Communication from the Commission to the Council, the European Parliament and the European Court of Auditors - Financial Management Report on the 6th, 7th, 8th and 9th European Development Funds for the year 2004
Date: 2005-07-07
Institutions: European Commission
Subjects: European Development Fund, budgetary expenditure, financial year, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.7.2005 
COM(2005)307 final/2 

CORRIGENDUM 
Annule et remplace la p. 7 «technical annex» du 
COM(2005)307 final du 7.7.2005. 
Concerne les versions FR, EN, DE. 

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

Financial Management Report on the 6th, 7th, 8th and 9th European Development 
Funds for the year 2004 

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1. 

INTRODUCTION 

The  European  Development  Fund  (EDF)  covers  the  European  Commission’s 
development  programmes  in  sub-Saharan  Africa,  the  Caribbean  and  the  Pacific 
(ACP)  financed  under  the  ACP-EC  Partnership  (Cotonou  Agreement)  and  in  20 
Overseas  Countries  and  Territories  (OCTs)1  which  are  linked  constitutionally  to 
Denmark (1), France (6), the Netherlands (2) and the UK (11). The purpose of these 
programmes  in  ACP  countries  and  OCTs  is  to  provide  technical  and  financial 
support to reduce poverty and promote long-term economic and social development. 
EU Member States jointly contribute to the EDFs, which are separate from the EU’s 
general budget and have their own financial regulations.  

Some of the Commission’s development cooperation programmes in the ACP region 
are  funded  from  the  general  EU  budget,  outside  the  Cotonou  Agreement.  These 
programmes are not covered by the present report. They include the Commission’s 
activities  in  South  Africa,  thematic  budget  lines  covering  food  security,  democracy 
and human rights, and the environment, and its support for banana producers under 
the  second  ACP-EC  Banana  Protocol.  The  European  Investment  Bank  (EIB)  also 
funds some activities in ACP states from its own resources. 

The current EDF, the 9th, which funds the first five years of the Cotonou Agreement, 
took effect on 1 April 2003 after its ratification and, supplemented by the transferred 
balances  from  the  previous  EDFs,  covers  the  period  until  the  end  of  2007.  The 
current  EU-OCT  partnership  is  regulated  by  an  Overseas  Association  Council 
Decision of 27 November 2001.2 

2. 

ACHIEVEMENT OF OBJECTIVES FOR THE FINANCIAL YEAR 2004 

2.1. 

Financial objectives3 

In 2004 the Commission made global commitments from the EDF of €2 648m - just 
below (the €2 850m) target – and paid out a record €2 464m, continuing its recent 
year-on-year acceleration in disbursements. New individual commitments (contracts) 
for  an  amount  of  €3 038m  were concluded  on  the  EDF  instruments  managed 
by  the  Commission.  This  contracts  performance  over  2003-2004  (€6  100m)  is 
unprecedented  and  should  contribute  to  a  continued  upward  trend  in  disbursements 
over the coming years. 

1 

2 
3 

Annex  II  to  the  EC  Treaty  lists  21  Overseas  Countries  and  Territories  (OCTs).  The  Commission  has 
direct relations with 20 of them, as the Overseas Association Decision does not apply to Bermuda (at its 
request). 
OJ L 314, 30 November 2001. 
All  financial  statistics  are  based  on  the  historically  corrected  figures  which  take  into  account  the 
reclassification  of  Stabex  transactions  for  the  period  2001-2004  (see  Annexes).  The  European 
Investment Bank’s (EIB) risk capital and related interest-rate subsidies under the 6-8th EDFs (for which 
the  Commission  has  accounting  responsibility)  are  included  within  all  financial  statistics.  Figures  for 
the performance of the EIB’s Investment Facility – under the 9th EDF – are not included as accounting 
responsibility  now  falls  to  the  EIB  for  this  instrument.  For  the  purposes  of  comparability  the  EIB’s 
Investment Facility figures for 2003/2004 are contained within footnotes where appropriate. 

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Key EDF performance figures, 2000-2004 (€m, gross) 

Global commitments 
Individual commitments 
Payments 

2000 
4 007 
2 509 
1 640 

2001 
1 927 
2 488 
1 779 

2002 
2 125 
2 436 
1 922 

2003 
3 769 
3 062 
2 345 

2004 
2 648 
3 038 
2 464 

2.2. 

Tackling poverty – 2004 operational highlights  

As  the  table  below  shows,  the  Commission  devoted  the  greatest  share  of  EDF 
commitments  in  2004  to  regional  integration  and  institutional  support.  This  covers 
programmes  to  promote  respect  for  human  rights,  the  principles  of  democracy,  the 
rule  of  law  and  responsible,  accountable  government,  and  to  strengthen  the 
institutions  on  which  these  conditions  depend.  Other  programmes  seek  to  prevent 
conflict  by  supporting  nascent  peace  processes,  democratic  reforms,  and  efforts  to 
create  political  and  social  stability.  For  example,  at  the  regional  level  the 
Commission launched the €250m African Peace Facility in 2004, through which the 
EC  funds  non-military  aspects  of  peace-keeping  operations  by  the  African  Union 
(AU) and subregional entities. 

The Commission also continued to devote considerable resources to infrastructure, in 
which it has many years’ experience, notably launching the ACP-EU Water Facility 
for  which  a  first  allocation  of  €250m  was  made  available  immediately  out  of  the  
€1  000m  unreleased  funds  of  the  9th  EDF.  This  Facility  will  fund  proposals  from 
community  groups,  private  companies  and  other  non-state  actors,  as  well  as  from 
central  governments,  historically  the  European  Union’s  principal  partners  in 
development. 

General  budget  support  and  sectoral  policy  support  programmes  continued  as  the 
Commission’s  preferred  development  cooperation  strategies  -  where  conditions 
allow  -  encouraging  partner  government-led  initiatives  to  tackle  poverty.  General 
budget support programmes constituted 18% of new programmes approved in 2004, 
supporting  ten  countries4.  The  Commission  also  worked  with  the  World  Bank  and 
other donors to devise a single set of public finance management (PFM) performance 
indicators. It will use these to gauge progress over time and across countries, and to 
link  budget  support  payments,  which  are  performance-related,  more  closely  to 
results.  In  addition,  eight  sectoral  policy  support  programmes  were  launched  to  a 
total global commitments value of €242m5.  

EDF global commitments - performance against targets, 2004 (€m, gross) 

Sector 

Target  

Economic cooperation 
Regional integration & institutional support 
Social & human development 
Rural development & environment 
Transport & infrastructure 

600 
605 
421 
274 
790 

Actual  

% of target 

92% 
117% 
68% 
80% 
80% 

Value  
554 
711 
284 
219 
635 

4 
5 

In Burundi, Cape Verde, Ethiopia, Ghana, Guyana, Jamaica, Kenya, Madagascar, Senegal and Vanuatu. 
In New Caledonia, Zambia, Barbados, Namibia, Uganda, Kenya, Nigeria and Fiji. 

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Other – Commission 
Other – EIB risk capital & interest subsidies (6-8th EDFs) 
Total 

160 
- 
2 850 

245 
0 
2 648 

112% 
 0 
93% 

2.2.1. 

Improving operational performance 

The  Commission  completed  projects  and  responded  to  emerging  needs  and 
emergencies  with  greater  speed  than  in  the  past.  For  example,  it  responded 
immediately  through  its  African  Peace  Facility  to  the  African  Union’s  request  for 
help for its ceasefire monitoring mission in Darfur in western Sudan.  

To  raise  the  quality  of  programmes,  headquarters  staff  undertook  in-depth  quality 
reviews  -  for  the  first  full  year  in  2004  –  on  all  new  project  proposals  early  in  the 
design process. One in four proposals was also selected for further review at a later 
stage. The Commission also leveraged the skills and expertise of its staff to replicate 
examples  of  best  practice  in  different  sectors,  with  40%  of  EuropeAid’s  (non 
secretarial) officials participating in best practice networks. To improve programme 
design, the Commission consolidated its independent results-oriented monitoring of 
EDF-funded  programmes  launched  in  2002,6  raising  the  ACP  budget  by  30%  (to 
€4.6m).  

The  Commission  also  made  substantial  efficiency  gains,  by  for  example,  formally 
devolving  responsibility  for  programmes  from  its  headquarters  to  its  offices  in  24 
more  ACP  countries. By  year-end 2004,  79% of ongoing EDF-funded programmes 
were managed by in-country officials.  

3. 

FINANCIAL SITUATION AT THE END OF 2004 

At  the  close  of  2004,  the  Commission  had  allocated in total  €43  802m  net  to  ACP 
countries under the 6-9th EDFs. This comprised €29 898m from the 6-8th EDFs (all 
committed, since €2 990m in uncommitted balances had been transferred into the 9th 
EDF)  and  €13  904m  from  the  9th  EDF.7  Of  the  total  allocated  (€43  802m),  the 
Commission  has  committed  €35  692m  and  paid  €25  914m.  The  unspent  €17  888m 
comprises  uncommitted  funds  of  €8  110m  and  unspent  commitments  (Restes  à 
Liquider) of €9 779m. 

6th to 9th EDFs – funds allocated, committed, spent and unspent, end 2004 (€m, net) 

Funds allocated  
to ACP states (by EDF)8 
9th  
6th-8th 
Total, 
6th- 9th 

Funds 
committed

Funds 
spent 

Funds/commitments outstanding 

Funds 
uncommitted 

Commitments 
unspent (RAL) 

Total remaining 
funds unspent 

6 

7 

8 

This  ROM  methodology  is  based  on  international  standards  and  is  applied  systematically  and 
consistently throughout all regions and throughout the years. Ratings are given against internationally 
accepted  criteria  covering  five  quality  attributes:  relevance,  efficiency,  effectiveness,  impact  and 
sustainability, based on both internal and external factors. 
These  figures  exclude  €2  057m  from  the  Investment  Facility  and  the  €188m  of  related  interest  rate 
subsidies funded from the 9th EDF but under the accounting responsibility of the European Investment 
Bank. 
Taking into account the transfers from the former EDFs into the 9th EDF. 

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a 

c (a+b) 
b 
29 898  13 904 43 802 

D 
35 692 

E 
25 914

f (c-d) 
8 110 

g (d-e) 
9 779 

h (f+g) 
17 888 

4. 

EVENTS THAT HAD A SIGNIFICANT INFLUENCE ON ACTIVITIES CARRIED OUT IN 2004 

4.1. 

Payment delays due to treasury shortages 

The  Commission  had  difficulty  in  making  timely  payments  in  May-June  and,  to  a 
lesser  degree,  at  the  end  of  2004.  This  was  largely  because  it  had  paid  an 
unprecedented amount in the year to June, and the EDF treasury system relies on a 
rather inflexible ‘just in time’ contribution system from Member States. Prudent cash 
management  (including  the  bringing-  forward  of  the  second  call  for  contributions) 
meant that priority payments were made in time, but overall payments were delayed 
considerably. In addition, a payment of the order of €41m for a programme to fight 
polio could not be made at the end of 2004 because of a treasury shortage, due to the 
fact  that  one  EU  Member  State  transferred  part  of  its  year  end  contribution  behind 
schedule.  If  the  treasury  resources  had  been  consistently  available,  performance  on 
both  the Commission’s total EDF payments and EDF  payment  periods  would have 
been significantly improved, surpassing the 2004 payments target. 

4.2. 

Political instability and other crises 

The Commission estimates that around 20% of ACP countries are in crisis or post-
crisis  at  any  one  time,  and  in  2004  political  uncertainty  continued  to  affect 
cooperation  in  several  states,  and  added  significant  complexity  to  the  running  of 
regional  programmes.  For  example,  in  Côte  d’Ivoire  (which  does  not  fall  under 
Article  96)  implementation  came  to  a  standstill  in  2004  following  political 
instability.  Several  delegations  found  dialogue  difficult  with  local  authorities, 
especially  where  Country  Strategy  Papers  were  not  yet  in  place  (Somalia,  Togo, 
Haiti,  Liberia,  Sudan,  Zimbabwe,  Guinea,  Equatorial  Guinea  and  Côte  d’Ivoire)  or 
had been signed but were only partially implemented (Central African Republic). 

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TECHNICAL ANNEX 

Financial Management Report on the 6th, 7th, 8th and 9th 
European Development Funds for the year 2004 

1. 

FOREWORD 

This  report  fulfils  the  Commission’s  obligations  under  Articles  96,  102  and  135  of 
the Financial Regulation applicable to the 9th European Development Fund9. Article 
96 paragraph 2 states that: 

‘The  EDF  accounts  shall  be  accompanied  by  a  report  on  financial  management 
during the preceding year containing an accurate description of: 

(1) 

(2) 

the  achievement  of  the  objectives  for  the  financial  year,  in  accordance  with 
the principle of sound financial management;  

the  financial  situation  and  the  events  that  had  a  significant  influence  on  the 
activities carried out during the financial year.’ 

2. 

THE ACHIEVEMENT OF EDF OBJECTIVES FOR THE FINANCIAL YEAR 2004 

The Commission set itself specific, quantified targets for the European Development 
Funds  both  in  terms  of  financial  indicators  related  to  its  broad  policy  goals,  and  in 
terms of ambitious measures for continuous improvements in the efficiency, quality 
and  timeliness  of  its  activities.  The  performance  against  these  targets  for  the  year 
2004  is  detailed  below10.  All  financial  statistics  are  based  on  the  historically 
corrected figures which take into account the reclassification of Stabex11 transactions 
for  the  period  2001  –  2004  (see  Annex  1).  The  following  table  summarises  the 
relationship  between  the  2001-2004  consolidated  accounting  figures  and  the 
historically corrected figures (following the 2004 Stabex regularisation) used in this 
report. 

9 

10 

11 

Financial Regulation of 27 March 2003 applicable to the 9th European Development Fund [OJ L 83 of 
1 April 2003]. While in principle the deadline for transmission of the financial management report to 
the  European  Parliament,  Council  and  Court  of  Auditors  is  30  April,  Article  135  of  the  Financial 
Regulation foresees a transitional measure allowing submission of the report covering 2004 by 31 May 
2005. 
The European Investment Bank’s (EIB) risk capital and related interest rate subsidies under the 6-8th 
EDFs  (for  which  the  Commission  has  accounting  responsibility)  are  included  within  all  financial 
statistics. Figures for the performance of the EIB’s Investment Facility – under the 9th EDF – are not 
included  as  accounting  responsibility  now  falls  to  the  EIB  for  this  instrument.  For  the  purposes  of 
comparability the EIB’s Investment Facility figures for 2003/2004 are contained within footnotes where 
appropriate. 
Stabex is a financial instrument foreseen by the Lomé Convention (Articles 186-212), which has now 
been replaced under the Cotonou Agreement by the new instrument FLEX (as part of the B envelope). 
The aim of Stabex was to remedy the harmful effects of the instability of export earnings of the ACP 
states. 

