Council Regulation (EC) No 2112/2005 of  21 November 2005  on access to Community external assistance
Date: 2005-11-21
Institutions: Council of the European Union
Subjects: Development Assistance Committee, EU aid, aid system, development aid, invitation to tender, non-governmental organisation, public contract

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COUNCIL REGULATION (EC) No 2112/2005

of 21 November 2005

on access to Community external assistance

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 181a thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the European Economic and
Social Committee (1),

Whereas:

(1)

(2)

(3)

The practice of tying the granting of aid, directly or indi-
rectly, to the purchase of goods and services procured by
means of that aid in the donor country reduces its effec-
tiveness and is not coherent with a pro-poor development
policy. The untying of aid is not an aim in itself, but should
be used as a tool to cross-fertilise other elements in the
fight against poverty, such as ownership, regional integra-
tion and capacity building, with a focus on empowering
local and regional suppliers of goods and services in devel-
oping countries.

In March 2001, the Development Assistance Committee
(DAC) of the Organisation for Economic Cooperation and
Development (OECD) adopted a ‘Recommendation on
Untying Official Development Assistance to the Least
Developed Countries’ (2). The Member States adopted that
recommendation and the Commission recognised the
spirit of this recommendation as guidance for Community
aid.

On 14 March 2002, the General Affairs Council held in
parallel with the European Council in Barcelona in prepa-
ration for the International Conference on Financing for
Development, convened in Monterrey on 18 to 22 March
2002, concluded that the European Union would ‘imple-
ment the DAC recommendation on untying of aid to least
developed countries and continue discussions in view of
further untying bilateral aid. The EU will also consider steps
towards further untying of Community aid while main-
taining the existing system of price preferences of the
EU-ACP framework’.

(4)

(5)

(6)

(7)

On 18 November 2002, the Commission adopted a com-
munication to the Council and to the European Parliament
entitled ‘Untying: Enhancing the effectiveness of aid’. It pre-
sented the Commission’s views on the issue and possible
options for the implementation of the abovementioned
Barcelona commitment within the EU aid assistance
system.

In its Conclusions on the Untying of Aid of 20 May 2003
the Council underlined the need to further untie Commu-
nity aid. It agreed to the modalities detailed on the above-
mentioned Communication and decided on the options
proposed.

On 4 September 2003, the European Parliament adopted
a resolution on the abovementioned Commission commu-
nication (3), in which it noted the need to further untie
Community aid. It supported the modalities detailed in
that Communication and agreed to the options proposed.
It highlighted the need for further debate geared towards
more untying on the basis of further studies and docu-
mented proposals, and called explicitly for ‘a clear prefer-
ence for local and regional cooperation, prioritising – in
ranking order – suppliers from the recipient country,
neighbouring developing countries, and other developing
countries’, in order to strengthen the efforts of the recipi-
ent countries to improve their own production at national,
regional, local and family level, as well as actions aimed at
improving the availability and accessibility to the public of
foodstuffs and basic services, consistent with local habits
and production and trading systems.

Several elements need to be addressed in order to define
access to Community external assistance. The rules of eli-
gibility governing access by persons are laid down in
Article 3. The rules governing the engagement of experts
and the origin of supplies and materials purchased by eli-
gible persons are laid down in Articles 4 and 5 respectively.
The definition and modalities of implementation of reci-
procity are set out in Article 6. Derogations and their
implementation are provided for in Article 7. Specific pro-
visions concerning operations financed through an inter-
national organisation or a regional organisation, or co-
financed with a third country, are laid down in Article 8.
Specific provisions concerning humanitarian aid are laid
down in Article 9.

(1) OJ C 157, 28.6.2005, p. 99.
(2) OECD/DAC 2001 Report, 2002, Volume 3, No 1, p. 46.

(3) OJ C 76 E, 25.3.2004, p. 474.

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(8)

Access to Community external assistance is defined in the
basic acts regulating such assistance, in conjunction with
Council Regulation (EC, Euratom) No 1605/2002 of
25 June 2002 on the Financial Regulation applicable to the
general budget of the European Communities (1) (herein-
after the Financial Regulation). The changes made by this
Regulation to access to Community aid entail amendments
to all those instruments. All the modifications to the basic
acts concerned are listed in Annex I to this Regulation.

