Proposal for a  Council Decision concerning the exceptional use of interest from the European Development Fund for the financing of costs linked to the implementation of the devolution exercise in ACP countries for a transitional period
Date: 2001-07-09
Institutions: European Commission
Subjects: ACP countries, European Development Fund, devolution, financing of aid, interest

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 09.07.2001xxx
COM(2001) 383 final

Proposal for a

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(presented by the Commission)

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The Commission decided on 16 May 2000 to reform the management of external aid
programmes  as  part  of  the  global  reform  of  the  Commission  carried  out  under  the
authority of Mr Kinnock.

This  decision  brought  to  light  the  lack  of  human  resources  at  the  disposal  of  the
Commission  to  implement  external  aid.  The  elements  of  reform  linked  to  human
resources  consisted  of  reorganising  the  management  of  the  project  cycle,  a  major
devolution  of  activities  to  the  external  Delegations,  dismantling  the  Technical
Assistance  Offices  and  reintegrating  the  equivalent  human  resources  under  other
contractual arrangements.

The devolution exercise is aimed at improving the efficiency of aid management and
the  quality  of  operations.  Bringing  the  decision-making  closer  to  the  field  will
accelerate  the  programming,  identification  and  implementation  of  programmes  and
projects.  It  will  also  reduce  delays  and  administrative  circuits,  rationalise  the
utilisation  of  human  resources,  reduce  «ex-ante»  control  tasks,  make  the  relevant
officials  more  responsible,  and  strengthen  coordination  with  Member  States  on  the
spot.

In  its  letter  of  amendment  No  1  to  the  preliminary  draft  budget  for  2001,  the
Commission outlined its assessment of staff needs and administrative appropriations
required  in  order  to  match  the  Commission’s  activities  with  its  human  resources.
Taking  into  account  the  restructuring  and  redeployments  already  decided,  human
resources in the Commission were found to be 1 254 posts short, of which 574 (46%)
in the external relations services.

Initial assessments of the staffing requirements of the Delegations in the devolution
exercise  have  shown  that  each  delegation  will  require  on  average  between  10  and
15 additional staff (officials, external experts, external local staff).

The official posts must be found within part A of the Budget through restructuring,
redeployment and some of the additional posts requested in the letter of amendment
to the 2001 preliminary draft budget. The cost of the external experts and local staff,
on  the  other  hand,  will  be  borne  by  using  a  proportion  of  the  part  BA  lines  of
expenditure in the budget  relating to the delegation in  question,  e.g.  ALA,  MEDA,
TACIS, PHARE.

These arrangements cover the costs of external staff (including training, office costs,
and logistics such as informatics) for all Delegations except for those in ACP States,
whose  principal  task  is  the  management  of  aid  provided  through  the  European
Development  Fund  (EDF).  This  is  because  the  EDF  is  funded  separately  by  the
Member  States,  and  is  only  mentioned  as  a  «p.m.»  in  part  B  of  the  Commission
budget.

2

The Internal Agreement between the Member States on the 9th EDF specifically sets
aside a sum of  …(cid:20)(cid:21)(cid:24)(cid:3)PLOOLRQ(cid:3)RYHU(cid:3) (cid:24)(cid:3) \HDUV(cid:3)IRU(cid:3) FRVWV(cid:3) OLQNHG(cid:3) WR(cid:3)LPSOHPHQWDWLRQ(cid:3) RI(cid:3)WKH
9th EDF. However, additional funding is needed to finance the costs of the devolution
exercise  in  the  years  2001  and  2002,  prior  to  the  entry  into  force  of  the  Cotonou
Agreement. 7KH(cid:3)&RPPLVVLRQ(cid:3)SURSRVHV(cid:3)WR(cid:3)ILQDQFH(cid:3)SDUW(cid:3)RI(cid:3)WKH(cid:3)H[WUD(cid:3)FRVWV(cid:3)DULVLQJ
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The first phase of devolution, due to start in mid-2001, concerns 23 Delegations, of
which  six  (Dominican  Republic,  Ivory  Coast,  Kenya,  Mali,  Senegal  and  South
Africa)  are  ACP  Delegations.  Of  these,  South  Africa  can  be  discounted  for  the
purpose of this exercise, as it has its own line in part BA of the budget and does not
draw from the resources of the EDF.

The  second  phase  of  devolution,  which  it  is  envisaged  will  start  in  2002,  should
involve  another  31  Delegations,  eight  of  which  would  be  situated  in  ACP  States
(Benin,  Burkina  Faso,  Cameroon,  Guinea  (Conakry),  Madagascar,  Niger,  Tanzania
and Ethiopia).

The third  and final  phase  of devolution is scheduled  for 2003  and  should  comprise
the  remaining  31  Delegations  in  ACP  States,  i.e.  Angola,  Barbados,  Botswana,
Burundi,  Central  African  Republic,  Congo  (Brazzaville),  Democratic  Republic  of
Congo,  Eritrea,  Fiji,  Gabon,  Guinea-Bissau,  Guyana,  Haiti,  Jamaica,  Lesotho,
Malawi, Mauritania, Mauritius, Mozambique, Namibia, Nigeria, Papua New Guinea,
Rwanda,  Sierra  Leone,  Sudan,  Trinidad  &  Tobago,  Uganda    Zimbabwe,  Chad  and
Zambia.

