Proposal for a Council Decision on the First Instalment of the Third Community Contribution to the European Bank for Reconstruction and Development for the Chernobyl Shelter Fund
Date: 2006-06-15
Institutions: European Commission
Subjects: EBRD, EU aid, Ukraine, environmental protection, nuclear accident, nuclear safety, sensitive area

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 15.6.2006 
COM(2006) 305 final 

2006/0102 (CNS) 

Proposal for a 

COUNCIL DECISION  

on the First Instalment of the Third Community Contribution to the European Bank for 
Reconstruction and Development for the Chernobyl Shelter Fund 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

THE SHELTER IMPLEMENTATION PLAN (SIP) 

The  shelter  enclosing  the  remains  of  Chernobyl  Nuclear  Power  Plant  (ChNPP)  Unit  4  was 
constructed  under  exceedingly  hazardous  conditions  shortly  after  the  accident  on  26  April 
1986. It was not intended to be a permanent solution and, in fact, it is increasingly unstable, it 
has deteriorated and allows the ingress of rainwater. There is a risk of collapse due to seismic 
disturbance,  extreme  weather  or  further  deterioration  of  the  structure.  The  possibility  of 
contamination  of  the  surrounding  zone  and  the  Dnipro  basin  will  persist  until  the  highly 
radioactive material contained under the Shelter is adequately isolated from the environment. 

In 1995, following up on an earlier Tacis funded project, the European Commission took the 
initiative  to  set  up  a  group  of  experts  from  the  EU  and  Ukraine  to  elaborate  and  assess  a 
number of alternative solutions to convert the Chernobyl Unit 4 and its present shelter into an 
environmentally  safe  condition.  The  group  was  joined  in  1996  by  experts  from  the  US  and 
Japan.  The  study  report,  issued  in  November  1996,  proposed  a  Recommended  Course  of 
Action, comprising stabilisation and other short term measures and preparation for long term 
conversion into an environmentally safe site. 

At the beginning of 1997, the G-7 Nuclear Safety Working Group reached an agreement with 
representatives  of  the  Government  of  Ukraine  to  further  develop  the  above  study.  In  May 
1997 an outline plan was finalised, in close co-operation with the international expert group, 
which became known as the Shelter Implementation Plan (SIP). 

The SIP includes a number of tasks to be executed over a period in the order of10 years to 
secure and stabilise the sarcophagus. The major tasks are as follows: 

•  short term stabilisation and shielding; 

•  increase nuclear safety to eliminate risk of criticality through water management; 

•  elaborate delayed Fuel Containing Masses (FCM) removal strategy 

•  build a new confinement shelter; 

•  remove upper unstable parts of the present shelter; 

The  initial  cost  estimate  of  the  project for  the  period  1998-2005  amounted  to  $768  million, 
including a provision of $10 million for the licensing support. 

2. 

THE CHERNOBYL SHELTER FUND (CSF) 

At  the  G7  Denver  Summit  in  June  1997,  the  G7  Heads  of  State  and  Government  and  the 
President  of  the  European  Commission  endorsed  the  setting  up  of  a  multilateral  funding 
mechanism  to  assist  Ukraine  in  implementing  the  SIP.  They  agreed  on  a  G7  financial 
contribution  which  should  be  complemented  by  other  donors.  It  was  also  agreed  that  the 
EBRD  should  be  asked  to  establish  and  manage  a  dedicated  fund  -  the  Chernobyl  Shelter 
Fund (CSF). The CSF was officially set up by the EBRD Board on 6 November 1997. 

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A  first  pledging  conference  was  held  in  New  York  on  20  November  1997.  Twenty  five 
countries  and  the  European  Commission  pledged  some  400  million  USD.  Ukraine  pledged 
USD 50 million as an in-kind contribution. This sum was sufficient to start work on the first 
tasks of the SIP. 

Taking into account the negative outcome  of  an  initiative  by  the CSF Assembly to  set  up a 
Fund Raising campaign from private donors between 1998 and 1999, the EBRD as manager 
of the CSF, warned that a replenishment of the fund was needed by mid 2000 if the original 
schedule was to be  maintained. A second pledging conference was therefore held on 5 July 
2000 in Berlin. Some $320 million were pledged by twenty two countries and the European 
Commission, carrying the total amount pledged in the two conferences close to the estimated 
cost of $768 million (see Annex 1). 