(9) When awarding tenders under a Community instrument,
special consideration will be given to respect for interna-
tionally agreed core labour standards of the International
Labour Organisation (ILO), e.g. the conventions on free-
dom of association and collective bargaining, elimination
of forced and compulsory labour, elimination of discrimi-
nation in respect of employment and occupation, and the
abolition of child labour.

(10) When awarding tenders under a Community instrument,
special consideration will be given to respect for the fol-
lowing internationally agreed environmental conventions:
the Convention on Biological Diversity of 1992, the Carta-
gena Protocol on Biosafety of 2000 and the Kyoto Proto-
col to the United Nations Framework Convention on
Climate Change of 1997,

HAS ADOPTED THIS REGULATION:

Article 1

Scope

Article 3

Rules of eligibility

1.
Participation in the award of procurement or grant con-
tracts financed under a Community instrument shall be open to
all legal persons who are established in a Member State of the
European Community, in an official candidate country as recog-
nised by the European Community or in a Member State of the
European Economic Area.

2.
Participation in the award of procurement or grant con-
tracts financed under a Community instrument with thematic
scope, as defined in Annex I, Part A, shall be open to all legal per-
sons who are established in a developing country, as specified in
the OECD Development Assistance Committee list set out in
Annex II, in addition to those legal persons already eligible by vir-
tue of the instrument concerned.

3.
Participation in the award of procurement or grant con-
tracts financed under a Community instrument with geographi-
cal scope, as defined in Annex I, Part B, shall be open to all legal
persons who are established in a developing country as specified
in the OECD Development Assistance Committee list set out in
Annex II and who are expressly mentioned as eligible, and to
those already stated to be eligible by the instrument concerned.

4.
Participation in the award of procurement or grant con-
tracts financed under a Community instrument shall be open to
all legal persons who are established in any country other than
those referred in paragraphs 1, 2 and 3 of this Article, where
reciprocal access to their external assistance has been established
pursuant to Article 6.

This Regulation lays down the rules for access by interested par-
ties to Community external assistance instruments financed by
the general budget of the European Union, as listed in Annex I.

5.
Participation in the award of procurement or grant con-
tracts financed under a Community instrument shall be open
to international organisations.

Article 2

Definitions

6.
The above is without prejudice to the participation of cat-
egories of organisations eligible for the award of any contract, or
to the exception set out in Article 114(1) of the Financial
Regulation.

For the interpretation of the terms used in this Regulation, refer-
ence is made to the Financial Regulation and to Commission
Regulation (EC, Euratom) No 2342/2002 of 23 December 2002
laying down detailed rules for the implementation of Council
Regulation (EC, Euratom) No 1605/2002 on the Financial Regu-
lation applicable to the general budget of
the European
Communities (2).

Article 4

Experts

(1) OJ L 248, 16.9.2002, p. 1.
(2) OJ L 357, 31.12.2002, p. 1. Regulation as amended by Regulation (EC,

Euratom) No 1261/2005 (OJ L 201, 2.8.2005, p. 3).

All experts engaged by tenderers as defined in Articles 3 and 8 may
be of any nationality. This Article is without prejudice to the
qualitative and financial requirements set out in the Community’s
procurement rules.

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Article 5

Rules of origin

In duly substantiated exceptional cases, the Commission
2.
may allow the purchase of supplies and materials originating from
a country not eligible under Article 3.

All supplies and materials purchased under a contract financed
under a Community instrument must originate from the Commu-
nity or from an eligible country as defined in Articles 3 and 7
herein. The term ‘origin’ for the purpose of this Regulation is
defined in the relevant Community legislation on rules of origin
for customs purposes.

3.
Derogations as provided for in paragraphs 1 and 2 may be
justified on the basis of the unavailability of products and services
in the markets of the countries concerned, for reasons of extreme
urgency, or if the eligibility rules would make the realisation of a
project, a programme or an action impossible or exceedingly
difficult.

Article 6

Reciprocity with third countries

1.
Reciprocal access to the Community’s external assistance
shall be granted for a country falling within the scope of
Article 3(4), whenever such country grants eligibility on equal
terms to the Member States and to the recipient country
concerned.

