REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the implementation of the Instrument for Nuclear Safety Cooperation  First Report - Annual Action Programmes for 2007, 2008 and 2009
Date: 2011-03-10
Institutions: European Commission
Subjects: EU aid, EU financing, cooperation policy, nuclear safety, report, technical cooperation

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EUROPEAN COMMISSION 

Brussels, 10.3.2011 
COM(2011) 111 final 

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

on the implementation of the Instrument for Nuclear Safety Cooperation 

First Report - Annual Action Programmes for 2007, 2008 and 2009 

SEC(2011) 284 final 

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REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE 
COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

on the implementation of the Instrument for Nuclear Safety Cooperation 

First Report - Annual Action Programmes for 2007, 2008 and 2009 

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FOREWORD 

This report is submitted to the European Parliament and the Council, and addressed 
to  the  European  Economic  and  Social  Committee  and  to  the  Committee  of  the 
Regions of the European Union, in compliance with the reporting requirement set out 
in Article 18 of Council Regulation (EURATOM) No 300/2007 of 19 February 2007 
establishing  an  Instrument  for  Nuclear  Safety  Cooperation1  referred  here  below  as 
the INSC Regulation.  

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Art.  18  of  the  INSC  Regulation  requires  that  'The  Commission  shall  examine  progress  achieved  in 
implementing  the  measures  undertaken  pursuant  to  this  Regulation  and  shall  submit  to  the  European 
Parliament and the Council an annual report on the implementation of the assistance. The report shall 
also be addressed to the Economic and Social Committee and to the Committee of Regions. The report 
shall  contain  information  relating  to  the  previous  year  on  the  measures  financed,  information  on  the 
results  of  monitoring  and  evaluation  exercises  and  the  implementation  of  budget  commitments  and 
payments, broken down by country, region and cooperation sector'. 

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SUMMARY 

The  INSC  programme  continued  the  nuclear  safety  cooperation  initiated  under 
TACIS with the former Soviet Union, but it had its geographical coverage extended 
to  become  global.  The  main  developments  on  nuclear  safety  cooperation  and 
assistance provided under the INSC over the period 2007-2009 were as follows. 

In Ukraine, targeted support was provided to the regulator and the operator. A major 
achievement was the evaluation of the nuclear safety of the Ukrainian nuclear power-
plants (NPPs) under a joint project with the IAEA. The evaluation provided valuable 
information  on  the  status  of  the  plants,  as  well  as  the  situation  of  nuclear  waste 
management  and  the  nuclear  regulator  in  Ukraine  and  demonstrated  the  significant 
improvements in nuclear safety in the recent years.  

In  Russia,  projects  initiated  under  TACIS  continued  under  the  INSC,  but  no  new 
projects  have  been  possible  since  a  suitable  cooperation  framework  could  not  be 
agreed.  Discussions  are  ongoing  to  resume  cooperation  activities  with  a  reduced 
scope. 

In  Armenia,  important  projects  have  been  launched  concerning  the  Medzamor 
Nuclear  Power  Plant  to  address  urgent  safety  issues  while  the  plant  is  operating, 
however the Commission continues to maintain the position that the plant cannot be 
upgraded to modern nuclear safety standards and therefore it should be closed down 
as  soon  as  is  practical.  Projects  provided  training  of  personnel,  assistance  to  the 
nuclear regulator and development of a waste management strategy in preparation for 
future decommissioning. 

In  Belarus  and  Georgia,  cooperation  continued  with  relatively  small  projects. 
However,  for  Belarus  discussions  took  place  to  step-up  the  cooperation  with  the 
regulator in order to improve its capabilities in anticipation of the construction of a 
nuclear power plant in the country. 

The Programme was extended to new countries in three regions as follows: 

Countries covered by the European Neighbourhood Policy: projects were launched 
in Egypt, Jordan and Morocco mainly to support the regulatory authorities. 

South-East Asia: projects were initiated in the Philippines and Vietnam.  

Latin America: projects were launched with the nuclear regulator and the operator 
in Brazil. Contacts were also established with Mexico and Argentina. 

Another important element of the Programme was the extended cooperation with the 
IAEA  to  support  thematic  technical  activities  at  country  or  regional  level.  These 
included,  inter  alia,  development  of  safety  culture,  capacity  building  of  regulators, 
waste management, research reactors safety and seismic safety. This element of the 
programme will remain very important in the coming years.  

