Method  of  calculating  total  cost  of operation  for  1998,  1999  and  2000  financial 

years (link between individual costs and total cost) 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities referred  to in the 
Protocol  is  calculated  according  to  the  principle  that  the  country  bears  the  cost  of 
participation itself. Heading 6091 has been created in the statement of budget revenue 
for that purpose; 

- 
the Community may décide on a case-by-case basis to pay a supplement to the partner 
country's contribution.  The  supplement  may be in the form  of a contribution  under  the 
partner country's PHARE allocation. 

Based on the Additional Protocol with the Bulgarian Republic, the financial and budgetary 
arrangements for  SAVE II are as follows: the costs have been calculated  on the basis of 
various  parameters  inherent  in  the  programme,  i.e.  GDP,  population,  and  total  inland 
energy consumption 

The cost of the Bulgarian Republic 's participation in SAVE II from 1998 will be 
ECU  231.768 per year. 

The  administrative  costs  shall  be  be covered  entirely from Bulgaria's  national  budget. 
The remaining costs of 216.000 ECU for each of the years  1998,  1999 and 2000 will be 
paid  from  Bulgaria's  annual  Phare  allocations,  subject  to  regular  Phare  programming 
procedures. 

7.2  Itemized  breakdown  of  cost  (in  ecu)  after  the  administrative  costs  have  been 
deducted. 

SAVE II 

1998 

1999 

2000 

Total 

216.000 

216.000 

216.000 

648.000 

of  which 
"Bulgaria 
0 

of  which 
Phare 
648.000 

7.3  Operational expenditure on special studies, expert meetings, etc., included in 10.2. 

12 

7.4  Schedule  for  multiannual  operations;  amounts  to  be  charged  to  item  B7  503; 
indicative time schedule (year t =30%; year t+l=30%; year t+2=40%). 

1998 

1999 

2000 

Subsequent 
years 

TOTAL 

Committed 
appropriations 
Disbursed 
appropriations 
1998 
1999 
2000 
Subsequent 
years 
Total 

216.000 

216.000 

216.000 

64.800 
64.800 
86.400 

216.000 

64.800 
64.800 

64.800 

86.400 
216.000 

151.200 
216.000 

The foreseeable annual receipts are as follows: 

648.000 

64.800 
129.600 
216.000 

237.600 
648.000 

Item 6091 

1998 

1999 

2000 

Total 

Operational 
part 
Administrative 
part 

Total 

0 

0 

0 

0 

15.768 

15.768 

15.768 

15.768 

15.768 

15.768 

47.304 

47.304 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

All the Commission's contracts, agreements and other legal commitmentsLprovide for on-
the-spot  checks  by  the  Commission  and  Court  of  Auditors.  Among^other  things,  the 
beneficiaries  of the operations are obliged to file reports and financial statements. These 
are analysed from the point of view of their content and the eligibility of the expenditure in 
line with the objective of Community  financing. 

The anti-fraud  provisions  of the basic budget  headings  apply to  this  heading  too  when 
adapted to the case of the countries of Central and Eastern Europe. 

9.  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

9.1.  Specific and quantified  objectives 

The aim of opening up SAVE II to the Bulgarian Republic is to bring it the same benefits 
as  the  Member  States  of  the  Community  already  enjoy  from  this  programme.  The 
essential  aim  of  Community  action  on  energy  efficiency 
should  be  to  enable  all 
participating countries to achieve in a cost-effective  manner a prudent and rational use of 
energy  resources  in  all  sectors,  to  reduce  the  negative  impart  of  energy  use  on  the 

/¥ 

environment  and  to  contribute  to  a better  security  of  energy  supply  and  to  sustainable 
economic development. 

More specific strategies and aims of the  programme are: 

- to  strengthen  the energy  efficiency  infrastructure  in participating  countries and to 
encourage  investments  in  energy efficiency  by private  and public  consumers  and by 
industry. 

-to stabilize and reduce C02 emissions in accordance with Community goals 

-to  develop and pursue actions leading to the strengthening of Community economic 
and  social  cohesion,  and  in  particular  to  reduce  disparities  between  levels  of 
development of the various regions, wherein  energy should be an integral part of that 
effort. 

-  to  complement  other  programmes  for  the  use  and  promotion  of  new  energy 
technologies. 

-  to  improve  the energy  intensity  of final consumption  by a further  one  percentage 
point per annum over that which would have been otherwise attained. 

- to support local energy management programmes. 

-  to  ensure  that  actions  and  projects  are  subject  to  thorough  prior  appraisal  and 
systematic monitoring and evaluation. 

-to  insure  that  directives  on  energy  efficiency  such  as  those  concerning  labelling, 
minimum  efficiency  standards,  C02  reduction  (93/76/EEC), etc.  are implemented in 
accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial aid 

Given severe budgetary constraints in the Bulgarian Republic, and the importance of the 
participation in Community programmes, a part of the re-inforced  pre-accession strategy, 
financing  of Bulgaria's financial contribution by means of its Phare allocation is required. 

-  Choice of ways and means 

The  Bulgarian  Republic's  integration  in  SAVE  II  will  put  it  on  a  basis  similar  to  the 
current  EU  Member  States.  The  integration  of  Bulgarian  nationals  in  Community 
networks will make a definite  contribution to  preparing the Bulgarian Republic for  future 
membership. 

-  Main factors of uncertainty which could affect the specific results of the operation 

Since projects will be selected according to qualitative criteria, it will only be possible to 
measure  the  real  impart  on  the  basis  of  Bulgarian  institutions'  and firms' capacity  to 

/r 

respond to the calls for proposal for actions to be launched by the Commission under the 
programme as set out in Section 6 of this financial statement. 

9.3 Monitoring and evaluation of the operation 

The  monitoring  and  evaluation  procedures  included  in  SAVE  II  (notably  in  respect  of 
evaluation,  as  included  in  the  Article  5,  Paragraph  2  of  the  Decision  establishing  the 
programme) will also cover operations financed for Bulgarian Republic beneficiaries.  This 
includes the submission by the selected beneficiaries  of a report to the Commission  on a 
six-monthly  basis  and  on  completion  of  the  project.  As  described  in  Article  6  of  this 
document,  certain  monitoring  and  evaluation  actions  and  measures  are  also  eligible  for 
programme subsidies. 

10. ADMINISTRATIVE EXPENDITURE 

Actual  mobilisation  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on  the  allocation  of  resources,  taking  into  account  the 
number  of  staff  and  additional  amounts  authorised  by  the  budgetary  authority.  The 
supplementary  needs  can  not,  in  any  case,  préjuge  the  decision  that  the  Commission 
will need  to take  concerning: 
a)  the 
request 
b)  the resources  allocation 

framework 

the  APB 

posts 

new 

the 

of 

of 

in 

10.1  Overall  impact  on  the  number  of  posts,  calculated  on  the  basis  of 
participation  by the  Bulgarian  Republic 

Type  of  post 

staff  required 

to 

including 

Additional 
manage  the  operation 
Permanent 
posts 

Temporary 
posts 

using  existing 
of 
resources 
the 
departments 
concerned 

using 
additional 
resources 

— 

.  _ 

0.05 
0.03 

0.08 

duration 

! 
! 

1998-
2 0 00 

1998-
2 0 00 

Officials 
A 
c 
Other  resources 

0.05 
0.03 

TOTAL 

0.08 

16 

10.2  Increase  in  other  yearly  and  total  operating  expenses  as  a  result  of 
participation  by the  Bulgarian  Republic fin ecu). 

Budget  heading  (No and  title) 

Yearly 
expenses 

Total  for 
1998  -  2 0 00 

calculation 

Method  of 

Al  178/A23technical 
assistance 

A1300  missions 
A2500 
meetings 
technical  committees 

with 

6.268 

18.804 

1.500 

4.500 

3.500 

10.500 

A2510  compulsory  meetings 
with  SAVE  Committee 

Total 

4.500 

13.500 

15.768 

47.304 

Based  on  share  of  total 
of 
cost 
additional 
technical  assistance. 
1  mission  per year. 
Participation  by  Bulgarian 
Republic  representatives 
in  2  annual  meetings. 

Participation 
average  of  3 
meetings  per year. 

in 

an 

The  above  expenditure  will  be  met  from  the  receipts  received  from  Bulgaria's  own 
financial  contribution to the Community programme. 

a 

Proposal for a 
COUNCIL DECISION 

of 

^ /o 

/Sut  CuJÇ) 
J 

concerning the Community position within the Association Council 
on the participation of the Czech Republic in the multiannual Community 
programme for energy efficiency,  SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty  establishing the European  Community,  and in particular 
Article  130r and  130s, paragraph  1, in conjunction  with Article 228, paragraph  3, 1st 
alinéa  thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas the Additional Protocol to the Europe Agreement establishing an association 
between the European Communities and their Member States, of the one part, and the 
Czech Republic, of the other part, has been concluded by decision of the Council and 
the Commission of 4 December 1995, 

Whereas, according to Article  1 of the Additional Protocol,  the Czech Republic may 
participate  in  Community framework programmes,  specific  programmes,  projects  or 
other actions including those in the field of energy and pursuant to Article 2, the terms 
and conditions for the participation of the Czech Republic in the activities referred to in 
Article 1  shall be decided by the Association Council, 

Whereas  Council  Decision  (96/73 7/EC)1  of  16  December  1996  establishing  a 
multiannual programme for the promotion of energy efficiency  in the Community and 
in  particular  Article  10 thereof  provides  that  this  programme  shalFbe  open  to  the 
participation  of  associated  Central  European  countries  in„accoTdance  with  the 
conditions  set  out  in  the  Association  Agreements  on  participation  in  Community 
programmes-. 

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established 
by  the  Europe  Agreement  between  the  European  Communities  and  their  Member 
States,  of  the  one  part,  and  the  Czech  Republic,  of  the  other  part,  concerning  the 
participation  of  the  Czech  Republic  in  the  Community  programme  for  energy 
efficiency,  SAVE II, is the attached draft decision of the Association Council. 

Done at Brussels 

For the Council 

1  O.J. N° L 335/50 of 24.12.1996 

\t 

Draft Decision n°..../98 of the Association Council between the European 
Communities and their Member States, of the one part, and the Czech Republic, 

of the other part of 

1998 

adopting the terms and conditions for the participation of the Czech Republic in 
the Community programme for energy efficiency,  SAVE H 

THE ASSOCIATION COUNCIL, 

Having regard to the Europe Agreement between the European Communities and then-
Member States, of the one part, and the Czech Republic, of the other part1; 

Having  regard  to  the  Additional  Protocol  the  Europe  Agreement  establishing  an 
association  between the European  Communities and their Member  States,  of the one 
part,  and  the  Czech  Republic,  of  the  other  part  concerning  the  Czech  Republic's 
participation in Community programmes, and in particular Articles 1  and 2 thereof2; 

Whereas according to  Article  1 of the said  Additional  Protocol,  the  Czech  Republic 
may participate in Community framework programmes, specific programmes,  projects 
or other actions including those in the field of energy; 

*< 

• 

Whereas  according  to  Article  2  of  the  said  Additional  Protocol  the  terms  and 
conditions  for  the participation  of the Czech Republic- in the  activities  referred  to in 
Article 1  are to be decided by the Association Council, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Czech Republic shall participate in the European Community programme SAVE II 
according to the terms and conditions set out in Annexes I and II which shall form an 
integral part of this Decision. 

This Decision shall apply for the duration of the SAVE II programme. 

Article 2 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

1  O.J. N°L  360 of 31.12.1994 

2  O.J. N° L 317/44 of 30.12.1995 

1°) 

A N N EX  I 

Terms and conditions for the participation  of the Czech Republic 
in the multiannual  Community  programme for energy efficiency,  SAVE H 

1. 

The Czech Republic will participate  in all actions of the multiannual  Community 
programme  for  energy  efficiency,  SAVE  II  (hereinafter  called  "SAVE  H")  in 
conformity,  unless  otherwise  provided  in  this  Decision,  with  the  objectives, 
criteria,  procedures  and  time  limits laid  down  in Council  Decision  (96/73 7/EC) 
establishing  a  five-year  programme  for  the  preparation  and  implementation  of 
measures  and  actions  in  a  cost-effective  manner  in  order  fo  promote  energy 
efficiency  within the Community. 

2. 

The  terms  and  conditions  for  the  submission,  assessment  and  selection  of 
applications  related  to  eligible  institutions,  organizations  and  individuals  of  the 
Czech  Republic  will  be  the  same  as  those  applicable  to  eligible  institutions, 
organisations  and  individuals  of  the  Community,  set  within  the  limits  of  the 
' financial contribution  of the Czech Republic less administrative costs as provided 

in Annex H. 

3.  Where applicable, to ensure the Community dimension  of SAVE II,  transnational 
projects  and  activities  proposed  by  the  Czech  Republic  will  be  required  to 
include  a  minimum  number  of  partners  from  the  Member  States  of  the 
Community.  This  minimum  number  will  be  decided  in  the  framework  of  the 
implementation  of  SAVE  II,  taking  into  account  the  nature  of  the  various 
activities, the number  of partners in a given  project,  and the number  of  countries 
participating in the activity. 

4. 

5. 

6. 

The Czech Republic will take all necessary  steps to  ensure  national  coordination 
and organisation  of participation in SAVE II. 

The  Czech  Republic  will  pay  each  year  a  contribution  to-the  general  budget  of 
the  European  Communities  to  cover the  costs  resulting  from  its  participation  in 
SAVE H (see Annex II). 

The  Association  Committee  is  entitled  to  adapt  this  contribution  whenever 
necessary. 

The Member  States  of the  Community  and  the  Czech  Republic  will  make  every 
effort,  within  the  framework  of  existing  provisions,  to  facilitate  the  free 
movement  and residence of persons moving between the Czech Republic and the 
Member  States  of  the  Community  for  the  purpose  of  participating  in  activities 
covered by this Decision. 

7.  Without  prejudice to the responsibilities  of the Commission  and the  Community's 
Court  of  Auditors  of  thé  European  Communities  in  relation  to  the  monitoring 
and  evaluation  of  SAVE  II  pursuant  to  Article  5  of  the  Council  Decision  on 

c ^O 

SAVE  H,  the  participation  of  the  Czech  Republic  in  the  programme  will  be 
continuously rnonitored on a partnership basis involving the Czech Republic and 
the Commission of the European Communities.  The Czech Republic will submit 
the necessary reports to the Commission and take part in. other specific  activities 
set out by the Community in that context. 

8.  Without  prejudice  to  the  procedures, referred  to  in  Articles  4  and  5  of  the 
Decision  on  SAVE  H,  the  Czech  Republic  will  be  invited  to  coordination 
meetings on any question concerning the implementation of this Decision prior to 
the regular meetings  of the SAVE Committee.  The Commission will  inform the 
Czech Republic about the results of such regular meetings. 

9. 

The language to be used as regards the application process, contracts, reports to 
be submitted and other administrative arrangements for the SAVE II programme, 
will be one of the official  languages of the Community. 

<£/ 

A N N EX  II 

Financial Contribution of the Czech Republic to 
SAVE II 

1.  The financial contribution of the Czech Republic will cover: 

subsidies  or  any  other financial support  from  the  programme  to  Czech 
participants, 
supplementary  administrative  costs  related  to  the  management  of  the 
programme  by  the  Commission  of  the  European  Communities  stemming 
from  the Czech Republic's participation. 