2.
The granting of reciprocal access to the Community’s exter-
nal assistance shall be based on a comparison between the EU and
other donors and shall proceed at sectoral level, as defined by the
OECD Development Assistance Committee categories, or at coun-
try level, regardless of whether the country concerned is a donor
or a recipient country. The decision to grant such reciprocity to a
donor country shall be based on the transparency, consistency
and proportionality of the aid provided by that donor, including
its qualitative and quantitative nature.

3.
Reciprocal access to the Community’s external assistance
shall be established by means of a specific decision concerning a
given country or a given regional group of countries. Such a deci-
sion shall be adopted in accordance with Council Decision
1999/468/EC of 28 June 1999 laying down the procedures for
the exercise of implementing powers conferred on the Commis-
sion (1) under the procedures and relevant committee associated
with the act concerned. The right of the European Parliament to
be regularly informed pursuant to Article 7(3) of that Decision
shall be fully respected. Such a decision shall run for a minimum
period of one year.

4.
Reciprocal access to the Community’s external assistance in
the least developed countries as listed in Annex II shall be auto-
matically granted to the third countries listed in Annex III.

The recipient countries shall be consulted as part of the pro-

5.
cedure described in paragraphs 1, 2 and 3.

Article 7

Derogations from the rules of eligibility and origin

1.
In duly substantiated exceptional cases, the Commission
may extend eligibility to legal persons from a country not eligible
under Article 3.

Article 8

Operations involving international organisations
or co-financing

1. Whenever Community funding covers an operation imple-
mented through an international organisation, participation in
the appropriate contractual procedures shall be open to all legal
persons who are eligible pursuant to Article 3 as well as to all
legal persons who are eligible pursuant to the rules of that organi-
sation, care being taken to ensure that equal treatment is afforded
to all donors. The same rules shall apply in respect of supplies,
materials and experts.

2. Whenever Community funding covers an operation
co-financed with a third country, subject to reciprocity as defined
in Article 6, or with a regional organisation, or with a Member
State, participation in the appropriate contractual procedures
shall be open to all legal persons who are eligible pursuant to
Article 3 as well as to all legal persons who are eligible under the
rules of such third country, regional organisation or Member
State. The same rules shall apply in respect of supplies, materials
and experts.

As far as food aid operations are concerned, the application

3.
of this Article shall be limited to emergency operations.

Article 9

Humanitarian aid and NGOs

1.
For the purposes of humanitarian aid, within the meaning
of Council Regulation (EC) No 1257/96 of 20 June 1996 con-
cerning humanitarian aid (2) and for the purposes of aid chan-
neled directly through NGOs, within the meaning of Council
Regulation (EC) No 1658/98 of 17 July 1998 on co-financing
operations with European non-governmental development
organisations (NGOs) in fields of interest to the developing coun-
tries (3), the provisions of Article 3 shall not apply to the eligibil-
ity criteria established for the selection of grant beneficiaries.

(2) OJ L 163, 2.7.1996, p. 1. Regulation as amended by Regulation (EC)
No 1882/2003 of the European Parliament and of the Council
(OJ L 284, 31.10.2003, p. 1).

(3) OJ L 213, 30.7.1998, p. 1. Regulation as amended by Regulation (EC)

(1) OJ L 184, 17.7.1999, p. 23.

No 1882/2003.

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Beneficiaries of these grants shall abide by the rules estab-
2.
lished in this Regulation where the implementation of the assisted
humanitarian action and aid channeled directly through NGOs
within the meaning of Regulation (EC) no 1658/98 requires the
award of procurement contracts.

Article 10

Respect for core principles and strengthening local
markets

1.
In order to accelerate the eradication of poverty through the
promotion of local capacities, markets and purchases, special con-
sideration shall be given to local and regional procurement in
partner countries.

2.
Tenderers who have been awarded contracts shall respect
internationally agreed core labour standards, e.g. the ILO core
labour standards, conventions on freedom of association and col-
lective bargaining, elimination of forced and compulsory labour,
elimination of discrimination in respect of employment and occu-
pation, and the abolition of child labour.

Access by developing countries to Community external
3.
assistance shall be rendered possible by all such technical assis-
tance as is deemed appropriate.

Article 11

Implementation of the Regulation

This Regulation amends and regulates the relevant parts of all
existing Community instruments listed in Annex I. The Commis-
sion shall amend Annexes II to IV to this Regulation from time to
time to take account of any amendments to OECD texts.

