Report from the Commission to the Council and the European Parliament - 2005 Report on PHARE, pre-accession and transition instruments {SEC(2007) 11}
Date: 2007-01-12
Institutions: European Commission
Subjects: Bulgaria, Croatia, EU programme, Romania, Türkiye, accession to the European Union, enlargement of the Union, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.1.2007 
COM(2007) 3 final 

REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 

2005 REPORT ON PHARE, PRE-ACCESSION AND TRANSITION INSTRUMENTS 

{SEC(2007) 11} 

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REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 

2005 REPORT ON PHARE, PRE-ACCESSION AND TRANSITION INSTRUMENTS 

Introduction 

Together  with  two  other  instruments  financed  by  the  European  Communities,  namely  ISPA 
(Instrument  for  Structural  Policies  for  Pre-Accession)  and  SAPARD  (Special  Accession 
Programme  for  Agriculture  and  Rural  Development),  the  Phare  Programme  aims  to  assist 
candidate  and  acceding  countries  in  their  preparations  for  joining  the  European  Union.  In 
2005, following the accession of the 10 new Member States, Bulgaria, Romania continued to 
benefit  from  the  three  pre-accession  instruments  and  following  the  conclusion  of  the  June 
European  Council  in  2004,  a  pre-accession  strategy  for  Croatia  was  also  prepared;  the 
respective regulations were subsequently amended and credits were assigned in the budget for 
PHARE  and  ISPA  already  in  2005  and  for  SAPARD  starting  in  2006.  Turkey  continued  to 
receive support under its own pre-accession assistance instrument. 

The  objectives  of  Phare  pre-accession  assistance  are  to  assist  candidate  and  acceding 
countries in their efforts to strengthen their public administrations and institutions to function 
effectively  inside  the  European  Union,  to  promote  convergence  with  the  European 
Community’s legislation, to reduce the need for transition periods and to promote Economic 
and Social Cohesion (ESC). 

Programming  was  based  on  the  Phare  Guidelines  that  were  revised  in  2004  in  order  to 
accompany  the  further  alignment  of  the Cross  Border Co-operation (CBC) Regulation with 
INTERREG, to accommodate the unique approach required in the area of nuclear safety and 
to emphasise the transition to Extended Decentralisation Implementation System (EDIS). The 
programming and implementation of pre-accession assistance for Turkey largely mirrored the 
procedures and content of Phare support. In order to prepare for the decentralised approach to 
programme  management  established  under  the  Structural  Funds,  the  European  Commission 
has  increasingly  intensified  the  support  to  Bulgaria  and  Romania  to  allow  for  a  further 
transfer of responsibility for the management and implementation of Phare programmes to the 
national authorities. 

This report also contains information on the Transition Facility for new Member States which 
was  introduced  to  allow  for  the  continuation  of  institution  building  support  with  a  view  to 
strengthening  and  consolidating  institutional  and  administrative  capacity  to  implement  the 
acquis  communautaire.  Programming  is  based  on  needs  identified  in  the  Commission’s 
Comprehensive Monitoring Report (November 2003). 

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1. 

THE YEAR IN REVIEW 

1.1.  Main evolutions of the Enlargement Process in 2005 

In 2005 the Accession Treaty with Bulgaria and Romania was signed and the EU prepared the 
ground  for  future  enlargements.  It  began  accession  negotiations  with  Turkey  and  Croatia, 
granted  the  status  of  candidate  country  to  the  former  Yugoslav  Republic  of  Macedonia  and 
strengthened its relationship with the other Western Balkans. 

The Accession Treaty for Bulgaria and Romania was signed on 25 April 2005 and ratification 
began  in  2005.  Comprehensive  Monitoring  Reports  on  Bulgaria  and  Romania,  closely 
monitoring the countries’ preparations for accession throughout the year, were issued by the 
Commission in October 2005. 

In November 2005, the Commission presented an Enlargement Strategy Paper based on three 
principles: the consolidation of existing commitments, applying a fair and strict conditionality 
and improving communication. The Commission proposed an accession strategy for Turkey 
and  Croatia  and  outlined  the  steps  necessary  to  realize  the  European  perspective  of  the 
Western Balkans. 

