Proposal for a Council Regulation establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community
Date: 2004-07-07
Institutions: European Commission
Subjects: Cyprus, EU financial instrument, accession to the European Union, economic development, financial aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.7.2004 
COM(2004) 465 final 

2004/0145 (CNS) 

Proposal for a 

COUNCIL REGULATION 

establishing an instrument of financial support for encouraging the economic 
development of the Turkish Cypriot community 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  European  Council  has  repeatedly  underlined  its  strong  preference  for  accession  by  a 
reunited Cyprus. As yet a comprehensive settlement has not been reached. 

“The  Comprehensive  Settlement  of  the  Cyprus  Problem”  as  finalized  by  UN  Secretary-
General  Kofi  Annan  was  approved  by  the  Turkish  Cypriot  electorate  at  the  separate 
simultaneous referenda on 24 April 2004. Following the outcome of the referenda the Council 
stated on 26 April 2004:  

“The  Turkish  Cypriot  community  have  expressed  their  clear  desire  for  a  future  within  the 
European  Union.  The  Council  is  determined  to  put  an  end  to  the  isolation  of  the  Turkish 
Cypriot community and to facilitate the reunification of Cyprus by encouraging the economic 
development of the Turkish Cypriot community. The Council invited the Commission to bring 
forward  comprehensive  proposals  to  this  end,  with  particular  emphasis  on  the  economic 
integration of the island and on improving contact between the two communities and with the 
EU. The Council recommended that the 259 million euro already earmarked for the northern 
part of Cyprus in the event of a settlement now be used for this purpose.” 

The  attached  draft  proposal  for  a  Council  Regulation  takes  up  the  invitation  of  the  Council 
and establishes an instrument of financial support for encouraging the economic development 
of  the  Turkish  Cypriot  community.  In  view  of  the  political  situation  and  with  a  view  to 
allocating the financial support in the most efficient and rapid way it provides that assistance 
be supplied directly to the beneficiaries. 

The legislative financial statement for this Regulation will present an amount of € 6 million 
for  2004,  mainly  dedicated  to  feasibility  studies  for  the  implementation  of  the  financial 
support over the years 2005 (€ 114 million) and 2006 (€ 139 million). A part of the assistance 
will be used to finance the support expenditure linked to the implementation. 

The present package is aiming at facilitating the reunification of Cyprus by encouraging the 
economic and social development with particular emphasis on the economic integration of the 
island,  through  alignment  with  the  acquis,  and  by  improving  contacts  between  the  two 
communities  and  with  the  EU.  Besides  reconciliation  and  confidence  building  measures,  it 
will cover, inter alia, the promotion of social and economic development, development of the 
infrastructure, and people to people contacts. Most of the activities will be therefore similar to 
pre-accession activities. Due to the isolation of the Turkish Cypriot community over the last 
years, the activities will have a strong focus on helping with acquis approximation, especially 
as regards investments to comply with European norms, inter alia, in the environmental and 
transport areas. 

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2004/0145 (CNS) 

Proposal for a 

COUNCIL REGULATION 

establishing an instrument of financial support for encouraging the economic 
development of the Turkish Cypriot community 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission,1 

Having regard to the opinion of the European Parliament,  

Whereas: 

(1) 

(2) 

(3) 

The European Council has repeatedly underlined its strong preference for accession by 
a reunited Cyprus. As yet, a comprehensive settlement has not been reached.  

The  Council  of  26  April  2004,  considering  that  the  Turkish  Cypriot  community  has 
expressed their clear desire for a future within the European Union, recommended that 
the funds earmarked for the northern part of Cyprus in the event of a settlement should 
be  used  to  put  an  end  to  the  isolation  of  that  community  and  to  facilitate  the 
reunification  of  Cyprus  by  encouraging  the  economic  development  of  the  Turkish 
Cypriot community, with particular emphasis on the economic integration of the island 
and on improving contact between the two communities and with the EU. 

Following the accession of Cyprus, the application of the acquis is suspended pursuant 
to  Article  1 (1)  of  Protocol  No 10  of  the  Act  of  Accession  2003  in  the  areas  of  the 
Republic  of  Cyprus  in  which  the  Government  of  the  Republic  of  Cyprus  does  not 
exercise effective control (hereafter “the Areas”). 

