Proposal for a COUNCIL REGULATION on the financial regulation applicable to the 11th European Development Fund
Date: 2013-09-25
Institutions: European Commission
Subjects: ACP countries, European Development Fund, financial regulation, overseas countries and territories













EUR-Lex - 52013PC0660 - EN











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52013PC0660

Proposal for a COUNCIL REGULATION on the financial regulation applicable to the 11th European Development Fund /* COM/2013/0660 final - 2013/0320 (NLE) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
The proposal for the Council Regulation on
the financial regulation applicable to the 11th European Development Fund (11th
EDF) is a part of the package of the legislative documents governing the
European Development Fund which consists also of the Internal Agreement […],
Part Four of the Overseas Association Decision and the Implementation
Regulation of the 11th EDF.
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
The overarching principle of this proposal
is maximum alignment with the Financial Regulation applicable to the general
budget of the Union (Regulation (EU, Euratom) No 966/2012) and its Rules of
Application (Delegated Regulation No 1268/2012). The proposal draws on the
results of the public consultation in 2009/2010 that preceded the Commission
proposal for the new Financial Regulation which was adopted in 2012.
3.           LEGAL ELEMENTS OF THE
PROPOSAL
As stated above, the overarching principle
of this proposal is maximum alignment with the Financial Regulation and its
Rules of Application. This is achieved by direct references to these
regulations.
Furthermore, alignment is sought with the
latest available version of the Common Implementing Rules regulation where it
contains provisions relevant for financial implementation; these cases, not
numerous, are treated by including identical text.
References to the Financial Regulation and
its Rules of Application have to be read bearing in mind that:
–                        
Article 2(2) of the proposal excludes the
application of provisions which give the Commission the power to adopt
delegated acts under Article 290 TFEU.
–                        
Where an article of the Financial Regulation is
declared applicable to the 11th EDF, all the related and relevant
provisions of the Rules of Application also apply directly unless their
application is explicitly excluded. However, where the Financial Regulation or
the applicable Rules of Application provisions contain only indirect internal
references, the provisions referred to only apply if the 11th EDF
Financial Regulation declares them applicable. In other words, it is solely the
11th EDF Financial Regulation that explicitly declares provisions of
the Financial Regulation or the Rules of Application applicable to the 11th
EDF or not. 
–                        
Certain provisions of the Financial Regulation
or the Rules of Application apply “mutatis mutandis”; in such a case the
applicable provisions have to be interpreted reasonably pursuant to their
purpose and objective, and bearing in mind the context of their application, in
accordance with the principles of interpretation established by the case-law of
the Court of Justice, and not literally.
–                        
In applying by reference the provisions of the
Financial Regulation to 11th EDF implementation, due account must be
taken of the exceptions especially provided for in the Financial Regulation to
address the specificities of external action, and in particular its
extraterritorial and conventional context. 
The proposal follows as much as possible
the structure of the Financial Regulation. It is divided into three Parts: Main
Provisions, Investment Facility, and Transitional and Final Provisions.
The recitals of the proposal address the
degree of alignment with the Financial Regulation and its Rules of Application
in more detail.
Part One “Main Provisions” is subdivided
into ten Titles: Subject matter, scope and general provisions; Financial
principles; 11th EDF resources and its implementation; Financial
actors; Revenue operations; Expenditure operations; Various implementation
provisions; Funding instruments; Presentation of the accounts and accounting;
and External audit and discharge.
The self-standing text of the proposal
largely falls into one of three categories. Certain text is aligned on the
substance with the Financial Regulation but it was deemed inappropriate to
achieve the alignment by a mere reference because of terminological differences
or the necessity to carry out minor adjustments to the 11th EDF.
Examples of this are in Title VIII “Funding instruments”. Other self-standing
text is specific to the 11th EDF. Examples of this are in Title VI
“Revenue operations”. As stated above, third type of self-standing text
contains provisions aligned with the latest version of the Common Implementing
Rules regulation.
Part Two describes the management of 11th
EDF resources under the Investment Facility (IF) managed by the EIB. Some
changes, in comparison with the 10th EDF, were necessary due to the
deadline fixed for the availability of funds subscribed by the Member States pursuant
to the Internal Agreement. Where an article of the Financial Regulation or of
the Rules of application apply to the IF, it should be specifically mentioned.
In conclusion, this proposal results in
overall simplification by showing more clearly which provisions of the
Financial Regulation and its Rules of Application apply and which provisions
are specificities of the 11th EDF. This proposal contains less than
half the number of articles compared to the 10th EDF Financial
Regulation.
The proposal is accompanied by a Commission
Staff Working Document which allows a comparison of this proposal with the 10th
EDF Financial Regulation and is a synoptic presentation of the provisions of
the Financial Regulation and its Rules of Application that are applicable to
the 11th EDF. In this comparative document, the provisions of the
Financial Regulation and the Rules of Application which do not apply are in
strikethrough format.
4.           BUDGETARY IMPLICATION
The proposal has no budgetary implications.
The 11th EDF is not included in the EU budget and its financial
envelope is determined in the Internal Agreement. While the funds will be
implemented according to the 11th EDF Financial Regulation, its
adoption itself has no financial impact.
2013/0320 (NLE)
Proposal for a
COUNCIL REGULATION
on the financial regulation applicable to
the 11th European Development Fund
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Internal Agreement
between the Representatives of the Governments of the Member States of the European
Union, 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 ACP-EU Partnership Agreement (hereinafter “the Internal Agreement”),
and on the allocation of financial assistance for the Overseas Countries and
Territories (“the OCTs”) to which Part Four of the Treaty on the Functioning of
the European union (hereinafter "the Treaty") applies and in
particular Article 10(2) thereof,
Having regard to the proposal from the
European Commission,
Having regard to the opinion of the Court
of Auditors[1],
Having regard to the opinion of the
European Investment Bank on the provisions concerning it[2], 
Whereas:
(1)       It is necessary to
determine the detailed rules for the payment of the contributions by the Member
States to the 11th European Development Fund ("the 11th
EDF"), set up by the Internal Agreement.
(2)       It is necessary to lay
down the conditions in accordance with which the Court of Auditors must exercise
its powers in respect of the 11th EDF.
(3)       It is necessary to
determine the detailed rules for the financial implementation of the 11th
EDF concerning notably the applicable principles; the constitution of its resources;
the financial actors and entities entrusted with budget-implementation tasks;
the financing decisions, commitments and payments; the funding instruments
including procurement, grants, financial instruments and Union trust funds; the
presentation of the accounts and accounting; the external audit by the Court of
Auditors and discharge by the European Parliament; as well as the Investment
Facility managed by the European Investment Bank.
(4)       For the sake of
simplification and coherence, this Regulation should be aligned, as much as
possible, with Regulation (EU, Euratom) No 966/2012[3] and Commission Delegated
Regulation (EU) No 1268/2012[4].
Such alignment should be achieved by direct references to these regulations and
should, on the one hand, allow for an easy identification of specificities in
the financial implementation of the 11th EDF and, on the other hand,
reduce the diversity of Union funding rules in the area of external action that
creates an unnecessary burden for the recipients, the Commission as well as
other actors involved.
