Council Regulation (EC) No 1659/98 of 17 July 1998 on decentralised cooperation
Date: 1998-07-17
Institutions: Council of the European Union
Subjects: cooperation policy, decentralisation, developing countries, development aid

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Official  Journal  of  the  European  Communities

30.7.98

COUNCIL  REGULATION  (EC)  No  1659/98

of  17  July  1998

on  decentralised  cooperation

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

policy  objectives  of  the  Community  as  set  out  in  Article
130u  of  the  Treaty;

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

Whereas  administrative  procedures  should  be  established
accordingly,

Having  regard  to  the  proposal  from  the  Commission (1),

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189c  of  the  Treaty (2),

HAS  ADOPTED  THIS  REGULATION:

Whereas  decentralised  cooperation  is  a  new  approach  to
development  cooperation  which  places  the  agents  at  the
focal point of implementation and hence pursues the dual
aims  of  gearing  operations  to  needs  and  making  them
viable;

Whereas  the  importance  of  a  decentralised  approach  to
development  cooperation  has  been  emphasised  in  the
Fourth  ACP-EC  Convention,  Council  Regulation  (EEC)
No  443/92  of  25  February  1992  on  financial  and
technical  assistance  to,  and  economic  cooperation  with,
the  developing  countries  in  Asia  and  Latin  America (3),
and  the  Council  Resolution  of  27  May  1991  on
cooperation  with  NGOs  and  in  numerous  European
Parliament  Resolutions;

Whereas  the  budgetary  authority  decided  to  include  in
the  1992  budget  a  heading  for  the  promotion  of  this
approach  in  all  developing  countries;

financial  reference  amount,  within 

Whereas  a 
the
meaning  of  point  2  of  the  Declaration  by  the  European
Parliament, the Council and the Commission of 6 March
1995  on  the  incorporation  of  financial  provisions  into
legislative  acts (4)  is  included  in  this  Regulation  for  the
period  1999  to  2001,  without  thereby  affecting  the
powers of the budgetary authority as they are defined by
the  Treaty;

Whereas  decentralised  cooperation  is  intended  to  help
bring about a real change in the long term of the Union’s
development  cooperation  procedures;

Whereas  decentralised  cooperation  makes  an  important
contribution  to  achieving  the  development  cooperation

(1)  OJ  C  250,  26.9.1995,  p.  13.
(2)  Opinion  of  the  European  Parliament  delivered  on  15
December  1995  (OJ  C  17,  22.1.1996,  p.  460).  Council
Common Position of 5 November 1997 (OJ C 43, 9.2.1998)
and  Decision  of  the  European  Parliament  of  1  April  1998
(OJ  C  138,  4.5.1998).
(3)  OJ  L  52,  27.2.1992,  p.  1.
(4)  OJ  L  102,  4.4.1996,  p.  4.

Article  1

The  Community  shall  support  operations  and  initiatives
on  sustainable  development  undertaken  by  decentralised
cooperation agents of the Community and the developing
countries,  in  particular  those  designed  to  promote:

—  a  more  participatory  approach  to  development,
initiatives  of  the

responsive  to  the  needs  and 
populations  in  the  developing  countries,

—  a 

contribution 

reinforcement  of 
democracy  in  the  countries  concerned,

to 
civil 

the 

and
diversification 
society  and  grassroots

—  the  mobilisation  of  decentralised  cooperation  agents
in  the  Community  and  the  developing  countries  in
pursuit  of  these  objectives  within  the  structured
programmes.

All developing countries shall be eligible for operations to
promote  decentralised  cooperation.

Article  2

The  priority  fields  for  operations  under  this  Regulation
shall  be:

—  the  development  of  human  and  technical  resources
local  rural  or  urban  social  and  economic

and 
development  in  the  developing  countries,

—  information  and  the  mobilisation  of  decentralised

cooperation  agents,

—  support  for  strengthening  the  institutional  capacities

of  such  agents  and  their  capacity  for  action,

—  methodolical  back-up  and  follow-up  for  operations.

Article  3

The  cooperation  partners  eligible  for  financial  support
under  this  Regulation  shall  be  decentralised  cooperation

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local 

agents  in  the  Community  or  the  developing  countries,
non-governmental
authorities, 
namely: 
organisations, 
local
traders’  associations  and 
citizens’ groups, cooperatives, trade unions, women’s and
youth  organisations,  teaching  and  research  institutions,
churches and any non-governmental associations likely to
contribute  to  development.

local 

Article  4

1. Community financing of the operations referred to in
Article  1  shall  cover  a  period  of  three  years  (1999  to
2001).

The financial reference amount for the implementation of
this  programme  for  the  period  1999  to  2001  shall  be
ECU  18  million.

