Proposal for a Council Regulation on the implementation of the 10th European Development Fund
Date: 2006-10-27
Institutions: European Commission
Subjects: ACP countries, EU financing, European Development Fund, cooperation policy, development aid, operation of the Institutions, overseas countries and territories

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.10.2006 
COM(2006) 650 final 

Proposal for a 

COUNCIL REGULATION 

On the implementation of the 10th European Development Fund 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The European Council of 15 & 16 December 2005 decided that geographic cooperation with 
the African, Caribbean and Pacific (ACP) States should continue to be funded from the inter-
the  period  2008-2013.  The 
governmental  European  Development  Fund  (EDF)  for 
Representatives of the Member States, meeting within the Council, confirmed that the amount 
of  €22  682  million  earmarked  for  this  purpose  also  included  the  cooperation  with  the 
Overseas Countries and Territories (OCT) to which Part Four of the EC Treaty applies and the 
support expenditures directly linked to the implementation of the EDF. 

The ACP-EC Council of Ministers, meeting in Port Moresby on 2 June 2006 decided on the 
multi-annual  financial  framework  2008-2013  for  the  cooperation  under  the  ACP-EC 
Partnership Agreement signed in Cotonou on 23 June 2000 and revised in Luxembourg on 25 
June  2005.  The  General  Affairs  and  External  Relations  Council  of  17  July  2006  signed  the 
Internal  Agreement  on  the  financing  of  Community  Aid  under  the  multi-annual  financial 
framework  2008-2013  and  on  the  allocation  of  financial  assistance  for  the  OCT.  The 
Commission is preparing a proposal to amend accordingly Council Decision 2001/822/EC of 
27.11.2001 on the association of the OCT with the EC. 

Through the Internal Agreement signed on 17 July 2006, a 10th EDF has been set up, covering 
geographic  cooperation  with  the  ACP  and  the  OCT  for  the  period  2008-2013.  The  Internal 
Agreement  further  defines  the  various  financial  envelopes  of  the  10th  EDF  and  the 
contribution  key  for  the  Member  States,  sets  up  a  Committee  of  Representatives  of  the 
Member  States  at  the  Commission  (EDF  Committee)  and  a  similar  Committee  at  the 
European Investment Bank (EIB) for the management of the Investment Facility funded from 
the EDF (IF Committee), determining the voting weight and qualified majority rule therein.  

The Internal Agreement also provides for the adoption by the Council, acting unanimously, of 
an  implementing  regulation  for  the  10th  EDF,  and  the  adoption  by  the  Council,  acting  by 
qualified majority, of a financial regulation for the 10th EDF, both based on a proposal from 
the  Commission  and  after  consulting  the  EIB  and,  for  the  financial  regulation,  the  Court  of 
Auditors. 

Regarding  the  implementing  regulation,  the  Internal  Agreement  states  that  it  shall  contain 
appropriate  modifications  and  improvements  to  the  programming  and  decision-making 
procedures compared to the 9th EDF, as well as harmonise Community and EDF procedures 
as  far  as  possible,  including  on  co-financing  aspects,  and  establish  particular  management 
procedures for the Peace Facility. 

The  Commission  is  preparing  a  proposal  for  a  10th  EDF  financial  regulation  which  will  be 
submitted  to  the  Council  in  the  coming  months.  The  present  proposal  for  a  10th  EDF 
implementing  regulation  covers  the  programming  and  decision-making  procedures  which 
under the 9th EDF were included in the Internal Agreement. By addressing these issues now, 
through  a  separate  regulation  which  does  not  require  ratification,  further  delays  in  the 
launching  of  the  ratification  process  of  the  Internal  Agreement  could  be  avoided,  while 
enabling the Commission to submit a proposal on implementing rules that is more in line with 
the procedures proposed under the cooperation funded by the Community budget. 

The  present  proposal  reflects  as  far  as  possible  the  common  position  of  the  Council  on  the 
adoption  of  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  a 

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financing  instrument  for  development  cooperation  (DCI)  which  was  adopted  on  23  October 
2006. The major changes and improvements compared to the 9th EDF are the following: 

•  An enhanced focus by the EDF management committee on strategic issues and monitoring. 
The major change in this field is the replacement of the practice of submitting individual 
financing  proposals  to  the  EDF  committee  for  an  opinion  by  the  submission  of  annual 
action  programmes  for  an  opinion.  These  action  programmes  will  specify  the  objectives 
pursued,  the  fields  of  intervention,  the  expected  results,  the  management  procedures  and 
total amount of financing planned, as well as a description of the operations to be financed 
and  an  indication  of  the  amounts  and  implementation  timetable  for  each  operation.  This 
approach  allows  a  more  coherent  approach  to implementation with a constant interaction 
between  the  initial  multi-annual  strategy  paper  and  its  translation  into  annual  response 
strategies. It also leads to a more programmatic approach to implementation and therefore 
to a smoother and leaner implementation cycle. 

•  Strategy papers, aid allocations and indicative programmes and any modification to these 
as  a  result  of  periodic  or  ad  hoc  reviews  remain  subject  to  the  prior  opinion  of  the  EDF 
Committee, as is the case for all special measures exceeding EUR 10 million.  

•  The EDF Committee will receive for information and discussion the aid allocation criteria, 
the  special  measures  not  exceeding  EUR  10  million  and  the  various  monitoring  and 
evaluation reports. Annual reports and a performance review undertaken on the basis of a 
proposal  provided  by  the  Commission  in  2010  will  be  submitted  to  the  Council.  Any 
decision  to  release  part  or  all  of  the  funds  decommitted  after  31.12.2007  from  previous 
EDFs will be taken by the Council, acting unanimously, on this basis.  

•  The establishment of a framework for co-financing which will be further elaborated in the 

financial regulation. 

•  Special management procedures for the Peace Facility. 

•  Increased  possibilities  for  regional  cooperation,  including  between  the  ACP  and  the 
Community’s outermost regions, by identifying common priorities and specific resources 
and by enhancing the coordination of the selection of common interest projects, including 
through the mobilisation of technical assistance as well as through programme monitoring 
committees involving the various stakeholders. 

•  An  emphasis  on  the  principle  of  coordination  with  Member  States  and  other  donors  and 
stakeholders  and  on  the  principle  of  subsidiarity  and  complementarity  between  thematic 
programmes  and  geographic  cooperation,  whereby  support  funded  from  the  Community 
budget (e.g. sugar protocol countries and thematic programmes) will, where applicable, be 
integrated in the geographic strategy papers.  

•  The introduction of a programmed approach to intra-ACP funding. 