The  EU  opened  accession  negotiations  with  Turkey  and  Croatia  on  3  October  2005.  In 
October 2005, the “screening” of the acquis began with representatives of both countries. The 
Commission  continued  to  monitor  the  accession  process  of  the  two  countries  and  presented 
Progress Reports and revised Accession Partnerships on both of them in November 2005. In 
parallel,  the  Commission  has  implemented  the  Stabilisation  and  Association  Agreement 
(SAA) with Croatia, which entered into force on 1 February 2005, as well as the Association 
Agreement with Turkey. 

In November 2005 the Commission adopted its Opinion on the application for membership by 
the  former  Yugoslav  Republic  of  Macedonia;  the  December  European  Council  granted  it 
candidate country status, as recommended by the Commission. Reforms in Albania paved the 
way for the conclusion of a SAA. Negotiations on a SAA with Serbia and Montenegro were 
opened  in  October  2005  and  with  Bosnia  and  Herzegovina  in  November  2005.  Progress 
Reports  on  these  last  three  were  issued  in  November  2005.  As  regards  Kosovo,  the 
Commission  adopted  a  Communication  on  “A  European  Future  for  Kosovo”  in  April  and 
issued a Progress Report in November. 

The Council  did not reach  agreement on the Commission’s  2004 aid  and trade  proposals in 
support of the Turkish Cypriot Community. €120 million of commitment appropriations had 
to  be  cancelled  at  the  end  of  2005.  The  Council  adopted  the  Commission’s  proposal  to 
improve the “Green Line Regulation”. These amendments will help facilitate the crossing of 
persons and goods across the Green Line, thus contributing to the integration of the island. 

1.2.  Main conclusions of the 2005 European Council 

Brussels European Council of 16-17 June 2005: 

“The European Council reaffirms its commitment to full implementation of the Thessaloniki 
agenda, which emphasises that the future of the Western Balkans lies in the European Union. 
It reiterates that each country's progress towards European integration, taking account of the 

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evolution of the acquis, depends on its efforts to comply with the Copenhagen criteria and the 
conditionality of the stabilisation and association process. Moreover, in this process, regional 
cooperation and good neighbourly relations will remain essential elements of EU policy. 

The European Council encourages the Former Yugoslav Republic of Macedonia to intensify 
its efforts with a view to the opinion that the Commission is to submit on its application for 
accession  to  the  EU.  It  commends  the  substantial  efforts  made  by  Serbia  and  Montenegro, 
encourages  it  to  intensify  these,  and  reaffirms that  the  European  Union  wishes  to  enter  into 
negotiations  as  soon  as  possible  with  a  view  to  concluding  a  stabilisation  and  association 
agreement. It reiterates its determination to act likewise with Bosnia and Herzegovina as soon 
as the conditions for so doing are fulfilled. The European Council also recalls the importance 
of  holding  free  and  democratic  elections  in  Albania  in  accordance  with  international 
standards,  including  in  the  regions  where  minorities  live,  in  the  context  of  that  country's 
rapprochement with the EU. 

On  the  eve  of  the  commemoration  of  the  tenth  anniversary  of  the  Srebrenica  massacre,  the 
European Council underlines that full and unrestricted cooperation by countries in the region 
with the ICTY remains an essential requirement for continuing their progress towards the EU. 
It expects that this cooperation will continue and be strengthened until all those charged with 
crimes who continue to elude international justice have been brought before the Tribunal.” 

The  European  Council  adopted  a  declaration  on  Kosovo  recalling  the  European  Union’s 
contribution  to  the  implementation  of  United  Nations  Security  Council  Resolution  1244  on 
Kosovo  and  asking  the  parties  to  show  goodwill,  so  as  to  achieve  a  mutually  acceptable 
solution. 

Brussels European Council of 15-16 December 2005: 

“The  European  Council  welcomes  the  Commission's  Opinion  on  the  former  Yugoslav 
Republic of Macedonia's application for EU membership. It welcomes the significant progress 
made  by  the  former  Yugoslav  Republic  of  Macedonia  towards  meeting  the  political  criteria 
set  by  the  Copenhagen  European  Council  in  1993  and  the  Stabilisation  and  Association 
Process requirements established by the Council in 1997. 

