Proposal for a COUNCIL REGULATION on the implementation of the 11th European Development Fund
Date: 2013-06-26
Institutions: European Commission
Subjects: ACP countries, Cotonou Agreement, European Development Fund, European Investment Bank, development aid, eligibility criteria

EUROPEAN 
COMMISSION 

Brussels, 26.6.2013  
COM(2013) 445 final 

2013/0211 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on the implementation of the 11th European Development Fund 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Poverty  remains  a  major  problem  in  African,  Caribbean  and  Pacific (ACP)  States.  Many  of 
them are off-track towards the achievement of the Millennium Development Goals (MDGs) 
and  they  do  not  benefit  from  sustainable  development.  The  EU  is  helping  ACP  countries 
address  these  problems.  It  is  necessary  for  the  EU  to  continue  to  support  ACP  countries' 
efforts towards reducing and eventually eradicating poverty, while attaining the objectives of 
sustainable development and achieving their gradual integration into the global economy.  

The EU maintains privileged relations with the ACP group of developing countries under the 
Partnership Agreement between the ACP States of the one part, and the European Community 
and its Member States of the other part, signed in Cotonou on 23 June 2000 for a period of 20 
years1 (hereinafter referred to as the Cotonou Agreement). The European Development Fund 
(EDF) is the main instrument for providing EU assistance for development cooperation under 
the Cotonou Agreement with ACP countries and for cooperation with Overseas Countries and 
Territories  (OCTs)  under  the  Overseas  Association  Decision  (OAD).  The  EDF  is  funded 
outside the EU budget by the EU Member States on the basis of specific contribution keys. 
Each EDF is concluded for a multi-annual period.  

For the post-2013 multiannual financial framework, the European Commission proposed in its 
Communication  ‘A  budget  for  Europe  2020’2  the  overall  volume  (EUR  30  318.7  million  in 
2011  prices,  i.e.  EUR  34  275.6  million  in  current  prices)  for  the  11th  EDF  for  cooperation 
with  ACP  countries  and  OCTs.  The  Commission  also  adopted  a  Communication  describing 
the main elements that could figure in the Internal Agreement for the 11th EDF, for the period 
from 1 January 2014 to 31 December 20203. The assumption of the European Commission is 
that  an  agreement  will  be  reached  by  the  European  Union  and  its  Member  States  on  laying 
down the financing mechanism (the 11th EDF), the exact period to be covered (2014-2020) 
and  the  amount  of  funds  to  be  allocated  to  that  mechanism,  for  implementing  the  ACP-EU 
Partnership, and that the Representatives of the Governments of the Member States will agree 
on an Internal Agreement for an 11th EDF. The European Council set the global amount of 
the  11th  EDF  in  its  Conclusions  on  February  8th  2013,  i.e.  EUR  30  506  million  in  current 
prices4. 

New  challenges,  together  with  the  priorities  set  out  in  the  Europe  2020  Strategy,  have 
prompted  the  Commission  to  make  a  proposal  to  adapt  the  11th  EDF  Implementation 
Regulation  in  line  with  the  Communication  'Increasing  the  Impact  of  EU  Development 
Policy:  An  Agenda  for  Change'5  of  13  October  2011.  The  European  Consensus  on 
Development adopted on 22 December 2005 and the internationally agreed principles on aid 
effectiveness  including  the  Busan  Outcome  Document  (2011)  also  form  part  of  the  general 
policy framework for the programming and implementation of the 11th EDF.  

1 

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5 

OJ  L  317,  15.12.2000,  p.  3.  Agreement  as  amended  by  the  Agreement  signed  in  Luxembourg  on  25 
June 2005 (OJ L 287, 28.10.2005, p. 4) and by the Agreement signed in Ouagadougou on 22 June 2010 
(OJ L 287, 4.11.2010, p. 3).  
COM(2011) 500. 
COM(2011) 837. 
EUCO 37/13 + EUCO 37/13 COR 1  
COM(2011) 637. 

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2. 

RESULTS OF THE CONSULTATIONS WITH THE INTERESTED PARTIES 
AND IMPACT ASSESSMENT 

Public Consultation 

The Commission held a public consultation on future funding for EU external action between 
26 November 2010 and 31 January 2011. This process was based on an online questionnaire 
accompanied  by  a  background  paper  'What  funding  for  EU  external  action  after  2013?'.  In 
general,  the  replies  did  not  suggest  the  need  for  a  substantial  change  in  the  current 
implementing  mechanisms,  although  a  significant  majority  of  respondents  supported 
increased flexibility and simplification in implementation. 

Impact Assessment 

The  Commission  carried  out  an  Impact  Assessment  (IA)6  that  considered  3  basic  policy 
alternatives for each objective identified (more differentiation and concentration, strengthened 
coordination  with  EU  Member  States,  more  use  of  innovative  financial  instruments,  further 
flexibility):  a  status  quo  option  (no  change  compared  to  the  10th  EDF),  and  an  alternative 
option with two sub-options for amending the EDF framework. The status quo option was not 
accepted  because  it  would  not  have  solved  the  problems  identified.  The  sub-options  solved 
the  identified  problems  to  different  extents,  each  having  particular  implications.  The  IA 
concluded that for each objective identified, the second sub-option which better adressed the 
new revised strategic orientations of the EU external action should be chosen as it: 

– 

– 

– 

– 

– 

contributed  through  a  sharpened  geographical  focus  to  targeting  resources 
where  they  were  most  needed  having  the  greatest  possible  impact  and  value 
added ; 

contributed through a sharpened sectoral focus to concentrating resources on a 
limited number of sectors, thus increasing the EU's critical mass;  

reinforced the efficiency and the political leverage of EU aid through increased 
division  of  labour  among  donors,  joint  programming  and  use  of  EU  Trust 
Funds; 

increased  the  financial  leverage  of  EU  grant  resources  through  use  of 
innovative financial instruments; 

allowed  the  adaption  of  aid  allocations  rapidly  to  take  into  account  evolving 
circumstances or specific situations (such as crisis, fragility or transition), or to 
implement a more incentives-based approach. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The main policy objectives of EU external action are set in the Lisbon Treaty (Art. 21 TEU). 
In  addition,  the  main  objective  of  EU  development  cooperation  (Art.  208  TFEU)  is  the 
reduction and, in the long term, the eradication of poverty. In this context the EU will comply 
with the commitments and take account of the objectives they have approved in the context of 
the United Nations and other international organisations. 

6 

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SEC:2011:1459:FIN:EN:PDF 

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Regarding  cooperation  with  ACP  countries  and  regions, 
complemented by the Cotonou Agreement. 

this 

legal  framework 

is 

This proposal is presented by the Commission on the basis of an Internal Agreement for the 
11th EDF7 which foresees that a Council Regulation on the implementation of the 11th EDF 
under  the  Cotonou  Agreement  should  be  adopted  by  unanimity,  on  a  proposal  by  the 
Commission and after consulting the European Investment Bank (EIB). 

4. 

BUDGETARY IMPLICATION 

N/A  

5. 

MAIN ELEMENTS 

The 11th EDF Implementation Regulation was prepared with the following objectives: 

– 

in line with the key principles of simplification and increased effectiveness, to align 
the  text  as  much  as  possible  with  the  main  provisions  of  the  Commission  proposal 
for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  a 
instrument  for  development  cooperation  (DCI)8  (in  particular  on 
financing 
programming)  and  of  the  Commission  proposal  for  a  Regulation  of  the  European 
Parliament  and  of  the  Council  establishing  common  rules  and  procedures  for  the 
implementation of the Union's instruments for external action (CIR)9 (in particular on 
implementation)  which  entails  simplified  and  harmonised  implementing  rules  and 
procedures for all external action instruments (except the EDF and Greenland). This 
effort for alignment also takes into account the results of the negotiations in Council 
on  these  texts  (Coreper  level)  as  well  as  in  Parliament  Committees  when  this 
proposal was drafted, regarding compromises being acceptable for the Commission. 
Moreover, the Commission reserves the right to adapt this proposal after its adoption, 
during  the  negotiations  with  the  Council,  in  order  to  continue  to  ensure  coherence 
with  the  texts  of  the  DCI  and  the  CIR  being  negotiated  in  parallel.  This  alignment 
will help pave the way towards possible inclusion of the EDF into the EU budget in 
the  Multiannual  Financial  Framework  post  2020,  in  line  with  the  Commission 
proposals made in the above mentioned Communication ‘A budget for Europe 2020' 
and with the European Council Conclusions of February 8th 2013. 

– 

to ensure the compliance of the text with the provisions of the Cotonou Agreement, 
in  particular  its  annex  IV  on  implementation  and  management  procedures,  while 
simplifying the text compared to the 10th EDF Implementing Regulation10. 

Title I: Objectives and general principles – Articles 1 and 2 

Article 1 (Objectives and eligibility criteria) is aligned as far as possible with Article 2 of 
the Commission proposal for the DCI Regulation on objectives and eligibility criteria, while 
including  also  a  reference  to  the  broader  objectives,  principles  and  values  described  in  the 
Cotonou Agreement, as well as to the development objectives and cooperation strategies set 

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Insert reference to the 11th EDF Internal Agreement 
COM(2011) 840. 
COM(2011) 842. 
Council regulation (EC) No 617/2007 – OJ L152 p.1 of 13.6.2007 

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out  in  the  policies  developed  by  the  Union,  including  the  Agenda  for  Change.  This  Article 
also requires fulfilling the criteria for Official Development Assistance (ODA) established by 
the OECD/DAC to the greatest extent possible. It also explains complementarity between the 
Humanitarian and EDF instruments. 

Article  2  (General  principles)  is  aligned  with  Article  3(5)  to  3(10)  of  the  Commission 
proposal for the DCI Regulation. It sets out the main principles governing the implementation 
of  the  Regulation,  which  are  strengthened  coherence  of  EU  external  action,  improved 
coordination with the Member States and other bilateral or multilateral donors, and a partner 
country-led  and  region-led  development  process  with  mutual  accountability,  through  an 
inclusive  and  participatory  approach  to  development,  using  effective  and  innovative 
cooperation modalities in line with OECD/DAC best practices, thus improving the impact of 
aid and reducing overlap and duplication. 

