Commission Regulation (EC) No 1424/2007 of 4 December 2007 amending Regulation (EC) No 2304/2002 implementing Council Decision 2001/822/EC on the association of the overseas countries and territories with the European Community and allocating the indicative amounts under the 10th European Development Fund
Date: 2007-12-04
Institutions: European Commission
Subjects: European Development Fund, aid system, association agreement (EU), financial aid, overseas countries and territories

L 317/38

EN

Official Journal of the European Union

5.12.2007

COMMISSION REGULATION (EC) No 1424/2007

of 4 December 2007

amending Regulation (EC) No 2304/2002 implementing Council Decision 2001/822/EC on the
the overseas countries and territories with the European Community and
association of

allocating the indicative amounts under the 10th European Development Fund

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Decision 2001/822/EC on the asso-
ciation of
the overseas countries and territories with the
European Community (Overseas Association Decision) (1), and
in particular Article 23 thereof,

Having regard to Commission Regulation (EC) No 2304/2002
of 20 December 2002 implementing Council Decision
2001/822/EC of 27 November 2001 on the association of
the overseas countries and territories with the European
Community (Overseas Association Decision) (2),

the Governments of

Having regard to the Internal Agreement between the Represen-
tatives of
the Member States meeting
within the Council on the financing of Community aid under
the multiannual framework for the period 2008 to 2013 in
accordance with the ACP-EC Partnership Agreement and the
allocation of
financial assistance for the Overseas Countries
and Territories to which Part Four of the EC Treaty applies (3)
(hereinafter referred to as Internal Agreement establishing the
10th EDF),

Having regard to the Financial Regulation applicable to the 10th
EDF (4),

Whereas:

(1)

The provisions of Regulation (EC) No 2304/2002
adopted pursuant to Article 23 of the Overseas Asso-
ciation Decision should be brought into line with the
amendments to that Decision, in the light of the newly
established 10th European Development Fund (here-
inafter referred to as 10th EDF). They should also be
brought into line with the revision of the corresponding
Articles in Annex IV of
the Partnership Agreement
between, on the one hand the members of the African,
Caribbean and Pacific Group of States, and on the other

(1) OJ L 314, 30.11.2001, p. 1. Decision as amended by Decision

2007/249/EC (OJ L 109, 26.4.2007, p. 33).

(2) OJ L 348, 21.12.2002, p. 82.
(3) OJ L 247, 9.9.2006, p. 32.
(4) Not yet published — COM(2007) 410 final, 16.7.2007.

(2)

(3)

(4)

(5)

hand the European Community and its Member States,
signed in Cotonou on 23 June 2000 (5)
(the ACP-EC
Partnership Agreement).

Taking into account the specific needs, capabilities and
constraints of the overseas countries and territories (here-
inafter referred to as OCTs), 10th EDF financial assistance
to the OCTs should be granted as budgetary support,
provided the OCTs management of public expenditure
presents sufficient transparency, accountability and effec-
tiveness. In addition, the public procurement procedures
of the OCTs should satisfy the standards of the 10th EDF
Financial Regulation as to transparency and openness.
On the basis of the experience acquired under the 9th
EDF, 10th EDF financial assistance should only in excep-
tional circumstances be provided as support for projects
or programmes, namely when the
for
budgetary support are not met.

conditions

As a condition for their adoption, it should be verified
that the Single Programming Documents (SPDs) contain
all the elements required for the Commission to take the
financing decision referred to in Article 20(4) of the
Overseas Association Decision.

In accordance with Article 3(1) of Annex II Aa to the
Overseas Association Decision, the SPDs should, where
appropriate, pay particular attention to actions aimed at
strengthening the governance and the institutional capa-
cities of the beneficiary OCTs and, where relevant, to the
likely timetable of the envisaged actions, including in the
financial, tax and judicial areas.

Provision should be made for the programming of the
allocation under the 10th EDF to support regional coop-
eration and integration, with a view to enhancing the
resilience of the OCTs in coping with the challenges
that they are facing as small
island micro-economies,
for example by means of regional disaster preparedness
and mitigation initiatives.
In this connection, coordi-
nation should be ensured in particular between support
for regional cooperation and integration and support at
territorial level. Special attention should also be paid to
cooperation between the OCTs, the ACP States and, in
other
coordination
financial
referred to in
the outermost
instruments,
Article 299(2) of the Treaty.

Community

regions

with

(5) OJ L 317, 15.12.2000, p. 3. Agreement as last amended by Decision
No 1/2006 of the ACP-EC Council of Ministers (OJ L 247, 9.9.2006,
p. 22).

5.12.2007

EN

Official Journal of the European Union

L 317/39

(6)

(7)

(8)

The indicative amounts allocated to the beneficiary OCTs
under the 10th EDF should be determined in accordance
with Article 3(5) of Annex II Aa to the Overseas Asso-
ciation Decision.

The measures provided for in this Regulation have been
subject to consultation with the OCTs.

The measures provided for in this Regulation are in
EDF-OCTs
accordance with
the
Committee established by Article 24 of
the Overseas
Association Decision,

opinion

the

of

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2304/2002 is amended as follows:

1. Article 1 is replaced by the following:

‘Article 1

Subject matter

and

the
This Regulation lays down the procedures
programming,
the
control
implementation
Community financial assistance to the overseas countries
and territories (OCTs) managed by the Commission under
the Tenth
in
accordance with the provisions of the Overseas Association
Decision and the Financial Regulation applicable to the
10th EDF.’