(4) 

Pursuant  to  Article  3 (1)  of  Protocol  No 10,  nothing  in  this  Protocol  shall  preclude 
measures with a view to promoting the economic development of the Areas. 

(5)  With a view to allocating the financial support in the most efficient and rapid way, it is 
desirable to provide that assistance can be supplied directly to the beneficiaries. 

1 

OJ C […], […], p. […]. 

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(6) 

(7) 

In  accordance  with  Article  2  of  Council  Decision  1999/4682  laying  down  the 
procedures  for  the  exercise  of  implementing  powers  conferred  on  the  Commission, 
measures  for  the  implementation  of  this  Regulation  should  be  adopted  by  use  of  the 
advisory procedure provided in Article 3 of that Decision. 

Implementing  this  Regulation  contributes,  as  set  out  above,  to  the  achievement  of 
Community  objectives,  but  the  Treaty  does  not  provide,  for  the  adoption  of  this 
Regulation, powers other than those referred to in Article 308, 

HAS ADOPTED THIS REGULATION: 

Article 1 
Overall objective and Beneficiaries 

1. 

2. 

The  Community  shall  provide  assistance  to  the  Turkish  Cypriot  community  with 
particular  emphasis  on  economic  development,  on  the  economic  integration  of  the 
island and on improving contacts between the two communities and with the EU in 
order to facilitate the reunification of Cyprus. 

Assistance shall benefit inter alia local authorities, cooperatives and representatives 
of the civil society, in particular organisations of the social partners, business support 
organisations,  public  agencies,  public  administrations, 
traditional 
communities,  associations,  foundations,  non-profit  organisations,  non-governmental 
organisations, and natural and legal persons. 

local  or 

Article 2 
Objectives 

Assistance shall be used to support inter alia: 

–  progressive  alignment  with  and  preparation  for 

implementation  of 

the  acquis 

communautaire 

–  the  promotion  of  social  and  economic  development  including  restructuring,  in  particular 
concerning rural development, human resources development and regional development 

–  the development and restructuring of infrastructure, in particular in the areas of energy and 

transport, the environment, telecommunications and water supply 

–  reconciliation, confidence building measures, and support to civil society 

–  bringing  the  Turkish  Cypriot  community  closer  to  the  Union,  through  inter  alia 
information  of  the  European  Union’s  political  and  legal  order,  promotion  of  people  to 
people contacts and scholarships for studies in Member States other than Cyprus. 

2 

OJ L 184, 17.7.1999, p. 23. 

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1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

1. 

Article 3 
Management of Assistance 

The Commission shall be responsible for administering the assistance. 

The Commission shall be assisted by the Committee provided for in Article 9 (1) of 
Council Regulation (EEC) No 3906/893, composed of representatives of the Member 
States and chaired by a representative of the Commission.  

The Committee shall give its opinion on draft financing decisions, where they are in 
excess of € 5 million. The Commission may approve, without seeking the opinion of 
the  Committee,  financing  decisions  on  supporting  activities  falling  under  Article 
4 (3) of this Regulation, and amendments to financing decisions complying with the 
objective of the programme and not exceeding 15 % of the financial envelope. 

Where, in accordance with paragraph 3, the Committee is not consulted on financing 
decisions, the Commission shall inform it no later than one week after the decision is 
taken. 

For the purposes of this Regulation, the advisory procedure laid down in Article 3 of 
Decision 1999/468/EC shall apply, in compliance with Article 7 (3) thereof.  

Article 4 
Types of Assistance 

Assistance  under  this  Regulation  may,  inter  alia,  finance  procurement  contracts, 
grants, including interest rate subsidies, special loans, loan guarantees and financial 
assistance. 

Assistance may be financed in full by the budget where it is justified and necessary 
to achieve the objectives of this Regulation. 

Assistance may also be used to cover in particular the costs for supporting activities 
such as preliminary and comparative studies, training, activities linked to preparing, 
appraising,  managing,  implementing,  monitoring,  controlling  and  evaluation  of 
assistance, activities linked to information and visibility purposes as well as costs for 
supporting staff, renting of premises and supply of equipment. 

Article 5  
Implementation of Assistance 

Actions under this regulation shall be implemented according to the rules set down in 
Title  IV  of  part  2  of  Council  Regulation  1605/20024.  All  individual  legal 
commitments relating to assistance under this Regulation shall be concluded no later 
than three years following the date of the budgetary commitment. 