Title II: Programming and allocation of funds – Articles 3 to 7  

Article 3 (General framework for allocating funds) lays down the framework for allocation 
of funds under the EDF. It is aligned as far as possible with Article 3(2) of the Commission 
proposal  for  the  DCI  Regulation  on  the  principles  of  a  differentiated  approach  towards  the 
partner  countries.  Article  3  provides  for  the  application  of  the  principles  of  the 
Communication 'Increasing the Impact of EU Development Policy: An Agenda for Change' to 
the  EDF,  while  also  ensuring  that  the  requirements  of  the  Cotonou  Agreement  regarding 
resource allocation (criteria described in article 3 of annex IV of the Cotonou Agreement) are 
respected.  Therefore  the  allocation  criteria  are  described  in  two  paragraphs:  paragraph  1 
recalls the Cotonou requirements on needs and performance and paragraph 2 provides more 
specifically the differentiation principles of the Agenda for Change in the determination of the 
indicative national allocations (needs, capacities, commitments, performance and impact). 

Article  4  (General  framework  for  programming)  lays  down  the  general  framework  for 
EDF programming under this Regulation. The Article recalls the principles of partnership and 
alignment  of  the  Cotonou  Agreement,  i.e.  that  programming  should  be  done  whenever 
possible  jointly  with  the  partner  country  or  region  concerned  and  increasingly  aligned  with 
their  poverty  reduction  strategies.  The  Article  also  takes  elements  from  Article  10(2)  of  the 
Commission  proposal  for 
to  ensure  synergies  and 
complementarity of the Union’s measures and those of the Member States, the latter will be 
fully  involved  in  the  programming  process,  including  through  joint  programming.  The 
participation of all Member States including those not locally represented is foreseen because 
of the specific nature of EDF funding. Consultation processes will also involve other donors 
and development actors as well as civil society and regional and local authorities.  

the  DCI  Regulation: 

in  order 

Article  4(3)  describes  circumstances  foreseen  in  the  Cotonou  Agreement  where  the 
Commission  can  establish  specific  provisions  for  programming  and 
implementing 
development aid unilaterally. 

Article  4(4)  recalls  the  EU's  objective  of  concentrating  assistance  announced  in  the 
Communication 'Increasing the Impact of EU Development Policy: An Agenda for Change', 
with  a  limitation  to  3  sectors  of  intervention  for  bilateral  programming,  in  line  with  Article 
5(4) of the Commission proposal for the DCI Regulation.  

Article  5  (Programming  documents)  is  aligned  as  far  as  possible  with  Article  11  of  the 
Commission proposal  for the  DCI Regulation. It outlines the requirement and  principles  for 
preparing  strategy  papers  for  the  countries  and  regions  and,  based  on  these,  multiannual 

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indicative programmes. The article also lists the cases when a strategy paper would not need 
to  be  prepared  in  order  to  simplify  and  streamline  the  programming  process  as  well  as  to 
favour joint programming with Member States and alignment to the national programmes of 
developing  countries.  Thus  the  Article  also  introduces  the  possibility  of  having  a  Joint 
Framework  Document  that  would  lay  down  a  comprehensive  Union  strategy,  of  which 
development policy would be part of. In line with the principle of partnership of the Cotonou 
Agreement, the agreement of the partner country government to use alternative programming 
documents is required; otherwise a strategy paper will have to be drafted. 

Articles  5(5)  and  5(6)  provide  for  EDF-specific  types  of  programming  as  foreseen  in  the 
Cotonou Agreement, i.e. for intra-ACP cooperation and special support programmes.  

Article  6  (Programming  for  countries  and  regions  in  crisis,  post-crisis  or  fragility 
situations) is aligned with Article 12 of the Commission proposal for the DCI Regulation. It 
emphasises the special needs and circumstances of countries in crisis, post-crisis or fragility 
situation, which ought to be considered at the time of drafting of programming documents.  

Article  7  (Approval  and  modification  of  programming  documents)  is  aligned  as  far  as 
possible with Article 14 of the Commission proposal for the DCI Regulation on the approval 
of  strategy  papers  and  on  the  adoption  of  multiannual  indicative  programmes.  The  Article 
states that programming documents (i.e. strategy papers, multiannual indicative programmes 
and special support programmes) are approved by the Commission in accordance with Article 
14  of  this  Regulation.  It  also  reflects  the  provisions  in  the  Cotonou  Agreement  regarding 
transmission  of  documents  to  the  Joint  Parliamentary  Assembly  and  endorsement  of 
programming  documents  by  the  ACP  State  or  region  after  adoption  by  the  Commission.  It 
provides  for  the  review  of  programming,  and  the  revision  where  appropriate  (in  case  of 
substantial  evolution  of  the  strategy  or  of  the  programmed  priorities)  of  the  corresponding 
documents.  The  Article  provides  flexibility  and  simplification  by  establishing  cases  of  non-
substantial modifications, of which the EDF Committee is informed. The Article also foresees 
a  special  urgency  procedure  for  modifying  the  programming  documents  on  duly  justified 
grounds  of  urgency,  equivalent  to  the  comitology  procedure  in  article  8  of  Regulation 
182/201111, as provided for by Article 14(10) of this Regulation. 

Title III: Implementation – Articles 8 to 13  

Article  8  (General  framework  for  implementation)  sets  the  general  framework  for 
implementation of EU assistance in relation with the Financial Regulation of the 11th EDF. 

Article 9 (Adoption of action programmes, individual measures and special measures) is 
aligned as far as possible with Article 2 of the Commission proposal for the CIR Regulation. 
It  provides  the  principle  that  financing  decisions  taken  by  the  Commission  are  to  be  in  the 
form of action programmes, based on the multiannual programming documents. However, in 
line with the multiannual programming documents, individual measures can be also adopted 
outside  the  action  programme  framework.  In  the  event  of  specific  cases  (exceptional 
circumstances or unforeseen needs) provided for in the Cotonou Agreement, the Commission 
may  also  adopt  special  measures  not  provided  for  in  the  multiannual  programming 
documents. The Article establishes the procedures for the adoption of the mentioned financing 
decisions.  It  also  provides  for  specific  environmental  screening,  including  Climate  Change 
and Biodiversity impact. 

11 

Regulation of the European Parliament and of the Council laying down the rules and general principles 
concerning mechanisms for controls by Member States of the Commission's exercise of implementing 
powers 

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Article  10  (Additional  Member  State  contributions)  describes  the  conditions  for  the 
management  of  voluntary  contributions  which  can  be  provided  by  Member  States  to  the 
Commission or the EIB in accordance with the 11th EDF Internal Agreement. 

Article  11  (Taxes,  duties  and  charges)  describes  possible  arrangements  with  respect  to 
taxes,  duties  and  charges,  in  line  with  Article  5  of  the  Commission  proposal  for  the  CIR 
Regulation,  while  respecting  the  provisions  of  Article  31  of  Annex  IV  of  the  Cotonou 
Agreement. 

Article 12 (Protection of the financial interests of the Union) is aligned with Article 7 of 
the  Commission  proposal  for  the  CIR  Regulation.  It  lays  down  measures  to  protect  the 
Union's financial interests, and in particular to enable it (notably the Commission, the Court 
of  Auditors  and  OLAF)  to  carry  out  all  the  necessary  controls  and  checks  on  the  measures 
implemented. 

Article  13  (Rules  on  nationality  and  origin  for  public  procurement,  grants  and  other 
award procedures) is not aligned with Articles 8 and 9 of the Commission proposal for the 
CIR  Regulation,  as  it  refers  to  the  provisions  on  rules  on  nationality  and  origin  which  are 
defined in Article 20 of annex IV of the Cotonou Agreement. 

Title IV: Decision-making procedures – Articles 14 to 16  

Article 14 (Responsibilities of the EDF Committee) describes the tasks and the involvement 
of  the  EDF  Committee  in  the  implementation  of  this  Regulation.  It  aligns  EDF  procedures 
with  Article  15  of  the  Commission  proposal  for  the  CIR,  which  refers  to  the  Regulation  on 
comitology  procedures.  The  procedures  are  equivalent  'mutatis  mutandis'  to  Article  3 
(common  provisions),  5  (examination  procedure)  and  8  (urgency  procedure)  of  Regulation 
182/2011 on comitology.  

Article 15 (The African Peace Facility) establishes ad hoc procedures for the management 
of the African Peace Facility. 

Article 16 (The Investment Facility Committee) describes the structure and the functioning 
of the Investment Facility Committee, set up under the auspices of the EIB according to the 
Internal  Agreement,  in  the  implementation  of  this  Regulation.  It  also  describes  the  modus 
operandi and conditions for EIB operations. 

Title V - Final provisions – Articles 17 to 22 

Article  17  (Participation  by  a  third  country  or  region)  is  based  on  the  10th  EDF 
implementing Regulation, taking into account Article 15 of the Commission proposal for the 
DCI Regulation. It provides for the possibility to extend the eligibility of funding under the 
EDF  envelope  dedicated  to  ACP  countries  to  non-ACP  developing  countries  and  regional 
integration  bodies  with  ACP  participation.  It  also  promotes  the  reinforcement  of  regional 
cooperation programmes between ACP countries, OCTs and Union's outermost regions. 

Article  18  (Monitoring,  reporting  and  evaluation  of  EDF  assistance)  is  aligned  with 
Articles  12  and  13  of  the  Commission  proposal  for  the  CIR  Regulation.  It  commits  the 
Commission  and  the  EIB  to  regularly  evaluate  the  results  of  the  implemented  policies  and 
programmes  and  projects,  and  for  the  Commission,  to  look  at  the  effectiveness  of 
programming  itself,  and  to  prepare  a  biennial  Commission  report  on  the  progress  and 
implementation  of  this  Regulation.  It  also  provides  for  a  Performance  review  to  assess  the 
degree of realisation of commitments and disbursements and the results and impact of the aid 

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provided,  and  for  a  mid-term  and  end-term  evaluations  of  the  ACP  Investment  Facility,  as 
foreseen in Annex II to the Cotonou Agreement. 