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The extra costs created by the devolution exercise break down into three categories:

(1) 

(2) 

Increased  administrative  expenditure  in  the  Delegations  concerned  in  the
long-term, including the costs for additional officials in Delegations,

One-off costs linked to the devolution exercise, such as removal expenditure,
hardware installation, technical training etc, and

(3) 

Additional external personnel (experts and local staff).

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The  increased administrative  costs of running enlarged  Delegations will  have  to  be
borne by part A of the budget. This category includes higher general administrative
costs caused by the fact that more officials will be working in the field.

3

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There  are  extra  costs  linked  to  the  installation  of  devolved  Delegations,  such  as
installation of secure communication channels,  adaptation of existing  buildings and
renting  of  additional  buildings,  removal  expenditure,  adaptation  of  IT  systems  and
project management  systems,  etc.  These  costs  should  also  be  covered  by  part  A  of
the budget.

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The additional staffing needs in Delegations will to a large degree be met by external
contract  personnel.  In  this  category  of  expenses  falls  also  the  administrative
expenditure  linked  to  the  efficient  functioning  of  this  group  of  staff  (office  rental,
stationery  and  maintenance  expenses,  training,  contract  management…)  as  well  as
related equipment (computers, etc.)

These costs are estimated as follows (yearly average costs in euros):

Group 1 Individual Expert/ALAT

Group 1 Local Agent (LA)

Group 2 Local Agent

Group 3 Local Agent

:

:

:

:

120 000

50 000

32 000

26 000

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As noted above, Article 4 of the Internal Agreement between Representatives of the
Governments  of  the  Member  States,  meeting  within  the  Council,  on  the  financing
and administration of Community aid under the Financial Protocol to the Partnership
Agreement  between  the  African,  Caribbean  and  Pacific  States  and  the  European
Community and its Member States, signed in Cotonou (Benin) on 23 June 2000 and
the Allocation of Financial Assistance for the Overseas Countries and Territories to
which Part Four of the EC Treaty applies,1 provides that:

“An  amount  of  …(cid:20)(cid:21)(cid:24)(cid:3) PLOOLRQ(cid:3) VKDOO(cid:3) EH(cid:3) UHVHUYHG(cid:3) IRU(cid:3) WKH(cid:3) ILQDQFLQJ(cid:3) RI(cid:3) FRVWV(cid:3) OLQNHG(cid:3) WR
implementation  incurred  by  the  Commission  in  the  framework  of  the  ACP-EC
Agreement.”

Article 9(1)(b) of the 9th EDF Internal Agreement specifies further that this amount
can be used inter alia for

“reinforcing the administrative capacities of the Commission and  its  Delegations in
order  to  ensure  a  smooth  preparation  and  implementation  of  operations  financed
from the 9th EDF”.

1

OJ L 317 of 15 December 2000 (hereafter, the 9th EDF Internal Agreement).

4

                                                
Moreover,  Article  9(1)  clarifies  that  “such  assistance  shall  not  be  assigned  to  core
tasks of the European public service, i.e. the Commission’s permanent staff”.

Other  possible  activities  that  can  be  financed  from  these  resources  include
administrative and financial costs arising from the cash management of the EDF, as
well as the financing of studies, assessments, audits or consultancy services.

The financing of the devolution costs for external experts in ACP Delegations falls
within the scope of Article 9(1)(b) of the 9th EDF Internal Agreement as described
above. It is therefore possible to finance at least part of the costs for the devolution
exercise in ACP States from this source once the 9th EDF is established.

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Since  it  is  unlikely  that  the  9th  EDF  Internal  Agreement  will  be  ratified  and  enter
into force before mid-2002, a transitional solution for the financing of the devolution
exercise in ACP States needs to be found.

The Commission informs the Council that, as of March 2001, there were resources
amounting  to  …(cid:21)(cid:28)(cid:17)(cid:25) million  resulting  from  accumulated  interest  on  deposited  EDF
funds  in  the  EDF  general  treasury.2  Following  the  standard  practice  for  managing
EDF  resources,  this  interest  cannot  be  divided  between  the  6th,  7th  and  8th  EDFs,
but must remain physically inseparable in the EDF general treasury.

Article 9(2) of the 6th EDF “Internal Agreement on financing and administration of
Community aid”3 provides that “any other revenue” may be allocated by the Council,
acting by qualified majority on a proposal from the Commission.

Article 9(2) of the 8th EDF “Internal Agreement between the representatives of the
Government  of  the  Member  States,  meeting  within  the  Council,  on  financing  and
administration  of  the  Community  aid  under  the  Second  Financial  Protocol  to  the
fourth ACP-EC Convention”4 provides for a number of possible uses for the revenue
accruing  from  interest  on  the  funds  deposited  with  the  paying  agents  in  Europe.
However,  acting  on  a  Commission  proposal,  the  Council  may  decide  by  qualified
majority  to  use  the  revenue  referred  to  in  this  article  for  purposes  other  than  those
provided for in paragraph 2.