3 
4 

OJ L 375, 23.12.1989, p. 11. 
OJ L 248, 16.9.2002, p. 1. 

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2. 

3. 

1. 

2. 

3. 

4. 

5 
6 
7 

The  Commission  may,  within  the  limits  established  in  Article  54  of  Regulation 
in  particular 
1605/2002,  decide 
implementation  tasks,  to  the  bodies  listed  in  Article  54 (2)  of  this  Regulation.  The 
selection criteria for the bodies listed in Article 54 (2) c) are the following: 

tasks  of  public  authority,  and 

to  entrust 

–  internationally recognized standing, 

–  compliance  with  internationally  recognized  systems  of  management  and  control, 

and 

–  supervision  by  a  public  authority  of  a  Member  State  or  by  an  international 

organisation/institution. 

Actions  under  this  Regulation  may  be  implemented  by  shared  management 
according  to  the  rules  set  down  in  Title  I  and  II  of  part  2  of  Council  Regulation 
1605/2002.  

Article 6 
Protection of Community’s financial interests 

The Commission shall ensure that, when actions financed under this Regulation are 
implemented,  the  financial  interests  of  the  Community  are  protected  by  the 
application  of  preventive  measures  against  fraud,  corruption  and  any  other  illegal 
activities, by effective checks and by the recovery of the amounts unduly paid and, if 
irregularities  are  detected,  by  effective,  proportional  and  dissuasive  penalties,  in 
accordance  with  Council  Regulations  (EC,  Euratom)  No  2988/955  and  (Euratom, 
EC)  No  2185/966,  and  with  Regulation  (EC)  No  1073/1999  of  the  European 
Parliament and of the Council7. 

For the Community actions financed under this Regulation, the notion of irregularity 
referred to in Article 1, paragraph 2 of Regulation (EC, Euratom) No 2988/95 shall 
mean  any  infringement  of  a  provision  of  Community  law  or  any  breach  of  a 
contractual  obligation  resulting  from  an  act  or  omission  by  an  economic  operator, 
which  has,  or  would  have,  the  effect  of  prejudicing  the  general  budget  of  the 
Communities or budgets managed by them, by an unjustified item of expenditure. 

Any  agreements  with  the  beneficiaries  must  expressly  provide  for  the  Commission 
and the Court of Auditors to have the power of audit, on the basis of documents and 
on the spot, over all contractors and subcontractors who have received Community 
funds. Those agreements shall also expressly authorise the Commission to carry out 
on-the-spot checks and inspections in accordance with the procedural provisions of 
Council Regulation (EC, Euratom) No 2185/96.  

All contracts resulting from the implementation of assistance shall ensure the right of 
the Commission and the Court of Auditors as provided for in paragraph 3, during and 
after the implementation of contracts. 

OJ L 312, 23.12.1995, p. 1. 
OJ L 292, 15.1.1996, p.2. 
OJ L 136, 31.5.1999, p. 1. 

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Article 7 
Participation in tenders and contracts 

1. 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation shall be open to  

–  all  natural  or  legal  persons  of  Member  States  of  the  European  Union,  including 

those residing or established in the Areas,  

–  all  natural  or  legal  persons  who  are  nationals  of,  or  legally  established  on  the 

territory of another Member State of the European Economic Area,  

–  all  natural  or  legal  persons  who  are  nationals  of,  or  legally  established  on  the 

territory of Candidate Countries for Accession to the European Union. 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation  shall  be  open  to  all  natural  or  legal  persons  who  are  nationals  of,  or 
legally  established  on  the  territory  of,  any  other  country  than  those  referred  to  in 
paragraph  1  in  cases  where  reciprocal  access  to  their  external  assistance  has  been 
established. 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation shall be open to international organisations. 

All supplies and materials purchased under a contract financed under this Regulation 
must  originate  from  the  Community,  the  Areas  or  a  country  eligible  according  to 
paragraphs (1) to (2) above.  

The  Commission  may,  in  duly  substantiated  cases  and  on  a  case-by-case  basis, 
authorise  the  participation  of  natural  and  legal  persons  from  other  countries  or  the 
use of supplies and materials of different origin. 

