Agreement amending the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 - Final act -Declarations
Date: 2005-06-25
Institutions: African, Caribbean and Pacific Group of States, Austria, Belgium, Cyprus, Czechia, Denmark, Estonia, European Community, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom
Subjects: ACP countries, Cotonou Agreement, revision of an agreement

11.8.2005

EN

Official Journal of the European Union

L 209/27

AGREEMENT

amending the Partnership Agreement between the members of the African, Caribbean and Pacific
Group of States, of the one part, and the European Community and its Member States, of the
other part, signed in Cotonou on 23 June 2000

HIS MAJESTY THE KING OF THE BELGIANS,

THE PRESIDENT OF THE CZECH REPUBLIC,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE REPUBLIC OF ESTONIA,

THE PRESIDENT OF THE HELLENIC REPUBLIC,

HIS MAJESTY THE KING OF SPAIN,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

THE PRESIDENT OF THE REPUBLIC OF CYPRUS,

THE PRESIDENT OF THE REPUBLIC OF LATVIA,

THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

THE PRESIDENT OF THE REPUBLIC OF HUNGARY,

THE PRESIDENT OF MALTA,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,

THE PRESIDENT OF THE REPUBLIC OF POLAND,

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THE PRESIDENT OF THE PORTUGUESE REPUBLIC,

THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,

THE PRESIDENT OF THE SLOVAK REPUBLIC,

THE PRESIDENT OF THE REPUBLIC OF FINLAND,

THE GOVERNMENT OF THE KINGDOM OF SWEDEN,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the European Community, hereinafter referred to as ‘the Community’,
the States of the Community being hereinafter referred to as ‘Member States’,

and

THE EUROPEAN COMMUNITY,

of the one part, and

THE PRESIDENT OF THE REPUBLIC OF ANGOLA,

HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,

THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,

THE HEAD OF STATE OF BARBADOS,

HER MAJESTY THE QUEEN OF BELIZE,

THE PRESIDENT OF THE REPUBLIC OF BENIN,

THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,

THE PRESIDENT OF BURKINA FASO,

THE PRESIDENT OF THE REPUBLIC OF BURUNDI,

THE PRESIDENT OF THE REPUBLIC OF CAMEROON,

THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,

THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,

THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS,

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THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF CONGO,

THE PRESIDENT OF THE REPUBLIC OF CONGO,

THE GOVERNMENT OF THE COOK ISLANDS,

THE PRESIDENT OF THE REPUBLIC OF CÔTE D'IVOIRE,

THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,

THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,

THE PRESIDENT OF THE DOMINICAN REPUBLIC,

THE PRESIDENT OF THE STATE OF ERITREA,

THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,

THE PRESIDENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI,

THE PRESIDENT OF THE GABONESE REPUBLIC,

THE PRESIDENT AND HEAD OF STATE OF THE REPUBLIC OF THE GAMBIA,

THE PRESIDENT OF THE REPUBLIC OF GHANA,

HER MAJESTY THE QUEEN OF GRENADA,

THE PRESIDENT OF THE REPUBLIC OF GUINEA,

THE PRESIDENT OF THE REPUBLIC OF GUINEA-BISSAU,

THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA,

THE PRESIDENT OF THE REPUBLIC OF GUYANA,

THE PRESIDENT OF THE REPUBLIC OF HAITI,

THE HEAD OF STATE OF JAMAICA,

THE PRESIDENT OF THE REPUBLIC OF KENYA,

THE PRESIDENT OF THE REPUBLIC OF KIRIBATI,

HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,

THE PRESIDENT OF THE REPUBLIC OF LIBERIA,

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THE PRESIDENT OF THE REPUBLIC OF MADAGASCAR,

THE PRESIDENT OF THE REPUBLIC OF MALAWI,

THE PRESIDENT OF THE REPUBLIC OF MALI,

THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS,

THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,

THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,

THE GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA,

THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,

THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,

THE GOVERNMENT OF THE REPUBLIC OF NAURU,

THE PRESIDENT OF THE REPUBLIC OF NIGER,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA,

THE GOVERNMENT OF NIUE,

THE GOVERNMENT OF THE REPUBLIC OF PALAU,

HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,

THE PRESIDENT OF THE RWANDESE REPUBLIC,

HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,

HER MAJESTY THE QUEEN OF SAINT LUCIA,

HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,

THE HEAD OF STATE OF THE INDEPENDENT STATE OF SAMOA,

THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE,

THE PRESIDENT OF THE REPUBLIC OF SENEGAL,

THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,

THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,

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HER MAJESTY THE QUEEN OF SOLOMON ISLANDS,

THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA,

THE PRESIDENT OF THE REPUBLIC OF THE SUDAN,

THE PRESIDENT OF THE REPUBLIC OF SURINAME,

HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,

THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,

THE PRESIDENT OF THE REPUBLIC OF CHAD,

THE PRESIDENT OF THE TOGOLESE REPUBLIC,

HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA,

THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,

HER MAJESTY THE QUEEN OF TUVALU,

THE PRESIDENT OF THE REPUBLIC OF UGANDA,

THE GOVERNMENT OF THE REPUBLIC OF VANUATU,

THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,

THE GOVERNMENT OF THE REPUBLIC OF ZIMBABWE,

whose States are hereinafter referred to as ‘ACP States’,

of the other part,

HAVING REGARD to the Treaty establishing the European Community, on the one hand, and the
Georgetown Agreement establishing the Group of African, Caribbean and Pacific States (ACP), on the
other,

HAVING REGARD to the Partnership Agreement between the members of the African, Caribbean and
Pacific Group of States, of the one part, and the European Community and its Member States, of the other
part, signed in Cotonou on 23 June 2000 (hereinafter referred to as the Cotonou Agreement),

CONSIDERING that Article 95(1) of the Cotonou Agreement lays down that the duration of the Agreement
shall be 20 years, starting on 1 March 2000,

CONSIDERING that the second subparagraph of Article 95(3) of the Cotonou Agreement provides that 10
months before the expiry of each five-year period, the Parties shall enter into negotiations with a view to
examining any possible amendments to the provisions of the Cotonou Agreement,

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HAVE DECIDED to sign this Agreement amending the Cotonou Agreement and to this end have designated
as their Plenipotentiaries:

HIS MAJESTY THE KING OF THE BELGIANS,

THE PRESIDENT OF THE CZECH REPUBLIC,

HER MAJESTY THE QUEEN OF DENMARK,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,

THE PRESIDENT OF THE REPUBLIC OF ESTONIA,

THE PRESIDENT OF THE HELLENIC REPUBLIC,

HIS MAJESTY THE KING OF SPAIN,

THE PRESIDENT OF THE FRENCH REPUBLIC,

THE PRESIDENT OF IRELAND,

THE PRESIDENT OF THE ITALIAN REPUBLIC,

THE PRESIDENT OF THE REPUBLIC OF CYPRUS,

THE PRESIDENT OF THE REPUBLIC OF LATVIA,

THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,

HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,

THE PRESIDENT OF THE REPUBLIC OF HUNGARY,

THE PRESIDENT OF MALTA,

HER MAJESTY THE QUEEN OF THE NETHERLANDS,

THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,

THE PRESIDENT OF THE REPUBLIC OF POLAND,

THE PRESIDENT OF THE PORTUGUESE REPUBLIC,

THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,

THE PRESIDENT OF THE SLOVAK REPUBLIC,

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THE PRESIDENT OF THE REPUBLIC OF FINLAND,