Article 9(2) of the 7th EDF “Internal Agreement on the financing and administration
of Community aid under the Fourth ACP-EEC Convention”5 does not explicitly spell
out a similar enabling clause for a Council Decision on the use of interest for other
purposes.

2

3

4

5

This  interest  has  accrued  on  funds  deposited  by  the  EDFs,  and  derives  from  the  balances  held  on
account  with  European  banks;  the  interest  payments  are  determined  by  service  contracts  between
DG Budget and these banking institutions.
OJ L 86 of 31 March 1986 (hereinafter, the 6th EDF Internal Agreement).
OJ L 156/108 of 29 May 1998 ( hereinafter, the 8th EDF Internal Agreement).
OJ L 229/288 of 17 August 1991 (hereinafter, the 7th EDF Internal Agreement).

5

                                                
In the light of the impossibility of separating the interest accrued to the 6th, 7th and
8th EDF,  the  lack  of  a  provision  in  the  7th  EDF  Internal  Agreement  enabling  the
Council to decide on the use of this interest would lead to use of the interest accrued
on all three EDFs being GH(cid:3)IDFWR blocked.

However, the impossibility of using this accrued interest would be incompatible with
the  intentions  of  the  Representatives  of  the  Member  State  Governments  who
explicitly made the Council responsible for deciding how it should be used in the 6th
and 8th  EDF  Internal  Agreements.  Moreover, the nature and  objectives of  all  three
EDFs  are identical. Therefore, the lack  of  a  clause  making  the  Council  responsible
for  deciding  on  the  use  of  such  interest  in  Article  9(2)  of  the  7th  EDF  Internal
Agreement would appears to be an accidental omission. On the basis that this lacuna
is  not  deliberate,  Article  9(2)  of  the  7th  EDF  Internal  Agreement  cannot  be
interpreted so as to prevent the Council from deciding on the use of interest accrued
on the 6th, 7th and 8th EDFs.

The Commission proposes that the Council decide to use part of the interest accrued
on  EDF  funds  held  on  deposit  to  contribute  to  the  financing  of  the  devolution
exercise for Delegations in ACP States during the transitional period. This solution is
coherent with the financing foreseen for devolution in the other regions of the world.

Specifically,  the  Commission  proposes  that  the  Council  decide  to  use  up  to
…(cid:21)(cid:22) 000 000 of the above amount to cover the following types of expenditure for the
13 Delegations concerned for a period of 2 years (from the end of 2001 to beginning
of  2003,  when  it  is  expected  that  funding  from  the  9th  EDF  will  have  been  made
available):6

(1) 

(2) 

Support  expenses  in  relation  to  programming,  identification,  preparation,
management,  follow-up,  audit  and  control  of  the  Commission’s  aid
operations in ACP  countries,  in  particular  costs  linked  to  the  recruitment  of
experts and local agents that will assist in handling these tasks.

Administrative  costs  as  far  as  these  are  directly  linked  to  the  efficient
functioning of the experts and local agents recruited, including the purchase
of  equipment,  the  temporary  renting  of  extra  office  space,  related  IT  costs,
etc.

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The  political  necessity  and  desirability  of  the  devolution  exercise  towards  the
Commission’s external Delegations is not in doubt. For all Delegations except those
in ACP States, the solution of using a proportion of the relevant part BA budget lines
has been accepted in principle. The fact that the EDF is not currently included in the
Commission budget spending appropriations is a technicality which the Commission
proposes to overcome by means of using the interest arising on EDF deposited funds.

6

The amount of …(cid:21)(cid:22) 000 000 has been calculated on the basis of an average additional staff of 8 level 1
experts (5 ALAT and/or IE + 3 AL Group 1), 2 level  2  Local  Agents  and  1  level  3  Local  Agent  per
Delegation, i.e. an average …(cid:27)(cid:23)(cid:19) 000 per Delegation per year. It also includes an amount of  …(cid:24)(cid:19)(cid:19) 000
for technical assistance to facilitate the devolution of the OLAS system, and a contingency reserve of
…(cid:25)(cid:25)(cid:19) 000 (estimated at …(cid:21)(cid:24) 000 per Delegation per year).

6

                                                
The estimated amount of the devolution costs for 2001/2002 period are based on the
assessment of human resources needed for proper management, on a devolved basis,
of  the  existing  and  forthcoming  portfolio  of  activities  of  the  ACP  Delegations
concerned.  In  this  context,  the  Commission  would  like  to  draw  attention  to  the
following:

– 

– 

during the first round of the devolution exercise, Commission departments will
have  to  manage  in  parallel  a  majority  of  Delegations  operating  under  the
current  system,  and  a  number  of  Delegations  in  a  learning  process  operating
under the new “devolved” system,

this  exercise  coincides  with  the  entry  into  force  of  the  Cotonou  Agreement,
which has a significant impact on the nature of tasks and responsibilities for the
ACP Delegations and their staff requirements in terms of numbers and profiles.

In the longer term, it is expected that the generalisation of the devolution, as well as
the rationalisation of the projects portfolio ( through reduction of backlog of former
EDF’s projects, concentrating programmes in focal sector, etc…), the strengthening
of  coordination  mechanisms  (including  co-financing)  and  the  simplification  of
procedures  and  modus  operandi  will  permit  a  reassessment  and  redeployment  of
resources needed for the management of the ACP cooperation between headquarters
and Delegations.