European Development

for
of

(EDF),

Fund

2. Article 3 is replaced by the following:

‘Article 3

Territorial programming

Operations financed by non-repayable aid under the 10th
EDF within the framework of
the Overseas Association
Decision shall be programmed as soon as possible after
the entry into force of the Internal Agreement establishing
the adoption of an SPD
the 10th EDF by means of
following the model in the Annex to this Regulation.’

3. Article 4 is replaced by the following:

‘Article 4

Preparation of the SPD

The competent OCTs authorities

shall prepare a
1.
proposal
for the SPD following consultations with the
widest possible range of stakeholders in the development
process, and shall draw on lessons
learned and best
practices.

Each proposal for an SPD shall be adapted to the needs and
specific circumstances of each OCTs.
identify
results-oriented indicators to be monitored and promote
local ownership of cooperation programmes.

shall

It

2.
The proposal for the SPD shall be the subject of an
exchange of views between the OCTs and Member State
concerned and the Commission, via,
the
relevant Delegation.

if applicable,

The OCTs shall provide all
including the results of any feasibility studies,
the appraisal of
effective as possible.

the necessary information,
to make
the draft SPD by the Commission as

The 10th EDF financial allocation shall in principle be
3.
provided as budgetary support, save in exceptional and duly
justified circumstances.

Where the conditions for budgetary support are not met,
the SPD shall provide for measures to create the conditions
for budgetary support.

Any divergences between the OCTs’s own analysis and the
Community’s shall be noted.’

4. Article 5 is replaced by the following:

‘Article 5

Appraisal of the SPD by the Commission

The Commission shall appraise the proposal for the SPD to
determine whether it contains all the elements required and
is consistent with the aims of the Overseas Association
relevant
Decision,
Community policies.

this Regulation and

the

of

of

The Commission shall also appraise the proposal for the
the elements
SPD to determine whether it contains all
required for
financing
the
the Commission to take
decision referred to in Article 20(4) of the Overseas Asso-
ciation Decision.

It shall inform the European Investment Bank of the draft
received.

Without prejudice to Article 4(3), the Commission shall
decide whether 10th EDF financial assistance is to be
granted as budgetary support, subject
to a preliminary
assessment of the transparency, accountability and effec-
the
tiveness of public expenditure management and of
openness and transparency of public procurement
in
in the Financial
accordance with the standards set out
Regulation applicable to the 10th EDF, or
to be
is
granted as support for programmes or projects.’

L 317/40

EN

Official Journal of the European Union

5.12.2007

5. Article 6 is replaced by the following:

‘Article 6

Regional programmes

Overseas Association Decision, any OCTs which considers
itself to be eligible for the support provided for therein
submit a complete request on the forms made
shall
available by the Commission and include all
the infor-
mation needed for it to be assessed.

Articles 3 to 5 shall apply mutatis mutandis to the
1.
financial support for regional cooperation and integration
under Article 3(2) of Annex II Aa to the Overseas Asso-
ciation Decision.

The request shall be submitted to the Commission at the
latest by the end of the year following the year for which
the additional support is required.

In its assessment of the proposals, the Commission shall
take particular account of the anticipated impact on the
integration of the beneficiary OCTs within the region to
which they belong.

As far as possible, coordination shall be ensured with
programmes at territorial level and with actions involving
ACP countries and/or the outermost regions referred to in
Article 299(2) of the Treaty. This may involve the identifi-
cation of
the
purpose of strengthening cooperation with ACP countries
and/or outermost regions, and the modalities for identifying
and coordinating the selection of common interest actions.

the priorities and specific resources for

The Commission shall inform the OCTs within the shortest
possible time of its decision.’

7. Article 8 is replaced by the following:

‘Article 8

Commitments

1.
Expenditure on financial assistance for the OCTs shall
be committed by the Commission in accordance with the
Financial Regulation applicable to the 10th EDF.

Commitment of expenditure shall be preceded by a
Commission financing decision covering support
for
projects and programmes.

2. Within the scope of the SPD, commitment of expen-
diture shall be preceded by a Commission financing
decision covering in principle budgetary support, save in
exceptional and duly justified circumstances.

2.
In order to achieve an adequate scale and to increase
efficiency, regional and territorial funds may be mixed for
financing regional programmes with a distinct territorial
component.

Articles 8 and 16 to 30 apply

3.
programmes mutatis mutandis.’

to regional

3.
Outside the scope of the SPD, expenditure under the
non-allocated reserve B set aside in accordance with Article
3(4) of Annex II Aa to the Overseas Association Decision
shall be committed by the Commission and implemented
in accordance with the Financial Regulation applicable to
the 10th EDF.’

8. Article 9 is replaced by the following:

6. Article 7 is replaced by the following:

‘Article 7

Use of the reserve

1.
The Commission shall allocate resources from reserve
B for the purposes referred to in Article 3(4)(b) of Annex II
Aa to the Overseas Association Decision on the basis of the
mid-term review referred to in Article 22 of this Regu-
lation. The Commission shall
indicative
amounts already allocated accordingly and inform the
OCTs and the Member States of
its decision regarding
the new allocations.

adjust

the

2.
For
provided for

the purposes of

committing the

in Article 28 and Annex II D of

resources
the

‘Article 9

Paying agents

institutions in the OCTs with which the
The financial
Commission opens accounts
in accordance with the
Financial Regulation applicable to the 10th EDF for the
purposes of
implementing cooperation with the OCTs
shall exercise the functions of “Paying Agents”.

Interest shall be payable on funds deposited with Paying
Agents in the Community.

The Paying Agents shall receive no remuneration for their
services and no interest shall be payable on deposited
funds.’

