2007/460/EC: Decision No 1/2007 of the ACP-EC Council of Ministers of 25 May 2007 on reassigning part of the reserve of the Ninth European Development Fund (EDF) envelope for long-term development to the allocation for intra-ACP cooperation in the Ninth EDF envelope for regional cooperation and integration
Date: 2007-05-25
Institutions: ACP Council of Ministers
Subjects: ACP countries, European Development Fund, cooperation policy, development aid, regional cooperation, regional integration

5.7.2007

EN

Official Journal of the European Union

L 175/31

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

DECISION No 1/2007 OF THE ACP-EC COUNCIL OF MINISTERS

of 25 May 2007

on reassigning part of the reserve of the Ninth European Development Fund (EDF) envelope for
long-term development to the allocation for intra-ACP cooperation in the Ninth EDF envelope for
regional cooperation and integration

(2007/460/EC)

THE ACP-EC COUNCIL OF MINISTERS,

in export earnings regardless of the level of the uncom-
mitted balances under their national B-envelopes.

Having regard to the Partnership Agreement between the
members of
the African, Caribbean and Pacific Group of
States of the one part, and the European Community and its
Member States, of the other part, signed in Cotonou on 23 June
2000 (1) as revised by the Agreement (2) amending the said
ACP-EC Partnership Agreement, signed in Luxembourg on 25
June 2005, and in particular paragraph 8 of Annex I thereto,

Whereas:

(1)

(2)

(3)

Following the completion of the Ninth European Devel-
opment Fund (EDF) end-of-term review in accordance
with Articles 5 and 11 of Annex IV of the ACP-EC
Partnership Agreement,
the resource allocation should
be revised in the light of current needs and performance.

The funds reserved for the financing of support
for
regional cooperation and integration and the expected
decommitments transferred to this reserve before the
end of 2007 are insufficient
to meet new needs for
increasing the impact of intra-ACP activities.

Additional funds should be allocated to set up an intra-
ACP funding mechanism for FLEX for each of the years
2006 and 2007 (application years 2005 and 2006
to
respectively),
those countries subject to the adverse effects of instability

ensuring minimal

support

thereby

(1) OJ L 317, 15.12.2000, p. 3.
(2) OJ L 209, 11.8.2005, p. 27. Agreement provisionally applied
pursuant to Decision No 5/2005 (OJ L 287, 28.10.2005, p. 1).

(4)

(5)

(6)

(7)

to create five regionalised B-envelopes

The uncommitted balances of the national B-envelopes
may not cover expected needs and should be transferred
to the intra-ACP reserve at the date of adoption of this
Decision,
to
finance future humanitarian and emergency assistance
in each of these regions, based on regional solidarity,
and an intra-ACP reserve for emergency assistance
under Article 72(3)(a) and (b) of the ACP-EC Partnership
Agreement
in exceptional circumstances where such
assistance cannot be financed from the Community
budget.

The regionalised B-envelope for Eastern and Southern
Africa and the Indian Ocean is a net amount after the
deduction of EUR 20 million to compensate for the ad
hoc increase in the B-envelope of Sudan funded out of
reserve; no regionalised
the
long-term development
B-envelope is being set up for
the
the Pacific as
balances of the B-envelopes have already been used to
a large extent for a regional natural disaster mitigation
programme.

Additional resources should be allocated to replenish the
African Peace Facility for the year 2007.

Additional resources should be allocated to finance part
of the running costs of the ACP Secretariat for the year
2008 to bridge the period until the entry into force of
the Tenth EDF.

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Official Journal of the European Union

5.7.2007

(8)

(9)

Additional resources should be allocated to reinforce the
intra-ACP
cooperation facility, which is
primarily used to cover technical assistance needs, espe-
cially for project preparation.

technical

An additional contribution to the Global Fund against
HIV/AIDS, Tuberculosis and Malaria (GFATM) has been
requested.

(10) A need for a further contribution to the Caribbean
Knowledge and Learning Network has been identified
at
the ACP-EC Council of 2 June 2006 for capacity
building and institutional support.