Under  the  rules  of  the  Fund,  the  EBRD  concluded  a  Framework  Agreement  with  the 
government  of  Ukraine  in  November  1997  which  paved  the  way  for  individual  grant 
agreements to be concluded between the Bank and the Recipients. The Bank has developed a 
model  agreement  and  Associated  Standard  Terms  and  Conditions  which  are  used  for  all 
grants from the Fund. Commitments and disbursements of funds from the Fund money occurs 
on the basis of grant agreements. Up to now seven grant agreements have been signed. 

The Assembly of Contributors governs the Fund. It is currently composed by 22 contributors 
including  the  European  Commission  and  Ukraine.  The  Assembly  authorises  the  grant 
agreements,  supervises  their  implementation  by  the  Bank,  reviews  the  effectiveness  of  the 
activities financed and approves the annual budget and financial statements of the Fund. Its 
first  meeting  took  place  on  12  December  1997.  The  Assembly  is  currently  chaired  by  Dr. 
Hans Blix (Sweden). 

The  SIP  represents  a  comprehensive  set  of  measures,  therefore  it  is  essential  that  it  is 
managed  under  a  single  implementation  scheme.  This  is  provided  for  in  the  Shelter  Fund 
rules.  These  rules  contain  provisions  for  the  procurement  of  services  and  of  supplies.  They 
provide  in  particular  that  "EBRD  procurement  policies  and  rules  will  apply  to  grants  made 
from the resources of the Fund, except that in principle procurement shall be limited to goods 
and services produced in or supplied from the countries of the contributors or to the countries 
of EBRD operation". It is therefore necessary that the Commission’s contribution agreement 
with  EBRD  be  based  on  a  common  understanding  that  there  will  be  no  discrimination 
amongst  individual  Member  States  of  the  European  Union.  The  participation  of  third 
countries in procurement may be authorized on a case by case basis. 

3. 

THE COMMUNITY CONTRIBUTIONS TO THE CSF 

The first pledge to the Chernobyl Shelter Fund made by the European Commission in 1997 
(US$ 100 million) was formally followed up by the "Council Decision 98/381/EC of 5 June 
1998 concerning the Community contribution to the European Bank for Reconstruction and 
Development  for  the  Chernobyl  Shelter  Fund"1.  This  contribution  was  effectively  funded 
from  the  1998  and  1999  Community  budgets.  The  second  Commission  contribution  (€100 
million) was formalized by the Council Decision 2001/824/EC. 

1 

OJ L 171, 17.6.1998, p.31. 

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The  Commission  presented  a  first  progress  report  on  the  implementation  of  the  CSF  in 
October 19992, as foreseen in Article 3(2) Decision 98/381/EC. A second progress report was 
presented in 20013 and a third in 20044. 

The Chernobyl Shelter Fund provides a very important tool to assist Ukraine in resolving the 
problems resulting from the Chernobyl accident. Taking into account that the Community is 
by far the largest donor to the CSF, its continued participation is essential to the success of the 
project.  This  is  recognized  in  the  Tacis  Regulation  covering  the  period  2000-2006,  which 
mentions  explicitly  the  "relevant  EU  supported  international  initiatives  such  as  the  G7/EU 
initiative on the closure of Chernobyl" as a priority action5.  

On  the  basis  of  the  financial  overview  presented  here  below  the  EBRD  indicated  that  a 
replenishment  of  the  fund,  i.e.  new  commitments  by  the  Contributors,  were  required  before 
they would be able to conclude a contract for the New Safe Confinement (due to take place in 
2006).  In  order  that  the  Chernobyl  projects  might  continue  and  brought  to  a  successful 
completion, the major donors pledged some €173 million at an event in London in May 2005. 
This  figure  includes  €49.1  million  pledged  by  the  Commission  (corresponding  to  the 
historical  burden  sharing  amongst  the  ex  G7  members  plus  the  EC),  subject  to  the  required 
authorizations. The Commission’s pledge is intended to be paid over the period 2006-2009.  