5.12.2007

EN

Official Journal of the European Union

L 317/41

9. Article 10 is replaced by the following:

‘Article 10

General regulations for contracts

The procedures governing the award of contracts

1.
shall be indicated in the financing agreements.

2. Where financial assistance is granted by means of
budgetary support, the procedures for public procurement
of the OCTs in question shall apply.

3.
In all other cases, award of contract shall follow the
applicable provisions of the Financial Regulation applicable
to the 10th EDF.’

10. Article 13 is replaced by the following:

‘Article 13

Delegations

1. Where the Commission is represented by a Dele-
it
gation under the authority of a Head of Delegation,
shall
In such
inform the OCTs concerned accordingly.
cases, the provisions of the Financial Regulation applicable
to the 10th EDF concerning authorising officers and
accounting officers by subdelegation shall apply.

The Head of Delegation shall be the main contact for
2.
the different actors of cooperation in the OCTs concerned.
He shall cooperate and work closely with the Territorial
Authorising Officer.

shall appoint one or more deputy Territorial
Officer
Authorising Officers to replace him when he is unable to
carry out his duties and shall inform the Commission of
this appointment. Wherever the conditions regarding insti-
tutional capacity and sound financial management are met,
the Territorial Authorising Officer may delegate his
functions
the programmes and
projects concerned to the body responsible within the
OCTs administration. The Territorial Authorising Officer
shall inform the Commission of any such delegation.

implementation of

for

When the Commission becomes aware of problems in
carrying out procedures relating to the management of
EDF resources, it shall, in conjunction with the Territorial
Authorising Officer, make all contacts necessary to remedy
the situation and take any appropriate steps.

The Territorial Authorising Officer shall assume financial
responsibility only for the executive tasks entrusted to him.

Where EDF resources are managed in a decentralised way
and subject to any additional powers that might be granted
by the Commission,
the Territorial Authorising Officer
shall:

(a) be responsible for

the coordination, programming,
regular monitoring and annual, mid-term and end of-
term reviews of implementation of cooperation, and, if
applicable, for coordination with donors;

(b) in close

cooperation with the Commission, be
submission and

the preparation,

responsible
appraisal of programmes and projects;

for

The Head of Delegation shall have the necessary
and

3.
instructions
expedite all operation under this Regulation.

and delegated powers

to facilitate

(c) prepare tender dossiers and, where appropriate,

the

documents for calls for proposals;

On a regular basis,

4.
the Head of Delegation shall
inform the OCTs authorities of Community activities
which may directly concern cooperation between the
Community and the OCTs concerned.’

(d) submit

tender

dossiers

appropriate,
documents for calls for proposals, to the Commission
for approval before launching invitations to tender and,
where appropriate, calls for proposals;

and, where

11. Article 14 is replaced by the following:

(e)

in close cooperation with the Commission, launch invi-
tations to tender and, where appropriate, calls for
proposals;

‘Article 14

Territorial Authorising Officer

(f)

1.
The Government of each OCTs shall appoint a Terri-
torial Authorising Officer to represent it in all operations
financed from the resources of the EDF managed by the
Commission and the Bank. The Territorial Authorising

tenders and,

if applicable, proposals, and
receive
transmit copies of tenders to the Commission; preside
over the opening of tenders and decide on the results
of their examination within the period of validity of the
tenders,
the time required for
approval of contracts;

taking account of

L 317/42

EN

Official Journal of the European Union

5.12.2007

(g)

invite the Commission to the opening of tenders and, if
applicable, proposals and notify the Commission of the
results of the examination of tenders and proposals for
approval of the proposals for the award of contracts
and grants;

(h) final acceptance, provided that

the Commission is
present at provisional acceptance, endorses the corre-
sponding minutes and, where appropriate, is present at
the final acceptance, in particular where the extent of
the reservations recorded at the provisional acceptance
necessitates major additional work; and

(h) submit contracts and programme estimates and any
addenda thereto to the Commission for approval;

(i)

sign the contracts and addenda thereto approved by the
Commission;

(j) clear and authorise expenditure within the limits of the

funds assigned to him; and

(k) during the execution operations, make any adaptation
arrangements necessary to ensure the proper execution
from the
of
economic and technical viewpoint.

approved programmes or projects

The Territorial Authorising Officer shall, during the
2.
execution of operations and subject to the requirement to
inform the Commission, decide on:

(a)

technical adjustments and alterations to programmes
and projects in matters of detail so long as they do
not affect the technical solution adopted and remain
within the
for adjustments
the
provided for in the financing agreement;

limits of

reserve

(b) changes of

site

for multiple-unit programmes or
projects where justified on technical, economic or
social grounds;

(c)

imposition or remission of penalties for delay;

(d) acts discharging guarantors;

(e) purchase of goods, irrespective of their origin, on the

local market;

(f) use of construction equipment and machinery not
originating in the OCTs, Member States or ACP States
provided there
comparable
equipment and machinery in the OCTs, Member
States or ACP States;

is no production of

(g) subcontracting;

(i) hiring of consultants and other technical assistance

experts.

3.

In addition the Territorial Authorising Officer shall:

(a) draw up and, after obtaining the approval of the Moni-
to the Commission the

toring Committee,
annual implementation report;

submit

(b) carry out the mid-term review referred to in Article 22;

(c) ensure that those bodies taking part in the management
and implementation of EDF programmes maintain
either a separate accounting system or an adequate
accounting code for all
transactions relating to the
assistance; and

(d) take any necessary measures to ensure the implemen-

tation of Articles 16, 19, 24 and 30.

4. When the annual implementation report referred to
in Article 21 is submitted, the Commission and the Terri-
torial Authorising Officer shall review the main outcomes
of the previous year.