Article 19 (Climate action and biodiversity expenditure) is aligned with Article 14 of the 
Commission proposal for the CIR Regulation. It provides for a specific tracking system based 
on the OECD methodology (‘Rio markers’). 

Article  20  (European  External  Action  Service)  is  a  horizontal  article  to  be  found  in  all 
Commission  proposals  for  the  Regulations  on  external  action,  such  as  Article  21  of  the 
Commission  proposal  for  the  DCI  Regulation.  It  highlights  that  this  Regulation  is  to  be 
applied in accordance with the Council Decision establishing the organisation and functioning 
of the European External Action Service12, in particular Article 9 thereof. 

Article 21 (Transitional measures) provides for a bridging facility to ensure the availability 
of  funds  in  case  of  late  entry  into  force  of  the  11th  EDF,  in  particular  in  view  of  possible 
delays  in  the  ratification  process  of  the  11th  EDF  Internal  Agreement.  Until  the  entry  into 
force of the 11th EDF, action programmes, individual measures, special measures and specific 
action  programmes  for  support  expenditure  should  thus  be  financed  within  the  limits  of  the 
balances of the previous EDFs and from funds decommitted from projects under these EDFs. 
Funds committed13 under the bridging facility should be accounted for under the 11th EDF. 
By adopting the current regulation by unanimity, the Council takes the decision on the use of 
the balances of previous EDFs, described in Article 1(5) of the 10th EDF Internal Agreement 
and  in  Article  5  of  Annex  Ib  to  the  Cotonou  Agreement.  This  Article  also  provides  for  the 
continuation  of  the  10th  EDF  Financial  Regulation  pending  the  entry  into  force  of  the  11th 
EDF Financial Regulation.  

Article 22 (Entry into force) provides that this Regulation shall apply from 1 January 2014 
until the final date of application of the 11th EDF Internal Agreement. 

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Council Decision (EU) 2010/427 
"Approved" according to the EIB terminology 

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2013/0211 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on the implementation of the 11th European Development Fund 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on European Union and to the Treaty on the Functioning of the 
European Union, 

Having regard to the Partnership Agreement between the members of the African, Caribbean 
and  Pacific  Group  of  States  of  the  one  part,  and  the  European  Community  and  its  Member 
States, of the other part, signed in Cotonou on 23 June 200014 (hereinafter referred to as the 
Cotonou Agreement), 

Having regard to the Internal Agreement between the Representatives of the Governments of 
the  Member  States,  meeting  within  the  Council,  on  the  financing  of  European  Union  aid 
under  the  multiannual  financial  framework  for  the  period  2014  to  2020,  in  accordance  with 
the  Cotonou  Agreement,  and  on  the  allocation  of  financial  assistance  for  the  Overseas 
Countries and Territories to which Part Four of the Treaty on the Functioning of the European 
Union applies15 ("the Internal Agreement"), and in particular Article 10(1) thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the opinion of the European Investment Bank (EIB), 

Whereas: 

(1) 

(2) 

Decision  No  (…)  of  the  ACP-EU  Council  of  Ministers16  establishes  the  multiannual 
financial framework for cooperation with ACP countries for the period 2014 to 2020 
by adopting a new Annex Ic to the Cotonou Agreement. 

The Internal Agreement defines the various financial envelopes of the 11th European 
Development  Fund  ("the  11th  EDF"),  the  contribution  key  and  contributions  to  the 
11th EDF, sets up the EDF Committee and the Investment Facility Committee ("the IF 
Committee"), and determines the voting weights and qualified majority rule therein. 

(3) 

Furthermore,  the  Internal  Agreement  sets  the  aggregate  amount  of  Union  aid  to  the 
African,  Caribbean  and  Pacific  Group  of  States  ("the  ACP  States")  (excluding  the 

14 

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OJ L 317, 15.12.2000, p. 3. Agreement as amended by the Agreement signed in Luxembourg on 25 
June 2005 
(OJ L 287, 28.10.2005, p. 4) and by the Agreement signed in Ouagadougou on 22 June 2010 (OJ L 287, 
4.11.2010, p. 3). 
Insert reference of the 11th EDF Internal Agreement: OJ (…) 
Insert reference of the ACP-EU Council decision: OJ (…) 

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Republic of South Africa) and to the Overseas Countries and Territories ("the OCTs") 
for  the  seven-year  period  2014  to  2020  at  EUR  30  506  million  contributed  by  the 
Member States. From this amount, EUR (…) million are allocated to the ACP States 
as specified in the multiannual financial framework 2014 to 2020 referred to in Annex 
Ic  to  the  Cotonou  Agreement,  EUR  (...)  million  are  allocated  to  the  OCTs  and  EUR 
(…)  million  are  allocated  to  the  Commission  for  support  expenditures  linked  to 
programming and implementation of the EDF by the Commission. 

(4) 

The 11th EDF allocation to the OCTs is governed by Council Decision (…) of (…) on 
the association of the OCTs, with the European Union17 and by its implementing rules 
and any subsequent updates thereof. 

(5)  Measures  covered  by,  and  eligible  for  funding  under  Council  Regulation  (EC)  No 
1257/96  of  20  June  1996  concerning  humanitarian  aid18  should  only  in  exceptional 
circumstances  be  financed  under  the  11th  EDF,  where  such  assistance  is  required  to 
ensure continuity of cooperation from crisis to stable conditions for development and 
cannot be financed from the general budget of the European Union. 

(6) 

(7) 

(8) 

On  11  April  2006,  the  Council  adopted  the  principle  of  funding  the  African  Peace 
Facility from the EDF. 

The  ACP  countries  will  also  be  eligible  for  Union  assistance  from  thematic 
programmes  provided  by  Regulation  (…)  of  the  European  Parliament  and  of  the 
Council  of  (…)  establishing  a  financing  instrument  for  development  cooperation,  by 
Regulation (…) of the European Parliament and of the Council of (…) establishing a 
Partnership Instrument for cooperation with third countries, by Regulation (…) of the 
European  Parliament  and  of  the  Council  of  (…)  establishing  an  Instrument  for 
Stability and by Regulation (…) of the European Parliament and of the Council of (…) 
establishing a financing instrument for the promotion of democracy and human rights 
worldwide.  Those  programmes  should  add  value  to,  be  consistent  with  and 
complementary to the programmes funded under the 11th EDF. 

As  referred  to  in  Article  13(2)  of  Regulation  (EU)  No  […/…]  of  the  European 
Parliament and of the Council establishing "Erasmus For All" The Union Programme 
for  Education,  Training,  Youth  and  Sport19,  in  order  to  promote  the  international 
dimension of higher education, an indicative amount of EUR 1 812 100 000 from the 
different  external  instruments  (Development  Cooperation  Instrument,  European 
Neighbourhood  Instrument,  Instrument  for  Preaccession  Assistance,  Partnership 
Instrument  and  the  European  Development  Fund),  will  be  allocated  to  actions  of 
learning mobility to or from non EU countries and to cooperation and policy dialogue 
with authorities/ institutions/ organisations from these countries. The provisions of the 
Regulation (EU) No […/…] ["Erasmus for All"] will apply to the use of those funds. 
The funding should be made available through 2 multiannual allocations only covering 
the  first  4  years  and  the  remaining  3  years  respectively.  This  funding  should  be 
reflected in the multiannual indicative programming under this Regulation, in line with 
the identified needs and priorities of the  countries concerned. The allocations should 
be  revised  in  line  with  the  EU  external  priorities  in  case  of  major  unforeseen 
circumstances or important political changes. 

17 
18 
19 

Insert reference of the revised OAD: OJ (…) 
OJ L 163, 2.7.1996, p. 1. 
OJ L […]. 

EN 

10 

   EN 

                                                 
(9) 

(10) 

The regional cooperation among the ACP States, the OCTs and the Union's outermost 
regions should be further encouraged. 

In order to implement the 11th EDF, the procedure for programming, examining and 
approving aid  should be  established and the  detailed rules  for supervising  the  use of 
aid  should  be  laid  down.  On  (…)  the  representatives  of  the  Governments  of  the 
Member States meeting within the Council adopted Decision (…) on the provisional 
application  of  the  Internal  Agreement20,  for  the  purpose  of  the  adoption  of  the 
Implementation  Regulation  and  the  Financial  Regulation  and,  inter  alia,  for  the 
purposes of establishing the EDF Committee and the IF Committee. 

(11)  The  European  Consensus  on  Development  of  22  December  200521  and  the  Council 
Conclusions  on  the  Commission  Communications  'Increasing  the  impact  of  EU 
development  policy:  an  Agenda  for  Change'22,  and  on  'The  future  approach  to  EU 
budget  support  to  third  countries'23,  should  provide  the  general  policy  framework  to 
guide  the  programming  and  implementation  of  the  11th  EDF,  including  the 
internationally agreed principles on aid effectiveness such as the principles set out in 
the  Paris  Declaration  on  Aid  Effectiveness  (2005),  the  EU  Code  of  Conduct  on 
Division  of  Labour  in  Development  Policy  (2007),  the  EU  Guidelines  for  the  Accra 
Agenda for Action (2008), and the Busan Outcome Document (2011) and the United 
Nations Convention on the Rights of Persons with Disabilities to which the Union is a 
party. 

(12)  The Union also aims to ensure coherence with other areas of its external action when 
formulating  the  Union's  development  cooperation  policy  and  its  strategic  planning 
programming and implementation of measures. 