THE GOVERNMENT OF THE KINGDOM OF SWEDEN,

HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN
IRELAND,

THE EUROPEAN COMMUNITY,

THE PRESIDENT OF THE REPUBLIC OF ANGOLA,

HER MAJESTY THE QUEEN OF ANTIGUA AND BARBUDA,

THE HEAD OF STATE OF THE COMMONWEALTH OF THE BAHAMAS,

THE HEAD OF STATE OF BARBADOS,

HER MAJESTY THE QUEEN OF BELIZE,

THE PRESIDENT OF THE REPUBLIC OF BENIN,

THE PRESIDENT OF THE REPUBLIC OF BOTSWANA,

THE PRESIDENT OF BURKINA FASO,

THE PRESIDENT OF THE REPUBLIC OF BURUNDI,

THE PRESIDENT OF THE REPUBLIC OF CAMEROON,

THE PRESIDENT OF THE REPUBLIC OF CAPE VERDE,

THE PRESIDENT OF THE CENTRAL AFRICAN REPUBLIC,

THE PRESIDENT OF THE ISLAMIC FEDERAL REPUBLIC OF THE COMOROS,

THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF CONGO,

THE PRESIDENT OF THE REPUBLIC OF CONGO,

THE GOVERNMENT OF THE COOK ISLANDS

THE PRESIDENT OF THE REPUBLIC OF CÔTE D'IVOIRE,

THE PRESIDENT OF THE REPUBLIC OF DJIBOUTI,

THE GOVERNMENT OF THE COMMONWEALTH OF DOMINICA,

THE PRESIDENT OF THE DOMINICAN REPUBLIC,

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THE PRESIDENT OF THE STATE OF ERITREA,

THE PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA,

THE PRESIDENT OF THE SOVEREIGN DEMOCRATIC REPUBLIC OF FIJI,

THE PRESIDENT OF THE GABONESE REPUBLIC,

THE PRESIDENT AND HEAD OF STATE OF THE REPUBLIC OF THE GAMBIA,

THE PRESIDENT OF THE REPUBLIC OF GHANA,

HER MAJESTY THE QUEEN OF GRENADA,

THE PRESIDENT OF THE REPUBLIC OF GUINEA,

THE PRESIDENT OF THE REPUBLIC OF GUINEA-BISSAU,

THE PRESIDENT OF THE REPUBLIC OF EQUATORIAL GUINEA,

THE PRESIDENT OF THE REPUBLIC OF GUYANA,

THE PRESIDENT OF THE REPUBLIC OF HAITI,

THE HEAD OF STATE OF JAMAICA,

THE PRESIDENT OF THE REPUBLIC OF KENYA,

THE PRESIDENT OF THE REPUBLIC OF KIRIBATI,

HIS MAJESTY THE KING OF THE KINGDOM OF LESOTHO,

THE PRESIDENT OF THE REPUBLIC OF LIBERIA,

THE PRESIDENT OF THE REPUBLIC OF MADAGASCAR,

THE PRESIDENT OF THE REPUBLIC OF MALAWI,

THE PRESIDENT OF THE REPUBLIC OF MALI,

THE GOVERNMENT OF THE REPUBLIC OF THE MARSHALL ISLANDS,

THE PRESIDENT OF THE ISLAMIC REPUBLIC OF MAURITANIA,

THE PRESIDENT OF THE REPUBLIC OF MAURITIUS,

THE GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA,

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THE PRESIDENT OF THE REPUBLIC OF MOZAMBIQUE,

THE PRESIDENT OF THE REPUBLIC OF NAMIBIA,

THE GOVERNMENT OF THE REPUBLIC OF NAURU,

THE PRESIDENT OF THE REPUBLIC OF NIGER,

THE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA,

THE GOVERNMENT OF NIUE,

THE GOVERNMENT OF THE REPUBLIC OF PALAU,

HER MAJESTY THE QUEEN OF THE INDEPENDENT STATE OF PAPUA NEW GUINEA,

THE PRESIDENT OF THE RWANDESE REPUBLIC,

HER MAJESTY THE QUEEN OF SAINT KITTS AND NEVIS,

HER MAJESTY THE QUEEN OF SAINT LUCIA,

HER MAJESTY THE QUEEN OF SAINT VINCENT AND THE GRENADINES,

THE HEAD OF STATE OF THE INDEPENDENT STATE OF SAMOA,

THE PRESIDENT OF THE DEMOCRATIC REPUBLIC OF SÃO TOMÉ AND PRÍNCIPE,

THE PRESIDENT OF THE REPUBLIC OF SENEGAL,

THE PRESIDENT OF THE REPUBLIC OF SEYCHELLES,

THE PRESIDENT OF THE REPUBLIC OF SIERRA LEONE,

HER MAJESTY THE QUEEN OF SOLOMON ISLANDS,

THE PRESIDENT OF THE REPUBLIC OF SOUTH AFRICA,

THE PRESIDENT OF THE REPUBLIC OF THE SUDAN,

THE PRESIDENT OF THE REPUBLIC OF SURINAME,

HIS MAJESTY THE KING OF THE KINGDOM OF SWAZILAND,

THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA,

THE PRESIDENT OF THE REPUBLIC OF CHAD,

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THE PRESIDENT OF THE TOGOLESE REPUBLIC,

HIS MAJESTY KING TAUFA'AHAU TUPOU IV OF TONGA,

THE PRESIDENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO,

HER MAJESTY THE QUEEN OF TUVALU,

THE PRESIDENT OF THE REPUBLIC OF UGANDA,

THE GOVERNMENT OF THE REPUBLIC OF VANUATU,

THE PRESIDENT OF THE REPUBLIC OF ZAMBIA,

THE GOVERNMENT OF THE REPUBLIC OF ZIMBABWE,

WHO, having exchanged their Full Powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

Sole Article

2.

The tenth recital, commencing ‘CONSIDERING that the
development targets and principles …’, shall be replaced
by the following:

In accordance with the procedure laid down in Article 95
thereof, the Cotonou Agreement shall be amended by the
following provisions:

A.

PREAMBLE

‘CONSIDERING that the Millennium Development Goals
emanating from the Millennium Declaration adopted by
the United Nations General Assembly in 2000,
in
particular the eradication of extreme poverty and hunger,
as well as the development targets and principles agreed
in the United Nations Conferences, provide a clear vision
and must underpin ACP-EU cooperation within this
Agreement;’.

1. After the eighth recital, commencing‘CONSIDERING the
Convention for the Protection of Human Rights …’, the
following recitals shall be inserted:

B.

TEXT OF THE ARTICLES

OF THE COTONOU AGREEMENT

‘REAFFIRMING that the most serious crimes of concern to
the international community must not go unpunished
and that their effective prosecution must be ensured by
level and by enhancing
taking measures at national
global collaboration;

CONSIDERING that
the establishment and effective
functioning of the International Criminal Court consti-
tutes an important development for peace and interna-
tional justice;’.

1.

In Article 4, the introductory part shall be replaced by
the following:

‘The ACP States
shall determine the development
principles, strategies and models of
their economies
and societies in all sovereignty. They shall establish, with
the Community, the cooperation programmes provided
for under this Agreement. However, the Parties recognise
the complementary role of and potential for contribu-
tions by non-State
and local decentralised
authorities to the development process. To this end,
under the conditions laid down in this Agreement, non-
State actors and local decentralised authorities shall,
where appropriate:’.

actors

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2. Article 8 shall be amended as follows:

(b)

the following paragraph shall be added:

(a)

paragraph 2 shall be replaced by the following:

‘2.
this dialogue shall be to
The objective of
exchange information,
to foster mutual under-
standing and to facilitate the establishment of
agreed priorities and shared agendas, in particular
by recognising existing links between the different
aspects of the relations between the Parties and the
various areas of cooperation as laid down in this
Agreement. The dialogue shall facilitate consulta-
tions between the Parties within international fora.
The objectives of the dialogue shall also include
preventing situations arising in which one Party
might deem it necessary to have recourse to the
consultation procedures envisaged in Articles 96
and 97.’;

(b) paragraph 6 shall be replaced by the following:

In promoting the strengthening of peace and
reaffirm their
the Parties

justice,

‘6.
international
determination to:

— share experience in the adoption of

legal
adjustments required to allow for the ratifica-
tion and implementation of the Rome Statute
of the International Criminal Court; and

— fight against international crime in accordance
with international law, giving due regard to the
Rome Statute.