The

Territorial Authorising Officer.

After this review, the Commission may make comments to
the
Territorial
Authorising Officer shall
inform the Commission of any
action taken on these comments. Where in duly substan-
tiated cases the Commission considers that the measures
taken are inadequate, it may make recommendations to the
OCTs
for
adjustments aimed at improving the effectiveness of the
monitoring or management arrangements, together with
the reasons for any such recommendations.

Territorial Authorising Officer

and

the

On receiving any such recommendations, the Territorial
Authorising Officer shall subsequently demonstrate the
steps taken to improve the monitoring or management
arrangements or shall explain why no such steps have
been taken.’

5.12.2007

EN

Official Journal of the European Union

L 317/43

12. Article 22 is replaced by the following:

‘Article 22

Mid-term review

This adaptation shall normally take place on the occasion
of the mid-term review referred to in Article 22 or, in the
case of
in
accordance with the procedure laid down in Article 24 of
the Overseas Association Decision.’

in the shortest possible time,

irregularities,

1.
The mid-term review shall be organised to examine
the initial results of the SPD, their relevance and the extent
to which the targets have been attained.

14. Article 29 is replaced by the following:

It shall also assess the use made of financial resources and
the operation of monitoring and implementation.

‘Article 29

The mid-term review shall be carried out under the
2.
responsibility of the Commission, in cooperation with the
Territorial Authorising Officer and the Member State
concerned.

Recovery and repayments

1.
Any repayment due to be made to the Commission
shall be made by the due date indicated in the order for
recovery drawn up in accordance with the Financial Regu-
lation applicable to the 10th EDF. This due date shall be
the last day of the second month following the issuing of
the order.

The mid-term review shall be carried out
in general
between 30 and 42 months after the entry into force of
the Internal Agreement establishing the 10th EDF.

A different deadline may be set in the SPD, in particular in
respect of the indicators adopted in the case of budgetary
support.

2.
Any delay in effecting repayment shall give rise to
interest on account of late payment, starting on the due
date referred to in paragraph 1 and ending on the date of
actual payment. The rate of such interest shall be one and a
half percentage points above the rate applied by the
European Central Bank in its main refinancing operations
on the first working day of the month in which the due
date falls.

The mid-term review shall be carried out by an inde-
pendent assessor, submitted to the Monitoring Committee
and then sent to the Commission.

3.
The Commission shall examine the relevance and
quality of the review on the basis of criteria defined in
the SPD,
including in respect of the EDF financial allo-
cation.’

13. Article 27 is replaced by the following:

‘Article 27

Adaptation of EDF allocations

the Commission may

Using the results of monitoring, audit and evaluations as a
basis and taking account of the comments of the Moni-
the
toring Committee,
amounts and conditions of
the initial SPD on its own
initiative or on a proposal from the OCTs concerned in
the light of the current needs and performance of that
OCTs and taking due account of
the latest available
statistical data for that OCTs.

adjust

The Territorial Authorising Officer shall keep an
3.
account of
from payments of
recoverable
Community assistance already made, and ensure that the
amounts are recovered without unjustified delay.

amounts

The beneficiary shall repay any amount to be recovered,
together with interest received on account of late payment,
by deducting the amounts
concerned from its next
statement of expenditure and request for payment to the
Commission, or, where this is insufficient, by making a
refund to the Community.

the
The Territorial Authorising Officer
Commission a statement once a year of
the amounts
awaiting recovery at that date, classified by the year of
initiation of the recovery proceedings.’

send

shall

15. The Annex is replaced by a new Annex, the text of which is

set out in the Annex to this Regulation.

L 317/44

EN

Official Journal of the European Union

5.12.2007

In accordance with Article 3(5) of Annex II Aa to the Overseas Association Decision, the indicative amounts
allocated under the 10th EDF shall be the following:

Article 2

OCTs

10th EDF indicative allocation

(EUR in millions)

New Caledonia

French Polynesia

Wallis and Futuna

Mayotte

St Pierre and Miquelon

Aruba

Netherlands Antilles

Falkland Islands

Turks and Caicos

Anguilla

Montserrat

Saint Helena and dependencies (Ascension, Tristan da Cunha)

Pitcairn

Regional cooperation and integration

Non-allocated B reserve

19,81

19,79

16,49

22,92

20,74

8,88

24

4,13

11,85

11,7

15,66

16,63

2,4

40

15

This Regulation shall be published in the Official Journal of the European Union.

Article 3

This Regulation shall enter into force on the day of the entry into force of the Internal Agreement
establishing the 10th EDF.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 4 December 2007.

For the Commission

Louis MICHEL
Member of the Commission

5.12.2007

EN

Official Journal of the European Union

L 317/45

ANNEX

‘ANNEX

STANDARD STRUCTURE FOR SINGLE PROGRAMMING DOCUMENTS FOR OVERSEAS COUNTRIES AND
TERRITORIES UNDER THE 10TH EDF

The full text, including the executive summary and chapters 1 to 6, should be limited to at most 15 pages (Word Count)
plus annexes.

PART A: COOPERATION STRATEGY

Executive summary

SPDs should begin with a half-page executive summary. This should include the major political, institutional, economic,
social or environmental challenges for the OCTs in the medium and long term, the main objective of the SPD, the
principal reasons for the choice of focal area and the overall distribution of funds.

Chapter 1: EC cooperation objectives

In this section, the broad EC cooperation objectives are explicitly stated, as determined by the EC Treaty, the Overseas
Association Decision, international agreements and the recent Statement on EC Development Policy.