(13)  Fighting  climate  change  and  protecting  the  environment  are  among  the  great 
challenges which face the Union and where the need for international action is urgent. 
In  accordance  with  the  intent  stated  in  Commission  Communication  "A  budget  for 
Europe 2020" of 29 June 2011, this Regulation should as far as possible contribute to 
the  objective  of  addressing  at  least  20%  of  the  overall  EU  funding  to  climate  action 
objectives, while respecting the principle of partnership with ACP countries enshrined 
in the Cotonou Agreement. Actions in low carbon and climate resilient society should, 
wherever possible, be mutually supportive in order to reinforce their impacts. 

(14)  The  Union  and  the  Member  States  should  improve  the  consistency  and  the 
complementarity of their respective policies on development cooperation, in particular 
by responding to partner countries' and regions' priorities at country and regional level. 
To  ensure  that  the  Union's  development  cooperation  policy  and  that  of  the  Member 
States  complement  and  reinforce  each  other,  it  is  appropriate  to  provide  for  joint 
programming  procedures  which  should  be  implemented  whenever  possible  and 
relevant. 

(15)  The  EU-Africa  Summit  in  December  2007  adopted  the  Africa-EU  Strategic 
Partnership24,  confirmed  by  the  EU-Africa  summit  in  November  2010.  The  Council 

20 
21 
22 
23 
24 

Insert reference to the decision on provisional application  
OJ C 46, 24.2.2006, p. 1. 
Council document 9369/12 of 14 May 2012 
Council document 9371/12 of 14 May 2012 
Council document 16344/07 

EN 

11 

   EN 

                                                 
also  adopted  conclusions  on  the  Joint  Caribbean-EU  Partnership  Strategy  on 
November  19th  201225,  replacing  the  Council  conclusions  on  the  EU-Caribbean 
Partnership of April 11th 2006. For the Pacific, the Council adopted conclusions on a 
renewed Development Partnership on May 14th 201226, updating and complementing 
the strategy adopted in 2006 (Council Conclusions of July 17th 2006). 

(16)  The  financial  interests  of  the  European  Union  should  be  protected  through 
proportionate  measures  throughout  the  expenditure  cycle,  including  the  prevention, 
detection and investigation of irregularities, the recovery of funds lost, wrongly paid or 
incorrectly used and, where appropriate, penalties. These measures should be carried 
out  in  accordance  with  the  applicable  agreements  concluded  with  international 
organisations and third countries.  

(17)  According  to  Article  1(5)  of  the  10th  EDF  Internal  Agreement  and  to  Article  5  of 
Annex Ib to the Cotonou Agreement, the funds of the 10th EDF (apart from amounts 
allocated  to  the  Investment  Facility,  excluding  the  related  interest  rate  subsidies), 
should no longer be committed beyond 31 December 2013 unless the Council decides 
otherwise unanimously, on a proposal from the Commission. It is appropriate hereby 
to  provide  that  these  funds  should  be  used  to  ensure  continuity  in  case  of  late  entry 
into  force  of  the  11th  EDF.  As  a  complement  to  Article  10  of  the  11th  EDF  Internal 
Agreement  which  foresees  that  the  10th  EDF  Implementation  Regulation  should 
remain in force pending the adoption of the 11th EDF Implementation Regulation, the 
continuation  of  the  10th  EDF  Financial  Regulation  should  also  be  foreseen,  pending 
the adoption of the 11th EDF Financial Regulation. 

(18)  The  organisation  and  functioning  of  the  European  External  Action  Service  are 

described in Council Decision 2010/427/EU, 

HAS ADOPTED THIS REGULATION: 

TITLE I 
OBJECTIVES AND GENERAL PRINCIPLES 

Article 1 
Objectives and eligibility criteria 

1. 

2. 

Geographic  cooperation  with  the  ACP  countries  and  regions  in  the  context  of  the 
11th EDF shall be founded on the objectives, basic principles and values reflected in 
the general provisions of the Cotonou Agreement. 

In  particular,  and  within  the  framework  of  the  principles  and  objectives  of  the 
Union's  external  action,  the  European  Consensus  on  Development  and  subsequent 
modifications and additions thereto:  

(a) 

the  primary  objective  of  cooperation  under  this  Regulation  shall  be  the 
reduction and, in the long term, the eradication of poverty; 

25 
26 

Council document 16455/12 
Council document 9877/12 

EN 

12 

   EN 

                                                 
(b) 

cooperation under this Regulation will also contribute to: 

(i) fostering sustainable economic, social and environmental development, and 

(ii) consolidating and supporting democracy, the rule of law, good governance, 
human rights and the relevant principles of international law. 

The  achievement  of  these  objectives  shall  be  measured  using  relevant  indicators, 
including  human  development  indicators,  in  particular  Millennium  Development 
Goal (MDG) 1 for subparagraph (a) and MDG 1 to 8 for subparagraph (b) and, after 
2015,  other  indicators  agreed  at  international  level  by  the  Union  and  its  Member 
States. 

Programming  shall  be  designed  so  as  to  fulfill  to  the  greatest  extent  possible  the 
criteria  for  official  development  assistance  (hereinafter  referred  to  in  as  'ODA') 
established by the OECD/DAC.  

Actions  covered  by  Council  Regulation  (EC)  No  1257/96  of  20  June  1996 
concerning  humanitarian  aid27  and  eligible  for  funding  under  that  Regulation  shall 
not,  in  principle,  be  funded  under  this  Regulation,  without  prejudice  to  the  need  to 
ensure continuity of cooperation from crisis to stable conditions for development. In 
those cases, special consideration shall be given to ensuring that humanitarian relief, 
rehabilitation and development assistance are effectively linked. 

Article 2 
General principles 

In  implementing  this  Regulation,  consistency  with  other  areas  of  Union  external 
action and with other relevant Union policies and policy coherence for development 
shall be ensured, in accordance with Article 208 of the Treaty on the Functioning of 
the  EU.  To  this  end,  measures  financed  under  this  Regulation,  including  those 
managed by the European Investment Bank (EIB), shall be based on the cooperation 
policies  set  out  in  documents  such  as  arrangements,  declarations  and  action  plans 
between the Union and the third countries and regions concerned, and on the Union’s 
decisions, specific interests, policy priorities and strategies. 

The  Union  and  the  Member  States  shall  seek  regular  and  frequent  exchanges  of 
information, including with other donors, and promote better donor coordination and 
complementarity  by  working  towards  joint  multiannual  programming,  based  on 
partner countries' poverty reduction or equivalent development strategies. They may 
undertake  joint  action  including  joint  analysis  of  and  joint  response  to  these 
strategies  identifying  priority  sectors  of  intervention  and  in-country  division  of 
labour,  by  joint  donor-wide  missions  and  by  the  use  of  co-financing  and  delegated 
cooperation arrangements. 

The  Union  shall  promote  a  multilateral  approach  to  global  challenges  and  shall 
cooperate  with  Member  States  and  partner  countries  in  this  respect.  Where 
appropriate,  it  shall  foster  cooperation  with  international  organisations  and  bodies 
and other bilateral donors. 

3. 

4. 

1. 

2. 

3. 

27 

OJ L 163, 2.7.1996, p. 1. 

EN 

13 

   EN 

                                                 
4. 

5. 

Relations between the EU and its Member States and partner countries are based on 
and  will  promote  shared  values  of  human  rights,  democracy  and  the  rule  of  law  as 
well as the principles of ownership and of mutual accountability.  

Further, relations with partner countries shall take into account their commitment and 
track record in implementing international agreements and contractual relations with 
the Union. 

The Union shall promote effective cooperation with partner countries and regions in 
line with international best practice. It shall align its support with partners' national 
or  regional  development  strategies,  reform  policies  and  procedures  wherever 
possible,  and  support  democratic  ownership  and  domestic  accountability.  To  that 
end, it shall promote:  

(a) 

(b) 

(c) 

a  development  process  that  is  transparent,  partner  country  or  region  led  and 
owned, including the promotion of local expertise; 

the  empowerment  of  the  population  of  partner  countries,  inclusive  and 
participatory  approaches  to  development  and  a  broad  involvement  of  all 
segments  of  society  in  the  development  process  and  in  national  and  regional 
dialogue, including political dialogue. Particular attention shall be given to the 
respective  roles  of  parliaments,  local  authorities  and  civil  society,  inter  alia 
regarding participation, oversight and accountability; 

effective cooperation modalities and instruments in line with OECD/DAC best 
practices, including the use of innovative instruments such as blending grants 
and loans and other risk-sharing mechanisms in selected sectors and countries 
and  private-sector  engagement,  with  due  regard  to  the  issues  of  debt 
sustainability  and 
the  number  of  such  mechanisms.  All  programmes, 
interventions  and  cooperation  modalities  and  instruments  shall  be  adapted  to 
the particular circumstances of each partner country or region, with a focus on 
programme-based  approaches,  on  delivery  of  predictable  aid  funding,  on  the 
mobilisation  of  private  resources,  including  from  the  local  private  sector,  on 
universal and non-discriminatory access to basic services, and the development 
and use of country systems;  

(d)  mobilisation of domestic revenue and reinforcement of partner countries’ fiscal 

policy with the purpose of reducing poverty and aid dependence; 

(e) 

(f) 

(g) 

impact  of  policies  and  programming 

improved 
through  coordination, 
consistency  and  harmonisation  between  donors  to  create  synergies  and  avoid 
overlap  and  duplication,  to  improve  complementarity  and  to  support  donor-
wide initiatives; 

coordination in partner countries and regions using agreed guidelines and best 
practice principles on coordination and aid effectiveness; 

results-based  approaches  to  development  including  through  transparent  and 
country-led  results  frameworks  based  on,  where  appropriate,  internationally 
agreed  targets  and  indicators  such  as  those  of  the  MDGs  to  assess  and 
communicate  the  results,  including  the  outputs,  outcomes  and  impact  of 
development aid. 

EN 

14 

   EN 

6. 

7. 

8. 

1. 

2. 

1. 

2. 

The Union shall support as appropriate the implementation of bilateral, regional and 
multilateral  cooperation  and  dialogue,  the  development  dimension  of  partnership 
agreements  and  triangular  cooperation.  The  Union  shall  promote  south-south 
cooperation. 