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EDF 2001-2004 consolidated accounting and corrected figures following the 2004 Stabex 
regularisation (€m) 

Net 

Global commitments 

Consolidated 
accounting 
figures 

Corrected 
figures 

Individual commitments 
Corrected 
Consolidated 
figures 
accounting 
figures 

Payments 

Consolidated 
accounting 
figures 

Corrected 
figures 

2001 
2002 
2003 
2004 

1554.16 
1768.39 
3395.83 
2375.15 

1560.92 
1779.03 
3403.53 
2350.05 

2263.36 
2142.92 
2742.71 
2746.25 

2270.12 
2153.56 
2750.42 
2721.15 

2067.86 
1852.72 
2179.47 
2197.84 

1722.83 
1872.33 
2288.80 
2413.93 

Gross 

Global commitments 

Individual commitments 

Payments 

Initial  
figures 

1920.57 
2114.50 
3760.80 
2672.93 

Corrected 
figures 

1927.32 
2125.14 
3768.50 
2647.83 

Initial  
figures 

2481.70 
2425.00 
3054.23 
3063.42 

Corrected 
figures 

2488.45 
2435.64 
3061.94 
3038.32 

Initial  
figures 

2124.49 
1902.49 
2235.71 
2248.15 

Corrected 
figures 

1779.45 
1922.10 
2345.04 
2464.25 

2001 
2002 
2003 
2004 

2.1. 

Policy goals 

The Commission’s 2004 Annual Management Plan for its work in the ACP countries 
set out three broad development policy goals:  

•  promoting sustainable development 

•  fostering peace and stability 

•  promoting democracy and human rights. 

2.1.1.  Global commitments12 

To  achieve  these  goals,  the  Commission  had  set  a  2004  target  for  new  global 
commitments  of  €2  850m.  By  end  December  2004,  €2  648m  gross  had  been 
committed. The breakdown of targets and corresponding performance by sector is set 
out  in  the  table  below.  This  performance  represents  93%  of  the  2004  target.  The 
shortfall was the result of delays to a planned €100m road project in Uganda, where 
the government had not met conditions set, and to a €52m rehabilitation programme 
in  Sudan,  following  continued  political  uncertainty.  In  addition,  legal  clarifications 
continued in 2004 on procedures (under the 2003 9th EDF Financial Regulation) for 
common pool funding, delaying projects amounting to approximately €130m13 (see 
also 4.3 below). 

12 

13 

The  global  financial  commitment  is  the  operation  reserving  the  funds  necessary  to  cover  subsequent 
payments for the execution of a financing agreement. 
In Uganda, Mozambique, Ghana, Tanzania and Zambia. 

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EDF global commitments - performance against targets, 2004 (€m, gross) 

Sector 

Target  

Actual  

Value  

% of target 

Economic co-operation 
92% 
Regional integration & institutional support 
117% 
Social & human development 
68% 
Rural development & environment 
80% 
Transport & infrastructure 
80% 
Other – Commission 
112% 
Other – EIB risk capital & interest subsidies (6-8 EDFs) 
 0 
Total 
93% 
Decommitments for 2004 amounted to €298m14 bringing net global commitments to 
€2 350m. 

554 
711 
284 
219 
635 
245 
0 
2 648 

600 
605 
421 
274 
790 
160 

2 850 

2.1.2. 

Individual Commitments15 (Contracting)  

New individual commitments (contracts) for an amount of €3 038m were concluded 
on  the  EDF  instruments  managed  by  the  Commission.  This  contracts  performance 
over  2003-2004  (€6  100m)  is  unprecedented  and  should  contribute  to  a  continued 
upward trend in disbursements over the coming years. 

Individual commitments for an amount of €317m have been decommitted/cancelled 
in 2004, bringing the net individual commitments to €2 721m16. 

2.1.3.  Payments 

The 2004 payments target was €2 475m. The actual year end figure was €2 464m – 
99%  of  the  target  -  which  also  represents  the  highest  volume  of  payments  ever 
achieved for the EDF in a single year The reason for the shortfall was that a payment 
of  €41m  for  a  programme  to  fight  polio  could  not  be  made  before  the  year  end 
because  of  a  treasury  shortage,  as  one  Member  State  did  not  fully  pay  its  2004 
financial contributions before year end. If these resources had been made available, 
payments  would  have  reached  €2  505m.  The  Commission  has  consolidated  its 
positive payments’ trend, which has been rising steadily since 1999, as shown in the 
tables below. 

€50.31m  was  received  in  recoveries  and  corrections  in  2004,  bringing  the  EDF  net 
payments figure for 2004 to €2 414m17. 

14 

15 

16 
17 

Of  these  decommitments,  €66m  originates  from  the  risk  capital  and  related  interest  rate  subsidies 
implemented by the EIB under the 6-8th EDFs. No new commitments were made by the EIB on the 6-
8th EDF instruments in 2004. 
The individual financial commitment is the operation reserving the funds necessary to cover subsequent 
payments for the execution of a contract or the direct labour component of a programme estimate. 
Of which no significant element originated from the 6-8th EDF EIB instruments in 2004. 
Of which €153m originates from the risk capital and related interest rate subsidies implemented by the 
EIB under the 6-8th EDFs 

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2.1.4.  Overall figures and trends in global commitments, contracts and payments 

2.1.4.1.  Trends since 1990 

The graph below represents the performance of the combined EDFs in terms of new 
(nominal  gross  values,  before 
global  commitments,  and  new  payments 
decommitments and recoveries) over the period 1990 to 2004. 

EDF Commitments and Payments 1990 – 2004  

5,000

4,000

3,000

2,000

1,000

€
m

0

0
9
9
1

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
0
2

3
0
0
2

4
0
0
2

2.1.4.2.  Key figures (gross) since 2000 

EDF key performance figures, 2000-2004 (€m, gross)18 

Global commitments 
Individual commitments 
Payments 

2000 
4 007 
2 509 
1 640 

2001 
1 927 
2 488 
1 779 

2002 
2 125 
2 436 
1 922 

2003 
3 769 
3 062 
2 345 

2004 
2 648 
3 038 
2 464 

2.2.  Management objectives and priorities for 2004 

2.2.1.  To speed up EDF implementation 

2.2.1.1.  To optimise HQ resources 

Working with delegations to even out the commitment pipeline 

To even out the global commitment pipeline and avoid an end of year bottleneck, a 
target was set that 50% or more of commitments should be formally approved in the 
accounting system by the end of September. 2004 figures show that this target was 
achieved,  with  55%  of  projects  having  formal  approvals  by  the  end  of  September. 
This  shows  a  positive  trend  in  the  management  of  the  annual  proposals  (second 
highest performance since 1999). 

18 

3 payments totalling €4.4m over 2002 and 2003 from the secured Stabex account to Ethiopia were not 
reclassified as payments in the accounting system in the context of the 2004 regularisation (see Annex 
1) and will be booked on the 2005 accounts.  

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EDF financing decisions - proportion made by end September, 1999-2004 

% of global commitments decided by end Sept.  

1999 
49% 

2000 
71% 

2001 
38% 

2002 
50% 

2003 
22% 

2004 
55% 

Establishing and consolidating policy of limiting small projects 

The Commission continued to try to reduce the number of very small projects and set 
a target of an average EDF project size of €10m or more. This target was surpassed 
with average project size increasing to €11m in 2004 from €8.5m in 2003 despite the 
high  number  of  small  Technical  Cooperation  Facilities19  (TCFs)  decided  in  2004 
which lowered the average value of EDF decisions on projects/programmes. 

EDF financing decisions - average value, 1998-2004 (€m) 

Average value of global commitments  

1998 
3.1 

1999 
4.1 

2000 
5.3 

2001 
2.9 

2002 
4.7 

2003 
8.5 

2004 
11.0 

2.2.1.2.  To facilitate the timely implementation of projects 

Monitoring  and  supporting  National/Regional 
implementation 

Indicative  Programme 

With devolution, delegations took on new responsibilities for reporting, involving the 
submission  of  progress  reports  (in  the  form  of  External  Assistance  Management 
Reports  every  four  months)  on  the  implementation  of  their  annual  management 
plans.  In  this  context,  the  ACP  Directorate  of  EuropeAid  set  itself  a  challenging 
target  of  responding  to  the  delegations’  External  Assistance  Management  Reports 
within  2  weeks  of  receipt  (with  a  formal  deadline  set  at  the  level  of  EuropeAid  of  
4  weeks).  However  this  new  target  proved  to  be  unrealistic  given  the  necessary 
coordination of different services’ responses on the wide range of issues raised in the 
reports. 21% of HQ responses for the ACP countries were sent within the target of  
2 weeks of receipt, and 57% sent within the 4 week deadline. Average response time 
was 4.5 weeks. Conclusions drawn from the data now available on the performance 
in  this  first  full  year  of  operation  of  the  new  reporting  system  will  be  used  for 
improved planning and target setting in 2005. 

19 

Technical  Cooperation  Facilities  (TCFs)  are  umbrella  financing  agreements  from  which  feasibility 
studies  and  other  technical  assistance  can  be  financed  that  may  be  required  to  identify  projects  and 
programmes  and  to prepare financing  proposals.  TCFs  can  also  fund other  activities  such  as  training, 
conferences and seminars related to the implementation of EC cooperation with the ACP, or audits and 
evaluations  of  completed  projects  when  their  funding  has  not  been  foreseen  or  insufficient  balances 
remain.  In  principle  a  TCF  has  been  programmed  within  each  National  Indicative  Programme  and 
replaces the more cumbersome individual small-scale commitments used for these purposes under the 
previous EDFs (‘Décisions sur Autorisation Globale’ or ‘DAGs’). 

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Delegation reports (EAMRs) - HQ response times, 2004 

Average time taken to send responses to reports 

% of responses sent  

within 2 weeks of receiving EAMR (target) 
within 4 weeks of receiving EAMR (deadline) 
within 6 weeks of receiving EAMR 

4.5 weeks 
21% 
57% 
84% 

Making timely payments 

The  legal  framework  of  the  EDF  requires  invoices  to  be  paid  by  the  Commission 
within  90  days  of  the  date  by  which  payment  becomes  due.  For  decentralised 
projects20  invoices  are  received  first  by  the  National  Authorising  Officer  (NAO)  in 
the ACP partner country. This implies a target of 45 days for the Commission to pay 
invoices received from the NAO. The Commission also aims to pay all invoices - for 
centralised projects - arriving directly at Commission HQ within 45 days. For 2004 
72%  of  such  invoices  were  paid  within  this  time  limit  against  an  EDF  target  set  at 
85%. The performance since 200021 is shown in the table below. The shortfall relates 
to treasury shortages in May-June 2004 (and to a lesser extent end 2004) by when the 
Commission had paid out an unprecedented amount in the first part of the year and 
all  payments  were  delayed  (see  also  4.1  below).  The  completion  of  the  devolution 
process,  allowing  most  payments  to  be  treated  locally,  should  improve  this 
performance further over time. 

EDF payment periods, 2000-200422 

% of invoices paid within 45 days of receipt by Commission 

2.2.1.3.  To redeploy unspent funds in underperforming areas 

2000  2001  2002  2003  2004 
72% 
68% 
70% 

72% 

72% 

Due to the relatively large volume of new global commitments in 2004 i.e. the year 
after the entry into force of the new EDF - and in spite of the record performance on 
payments  in  200423-  the  Commission’s  unpaid  global  commitments  (Restes  à 
Liquider - RAL) decreased only slightly from €9 842m (at end 2003) to €9 779m at 
the end of 2004. A table showing the unpaid global commitments (RAL) per sector 
and per year of global commitment can be found in Annex 2.  

20 

21 

22 

23 

Where certain actions within the management of projects are entrusted to the partner ACP state. In the 
majority  of  cases  the  European  Commission  undertakes  the  financial  implementation  of  9th  EDF 
resources  by  means  of  decentralised  management  with  the  ACP  States  in  accordance  with  the 
conditions  set  out  in  the  Cotonou  Agreement,  based  in  particular  on  the  sharing  of  responsibilities 
provided  for  in  Article  57  of  that  Agreement  (concerning  guidelines  for  development  finance 
cooperation) and in Articles 34, 35 and 36 of Annex IV to the Agreement. 
These  statistics  exclude  local  payments  made  by  Commission  field  offices  (delegations)  in  local 
currency i.e. by non-devolved delegations, as no data is available in the accounting system for the date 
of receipt of local currency invoices. This element of EDF payment performance will disappear in 2006 
with the completion of devolution. 
Payment periods were previously monitored for the EC Budget on a 60-day basis. Since 2003 and the 
coming into force of the new Financial Regulations, the deadline / performance indicator for both EC 
Budget and EDF payments is set at 45 days. 
As well as €298m in 2004 decommitments. 

EN 

11 

   EN 

 
 
 
 
                                                 
EDF unspent commitments (RAL) - totals, 2000-2004 (€m) 

Total EDF unspent commitments24 

2000 
8 983 

2001 
8 821 

2002 
8 728 

2003 
9 842 

2004 
9 779 

Systematically reviewing old and dormant unspent commitments  

The 2004 target for unpaid commitments for which the financing decision was taken 
more than 5 years ago (‘old’  RAL) was targeted to remain at or below the level of 
old RAL at the close of the previous year – in 2003 a figure of €726m. However at 
the beginning of 2004 the Commission added all the open commitments from 1998 
to the old RAL total taking the new balance to €1 170m - as this was the period of 
coming into force of the 8th EDF - substantially increasing the stock of old RAL in a 
single  year.  This  figure  was  then  cut  quite  substantially  to  €829m  by  year  end. 
Although the reduction did not reach the Commission’s target (to get down below the 
end  of  2003  figure)  the  reduction  was  the  highest  (-  €341m)  since  the  start  of  the 
‘abnormal RAL’ reduction action plan in 2000.  

Similarly,  the  target  was  to  stabilise  the  amount  of  dormant  projects  (projects  on 
which  there  have  been  no  individual  commitments  or  payments  for  at  least  
24  months).  However,  dormant  RAL  increased  from  €255m  at  the  start  of  2004  to 
€513m  at  the  end  of  2004.  Of  this  total,  €137m  originated  from  the  European 
Investment  Bank  instruments  (on  the  6th  to  8th  EDFs),  most  of  which  (€99m) 
appeared in 2004 and accounted for 38% of the total reported increase in 2004 in the 
Commission’s commitments that were unspent and inactive for at least two years.  

24 

The  consolidated  EDF  accounting  figures  i.e.  not  historically  corrected  for  the  2004  Stabex 
regularisation  were:  2001  -  €8  469m,  2002  -  €8  385m  and  for  2003  -  €9  601m.  3  payments  totalling 
€4.4m  over  2002  and  2003  from  the  secured  Stabex  account  to  Ethiopia  were  not  reclassified  as 
payments in the accounting system in the context of the 2004 regularisation (see Annex 1) and will be 
booked on the 2005 accounts. 