All funds set aside under the reserve to support the CDE
2.
and CTA budgets for 2008 to fund ‘high risk programmes’ in
countries with a signed country strategy paper and to fund
political priorities
in countries without a signed country
strategy paper as referred to in paragraph 1 that have not
been committed by 31 October 2007 shall be transferred to
the intra-ACP reserve in the envelope for regional cooperation
and integration.

3.
All decommitments from the Ninth EDF and previous
EDFs initiated in the accounting system of the Commission as
from 1 April until 31 December 2007 which accrue to the
long-term development
reserve shall be transferred to the
intra-ACP reserve in the envelope for regional cooperation
and integration.

(11) A small prudential reserve must be established to be able
to meet new and unexpected intra-ACP needs in the
period to 31 December 2007,
including possible post
natural disaster rehabilitation needs in the Pacific region
which can be committed before the end of 2007 and
cannot be covered by a regionalised B-envelope for
unforeseen needs, and to meet possible additional transi-
tional needs in 2008.

(12)

Funds under the Ninth EDF, including expected decom-
mitments, can no longer be committed beyond 31
December 2007 and a mechanism has to be found to
commit available balances before that date in an efficient
and effective way in support of the overall objectives of
the ACP-EC Partnership Agreement,

HAS DECIDED AS FOLLOWS:

Article 1

Replenishment of the intra-ACP reserve in the envelope
for regional cooperation and integration

1.
All funds available in the long-term development reserve
on 31 March 2007 and adjusted for the results of the end of
term decisions which had not yet been processed in the
accounts at
the funds to
that date, with the exception of
support the Centre for the Development of Enterprise (CDE)
and the Technical Centre for Agricultural and Rural Cooperation
(CTA) budgets for 2008 (EUR 32 million), the funds for ‘high
risk programmes’
in countries with a signed country strategy
paper (EUR 72,4 million as of 1 March 2007), the funds for
political priorities in countries without a signed country strategy
paper (EUR 30,2 million as of 1 March 2007) and the funds for
the Somalia special assistance programme (EUR 36,1 million),
shall be transferred to the intra-ACP reserve in the envelope for
regional cooperation and integration.

All

remaining

funds under

4.
indicative
programmes that become available under the long-term devel-
opment reserve between 1 August and 31 December 2007 shall
be transferred to the intra-ACP reserve in the envelope for
regional cooperation and integration.

the national

Article 2

Allocation of the intra-ACP funds

The funds available in the intra-ACP reserve shall be used

1.
for the following purposes:

(a)

setting up:

(i) one intra-ACP reserve open to all ACP States for
emergency assistance under Article 72(3)(a) and (b) of
in exceptional
the ACP-EC Partnership Agreement
circumstances where
be
cannot
such
financed from the Community budget; this envelope
to EUR 26 741 326 and shall be
shall
constituted by taking 15 % of the amounts of uncom-
mitted balances remaining in the B-envelopes of the
constituent countries of
referred to
under point (ii) at the date the end-of-term reallocation
decisions entered into force;

those regions

assistance

amount

(ii) five

amounting

regionalised B-envelopes

to EUR
17 511 615 for
the Southern African region, EUR
48 920 391 for the region of Eastern and Southern
Africa and the Indian Ocean, EUR 31 945 340 for the
West African region, EUR 16 139 355 for the Central
African region and EUR 35 422 478 for the Caribbean
region, based on 85 % of the amounts of uncommitted
balances
the
constituent countries of those regions at the date the
end-of-term reallocation decisions entered into force;

the B-envelopes

remaining

of

in

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the regionalised B-envelopes shall be mobilised for contri-
butions to internationally agreed debt relief initiatives as
provided for in Article 3(2)(b) of Annex IV to the ACP-
EC Partnership Agreement and for humanitarian and
emergency assistance in accordance to Articles 72 and 73
the ACP-EC Partnership Agreement on the basis of
of
regional
solidarity in exceptional circumstances where
such assistance cannot be financed from the Community
budget;