(5)       It is necessary to recall
that the framework for financial implementation of the 11th EDF is,
besides this Regulation, constituted by several instruments: the Partnership
Agreement between the members of the African, Caribbean and Pacific group of
States on the one part, and the European Community and its Member States on the
other part, signed in Cotonou on 23 June 2000, revised in Luxembourg on 25 June
2005 and revised in Ouagadougou on 22 June 2010 (hereinafter “the Cotonou
Agreement), in particular by its Annex IV; further by the Internal Agreement;
by Council Decision of [date] on the association of the overseas countries and
territories with the European Union (hereinafter “the Overseas Association
Decision”); and by Council Regulation No [number] of [date] on the
implementation of the 11th European Development Fund (hereinafter
“the Implementation Regulation”).
(6)       The financial
implementation of the 11th EDF should be guided by the principles of
unity and budgetary accuracy, unit of account, universality, specification,
sound financial management and transparency. Having regard to the multiannual
set-up of the 11th EDF, the budgetary principle of annuality should
not apply to the 11th EDF.
(7)       The rules concerning the
financial actors, i.e. the authorising and accounting officers, the delegation
of their tasks as well as their liability should be aligned with Regulation (EU,
Euratom) No 966/2012 as the Commission exerts the same executive responsibility
when it implements the 11th EDF.
(8)       It is necessary to
establish the detailed rules in accordance with which the authorising officer
by delegation of the Commission establishes the necessary arrangements with the
ACP (African, Caribbean and Pacific) States and OCTs to ensure the proper
execution of operations, in close cooperation with the national, regional,
intra-ACP or territorial authorising officer designated by the ACP States or OCTs.
(9)       The rules on indirect
management, which entail the entrustment of budget-implementation tasks and of
its conditions and limits, should be aligned with Regulation (EU, Euratom) No
966/2012. In addition, a provision on sub-delegation of budget-implementation
tasks mirroring that in [the Common Implementing Rules regulation] should be
inserted in order to ensure a coherent implementation of funding of external
action. This Regulation should nonetheless contain specific provisions on
temporary actors taking the place of the national authorising officer, on
entrustment by the ACP States and OCTs to a service provider, and on
strengthening the protection of Union financial interests in the case of
indirect management with ACP States and OCTs.
(10)     While EDF resources will
not be implemented under shared management, this Regulation should enable that
in the framework of regional cooperation between ACP States and OCTs, on the
one hand, and the Union's outermost regions, on the other hand, EDF resources
and support from the European Regional Development Fund (“the ERDF”) in favour
of the Union's outermost regions can be implemented by the same entity in
accordance with this Regulation as regards EDF resources and under shared
management as regards the ERDF.
(11)     The provisions on financing
decisions should be aligned with those of Regulation (EU, Euratom) No 966/2012
where the Commission implements the 11th EDF.
(12)     The rules on commitments
should be aligned with those of Regulation (EU, Euratom) No 966/2012 with the
exception of provisional commitments which should not be available in the 11th
EDF. In addition, an extension of deadlines should be provided where it is
necessary for actions carried out in indirect management by ACP States or OCTs.
(13)     The time limits for
payments should be aligned with those of the Regulation (EU, Euratom) No
966/2012. Special provisions should be laid down where ACP States and OCTs are not entrusted with carrying out payments under indirect management and
where, consequently, the Commission continues to carry out payments to
recipients.
(14)     Various implementation
provisions concerning the internal auditor, good administration and redress,
the IT system, electronic transmission, e-Government, the administrative and
financial penalties, and the use of the central exclusion database, should be
aligned with those of Regulation (EU, Euratom) No 966/2012. In addition, the
protection of Union financial interests through the application of
administrative penalties should be strengthened and clarified where the 11th
EDF is implemented in indirect management with ACP States and OCTs.
(15)     The rules on procurement,
grants, prizes, and experts should be aligned with those of Regulation (EU,
Euratom) No 966/2012. The rules on financial instruments and Union trust funds
should be aligned with adjustments due to the nature of the 11th EDF.
Budget support to OCTs should take the institutional links with the Member
States concerned into account.
(16)     The rules on presentation
of the accounts and accounting, and on external audit and discharge, should
mirror those of Regulation (EU, Euratom) No 966/2012 in order to provide a
coherent framework for implementation and reporting.
(17)     It is necessary to lay down
the conditions in accordance with which the European Investment Bank (“the EIB”)
manages certain 11th EDF resources.
(18)     The provisions concerning
scrutiny by the Court of Auditors of the 11th EDF resources managed
by the EIB should comply with the tripartite agreement concluded between the
Court of Auditors, the EIB, and the Commission provided for in Article 287(3)
of the Treaty.
(19)     The transitional provisions
should lay down the rules on treating balances and revenue from previous European
Development Funds as well as the application of this Regulation to residual
operations under them.
(20)     In order to allow for
timely programming and implementation of the 11th EDF programmes, this
Regulation should enter into force on the third day following that of its
publication in the Official Journal of the European Union,
HAS ADOPTED THIS REGULATION:
PART ONE
MAIN PROVISIONS
TITLE I 
SUBJECT MATTER, SCOPE AND GENERAL PROVISIONS
Article 1
Scope
This Regulation lays down the rules for the
financial implementation of the resources of the 11th European
Development Fund (11th EDF), and the presentation and auditing of
the accounts.
Article 2
Relation to Regulation
(EU, Euratom) No 966/2012 applicable to the general budget
1.           Unless specifically
provided otherwise, direct references in this Regulation to the provisions of Regulation
(EU, Euratom) No 966/2012 shall be deemed to include also references to the
corresponding provisions of Delegated Regulation (EU) No 1268/2012.
2.           References in this
Regulation to applicable provisions of Regulation (EU, Euratom) No 966/2012
shall not be deemed to include procedural provisions which are not relevant to
the 11th EDF, in particular those concerning the empowerment to
adopt delegated acts. 
3.           Internal references in Regulation
(EU, Euratom) No 966/2012 or in Delegated Regulation (EU) No 1268/2012 shall
not render the provisions referred to indirectly applicable to the 11th
EDF.
4.           Terms used in this
Regulation shall have the same meaning as that assigned to them in Regulation
(EU, Euratom) No 966/2012, with the exception of points (a) to (e) of Article 2
of that Regulation.
However for the purposes of this Regulation,
the following terms in Regulation (EU, Euratom) No 966/2012 shall be
interpreted with the following adjustments:
(a)         
"budget" or "budgetary"
means "11th EDF";
(b)         
"budgetary commitment" means
"financial commitment";
(c)         
"institution" means "the
Commission";
(d)         
"appropriations" or "operational
appropriations" means "11th EDF resources";
(e)         
"budget line" or "line in the
budget" means "allocation";
(f)           
"basic act" means, according to the relevant
context, the Internal Agreement, the Overseas Association Decision, or the
Implementation Regulation;
(g)         
“third country” means any beneficiary country or
territory covered by the geographical scope of the 11th EDF.