EN 

12 

   EN 

 
 
 
                                                 
Trends in unspent commitments over five years old (old RAL)  
and/or inactive for 2 years (dormant RAL), 2000-200425 (€m) 

2000 

2001 

2002 

2003 

2004 

Unspent 
commitments 
≥ 5 years old 

<1995 
1995 
1996 
1997 
1998 
Total 
Change 
over 
year  

commitments 

Unspent 
inactive for ≥ 2 years27 
Unspent 
commitments 
≥ 5 years old 
and/or ≥ 2 
years inactive 

Change 
over 
year  

Total 

1 
Jan 
901 
- 
- 
- 
- 
901 

31 
Dec 
621 
- 
- 
- 
- 
621 

1 
Jan 
621 
375 
- 
- 
- 
996 

31 
Dec 
520 
245 
- 
- 
- 
765 

1 
Jan 
520 
245 
319 
- 
- 
1084 

31 
Dec 
429 
183 
210 
- 
- 
822 

1 
Jan 
429 
183 
210 
194 
- 
1016 

31 
Dec 
323 
118 
145 
156 
- 
743 

31 Dec 

1 
Jan  Actual  Target 
253 
323 
72 
118 
91 
145 
128 
156 
286 
427 
82926 
1170 

227 
70 
83 
88 
258 
726 
-444 

-280 

-31% 

-231 

-23% 

-262 

-24% 

-273 

-27% 

-341 

-29% 

239 

322 

322 

389 

389 

449 

449 

261 

1140 

943 

1318 

1154 

1473 

1271 

1465 

1004 

-197 

-17% 

-164 

-12% 

-202 

-14% 

-461 

-31% 

255
28 
1425 

51329 

134230 

-83 

-6% 

-38% 

308 

1034 
-391 

-27% 

Limiting project extensions 

A new approach was initiated in 2004 to try to limit the number of projects for which 
an  extension  is  requested.  Out  of  the  269  projects  expiring  in  2004,  29%  were 
extended  -  for  a  consolidated  value  representing  24%  of  the  initial  value  of  the 
expiring projects - against a target of 20%. Further efforts to limit and / or plan well 
in advance for project extensions are planned for 2005. 

2.2.2.  Place Community cooperation at the highest level of quality  

2.2.2.1.  Move towards more strategic multi-donor aid activities 

The Commission continues, wherever appropriate, to favour general budget support 
or  sectoral  policy  support  programmes  as  alternatives  to  the  project  approach.  The 
aim  is  to  broaden  partner  governments’  ownership  over  public  sector  policy  and 
resource  allocation  decisions,  to  increase  coherence  between  policy,  spending  and 
results and to reduce transaction costs.  

25 

26 

27 

28 

29 

30 

The  impact  of  the  regularisation  in  2004  of  certain  Stabex  payments  has  been  redistributed  over  the 
period concerned (2001 - 2004) - see Annex 1. 
Of  which  €19m  originated  from  the  European  Investment  Bank  instruments  (risk  capital  and  related 
interest rate subsidies) funded from the 6-8th EDFs. 
Until  1  January  2003:  including  old  RAL  (thus  the  sum  of  old  +  dormant  contains  double  counting); 
from 31 December 2003 on: excluding old RAL. 
As a result of the change in methodology from 2004 (see previous footnote), from the end of 2003 on, 
the dormant RAL decreases at the start of a new year, compared to its level at the end of the preceding 
year, because a year is added to the old RAL. For example, dormant RAL at end 2003 was €261m. Old 
RAL relating to projects committed in 1998 (€427m) was added to the stock of old RAL at 1 January 
2004, of which €6m was dormant. This means that the amount of dormant RAL (excluding old RAL) 
was €255m (i.e. €261m less €6m) at 1 January 2005. 
Of which €137m originated from  the European Investment Bank instruments (risk capital and related 
interest rate subsidies) funded from the 6-8th EDFs.  
Of which €156m originated from  the European Investment Bank instruments (risk capital and related 
interest rate subsidies) funded from the 6-8th EDFs. 

EN 

13 

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To promote good quality sectoral programmes 

Sectoral  Policy  Support  Programmes  involve  the  development  of  a  comprehensive 
and coherent sector policy, of a unified public expenditure framework for local and 
external resources and of a common management, planning and reporting framework 
amongst donors. The ACP region has taken a lead in the Commission’s work in this 
field and has continued to make substantial progress on new programmes in 2004.  

With  Sectoral  Policy  Support  Programmes  using  a  budget  support  instrument, 
indicators,  performance  related  payments  and  capacity  building  activities  focus  on 
one  particular  policy  area  e.g.  health,  education,  or  water  and  sanitation.  A  multi-
donor approach, coordinated and led by the partner government, supports a sectoral 
policy  anchored  in  a  medium-term  expenditure  framework.  New  Sectoral  Policy 
Support  Programmes  committed  in  2004  under  the  9th  EDF  are  shown  in  the  table 
below. 

New EDF Sectoral Policy Support Programmes, 2004  

Country 

Sector 

Financing mechanism 

Global  
commitment 
(€m, gross) 

New Caledonia  Vocational training 
Road maintenance 
Zambia 
Health policy and administration 
Barbados 
Rural poverty reduction 
Namibia 
Agricultural modernisation 
Uganda 
Rural poverty reduction &  
local government support 
Institutional reform 
Education 

Kenya 

Nigeria 
Fiji 
Total 

Sectoral budget support 
Sectoral budget support 
Sectoral budget support 
Project 
Sectoral budget support 

Project 

Project 
Project 

21.5 
70.0 
10.5 
53.0 
17.5 

21.0 

27.6 
21.0 
242.1 

To further develop budgetary support 

The Commission continued in 2004 using general budget support31 as an increasingly 
preferred aid disbursement mechanism32. 

General  budget  support  is  typically  disbursed  through  annual  fixed  and  variable 
instalments.  Fixed  payments  consist  of  a  predetermined  amount  which  is  disbursed 
when  the  country  continues  implementing  its  macroeconomic  reform  programme 
agreed by the main international donors. In the vast majority of cases this means the 
International Monetary Fund (IMF)33. The size of the annual variable disbursements 

31 

32 

33 

General budget support consists of resource transfers into a recipient country’s single treasury account 
in  support  of  the  implementation  of  a  national  development  strategy  (usually  a  PRSP  in  the  poorest 
countries). 
Beneficiary countries are eligible for general budget support when they meet the criteria mentioned in 
Articles  61(2)  and  67  of  the  Cotonou  Agreement.  The  use  of  the  transferred  funds  by  the  recipient 
country should be in accordance with the country’s own budget priorities and funds are not ring fenced 
for specific expenditures with the exception of a few cases in which the funds are to be used to pay off 
outstanding debt arrears or other specifically targeted categories of expenditure. 
If  the  country  in  question  does  not  have  an  IMF  supported  macroeconomic  reform  programme,  the 
Commission  decides  on  a  case-by-case  basis  whether  support  from  the  World  Bank  and/or  any  other 
multilateral institution can be considered a sufficient basis for EU budget support. 

EN 

14 

   EN 

 
 
                                                 
is partly determined by the country’s performance in poverty reduction as measured 
by jointly agreed performance indicators, usually relating to the social sectors (health 
and education) and public finance management. 

Throughout  2004  the  Commission  has  been  working,  both  internally  and  in 
collaboration  with  partner  donors,  to  review  and  improve  general  budget  support 
methodology.  This  collaboration  has  taken  place  under  the  aegis  of  the  Strategic 
Partnership  with  Africa  (bringing 
together  all  budget  support  donors  and 
representatives  from  African  beneficiary  countries),  in  the  Organisation  for 
Economic Cooperation and Development’s Development Assistance Committee, and 
bilaterally  with  the  World  Bank  (known  as  the  ‘Limelette’  process).  Significant 
progress has been made in agreeing on improving: predictability and conditionality 
regarding  budget  support;  harmonisation  between  donors  and  alignment  of 
disbursements with national budget cycles; and on the development of new tools for 
assessing the quality of public finance management (PFM). 

In  2004  the  Commission  and  its  Public  Expenditure  and  Financial  Accountability34 
partners  also  agreed  on  and  started  to  test  a  set  of  28  common  PFM  performance 
indicators.  Once  adopted  by  the  donor  community  –  expected  in  2005  -  this  new 
framework  of  PFM  monitoring  could  mean  a  breakthrough  in  harmonising  PFM 
measurement tools and potentially lead to a significant reduction in transaction costs 
for both donors and budget support recipient countries. 

In  2004  the  Commission  committed  a  total  amount  of  €469.4m  for  new  general 
budget  support  programmes  in  ACP  countries,  all  funded  using  resources  from  the 
National  Indicative  Programmes  of  the  9th  EDF  and  €624.4m  was  disbursed  to 
countries with ongoing  general budget support programmes (see table below). This 
represents  an  increase  of  over  50%  in  general  budget  support  payments  to  ACP 
countries, when compared to the year 2003 (€406m). For a complete breakdown, by 
country, of EDF general budget support global commitments 2000-2004, please see 
Annex 4.  

34 

PEFA:  Public  Expenditure  and  Financial  Accountability,  a  joint  initiative  by  the  Commission,  the 
World  Bank,  the  IMF  and  some  bilateral  donor  agencies  to  harmonise  public  finance  management 
assessments and agree on one common diagnostic tool. 

EN 

15 

   EN 

 
                                                 
EDF general budget support, 2004 (€m, gross) 

Recipient country 

Global commitments 

Payments 

Benin 
Burkina Faso 
Burundi 
Cape Verde 
Central African Republic 
Democratic Republic of Congo  
Ethiopia 
Ghana 
Guyana 
Jamaica 
Kenya 
Lesotho 
Madagascar 
Mali 
Mauritania 
Mozambique 
Niger 
Rwanda 
Senegal 
Sierra Leone 
Tanzania 
Uganda 
Vanuatu 
Zambia 
Total 

 - 
 - 
43.6 
5.8 
 - 
 - 
95.0 
62.0 
23.3 
25.0 
125.0 
 - 
35.0 
 - 
 - 
 - 
 - 
-  
53.0 
 - 
 - 
 - 
1.7 
 - 
469.4 

18.2 
37.6 
26.5 
5.5 
11.9 
105.7 
45.0 
27.9 
6.0 
36.1 
 - 
5.5 
20.7 
29.6 
6.0 
51.1 
27.3 
12.5 
25.3 
18.4 
31.5 
24.5 
0.8 
51.0 
624.4 

Other programmes were in an advanced stage of preparation at the end of 2004 and 
will be presented for commitment in the course of 2005, when the commitment level 
in  terms  of  general  budget  support  is  expected  to  rise  significantly,  due  to  the 
availability of more dedicated resources following the 9th EDF Mid Term Review. 

2.2.2.2.  Improve the design and preparation of development cooperation projects 

Quality reviewing of project proposals 

The  Commission  continued  to  make  progress  on  the  quality  reviewing  of  project 
proposals and achieved an on target 100% review of all formulation proposals, and - 
surpassing its 20% target for the quality review of financing proposals - achieved a 
24% quality review rate of financing proposals by value (€688m). The Commission 
is  committed  to  launching  100%  quality  review  coverage  at  all  proposal  stages  in 
2005. 

2.2.2.3.  Provide feedback to project managers to improve implementation  

Monitoring projects in the ACP region 

The  Commission  had  set  a  target  of  completing  Results  Orientated  Monitoring 
reports by independent monitors on 70% of eligible projects in 2004. In fact reports 
were  prepared  on  around  50%,  or  300,  of  all  600  such  projects.  As  a  result  of  this 
analysis  and  in  the  context  of  a  2004  review,  the  Commission  has  increased  the 

EN 

16 

   EN 

 
annual  budget  by  30%  to  €4.6m  and  changed  the  terms  of  reference  of  the  new 
monitoring contract (subsequently awarded to PricewaterhouseCoopers). 

2.2.3.  To achieve a successful devolution 

2.2.3.1.  To complete and consolidate the devolution of ACP delegations 

Coordinating devolution planning of remaining non-devolved delegations 

24  ACP  delegations  -  of  the  30  delegations  of  the  third  wave  (see  Annex  5)  - 
received their formal devolution decisions (sub-delegations) in 2004 (in relation to a 
2004 target of 22) bring the cumulative total (starting in 2001) to 40 devolved ACP 
delegations. The remaining 4 ACP delegations (Papua New Guinea, Burundi, Haiti, 
Lesotho)  will  be  devolved  in  2005  bringing  the  total  to  44  devolved  ACP 
delegations. These 44 delegations (43 ACP delegations plus South Africa) cover all 
the 78 ACP States and South Africa since some delegations are regional delegations, 
which cover more than one state. A full breakdown of the progress of the devolution 
process in ACP countries can be found in Annex 5. 

21 verification missions were carried out by the Commission in 2004 (in relation to a 
target of 22). All remaining verification missions will be concluded in 2005. 

In  relation  to  the  2004  target  of  devolving  at  least  80%  of  the  management  of 
ongoing  projects  (measured  by  outstanding  commitments)  to  delegations  by  year 
end, 79% of outstanding commitments had been devolved by year-end i.e. €7 686m 
of €9 778m. 

The staffing and logistics implications of the devolution of the 30 delegations of the 
third wave (begun at the end of 2003) can be summarised as follows:  

•  91  officials  and  329  non  statutory  staff  (local  agents,  Individual  Experts  and 
Assistants  Locales  d’Assistance  Technique  (expatriates))  had  to  be  selected, 
recruited  and  trained  before  their  posting  to  the  30  Delegations  (the  total  staff 
figures  have  slightly  increased  following  the  2003  organigramme  revision 
exercise during which some delegations have been strengthened); 

•  All  30  Delegations  had  either  to  move  offices  or  to  rent  additional  office  space 
(implying  selection  procedure,  partitioning  and  cabling  works,  security  works, 
purchase of furniture, etc…); 

•  The  Commission  also  provided  secure  voice  and  data  links,  through  which  to 
access  its  accounting  and  management  information  systems,  to  17  which  had 
previously lacked such connections. 

In connection with the annual revision exercise, organigrammes of delegations were 
also  reviewed  to  reflect  their  increased  aid  management  responsibilities.  For  aid 
management  tasks  alone,  this  resulted  in  the  inclusion  of  the  above-mentioned  
91 additional official posts and 329 non-statutory posts for the EDF as well as some 
200 non-statutory posts for the thematic budget lines.  

EN 

17 

   EN 

 
Working to ensure the long-term financing of the devolution process  

The  financing  of  the  devolution  of  management  responsibilities  for  programmes  to 
the  Commission’s  ACP  delegations  is  covered  by  funds  provided  by  the  Internal 
Agreement between EU Member States. This agreement set aside €120m to cover the 
Commission’s costs of implementation of the devolution process under the 9th EDF. 
The  Council  Decision  of  29  October  2001  allowed  the  use  of  the  interest 
accumulated under the 6th, 7th and 8th EDF to partially finance the cost of devolution 
in ACP countries until the ratification of the Cotonou Agreement on 1 April 2003.  

Following this Decision, a Financing Proposal for €23m received a positive opinion 
from  EU  Member  States  on  20  September  2001.  This  amount  covered  the  cost  of 
devolving  13  delegations  (including  the  regionalised  delegations35  of  Liberia,  The 
Gambia,  Cape  Verde  and  Djibouti)  from  2002  until  mid-2004.  Following  the  entry 
into  force  of  the  Cotonou  Agreement  on  1  April  2003,  EU  Member  States  gave  a 
favourable opinion on 7 May 2003 to the Commission’s €120m financing proposal 
for the funding of the devolution of 30 ACP delegations from 2003 to 2006 and the 
completion of the devolution of the previous 13 delegations36.  