(b) setting up an intra-ACP FLEX programme of EUR 50
to
million for 2006 (application year 2005)
ensure minimal support to those countries subject to the
adverse effects of instability in export earnings regardless of
the level of the uncommitted balances under their national
B-envelopes before the end-of-term review reallocation
decisions entered into force;

in order

(c)

for various peace support,

replenishing the African Peace Facility for an amount of up
to EUR 100 million as a further EDF contribution to bridge
the financial gap until the entry into force of the Tenth
EDF,
training and capacity-
building activities, of which EUR 45 million on the basis
of the available intra-ACP funds before its replenishment
referred to in Article 1 and EUR 35 million after this
replenishment, and an additional amount of up to EUR
20 million which may be financed by uncommitted funds
from the prudential reserves referred to in points (h) and (i)
or by decommitments transferred to the intra-ACP reserve
under Article 1(3) and (4) in excess of initial estimates;

(d) complementing the institutional support given to the ACP
Secretariat in order to bridge the period until the entry into
force of the Tenth EDF with an amount of EUR 5,5 million
to contribute to the running costs of the ACP Secretariat
for the year 2008;

(e) adding EUR 2,5 million to the intra-ACP technical coop-

eration facility;

(f) mobilising EUR 4 million as an urgent carry-over of a

rinderpest eradication programme in Africa (PACE);

(g) contributing an additional EUR 5 million to the Caribbean
Knowledge and Learning Network (CKLN) trust fund for
capacity building and institutional support;

(h) setting up a regional prudential reserve of EUR 10 million
to supplement the regional
indicative programme for the
Southern African region in the case of the Milange–Mocuba

(i)

(j)

road upgrading programme (Mozambique) being appraised
and passing the management procedure of
the EDF
Committee before 1 August 2007;
this programme
cannot be appraised in time, this prudential reserve shall
be transferred to the intra-ACP reserve;

if

setting up an intra-ACP prudential reserve of EUR 15
million for new and unexpected needs which cannot be
including for
funded from the regionalised B-envelopes,
post natural-disaster
in the
Pacific region and possible additional priority transitional
needs in 2008;

rehabilitation programmes

to the adverse effects of

setting up an intra-ACP FLEX programme, provisionally
fixed at EUR 35 million for 2007 (application year 2006)
to those countries
in order to ensure minimal support
instability in export
subject
earnings after the regionalisation of the B-envelopes for
humanitarian and emergency assistance referred to in
paragraph 1(a); this programme may be supplemented by
up to EUR 15 million by uncommitted funds from the
prudential reserves referred to in points (h) and (i) or by
decommitments transferred to the intra-ACP reserve under
Article 1(3) and (4) in excess of initial estimates and the
need to complement the contribution to the African Peace
Facility by EUR 20 million as referred to in point (c);

(k) complementing the support given to the Global Fund
against HIV/AIDS, Tuberculosis and Malaria (GFATM) with
an amount of EUR 38 million.

2.
Should the amounts accrued to the intra-ACP reserve be
insufficient to cover all needs identified, the programme referred
to in paragraph 1(j) shall be reduced accordingly. Should the
shortfall of funds be larger than the amount referred to in point
(j), the prudential reserve referred to in paragraph 1, point (i)
shall be reduced accordingly. A further shortfall of funds shall
lead to a reduction of the amount referred to in paragraph 1(c).

Should the amounts accrued to the intra-ACP reserve
3.
exceed the initial estimates or should funds earmarked under
paragraph 1, points (c), (d), (e), (g) and/or (i) be under-used, the
additional funds becoming available above the ceiling set for the
programmes referred to in paragraph 1, points (c) and (j) will be
mobilised to top up the CKLN trust fund with an additional
amount of up to EUR 5 million, if feasible, and subsequently, if
excess funds are still available, to top up the EU-ACP Infra-
structure Trust Fund as
allocations
foreseen under the Tenth EDF.

an advance on the

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Article 3

Request for support

In accordance with Article 13(2) of Annex IV of the ACP-EC Partnership Agreement, the ACP-EC Council of
Ministers calls on the Commission to finance the actions laid down in Article 2.

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

Article 4

Entry into force

Done at Brussels, 25 May 2007.

For the ACP-EC Council of Ministers
The President

Mohlabi K. TSEKOA