Communication from the Commission to the European Parliament, the Council and the Court of Auditors financial analysis of the 6th, 7th and 8th European Development Funds - 2000
Date: 2001-08-22
Institutions: European Commission
Subjects: European Development Fund, balance sheet, financial analysis, financial year

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.8.2001
COM(2001) 479 final

COMMUNICATION FROM THE COMMISSION
TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND
THE COURT OF AUDITORS

FINANCIAL ANALYSIS OF THE 6TH, 7TH AND 8TH EUROPEAN
DEVELOPMENT FUNDS
- 2000 –

TABLE OF CONTENTS

1.

2.

3.

4.

5.

5.1.

5.2.

6.

6.1.

6.2.

7.

7.1.

7.2.

7.3.

7.4.

8.

Introduction.............................................................................................................. 3

General trends .......................................................................................................... 3

Development cooperation ......................................................................................... 4

Sectoral breakdown .................................................................................................. 5

Debt and support for structural adjustment................................................................ 8

Debt ......................................................................................................................... 8

Structural adjustment facility .................................................................................... 8

Stabex and Sysmin ................................................................................................... 9

Stabex ...................................................................................................................... 9

Sysmin special financing facility ............................................................................ 10

Other areas of cooperation...................................................................................... 10

Rural Development................................................................................................. 10

Agriculture ............................................................................................................. 11

Sustainable development and environment ............................................................. 12

Risk capital............................................................................................................. 12

Old or dormant commitments ................................................................................. 13

2

1.

INTRODUCTION

€

After years of intense discussion following publication of the Commission Green
Paper on relations between the European Union and the ACP countries in 1996,
negotiation of the new ACP-EU partnership agreement was completed in 2000 and it
was signed in Cotonou on 23 June. The Cotonou Agreement provides the ACP
countries with financial resources totalling
25 billion over the period 2000-2007.
9.9 billion represents the
13.5 billion while
The 9th EDF has been allocated
€
balance outstanding from previous EDFs and
1.7 billion comes from the EIB's own
resources. The Agreement will enter into force once it has been ratified by all the
Member States and at least two thirds of the ACP countries. However, in accordance
with the Decision of the ACP-EC Council of Ministers of 27 July 2000 regarding
transitional measures valid from 2 August 2000, most of the provisions of the
Cotonou Agreement entered into force early, with the exception of the financial
resources of 9th EDF. The ratification procedure is under way.

€

€

2.

GENERAL TRENDS

AGGREGATE TOTAL

ANNUAL FIGURES

inthousands
ofEuro

EDF

As at
31/12/00

% of
appropriation

1996

1997

1998

1999

2000

of which

DECISIONS

TOTAL

ASSIGNED
FUNDS

TOTAL

PAYMENTS

Total

NIPs

Reg.coop

6

7

8

6

7

8

6

7

8

7.496.083

96%

(53.008)

24.216

(44.644)

(22.719)

29.811

35.116

-6.916

10.754.495

93%

1.017.873

591.769

116.834

205.290

113.870

95.086

-1.994

8.348.082

63%

2.224.097 2.510.248 3.613.736

1.081.055 441.613

26.598.660

964.865

615.985 2.296.287 2.692.819 3.757.417

1.211.257 432.703

7.258.510

9.363.127

3.796.288

20.417.925

7.136.123

8.499.377

1.980.296

93%

81%

28%

91%

74%

15%

120.457

109.117

563.444

66.889

30.641

17.006

10.227

1.259.557

852.298

563.443

350.166

294.741

160.324

69.134

893.967

931.547 1.970.775

426.754 142.359

1.380.014

961.415 2.020.854 1.348.602 2.296.157

604.084 221.720

199.131

173.843

153.872

103.771

100.838

64.114

18.809

1.118.250

1.038.852

819.131

627.066

478.191

279.544

91.158

466.621

544.540

969.135

177.330

87.071

TOTAL

17.615.796

1.317.381

1.212.695 1.439.624 1.275.377 1.548.164

520.988 197.038

APPROPRIATIONS (in thousands of Euro) 6th EDF : 7.829.081 - 7th EDF : 11.514.969 - 8th EDF : 13.345.115

.