There  remained  at  the  end  of  2004  an  unspent  balance  of  approximately  €83m  (of 
which  €38m  had  been  committed  by  end  2004)  available  for  financing  of  the 
implementation of devolution in 2005 and 2006. Less funds were spent by the end of 
2004 than initially planned due to a longer implementation period for the devolution 
within  each  of  the  three  waves  between  2002  and  2005.  It  is  expected  that 
expenditure covering the 43 ACP-EDF delegations of all three waves will reach its 
peak from 2005 onwards with annual expenses of approximately €45m. During the 
negotiations on the revision of the Cotonou Agreement37, the ACP countries agreed 
that an amount of up to €90m might be transferred from the operational credits under 
the 9th EDF to complement the financing of the devolution process in the ACP region 
for the period 2006-2007. 

3. 

FINANCIAL STATE OF PLAY 

At  the  close  of  2004,  the  Commission  had  allocated in total  €43  802m  net  to  ACP 
countries under the 6-9th EDFs. This comprised €29 898m from the 6-8th EDFs (all 
committed,  since  €2  990m  in  uncommitted  balances  had  been  transferred  into  the  
9th  EDF)  and  €13  904m  from  the  9th  EDF38.Of  the  total  allocated  (€43  802m),  the 
Commission  has  committed  €35  692m  and  paid  €25  914m.  The  unspent  €17  888m 
comprises  uncommitted  funds  of  €8  110m  and  unspent  commitments  (Restes  à 
Liquider) of €9 779m. 

35 

36 

37 
38 

Official representations of the Commission without a resident Head of Delegation (in which day to day 
management is overseen by a chargé d’affaires) falling within the management of a regional delegation. 
SEC  (2002)  85,  ‘Reform  of  Community  aid:  Implementation  and  financing  plan  for  devolution’,  29 
January 2002. 
Annex 1 of the Revision of the Cotonou Agreement, COM (2005) 185. 
These  figures  exclude  €2  057m  from  the  Investment  Facility  and  the  €188m  of  related  interest  rate 
subsidies funded from the 9th EDF but under the accounting responsibility of the EIB. 

EN 

18 

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6-9th EDFs – funds allocated, committed, spent and unspent, end 2004 (€m, net) 

Funds allocated  
To ACP states (by EDF)39 
Total, 
9th 
6-8th 
6-9th 
c (a+b) 
b 
29 898  13 904 43 802 

a 

Funds 
committed

Funds 
spent 

Funds/commitments outstanding 

d 
35 692 

e 
25 914

Funds 
uncommitted 
f (c-d) 
8 110 

Commitments 
unspent (RAL) 
g (d-e) 
9 779 

Total remaining 
funds unspent 
h (f+g) 
17 888 

4. 

EVENTS  THAT  HAD  A  SIGNIFICANT  INFLUENCE  ON  THE  ACTIVITIES  CARRIED  OUT 
DURING THE FINANCIAL YEAR 

4.1. 

Delays in payments due to treasury shortages 

The  Commission  had  difficulty  in  making  timely  payments  in  May-June  and,  to  a 
lesser  degree,  at  the  end  of  2004.  This  was  largely  because  it  had  paid  an 
unprecedented amount in the year to June, and the EDF treasury system relies on a 
rather inflexible ‘just in time’ contribution system from Member States. Prudent cash 
management  (including  the  bringing  forward  of  the  second  call  for  contributions) 
meant that priority payments were made in time, but overall payments were delayed 
considerably. In addition, a payment of the order of €41m for a programme to fight 
polio could not be made at the end of 2004 because of a treasury shortage, due to the 
fact  that  one  Member  State  transferred  part  of  its  year  end  contribution  behind 
schedule.  If  the  treasury  resources  had  been  consistently  available,  performance  on 
both  the Commission’s total EDF payments and EDF  payment  periods  would have 
been significantly improved, surpassing the 2004 payments target. 

4.2. 

Political instability and other crises 

The Commission estimates that around 20% of ACP countries are in crisis or post-
crisis  at  any  one  time,  and  in  2004  political  uncertainty  continued  to  affect 
cooperation in several states, as well as adding significant complexity to the running 
of  regional  programmes.  For  example,  in  Côte  d’Ivoire  (which  does  not  fall  under 
Article  96)  implementation  came  to  a  standstill  in  2004  following  political 
instability.  Several  delegations  found  dialogue  difficult  with  local  authorities, 
especially  where  Country  Strategy  Papers  were  not  yet  in  place  (Somalia,  Togo, 
Haiti,  Liberia,  Sudan,  Zimbabwe,  Guinea,  Equatorial  Guinea  and  Côte  d’Ivoire)  or 
had  been  signed  but  were  only  partially  implemented  (Central  African  Republic). 
Annex 8 contains a full listing to end 2004 of the state of play on all consultations 
held under articles 96/97 of the Cotonou Agreement (and Article 366a of the Lomé 
Agreement). 

4.3. 

Blocked decisions on basket funded projects 

The  Commission  strove  in  2004  to  help  resolve  issues  surrounding  ‘basket’  or 
common pool funds, where donors pool resources and entrust their management to a 
ministry or a national body in an ACP state. Legal clarifications continued in 2004 
on  procedures  (under  the  2003  9th  EDF  Financial  Regulation)  for  common  pool 

39 

Taking into account transfers from former EDFs to the 9th EDF. 

EN 

19 

   EN 

 
                                                 
funding  under  the  9th  EDF  Financial  Regulation,  delaying  planned  basket-funded 
projects amounting to approximately €130m40. 

4.4. 

Limitations of sectoral and/or budget support approach 

A  number  of  delegations  face  the  challenges  of  trying  to  develop  sectoral 
programmes  in  countries  which  have  no  clear  medium  term  sector  policies  or 
expenditure  programmes,  and  whose  administrations  may  lack  the  human  or 
technical  resources  to  devise  and/or  implement  such  a  strategy.  Equally  the 
Commission has been unable to launch budgetary support programmes or make full 
budget  support  payments  where  governments  have  failed  to  meet  the  pre-requisites 
or conditions specified. 

4.5. 

Human resources management 

Many delegations continued to have some problems in the recruitment of staff with 
the necessary expertise e.g. qualified local IT staff on local salaries, civil engineers 
etc. The Commission is endeavouring to find flexible solutions to the recruitment and 
retention of specialist local and European staff in the field. 

4.6. 

Information Technology systems for management information and accounting 

The  Commission  continues  its  programme  of  work  towards  the  consolidation  of 
harmonised management information systems (Common Relex Information System) 
and  the  development  of  modernised  accounting  systems41  (Accruals  Based 
Accounting)  across  the  EC  Budget  and  European  Development  Fund  for  both 
headquarters  and  delegations,  but  substantial  work  remains  to  achieve  the  desired 
level of data storage, analysis and reporting.  

5. 

FOLLOW-UP TO COMMENTS OF THE EUROPEAN COURT OF AUDITORS 

The  Court  of  Auditors  published  its  Statement  of  Assurance  (DAS)  2003  in  the 
Official  Journal  on  30  November  2004.  It  judged  that  the  reports  on  the  financial 
implementation  of  the  2003  financial  year  and  the  financial  statements  at 
31 December  2003  accurately  reflected  the  income  and  expenditure  of  the  6-9th 
EDFs for that year and their financial situation at the end of it, subject to a number of 
remarks concerning the reliability of the accounts and the legality and regularity of 
the  underlying  transactions.  The  key  recommendations  of  the  Court  (falling  within 
the responsibility of the Commission) and the follow-up action taken during 2004 are 
detailed below. 

40 
41 

In Uganda, Mozambique, Ghana, Tanzania and Zambia. 
The  Accruals  Based  Accounting  (ABAC)  EDF  project  has  been  progressing  satisfactorily  and  is 
currently on schedule to meet its target start-up date of 1 January 2006. 

EN 

20 

   EN 

 
                                                 
5.1.1.  Reliability of accounts 

5.1.1.1.  Recovery orders 

The  Court  noted  that  amounts  payable  to  the  EDF  (recovery  orders)  had  not  been 
included  as  assets  in  the  Commission’s  balance  sheet  at  31.12.2003  (€27.5m  of 
recovery  orders  issued)  and  that  in  the  absence  of  effective  internal  control 
procedures the Court could not give the assurance that these amounts were complete. 

In  response,  the  Commission  sought  to  raise  project  managers’  awareness  on  the 
subject of recoveries during 2004, through, for example, training courses and reviews 
at regional seminars. An official has been appointed for the monitoring and follow-
up  of  recovery  orders,  since  when  the  number  of  recovery  orders  issued  has 
significantly increased as have the amounts repaid to the EDF treasury account42.  

5.1.1.2.  Advances  

The Court found that the proportion of the €400m in advances that would give rise to 
recovery orders could not be ascertained, as the Commission had not identified the 
full amounts to be recovered. 

Within the framework of the Commission’s plan to modernise EDF accounting, the 
Commission set up a working party in 2004 to plan for the changes to the accounting 
system taking into account the recommendations of the Court. As a result, as from 1 
January 2005, the Commission will record advances and potential recoveries in the 
EDF  balance  sheet  assets  according  to  International  Public  Sector  Accounting 
Standards. 

5.1.1.3.  Stabex funds  

Use of Stabex funds 

The Court judged that - contrary to the provisions of the Lomé Convention - the use 
to  which  Stabex  funds  had  been  put  by  the  ACP  countries  could  not  be  fully 
established  by  the  Commission  as  information  was  still  incomplete  at  the  end  of 
2003.  

Following the comments of the Court, the Commission undertook the compilation of 
a  Stabex  inventory  with  consultants  in  2003  and  200443  on  the  use  made  of  funds 
transferred to (double signature) Stabex bank accounts in Europe. The final report at 
31  December  2002  and  31  December  2003  was  made  available  on  30 September 
2004.  Annex  6  contains  the  financial  situation  at  the  close  of  2003.  In  2005  the 
Commission  plans  to  develop  a  new  computer  tool  to  consolidate  the  delegations’ 
reports.  

Classification of Stabex transfers 

42 

43 

From January 2006, the accrual-based accounting will provide for the flagging up of potential recovery 
orders. Recovery orders will then be presented as assets on the Commission’s balance sheets. 
Stabex  was  a  financial  instrument  established  by  the  Lomé  Convention  (Articles  186-212)  which  has 
now  been  replaced  under  Cotonou  by  the  FLEX  instrument  (as  part  of  the  B  envelope).  The  aim  of 
Stabex was to remedy the harmful effects of the instability of export earnings of the ACP states. 

EN 

21 

   EN 

 
                                                 
The  Court  of  Auditors  also  stated  in  its  annual  reports  2001  to  2003  that  Stabex 
transfers  to  double  signature  European  Stabex  accounts  should  not  be  recorded  as 
payments, since the Commission became the sole owner of these bank accounts with 
the coming into force of new Stabex Transfer Agreements in 2001. 

To  comply  with  the  Court  of  Auditors’  opinion  on  the  classification  of  Stabex 
transfers  on  the  double  signature  European  Stabex  account,  the  Commission 
reclassified these operations in 2004, undertaking a full regularisation of the accounts 
and  correction  of  the  presentation  of  the  EDF’s  financial  performance  2001-2004 
under the new definitions. Full details can be found in Annex 1. 

5.1.2.  Transfers to international institutions 

The Court remarked that transfers to the European Investment Bank (EIB) of €209m 
in 2003 and previously (token entries) to other international institutions and not yet 
completely used by them had not been recorded as assets in the balance sheet.  

This  problem  will  be  resolved  by  the  modernisation  of  the  EDF  accounts  into  an 
accruals  based  system  (see  5.1.1.2  above).  From  1  January  2005  the  Commission 
will  record  any  part  of  a  payment  not  yet  fully  justified  as  an  advance  in  the  EDF 
balance sheet (in line with the International Public Sector Accounting Standard). As 
regards this particular entry, the amount paid to the EIB in 2003 (€209m) had been 
almost completely utilised by close 2004. 

5.2. 

Legality and regularity of the underlying transactions - audits 

Concerning  the  legality  and  regularity  of  the  underlying  transactions  the  Court  of 
Auditors  noted  deficiencies  regarding  the  auditing  of  EDF  projects  and  the 
insufficiency  of  key  controls  on  compliance  with  contracts  and  the  reality  of  the 
works, supplies and services invoiced. 

To  improve  the  quality  of  audit  reports,  in  2004  the  Commission  significantly 
strengthened  the  Headquarters  audit  unit  responsible  for  assistance  to  delegations 
from 2 to 4 officials. This has enabled the unit to:  

(1) 

improve  support  to  delegations  by  carrying  out  six  missions  to  support 
external audits - Burundi, Congo, Jamaica, Guinea, Malawi and Senegal;  

(2) 

consolidate and follow up delegations’ audit plans;  

(3) 

carry out Headquarters’ 2004 audit plan;  

(4)  make good the delay in Headquarters’ 2003 audit plan;  

(5) 

improve reporting on the follow-up of audits.  

All  headquarters’  financial  audit  reports  meet  the  Court’s  recommendation,  and 
headquarters’ increased support for delegations - e.g. in training - should improve the 
quality  of  their  reports.  In  this  respect  the  devolution  process  will  help  raise  the 
general quality of the audits and their follow-up.  

EN 

22 

   EN 

 
Annex 1: 2004 Stabex regularisation and corrected EDF financial performance figures, 
2001-2004  

Accounting figures and corrected figures 2001-2004 

This  annex  presents  an  overview  of  the  changes  to  the  EDF  accounting  and  financial 
performance  figures  resulting  from  changes  to  an  accounting  policy  in  realtion  to  STABEX 
transactions introduced in 2004. 

The  Court  of  Auditors  stated  in  its  annual  reports  from  2001  to  2003  that  Stabex  transfers  to 
secured  bank  accounts  should  not  be  recorded  as  payments  in  the  EDF  accounts,  since  the 
Commission  remained  the  sole  owner  of  these  bank  accounts.  Previously  such  “transfers”  had 
been accounted for as payments. In order to comply with the Court’s wishes, the Commission, in 
2004, implemented a change in accounting policy in relation to such transactions. 

The impact of the 2004 Stabex Regularisation on the 2004 accounts 

As a result of this change in accounting policy, certain operations undertaken during the period 
2001-2003  on  the  Stabex  instrument,  were  re-stated.  A  total  of  €352m  in  payments  were 
reclassified  as  simple  bank  transfers  and  debited  to  the  2004  accounts.  A  further  €143 m  in 
effective payments to final beneficiaries which took place over the same period were credited to 
the 2004 accounts. As a result, the 2004 accounts show a net reduction of €209 m (i.e. - €352 m 
+ € 143 m) in total cumulative payments due to the Stabex reclassification process.  

Global  commitments  were  also  affected.  As  part  of  the  regularisation,  the  interest  accrued 
(€34.7m) on the secured Stabex account over the period 2001 – 2004 has now been credited as 
global commitments on the 2004 accounts. 