2. 

3. 

4. 

5. 

Article 8 
Reporting 

Each year the Commission shall send to the European Parliament and the Council a report on 
the implementation of Community assistance under this instrument. The report shall contain 
information on the actions financed during the year and on the findings of monitoring work, 
and shall give an assessment of the results achieved in the implementation of the assistance. 

Article 9 
Event of a settlement 

In the event of a comprehensive settlement of the Cyprus problem, the Council shall, on the 
basis of a proposal from the Commission, decide unanimously on the necessary adaptations to 
the present Regulation. 

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Article 10 
Entry into force 

This regulation shall enter into force on the third day following its publication in the Official 
Journal of the European Union. 

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

Done at Brussels, […] 

For the Council 
The President 
[…] 

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area(s): ENLARGEMENT 

Activit(y/ies):  Assistance  to  encourage  economic  development  of  the  Turkish  Cypriot 
community to facilitate reunification 

TITLE OF ACTION:  

Financial  support  for  encouraging  the  economic  development  of  the  Turkish  Cypriot 
community 

1. 

BUDGET LINE(S) + HEADING(S) 

22.01.04.07 - Financial support for encouraging the economic development of the 
Turkish Cypriot Community – Expenditure on administrative management 

22.02.11  -  Financial  support  for  encouraging  the  economic  development  of  the 
Turkish Cypriot Community 

2. 

OVERALL FIGURES  

2.1. 

Total allocation for action (Part B): 259 € million for commitment 

2.2. 

Period of application: 2004-2006 for commitments 

2.3. 

Overall multiannual estimate of expenditure: 

(a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1) 

(financial 

Year 
2004 

Commitments 

5.84 

€ million (to three decimal places) 

n+1 
2005 
110.36 

n+3 
2007 

n+2 
2006 
135.25 - 

n+4 
2008 
- 

n+5 
2009 
- 

Total 

251.45 

Payments 

1 

23.20 

50.25 

60 

65 

52 

251.45 

(b) 

Technical and administrative assistance and support expenditure(see point 6.1.2) 

Commitments 

0.16 

3.64

3.75

Payments 

0.16 

3.64

3.75

-

-

-

-

- 

- 

7.55 

7.55 

Subtotal a+b 

Commitments 

6 

114 

139 - 

- 

- 

259 

Payments 

1.16 

 26.84 

54

60

65

52  259 

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(c) 

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure 
(see points 7.2 and 7.3) 

.827 

.827 

.827 

.827 

.414 

.414 

4.135 

Commitments/ 
payments 

TOTAL a+b+c 

Commitments 

6.827 

114.827

139.827

827

414

414  263.135 

Payments 

1.987 

27.667

54.827

60.827

65.414

52.414  263.135 

2.4. 

Compatibility with financial programming and financial perspective 

[X]  Proposal is compatible with existing financial programming. 

See Point 5.2 for details about the heading of the financial perspective. 

[…]  Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 

perspective. 

[…]  Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 

Agreement. 

2.5. 

Financial impact on revenue: 

[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: 

(NB All details and observations relating to the method of calculating the effect on 
revenue should be shown in a separate annex.) 

(€ million to one decimal place) 

Budget line 

Revenue 

Prior to
action 
[Year n-
1] 

[Year 
n] 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5] 

a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

(Please specify each budget line involved, adding the appropriate number of rows 
to the table if there is an effect on more than one budget line.) 

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3. 

BUDGET CHARACTERISTICS 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
form applicant 
countries 

Heading in 
financial 
perspective 

Non-comp 

Diff 

YES 

NO 

NO 

No [7] 

4. 

LEGAL BASIS  

Commission proposal of … for a Council Regulation establishing an instrument of financial 
support  for  encouraging  the  economic  development  of  the  Turkish  Cypriot  community 
(COM…) 

5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention  

5.1.1.  Objectives pursued 

Financial support aiming at facilitating the reunification of Cyprus by encouraging the social 
and  economic  development  of  the  northern  part  with  particular  emphasis  on  the  economic 
integration, on bringing closer the two communities, and on alignment with and preparation 
for the acquis communautaire. 

5.1.2.  Measures taken in connection with ex ante evaluation  

(a) 

(b) 

Not applicable. 

