Communication from the Commission - European Development Fund (EDF): estimate of commitments and payments and of contributions to be paid by the Member States for 2008 to 2013
Date: 2008-10-07
Institutions: European Commission
Subjects: European Development Fund, Member States' contribution, budget estimate, financial year, inclusion in the budget

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.10.2008 
COM(2008) 634 final 

COMMUNICATION FROM THE COMMISSION 

EUROPEAN DEVELOPMENT FUND (EDF) 

Estimate of commitments and payments and of contributions to be paid by the Member 
States for 2008 to 2013 

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INTRODUCTION 

In accordance with Article 7(1) and (5) of the Internal Agreement,1 the Commission 
presents in this document estimates of commitments, payments and contributions for 
the  period  2008  to  2013,  taking  into  account  the  forecasts  of  the  European 
Investment Bank (EIB) concerning the Investment Facility.  

Since the entry into force of the 9th European Development Fund (EDF) in 2003, the 
Member  States  have  made  direct  contributions  to  the  EIB  for  the  instruments  it 
manages  (the  Investment  Facility  and  interest-rate  subsidies).  This  communication 
therefore draws a clear distinction between funds managed by the EIB under the 9th 
and 10th EDFs and those managed by the Commission. 

As in previous years, this document consists mainly of tables accompanied by a few 
explanations to help interpretation. 

The  graph  below  gives  an  overview  of  the  trend  in  commitments  and  payments 
(Commission2  and  EIB).  It  clearly  shows  the  structural  upward  trend  of  payments 
since 2000. 

5.000

4.000

3.000

2.000

 €

m

1.000

0

1989

1.505

1.297

1990

953

1.257

1991

1.433

1.191

1992

2.236

1.984

1993

1.843

1.443

1994

2.689

1.860

1995

1.874

1.758

1996

1.538

1.509

1997

784

1.382

1998

2.606

1.595

1999

2.958

1.352

2000

4.007

1.640

2001

1.927

1.779

2002

2.125

1.922

2003

4.137

2.349

2004

2.972

2.558

2005

4.020

2.704

2006

4.039

3.062

2007

3.914

3.252

2008

4.098

3.508

2009

4.280

3.805

- - commitments  ― payments 

1 

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Internal  Agreement  between  the  Representatives  of  the  Governments  of  the  Member  States,  meeting 
within the Council, on the financing of Community aid under the multiannual financial framework for 
the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation 
of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty 
applies (OJ L 247, 9.9.2006, p. 32). 
The commitments and payments for the Commission are “gross” figures, i.e. without the deduction of 
decommitments and recoveries. 

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1. 

FINANCIAL IMPLEMENTATION FORECASTS FOR 2008 AND 2009 

The Commission and the EIB have updated their commitment and payment forecasts 
for 2008 and 2009 for each of the ACP3 countries and the OCTs4. The result and the 
amount of contributions necessary to finance the EDF are set out in Annexes 1 to 3 
where they are compared with the figures given in the June 2008 communication5.  

As  regards  the  Commission,  it  should  be  stressed  that,  as  a  result  of  the  late  entry 
into force of the 10th EDF, the 2008 commitments will be very concentrated towards 
the  end  of  the  year.  A  slight  delay  in  the  workflow  is  bound  to  lead  to  relatively 
substantial slippage in projects between 2008 and 2009. The Commission would also 
point out that it closed the 7th EDF in September 2008 and initiated a procedure for 
closing the bank accounts in the ACP and OCT countries, which should rationalise 
treasury  management.  At  the  beginning  of  2009  it  is  to  replace  the  EDF  computer 
accounting  programme  with  a  new  one  modelled  on  the  programme  used  for  the 
general budget. 

The EIB notes that the estimated 2008 year-end balance is mainly based on a forecast 
of the capital and interest repayments, a large part of which is due in mid-December. 
These repayments are unpredictable and may be early or late. 

The Commission urges the Council to make available all the contributions necessary 
to  guarantee  proper  implementation  of  the  EDF  in  2008  and  2009.  If  the  Council's 
decision on the third tranche for 2008 is less than the amount requested, the annual 
amount  of  the  contributions  for  2009  and  the  first  tranche  for  2009  should  be 
increased  accordingly.  Otherwise  the  EDF  will  be  forced  to  suspend  payments  in 
2009. 

In  accordance  with  Article  57(4)  of  the  Financial  Regulation  applicable  to  the 
10th EDF6, the forecasts will be revised in the June 2009 communication.  

2. 

FINANCIAL YEARS 2010 TO 2013 

It should be remembered that the margin of error in medium-term estimates is high.  

Following  the  entry  into  force  of  the  10th  EDF,  the  Commission  is  obliged  to 
propose  a  ceiling,  for  the  first  time,  on  the  annual  amount  of  the  contributions  for 
year  n+2,  i.e.  20107.  A  figure  of  €280  million  is  proposed  for  the  EIB  and  €3 500 
million for the Commission.  

The table below sets out the result of the forecasts for 2008-2013. The relatively high 
gap  between  payments  and  contributions  for  the  EIB  is  due  to  the  fact  that,  since 
2007, some of the payments have been financed by loan repayments. 