In addition, the Commission would emphasise that:

(1) 

(2) 

The  present  proposal  is  a  temporary  solution  to  cover  the  period  until  the
entry into force of the Cotonou Agreement, and the necessary provisions can
be made in the Part A of the Community budget.

No new funds are requested. The financing already exists and  is  not  needed
for other purposes.

7

Proposal for a

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THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the third ACP-EC Convention,

Having  regard  to  the  fourth  ACP-EC  Convention,7  as  revised  by  the  Mauritius  Agreement
signed on 4 November 1995,8

Having regard to the Internal Agreement of 19 February 1985 between the Member States on
financing and administration of Community aid,9 and in particular Article 9(2) thereof,

Having regard to the Internal Agreement of 16 July 1990 on the financing and administration
of  Community  aid  under  the  Fourth  ACP-EEC  Convention,10  and  in  particular  Article  9(2)
thereof,

Having regard to the Internal Agreement of 15 December 1995 between the Representatives
of  the  Governments  of  the  Member  States,  meeting  within  the  Council,  on  financing  and
administration of Community aid under the Second Financial Protocol to the fourth ACP-EC
Convention,11 and in particular, the second paragraph of Article 9(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

7

8

9

10

11

The Commission decided on 16 May 2000 to reform the management of external aid
programmes as part of the global reform of the Commission,

This  decision  highlighted  the  lack  of  human  resources  at  the  disposal  of  the
Commission to implement external aid,

OJ L 229, 17.8.1991, p.3.
OJ L 156, 29.5.1998, p.3.
OJ L 86, 31.3.1986.
OJ L 229/288, 17.8.1991 (hereinafter, the “7th EDF Internal Agreement”).
OJ L 156/108, 29.5.1998 (hereinafter, the “8th EDF Internal Agreement”).

8

                                                
(3)

(4)

(5)

(6)

(7)

(8)

The  elements  of  reform  linked  to  human  resources  include  reorganising  the
management of the project cycle and a major devolution of decision-making closer to
the  field  and  of  activities  to  external  Delegations.  The  objective  is  to  improve  the
efficiency of aid management  and the quality of operations, as well as accelerate the
programming, identification and implementation of programmes and projects,

In  this  context  it  is  necessary  to  strengthen  both  the  human  resources  as  well  as  the
physical infrastructure of the Commission’s external delegations,

In this process the costs for these personnel will be borne by using a proportion of Part
BA  lines  of  expenditure  in  the  budget  relating  to  the  programmes  outside  the  ACP
regions,

During  the  period  2001-2002,  13  of  the  Commission’s  ACP  Delegations  should  be
“devolved”,

The Internal Agreement on the financing and administration of Community Aid under
the Financial Protocol to the Partnership Agreement between the ACP States and the
European  Community  and  its  Member  States,  signed  on  14  September  2000,
hereinafter  referred  to  as  “the  9th  EDF  Internal  Agreement”,  and  in  particular
Articles 1(3),  4  and  9  thereof,  identifies  financial  resources  to  reinforce  the
administration capacities of the Commission’s Delegations for the implementation of
the operations financed from the 9th EDF,

Pending  the  entry  into  force  of  the  9th  EDF,  financial  resources  should  be  made
available from interest accrued to the funds deposited by the EDFs and now held in the
general treasury of the EDF, where it is physically inseparable, in accordance with the
provisions of the 6th, 7th and 8th EDF Internal Agreements,

HAS DECIDED AS FOLLOWS:

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An  amount  of  …(cid:21)(cid:22) 000 000  shall  be  reserved  from  interest  accumulated  on  deposited  EDF
funds  and  held  in  the  general  treasury  of  the  EDF,  for  the  financing  of  costs  linked  to  the
implementation of the devolution exercise in ACP States, as specified in Article 2.

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The  resources  referred  to  in  Article  1  shall  be  used  to  finance  the  following  types  of
expenditure:

(1) 

Support  expenses  in  relation  to  identification,  preparation,  management,  follow-up,
accounting, audit and control of the Commission’s aid operations in ACP countries, in
particular costs linked to the recruitment and stationing in Delegations of experts and
local agents that will assist in handling these “devolved” tasks and to the provision of
technical  support  to  the  “devolution”  of  the  Commission’s  computerised  on-line
accounting system (OLAS).

9

(2) 

Administrative costs, to the extent these are directly linked to the efficient functioning
of  the  experts  and  local  agents  recruited,  including  the  purchase  of  equipment,  the
temporary renting of extra office space, related IT costs and others.