The lesson learned for the action envisaged is the one deriving from the accession aid 
delivered to the ten new Member States. In addition, all projects and all programmes 
will  be  ex-ante  evaluated  according  to  the  established  practice  and  in  compliance 
with the criteria of sound financial management.  

5.1.3.  Measures taken following ex post evaluation 

Not applicable, although some feedback from the experience gathered from the pre-accession 
programmes will be used. 

5.2. 

Action envisaged and budget intervention arrangements 

Appropriations will be committed from 2004 to 2006. The implementation of the assistance 
will take place over a period from 2004 through 2009. The financial assistance will focus on 
large  infrastructure  projects  such  as  sewerage  treatment,  power  plants,  renovation  and 
development  of  transport  infrastructure  projects  including  to  develop  links  between  the 
Cypriot communities, as well as social and economic development, such as SME support and 
reduction of the economic disparities. In the northern part, during the last 30 years, no major 
infrastructure investments have been undertaken.  

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As  regards  alignment  with  and  preparation  for  the  acquis,  TAIEX  will  be  the  main 
implementing instrument. Part of the credits will be used for this purpose. 

Priority will be given in particular to the following objectives : 

–  the  promotion  of  social  and  economic  development,  in  particular  concerning  rural 

development, human resources development and regional development, 

–  the  development  and  restructuring  of  infrastructure,  in  particular  in  the  areas  of  energy, 
environment  (including  water  supply),  telecommunications  and  transport  (including 
projects to develop links between the Cypriot communities), 

–  reconciliation and confidence building measures, including support to civil society, 

–  improved understanding of the European Union’s political and legal order, 

–  promotion of youth exchange and scholarships, 

–  progressive alignment with the acquis communautaire and preparation for implementation 

of the acquis. 

The  assistance  to  facilitate  the  reunification  of  Cyprus  by  encouraging  the  economic  and 
social development of the Turkish Cypriot community will focus on : 

Investments  in  the  field  of  infrastructure,  transport  and  environment  projects  such  as  waste 
disposal,  sewerage  and  improvement  of  the  water  supply,  water  quality  and  the  distribution 
system.  Rural  development  as  well  as  measures  concerning  SME’s  will  be  a  further  major 
project  for  economic  development.  In  the  field  of  social  policy,  labour  market  policies, 
vocational  training  and  treatment  of  illegal  immigrant  workers  will  be  developed  with  the 
social partners. 

The projects will be identified as regards their objectives, costs, duration and sustainability via 
a series of feasibility studies. 

In  the  field  of  reconciliation  and  confidence  building  measures,  bi-communal  projects  e.g. 
such  as  those  included  in  the  Nicosia  Masterplan  will  be  proposed.  Non-governmental 
organisations could also benefit from the assistance with a view to supporting initiatives and 
common projects of the two communities. 

For  the  alignment  with  and  preparation  for  the  acquis  communautaire,  technical  support 
measures will play an important role.  

The € 259 million package was originally earmarked under headings 1, 2 and 3 but only in 
case  of  a  political  settlement  in  accordance  with  the  table  1b  of  the  revised  financial 
perspective8.  However,  in  the  absence  of  a  settlement,  no  existing  heading  of  the  Financial 
Perspective  precisely  covers  the  intended  expenditure  directed  towards  areas  of  a  member 
state where the government does not exercise effective control and where the application of 
the acquis is suspended. The package is now aiming at facilitating the reunification of Cyprus 

8 

Decision 2003/429/EC of the European Parliament and of the Council of 19 May 2003. 

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by  encouraging  the  economic  development  with  particular  emphasis  on  the  economic 
integration of the island, and by improving contacts between the two communities and with 
the EU. Besides reconciliation and confidence building measures, and because of the isolation 
of  this  community  these  last  years,  the  activities  will  have  a  strong  focus  on  helping  with 
Community  acquis  approximation,  especially  as  regards  investments  to  comply  with 
European  norms,  inter  alia,  in  the  environmental  and  transport  areas  as  described  above. 
Therefore,  most  of  the  activities  will  be  similar  to  pre-accession  activities  financed  under 
Heading 7 which appears as the most suitable heading of the financial perspective to host this 
particular assistance. 

