WRITTEN QUESTION E-1623/99 by Gerhard Hager (NI) to the Commission. Emergency aid for Kosovo.
Date: 1999-09-15
Institutions: European Parliament, Provisional data
Subjects: Kosovo, award of contract, emergency aid, humanitarian aid, invitation to tender

C 219 E/12

Official Journal of the European Communities

EN

1.8.2000

(2000/C 219 E/016)

WRITTEN QUESTION E-1623/99

by Gerhard Hager (NI) to the Commission

(15 September 1999)

Subject: Emergency aid for Kosovo

As part of the reconstruction of Kosovo contracts worth millions have been awarded and they are, quite
rightly, financed by the EU. Efficient action is needed to relieve the most pressing problems. Nevertheless,
even with emergency aid there is no room for measures which are inappropriate, uneconomical or which
squander money.

Can the Commission answer the following questions:

1. What procedure is being used for awarding contracts for reconstruction?

2. How long do the contracts have to be published before they are actually awarded?

3. Where can information on these contracts be obtained?

4. What are the objective criteria for awarding these contracts?

5. How many EU project managers are involved in the Kosovo reconstruction programme?

6. How many individual projects are there for the reconstruction of Kosovo financed by the EU?

7. What is the level of costs for individual projects?

Answer given by Mr Patten on behalf of the Commission

(19 October 1999)

The Commission has established a task force for Kosovo (TAFKO) for the implementation of reconstruc-
tion and structural assistance. The task force is composed of a team of 21 Commission officials with a
group of experts and local staff, making all together currently more than 40. Delegated authority for the
signature of contracts and payment orders has been given to the head of the task force. The award of
contracts will be carried out in accordance with the Obnova financial regulation.

For a company to participate it must be registered in a Member State of the Community or in one of the
Obnova beneficiary countries. Companies of countries benefiting from the PHARE programme may also be
authorised on a case-by-case basis. Possible implementation of the first Community contributions is
foreseen through local companies or those of the immediate surrounding region in order to ensure speedy
delivery of assistance as well as to help restart the local economy.

International tenders will be published in the relevant Community publications and in particular on the
website of the Community and the World Bank http://www.seerecon.org. All projects financed by the
Community are identified in close collaboration with the United Nations interim administration in Kosovo
(UNMIK) administration and Kosovo force (KFOR).

Humanitarian assistance to the region (specifically relating to the Kosovo crisis) provided through ECHO
has been up to now € 378 million. Also € 10 million of projects were initiated in 1998 for the benefit of
the Kosovo province,
feed and the
reconstruction of Pristina University.

focussing on emergency rehabilitation (timber supply), animal

The total budgetary allocation for TAFKO activities in Kosovo during 1999 is € 137 million of which
€ 46 million has been committed to date on the International management group (IMG) damage
assessment (€ 3,5 million), the administrative and technical assistance (ATA) facility (€ 6 million), to
provide technical support, procurement for rehabilitation of dwellings and public buildings which will
permit the shelter of a maximum number of returnees (€ 14 million), support to essential public utilities
(repairs, salaries, equipment, € 9 million), demining (€ 4 million), to help restore a customs service
(€ 3 million), small scale operations for rapid response to local initiatives (€ 1 million), village employment
and rehabilitation programme (VERP) to address the high level of unemployment and the effects of the war
(€ 4,5 million) In addition, a project, of high importance and symbolic value, has been launched, the
rehabilitation of Mitrovica hospital (€ 1 million).

1.8.2000

EN

Official Journal of the European Communities

C 219 E/13

Priorities for a third tranche of
Commission and UNMIK. Main priorities include public administration,
development.

funding under 1999 programme have been identified between the
infrastructure and economic

(2000/C 219 E/017)

WRITTEN QUESTION E-1628/99

by Antonio Tajani (PPE-DE), Francesco Fiori (PPE-DE),
Giuseppe Gargani (PPE-DE), Stefano Zappal(cid:224) (PPE-DE), Raffaele Fitto (PPE-DE),
Guido Viceconte (PPE-DE) and Guido Podest(cid:224) (PPE-DE) to the Commission

(15 September 1999)

Subject: Canal Plus-ENEL agreement: entry of the largest public electricity group into the world of digital

television

In the context of the Canal Plus-ENEL agreement, ENEL, the Italian electricity board, has subscribed to a
30 % share in Telepiø, involving a disbursement of some 900 billion lire. At the same time, ENEL has
increased its charges so that each family now has to pay over a million lire more per year.

What is the Commission(cid:146)s view of the entry of the largest public electricity group into the world of digital
television?

Can the Commission ascertain the grounds for such a decision, the criteria adopted and the reasons for not
investing capital in other economic sectors?

Does it consider it acceptable for a state-owned enterprise to invest public capital in a venture whose
prospects and financial situation are still uncertain, creating an image and awareness among the European
public that public funds are being appropriated for an investment that is risky to say the least?

Does it believe that the simultaneous increase in electricity charges to offset expenditure that is totally
unrelated to the energy sector is justifiable?

Can the Commission check whether similar cases have arisen in other EU Member States?

Lastly, can the Commission assess whether the Canal Plus-ENEL affair can be considered from a market
viewpoint or whether it impedes free competition? Can it also ascertain whether there are limits to the
financial activity of a state-owned enterprise in a free market, especially alongside another state-owned
enterprise, RAI TV?

Answer given by Mr Monti on behalf of the Commission

(18 October 1999)

The Commission, under Article 295 (ex-Article 222) of the EC Treaty, is not competent to assess the
choices of a Member State regarding the ownership of undertakings. Therefore, it is not competent to
assess the industrial logic of the investment decisions adopted by public or private companies, nor possible
diversification strategies chosen by them.

Under state aid rules, no state aid can be detected when investments are made in circumstances that would
be acceptable for a private investor operating under normal market economy conditions, i.e. when the
expected return on the investment is comparable with the one a private investor operating in market
economy would have required, taking into account the risk of the investment itself. The Commission has
requested the Italian authorities to provide preliminary information on ENEL(cid:146)s acquisition of Telepiø, in
order to assess the possible presence of State aid.

In particular, the Commission will ensure that ENEL(cid:146)s investment in Telepiø does not benefit from cross-
subsidies deriving from the reserved activities of ENEL in the electricity business.