2.  . For every financial year, the aggregated amount of subsidies or any other  financial 
support received from the  programme by Czech  beneficiaries  will  not  exceed  the 
contribution  paid  by  the  Czech  Republic,  after  deduction  of  the  supplementary 
administrative costs. 

Should the contribution  paid by the Czech Republic to the general  budget  of the 
European Communities, after deduction of the supplementary administrative costs, 
be higher than the aggregated  amount  of the subsidies  or other financial support 
received  by  the  Czech  beneficiaries  from  the  programme,  the  Commission  will 
transfer  the balance  to  the  next  budgetary  exercise,  and  it will  be  deducted from 
the  following  year's  contribution.  Should  such  a  balance  be  left  when  the 
programme comes to  an end, the corresponding  amount will be reimbursed to the 
Czech Republic. 

3.  The  Czech  Republic's  annual  contribution  will  be  of  386  280  ECU  from  1998. 
From this sum, an amount of 26 280 ECU will cover supplementary administrative 
costs  related to the management  of the programme by the Commission  stemming 
from  the Czech Republic's participation. 

4.  The  financial  regulation  applicable  to  the  general  budget  of  the  European 
Communities  will  apply,  notably  to  the  management  of  the  contribution  of  the 
Czech Republic. 

Upon the entry into force  of this Decision  and at the beginning  of each year,  the 
Commission will send to  the Czech Republic a call for funds  corresponding  to its 
contribution to the costs under this Decision. 

This contribution  will  be expressed  in ecus and paid  into  an ecu  bank  account  of 
the Commission. 

The  Czech  Republic  will  pay  its  contribution  to  the  annual  costs  under  this 
Decision according to the call for funds and at the latest three months after the call 
for funds is sent. Any delay in the payment of the contribution shall give rise to the 
payment  of  interest  by  the  Czech  Republic  on  the  outstanding  amount from the 
due  date.  The  interest  rate  corresponds  to  the  rate  applied  by  the  European 

& 

Monetary  Cooperation  Fund  for the  month  of  the due  date,  for  its  operations  in 
ecus1, increased by 1,5 percentage points. 

The Czech Republic will  pay the supplementary  administrative costs referred  to in 
paragraph  3 from its national budget. 

The  Czech  Republic  will  pay  ECU  210.000  of  the  remaining  cost  of  its 
participation in SAVE II from its national budget. 

Subject to regular Phare programming procedures, ECU  150.000 will be paid  from 
the Czech Republic's annual Phare allocation. 

1  Rate published monthly in the OjJicialJournal of the European Communities - C series 

<âl 

FINANCIAL STATEMENT 

1. TITLE OF OPERATION 

Participation of the Czech Republic in SAVE II 

2. BUDGET HEADING INVOLVED 

B7-503  -  Opening of  Community  Programmes to the associated  countries  of  Central and 
Eastern Europe 

3. LEGAL BASIS 

Treaty establishing the European Community, and in particular Articles  13 Or and 130s, 
paragraph 1, in conjunction with Article 228, paragraph 3,  1st alinéa  thereof, 

The Additional  Protocol  to the Europe Agreement  with the Czech Republic  (Articles 
228  and  238)  of  24  August  1995,  providing  for-the  opening-up  of  Community 
programmes (OJ No L 317/44 of 30.12.1995) and 

Council Decision  (96/73 7/EC)  establishing  a five-year programme for the  preparation 
and  implementation  of  measures  and  actions  in  a  cost-effective  manner  in  order  to 
promote  energy  efficiency  within  the  Community,  and  Article  10  thereof,  which 
provides that this  programme  shall  be open to  the participation  of  associated  Central 
European  countries  in  accordance  with  the  conditions  set  out  in  the  Association 
Agreements on participation in Community programmes. 

4. DESCRIPTION OF OPERATION 

4.1 General objective 

The  Czech  Republic's  participation  in  SAVE  II  will  assist  in  preparing  its  future 
accession to the Union, which was the aim set by the Copenhagen European Council of 
June  1993  and confirmed  by subsequent European  Councils.  Its participation will  not 
only contribute towards the implementation of the provisions relating to economic and 
technical  cooperation  in  the  Europe  Agreements  but  will  also  enable  the  Czech 
Republic  to  familiarize  itself  with  the  procedures  and  methods  used  in  Community 
programmes.  The "Agenda 2000" communication from the Commission  reiterates the 
importance  of  participating  in  Community  programmes  as  a  key  feature  of  a  re 
inforced pre-accession strategy. 

The decision-making process for the opening-up of programmes involves a decision by 
the Association  Council  between  the Union and the associated  country.  This  decision 
also  lays  down  the  practical  conditions  and  arrangements  for  participating  in  the 
programmes. 

<

&• 

The  Additional  Protocol  with  the  Czech  Republic  entered  into  force  on  1 February 
1996 and provides for the Czech Republic's participation in Community programmes, 
notably in the field of energy. 

SAVE II is one  of a number of  programmes opening  up for the  countries  of Central 
and Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For the duration of  SAVE H, i.e.  until  31  December  2000.  The Phare contribution, 
however, is dependent on decisions taken as regards the budget'after 1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved: 

Since  the  first  paragraph  of  Article  3  of  the  Additional  Protocol  stipulates  that  the 
Czech Republic itself will meet the cost of its participation, it will be invited to transfer 
its  contribution  to  item  6091  of  the EUs  budget  receipts.  However,  as  the  second 
paragraph  of  Article  3  of  the  Additional  Protocol  states  that  the  Community  may 
supplement the Czech Republic's contribution, the Czech Republic will contribute only 
part from its  own  budget,  with the  remainder  being  charged  to  heading  B7-503.  A 
transfer from the relevant Phare appropriations  (heading  B7-500)  to  heading  B7-503 
will be made upon receipt of the Czech Republic contribution.' 

6.  TYPE OF EXPENDITURE  OR REVENUE  AND  DEGREEjOF-SUBVENTION 
FOR ACTIVITIES PROPOSED 

100% (maximum) subsidy will be allowed on total  eligible expenses  for the  following 
actions: 

-  for  studies,  information  dissemination  and  other  actions  aimed  at  the 
implementation  and  completion  of  Community  measures  such  as  voluntary 
agreements,  cooperative  procurements,  mandates  to  standardization  bodies, 
legislation, etc. taken to improve energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a view  to  establishing  energy  efficiency  as  a  criterion  within 
Community programmes. 

-  for measures proposed by the Commission to foster the exchange of experience 
aimed  at  promoting  better  coordination  between  international,  Community, 

& 

national,  regional  and  local  activities  by  appropriate  means  for  information 
dissemination. 

-  for  monitoring  of  energy  efficiency  progress  in  the  Community,  in  individual 
Member  States  and  in  the  Czech  Republic;  and  for  the  evaluation  and 
monitoring of actions and measures undertaken under the programme. 

For the  above  actions  with  100% subsidy,  the  Council  Decision  of  16 December 
1996 (96/73 7/EC) may in and of itself be considered a call for tender. 

50%  (maximum)  subsidy  on  total  eligible  expenses  will  be  allowed  for  joint 
financing  with other sources for the following actions: 

-  for  sectoral  targeted  pilot  actions  aimed  at  accelerating  energy  efficiency 
investment,  and/or improving  energy use  patterns including  specific  actions  in 
favour of energy  management  at the regional  and urban level  and in favour  of 
greater cohesion between Member States and the Czech Republic,  and regions 
thereof,  in the field of energy  efficiency. 

-  for  measures  proposed  to  promote  better ^coordination  of  activities  for 

information dissemination. 

-  for  measures,  proposed  otherwise  than  by  the  Commission,  to  foster  the 
exchange  of  experience  aimed  at  promoting  better  coordination  between 
international,  Community,  national,  regional  and local  activities by appropriate 
means for information dissemination. 

For the above actions,  activities  may be carried  out by organizations  or public and 
private  enterprises  as well  as by existing  Community-wide  networks  or temporary 
groupings of organizations and/or enterprises formed to accomplish the projects. 

For the above  actions with  50% subsidy,  a call  for tender will  be published  in the 
Official Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It  is understood  that all actions  undertaken will  have a clear and visible European 
dimension. 

As  far  as  revenue  is  concerned,  provision  for  the  Czech  Republic's  contribution  to 
cover  the  cost  of  its  participation  is  made  under  item  6091.  The  revenue  will  be 
allocated  to  the  items  for  expenditure  on  SAVE  II  and,  where  appropriate,  to  the 
relevant items of operating expenditure. 

The total revenue expected is given under item 7.2. 

c& 

7. FINANCIAL IMPACT 

7.1  Method of calculating total cost of operation for  1998, 1999 and 2000  financial 

years (link between individual costs and total cost). 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities referred to in 

the Protocol is calculated according to the principle that the country bears the cost 
of participation itself. Heading 6091 has been created in the statement of budget 
revenue for that purpose; 

the Community may decide on a case-by-case basis to pay a supplement to the 
- 
partner country's contribution. The supplement may be in the form of a contribution 
under the partner country's PHARE allocation. 

Based on the Additional Protocol with the Czech Republic, the financial and budgetary 
arrangements for  SAVE II are as follows: the costs have been calculated on the basis 
of various parameters inherent in the programme, i.e. GDP, population,  and total 
inland energy consumption 

The cost of the Czech Republic 's participation in SAVE II from 1998 will be 
ECU  386.280 per year. 

The  administrative costs shall be  be covered entirely from the Czech Republic's 
national budget. The Czech Republic shall pay 58% of the remaining cost of its 
participation from its national budget, and 42 % from its Phare annual programmes, 
subject to regular Phare programming procedures. 

7.2 Itemized breakdown of cost (in ecu) after the administrative costs have been 
deducted. 

" 

SAVE II 

1998 

1999 

2000 

Total 

360.000 

360.000 

360.000 

1.080.000 

of which 
the Czech 
Republic 
630.000 

of which 
Phare 

450.000 

7.3  Operational expenditure on special studies, expert meetings, etc., included in 

10.2. 

JQ 

7.4  Schedule for multiannual operations; amounts to be charged to item B7 503; 
indicative time schedule (year t =30%; year t+l=30%; year t+2=40%). 

Committed 
appropriations 
Disbursed 
appropriations 
1998 
1999 
2000 
Subsequent 
years 
Total 

1998 

1999 

2000 

Subsequent  TOTAL 

years 

150.000 

150.000 

150.000 

450.000 

45.000 
45.000 
60.000 

150.000 

45.000 
45.000 

45.000 

60.000 
150.000 

105.000 
150.000 

45.000 
90.000 
150.000 

165.000 
450.000 

The foreseeable annual receipts are as follows: 

Item  6091 

1998 

1999 

,  2000 

Total 

Operational 
part 
Administrative 
part 

210.000 

210.000 

210.000 

630.000 

26.280 

26.280 

26.280 

78.840 

Total 

236.280 

236.280 

236.280 

708.840 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES  TAKEN 

All the Commission's contracts, agreements and other legal commitments provide for 
on-the-spot checks by the Commission and Court of Auditors. Among-Other things, the 
beneficiaries of the operations are obliged to file reports and  finançialTStatements. 
These are analysed from the point of view of their content and the eligibility of the 
expenditure in line with the objective of Community  financing. 

The anti-fraud provisions of the basic budget headings apply to this heading too when 
adapted to the case of the countries of Central and Eastern Europe. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified objectives 

The aim of opening up SAVE II to the Czech Republic is to bring it the same benefits 
as the Member States of the Community already enjoy from this  programme. The 
essential aim of Community action on energy efficiency  should be to enable all 
participating countries to achieve in a cost-effective  manner a prudent and rational use 
of energy resources in all sectors, to reduce the negative impact of energy use on the 

if 

environment and to contribute to a better security of energy supply and to sustainable 
economic development. 

More specific strategies and aims of the  programme are: 

- to strengthen the energy efficiency  infrastructure in participating countries and to 
encourage investments in energy efficiency by private and public consumers and by 
industry. 

-to stabilize and reduce C02 emissions in accordance with Community goals 

-to  develop and pursue actions leading to the strengthening of Community 
economic and social cohesion, and in particular to reduce disparities between levels 
of development of the various regions, wherein  energy should be an integral part 
of that effort. 

- to complement other programmes for the use and promotion of new energy 
technologies. 

- to improve the energy intensity of final consumption by a further one percentage 
point per annum over that which would have been otherwise attained. 

- to support local energy management programmes. 

- to ensure that actions and projects are subject to thorough prior appraisal and 
systematic monitoring and evaluation. 

-to insure that directives on energy efficiency  such as those concerning labelling, 
minimum efficiency  standards, C02 reduction (93/76/EEC), etc. are implemented 
in accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial  aid 

Given severe budgetary constraints in the Czech Republic, and the importance of the 
participation in Community programmes, a part of the re-inforced pre-accession 
strategy, partial financing of the Czech Republic's financial contribution by means of its 
Phare allocation is required. 

-  Choice of ways and means 

The Czech Republic's integration in SAVE II will put it on a basis similar to the 
current EU Member States. The integration of Czech Republic nationals in Community 
networks will make a definite contribution to preparing the Czech Republic for future 
membership. 

^ 

-  Main factors  of uncertainty which could affect the specific results of the 

operation 

Since projects will be selected according to qualitative criteria, it will only be possible 
to measure the real impact on the basis of Czech Republic institutions' and  firms' 
capacity to respond to the calls for proposal for actions to be launched by the 
Commission under the programme as set out in Section 6 of this financial statement. 

9.3 Monitoring and evaluation of the operation 

The monitoring and evaluation procedures included in SAVE II (notably in respect of 
evaluation, as included in the Article 5, Paragraph 2 of the Decision establishing the 
programme) will also cover operations financed for Czech Republic beneficiaries.  This 
includes the submission by the selected beneficiaries of a report to the Commission on 
a six-monthly basis and on completion of the project.  As described in Article 6 of this 
document, certain monitoring and evaluation actions and measures are also eligible for 
programme subsidies. 

10. ADMINISTRATIVE  EXPENDITURE 

Actual  mobilisation  of the  necessary  administrative  resources  will depend  on  the 
Commission's  annual  decision  on  the  allocation  of resources,  taking  into  account  the 
number  of staff  and  additional  amounts  authorised  by the  budgetary  authority.  The 
supplementary  needs  can  not,  in  any  case,  préjuge  the  decision  that  the  Commission 
will need  to take  concerning: 
a) 
b)  the  resources  allocation 

the  request  of new posts  in  the  framework  of the  APB 

10.1  Overall  impact  on  the  number  of  posts,  calculated  on  the  basis  of 
participation  by  the  Czech  Republic 

Type  of  post 

Additional  staff  required  to 
manage  the  operation 
Permanent 
posts 

Temporary 
posts 

Officials 
A 
C 
Other  resources 

TOTAL 

0.08 
0.05 

0.13 

including 

duration 

* 

1998-
2 0 00 

1998-
2 0 00 

using  existing 
resources  of 
the 
departments 
concerned 

using 
additional 
resources 

0.08 
0.05 

0.13 

3 OS 

10.2  Increase  in  other  yearly  and  total  operating  expenses  as  a result  of 
participation  by  the  Czech  Republic  (in  ecu). 