Article 12

Entry into force

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

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

Done at Brussels, 21 November 2005.

For the Council
The President
J. STRAW

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The following amendments are made to the Community instruments listed hereafter.

ANNEX I

PART A — Community instruments with a thematic scope

1.

Council Regulation (EC) No 1725/2001 of 23 July 2001 concerning action against anti-personnel landmines in third
countries other than developing countries (1):

— Article 4(2) is replaced by the following:

‘2.
Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance
with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of
21 November 2005 on access to Community external assistance (*):

(*) OJ L 344, 27.12.2005, p. 23.’

— in Article 7(3) the following sentence is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is defined in the Regulation (EC) No 2112/2005.’

2.

Council Regulation (EC) No 976/1999 of 29 April 1999 laying down the requirements for the implementation of Com-
munity operations, other than those of development cooperation, which, within the framework of Community coop-
eration policy, contribute to the general objective of developing and consolidating democracy and the rule of law and
to that of respecting human rights and fundamental freedoms in third countries (2):

— in Article 5(1) the following sentence is added:

‘Eligibility for grant contracts shall be further determined in accordance with the rules of eligibility, and the dero-
gations therefrom, set out in Council Regulation (EC) No 2112/2005 0f 21 November 2005 on access to Com-
munity external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— Article 6 is replaced by the following:

‘Article 6

To be eligible for Community aid, the partners referred to in Article 5(1) must have their main headquarters in a
country eligible for Community aid under this Regulation, as well as under Regulation (EC) No 2112/2005. Such
headquarters must be the effective decision-making centre for all operations financed under this Regulation. Excep-
tionally, the headquarters may be in another third country.’

— Article 9 is replaced by the following:

‘Article 9

Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance
1.
with the rules of eligibility, and the derogations therefrom, laid down in this Regulation, as well as those set out
in Regulation (EC) No 2112/2005.

(1) OJ L 234, 1.9.2001, p. 6.
(2) OJ L 120, 8.5.1999, p. 8. Regulation as last amended by Regulation (EC) No 2242/2004 (OJ L 390, 31.12.2004, p. 21).

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The origin of supplies and materials purchased under this Regulation shall be further determined in accor-

2.
dance with the rules of origin, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.’

PART B — Community instruments with a geographical scope

3.

Council Regulation (EC) No 2500/2001 of 17 December 2001 concerning pre-accession financial assistance for
Turkey (1):

— in Article 8(7) the following sentence is added to the first subparagraph:

‘Eligibility for participation in tendering procedures under this Regulation shall be further determined in accor-
dance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005
of 21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— in Article 8(7) the following sentence is added to the second subparagraph:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is further defined in Regulation (EC) No 2112/2005.’

— in Article 8 the following paragraph is added:

The origin of supplies and materials purchased under this Regulation shall be further defined in accordance

‘8.
with the rules of origin, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.’

4.

Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina,
Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia (2):

— in Article 7(3) the following sentence is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be further determined in accor-
dance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005
of 21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— Article 7(4) is replaced by the following:

Participation in contractual procedures implemented through an international organisation or co-financed

‘4.
with a third country is defined in Regulation (EC) No 2112/2005’

5.

Council Regulation (EC, Euratom) No 99/2000 of 29 December 1999 concerning the provision of assistance to the
partner States in Eastern Europe and Central Asia (3):

— in Article 11(3) the following sentence is added:

‘The origin of supplies and materials purchased under this Regulation shall be further determined in accordance
with the rules of origin, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of.
21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

(1) OJ L 342, 27.12.2001, p. 1. Regulation as last amended by Regulation (EC) No 850/2005 (OJ L 141, 4.6.2005, p. 1).
(2) OJ L 306, 7.12.2000, p. 1. Regulation as last amended by Regulation (EC) No 2257/2004 (OJ L 389, 30.12.2004, p. 1).
(3) OJ L 12, 18.1.2000, p. 1.

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— in Article 11(4) the following sentence is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be further determined in accor-
dance with the rules of eligibility, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.’

— in Article 11(5) the following sentence is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is further defined in Regulation (EC) No 2112/2005.’

6.