In its development cooperation activities the Union shall as appropriate draw on and 
share the reform and transition experiences of Member States and lessons learned. 

The Union shall seek regular exchanges of information with civil society. 

TITLE II  
PROGRAMMING AND ALLOCATION OF FUNDS 

Article 3 
General framework for allocating funds 

The Commission shall determine the multiannual indicative resource allocations for 
each  ACP  country  and  region  and  for  Intra-ACP  cooperation  on  the  basis  of  the 
criteria provided for in Articles 3, 9 and 12c of Annex IV to the Cotonou Agreement, 
within the financial limits set out in Article 2 of the Internal Agreement.  

In the determination of the indicative national allocations, a differentiated approach 
shall be pursued, in order to ensure that partner countries are provided with specific, 
tailor-made cooperation based on: 

(a) 

their needs; 

(b) 

their  capacities  to  generate  and  access  financial  resources  and  absorption 
capacities;  

(c) 

their commitments and performance; and 

(d) 

the potential impact of Union assistance.  

The countries most in need, in particular the least developed countries, low income 
countries and countries in crisis, post-crisis, fragile and vulnerable situation, shall be 
given priority in the resource allocation process.  

Article 4 
General framework for programming 

The process of programming for assistance to the ACP countries and regions under 
the  Cotonou  Agreement  shall  be  undertaken  in  accordance  with  the  general 
principles  referred  to  in  Articles  1  to  14  of  Annex  IV  to  that  Agreement  and  in 
Articles 1 and 2 of this Regulation. 

Programming  will,  except  in  the  cases  provided  for  in  paragraph  3,  be  undertaken 
jointly  with  the  partner  country  or  region  concerned  and  increasingly  aligned  with 
the partner country or region's poverty reduction, or equivalent, strategies. 

EN 

15 

   EN 

The  Union  and  the  Member  States  shall  consult  each  other  at  an  early  stage  of  the 
programming  process  in  order  to  promote  complementarity  and  consistency  among 
their cooperation activities.  

The  Union  shall  consult  the  EIB  on  matters  related  to  its  expertise  and  operations, 
and  other  donors  and  development  actors  including  representatives  of  civil  society 
and regional and local authorities.  

The  Commission  and  the  Member  States  locally  represented  shall  strive  to  joint 
programming where possible and appropriate. All other Member States are invited to 
contribute  for  the  purpose  of  reinforcing  joint  external  action  of  the  Union.  Joint 
programming should build on the comparative advantages of all Union donors. 

In circumstances such as those referred to in Article 3(3) and Article 4(5) of Annex 
IV to the Cotonou Agreement, the Commission may establish specific provisions for 
programming and implementing development aid unilaterally in accordance with the 
relevant Union policies. 

The  Union  will  in  principle  concentrate  its  bilateral  assistance  on  a  maximum  of 
three sectors. 

Article 5 
Programming documents 

Strategy  papers  are  documents  drawn  up  by  the  Union  and  the  partner  country  or 
region  concerned  to  provide  a  coherent  policy  framework  for  development 
cooperation,  consistent  with  the  overall  purpose  and  scope,  objectives  and  general 
principles  of  the  Cotonou  Agreement,  and  in  line  with  the  principles  established  in 
Articles 2, 8 and 12a of Annex IV to that Agreement. 

The  preparation  and  implementation  of  strategy  papers  must  comply  with  the 
principles  of  aid  effectiveness:  national  ownership,  partnership,  coordination, 
harmonisation,  alignment  with  recipient  country  or  regional  systems,  transparency, 
mutual  accountability  and  results  orientation  as  laid  down  in  Article  2  of  this 
Regulation. The programming period must become, in  principle, synchronised with 
partner country strategy cycles. 

3. 

4. 

1. 

2. 

With the consent of the partner country or region concerned, no strategy paper will 
be required for: 

(a) 

(b) 

(c) 

countries  or  regions  having  a  development  strategy  in  the  form  of  a 
development  plan  or  a  similar  development  document  accepted  by  the 
Commission  as  a  basis  for 
indicative 
programme, when adopting the latter document;  

the  corresponding  multiannual 

countries  or  regions  for  which  a  joint  multiannual  programming  document 
between the Union and Member States has been agreed; 

countries or regions where a Joint Framework Document (JFD) already exists 
that  provides  a  comprehensive  Union  approach  to  the  relations  with  that 
partner country or region, including Union development policy; 

EN 

16 

   EN 

(d) 

regions having a jointly agreed strategy with the Union; 

(e) 

countries  where  the  Union  intends  to  synchronise  its  strategy  with  a  new 
national  cycle  starting  before  1  January  2017;  in  such  cases  the  multiannual 
indicative  programme  for  the  interim period  between 2014 and  the beginning 
of the new national cycle will contain the Union's response for that country. 

Strategy papers shall not be required for the countries or regions receiving an initial 
allocation  of  Union  funds  under  this  Regulation  not  exceeding  EUR  50  million  for 
the  2014-2020  period.  In  such  cases,  the  multiannual  indicative  programmes  will 
contain the Union's response for these countries or regions.  

If  the  options  referred  to  in  paragraphs  2  and  3  are  not  acceptable  for  the  partner 
country or region, a strategy paper shall be prepared. 

Except  in  the  circumstances  referred  to  in  Article  4(3),  multiannual  indicative 
programmes  will  be  based  on  a  dialogue  with  the  partner  country  or  region  and  be 
drawn up on the basis of the strategy papers or similar documents referred to in this 
Article,  and  will  be  the  subject  of  an  agreement  with  the  country  or  region 
concerned.  

For  the  purpose  of  this  Regulation,  the  joint  multiannual  programming  document 
provided  for  in  paragraph  2(b)  and  complying  with  the  principles  and  conditions 
established  in  this  paragraph,  including  an  indicative  allocation  of  funds,  may  in 
accordance with the procedure set out in Article 14 be considered as the multiannual 
indicative programme in agreement with the partner country or region. 

Multiannual indicative programmes will set out the priority areas selected for Union 
financing,  the  specific  objectives,  the  expected  results,  the  performance  indicators 
and the indicative financial allocation, both overall and per priority area.  

In  addition  to  programming  documents  for  countries  and  regions,  an  intra-ACP 
strategy paper and related multiannual indicative programme will be prepared jointly 
by  the  Commission  and  the  ACP  through  the  ACP  secretariat,  in  line  with  the 
principles established in Articles 12 to 14 of Annex IV to the Cotonou Agreement.  

The  specific  provisions  referred  to  in  Article  4(3)  of  this  Regulation  may  take  the 
form of special support  programmes,  taking into account the special considerations 
referred to in Article 6(1) of this Regulation.  

Article 6 
Programming for countries and regions in crisis, post-crisis or fragility situations 

When drawing up programming documents for countries and regions in crisis, post-
crisis,  or  fragility  situations,  due  account  will  be  taken  of  the  vulnerability,  special 
needs and circumstances of the countries or regions concerned.  

Proper attention will be given to conflict prevention, state and peace building, post-
conflict reconciliation and reconstruction measures as well as to the role of women in 
these processes. 

3. 

4. 

5. 

6. 

1. 

EN 

17 

   EN 

Where partner countries or regions are directly involved in, or affected by, a crisis, 
post-crisis  or  fragility  situation,  special  emphasis  will  be  placed  on  stepping  up 
coordination  between  relief,  rehabilitation  and  development  amongst  all  relevant 
actors to help the transition from an emergency situation to the development phase 
and  to  increase  resilience.  Programming  for  countries  and  regions  in  fragility  or 
regularly  subject  to  natural  disasters  will  provide  for  disaster  preparedness  and 
prevention and for managing the consequences of such disasters. 

2. 

For countries or regions experiencing crisis, post-crisis or fragility situations, an ad 
hoc review of the country's or region's cooperation strategy may be carried out. Such 
reviews may propose a specific and adapted strategy to ensure the transition to long-
term  cooperation  and  development,  promoting  a  better  coordination  and  transition 
between the humanitarian and development policy instruments. 

Article 7 
Approval and modification of programming documents 

1. 

The  programming  documents,  including  the  indicative  allocations  therein,  shall  be 
approved by the Commission in accordance with the procedure set out in Article 14.  

At  the  same  time  as  the  programming  documents  are  transmitted  to  the  EDF 
Committee referred to in Article 14, the Commission shall also transmit them to the 
Joint Parliamentary Assembly for information. 

The  programming  documents  shall  subsequently  be  endorsed  by  the  ACP  State  or 
region  concerned.  Countries  or  regions  without  a  signed  programming  document 
remain  eligible  to  funding  under  the  conditions  laid  down  in  Article  4(3)  of  this 
Regulation.  

Strategy  papers  and  multiannual  indicative  programmes,  including  the  indicative 
allocations  therein,  may  be  adjusted  taking  into  account  reviews  as  foreseen  in 
Articles 5, 11 and 14 of Annex IV of the Cotonou Agreement.  

The  procedure  set  out  in  Article  14  shall  also  apply  to  substantial  modifications 
which  have  the  effect  of  significantly  modifying  the  strategy,  its  programming 
documents  and/or  its  programmable  resource  allocation.  Where  applicable,  the 
corresponding  addenda  to  the  programming  documents  shall  be  subsequently 
endorsed by the ACP State or region concerned. 

The  procedure  referred  to  in  paragraph  1  shall  not  apply  to  non-substantial 
modifications to programming documents, making technical adjustments, reassigning 
funds within the indicative allocations per priority area, or increasing or decreasing 
the  size  of  the  initial  indicative  allocation  by  less  than  20%,  provided  that  these 
modifications  do  not  affect  the  priority  areas  and  objectives  set  out  in  these 
documents. In such case, the Commission shall inform the EDF committee of these 
modifications within one month. 

On duly justified imperative grounds of urgency, such as crises or immediate threats 
to  democracy,  the  rule  of  law,  human  rights  or  fundamental  freedoms,  including 
those cases referred to in Article 6(2), the procedure referred to in Article 14(10) may 
be used to modify the programming documents referred to in Article 5.  