Budget  heading  (No and title) 

Yearly 
expenses 

Total for 
1998 

Method  of  calculation 

Al  178/A23technical 
assistance 

A1300  missions 

A2500  meetings  with 
technical  committees 

16.780 
1.500 

3.500 

50.340 

4.500 

10.500 

Based on share  of total 
additional  cost  of  technical 
assistance. 
1  mission  per year. 

Participation by Czech 
Republic  representatives  in 
2  annual  meetings. 

A2510  compulsory  meetings 
with  SAVE  Committee 

4.500 

Participation  in an  average 
of  3 
meetings  per year. 

13.500 

Total 

26.280 

78.840 

! 
1 

i 

The above expenditure will be met from the receipts received from the Czech 
Republic's own financial contribution  to the Community programme. 

2/ 

Proposal for a 
COUNCIL DECISION 

of 

*}«/fc / 1& (c*J s) 

concerning the Community position within the Association Council 
on the participation of Lithuania in the multiannual Community programme for 
energy efficiency,  SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European  Community,  and  in particular 
Articles  13Or and  130s, paragraph  1, in conjunction  with Article 228, paragraph 3, 1st 
alinéa thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Europe  Agreement  establishing  an  association  between  the  European 
Communities  and their Member  States,  of the  one  part,  and  Lithuania,  of the  other 
part, has been signed on 12 June 1995, 

Whereas, according to Article 110 of the Europe Agreement, Lithuania may participate 
in Community framework programmes, specific programmes, projects or other actions 
including  those  in  the field of  energy,  as  laid  down  in  Annex  XX,  the  terms  and 
conditions for the participation of Lithuania in the activities referred  to in Article 110 
shall be decided by the Association Council, 

Whereas  Council  Decision  (96/73 7/EC)1  of  16  December  1996  establishing  a 
multiannual programme for the promotion of energy efficiency  in the Community and 
in  particular  Article  10 thereof  provides  that  this  programme  shall  be  open  to  the 
participation  of  associated  Central  European  countries  in  accordance  with  the 
conditions  set  out  in  the  Association  Agreements  on  participation  in  Community 
programmes-. 

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established 
by  the  Europe  Agreement  between  the  European  Communities  and  their  Member 
States, of the one part, and Lithuania, of the other part, concerning the participation of 
Lithuania in the Community programme for energy efficiency,  SAVE II, is the attached 
draft  decision of the Association Council. 

Done at Brussels 

For the Council 

O.J.N° L 335/50 of 24.12.1996 

3A 

Draft Decision n° 

/98 of the Association Council between the European 

Communities and their Member States, of the one part, and Lithuania, of the 

adopting the terms and conditions for the participation of Lithuania in the 
Community programme for energy efficiency,  SAVE H 

other part of 

1998 

THE ASSOCIATION COUNCIL, 

Having regard to the Europe Agreement between the European Communities and their 
Member  States,  of  the  one  part,  and  Lithuania,  of  the  other  part,  concerning 
Lithuania's  participation  in  Community  programmes,  and  in  particular  Article  110 
thereof; 

Whereas  according  to  Article  110  of  the  said  Europe  Agreement,  Lithuania  may 
participate  in  Community framework programmes,  specific  programmes,  projects  or 
other actions including those in the field of energy; 

the  terms  and 
Whereas  according  to  Article  110  of  the  said  Europe  Agreement 
conditions for the participation of Lithuania in the activities referred  to in Article 110 
are to be decided by the Association Council, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Lithuania shall participate in the European Community programme SAVE II according 
to the terms and conditions set out in Annexes I and II which  shall  form  an integral 
part of this Decision. 

This Decision shall apply for the duration of the SAVE II programme 

Article 2 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

2? 

ANNEX I 

Terms and conditions for the participation  of Lithuania 
in the multiannual Community  programme for energy efficiency,  SAVE H 

1. 

2. 

Lithuania will participate in all actions of the multiannual  Community  programme 
for  energy  efficiency,  SAVE  II  (hereinafter  called  "SAVE  H")  in  conformity, 
unless  otherwise  provided  in  this  Decision,  with  the  objectives,  criteria, 
procedures  and  time  limits  laid  down  in  Council  Decision  (96/73 7/EC) 
establishing  a  five-year  programme  for  the  preparation  and  implementation  of 
measures  and  actions  in  a  cost-effective  manner  in  order  to  promote  energy 
efficiency  within the Community. 

The  terms  and  conditions  for  the  submission,  assessment  and  selection  of 
applications  related  to  eligible  institutions,  organizations  and  individuals  of 
Lithuania  will  be  the  same  as  those  applicable  to  eligible 
institutions, 
organisations  and  individuals  of  the  Community,  set  within  the  limits  of  the 
financial  contribution  of Lithuania less administrative costs as provided  in Annex 
n. 

3.  Where applicable, to ensure the Community dimension of SAVE II, transnational 
projects  and  activities  proposed  by  Lithuania  will  be  required  to  include  a 
minimum  number  of  partners from the  Member  States  of  the  Community.  This 
minimum  number  will  be  decided  in  the  framework  of  the  implementation  of 
SAVE H, taking  into  account  the nature  of the various  activities,  the  number  of 
partners  in  a  given  project,  and  the  number  of  countries  participating  in  the 
activity. 

4. 

5. 

6. 

Lithuania  will  take  all  necessary  steps  to  ensure  national  coordination  and 
organisation of participation in SAVE  H 

Lithuania will pay each year a contribution to the general-budgeTof the European 
Communities to  cover the costs resulting from its participation  in  SAVE  II  (see 
Annex H). 

The  Association  Committee  is  entitled  to  adapt  this  contribution  whenever 
necessary. 

The  Member  States  of  the  Community  and  Lithuania  will  make  every  effort, 
within the framework of existing provisions,  to  facilitate  the free movement  and 
residence  of  persons  moving  between  Lithuania  and  the  Member  States  of  the 
Community for the purpose of participating in activities covered by this Decision. 

7.  Without  prejudice  to  the  responsibilities  of  the  Commission  and  the  Court  of 
Auditors  of  the  European  Communities  in  relation  to  the  monitoring  and 
evaluation  of SAVE II  pursuant  to  Article  5 of the Council  Decision  on  SAVE 
II,  the  participation  of  Lithuania  in  the  programme  will  be  continuously 

3V 

monitored on a partnership basis involving Lithuania and the Commission  of the 
European  Communities.  Lithuania  will  submit  the  necessary  reports  to  the 
Commission and take part in other specific activities set out by the Community in 
that context. 

8.  Without  prejudice  to  the  procedures  referred  to  in  Articles  4  and  5  of  the 
Decision on SAVE II, Lithuania will be invited to coordination  meetings on any 
question  concerning  the  implementation  of  this  Decision  prior  to  the  regular 
meetings of the SAVE Committee. The Commission will inform Lithuania about 
the results of such regular meetings. 

9. 

The language to be used as regards the application process, contracts, reports to 
be submitted and other administrative arrangements for the SAVE II programme, 
will be one of the official  languages of the Community. 

2r 

ANNEX II 

Financial  Contribution of Lithuania to 
SAVEH 

1.  The financial contribution of Lithuania will cover: 

subsidies  or any other financial support from the programme  to Lithuanian 
participants, 
supplementary  administrative  costs  related  to  the  management  of  the 
programme  by  the  Commission  of  the  European  Communities  stemming 
from  Lithuania's participation. 

2.  For every financial year, the aggregated  amount of subsidies or any other financial 
support  received from the programme by Lithuanian beneficiaries  will  not  exceed 
the  contribution  paid  by  Lithuania,  after  deduction  of  the  supplementary 
administrative costs. 

Should the contribution  paid by Lithuania to  the^general  budget  of the European 
Communities, after deduction of the supplementary administrative costs, be higher 
than the aggregated  amount of the subsidies or other financial support received by 
the Lithuanian beneficiaries from the programme, the Commission will transfer the 
balance to the next budgetary exercise, and it will be deducted from the  following 
year's contribution.  Should  such a balance be left  when the  programme  comes  to 
an end, the corresponding amount will be reimbursed to Lithuania. 

3.  Lithuania's annual contribution will be of 96,570 ECU from 1998. From this sum, 
an amount of 6.570  ECU will cover supplementary administrative costs related to 
the management of the programme by the Commission stemming from Lithuania's 
participation. 

4.  The  financial  regulation  applicable  to  the  general  budget  of  the  European 
Communities  will  apply,  notably  to  the  management  of  the  contribution  of 
Lithuania. 

Upon the  entry into force  of this Decision  and at the beginning  of  each year, the 
Commission  will  send  to  Lithuania  a  call  for  funds  corresponding  to  its 
contribution to the costs under this Decision. 

This contribution  will  be expressed  in ecus  and paid  into  an ecu  bank  account  of 
the Commission. 

Lithuania  will  pay  its  contribution  to  the  annual  costs  under  this  Decision 
according to the call for funds and at the latest three months after the call for funds 
is sent. Any delay in the payment of the contribution shall give rise to the payment 
of interest by Lithuania on the outstanding amount from the due date. The interest 
rate corresponds to the rate applied by the European Monetary  Cooperation Fund 

3C 

for  the  month  of  the  due  date,  for  its  operations  in  ecus1,  increased  by  1,5 
percentage points. 

5.  Lithuania will pay the  supplementary  administrative  costs  referred  to  in paragraph 

3 from its national budget. 

6.  Lithuania will pay  10% (1998), 30% (1999) and 50% (2000)  of the remaining cost 

of its participation in SAVE II from its national budget. 

Subject  to  regular  Phare  programming  procedures,  the  remaining  90%  (1998), 
70%  (1999)  and  50%  (2000)  will  be  paid  from  Lithuania's  annual  Phare 
allocation. 

Rate published monthly in the Official Journal of the European Communities - C series 

21-

FINANCIAL  STATEMENT 

1. TITLE OF OPERATION 

Opening of the SAVE II Programme to Lithuania. 

2. BUDGET HEADING INVOLVED 

B7-503  -  Opening of  Community  Programmes  to  the associated  countries  of  Central and 
Eastern Europe 

3. LEGAL BASIS 

Treaty establishing the European Community, and in particular Articles  13 Or and 130s, 
paragraph 1, in conjunction with Article 228, paragraph 3, 1st alineathereof, 

The  Europe  Agreement  with  Lithuania  (Article  110)  signed  on  12  June  1995, 
providing for the opening-up of Community programmes and 

Council Decision  (96/737/EC)  establishing  a five-year programme for the  preparation 
and  implementation  of  measures  and  actions  in  a  cost-effective  manner  in  order  to 
promote  energy  efficiency  within  the  Community,  and  Article  10  thereof  which 
provides that this programme  shall  be open to  the  participation  of  associated  Central 
European  countries  in  accordance  with  the  conditions  set  out  in  the  Association 
Agreements on participation in Community programmes. 

4. DESCRIPTION OF OPERATION 

4.1 General objective 

Lithuania's participation in SAVE II will assist in preparing its future  accession to the 
Union, which was the aim set by the Copenhagen European Council of June  1993 and 
confirmed  by subsequent European Councils. Its participation will  not  only  contribute 
towards  the  implementation  of  the  provisions  relating  to  economic  and  technical 
cooperation  in  the  Europe  Agreements  but  will  also  enable  Lithuania  to  familiarize 
itself with the procedures and methods used in Community programmes. The "Agenda 
2000" communication from the Commission  reiterates the importance  of participating 
in Community programmes as a key feature of a re-inforced pre-accession strategy. 

The decision-making process for the opening-up of programmes involves a decision by 
the Association  Council  between the Union and the associated  country.  This  decision 

3f 

also  lays  down  the  practical  conditions  and  arrangements  for  participating  in  the 
programmes. 

and provides 
The Europe  Agreement  with Lithuania entered  into force  on 
for Lithuania's participation in Community programmes, notably in the field of energy. 

SAVE II is  one of a number of programmes opening up for  the countries of Central 
and Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For the  duration of  SAVE n,  i.e.  until  31  December  2000.  The Phare contribution, 
however, is dependent on decisions taken as regards the budget after  1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved: 

Since  the  first  paragraph  of  Article  3  of  the  Additional  Protocol  stipulates  that 
Lithuania  itself will  meet  the  cost  of  its participation,  it will  be  invited  to  transfer  its 
contribution  to  item  6091  of  the  EU's  budget  receipts.  However,  as 
the  second 
paragraph  of  Article  3  of  the  Additional  Protocol  states  that  the  Community  may 
supplement Lithuania's  contribution,  Lithuania will  contribute  only part from its  own 
budget,  with  the  remainder  being  charged  to  heading  B7-503.  A  transfer from the 
relevant Phare appropriations (heading B7-500) to heading B7-503  will be made upon 
receipt of Lithuania contribution. 

6. TYPE OF EXPENDITURE OR REVENUE AND DEGREE OF SUBVENTION 
FOR ACTIVITIES PROPOSED 

100% (maximum) subsidy will be allowed  on total  eligible expenses  for the  following 
actions: 

-  for  studies,  information  dissemination  and  other  actions  aimed  at  the 
implementation  and  completion  of  Community  measures  such  as  voluntary 
agreements,  cooperative  procurements,  mandates  to  standardization  bodies, 
legislation, etc. taken to improve energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a view  to  establishing  energy  efficiency  as  a criterion  within 
Community programmes. 

39 

- 

for measures proposed by the Commission to foster the exchange of experience 
aimed  at  promoting  better  coordination  between  international,  Community, 
national,  regional  and  local  activities  by  appropriate  means  for  information 
dissemination. 

-  for  monitoring  of  energy  efficiency  progress  in  the  Community,  in  individual 
Member  States  and  in  Lithuania;  and  for  the  evaluation  and  monitoring  of 
actions and measures undertaken under the programme. 

For the  above  actions  with  100% subsidy,  the  Council  Decision  of  16  December 
1996 (96/737/EC) may in and of itself be considered a call for tender. 

50%  (maximum)  subsidy  on  total  eligible  expenses  will  be  allowed  for  joint 
financing  with other sources for the following actions: 

-  for  sectoral  targeted  pilot  actions  aimed  at  accelerating  energy  efficiency 
investment,  and/or improving  energy use patterns including  specific  actions in 
favour of energy management  at the regional  and urban level  and in favour  of 
greater cohesion between Member States and Lithuania, and regions thereof, in 
the field of energy efficiency. 

-  for  measures  proposed  to  promote  better  coordination  of  activities  for 

information dissemination. 

-  for  measures,  proposed  otherwise  than  by  the  Commission,  to  foster  the 
exchange  of  experience  aimed  at  promoting  better  coordination  between 
international,  Community,  national,  regional  and local  activities  by appropriate 
means for information dissemination. 

For the above actions,  activities may be carried out by organizations  or public and 
private enterprises as well  as by existing  Community-wide  networks  or temporary 
groupings of organizations and/or enterprises formed to accomplish the projects. 

For the above  actions with  50% subsidy,  a call for tender will  be published  in the 
Official Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It is understood  that all actions undertaken will  have  a clear  and visible European 
dimension. 

As far as revenue is concerned, provision for Lithuania's contribution to cover the cost 
of its participation is made under item 6091. The revenue will be allocated to the items 
for expenditure on SAVE II and, where appropriate, to the relevant items of operating 
expenditure. 

The total revenue expected is given under item 7.2. 