The upswing in EDF activities has continued in 2000:
3 757 million in decisions
representing the highest level ever reached for the EDF and most of the performing
countries running out of resources by the end of the year. Also contributing to this
achievement is the decision taken on the debt-relief initiative for heavily indebted
countries: HIPC-Initiative –

1 000 million.

€

€

4 250 million), but
These results represent 85% of the initially projected amount (
correspond to the figures presented by Commissioner Nielson at the Development

€

3

Council’s meeting in November 2000. It should be noted as well that those countries
that still have resources are often facing difficulties in preparing sound projects.

€

With payments standing at
1 548 million, the implementation of the EDF in 2000
represents an increase of 21% over 1999, but is well below the forecast presented in
September 2000 (

2 025 million): an implementation rate of 76% of the forecast.

€

The results regarding the assigned funds, the translation of decisions into contracts,
are particularly positive and represent an increase of 70% over 1999.

A part of the lower than expected implementation rate for the payments in 2000 may
be attributed to the low level of the assigned funds in 1999. But payments,
corresponding to the implementation of contracts, should increase substantially in
2001, taking into account the high level of assigned funds in 2000.

€

604 million and

More specifically, commitments under national and regional programmes advanced
significantly in 2000, with respectively
432 million in decisions,
€
€
221 million in assigned funds. This confirms the general trend in
EDF activities. Given the deferred cycles of decisions, commitments and payments
than
in a five-year programming cycle, payments were significantly lower
commitments in 2000. This should reverse during 2001 and 2002, when financing
decisions taken in 1999 and 2000 will lead to increased implementation.

1 211 million and

€

The domestic situation in the recipient countries constitutes, as always, an important
factor in the fulfilment of the forecasts; these have been negatively affected by the
situation in Côte d'Ivoire, Togo, Fiji, Haiti, Liberia and the Great Lakes region.

3.

DEVELOPMENT COOPERATION

Continuing the same exercise as in 19991, the Commission conducted a mid-term
review in 2000 of development cooperation with 35 countries2. The review was
based on a number of predetermined performance criteria and on macro-economic,
sectoral and budget management criteria. This cooperation was deemed satisfactory
or less satisfactory but making progress in 22 countries, which were able to receive
the whole of the second tranche for their indicative programmes. Eight countries
failed to meet the criteria and were therefore unable to obtain the second tranche. The
remaining five countries which had not met all the criteria received part of the
second tranche for their indicative programmes.

€

In 2000, seventeen ACP countries and one region received additional resources (third
tranche) for national and regional indicative programmes under the 8th EDF. A total
125.6 million was allocated to countries which had registered a sound
of
performance in terms of
the absorption of appropriations and quality of
implementation and which had committed all or virtually all of their initial allocation
under the 8th EDF.

1

2

In 1999, there were mid-term reviews of eight countries, for which it was decided to grant the whole of
the second tranche for the National Indicative Programme.
35 decisions by the EDF Committee in 2000. Cooperation was suspended with ten countries, 17 small
countries received the whole amount of the NIP in a single tranche and one country did not sign its NIP
until 2001.

4

4.

SECTORAL BREAKDOWN

The sectoral breakdown shown in the figure below combines the figures for the 6th,
7th and 8th EDFs.

Over 27% of commitments in 2000 were for debt-related projects, following the
decision by the ACP-EC Council of Ministers to allocate
1 000 million in
exceptional assistance for the heavily indebted ACP countries3.

€

Commitments for infrastructures and social and economic services fell sharply
compared with 1999, but still accounted for a quarter of the projects.