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Proposal for a 

COUNCIL REGULATION 

On the implementation of the 10th European Development Fund 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

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 (Benin) 
on  23  June  20001  as  revised  by  Agreement  of  25  June  2005  signed  in  Luxembourg2 
(hereinafter referred to as the ‘ACP-EC Agreement’), 

Having regard to the Internal Agreement between Representatives of the Governments of the 
Member  States,  meeting  within  the  Council,  on  the  financing  of  Community  aid  under  the 
multi-annual financial framework for the period 2008 to 2013 in accordance with the ACP-EC 
Agreement  and  on  the  allocation  of  financial  assistance  for  the  Overseas  Countries  and 
Territories to which Part Four of the EC Treaty applies (hereinafter referred to as the ‘Internal 
Agreement’) adopted by the Council on 17 July 2006 and in particular Article 10(1) thereof3, 

Having regard to the proposal from the Commission4, 

Having regard to the opinion of the European Investment Bank5, 

Whereas: 

(1) 

(2) 

Decision No 1/2006 of the ACP-EC Council of Ministers of 2 June 2006 specifies the 
multi-annual financial framework for the period 2008 to 2013 and inserts a new Annex 
Ib in the ACP-EC Agreement6.  

The Internal Agreement defines the various financial envelopes of the 10th European 
Development Fund (hereinafter referred to as the ‘EDF’), the contribution key and the 
contributions to the 10th EDF, sets up a Committee of Representatives of the Member 
States  at  the  Commission  (hereinafter  referred  to  as  the  ‘EDF  Committee’)  and  the 
Investment Facility Committee at the European Investment Bank (hereinafter referred 
to  as  the  ‘IF  Committee’),  and  determines  the  voting  weight  and  qualified  majority 
rule therein. 

1 
2 
3 
4 
5 
6 

OJ L 317, 15.12.2000, p. 3. 
OJ L 209, 11.8.2005, p. 27. 
OJ L 247, 9.9.2006, p. 32. 
[...] 
[...] 
OJ L 247, 9.9.2006, p. 22. 

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(3) 

The  Internal  Agreement  sets  the  aggregate  amount  of  Community  aid  to  the  ACP 
States  (excluding  the  Republic  of  South  Africa)  and  to  the  Overseas  Countries  and 
Territories (hereinafter referred to as the ‘OCT’) for the six-year period 2008-2013 at 
EUR 22 682 million  from  the  10th  EDF  contributed  by  Member  States.  From  the 
amount of the 10th EDF set by the Internal Agreement, EUR 21 966 million shall be 
allocated to the ACP States as specified in the multi-annual financial framework 2008-
2013  referred  to  in  Annex  Ib  to  the  ACP-EC  Agreement,  EUR  286  million  shall  be 
allocated to the OCT and EUR 430 million shall be allocated to the Commission for 
support  expenditures  linked  to  programming  and  implementation  of  the  EDF  by  the 
Commission. 

(4)  Measures  covered  by,  and  eligible  for  funding  under  Council  Regulation  (EC) 
No 1257/96 of 20 June 1996 concerning humanitarian aid7, should only in exceptional 
circumstances  be  financed  under  the  10th  EDF,  where  such  assistance  is  required  to 
ensure continuity of cooperation from crisis to stable conditions for development and 
cannot be financed from the Community’s budget.  

(5)  Measures covered by, and eligible for funding under Regulation (EC) No […] of the 
European Parliament and of the Council of […] establishing an instrument for stability 
should  only  be  funded  under  the  EDF  where  there  is  a  need  to  ensure  continuity  of 
cooperation  from  crisis  to  stable  conditions  for  development.  On  11  April  2006,  the 
Council  adopted  the  principle  to  fund  the  African  Peace  Facility  from  the  10th  EDF 
for an amount of up to EUR 300 million covering the initial period 2008-2010.  

(6) 

(7) 

(8) 

The  ACP  Sugar  protocol  countries  affected  by  the  Community  sugar  reform  shall 
benefit from accompanying measures funded through Regulation (EC) No […] of the 
European Parliament and of the Council of […] establishing a financing instrument for 
development  cooperation  (DCI)8.  The  ACP  will  also  access  Community  assistance 
from thematic programmes provided by the DCI and by Regulation (EC) No […] of 
the European Parliament and of the Council of […] establishing a financing instrument 
for the promotion of democracy and human rights9. Those thematic programmes shall 
add  value  to,  be  consistent  with  and  subsidiary  and  additional  to  the  geographic 
programmes funded under the EDF. 

The  ACP-EC  Agreement,  in  its  Article  28,  stresses  the  importance  of  regional 
cooperation among the ACP, the OCTs and the Community’s outermost regions.  

Council Decision 2005/446/EC of 30 May 200510 sets at 31 December 2007 the date 
beyond  which  the  funds  of  the  9th  EDF  managed  by  the  Commission,  the  interest 
subsidies  managed  by  the  European  Investment  Bank  (hereinafter  referred  to  as  ‘the 
EIB’)  and  the  revenue  accruing  from  the  interest  on  these  appropriations  shall  no 
longer be committed. This date could be reviewed if necessary.  

(9) 

In  order  to  implement  the  EDF,  the  procedure  for  programming,  examining  and 
approving aid should be decided and the detailed rules for supervising the use of aid 

7 

8 
9 
10 

OJ L 163, 2.7.1996, p. 1. Regulation as amended by Regulation (EC) No 1882/2003 of the European 
Parlament and of the Council (OJ L 284, 31.10.2003, p. 1). 
OJ L , , p. . 
OJ L , , p. . 
OJ L 156, 18.6.2005, p. 19. 

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should be laid down. On 17 July 2006 the representatives of the Governments of the 
Member  States  meeting  within  the  Council  adopted  a  decision  on  the  provisional 
application  of  the  Internal  Agreement  on  the  financing  of  Community  aid  under  the 
multiannual financial framework for  the period 2008 to 2013 in accordance with the 
ACP-EC Agreement and on the allocation of financial assistance for the OCT to which 
Part  Four  of  the  EC  Treaty  applies11,  for  the  purpose  of  the  adoption  of  the 
Implementation  Regulation  and  the  Financial  Regulation  and,  inter  alia,  for  the 
purposes of establishing the EDF Committee and the IF Committee.  

(10)  The  Council  of  24  November  2004  adopted  conclusions  on  the  effectiveness  of  EU 
external  actions,  including  further  strengthening  complementarity  and  coordination 
between Community and Member States' development cooperation. On 24 May 2005 
the  Council  committed  itself  to  timely  implementation  and  monitoring  of  the  Paris 
Declaration on Aid Effectiveness and of the EU specific commitments adopted at the 
Paris Forum of 28 February – 2 March 2005. The Council of 11 April 2006 adopted 
conclusions  on  a  joint  programming  framework  for  the  EU  and  other  interested 
donors. 