5.           The interpretation of this
Regulation shall aim at preserving coherence with Regulation (EU, Euratom) No
966/2012 unless such interpretation would be incompatible with the
specificities of the 11th EDF as provided for in the Cotonou
Agreement, the Internal Agreement, the Overseas Association Decision, or the
Implementation Regulation.
Article 3
Periods, dates and time
limits
Unless otherwise provided, Council
Regulation (EEC, Euratom) No 1182/71[5]
shall apply to deadlines set by this Regulation.
Article 4
Protection of personal
data
This Regulation is without prejudice to the
requirements of Directive 95/46/EC of the European Parliament and of the Council[6] and to the requirements of
Regulation (EC) No 45/2001 of the European Parliament and of the Council[7].
Article 29 of Delegated Regulation (EU) No
1268/2012 concerning information on transfers of personal data for audit
purposes shall apply.
TITLE II
FINANCIAL PRINCIPLES
Article 5
Financial principles
The 11th EDF resources shall be
implemented in compliance with the following principles:
(a)                   
unity and budgetary accuracy;
(b)                   
unit of account;
(c)                   
universality;
(d)                   
specification;
(e)                   
sound financial management;
(f)                     
transparency.
Article 6
Principle of unity and
budgetary accuracy
No revenue shall be collected and no
expenditure effected unless booked to the EDF.
Article 8(2) and (3) and the first
subparagraph of Article 8(4) of Regulation (EU, Euratom) No 966/2012 shall
apply. 
Article 7
Principle of unit of
account
Article 19 of Regulation (EU, Euratom) No
966/2012 on the use of the euro shall apply mutatis mutandis.
Article 8
Principle of universality
Without prejudice to Article 9, total
revenue shall cover total estimated payments.
All revenue and expenditure shall be
entered in full without any adjustment against each other, without prejudice to
Article 23 of Regulation (EU, Euratom) No 966/2012, concerning rules on
deductions and exchange rate adjustments, which shall apply.
However, the revenue referred to in Article
9(2)(c) of this Regulation shall automatically decrease payments made against
the commitment from which it was generated.
Article 9
Assigned revenue
1.           Assigned revenue shall be
used to finance specific items of expenditure.
2.           The following shall
constitute assigned revenue:
(a)         
financial contributions from Member States and
third countries, including in both cases their public agencies, entities or
natural persons; and from international organisations to certain external aid
projects or programmes financed by the Union and managed by the Commission or
the EIB on their behalf in accordance with Article 10 of the [Implementation
Regulation];
(b)         
revenue earmarked for a specific purpose, such
as income from foundations, subsidies, gifts and bequests;
(c)         
revenue arising from the repayment, following
recovery, of amounts wrongly paid;
(d)         
revenue generated by interest on pre-financing
payments, subject to Article 8(4) of Regulation (EU, Euratom) No 966/2012;
(e)         
repayments and revenues generated by financial
instruments pursuant to Article 140(6) of Regulation (EU, Euratom) No 966/2012;
(f)           
revenue arising from subsequent reimbursement of
taxes pursuant to Article 23(3)(b) of Regulation (EU, Euratom) No 966/2012.
3.           Assigned revenue referred to
in points (a) and (b) of paragraph 2 shall finance such items of expenditure as
are determined by the donor provided that it is accepted by the Commission.
Assigned revenue referred to in points (e) and
(f) of paragraph 2 shall finance items of expenditure similar to those from
which it was generated.
4.           Article 184(3) of Regulation
(EU, Euratom) No 966/2012 shall apply mutatis mutandis.
5.           Article 22(1) and (2) of Regulation
(EU, Euratom) No 966/2012 concerning donations shall apply to the assigned revenue
referred to in point (b) of paragraph 2 of this Regulation. With regard to
Article 22(2) of Regulation (EU, Euratom) No 966/2012, acceptance of a donation
shall be subject to the authorisation of the Council.
6.           The 11th EDF
resources corresponding to assigned revenue shall be made available
automatically when the revenue has been received by the Commission. However, an
estimate of amounts receivable shall have the effect of making 11th EDF
resources available in the case of assigned revenue referred to in point (a) of
paragraph 2 where the agreement with the Member State is expressed in euro;
payments may be carried out against this revenue only when it has been
received.
Article 10
Principle of specification
11th EDF resources shall be
earmarked for specific purposes per the ACP States or OCTs and according to the
main instruments of cooperation. 
In respect of the ACP States, those
instruments are laid down by the Financial Protocol set out in Annex Ic to the
Cotonou Agreement. Earmarking of resources (indicative allocations) shall also
be based on the provisions of the Internal Agreement and of the Implementation
Regulation and shall take account of the resources reserved for support
expenditure linked to programming and implementation under Article 6 of the
Internal Agreement.
In respect of the OCTs, those instruments
are laid down in Part Four of the Overseas Association Decision and Annex II thereto.
Earmarking of those resources shall also take into account the non-allocated
reserve provided for in Article 3(3) of that Annex and the resources for
studies or technical assistance measures under Article 1(1)(c) thereof.
Article 11
Principle of sound
financial management
1.           Article 30(1) and (2) of Regulation
(EU, Euratom) No 966/2012 concerning the principles of economy, efficiency and
effectiveness shall apply. Article 18 of Delegated Regulation (EU) No 1268/2012
shall not apply.
2.           Specific, measurable,
achievable, relevant and timed objectives shall be set. The achievement of
those objectives shall be monitored by performance indicators.
3.           In order to improve
decision-making, in particular to justify and specify the determination of the
contributions to be paid by Member States referred to in Article 21, the
following evaluations are required:
(a)         
the use of 11th EDF resources shall
be preceded by an ex ante evaluation of the operation to be undertaken covering
the elements listed in Article 18(1) of Delegated Regulation (EU) No 1268/2012;
(b)         
the operation shall be submitted to an ex post
evaluation with a view to ensuring that the intended results justified the
means deployed.
4.           The funding instruments provided
for in Title VIII and the methods of implementation provided for in Article 17
shall be chosen on the basis of their ability to achieve the specific objectives
of the actions and their ability to deliver results, taking into account, in
particular, the costs of controls, the administrative burden, and the expected
risk of non-compliance. For grants, this shall include a consideration of the
use of lump sums, flat rates and unit costs. 
Article 12
Internal control
Article 32 of Regulation (EU, Euratom) No
966/2012 shall apply.
Article 13
Principle of transparency
1.           The 11th EDF
shall be implemented and the accounts presented in accordance with the principle
of transparency.
2.           The annual estimates of
commitments and payments under Article 7 of the Internal Agreement shall be
published in the Official Journal of the European Union.
3.           Without prejudice to
Article 4 of this Regulation, the first subparagraph of Article 35(2) and
Article 35(3) of Regulation (EU, Euratom) No 966/2012, concerning the
publication of information on recipients and other information, shall apply.
For the purpose of the second subparagraph of Article 21(2) of Delegated
Regulation (EU) No 1268/2012, the term "locality" shall mean, where
necessary, the equivalent to the region at NUTS 2 level when the recipient is a
natural person.