The objective of the present proposal is to solicit a Council decision for the first instalment of 
the third Community contribution amounting to €14.4 million. The proposed new contribution 
will  be  subjected  to  the  same  conditions  stated  in  Articles  1  and  3  of  Council  Decision 
98/381/EC of 5 June 1998, as applicable. The balance of the pledge (€34.7 million), to be paid 
over the period 2007-2009, will be subjected to a new decision. 

The contribution will be made according to Article II, Section 2.02 of the Rules of the Fund 
and  will  be  the  subject  of  a  formal  Contribution  Agreement  between  the  European 
Commission and the European Bank for Reconstruction and Development.  

4. 

CURRENT FINANCIAL SITUATION OF THE CSF 

As of 31 October 2005, the financial situation of the fund was as follows: 

•  total contributions to the CSF amount to some €658.6 million including Ukraine’s in-kind 

contributions of $50 million; 

•  grant agreements concluded between the donors and the EBRD amounted to about €446.5 

million;  

•  amounts contracted represented € 323.4 million;  

•  disbursements amounted to € 248.5 million.  

2 
3 
4 
5 

COM(1999)470 of 12.10.1999  
COM(2001)251 of 29.05.2001 
COM(2004)481 of 14.07.2004 
Council Regulation 99/2000, 29.12.1999, article 2,§5(c) 

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In  the  financial  overview  provided  in  the  Third  Progress  Report  it  was  explained  that, 
following cost estimates based on actual design work, the cost of the project had to be revised. 
The  estimate  presented  by  the  EBRD  in  mid  2004  was  $1,091  million6  (instead  of  $768 
million  foreseen  originally);  the  completion  date  was  foreseen  for  end  of  2008  (instead  of 
2007).  There  were  two  fundamental  differences  between  the  1997  and  the  2004  estimates. 
First, the scope of the initial estimate did not include tasks that have been subsequently found 
necessary, like removal of the Vent Stack, Interim Radwaste Storage, the Owner Engineer and 
Deconstruction  Building  and  Equipment,  which  raised  the  cost  to  $876.82  million.  In 
addition, the initial estimate did not include provisions for escalation and risk and contingency 
for the New Safety Confinement, which represent an additional $214.2 million.  

At  the  CSF  Assembly  of  Contributors  on  22  November  2005  the  EBRD  indicated  that  the 
bids for the New Safe Confinement, just received, had exceeded considerably the estimated 
price, therefore additional funds might be required beyond those already pledged at the three 
events. However the extent of the shortfall, if any, would not be known until the evaluation of 
the bid was completed. 

Pledges to the CSF 

Contributor  

Contribution 
Before July 2000 

Austria 
Belgium 
Canada 
Denmark  
EC 
Finland 
France 
Germany  
Greece 
Iceland 
Ireland 
Italy 
Kuwait  
Luxemburg 
Japan 
Netherlands 
Norway 
Poland  

Portugal 

Ccy 
€ 
€ 
US $ 
€ 
US $ 
€ 
€ 
US $ 
€ 
US $ 
€ 
US $ 
US $ 
€ 
US $ 
NLG 
US $ 
€ 

US $ 

Contribution 
2.500.000 
2.500.000 
20.000.000 
2.500.000 
100.000.000 
2.500.000 
18.520.000 
23.610.000 
2.500.000 
10.000 
2.515.790 
16.820.000 
4.000.000 
2.500.000 
22.500.000 
6.000.000 
5.000.000 
2.500.000 

Ccy 
€ 
€ 
US $ 
€ 
€ 
€ 
€ 
US $ 
€ 
US $ 
€ 
€ 
US $ 

US $ 
€ 
NKR 

200.000 

US $ 

Berlin 2000 Pledging 
Conference 

Contribution (1 € = 0.95 $) 
2.500.000 
600.000 
13.000.000 
2.500.000 
100.000.000 
1.000.000 
23.250.000 
25.610.000 
2.500.000 
15.000 
3.085.000 
17.820.000 
2.000.000 
0 
22.500.000 
3.000.000 
20.000.000 
additional bilateral pledge of 
€3.000.000 announced 
200.000 

6 

Figure presented at the CSF Assembly of Contributors on 22 June 2004. The EBRD indicated that at the 
exchange rate at the time (€1=$1.23) the shortfall was equivalent to €245 million.  