(11)  On 22 December 2005, the Council and the representatives of the Governments of the 
Member  States  meeting  within  the  Council,  the  European  Parliament  and  the 
Commission adopted a Joint Statement on a European Union Development Policy12. 

HAS ADOPTED THIS REGULATION: 

TITLE I  

PROGRAMMING  

Article 1 

General framework for programming 

1. 

2. 

Programming for geographic cooperation with the ACP countries and regions in the 
context of the 10th EDF shall be founded on the basic principles and values reflected 
in  the  general  provisions  of  the  ACP-EC  Agreement  and  on  the  development 
objectives and cooperation strategies set out in Title XX of the Treaty and in Article 
178  therein,  in  the  ACP-EC  Agreement  and  in  the  European  Union  Development 
Policy Statement of 22 December 2005. 

The  process  of  programming  for  assistance  to  the  ACP  countries  and  regions 
managed by the Commission under the ACP-EC Agreement shall be undertaken in 
accordance with Articles 1 to 14 of Annex IV to that Agreement.  

3. 

Programming for this purpose shall mean, inter alia:  

11 
12 

OJ L 247, 9.9.2006, p. 30. 
OJ C 46, 24.2.2006, p. 1. 

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(a) 

(b) 

(c) 

(d) 

the  preparation  and  development  of  Country  Support  Strategies  and  Regional 
Support  Strategies  based  on  the  country's  or  region's  own  medium-term 
development objectives and strategies;  

a  clear  indication  from  the  Community  of  the  indicative  programmable 
financial  allocation  from  which  the  countries  and  regions  may  benefit  during 
the six-year period of the 10th EDF;  

the  preparation  and  adoption  of  a  multi-annual  indicative  programme  for 
implementing the country and regional support strategies;  

a  review  process  covering  the  country  and  regional  support  strategies,  the 
multi-annual  indicative  programmes  and  the  volume  of  resources  allocated  to 
them. 

In addition to country and regional support strategies, an Intra-ACP Support Strategy 
and  related  multi-annual  indicative  programme  shall  be  prepared  and  developed, 
based  on  criteria  set  out  for  an  intra-ACP  policy  framework  compliant  with  the 
principles of complementarity, subsidiarity and geographic scope inherent in Article 
12 of Annex IV to the ACP-EC Agreement.  

In the exceptional circumstances referred to in Article 3(4) and Article 4(5) of Annex 
IV to the ACP-EC Agreement, when countries cannot access normal programmable 
funds  and/or  the  national  authorising  officer  is  prevented  from  carrying  out  his/her 
duty, the Community shall make specific provisions as referred to in Article 3(7) of 
this regulation.  

Article 2  

Resource allocation 

At the beginning of the programming processes the Commission shall, on the basis 
of the needs and performance criteria identified in Articles 3, 9 and 12 of Annex IV 
to the ACP-EC Agreement, determine the multi-annual indicative fund allocation for 
each  ACP  country  and  region  and  for  the  intra-ACP  envelop  on  which  the 
programming  process  is  based,  within  the  limits  set  out  in Article  2  of  the  Internal 
Agreement. These criteria shall be standard, objective and transparent. 

Regarding  the  national  indicative  grant  allocation,  the  resources  shall  comprise  a 
programmable amount and an amount for unforeseen needs as referred to in Article 
3(2)(b) of Annex IV to the ACP-EC Agreement.  

The  method  used  in  the  application  of  the  general  criteria  for  resource  allocation 
shall  be  the  subject  of  an  exchange  of  views  between  the  Member  States  and  the 
Commission  in  the  framework  of  the  EDF  Management  Committee  (hereinafter 
referred  to  as  the  ‘EDF  Committee’)  referred  to  in  Article  10(1).  The  consolidated 
country and regional aid allocations shall be consistent  with the amounts set out in 
Article  2  of  the  Internal  Agreement.  They  shall  be  integrated  into  the  country  and 
regional support strategies and multi-annual indicative programmes, and adopted by 
the  Commission  in  accordance  with  the  management  procedure  set  out  in  Article 
10(4). Funds earmarked for special action programmes and support as referred to in 

4. 

5. 

1. 

2. 

3. 

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Article  3(7)  shall  also  be  adopted  by  the  Commission  in  accordance  with  the 
management procedures set out in Article 10(4). 

Article 3 

Support strategy papers and multi-annual programming 

1. 

The support strategy papers (hereinafter referred to as ‘strategy papers’) for partner 
countries and regions shall cover no more than the period covered by the 10th EDF 
and  aim  to  provide  a  coherent  framework  for  cooperation  between  the  Community 
and the partner country or region concerned, consistent with the overall purpose and 
scope, objectives and principles of the ACP-EC Agreement. The strategy paper shall 
not only cover the development cooperation funded out of the EDF, but also all other 
Community  instruments  having  an  impact  on  the  partner  country  or  region,  taking 
into  account  the  Community’s  development  objectives  and  aiming  to  ensure 
coherence with other areas of the Community’s external action.  

(a)  Preparation and implementation of the support strategies shall be based on the 

principles of aid effectiveness;  

(b)  Except in the circumstances provided for in Article 1(5), strategy papers shall 
be based on dialogue with the partner country or region so as to ensure that the 
country  or  region  concerned  takes  sufficient  ownership  of  the  process  and  to 
encourage  coherence  with  and  support  for  national  or  regional  development 
strategies, particularly those for reducing poverty. Emphasis shall be placed on 
shared  assessments  of  needs  and  performance  and  sector  analysis,  as  well  as 
priorities;  

(c)  Other stakeholders, including representative local non-State actors and, where 
appropriate,  local  authorities,  shall  be  associated  in  the  programming  process 
as early as appropriate;  

(d)  The  Commission  and  the  Member  States  shall  consult  each  other  in  order  to 
come to a joint analysis of the country or regional situation and to ensure that 
their  cooperation  activities  complement  each  other.  Where  possible,  they  will 
seek  to  achieve  a  joint  programming.  Such  coordination  will  remain  open  to 
other  donors  and  shall  involve  the  EIB  on  matters  relating  to  its  areas  of 
expertise and operations, including as regards the Investment Facility. 

2. 