4.           Actions financed under the
11th EDF may be implemented with parallel or joint co-financing.
In the case of parallel co-financing, an action
is split into a number of clearly identifiable components which are each
financed by the different donors providing co-financing in such a way that the
end-use of the financing can always be identified.
In the case of joint co-financing, the total
cost of an action is shared between the donors providing the co-financing and
the resources are pooled in such a way that it is no longer possible to
identify the source of financing for any given activity undertaken as part of
the action. In such cases, ex-post publication of grant and procurement
contracts as foreseen by Article 35 of Regulation (EU, Euratom) No 966/2012,
shall comply with the rules of the entrusted entity, if any.
5.           The Commission shall,
where appropriate, take all necessary measures in order to ensure the
visibility of the Union's financial support. This shall include measures
imposing visibility requirements on recipients of Union funds except in duly
justified cases. The Commission shall have the responsibility for monitoring
their compliance.
TITLE III
11th EDF RESOURCES AND ITS IMPLEMENTATION
Article 14
Sources of 11th
EDF resources
The 11th EDF resources shall
consist of the funds referred to in Article 1(2), (4) and (6) of the Internal
Agreement; of the funds referred to in Article 1(9) thereof; and of other
assigned revenue referred to in Article 9 of this Regulation.
Article 15
Structure of the 11th
EDF
The 11th
EDF revenue and expenditure shall be classified
according to their type or the use to which they are assigned.
Article 16
11th EDF
implementation in accordance with the principle of sound financial management
1.           The Commission shall
assume the responsibilities of the Union defined in Article 57 of the Cotonou
Agreement and in the Overseas Association Decision. 
To that end it shall implement the revenue and expenditure of the 11th
EDF in accordance with the provisions of this Part and Part Three of this
Regulation, under its own responsibility and within the limits of the 11th
EDF resources.
2.           The Member States shall
cooperate with the Commission so that the 11th EDF resources are
used in accordance with the principle of sound financial management.
Article 17
Methods of implementation
1.           Articles 56 and 57 of Regulation
(EU, Euratom) No 966/2012 shall apply.
2.           Subject to the provisions
of paragraphs 3 to 5, the rules on methods of implementation provided for in
Chapter 2 of Title IV of Part One of Regulation (EU, Euratom) No 966/2012, and
Articles 188 and 193 of that Regulation, shall apply. However the provisions in
Articles 58(1)(b) and 59 of that Regulation, concerning shared management with
Member States, shall not be applicable.
3.           The entrusted entities
shall ensure consistency with the EU's external policy and may entrust
budget-implementation tasks to other entities under conditions equivalent to
those applying to the Commission. They shall fulfil their obligations under
Article 60(5) of Regulation (EU, Euratom) No 966/2012 annually. The audit
opinion shall be submitted within one month of the report and management
declaration, to be taken into account in the assurance of the Commission. ACP States and OCTs may also entrust budget-implementation tasks within their departments
and to bodies governed by private law on the basis of a service contract. These
bodies shall be selected on the basis of open, transparent, proportionate and
non-discriminatory procedures, avoiding conflict of interests. The financing
agreement shall stipulate the terms of the service contract.
4.           Where the 11th EDF
is implemented in indirect management with ACP States or OCTs, without
prejudice to the responsibilities of the ACP States or the OCTs acting in their capacity of contracting authorities,
the Commission:
(a)         
shall, where necessary, recover amounts due from
recipients according to Article 80 of Regulation (EU, Euratom) No 966/2012,
including by means of a decision which shall be enforceable under the same
conditions as laid down in Article 299 of the Treaty;
(b)         
may, where the circumstances so require, impose
administrative and/or financial penalties under the same conditions as laid
down in Article 109 of Regulation (EU, Euratom) No 966/2012.
The financing agreement shall contain
provisions on the cooperation between the Commission and the ACP State or OCT to this end.
5.           The Union's financial
assistance may be provided through contributions to international, regional or
national funds, such as those established or managed by the EIB, Member States,
third countries or by international organisations, for attracting joint
financing from a number of donors, or to funds set up by one or more donors for
the purpose of the joint implementation of projects.
TITLE IV 
FINANCIAL ACTORS
Article 18
General provisions on
financial actors and their liability
1.           The Commission shall provide
each financial actor with the resources required to perform his or her duties
and a charter describing in detail his or her tasks, rights, and obligations.
2.           Article 64 of Regulation
(EU, Euratom) No 966/2012 on the segregation of duties, shall apply.
3.           Chapter IV of Title IV of
Part One of Regulation (EU, Euratom) No 966/2012 concerning the liability of
the financial actors shall apply mutatis mutandis.
Article 19
Authorising officer
1.           Articles 65, 66 and 67 of Regulation
(EU, Euratom) No 966/2012, concerning respectively, the authorising officer,
his or her powers and duties, and those of Heads of Union Delegations, shall
apply.
2.           Where the responsible
authorising officer of the Commission becomes aware of problems in carrying out
procedures relating to the management of 11th EDF resources, he or
she shall, in conjunction with the appointed national, regional, intra-ACP, or
territorial authorising officer, make all contacts necessary to remedy the
situation and take any steps that are necessary. In case the national,
regional, intra-ACP, or territorial authorising officer does not or is unable
to perform the duties incumbent on him or her under the Cotonou Agreement or
the Overseas Association Decision, the responsible authorising officer of the Commission
may temporarily take the former’s place and act in the name and on behalf of
the former; in that case the Commission may receive financial compensation for
the additional administrative workload incurred from the resources allocated to
the ACP State or OCT in question.
Article 20
Accounting officer
1.           The accounting officer of
the Commission shall be the accounting officer of the 11th EDF.
2.           Articles 68, with the
exception of the second subparagraph of its paragraph 1; and 69 of Regulation
(EU, Euratom) No 966/2012, concerning respectively powers and duties of the
accounting officer, and powers which may be delegated by the accounting
officer, shall apply. Article 54 and Article 57(3); the second subparagraph of
Article 58(5); and Article 58(6) of Delegated Regulation (EU) No 1268/2012
shall not apply.
TITLE V
REVENUE OPERATIONS
Article 21
Annual contribution and
its instalments
1.           In accordance with Article
7 of the Internal Agreement, the ceiling for the annual amount of the
contribution for the year n + 2 and the annual amount of the contribution for
the year n + 1, as well as its payment in three instalments, shall be
determined according to the procedure set out in paragraphs 2 to 7 of this
Article. 
The instalments to be paid by each Member State shall be set in such a way as to be in proportion to that Member State's contributions to the 11th EDF as fixed in Article 1(2) of the Internal Agreement.
2.           The Commission shall
present a proposal by 20 October of the year n, containing:
–              
the ceiling for the annual amount of the
contribution for the year n + 2; 
–              
the annual amount of the contribution for the
year n + 1;
–              
the amount of the first instalment of the
contribution for the year n + 1.
The Council shall decide on this proposal by 15
November of the year n.
The Member States shall pay the first
instalment of the contribution for the year n + 1 at the latest by 21 January
of the year n + 1.