2. 

3. 

4. 

5. 

EN 

18 

   EN 

TITLE III  
IMPLEMENTATION 

Article 8 
General framework for implementation 

The implementation of the assistance provided to the ACP countries and regions managed by 
the Commission and the EIB under the Cotonou Agreement shall be undertaken in accordance 
with  the  Financial  Regulation  referred  to  in  Article  10(2)  of  the  Internal  Agreement 
(hereinafter the "EDF Financial Regulation"). 

Article 9 
Adoption of action programmes, individual measures and special measures 

1. 

The Commission shall adopt annual action programmes, where required based on the 
indicative programming documents referred to in Article 5. 

2. 

3. 

4. 

In  the  case  of  recurrent  actions,  it  may  also  adopt  multi-annual  action  programmes 
for a period of up to three years. 

When necessary, an action may be adopted as an individual measure before or after 
the adoption of annual or multi-annual action programmes.  

The  action  programmes  and  individual  measures  shall  be  prepared  by  the 
Commission with the partner country or region, involving the Member States locally 
represented and coordinating where appropriate with other donors, notably in cases 
of joint programming, and with the EIB.  

Action programmes shall specify for each action the objectives pursued, the expected 
results  and  main  activities,  methods  of  implementation,  budget  and  indicative 
timetable,  any  associated  support  measures  and  performance  monitoring 
arrangements.  

They shall state how they take current or planned EIB activities into account.  

In  the  cases  referred  to  in  Article  4(3)  and  in  cases  of  unforeseen  needs,  the 
Commission may adopt special measures. 

The action programmes and the individual measures provided for in paragraph 1 for 
which the Union's financial assistance exceeds EUR 10 million and special measures 
for which the Union's financial assistance exceeds EUR 30 million shall be adopted 
by  the  Commission  in  accordance  with  the  procedure  set  out  in  Article  14  of  this 
Regulation.  

That  procedure  shall  not  be  required  for  action  programmes  and  measures  below 
those  thresholds,  and  for  non-substantial  amendments  thereto.  Non-substantial 
amendments are technical adjustments such as extending the implementation period, 
reassigning funds within the forecast budget, or increasing or reducing the size of the 
budget  by  less  than  20  %  of  the  initial  budget,  provided  these  amendments  do  not 
substantially affect the objectives of the initial action programme or measure. In such 

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case, action programmes and measures and non-substantial amendments thereto shall 
be adopted by the Commission, which shall inform the EDF Committee within one 
month.  

On duly justified imperative grounds of urgency, such as crises, or immediate threats 
to  democracy,  the  rule  of  law,  human  rights  or  fundamental  freedoms,  the 
Commission  may  adopt  individual  or  special  measures  or  amendments  to  existing 
action  programmes  and  measures,  in  accordance  with  the  procedure  referred  to  in 
Article 14(10).  

The  Commission  shall  adopt  specific  action  programmes  for  support  expenditures 
referred  to  in  Article  6(2)  of  the  Internal  Agreement  in  accordance  with  the 
procedure set out in Article 14. Any  changes in the action programmes  for  support 
expenditures shall be adopted in accordance with the same procedure. 

Appropriate  environmental  screening,  including  climate  change  and  biodiversity 
including  where  applicable 
impacts,  shall  be  undertaken  at  project 
environmental  impact  assessment  (EIA)  for  environmentally  sensitive  projects,  in 
particular  for  major  new  infrastructure.  Where  relevant,  strategic  environmental 
assessments (SEA) shall be used in the implementation of sectoral programmes. The 
involvement  of  interested  stakeholders  in  environmental  assessments  and  public 
access to the results shall be ensured. 

level 

Article 10 
Additional Member State contributions 

At their own initiative, Member States may provide the Commission or the EIB with 
voluntary contributions in accordance with Article 1(9) of the Internal Agreement to 
help  achieve  the  objectives  of  the  Cotonou  Agreement  outside  joint  co-financing 
arrangements.  Such  contributions  shall  not  affect  the  overall  allocation  of  funds 
under the 11th EDF. They shall be treated in the same way as Member States' regular 
contributions  referred  to  in  Article  1(2)  of  the  Internal  Agreement  except  for  the 
provisions  in  Articles  6  and  7  of  the  Internal  Agreement  for  which  specific 
arrangements may be laid down in a bilateral contribution agreement.  

Earmarking  shall  only  be  made  in  duly  justified  circumstances,  for  example  in 
response to the exceptional circumstances as referred to in Article 4(3). In this case, 
voluntary  contributions  entrusted  to  the  Commission  or  the  EIB  shall  be  treated  as 
assigned revenue in accordance with the EDF Financial Regulation.  

The additional funds shall be integrated in the programming and review process and 
in the annual action programmes, individual measures and special measures referred 
to in this Regulation as well as reflect partner country or region ownership.  

Any  resulting  change  in  the  action  programmes,  individual  measures  and  special 
measures shall be adopted by the Commission in accordance with the provisions of 
Article 9.  

Member  States  entrusting  the  Commission  or  the  EIB  with  additional  voluntary 
contributions to help achieve the objectives of the Cotonou Agreement shall inform 
the Council and the EDF/IF Committee of these contributions in advance.  

5. 

6. 

1. 

2. 

3. 

4. 

5. 

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Article 11 
Taxes, duties and charges 

Union  assistance  shall  not  generate,  or  activate  the  collection  of  specific  taxes,  duties  or 
charges. 

Without  prejudice  to  Article  31  of  Annex  IV  of  the  Cotonou  Agreement,  such  taxes,  duties 
and charges may be eligible under the conditions laid down in the EDF Financial Regulation 
referred to in Article 10(2) of the Internal Agreement. 

1. 

2. 

3. 

4. 

Article 12 
Protection of the financial interests of the Union 

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Regulation are implemented, the financial interests of the Union 
are protected by the application of preventive measures against fraud, corruption and 
any other illegal activities, by effective checks and, if irregularities are detected, by 
the  recovery,  or  where  appropriate  by  the  restitution  of  the  amounts  wrongly  paid 
and, where appropriate, by effective, proportionate and dissuasive administrative and 
financial penalties. 

The Commission or its representative and the Court of Auditors shall have the power 
of audit and verification, on the basis of documents and on-the-spot checks, over all 
grant  beneficiaries,  contractors  and  subcontractors  who  have  received  Union  funds 
under the Regulation.  

The European Anti-fraud Office (OLAF) may carry out investigations including on-
the-spot  checks  and  inspections,  in  accordance  with  the  provisions  and  procedures 
laid down in Regulation (EC) No 1073/1999 of the European Parliament and of the 
Council28  and  Council  Regulation  (Euratom,  EC)  No  2185/9629  with  a  view  to 
establishing  whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity 
affecting the financial interests of the Union in connection with a grant agreement or 
grant decision or a contract funded under this Regulation. 

Without  prejudice  to  paragraphs  1,  2  and  3,  cooperation  agreements  with  third 
countries and with international organisations, contracts, grant agreements and grant 
decisions  resulting  from  the  implementation  of  this  Regulation  shall  contain 
provisions expressly empowering the Commission, the Court of Auditors and OLAF 
to  conduct  such  audits,  on-the-spot  checks  and  inspections,  according  to  their 
respective competences. 

Article 13 
Rules on nationality and origin for public procurement, grants and other award procedures 

The rules on nationality and origin for public procurement, grants and other award procedures 
are defined in Article 20 of Annex IV of the Cotonou Agreement. 

28 
29 

OJ L 136, 31.5.1999, p. 1. 
OJ L 292, 15.11.1996, p. 2. 

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TITLE IV  
DECISION-MAKING PROCEDURES 

Article 14 
Responsibilities of the EDF Committee 

1. 

The  European  Development  Fund  Committee  (the  EDF  Committee)  established  by 
Article  8  of  the  Internal  Agreement  shall  give  its  opinion  in  accordance  with  the 
procedure set out in paragraphs 3 to 10.  

An observer from the EIB shall take part in the EDF Committee's proceedings with 
regard to questions concerning the Bank. 

2. 

The  EDF  Committee's  tasks  shall  cover  the  responsibilities  spelled  out  in  Titles  II 
and III of this Regulation: 

(a)  programming  of  Union  aid  under  the  11th  EDF  and  programming  reviews 
focusing in particular on country, regional and intra-ACP strategies; and 

(b)  monitoring the implementation of Union and its Member States aid, covering 
amongst  others  the  impact  of  assistance  on  the  reduction  of  poverty,  sectoral 
aspects,  cross-cutting  issues,  the  functioning  of  field-level  coordination  with 
Member  States  and  other  donors  and  progress  on  the  aid  effectiveness 
principles referred to in Article 2. 

When the EDF Committee is called upon to give its opinion, the representative of the 
Commission shall submit to the EDF Committee within the time-limits set out in its 
rules  of  procedure,  a  draft  of  the  measures  to  be  taken.  The  EDF  Committee  shall 
deliver its opinion within a time-limit which the chairman may lay down according 
to the urgency of the matter but which shall not exceed 30 days.  

Until  the  EDF  Committee  delivers  an  opinion,  any  EDF  Committee  member  may 
suggest  amendments  and  the  chair  may  present  amended  versions  of  the  draft 
measure. 

The  chair  shall  endeavour  to  find  solutions  which  command  the  widest  possible 
support  within  the  EDF  Committee.  The  chair  shall  inform  the  EDF  Committee  of 
the  manner  in  which  the  discussions  and  suggestions  for  amendments  have  been 
taken into account, in particular as regards those suggestions which have been largely 
supported within the EDF Committee. 

The opinion shall be delivered by the qualified majority laid down in Article 8(3) of 
the Internal Agreement on the basis of the votes of the Member States weighted in 
the manner set out in Article 8(2) of the Internal Agreement. 

Where the EDF Committee delivers a positive opinion, the Commission shall adopt 
the measures which shall apply immediately.  

