Proposal for a Council Decision on the position to be adopted by the Community within the ACP-EC Council of Ministers regarding a decision to reassign part of the reserve of the 9th European Development Fund (EDF) envelope for long-term development
Date: 2006-04-28
Institutions: European Commission
Subjects: ACP countries, European Development Fund, cooperation agreement, development aid, regional cooperation, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 28.4.2006 
COM(2006)185 final 

Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Community within the ACP-EC Council of 
Ministers regarding a decision to reassign part of the reserve of the 9th European 
Development Fund (EDF) envelope for long-term development 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The European Community plays an active part in the formulation and implementation of new 
initiatives to aid developing countries. Such initiatives in favour of the ACP countries make a 
significant  contribution  to  poverty  reduction,  the  main  objective  of  both  the  ACP-EC 
Partnership  Agreement  signed  in  Cotonou  on  23  June  2000  and  the  Community's 
development policy. 

Since the initial programming of the 9th EDF regional allocation, new initiatives have been 
developed to meet specific needs arising from the ACP countries' existing priorities and from 
the priorities set by the EU in the context of its development policy, in particular intra-ACP 
cooperation, which benefits many or all ACP States. 

to 

initially  allocated 

intra-ACP  cooperation  under 

The  amount 
the  9th  EDF 
(EUR 300 million) has proved to be too little to cover these new initiatives. Once the reserve 
for  regional  cooperation  was  exhausted,  in  addition  to  regular  transfers  of  the  unexpended 
balances of the previous Funds (6th, 7th and 8th EDFs), the reserve of 9th EDF envelope for 
long-term development had to be mobilised several times in order to increase the intra-ACP 
appropriation (also done by drawing on the conditional sum of EUR 1 billion of the 9th EDF 
total that was initially set aside), which now stands at EUR 2 573 million. 

This  amount  is  fully  committed  and  no  regional  or  intra-ACP  reserve  remains  available  to 
finance new initiatives. 

In these circumstances, in accordance with paragraph 8 of Annex I, the Financial Protocol to 
the ACP-EC Partnership Agreement, the ACP-EC Council of Ministers may take appropriate 
measures  when  the  resources  provided  for  in  any  of  the  instruments  of  the  Agreement  are 
exhausted. 

The Commission therefore proposes, subject to the agreement of the Council, that the ACP-
EC  Council  of  Ministers  adopt  the  attached  decision  providing  for  the  transfer  of 
EUR 110 million from the reserve of the 9th EDF envelope for long-term development to the 
appropriation  for  intra-ACP  cooperation  within  the  framework  of  the  envelope  for  regional 
cooperation. This total amount will be assigned as follows: 

–  EUR 70 million for the EU-Africa Partnership for Infrastructure, of which EUR 60 million 
for  a  trust  fund  to  be  managed  by  the  European  Investment  Bank  (EIB)  and 
EUR 10 million  to  finance  preparatory  actions  and  studies  for  the  Africa  infrastructure 
plan; 

–  some EUR 20 million to promote the integration of the ACP states in world trade, of which 
some EUR 10 million for increasing Community support for the multilateral initiative, "the 
integrated framework", and about EUR 10 million for continuing the Community project to 
help the ACP States participate more actively in the World Trade Organisation (WTO); 

–  some EUR 20 million for various actions such as the financing of a sugar research project 
to  underpin  measures  to  accompany  reform  in  countries  covered  by  the  sugar  protocol 
(about  EUR 9 million),  the  creation  of  a  Erasmus  Mundus  "window"  for  the  ACP  States 
(about  EUR 5 million),  support  for  the  trust  fund  of  the  African  Union's  African  Peer 
Review Mechanism (about EUR 2 million) and support for UN-HABITAT's participatory 
programme to upgrade slums in ACP countries (about EUR 4 million); 

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For these reasons, the Commission proposes that the Council adopt the attached decision on 
the use of the reserve of the 9th EDF envelope for long-term development. 

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Proposal for a 

COUNCIL DECISION 

on the position to be adopted by the Community within the ACP-EC Council of 
Ministers regarding a decision to reassign part of the reserve of the 9th European 
Development Fund (EDF) envelope for long-term development 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 310 in conjunction with Article 300(2), second indent thereof, 

Having regard to the proposal from the Commission, 

Whereas:  

(1) 

(2) 

Article 15 of the ACP-EC Partnership Agreement signed in Cotonou on 23 June 2000 
and  revised  in  Luxembourg  on  25 June  2005  establishes  an  ACP-EC  Council  of 
Ministers  with  powers  to  take  decisions  in  accordance  with  the  Agreement,  and 
paragraph 8 of Annex I authorises it to take appropriate measures if the funds provided 
for in any of the instruments of the Agreement are exhausted. 