5.3.  Methods of implementation 

The  overall  responsibility  for  dealing  with  the  issues  concerning  the  Turkish-Cypriot 
community, including programming and coordination of the assistance will be entrusted to a 
core team in DG Enlargement  in Brussels. The  implementation of  the  aid will be  organised 
through  an  aid  delivery  team  at  headquarters  and  on  the  ground  in  charge  of  project 
identification,  tendering,  contracting,  implementation,  monitoring,  payments,  evaluation, 
auditing and through a presence in the field through an office. 

The overall impact on resources will amount to 7 permanent officials and 28 external staff.  

The Commission is envisaging the possibility to use an agency, more precisely the European 
Agency for Reconstruction, as this Agency could be the most efficient way for implementing 
the part of the package related to large infrastructure projects. The pool of expertise readily 
available  could  be  rapidly  made  operational  on  the  ground.  However,  this  option,  together 
with other possibilities, needs to be further analyzed and the Commission will decide later. It 
needs to be noted that should the Commission propose to extend the geographical coverage of 
the  Agency  ,  the  proposal  would  still  be  consistent  with  the  conclusions  of  the  evaluation 
recently  published  along  with  the  proposal  to  limit  its  duration  to  end  2006.  Since  this 
package,  like  the  CARDS  Regulation,  is  programmed  up  to  end-2006,  the  mandate  of  the 
Agency would still be consistent with the mandate under this Regulation.  

In terms of budgetary consequences, under the Agency option, the team of 25 external staff 
and  2  permanent  officials  in  charge  of  the  aid  delivery  would  no  longer  be  necessary.  The 
budget of the agency will be adapted and amended to take into account  the extension of its 
mandate. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B - (over the entire programming period) 

(The method of calculating the total amounts set out in the table below must be explained by 
the breakdown in Table 6.2. ) 

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6.1.1.  Financial intervention 

Commitments (in € million to three decimal places) 

Breakdown 

[Year n] 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

Total 

[n+5 and 
subs. 
Years] 

Promotion  of  economic  and 
social development  

2 

Restructuring 
transport and environment 

energy, 

Rural 
development, 
agricultural  measures  and 
water supply 

1.5 

.75 

40 

35.5 

16.25 

48 

41 

18 

Reconciliation and 
confidence building 
measures, including support 
to civil society 

Harmonisation with the 
acquis 

Information on EU, 
including scholarship and 
promotion of youth 
exchange 

Other – cost of 
implementation etc. 

.5 

9.5 

15.25 

.34 

.25 

4.66 

1.75 

5 

3 

.5 

2.70 

5 

90 

78 

35 

25.25 

10 

5 

8.2 

TOTAL  5.84 

110.36 

135.25 

251.45 

6.1.2.  Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 

(commitment appropriations) 

[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 

3,000,000 

3,000,000 

6.000,000 

- intra muros: 

- extra muros: 

of  which  for  construction 
and 
of 
maintenance 
computerised  management 
systems 

Subtotal 1 

3,000,000  3,000,000 

6,000,000 

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2) Support expenditure 

a) Studies 

50,000 

150,000 

175,000 

b) Meetings of experts 

50,000 

150,000 

175,000 

c) Information and 
publications 

60,000 

340,000 

400,000 

Subtotal 2  160,000 

640,000 

750,000 

TOTAL  160,000 

3,640,000  3,750,000 

375,000 

375,000 

800,000 

1,550,000 

7,550,000 

6.2. 

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire 
programming period)9 

(Where  there  is  more  than  one  action,  give  sufficient  detail  of  the  specific  measures  to  be 
taken for each one to allow the volume and costs of the outputs to be estimated.) 

Breakdown  

Commitments (in € million to three decimal places) 

Type  
of outputs 
(projects, files ) 

Number of 
outputs 

Average unit 
cost 

(total for years 
1…n)  

Total cost 

(total for years 
1…n)  

1 

2 

3 

4=(2X3) 

Action 1 

- Measure 1 

- Measure 2  

Action 2 

- Measure 1 

- Measure 2 

- Measure 3 

etc. 

TOTAL COST 

If necessary explain the method of calculation 

9 

For further information, see separate explanatory note. 

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7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

7.1. 

Impact on human resources 

Types of post 

Officials 
temporary staff 

or 

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 

Total 

Description of tasks deriving from the 
action 

5 

2 

7 

5 

2 

28 

35 

28 

If necessary, a fuller description of the 
tasks may be annexed. 