Percentage breakdown of commitments by OECDsector

2000 - 6th, 7th and 8th EDFs

30%

27,90%

24,60%

25%

27,40%

22,27%

1999
2000

19,37%

15,15%

15,08%

14,02%

10,74%

6,55%

7,19%

5,91%

Social Infrastr.
& services
(1)

Economic Infrastr.
& services
(2)

Product. Sectors
(3)

Multisector
(4)

Commodity
aid & general
prog.assistance
(5)

Action
relating
to debt
(6)

Emergency
and food aid
(7)

Others
(8)

Unallocated/
Unspecified
(9)

0,00%

0,00%

1,09%

0,49%

0,39%

1,86%

Education, health, population, water distribution and treatment, infrastructures and social services such as housing
and employment
Transport and storage, communications, energy, banks and financial services
Agriculture, industry, trade and tourism
Multisectoral aid, environment, biological diversity, rural and urban development
Structural adjustment, aid in the form of products (budget support, import subsidies), government and civil society
Projects relating to debt
Food aid, emergency aid and aid for refugees
Administrative costs
Unspecified sectors, awareness of development issues

20%

15%

10%

5%

0%

.

(1)

(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)

.

3

OJ L 103 (April 2000).

5

Activities during the year 2000

REGIONAL INTEGRATION

The objective of the Commission’s regional support is to promote sustainable social and
economic development through enhanced cooperation and integration, especially trade and
market
regional organisations
representing the ACP countries.

integration. The Commission works with a variety of

In West Africa, reinforcement of the process of integration and regional cooperation through
the eight-member Union Economique et Monétaire Ouest-Africaine (UEMOA) and the larger
Economic Community of West African States (ECOWAS) should lead to new possibilities for
growth. The PARI 2 programme (Programme Régionale d’Appui à l’Intégration) is a second
support programme for the UEMOA and amounts to
65 million. It was signed in March
2000 and is focused on capacity building in the national administrations to implement
reforms, support to the UEMOA and to other institutions.

€

For the Central African Region, with its Communauté Economique et Monétaire (CEMAC)
and the Communauté Economique des Etats de l ‘Afrique centrale (CEEAC), EDF support in
the past has been limited for political and economic reasons. However, it was decided in
principle to provide technical assistance to CEMAC to enable it to work on regional and
commercial integration. It is hoped therefore that progress may now be made.

In Eastern and Southern Africa, COMESA (Common Market for East and Southern Africa)
is the biggest regional player, with its 20 members, the launching of a free trade area in
October 2000 and the objective of a customs union by 2004. It has an active and generally
successful programme of promotion of regional integration through trade development. Not
surprisingly, therefore, the Commission has a large and varied programme of support for
COMESA amounting to
46.7 million. (See annex for details.) The Commission also
provides technical support to IGAD (the InterGovernmental Authority on Development) and
to the East African Community, with which COMESA cooperates.

€

In Southern Africa,
the current SADC (Southern Africa Development Community)
programme includes a statistical project and preparation of a new capacity building project
implementation of the trade and transport
with five components: regional
protocols,
communication
setting
technology/management information systems and statistics. Assistance to the legal sector to
develop rules for the SADC Tribunal has been completed and the report produced will serve
as the basis for setting up this Tribunal, which will be a first in trade integration in Africa.

integration,
SADC

information

tribunal,

and

up

a

For the island regions, cooperation continued through CARIFORUM (ACP Forum of
Caribbean States), CARICOM (Caribbean Community), the Indian Ocean Commission and
1.3
the South Pacific Forum Secretariat. A "Strategic Planning in Public Services" project of
million began in 1999 to improve the ability of national CARIFORUM public services to
formulate and manage their policies. It has started well, with operational links established
4 million Caribbean Regional
with Haiti
Anti-Money-Laundering Programme, based in Trinidad, became fully operational in 2000 and
provides assistance to most CARIFORUM countries.

the Dominican Republic. A

and

€

€

Lastly, for the PALOP countries (Pays Africaines Langue Officielle Portugaise - (Angola,
Cape Verde, Guinea Bissau, Mozambique and São Tomé & Principe), work in the year 2000

6

in the institutional field consisted of preparing programmes of legal, administrative and
statistical support.