Except  in  the  circumstances  referred  to  in  Article  1(5),  multi-annual  indicative 
programmes  shall  be  drawn  up  on  the  basis  of  the  respective  strategy  papers  and 
shall be the subject of an agreement with the country or region concerned. The multi-
annual indicative programmes shall include: 

(a) 

(b) 

the  priority  areas  selected  for  Community  financing,  the  overall  objectives, 
expected impact and general policy commitments;  

the  indicative  financial  allocation,  both  overall  and  per  priority  area.  The 
allocation  per  priority  area  may  be  given  in  the  form  of  a  range,  where 
appropriate.  Community  assistance  shall  be  concentrated  in  a  limited  number 

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(c) 

(d) 

of priority areas and shall ensure complementarity with operations financed by 
the ACP State itself, by Member States and by other donors; 

per priority area, specific objectives and sectoral policy commitments and the 
most  appropriate  measures  and  operations  for  attaining  these  objectives  and 
targets. The indicative programme shall also describe the expected impact, and 
define results and performance indicators and a timetable for implementation, 
including commitments and disbursement of resources; 

the  resources  reserved  for  programmes  and  projects  outside  the  priority  areas 
and,  where  possible,  the  broad  outlines  of  such  activities  as  well  as  an 
indication  of  the  resources  to  be  deployed  for  each  of  these  activities.  They 
may  include  the  priorities  and  specific  resources  for  the  purpose  of 
strengthening  cooperation  with  the  Community’s  outermost  regions,  OCTs  or 
neighbouring  partner  countries  and  regions  as  referred  to  in  Article  9  of  this 
Regulation and the modalities for identifying and coordinating the selection of 
those common interest projects;  

(e) 

the  type  of  non-state  actors  eligible  for  funding  and,  where  possible,  the 
resources to be allocated and the type of activities to be supported. 

regional  and 

intra-ACP  support  strategies  and 

The  strategy  papers  and  multi-annual  indicative  programmes  shall  take  account  of, 
and  avoid  duplication  with,  measures  and  programmes  eligible  for  funding  under 
other EDF or Community instruments. Particular care shall be paid to the interaction 
between  national, 
the 
complementarity  and  subsidiarity  with  Community  instruments,  in  particular 
Regulation  (EC)  No  […]  [of  the  European  Parliament  and  of  the  Council  of  […] 
establishing  a  financing  instrument  for  development  cooperation],  Regulation  (EC) 
No  […]  [of  the  European  Parliament  and  of  the  Council  of  […]  establishing  a 
financing instrument for the promotion of democracy and human rights], Regulation 
No (EC) […] [of the European Parliament and of the Council of […] establishing an 
instrument  for  stability],  and  Regulation  (EC)  No  1257/96.  The  multi-annual 
adaptation strategies for ACP sugar protocol countries provided for in the instrument 
for development cooperation shall be integrated in the country strategy papers. 

to 

Each strategy paper, including its multi-annual indicative programme, shall be set out 
in a single document based on the common framework and on the principles towards 
joint multi-annual programming adopted by the Council on 11 April 2006.  

The  single  strategy  papers  referred  to  in  paragraph  4,  including  the  multi-annual 
indicative programmes, shall be adopted by the Commission in accordance with the 
management procedure set out in Article 10(4).  

The single strategy papers, including the multi-annual indicative programmes, shall 
subsequently  be  adopted  by  common  agreement  between  the  Commission  and  the 
ACP  State  or  Region  concerned  and  shall,  when  adopted,  be  binding  on  both  the 
Community  and  that  State  or  Region.  Countries  without  a  signed  strategy  paper 
remain  eligible  to  funding  from  the  envelope  for  unforeseen  needs  referred  to  in 
Article 3(2)(b) of Annex IV to the ACP-EC Agreement.  

3. 

4. 

5. 

6. 

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7. 

1. 

2. 

3. 

The  provisions  referred  to  in  Article  1(5)  of  this  Regulation  can  take  the  form  of 
special  action  programmes  replacing  a  support  strategy  in  cases  where  there  is  no 
government in place in the partner country to notify the amount of the multi-annual 
indicative fund allocation or to prepare the support strategy, or they can take the form 
of special support funded from the appropriation for unforeseen needs referred to in 
Article 3(2)b of Annex IV to the ACP-EC Agreement in situations when the amount 
of  the  multi-annual  indicative  fund  allocation  is  notified  but  no  strategy  paper  is 
signed,  and/or  the  national  authorising  officer  of  the  partner  country  is  prevented 
from  carrying  out  his/her  duty.  These  special  action  programmes  and  support  shall 
comply with the previous paragraphs and take into account the special considerations 
referred  to  in  Article  4(3)(c)  of  this  Regulation.  They  shall  be  adopted  by  the 
Commission in accordance with the management procedure set out in Article 10(4) 
of this Regulation. 

Article 4 

Reviews 

Strategy papers and multi-annual indicative programmes as well as the special action 
programmes  and  support  referred  to  in  Article  3(7)  shall  be  submitted  to  annual 
operational  reviews,  to  reviews  at  mid-term  and  at  the  end  of  term  and,  when 
necessary, to ad hoc reviews. 

integral  part  of 

The  mid-term  and  end-of-term  reviews  constitute  an 
the 
programming  process  and  assess  the  strategy  paper,  including  the  multi-annual 
adaptation  strategies  for  the  Sugar  Protocol  countries  and  any  other  programmes 
funded from Community instruments referred to in Article 3(3), and the multi-annual 
indicative  programme  in  the  light  of  current  needs  and  performance.  The  review 
includes,  to  the  extent  possible,  an  impact  assessment  of  the  Community's 
development  cooperation  in  relation  to  the  objectives  and  indicators  set  out  in  the 
support  strategy.  Following  the  completion  of  the  mid-term  or  end-of-term  review 
exercise, 

(a) 

the support strategies and multi-annual indicative programmes may be adjusted 
where  the  reviews  indicate  specific  problems,  or  in  the  light  of  changed 
circumstances. 

(b) 

the  national  and  regional  multi-annual  indicative  allocation  may  be  increased 
or decreased in the light of current needs and performance.  

The  annual  operational  reviews  assess  the  level  of  implementation  of  the  multi-
annual indicative programmes only. In cases of new or special needs, such as those 
resulting  from  a  post-crisis  situation,  or  exceptional  performance  when  a  multi-
annual  indicative  allocation  is  totally  committed  and  additional  funding  can  be 
absorbed  against  a  background  of  effective  poverty-reduction  policies  and  sound 
financial  management,  a  multi-annual  indicative  allocation  may  be  increased 
following the completion of the annual operational review exercise.  

4. 

Ad hoc reviews can be carried out at the request of either the ACP State concerned or 
the  Commission,  in  cases  of  new  or  special  needs  or  exceptional  performance  as 

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described in paragraph 2 of this Article or in the case of exceptional circumstances 
referred  to  in  Article  72  and  Article  73  of  the  ACP-EC  Agreement  regarding 
humanitarian  and  emergency  aid.  The  occurrence  of  sudden  and  unforeseeable 
serious  humanitarian,  economic  and  social  difficulties  of  an  exceptional  nature 
resulting  from  natural  disasters,  man-made  crises  such  as  wars  and  other  conflicts, 
post-conflict  situations,  threats  to  democracy,  the  rule  of  law,  human  rights  or 
fundamental  freedoms  or  extraordinary  circumstances  within  a  country  or  within  a 
region  that  have  comparable  effects,  may  be  considered  as  cases  justifying  the 
conducting of an ad hoc review. 