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

Done at Brussels,

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10

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3ROLF\(cid:3)DUHDV(cid:11)V(cid:12)(cid:29)(cid:3)0DQDJHPHQW(cid:3)(&(cid:18)$&3(cid:3)&RPPXQLW\(cid:3)DLG

$FWLYLW\(cid:11)LHV(cid:12)(cid:29)(cid:3) 5HLQIRUFLQJ(cid:3) H[WHUQDO(cid:3) VXSSRUW(cid:3) VWDII(cid:3) LQ(cid:3) ’HOHJDWLRQV(cid:3) DV(cid:3) SDUW(cid:3) RI(cid:3) WKH(cid:3) GHYROXWLRQ
SURFHVV(cid:3)XVLQJ(cid:3)(’)(cid:3)LQWHUHVW

7,7/((cid:3)2)(cid:3)$&7,21(cid:29)(cid:3)’(92/87,21(cid:3)(;(5&,6((cid:3),1(cid:3)7+((cid:3)$&3(cid:3)67$7(6(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:16)(cid:21)(cid:19)(cid:19)(cid:21)

(cid:20)(cid:17)

(cid:21)(cid:17)

(cid:21)(cid:17)(cid:20)

(cid:21)(cid:17)(cid:21)

(cid:21)(cid:17)(cid:22)

a)

%8’*(7(cid:3)/,1((cid:11)6(cid:12)(cid:3)(cid:14)(cid:3)+($’,1*(cid:11)6(cid:12)(cid:29)(cid:3)(’)(cid:3),17(5(67

29(5$//(cid:3)),*85(6

7RWDO(cid:3)DOORFDWLRQ(cid:3)IRU(cid:3)DFWLRQ(cid:29)(cid:3)…(cid:21)(cid:22)(cid:3)PLOOLRQ(cid:3)IRU(cid:3)FRPPLWPHQW

3HULRG(cid:3)RI(cid:3)DSSOLFDWLRQ(cid:29)(cid:3)2FWREHU(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)–(cid:3)0DUFK(cid:3)(cid:21)(cid:19)(cid:19)(cid:23)

2YHUDOO(cid:3)PXOWL(cid:16)DQQXDO(cid:3)HVWLPDWH(cid:3)RI(cid:3)H[SHQGLWXUH(cid:29)

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (cid:11)VHH(cid:3)SRLQW(cid:3)(cid:25)(cid:17)(cid:20)(cid:17)(cid:20)(cid:12)

(financial

(…(cid:3)PLOOLRQ(cid:3)WR(cid:3)WKUHH(cid:3)GHFLPDO(cid:3)SODFHV(cid:12)

2002

2003

2004

2005 2006

Total

Year
2001
9.16

13.84

Commitments

Payments

1.131

9.715

10.374

1.780

23.00

23.00

b)

Technical  and  administrative  assistance  and  support  expenditure  (cid:11)VHH(cid:3) SRLQW(cid:3) (cid:25)(cid:17)(cid:20)(cid:17)(cid:21)(cid:12)(cid:3) (cid:16)
1RW(cid:3)DSSOLFDEOH(cid:3)(cid:16)(cid:3)(’)(cid:3)ILQDQFLQJ

Commitments

Payments

Subtotal a+b

Commitments

Payments

11

c)

Overall  financial  impact  of  human  resources  and  other  administration  expenditure
(cid:11)VHH(cid:3)SRLQWV(cid:3)(cid:26)(cid:17)(cid:21)(cid:3)DQG(cid:3)(cid:26)(cid:17)(cid:22)(cid:12)(cid:3)1RW(cid:3)DSSOLFDEOH(cid:3)(cid:16)(cid:3)(’)(cid:3)ILQDQFLQJ

Commitments/

Payments

TOTAL a+b+c

Commitments

Payments

(cid:21)(cid:17)(cid:23)

&RPSDWLELOLW\(cid:3)ZLWK(cid:3)ILQDQFLDO(cid:3)SURJUDPPLQJ(cid:3)DQG(cid:3)ILQDQFLDO(cid:3)SHUVSHFWLYH

[X] Proposal is compatible with existing financial programming.

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial
perspective.

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional
Agreement.

(cid:21)(cid:17)(cid:24)

)LQDQFLDO(cid:3)LPSDFW(cid:3)RQ(cid:3)UHYHQXH(cid:20)(cid:21)

[X] Proposal  has  no  financial  implications  (involves  technical  aspects  regarding

implementation of a measure).

OR

Proposal has financial impact - the effect on revenue is as follows:

Budget line Revenue

(…(cid:3)PLOOLRQ(cid:3)WR(cid:3)RQH(cid:3)GHFLPDO(cid:3)SODFH(cid:12)

Prior to
action
[year
n-1]

Situation following implementation of action

[n+1]

[n+2]

[n+3]

[n+4]

[n+5]

[Year
n]

D(cid:12)(cid:3)5HYHQXH(cid:3)LQ(cid:3)DEVROXWH(cid:3)WHUPV

E(cid:12)&KDQJH(cid:3)LQ(cid:3)UHYHQXH

(cid:3)D

12

For further information, see separate explanatory note.