In 2000, regional funds set aside for Intra-ACP Cooperation were mainly used for training
and providing information on the Cotonou Agreement and on adaptation to the requirements
of the World Trade Organisation. Thus, six seminars were held in different countries across
the ACP world in order to inform partners of the implications of the Cotonou Agreement and
to assist with the programming of future EDF support; eight training seminars on adapting to
the new trade rules were also organised and two meetings of Trade Ministers, including one in
Gabon in November 2000. Funds were also granted towards various other conferences,
ranging from EXPO 2000 in Hanover to a seminar on the Internet in Mali. In the immediate
future, work will continue on the adaptation of ACP countries trade systems to the global
market and on training in use of the new technologies – two elements of vital importance for
ACP countries.

INSTITUTIONAL SUPPORT

In most ACP countries, technical assistance to the National Authorising Officer is being
provided by the Commission to help them with the management of EDF and other donor
funds and to train the national staff to take over these activities themselves in the future.

The following are some interesting examples of the types of institutional project that the
Commission is supporting.

In Burkina Faso, the Commission is playing a major role in supporting the Government in its
programme of legal reforms, through carrying out a detailed study of the needs, which led to
the decision not only to continue support to these reforms but also to set up a fund to support,
as appropriate, representative political institutions, the electoral system, civil society (in
particular, human rights and the media) and the participation of women in public affairs. This
€

16 million programme is just starting.

in 2000,

the Commission began a wide-ranging programme in support of
In Mali,
decentralisation by the Government to 682 communes, with the objective of improving the
services provided by the communes to the very poor. The programme aims to help the
communes deliver the public services that are legally their responsibility. A network of advice
centres is being set up to assist the communes, as well as a national fund for investment in the
39 million. This
communes. The programme is due to last five years and amounts to
programme is complemented by another which will specifically focus on filling the gap (the
continuum) between emergency and longer-term development aid in the northern areas of
Mali, where the Tuaregs had been the beneficiaries of emergency aid that is now stopping.

€

One important
landmark in EU relations with Africa was the signing and provisional
application of the Trade Development and Cooperation Agreement with South Africa from
360 million is due to be committed over the years 2000-
1 January 2000. A minimum of
2002, including support to democratisation, protection of human rights and sound public
management as one priority.

€

€

In Malawi, an
8.5 million project for the "Promotion of the Rule of Law and Justice" is
providing training and technical resources to institutions such as the Ministry of Justice, the
Judiciary, the Law Faculty, the Law Commission and the Prisons Service, as well as ancillary
institutions such as the Anti-Corruption Bureau, the National Compensation Tribunal and the
National Archives. It was one of the first Commission programmes with an ACP country in

7

the area of legal reform and, not surprisingly, a complex one. The programme is being
adapted as it progresses to take account of lessons learnt and it could prove a helpful model
for future projects in the legal sector.

€

In Haiti, despite a difficult political situation, a
4.44 million project started in 1999 in
support of governance in the education sector and is due to last three years. It has already
largely achieved its objectives of restructuring the Education Ministry, making management
improvements and carrying out work on decentralisation. The Government made a
contribution to this project of
240 000 and the private sector participated since they are
heavily involved in the provision of education.

€

Future Perspectives

With the Cotonou Agreement as the basis for the Commission’s development work, will
continue with and expand its activities in the areas of regional integration and institutional
support in the ACP countries. Increasing emphasis will be placed on these issues in the
context of other programmes, such as support to a sector where good governance is essential
and trade development programmes. However, such reforms and changes are far-reaching;
they take time and a large amount of effort by all concerned. Furthermore, the results cannot
be seen overnight. However, with time and the will to achieve, the strengthening of regional
groupings in the ACP countries should better enable them to play a larger role in the global
economy, whilst within ACP countries themselves, improvements in governance should be to
the benefit of whole populations and thereby help bring greater prosperity.