(a)  Following  the  completion  of  the  ad  hoc  review  exercise,  special  measures 
referred  to  in  Article  7  of  this  Regulation  may  be  proposed.  If  required,  the 
allocation  of  the  multi-annual  indicative  programme  or  the  special  action 
programme  may  be  increased  within  the  limits  of  available  funds  set  out  in 
Article 2 of the Internal Agreement. Where no strategy paper has been signed, 
special support can be funded from the envelope for unforeseen needs referred 
to in Article 1(5) of this Regulation.  

(b)  The measures taken shall be consistent with and complement other Community 
instruments,  in  particular  the  instrument  for  stability  and  the  instrument  for 
humanitarian aid referred to in Article 3(3).  

(c)  Where partner countries or groups of partner countries are directly involved in, 
or affected by, a crisis or post-crisis situation, multi-annual programming shall 
place  special  emphasis  on  stepping  up  coordination  between  relief, 
rehabilitation  and  development  to  help  them  make  the  transition  from  an 
emergency situation to the development phase; programmes for countries and 
regions  regularly  subject  to  natural  disasters  shall  provide  for  disaster 
preparedness and prevention.  

In cases of new needs as defined in the Joint Declaration VI referring to Article 12(2) 
of  Annex  IV  to  the  ACP-EC  Agreement  regarding  intra-ACP  cooperation,  an 
increase in the intra-ACP programmable allocation may be financed from the intra-
ACP reserves within the global limits set out in point (b) of Article 2 of the Internal 
Agreement. 

Annual, mid-term and end-of-term reviews shall be carried out in close coordination 
with  the  Member  States  represented  in  the  ACP  State  or  region  concerned. 
Representative  national  or  regional  non-state  actors  shall  be  consulted  during  the 
process. The EIB shall be consulted on matters relating to its operations and those of 
the Investment Facility. 

Any  change  in  support  strategy  and/or  resource  allocation  resulting  from  a  review 
referred to in paragraphs 1 to 4 of this Article shall be adopted by the Commission in 
accordance  with  the  management  procedure  set  out  in  Article  10(4)  of  this 
Regulation.  The  addenda  to  the  single  strategy  papers,  including  the  multi-annual 
indicative programmes and to the special action programmes, shall subsequently be 
adopted  by  common  agreement  between  the  Commission  and  the  ACP  State  or 
Region concerned and shall, when adopted, be binding on both the Community and 
that State or Region.  

5. 

6. 

7. 

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TITLE II 

IMPLEMENTATION 

Article 5 

General framework for implementation 

1. 

2. 

The  implementation  of  the  assistance  provided  to  the  ACP  countries  and  regions 
managed by the Commission under the ACP-EC Agreement shall be undertaken in 
accordance with Annex IV to that Agreement and the financial regulation referred to 
in Article 10(2) of the Internal Agreement.  

Without  prejudice  to  Articles  11b,  96  and  97  of  the  ACP-EC  Agreement,  where  a 
partner country fails to observe the essential and fundamental elements referred to in 
Article 9 of that Agreement, and where consultations with the partner country do not 
lead  to  a  solution  acceptable  to  both  parties,  or  if  consultations  are  refused,  or  in 
cases of special urgency, the Council, acting by the qualified majority laid down in 
Article  8  of  the  Internal  Agreement  on  a proposal  from  the  Commission,  may  take 
appropriate  measures  in  respect  of  any  assistance  granted  to  the  partner  country 
under the multi-annual financial framework 2008-2013. Such measures may include 
full or partial suspension of assistance. 

Article 6 

Adoption of annual action programmes 

1. 

The Commission shall adopt annual action programmes based on the strategy papers 
and multi-annual indicative programmes referred to in Article 3.  

Exceptionally,  for  instance  where  an  annual  action  programme  has  not  yet  been 
adopted, the Commission may, on the basis of the strategy papers and multi-annual 
indicative  programmes,  adopt  measures  not  provided  for  in  the  annual  action 
programme under the same rules and procedures. 

The  annual  action  programmes  shall  specify  the  objectives  pursued,  the  fields  of 
intervention, the expected results, the management procedures and the total amount 
of  financing  planned.  They  shall  contain  a  description  of  the  operations  to  be 
financed, an indication of the amounts allocated for each operation and an indicative 
implementation  timetable.  Objectives  shall  be  measurable  and  have  time-bound 
benchmarks. 

The  annual  action  programmes  shall  be  adopted  by  the  Commission  in  accordance 
with the management procedures set out in Article 10(4). Any changes in the annual 
action programmes shall be adopted in accordance with Article 7(4). 

The  Commission  shall  adopt  specific  action  programmes  in  accordance  with  the 
management  procedure  referred  to  in  Article  10(4)  of  this  Regulation  for  support 
expenditures referred to in Article 6(2) of the Internal Agreement and not covered by 
the multi-annual indicative programmes. Any changes in the action programmes for 

2. 

3. 

4. 

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support  expenditures  shall  be  adopted  in  accordance  with  Article  7(4)  of  this 
Regulation. 

Article 7 

Adoption of special measures 

1. 

2. 

3. 

4. 

In  the  cases  referred  to  in  Article  4(3)  of  this  Regulation  which  cannot  be  funded 
under the instrument for stability or the instrument for humanitarian aid referred to in 
Article  3(3)  of  this  Regulation,  the  Commission  may  adopt  special  measures  not 
provided for in the strategy papers and multi-annual indicative programmes. 

Special measures shall specify the objectives pursued, the areas of intervention, the 
expected results, the management procedures and the total amount of financing. They 
shall  contain  a  description  of  the  operations  to  be  financed,  an  indication  of  the 
amounts  allocated  for  each  operation  and  the  indicative  timetable  for  their 
implementation. They shall include a definition of the type of performance indicators 
that will have to be monitored when implementing the special measures. 

Where  the  cost  of  such  measures  exceeds  EUR  10  million,  the  Commission  shall 
adopt them under the management procedure referred to in Article 10(4). For special 
measures below EUR 10 million, the Commission shall inform the EDF Committee 
within one month of their adoption.  

Amendments  to  special  measures,  such  as  those  making  technical  adjustments, 
extending  the  implementation  period,  reassigning  funds  within  the  forecast  budget, 
or increasing or reducing the size of the budget by less than 20% of the initial budget, 
do not require adoption under the management procedure referred to in Article 10(4), 
provided  that  such  amendments  do  not  affect  the  initial  objectives  set  out  in  the 
Commission decision.  

Article 8 

Co-financing and additional Member State contributions 

1. 