12

                                                
(cid:22)(cid:17)

%8’*(7(cid:3)&+$5$&7(5,67,&6(cid:3)(cid:16)(cid:3)127(cid:3)$33/,&$%/((cid:3)(cid:16)(cid:3)(’)(cid:3)),1$1&,1*

7\SH(cid:3)RI(cid:3)H[SHQGLWXUH

1HZ

()7$
FRQWULEXWLRQ

&RQWULEXWLRQ
IURP
DSSOLFDWLRQ
FRXQWULHV

+HDGLQJ(cid:3)LQ
ILQDQFLDO
SHUVSHFWLYH

Comp/Non-
comp

’LII(cid:18)QRQ(cid:16)
GLII

YES/NO

YES/NO

YES/NO

1R

(cid:23)(cid:17)

– 

– 

– 

(cid:24)(cid:17)

(cid:24)(cid:17)(cid:20)

/(*$/(cid:3)%$6,6

Internal  Agreement  of  19  February  1985  on  the  financing  and  administration  of
Community aid under the Third ACP-EC Convention (Lome III),

Internal  Agreement  of  17  August  1991  on  the  financing  and  administration  of
Community aid under the Fourth ACP-EC Convention (Lome IV),

Internal  Agreement  of  29  May  1998  on  the  financing  and  administration  of
Community  aid  under  the  Second  Financial  Protocol  to  the  Fourth  ACP-EC
Convention (Lome IV).

’(6&5,37,21(cid:3)$1’(cid:3)*5281’6

1HHG(cid:3)IRU(cid:3)&RPPXQLW\(cid:3)LQWHUYHQWLRQ(cid:20)(cid:22)

(cid:24)(cid:17)(cid:20)(cid:17)(cid:20)

2EMHFWLYHV(cid:3)SXUVXHG

Adapting the organisation and redistribution of responsibilities between headquarters and the
Delegations  by  a  process  of  devolution  is  one  of  the  main  planks  of  the  development  aid
policy statement. Devolution must meet the major objective laid down in the communication
to the Commission on reform of the management of external aid, namely to improve the speed
and quality of the provision of Community aid.

The objective of the financing  is to  contribute to devolving the management of  Community
aid to the ACP States in 5 ACP Delegations in 2001 and 8 in 2002.

(cid:24)(cid:17)(cid:20)(cid:17)(cid:21)(cid:3)0HDVXUHV(cid:3)WDNHQ(cid:3)LQ(cid:3)FRQQHFWLRQ(cid:3)ZLWK(cid:3)ex ante eYDOXDWLRQ

On 16 May 2000 the Commission decided to reform the management of external aid as part of
the more general reform of the Commission.

The reform exercise revealed the direct and adverse impact of staff shortages on the speed and
quality  of  the  provision  of  Community  aid  and  showed  that  every  effort  must  be  made  to
remedy  this  situation.  The  second  aspect  that  emerged  was  the  need  to  get  closer  to  the
ground in order to improve the effectiveness and ownership of aid.

13

For further information, see separate explanatory note.

13

                                                
(cid:24)(cid:17)(cid:21)

$FWLRQV(cid:3)HQYLVDJHG(cid:3)DQG(cid:3)EXGJHW(cid:3)LQWHUYHQWLRQ(cid:3)DUUDQJHPHQWV

As regards the organisation and  redistribution of  responsibilities  between headquarters and the
Delegations,  the  programme  responds  to  the  guidelines  for  the  European  Community’s
development policy as adopted by the Council and Parliament in April 2000.

The aim of the devolution process is to facilitate the implementation of projects and programmes
in the ACP countries concerned. It must go together with a reinforcement of external contractual
staff in the Delegations and with ad hoc temporary technical support at headquarters to adapt
the  computerised  accounting  system,  supplementing  the  extra  permanent  Commission  staff
covered by the Commission budget.

(cid:24)(cid:17)(cid:22)

0HWKRGV(cid:3)RI(cid:3)LPSOHPHQWDWLRQ

The  appropriations  will  be  made  available  to  and  managed  by  the  Commission  as  part  of  the
devolution process, in accordance with the provisions of the financial regulation adopted by the
Council on 16 June 1998 and applicable to development financing cooperation under the Fourth
ACP-EC Convention (OJ L 191/53 of 7.7.1998).

(cid:25)(cid:17)

(cid:25)(cid:17)(cid:20)

),1$1&,$/(cid:3),03$&7

7RWDO(cid:3)ILQDQFLDO(cid:3)LPSDFW(cid:3)RYHU(cid:3)WKH(cid:3)HQWLUH(cid:3)SURJUDPPLQJ(cid:3)SHULRG

(cid:11)7KH(cid:3)PHWKRG(cid:3)RI(cid:3)FDOFXODWLQJ(cid:3)WKH(cid:3)WRWDO(cid:3)DPRXQWV(cid:3)VHW(cid:3)RXW(cid:3)LQ(cid:3)WKH(cid:3)WDEOH(cid:3)EHORZ(cid:3)PXVW(cid:3)EH(cid:3)H[SODLQHG(cid:3)E\
WKH(cid:3)EUHDNGRZQ(cid:3)LQ(cid:3)7DEOH(cid:3)(cid:25)(cid:17)(cid:21)(cid:17)(cid:12)

(cid:25)(cid:17)(cid:20)(cid:17)(cid:20)

)LQDQFLDO(cid:3)LQWHUYHQWLRQ

Commitments (…(cid:3)PLOOLRQ(cid:3)WR(cid:3)WKUHH(cid:3)GHFLPDO(cid:3)SODFHV(cid:12)