3.           The Commission shall
present a proposal by 15 June of the year n + 1, containing:
–              
the amount of the second instalment of the
contribution for the year n + 1;
–              
a revised annual amount of the contribution for
the year n + 1 in line with actual needs, in cases where, in accordance with
Article 7(3) of the Internal Agreement, the annual amount deviates from actual needs.
The Council shall decide on the proposal at the
latest 21 calendar days following the presentation by the Commission of its
proposal.
The Member States shall pay the second
instalment at the latest by 27 July of the year n + 1.
4.           By 15 June of the year n +
1, the Commission, taking into account the EIB's forecasts concerning the
management and operation of the Investment Facility, including those interest
rates subsidies which are implemented by the EIB, shall establish and
communicate to the Council a statement of the commitments, payments, and the
annual amount of the calls for contributions made in the year n and to be made
in the years n + 1 and n + 2. The amounts for the years n + 1 and n + 2 shall
be based on the capacity to deliver effectively the proposed level of
resources.
5.           The Commission shall
present a proposal by 10 October of the year n + 1, containing:
–              
the third instalment of the annual contribution
for the year n + 1;
–              
a revised annual amount of the contribution for
the year n + 1 in line with actual needs, in cases where in accordance with
Article 7(3) of the Internal Agreement the annual amount deviates from actual
needs.
The Council shall decide on the proposal at the
latest 21 calendar days following the presentation by the Commission of its
proposal.
The Member States shall pay the third
instalment at the latest by 21 November of the year n + 1.
6.           The sum of the instalments
relating to a certain year cannot exceed the annual amount of the contribution
determined for that year. The annual amount of the contribution cannot exceed
the ceiling determined for that year. The ceiling cannot be increased except in
accordance with Article 7(4) of the Internal Agreement. A possible increase of
the ceiling shall be made part of the proposals referred to under paragraphs 2,
3 and 5 of this Article.
7.           The ceiling for the annual
amount of the contribution for the year n + 2, the annual amount of the
contribution for the year n + 1 and the instalments of the contributions shall
specify: 
(a)         
the amount managed by the Commission and
(b)         
the amount managed by the EIB, including the
interest rates subsidies managed by it.
Article 22
Payment of the instalments
1.           Calls for contributions
shall first use up the amounts laid down for previous European Development Funds,
one after the other. 
2.           The contributions of the
Member States shall be expressed in euro and shall be paid in euro.
3.           The contribution referred
to in Article 21(7)(a) shall be credited by each Member State to a special
account entitled ‘European Commission — European Development Fund’ opened with
the central bank of that Member State or the financial institution designated
by it. The amount of such contributions shall remain in those special accounts
until the payments need to be made. The Commission
shall endeavour to make any withdrawals from the special accounts in such a way
as to maintain a distribution of assets in those accounts corresponding to the
contribution key pursuant to Article 1(2)(a) of the Internal Agreement.
The contribution referred to in Article
21(7)(b) of this Regulation shall be credited by each Member State in accordance with Article 53(1).
Article 23
Interest for unpaid
contribution amounts
1.           On expiry of the
time-limits laid down in Article 21(2), (3) and (5), the Member State concerned shall be obliged to pay interest in accordance with the following conditions:
(a)         
the interest rate shall be the rate applied by
the European Central Bank to its principal refinancing operations, as published
in the C series of the Official Journal of the European Union, in force
on the first calendar day of the month in which the time-limit expires,
increased by two percentage points. That rate shall be increased by a quarter
of a percentage point for each month of delay.
(b)         
the interest shall be payable for the period
elapsing from the calendar day following expiry of the time-limit for payment
up to the day of payment.
2.           In respect of the
contribution referred to in Article 21(7)(a), the interest shall be credited to
one of the accounts provided for in Article 1(6) of the Internal Agreement.
In respect of the contribution referred to in
Article 21(7)(b), the interest shall be credited to the Investment Facility in
accordance with Article 53(1).
Article 24
Calling on unpaid
contributions
Upon expiry of the financial protocol set
out in Annex Ic to the Cotonou Agreement, that part of the contributions which
the Member States remain obliged to pay in accordance with Article 21 shall be
called on by the Commission and the EIB, as required, in accordance with the
conditions laid down in this Regulation.
Article 25
Other revenue operations
1.           Articles 77 to 79, Article
80(1) and (2) and Articles 81 to 82 of Regulation (EU, Euratom) No 966/2012,
concerning the estimate of the amount receivable, the establishment of amounts
receivable, the authorisation and rules of recovery, the limitation period and
national treatment of Union entitlements, shall apply. Recovery may be done by
way of a Commission decision enforceable pursuant to Article 299 of the Treaty.
2.           With regard to Articles
77(3) and 78(2) of Regulation (EU, Euratom) No 966/2012, the reference to own
resources shall be understood as one to the Member States' contributions
defined in Article 21.
3.           Article 83(2) of Delegated
Regulation (EU) No 1268/2012 shall apply to recoveries established in euro. For
recoveries in local currency, it shall apply while the rate shall be that of
the central bank of the country issuing the currency in force on the first
calendar day of the month in which the recovery order is established.
4.           With regard to Article
84(3) of Delegated Regulation (EU) No 1268/2012, the list of entitlements shall
be established separately for the 11th EDF and shall be added to the
report referred to in Article 44(2).
5.           Articles 85 and 90 of Delegated
Regulation (EU) No 1268/2012 shall not apply.
TITLE VI 
EXPENDITURE OPERATIONS
Article 26
Financing decisions
The commitment of expenditure shall be
preceded by a financing decision adopted by the Commission.
Article 84 of Regulation (EU, Euratom) No
966/2012 shall apply with the exception of paragraph 2 thereof.
Article 27
Rules applicable to
commitments
1.           Article 85, with the
exception of point (c) of paragraph 3 thereof, Articles 86, 87, 185, Article
189(1) and (2) of Regulation (EU, Euratom) No 966/2012 concerning commitments
and the implementation of external actions shall apply. Article 95(2), Article 97(1)(a)
and (e) and Article 98 of Delegated Regulation (EU) No 1268/2012 shall not
apply.
2.           With regard to the
application of Article 189(2) of Regulation (EU, Euratom) No 966/2012, the
period to conclude individual contracts and grants agreements which implement
the action may be extended beyond three years following the date of the
conclusion of the financing agreement in the case where ACP States and OCTs
entrust budget-implementation tasks pursuant to Article 17(3) of this
Regulation.
3.           Where the 11th EDF
resources are implemented in indirect management with ACP States or OCTs, the
responsible authorising officer may, upon accepting justification, extend the
two-year period referred to in the third subparagraph of Article 86(5) of Regulation
(EU, Euratom) No 966/2012; and the three-year period referred to in the second
subparagraph of Article 189(2) thereof.
4.           At the end of the extended
periods referred to in paragraph 3 of this Article or the periods referred to
in the third subparagraph of Article 86(5) and in the second subparagraph of
Article 189(2) of Regulation (EU, Euratom) No 966/2012, the unused balances
shall be, as applicable, decommitted.