Corrections  to  the  2001-2004  financial  performance  figures  to  take  into  account  the 
2004 Stabex regularisation 

Despite  the  specific  effects  on  the  2004  accounts,  these  additional  ‘Stabex  regularisation’ 
operations  were  not  in  fact  the  result  of  any  financial  activity.  Given  that  this  process  may 
therefore  give  a  false  picture  of  the  pattern  of  financial  performance  for  the  period  affected 
(2001-2004)  the  Commission  has  decided  to  present,  in  all  its  EDF  reporting,  financial 
performance  figures  that  are  historically  corrected  following  the  2004  Stabex  regularisation. 
These  figures  attribute  the  correct  payments  (and  global  commitments  deriving  from  accrued 
interest)  to  the  correct  years  2001-2004  i.e.  they  show  the  accounts  as  they  would  have  been 
presented had the Stabex operations been ‘correctly’ classified throughout the 2001-2004 period 
and  not  just  in  2004.  These  corrections  also  have  an  effect  on  calculations  relating  to  unspent 
commitments (RAL) over the period 2001-2003. 

Were the Commission not to present historically corrected figures and simply use the accounting 
data,  the  reporting  on  the  EDF  financial  performance  for  2004  would  be  particularly  badly 
affected,  inflating  gross  global  commitments  from  the  ‘real’  €2 648 m  to  an  ‘accounting’ 
€2 673 m.  Gross  payments  performance  would  go  down  from  a  ‘real’  € 2 464 m  to  an 
‘accounting’ €2 248 m. 

EN 

23 

   EN 

 
Annex 2: unspent global commitments (RAL) by OECD DAC sector code at end 2004 (€m) 

OECD code

Low-cost water & sanitation

Std control including hiv/aids

Population policy & admin. mgmt

Economic & development planning
Public sector financial management
Legal & judicial development

Education policy & admin. management
Education facilities & training
Teacher training
Primary education

11110
11120
11130
11220
11230 Non-formal education
11320
Secondary education
11330 Vocational training
11420 Higher education
11430 Advanced tech. & managerial training
12110 Health policy & admin. management
12181 Medical education/training
12182 Medical research
12191 Medical services
12220 Basic health care
12230 Basic health infrastructure
12250
Infectious disease control
12281 Health education
12282 Health personnel development
13010
13020 Reproductive health care
13040
14010 Water resources policy/admin. mgmt
14020 Water & sanitation
14030
14040 River development
14050 Waste management/disposal
15010
15020
15030
15040 Government administration
Strengthening civil society
15050
Post-conflict peace-building (un)
15061
15062
Elections
15063 Human rights monitoring & education
15064 Demobilisation
15065
16110
16210 Housing policy & admin. management
16310
16320 General government services
16330
Settlement
16340 Reconstruction relief
16350 Culture & recreation
16361 Narcotics control
16362
21010
21020 Road transport
21030 Rail transport
21040 Water transport
21050 Air transport
22010 Communications policy & admin. mgmt
Telecommunications
22020
22030 Radio/television/print media
23010
23020
23030
23040
23061 Oil-fired power plants
23065 Hydro-electric power plants
23067
24010
24020 Monetary institutions
24030
24040
25010 Business services
25020
31110 Agricultural policy & admin. mgmt
31120 Agricultural development
31130 Agricultural land resources

Energy policy & admin. management
Power generat./non-renewable sources
Power generation/renewable sources
Electrical transmission/distribution

Statistical capacity building
Transport policy & admin. management

Solar energy
Financial policy & admin. management

Free flow of information
Employment policy & admin. mgmt.

Formal sector financial institutions
Informal/semi-formal fin. Institut.

Social/welfare services

Privatisation

1992
-
0.08
-
-
1.73
-
1.80
0.62
3.66
0.61
-
-
-
-
1.69
1.39
-
-
-
-
3.84
-
4.41
0.34
-
-
0.61
-
-
0.88
-
-
-
-
-
-
-
-
-
0.01
-
-
0.46
-
-
-
10.06
1.40
-
-
0.04
4.53
-
-
-
-
0.32
-
0.20
-
-
-
-
-
-
-
-
4.32
0.07

1993
1.12
0.57
-
0.61
-
-
0.16
-
-
0.43
-
-
-
-
2.24
-
-
1.76
-
-
4.84
-
0.95
0.41
-
-
-
-
-
0.01
-
0.10
0.02
-
-
-
-
-
-
2.43
-
0.15
0.23
-
-
-
4.23
-
0.10
0.01
-
1.32
-
6.36
0.95
-
0.36
-
-
-
-
-
-
-
-
-
1.19
3.37
-

1994

0.28
0.18
-
-
-
-
1.23
1.85
-
-
-
-
-
-
-
-
-
0.06
-
-
0.44
-
0.70
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.23
0.29
-
-
-
1.28
-
-
-
-
0.04
-
-
-
-
-
-
-
-
0.79
-
5.50
-
-
-
0.48
1.02
-

1998

2002

2001

1997

2000

Year of the final visa given by the EDF accounting officer on the global commitment (€m)
1995
1999
0.44
0.10
-
0.70
-
-
0.38
0.38
-
0.00
-
-
-
10.11
0.01
-
-
1.25
-
0.86
1.35
-
0.00
0.51
-
-
-
-
-
0.04
0.25
-
-
-
-
-
-
-
-
0.82
-
2.92
0.87
0.02
-
-
17.60
-
-
0.11
-
-
-
0.71
-
-
0.61
-
-
-
-
-
-
0.54
-
-
-
0.16
0.04

17.99
7.17
2.65
0.32
8.91
-
9.61
4.77
-
82.93
-
-
10.02
9.88
6.84
-
-
-
2.19
-
0.67
6.44
9.49
15.39
-
0.18
19.57
2.48
28.70
11.23
0.36
-
0.54
6.65
-
0.00
4.35
-
1.71
4.37
-
-
1.29
0.54
2.56
0.36
154.72
-
-
1.57
0.01
0.30
-
4.33
21.28
-
-
-
-
54.51
0.15
-
17.78
0.12
81.37
-
0.39
9.17
-

9.29
1.02
-
0.31
-
-
12.02
0.17
12.68
2.12
-
-
4.84
7.90
12.40
2.58
-
-
0.31
-
11.10
17.68
50.50
12.65
-
-
71.52
7.92
2.11
0.10
1.25
1.64
3.33
1.02
-
-
-
0.22
5.46
11.36
1.51
4.75
7.28
0.05
-
1.14
216.77
-
3.91
10.69
6.54
0.01
-
-
-
3.81
1.83
-
-
-
-
-
12.70
-
2.39
-
0.98
7.70
-

1.75
1.68
-
8.46
-
-
0.26
12.16
0.30
55.33
-
-
-
0.47
0.85
-
-
-
-
-
3.49
15.97
17.83
-
-
0.04
26.68
-
0.13
5.40
48.47
30.57
3.38
-
-
-
3.51
-
0.16
14.63
-
0.19
1.22
0.07
-
0.19
203.61
0.86
0.29
0.47
0.19
-
-
1.82
-
-
2.03
-
1.38
0.08
-
-
24.97
-
21.65
2.72
14.85
5.20
-

1.65
31.73
-
-
4.16
-
-
4.12
-
14.61
-
-
1.51
44.57
-
-
-
16.39
3.10
21.33
0.01
14.34
74.85
0.05
-
3.56
17.67
-
0.01
28.44
26.20
5.07
1.11
0.15
15.56
0.00
0.07
9.10
1.85
0.00
-
-
10.63
-
1.19
110.41
160.79
-
46.12
13.23
0.06
-
0.66
0.45
-
-
40.24
0.11
-
-
-
-
36.22
-
8.33
0.00
2.05
7.92
-

1996
-
-
-
-
-
-
2.54
0.51
1.01
1.96
0.03
-
-
6.08
-
7.48
-
-
-
-
0.97
0.31
0.30
-
-
-
3.77
-
-
3.80
0.05
-
-
-
-
-
-
-
-
0.16
0.05
1.95
0.47
2.95
-
-
10.56
-
-
-
-
0.45
-
0.48
-
-
-
-
1.02
-
-
-
-
-
0.45
-
0.17
-
-

5.42
0.27
0.00
-
-
0.13
0.02
0.60
-
15.06
-
-
-
-
0.09
-
-
-
1.00
-
13.14
2.55
16.34
1.96
0.18
-
4.21
11.77
0.88
1.25
0.04
-
-
-
-
-
3.28
-
-
0.17
-
-
0.19
0.15
-
46.58
71.06
-
-
0.00
-
-
3.29
-
-
-
0.03
-
1.71
-
0.79
-
4.48
-
1.77
1.55
4.12
-
0.87

0.10
0.08
-
-
-
-
-
0.11
0.34
0.01
-
-
0.04
-
0.25
-
-
-
0.04
-
0.32
0.92
-
-
-
0.09
0.97
5.16
0.35
-
-
-
2.21
-
-
-
0.00
-
-
1.18
-
0.74
0.16
-
0.13
0.24
78.45
-
0.00
0.07
0.22
-
-
1.80
-
-
-
-
0.01
-
-
-
-
-
-
-
-
-
-

2003

2004

16.31
154.80
-
3.01
0.73
-
1.91
0.20
6.23
19.82
-
0.30
0.80
27.30
1.69
-
-
-
0.00
-
0.08
24.31
126.90
70.71
-
1.80
50.68
13.87
13.43
5.58
105.05
53.61
0.32
-
0.06
-
-
-
0.03
13.82
5.70
110.42
4.06
-
0.18
2.02
534.75
5.95
43.19
14.25
0.01
10.79
0.06
1.93
45.00
-
42.75
-
7.00
-
4.65
-
179.08
3.31
38.39
-
0.18
7.58
0.02

24.90
0.87
-
1.28
10.00
-
-
1.00
14.20
27.75
-
-
-
10.49
-
27.00
-
-
75.09
-
11.76
131.30
8.36
-
-
-
217.54
27.60
34.07
66.56
16.90
-
91.73
-
16.14
-
-
-
-
3.96
-
37.66
5.16
-
1.87
2.90
407.66
0.22
31.00
2.20
21.00
-
-
-
16.33
-
0.32
-
0.40
-
-
15.33
106.66
-
41.58
-
5.10
16.20
-

Total
79.25
198.56
2.66
14.70
25.54
0.13
29.93
26.49
38.43
220.64
0.03
0.30
17.21
116.81
26.06
38.45
0.00
19.48
81.74
22.20
52.00
213.82
310.64
102.01
0.18
5.67
413.22
68.80
79.67
123.30
198.56
90.98
102.63
7.82
31.77
0.00
11.22
9.32
9.20
52.92
7.26
160.01
32.31
3.78
5.93
163.84
1871.54
8.41
124.60
42.61
28.06
17.43
4.01
17.87
83.56
3.81
88.51
0.11
11.72
54.59
6.39
15.33
387.39
3.98
195.93
4.28
29.51
62.63
1.00

EN 

24 

   EN 

 
         
     
        
      
         
       
       
         
        
       
         
        
        
       
     
        
      
         
       
       
         
        
         
       
      
          
         
       
         
        
         
         
       
           
          
         
          
            
            
         
     
         
      
         
         
         
         
        
         
          
          
          
       
       
         
        
         
         
         
           
          
         
         
          
        
         
       
         
        
         
         
       
           
          
          
          
            
            
       
     
        
      
       
         
       
         
      
         
          
          
            
       
       
        
      
       
       
       
       
        
         
         
          
          
       
       
         
        
       
       
         
         
      
          
          
          
        
       
     
         
      
       
       
     
       
        
       
       
        
        
         
       
         
        
       
         
         
           
          
          
          
            
            
         
       
         
        
         
         
         
           
          
          
          
          
            
         
       
         
        
         
       
         
           
        
       
         
          
            
         
       
         
    
       
         
         
         
        
         
       
        
        
       
     
         
      
         
       
       
         
      
         
          
          
            
       
       
         
        
       
         
         
           
        
          
          
            
        
         
       
         
        
         
         
         
           
          
          
          
            
            
         
     
        
      
         
         
         
           
          
          
       
            
            
         
       
         
        
         
       
       
           
        
         
         
          
        
         
       
         
      
         
         
         
           
          
          
       
            
            
       
     
        
      
       
       
     
         
      
         
         
          
        
         
       
         
        
       
       
       
       
      
         
       
        
      
       
     
        
      
       
         
     
       
      
         
       
      
          
       
     
         
      
         
         
       
           
      
       
         
        
            
         
       
         
        
         
         
       
           
          
          
          
            
            
         
       
         
        
         
       
         
         
          
         
         
          
            
       
       
         
        
       
       
       
       
      
       
       
        
      
         
       
         
        
         
       
     
           
        
         
          
        
        
         
       
         
        
         
       
       
         
        
       
         
        
        
       
     
         
      
       
         
       
         
        
       
       
          
        
         
       
         
      
       
         
       
       
        
         
       
      
        
         
     
         
        
         
         
         
       
        
          
         
        
            
         
     
         
        
         
       
         
         
        
         
         
          
        
         
       
         
        
         
         
         
           
        
         
         
            
            
         
       
         
        
         
         
         
           
          
          
       
          
        
         
       
         
        
         
         
         
           
          
         
         
            
            
         
       
         
        
         
       
       
         
          
         
         
            
            
         
       
         
        
         
         
         
           
        
          
         
            
            
         
       
         
        
         
         
         
         
        
         
         
          
            
       
     
         
      
       
       
       
       
      
         
         
        
          
         
       
         
        
       
         
         
           
        
          
          
          
            
         
     
        
      
       
       
         
         
        
          
          
      
        
       
     
        
      
       
       
       
         
        
         
       
          
          
         
       
         
      
       
         
       
         
        
         
          
            
            
         
       
         
        
         
       
         
           
          
         
         
          
          
         
       
         
        
         
       
     
         
        
         
     
          
          
     
     
        
    
     
     
     
     
    
     
     
      
      
       
       
         
        
         
         
         
         
          
          
          
          
          
         
     
         
        
         
       
         
         
        
          
       
        
        
         
     
         
      
         
       
       
         
      
         
       
        
          
       
       
         
        
         
       
         
         
        
         
         
          
        
       
     
        
        
       
         
         
           
        
         
          
        
            
         
       
         
        
         
         
       
           
          
          
         
          
            
         
     
         
      
       
       
         
         
          
         
         
          
            
         
     
         
        
         
         
         
           
          
       
          
        
        
         
       
         
        
         
         
         
           
        
          
          
            
            
       
     
         
      
         
         
       
         
        
          
       
        
          
         
       
         
        
         
         
         
           
          
          
         
            
            
       
       
         
        
       
       
       
         
          
          
          
          
          
         
       
         
        
         
         
         
         
          
       
          
            
            
         
       
        
        
         
         
       
           
          
         
          
          
            
         
       
         
        
         
         
         
           
          
          
          
            
        
         
       
        
        
         
         
       
       
      
       
       
      
      
         
       
         
      
         
         
         
           
          
         
          
          
            
         
       
         
        
       
         
       
       
        
       
         
        
        
         
       
         
        
         
         
       
         
          
          
         
            
            
         
     
        
        
       
         
       
       
        
         
         
          
          
       
     
        
      
         
         
         
         
        
         
         
          
        
       
       
         
      
         
         
       
           
          
          
          
          
            