7. FINANCIAL IMPACT 

7.1  Method of calculating total cost of operation for  1998,  1999  and 2000  financial 

years (link between individual costs and total cost) 

The calculation is based on the following preconditions: 

-  each partner country's contribution  to  the  financing  of the  activities  referred  to  in 
the Protocol is calculated according to the principle that the country bears the cost 
of  participation  itself.  Heading  6091  has  been  created  in the  statement  of  budget 
revenue for that purpose; 

-  the  Community  may  decide  on  a  case-by-case  basis  to  pay  a  supplement  to  the 
partner country's contribution. The supplement may be in the form of a contribution 
under the partner country's PHARE allocation. 

Based  on  the  Europe  Agreement  with  Lithuania,  the  financial  and  budgetary 
arrangements for  SAVE II are as follows: the costs  have been calculated  on the basis 
of  various  parameters  inherent  in  the  programme,  i.Ts.  GDP,  population,  and  total 
inland energy consumption. 

The cost  of Lithuania's participation  in SAVE II from 1998  will  be ECU  96.570  per 
year. 

The  administrative  costs  shall  be  covered  entirely from Lithuania's  national  budget. 
Lithuania shall pay  10% (1998), 30% (1999) and 50% (2000) of the remaining cost  of 
its  participation from its  national  budget,  and  90%  (1998),  70%  (1999)  and  50% 
(2000)  from  its  Phare  annual  programmes,  subject  to  regular  Phare  programming 
procedures. 

7.2 

Itemized  breakdown  of  cost  (in  ecu)  after  the  administrative :costs  have  been 
deducted 

—  — 

SAVE II 
Programme 

1998 

1999 

2000 

Total 

90.000 

90.000 

90.000 

270.000 

of which 
Lithuania 
81.000 

of which 
Phare 
189.000 

7.3  Operational  expenditure  on  studies,  expert  meetings,  etc.,  included  in  Section 

10.2. 

7.4  Schedule  for  multiannual  operations  amounts  to  be  charged  to  item  B7  503; 
indicative time schedule (year t =30%; year t+l=30%; year t+2==:40%). 

Q-f 

Committed 
appropriations 
Disbursed 
appropriations 

1998 
1999 
2000 
Subsequent 
years 
Total 

1998 

1999 

2000 

81.000 

63.000 

45.000 

Subsequent, 
years 
0 

TOTAL 

189.000 

24.300 
24.300 
32.400 

18.900 
18.900 
25.200 

13.500 
31.500 

81.000 

63.000 

45.000 

24.300 
43.200 
64.800 
56.700 

189.000 

The foreseeable annual receipts are as follows: 

Item  6091 

1998 

1999 

2000 

TOTAL 

9.000 

6.570 

Operational 
part 
Administrative 
part 
Total 

27.000 

45.000 

81.000 

6.570 

6.570 

V 
51.570 

19.710 

100.710 

15.570 

33.570 

8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

All the Commission's  contracts,  agreements  and other legal  commitments  provide  for 
on-the-spot checks by the Commission and Court of Auditors. Among other things, the 
beneficiaries  of  the  operations  are  obliged  to  file  reports  and financial statements. 
These  are  analysed from the  point  of  view  of  their  content  and the  eligibility  of the 
expenditure in line with the objective of Community  financing. 

The anti-fraud provisions of the basic budget headings apply to this heading too when 
adapted to the case of the countries of Central and Eastern Europe^--—-

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified objectives 

The  aim  of  opening  up  SAVE  II to  Lithuania  is  to  bring  it the  same  benefits  as the 
Member  States of the  Community  already enjoy from this  programme.  The essential 
aim of  Community  action  on  energy  efficiency  should  be  to  enable  all  participating 
countries  to  achieve  in a cost-effective  manner  a  prudent  and  rational  use  of  energy 
resources  in  all  sectors,  to  reduce  the  negative  impact  of  energy  use  on  the 
environment and to contribute to  a better security of energy supply and to  sustainable 
economic development. 

More specific strategies and aims of the  programme are: 

QA 

- 

- 

- 

- 

- 

- 

- 

- 

infrastructure  in  participating  countries 
to  strengthen  the  energy  efficiency 
and  to  encourage  investments  in  energy  efficiency  by  private  and  public 
consumers and by industry. 

to stabilize and reduce C02 emissions in accordance with Community goals. 

to  develop  and  pursue  actions  leading  to  the  strengthening  of  Community 
economic and social cohesion, and in particular  to reduce disparities between 
levels  of  development  of  the various  regions,  wherein  energy  should  be an 
integral part of that effort. 

to  complement  other programmes for the use  and promotion  of  new  energy 
technologies. 

to  improve  the  energy  intensity  of  final  consumption  by  a  further  one 
percentage  point  per  annum  over  that  which  would  have  been  otherwise 
attained. 

to support local energy management programmes. 

to ensure that actions and projects are subject to thorough prior appraisal and 
systematic monitoring and evaluation. 

to  insure  that  directives  on  energy  efficiency  such  as  those  concerning 
labeling,  minimum efficiency  standards, C02  reduction (93/76/EEC),  etc.  are 
implemented in accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial  aid 

Given  severe  budgetary  constraints  in  Lithuania,  and  the " importance  of  the 
participation  in  Community  programmes  a  part  of  the  rej^nforeed-, pre-accession 
strategy,  partial financing of Lithuania's financial contribution  by  means  of  its Phare 
allocation is required. 

-  Choice of ways and means 

Lithuania's  integration  in  SAVE  II  will  put  it  on  a  basis  similar  to  the  current  EU 
Member  States.  The  integration  of  Lithuanian  nationals  in  Community  networks  will 
make a definite contribution to preparing Lithuania for future membership. 

-  Main factors  of uncertainty which could affect the specific results of the 
operation 

Since projects will be selected  according to qualitative criteria, it will  only be possible 
to measure the real impact on the basis of Lithuanian institutions' and firms' capacity to 
respond to the calls for proposal  for actions to be launched  by the  Commission  under 
the programme as set out in Section 6 of this financial statement. 

V? 

9.3 Monitoring and evaluation of the operation 

The monitoring and evaluation procedures included in SAVE II (notably in respect  of 
evaluation,  as included  in the  Article  5,  Paragraph  2  of the Decision  establishing  the 
programme)  will  also  cover  operations  financed  for  Lithuanian  beneficiaries.  This 
includes the submission by the selected beneficiaries  of a report to the Commission on 
a six-monthly basis and on completion of the project. As described in Article 6 of this 
document, certain monitoring and evaluation actions and measures are also eligible for 
programme subsidies. 

10. ADMINISTRATIVE EXPENDITURE 

Actual mobilisation of the necessary  administrative  resources will  depend  on the  Commission's 
annual  decision  on  the  allocation  of  resources,  taking  into  account  the  number  of  staff  and 
additional  amounts authorised by the budgetary authority. The supplementary  needs can not, in 
any case, prejudge the decision that the Commission will need to take concerning: 

a)  the request of new posts in the framework of the APB 
b)  the resources allocation 

10.1  Overall  impact  on  the  number  of  posts,  calculated  on  the  basis  of  participation  by 
Lithuania. 

Type of post 

Officials 
A 
C 

Other resources 

Additional  staff  required to 
manage the operation 
Permanent 
posts 

Temporary 
posts 

including 

duration 

using existing 
resources of the 
departments 
concerned 

using 
additional 
resources 

0,02 
0,01 

0,02 
0,01 

•

:

•

•— 

1998-2000 

* 

1998-2000 

TOTAL 

0,03 

0,03 

l+if. 

10.2 Increase in other yearly and total operating expenses as a result of participation by 
Lithuania (in ecu). 

Budget heading (No and title) 

A1178/A23 technical assistance 

A1300 missions 
A2500 meetings with technical 
committees 

A2510 compulsory meetings with 
SAVE Committee 
Total 

Yearly 
expenses 

Total for 
1998-2000 

Method of calculation 

2.770 

500 
1.800 

1.500 

6.570 

8.310 

.  1.500 
5.400 

Based on share of total additional 
cost of technical assistance. 
1 mission per year. 
Participation by Lithuanian 
'representatives in lannual 
meeting. 

4.500 

Participation in an average of 1 
meeting per year. 

19.710 

The above expenditure will be met from the receipts received from Lithuania's own 
financial  contribution to the Community programme. 

4*/ 

Proposal for a 
COUNCIL DECISION 

of 

/ 

r 

9<f/0/«£.3  U ^ /S 

concerning the Community position within the Association Council 
on the participation of Poland in the multiannual Community programme for 
energy efficiency,  SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  13 Or and  130s,  paragraph 1,  in  conjunction  with  Article  228,  paragraph  3,  1st 
alinéa thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an  association 
between the European Communities and their Member States, of the one part, and Poland 
of the other part, has been concluded by decision of the Council and the Commission of 4 
december 1995, 

Whereas,  according  to  Article  1 of  the  Additional  Protocol,  Poland  may  participate  in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy and pursuant to Article 2, the terms and conditions 
for the participation of Poland in the activities referred  to in Article  1 shall be decided by 
the Association Council, 

Whereas Council Decision (96/737/EC)1 of 16 December  1996 establishing a multiannual 
programme  for  the  promotion  of  energy  efficiency  in the  Community_.and  in  particular 
Article  10 thereof,  provides  that  this  programme  shall  be  open  to_ the-participation  of 
associated  Central European  countries  in accordance  with the~uon"ditiôns set  out  in the 
Association Agreements on participation in Community programmes 

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established by 
the Europe Agreement between the European  Communities and their Member States, of 
the one part, and Poland, of the other part, concerning the participation  of Poland in the 
Community programme for energy efficiency,  SAVE II, is the attached  draft  decision of 
the Association Council. 
Done at Brussels 

For the Council 

1  O.J.N° L 335/50 of 24.12.1996 

Draft Decision n°..../98 of the Association Council between the European 
Communities and their Member States, of the one part, and Poland, of the other 

part of 

1998 

adopting the terms and conditions for the participation of Poland in the Community 
programme for energy efficiency, SAVE H 

THE ASSOCIATION COUNCIL 

Having regard  to  the Europe  Agreement  between  the European  Communities  and their 
Member States, of the one part, and Poland, of the other part1 

Having  regard  to  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an 
association between the European Communities and their Member States, of the one part, 
and  Poland,  of  the  other  part  concerning  Poland*s  participation  in  Community 
programmes, and in particular Articles 1  and 2 thereof2; 

Whereas according to Article 1  of the said Additional Protocol, Poland may participate in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy; 

Whereas according to Article 2 of the said Additional Protocol the terms and conditions 
for the participation of Poland in the activities referred to;in Article 1  are to be decided by 
the Association Council, 

». 

HAS DECIDED AS FOLLOWS: 

Article 1 

Poland  shall participate  in the European  Community  programme  SAVE II  according  to 
the terms and conditions set out in Annexes I and II which shall form  an integral part of 
this Decision. 

Article 2 

This Decision shall apply for the duration of the SAVE II programme. 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

1  O.J. N°L 348 of 31.12.1993 

2  O.J. N°L 317 of 30.12.1995 

C^ 

Terms and conditions for the participation  of Poland 
in the multiannual  Community  programme for energy efficiency,  SAVE H 

Annex I 

1.  Poland  will  participate  in  all  actions  of  the  multiannual  Community  programme  for 
energy efficiency,  SAVE II (hereinafter called "SAVE H") in conformity,  unless otherwise 
provided  in  this  Decision,  with  the  objectives,  criteria,  procedures  and  time  limits  laid 
down  in  Council  Decision  (96/73 7/EC)  establishing  a  five-year  programme  for  the 
preparation  and  implementation  of  measures  and  actions  in  a  cost-effective  manner  in 
order to promote energy efficiency within the Community. 

2.  The terms and conditions  for the submission,  assessment  and selection  of  applications 
related to eligible institutions, organizations and individuals of Poland will be the same as 
those  applicable  to  eligible  institutions,  organisations  and individuals  of  the  Community, 
set  within  the  limits  of  the financial contribution  of  Poland  less  administrative  costs  as 
provided in Annex EL 

3.  Where  applicable,  to  ensure  the  Community  dimension  of  SAVE  II,  transnational 
projects and activities proposed by Poland will be required to include a minimum number 
of  partners from the  Member  States  of  the  Community.  This  minimum  number  will  be 
decided  in the framework of  the  implementation  of  SAVE  H,  taking  into  account  the 
nature of the various activities, the number of partners in a given project,  and the number 
of countries participating in the activity. 

4. Poland will take all necessary steps to ensure national coordination and organisation  of 
participation in SAVE II. 

5.  Poland  will  pay  each  year  a  contribution  to  the  general  budget  of  the  European 
Communities to cover the costs resulting from its participation in SAVE II (see Annex II). 

The Association Committee is entitled to adapt this contribution whenever necessary. 

6.  The Member  States  of the  Community  and Poland  will  make_every~effort,  within  the 
framework  of existing provisions, to facilitate the free movement and residence of persons 
moving  between  Poland  and  the  Member  States  of  the  Community  for  the  purpose  of 
participating in activities covered by this Decision. 

7. Without prejudice to the responsibilities of the Commission and the Community's Court 
of Auditors of the European Communities in relation to the monitoring and evaluation  of 
SAVE II pursuant to Article  5 of the Council Decision  on SAVE II, the participation  of 
Poland in the programme will be continuously monitored  on a partnership basis involving 
Poland  and  the  Commission  of  the  European  Communities.  Poland  will  submit  the 
necessary  reports to  the Commission  and take  part in other  specific  activities  set  out by 
the "Community in that context. 

Q>? 

8. Without prejudice to the procedures referred to in Articles 4  and 5 of the Decision on 
SAVE H, Poland will be invited to coordination meetings on any question concerning the 
implementation  of this Decision  prior to  the  regular  meetings  of the  SAVE  Committee. 
The Commission wll inform Poland about the results of such regular meetings. 

9.  The  language  to  be  used  as  regards  the  application  process,  contracts,  reports  to  be 
submitted and other administrative arrangements for the SAVE II programme, will be one 
of the official  languages of the Community. 

49 

ANNEX II 

FINANCIAL CONTRIBUTION OF POLAND TO 
SAVEH 

1.  The financial contribution of Poland will cover: 

-subsidies or any other financial support from the programme to Polish participants, 

-supplementary administrative costs related to the management of the programme 
by the Commission of the European Communities stemming from Poland's 
participation. 

2.  For  every financial year,  the  aggregated  amount  of  subsidies  or  any  other  financial 
support  received  from  the  programme  by  Polish  beneficiaries  will  not  exceed  the 
contribution  paid  by  Poland,  after  deduction  of  the  supplementary  administrative 
costs. 

Should  the  contribution  paid  by  Poland  to  the  general  budget  of  the  European 
Communities,  after  deduction  of  the  supplementary  administrative  costs,  be  higher 
than the aggregated amount of the subsidies or other financial support received by the 
Polish beneficiaries from the programme, the Commission will transfer the balance to 
the  next  budgetary  exercise,  and  it  will  be  deducted  from  the  following  year's 
contribution. Should such a balance be left when the programme comes to an end, the 
corresponding amount will be reimbursed to Poland. 

3.  Poland's annual contribution will be of 1  081 584 ECU from 1998. From this sum, an 
amount of 73 584 ECU will cover  supplementary  administrative  costs related to  the 
management  of  the  programme  by  the  Commission  stemming  from  Poland's 
participation. 