Co-financing occurs when a project or programme is funded from different sources.  

(a) 

(b) 

In  the  case  of  parallel  co-financing,  the  project  or  programme  is  split  into  a 
number  of  clearly  identifiable  components,  each  of  which  is  financed  by  the 
different partners providing co-financing, in such a way that the end-use of the 
financing can always be identified. 

In  the  case  of  joint  co-financing,  the  total  cost  of  a  project  or  programme  is 
shared  between  the  partners  providing  co-financing  and  the  resources  are 
pooled  in  such  a  way  that  it  is  no  longer  possible  to  identify  the  source  of 
financing for any activity undertaken as part of the project or programme. 

2. 

When  the  Commission  is  involved  in  joint  co-financing  arrangements,  the 
implementing  arrangements  governing  such  funds,  including  the  coverage  of  the 
administrative costs incurred by the body in charge of the management of the pooled 

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funds,  shall  be  laid  down  in  the  financing  agreement  according  to  the  rules  and 
procedures  which  shall  be  detailed  in  the  financial  regulation  referred  to  in  Article 
10(2) of the Internal Agreement. 

(a)  Where the Commission receives and manages funds on behalf of  

(i)  Member States and their regional and local authorities, and in particular 

their public and parastatal agencies; 

(ii)  Other  donor  countries,  and  in  particular  their  public  and  parastatal 

agencies; 

(iii)  International  organisations,  including  regional  organisations,  and  in 

particular international and regional financial institutions; 

for the purpose of implementing joint measures, such funds shall be treated as 
assigned  revenue,  in  accordance  with  the  Financial  Regulation  referred  to  in 
Article  9(2)  of  the  Internal  Agreement  and  shall  be  integrated  as  such  in  the 
annual action programmes.  

(b)  Where  the  Commission  entrusts  the  bodies  referred  to  in  paragraph  2(a)  with 
funds  for  the  financing  of  tasks  of  public  authority,  and  in  particular  EDF 
implementation tasks, such co-financing shall be reflected and duly justified in 
the annual action programmes and visibility of the EDF's contribution shall be 
fully ensured.  

When the EIB is designated as the manager for a joint co-financing arrangement, the 
implementing  arrangements  governing  such  funds,  including  the  coverage  of  the 
administrative costs incurred by the EIB, shall be drawn up in compliance with the 
statutes and internal regulations of the EIB. 

At  their  own  initiative,  Member  States  may  also  provide  to  the  Commission  or  the 
EIB  voluntary  contributions  above  those  defined  in  Article  1(2)(a)  of  the  Internal 
Agreement  to  help  achieve  the  objectives  of  the  ACP-EC  Agreement  outside  joint 
co-financing  arrangements.  The  implementing  arrangements  governing  such  funds, 
including  the  intervention  framework  for  which  the  voluntary  contributions  are 
made,  the  specific  objectives,  expected  results  and  performance  indicators  and  the 
remuneration of the administrative costs incurred by the Commission or the EIB in 
managing  these  contributions,  shall  be  laid  down  in  bilateral  contribution 
agreements. Voluntary contributions entrusted to the Commission shall be treated as 
assigned revenue, in accordance with the Financial Regulation referred to in Article 
10(2) of the Internal Agreement and shall be integrated as such in the annual action 
programmes and in the review process.  

Member  States  entrusting  the  Commission  or  the  EIB  with  additional  voluntary 
contributions to help achieve the objectives of the ACP-EC Agreement shall inform 
the  Council  of  these  contributions  in  advance.  Any  change  in  the  annual  action 
programmes or in the support strategies resulting from these voluntary contributions, 
for  example  in  response  to  the  launch  of  a  new  initiative  based  on  new  or  special 
needs as referred to in Article 4(2), (3) and (4), shall be adopted by the Commission 
in accordance with the management procedures set out in Article 10(4). 

3. 

4. 

5. 

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Article 9 

Participation by a third country or region 

In order to ensure the coherence and effectiveness of Community assistance, the Commission 
may  decide  that  non-ACP  developing  countries  and  regional  integration  bodies  with  ACP 
participation  that  promote  regional  cooperation  and  integration  eligible  for  Community 
Assistance under Regulation (EC) No […] [of the European Parliament and of the Council of 
[…]  establishing  a  financing  instrument  for  development  cooperation],  Regulation  (EC)  No 
[…]  [of  the  European  Parliament  and  of  the  Council]13  [of  […]  establishing  a  European 
Neighbourhood  and  Partnership  instrument],  the  OCTs  eligible  for  Community  assistance 
under the Council Decision 2001/822/EC14 on the association of the OCTs with the European 
Community,  and  the  Community’s  outermost  regions  are  eligible  for  funds  referred  to  in 
Article 1(2)(a)(i) of the Internal Agreement, where the project or programme concerned is of a 
regional or cross-border nature. Provision may be made for this funding in the strategy papers 
and multi-annual indicative programmes and in the special measures referred to in Article 7 of 
this Regulation. Those provisions shall be integrated in the annual action programmes. 

TITLE III 

DECISION-MAKING PROCEDURES 

Article 10 

Responsibilities of the EDF Committee 

1. 

2. 

An  EDF  Committee  has  been  set  up  at  the  Commission  for  those  resources  of  the 
10th  EDF  which  the  Commission  administers.  This  EDF  Committee  deliberates 
according to the voting rules adopted in Article 8 of the Internal Agreement. 

The EDF Committee shall give its opinion on the substantive issues of development 
cooperation at country, regional and intra-ACP level funded from the 10th EDF and 
other Community resources referred to in Article 3(3).  

3. 

The Committee's tasks shall cover two levels: 

(a) 

programming  of  Community  aid  under  the  10th  EDF  and  programming 
reviews focusing in particular on country, regional and intra-ACP strategies; 

and 

(b)  monitoring  the  implementation  of  Community  aid,  including  annual  action 
programmes, sectoral aspects, cross-cutting issues, and the functioning of field-
level coordination. 

When the EDF Committee is called upon to give its opinion, the representative of the 
Commission shall submit to the committee a draft of the measures to be taken. The 

OJ L , , p. . 
OJ L 314, 30.11.2001, p. 1. 

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4. 

13 
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5. 

6. 

EDF Committee shall deliver its opinion within a time-limit which the chairman may 
lay down according to the urgency of the matter but which shall not exceed 30 days. 
The EIB shall take part in the exchange of views. The opinion shall be delivered by 
the  qualified  majority  laid  down  in  Article  8(3)  of  the  Internal  Agreement  on  the 
basis  of  the  votes  of  the  Member  States  weighted  in  the  manner  set  out  in  Article 
8(2) of the Internal Agreement. 