The Parties shall seek to take steps towards ratifying
and implementing the Rome Statute and related
instruments.’.

‘6.
The dialogue shall be conducted in a flexible
manner. The dialogue shall be formal or informal
according to the need, and conducted within and
outside the institutional framework, including the
ACP Group, the Joint Parliamentary Assembly, in
the appropriate format and at the appropriate level,
including regional, sub-regional or national level.’;

5.

The following Articles shall be inserted:

‘Article 11a

F i g h t a g a i n s t t e r r o r i s m

(c)

the following paragraph shall be inserted:

‘6a. Where appropriate, and in order to prevent
situations arising in which one Party might deem it
necessary to have recourse to the consultation
procedure foreseen in Article 96, dialogue covering
the essential elements shall be systematic and
formalised in accordance with the modalities set
out in Annex VII.’.

3.

The title of Article 9 shall be replaced by the following:

e l e m e n t s

‘ E s s e n t i a l
h u m a n
r i g h t s , d e m o c r a t i c p r i n c i p l e s a n d t h e r u l e
o f l a w, a n d f u n d a m e n t a l e l e m e n t r e g a r d i n g
g o o d g o v e r n a n c e ’ .

r e g a r d i n g

4. Article 11 shall be amended as follows:

(a)

the following paragraph shall be inserted:

‘3a. The Parties also undertake to cooperate in the
prevention of mercenary activities in accordance
with their obligations under international conven-
tions and instruments, and their respective legisla-
tions and regulations.’;

cooperation,

The Parties reiterate their firm condemnation of all acts
of terrorism and undertake to combat terrorism through
in accordance with the
international
law,
Charter of the United Nations and international
relevant conventions and instruments and in particular
full implementation of UN Security Council Resolutions
1373 (2001) and 1456 (2003) and other relevant UN
resolutions. To this end, the Parties agree to exchange:

— information on terrorist groups and their support

networks; and

— views on means and methods to counter terrorist
acts, including in technical fields and training, and
experiences
in relation to the prevention of
terrorism.

Article 11b

C o o p e r a t i o n
p r o l i f e r a t i o n
d e s t r u c t i o n

i n

o f

c o u n t e r i n g
o f

w e a p o n s

t h e
m a s s

that

1. The Parties consider
the proliferation of
weapons of mass destruction and their means of delivery,
both to State and non-State actors, represents one of the
stability and
most
security.

to international

serious

threats

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therefore

to cooperate

and to
agree
The Parties
contribute to countering the proliferation of weapons
of mass destruction and their means of delivery through
full compliance with and national
implementation of
their existing obligations under international disarma-
ment and non-proliferation treaties and agreements and
other relevant international obligations.

The Parties agree that
essential element of this Agreement.

this provision constitutes an

2. The Parties furthermore agree to cooperate and to
contribute to the objective of non-proliferation by:

— taking steps

to sign,

ratify or accede to, as
appropriate, and fully implement all other relevant
international instruments,

— the establishment of an effective system of national
export controls, controlling the export as well as
transit of weapons of mass destruction related
goods,
including a weapons of mass destruction
end-use control on dual-use technologies and
containing effective sanctions for breaches of export
controls.

Financial and technical assistance
in the area of
cooperation to counter the proliferation of weapons of
mass destruction will be financed by specific instruments
other than those intended for the financing of ACP-EC
cooperation.

3. The Parties agree to establish a regular political
dialogue that will accompany and consolidate their
cooperation in this area.

relevant multilateral

If, after having conducted a strengthened political
4.
dialogue, a Party, informed in particular by reports by the
International Atomic Energy Agency (IAEA), the Orga-
the Prohibition of Chemical Weapons
nisation for
institutions,
(OPCW) and other
considers that the other Party has failed to fulfil an
obligation stemming from paragraph 1, it shall, except in
cases of special urgency, supply the other Party and both
the ACP and the EU Councils of Ministers with the
relevant information required for a thorough examina-
tion of the situation with a view to seeking a solution
acceptable to the Parties. To this end, it shall invite the
other Party to hold consultations that focus on the
measures taken or to be taken by the Party concerned to
remedy the situation.

The consultations shall begin no later than 30 days after
the invitation and shall continue for a period established
by mutual agreement, depending on the nature and
gravity of the violation. In no case shall the dialogue
under the consultation procedure last longer than 120
days.

If

the consultations do not

6.
lead to a solution
acceptable to both Parties, if consultation is refused or in
cases of special urgency, appropriate measures may be
taken. These measures shall be revoked as soon as the
reasons for taking them no longer prevail.’.

6.

The following point shall be added to Article 23:

‘l)

the promotion of traditional knowledge.’.

7.

In Article 25(1), point
following:

(d) shall be replaced by the

‘(d) promoting the fight against:

— HIV/AIDS, ensuring the protection of sexual
and reproductive health and rights of women;

— other poverty-related diseases, particularly

malaria and tuberculosis;’.

8. Article 26 shall be amended as follows:

(a)

points (c) and (d) shall be replaced by the following:

‘(c) helping community-based institutions to give
children the opportunity to develop their
physical, psychological, social and economic
potential;

(d)

reintegrating into society children in post-
conflict situations through rehabilitation pro-
grammes; and’;

(b)

the following point shall be added:

5. The consultations shall be conducted at the level and
in the form considered most appropriate for finding a
solution.

‘(e) promoting the active participation of young
citizens in public life and fostering student
exchanges and interaction of ACP and EU
youth organisations.’.

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9.

The introductory part of Article 28 shall be replaced by
the following:

Subject to the agreement of the ACP State or States
the following shall also be eligible for

2.
concerned,
financial support:

‘Cooperation shall provide effective assistance to achieve
the objectives and priorities which the ACP States have
set themselves in the context of regional and sub-regional
cooperation and integration, including inter-regional and
intra-ACP cooperation. Regional cooperation may also
involve non-ACP developing countries as well as Over-
seas Countries and Territories (OCTs) and outermost
regions. In this context, cooperation support shall aim
to:’.

10.

In Article 29(a), point
following:

(i) shall be replaced by the

‘(i)

regional integration institutions and organisations
set up by the ACP States and those with ACP State
participation that promote regional cooperation
and integration, and’.

11. Paragraph 2 of Article 30 shall be replaced by the

following:

(a)

regional public or

national and/or
semi-public
agencies and departments of ACP States, including
Parliaments, and,
financial
institutions and development banks;

in particular,

their

(b)

companies, firms and other private organisations
and private operators of ACP States;

(c)

enterprises of a Community Member State to enable
them,
in addition to their own contribution, to
undertake productive projects in the territory of an
ACP State;

(d) ACP or Community financial intermediaries provid-
ing, promoting and financing private investments in
ACP States;

‘2. Cooperation shall also support inter and intra-ACP
cooperation schemes and initiatives,
including those
involving non-ACP developing countries.’.

(e)

local decentralised authorities from ACP States and
the Community; and

12. The following indent shall be added to Article 43(4):

‘

the development and encouragement of the use of
local content for Information and Communication
Technologies.’.

13. Article 58 shall be replaced by the following:

(f)

developing countries that are not part of the ACP
Group where they participate in a joint initiative or
regional organisation with ACP States.