Chapter 2: Assessment of the political, economic, social and environmental situation

Major domestic policy developments/issues and relevant aspects of the external context should be covered, including the
political situation, trade aspects, the economic and social situation, environmental aspects and, finally, the sustainability of
current policies and medium-term challenges.

This should be an analytical and not merely descriptive exercise. The analysis should be dialogue-driven, prepared in close
cooperation with other donors (if applicable) and involving non-governmental actors.

Wherever relevant, special attention should be paid to the implementation of international good governance principles in
the financial, tax and judicial areas, and to the extent and the calendar of reforms in this connection.

In the same way, special attention should be paid to the availability of up-to-date statistical data.

Chapter 3: Policy agenda of the OCTs

This section should provide a concise statement of the aims and objectives of the government, as set out in official policy
documents, in medium- or long-term plans, reform strategies or development programmes. This should be completed by
an indication as to how the government proposes to achieve these objectives.

Chapter 4: Assessment of past and ongoing EC cooperation
This section should contain a brief account of the results and “lessons learnt” from past and ongoing EC cooperation.
Recommendations from relevant evaluations of the OCTs, specific sectors or projects should be considered.

A coherence paragraph (EC policy mix) should assess the linkages between the SPD and other Community policies,
resources and instruments. Programmes of EU Member States and other donors (if applicable) should be outlined.
Particular attention should be paid to coordination between territorial and regional programmes and to cooperation
with ACP countries and the outermost regions referred to in Article 299(2) of the Treaty.

Chapter 5: Response strategy

This section should set out the strategic choices for EC cooperation, specifying on which area/sector assistance will
concentrate. That choice should flow logically from:

— EC policy objectives,

— an analysis of the OCTs situation and its development strategy, determining the relevance and sustainability of the

support strategy,

L 317/46

EN

Official Journal of the European Union

5.12.2007

— conclusions reached in the context of any policy mix/coherence analysis exercise,

— the indicative volume of funds available,

— lessons learnt from past and ongoing EC activities,

— complementarity with assistance from other major donors and the OCTs Government’s own programmes.
Community assistance should be focused in areas where it has comparative advantages or particular expertise.

This section should also contain a concise institutional capacity assessment and, where appropriate address the possible
needs for institutional and capacity development actions, or, if necessary, support for actions to strengthen governance,
including in the financial, tax and judicial areas wherever relevant.

Where support for programmes or projects is proposed as the financing modality, the exceptional and duly justified
circumstances that would not allow assistance to be provided as budgetary support should be described. If the conditions
for budgetary support are not met, a description should be provided of which measures will be carried out to ensure that
the conditions for budgetary support are created.

PART B: TERRITORIAL PROGRAMME

Chapter 6: Territorial programme

This Chapter is a presentation of the OCTs territorial programme, which is based on and fully consistent with the
strategic analysis. The territorial programme is an integral part of the SPD and should be composed of the following
sections:

OPTION A: SECTOR POLICY SUPPORT PROGRAMME

Identification

Title

Total cost

Aid method/management
mode

Specify: EC contribution and if applicable contribution of the beneficiary OCTs (and of other
donors, if applicable)

Sector Policy Support Programme:
— sector budget support (centralised management),
— pool fund (centralised (direct or indirect)/decentralised/or joint management),
— project mode (centralised (direct or indirect)/decentralised/joint management).

DAC-code

Sector

1. Rationale and OCTs context

E c o n o m i c a n d s o c i a l s i t u a t i o n

Key conclusions from the assessment of the macroeconomic situation, in particular the medium to long term outlook.

If budget support is used as financing modality, indicate the following:

— macroeconomic situation: structure of GDP; recent economic performance and expected trends, covering GDP
growth and inflation; public finances, fiscal deficit, debt burden and amount of arrears; share of spending in key
sectors; balance of payments current and capital account, reserves; monetary situation; role of external assistance in
the economy; relationship with the International Monetary Fund,

— profile and trends in poverty: evolution of real GDP per head of population; consistency between rate of growth
and challenge of poverty reduction; results of poverty surveys; situation of main social indicators compared to
other countries; evolution of indicators of recent years (where available),

— that the relevant eligibility criterion for Budget Support is fulfilled, namely that a sufficiently stable macroeconomic

situation exists.

5.12.2007

EN

Official Journal of the European Union

L 317/47

C o o p e r a t i o n p o l i c y o f

t h e b e n e f i c i a r y O C T s

Main policy, strategic priorities and orientations:

— the main features of national development policy and strategy (analysis of current situation, statement of policy
and strategy, action plan(s), medium-term financial perspectives and budget, performance measurement, moni-
toring and evaluation),

— the realism of the policy and strategy (for example links between growth and poverty reduction, strategic orien-

tations),

— ownership of policy and strategy by Government in general and sector Ministry specifically.

G o v e r n m e n t S e c t o r P r o g r a m m e

Origin and status of the Government sector programme:

— main findings of the assessment of the sector policy and the sector budget and its medium-term financial

perspectives (if available) as well as the link with the territorial strategic framework,

— assessment of the institutional capacity,

— overall framework for monitoring implementation of sector policies and strategies.

If budget support is used as a financing modality, provide key conclusions on the assessment of public financial
management:

— the quality of the existing public financial management system including any specific public financial management

sector issues and reforms,

— an assessment of the process of improvements in public financial management.

If budget support is used, indicate that the relevant eligibility criteria are fulfilled:

— a well defined sector policy and,

— a well defined programme to improve public financial management.

L e s s o n s l e a r n t

Reference to reviews, assessments, monitoring results and evaluations of relevant previous actions.