3 
4 
5 

6 
7 

African, Caribbean and Pacific States. 
Overseas Countries and Territories. 
COM(2008)  354  final  of  13.6.2008.  The  figures  for  the  Investment  Facility  are  as  given  by  the  EIB 
during discussions in the Council (see Council document 121/08 ACP of 16.6.2008). 
OJ L 78, 19.3.2008, p. 1. 
Article 7 of the Internal Agreement (see footnote 1). 

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Forecast of commitments, payments and contributions 
2008-2013 

2008 

2009 

2010 

2011 

2012 

2013 

€ million 

Commitments 

Commission 
EIB 

Payments 

Commission 
EIB 
Contributions 

Commission 
EIB 

3578
520

3140
368

3000
240

3750
530

3375
430

3300
200

3750
550

3550
450

3500
280

3750 
550 

3650 
450 

3575 
230 

3750
550

3700
450

3625
210

3200
470

3700
370

3625
200

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ANNEX 1 – Forecast commitments for 2008 and 2009 (EUR million) 

2008 

2009 

June 20088 
communication 

Revised 

June 2008 
communication 

Revised 

Regions 

 East Africa 
West Africa 
Central Africa 
Caribbean 
Pacific 
Southern Africa 
Subtotal 

Other 

Peace Facility 
Other9 
Total for the 
Commission 

Investment Facility 
Interest-rate subsidies 

Total for EIB instruments 

TOTAL 

529

1 096

207

99

30

730

2 692

300

36

778

1 486

482

123

39

170

3 076

0

502

949

790

352

355

106

712

3 264

300

186

3 029

3 578

3 750 

3 750

450

50

500

450

70

520

450 

50 

500 

450

80

530

3 529

4 098

4 250 

4 280

8 

9 

COM(2008) 354 final of 13.6.2008 (see also Council document 121/08 ACP of 16.6.2008 with figures 
revised by the EIB). 
Includes  certain  support  expenditures,  e.g.  to  support  joint  institutions  and  the  ACP  Secretariat,  and 
mobilisation of the "B" envelope in connection, inter alia, with the food price crisis. 

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ANNEX 2 – Forecast payments for 2008 and 2009 (EUR million) 

2008 

June 2008 
communication10

Revised 

2009 

June 2008 
communication 

Revised 

Regions 

East Africa 
West Africa 
Central Africa 
Caribbean 
Pacific 
Southern Africa 
Sub-total 

Other 

Peace Facility 
Water Facility 
Energy Facility 
Risk capital11 
Debt relief (HIPC) 
Infrastructure Trust Fund 
Other12 

SUBTOTAL 
Stabex 

Total for the Commission 

Investment Facility 
Interest-rate subsidies 

Total for EIB instruments 

TOTAL 

578

858

373

256

76

354

627

804

324

217

68

366

2 493

2 406

45

99

p.m.

77

180

40

172

3 106

14

3 120

370

50

420

41

71

29

51

180

40

288

3 106

34

3 140

310

58

368

844

916

457

264

85

380

2 946

23

43

27

51

0

1

282

3 373

25

3 375

350

80

430

3 168 

32 

3 200 

400 

50 

450 

3 540

3 508

3 650 

3 805

Gross payments, i.e. without recoveries being deducted. 

10 
11 
12 

See footnote 8. 
Including interest-rate subsidies under the previous EDFs. 
See footnote 9. 

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ANNEX 3 - Financial situation estimated for 2008, 2009 and 201013 (EUR million) 

June 2008  
communication* 

Revised 

75

8
0
0
2

14
26
3100

77
270
170
70
30
120

77
240
170
70
0
140

57
3000
1635
1000
365

57 
3000 
1635 
1000 
365 

1st tranche 
2nd tranche 
3rd tranche 

1st tranche 
2nd tranche 
3rd tranche 

Balance at 31.12.2007** 
2008 contributions, of which: 

134
3270
1805
1070
395
120
75
-3120 -420 -3540
14
73
3470

Reflows 
Recoveries, interest and other 
Total payments 
Stabex payments (already financed) 
Balance at 31.12.2008 
2009 contributions, of which: 

Commission  EIB  Total  Commission  EIB  Total 
134
3240
1805
1070
365
140
75
-368 -3508
34
115
3500
1820
1210
470
170
75
-430 -3805
25
80
3780
200
75
-450 -4050
32
117
*  COM(2008)  354  final  of  13.6.2008  (see  also  Council  document  121/08  ACP  of  16.6.2008  with  revised 
figures for the EIB) 
** minus contributions paid in advance 

Reflows 
Recoveries, interest and other 
Total payments 
Stabex payments (already financed) 
Balance at 31.12.2009 
2010 contributions 
Reflows 
Recoveries, interest and other 
Total payments 
Stabex payments (already financed) 
Balance at 31.12.2010 