Significant financial support was provided to the Chernobyl Shelter Fund and the 
Nuclear Safety Account, managed by the EBRD on behalf of the donor countries. A 
G8 NSSG (Nuclear Safety and Security Group) – EBRD Contact Group was created 

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to  closely  follow-up  the  Chernobyl  projects.  This  group  is  chaired  by  the 
Commission. 

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1. 

INTRODUCTION  

In  1991,  the  Commission  launched  the  Nuclear  Safety  component  of  the  TACIS 
programme2  to  address  the  safety  concerns  raised  by  the  Chernobyl  accident. 
Between  1991  and  2006,  more  than  €1.3  bill ion  were  committed  to  nuclear  safety 
projects.  Details  of  results  under  TACIS  Nuclear  Safety  Programmes  were  made 
available in a specific report in 20093. 

Since  2007,  the  EU's  nuclear  safety  assistance  and  cooperation  activities  have 
continued under the Instrument for Nuclear Safety Cooperation (INSC)4. The INSC 
has  introduced  a  number  of  changes  compared  to  the  TACIS  nuclear  safety 
programme which are worth noting.  

The geographical coverage is no longer limited to the former Soviet Union states. It 
applies  to  third  countries5  worldwide.  This  allows  the  Commission's  experience 
gained  with  ex-Soviet  countries  to  be  used  elsewhere  to  address  the  needs  of 
emerging countries, as well as countries with established nuclear power programmes 
in  need  of  nuclear  safety  improvement,  in  particular  those  with  rapidly  expanding 
nuclear  programmes.  In  2008,  the  Commission  announced  its  broad  strategy  in  a 
Communication to the EU Council and Parliament6. 

In  view  of  the  potential  needs  for  nuclear  safety  cooperation  worldwide,  the  EU 
Council proposed a set of criteria to be observed when considering projects with new 
countries7.  The  Commission  took  these  criteria  into  account  in  its  revised  INSC 
strategy for 2010-20138, which also includes geographical priorities. 

Second, while the TACIS programme focused on nuclear safety assistance including, 
in  many  cases,  supply  of  equipment  ('hard  assistance'),  the  INSC  objective  is 
enhanced cooperation, with a view to improving nuclear safety without the supply of 
equipment  ('soft  assistance'),  although  equipment  supply  may  be  considered  in 
special  cases.  Partners  are  also  encouraged  to  take  a  more  prominent  role  in  the 
definition, management and implementation of these projects. 

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TACIS  (Technical  Assistance  to  the  Commonwealth  of  Independent  States)  is  the  European 
Commission  programme  to  assist  12  countries  of  Eastern  Europe  and  Central  Asia  (Armenia, 
Azerbaijan,  Belarus,  Georgia,  Kazakhstan,  Kyrgyzstan,  Moldova,  Russia,  Tajikistan,  Turkmenistan, 
Ukraine and Uzbekistan) and Mongolia in their transition to democratic market-oriented economies.  
"The  TACIS  Nuclear  Safety  Review  Report",  May  2010,  by  Italtrend.  European  Commission, 
EuropeAid  Co-operation  Office  (AIDCO  A4  )  contract  N°  172067.  (Report  presented  by  the 
Commission to the INSC Committee). 
Council Regulation (Euratom) No 300/2007 of 19 February 2007 establishing an Instrument for Nuclear 
Safety Cooperation (OJ L 81, 22.3.2007, p. 1). 
'Third countries' are countries outside the EU, excluding those covered by the Pre-Accession Instrument 
and, in principle, industrialised/high income countries (see footnote 6). 
Communication "Addressing the international challenge of nuclear safety and security" (COM (2008) 
312 final, 22 May 2008  

Council Conclusions on assistance to third countries in the field of nuclear safety and security, 9 
December 2008. http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/trans/104601.pdf 
Revised Strategy for Community Cooperation Programmes in the field of Nuclear Safety for the period 
2010-2013 ( C(2009)9822 ) 

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The  Commission  will  continue  to  promote  co-financing  arrangements,  with  partner 
organisations generally providing contributions in kind (staff) or in supplies or works 
(additional studies, civil works), on the basis of financing plans which are agreed in 
advance.  

Third,  the  enlarged  geographical  scope  of  the  INSC,  compared  to  TACIS,  has 
increased  the  need  for  international  cooperation  and  coordination  of  actions  with 
other  donors  and  stakeholders,  such  as  the  International  Atomic  Energy  Agency 
(IAEA).  

The present report provides information on the implementation of the Annual Action 
Programmes  for  the  first  three  years  of  INSC,  2007,  2008  and  2009,  including 
projects  approved  until  the  end  of  2009  and  their  state  of  implementation  by  mid 
2010.  