C o m p l e m e n t a r y a c t i o n s

General overview of ongoing EC actions, actions of other donors and/or of the beneficiary OCTs complementary to
the present one.

D o n o r c o o r d i n a t i o n

Description of the coordination process with the beneficiary OCTs and/or other donors, notably Member States.

2. Description

O b j e c t i v e s a n d e x p e c t e d r e s u l t s

Objectives and key elements of the Government sector programme and the objectives of the present Sector Policy
Support Programme in relation to that programme.

Results anticipated from the Government sector programme and from the Sector Policy Support Programme; specific
activities to be undertaken under the Sector Policy Support Programme.

L 317/48

EN

Official Journal of the European Union

5.12.2007

S t a k e h o l d e r s

Description of main stakeholders, including beneficiaries; consultation of civil society and other partners; ownership
and assessment of institutional capacity.

R i s k s a n d a s s u m p t i o n s

Identification of main risks and overview of mitigating measures; elements evidencing the sustainability of the
proposed action. If Budget Support is used as the financing modality, risks with respect to eligibility criteria should
be mentioned.

C r o s s c u t t i n g i s s u e s

Environmental sustainability, gender equality, good governance and human rights.

3. Implementation issues

I m p l e m e n t a t i o n m e t h o d

Choose the relevant option in accordance with the selected financing modality:

— centralised management,

— joint management through the signature of an agreement with an international organisation,

— decentralised management through the signature of a financing agreement with an OCTs (in case of partly

centralised implementation and partly decentralised implementation, use this option).

In case of decentralisation of procurement contracts and grant award procedures:

— the Commission controls ex ante the contracting procedures for procurement contracts > EUR 50 000 and ex

post for procurement contracts < EUR 50 000,

or

— the Commission controls ex post the contracting procedures (full decentralisation can only be chosen if the

criteria of decentralisation set out in the Financial Regulation are fully met).

In case of decentralisation of payments (only possible where the award procedures for the relevant contracts have
been decentralised):

— through the programme estimates, payments are decentralised for operating costs and contracts up to the

following ceilings,

Works

Supplies

Services

Grants

< EUR 300 000

< EUR 150 000

< EUR 200 000

≤ EUR 100 000

or

— the payments are fully decentralised (full decentralisation can only be chosen if the criteria of decentralisation

set out in the Financial Regulation are fully met).

P r o c u r e m e n t a n d g r a n t a w a r d p r o c e d u r e s
The following is to be inserted without modification for those activities for which EC procedures apply: “All contracts
implementing the action must be awarded and implemented in accordance with the procedures and standard
documents laid down and published by the Commission for the implementation of external operations, in force at
the time of the launch of the procedure in question.”

The following is to be inserted without modification if the agreement with an international organisation foresees the
use of its own rules and procedures, which comply with the international standards set: ‘‘All contracts implementing
the action must be awarded and implemented in accordance with the procedures and standard documents laid down
and published by the International Organisation concerned.’’

If rules and procedures other than EC procedures apply, these procedures should be specified and fulfil criteria set out
in the Financial Regulation.

5.12.2007

EN

Official Journal of the European Union

L 317/49

B u d g e t a n d c a l e n d a r

Indicative breakdown of overall amount by main components,
including evaluation, audit and visibility. Where
appropriate, specify also the contribution of the beneficiary OCTs per budget item and whether this contribution is
in kind or in cash.

Where possible, indicate proportions of financing reserved for grants and for procurement contracts; for contracts,
indicate type of procurement (services, supply, works), and for grants,
intended
beneficiaries.

indicate the main category of

If applicable: Give indicative timeframe for launching the procurement procedures or the call for proposals.

If budget support is used as the financing modality, provide indicative calendar for disbursements in months,
distinguishing between fixed and variable tranches, where appropriate.

Indicate operational duration indicated in months as from signature of Financing Agreement (contract or other
implementing agreement if no Financing Agreement is signed).

P e r f o r m a n c e m o n i t o r i n g a n d c r i t e r i a f o r d i s b u r s e m e n t

Description of performance monitoring arrangements.

Performance indicators for the Sector Policy Support Programme; coherence with the overall government sector
programme performance assessment framework; process of performance monitoring; means of verification; steps to
strengthen performance measurement (as appropriate).

Where budget support or pool funding is chosen as the financing modality: general conditions for disbursement of all
tranches; areas in which specific conditions for disbursement of individual tranches will be defined.

Input, output, outcome, and, as far as possible, impact indicators should be identified for policy areas covered by the
focal area. Indicators should take into account the SMART criteria (specific, measurable in the short/medium term,
achievable, realistic and time-bound) and include a starting level, a target and a clear time-horizon, to allow for
comparisons at the time of annual, mid- and end-of-term reviews.

E v a l u a t i o n a n d a u d i t
Description of evaluations (mid-term, final, ex post) and audit arrangements.

C o m m u n i c a t i o n a n d v i s i b i l i t y

Description of communication and visibility activities.

OPTION B: GENERAL BUDGET SUPPORT

Identification

Title

Total cost

EC contribution

Aid method/management
mode

DAC-code

General budget support — centralised management

Sector

1. Rationale and OCTs context

E c o n o m i c a n d s o c i a l s i t u a t i o n

Macroeconomic situation: structure of GDP; recent economic performance covering GDP growth and inflation; public
finances, fiscal deficit, debt burden and amount of arrears; share of spending in key sectors; balance of payments
current and capital account, reserves; monetary situation; role of external assistance in the economy; summary of the
main past and expected trends in macroeconomic variables; description of the relationship between the partner
country and the International Monetary Fund; any special topics of macroeconomic interest specific to the OCTs.