Council Regulation (EC) No 1267/1999 of 21 June 1999 establishing an Instrument for Structural Policies for
Pre-Accession (1):

— in Article 6a(1) the following sentence is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be further determined in accor-
dance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005
of 21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— in Article 6a(2) the following subparagraph is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is further defined in Regulation (EC) No 2112/2005.’

7.

Council Regulation (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agri-
culture and rural development in the applicant countries of central and eastern Europe in the pre-accession period (2):

— in Article 3(3) the following sentence is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with
the rules of eligibility and the derogations therefrom laid down herein, as well as in Council Regulation (EC)
No 2112/2005 of 21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

8.

Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical measures to accompany (MEDA) the
reform of economic and social structures in the framework of the Euro-Mediterranean Partnership (3):

— in Article 8(1) the following sentence is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with
the rules of eligibility and the derogations therefrom laid down herein, as well as in Council Regulation (EC)
No 2112/2005 of 21 November 2005 on access to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— in Article 8(8) the following sentence is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is defined in Regulation (EC) No 2112/2005.’

(1) OJ L 161, 26.6.1999, p. 73. Regulation as last amended by Regulation (EC) No 2257/2004.
(2) OJ L 161, 26.6.1999, p. 87. Regulation as last amended by Regulation (EC) No 2257/2004.
(3) OJ L 189, 30.7.1996, p. 1. Regulation as last amended by Regulation (EC) No 2698/2000 (OJ L 311, 12.12.2000, p. 1).

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9.

Council Regulation (EEC) No 1762/92 of 29 June 1992 on the implementation of the Protocols on financial and tech-
nical cooperation concluded by the Community with Mediterranean non-member countries (1):

— in Article 2(1) the following subparagraph is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is further defined in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access
to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

10. Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic coop-

eration with, the developing countries in Asia and Latin America (2):

— in Article 9 the following subparagraph is added:

‘Participation in contractual procedures implemented through an international organisation or co-financed with a
third country is further defined in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access
to Community external assistance (*).

(*) OJ L 344, 27.12.2005, p. 23.’

— in Article 13 the following subparagraph is added:

‘Eligibility for participation in tendering procedures under this Regulation shall be further determined in accor-
dance with the rules of eligibility, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.’

(1) OJ L 181, 1.7.1992, p. 1.
(2) OJ L 52, 27.2.1992, p. 1. Regulation as amended by Regulation (EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36).

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ANNEX II

Development Assistance Committee list of aid recipients — as at1 January 2003

Part I: Developing Countries and Territories
(Official Development Assistance)

Part II: Countries and Territories in Transition
(Official Aid)

High-Income Coun-
tries (HICs)
(per capita GNI
>$9206 in 2001)

Bahrain

Central and Eastern
European Countries
and New Indepen-
dent States of the
former Soviet Union
(CEECs/NIS)

Belarus (*)
Bulgaria (*)
Czech Republic (*)
Estonia (*)
Hungary (*)
Latvia (*)
Lithuania (*)
Poland (*)
Romania (*)
Russia (*)
Slovak Republic (*)
Ukraine (*)

More Advanced
Developing Countries
and Territories

Aruba (**)
Bahamas
Bermuda (**)
Brunei
Cayman Islands (**)
Chinese Tapei
Cyprus
Falkland Islands (**)
French Polynesia (**)
Gibraltar (**)
Hong Kong,
China (**)
Israel
Korea
Kuwait
Libya
Macao (**)
Malta
Netherlands Anti-
lles (*)
New Caledonia (**)
Qatar
Singapore
Slovenia
United Arab Emir-
ates
Virgin Islands
(UK) (**)

Other Low-Income
Countries
(Other LICs)
(per capita GNI
<$745 in 2001

Armenia (*)
Azerbaijan (*)
Cameroon
Congo, Rep.
Côte d’Ivoire
Georgia (*)
Ghana
India
Indonesia
Kenya
Korea, Democratic
Republic
Kyrgyz Rep. (*)
Moldova (*)
Mongolia
Nicaragua
Nigeria
Pakistan
Papua New
Guinea
Tajikistan (*)
Uzbekistan (*)
Viet Nam
Zimbabwe

Least Developed Coun-
tries (LDCs)