3. Non-State actors from ACP States and the Commu-
nity which have a local character shall be eligible for
this Agreement,
financial
according to the modalities agreed in the national and
regional indicative programmes.’.

support provided under

‘Article 58

E l i g i b i l i t y f o r f i n a n c i n g

1. The following entities or bodies shall be eligible for
financial support provided under this Agreement:

(a) ACP States;

(b)

regional or inter-State bodies to which one or more
ACP States belong, including bodies with non-ACP
State members, which are authorised by those ACP
States; and

(c)

joint bodies set up by the ACP States and the
Community to pursue certain specific objectives.

14. Paragraphs 2 and 3 of Article 68 shall be replaced by the

following:

‘2.
The purpose of support in cases of short-term
fluctuations in export earnings is to safeguard socio-
economic reforms and policies that could be affected
negatively as a result of a drop in revenue and to remedy
the adverse effects of instability of export earnings, in
particular from agricultural and mining products.

The

extreme dependence of

the ACP States'
3.
economies on exports, in particular from the agricultural
and mining sectors, shall be taken into account in the
allocation of resources in the year of application. In this
context, the least developed, landlocked and island, post-
conflict and post natural disaster ACP States shall receive
more favourable treatment.’.

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15.

In Article 89, paragraph 1 shall be replaced by the
following:

‘1.
Specific actions shall be pursued to support island
ACP States in their efforts to halt and reverse their
increasing vulnerability caused by new and severe
economic, social and ecological challenges. These actions
shall seek to advance the implementation of the small
island developing States' priorities for sustainable devel-
opment, while promoting a harmonised approach to
their economic growth and human development.’.

16. Article 96 shall be amended as follows:

(a) The following paragraph shall be inserted:

‘1a. Both Parties agree to exhaust all possible
options for dialogue under Article 8, except in
cases of special urgency, prior to commencement of
the consultations referred to in paragraph 2(a) of
this Article.’;

(b)

In paragraph 2, point (a) shall be replaced by the
following:

‘(a)

If, despite the political dialogue on the essential
elements as provided for under Article 8 and
paragraph 1a of this Article, a Party considers
that the other Party fails to fulfil an obligation
for human rights,
stemming from respect
democratic principles and the rule of
law
referred to in Article 9(2), it shall, except in
cases of special urgency, supply the other Party
and the Council of Ministers with the relevant
information required for a thorough examina-
tion of the situation with a view to seeking a
solution acceptable to the Parties. To this end,
it shall invite the other Party to hold consulta-
tions that focus on the measures taken or to be
taken by the Party concerned to remedy the
situation in accordance with Annex VII.

If the consultations do not lead to a solution
acceptable to both Parties,
if consultation is
refused or in cases of special urgency, appro-
priate measures may be taken. These measures
shall be revoked as soon as the reasons for
taking them no longer prevail.’.

17.

In Article 97, paragraph 2 shall be replaced by the
following:

‘2.
In such cases either Party may invite the other to
enter into consultations. Such consultations shall begin
no later than 30 days after the invitation and dialogue
under the consultations procedure shall last no longer
than 120 days.’.

18. Article 100 shall be replaced by the following:

‘Article 100

S t a t u s o f t h e t e x t s

The Protocols and Annexes attached to this Agreement
shall form an integral part thereof. Annexes Ia, II, III, IV
and VI may be revised, reviewed and/or amended by the
Council of Ministers on the basis of a recommendation
from the ACP-EC Development Finance Cooperation
Committee.

This Agreement, drawn up in two copies in the Czech,
Danish, Dutch, English, Estonian, Finnish, French, Ger-
man, Greek, Hungarian,
Italian, Latvian, Lithuanian,
Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish
and Swedish languages, all texts being equally authentic,
the General
shall be deposited in the archives of
Secretariat of the Council of the European Union and
the Secretariat of
the ACP States, which shall both
transmit a certified copy to the government of each of
the Signatory States.’.

The consultations shall be conducted at the
form considered most
level and in the
appropriate for finding a solution.

C. ANNEXES

1.

In Annex I, the following point shall be added:

The consultations shall begin no later than 30
days after the invitation and shall continue for
a period established by mutual agreement,
depending on the nature and gravity of the
violation. In no case shall the dialogue under
the consultations procedure last longer than
120 days.

‘9.
By derogation from Article 58 of this Agreement,
an amount of EUR 90 million shall be transferred to the
intra ACP envelope under the 9th EDF. This amount may
be allocated to finance devolution for the period 2006 to
2007, and shall be managed directly by the Commission.’.

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2.

The following Annex shall be inserted:

‘ANNEX Ia

Multiannual
financial
under this Agreement

framework of cooperation

1.
For the purposes set out in this Agreement and for a
period beginning on 1 March 2005, a multiannual
financial framework of cooperation shall cover commit-
ments beginning on 1 January 2008 for a period of five
or six years.

2.
For this new period, the European Union shall
maintain its aid effort to ACP States at least at the same
level as that of the 9th EDF, not including balances; to
this shall be added, based on Community estimates, the
effects of inflation, growth within the European Union
and enlargement to 10 new Member States in 2004.

to the multiannual
3. Any required amendments
financial framework or relative parts of the Agreement
shall be decided by the Council of Ministers by
derogation from Article 95 of this Agreement.’.

3. Annex II shall be amended as follows:

(a) Article 2 shall be amended as follows:

(i)

paragraph 7 shall be replaced by the following:

‘7. Ordinary loans may be extended on
concessional
in the
following cases:

terms and conditions

(a)

(aa)

for infrastructure projects in the Least
Developed Countries,
in post-conflict
countries and post-natural disaster coun-
tries — other
than those referred to
under (aa) — that are prerequisites for
private sector development. In such cases,
the interest
the loan will be
reduced by 3 %;

rate of

for infrastructure projects by commer-
that are pre-
cially-run public entities,
requisites for private sector development
in countries subject to restrictive borrow-
ing
the Heavily
Indebted Poor Countries (HIPC) initiative
or another internationally agreed debt
sustainability framework. In such cases,

conditions

under

the Bank shall seek to reduce the average
cost of
funds through appropriate co-
financing with other donors. Should this
not be deemed possible, the interest rate
of
the loan may be reduced by such
amount as required to comply with the
level arising from the HIPC initiative or a
new internationally agreed debt sustain-
ability framework;

(b)

for projects which involve restructuring
operations in the framework of privatisa-
tion or for projects with substantial and
clearly demonstrable social or environ-
mental benefits. In such cases, loans may
be extended with an interest rate subsidy
the amount and form of which shall be
to the particular
decided with respect
characteristics of the project. However,
the interest rate subsidy shall not be
higher than 3 %.

The final rate of loans falling under (a) or
(b) shall, in any case, never be less than
50 % of the reference rate.’;

(ii) paragraph 9 shall be replaced by the following:

‘9.
Interest subsidies may be capitalised or
may be used in the form of grants. Up to 10 %
of the budget for interest rate subsidies may be
used to support project
related technical
assistance in ACP countries.’;

(b) Article 3 shall be amended as follows:

(i)

paragraph 1 shall be replaced by the following:

‘1.
The Investment Facility shall operate in all
economic sectors and support investments of
private and commercially run public sector
entities,
including revenue generating eco-
nomic and technological infrastructure critical
for the private sector. The Facility shall:

(a)

be managed as a revolving fund and aim
at being financially sustainable. Its opera-
tions shall be on market-related terms
and conditions and shall avoid creating
distortions on local markets and displa-
cing private sources of finances;

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(b)

support the ACP financial sector and have
a catalytic effect by encouraging the
mobilisation of long-term local resources
and attracting foreign private investors
and lenders to projects in the ACP States;

(d) The following Articles shall be inserted:

‘Article 6a

(c)

(d)

bear part of the risk of the projects it
funds,
its financial sustainability being
ensured through the portfolio as a whole
and not
interventions;
and

from individual

funds

through ACP
seek to channel
national and regional
institutions and
programmes that promote the develop-
ment of small-and medium-sized enter-
prises (SMEs).’;