If the EDF Committee delivers a negative opinion, the Commission shall not adopt 
the measures. Where the measures are deemed necessary, the chair may either submit 

3. 

4. 

5. 

6. 

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7. 

8. 

9. 

an amended version of the draft measures to the EDF Committee within 2 months of 
delivery of the negative opinion or submit the draft measures within 1 month of such 
delivery to an appeal committee referred to in paragraph 9 for further deliberation.  

Where  no  opinion  is  delivered,  the  Commission  may  adopt  the  draft  measures, 
except  in  the  case  provided  in  the  second  subparagraph  below.  Where  the 
Commission  does  not  adopt  the  measures,  the  chair  may  submit  to  the  EDF 
Committee an amended version thereof. 

The  Commission  shall  not  adopt  the  measures  when  a  simple  majority  of  the 
members  of  the  EDF  Committee  opposes  it.  In  this  case,  where  the  measures  are 
deemed necessary, the chair may submit an amended version of the draft measures to 
the EDF Committee within 2 months of the vote or submit the draft measures within 
1  month  of  such  delivery  to  the  appeal  committee  referred  to  in  paragraph  9  for 
further deliberation.  

Where the opinion of the EDF Committee is to be obtained by written procedure, the 
procedure shall be terminated without result when, within the time limit for delivery 
of the  opinion, the chair  of  the  EDF  Committee so decides or a simple majority of 
EDF Committee members so requests. 

The appeal committee shall adopt its own rules of procedure by a simple majority of 
its  component  members,  on  a  proposal  from  the  Commission.  Where  the  appeal 
committee  is  seized,  it  shall  meet  at  the  earliest  14  days,  except  in  duly  justified 
cases,  and  at  the  latest  6  weeks,  after  the  date  of  referral.  Without  prejudice  to  the 
first  subparagraph  of  paragraph  3,  the  appeal  committee  shall  deliver  its  opinion 
within 2 months of the date of referral by the qualified majority laid down in Article 
8(3)  of  the  Internal  Agreement  on  the  basis  of  the  votes  of  the  Member  States 
weighted  in  the  manner  set  out  in  Article  8(2)  of  the  Internal  Agreement.  A 
representative of the Commission shall chair the appeal committee.  

The  chair  shall  set  the  date  of  the  appeal  committee  meeting  in  close  cooperation 
with  the  members  of  the  committee,  in  order  to  enable  Member  States,  the 
Commission and the EIB with regard to questions concerning the Bank, to ensure an 
appropriate level of representation. 

Where the appeal committee delivers a positive opinion, the Commission shall adopt 
the  measures.  Where  no  opinion  is  delivered  by  the  appeal  committee,  the 
Commission  may  adopt  the  measures.  Where  the  appeal  committee  delivers  a 
negative opinion, the Commission shall not adopt the measures. 

10. 

Where reference is made to this paragraph, the Commission shall adopt the measures 
which shall apply immediately, without prior submission to the EDF Committee, and 
which  shall  remain  in  force  for  the  duration  of  the  adopted  or  modified  document, 
action programme or measure.  

At  the  latest  14  days  after  its  adoption,  the  chair  shall  submit  the  measures  to  the 
EDF Committee in order to obtain its opinion. 

In  the  event  of  the  EDF  Committee  delivering  a  negative  opinion  in  line  with 
paragraphs  3  and  4  of  this  Article,  the  Commission  shall  immediately  repeal  the 
measures adopted in accordance with the first subparagraph. 

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Article 15 
The African Peace Facility 

The intra-ACP indicative programmes  shall earmark  funding  for the  African Peace Facility. 
This  funding  may  be  complemented  by  the  regional  indicative  programmes.  A  specific 
procedure set out in the following subparagraphs shall apply as follows: 

(a) 

(b) 

(c) 

(d) 

(e) 

on  a  request  from  the  African  Union,  endorsed  by  the  ACP  Committee  of 
Ambassadors, pluriannual action programmes shall be prepared by the Commission 
specifying the objectives pursued, the scope and nature of the possible interventions 
and  the  implementation  arrangements.  An  annex  to  each  action  programme  shall 
describe  the  specific  decision  making  procedures  for  each  possible  type  of 
intervention according to its nature, size and urgency; 

the action programmes, including the annex referred to in subparagraph (a), and any 
changes  thereto  shall  be  discussed  by  the  relevant  preparatory  Council  working 
groups  and  the  Political  and  Security  Committee  and  approved  by  Coreper  by 
qualified majority as defined in Article 8(3) of the Internal Agreement, before being 
adopted by the Commission; 

the action programmes, excluding the annex referred to in subparagraph (a), shall be 
the basis for the financing agreement to be concluded between the Commission and 
the African Union; 

each intervention to be implemented under the financing agreement shall be subject 
to  prior  endorsement  by  the  Political  and  Security  Committee;  the  relevant 
preparatory Council working groups shall be informed or consulted in due time prior 
to  their  transmission  to  the  Political  and  Security  Committee  according  to  the 
specific  decision  making  procedures  referred  to  in  subparagraph  (b)  in  order  to 
ensure  that,  besides  the  military  and  security  dimension,  the  development  related 
aspects of the envisaged measures are being taken into account; 

the  Commission  shall  prepare  an  activity  report  on  the  use  of  the  funds  for 
information  of  the  Council  and  the  EDF  Committee  on  an  annual  basis  and  at  the 
request  of  Council  or  the  EDF  Committee,  distinguishing  between  ODA  and  non-
ODA related commitments and disbursements. 

The Union shall continue to examine the possibilities of alternative future sources of funding, 
including common foreign and security policy funding. 

Article 16 
The Investment Facility Committee 

1. 

The  Investment  Facility  (IF)  Committee  set  up  under  the  auspices  of  the  EIB  by 
Article  9  of  the  Internal  Agreement  shall  consist  of  the  representatives  of  the 
Member  States  and  a  representative  of  the  Commission.  An  observer  from  the 
General Secretariat of the Council and another one from the EEAS shall be invited to 
attend.  Each  Member  State,  as  well  as  the  Commission,  shall  nominate  one 
representative  and  one  designated  alternate.  With  a  view  to  maintaining  continuity, 
the Chairman of the IF Committee shall be elected by and from among the members 
of  the  IF  Committee  for  a  period  of  two  years.  The  EIB  shall  provide  the 

EN 

24 

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Committee's secretariat and support services. Only the members of the IF Committee 
designated by the Member States, or their alternates, shall vote. 

The  Council,  acting  unanimously,  shall  adopt  the  rules  of  procedure  of  the  IF 
Committee  on  the  basis  of  a  proposal  drawn  up  by  the  EIB  after  consulting  the 
Commission. 

The IF Committee shall act by qualified majority. The weighting of the votes shall be 
as laid down in Article 8 of the Internal Agreement. 

The IF Committee shall meet at least four times a year. Additional meetings may be 
convened at the request of the EIB or of the members of the Committee as set out in 
the  rules  of  procedure.  In  addition,  the  IF  Committee  may  deliver  an  opinion  by 
written procedure, in the terms established by its Rules of Procedure. 

2. 

The IF Committee shall approve: 

(a) 

the operational guidelines on the implementation of the IF; 

(b) 

the  investment  strategies  and  business  plans  of  the  IF,  on  the  basis  of  the 
objectives  of  the  Cotonou  Agreement  and  of  the  general  principles  of  Union 
development policy; 

(c) 

the annual reports of the IF; 

(d) 

any general policy document, including evaluation reports, concerning the IF. 

3. 

The IF Committee shall deliver an opinion on: 

(a)  proposals to grant an interest subsidy under Article 2(7), and Article 4(2)(b), of 
Annex II to the Cotonou Agreement. In such cases, the IF Committee shall also 
deliver an opinion on the use of such an interest subsidy; 

(b)  proposals for an IF investment for any project for which the Commission has 

delivered a negative opinion; 

(c)  other proposals relating to the IF based on the general principles defined in the 

operational guidelines of the IF. 

In  order  to  streamline  the  approval  process  for  small  operations,  the  IF  Committee 
may  give  its  favourable  opinion  to  proposals  from  the  EIB  for  a  global  allocation 
(interest subsidies, technical assistance) or global authorisation (lending, equity), that 
shall  subsequently,  without  further  opinion  from  the  IF  Committee  and/or  the 
Commission, be sub-allocated by the EIB to  individual projects in accordance with 
criteria  set  out  in  the  global  allocation/authorisation,  including  the  maximum  sub-
allocation per project. 

In addition, the governing bodies of the EIB may, from time to time, request that the 
IF Committee provides an opinion on all financing proposals, or on certain categories 
of financing proposals. 

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25 

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4. 

5. 

It shall be EIB's responsibility to submit to the IF Committee in a timely manner any 
matters that require the approval or opinion of the IF Committee, as provided for in 
paragraphs 2 and 3 respectively. Any proposal submitted to the IF Committee for an 
opinion shall be made in accordance with the relevant criteria and principles set out 
in the operational guidelines of the IF. 

The  EIB  shall  cooperate  closely  with  the  Commission  and,  where  applicable,  shall 
coordinate its operations with other donors. In particular: 

(a) 

(b) 

(c) 

the  EIB  shall  prepare  or  revise  jointly  with  the  Commission  the  operational 
guidelines  of  the  IF  referred  to  in  paragraph  2(a).  The  EIB  shall  be  held 
accountable  for  compliance  with  the  guidelines  and  shall  ensure  that  the 
projects  it  supports  respect  international  social  and  environmental  standards 
and  are  coherent  with  the  objectives  of  the  Cotonou  Agreement  and  of  the 
general principles of Union development policy and with the relevant country 
or regional cooperation strategies; 

the  EIB  shall  request  the  opinion  of  the  Commission  in  preparation  of  the 
investment strategies, business plans and general policy documents;  

the  EIB  shall  inform  the  Commission  on  the  projects  it  administers  in 
accordance  with  Article  18(1).  At  the  appraisal  stage  of  a  project,  it  shall 
request  the  opinion  of  the  Commission  on  its  coherence  with  the  relevant 
country  cooperation  strategy  or  regional  cooperation  strategy  or,  as  the  case 
may be, with the general objectives of the IF; 

(d)  with  the  exception  of  interest  subsidies  falling  within  the  global  allocation 
referred  to  in  paragraph  3(a),  the  EIB  shall  also  request  the  agreement  of  the 
Commission at the appraisal stage of a project on any proposal made to the IF 
Committee  for  an  interest  subsidy,  as  to  its  compliance  with  Article  2(7)  and 
Article  4(2)  of  Annex  II  to  the  Cotonou  Agreement,  and  with  the  criteria 
defined in the operational guidelines of the IF. 