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Slovak Rep.  
Slovenia 
Spain 
Sweden 
Switzerland 
Ukraine 
UK 
USA 

Subtotal 
1€=0.95$ 
Total 

€ 
- 
US $ 
€ 
€ 
US $ 
US $ 
US $ 
US $ 
EUR 
US $ 
EUR 

2.000.000 
- 
3.000.000 
2.500.000 
4.000.000 
50.000.000 
16.820.000 
78.000.000 
~ 395.000.000 
~ 415.789.000 

US $ 
US $ 
SEK 
SFR 

US $ 
US $ 

0 
300.000 
2.000.000 
24.000.000 
7.000.000 
0 
18.320.000 
80.000.000 
 ~ 321.767.250 
~ 338.702.368 
~ 716.767.250 
~ 754.491.368 

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2006/0102 (CNS) 

Proposal for a 

COUNCIL DECISION  

on the First Instalment of the Third Community Contribution to the European Bank for 
Reconstruction and Development for the Chernobyl Shelter Fund 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 203 thereof, 

Having regard to the proposal from the Commission,7 

Having regard to the opinion of the European Parliament,8 

Whereas: 

(1) 

(2) 

(3) 

(4) 

7 
8 
9 
10 
11 

The Community, in pursuance of a clear policy of supporting Ukraine in its efforts to 
eliminate the consequences of the nuclear accident which occurred on 26 April1986 at 
the Chernobyl Nuclear Power Plant, has already contributed to the Chernobyl Shelter 
Fund  (CSF),  established  at  the  European  Bank  for  Reconstruction  and  Development 
(EBRD)  90.5  million  euro  over  the  years  1999-2000,  in  accordance  with  Council 
Decision  98/381/EC,  Euratom.9  and  a  further  100  million  euro  over  the  years  2001-
2005, in accordance with the Council Decision 2001/824/EC, Euratom10 

The  EBRD,  as  administrator  of  the  Chernobyl  Shelter  Fund,  confirmed  to  the  CSF 
Assembly of Contributors that there was roughly a shortfall of €250 million and that 
there were not sufficient unallocated funds to allow contract award for the New Safe 
Confinement. New commitments were required from the Contributors in 2005 to avoid 
further delays to the project. 

The ex G7 Members and the EC, which have provided most of the contributions to the 
CSF,  agreed  on  the  principle  of  further  contributions  into  the  Fund  according  to  the 
historical burden sharing amongst the contributors. 

Council Regulation (EC, Euratom) No 99/2000 of 29 December 1999 concerning the 
provision  of  assistance  to  partner  States  in  Eastern  Europe  and  Central  Asia11,  in 

OJ C  
OJ C 
OJ L 171 of 17.6.1998, p. 31 
OJ L308 of 27.11.2001, p. 25 
OJ L 12 of 18.1.2000, p. 1 

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Article 2(5)(c), includes as a priority in the area of nuclear safety the contribution "to 
relevant  EU  supported  international  initiatives  such  as  the  G7/EU  initiative  on  the 
closure of Chernobyl". 

In the Communication of 6 September 2000 from the Commission to the Council and 
the  European  Parliament,  the  Commission  proposed  that  from  2001  Community 
financial support for nuclear safety in the Newly Independent States and the countries 
of Central and Eastern Europe12 should be taken from a single budget line for financial 
assistance to nuclear safety for the NIS.  

EBRD  procurement  rules  apply  to  grants  made  from  the  resources  of  the  Chernobyl 
Shelter  Fund,  on  the  understanding  that  procurement  shall  in  principle  be  limited  to 
goods and services  produced in or supplied from the countries of the contributors or 
the  countries  of  EBRD  operations.  Those  rules  are  not  identical  to  those  applied  to 
operations directly financed through the Tacis programme, which cannot consequently 
cover the contribution which is the subject of this Decision. 

It  is,  however,  appropriate  to  ensure  that,  with  regard  to  procurement  arrangements 
made  pursuant  to  the  EBRD’s  Rules  of  the  Chernobyl  Shelter  Fund,  there  is  no 
discrimination  between  individual  Member  States  of  the  European  Community, 
irrespective of whether they have concluded individual Contribution Agreements with 
the EBRD or not. 

It  is  also  appropriate  that  procurement  arrangements  with  countries  not  belonging  to 
the European Union or that are not TACIS partner countries be authorized, on a case 
by  case  basis,  in  the  interest  of  the  projects  concerning  the  Chernobyl  Shelter 
Implementation Plan. 