 
OECD code

Ferrous metals

Livestock research

Plant protection & pest control

Food crop production
Industrial crops/export crops
Livestock

Livestock/veterinary services
Forestry policy & admin. management
Forestry development
Fuelwood/charcoal
Fishing policy & admin. management
Fishery development
Fishery research
Fishery services
Industrial policy & admin. mgmt
Industrial development
Sme development

31140 Agricultural water resources
31150 Agricultural inputs
31161
31162
31163
31164 Agrarian reform
31181 Agricultural education/training
31182 Agricultural extension
31183 Agricultural research
31184
31191 Agricultural services
31192
31194 Agricultural co-operatives
31195
31210
31220
31261
31310
31320
31382
31391
32110
32120
32130
32140 Cottage industries & handicraft
32161 Agro-industries
Forest industries
32162
Textiles, leather & substitutes
32163
32210 Mineral/mining policy & admin. mgmt
32220 Mineral prospection & exploration
32262 Oil & gas
32263
32264 Non-ferrous metals
32265
32266
32310 Construction policy & admin. mgmt
33110
33120 Wholesale/retail trade
33130
33210
41010
41030 Bio-diversity
Site preservation
41040
Flood prevention/control
41050
Environmental education/training
41081
41082
Environmental research
42010 Women in development
43010 Multisector aid /comp. Not available
43020 Multisector aid /compon. Available
43030 Urban development & management
43040 Rural development
51010
52010
53010 Balance-of-payments support
53020 Budget support
53040
60010 Action relating to debt
60030 Relief of multilateral debt
Emergency food aid
71010
72010
Emergency/distress relief
72020 Aid to refugees (in donor country)
72030 Aid to refugees (in recip. Country)
91010 Administrative costs
92010
92030
99810
99820

Support to national NGOs
Support to local & regional NGOs
Sectors not specified
Promotion of development awareness

Export promotion
Tourism policy & admin. management
Environmental policy & admin. mgmt

Structural adjustment
Food security programmes/food aid

Precious metals/materials
Industrial minerals

Trade policy & admin. anagement

Import support (commodities)

unknown No code (Peace keeping)

Total

1992

1.83
-
-
0.91
1.14
-
0.04
0.10
-
0.25
-
-
-
-
-
0.84
0.04
0.02
0.01
-
-
-
-
-
0.00
-
-
-
6.32
-
-
-
-
-
-
-
0.13
-
1.48
1.09
1.23
1.21
-
-
-
-
-
10.88
-
-
0.12
-
-
63.85
1.00
0.30
-
-
-
-
-
0.05
-
-
-
-
-
-
135.93

1993
-
-
-
-
0.10
-
0.01
-
1.36
0.96
0.16
-
-
0.03
-
-
-
0.08
0.22
-
-
-
1.13
-
0.52
-
-
-
4.42
-
-
-
-
-
-
-
0.99
0.13
-
0.84
-
0.22
-
-
-
0.89
-
6.61
-
-
0.51
-
-
-
0.33
-
-
-
-
0.15
-
-
0.04
-
-
-
-
-
53.56

1994
-
-
0.23
-
0.84
-
-
-
-
-
-
-
-
0.37
-
-
-
-
0.22
-
-
0.13
0.72
-
-
-
-
-
0.39
-
-
-
-
-
-
-
-
-
0.13
0.00
-
0.34
0.03
-
-
-
-
3.60
-
-
0.12
0.75
-
39.90
-
-
-
-
-
-
-
-
-
-
-
-
-
-
63.15

2002

1997

1996

2000

-         

Year of the final visa given by the EDF accounting officer on the global commitment (€m)
1995
1999
-
0.04
-
-
-
0.57
-
1.31
-
0.92
-
-
0.49
-
-
-
-
-
29.68
-
0.03
-
-
-
-
-
-
-
1.07
0.31
-
-
-
-
1.00
-
-
-
-
-
-
-
0.02
-
6.01
0.94
-
-
-
-
-
-
-
-
0.22
-
0.16
0.21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.48
0.16
-
-
0.62
0.43
0.35
0.09
7.43
-
0.05
0.85
10.12
0.02
18.68
-
0.03
-
-
-
0.04
-
14.28
17.31
0.71
-
0.18
-
35.75
0.47
18.56
0.19
0.02
-
6.21
6.99
0.93
-
-
-
-
-
-
-
-
-
0.06
0.14
-
-
0.17
0.22
0.56
-
-
-
-
-
-
-
0.01
-
-
-
692.17
71.98

2001
-
-
12.28
13.30
2.60
-
-
-
0.05
-
3.44
13.77
18.20
0.09
7.53
0.90
-
0.22
5.36
0.40
-
-
29.70
-
-
65.15
-
-
0.03
-
7.22
-
-
-
-
0.03
16.65
-
-
9.92
27.11
-
-
-
-
-
-
1.11
38.34
1.13
7.59
25.69
-
154.29
-
-
-
0.04
-
22.57
-
17.84
0.53
-
-
-
-
-
1128.91

8.94
-
0.11
-
7.10
-
-
-
-
-
-
2.26
0.64
-
-
-
-
26.22
0.42
-
2.72
-
0.01
-
-
-
-
-
68.46
115.77
-
-
-
-
-
-
39.48
-
0.38
7.96
-
0.02
0.03
-
-
-
-
12.31
46.29
15.89
5.14
37.01
-
40.46
-
-
0.21
0.55
-
15.23
1.51
14.84
-
-
-
0.02
-
-
1249.62

17.59
0.05
7.01
0.41
-
-
-
-
31.65
-
0.03
-
-
-
0.17
-
-
4.57
3.35
-
-
-
5.32
11.67
-
-
-
-
0.16
10.45
-
0.00
-
-
-
-
0.38
-
0.16
11.39
2.89
11.98
12.90
2.24
-
1.33
-
11.15
25.27
15.33
1.86
33.00
-
150.65
-
-
0.02
-
8.58
1.32
-
-
0.52
-
-
-
-
-
928.96

1998
-
-
-
-
0.14
-
-
-
-
-
-
-
-
0.19
-
-
-
5.39
-
-
-
0.12
0.09
-
-
-
-
-
0.02
0.21
-
-
-
1.22
-
-
0.24
-
4.98
6.82
-
-
-
-
-
-
-
2.98
0.77
0.47
0.78
1.31
-
42.07
-
-
-
-
-
0.01
-
2.05
0.71
-
-
-
-
-
285.52

0.15
-
-
-
-
-
-
-
-
1.54
-
-
-
0.23
0.01
-
-
-
-
-
-
0.00
0.13
-
-
-
0.56
-
20.45
9.20
-
-
-
-
-
-
-
-
-
0.26
0.14
-
-
-
-
-
-
0.69
-
-
0.23
-
0.05
0.04
-
-
-
-
-
-
-
0.10
0.02
-
-
-
0.13
-
127.98

0.61
-
0.82
-
0.49
-
0.42
-
-
0.26
-
-
-
-
0.37
-
-
-
-
0.85
-
-
-
-
-
-
-
-
0.01
-
-
-
-
-
-
-
1.66
0.02
-
1.73
-
-
-
-
-
-
-
18.62
0.04
-
2.08
0.78
-
2.12
0.22
-
-
-
-
11.88
-
0.07
-
-
-
-
-
-
90.59

2003

5.73
-
29.41
10.00
0.05
0.01
-
-
14.87
-
-
1.13
-
-
0.02
1.65
-
0.60
4.96
13.99
5.05
0.49
70.63
1.51
1.22
3.17
0.00
-
-
0.30
-
-
27.15
-
0.03
0.05
0.61
-
-
0.48
0.01
3.66
2.22
0.11
-
0.01
-
4.48
3.98
0.54
33.64
81.73
-
15.91
84.80
-
-
260.30
-
2.80
-
1.21
67.19
1.91
0.05
0.10
-
14.35
2546.71

2004
-
-
1.97
-
0.04
1.97
4.06
-
1.79
5.82
17.50
0.74
-
-
9.00
-
-
-
3.09
-
1.55
19.78
25.73
13.60
-
15.00
-
-
30.00
1.29
-
-
-
-
1.00
-
37.77
-
-
-
11.02
6.50
-
1.06
0.56
-
-
20.70
25.61
1.62
101.74
10.95
0.90
0.69
234.82
-
-
-
3.82
15.80
0.21
27.43
4.40
-
-
-
0.32
213.47
2403.40

Total
34.89
0.05
52.39
25.94
13.42
1.98
5.02
0.10
49.72
38.51
21.15
17.89
18.83
0.91
18.48
3.39
0.04
38.09
17.63
15.24
9.32
20.49
140.42
26.77
1.74
83.32
0.56
0.22
130.62
137.23
7.22
0.00
27.15
1.22
1.03
0.09
103.55
0.15
8.18
40.95
49.83
24.82
25.32
22.07
0.59
2.23
0.04
124.73
141.01
35.15
190.05
209.97
0.96
523.19
322.11
0.30
0.24
260.88
12.40
69.96
1.73
63.98
73.97
1.91
0.05
0.12
0.46
227.82
9778.50

EN 

25 

   EN 

 
       
       
         
      
       
       
         
           
      
          
         
          
            
         
       
         
        
         
         
         
           
        
          
          
            
            
         
       
        
      
       
         
         
           
        
       
         
        
          
       
       
         
      
         
         
         
           
        
       
          
        
            
       
     
        
      
       
         
       
           
          
         
         
          
          
         
       
         
        
         
         
         
           
          
          
          
          
          
       
     
         
        
       
         
         
         
          
          
          
            
          
       
       
         
        
         
         
         
           
          
          
          
            
            
         
     
         
        
         
         
         
           
      
         
          
        
          
       
     
         
        
       
       
         
       
          
          
          
            
          
         
     
         
        
         
         
         
         
        
         
          
            
        
         
       
         
        
         
         
         
           
          
       
         
          
          
         
       
         
        
         
         
         
           
          
       
         
            
            
         
     
        
        
         
       
       
           
          
         
          
            
            
         
       
         
      
       
       
         
         
        
         
          
          
          
       
       
         
        
         
         
         
           
          
         
          
          
            
       
       
         
        
         
         
         
           
          
          
          
            
            
       
     
         
        
         
         
       
         
        
         
       
          
            
       
     
        
        
         
         
         
           
        
         
         
          
          
         
       
         
        
       
         
         
           
          
         
          
        
            
         
       
         
        
         
         
         
           
          
          
         
          
          
         
       
        
        
         
       
       
          
          
          
          
        
         
     
        
      
         
       
       
         
        
       
         
        
        
         
       
         
        
         
         
         
           
      
          
          
          
        
       
     
         
        
         
         
         
           
          
          
          
          
            
         
       
         
        
         
         
         
           
          
       
          
          
        
         
       
         
        
         
       
         
           
          
          
          
          
            
         
       
         
        
         
         
         
         
          
          
          
            
            
       
     
        
      
       
     
       
         
        
         
       
            
        
         
       
         
        
         
       
       
           
      
          
     
          
          
         
       
         
        
         
         
         
           
          
         
          
            
            
         
       
         
        
         
         
         
           
        
          
          
            
            
         
       
         
        
         
         
         
           
          
          
          
        
            
         
       
         
        
         
         
       
           
          
          
          
            
            
         
       
         
        
         
         
         
           
          
          
          
          
          
         
       
         
        
         
         
         
           
          
         
          
          
            
       
     
         
      
       
         
       
         
        
       
       
          
        
         
     
         
        
       
         
         
           
          
          
          
            
            
       
       
        
      
         
         
       
         
        
          
         
            
            
       
     
        
      
       
       
       
         
      
         
         
          
            
       
       
         
        
         
       
         
         
        
       
          
          
        
       
     
        
      
         
         
         
         
      
          
         
          
          
         
       
        
      
         
         
         
       
      
          
         
          
            
         
       
         
        
         
         
         
       
        
          
          
          
          
         
       
         
        
         
         
         
         
          
          
          
            
          
         
     
         
        
         
         
         
           
        
          
          
          
            
         
       
         
        
         
         
         
         
          
          
          
            
            
     
     
        
    
     
       
       
       
      
         
       
          
        
         
       
         
        
       
         
       
         
      
       
       
          
        
         
       
         
        
         
         
       
         
      
         
       
          
          
       
     
        
      
       
       
       
       
        
         
         
        
      
         
       
        
      
       
         
       
       
      
       
       
        
        
         
       
         
        
         
       
         
         
          
          
          
            
          
     
       
      
      
       
       
     
         
    
     
       
        
          
       
     
         
        
       
         
         
         
          
          
          
        
      
       
       
         
        
         
         
         
           
          
          
          
            
            
         
       
         
        
         
         
         
           
        
          
         
            
            
         
       
         
        
         
         
         
           
          
         
         
      
            
         
       
         
        
         
         
         
           
        
          
          
            
          
         
     
         
      
     
         
       
         
        
       
       
          
        
         
       
         
        
         
         
         
           
          
          
         
            
          
       
       
         
      
       
       
       
         
          
       
       
          
        
         
     
         
        
         
       
       
         
        
         
          
        
          
         
       
         
        
         
         
         
           
          
          
          
          
            
         
       
         
        
         
         
         
           
          
          
          
          
            
         
       
         
        
         
         
         
           
          
          
         
          
            
         
       
         
        
         
       
         
         
          
          
          
            
          
         
       
         
        
         
         
         
           
          
          
          
        
      
Annex 3: EDF resources for ACP and OCTs at end 2004 (€m, net) 

I.- OLD EDFs (6th - 8th)

National/Terr. Indicative Programmes
9th EDF national transitional measures
Regional cooperation 
9th EDF regional transitional measures
9th EDF Intra-ACP transitional measures
Interest-rate subsidies
Risk capital
Structural Adjustment Facility 
Emergency aid
Aid for refugees
Stabex
Sysmin
Utilisation of interest income
Transfers from previous EDF
Debt relief
General reserve

II.- 9th EDF

Country and territory allocations
CDE, CTA & JPA (2)
Reserves for long term development 
Intra-ACP cooperation
Other regional cooperation
Reserve for regional cooperation 
Studies + Technical Assistance for OCTs
Implementation costs
Special assistance (DR Congo)
Other revenue

Total 

PM : Funds managed by the EIB
 - interest-rate subsidies
 - Investment Facility

Total at disposal
Conditional billion

Total 9th EDF

III.- CONSOLIDATED (6-9th EDFs)

National & territory allocations
CDE, CTA and JPA (2)
Reserves for long term development 

Regional cooperation
Interest-rate subsidies (6 - 8th EDFs)
Risk capital (6 - 8th EDFs)
Structural Adjustment Facility
Emergency aid
Aid for refugees
Stabex
Sysmin
Utilisation of interest income
Transfers from 1st - 5th EDFs
Debt relief (7 - 8th EDFs)
Studies + Technical Assistance for OCTs
General reserve
Implementation costs
Special assistance (DR Congo)
Other revenue

Total at disposal

Conditional billion

PM : Funds managed by the EIB
- interest rate subsidies
- Investment Facility
Total 6 - 9th EDFs

Allocations (1)

Global
Commitments

Individual
Commitments

Payments

12742.9
745.7
3484.1
0.0
60.0
394.6
2565.9
2746.6
724.0
298.5
3853.2
703.2
38.2
440.9
1100.0
0.0
29897.7