In  the  light  of  the  Commission's  analysis,  the  European  Council  decides  to  grant  candidate 
country  status  to  the  former  Yugoslav  Republic  of  Macedonia,  taking  into  account,  in 
particular,  the  substantial  progress  made  in  completing  the  legislative  framework  related  to 
the Ohrid Framework Agreement, as well as its track record in implementing the Stabilisation 
and Association Agreement (including its trade-related provisions) since 2001. 

The European Council makes clear that further steps will have to be considered in the light of 
the  debate  on  the  enlargement  strategy,  as  provided  for  by  the  Council  conclusions  of  12 
December  2005;  of  compliance  by  the  former  Yugoslav  Republic  of  Macedonia  with  the 
Copenhagen political criteria; of the requirements of the Stabilisation and Association Process 
and the effective implementation of the Stabilisation and Association Agreement; and of the 
need for further significant progress to respond to the other issues and criteria for membership 
included  in  the  Commission's  Opinion  and  implementation  of  the  priorities  in  the  European 
Partnership, on the basis of specific benchmarks. The absorption capacity of the Union also 
has  to  be  taken  into  account.  The  European  Council  invites  the  Commission  to  report  on 
developments in future progress reports.” 

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2. 

PROGRAMMING  AND  IMPLEMENTATION  OF  THE  PROGRAMMES:  GENERAL 
OVERVIEW 

2.1. 

Phare and Pre-Accession for Turkey 

Total actual commitments amounted to €1178.96 million, comprising: 

National Programmes 

cross border co-operation 

regional  and  horizontal  programmes 
(including TAIEX) 

nuclear safety 

Bulgaria – Kozloduy 
Decommissioning 

Bulgaria/Romania supplementary 
allocation (floods) 

€921 million

€80 million

€84.75 million

€6.31 million

€50 million

€36.9 million

National programmes were divided as follows: 

Bulgaria 

Romania 

Croatia 

Turkey 

€ 174.9 million

€ 396.9 million

€ 71.5 million

€ 277.7 million

Detailed  information  about  Phare  in  each  country  and  Pre-accession  financial  assistance  for 
Turkey can be found in the Annex - Part I: Country section- to this report. 

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2.2. 

Transition Facility 

The  ten  countries  which  used  to  receive  pre-accession  financial  assistance  under  Phare  (or 
specific  pre-accession  facilities  in  the  cases  of  Cyprus  and  Malta)  instead  benefited  for  the 
first time in 2004 from a special Transition Facility for institution building aimed at allowing 
the  then  new  Member  States  to  strengthen  and  consolidate  institutional  and  administrative 
capacity  to  implement  the  acquis  communautaire  and  thus  continue  the  institution-building 
measures initiated under Phare. 

instrument.  Programming 

The Transition Facility was created by article 34 of the Act of Accession, as a temporary post 
accession  financial 
the 
Commission’s Comprehensive Monitoring Report (November 2003). The article gives a non-
exhaustive  list  of  examples  of  key  acquis  where  weaknesses  may  still  persist,  but  also 
excludes  any  area  which  is  eligible  for  funding  under  the  Structural  Funds.  Reflecting 
continuity with Institution Building support funded by Phare, part of each annual envelope of 
the Transition Facility has been allocated to certain multi-beneficiary programmes. 

is  based  on  needs 

identified 

in 

Total commitments amounted to €128.1 million, comprising: 

National Programmes 

€116.6 million

Multi-country 
programmes 

and 

horizontal 

€11.5 million

National programmes were divided as follows: 

Cyprus 

Czech 
Republic 

Estonia 

Hungary 

Malta 

Latvia 

Lithuania 

Poland 

Slovenia 

Slovakia 

€6.4 million

€11.8 million

€5.6 million

€10.8 million

€5.9 million

€8.8 million

€9.3 million

€42.9 million

€5.1 million

€10.0 million

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2.3.  Moving towards Extended Decentralisation Implementation System (EDIS)  

The Commission's objective is to enable the recipient countries of Phare assistance to manage 
Community  funds  under  the  extended  decentralisation  system  ("EDIS")  in  order  to  acquire, 
before  accession,  sufficient  practical  experience  in  the  management  of  a  fully  decentralised 
system,  and  thus  prepare  them  to  manage  effectively  structural  funds  upon  accession  (in  a 
shared management environment). 