(ii)

the following paragraph shall be inserted:

this

the total

initial endowment of

‘1a. The Bank shall be remunerated for
the cost
incurrred in managing the
Investment Facility. For the first two years
after the entry into force of the second
remuneration
financial protocol,
shall be up to an amount of 2 % p. a.
of
the
Investment Facility. Thereafter, the remu-
neration of the Bank shall include a fixed
component of 0,5 % p. a. of the initial
endowment and a variable component of
an amount of up to 1,5 % p. a. of the
portfolio of the Investment Facility that is
invested in projects in ACP countries. The
remuneration shall be financed out of the
Investment Facility.’;

(c)

In Article 5, point (b) shall be replaced by the
following:

‘(b)

in the case of ordinary loans and risk capital
financing for small-and medium-sized enter-
prises (SMEs), the exchange rate risk shall, as a
general rule, be shared by the Community, on
the one hand, and by the other Parties
involved, on the other. On average, the foreign
exchange rate risk should be shared equally;
and’;

Annual reporting on the Investment Facility

Representatives of the EU Member States respon-
sible for the Investment Facility, Representatives of
the ACP States, as well as the European Investment
Bank, the European Commission, the EU Council
Secretariat and the ACP Secretariat shall meet
annually to discuss the operations, performance
and policy questions concerning the Investment
Facility.

Article 6b

Review of performance of the Investment
Facility

The overall performance of the Investment Facility
shall be subject to a joint review at the mid-term
and end-term of a financial protocol. Such an
exercise may include a recommendation on how to
improve the implementation of the Facility.’.

4. Annex IV shall be amended as follows:

(a) Article 3 shall be amended as follows:

(i)

in paragraph 1, point (a) shall be replaced by
the following:

in particular

‘(a) needs shall be assessed on the basis of
criteria pertaining to per capita income,
indicators and
social
population size,
level of
indebtedness, export earning
losses and dependence on export earn-
ings,
in the sectors of
agriculture and mining. Special treatment
shall be accorded to the least developed
ACP States, and the vulnerability of island
and landlocked States shall duly be taken
into account. In addition, account shall be
taken of
the particular difficulties of
countries dealing with the aftermath of
conflict or natural disaster; and’;

(ii)

the following paragraph shall be added:

‘5. Without prejudice to Article 5(7) con-
cerning reviews, the Community may, in order
to take account of special needs or exceptional
performance, increase a country's allocation.’;

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(b) Article 4 shall be amended as follows:

(i)

paragraph 1 shall be replaced by the following:

(a)

(b)

specific and clearly identified operations,
especially those that can be committed
before the next review;

for

timetable

implementation and
a
review of
the indicative programme,
including commitments and disburse-
ments of resources; and

‘1. Upon receipt of the information referred
to above, each ACP State shall draw up and
submit to the Community a draft indicative
programme on the basis of and consistent with
its development objectives and priorities as
expressed in the CSS. The draft
indicative
programme shall contain:

(a)

the focal sector, sectors or areas on which
support should be concentrated;

(b)

(c)

(d)

appropriate measures

the most
and
operations for attaining the objectives
and targets in the focal sector, sectors or
areas;

the resources reserved for programmes
and projects outside the focal sector(s)
and/or the broad outlines of such activ-
ities, as well as an indication of
the
resources to be deployed for each of these
elements;

the types of non-State actors eligible for
funding, in accordance with the criteria
laid down by the Council of Ministers, the
resources allocated for non-State actors
and the type of activities to be supported,
which must be not-for-profit;

(c)

the parameters
reviews.’;

and criteria

for

the

(iii)

the following paragraph shall be added:

from carrying out his duty,

‘5. When an ACP State faces a crisis situation
as the result of a war or other conflict, or
exceptional circumstances with a comparable
effect, preventing the National Authorising
the
Officer
Commission may itself manage the resources
allocated to the State in question in accordance
with Article 3 and use it for special support.
Special support may concern peace-building
policies, conflict management and resolution,
post-conflict support,
including institution-
building, economic and social-development
activities,
the
needs of the most vulnerable sections of the
population. The Commission and the ACP
State concerned shall revert to normal imple-
mentation and normal management proce-
dures as soon as the authorities responsible for
managing cooperation are able to do so once
more.’;

taking particular account of

(c) Article 5 shall be amended as follows:

(e)

proposals for regional programmes and
projects; and

(i)

this article,

the term ‘Head of
throughout
Delegation’ shall be replaced by the term
‘Commission’;

(f)

a reserve for insurance against possible
claims and to cover cost increases and
contingencies.’;

(ii)

in paragraph 4, point (b) shall be replaced by
the following:

(ii) paragraph 3 shall be replaced by the following:

‘(b) programmes and projects outside the

focal sector(s);’;

‘3.
The draft indicative programme shall be
the subject of an exchange of views between
the ACP State concerned and the Community.
The indicative programme shall be adopted by
common agreement between the Commission
on behalf of the Community and the ACP State
concerned. It shall, when adopted, be binding
on both the Community and that State. This
indicative programme shall be annexed to the
CSS and shall in addition contain:

(iii) paragraph 7 shall be replaced by the following:

Following the completion of

‘7.
the mid-
term and end-of-term reviews, the Commis-
sion may, on behalf of the Community, revise
the resource allocation in the light of current
the ACP State
needs and performance of
concerned.’;

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(d)

In Article 6, paragraph 1 shall be replaced by the
following:

(g) Article 12 shall be replaced by the following:

‘1. Regional cooperation shall cover operations
benefiting and involving:

(a)

two or more or all ACP States as well as any
non-ACP developing countries participating in
these operations, and/or

(b)

a regional body of which at least two ACP
States are members,
including those with
members which are non-ACP countries.’;

(e) Article 9 shall be replaced by the following:

‘Article 9

‘Article 12

Intra-ACP cooperation

1. At the beginning of the period covered by the
Financial Protocol, the Community shall indicate to
the ACP Council of Ministers the part of the funds
earmarked for regional operations that shall be set
aside for operations that benefit many or all ACP
States. Such operations may transcend the concept
of geographic location.

2. The Community may, in order to take account
of new needs for increasing the impact of intra-ACP
activities,
intra-ACP
increase the allocation for
cooperation.’.;

(h) Article 13 shall be replaced by the following:

‘Article 13

Resource allocation

Requests for financing

1. At the beginning of the period covered by the
Financial Protocol, each region shall receive from
the Community an indication of the volume of
resources from which it may benefit during a five-
year period. The indicative resource allocation shall
be based on an estimate of needs and the progress
and prospects in the process of regional coopera-
tion and integration.
to achieve an
adequate scale and to increase efficiency, regional
and national funds may be mixed for financing
regional operations with a distinct national compo-
nent.

In order

2. Without prejudice to Article 11 concerning
reviews,
in order to take
account of new needs or exceptional performance,
increase a region's allocation.’;

the Community may,

(f)

In Article 10(1), point (c) shall be replaced by the
following:

‘(c)

the programmes and projects enabling those
objectives to be attained, insofar as they have
been clearly identified, as well as an indication
of the resources to be deployed for each of
their
these elements and a timetable for
implementation.’;

1. Requests for financing of regional programmes
shall be submitted by:

(a)

a duly mandated regional body or organisa-
tion; or

(b)

a duly mandated sub-regional body or organi-
sation or an ACP State in the region concerned
at the programming stage, provided that the
operation has been identified in the RIP.

2. Requests
for
grammes shall be submitted by:

financing of

intra-ACP pro-

(a)

at least three duly mandated regional bodies or
organisations belonging to different geo-
graphic regions, or at least two ACP States
from each of the three regions; or

(b)

the ACP Council of Ministers, or the ACP
Committee of Ambassadors; or

(c)

international organisations carrying out opera-
tions that contribute to the objectives of
regional cooperation and integration, such as
the African Union, subject to prior approval by
the ACP Committee of Ambassadors.’;

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(i) Article 14 shall be replaced by the following:

(j)

In Chapter 3, the title shall be replaced by the
following:

‘Article 14

Procedures for implementation

1.