(5) 

(6) 

(7) 

(8) 

(9) 

The Treaties do not provide, for the adoption of this Decision, powers other than those 
of Article 308 of the EC Treaty and Article 203 of the Euratom Treaty, 

HAS DECIDED AS FOLLOWS:  

Article 1 

The  Community  shall  make  a  contribution  of  €14.4  million  euro  to  the  European  Bank  for 
Reconstruction and Development (“EBRD”) for the Chernobyl Shelter Fund in 2006. 

The  appropriations  shall  be  authorised  by  the  budgetary  authority  within  the  limits  of  the 
financial perspective. 

Article 2 

1. 

The Commission shall administer the contribution to the Chernobyl Shelter Fund in 
accordance  with  the  Financial  Regulation  applicable  to  the  general  budget  of  the 
European  Communities,  having  particular  regard  to  the  principles  of  sound  and 
efficient management. 

12 

COM(2000) 493 final 

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The Commission shall forward all relevant information to the Court of Auditors and 
shall  request  from  the  EBRD  any  supplementary  information  that  the  Court  of 
Auditors  may  wish  to  receive,  as  regards  the  aspects  of  the  operation  of  the 
Chernobyl Shelter Fund that relate to the Community's contribution. 

2. 

The Commission shall ensure that, with respect to procurement arrangements relating 
to  grants  made  from  the  resources  of  the  Fund,  there  is  no  discrimination  between 
Member States. 

Article 3 

In accordance  with  Article II,  Section 2.02  of the  Rules  of  the  Chernobyl  Shelter  Fund,  the 
Community contribution shall be the subject of a formal Contribution Agreement between the 
Commission and the European Bank for Reconstruction and Development.  

Article 4 

The  Commission  shall  present  to  the  European  Parliament  and  to  the  Council,  on  a  yearly 
basis, a progress report on the implementation of the Chernobyl Shelter Fund. 

Done at Brussels,  

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL : 

Proposal for a Council Decision on the First Instalment of the Third Community Contribution 
to the European Bank for Reconstruction and Development for the Chernobyl Shelter Fund 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

Relations  with  Eastern  Europe,  the  Caucasus  and  central  Asian  Republics  (Chapter 
19.06). 

Community contribution to the European Bank for Reconstruction and Development 
for the Chernobyl Shelter Fund. 

3. 

BUDGET LINES 

3.1. 

Budget lines including headings:  

The  action  will  be  financed  from  the  existing  budget  line  19  06  06 — Community 
Contribution  to  the  European  Bank  for  Reconstruction  and  Development  for  the 
Chernobyl Shelter Fund 

3.2. 

Duration of the action and of the financial impact: 

Allocations will be made in 2006. Their renewal is not foreseen. 

The  balance  of  the  pledge  (€34.7  million),  to  be  paid  during  2007-2009,  will  be 
subjected to a new decision. 

3.3. 

Budgetary characteristics: 

Budget 
line 

Type of 
expenditure 

New 

EFTA 

contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

19.06.06 

Non-
comp 

Diff13
/ 

NO 

NO 

NO 

No  

13 

Differentiated appropriations 

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4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure type 

Section 
no. 

2006 

2007 

2008 

2009 

2010 

2011 

Total 

Operational expenditure14 

Commitment 
Appropriations (CA) 

Payment  Appropriations 
(PA) 

8.1 

a 

14.400

b 

14.400

Administrative expenditure within reference amount15 

Technical & 
administrative assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

a+c  14.400 

b+c 

14.400

Administrative expenditure not included in reference amount16 

14.400 

14.400 

14.400 

14.400 

Human resources and 
associated expenditure 
(NDA) 

Administrative costs, other 
than human resources and 
associated costs, not 
included in reference amount 
(NDA) 

8.2.5 

d 

PM 

8.2.6 

e 

0.002 

0.002 

Total indicative financial cost of intervention 

TOTAL CA including 
cost of Human 
Resources 

TOTAL PA including 
cost of Human 
Resources 

a+c
+d+
e 

b+c
+d+
e 

14.402

14.402

14.402 

14.402 

14 
15 
16 

Expenditure that does not fall under Chapter 19 01 of the Title 19 concerned. 
Expenditure within article 19 01 04 of Title 19. 
Expenditure within chapter 19 01 other than articles 19 01 04 or 19 01 05. 