The  funds  of  the  9th  EDF  envelope  for  regional  cooperation  and  integration  are 
exhausted. The Community's position within the ACP-EC Council of Ministers should 
therefore be established with a view to adoption of a decision to reassign part of the 
reserve  of  the  9th  EDF  envelope  for  long-term  development  to  the  benefit  of  the 
appropriation  intended  for  intra-ACP  cooperation  within  the  framework  of  the 
envelope relating to regional cooperation, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Community shall take the following position within the ACP-EC Council of Ministers on 
the  use  of  the  reserve  of  the  long-term  development  envelope  of  the  9th  European 
Development Fund, based on the attached draft decision of the ACP-EC Council of Ministers. 

Minor  changes  may  be  made  to  this  draft  decision  without  a  new  Council Decision  being 
necessary. 

Done at Brussels, 

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For the Council 
The President 

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ANNEX 

Draft 

DECISION OF THE ACP-EC COUNCIL OF MINISTERS 

on reassigning part of the reserve of the long-term development envelope of the 9th 
European Development Fund 

THE ACP-EC COUNCIL OF MINISTERS, 

Having regard to the Partnership Agreement between the members of the African, Caribbean 
and Pacific Group of States (hereinafter referred to as the "ACP States") of the one part, and 
the  European  Community  and  its  Member  States,  of  the  other  part,  signed  in  Cotonou  on 
23 June 20001 and  revised  in  Luxembourg on 25  June 20052 (hereinafter referred to as "the 
ACP-EC Partnership Agreement"), and in particular paragraph 8 of Annex I thereto, 

Whereas:  

(1) 

The funds available for regional cooperation and the integration are committed.  

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

Additional resources should be allocated to help set up an EU-Africa Partnership for 
Infrastructure that will facilitate interconnectivity on a continental scale and promote 
regional integration. 

Additional  resources  should  be  allocated  to  better  integrate  the  ACP  states  in 
international  trade  in  follow-up  to  the  actions  already  carried  out  by  the  European 
Community. 

Additional  resources  should  be  allocated  to  support  sugar  research  designed  to 
underpin  existing  measures  to  accompany  reform  in  countries  covered  by  the  sugar 
protocol. 

Additional resources should be allocated to enable the ACP states to take advantage of 
the ERASMUS MUNDUS programme. 

Additional resources should be allocated to support the African Union's African Peer 
Review  Mechanism  aimed  at  encouraging  political  stability,  economic  growth  and 
sustainable development. 

Additional resources should be allocated for action plans to upgrade slums in specific 
areas of the ACP countries. 

1 
2 

OJ L 317, 15.12.2000, p.3. 
OJ L 287, 28.10.2005, p.4. 

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HAS DECIDED AS FOLLOWS: 

Article 1 - Intra-ACP cooperation under the envelope for regional cooperation and regional 
integration 

An  amount  of  €110  million  shall  be  transferred  from  the  reserve  of  the  long-term 
development envelope of the 9th EDF to the allocation for intra-ACP cooperation within the 
regional cooperation envelope, in accordance with the objectives set out in Articles 28, 29 and 
30  of  the  ACP-EC  Partnership  Agreement.  This  amount  can  be  used  for  the  following 
purposes:  

1.1 

1.2 

1.3 

Setting-up  an  EU-Africa  Partnership  for  Infrastructure  (EUR  70  million):  a 
contribution  of  EUR 60 million  for  a  trust  fund  to  be  managed  by  the  European 
Investment  Bank  (EIB)  and  EUR 10  million  to  finance  preparatory  actions  and 
studies for the infrastructure plan in Africa; 

Promoting the integration of the ACP states in world trade (up to EUR 20 million): 
up  to  EUR  10  million  for  stepping  up  Community  support  for  the  multilateral 
initiative, "the integrated framework", and up to EUR 10 million for continuing the 
Community  project  to  help  the  ACP  States  participate  more  actively  in  the  World 
Trade Organisation (WTO); 

Finance  the  following  actions  in  favour  of  many  or  all  ACP  States  (up  to 
EUR 20 million):  the  financing  of  a  sugar  research  project  to  underpin  measures  to 
accompany reform in countries covered by the sugar protocol (up to EUR 9 million), 
the  creation  of  a  ERASMUS  MUNDUS  "window"  for  the  ACP  States  (up  to 
EUR 5 million),  support  for  the  trust  fund  of  the  African  Union's  African  Peer 
Review  Mechanism  (up  to  EUR 2 million)  and  support  for  UN-HABITAT's 
participatory programme to upgrade slums in ACP countries (up to EUR 4 million); 

Article 2 – Request for support  

In accordance with Article 13(2) of the Annex IV of the ACP-EC Partnership Agreement, the 
ACP-EC  Council  of  Ministers  invites  the  Commission  to  finance  the  actions  foreseen  in 
Article 1. 

This Decision shall enter into force on the day it is adopted. 

Article 3 – Entry into force 

Done at 

For the ACP-EC Council of Ministers 
The President 

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