5.           Where measures are adopted
under Articles 96 and 97 of the Cotonou Agreement, the running of the extended
periods referred to in paragraph 3 of this Article, in the third subparagraph
of Article 86(5) and the second subparagraph of Article 189(2) of Regulation
(EU, Euratom) No 966/2012 may be suspended.
6.           For the purposes of point
(c) of paragraph 1 and of point (b) of paragraph 2 of Article 87 of Regulation
(EU, Euratom) No 966/2012, compliance and regularity shall be assessed against
the relevant provisions, in particular the Treaties, the Cotonou Agreement, the
Overseas Association Decision, the Internal Agreement, this Regulation, and all
acts adopted in implementation of those provisions.
7.           Each legal commitment
shall expressly provide for the Commission and the Court of Auditors to have
the power of verification and audit and for OLAF to have the power of
investigations, on the basis of documents and on the spot, over all
beneficiaries, contractors, and subcontractors who have received 11th
EDF funds.
Article 28
Validation, authorisation
and payment of expenditure
Articles 88, 89, Article 90, with the
exception of the second subparagraph of paragraph 4 thereof; and Article 91 and
Article 184(4) of Regulation (EU, Euratom) No 966/2012 shall apply.
Article 29
Time limits for payment
1.           Subject to paragraph 2,
Article 92 of Regulation (EU, Euratom) No 966/2012 shall apply to payments
carried out by the Commission.
2.           Where 11th EDF
resources are implemented in indirect management with ACP States or OCTs and
the Commission executes payments on their behalf, the time limit referred to in
point (b) of Article 92(1) of Regulation (EU, Euratom) No 966/2012 shall apply
to all payments not referred to in point (a) thereof. The financing agreement
shall contain the necessary provisions to ensure the timely collaboration of
the contracting authority.
3.           Claims for delayed
payments for which the Commission is responsible shall be charged to the
account or accounts provided for in Article 1(6) of the Internal Agreement.
TITLE VII
VARIOUS IMPLEMENTATION PROVISIONS
Article 30
Internal auditor
The internal auditor of the Commission
shall be the internal auditor of the 11th EDF. Articles 99 and 100
of Regulation (EU, Euratom) No 996/2012 shall apply.
Article 31
IT systems, electronic
transmission and e-Government
The provisions in Articles 93, 94 and 95 of
Regulation (EU, Euratom) No 966/2012, concerning the electronic management of
operations and documents, shall apply to the 11th EDF mutatis
mutandis.
Article 32
Good administration and
redress
Articles 96 and 97 of Regulation (EU,
Euratom) No 966/2012 shall apply.
Article 33
Use of the central
exclusion database
The central exclusion database set up
pursuant to Article 108(1) of Regulation (EU, Euratom) 966/2012 which contains
details of candidates and tenderers, and applicants and beneficiaries who are
in one of the situations referred to in Article 106; point (b) of the first
subparagraph of Article 109(1); and point (a) of Article 109(2) of that Regulation
shall be used for the implementation of the 11th EDF.
Articles 108(2) and (5) of Regulation (EU,
Euratom) No 966/2012 and Articles 142 and 144 of Delegated Regulation (EU) No
1268/2012 on the use of the central exclusion database and on the access to it
shall apply mutatis mutandis.
With regard to Article 108(2) of Regulation
(EU, Euratom) No 966/2012, the Union’s financial interests shall include the
implementation of the 11th EDF.
Article 34
Administrative
arrangements with the EEAS
Detailed arrangements may be agreed between
the European External Action Service (EEAS) and the Commission services in
order to facilitate the implementation by Union Delegations of the resources
foreseen for support expenditure linked to the 11th EDF under
Article 6 of the Internal Agreement.
TITLE VIII 
FUNDING INSTRUMENTS
Article 35
General provisions on
funding instruments
1.           For the purpose of
providing financial assistance under this Title, cooperation between the Union,
and the ACP States and OCTs may take the form, inter alia, of:
(a)         
triangular arrangements by which the Union
coordinates with any third country its assistance to an ACP State, OCT or region, 
(b)         
administrative cooperation measures such as
twinning between the public institutions, local authorities, national public
bodies or private law entities entrusted with public service tasks of a Member
State, and those of an ACP State or OCT, as well as cooperation measures
involving public-sector experts dispatched from the Member States and their
regional and local authorities, 
(c)         
contributions to the costs necessary to set up
and administer a public-private partnership, 
(d)         
sector policy support programmes, by which the
Union provides support to an ACP State’s or OCT’s sector programme, and
(e)         
interest rate subsidies in accordance with
Article 37.
2.           In addition to the funding
instruments provided for in Articles 36 to 42, financial assistance may also be
provided through the following:
(a)         
debt relief, under internationally agreed debt
relief programmes;
(b)         
in exceptional cases, sectoral and general
import programmes, which may take the form of:
–              
sectoral import programmes in kind;
–              
sectoral import programmes providing foreign
exchange to finance imports for the sector in question; or
–              
general import programmes providing foreign
exchange to finance general imports of a wide range of products.
3.           Financial assistance may
also be provided through contributions to international, regional or national
funds, such as those established or managed by the European Investment Bank,
Member States or by ACP States or OCTs and regions or by international
organisations, for attracting joint financing from a number of donors, or to
funds set up by one or more donors for the purpose of the joint implementation
of projects.
Reciprocal access by EU financial institutions
to financial instruments set up by other organisations shall be promoted, as
appropriate.
4.           In implementing its
support to transition and reform in ACP States and OCTs, the Union shall draw
on and share the experiences of Member States and lessons learned.
Article 36
Procurement
1.           Article 101 of Regulation
(EU, Euratom) No 966/2012 defining public contracts shall apply.
2.           The contracting
authorities for the purposes of this Regulation shall be:
(a)         
the Commission on behalf of, and on account of,
one or more ACP States or OCTs;
(b)         
entities and persons referred to in Article 185
of Regulation (EU, Euratom) No 966/2012 and entrusted with the corresponding
budget-implementation tasks.
3.           For procurement contracts
awarded by the contracting authorities referred to in paragraph 2 of this
Article, or on their behalf, the provisions of Chapter 1 of Title V of Part One
and of Chapter 3 of Title IV of Part Two of Regulation (EU, Euratom) No
966/2012 shall apply with the exception of:
(a)         
Article 103, the second subparagraph of Article 104(1)
and Article 111 of Regulation (EU, Euratom) No 966/2012; 
(b)         
Article 127(3) and (4), Article 128, Articles
134 to 137, Article 139(3) to (6), Article 148(4), Article 151(2), Article 160,
Article 164, the second sentence of Article 260; and Article 262 of Delegated
Regulation (EU) No 1268/2012.
Article 124(2) of Delegated Regulation (EU) No
1268/2012 shall apply to building contracts.
The first subparagraph of this paragraph shall
not apply to the contracting authorities referred to in point (b) of paragraph
2 where, following the checks referred to in Article 61 of Regulation (EU,
Euratom) No 966/2012, the Commission has authorised them to use their own
procurement procedures.