4.  The  financial  regulation  applicable  to  the  general  budget  of  the  European 
Communities will apply, notably to the management of the contribution of Poland. 

Upon  the  entry  into  force  of  this  Decision  and  at  the  beginning  of  each  year,  the 
Commission will send to Poland  a call for  funds  corresponding to  its contribution to 
the costs under this Decision. 

This contribution will be expressed in ecus and paid into an ecu bank account  of the 
Commission. 

r* 

Poland will  pay its contribution to the annual costs under this Decision according  to 
the call  for  funds  and at the latest  three months after  the call  for  funds  is  sent.  Any 
delay in the payment of the contribution  shall give rise to  the payment  of interest by 
Poland on the outstanding amount from the due date. The interest rate corresponds to 
the rate applied by the European Monetary  Cooperation  Fund  for  the month  of the 
due date, for its operations in ecus1, increased by 1,5 percentage points. 

5.  Poland  will  pay  the  supplementary  administrative  costs  referred  to  in  paragraph  3 

from  its national budget. 

6 

^oland will pay 3% (1998),  13% (1999) and 23% (2000) of the remaining cost of its 
participation in SAVE II from its national budget. 

Subject to  regular Phare programming procedures,  the remaining 97% (1998),  87% 
(1999) and 77% (2000)  will be paid from Polands's annual Phare allocation. 

1  Rate published monthly in the Official Journal of the European Communities - C series 

Si 

FINANCIAL STATEMENT 

1. TITLE OF OPERATION 

Participation of Poland in SAVE II 

2. BUDGET HEADING INVOLVED 

B7-503 - Opening of Community Programmes to the associated countries of Central and Eastern 
Europe 

3. LEGAL BASIS 

Treaty  establishing the European  Community,  and  in particular  Articles  13 Or and  130s, 
paragraph  1,, 
in conjuntion with Article228, paragraph 3, 1st alinéa thereof, 

The Additional Protocol to the Europe Agreement with Poland (Articles 228 and 238) of 
17 July  1995, providing for the opening-up of Community programmes (OJ No L 317 of 
30.12.1995) and 

Council Decision (96/73 7/EC) establishing a five-year programme for the preparation and 
implementation  of measures and  actions in a cost-effective  manner  in order  to  promote 
energy efficiency  within the Community, and Article  10 thereof, which provides that this 
programme shall be open to the participation of associated  Central European countries in 
accordance with the conditions set out in the Association Agreements on participation in 
Community programmes. 

4. DESCRIPTION OF OPERATION: 

4.1 General objective 

Poland's  participation  in  SAVE  II  will  assist  in  preparing  its  future  accession  to  the 
Union, which was the aim set by the  Copenhagen  European  Council  of June  1993 and 
confirmed  by  subsequent  European  Councils.  Its  participation  will  not  only  contribute 
towards  the  implementation  of  the  provisions  relating  to  economic  and  technical 
cooperation in the Europe Agreements but will also enable Poland to familiarize itself with 
the  procedures  and  methods  used  in  Community  programmes.  The  "Agenda  2000" 
communication  from  the  Commission  reiterates  the  importance  of  participating  in 
Community programmes as a key feature of a re-inforced pre-accession strategy. 

The decision-making process for the opening-up of programmes involves a decision by the 
Association Council between the Union and the associated country. This decision also lays 
down the practical conditions and arrangements for participating in the programmes. 

The Additional Protocol with Poland entered into force on 1 March 1997 and provides for 
Poland's participation in Community programmes, notably in the field of energy. 

sx 

SAVE n  is one of a number of programmes opening up for the countries of Central and 
Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For  the  duration  of  SAVE  H,  i.e.  until  31  December  2000.  The  Phare  contribution, 
however, is dependent on decisions as regards the budget after 1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved: 

Since the first paragraph  of  Article  3  of the Additional  Protocol  stipulates  that  Poland 
itself will meet the cost of its participation, it will be invited to transfer  its contribution to 
item 6091 of the ELPs budget receipts. However, as  the second paragraph of Article 3 of 
the Additional Protocol states that the Community may supplement Poland's contribution, 
Poland will contribute only part from its own budget, with the remainder being charged to 
heading B7-503. A transfer from the relevant Phare appropriations  (heading B7-500) to 
B7-503 will be made upon receipt of the Polish contribution. 

6. TYPE OF EXPENDITURE OR REVENUE AND DEGREE OF SUBVENTION 
FOR ACTIVITIES PROPOSED 

100%  (maximum)  subsidy  will  be  allowed  on  total  eligible  expenses  for  the  following 

actions: 

- for studies, information  dessemination and other actions aimed at tteimplementation 
and  completion  of  Community  measures  such  as voluntary  agreements; cooperative 
procurements,  mandates to  standardization  bodies, legislation,  etc.  taken  to  improve 
energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a  view  to  establishing  energy  efficiency  as  a  criterion  within 
Community programmes. 

- for measures proposed by the Commission to foster the exchange of experiece aimed 
at promoting better coordination between international, Community, national, regional 
and local activities by appropriate means for information dissemination. 

-  for monitoring of energy efficiency  progress in the Community, in indivdual Member 
States  and in Poland  and for,the  evaluation  and  monitoring  of actions  and  measures 
undertaken under the programme. 

S3 

For the  above actions with  100% subsidy,  the council  decision  of  16 december  1996 
(96/73 7/EC) may in and of itself be considered a call for tender. 

50% (maximum) subsidy on total  eligible expenses  will  be allowed  for joint  financing 
with other sources for the following actions: 

-  for sectoral targeted pilot actions aimed at accelerating energy efficiency  investment, 
and/or  improving  energy  use  patterns  including  specific  actions  in  favour  of  energy 
management at the regional and urban level and in favour of greater cohesion between 
Member States and Poland and regions thereof in the field of energy  efficiency. 

for measures proposed to  promote better coordination of activities for  information 

- 
dissemination. 

- for measures, proposed otherwise than by the Commission, to foster the exchange  of 
experience aimed at promoting better coordination between international,  Community, 
national,  regional  and 
information 
dissemination. 

local  activities  by  appropriate  means  for 

For  the  above  actions,  activities  may  be  carried  out  by  organizations  or  public  and 
private  enterprises  as  well  as  by  existing  Community-wide  networks  or  temporary 
groupings of organizations and/or enterprises formed to accomplish the projects. 

For  the  above  actions  with  50%  subsidy,  a  call  for  tender  will  be  published  in  the 
Official  Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It  is  understood  that  all  actions  undertaken  will  have  a  clear  and  visible  European 
dimension. 

As far as revenue is concerned, provision for Poland's contribution to cover the cost of its 
participation  is  made under  item  6091.  The  revenue  will be  aHocateil  to  the  items  for 
expenditure  on  SAVE  II  and,  where  appropriate,  to  the  relevant  items  of  operating 
expenditure. 

The total revenue expected is given under item 7.2. 

Xv 

7. FINANCIAL IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  for  1998,  1999  and  2000  financial 

years (link between individual costs and total cost) 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities referred  to in the 
Protocol  is  calculated  according  to  the  principle  that  the  country  bears  the  cost  of 
participation itself. Heading 6091 has been created in the statement of budget revenue 
for that purpose; 

- 
the Community may decide on a case-by-case basis to pay a supplement to the partner 
country's contribution.  The  supplement  may be in the form  of a contribution  under the 
partner country's PHARE allocation. 

Based on the Additional Protocol with Poland, the financial and budgetary arrangements 
for  SAVE  II  are  as  follows:  the  costs  have  been  calculated  on  the  basis  of various 
parameters  inherent  in  the  programme,  i.e.  GDP,  population,  and  total  inland  energy 
consumption 

The cost of Poland's participation in SAVE II from 1998 will be 
ECU  1.081.584 per year. 

The  administrative  costs  shall  be  be  covered  entirely from Poland's  national  budget. 
Poland  shall  pay 3% (1998),  13% (1999)  and  23% (2000)  of the remaining  cost  of its 
participation from its national budget, and 97% (1998), 87% (1999) and 77% (2000)  from 
its Phare annual programmes, subject to regular Phare programming procedures. 

7.2  Itemized  breakdown  of  cost  (in  ecu)  after  the  administrative  costs  have  been 
deducted. 

SAVE II 

1998 

1999 

2000 

Total 

1.008.000 

1.008.000 

1.008.000 

3.024.000 

of _  which 
Poland-
-393.120 

of  which 
Phare 
2.630.880 

7.3  Operational expenditure on special studies, expert meetings, etc., included in 10.2. 

rr 

7.4  Schedule  for  multiannual  operations;  amounts  to  be  charged  to  item  B7  503; 
indicative time schedule (year t =30%; year t+l=30%; year t+2=40%). 

Committed 
appropriations 
Disbursed 
appropriations 
1998 
1999 
2000 
Subsequent 
years 
Total 

1998 

1999 

2000 

Subsequent 
years 

TOTAL 

977.760 

876.960 

776.160 

2.630.880 

293.328 
293.328 
391.104 

977.760 

263.088 
263.088 

232.848 

350.784 
876.960 

543.312 
776.160 

293.328 
556.416 
887.040 

894.096 
2.630.880 

The foreseeable annual receipts are as follows: 

Item 6091 

1998 

1999 

2000 

Total 

Operational 
part 
Administrative 
part 

30.240 

73.584 

131.040 

231.840 

393.120 

73.584 

73.584 

220.752 

Total 

103.824 

204.624 

305.424 

613.872 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES  TAKEN 

All the Commission's contracts,  agreements and other legal commitments provide for on-
the-spot  checks  by  the  Commission  and  Court  of  Auditors.  Among  other  things,  the 
beneficiaries  of the operations  are obliged to file reports and financial statements.  These 
are analysed from the point of view of their content and the eligibility of the expenditure in 
line with the objective of Community 

financing. 

— ^ ~_ 

The  anti-fraud  provisions  of  the  basic  budget  headings  apply  to  this  heading  too  when 
adapted to the case of the countries of Central and Eastern Europe. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified  objectives 

The aim of opening up  SAVE II to  Poland is to bring it the same benefits  as the  Member 
States  of  the  Community  already  enjoy  from  this  programme.  The  essential  aim  of 
Community  action on energy  efficiency  should  be to  enable all participating  countries  to 
achieve  in  a  cost-effective  manner  a  prudent  and  rational  use  of  energy  resources  in  all 
sectors, to reduce the negative impact of energy use on the environment  and to  contribute 
to a better security of energy supply and to sustainable economic development. 

re 

More specific strategies and aims of the  programme are: 

-  to  strengthen  the  energy  efficiency 
infrastructure  in participating  countries  and to 
encourage  investments  in  energy  efficiency  by  private  and public  consumers  and by 
industry. 

-to stabilize and reduce C02 emissions in accordance with Community goals 

-to  develop and pursue actions leading to the strengthening of Community economic 
and  social  cohesion,  and  in  particular  to  reduce  disparities  between  levels  of 
development of the various regions, wherein  energy should be an integral part of that 
effort. 

-  to  complement  other  programmes  for  the  use  and  promotion  of  new  energy 
technologies. 

-  to  improve  the  energy  intensity  of final consumption  by  a further  one  percentage 
point per annum over that which would have been otherwise attained. 

- to support local energy management programmes. 

-  to  ensure  that  actions  and  projects  are  subject  to  thorough  prior  appraisal  and 
systematic monitoring and evaluation. 

-to  insure  that  directives  on  energy  efficiency  such  as  those  concerning  labelling, 
minimum  efficiency  standards,  C02  reduction  (93/76/EEC),  etc.  are implemented  in 
accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial  aid 

Given severe budgetary constraints in Poland,  and the importance of the-participation in 
Community programmes, a part of the re-inforced pre-accession strategy; partial  financing 
of Poland's financial contribution by means of its Phare allocation is required. 

-  Choice of way s and means 

Poland's integration in SAVE II will put it on a basis similar to the current EU Member 
States.  The integration  of Polish  nationals in  Community  networks  will  make  a  definite 
contribution to preparing Poland for future membership. 

-  Main factors  of uncertainty which could affect the specific results of the operation 

Since projects will be selected  according to qualitative criteria, it will  only be possible  to 
measure the real impact on the basis of Polish institutions' and firms' capacity to  respond 
to  the  calls  for  proposal  for  actions  to  be  launched  by  the  Commission  under  the 
programme as set out in Section 6 of this financial statement. 

Si-

9.3 Monitoring and evaluation of the operation 

The monitoring  and  evaluation  procedures  included  in  SAVE II  (notably  in  respect  of 
evaluation,  as  included  in  the  Article  5,  Paragraph  2  of  the  Decision  establishing  the 
programme) will also cover operations financed for Polish beneficiaries. This includes the 
submission by the selected beneficiaries  of a report to the Commission  on a six-monthly 
basis and on completion of the project. As described in Article 6 of this document, certain 
monitoring and evaluation actions and measures are also eligible for programme subsidies. 

10. ADMINISTRATIVE EXPENDITURE 

Actual  mobilisation  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on  the  allocation  of resources,  taking  into  account  the 
number  of  staff  and  additional  amounts  authorised  by  the  budgetary  authority.  The 
supplementary  needs  can  not,  in  any  case,  préjuge  the  decision  that  the  Commission 
will need to take  concerning: 
a)  the 
request 
b)  the resources  allocation 

framework 

the  APB 

posts 

new 

the 

of 

of 

in 

10.1  Overall  impact  on  the  number  of  posts,  calculated  on  the  basis  of 
participation  by Poland 

Type of  post 

staff  required 

to 

including 

duration 

Additional 
. manage  the  operation 
Permanent 
posts 

Temporary 
posts 

Officials 
A 
C 
Other  resources 

TOTAL 

0.21 
0.14 

0.35 

using  existing 
resources 
of 
the 
departments 
concerned 

using 
additional 
resources 

0.21 
0.14 

0.35 

1998-
2 0 00 

1998-
2 0 00 

- 

• 

-

—-

Si 

10.2  Increase  in  other  yearly  and  total  operating  expenses  as  a  result  of 
participation  by Poland  fin  ecu). 

Budget  heading  (No and  title) 

Al 1 7 8/ A23technical 
assistance 

Yearly 
expenses 

Total 
1998 
2 0 00 

fo 
-

6 4 . 0 84 

192.252 

A1300  missions 
A2500 
meetings 
technical  committees 

with 

1.500 

4.500 

3.500 

10.500 

A2510  compulsory  meetings 
with  SAVE  Committee 

Total 

4.500 

13.500 

73.584 

2 2 0 . 7 52 

Method  of  calculation 

total 
of 

Based  on  share  of 
additional 
cost 
technical  assistance. 
1  mission  per year. 
Participation 
Polish 
by 
representatives  in  2  annual 
meetings. 

Participation  in  an  average 
of  3 
meetings  per year. 

The above expenditure will be met from the receipts received from Poland's own  financial 
contribution to the Community programme. 

r<? 