The  Commission  shall  be  deemed  to  have  rendered  a  favourable  opinion  on  or  to 
have  agreed  to  a  proposal  unless  it  notifies  a  negative  opinion  on  such  a  proposal 
within three weeks following the submission of the proposal. As regards opinions for 
financial or public sector projects, as well as agreement to interest rate subsidies, the 
Commission may request that the final project proposal be submitted for its opinion 
or approval two weeks before being sent to the IF Committee. 

6. 

The  EIB  shall  not  proceed  with  any  action  mentioned  in  paragraph  3  unless  the  IF 
Committee has given a favourable opinion. 

Following  a  favourable  opinion  of  the  IF  Committee,  the  EIB  shall  decide  on  the 
proposal  in  accordance  with  its  own  procedures.  In  particular  it  may  decide  not  to 
proceed with the proposal. The EIB shall periodically inform the IF Committee and 
the Commission of cases where it decides not to proceed. 

For loans from its own resources and for IF investments for which no opinion of the 
IF Committee is required, the EIB shall decide on the proposal in accordance with its 
own  procedures  and,  in  the  case  of  the  Investment  Facility,  in  accordance  with  the 

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operational  guidelines  of  the  Investment  Facility  and  the  investment  strategies 
approved by the IF Committee. 

Notwithstanding  a  negative  opinion  of  the  IF  Committee  on  a  proposal  to  grant  an 
interest subsidy, the EIB may proceed with the loan in question without the benefit of 
the  interest  subsidy.  The  EIB  shall  periodically  inform  the  IF  Committee  and  the 
Commission of each occasion on which it so decides to proceed. 

The EIB may, subject to conditions laid down in the operational guidelines of the IF, 
and the condition that the essential objective of the loan or IF investment in question 
be unchanged, decide to modify the terms of an IF loan or investment on which the 
IF  Committee  has  given  a  favourable  opinion under  paragraph  3  or  of  any  loan  on 
which the IF Committee has given a favourable opinion regarding interest subsidies. 
In particular, the EIB may decide to increase the amount of the loan or IF investment 
by up to 20 %. 

Such an increase may, for projects with interest subsidies referred to in Article 2(7) 
of Annex II to the Cotonou Agreement, result in a proportionate increase in the value 
of the interest subsidy. The EIB shall periodically inform the IF Committee and the 
Commission of each occasion on which it so decides to proceed. For projects falling 
under Article 2(7) of Annex II to the Cotonou Agreement, if an increase in the value 
of the subsidy is requested, the IF Committee shall be required to deliver an opinion 
before the EIB proceeds. 

7. 

The  EIB  shall  manage  IF  investments  and  all  funds  held  on  account  of  the  IF  in 
accordance with the objectives of the Cotonou Agreement. It may, in particular, take 
part  in  the  management  and  supervisory  bodies  of  legal  persons  in  which  the  IF  is 
invested, and may compromise, discharge and modify the rights held on account of 
the IF in accordance with the operational guidelines of the IF. 

TITLE V 
FINAL PROVISIONS 

Article 17 
Participation by a third country or region 

In order to ensure the coherence and effectiveness of Union assistance, the Commission may 
decide  that  non-ACP  developing  countries  and  regional  integration  bodies  with  ACP 
participation that promote regional  cooperation  and integration eligible for Union assistance 
under other Union financing instruments for external action, where the project or programme 
concerned is of a regional or cross-border nature and complies with Article 6 of Annex IV to 
the Cotonou Agreement, are eligible for funds referred to in Article 1(2)(a)(i) of the Internal 
Agreement.  The  Overseas  Countries  and  Territories  ("OCTs")  eligible  for  Union  assistance 
under  Decision  […],  and  the  Union's  outermost  regions  can  also  participate  in  regional 
cooperation projects or programmes; the funding to enable participation of these territories or 
outermost regions shall be additional to funds referred to in Article 1(2)(a)(i) of the Internal 
Agreement.  The  objective  of  a  reinforced  cooperation  between  the  Member  States,  their 
outermost regions, the OCTs and the ACP countries should be taken into account and, where 
appropriate, coordination mechanisms be set up. Provision for this funding and for the types 
of financing referred to in the 11th Financial Regulation may be made in the strategy papers 

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and multiannual indicative programmes and in the action programmes and measures referred 
to in Article 9 of this Regulation.  

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Article 18 
Monitoring, reporting and evaluation of EDF assistance 

The  Commission  and  the  EIB  shall  regularly  monitor  their  actions  and  review 
progress  made  towards  delivering  expected  results.  The  Commission  will  also 
conduct  evaluations  of  the  impact  and  effectiveness  of  its  sectoral  policies  and 
actions,  and  the  effectiveness  of  programming,  where  appropriate  by  means  of 
independent external evaluations. Evaluations should be based on OECD-DAC good 
practice  principles,  seeking  to  ascertain  whether  the  specific  objectives,  where 
applicable  taking  into  account  gender  equality,  have  been  met  and  to  formulate 
recommendations with a view to improving future operations.  

The EIB shall periodically inform the Commission regarding the implementation of 
projects  financed  from  the  11th  EDF  resources  it  administers,  following  the 
procedures set out in the operational guidelines of the Investment Facility. 

The Commission shall send its evaluation reports to the Member States through the 
EDF  Committee  and  the  EIB  for  information.  The  results  shall  feed  back  into 
programme design and resource allocation. 

The Commission shall associate to an appropriate extent all relevant stakeholders in 
the  evaluation  phase  of  the  Union  assistance  provided  under  this  Regulation  and 
may, where appropriate, seek to undertake joint evaluations with EU Member States, 
other donors and development partners. 

The  Commission  shall  examine  the  progress  made  in  implementing  the  11th  EDF 
and  shall  submit  to  the  Council  a  report  every  two  years  starting  in  2016  on  the 
implementation and results and, as far as possible, the main outcomes and impacts of 
the  Union's  financial  assistance.  That  report  shall  also  be  sent  to  the  European 
Parliament, the European Economic and Social Committee and the Committee of the 
Regions. 

The  biennial  report  shall  contain  information  relating  to  the  previous  year  on  the 
measures  financed,  the  results  of  monitoring  and  evaluation  exercises,  the 
involvement  of  the  relevant  development  partners,  and  the  implementation  of 
commitments  and  of  payments  appropriations  broken  down  by  country,  region  and 
cooperation sector.  

The report shall assess the results of the assistance, using as far as possible, specific 
and  measurable  indicators  of  its  role  in  meeting  the  objectives  of  the  Cotonou 
Agreement.  It  shall  reflect  the  main  lessons  learned  and  the  follow-up  to  the 
recommendations of the evaluations of the previous years. 

The Union and its Member States shall conduct a performance review, assessing the 
degree of realisation of commitments and disbursements, and the results and impact 
of the aid provided. The review shall be undertaken on the basis of a proposal by the 
Commission. 

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8. 

The  EIB  shall  provide  the  IF  Committee  with  information  as  regards  progress 
towards  the  objectives  of  the  IF.  Following  Article  6B  of  Annex  II  to  the  Cotonou 
Agreement, the overall performance of the IF shall be subject to a joint review at the 
mid- and end-term of the 11th EDF. The mid-term review shall be carried out by an 
independent  external  expert,  in  cooperation  with  the  EIB,  and  shall  be  made 
available to the IF Committee. 

Article 19 
Climate action and biodiversity expenditure 

An annual estimate of the overall spending related to climate action and biodiversity shall be 
made on the basis of the adopted indicative programming documents. The funding allocated 
in the context of the EDF shall be subject to an annual tracking system based on the OECD 
methodology  (‘Rio  markers’),  without  excluding  the  use  of  more  precise  methodologies 
where  such  are  available,  integrated  into  the  existing  methodology  for  performance 
management of Union programmes, to quantify the expenditure related to climate action and 
biodiversity at the level of the action programmes, individual and special measures referred to 
in Article 9, and recorded within evaluations and biannual reports.  

Article 20 
European External Action Service 

The  application  of  this  Regulation  shall  be  in  accordance  with  Council  Decision 
2010/427/EU, establishing the organisation and functioning of the European External Action 
Service.  

Article 21 
Transitional measures 

Pending entry into force of the Internal Agreement of the 11th EDF, transitional measures in 
the  form  of  action  programmes,  individual  measures,  special  measures  and  specific  action 
programmes  for  support  expenditure,  referred  to  in  Article  9,  shall  be  financed  from  a 
bridging facility for  the  11th EDF,  composed of  balances from the previous EDFs and from 
funds decommitted from projects under these EDFs. This bridging facility may also cover the 
grants to finance the interest-rate subsidies and project-related technical assistance referred to 
in Article 2(d) of the Internal Agreement. These transitional measures shall aim at facilitating 
the implementation of programming documents. 
Funds committed under this bridging facility shall be accounted for under the 11th EDF. The 
shares of Member States contributions stated in Article 1(2)(a) of the Internal Agreements of 
the 9th and 10th EDF shall be reduced accordingly. 

For the purpose of implementation of these transitional measures, the Financial Regulation of 
the 10th EDF shall continue to apply until the entry into force of the Financial Regulation of 
the 11th EDF. 

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Article 22 
Entry into force 

This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

It shall apply from 1 January 2014 until the final date of application of the Internal Agreement 

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

Done at Brussels,  

For the Council 
The President 

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