Afghanistan
Angola
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cambodia
Cape Verde
Central African
Republic
Chad
Comoros
Congo, Dem. Rep.
Djibouti
Equatorial Guinea
Eritrea
Ethiopia
Gambia
Guinea
Guinea-Bissau
Haiti
Kiribati
Laos
Lesotho
Liberia
Madagascar
Malawi
Maldives
Mali
Mauritania
Mozambique
Myanmar
Nepal
Niger
Rwanda
Samoa
Sao Tome and
Principe
Senegal
Sierra Leone
Salomon Islands
Somalia
Sudan
Tanzania
Timor-Leste
Togo
Tuvalu
Uganda
Vanuatu
Yemen
Zambia

Lower Middle-
Income Countries
(LMICs)
(per capita GNI
$746-$2975 in
2001)

Upper middle-
Income Countries
(UMICs)
(per capita GNI
$2976-$9205 in
2001)

Botswana
Brazil
Chile
Cook Islands
Costa Rica
Croatia
Dominica
Gabon
Grenada
Lebanon
Malaysia
Mauritius
Mayotte (**)
Nauru
Panama
St Helena (**)
St Lucia
Venezuela

Threshold for
World Bank loan
Eligibility ($5185
in 2001)

Anguilla (**)
Antigua nd Bar-
buda
Argentina
Barbados
Mexico
Montserrat (**)
Oman
Palau Islands
Saudi Arabia
Seychelles
St Kitts and Nevis
Trinidad and
Tobago
Turks and Caicos
Islands (**)
Uruguay

Albania (*)
Algeria
Belize
Bolivia
Bosnia and Herze-
govina
China
Colombia
Cuba
Dominican
Republic
Ecuador
Egypt
El Salvador
Fiji
Guaemala
Guyama
Honduras
Iran
Iraq
Jamaica
Jordan
Kazakhstan (*)
Macedonia
(former Yugoslav
Republic)
Marshall Islands
Micronesia, Feder-
ated States
Morocco
Namibia
Niue
Palestinian
Administered
Areas
Paraguay
Peru
Philippines
Serbia & Montene-
gro
South Africa
Sri Lanka
St Vincent &
Grenadines
Suriname
Swaziland
Syria
Thailand
Tokelau (**)
Tongo
Tunisia
Turkey
Turkmenistan (*)
Wallis and
Futuma (**)

(*) Central and Eastern European countries and New Independent States of the former Soviet union (CHEECs/NIS).
(**) Territory;

L 344/32

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Official Journal of the European Union

27.12.2005

ANNEX III

LIST OF OECD DEVELOPMENT ASSISTANCE COMMITTEE MEMBERS

Australia, Austria, Belgium, Canada, Denmark, European Commission, Finland, France, Germany, Greece, Ireland, Italy,
Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, United
States.

27.12.2005

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Official Journal of the European Union

L 344/33

ANNEX IV

Extracts from the Recommendation on Untying Official Development Assistance to the Least Developed Countries
by the Development Assistance Committee of the Organisation for Economic Cooperation and Development
(OECD/DAC), March 2001

II.

Implementation

(a) Coverage

7. Untying is a complex process. Different approaches are required for different categories of ODA, and actions by Mem-
bers to implement the recommendation will vary in coverage and timing. Bearing this in mind, DAC Members will untie
their ODA to the least developed countries to the greatest extent possible and in accordance with the criteria and pro-
cedures set out in this recommendation:

(i) DAC Members agree to untie, by 1 January 2002, ODA to the least developed countries in the following areas:
balance of payments and structural adjustment support; debt forgiveness; sector and multi-sector programme assis-
tance; investment project aid; import and commodity support; commercial services contracts, and ODA to non-
governmental organisations for procurement related activities.

(ii)

In respect of investment-related technical cooperation and free-standing technical cooperation, it is recognised that
DAC Members’ policies may be guided by the importance of maintaining a basic sense of national involvement in
donor countries alongside the objective of calling upon partner countries’ expertise, bearing in mind the objectives
and principles of this recommendation. Free-standing technical cooperation is excluded from the coverage of the
recommendation.

(iii)

In respect of food aid, it is recognised that DAC Members’ policies may be guided by the discussions and agree-
ments in other international fora governing the provision of food aid, bearing in mind the objectives and prin-
ciples of this recommendation.

8. This recommendation does not apply to activities with a value of less than SDR 700 000 (SDR 130 000 in the case of

investment-related technical cooperation).