4.           For procurement contracts
awarded by the Commission on its own account as well as the implementing
actions relating to crisis management aid and civil protection and humanitarian
aid operations, the provisions of Title V of Part One of Regulation (EU,
Euratom) No 966/2012 shall apply.
5.           In the event of failure to
comply with the procedures referred to in paragraph 3, expenditure on the
operations in question shall not be eligible for 11th EDF financing,
subject to the principle of proportionality. 
6.           The procurement procedures
referred to in paragraph 3 shall be laid down in the financing agreement.
7.           With regard to Article
263(1)(a) of Delegated Regulation (EU) No 1268/2012:
(a)         
"a prior information notice" is the
notice by which the contracting authorities make known, by way of indication,
the estimated total value and subject of contracts and framework contracts
which they intend to award during a financial year, but excluding contracts
under the negotiated procedure without prior publication of a contract notice;
(b)         
"a contract notice" is the means by
which the contracting authorities make known their intention to launch a
procedure for the award of a contract or framework contract or to set up a
dynamic purchasing system in accordance with Article 131 of Delegated
Regulation (EU) No 1268/2012;
(c)         
"an award notice" is the notice which gives
the outcome of the procedure for the award of contracts, framework contracts or
contracts based on a dynamic purchasing system.
Article 37
Grants
1.           Subject to paragraphs 2
and 3 of this Article, Title VI of Part One; and Article 192 of Regulation (EU,
Euratom) No 966/2012 shall apply.
2.           Grants are direct
financial contributions, by way of donation, from the 11th EDF in
order to finance any of the following:
(a)         
an action, including one carried out by a Union
agency, intended to help achieve an objective of the Cotonou Agreement or the
Overseas Association Decision, or of a programme or project adopted in
accordance with that Agreement or Decision; or
(b)         
the functioning of a body which pursues an
objective referred to in point (a).
A grant in the sense of point (a) may be
awarded to a body referred to in Article 208(1) of Regulation (EU, Euratom) No
966/2012.
3.           When working with local
stakeholders, the Commission shall take into account their specificities including needs and context, when defining
the modalities of financing, the type of contribution, the award modalities and
the administrative provisions for the management of grants with the purpose to reach and best respond to the widest
possible range of local stakeholders. Specific modalities shall be
encouraged, such as partnership agreements, financial support to third parties,
lump sums, direct award or eligibility-restricted calls for proposals
4.           The following shall not
constitute grants within the meaning of this Regulation:
(a)         
items referred to in points (b) to (f), (h) and
(i) of Article 121(2) of Regulation (EU, Euratom) No 966/2012
(b)         
support referred to in Article 35(2) of this
Regulation.
5.           Articles 175 and 177 of Delegated
Regulation (EU) No 1268/2012 shall not apply.
Article 38
Prizes
Title VII of Part One of Regulation (EU,
Euratom) No 966/2012 shall apply with the exception of the second subparagraph
of Article 138(2) thereof.
Article 39
Budget support
Article 186 of Regulation (EU, Euratom) No
966/2012 shall apply.
EU general or sector budget support is
based on mutual accountability and shared commitments to universal values and
aims at strengthening contractual partnerships between EU and ACP States or
OCTs in order to promote democracy, human rights and the rule of law, support
sustainable and inclusive economic growth and eradicate poverty.
Any decision to provide budget support
shall be based on budget support policies agreed by the EU, a clear set of
eligibility criteria and a careful assessment of the risks and benefits.
One of the key determinants of this
decision shall be an assessment of the commitment, record and progress of ACP States and OCTs with regard to democracy, human rights and the rule of law. Budget
support shall be differentiated to better respond to the political, economic
and social context of the ACP States and OCTs, taking into account situations
of fragility.
When providing budget support, the
Commission shall clearly define and monitor its conditionality, and shall also
support the development of parliamentary control and audit capacities and
increase transparency and public access to information. 
Disbursement of budget support shall be
conditional on satisfactory progress towards achieving the objectives agreed
with the ACP States and OCTs.
When providing budget support to OCTs,
their institutional links to the Member State concerned shall be taken into
account.
Article 40
Financial instruments
Financial instruments may be established in
the financing decision referred to in Article 26. They shall be, whenever
possible, under the lead of the EIB, or a multilateral European financial
institution, such as the EBRD, or a bilateral European financial institution,
e.g. bilateral development banks, possibly pooled with additional grants from
other sources.
The Commission may implement financial
instruments under direct management, or under indirect management by entrusting
tasks to entities pursuant to points (ii), (iii), (v) and (vi) of Article
58(1)(c) of Regulation (EU, Euratom) No 966/2012. These
entities shall fulfill the requirements of Regulation (EU, Euratom) No 966/2012
and shall comply with Union objectives, standards and policies, as well as best
practices regarding the use of and reporting on Union funds.
Title VIII of Part One of Regulation (EU,
Euratom) No 966/2012 shall apply with the exception of paragraph 1; the first
subparagraph of paragraph 4 and paragraph 5 of Article 139 thereof.
Financial instruments may be grouped into
regional facilities for implementation and reporting purposes. 
Article 41
Experts
The second paragraph of Article 204 of Regulation
(EU, Euratom) No 966/2012 and Article 287 of Delegated Regulation (EU) No
1268/2012 concerning remunerated external experts shall apply.
Article 42
Union trust funds
1.           Subject to paragraph 2 of
this Article, Article 187 of Regulation (EU, Euratom) No 966/2012 shall apply.
2.           With regard to Article
187(8) of Regulation (EU, Euratom) No 966/2012, the competent committee shall
be the committee referred to in Article 8 of the Internal Agreement.
TITLE IX
PRESENTATION OF THE ACCOUNTS AND ACCOUNTING
Article 43
11th EDF
accounts
1.           The 11th EDF
accounts describing its financial situation as of 31 December of a given year
shall comprise:
(a)         
the financial statements;
(b)         
the report on financial implementation;
The financial statements shall be accompanied
by the information supplied by the EIB in accordance with Article 57.
2.           The accounting officer
shall send the provisional accounts to the Court of Auditors by 31 March of the
following year.
3.           The Court of Auditors
shall, by 15 June of the following year, make its observations on the
provisional accounts as regards the part of the 11th EDF resources
for the financial management of which the Commission is responsible, so that
the Commission can make the corrections deemed necessary for drawing up the
final accounts.
4.           The Commission shall
approve the final accounts and send them to the European Parliament, the
Council and the Court of Auditors by 31 July of the following year at the
latest.
5.           The second subparagraph of
Article 148(3) of Regulation (EU, Euratom) No 966/2012 shall apply.
6.           The final accounts shall
be published in the Official Journal of the European Union together with
the statement of assurance given by the Court of Auditors in accordance with
Article 49 by 15 November of the following year.
7.           The provisional and final
accounts may be sent pursuant to paragraphs 2 and 4 by electronic means.
Article 44
Financial statements and
the report on financial implementation
1.           Article 145 of Regulation
(EU, Euratom) No 966/2012 shall apply.