12742.9
745.7
3484.1
0.0
60.0
394.6
2565.9
2746.6
724.0
298.5
3853.2
703.2
38.2
440.9
1100.0
0.0
29897.7

11407.4
452.8
3058.8
0.0
60.0
394.6
2514.2
2689.7
723.3
290.7
3840.3
593.4
33.5
413.3
1100.0
0.0
27572.0

10106.7
303.7
2620.4
0.0
60.0
351.5
2137.1
2633.5
720.2
262.5
3406.5
563.1
29.9
393.4
1100.0
0.0
24688.5

Allocations (1)

Global
Commitments

Individual
Commitments

Payments

10485.9
64.9
424.3
1689.0
963.6
0.0
2.0
125.0
106.9
42.4
13904.0
750.0

187.9
2057.0
16898.9

4033.7
64.8
0.0
1173.4
303.2
0.0
0.7
125.0
92.0
1.8
5794.5

680.3
6474.8

1888.1
36.5
0.0
592.5
66.2
0.0
0.4
74.8
81.6
1.1
2741.2

529.8
3271.0

799.0
27.7
0.0
329.2
13.7
0.0
0.3
54.8
0.1
0.3
1225.2

97.2
1322.4

Allocations (1)

Global
Commitments

Individual
Commitments

Payments

23974.5
64.9
424.3

6196.6
394.6
2565.9
2746.6
724.0
298.5
3853.2
703.2
38.2
440.9
1100.0
2.0
0.0
125.0
106.9
42.4

43801.7

750.0

187.9
2057.0
46796.6

17522.3
64.8
0.0

5020.6
394.6
2565.9
2746.6
724.0
298.5
3853.2
703.2
38.2
440.9
1100.0
0.7
0.0
125.0
92.0
1.8

13748.2
36.5
0.0

3777.5
394.6
2514.2
2689.7
723.3
290.7
3840.3
593.4
33.5
413.3
1100.0
0.4
0.0
74.8
81.6
1.1

11209.4
27.7
0.0

3023.4
351.5
2137.1
2633.5
720.2
262.5
3406.5
563.1
29.9
393.4
1100.0
0.3
0.0
54.8
0.1
0.3

35692.2

30313.2

25913.7

680.3
36372.5

529.8
30843.0

97.2
26010.9

(1) After taking into account transfers from previous EDFs to the 9th EDF
(2) CDE: Centre for the Development of Enterprise, Brussels, Belgium; CTA: Centre for the Development of Agriculture, 
Wageningen, Netherlands; JPA: Joint ACP-EU Parliamentary Assembly

EN 

26 

   EN 

 
 
Annex 4: EDF macro-economic budgetary aid  
global commitments, 2000-2004 (€m, gross) 

Country 

2000 

2001 

2002 

2003 

2004 

Benin 
Burkina Faso 
Burundi 
Cameroon 
Cape Verde 
Central African Republic 
Chad 
Côte d'Ivoire 
DR Congo 
Djibouti 
Ethiopia 
Gabon 
The Gambia 
Ghana 
Guinea 
Guinea Bissau 
Guyana 
Jamaica 
Kenya 
Lesotho 
Madagascar 
Mali 
Mauritania 
Mozambique 
Niger 
Papua New Guinea 
Rwanda 
São Tomé & Príncipe 
Senegal 
Sierra Leone 
Tanzania 
Uganda 
Vanuatu 
Zambia 
Annual totals 
% of EDF annual global commitments 

18.80 
23.50 

19.51 
15.00 
22.00 
27.10 

10.00 

9.20 

17.20 
0.80 

35.00 

6.80 

79.20 
37.94 
10.40 
60.82 
2.80 

34.75 

74.71 

55.00 

50.00 

125.00 
22.60 

4.40 

40.00 

5.50 

106.00 

43.62 

5.81 

44.05 

95.00 

5.00 

62.00 

12.10 

10.00 
12.77 

25.65 
4.90 
4.26 
76.22 
11.04 

23.30 
25.00 
125.00 

35.00 

21.70 

30.00 

18.50 

31.76 
18.29 

3.16 

70.00 

132.92 

168.00 
20.00 

16.40 
90.00 

55.10 

114.00 

117.00 

53.00 

1.70 

76.13 

1.60 

524.33  328.06  529.55  741.42  469.43 
18% 
25% 

20% 

13% 

17% 

EN 

27 

   EN 

 
  
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
Annex 5: ACP devolution - progress by country, 2001-2004 

Sub-delegation signed by Head of Delegation 
2004 
2001 

2002 

2003 

Verification Mission 
2003 

2002 

2004  

1st Wave 
1.  South Africa 
2.  Kenya 
3.  Mali 
4.  Senegal 
5.  Côte d’Ivoire 
6.  Dominican Rep. 
2nd Wave 
7.  Burkina Faso 
8.  Ethiopia 
9.  Tanzania 
10.  Benin 
11.  Madagascar 
12.  Guinea-Conakry 
13.  Niger 
14.  Cameroon 
3rd wave 
15.  Gabon 
16.  Fiji 
17.  Malawi 
18.  Jamaica 
19.  Mauritania 
20.  Mozambique 
21.  Uganda 
22.  Mauritius 
23.  Barbados 
24.  Zimbabwe 
25.  Botswana 
26.  DR Congo 
27.  Angola 
28.  Guyana 
29.  Zambia 
30.  Central African Rep. 
31.  Chad 
32.  Rwanda 
33.  Namibia 
34.  Guinea-Bissau 
35.  Eritrea 
36.  Nigeria 
37.  Sierra Leone 
38.  Congo (Brazzaville)  
39.  Sudan 
40.  Ghana 
41.  Papua New Guinea 
42.  Haiti 
43.  Lesotho 
44.  Burundi 
Annual totals 
Cumulative annual totals 

EN 

30/11/01 

01/03/02 
14/03/02 
18/03/02 
04/04/02 
27/05/02 

26/11/02 
10/12/02 
31/12/02 

25/02/03 
24/03/03 
09/04/03 
09/05/03 
15/05/03 

27/11/03 
28/11/03 

05/02 
06/02 
07/02 
06/02 
05/02 
09/02 

05/03 
05/03 
07/03 
06/03 
06/03 
07/03 
10/03 
10/03 

12/01/04 
24/01/04 
28/01/04 
30/01/04 
12/02/04 
01/03/04 
03/03/04 
23/03/04 
29/03/04 
30/03/04 
31/03/04 
27/05/04 
21/06/04 
23/06/04 
28/06/04 
12/07/04 
30/07/04 
30/08/04 
30/08/04 
20/09/04 
30/09/04 
06/10/04 
26/10/04 
28/10/04 
Planned 2005 

Planned 2005

Planned 2005

Planned 2005
24 
40 

6 
6 

8 
14 

1 
1 

8 
9 

7 
16 

28 

03/04 
06/04 
05/04 
05/04 
05/04 
06/04 
06/04 
07/04 
06/04 
06/04 
06/04 
09/04 
06/04 
10/04 
10/04 
Planned 2005
10/04 
11/04 
09/04 
Planned 2005
11/04 
Planned 2005
12/04 
12/04 
Planned 2005

Planned 2005

Planned 2005

Planned 2005

Planned 2005

Planned 2005
21 
35 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 6: Stabex utilisation funds at end 2003 (€m, net) 

ACP country 

Transfer 
agreements 
6-8th EDFs 

Total 
interest 
accrued 

Benin 
Burkina Faso  
Burundi 
Cameroon 
Cape Verde 
Central African Republic 
Chad 
Comoros  
Côte d’Ivoire 
Dominica 
Equatorial Guinea 
Ethiopia  
Gambia 
Ghana 
Grenada 
Guinea-Bissau 
Haiti 
Jamaica 
Kenya 
Kiribati 
Lesotho 
Madagascar 
Malawi 
Mali 
Mauritania 
Mozambique 
Papua New Guinea 
Rwanda 
Samoa 
São Tomé & Príncipe 
Senegal 
Sierra Leone 
Solomon Islands 
St Lucia 
St Vincent 
Sudan 
Tanzania 
Togo 
Tonga 
Tuvalu 
Uganda 
Vanuatu 
Zimbabwe 

Total

a 

2.28 
20.06 
68.39 
260.82 
1.86 
24.62 
11.31 
9.22 
345.18 
43.38 
8.40 
184.37 
4.61 
50.58 
13.41 
1.57 
35.39 
8.81 
132.64 
0.00 
4.93 
74.24 
20.03 
0.00 
32.01 
3.64 
85.16 
66.31 
5.81 
2.89 
69.82 
14.83 
80.39 
73.34 
63.38 
190.98 
88.23 
23.74 
2.47 
0.00 
175.95 
3.50 
41.64 
2352.88 

b 

0.00
2.73
2.24
51.89
0.00
5.34
0.00
0.00
19.22
4.04

50.01
0.00
8.83
1.78
0.00
11.13
0.00
62.13
0.00
1.40
16.33
2.93
0.00
1.85
0.00
14.15
13.00
1.37
0.00
6.11
0.00
7.90
9.79
11.21
1.76
12.30
8.85
0.00
0.00
40.67
1.53
9.35
384.29

Total funds 
available 
(transfers + 
interest) 
c = a + b 

Total bank 
balance 
(Europe + 
local) 
d 

Disbursements 

e = c - d 

2.28
22.79
70.63
312.71
1.86
29.96
11.31
9.22
364.40
47.42
8.40
234.38
4.61
59.41
15.19
1.57
46.52
8.81
194.78
0.00
6.33
90.58
22.96
0.00
33.86
3.64
99.32
79.31
7.19
2.89
75.93
14.84
88.28
83.13
74.59
192.74
100.53
32.59
2.47
0.00
216.61
5.03
50.99
2737.17

0.00 
9.16 
32.65 
28.86 
1.18 
4.77 
1.94 
4.88 
43.04 
9.38 
0.00 
0.00 
1.66 
14.93 
4.06 
0.00 
11.51 
5.93 
51.44 
0.00 
0.00 
27.16 
7.72 
0.00 
17.92 
4.33 
7.73 
20.47 
1.88 
0.00 
45.68 
3.27 
73.23 
30.10 
31.34 
192.74 
42.25 
15.84 
0.00 
0.00 
62.16 
0.00 
21.04 
832.70 

2.07
13.63
37.98
283.85
1.07
25.19
9.69
5.31
321.51
38.04
0.00
233.52
3.36
44.49
11.13
0.00
35.01
3.72
143.34
0.00
6.02
63.42
15.23
1.01
15.94
0.00
91.58
58.84
5.97
0.00
30.25
12.25
15.06
53.03
43.25
0.00
58.28
16.76
0.00
0.00
154.45
4.95
29.95
1889.77

EN 

29 

   EN 

 
 
  
 
Annex 7 – Global commitments from 6-9th European Development Funds, by programming and financing instrument (€m, gross) 

EDF 

Non-budget 
support 
(projects) 

Programmable aid44 

Budget support 

General 

Sectoral 

Subtotal 
budget support 

Sub-total 
programmable 
aid 

6 

7 

8 

947 

All, 
6-9 

excl. Investment 
Facility 

incl. Investment 
Facility 

excl. Investment 
Facility 

incl. Investment 
Facility 

€m 
% of total 
€m 
% of total 
€m 
% of total 
€m 
% of total 

€m 

% of total  

€m 

% of total 

€m  

5243.48 
70.5% 
6202.26 
57.1% 

6350.93 
54.8% 

3683.48 
63.6% 

61.40 
0.8% 
1633.34 
15.0% 
2184.02 
18.8% 

1200.75 
20.7% 

3683.48 
56.9% 

1200.75 
18.5% 

0.00 
0.0% 

0.00 
0.0% 

0.00 
0.0% 

225.30 
3.9% 

225.30 
3.5% 

21480.15 

5079.51 

225.30 

60.2% 

14.2% 

0.6% 

21480.15 

5079.51 

225.30 

% of total  

59.1% 

14.0% 

0.6% 

61.40 
0.8% 
1633.34 
15.0% 
2184.02 
18.8% 
1426.05 
24.6% 

1426.05 

22.0% 

5304.81 

14.9% 

5304.81 

14.6% 

Non-programmable aid 

Financial contributions 

Export support 

Venture 
capital45 

544.32 
7.3% 
840.59 
7.7% 
1180.96 
10.2% 

0.00 
0.0% 

680.30 

10.5% 

HIPC & 
Global 
Fund46 

0.00 
0.0% 
40.00 
0.4% 
1060.00 
9.1% 
630.00 
10.9% 

630.00 

9.7% 

Stabex, 
Flex 

1451.21 
19.5% 
1702.69 
15.7% 
699.39 
6.0% 
55.00 
0.9% 

55.00 

0.8% 

Sysmin 

139.02 
1.9% 
448.79 
4.1% 
115.34 
1.0% 
0.00 
0.0% 

0.00 

0.0% 

Sub-total non 
programmable 
aid 

Total 

2134.55 
28.7% 
3032.07 
27.9% 
3055.69 
26.4% 

685.00 
11.8% 

1365.30 

21.1% 

7439.43 
100% 

10867.67 
100% 
11590.64 
100% 

5794.53 
100% 

6474.83 

100% 

5304.88 
71.3% 
7835.60 
72.1% 
8534.95 
73.6% 
5109.53 
88.2% 

5109.53 

78.9% 

26784.96 

2565.87 

1730.00 

3908.29 

703.15 

8907.31 

35692.27 

75.0% 

7.2% 

4.8% 

10.9% 

2.0% 

25.0% 

100% 

26784.96 

3246.17 

1730.00 

3908.29 

703.15 

9587.61 

36372.57 

73.6% 

8.9% 

4.8% 

10.7% 

1.9% 

26.4% 

100% 

44 
45 
46 

47 

EN 

Programmable aid comprises aid programmed within the framework of national and regional indicative programmes. 
The Commission holds accounting responsibility for venture capital (managed by the European Investment Bank) under the 6th-8th EDFs. 
HIPC:  the  World  Bank-led  Highly  Indebted  Poor  Countries  initiative,  which  helps  offset  eligible  ACP  countries’  debts.  Global  Fund:  The  Global  Fund  to  Fight  AIDS, 
Tuberculosis and Malaria.  
For the purposes of comparability across all EDFs, figures are also shown for the 9th EDF including the Investment Facility and related interest rate subsidies which fall 
under the accounting responsibility of the European Investment Bank. 