(deleted)

2.

(deleted)

3. Account being taken of
the objectives and
regional cooperation,
inherent characteristics of
including intra-ACP cooperation, operations under-
taken in this sphere shall be governed by the
procedures established for development
finance
cooperation where applicable.

4.
In particular and subject to paragraphs 5 and 6,
any regional programme or project financed from
the Fund shall give rise to:

(a)

either,
in accordance with Article 17, a
financing agreement drawn up between the
Commission and one of the bodies mentioned
in Article 13; in such cases, the relevant body
shall designate a Regional Authorising Officer
whose duties correspond mutatis mutandis with
those of the National Authorising Officer;

(b) or a grant contract as defined in Article 19a
drawn up between the Commission and one of
the bodies mentioned in Article 13, depending
on the nature of the action and where the
relevant body, other than an ACP State,
is
responsible for carrying out the programme or
project.

Programmes and projects financed from the
5.
Fund and for which requests for financing have
been presented by international organisations in
accordance with Article 13(2)(c) shall give rise to
the drawing up of a grant contract.

6.
Programmes and projects financed from the
Fund for which requests for financing have been
presented by the ACP Council of Ministers or
Committee of Ambassadors shall be implemented
either by the ACP Secretariat,
in which case a
financing agreement shall be drawn up between the
Commission and the Secretariat in accordance with
Article 17, or by the Commission, depending on the
nature of the action.’;

‘APPRAISAL AND FINANCING’;

(k) Article 15 shall be replaced by the following:

‘Article 15

Identification, preparation and appraisal of
programmes and projects

Programmes and projects

1.
that have been
presented by the ACP State concerned shall be
subject to joint appraisal. The ACP-EC Development
Finance Cooperation Committee shall develop the
general guidelines and criteria for appraisal of
programmes and projects. These programmes and
projects are generally multiannual and may incor-
porate a whole range of actions of a limited size in a
particular area.

2.
Programme and project dossiers prepared and
submitted for financing must contain all informa-
tion necessary for the appraisal of the programmes
and projects or, where programmes and projects
have not been completely defined, provide the
broad outlines necessary for their appraisal.

Programme and project appraisal shall take due
3.
account of national human resource constraints and
ensure a strategy favourable to the promotion of
such resources. It shall also take into account the
specific characteristics and constraints of each ACP
State.

Programmes and projects to be implemented
4.
by non-State actors which are eligible in accordance
with this Agreement may be appraised by the
Commission alone and give rise to the establish-
ment, between the Commission and non-State
actors, of grant contracts as defined in Article 19a.
This appraisal shall comply with Article 4(1)(d)
regarding the types of actors, their eligibility and the
type of activity to be supported. The Commission,
through the Head of Delegation, shall inform the
such allocated
National Authorising Officer of
grants.’;

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(l) Article 16 shall be replaced by the following:

‘Article 16

Financing proposal and decision

1. The conclusions of
the appraisal
shall be
the final
summarised in a financing proposal,
version of which shall be drawn up by the
Commission in close collaboration with the ACP
State concerned.

2.

(deleted)

3.

(deleted)

4. The Commission, acting on behalf of
the
Community, shall communicate its financing deci-
sion to the ACP State concerned within 90 days
from the date on which the final version of the
financial proposal is drawn up.

5. Where the financing proposal is not adopted by
the Commission on behalf of the Community, the
ACP State concerned shall be informed immediately
of the reasons for that decision. In such a case, the
representatives of the ACP State concerned may,
within 60 days thereafter, request either:

(a)

that the matter be referred to the ACP-EC
Development Finance Cooperation Committee
set up under this Agreement; or

(b)

that they be given a hearing by the Commu-
nity's representatives.

6.
Following such a hearing, a definitive decision
to adopt or reject the financing proposal shall be
the
taken by the Commission on behalf of
Community. Before any decision is taken, the ACP
State concerned may forward to the Commission
any facts which may appear necessary to supple-
ment the information available to it.’;

2. The financing agreement shall be drawn up
between the Commission and the ACP State
concerned within 60 days of the decision taken
by the Commission on behalf of the Community.
The financing agreement shall:

(a)

in particular,

the details of

specify,
the
Community's financial contribution, the finan-
cing arrangements and terms and the general
and specific provisions relating to the pro-
gramme or project concerned; and

(b) make adequate provision for appropriations to
cover cost increases and contingencies.

3. Any unexpended balance left upon closure of
the accounts of programmes and projects shall
accrue to the ACP State or States concerned.’;

(n) Article 18 shall be replaced by the following:

‘Article 18

Overrun

1. Once it appears that there is a risk of cost over-
runs over and above the financing available under
the financing agreement, the National Authorising
Officer shall notify the Commission and request its
prior approval on the measures which the National
Authorising Officer intends to take in order to cover
such cost over-runs, either by reducing the scale of
the programme or project or by calling on national
or other non-Community resources.

2.
If it is not possible to reduce the scale of the
programme or project or to cover the over-runs
with other resources, the Commission, acting on
behalf of the Community, may, on the basis of a
reasoned request from the National Authorising
Officer, take an additional financing decision on
resources from the indicative programme.’;

(m) Article 17 shall be replaced by the following:

(o) Article 19 shall be replaced by the following:

‘Article 17

Financing Agreement

‘Article 19

Retroactive financing

1.
Save as otherwise provided for in this Agree-
ment, for any programme or project financed from
the Fund, a financing agreement shall be drawn up
between the Commission and the ACP State
concerned.

1.
In order to ensure early project start-up, avoid
gaps between sequential projects and prevent
delays,
the ACP States may, on completion of
project appraisal and before the financing decision
is taken, pre-finance activities linked to the start-up
of programmes, preliminary and seasonal work,

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orders for equipment with long delivery lead times
as well
some on-going operations. Such
expenditure shall satisfy the procedures provided
for in this Agreement.

as

In the context of this Annex, grants are direct
3.
financial contributions awarded by way of a
donation in order to finance:

2. Any expenditure referred to in paragraph 1
shall be mentioned in the financing proposal and
shall be without prejudice to the financing decision
the
taken by the Commission on behalf of
Community.

Expenditure made by the ACP State under this
3.
Article shall be retroactively financed under the
programme or project, once the financing agree-
ment is signed.’;

(a)

either an action designed to help achieve an
objective of this Agreement or of a programme
or project adopted in accordance with this
Agreement, or

(b)

the functioning of a body which pursues such
an objective.

Grants shall be covered by a written contract.

(p)

In Chapter 4, the title shall be replaced by the
following:

Article 19b

‘IMPLEMENTATION’;

(q) The following Articles shall be inserted:

‘Article 19a

Implementation measures

Tender procedure with suspension clause

In order to ensure early project start-up, the ACP
States may, in all duly substantiated cases and in
agreement with the Commission, issue invitations
to tender for all types of contracts with a suspension
clause, once project appraisal
is completed but
before the financing decision is taken. Such a
provision must be mentioned in the financing
proposal.’;

(r) Article 20 shall be replaced by the following:

1. Where financial execution is the Commission's
responsibility, implementation of programmes and
projects financed from the Fund shall consist chiefly
of the following:

‘Article 20

Eligibility

(a)

awarding of procurement contracts;

(b)

awarding of grants;

(c)

performance by direct labour;

(d) direct payments as budgetary support, support
for
relief and
support to cover short-term fluctuations in
export earnings.

sectoral programmes, debt

are

In the context of

this Annex, procurement
2.
contracts
for pecuniary interest
concluded in writing in order to obtain, against
payment of a price, the supply of movable assets,
the execution of works or the provision of services.

contracts

Save where a derogation is granted in accordance
with Article 22, and without prejudice to Article 26:

1.