L 317/50

EN

Official Journal of the European Union

5.12.2007

Profile and trends in poverty: evolution of real GDP per head of population; consistency between rate of growth and
challenge of poverty reduction; results of poverty surveys; situation of main social
indicators compared to other
countries; evolution of indicators of recent years (where available).

Indicate that the relevant eligibility criterion for budget support is fulfilled, namely that a stability-oriented macro-
economic policy is in place or under implementation and that this policy should be supported by the EC.

C o o p e r a t i o n p o l i c y a n d s t r a t e g y o f b e n e f i c i a r y O C T s

Main policy and strategic priorities and orientations:

— OCTs policy and strategy:

— the main features of the OCTs policy and strategy (analysis of current situation, statement of policy and
strategy, action plan(s), medium-term financial perspectives and budget, performance measurement, monitoring
and evaluation),

— realism of the policy and strategy (for example links between growth and poverty reduction, strategic orien-

tations),

— ownership of policy and strategy;

— performance measurement:

the existence of a monitoring process with performance indicators to measure
achievement of objectives; coherence with the Millennium Development Goals and political and economic appro-
ximation to the EU; existence of a programme to ensure the quality of performance indicators used,

— indicate that the relevant eligibility criterion for budget support is fulfilled, namely that a well defined development
or reform policy and strategy is in place or under implementation and this policy should be supported by the EC.

S e c t o r p o l i c i e s ( w h e r e a p p r o p r i a t e )

Overview of the characteristics of the main sectors and the sector policies in the priority areas addressed by this
programme.

P u b l i c f i n a n c e

Main public finance issues in two key areas:

— public financial management,

— assessment of the quality of the existing Public Financial Management system,

— assessment of the process of improvements in Public Financial Management, including the OCTs authorities’
commitment to improve Public Financial Management performance; the relevance and degree of implemen-
tation of the reform strategy; the relevance and degree of coordination and implementation of the capacity
development programmes in the area of public financial management,

— indicate that the relevant eligibility criterion for budget support is fulfilled, namely that a credible and relevant

programme to improve the management of public finances exists;

— national budget and medium-term financial perspectives: the size of budget support in relation to the budget; the
type and coverage of the budget (including structure of budget income and expenditure; coherence between OCTs
policy and strategy and budget allocations and expenditure; budget strategy (including fiscal sustainability, debt
sustainability, budget rules, financing strategies); any work on value for money; and status of any medium-term
financial perspectives (including coverage, extent of integration or not into budget process, extent of reorientation
in line with policies and strategies).

5.12.2007

EN

Official Journal of the European Union

L 317/51

L e s s o n s l e a r n t

Summary of lessons learnt, including results of reviews, assessments, monitoring and evaluations of previous actions
relevant to this specific programme.

C o m p l e m e n t a r y a c t i o n s

General overview of ongoing EC actions, actions of other donors and/or of the beneficiary OCTs complementary to
the present one.

D o n o r c o o r d i n a t i o n

Description of the coordination process with the beneficiary OCTs and/or other donors, notably Member States.

2. Description

O b j e c t i v e s

Overall Objectives: derived from the OCTs policy and strategy, this usually covers a contribution to broad deve-
lopment objectives and Millennium Development Goals, such as growth, poverty reduction, security and good
neighbourliness, integration in the world economy, economic partnership.

Purpose (specific objective): derived from the OCTs policy and strategy, this refers to particular aspects of the overall
strategy. It is often related to improving macroeconomic stability, public financial management, implementation of
reforms and improvements in the performance of government and social services.

E x p e c t e d r e s u l t s a n d m a i n a c t i v i t i e s

Expected results: this is often related to the better functioning of the public or general government sector and the
goods and services it supplies, as well as improvements in the framework for public policy and public expenditure.
These goods and services would be those that contribute towards the overall objectives, such as those related to
poverty reduction and Millennium Development Goals.

Activities cover the issues related to policy dialogue, capacity development activities, monitoring of conditions for
disbursement of budget support. Means (or inputs) will refer mainly to the financial support provided by budget
support, indicating the size of this support in relation to key macroeconomic variables.

S t a k e h o l d e r s

Description of main stakeholders, including beneficiaries; consultation of civil society and other partners; ownership
and assessment of institutional capacity.

R i s k s a n d a s s u m p t i o n s

Identification of main risks, notably with respect to eligibility criteria and overview of mitigating measures.

C r o s s c u t t i n g i s s u e s

Environmental sustainability, gender equality, good governance and human rights.

3. Implementation issues

B u d g e t a n d c a l e n d a r

Total budget and indicative calendar for disbursements in months, distinguishing fixed/variable tranches where appro-
priate.

Operational duration indicated in months as from signature of Financing Agreement.

Budget allocations for complementary support measures for the action.

B u d g e t s u p p o r t m o d a l i t i e s

Specify: direct/indirect; targeted/non-targeted; medium-term/short-term policy and strategy (as appropriate).

L 317/52

EN

Official Journal of the European Union

5.12.2007

P r o c u r e m e n t a n d g r a n t s a w a r d p r o c e d u r e s
Only for complementary support like technical assistance, audit, evaluation. To be inserted without modification: “All
contracts implementing the action must be awarded and implemented in accordance with the procedures and standard
documents laid down and published by the Commission for the implementation of external operations, in force at the
time of the launch of the procedure in question.”