Proposal for a 
COUNCIL DECISION 

of 

9f/o/ciCy  C^%) 

concerning the Community position within the Association Council 
on the participation of Romania in the multiannual Community programme for 
energy efficiency, SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  13Or and  130s, paragraph  1, in conjunction  with  Article 228,  paragraph  3,  1st 
alinéa thereof 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an  association 
between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and 
Romania,  of  the  other  part,  has  been  concluded  by  decision  of  the  Council  and  the 
Commission of 4 December 1995, 

•s-

Whereas, according to Article  1 of the Additional Protocol, Romania may participate in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy and pursuant to Article 2, the terms and conditions 
for the participation of Romania in the activities referred to in Article 1  shall be decided by 
the Association Council, 

Whereas Council Decision (96/737/EÇ)1 of 16 December  1996 establishing a multiannual 
programme  for  the  promotion  of  energy  efficiency  in the  Community^nd  in particular 
Article  10 thereof,  provides  that  this  programme  shall  be  operrtcrihe  participation  of 
associated  Central  European  countries  in accordance  with the conditions  set  out  in the 
Association Agreements on participation in Community programmes 

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established by 
the Europe Agreement between the European Communities and their Member  States, of 
the one part, and Romania, of the other part, concerning the participation  of Romania in 
the Community programme for energy efficiency,  SAVE H, is the attached  draft  decision 
of the Association Council. 

Done at Brussels 

For the Council 

1  OJ.N° L 335/50 of 24.12.1996 

Co 

Draft Decision n°..../98 of the Association Council between the European 
Communities and their Member States, of the one part, and Romania, of the other 

adopting the terms and conditions for the participation of Romania in the 
Community programme for energy efficiency, SAVE H 

part of 

1998 

THE ASSOCIATION COUNCIL 

Having regard  to the Europe  Agreement between the European  Communities  and their 
Member States, of the one part, and Romania, of the other partl, 

Having  regard  to  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an 
association between the European Communities and their Member States, of the one part, 
and  Romania,  of  the  other  part  concerning  Romania's  participation  in  Community 
programmes, and in particular Articles 1  and 2 thereof2; 

Whereas according to Article 1 of the said Additional Protocol, Romania may participate 
in  Community framework programmes,  specific  programmes,  projects  or  other  actions 
including those in the field of energy; 

•\ 

Whereas according to Article 2 of the said Additional Protocol the terms and conditions 
for the participation of Romania in the activities referred to in Article 1  are to be decided 
by the Association Council, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Romania shall participate in the European Community programme SAVE II according to 
the terms and conditions set out in Annexes I and II which shall form  an integral part of 
this Decision. 

Article 2 

This Decision shall apply for the duration of the SAVE II programme. 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

1  O.J. N°L 357 of 31.12.1994 

2  O.J. N°L 317 of 30.12.1995 

^ 

Annex I 

Terms and conditions for the participation of Romania 
in the multiannual Community programme for energy efficiency,  SAVE H 

1. Romania will  participate  in  all  actions  of the  multiannual  Community  programme  for 
energy efficiency,  SAVE II (hereinafter called "SAVE IP) in conformity, unless otherwise 
provided  in  this Decision,  with  the  objectives,  criteria,  procedures  and  time  limits  laid 
down  in  Council  Decision  (96/737/EC)  establishing  a  five-year  programme  for  the 
preparation  and  implementation  of  measures  and  actions  in  a  cost-effective  manner  in 
order to promote energy efficiency within the Community. 

2.  The terms and conditions for the submission, assessment and selection  of  applications 
related to eligible institutions, organizations and individuals of Romania shall be the same 
as those applicable to eligible institutions, organisations and individuals of the Community, 
set within the limits of the financial contribution  of Romania less  administrative  costs  as 
provided in Annex H. 

3.  Where  applicable,  to  ensure  the  Community  dimension  of  SAVE  II,  transnational 
projects  and  activities  proposed  by  Romania  will  be -required  to  include  a rrdnimum 
number of  partners from the Member  States  of  the  Community.  This  minimum number 
will be decided in the framework of the implementation of  SAVE n,  taking into account 
the  nature  of  the  various  activities,  the  number  of  partners  in  a given  project,  and the 
number of countries participating in the activity. 

4. Romania shall take all necessary steps to ensure national coordination and organisation 
of participation in SAVE II. 

5.  Romania  shall  pay  each  year  a  contribution  to  the  general  budget  of  the  European 
Communities to cover the costs resulting from its participation in SAVE II (see Annex IT). 

The Association Committee is entitled to adapt this contribution whenevernecessary. 

6. The Member States of the Community and Romania will makc-ovefyoflort,  within the 
framework  of existing provisions, to facilitate the free movement and residence of persons 
moving between Romania and the Member  States  of the Community  for the purpose  of 
participating in activities covered by this Decision. 

7. Without prejudice to the responsibilities of the Commission and the Community's Court 
of Auditors of the European Communities in relation to the monitoring and evaluation  of 
SAVE II pursuant to Article  5 of the Council Decision on SAVE II, the participation  of 
Romania  in  the  programme  will  be  continuously  monitored  on  a  partnership  basis 
involving  Romania  and  the  Commission  of  the  European  Communities.  Romania  will 
submit the necessary  reports to  the Commission and take part in other  specific  activities 
set out by the Community in that context. 

ex 

8. Without  prejudice to the procedures referred to in Articles 4 and 5 of the Decision  on 
SAVE H, Romania will  be invited  to  coordination  meetings  on any question  concerning 
the  implementation  of  this  Decision  prior  to  the  regular  meetings  of  the  SAVE 
Committee.  The  Commission  will  inform  Romania  about  the  results  of  such  regular 
meetings. 

9.  The language  to  be used  as  regards  the  application  process,  contracts,  reports  to  be 
submitted and other administrative, arrangements for the SAVE II programme, will be one 
of the official languages of the Community. 

a 

ANNEX II 

FINANCIAL CONTRIBUTION OF ROMANIA TO 
SAVED 

1.  The financial contribution of Romania will cover: 

-subsidies  or  any  other  financial  support  from  the  programme  to  Romanian 
participants, 

-supplementary administrative costs related to the management of the programme 
by the Commission of the European Communities stemming from Romania's 
participation. 

2.  For  every financial year,  the  aggregated  amount  of  subsidies  or  any  other  financial 
support received from the programme by Romanian beneficiaries  will not exceed the 
contribution  paid  by Romania,  after  deduction  of  the  supplementary  administrative 
costs. 

Should  the  contribution  paid  by  Romania  to  the  general  budget  of  the  European 
Communities,  after  deduction  of  the  supplementary  administrative  costs,  be  higher 
than the aggregated amount of the subsidies or other financial support received by the 
Romanian  beneficiaries  from  the  programmes,  the- Commission  will  transfer  the 
balance to  the next  budgetary  exercise,  and  it  will  be deducted from the  following 
year's contribution.  Should  such a balance be left  when the programme comes to an 
end, the corresponding amount will be reimbursed to Romania. 

3.  Romania's annual contribution will be of 560 106 ECU from 1998. From this sum, an 
amount of 38  106 ECU will cover supplementary  administrative costs related  to the 
management  of  the  programme  by  the  Commission  stemming  from  Romania's 
participation. 

4.  The  financial  regulation  applicable  to  the  general  budget  -of7-the  European 
Communities will apply, notably to the management of the contribution of Romania. 

Upon  the  entry  into  force  of  this  Decision  and  at  the  beginning  of  each  year,  the 
Commission will send to Romania a call for funds corresponding to its contribution to 
the costs under this Decision. 

This contribution will be expressed in ecus and paid into an ecu bank account of the 
Commission. 

cs 

Romania will pay its contribution to the annual costs under this Decision according to 
the call  for  funds  and at the  latest three months after the  call  for  funds  is  sent.  Any 
delay in the payment of the contribution  shall give rise to the payment  of interest by 
Romania on the outstanding amount from the due date. The interest rate corresponds 
to the rate applied by the European Monetary Cooperation Fund for the month of the 
due date, for its operations in ecus1, increased by 1,5 percentage points. 

5.  Romania will  pay the  supplementary administrative  costs  referred  to  in paragraph  3 

from  its national budget. 

6. 

Romania will  pay ECU  104  400  (1998),  ECU  261  000  (1999)  and ECU  417  600 

(2000)  of the remaining cost of its participation in SAVE II from its national budget. 

Subject  to  regular  Phare  programming  procedures,  the  remaining  ECU  417  600 
(1998), ECU 261  000  (1999)  and ECU  104 400  (2000) will be paid from Romania's 
annual Phare allocation. 

1  Rate published monthly in the Official Journal of the European Communities - C series 

FINANCIAL STATEMENT 

1. TITLE OF OPERATION 

Participation of Romania in SAVE II 

2. BUDGET HEADING INVOLVED 

B7-503 -  Opening of Community Programmes to the associated  countries  of Central and 
Eastern Europe 

3. LEGAL BASIS 

Treaty  establishing the European  Community,  and  in particular  Articles  13 Or and  130s, 
paragraph 1, 
in conjuntion with Article228, paragraph 3,  1st alinéa thereof, 

The Additional Protocol to the Europe Agreement with^Romania (Articles 228 and 238) 
of  30 June  1995, providing  for  the  opening-up  of  Community programmes  (OJ No  L 
317/39 of 30.12.1995) 

Council Decision (96/73 7/EC) establishing a five-year programme for the preparation and 
implementation  of measures  and  actions in a cost-effective  manner in  order  to  promote 
energy efficiency  within the Community, and Article  10 thereof, which provides that this 
programme shall be open to the participation of associated Central European countries in 
accordance with the conditions set out in the Association Agreements on participation in 
Community programmes. 

4. DESCRIPTION OF OPERATION: 

4.1 General objective 

Romania's  participation  in  SAVE  II  will  assist  in  preparing  its  future  accession  to  the 
Union, which was the aim set by the  Copenhagen  European  Council  of June  1993 and 
confirmed  by  subsequent  European  Councils.  Its  participation  will  not  only  contribute 
towards  the  implementation  of  the  provisions  relating  to  economic  and  technical 
cooperation  in the Europe Agreements but will also enable Romania to  familiarize  itself 
with the procedures and methods used in Community programmes. The "Agenda 2000" 
communication  from  the  Commission  reiterates  the  importance  of  participating  in 
Community programmes as a key feature of a re-inforced pre-accession strategy. 

The decision-making process for the opening-up of programmes involves a decision by the 
Association Council between the Union and the associated country. This decision also lays 
down the practical conditions and arrangements for participating in the programmes. 

The  Additional  Protocol  with  Romania  entered  into  force  on  1  February  1996  and 
provides  for  Romania's  participation  in community  programmes,  notably  in the field of 
energy. 

SAVE II is one of a number of programmes opening up for the countries of Central and 
Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For  the  duration  of  SAVE  H,  i.e.  until  31  December  2000.  The  Phare  contribution, 
however, is dependent on decisions taken as regards the budget after 1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved: 

Since the first paragraph  of Article 3 of the Additional Protocol  stipulates that Romania 
itself will meet the cost of its participation, it will be invited to transfer  its contribution to 
item 6091 of the ELTs budget receipts. However, as  the second paragraph of Article 3 of 
the  Additional  Protocol  states  that  the  Community  may  supplement  Romania's 
contribution, Romania will contribute only part from its own budget, with the remainder 
being  charged  to  heading  B7-503.  A  transfer  from  the  relevant  Phare  appropriations 
(heading  B7-500)  to  heading  B7-503  will  be  made  upon  receipt  of  the  Romanian 
contribution. 

6. TYPE OF EXPENDITURE OR REVENUE AND DEGREE OF SUBVENTION 
FOR ACTIVITIES PROPOSED 

100%  (maximum)  subsidy  will  be  allowed  on  total  eligible  expenses Jbr  the  following 
actions: 

- for studies, information  dessemination and other actions aimed at the implementation 
and  completion  of  Community  measures  such  as  voluntary  agreements,  cooperative 
procurements,  mandates to  standardization  bodies, legislation,  etc.  taken  to improve 
energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a  view  to  establishing  energy  efficiency  as  a  criterion  within 
Community programmes. 

-  for  measures  proposed  by  the  Commission  to  foster  the  exchange  of  experience 
aimed  at  promoting  better  coordination  between  international,  Community,  national, 
regional and local activities by appropriate means for information dissemination. 

-  for monitoring of energy efficiency  progress in the Community, in individual Member 
States and in Romania; and for the evaluation and monitoring of actions and measures 
undertaken  under the  programme. 

For the above actions with  100% subsidy, the Council  Decision  of  16 december  1996 
(96/73 7/EC) may in and of itself be considered a call for tender. 

50% (maximum) subsidy on total eligible expenses will be allowed for joint financing with 
other sources for the following actions: 

-  for sectoral targeted pilot actions aimed at accelerating energy efficiency  investment, 
and/or  improving  energy  use  patterns  including  specific  actions  in  favour  of  energy 
management at the regional and urban level and in favour of greater cohesion between 
Member States and Romania, and regions thereof,  in the field of energy  efficiency. 

for measures proposed to  promote better coordination  of activities for  information 

- 
dissemination. 

- for measures, proposed otherwise than by the Commission, to foster the exchange  of 
experience aimed at promoting better coordination between international,  Community, 
national,  regional  and 
information 
dissemination. 

local  activities  by  appropriate  means  for 

For  the  above  actions,  activities  may  be  carried  out  by  organizations  or  public  and 
private  enterprises  as  well  as  by  existing  Community-wide  networks  or  temporary 
groupings of organizations and/or enterprises formed to accomplish the projects. 

For  the  above  actions  with  50%  subsidy,  a  call  for  tender  will  be  published  in  the 
Official  Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It  is  understood  that  all  actions  undertaken  will  have  a  clear  and  visible  European 
dimension. 

As far as revenue is concerned,  provision for Romania's contribution to"cover the cost  of 
its participation is made under item 6091. The revenue will be allocated  to  the items  for 
expenditure  on  SAVE  II  and,  where  appropriate,  to  the  relevant  items  of  operating 
expenditure. 

The total revenue expected is given under item 7.2. 

a 

7. FINANCIAL IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  for  1998,  1999  and  2000  financial 

years (link between individual costs and total cost). 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities referred  to in the 
Protocol  is  calculated  according  to  the  principle  that  the  country  bears  the  cost  of 
participation itself. Heading 6091 has been created in the statement of budget revenue 
for that purpose; 

- 
the Community may decide on a case-by-case basis to pay a supplement to the partner 
country's contribution.  The supplement  may be in the form  of a contribution  under  the 
partner country's PHARE allocation. 

Based on the Additional Protocol with Romania, the financial and budgetary arrangements 
for  SAVE  II  are  as  follows:  the  costs  have  been  calculated  on  the  basis  of various 
parameters  inherent  in the  programme,  i.e.  GDP,  population,  and  total  inland  energy 
consumption. 

The cost of Romania's participation in SAVE II from 1998 will be 
ECU  560.106 per year. 

The  administrative costs shall be  be covered  entirely from Romania's  national budget. 
Romania shall pay 20%, 50%, and 80% of the remaining cost of its participation from its 
national budget of  1998,  1999 and 2000, respectively, and 80%, 50 % and 20% from its 
Phare annual programmes of 1998,  1999 and 2000, subject to regular Phare programming 
procedures. 

7.2  Itemized  breakdown  of  cost  (in  ecu)  after  the  administrative  costs  have  been 
deducted. 

SAVE II 

1998 

1999 

2000 

Total 

522.000 

522.000 

522.000 

1.566.000 

of  which 
Romania 
783.000 

of  which 
Phare 
783.000 

7.3  Operational expenditure on special studies, expert meetings, etc., included in 10.2. 

C9 

7.4  Schedule  for  multiannual  operations;  amounts  to  be  charged  to  item  B7  503; 
indicative time schedule (year t =30%; year t+l=30%; year t+2=40%). 