The  acceptance  by  the  Commission  of  Phare  implementing  agencies  operating  under  EDIS 
(on  a  fully  decentralised  basis)  will  be  given  upon  demonstration  of  having  appropriate 
resources,  structures  and  systems  in  place  for  the  effective  and  timely  management  of 
Community assistance. 

Concerning the new Member States all had been EDIS “accredited” by the end of first quarter 
2005, thus allowing the Commission to lift its ex-ante control on tendering and contracting for 
ongoing PHARE programmes. The Commission is closely monitoring the situation to address 
all issues on management and control systems that were raised pursuant to the Commission 
audits conducted in 2003 and 2004. 

Concerning  Bulgaria  and  Romania,  Phare  assistance  is  currently  still  implemented  in  a 
partially  decentralised  way,  through  the  partially  decentralised  implementation  system 
("DIS"),  where  the  national  authorities  as  contracting  authorities  are  responsible  for  all 
implementation and paying functions, while the EC Delegation maintains the systematic ex-
ante  control  requirement  by  over  each  tendering  and  contracting.  However,  the  national 
authorities in both countries acknowledge their responsibility for ensuring robust systems for 
managing  and  controlling EU funds across the  administration,  and  make  further  progress  in 
their preparation to prepare for EDIS. 

• 
In  Bulgaria,  a  full  application  for  EDIS  accreditation  will  be  submitted  after  the 
successful  implementation  of  Stage  3  “Compliance  Assessment”  which  was  finalised  in 
March  2006.  Accreditation  is  scheduled  for  end  2006,  although  it  is  expected  for  the  first 
quarter 2007. 

• 
In  Romania,  the  authorities  submitted  a  formal  application  requesting  EDIS  to  the 
Commission  at  the  end  of  December  2005  (with  the  on-the-spot  verification  by  DG 
Enlargement  audit  services  in  the  second  half  of  March  2006).  Accreditation  is  expected 
towards the end of 2006. 

For Croatia, Phare will be implemented under decentralised implementation system (DIS). On 
25  May  2005,  Croatia  submitted  a  request  to  the  Commission  for  accreditation  of  its  DIS 
system for Phare. Subsequently, the Commission audit services of DG Enlargement assessed 
the  national  and  sectoral  programme/project  management  capacity,  financial  control 
procedures and structures regarding public finance in Croatia. Based on this assessment, the 
Commission  decided  in  February  2006  to  confer  the  management  of  Phare  on  a  partially 
decentralised basis to the designated Croatian body in the Ministry of Finance. 

Turkey moved to a DIS (decentralised implementation system) in October 2003, with the 
indicative target to proceed with EDIS in 2007. 

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2.4. 

Co-ordination of the Community Pre-accession assistance 

•  SAPARD1 

(Special  Accession  Programme 

the  acquis  communautaire  concerning 

for  Agriculture  and  Rural 
Development)  aims  to  help  candidate  countries  deal  with  the  problems  of  the 
structural  adjustment  in  their  agricultural  sectors  and  rural  areas,  as  well  as  in 
implementing 
the  CAP  (Common 
Agricultural  Policy)  and  related  legislation.  Detailed  information  on  SAPARD 
activities  can  be  found  in  the  SAPARD  annual  report.  ISPA2  (Instrument  for 
Structural  Policies  for  Pre-Accession)  is  directed  mainly  towards  aligning  the 
applicant countries on Community infrastructure standards. It also finances major 
environmental and transport infrastructure. 

•  Detailed information on ISPA activities can be found in the ISPA annual report. 
The Commission’s Co-ordination Committee for the 3 pre-accession instruments, 
set  at  Directors  level,  has  not  officially  convened  during  2005,  although  several 
meetings have taken place notably in view of creation of the new Instrument for 
Pre-Accession  (IPA)  and  its  relevant  components3  A  General  Assistance 
Document,  through  which  the  Commission  informed  the  Phare  Management 
Committee  of  the  co-ordination  of  pre-accession  aid  in  2005  and  planned 
assistance  for  2006,  was  presented  to  Member  States  at  the  Phare  Management 
Committee on 19 May 2005. In particular, this document provided the indicative 
financial  allocations  for  the  year  for  each  country  in  relation  to  the  three 
instruments,  information  on  co-ordination  with  EIB  and  IFIs  and  about  progress 
and  perspectives  for  decentralised  management.  A  separate  annual  report  on  co-
ordination of pre-accession assistance provides more detailed information on co-
ordination between PHARE, ISPA and SAPARD. 