When  the  EDF  Committee  has  delivered  its  opinion,  the  Commission  shall  adopt 
measures  which  shall  apply  immediately.  However,  if  these  measures  are  not  in 
accordance with the opinion of the EDF Committee, they shall be communicated by 
the Commission to the Council forthwith. In that event, the Commission may defer 
application of the measures for a period which shall not exceed 30 days from the date 
of  such  communication.  The  Council,  acting  by  the  same  qualified  majority  as  the 
EDF Committee, may take a different decision within this period.  

The  Committee  shall  also  examine  the  consistency  and  complementarity  between 
Community aid and aid from the Member States. In order to ensure transparency and 
consistency  between  cooperation  operations  and  improve  complementarity  between 
Community  actions  and  bilateral  aid,  the  Commission  shall  involve  to  the  extent 
possible  the  Member  States  represented  in  the  partner  countries  and  regions  in  the 
preparation  of  the  annual  action  programmes.  In  turn,  each  Member  State  shall 
systematically  inform  the  Commission  of  the  cooperation  activities  that  it  is 
undertaking, or intends to undertake, in each particular country or region. 

Following the Council’s adoption of the principles to fund the African Peace Facility 
from the 10th EDF as a complementary instrument to funds made available from the 
Community  budget,  to  enable  the  African  Union  to  assume  leadership  and 
responsibility  for  Africa’s  peace  and  security  agenda  and  to  support  African 
organisations (the African Union as well as sub-regional organisations acting under 
the mandate of the African Union) in the preparation, planning and implementation 
of  effective  peace  support  operations,  the  intra-ACP  indicative  programme  shall 
earmark  funding  for  the  African  Peace  Facility.  Specific  management  procedures 
shall apply:  

(a)  On  a  request  from  the  African  Union,  endorsed  by  the  ACP  Committee  of 
Ambassadors,  an  action  programme  shall  be  prepared  covering  the  initial 
period  2008-2010.  An  evaluation  shall  be  undertaken  in  2010  reviewing  the 
procedures  of  the  African  Peace  Facility  as  well  as  the  possibilities  of 
alternative  future  sources  of  funding,  including  common  foreign  and  security 
policy funding. This action programme shall specify the objectives pursued, the 
scope  and  nature  of  the  possible  interventions  and  the  implementation 
arrangements,  including  an  agreed  format  for  background  documents  and 
requests, and for reporting. 

(b)  This action programme shall be discussed by the relevant preparatory Council 
working group(s), and approved by the Political and Security Committee of the 
Council  before  being  adopted  by  the  Commission  in  accordance  with  the 
management procedures set out in Article 10(4);  

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(c)  A  financing  agreement  shall  subsequently  be  concluded  between 

the 
Commission  and  the  African  Union  and  shall,  when  adopted,  be  binding  on 
both the Community and the African Union;  

(d)  Each  intervention  to  be  implemented  under  the  financing  agreement  shall  be 
subject  to  prior  approval  by  the  Political  and  Security  Committee  of  the 
Council;  

(e)  The  Commission  shall  prepare  an  activity  report  on  the  use  of  the  funds  for 
information of the EDF Committee on an annual basis and at the request of the 
EDF Committee. 

Article 11 

The Investment Facility Committee 

1. 

A  committee  (hereinafter  referred  to  as  the  ‘IF  Committee’)  consisting  of 
representatives of the Governments of the Member States and of a representative of 
the Commission shall be set up under the auspices of the EIB.  

(a)  Each  Government  shall  nominate  one  representative  and  one  designated 
alternate.  The  Commission  shall  act  in  the  same  way  for  its  representative. 
With a view to maintaining continuity, the Chairman of the IF Committee shall 
be elected by and from among the members of the IF Committee for a period 
of  two  years.  The  EIB  shall  provide  the  Committee's  secretariat  and  support 
services.  Only  the  members  of  the  IF  Committee  designated  by  the  Member 
States, or their alternates, shall vote; 

(b)  The Council, acting unanimously, shall adopt the rules of procedure of the IF 
Committee on the basis of a proposal drawn up by the EIB after consulting the 
Commission;  

(c)  The IF Committee shall act by qualified majority. The weighting of the votes 

shall be as laid down in Article 8 of the Internal Agreement; 

(d)  The  IF  Committee  shall  meet  at  least  four  times  a  year.  Additional  meetings 
may be convened at the request of the EIB or of the members of the Committee 
as set out in the rules of procedure.  

2. 

The IF Committee shall approve: 

(a) 

(b) 

(c) 

(d) 

guidelines  on  the  implementation  of  the  Investment  Facility,  its  development 
impact assessment framework and proposals for their revision; 

the  investment  strategies  and  business  plans  of  the  Facility,  including 
performance  indicators,  on  the  basis  of  the  objectives  of  the  ACP-EC 
Agreement and of the broad principles of Community development policy; 

the annual reports of the Investment Facility; 

any  general  policy  document,  including  evaluation  reports,  concerning  the 
Investment Facility. 

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3. 

Furthermore, the IF Committee shall deliver an opinion on: 

(a) 

proposals  to  grant  an  interest  subsidy  under  Article  2(7),  and  Article  4(2),  of 
Annex II to the ACP-EC Agreement. In such cases, the Committee shall also 
deliver an opinion on the use of such an interest subsidy; 

(b)  proposals for an IF investment for any project for which the Commission has 

delivered a negative opinion; 

(c) 

other  proposals  relating  to  the  Investment  Facility  based  on  the  general 
principles defined in the operational guidelines. 

In addition, the governing bodies of the EIB may, from time to time, request that the 
IF Committee provides an opinion on all financing proposals, or on certain categories 
of financing proposals. 

4. 

5. 

It shall be the EIB's responsibility to submit to the IF Committee in a timely manner 
any matters that require the approval or opinion of the IF Committee, as provided for 
in paragraphs 1 and 2. Any proposal submitted to the Committee for an opinion shall 
be  made  in  accordance  with  the  relevant  criteria  and  principles  set  out  in  the 
operational guidelines. 

The  EIB  and  the  Commission  shall  cooperate  closely  and,  where  relevant,  shall 
coordinate their respective operations. In particular: 

(i) 

the EIB shall prepare or revise jointly with the Commission the guidelines on 
the implementation of the Investment Facility referred to under paragraph 2(a); 

(ii) 

the EIB shall request the opinion of the Commission beforehand on investment 
strategies, business plans and general policy documents 

(iii) 

(iv) 

the EIB shall request the opinion of the Commission at the appraisal stage of a 
project on the conformity of public sector or financial sector projects with the 
relevant country cooperation strategy or regional cooperation strategy or, as the 
case may be, with the general objectives of the Investment Facility; 

the  EIB  shall  also  request  the  agreement  of  the  Commission  at  the  appraisal 
stage  of  a  project  on  any  proposal  made  to  the  IF  Committee  for  an  interest 
subsidy, as to its compliance with Article 2(7) and Article 4(2) of Annex II to 
the  ACP-EC  Agreement,  and  with  the  criteria  defined  in  the  operational 
guidelines of the Investment Facility. 

