COUNCIL DECISION concerning the allocation of funds decommitted from projects under the 9th and previous European Development Funds (EDF) for development cooperation in South Sudan Proposal for a COUNCIL DECISION concerning the allocation of funds decommitted from projects under the 9th and previous European Development Funds (EDF) for development cooperation in South Sudan
Date: 2011-05-05
Institutions: European Commission
Subjects: European Regional Development Fund, Sudan, development aid

EUROPEAN COMMISSION 

Brussels, 5.5.2011 
COM(2011) 250 final 

2011/0106 (NLE) 

Proposal for a 

COUNCIL DECISION 

concerning the allocation of funds decommitted from projects under the 9th and 
previous European Development Funds (EDF) for development cooperation in South 
Sudan 

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EXPLANATORY MEMORANDUM 

In  January  2011,  the  South  Sudanese  population  voted  overwhelmingly  to  declare 
independence  from 
the  2005 
Comprehensive  Peace  Agreement  (CPA).  Independence  is  expected  to  be  formally  declared 
on 9 July 2011, the same day the CPA expires. 

in  a  self-determination  referendum,  under 

the  north 

The European Union and its Member States have welcomed the result of the referendum and 
look forward to further developing a close and long-term partnership with South Sudan, while 
supporting  a  smooth  and  peaceful  transition  towards  a  stable  and  democratic  independent 
state of South Sudan. To this end, work on joint programming between the EU and Member 
States has already begun, in close cooperation with local authorities and actors on the ground. 

Following  independence,  South  Sudan  will  have  to  face  numerous  humanitarian  and  socio-
economic challenges in a context of reduced state capacity. Given the circumstances, external 
aid will become all the more crucial for a long period of time to assist South Sudan in fighting 
extreme poverty, empowering local communities and delivering early peace dividends to the 
population.  Although  South  Sudan  is  expected  to  request  accession  to  the  Cotonou 
Agreement, it will take time before 10th European Development Fund (EDF) comes on stream 
following accession. Pending full accession to the Cotonou Agreement and other multilateral 
funding  frameworks,  there  is  therefore  a  risk  of  a  "funding  gap"  in  the  immediate  post-
referendum  phase,  during  a  period  when  South  Sudan  will  remain  very  fragile,  with  a  high 
risk of state failure.  

Already  in  July  2010,  Council  Decision  2010/406/EU  of  12  July  2010  allocated  EUR  150 
million of de-committed funds from the 9th and previous EDFs for the purpose of addressing 
the  needs  of  "the  most  vulnerable  populations  in  Sudan".  Of  this  sum,  EUR  85  million  are 
earmarked for South Sudan. However, such an amount can be considered insufficient to cope 
with the immense needs of state- and capacity building as well as the development needs of 
the  South  Sudanese  population.  It  is  therefore  deemed  necessary  to  make  additional  funds 
available until South Sudan's full accession to the Cotonou Agreement.  

Through the attached decision, the European Commission proposes to allocate an additional 
amount  of  EUR  200  million  of  de-committed  funds  from  the  9th  and  previous  EDFs,  in 
accordance with the procedure envisaged in Article 1 (4) of the 10th EDF Internal Agreement, 
for  the  purpose  of  supporting  South  Sudan's  state-  and  capacity  building  as  well  as 
development needs.  

It  thus  proposes  that  the  Council  adopts  the  attached  Decision  on  allocating  an  amount  of 
EUR 200 million of de-committed funds from previous EDFs for South Sudan. A Financing 
Decision providing more detailed programming will be prepared subsequently. 

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2011/0106 (NLE) 

Proposal for a 

COUNCIL DECISION 

concerning the allocation of funds decommitted from projects under the 9th and 
previous European Development Funds (EDF) for development cooperation in South 
Sudan 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
article 217 thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the Internal Agreement between Representatives of the Governments of the 
Member States, meeting within the Council,  on the Financing of Community Aid under the 
Multi-annual 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  applies1,  and  in  particular 
Articles 1 (4) and 6 thereof,  

Whereas: 

(1) 

(2) 

(3) 

(4) 

South Sudan is expected to formally declare its independence from the North on 9 July 
2011,  as  a  result  of  a  self-determination  referendum  held  in  application  of  the  2005 
Comprehensive Peace Agreement; 

In the post-independence phase, the newly created State of South Sudan will have to 
cope  with  numerous  humanitarian  and  socio-economic  challenges  in  a  context  of 
reduced  governance  capacity  and  political  fragility.  In  these  circumstances,  external 
aid  is  likely  to  become  all  the  more  important  to  assist  South  Sudan  in  fighting 
extreme poverty, empowering local communities and delivering early peace dividends 
to the population; 

South Sudan is expected to request accession to the Cotonou Agreement soon after its 
independence. However, it will take time before 10th EDF funding becomes effectively 
available  following  accession,  thus  entailing  the  risk  of  a  financing  gap  in  the 
meantime;  

Council Decision 2010/406/EU of 12 July 2010 concerning the allocation of the funds 
decommitted  from  projects  under  the  ninth  and  previous  European  Development 
Funds  (EDF)  for  the  purpose  of  addressing  the  needs  of  the  most  vulnerable 

1 

OJ L 247, 9.9.2006, p. 32. 

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population in Sudan2 decided on a first allocation of EUR 150 million for the purpose 
of  addressing  the  needs  of  "the  most  vulnerable  populations  in  Sudan".  Of  this  sum, 
EUR  85  million  have  been  earmarked  already  for  South  Sudan.  Such  an  amount  is 
however considered insufficient to cope with the immense needs of state- and capacity 
building, as well as the development needs for the majority of the population;  

(5) 

(6) 

In  order  to  bridge  the  remaining  financing  gap,  it  is  appropriate  to  allocate  to  the 
benefit  of  the  population  and  public  institutions  in  South  Sudan  more  funds 
decommitted from the 9th and previous EDFs; 

The funds should be used to support the implementation of the "Three Year Southern 
Sudan  Development  Plan  (2011-2013)",  on  the  basis  of  financing  decisions  to  be 
adopted  by  the  Commission.  Provision  should  also  be  made  to  cover  the  cost  of 
support measures;  

(7) 

For  the  purpose  of  simplification,  these  funds  should  be  managed  according  to  the 
implementation arrangements for the 10th EDF. 

HAS ADOPTED THIS DECISION 

Article 1 

(1) 

An amount of EUR 200 million from funds decommitted from projects under the 9th 
EDF  and  previous  EDFs  is  allocated  for  the  purpose  of  development  cooperation  in 
Southern  Sudan.  3%  of  this  amount  is  allocated  for  support  expenditure  by  the 
Commission. 

(2) 

These funds shall be managed in accordance with the rules and procedures applicable 
for the 10th EDF.  

Article 2 

This Decision shall enter into force on the day following its adoption. 

Done at Brussels, […] 

For the Council 
The President 

2 

OJ L 189, 22.7.2010, p. 14 

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