Initial  difficulties  in  the  transitory  phase  from  TACIS  to  INSC,  due  primarily  to 
delays  in  getting  partner  countries  to  sign  Financing  Agreements  under  the  new 
format, have meanwhile been largely overcome, with the exception of Russia. 

2. 

IMPLEMENTATION OF THE ANNUAL ACTION PROGRAMMES 

The  INSC  Regulation  was  adopted  on  19  February  2007.  The  2007-2013  Strategy 
and  the  first  Indicative  Programme  covering  2007-20099  were  adopted  by  the 
Commission  on  8  August  2007.  The  Indicative  Programme  covering  2010-201110 
and  the Revised  Strategy for 2010-201311 were adopted in  December 2009.  Due to 
the  timing  of  the  adoption  of  Action  Programmes,  on  an  annual  basis,  and  the 
lengthy  approval  period  by  the  authorities  of  the  partner  countries,  the  actual 
implementation of most projects under INSC only started in 2009. 

2.1. 

Annual Action Programme for 2007 (AAP2007) 

Allocations 

AAP2007 was presented in 2 parts: 

- Part I – €18 million – Commission  Decision C/2007/441 of 28 September 2007.  

-  Part  II  –  €58.772  million  –  Commissi on  Decision  C/2007/6422  of  19  December 
2007. 

Implementation - highlights mid 2010 

The  second  instalment  of  the  third  Commission  pledge  to  the  Chernobyl  Shelter 
Fund  was  paid  (€10  million)  to  the  European  Bank  for  Reconstruction  and 
Development (EBRD), which manages the Fund. 

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Commission Decision C/2007/3758 of 01.08.2007 
Indicative Programme for Community Cooperation Programmes in the field of Nuclear Safety for the 
period 2010-2011 (C(2009)9820) 
Revised Strategy for Community Cooperation Programmes in the field of Nuclear Safety for the period 
2010-2013 (C(2009)9822) 

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Contracts  were  concluded  for  the  improvement  of  nuclear  safety  in  Armenia, 
corresponding to 90% of the planned amounts (€6.9 million out of €7.2 million). 

Contracts  for  the  extension  of  the  on-site  assistance  in  four  NPPs  in  Russia  and 
Ukraine were signed (€6 million AAP2007-part I).  These cover the finalisation of the 
large nuclear safety projects which were started under TACIS. 

The EC-IAEA-Ukraine joint project concerning the nuclear safety evaluation of the 
Ukrainian Nuclear Power Plants was launched at the end of 2007. This €3.5 million 
project was co-financed by the IAEA (€0.6 million) and the EU  (€2.9 million). The 
final report was made available during the first half of 2010.  

The  first  contract  for  the  project  to  complete  a  National  Maintenance  and 
Management  Training  Centre  for  NNEGC  Energoatom  personnel  in  Ukraine  was 
concluded  in  August  2009  (€5.7  million).  One  project  for  the 
long  term  safety 
management of Ukrainian NPPs started in 2010 (€2.5 million). 

€1.5 million were committed for the  mitigation of the consequences of the Chernobyl 
accident in Ukraine and Belarus.  

Since the Russian Federation did not sign the Financing Agreement for the projects 
under  the  AAP2007-part  II  before  the  deadline  (end  of  2008),  the  respective  funds 
(€28.272  million)  were  de-committed.  These 
funds  could  not  be  used  for  other 
nuclear safety projects in the INSC framework. 

2.2. 

Annual Action Programme for 2008 (AAP2008) 

Allocations  

AAP 2008 was also presented in 2 parts: 

- Part I – €23 million – Commissi on Decision C/2008/3348 of 07 July 2008. 

-  Part  II  –  €48.255  million  –  Commission  Decision  C/2008/7366  of  28  November 
2008. 

Implementation - highlights mid 2010 

The Financing Agreements relating to AAP 2008 Part II, signed by partner countries 
between July 2009 and December 2009, permitted the implementation of the projects 
to  start  in  2010.  As  in  2007,  the  Russian  Federation  was  not  prepared  to  sign  the 
Financing Agreement, the Commission decided to reallocate the funds foreseen for 
Russia  (€17.2  million)  to  other  activities.  The  reallocation  of  funds  was  concluded 
before  the  end  of  2009,  when  the  procedural  timeframe  would  have  expired.  The 
funds were used for Ukrainian and Armenian projects and an additional contribution 
to the Chernobyl Shelter Fund (€10.7million)  in anticipation of the next pledge. 

The  €15  million  instalment  of  the  Commission's  third  pledge  to  the  Chernobyl 
Shelter Fund was transferred to the EBRD.  