2.

participation in procedures for the awarding of
procurement contracts or grants financed from
the Fund shall be open to all natural and legal
persons from ACP States and Member States of
the Community;

supplies and materials purchased under a
contract financed from the Fund must origi-
nate in a State that is eligible under point 1. In
this context, the definition of the concept of
“originating products” shall be assessed by
reference to the relevant international agree-
ments, and supplies originating in the Com-
munity shall include supplies originating in the
Overseas Countries and Territories;

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3.

participation in procedures for the awarding of
procurement contracts or grants financed from
the Fund shall be open to international
organisations;

(b)

the competitiveness of contractors, suppliers
and consultants from the Member States and
the ACP States;

4. whenever

the Fund finances an operation
implemented through an international organi-
sation, participation in procedures for
the
awarding of procurement contracts or grants
shall be open to all natural and legal persons
who are eligible under point 1, and to all
natural and legal persons who are eligible
according to the rules of the organisation, care
being taken to ensure equal treatment of all
donors. The same rules apply for supplies and
materials;

5. whenever

the Fund finances an operation
implemented as part of a regional
initiative,
participation in procedures for the awarding of
procurement contracts or grants shall be open
to all natural and legal persons who are eligible
under point 1, and to all natural and legal
persons from a country participating in the
relevant initiative. The same rules apply for
supplies and materials;

6. whenever the Fund finances an operation co-
financed with a third State, participation in
procedures for the awarding of procurement
contracts or grants shall be open to all natural
and legal persons eligible under point 1, and to
all persons eligible under the rules of the above
mentioned third State. The same rules apply
for supplies and materials.’;

(s) Article 22 shall be replaced by the following:

‘Article 22

Derogations

legal persons

In exceptional duly substantiated circum-
1.
stances, natural or
from third
countries not eligible under Article 20 may be
authorised to participate in procedures for
the
awarding of procurement contracts or grants
financed by the Community at the justified request
of
the ACP States concerned. The ACP States
concerned shall, on each occasion, provide the
Commission with the information needed to decide
on such derogation, with particular attention being
given to:

(a)

the geographical
concerned;

location of the ACP State

(c)

the need to avoid excessive increases in the
cost of performance of the contract;

(d)

transport difficulties or delays due to delivery
times or other similar problems;

(e)

technology that is the most appropriate and
best suited to local conditions;

(f)

cases of extreme urgency;

(g)

the availability of products and services in the
relevant markets.

2.
In the case of projects financed from the
Investment Facility, the procurement rules of the
Bank shall apply.’;

(t) Article 24 shall be replaced by the following:

‘Article 24

Implementation by direct labour

In the

case of direct

1.
labour operations,
programmes and projects shall be implemented
through public or semi-public agencies or depart-
ments of the ACP State or States concerned or by
the legal person responsible for executing the
operation.

2. The Community shall contribute to the costs of
the department involved by providing the equip-
ment and/or materials that it lacks and/or resources
to allow it to acquire additional staff required in the
form of experts
from within the ACP States
concerned or other ACP States. The Community's
participation shall cover only costs incurred by
supplementary measures and temporary expendi-
ture relating to execution that are strictly confined
to the requirements of the programmes and projects
in question.

estimates

Programme

3.
implementing direct-
labour operations must comply with the Commu-
nity rules, procedures and standard documents laid
down by the Commission, as applicable at the time
of approval of the programme estimates.’;

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(u) Article 26 shall be replaced by the following:

‘Article 26

Preferences

1. Measures shall be taken to encourage the widest
participation of the natural and legal persons of
ACP States in the performance of contracts financed
by the Fund in order to permit the optimization of
the physical and human resources of those States.
To this end:

(a)

(b)

for works contracts of a value of less than EUR
5 000 000, tenderers from the ACP States,
provided that at least one quarter of the capital
stock and management staff originates from
one or more ACP States, shall be accorded a
10 % price preference where tenders of an
equivalent economic, technical and adminis-
trative quality are compared;

for supply contracts, irrespective of the value
of the supplies, tenderers from the ACP States
who offer supplies of at least 50 % in contract
value of ACP origin, shall be accorded a 15 %
price preference where tenders of equivalent
economic, technical and administrative quality
are compared;

firms or
other ACP States' companies or
national experts or consultants selected by
mutual agreement. This cooperation may take
the form either of a joint venture, or of a
subcontract or of on-the-job training of
trainees.

2. Where two tenders are acknowledged to be
equivalent on the basis of the criteria stated above,
preference shall be given:

(a)

to the tenderer of an ACP State; or

(b)

if no such tender
tenderer who:

is forthcoming,

to the

(i)

allows for the best possible use of the
physical and human resources of the ACP
States;

(ii) offers the greatest subcontracting possi-
firms or
for ACP companies,

bilities
natural persons; or

(iii)

is a consortium of natural persons,
companies and firms from ACP States
and the Community.’;

(v)

In Chapter 6, the title shall be replaced by the
following:

(c)

in respect of service contracts, where tenders
of equivalent economic and technical quality
are compared, preference shall be given to:

‘FUND-RESOURCE MANAGEMENT AND
EXECUTING AGENTS’;

(i)

experts, institutions or consultancy com-
panies or firms from ACP States with the
required competence;

(ii) offers submitted by ACP firms, either
in a consortium with

individually or
European partners; and

(iii) offers presented by European tenderers
with ACP sub-contractors or experts;

(w) Article 34 shall be replaced by the following:

‘Article 34

The Commission

1. The Commission shall undertake the financial
execution of operations carried out with Fund
resources, with the exception of the Investment
Facility and interest-rate subsidies, using the follow-
ing main methods of management:

(d) where subcontracting is envisaged, preference
shall be given by the successful tenderer to
natural persons, companies and firms of ACP
States capable of performing the contract
required on similar terms; and

(a)

centralised management;

(b) decentralised management.

(e)

the ACP State may, in the invitation to tender,
offer prospective tenderers assistance from

2. As a general rule, the financial execution of the
Fund resources by the Commission shall be
decentralised.

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In this instance, the execution duties shall be carried
out by the ACP States in accordance with Article 35.

(c)

prepare tender dossiers and, where appropri-
ate, the documents for calls for proposals;

3.
In order to carry out the financial execution of
the Fund resources, the Commission shall delegate
its executive powers within its own departments.
The Commission shall inform the ACP States and
the ACP-EC Development Finance Cooperation
Committee of this delegation of tasks.’;

(x) Article 35 shall be replaced by the following:

‘Article 35

National Authorising Officer

1. The Government of each ACP State shall
appoint a National Authorising Officer to represent
it in all operations financed from the Fund resources
managed by the Commission and the Bank. The
National Authorising Officer shall appoint one or
more deputy National Authorising Officers
to
replace him when he is unable to carry out his
inform the Commission of this
duties and shall
appointment. Wherever the conditions regarding
institutional capacity and sound financial manage-
ment are met, the National Authorising Officer may
delegate his functions for implementation of the
programmes and projects concerned to the body
responsible within the national administration. The
National Authorising Officer
inform the
shall
Commission of any such delegation.

When the Commission becomes aware of problems
in carrying out procedures relating to management
of Fund resources, it shall, in conjunction with the
National Authorising Officer, make all contacts
necessary to remedy the situation and take any
appropriate steps.

The National Authorising Officer shall assume
financial responsibility only for the executive tasks
entrusted to him.