1998 

1999 

2000 

Subsequent 
years 

TOTAL 

Committed 
appropriations 
Disbursed 
appropriations 
1998 
1999 
2000 
Subsequent 
years 
Total 

417.600 

261.000 

104.400 

125.280 
125.280 
167.040 

417.600 

78.300 
78.300 

31.320 

104.400 
261.000 

73.080 
104.400 

The foreseeable  annual receipts are as follows: 

783.000 

125.280 
203.580 
276.660 

177.480 
783.000 

Item 6091 

1998 

1999 

2000 

Total 

Operational 
part 
Administrative 
part 

104.400 

261.000 

417.600 

783.000 

38.106 

38.106 

38.106 

114.318 

Total 

142.506 

299.106 

455.706 

897.318 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES  TAKEN 

All the Commission's contracts,  agreements and other legal commitments provide for on-
the-spot  checks  by  the  Commission  and  Court  of  Auditors.  Among  other  things,  the 
beneficiaries  of the operations  are obliged to file reports and financial statements.  These 
are analysed from the point of view of their content and the eligibility of the expenditure in 
line with the objective of Community 

financing. 

"*——* 

The  anti-fraud  provisions  of  the  basic  budget  headings  apply  to  this  heading  too  when 
adapted to the case of the countries of Central and Eastern Europe. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified  objectives 

The aim of opening up SAVE II to Romania is to bring it the same benefits  as the Member 
States  of  the  Community  already  enjoy  from  this  programme.  The  essential  aim  of 
Community  action  on energy  efficiency  should  be to  enable all participating  countries  to 
achieve  in  a  cost-effective  manner  a  prudent  and  rational  use  of  energy  resources  in  all 
sectors, to reduce the negative impact of energy use on the environment  and to  contribute 
to a better security of energy supply and to sustainable economic  development. 

^> 

More specific strategies and aims of the  programme are: 

-  to  strengthen  the energy  efficiency 
infrastructure  in participating  countries and to 
encourage  investments  in  energy  efficiency  by private and  public  consumers  and by 
industry. 

-to stabilize and reduce C02 emissions in accordance with Community goals 

-to  develop and pursue actions leading to the strengthening of Community economic 
and  social  cohesion, * and  in  particular  to  reduce  disparities  between  levels  of 
development of the various regions, wherein  energy should be an integral part of that 
effort. 

-  to  complement  other  programmes  for  the  use  and  promotion  of  new  energy 
technologies. 

-  to  improve the  energy  intensity  of final consumption  by a  further  one  percentage 
point per annum over that which would have been otherwise attained. 

- to support local energy management programmes. 

-  to  ensure  that  actions  and  projects  are  subject  to  thorough  prior  appraisal  and 
systematic monitoring and evaluation. 

-to  insure  that  directives  on  energy  efficiency  such  as  those  concerning  labelling, 
rriinimum efficiency  standards,  C02  reduction  (93/76/EEC),  etc.  are implemented  in 
accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial aid 

Given severe budgetary constraints in Romania, and the importance of the participation in 
Community programmes, a part of the re-inforced  pre-accession-strategy, partial  financing 
of Romania's financial contribution by means of its Phare allocation is required. 

-  Choice of ways and means 

Romania's integration in SAVE II will put it on a basis similar to the current EU Member 
States.  The  integration  of  Romanian  nationals  in  Community  networks  will  make  a 
definite contribution to preparing Romania for future membership. 

-  Main factors of uncertainty which could affect the specific results of the operation 

Since projects will be selected according to qualitative criteria, it will only be possible to 
measure  the  real  impact  on  the  basis  of  Romanian  institutions'  and  firms'  capacity  to 
respond to the calls for proposal for actions to be launched by the Commission under the 
programme as set out in Section 6 of this financial statement. 

9.3 Monitoring and evaluation of the operation 

The  monitoring  and  evaluation  procedures  included  in  SAVE  II  (notably  in  respect  of 
evaluation,  as  included  in  the  Article  5,  Paragraph  2  of  the  Decision  establishing  the 
programme)  will also  cover  operations financed for  Romanian beneficiaries.  This  includes 
the  submission  by  the  selected  beneficiaries  of  a  report  to  the  Commission  on  a  six-
monthly  basis  and  on  completion  of  the  project.  As  described  in  Article  6  of  this 
document,  certain  monitoring  and  evaluation  actions  and  measures  are  also  eligible  for 
programme subsidies. 

10. ADMINISTRATIVE  EXPENDITURE 

Actual  mobilisation  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on  the  allocation  of  resources,  taking  into  account  the 
number  of  staff  and  additional  amounts  authorised  by  the  budgetary  authority.  The 
supplementary  needs  can  not,  in  any  case,  préjuge  the  decision  that  the  Commission 
will need  to  take  concerning: 
a) 
request 
b) 

the 
the  resources  allocation 

framework 

posts 

new 

the 

the 

APB 

of 

of 

in 

10.1  Overall 
impact  on 
participation  by  Romania 

t he  number  of  posts,  calculated  on 
*^ 

t he  basis  of 

Type of  post 

staJT  required 

to 

Including 

duration 

Additional 
manage  the  operation 
Permanent 
posts 

Temporary 
posts 

Oiiicials 
A 
C 
Other  resources 

TOTAL 

0.11 
0.07 

0.18 

using  existing 
resources 
of 
the 
departments 
concerned 

using 
additional 
resources 

0.11 
0.07 

0.18 

1998-
2 0 00 

1998-
2 0 00 

'  • 

/ I n 

^z 

10.2  Increase  in  other  yearly  and  total  operating  expenses  as  a  result  of 
participation  by Romania  (in ecu). 

Budget  heading  (No and title) 

Al 178/ A23technical 
assistance 

Yearly 
expenses 

Total  fo 
1998-
2000 

28.606 

85.818 

A1300  missions 
A2500 
meetings 
technical  committees 

with 

1.500 

4.500 

3.50O 

10.500 

A2510  compulsory  meetings 
with  SAVE Committee 

Total 

4.500 

13.500 

38.106 

114.318 

Method  of  calculation 

Based  on  share  of 
total 
additional  cost  of  technical 
assistance. 
1  mission  per year. 
Participation  by  Romanian 
representatives  in  2  annual 
meetings. 

Participation  in  an  average 
of  3 
meetings per year. 

The  above  expenditure  will  be  met  from  the  receipts  received  from  Romania's  own 
financial  contribution to the Community programme. 

1? 

Proposal for a 
COUNCIL DECISION 

, 

. 
S vQ  ^L^^y 

/ 

concerning the Community position within the Association Council 
on the participation of the Slovak Republic in the multiannual Community 
programme for energy efficiency, SAVE II 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  130r and  130s, paragraph  1, in conjunction  with  Article  228, paragraph  3,  1st 
alinéa thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  the  Additional  Protocol  to  the  Europe  Agreement  establishing  an  association 
between the European  Communities  and their Member  States,  of the  one part,  and the 
Slovak Republic, of the other part, has been concluded by decision of the Council and the 
Commission of  22 April 1996, 

Whereas,  according  to  Article  1 of  the  Additional  Protocol,  the  Slovak  Republic may 
participate in Community framework programmes, specific programmes, projects or other 
actions  including those in  the field of  energy  and  pursuant  to  Article  2,  the  terms and 
conditions  for  the  participation  of  the  Slovak  Republic  in  the  activities  referred  to  in 
Article 1  shall be decided by the Association Council, 

Whereas Council Decision (96/73 7/EC)1 of 16 December  1996 establishing a multiannual 
programme  for  the  promotion  of  energy  efficiency  in the  Community, and  in  particular 
Article  10 thereof  provides  that  this  programme  shall  be  open  to  the  participation  of 
associated  Central European  countries  in accordance  with the -conditions set  out  in the 
Association Agreements on participation in Community programmes-

HAS DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established by 
the Europe Agreement between the European Communities and their Member  States, of 
the one part,  and the Slovak Republic, of the other part,  concerning the participation of 
the Slovak Republic in the Community programme for energy efficiency,  SAVE H, is the 
attached draft decision of the Association Council. 

Done at Brussels 

For the Council 

1  OJ.N°L 335/50 of 24.12.1996 

Draft Decision n°..../97 of the Association Council between the European 
Communities and their Member States, of the one part, and the Slovak Republic, of 

adopting the terms and conditions for the participation of the Slovak Republic in 
the Community programme for energy efficiency,  SAVE H 

the other part of 

1997 

THE ASSOCIATION COUNCIL 

Having regard  to the Europe  Agreement  between  the European  Communities  and their 
Member States, of the one part, and the Slovak Republic, of the other partl, 

Having regard to the Additional Protocol the Europe Agreement establishin an association 
between the European  Communities  and their Member  States,  of the  one  part,  and  the 
Slovak  Republic,  of  the  other  part  concerning  the  Slovak  Republic's  participation  in 
Community programmes, and in particular Articles 1  and 2 thereof2; 

Whereas according to Article  1 of the said Additional Protocol, the Slovak Republic may 
participate in Community framework programmes, specific programmes, projects or other 
actions including those in the field of energy; 

Whereas according to Article 2 of the said Additional Protocol the terms and conditions 
for the participation of the Slovak Republic in the activities referred  to in Article  1  are to 
be decided by the Association Council, 

*\ 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Slovak Republic shall participate in the European  Community programme  SAVE II 
according to  the terms and  conditions  set  out  in  Annexes  I  and II  which  shall form  an 
integral part of this Decision. 

This Decision shall apply for the duration of the SAVE II programme. 

Article 2 

Article 3 

This Decision shall enter into force on the first day of the month following its adoption. 

Done at 

For the Association Council 
The Chairman 

1  O.J. N°L 359 of 31.12.1994 

2  O.J. N°L  115 of 9.5.1996 

^ 

Annex I 

Terms and conditions for the participation of the Slovak Republic 
in the multiannual Community programme for energy efficiency,  SAVE H 

1.  The  Slovak  Republic  will  participate  in  all  actions  of  the  multiannual  Community 
programme for energy efficiency,  SAVE II (hereinafter  called "SAVE H") in conformity, 
unless otherwise  provided  in this Decision, with the objectives,  criteria,  procedures  and 
time limits laid down in Council Decision (96/737/EC) establishing a five-year programme 
for the preparation and implementation of measures and actions in a cost-effective  manner 
in order to promote energy efficiency within the Community. 

2. The terms and conditions for the submission, assessment and selection of applications 
related to  eligible institutions,  organizations and individuals of the  Slovak Republic shall 
be the same as those applicable to eligible institutions, organisations and individuals of the 
Community, set within the limits of the financial contribution of the Slovak Republic less 
administrative costs as provided in Annex II. 

3.  Where  applicable,  to  ensure  the  Community  dimension  of  SAVE  H,,  transnational 
projects  and  activities  proposed  by  the  Slovak  Republic  will  be  required  to  include  a 
minimum number of partners from the Member States of the Community. This minimum 
number will be decided in the framework of the implementation of  SAVE H, taking into 
account the nature of the various activities, the number of partners in a given project, and 
the number of countries participating in the activity. 

4. The Slovak Republic shall take all necessary steps to ensure national  coordination and 
organisation of participation in SAVE II. 

5.  The  Slovak Republic  shall  pay  each year  a contribution  to the general  budget  of the 
European Communities to cover the costs resulting from its participation in SAVE II (see 
Annex H). 

The Association Committee is entitled to adapt this contribution whenever necessary. 

6. The Member States of the Community and the Slovak Republic will make every effort, 
within the framework of existing provisions, to facilitate the free movement and residence 
of  persons  moving  between  the  Slovak  Republic  and  the  Member  States  of  the 
Community for the purpose of participating in activities covered by this Decision. 

7. Without prejudice to the responsibilities of the Commission and the Community's Court 
of Auditors of the European Communities in relation to the monitoring and evaluation of 
SAVE II pursuant to Article  5 of the Council Decision on SAVE II, the participation of 
the  Slovak Republic  in the programme will be continuously  monitored  on a partnership 
basis involving the  Slovak Republic and the Commission  of the European Communities. 
The Slovak Republic will submit the necessary reports to the Commission and take part in 
other specific activities set out by the Community in that context. 

ic 

8. Without prejudice to the procedures referred to in Articles 4 and 5 of the Decision on 
SAVE H, the  Slovak Republic  will  be invited  to  coordination  meetings  on  any  question 
concerning the implementation of this Decision prior to the regular meetings of the SAVE 
Committee.  The  Commission  wll  inform  the  Slovak  Republic  about  the  results  of  such 
regular meetings. 

9.  The language  to  be used  as  regards  the  application  process,  contracts,  reports  to  be 
submitted and other administrative arrangements for the SAVE II programme, will be one 
of the official languages of the Community. 

m 

ANNEX II 

FINANCIAL CONTRIBUTION OF THE SLOVAK REPUBLIC TO 
SAVED 

1.  The financial contribution of the Slovak Republic will cover: 

-subsidies or any other financial support from the programme to Slovak participants, 

-supplementary administrative costs related to the management of the programme 
by the Commission of the European Communities stemming from the Slovak 
Republic's participation. 

2.  For  every financial year,  the  aggregated  amount  of  subsidies  or  any  other  financial 
support  received  from  the  programme  by  Slovak  beneficiaries  will  not  exceed  the 
contribution  paid  by  the  Slovak  Republic,  after  deduction  of  the  supplementary 
administrative costs. 

Should  the  contribution  paid  by  the  Slovak  Republic  to  the  general  budget  of  the 
European Communities, after deduction of the supplementary administrative costs, be 
higher than the aggregated amount of the subsidies or other financial support received 
by the  Slovak  beneficiaries from the  programmes,  the  Commission  will  transfer  the 
balance  to  the  next  budgetary  exercise,  and  it  will  be  deducted from the  following 
year's contribution.  Should  such a balance be left  when the programme  comes  to  an 
end, the corresponding amount will be reimbursed to the Slovak Republic. 

3.  The Slovak Republic's annual contribution will be of  154 512 ECU from 1998. From 
this  sum,  an amount  of  10  512  ECU  will  cover  supplementary  administrative  costs 
related to the management  of the programme by the Commission  stemming from the 
Slovak Republic's participation. 

4.  The  financial  regulation  applicable  to  the  general  budget  of  the  European 
Communities will apply, notably to the management of the contribution of the Slovak 
Republic. 

Upon  the  entry  into  force  of  this  Decision  and  at  the  beginning  of  each  year,  the 
Commission  will  send  to  the  Slovak  Republic  a call  for  funds  corresponding  to  its 
contribution to the costs under this Decision. 

This contribution will be expressed in ecus and paid into an ecu bank account  of the 
Commission. 

V 

The Slovak Republic will  pay its contribution to the annual costs under this Decision 
according to the call for funds and at the latest three months after the call for funds is 
sent.  Any  delay in the payment  of the contribution  shall give rise to  the payment  of 
interest  by the  Slovak  Republic  on the outstanding  amount from the  due  date.  The 
interest rate corresponds to  the rate applied by the European Monetary  Cooperation 
Fund  for  the  month  of  the  due  date,  for  its  operations  in  ecus1,  increased  by  1,5 
percentage points. 