Breakdown
Action  1-  devolution  5

2001

2002

2003

2004

Delegations 

programmed

8.660

2001

Action  2-  devolution  8

Delegations 

programmed

13.840

2002

Action 

3 

- 

adaptation

0.500

computerised 

accounting

system

727$/ 9.160

13.840

Total

8.660

13.840

0.500

23.000

14

(cid:25)(cid:17)(cid:20)(cid:17)(cid:21)(cid:17)

7HFKQLFDO(cid:3) DQG(cid:3) DGPLQLVWUDWLYH(cid:3) DVVLVWDQFH(cid:15)(cid:3) VXSSRUW(cid:3) H[SHQGLWXUH(cid:3) DQG(cid:3) ,7(cid:3) H[SHQGLWXUH
(cid:11)FRPPLWPHQW(cid:3)DSSURSULDWLRQV(cid:12)(cid:16)

[Year
n]

[n+1]

[n+2]

[n+3]

[n+4]

Total

[n+5
and
subs.
Years]

1) 
administrative assistance:

Technical 

and

Technical 

a) 
offices

assistance

b)  Other 
administrative assistance:

technical 

and

- intra-muros:

- extra-muros:

RI(cid:3) ZKLFK(cid:3) IRU(cid:3) FRQVWUXFWLRQ
DQG(cid:3)
RI
PDLQWHQDQFH(cid:3)
FRPSXWHULVHG(cid:3) PDQDJHPHQW
V\VWHPV(cid:29)

Subtotal 1

2) Support expenditure:

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

727$/

15

(cid:25)(cid:17)(cid:21)(cid:17)

&DOFXODWLRQ(cid:3) RI(cid:3) FRVWV(cid:3) E\(cid:3) PHDVXUH(cid:3) HQYLVDJHG(cid:3) LQ(cid:3) 3DUW(cid:3) %(cid:3) (cid:11)RYHU(cid:3) WKH(cid:3) HQWLUH
SURJUDPPLQJ(cid:3)SHULRG(cid:12)(cid:20)(cid:23)(cid:3)(cid:16)

(cid:11):KHUH(cid:3)WKHUH(cid:3)LV(cid:3)PRUH(cid:3)WKDQ(cid:3)RQH(cid:3)DFWLRQ(cid:15)(cid:3)JLYH(cid:3)VXIILFLHQW(cid:3)GHWDLOV(cid:3)RI(cid:3)WKH(cid:3)LQGLYLGXDO(cid:3)PHDVXUHV(cid:3)WR(cid:3)EH
WDNHQ(cid:3)IRU(cid:3)HDFK(cid:3)RQH(cid:3)WR(cid:3)DOORZ(cid:3)WKH(cid:3)YROXPH(cid:3)DQG(cid:3)FRVWV(cid:3)RI(cid:3)WKH(cid:3)RXWSXWV(cid:3)WR(cid:3)EH(cid:3)HVWLPDWHG(cid:12)

Breakdown

Commitments (in …(cid:3)PLOOLRQ(cid:3)WR(cid:3)WKUHH(cid:3)GHFLPDO(cid:3)SODFHV(cid:12)

Type of
outputs
(projects, files)

1

Number of
outputs
(total for years
1…n)
2

Average unit
cost

Total cost
(total for years
1…n)

3

4=(2X3)

Action 1

(cid:16)(cid:3)0HDVXUH(cid:3)(cid:20)

(cid:16)(cid:3)0HDVXUH(cid:3)(cid:21)

Action 2

(cid:16)(cid:3)0HDVXUH(cid:3)(cid:20)

(cid:16)(cid:3)0HDVXUH(cid:3)(cid:21)

(cid:16)(cid:3)0HDVXUH(cid:3)(cid:22)

HWF(cid:17)

TOTAL COST

(cid:11),I(cid:3)QHFHVVDU\(cid:15)(cid:3)H[SODLQ(cid:3)WKH(cid:3)PHWKRG(cid:3)RI(cid:3)FDOFXODWLRQ(cid:12)

(cid:26)(cid:17)

,03$&7(cid:3) 21(cid:3) 67$))(cid:3) $1’(cid:3) $’0,1,675$7,9((cid:3) (;3(1’,785((cid:3) (cid:11)21&(
67$%,/,6(’(cid:15)(cid:3))25(cid:3)(cid:20)(cid:22)(cid:3)’(/(*$7,216(cid:12)

(cid:26)(cid:17)(cid:20)(cid:17)

,PSDFW(cid:3)RQ(cid:3)KXPDQ(cid:3)UHVRXUFHV

Types of post

Officials or
Temporary staff

A
B
C

Other human resources

Total

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
permanent posts

Number of
temporary posts

104 (level 1)
26 (level 2)
13 (level 3)

143

Description of tasks arising from the
action

,I(cid:3)QHFHVVDU\(cid:15)(cid:3)D(cid:3)IXOOHU(cid:3)GHVFULSWLRQ(cid:3)RI(cid:3)WKH
WDVNV(cid:3)PD\(cid:3)EH(cid:3)DQQH[HG

Support staff needed to strengthen
delegations’ capacities for
administrative and technical tasks
relating to the project cycle.

Total

104
26
13

143

14

For further information, see separate explanatory note.