1 
2 
3 

For general information on SAPARD, we refer to the website of DG Agriculture. 
For general information on ISPA, we refer to the website of DG Regional policy. 
Of the proposed 6 external relations instruments that are due to apply in the period 2007-2013, one is 
the new instrument for pre-accession assistance, IPA. At the junction between external assistance and 
internal policies, the IPA intends to facilitate the entry into the Union of candidate countries (Turkey, 
Croatia and the former Yugoslav Republic of Macedonia) and potential  candidate countries (Albania, 
Bosnia  and  Herzegovina,  Montenegro,  and  Serbia  including  Kosovo  under  UN  Security  Council 
Resolution 1244). IPA will be an accession driven instrument, fulfilling all the requirements stemming 
from the accession process, notably in terms of priorities, monitoring and evaluation. IPA will replace 
the  current  pre  accession  instruments  notably:  Phare,  the  scope  of  which  is  support  for  the 
implementation  of  the  acquis  communautaire  in  the  form  of  institution  building  and  related 
investments, investments in economic and social cohesion and cross-border cooperation; ISPA, which 
is  the  precursor  of  the  Cohesion  Fund  and  deals  with  environment  and  transport  infrastructure; 
SAPARD, the precursor of Rural Development plans, dealing with Common Agricultural Policy acquis 
and Rural development, Turkey pre-accession, with the same scope as Phare; CARDS, which covers the 
Western Balkans. 

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3. 

CO-OPERATION WITH THE EIB AND INTERNATIONAL FINANCIAL INSTITUTIONS 

The Commission consults the international financial institutions ("IFIs") and bilateral donors 
regularly  throughout  the  programming  cycle,  to  identify  the  scope  for  joint  activities  and 
complementary approaches to addressing pre-accession priorities. 

The  cooperation  and  co-financing  of  projects  with  the  EIB  and  other  IFIs,  in  particular  the 
European  Bank  for  Reconstruction  and  Development  ("EBRD"),  the  World  Bank  and  the 
Council of Europe Development Bank ("CEB"; in cooperation with the German Kreditanstalt 
für Wiederaufbau "KfW"), is organized under the amended Memorandum of Understanding 
between the European Commission and participating IFIs for the enlargement countries of 20 
May 2003.  

In the Phare context, the possibilities of IFI co-financing for investment projects at national 
programme  level  are  limited,  since  the  programming  mechanisms  for  Phare  and  the  loan 
allocation  mechanisms  are  quite  different  in  timing.  However,  a  close  co-operation  is 
maintained  with  the  IFIs  to  ensure  that  a  sound  and  sustainable  framework  is  defined 
permitting loan financing, wherever this is more appropriate than funds financing so ensuring 
additionality between the two financing modes.  

Concerning  horizontal  programmes  financed  under  Phare,  the  ten  Phare  countries  were 
eligible  before  2005.  The  new  programmes  launched  since  2005  cover  only  4  countries: 
Romania, Bulgaria, Croatia and Turkey. The technical nature and the multi-country approach 
of the successive horizontal finance facilities required the involvement of highly-specialised 
financial  institutions,  with  a  long  track  record  in  international  finance,  SME  and  Municipal 
sector  development.  The  preference  was  for  financial  institutions  with  the  status  of 
international public-law bodies, which shared the values of the EU, in particular, in relation to 
enlargement  and  had  similar  public  policy  objectives,  rather  than  private-sector  financial 
institutions looking for commercial investment terms.  

The  first  facility  programme  was  launched  in  1999  with  the  EBRD.  The  CEB,  which 
implements the programme in co-operation with KfW, and the EIB have joined the Facility 
programmes in the following years. Since 1999, 23 Facility programmes have been initiated 
by the Commission. 

–  14  SME  Finance  Facilities  comprising  in  total  €323  million  of  EU  incentives  and 
€2,039.25 million of credit lines from the IFIs. As of end-February 2006, €267 million of 
EU incentives are already earmarked into projects. 

–  9  Municipal  Finance  Facilities  comprising  a  total  of  €100  million  of  EU  incentives  and 
€500  million  of  loans  from  the  IFIs.  As  of  end-February  2006;  €37.5  million  of  EU 
incentives are already earmarked into projects.  