5.

DEBT AND SUPPORT FOR STRUCTURAL ADJUSTMENT

5.1.

Debt

As in the Lomé Convention, ACP-EC cooperation under the Cotonou Agreement
recognises the seriousness of the problem of international debt and its repercussions
on economic growth (Article 66). The HIPC4 initiative totalling
1 billion was
launched in response to this concern.
€

In July 2000, an initial tranche of
Fund, was released to the African Development Bank. At
Commission made an initial payment of
EIB for relief to ACP HIPC in respect of debts to the Community.

250 million, the contribution to the HIPC Trust
the
100 million to the Trust Fund opened at the

the same time,

€

€

5.2.

Structural adjustment facility

Volume

€

In 2000, financing decisions in support of structural adjustment programmes (all
sources - SA and NIP) totalled
570 million, allocated to 19 ACP countries. Of this
460 million came from the structural adjustment facility; the remainder was
total,
covered by the indicative programmes. At the end of 2000, payments thus came to
€

€

€

179 million, of which

147 million was for structural adjustment.

4

Heavily indebted poor countries.

8

Type

In 2000 the Commission presented a communication to Council and Parliament on
Community support for economic reform programmes and structural adjustment. In
its resolution of 18 May 2000, the Council welcomed the balanced assessment made
by the Commission, highlighting both the positive results and the limits to
Community action. It encouraged the Commission, on the basis of its proposals, to
continue implementing the new approach that was gradually developed this year for
certain ACP countries.

Under this approach, the Community's macro-economic assistance takes the form of
support for the Poverty Reduction Strategy Papers (PRSPs), with close attention
given to the results of poverty reduction policies and the quality of budget
management. The support programmes are targeted less on given areas of
expenditure, but take account of the improvement in the management of public
finances and the fight against corruption. The Commission therefore focuses on
improving social services, the sound management of public finances, strengthening
the country’s supervisory capacities, consulting civil society, developing instruments
to assess the quality of budgetary management (public spending reviews, audits) and
on adjusting aid according to the results obtained, without however penalising the
poorest countries. The impact of these activities on the population is gauged by
appropriate indicators. This approach is generally shared by the international aid
community. The Commission realises that these are ambitious policies. This is a
and
close
requires
long-term operation that
complementarity and coherence with the Member States’ operations.

collaboration with the BWI

6.

STABEX AND SYSMIN

These instruments from the Lomé Convention have not been taken over in the
Cotonou Agreement. They have been replaced by indicative financial allocations to
mitigate the harmful effects of erratic export earnings. These instruments were
therefore applied for the last time in 2000.

6.1.

Stabex

The Commission adopted the following transfer decisions in 2000:

– On 24 July 2000, 21 ACP countries received 29 transfers for the 1999 year of
application; after consultations under Articles 202 and 203 of the Convention the
total amount of eligible transfers came to almost

236 million.

€

– On 27 December 2000, three ACP countries received three transfers for the 1998
year of application and two ACP countries received two transfers for the 1999
year of application; after consultations under Articles 202 and 203 of the
Convention the total amount of these transfers came to almost

67 million.

€

– On the same date,

the Commission took a decision on the volume of the
unexpended balances arising under the second Financial Protocol (Article 195
point (a) of the Convention) to be earmarked for 27 ACP countries, a total of
almost

71 million.

€

9

On 26 September 2000 the ACP-EC Committee of Ambassadors decided to set up a
reserve to finance, before 31 December 2000, Stabex transfer decisions for the 1998
and 1999 years of application (
168 million) and to repay the balances under the
second Financial Protocol (
72 million under Article 195a of the Lomé Convention).
On 31 December 2000, the funds remaining in the reserve5 were to be transferred to
the general reserve for the 8th EDF to be set up in accordance with ACP-EC Council
of Ministers Decision No 1/2000 of 27 July 2000.

