Proposal for a Council Decision on financing the fixed costs of the system of managing technical assistance for the ACP States and OCT
Date: 1998-06-15
Institutions: European Commission
Subjects: ACP countries, European Development Fund, development policy, overseas countries and territories, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.06.1998 
COM(1998) 369  final 

Proposal for a 

COUNCIL DECISION 

on financing the fixed costs of the system of managing 
technical assistance for the ACP States and OCT 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

The  European  Association  for  Cooperation  (EAC),  which  managed  the  provision  of 
technical  assistants and  other  experts in developing  countries  with funding  from  the  EDF 
and  the  budget,  is  currently  being  wound  up. 
It  is  to  be  replaced  by  two  private 
companies selected on the basis of an international  call for tender: 

-  GTZ  (Deutsche  Gesellschaft  fur  Technische  Zusammenarbeit  GmbH),  Eschborn, 

Germany; 

-  AGRER SA, Brussels, Belgium. 

GTZ  has  been  chosen  for  operations  in  Africa  and  the  Indian  Ocean.  It  will  have  sole 
responsibility  for  matters  within  the  remit  of  DG  VIII.  The  bulk  of  its  activities  will  be 
financed  by the EDF. 

AGRER has been  chosen to  cover the rest  of the world  and  experts  in humanitarian  and 
It  will  be  responsible  for  the  fields  managed  by  the 
food  aid  throughout  the  world. 
various  RELEX DGs. In the  case of DG  VIII, these fields are the  Caribbean  and  Pacific 
regions and food  security.  Its activities will be financed  mainly from  budgetary resources. 

These companies will provide the logistic framework.  Technical  assistance  contracts will 
be concluded between the Commission and technical assistants. 

The  financial  arrangements  are  identical  for  both  contracts,  which  will  be  signed  for  a 
period  of  two  years  and  will  be  renewable  once,  likewise  for  two  years.  These 
arrangements are: 

-  a fixed lump sum to cover operating costs 

GTZ 
ECU 2 563 440 

AGRER 
ECU 2 160 590 

variable  technical  assistance  costs  (technical  assistance  contracts  plus  6%  for 
management costs). 

Given the  scale  of its technical  assistance,  the  EDF will  have to  finance  over  90% of 
GTZ's  fixed  costs  and  less  than  10%  of  AGRER's  fixed  costs1.  The  total  cost  is 
estimated at ECU 5.5 million for four years. 

The fixed costs, unlike the variable costs, cannot be borne solely by the ACP States and 
OCT that  receive technical  assistance.  As the  system  is one that  benefits  all  recipient 
States,  the  structural  costs  should  be  borne jointly  by all  ACP  States  and  OCT  As 
technical  assistance  is provided  on  an irregular,  case-by-case basis,  spreading  the  cost 
among the ACP States and OCT receiving technical assistance could lead to their being 
charged costs which bear no relation to the actual services provided. 

These percentages were determined on the basis of allocations made in previous years. 

2 

Consequently, it is proposed  that these costs be financed  by revenue accruing from the 
deposited  funds  referred  to  in  Article  9(2)  of the  8th  EDF  Internal  Agreement  (EDF 
interest).  The Council must decide by a qualified  majority  on the use of this revenue, in 
accordance with the final paragraph of Article 9(2) of the 8th EDF Internal Agreement. 

PROPOSAL FOR A COUNCIL  DECISION 

on financing  the fixed costs of the system of managing 
technical assistance for the ACP States and OCT 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having regard to the  fourth  ACP-EEC Convention, signed at  Lomé on  15 December 
1989  and  amended  by  the  agreement  signed  in  Mauritius  on  4  November  1995, 
hereafter  called the "Convention"; 

Having regard to  Council  Decision  91/482/EEC of 25 July  1991 on the  association 
of the overseas countries and territories with the European  Community,  as amended 
by Decision 97/803/EC of 24 November  1997; 

Having  regard  to  the  internal  agreement  on  the  financing  and  administration  of 
Community  aid  under  the  second  financial  protocol  of  the  fourth  ACP-EEC 
Convention,  hereafter  called  the  "Internal  Agreement",  and  in  particular  Article 9 
thereof; 

Having regard to the Commission  proposal, 

Whereas  it  is  necessary  to cover,  for  a period  of  four  years,  the  fixed  costs  arising 
from  the  replacement  of  the  European  Association  for  Cooperation  (LAC)  for  the 
management of technical  assistance  for the ACP States and OCT; 

Whereas the revenue accruing  from  the interest on the deposited  funds  referred  to in 
Article 9(2) of the Internal Agreement would cover these fixed costs, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  sum  of  ECU  5.5  million  shall  be deducted  from  the revenue  accruing  from  the 
interest  on  the  funds  deposited  with  paying  agents  in  Europe  referred  to  in  Article 
319(4) of the Convention, to finance  the fixed  costs arising  from  the  replacement of 
the  European  Association  for  Cooperation  (EAC)  for  the  management  of  technical 
assistance  for the ACP States and OCT. 

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

Article 2 

Done at Brussels 

For the Council 

The President 

ISSN 0254-1475 

COM(98) 369 final 

DOCUMENTS 

EN 

11  01  09  15 

Catalogue number  :  CB-CO-98-384-EN-C 

ISBN  92-78-37160-2 

Office  for Official  Publications of the European  Communities 

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