The  SME  Finance  Facility  is  a  multi-beneficiary  programme  which  aims  to  strengthen  the 
capacities  of  financial  intermediaries  (i.e.  banks,  leasing  companies)  in  the  beneficiary 
countries  (New  Member  States  and  the  Candidate  Countries),  to  expand  and  sustain  their 
financing operations to SMEs.  

The  mechanism  of  the  Municipal  Finance  Facility  is  similar  to  the  SME  Finance  Facility 
mechanism. Loan and risk-sharing instruments from resources of IFIs are combined with non-

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reimbursable  financial  incentives  for  local  financial  intermediaries.  It  is  also  foreseen  that  a 
limited  amount  of  technical  assistance  for  municipalities  will  be  funded  by  Phare  to 
strengthen the demand side of the municipal credit market. 

The EIB and the Commission have established a facility at border regions, as requested by the 
Nice  European  Council,  and  as  outlined  in  the  Commission  Communication  on  Border 
Regions of 25 July 2001. The project concentrates on the implementation of small municipal 
infrastructure in border regions to promote integration with current EU regions: It consists of 
2  Municipal  Infrastructure  programmes  comprising  a  total  of  €50  million  of  EU  incentives 
and €250 million of loans from the EIB. This programme is only implemented with the EIB in 
border regions and is still in the process of implementation.  

4. 

MONITORING AND EVALUATION 

The  monitoring  and  evaluation  function  aims  firstly  to  monitor  and  evaluate  the  financial 
support  to  the  beneficiary  countries  in  achieving  pre-accession  objectives  by  assessing  the 
programme  performance  and  deriving  lessons  learned.  Secondly,  it  provides  accountability 
with respect to the value of money and the use of pre-accession funds. A third objective is to 
support the development of local monitoring and evaluation capacity in beneficiary countries 
as a means to strengthen their capacity to manage and control pre-accession aid. 

4.1. 

Ex ante evaluation 

During  2005,  an  ex-ante  evaluation  exercise  of  the  Instrument  for  Pre-accession  Assistance 
(IPA) was prepared. The exercise will start in 2006 and serve as an input into the preparation 
of the IPA Multi-annual Indicative Planning Documents.  

4.2.  Monitoring and Interim Evaluation  

In 2005, the interim evaluation (IE) schemes in Romania, Bulgaria and Turkey managed by 
the  Evaluation  unit  of  DG  ELARG  generated  34  individual  country,  sectoral,  ad-hoc  or 
thematic  evaluation  reports  covering  Phare  and  other  pre-accession  financial  instruments 
measures.  Steps  were  also  taken  to  launch  an  interim  evaluation  scheme  in  Croatia.  The 
Interim  Evaluation  reports  on  financial  support  in  2005  showed  that  the  performance  of 
Bulgaria,  Romania  and  Turkey  pre-  accession  assistance  was  rather  mixed.  A  significant 
number of programmes were only rated as barely satisfactory. 

Results and impacts on several sectors have been mixed. Notable exception is the Justice & 
Home  affairs  sector  where  the  immediate  results  of  the  majority  of  the  assistance  were 
significant but with less evident impact on the society as a whole. Other sectors with positive 
results included internal market and agriculture. By contrast, the overall results and impact of 
preparing beneficiaries to manage the structural funds have been limited. 

The main findings of the evaluation of Phare assistance to Roma minorities are that Phare has 
been able to support integrationist projects for the Roma, which have contributed to opening 
up  a  civil  dialogue  and  which  have  achieved  some  initial  results  especially  in  institution- 
building.  Twinning  has  continued  to  serve  as  an  essential  instrument  for  the  pre-accession 
process. 

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4.3. 

Ex post evaluation 

In 2005, the external ex post evaluation exercise of Phare programmes, comprised of national, 
cross-border  and  multi-beneficiary  programmes,  started.  The  exercise  is  scheduled  to  be 
completed by the end of 2006. 

5. 

OTHER ACTIVITIES 

A number of other activities were undertaken by the Commission services in order to improve 
the  quality  of  the  programmes  for  the  year  2005,  as  well  as  to  support  the  development  of 
local monitoring and evaluation capacity. Specific actions are described in Annex Part II.3. 

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