€

€

6.2.

Sysmin special financing facility

The year's efforts were concentrated on the surveys to identify the countries eligible
form the amounts available under the transitional measures.

ACP-EC Committee of Ambassadors Decision No 3/2000 of 26 September 2000
fixed the balance of the Sysmin facility at almost
411 million. According to ACP-
EC Council of Ministers Decision No 1/2000 of 27 July 2000, this sum is to be used
to support programmes which will be identified after examination of Sysmin requests
submitted before 1 August 2000, but for which decisions could not be taken before
31 December 2000.

€

The Commission had received sixteen Sysmin requests from the ACP countries by
that date. Two countries (Zambia and Guyana) were officially recognised as eligible
under Sysmin and financing proposals were presented to the EDF Committee for a
decision, while two others (Guinea and Togo) were not considered eligible.
Eligibility and projects are still being examined for the other twelve requests
(Botswana, Dominican Republic, Gabon, Ghana, Mauritania, Namibia, Niger, PNG,
Senegal, Sierra Leone, Suriname and Zimbabwe). One overseas territory (New
Caledonia) has also submitted a Sysmin request under the 8th EDF. The volume of
finance committed for deciding on eligibility and examining the programmes
proposed is

1.63 million.

€

92.5 million (12.5 for
In 2000, the Commission took financing decisions totalling
Guyana and 80 for Zambia). A list of thirteen recipients (Botswana, Dominican
Republic, Gabon, Ghana, Guyana, Mauritania, Namibia, Niger, PNG, Senegal, Sierra
Leone, Suriname and Zambia) has been drawn up with their indicative allocations for
implementing the measures resulting from the ongoing examinations. Zimbabwe has
not been entered on this list and a separate decision will be taken at a later date.

€

7.

OTHER AREAS OF COOPERATION

7.1.

Rural Development

Volume

In 2000 all
the projects and programmes committed for "rural development"
130 million, divided between the 7th
(including microproject programmes) totalled
(45%) and 8th EDF (54%). This figure should be compared with the average of
€
73 million over the period 1996-2000 and confirms the upward trend in allocations

€

5

1998 and 1999 years of application:
reimbursement of remaining transfers:

101 016 649 = (168 000 000 – 66 983 351)
1 308 512 = (72 000 000 – 70 691 488).

€

€

10

since 1998. The microproject programmes (51% of total allocations to rural
development) are largely responsible for this increase and for keeping the average
volume of projects around
4 million. However, with 3.5% of total commitments
over the period 1996-2000, rural development as such still accounts for a marginal
share of EDF allocations.

€

The increase of financial allocations for rural development over five years also
shows that these programmes normally require longer preparation than the average,
probably because of their complexity.

Type

In 2000 the Commission put the finishing touches to its new policy and strategy for
rural development. This policy, which is the result of intensive consultations between
departments and with the Member States,
rural
development on fighting the poverty which undeniably predominates in rural areas.
By providing a consistent framework for Community assistance and its instruments,
it should ultimately lead to an increase in the appropriation and thus in effectiveness
and impact.

refocuses the objectives of

7.2.

Agriculture

Volume

€

EDF allocations to agriculture came to
177 million in 2000 (4.7% of the total),
virtually all of it (99%) from the resources of the 8th EDF. Although this is 43%
lower than in 1999 when wide-ranging programmes were committed for agricultural
research and animal health, commitments are still well above the average for 1996-
2000. Most operations are in the research and crops subsectors, which account for
33% and 34% of allocations respectively.

Thanks to the major programmes of support for agricultural research, the increase in
the average volume of projects which began in 1999 was confirmed in 2000, when it
the average for 1996–2000 is still around
came to
€
2.5 million. In 2000, 5% of EDF resources were allocated to agriculture, i.e. 6.35%

4.3 million. However,

€

of all allocations between 1996 and 2000.