Contracts  were  awarded  for  the  continuation  of  the  assistance  to  governmental 
bodies  and  local  stakeholders  involved  in  the  implementation  of  nuclear  safety  in 

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Ukraine  (Joint  Support  Office,  Kiev,  €3.0  million)  and  Russia  (Joint  Management 
Unit, Moscow, €1.5 million). 

2.3. 

Annual Action Programme for 2009 (AAP2009) 

Allocations  

AAP 2009 was again presented in 2 parts: 

-  Part  I  –  €30.2  million  –  Commission  Decision  PE/2009/6607  of  16  September 
2009. 

-  Part  II  –  €43.5  million  –  Commission  D ecision  PE/2009/9119  of  16  December 
2009. 

Implementation - highlights mid 2010 

€9.7 million were paid to the  Chernobyl Shelter Fund representing the last instalment 
of  the  Commission's  third  pledge  to  the  Fund.  A  further  payment  was  made  to  the 
Nuclear  Safety  Account  (€15  million)  co rresponding  to  the  pledge  made  by  the 
Commission in 2008. These payments to the EBRD for Chernobyl had been foreseen 
under AAP 2009 Part I. 

Two  projects  of  €1  million  each  for  the  continuation  of  the  support  to  the  Russian 
Nuclear Operator at Smolensk and Beloyarsk NPPs were contracted12. 

The use of the financial means foreseen in the Global Allocation began with audits 
and exploratory missions in Vietnam.  

The Financing Agreements related to the AP 2009 Part II were transmitted to partner 
countries  in  early  2010.  They  must  be  signed  before  the  end  of  2010  so  that 
implementation of the projects can start in 2011. 

2.4. 

Annual Action Programme for 2010 (AAP2010)  

AAP 2010 was also presented in 2 parts: 

- Part I – €7.7 million – Commission  Decision PE/2010/3664 of 29 June 2010. 

- Part II – €61.627 million – Commission Decision PE/2010/8016 of 29 November 
2010. 

The progress with regards to the 2010 Annual Action Programme does not form part 
of the present report. 

2.5. 

Use of INSC programme funds 2007-2009 

The situation concerning the use of INSC funds allocated under the AAP's for 2007, 
2008 and 2009 is summarised in the following table. 

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The respective contracts were concluded under the n+1 rule (contract to be concluded within the year 
following approval of the Action Programme), without Financing Agreement. 

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AAP 
YEAR 

2007 

2008 

2009 

Funds  

Committed 

76.772* 

71.255 

73.700 

Use of INSC Programme funds  
(million € - situation mid 2010) 

Contracted  

Paid 

34.224 

36.461 

30.200 

21.786 

31.265 

26.900 

Note *: including €28.272 for Russia which were later de-committed 

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CONCLUSIONS 

The EU Results-Oriented Monitoring Programme for European Neighbourhood and 
Partnership  Countries13  presented  the  following  main  conclusions  on  the  INSC 
nuclear safety projects: 

(1) 

(2) 

(3) 

(4) 

(5) 

The projects continue to be designed in line with the strategic documents of 
the  Instrument  of  Nuclear  Safety  Cooperation  (INSC).  The  relevance  is 
assessed  as  highly  appropriate  and  compatible  with  the  IAEA  2007 
Fundamental Safety Principles.  

The  enhancement  of  the  nuclear  safety  culture  through  INSC  duly 
incorporates lessons learned from the Tacis Nuclear Safety programme, while 
properly addressing emerging needs within a mandate no longer restricted to 
the region of the former Soviet Union.  

The transition to INSC did not cause an interruption in the cooperation with 
Armenia and Ukraine, while for implementing INSC projects in the Russian 
Federation, a special basis is only now being established. 

The new initiative to enhance the regulatory oversight through INSC projects 
is appropriate. 

INSC  projects  with  focus  on  exchange  of  know-how  and  practices  are 
appreciated by partners in target countries.  

Projects in the other regions covered so far by the INSC (Latin America and South 
East Asia) are not sufficiently advanced to draw meaningful conclusions about their 
implementation. 

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Monitoring  System  of  the  Implementation  of  Projects  and  Programmes  of  External  Co-operation 
financed  by  the  EU  -  Result-Oriented  Monitoring  (ROM)  for  the  countries  of  the  European 
Neighbourhood  and  Partnership  Instrument.  Overview  on  INSC  projects  monitored  until  mid-2010, 
Report  by  the  INTEGRATION  led  Consortium  (INTEGRATION  -  ICCS-NTUA  (EPU)  –ECORYS), 
November 2010. 

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