16

                                                
(cid:26)(cid:17)(cid:21)

2YHUDOO(cid:3)ILQDQFLDO(cid:3)LPSDFW(cid:3)RI(cid:3)KXPDQ(cid:3)UHVRXUFHV

Type of human resources

Amount …

Method of calculation (cid:13)

Officials
Temporary staff

Other human resources

(specify budget line)

10 920 000

Cf: Footnote 6 to Explanatory
Memorandum

Total

10 920 000

The amounts are total  expenditure  for 12 months and 13 delegations, once the  situation  has
stabilised.

(cid:26)(cid:17)(cid:22)

2WKHU(cid:3)DGPLQLVWUDWLYH(cid:3)H[SHQGLWXUH(cid:3)GHULYLQJ(cid:3)IURP(cid:3)WKH(cid:3)DFWLRQ

Amount …

Method of calculation

Budget line
(number and heading)

2YHUDOO(cid:3)DOORFDWLRQ(cid:3)(cid:11)7LWOH(cid:3)$(cid:26)(cid:12)

A0701 – Missions

A07030 – Meetings
A07031 – Compulsory committees(1)
A07032 – Non-compulsory committees(1)

A07040 – Conferences

A0705 – Studies and consultations
Other expenditure (specify)

,QIRUPDWLRQ(cid:3)V\VWHPV(cid:3)(cid:11)$(cid:16)(cid:24)(cid:19)(cid:19)(cid:20)(cid:18)$(cid:16)(cid:23)(cid:22)(cid:19)(cid:19)(cid:12)

2WKHU(cid:3)H[SHQGLWXUH(cid:3)(cid:16)(cid:3)3DUW(cid:3)$(cid:3)(specify)

Total

The amounts are total expenditure for 12 months.

(1) Specify the type of committee and the group to which it belongs.

I.

II.

Annual total (7.2 + 7.3)

Duration of action

…

years
…

Total cost of action (I x II)

III.
(cid:11),Q(cid:3)WKH(cid:3)HVWLPDWH(cid:3)RI(cid:3)KXPDQ(cid:3)DQG(cid:3)DGPLQLVWUDWLYH(cid:3)UHVRXUFHV(cid:3)UHTXLUHG(cid:3)IRU(cid:3)WKH(cid:3)DFWLRQ(cid:15)(cid:3)’*V(cid:18)6HUYLFHV
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ZKHQ(cid:3) DGRSWLQJ(cid:3) WKH(cid:3) SUHOLPLQDU\(cid:3) GUDIW(cid:3) EXGJHW(cid:3) (cid:11)3’%(cid:12)(cid:17)(cid:3) 7KLV(cid:3) PHDQV(cid:3) WKDW(cid:3) ’*V(cid:3) PXVW(cid:3) VKRZ(cid:3) WKDW
KXPDQ(cid:3) UHVRXUFHV(cid:3) FDQ(cid:3) EH(cid:3) FRYHUHG(cid:3) E\(cid:3) WKH(cid:3) LQGLFDWLYH(cid:3) SUH(cid:16)DOORFDWLRQ(cid:3) PDGH(cid:3) ZKHQ(cid:3) WKH(cid:3) 3’%(cid:3) ZDV
DGRSWHG(cid:17)

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ZDV(cid:3)EHLQJ(cid:3)SUHSDUHG(cid:12)(cid:3)PXVW(cid:3)EH(cid:3)UHIHUUHG(cid:3)WR(cid:3)WKH(cid:3)&RPPLVVLRQ(cid:3)IRU(cid:3)D(cid:3)GHFLVLRQ(cid:3)RQ(cid:3)ZKHWKHU(cid:3)DQG(cid:3)KRZ
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H[HUFLVH(cid:15)(cid:3) D(cid:3) VXSSOHPHQWDU\(cid:18)DPHQGLQJ(cid:3) EXGJHW(cid:3) RU(cid:3) D(cid:3) OHWWHU(cid:3) RI(cid:3) DPHQGPHQW(cid:3) WR(cid:3) WKH(cid:3) GUDIW(cid:3) EXGJHW(cid:12)
LPSOHPHQWDWLRQ(cid:3)RI(cid:3)WKH(cid:3)SURSRVHG(cid:3)DFWLRQ(cid:3)FDQ(cid:3)EH(cid:3)DFFRPPRGDWHG(cid:17)

17

(cid:27)(cid:17)

)2//2:(cid:16)83(cid:3)$1’(cid:3)(9$/8$7,21

(cid:27)(cid:17)(cid:20)(cid:17)

)ROORZ(cid:16)XS(cid:3)DUUDQJHPHQWV

As  part  of  the  process  of  devolution  to  the  Delegations,  headquarters  will  conduct  regular
audits  to  check  the  quality  of  the  management  of  devolved  activities  and  especially
compliance with procedures.

(cid:27)(cid:17)(cid:21)(cid:17)

$UUDQJHPHQWV(cid:3)DQG(cid:3)VFKHGXOH(cid:3)IRU(cid:3)HYDOXDWLRQ

At  the  end  of  each  year  the  Commission  will  send  a  progress  report  to  the  EDF  Committee
covering the operations financed under this proposal.

(cid:28)(cid:17)

$17,(cid:16))5$8’(cid:3)0($685(6

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