P e r f o r m a n c e m o n i t o r i n g a n d c r i t e r i a f o r d i s b u r s e m e n t

Description of performance monitoring arrangements, general conditions for disbursement of all tranches, specific
conditions for disbursement of individual tranches. Input, output, outcome, and, as far as possible, impact indicators
should be identified for policy areas covered by the focal area. Indicators should take into account the SMART criteria
(specific, measurable in the short/medium term, achievable, realistic and time-bound) and include a starting level, a
target and a clear time-horizon, to allow for comparisons at the time of annual, mid- and end-of-term reviews.

E v a l u a t i o n a n d a u d i t
Description of evaluations (mid-term, final, ex post) and audit arrangements.

C o m m u n i c a t i o n a n d v i s i b i l i t y

Description of communication and visibility activities.

OPTION C: PROJECT APPROACH

Identification

Specify: EC contribution and if applicable contribution of the beneficiary OCTs (and of other
donors, if applicable)

Project approach — centralised (direct or indirect)/decentralised/joint management

Sector

Title

Total cost

Aid method/management
mode

DAC-code

1. Rationale

S e c t o r c o n t e x t

Characteristics and policies of concerned sector or thematic area (at regional
problems the project is intended to address.

level, where appropriate) and main

L e s s o n s l e a r n t

Reference to reviews, assessments, monitoring results and evaluations of previous actions, relevant to this specific
project.

C o m p l e m e n t a r y a c t i o n s

General overview of ongoing EC actions, actions of other donors and/or of the beneficiary OCTs complementary to
the present one.

D o n o r c o o r d i n a t i o n

Description of the coordination process with the beneficiary OCTs and/or other donors, notably Member States.

2. Description

O b j e c t i v e s

Overall objectives and purpose (specific objective) of the EC support.

E x p e c t e d r e s u l t s a n d m a i n a c t i v i t i e s

Strategy selected to remedy identified problems the project is intended to address; description of expected results and
indication of the way they will be achieved.

5.12.2007

EN

Official Journal of the European Union

L 317/53

S t a k e h o l d e r s

Description of main stakeholders,
appropriate; ownership and assessment of institutional capacity.

including beneficiaries; consultation of civil society and other partners, where

R i s k s a n d a s s u m p t i o n s

Identification of main risks and overview of mitigating measures, including conditions to be met prior to and during
implementation; elements evidencing the sustainability of the proposed action.

C r o s s c u t t i n g i s s u e s

Environmental sustainability, gender equality, good governance and human rights.

3. Implementation issues

I m p l e m e n t a t i o n m e t h o d

Choose the relevant option in accordance with the selected financing modality:

— centralised management,

— joint management through the signature of an agreement with an international organisation,

— decentralised management through the signature of a financing agreement with an OCTs (in case of partly

centralised implementation and partly decentralised implementation, use this option).

Indicate the tasks (procurement and grant award procedures/payments) which are foreseen to be centralised or
decentralised, and the contracting and paying authority(ies).

In case of decentralisation of procurement contracts and grant award procedures:

— the Commission controls ex ante the contracting procedures for procurement contracts > EUR 50 000 and ex

post for procurement contracts < EUR 50 000,

or

— the Commission controls ex post the contracting procedures (full decentralisation can only be chosen if the

criteria of decentralisation set out in the Financial Regulation are fully met).

In case of decentralisation of payments (only possible where the award procedures for the relevant contracts have
been decentralised):

— through the programme estimates, payments are decentralised for operating costs and contracts up to the

following ceilings:

Works

Supplies

Services

Grants

< EUR 300 000

< EUR 150 000

< EUR 200 000

≤ EUR 100 000

or

— the payments are fully decentralised (full decentralisation can only be chosen if the criteria of decentralisation

set out in the Financial Regulation are fully met).

P r o c u r e m e n t a n d g r a n t a w a r d p r o c e d u r e s
The following is to be inserted without modification for those activities for which EC procedures apply: “All contracts
implementing the action must be awarded and implemented in accordance with the procedures and standard
documents laid down and published by the Commission for the implementation of external operations, in force at
the time of the launch of the procedure in question.”

L 317/54

EN

Official Journal of the European Union

5.12.2007

The following is to be inserted without modification if the agreement with an international organisation foresees the
use of its own rules and procedures, which comply with the international standards set: ‘All contracts implementing
the action must be awarded and implemented in accordance with the procedures and standard documents laid down
and published by the International Organisation concerned.’

If rules and procedures other than EC procedures apply, these procedures should be specified and fulfil criteria set out
in the Financial Regulation.

B u d g e t a n d c a l e n d a r

including evaluation, audit and visibility. Where
Indicative breakdown of overall amount by main components,
appropriate, specify also the contribution of the beneficiary OCTs per budget item and whether this contribution is
in kind or in cash.

Where possible, indicate proportions of financing reserved for grants and for procurement contracts; for contracts,
intended
indicate type of procurement (services, supply, works), and for grants,
beneficiaries.

indicate the main category of

If applicable, give indicative timeframe for launching the procurement procedures or the call for proposals.

Foreseen operational duration indicated in months as from signature of Financing Agreement (contract or other
implementing agreement if no Financing Agreement is signed).

P e r f o r m a n c e m o n i t o r i n g

Description of performance monitoring arrangements; overview of key indicators measuring progress. Input, output,
outcome, and, as far as possible, impact indicators should be identified for policy areas covered by the focal area.
Indicators should take into account the SMART criteria (specific, measurable in the short/medium term, achievable,
realistic and time-bound) and include a starting level, a target and a clear time-horizon, to allow for comparisons at
the time of annual, mid- and end-of-term reviews.

E v a l u a t i o n a n d a u d i t
Description of evaluations (mid-term, final, ex post) and audit arrangements.

C o m m u n i c a t i o n a n d v i s i b i l i t y
Description of communication and visibility activities.’