Les  besoins  en  ressources  humaines  et  administratives  seront  couverts  à  l’intérieur  de  la 
dotation allouée à la DG gestionnaire dans le cadre de la procédure d’allocation annuelle.  

7.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials (22 01 01) 

Temporary staff (22 01 04 07) 

Other human resources 

756,000 

7 * 108,000 €/pers/year 

2,250,000 

28 * 80,357 €/pers/year 

(specify budget line) 

Total 

3,006,000 

The amounts are total expenditure for twelve months. 

The new administrative support item 22 01 04 07 will be accompanied as from 2005 by the 
following budgetary comment: 

expenditure  on  temporary  support  staff  (auxiliaries,  detached  national  experts,  staff  from 
employment agencies) at headquarters limited to € 3.000.000 corresponding to an estimated 
28 men/years. This estimate is based on a provisional annual unit cost per man-year, of which 
75% is accounted for by remuneration for the staff concerned and 25% by the additional cost 
of training, meetings, missions, IT, telecommunications and eventual rent of premises on the 
ground.  This  new  sub-ceiling  for  a  limited  number  of  staff  at  headquarters  is  proposed  for 
accompanying the management of files at headquarters as the specific political situation of the 
areas of northern Cyprus does not allow for the opening of a delegation. It has, by definition, 
a  transitory  and  temporary  nature  strictly  linked  to  the  direct  management  of  the 
implementation of this new programme. 

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7.3. 

Other administrative expenditure deriving from the action 

Budget line 

(number and heading) 

Overall allocation (Title A7) 

A0701 – Missions 

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

A07040 – Conferences 

A0705 – Studies and consultations 

Other expenditure (specify) 

Information systems (A-5001/A-4300) 

Other expenditure - Part A (specify) 

Amount € 

Method of calculation 

50,000 

5,000 

10,000 

6,000 

Total 

71,000 

The amounts are total expenditure for twelve 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 

III. 

Total cost of action (I x II) 

3,077,000 € 

2 years (2005-2006) 

6,154,000 € 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

(Adequate  follow-up  information  must  be  collected,  from  the  start  of  each  action,  on  the 
inputs,  outputs  and  results  of  the  intervention.  In  practice  this  means  (i)  identifying  the 
indicators for inputs, outputs and results and (ii) putting in place methods for the collection of 
data). 

–  Indicateurs d’output (mesure des activités déployées 

–  Le  nombre  et  la  diversité  des  infrastructures,  des  secteurs  économiques,  des 

administrations et des citoyens concernés par les projets 

–  Indicateurs d’impact selon les objectifs poursuivis 

–  L’impact sur l’évolution du revenu per capita 

–  L’impact  sur  les  infrastructures  et  notamment  leur  modernisation  et  leur 

conformité avec les normes de l’Union européenne 

–  La diminution des disparités économiques régionales 

–  L’amélioration de la gestion des administrations 

–  L’accès à de nouvelles technologies 

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–  Le transfert de savoir-faire 

–  L’impact sur l’agriculture 

–  L’impact sur la création d’emplois 

8.2. 

Arrangements and schedule for the planned evaluation 

Les  projets  seront  contrôlés  et  évalués  périodiquement  par  les  organes  chargés  de  leur 
exécution, par les services de la Commission et par des experts indépendants. 

L’achèvement  de  l’action  donnera  lieu  à  un  rapport  d’évaluation  sur  son  contenu,  le  coût-
bénéfice, le suivi à apporter et en particulier sur la réalisation des objectifs. 

9. 

ANTI-FRAUD MEASURES 

Des contrôles seront effectués à tous niveaux de la mise en oeuvre des projets (appel d’offres, 
sélection, élaboration des contrats, prestations des services, paiements) par les services de la 
Commission  ainsi  que  par  la  Cour  des  Comptes.  Les  vérifications  tiennent  compte  des 
obligations  contractuelles,  des  principes  de  gestion  financière  saine  et  efficace.  Des 
dispositions  de  contrôle  (remise  de  rapports,  concertation  avec  la  Commission,  etc.°  seront 
incluses dans tous les accords ou contrats conclus entre la Commission et les bénéficiaires des 
paiements. 

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