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Co-financing details 

Not applicable 

4.1.2.  Compatibility with Financial Programming 

(cid:59) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 

(cid:133) 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 

(cid:133) 
Agreement17 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:59) 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see detail 
under point 8.2.1. 

Annual requirements 

2006 

2007 

2008 

Total number of 
human resources 

0.6 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Needs to be met in the short or long term 

In  1996  an  international  group  of  experts,  including  experts  from  the  EU,  US  and 
Ukraine, elaborated a study of alternative solutions to convert the Chernobyl Unit 4 
and  its  present  shelter  into  an  environmentally  safe  condition.  The  study  report 
proposed a Recommended Course of Action, comprising stabilisation and other short 
term measures and preparation for conversion into an environmentally safe site. 

The  G-7  Nuclear  Safety  Working  Group  reached  an  agreement  at  the  beginning  of 
1997 with representatives of the Government of Ukraine to proceed with the further 
development  of  the  Recommended  Approach.  As  a  result,  a  multidisciplinary 
construction  management  program  was  finalized,  designated  as  the  Shelter 
Implementation  Plan  (SIP),  developed  in  close  co-operation  with  EU,  US  and 
Ukrainian  experts.  The  SIP  foresaw  to  carry  out  remedial  work  on  the  Shelter 
directed  towards  making  it  physically  safe  and  environmentally  stable.  Under  the 
management  of  the  European  Bank  for  Reconstruction  and  Development  (EBRD), 
the Chernobyl Shelter Fund (CSF) was constituted, to finance the SIP. 

17 

See points 19 and 24 of the Interinstitutional agreement. 

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The  total  cost  of  the  Chernobyl  Shelter  Fund  project  was  initially  evaluated  by  the 
group of experts that developed the project, it amounted to approximately US $768 
million  for  the  period  1998-2005,  including  the  licensing  support.  Further  to  new 
cost estimates based on actual design and engineering work, the EBRD indicated a 
revised cost of $1,091 million. The proposed new Community contribution of €14.4 
million represents the first instalment of the Commission pledge of €49.1 million to 
cover the roughly €250 million shortfall to complete the project18. 

The SIP has been financed under the budget line 19 06 06 (Community contribution 
to the European Bank for Reconstruction and Development for the Chernobyl Shelter 
Fund). The present contribution represents a complement to finance additional costs 
to complete the project, which were justified by the EBRD to the Donors Assembly. 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with  other 
financial instruments and possible synergy 

The Chernobyl Shelter Fund provides an important tool to assist Ukraine in resolving 
a major safety hazard for itself and for Europe. The corner stone of this work being 
to  transform  the  damaged  Chernobyl  Nuclear  Power  Plant  in  an  ecologically  safe 
environment.  Being  the  Community  by  far  the  largest  donor,  its  continued 
participation is decisive to the success of the project 

5.3. 

Objectives, expected results and  related indicators of the  proposal in the  context of 
the ABM framework 

The Shelter Implementation Plan includes the following major technical steps to be 
implemented over the period up to 2010/2011 

•  The  stabilisation  of  the  present  shelter  to  the  extent  required  for  the  subsequent 

steps; 

•  shielding for radiation protection purposes; 

•  increase nuclear safety to eliminate risk of criticality through water management; 

•  building of a new confinement; 

•  removal of upper unstable parts of present shelter; 

•  analysis  of  Fuel  Containing  Masses  (FCM)  and  elaboration  of  FCM  removal 

strategy. 

The  total  cost  of  the  operation  is  estimated  to  be  $1,091  million  USD  including 
licensing  work.  The  content  of  the  SIP  was  explained  in  detail  to  the  Phare/Tacis 
Nuclear  Safety  Expert  Group  on  27  May  1997  with  a  follow  up  on  20  December 
2000.  An  update  on  the  revised  cost  and  schedule  was  provided  to  the  Phare/Tacis 
Nuclear Safety Expert Group (PTEG) on 28 April, 2004. Details of the revised cost 
and  schedule  were  also  presented  to  the  COEST  Group  of  the  Council  on  20 
September 2004. 