Where Fund resources are managed in a decen-
tralised way and subject to any additional powers
that might be granted by the Commission,
the
National Authorising Officer shall:

(a)

be responsible for the coordination, program-
ming, regular monitoring and annual, mid-
term and end-of-term reviews of implementa-
tion of cooperation, and for coordination with
donors;

(b)

in close cooperation with the Commission, be
responsible for the preparation, submission
and appraisal of programmes and projects;

(d)

(e)

(f)

(g)

submit tender dossiers and, where appropriate,
to the
documents for calls for proposals,
Commission for approval before launching
invitations to tender and, where appropriate,
calls for proposals;

in close cooperation with the Commission,
launch invitations
and, where
to tender
appropriate, calls for proposals;

receive tenders and,
if applicable, proposals,
and transmit copies of tenders to the Commis-
sion; preside over the opening of tenders and
decide on the results of
their examination
within the period of validity of the tenders,
taking account of
the time required for
approval of contracts;

invite the Commission to the opening of
tenders and, if applicable, proposals and notify
the Commission of the results of the examina-
tion of tenders and proposals for approval of
the proposals for the award of contracts and
grants;

(h)

submit contracts and programme estimates
and any addenda thereto to the Commission
for approval;

(i)

(j)

(k)

sign the
contracts
approved by the Commission;

and addenda

thereto

clear and authorise expenditure within the
limits of the funds assigned to him; and

during the execution operations, make any
adaptation arrangements necessary to ensure
the proper execution of approved programmes
or projects from the economic and technical
viewpoint.

2. The National Authorising Officer shall, during
the execution of operations and subject
to the
requirement to inform the Commission, decide on:

(a)

technical adjustments and alterations to pro-
grammes and projects in matters of detail so
long as
the technical
solution adopted and remain within the limits
of the reserve for adjustments provided for in
the financing agreement;

they do not affect

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(b)

changes of site for multiple-unit programmes
or projects where
justified on technical,
economic or social grounds;

(c)

imposition or remission of penalties for delay;

(d)

acts discharging guarantors;

(e)

purchase of goods, irrespective of their origin,
on the local market;

(f)

use of construction equipment and machinery
not originating in the Member States or ACP
States provided there is no production of
comparable equipment and machinery in the
Member States or ACP States;

(g)

subcontracting;

(h)

final acceptance, provided that the Commis-
sion is present at provisional acceptance,
the corresponding minutes and,
endorses
the final
is present at
where appropriate,
acceptance, in particular where the extent of
the reservations recorded at the provisional
acceptance necessitates major additional work;
and

(i)

hiring of consultants and other
assistance experts.’;

technical

(y) Article 36 shall be replaced by the following:

‘Article 36

Head of Delegation

1. The Commission shall be represented in each
ACP State or in each regional grouping which
expressly so requests, by a delegation under the
authority of a Head of Delegation, with the approval
of the ACP State or States concerned. Appropriate
measures shall be taken in any case in which a Head
of Delegation is appointed to a group of ACP States.
The Head of Delegation shall
the
Commission in all spheres of its competence and
in all its activities.

represent

2. The Head of Delegation shall be the main
contact for ACP States and bodies or organisations
eligible for financial support under the Agreement.
He shall cooperate and work in close cooperation
with the National Authorising Officer.

3. The Head of Delegation shall have
the
necessary instructions and delegated powers to
the
facilitate and expedite all operations under
Agreement.

4. On a regular basis, the Head of Delegation shall
inform the national authorities of Community
activities which may directly concern cooperation
between the Community and the ACP States.’;

(z) Article 37 shall be replaced by the following:

‘Article 37

Payments

For the purpose of effecting payments in the
1.
the ACP States, accounts
national currencies of
denominated in the currencies of
the Members
States or in euro may be opened in the ACP States
by and in the name of the Commission with a
national public or semi-public financial institution
chosen by agreement between the ACP State and
the Commission. This institution shall exercise the
functions of National Paying Agent.

2. The National Paying Agent shall receive no
remuneration for its services and no interest shall be
payable by it on deposited funds. The local accounts
shall be replenished by the Commission in the
currency of one of the Member States or in euro,
based on estimates of future cash requirements,
which shall be made sufficiently in advance to avoid
the need for pre-financing by ACP States and to
prevent delayed disbursements.

3.

(deleted)

Payments shall be made by the Commission in
4.
accordance with the rules
laid down by the
Community and the Commission, where appro-
priate after the expenditure has been cleared and
authorised by the National Authorising Officer.

5.

(deleted)

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6. The procedures for clearance, authorisation and
payment of expenditure must be completed within a
period of 90 days from the date on which the
payment becomes due. The National Authorising
Officer shall process and deliver
the payment
authorisation to the Head of Delegation not later
than 45 days before the due date.

7. Claims for delayed payments shall be borne by
the ACP State or States concerned, and by the
Commission from its own resources, for that part of
the delay for which each Party is responsible in
accordance with the above procedures.’.

5.

The following Annex shall be added:

‘ANNEX VII

Political dialogue as regards human rights, demo-
cratic principles and the rule of law

Article 1

Objectives

2. The Parties may jointly develop and agree specific
benchmarks or targets with regard to human rights,
democratic principles and the rule of
law within the
parameters of
internationally agreed standards and
norms, taking into account special circumstances of the
ACP State concerned. Benchmarks are mechanisms for
reaching targets through the setting of
intermediate
objectives and timeframes for compliance.

3. The political dialogue set out in paragraphs 1 and 2
shall be systematic and formal and shall exhaust all
possible options prior to consultations under Article 96
of the Agreement.

4.
Except for cases of special urgency as defined in
Article 96(2)(b) of the Agreement, consultations under
Article 96 may also go ahead without preceding
intensified political dialogue, when there is persistent
lack of compliance with commitments taken by one of
the Parties during an earlier dialogue, or by a failure to
engage in dialogue in good faith.

Political dialogue under Article 8 of the Agreement
5.
shall also be utilised between the Parties to assist
countries subject to appropriate measures under Article
96 of the Agreement, to normalise the relationship.

1. The consultations envisaged in Article 96(2)(a) will
take place, except
in cases of special urgency, after
exhaustive political dialogue as envisaged in Article 8 and
Article 9(4) of the Agreement.

Article 3

2. Both Parties should conduct such political dialogue
in the spirit of the Agreement and bearing in mind the
Guidelines for ACP-EU Political Dialogue established by
the Council of Ministers.

3.
Political Dialogue is a process which should foster
the strengthening of ACP-EU relations and contribute
towards achieving the objectives of the Partnership.

Article 2

Intensified Political Dialogue preceding
consultations under Article 96 of the Agreement

Political dialogue concerning respect

for human
1.
rights, democratic principles and the rule of law shall be
conducted pursuant to Article 8 and Article 9(4) of the
Agreement and within the parameters of internationally
recognised standards and norms. In the framework of
this dialogue the Parties may agree on joint agendas and
priorities.

Additional rules on consultation under Article 96 of
the Agreement

1. The Parties shall strive to promote equality in the
level of representation during consultations under Article
96 of the Agreement.

2. The Parties are committed to transparent interaction
before, during and after the formal consultations, bearing
in mind the specific benchmarks and targets referred to
in Article 2(2) of this Annex.

3. The Parties shall use the 30-day notification period
as provided for in Article 96(2) of the Agreement for
effective preparation by the Parties, as well as for deeper
consultations within the ACP Group and among the
Community and its Member States. During the consulta-
tion process, the Parties should agree flexible timeframes,
whilst acknowledging that cases of special urgency, as
defined in Article 96(2)(b) of the Agreement and Article
2(4) of this Annex, may require an immediate reaction.

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4. The Parties acknowledge the role of the ACP Group
in political dialogue based on modalities
to be
determined by the ACP Group and communicated to
the European Community and its Member States.

5. The Parties acknowledge the need for structured and
continuous consultations under Article 96 of
the
Agreement. The Council of Ministers may develop
further modalities to this end.’.

IN WITNESS WHEREOF, the undersigned Plenipotentiaries have hereunto set their hands.