Type

In 2000 the finishing touches were put
to the strategy papers for agriculture,
livestock and fisheries. A similar initiative was launched to draw up a Community
policy in support of agricultural research.

In addition, in late 2000, the first steps were taken towards the presentation of a
Commission communication to the Council
in 2001 on the refocusing of
development policy in the fisheries sector on the objective of poverty reduction.

These initiatives setting out clear strategic priorities for Community operations are
intended to improve the relevance and refocus the objectives for more effective
measures to combat poverty.

Although allocations to agriculture from EDF funds are higher than the average over
the period 1996-2000, closer examination gives cause for concern as there has been a

11

drastic decline in the financing of national agricultural development programmes.
After the wave of restructuring in the national institutions responsible for agriculture
in the nineties, it is important that the 9th EDF should revive Community support,
backed by more effective institutions, in order to refocus Community cooperation on
rural poverty.

7.3.

Sustainable development and environment

In 2000 the concept of sustainable development was further integrated into policies
and programmes in several ways. As an overarching initiative, the Commission
undertook an extensive preparatory process for an EC strategy for integrating
environment
into EC Development Cooperation. A communication, outlining
elements of such a strategy, was adopted on 18 May 2000. A follow-up document,
with a comprehensive strategy, was under preparation for presentation to the
Development Council in 2001.

€

In 2000, a total of
total commitment of
147 million, or 4% of the overall
€
3.8 billion from the 6th, 7th and 8th EDF, was committed for 34 (out of 726) projects
€
with a primary environmental focus, with payments totalling
5.2 million. This is a
increase over the 3% commitment proportion for primary environmental
slight
projects under the 7th EDF over the period 1990-1995. For projects with a high
environmental risk (major transport, irrigation, waste treatment, etc), environmental
impact assessments (EIA) were carried out on a regular basis.

Work continued on the draft Environment Integration Manual. This manual, which is
expected to be finalised in 2001, will be an important tool for integration of the
environment into activities funded from the EDF and other financial instruments.

Finally, it is to be noted that in the Cotonou partnership agreement attention is given
to environmental aspects through Article 32 on Environment and natural resources.
This article specifies that cooperation on environmental protection and sustainable
utilisation and management of natural resources shall aim at, among others,
mainstreaming environmental
sustainability into all aspects of development
cooperation.

7.4.

Risk capital

Volume

€

207.2 million; an additional

Commitments from EDF resources (risk capital) for ACP countries increased in 2000
8 million came from Sysmin resources. Nineteen
to
165.2 million) and seven others
projects received assistance from risk capital alone (
from own resources and from risk capital
from a combination of
€
(

105 million).

loans

€

€

Payments from risk capital under the two Lomé IV protocols also increased to
€

142.8 million at the end of 2000.

More than half the operations financed are in the private sector. Industry and
services, communications infrastructure and energy all received aid. Twenty-one
ACP countries were involved and there were four regional operations.

12

Assessment

Financing met with difficulties in 2000 because of the political situation of countries
facing or recovering from armed conflict or political crises and of other countries
with a fragile business climate or a persistent failure to meet payment deadlines.

Implementation of a number of projects was delayed by the slowness of sectoral and
regulatory reform, the complex procedures for financing projects, in particular the
increasing consideration of environmental aspects, or the privatisation process.

8.

OLD OR DORMANT COMMITMENTS

Under the EDF, the problem of closing commitments is systematically monitored by
means of a regular exchange of information with the delegations to investigate the
causes and also by means of the introduction of a reporting system for anomalies
noted in the system of accounts. The use of additional temporary staff to make up the
backlog (open commitments dating back more than five years) meant
that an
investigation could start
in 2000 into the measures to be taken to close old
commitments; this operation should be completed at the end of this year. Pre-1995
€
commitments totalling
280 million were closed, reducing commitments outstanding
€
901 million to
from this period from

621 million.

€

13