The  Commission  shall  be  deemed  to  have  rendered  a  favourable  opinion  on  or  to 
have  agreed  to  a  proposal  unless  it  notifies  a  negative  opinion  on  such  proposal 
within two weeks following the submission of the proposal. As regards opinions for 
financial or public sector projects, as well as agreement to interest rate subsidies, the 
Commission may request that the final project proposal be submitted for its opinion 
or approval two weeks before being sent to the IF Committee.  

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6. 

The  EIB  shall  not  proceed  with  any  action  mentioned  in  paragraph  2  unless  the  IF 
Committee has given a favourable opinion.  

Following  a  favourable  opinion  of  the  IF  Committee,  the  EIB  shall  decide  on  the 
proposal in accordance with its own procedures. In particular it may, on account of 
new  circumstances,  decide  not  to  proceed  with  the  proposal.  The  EIB  shall 
periodically inform the IF Committee and the Commission of cases where it decides 
not to proceed. 

For loans from its own resources and for IF investments for which no opinion of the 
IF  Committee  is  required,  the  EIB  shall  decide  in  accordance  with  its  own 
procedures and, in the case of the Facility, in accordance with the guidelines and the 
investment strategies approved by the IF Committee. 

Notwithstanding  a  negative  opinion  of  the  IF  Committee  on  a  proposal  to  grant  an 
interest subsidy, the EIB may proceed with the loan in question without the benefit of 
the  interest  subsidy.  The  EIB  shall  periodically  inform  the  IF  Committee  and  the 
Commission of each occasion on which it so decides to proceed. 

The EIB may, subject to conditions laid down in the operational guidelines, and the 
condition that the essential objective of the loan or Investment Facility Investment in 
question be unchanged, decide to modify the terms of an Investment Facility loan or 
investment  on  which  the  IF  Committee  has  given  a  favourable  opinion  under 
paragraph  2  or  of  any  loan  on  which  the  IF  Committee  has  given  a  favourable 
opinion regarding interest subsidies. In particular, the EIB may decide to increase the 
amount of the loan or Investment Facility investment by up to 20%. 

Such  an  increase  may,  for  projects  with  interest  subsidies  referred  to  in  Article 
2(7)(a) of Annex II to the ACP-EC Agreement, result in a proportionate increase in 
the value of the interest subsidy. The EIB shall periodically inform the IF Committee 
and the Commission of each occasion on which it so decides to proceed. For projects 
falling under Article 2(7)(b) of Annex II to the ACP-EC Agreement, if an increase in 
the value of the subsidy is requested, the IF Committee will be required to deliver an 
opinion before the EIB proceeds. 

7. 

The EIB shall manage Investment Facility Investments and all funds held on account 
of the said Investment Facility in accordance with the objectives of the Agreement. It 
may,  in  particular,  take  part  in  the  management  and  supervisory  bodies  of  legal 
persons in which the Investment Facility is invested, and may compromise, discharge 
and modify the rights held on account of the Investment Facility. 

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TITLE IV 

FINAL PROVISIONS 

Article 12 

1. 

2. 

3. 

4. 

Monitoring and reporting requirements regarding the progress 

in implementation of EDF assistance 

The  Commission  and  the  EIB  will  ensure  close  coordination  and  cooperation  in 
providing  Community  aid  to  the  ACP States.  The  Commission  and  the  EIB  shall 
monitor, each to the extent to which it is concerned, the use of EDF assistance by the 
recipients.  

The EIB shall periodically inform the Commission regarding the implementation of 
projects  financed  from  the  10th  EDF  resources  it  administers,  following  the 
procedures set out in the operational guidelines of the Investment Facility.  

The  Commission  shall  examine  the  progress  made  in  implementing  the  10th  EDF 
and shall submit to the Council an annual report on the implementation and results 
and, as far as possible, the main outcomes and impacts of the assistance. This report 
shall  also  be  sent  to  the  European  Parliament,  the  European  Economic  and  Social 
Committee and the Committee of the Regions. It shall contain information relating to 
the previous year on the measures financed, the results of monitoring and evaluation 
exercises,  the  involvement  of  the  relevant  partners,  and  the  implementation  of 
commitments and payments, broken down by country, region and cooperation sector. 
It  shall  assess  the  results  of  the  assistance,  using  as  far  as  possible  specific  and 
measurable  indicators  of  its  role  in  meeting  the  objectives  of  the  ACP-EC 
Agreement.  Particular  attention  shall  be  given  to  social  sectors  and  progress  made 
towards  achieving  the  Millennium  Development  goals.  The  EIB  shall  similarly 
provide  the  IF  Committee  with  information  as  regards  progress  towards  the 
objectives of the Investment Facility. Following Article 6b of Annex II to the ACP-
EC Agreement, the overall performance of the Investment Facility shall be subject to 
a joint review at the mid- and end-term of the 10th EDF.  

The  Commission  shall  provide  the  Council  in  2010  with  a  proposal  for  the  overall 
performance  review  to  be  undertaken.  This  review  shall  assess  the  financial 
performance,  and  in  particular  the  degree  of  realisation  of  commitments  and 
disbursements as well as the qualitative performance, and in particular the results and 
the  impact,  measured  in  terms  of  progress  towards  achieving  the  millennium 
development goals. 

Article 13 

Evaluation 

1. 

The  Commission  and  the  EIB  shall,  in  association  with  experts  from  the  Member 
States  where  appropriate,  each  to  the  extent  to  which  it  is  concerned,  regularly 

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evaluate the results of the implementation of geographical and thematic policies and 
programmes  and  of  sectoral  policies  and  the  effectiveness  of  programming,  where 
appropriate  by  means  of  independent  external  evaluations,  in  order  to  ascertain 
whether the objectives have been met and to enable it to formulate recommendations 
with  a  view  to  improving  future  operations.  Particular  attention  shall  be  given  to 
ensuring  coherence  of  Community  development  policy  and  to  social  sectors  and 
progress made towards achieving the millennium development goals. 

The  Commission  shall  send  its  country  and  regional  evaluation  reports  to  the 
European Parliament and the EDF Committee for information. Member States may 
request a discussion of specific evaluations in the EDF Committee. The results shall 
feed back into programme design and resource allocation. 

The Commission shall associate relevant stakeholders, including non-state actors, in 
the evaluation phase of the Community assistance provided. 

2. 

3. 

Article 14 

Entry into force 

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

It shall be applicable for the same period as the Internal Agreement. 

Done at Brussels,  

For the Council 
The President 

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