18 

This figure may need to be revised again if the there is a substantial difference between the estimated 
cost and bid price for the New safe Confinement that is not covered by the contingency. 

EN 

13 

   EN 

 
                                                 
Although Ukraine is the target beneficiary, the benefits of nuclear safety are global 
and provide added environmental security for the European Union Member States. 

5.4. 

Method of Implementation (indicative) 

(cid:59) 

Joint management with international organisations  

Relevant comments: 

The SIP is financed by the Chernobyl Shelter Fund which is managed by the EBRD. 
The  Bank  reports  to  the  Donors  Assembly,  where  the  Commission  is  represented. 
The Assembly approves the grants for the financing of specific projects. 

6. 

MONITORING AND EVALUATION 

The  Assembly  of  Contributors  monitors  and  oversees  the  actions  undertaken  in  the 
SIP. A periodic report (at least twice a year) is provided to the donors by the EBRD 
as administrator of the Fund.  

According  to  Art.  3(2)  of  the  Council  Decision  98/381/EC,  the  Commission 
presented  a  first  progress  report  on  the  implementation  of  the  Chernobyl  Shelter 
Fund  in  October  199919,a  second  report  was  presented  in  September  200120  and  a 
third report in July 200421. 

Article  4  of  the  present  decision  foresees  that  the  Commission  shall  present  to  the 
European Parliament and to the Council, on a yearly basis, a progress report on the 
implementation of the Chernobyl Shelter Fund. 

7. 

ANTI-FRAUD MEASURES  

Periodic reporting on the project progress and finances is made by the EBRD to the 
Donors  Assembly,  of  which  the  European  Commission  is  a  member.  Audit  by  the 
Court of Auditors is possible as provided by the exchange of letters with the EBRD. 

19 
20 
21 

COM(1999)470 of 12.10.1999 
COM(2001)251 of 29.05.2001 
COM(2004) 481 final of 14.7.2004 

EN 

14 

   EN 

 
                                                 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

2006 

2007 

2008 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

14.400 

14.400 

(Headings of 
Objectives, actions 
and outputs should be 
provided) 

3rd Community 
Contribution to 
EBRD for 
Chernobyl Shelter 
Fund (first 
instalment) 

TOTAL COST 

14.400 

14.400 

8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

Types of 
post 

Staff to be assigned to management of the action using existing 
and/or additional resources (number of posts/FTEs) 

2007 

2008 

A*/AD 

B*, 
C*/AST 

Officials or 
temporary 
staff22 (19 
01 01) 

TOTAL 

2006 

0.25 

0.25 
0.10 

0.60 

Actual  mobilization  of  the  necessary  administrative  resources  will  depend  on  the 
Commission’s annual decision on the allocation of resources, taking into account the 
number of staff and additional amounts authorized by the budgetary authority. 

8.2.2.  Description of tasks deriving from the action 

– 

– 

– 

Administrative follow up. 

Attendance of meetings. 

Preparation of reports. 

22 

Cost of which is NOT covered by the reference amount 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.3.  Sources of human resources (statutory) 

(cid:59) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (19  01  04/05  – 

Expenditure on administrative management) 

Not applicable 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

EUR million (to 3 decimal places) 

Type of human resources 

2006 

2007 

2008 

Officials and temporary staff (19 01 01) 

Staff  financed  by  Art  19  01  02  (auxiliary,  END, 
contract staff, etc.) 

Total cost of Human Resources and associated 
costs (NOT in reference amount) 

PM 

0 

PM 

The needs for human resources shall be covered within the allocation granted to the 
managing DG in the framework of the annual allocation procedure (see 8.2.1) 

8.2.6.  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

19 01 02 11 01 – Missions 

0.002 

0.002 

2006 

2007 

2008 

TOTAL 

19 01 02 11 02 – Meetings & Conferences 

19 01 02 11 03 – Committees  

19 01 02 11 04 – Studies & consultations 

19 01 02 11 05 - Information systems 

2  Total  Other  Management  Expenditure 

(19 01 02 11) 

3  Other  expenditure  of  an  administrative 

nature  

0.002 

0.002 

Total Administrative expenditure, other than 
human resources and associated costs (NOT 
included in reference amount) 

0.002 

0.002 

EN 

16 

   EN