30 
EN 

 
 
 
 
                                                 
Annex 8: Cases of consultations held under Articles 96/97 of the Cotonou Agreement ( and Article 366a of the Lomé Convention) 

Country 

Dates of  
opening / closure / amendments 

Niger  

Togo  

Niger  

Guinea-
Bissau 

Comoros  

EU  declaration  on  unilateral  suspension  of 
cooperation on 29.1.96 
Council decision to conclude on 20.6. 96 
Council  decision  to  open  -  letter  to  GoT  sent  on 
13.7.98 
Council decision to conclude - letter to GoT sent 
on 14.12.98 
Council decision to open on 29.4.99 
Council decision to conclude - letter sent to GoN 
on 29.7.99 
Council decision to open- letter to GoGB sent on 
19.7.99 
Council decision to conclude on 6.12.99- letter to 
GoGB sent on 8.12.99 
Council decision to open on 12.7.99  
Council decision to conclude on 14.2. 2000-letter 
sent to GoC on 15.2.00 
Council decision to amend on 17.7.02  

Coup d’état 

Ivory Coast 

Council decision to open - letter to GoIC sent on 
14.1.00 
Council decision to conclude on 16.6.00  

Coup d’état 

Haiti 

Council decision to open on 2.8.00 
Council decision to conclude on 29.1.01-letter to 
GoH sent on 2.2.01 
Council  decision  to  amend  on  14.7.04  only  at 
COREPER 
linguistic  reasons; 
to 
Council decision on 24.9.04 

level  due 

Flawed 
process  

electoral 

EN 

31 
EN 

Reasons 

Coup d’état  

Flawed 
process  

electoral 

Deferrals of suggested consultations date 
Appropriate measures 

Financial co-operation, except projects in support of the poorest population, was suspended for 6 months. A 
gradual approach was followed after the constitutional referendum: support to electoral process & to social 
sectors resumed. 
Union letter to GoT on 1.10.98 asking for additional info following consultations, replies of GoT by letter on 
7.10.98 & 23.11.98 considered insufficient. 
Non resumption of co-operation, but without penalising civil society. 

Coup d’état 

Continuation  of  ongoing  programmes,  conditional  &  gradual  approach  for  new  programmes:  in  the  first 
phase support to elections & direct support to population, in particular in social sectors 

Coup d’état 

No appropriate measures adopted given the return to democracy during the course of consultations 

No  duration  specified,  to  review  at  regular  intervals.  Continuation  of  ongoing  projects,  for  future  actions 
gradual  &  conditional  approach:  in  the  first  phase  support  to  democratic  process,  direct  support  to 
population, decentralised co-operation, & humanitarian aid. Once a democratically elected government is in 
place  other  development  projects  can  be  adopted.  Council  decision  of  17.7.02  to  resume  cooperation  & 
allow for continuation of EDF 7+8 projects. 
Measures  valid  until  31.12.00.  Continuation  of  programmes  already  decided,  regional  co-operation  & 
humanitarian aid not affected, for new projects gradual & conditional approach focusing on support to the 
restoration of the constitutional democracy, the rule of law, good governance, & support to civil society.  
Two  Union  declarations  on  7  &  9.12.00  –  in  second  Union  announce  sits  intention  to  open  art  96 
consultations. 
Council  decision  of  29.1.01  taken  for  1+1  years,  to  review  it  by  December  2002.  Decision  not  to  make 
available the second 8th EDF tranche, suspension of direct budget aid, redirection of the remaining funds to 
projects  that  are  of  direct  benefit  to  the  Haitian  people  &  no  notification  of  9th  EDF  allocation.  On  10 
January  2003  the  appropriate  measures  were  reviewed  by  Council  to  expire  on  31  December  2003.  They 
foresaw  redirection  of  remaining  funds  of  first  8th  EDF  tranche  &  provision  of  second  tranche  for 
programmes  of  direct  benefit  to  the  people,  civil  society,  private  sector,  democratisation,  rule  of  law, 
electoral process; no notification of EDF 9 resources, no signature of NIP. Council decision of 18 December 

 
 
 
 
Fiji  

Council  decision  to  open  -  letter  to  GoF  sent  on 
4.8.00 
Council  decision  to  conclude  on  9.4.01-letter  to 
GoF sent on 12.4.01 

Coup d’état 

Côte d’Ivoire 

Council  decision  to  open-letter  to  GoIC  sent  on 
22.1.01 
Council decision to conclude on 25.6.01-letter to 
GoIC sent on 28.6.01 

Liberia  

Council decision to open on 23.7.01-letter to GoL 
sent on 3.9.01 
Council decision to conclude on 25.3.02 - letter to 
GoL sent on 27.3.02 
Council  decision  to  amend  on  25.8.03  -letter  to 
GoL sent on 27.8.03 
Council  decision  to  extend  on  22.12.04  -  letter 
sent on 23.12.04 

Lack of openness in 
elections  &  other 
developments 
during the transition 
period 
Violation  of  human 
rights 
Violations 
human 
democratic 
principles,  rule  of 
law & serious cases 
of corruption  

of 
rights, 

2003 (letter to GoH sent on 22.12.03) extended measures until 31 December 2004 with a review within six 
months.  Following  transition  in  Haiti  (Interim  Gvt  sworn  in  on  17  March  2004)  the  amended  appropriate 
measures adopted on 24 September 2004 foresee continuing the redirection of EDF 8 funds to direct benefit 
of people, strengthening civil society, supporting democratisation, rule of law & the electoral process; EDF 9 
resources will be notified following publication of the decision; discussions on CSP will start immediately; 
B-envelope could be used prior to signature of EDF 9 CSP/NIP; signature of NIP after national elections; 
operations of humanitarian nature, trade & regional co-operation not affected. Measures expire 31 December 
2005 & shall be reviewed regularly & at least within six months. 
No notification of the 9th EDF allocation & suspension of financing & implementation of new programmes 
&  projects  until  free  &  fair  elections  have  taken  place  &  a  legitimate  Government  has  assumed  office. 
Ongoing  projects  will  be  implemented  as  planned,  contributions  to  regional  projects,  operations  of  a 
humanitarian  nature,  trade  co-operation  &  trade  related  preferences  will  not  be  affected;  situation  to  be 
monitored  closely.  Letter  of  27  November  2001  recorded  progress  &  willingness  to  resume  cooperation 
under  certain  conditions;  letter  of  13  February  2002  allows  for  continuation  of  EDF  7+8  projects  & 
notification of EDF 9; signature of NIP only after implementation of Court’s decision on formation of Gvt 
(delivered on 18.7.03). Letter of 19 November 2003 conveys decision of EU to sign EDF 9 NIP & to closely 
monitor the situation. 
Gradual  resumption  of  coop.  depending  on  progress  on  national  reconciliation,  incl.  Political  dialogue, 
neutrality  &  independence  of  courts,  actions  being  taken  following  events  of  October  &  December  2000, 
condemnation  of  xenophobia.  Council  decision  to  resume  full  cooperation  on  18  February  2002-  letter  to 
GoIC sent on 19 February 2002. 

Council letter of 3.9.01 suggested consultations on 25.9.01. Amb Brandy replied on 21.9.01 that date was 
not tenable due to scheduling difficulties plus that art 96 consultations were acceptable but that the GoL did 
not consider that consultations under art 97 were justified & that a mutually agreed agenda had to be agreed 
beforehand.  EU  suggested  then  by  letter  on  5.10.01  date  of  12.10.01  which  was  refused  by  Amb.Brandy 
orally on 9.10.01 & in written on 15.10.01 due to “accusatory content of art 97”, confirming consultations 
under art 96 & asking for a new date last week in October or first week in November 2001. 
First review on 6 December 2002. Decision duration for 2 years expiring on 25 March 2004, situation to be 
followed closely. Appropriate measures: Implementation of current projects funded under Article 72 of the 
ACP-EC  Partnership  Agreement  will  be  continued;  Chapter  1  of  Annex  4  to  the  ACP-EC  Partnership 
Agreement is suspended. The balances remaining for Liberia from the 8th EDF shall be available to cover 
support  to  the  peace  process  in  Liberia;  Notification  of  the  9th  EDF  allocation  will  be  made  once  the 
comprehensive  peace  agreement  is  in  force  &  the  signatory  parties  to  the  agreement  have  shown  the 
commitment  to  implement  the  agreement  as  foreseen.  The  suspension  of  Chapter 1  of  Annex 4  to  the 
ACP-EC  Partnership  Agreement  will  not  apply  to  the  implementation  of  the  9th  EDF  allocation;  the 
Commission  retains  the  function  of  NAO  for  8th  EDF;  contributions  to  regional  projects,  operations  of  a 

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Zimbabwe 

Council  decision  to  open  on  29.10.01-letter  to 
GoZ sent on 15.11.01 
Council decision to conclude on 15.2.02-letter to 
GoZ sent on 18.2.02 

of 
rights, 

Violations 
human 
democratic 
principles,  rule  of 
law 

Central 
African 
Republic  

Council decision to open on 20 May 2003 - letter 
to GoCAR sent on 22.5.03 
Council decision to conclude on 19.11.03 - letter 
to GoCAR sent on 22.11.03 

Coup d’Etat 

Guinea-
Conakry 

Council  decision  to  open  on  30.3.04  –letter  sent 
to GoG on 31.3.04 

Flawed 
process 

electoral 

humanitarian nature, trade co-operation & trade related preferences are not affected; institution support can 
be  provided.  Revision  of  measures  decided  on  25  August  2003  allowed  for  a  €8  m  EDF  8  support  to 
ECOWAS peacekeeping force, measures expiring on 31 December 2004. 
Extension  of  appropriate  measures  decided  for  18  months.  Measures  not  revoked  until  installation  of  a 
democratically elected & accountable President & Government. Intensive political dialogue to continue as 
well as support to the peace process & to the Results Focused Transitional Framework. 
Having initially agreed to the date of 19.12.01 suggested by the Union, GoZ declined the date by letter of 
12.12.01 due to logistical difficulties. GoZ proposed date of 28.12.01 or thereabouts by letter of 13.12.01, an 
option not feasible for the Union. COREPER agreed on 17.12.01 on letter to GoZ sent on 21.12.01 insisting 
on  respecting  procedural  deadlines  of  Cotonou  &  proposing  consultations  between  3  &  11.1.02.  GoZ 
confirmed date of 11.1.02 by letter of 31.12.01. 
Decision  to  impose  measures  was  accompanied  by  imposition  of  CFSP  sanctions-visa  ban  &  freezing  of 
assets  valid  for  1  year,  to  review  by  August  2002,  expiring  18  February  2003.  Suspension  of  7+8  EDF 
budget support, & of all projects except in direct support to population; reorientation of financing in direct 
support  of  population  in  social  sectors,  democratisation,  respect  for  human  rights,  rule  of  law;  EDF9  NIP 
signature  suspended;  art  12  of  Annex  2  of  Cotonou  Agreement  suspended  in  so  far  as  required  for 
application  of  restrictive  measures  adopted  on  basis  of  Treaty  establishing  the  European  Community; 
regional projects to be evaluated case by case; humanitarian operations continue. Decision on 18 February 
2003  to  extend  these  measures  for  another  12  months  with  a  review  within  6  months.  Decision  on  19 
February 2004 to extend these measures for another 12 months with a review within 6 months. Review to be 
discussed in September 2004. Decision on 17 February 2005 to extend measures for another 12 months with 
a review after parliamentary elections/6 months. 
Measures expire on 30 June 2005 - partial suspension of cooperation concerning the Bouar-Garoua Boulia 
roads, the upgrading of Bangui’s roads & macroeconomic support.. Resumption of suspended cooperation 
regarding  macroeconomic  support  based  on  adoption  of  electoral  plan  &  respect  for  human  rights.  Full 
resumption when democracy & rule of law re-established following elections latest in 2005: first round on 
13 April, second round on 8 May. Electoral process to date fair & transparent. Pres. Bozizé & PM Ziguelé 
both run for the Presidency on 8 May. 
Initial date 15 April turned down later by Guinea on grounds of recent elections. EU reminded Guinea by 
letter  of  13  May  2004  of  legal  deadline  for  consultations  up  to  15  June  2004.  Guinea  replied  on  3  June 
proposing consultations on 14 June 2004. EU replied on 11 June 2004 that the proposed date could not be 
retained & it was up to the incoming NL Presidency to propose a new date.  
GoGuinea  to  provide  by  end  September  2004  a  table  reporting  on  progress  in  various  commitments 
undertaken during the consultations, especially regarding the transparency & the democratic character of the 
local & legislative elections foreseen in 2005 & 2007 respectively. EDF projects will continue. 
Cooperation  under  EDF  6,7,  &  8  continues  for  activities  in  the  context  of  consultations;  Cooperation 
financed out of EDF 9 B-envelope continues for programmes directly aimed at assisting most disadvantaged 
sections  of  population;  programmes  for  civil  society  &  reinforcement  of  democracy,  human  rights,  good 
governance & media; regional cooperation considered on a case-by-case basis; humanitarian operations & 

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33 
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Council decision to conclude on 13.4.05 

Togo 

Council  decision  to  open  on  30.3.04-  letter  to 
GoT sent on 31.3.04 
Council decision to conclude on 15.11.04 

electoral 

Flawed 
process 
Violation  of  human 
rights 

Guinea-
Bissau 

Council  decision  to  open  on  19.12.03-letter  sent 
to GoGB on 7.1.04 
Council  decision  to  conclude  on  14.7.04  only  at 
linguistic  reasons; 
to 
COREPER 
Council decision on 24.9.04 

level  due 

Coup d’état 

trade cooperation continue; support for elections preparations possible out of either EDF 6,7, 8 or EDF 9 B-
envelope  once  adequate  electoral  arrangements  established;  EDF  9  CSP/NIP  to  be  signed  &  implemented 
once progress in the undertakings noted, in particular preparation & holding of free & transparent local & 
parliamentary elections. EU assessment to be based on two criteria: a) holding of free & transparent local 
elections & duly elected local authority executives take office, & b) establishment of electoral arrangements 
&  operational  requirements  for  parliamentary  elections,  including  date,  based  on  Durban  Declaration  on 
Principles Governing Democratic Elections in Africa, in the framework of political dialogue with opposition. 
Six-monthly reviews foreseen. Monitoring period of 36 months from date of Council decision & enhanced 
political dialogue. 
Second report by Togolese authorities received at Commission on 6 July 2004 on basis of which conclusion 
of consultations was proposed by Commission in September 2004. 
Measures  comprise  the  continuation  of  EDF  6+7  projects  meeting  needs  of  the  population  &  promoting 
compliance  with  essential  elements,  including  the  national  programme  of  decentralised  environmental 
management  &  the  1990-1994  Framework  of  Mutual  Obligations  for  Stabex  Funds;  institutional  aid  to 
implement  undertakings  to  be  provide  out  of  EDF  6+7  balances,  including  a  4th  general  population  & 
housing  census;  EDF  9  allocation  to  be  notified  once  electoral  arrangements  acceptable  to  all  parties  are 
established & date for parliamentary elections set- that will trigger programming of resources; once EDF 9 is 
notified  electoral  aid  to  be  given  if  above  arrangements  adhered  to;  following  free  &  fair  parliamentary 
elections  full  resumption  of  cooperation  will  follow  &  implementation  of  the  1995-1999  Framework  pf 
Mutual  Obligations  for  Stabex  Funds;  regional  projects  to  be  considered  on  a  case-by-case  basis; 
humanitarian operations, trade cooperation & trade-linked preferences not affected. 
Intensive political dialogue over three months, followed by an assessment. 
Monitoring  of  progress  in  areas  of  great  concern-  return  to  independent  judiciary,  restoration  of  civilian 
control  over  armed  forces,  consolidation  of  public  finances,  &  pursuit  of  timetable  of  elections  including 
presidential  elections.  Decision  to  be  valid  for  12  months  as  from  day  of  publication,  i.e.  until  8  October 
2005. 

EN 

34 
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