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

shall  determine 

2. The  budgetary  authority 
the
appropriations  available  for  each  financial  year,  taking
account  of  the  principles  of  sound  financial  management
referred  to  in  Article  2  of  the  Financial  Regulation
applicable  to  the  general  budget  of  the  European
Communities.

Article  5

1. The  instruments  to  be  employed  in  the  course  of  the
operations  referred  to  in  Article  1  shall  include  studies,
technical  assistance,  training  or  other  services,  supplies
and  works,  along  with  audits  and  evaluation  and
monitoring  missions.

2. Community  financing  may  cover  both  investment
expenditure,  with  the  exception  of  the  purchase  of
buildings,  and,  since  the  project  must,  if  possible,  aim  at
medium-term  viability,  recurring  expenditure  (including
administrative,  maintenance  and  operating  expenditure).

3. A  contribution  from  the  partners  defined  in  Article  3
shall  be  sought  for  each  cooperation  operation.  The
contribution  shall  be  requested  according  to  their  means
and  the  nature  of  the  operation  concerned.

4. Opportunities  may  be  sought  for  co-financing  with
other  fund  providers,  and  especially  with  Member
States.

5.
In  order  to  attain  the  objectives  of  coherence  and
complementarity  laid  down  in  the  Treaty,  and  with  the
aim of guaranteeing optimum efficiency of the totality of

these  operations,  the  Commission  may  take  all  necessary
coordination  measures,  including  in  particular:

(a)  the  establishment  of  a  system  for  the  systematic
exchange  and  analysis  of  information  on  operations
financed  or  for  which  financing  is  envisaged  by  the
Community  and  the  Member  States;

(b) on-the-spot  coordination  of  these  operations  by
regular  meetings  and  exchange  of
means  of 
information  between 
the
Commission  and  Member  States  in  the  beneficiary
country.

the  representatives  of 

Article  6

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

Article  7

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

2. Decisions  relating  to  grants  of  more  than  ECU  1
million  for  individual  operations  financed  under  this
Regulation  and  any  amendment  involving  an  increase  of
more  than  20 %  in  the  amount  initially  approved  for
such  an  operation  shall  be  adopted  under  the  procedure
laid  down  in  Article  8.

3. Project  and  programme  appraisal  shall  take  into
account  the  following  factors:

—  effectiveness  and  viability  of  operations,

—  cultural  and  social  aspects,  aspects  relating  to  equal
the

for  men  and  women,  and 

opportunity 
environment,

—  institutional  development  necessary 

to  achieve

objectives  of  the  operation,

—  experience  gained  from  operations  of  the  same  kind.

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

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

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

Article  8

the
1. The  Commission 
geographically  determined  Committee  competent  for
development.

assisted  by 

shall  be 

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

3.  (a)  The  Commission  shall  adopt 

the  measures

envisaged  which  shall  apply  immediately.

(b) However,  if  these  measures  are  not  in  accordance
with  the  opinion  of  the  Committee,  they  shall  be
communicated  by  the  Commission  to  the  Council
forthwith.  In  that  event:

Article  10

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

The  annual  report  shall  in  particular  give  details  on  the
decentralised  cooperation  agents  with  whom  contracts
have  been  concluded.

Every  three  months,  the  Commission  shall  inform  the
Member  States  of  the  operations  and  projects  approved,
stating  their  cost  and  nature,  the  recipient  country  and
partners.  This  information  shall  be  accompanied  by  an
Annex  clearly  setting  out  the  projects  or  programmes
which  exceed  ECU  1  million.

Article  11

targeted  by 

The  Commission  shall  make  regular  assessments  of
operations  financed  by  the  Community,  in  order  to
establish  whether 
these
the  objectives 
operations  have  been  attained  and  in  order  to  give
future
indications 
the
operations.  The  Commission  shall  submit 
Committee  referred  to  in  Article  8  a  summary  of
assessments  carried  out,  which  the  latter  may  examine
where  appropriate.  The  assessment  reports  shall  be
available  to  Member  States  requesting  them.

the  effectiveness  of 

improve 

to 

to 

—  the  Commission  shall  defer  application  of  the
measures which it has decided on for a period
of 
such
the 
communication;

one  month 

date 

of 

—  the  Council,  acting  by  a  qualified  majority,
may  take  a  different  decision  within  the  time
limit  referred  to  in  the  first  indent.

Article  12

Before  the  end  of  2000,  the  Commission  shall  submit  to
the  European  Parliament  and  the  Council  an  overall
assessment of the operations financed by the Community
under  this  Regulation,  accompanied  by  suggestions
concerning  the  future  of  this  Regulation.

Article  9

Article  13

The Committee referred to in Article 8 shall meet once a
year  to  discuss  general  guidelines  presented  by  the
Commission  representative  for  operations  in  the  year
ahead.

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

It  shall  apply  until  31  December  2001.

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

Done  at  Brussels,  17  July  1998.

For  the  Council

The  President

W.  RUTTENSDORFER