80
75
-3200 -450 -3650
32
80

75 
-3140 
34 
26 
3300 
1750 
1100 
450 

75 
-3375 
25 
51 
3500 

75 
-3600 
32 
58 

89
200
70
110
20
170

29
280
200

3325 -470

47
370

9
0
0
2

0
1
0
2

32
33

2855

80

75

59

47

13 

Funds available for operations 

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ANNEX 4 - 2008 EDF Contributions by Member State (EUR) 

Member State 

GERMANY 
BELGIUM 
DENMARK 
SPAIN 
FRANCE 
GREECE 
IRELAND 
ITALY 
LUXEMBOURG 
NETHERLANDS 
PORTUGAL 
UNITED 
KINGDOM 
AUSTRIA 
FINLAND 
SWEDEN 
TOTAL 

Scale 

1st tranche 

2nd tranche 

3rd tranche 

TOTAL 

% 

paid 
EIB 

paid 
Commission 

paid 
EIB 

paid 
Commission 

23.36 

39 712 000

381 936 000

16 352 000

233 600 000 

3.92 

2.14 

5.84 

6 664 000

64 092 000

2 744 000

39 200 000 

3 638 000

34 989 000

1 498 000

21 400 000 

9 928 000

95 484 000

4 088 000

58 400 000 

24.30 

41 310 000

397 305 000

17 010 000

243 000 000 

1.25 

0.62 

2 125 000

20 437 500

1 054 000

10 137 000

875 000

434 000

12 500 000 

6 200 000 

12.54 

21 318 000

205 029 000

8 778 000

125 400 000 

0.29 

5.22 

0.97 

493 000

4 741 500

203 000

2 900 000 

8 874 000

85 347 000

3 654 000

52 200 000 

1 649 000

15 859 500

679 000

9 700 000 

12.69 

21 573 000

207 481 500

8 883 000

126 900 000 

2.65 

1.48 

2.73 

4 505 000

43 327 500

1 855 000

26 500 000 

2 516 000

24 198 000

1 036 000

14 800 000 

4 641 000

44 635 500

1 911 000

27 300 000 

100.00 

170 000 000

1 635 000 000

70 000 000

1 000 000 000 

payable 
to  
EIB 

payable to 
Commission 

for all  
tranches 

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

85 264 000

756 864 000

14 308 000

127 008 000

7 811 000

69 336 000

21 316 000

189 216 000

88 695 000

787 320 000

4 562 500

40 500 000

2 263 000

20 088 000

45 771 000

406 296 000

1 058 500

9 396 000

19 053 000

169 128 000

3 540 500

31 428 000

46 318 500

411 156 000

9 672 500

85 860 000

5 402 000

47 952 000

9 964 500

88 452 000

365 000 000

3 240 000 000

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ANNEX 5 - 2009 EDF Contributions by Member State (EUR) 

Member State 

GERMANY 
BELGIUM 
DENMARK 
SPAIN 
FRANCE 
GREECE 
IRELAND 
ITALY 
LUXEMBOURG 
NETHERLANDS 
PORTUGAL 
UNITED 
KINGDOM 
AUSTRIA 
FINLAND 
SWEDEN 
TOTAL 

Scale 

1st tranche 

2nd tranche 

3rd tranche 

payable to  
EIB 

payable to  
Commission 

payable to  
EIB 

payable to  
Commission 

payable to  
EIB 

payable to 
Commission 

% 

TOTAL 

for all  
tranches 

23.36 

16 352 000

408 800 000

25 696 000

256 960 000 

4 672 000

105 120 000

817 600 000

3.92 

2.14 

5.84 

2 744 000

68 600 000

4 312 000

43 120 000 

784 000

17 640 000

137 200 000

1 498 000

37 450 000

2 354 000

23 540 000 

428 000

9 630 000

74 900 000

4 088 000

102 200 000

6 424 000

64 240 000 

1 168 000

26 280 000

204 400 000

24.30 

17 010 000

425 250 000

26 730 000

267 300 000 

4 860 000

109 350 000

850 500 000

1.25 

0.62 

875 000

434 000

21 875 000

1 375 000

13 750 000 

10 850 000

682 000

6 820 000 

250 000

124 000

5 625 000

43 750 000

2 790 000

21 700 000

12.54 

8 778 000

219 450 000

13 794 000

137 940 000 

2 508 000

56 430 000

438 900 000

0.29 

5.22 

0.97 

203 000

5 075 000

319 000

3 190 000 

58 000

1 305 000

10 150 000

3 654 000

91 350 000

5 742 000

57 420 000 

1 044 000

23 490 000

182 700 000

679 000

16 975 000

1 067 000

10 670 000 

194 000

4 365 000

33 950 000

12.69 

8 883 000

222 075 000

13 959 000

139 590 000 

2 538 000

57 105 000

444 150 000

2.65 

1.48 

2.73 

1 855 000

46 375 000

2 915 000

29 150 000 

530 000

11 925 000

92 750 000

1 036 000

25 900 000

1 628 000

16 280 000 

296 000

6 660 000

51 800 000

1 911 000

47 775 000

3 003 000

30 030 000 

546 000

12 285 000

95 550 000

100.00 

70 000 000

1 750 000 000

110 000 000

1 100 000 000 

20 000 000

450 000 000

3 500 000 000

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