5.  The  Slovak  Republic  will  pay  the  supplementary  administrative  costs  referred  to  in 

paragraph  3 from its national budget. 

6.  The Slovak Republic will pay 50% of the remaining cost of its participation in SAVE 

II from its national budget. 

Subject  to  regular Phare  programming  procedures,  the  remaining  50% will  be paid 
from  the Slovak Republic's annual Phare allocation. 

1  Rate published monthly in the Official Journal of the European Communities - C series 

79 

FINANCIAL  STATEMENT 

1. TITLE OF  OPERATION 

Opening of the SAVE II Programme to the Slovak Republic 

2. BUDGET HEADING  INVOLVED 

B7-503  - Opening of Community Programmes to the associated countries of Central and Eastern 
Europe 

3. LEGAL BASIS 

Treaty  establishing  the  European  Community,  and  in  particular  Articles  13 Or and  130s, 
paragraph  1, 
in conjuntion  with Article228, paragraph 3,  1st alinéa thereof, 

The Additional Protocol to the Europe Agreement with the Slovak Republic (Articles 228 
and 238) of  11 December  1995, providing for the opening-up  of Community  programmes 
(OJNoL  115/96 of 9.5.1996) and 

'" 

Council Decision  (96/73 7/EC) establishing a five-year programme  for  the preparation  and 
implementation  of  measures  and  actions  in  a  cost-effective  manner  in  order  to  promote 
energy  efficiency  within  the Community,  and  Article  10 thereof,  which  provides  that  this 
programme  shall be open to  the participation  of associated  Central  European  countries in 
accordance  with  the conditions  set  out  in the Association  Agreements  on  participation  in 
Community programmes. 

4. DESCRIPTION  OF OPERATION: 

4.1 General  objective 

The  Slovak  Republic's  participation  in  SAVE  II  will  assist  in  preparing  its  future 
accession  to  the  Union,  which  was  the  aim  set  by the  Copenhagen  European  Council  of 
June  1993 and confirmed  by subsequent European  Councils. Its participation will not only 
contribute  towards  the  implementation  of  the  provisions  relating  to  economic  and 
technical  cooperation  in the Europe  Agreements  but will also enable the  Slovak  Republic 
to  familiarize  itself  with  the  procedures  and  methods  used  in  Community  programmes. 
The  "Agenda  2000"  communication  from  the  Commission  reiterates  the  importance  of 
participating  in  Community  programmes  as  a  key  feature  of  a  re-inforced  pre-accession 
strategy. 

The decision-making process for the opening-up of programmes involves a decision by the 
Association Council between the Union and the associated  country. This decision also lays 
down the practical conditions and arrangements for participating in the programmes. 

/< 

The Additional Protocol with the Slovak Republic entered into force on  1 July  1996 and 
provides for the Slovak Republic's participation in community programmes, notably in the 
field  of energy. 

SAVE II is one of a number of programmes opening up for the countries of Central and 
Eastern Europe from 1998 onwards. 

4.2 Period covered and arrangements for renewal 

For  the  duration  of  SAVE  H,  i.e.  until  31  December  2000.  The  Phare  contribution, 
however, is dependent on decisions taken as regards the budget after  1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Types of  expenditure involved: 

1. Non-compulsory expenditures (NCE) 
2. Disassociated credits 

5.2 Type of revenue involved: 

Since the first paragraph of Article 3 of the Additional Protocol stipulates that the Slovak 
Republic  itself  will  meet  the  cost  of  its  participation,  it  will  be  invited  to  transfer  its 
contribution to item 6091 of the ELPs budget receipts. However, as  the second paragraph 
of  Article  3  of  the  Additional  Protocol  states  that  the  Community  may  supplement 
Slovakia's contribution, Slovakia will contribute only part from its own budget, with the 
remainder  being  charged  to  heading  B7-503.  A  transfer  from  the  relevant  Phare 
appropriations  (heading  B7-500)  to  heading  B7-503  will  be  made  upon  receipt  of  the 
Slovak contribution. 

6. TYPE OF EXPENDITURE OR REVENUE AND DEGREE OF SUBVENTION 
FOR ACnvmES PROPOSED 

100%  (maximum)  subsidy  will  be  allowed  on  total  eligible  expenses  for  the  following 
actions: 

- for studies, information dessemination and other actions aimed at the implementation 
and  completion  of  Community  measures  such  as  voluntary  agreements,  cooperative 
procurements,  mandates to  standardization  bodies, legislation,  etc.  taken  to  improve 
energy efficiency. 

-  for  studies  on  the  effects  of  energy  pricing  on  energy  efficiency  and  studies 
undertaken  with  a  view  to  establishing  energy  efficiency  as  a  criterion  within 
Community programmes. 

-  for  measures  proposed  by  the  Commission  to  foster  the  exchange  of  experience 
aimed  at  promoting  better  coordination  between  international,  Community,  national, 
regional and local activities by appropriate means for information dissemination. 

i) 

-  for monitoring of energy efficiency  progress in the Community, in individual Member 
States and in the Slovak Republic; and for the evaluation and monitoring of actions and 
measures undertaken under the programme. 

For the above actions with  100% subsidy, the Council Decision  of  16 december  1996 
(96/737/EC) may in and of itself be considered a call for tender. 

50% (maximum) subsidy on total eligible expenses will be allowed for joint financing with 
other sources for the following actions: 

-  for sectoral targeted pilot actions aimed at accelerating energy efficiency  investment, 
and/or  improving  energy  use  patterns  including  specific  actions  in  favour  of  energy 
management at the regional and urban level and in favour of greater cohesion between 
Member  States  and the  Slovak  Republic,  and  regions thereof,  in  the  field  of  energy 
efficiency. 

for measures proposed to promote better coordination  of activities for  information 

- 
dissemination. 

- for measures, proposed otherwise than by the Commission, to foster the exchange  of 
experience aimed at promoting better coordination between international,  Community, 
national,  regional  and 
information 
dissemination. 

local  activities  by  appropriate  means  for 

For  the  above  actions,  activities  may  be  carried  out  by  organizations  or  public  and 
private  enterprises  as  well  as  by  existing  Community-wide  networks  or  temporary 
groupings of organizations and/or enterprises formed to accomplish the projects. 

For  the  above  actions  with  50%  subsidy,  a  call  for  tender  will  be  published  in  the 
Official  Journal at the beginning of each year. 

The  balance  of  the  funding  of  the  actions  and  measures  with  a  50%  allowable 
subvention  may  be  made  up  from  either  public  or  private  sources  or  from  a 
combination of the two. 

It  is  understood  that  all  actions  undertaken  will  have  a  clear  and  visible  European 
dimension. 

As far as revenue is concerned, provision for the Slovak Republic's contribution to  cover 
the cost of its participation is made under item 6091. The revenue will be allocated to the 
items  for  expenditure  on  SAVE  II  and,  where  appropriate,  to  the  relevant  items  of 
operating expenditure. 

The total revenue expected is given under item 7.2. 

ZX 

7. FINANCIAL  IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  for  1998,  1999  and  2000  financial 

years (link between individual costs and total cost) 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities  referred  to  in the 
Protocol  is  calculated  according  to  the  principle  that  the  country  bears  the  cost  of 
participation itself. Heading 6091  has been created in the statement  of budget revenue 
for that purpose; 

the Community may decide on a case-by-case basis to pay a supplement to the partner 
country's contribution.  The  supplement  may be  in the  form  of  a contribution  under the 
partner country's PHARE allocation. 

Based  on the  Additional  Protocol  with the  Slovak Republic,  the financial and budgetary 
arrangements for  SAVE II are as follows: the costs have been calculated on the basis of 
various  parameters  inherent  in  the  programme,  i.e.  GDP,  population,  and  total  inland 
energy consumption 

The  cost  of  the  Slovak  Republic's  participation  in  SAVE  II  from  1998  will  be  ECU 
154.512 per year. 

The  administrative costs shall be  be covered entirely from the Slovak Republic's national 
budget. The Slovak Republic shall pay 50% of the remaining cost of its participation  from 
its national budget,  and 50% from its Phare annual programmes,  subject to  regular Phare 
programming procedures. 

7.2  Itemized breakdown of cost (in ecu) after the administrative costs have been deducted 

SAVE II 
Programme 

1998 

1999 

2000 

Total 

of which the 
Slovak 
-~ Republic 

of which 
Phare 

144.000 

144.000 

144.000 

432.000 

216.000 

216.000 

7.3  Operational expenditure on studies, expert meetings, etc., included in Section  10.2) 

f3 

7.4  Schedule  for  multiannual  operations  amounts  to  be  charged  to  item  B7  503; 
indicative time schedule (year t = 30%; year t+1 = 30%; year t+2= 40%) 

1998 

1999 

2000 

Subsequent 
years 

TOTAL 

Committed, 
appropriations 
Disbursed 
appropriations 
1998 
1999 
2000 
Subsequent 
years 
Total 

72.0001 

72.000 

72.000 

10.512 

21.600 
21.600 
28.800 

72.000 

10.512 

10.512 

21.600 
21.600 

21.600 

28.800 
72.000 

50.400 
72.000 

The foreseeable annual receipts are as follows: 

216.000 

31.536 

21.600 
43.200 
72.000 

79.200 
216.000 

Item 6091 
Operational part 
Administrative part 
Total 

1998 
72.000 
10.512 
82.512 

1999 
72.000 
10.512 
82.512 

2000 
72.000 
10.512 
82.512 

TOTAL 
216.000 
31.536 
247.536 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES  TAKEN 

All the Commission's contracts,  agreements and other legal commitments  provide for on-
the-spot  checks  by  the  Commission  and  Court  of  Auditors.  Among  other  things,  the 
beneficiaries  of the operations  are  obliged to file reports and financial statements.  These 
are analysed from the point of view of their content and the eligibility of the expenditure in 
line with the objective of Community  financing. 

The  anti-fraud  provisions  of  the  basic  budget  headings  apply  to  this  heading  too  when 
adapted to the case of the countries of Central and Eastern Europe. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified  objectives 

The aim of opening up SAVE II to the Slovak Republic is to bring it the same benefits as 
the Member States of the Community already enjoy from this  programme.  The essential 
should  be  to  enable  all  participating 
aim  of  Community  action  on  energy  efficiency 
countries  to  achieve  in  a  cost-effective  manner  a  prudent  and  rational  use  of  energy 
resources  in all  sectors, to  reduce  the negative impact of energy use  on the  environment 
and  to  contribute  to  a  better  security  of  energy  supply  and  to  sustainable  economic 
development. 

More, specific strategies and aims of the  programme are: 

rv 

-  to  strengthen  the  energy  efficiency 
infrastructure  in participating  countries  and  to 
encourage  investments  in  energy  efficiency  by  private  and public  consumers  and by 
industry. 

-to stabilize and reduce C02  emissions in accordance with Community goals 

-to  develop and pursue actions leading to the strengthening  of Community economic 
and  social  cohesion,  and  in  particular 
to  reduce  disparities  between  levels  of 
development of the various regions, wherein  energy should be an integral part of that 
effort. 

-  to  complement  other  programmes  for  the  use  and  promotion  of  new  energy 
technologies. 

-  to  improve  the  energy  intensity  of final consumption  by  a further  one  percentage 
point per annum over that which would have been otherwise attained. 

- to support local energy management programmes. 

-  to  ensure  that  actions  and  projects  are  subject  to  thorough  prior  appraisal  and 
systematic monitoring and evaluation. 

-to  insure  that  directives  on  energy  efficiency  such  as  those  concerning  labelling, 
minimum  efficiency  standards,  C02  reduction  (93/767EEC),  etc.  are implemented  in 
accordance with procedures set forth in said directives. 

9.2. Grounds for the operation 

-  Need for  Community financial  aid 

Given severe budgetary constraints in Slovakia, and the importance of the participation in 
Community programmes a part of the re-inforced  pre-accession strategy,, partial  financing 
of Slovakia's financial contribution by means of its Phare allocation is required. 

-  Choice of ways and means 

The Slovak Republic's integration in SAVE II will  put it on a basis similar to  the current 
EU Member States. The integration of Slovak nationals in Community networks will make 
a definite contribution to preparing the Slovak Republic for future membership. 

-  Main factors  of uncertainty which could affect the specific results of the operation 

Since projects will be selected according to qualitative criteria, it will  only be possible to 
measure the real impact on the basis of Slovak institutions' and firms' capacity to respond 
to  the  calls  for  proposal  for  actions  to  be  launched  by  the  Commission  under  the 
programme as set out in Section 6 of this financial statement. 

U 

9.3 Monitoring and evaluation of the operation 

The  monitoring  and  evaluation  procedures  included  in  SAVE  II  (notably  in  respect  of 
evaluation,  as  included  in  the  Article  5,  Paragraph  2  of  the  Decision  establishing  the 
programme) will also cover  operations financed for  Slovak beneficiaries.  This includes the 
submission  by the  selected  beneficiaries  of  a  report  to  the  Commission  on  a  six-monthly 
basis and on completion  of the project.  As described in Article 6 of this document,  certain 
monitoring and evaluation actions and measures are also eligible for programme subsidies. 

10. ADMINISTRATIVE  EXPENDITURE 

Actual  mobilisation  of  the  necessary  administrative  resources  will  depend  on  the 
Commission's  annual  decision  on  the  allocation  of  resources,  taking  into  account  the 
number  of  staff  and  additional  amounts  authorised  by  the  budgetary  authority  The 
supplementary  needs  can  not,  in  any  case,  préjuge  the  decision  that  the  Commission 
will need  to  take  concerning: 

the  request  of new  posts  in  the  framework  of the  APB 

a) 
b)  the  resources  allocation 

10.1  Overall 
participation  by  the  Slovak  Republic 

impact  on  the  number  of  posts,  calculated  on  the  basis  of 

Type  of  post 

required 

to 

including 

duration 

staff 

AddiUonal 
manage  the  operation 
Permanent 
posts 

Temporary 
posts 

Officials 
notation 
removed 
A 
C 
Other  resources 

TOTAL 

0.03 
0.02 

0.05 

using  existing 
of 
resources 
t he 
departments 
concerned 

using 
additional 
resources 

1998-2000 

0.03 
0.02 

0.05 

- 

- •* 

1998-2000 

10.2  Increase 
participation  by  the  Slovak  Republic  (in  ecu). 

in  other  yearly  and  total  operating  expenses  as  a  result  of 

Budget  heading  (No and  title) 

Yearly 
expenses 
1.012 

Total  for 
1998-2000 
3.036 

Al 1 7 8/  A23technical 
assistance 

A1300  missions 
A2500 
meetings 
technical  committees 

with 

1.500 
3.500 

4.500 
10.500 

A2510  compulsory  meetings 
with  SAVE  Committee 
Total 

4.500 

13.500 

10.512 

31.536 

fc 

Method  of  calculation 

Based  on  share  of 
total 
additional  cost  of  technical 
assistance. 
1  mission  per  year. 
Participation 
Slovak 
representatives  in  2  annual 
meetings. 
Participation  in  an  average 
of  3  meetings  per  year. 

by 

The above expenditure will be met from the receipts received from the Slovak Republic's 
own financial contribution to the Community programme. 

e% 

ISSN 0254-1475 

COM(98) 152 final 

DOCUMENTS 

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11  12  14  01 

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