2.           The report on financial
implementation shall be prepared by the responsible authorising officer and
transmitted to the accounting officer by 15 March for the inclusion in the 11th
EDF accounts. It shall present a true and fair view of the revenue and
expenditure operations from 11th EDF resources. It shall be
presented in millions of euro and shall comprise:
(a)         
the financial outturn account, which sets out
all financial operations for the year in terms of revenue and expenditure;
(b)         
the annex to the financial outturn account,
which shall supplement and comment on the information given in that account.
3.           The financial outturn
account shall contain the following tables:
(a)         
a table describing changes over the preceding
financial year in the allocations;
(b)         
a table showing by allocation the total
commitments, assigned funds and payments effected during the financial year and
aggregate totals since the opening of the 11th EDF.
Article 45
Monitoring and reporting
by the Commission and the EIB
1.           The Commission and the EIB
shall monitor, each to the extent to which it is concerned, the use of 11th
EDF assistance by the ACP States, the OCTs or any other beneficiary, and the
implementation of projects financed by the 11th EDF, having particular
regard to the objectives referred to in Articles 55 and 56 of the Cotonou
Agreement and in the corresponding provisions of the Overseas Association
Decision.
2.           The EIB shall periodically
inform the Commission regarding the implementation of projects financed by the 11th
EDF resources it administers, following the procedures set out in the
operational guidelines of the Investment Facility.
3.           The Commission and the EIB
shall provide the Member States with information on the operational implementation
of 11th EDF resources as foreseen in Article 18 of the
Implementation Regulation. The Commission shall send that information to the
Court of Auditors in accordance with Article 11(6) of the Internal Agreement.
Article 46
Accounting
The accounting rules referred to in Article
143(1) of Regulation (EU, Euratom) No 966/2012 shall apply to the 11th
EDF resources managed by the Commission. These rules shall be applied to the 11th
EDF while taking into account the specific nature of its activities.
The accounting principles contained in
Article 144 of Regulation (EU, Euratom) No 966/2012 shall apply to the
financial statements referred to in Article 44 of this Regulation. 
Articles 151, 153, 154, and 155 of Regulation
(EU, Euratom) No 966/2012 shall apply.
The accounting officer shall prepare and,
after consulting the responsible authorising officer, adopt the chart of
accounts to be applied to the 11th EDF's operations.
Article 47
Budgetary accounting
1.           The budgetary accounts
shall provide a detailed record of the financial implementation of the 11th
EDF resources.
2.           They shall show all:
(a)         
allocations and the corresponding 11th
EDF resources;
(b)         
financial commitments;
(c)         
payments, and established debts and collection
operations for the financial year, in full and without any adjustment against
each other.
3.           When commitments, payments
and debts are expressed in national currencies, the accounting system shall
make it possible, where necessary, for them to be recorded in national
currencies as well as in euro.
4.           Global financial
commitments shall be recorded in euro for the value of the financing decisions
taken by the Commission. Individual financial commitments shall be recorded in
euro at the equivalent of the value of the legal commitments. That value shall
include where appropriate:
(a)         
provision for the payment of reimbursable
expenses on presentation of supporting documents;
(b)         
provision for the revision of prices, for the
increase in quantities, and for contingencies as defined in 11th EDF-funded
contracts;
(c)         
financial provision for exchange rate
fluctuations.
5.           All accounting records
referring to the fulfilment of a commitment shall be kept for a period of five
years from the date of the decision giving discharge in respect of the
financial implementation of 11th EDF resources, referred to in
Article 50, concerning the financial year during which the commitment was
closed for accounting purposes.
TITLE X
EXTERNAL AUDIT AND DISCHARGE
Article 48
External audit and
discharge regarding the Commission
1.           Regarding the operations
financed from 11th EDF resources managed by the Commission in
accordance with Article 16, the Court of Auditors shall exercise its powers in
accordance with this Article and Article 49.
2.           Articles 159, 160, Article
161, with the exception of paragraph 6, Article 162, with the exception of the
first sentence of paragraph 3 and of paragraph 5, and Article 163 of Regulation
(EU, Euratom) No 966/2012 shall apply.
3.           For the purposes of
Article 159(1) of Regulation (EU, Euratom) No 966/2012, the Court of Auditors
shall have regard to the Treaties, the Cotonou Agreement, the Overseas
Association Decision, the Internal Agreement, this Regulation and all other
acts adopted pursuant to those instruments.
4.           For the purposes of
Article 162(1) of Regulation (EU, Euratom) No 966/2012, the date set out in the
first sentence shall be 15 June.
5.           The Court of Auditors
shall be informed of the internal rules referred to in Article 56(1) of Regulation
(EU, Euratom) No 966/2012 including the appointment of authorising officers, as
well as of the instrument of delegation referred to in Article 69 of Regulation
(EU, Euratom) No 966/2012.
6.           The national audit
authorities of the ACP States and the OCTs shall be encouraged to participate
in the work of the Court of Auditors.
7.           The Court of Auditors may,
at the request of one of the other Union institutions, issue opinions on
matters relating to the 11th EDF.
Article 49
Statement of assurance
At the same time as the annual report
referred to in Article 162 of Regulation (EU, Euratom) No 966/2012, the Court
of Auditors shall provide the European Parliament and the Council with a
statement of assurance as to the reliability of the accounts and the legality
and regularity of the underlying transactions, which shall be published in the Official
Journal of the European Union.
Article 50
Discharge
1.           The discharge decision
shall cover the accounts referred to in Article 43, except the part thereof
provided by the EIB in accordance with Article 57, and shall be adopted in
accordance with Articles 164 and 165(2) and (3) of Regulation (EU, Euratom) No
966/2012. The discharge referred to in Article 164(1) of Regulation (EU,
Euratom) No 966/2012 shall be given in respect of those 11th EDF
resources that are managed by the Commission in accordance with Article 16(1)
of this Regulation for year n.
2.           The decision giving the
discharge shall be published in the Official Journal of the European Union.
3.           Articles 166 and 167 of Regulation
(EU, Euratom) No 966/2012 shall apply.
PART TWO
INVESTMENT FACILITY
Article 51
Role of the European
Investment Bank
The EIB shall manage the Investment
Facility and conduct operations thereunder, including interest-rate subsidies
and technical assistance, on behalf of the Union in accordance with Part Two of
this Regulation.
In addition, the EIB shall undertake the
financial implementation of other operations carried out by means of financing
from its own resources in accordance with Article 4 of the Internal Agreement,
where applicable combined with interest rate subsidies drawn from the 11th
EDF resources.
The implementation of Part Two of this
Regulation shall not give rise to any obligations or liabilities on the part of
the Commission.
Article 52 
Estimates of commitments
and payments of the Investment Facility
Each year, before 1 September, the EIB
shall send the Commission its estimates of commitments and payments, which are
necessary for drawing up the communication referred to in Article 7(1) of the
Internal Agreement, in respect of the operations of the Investment Facility,
including those interest rate subsidies that it implements, in accordance with
the Internal Agreement. The EIB shall send the Commission updated estimates of
commitments and payments when deemed necessary. Modalities shall be defined in
the management agreement provided for in Article 55(4) of this Regulation.
Article 53
Management of
contributions to the Investment Facility
1.           The contributions referred
to in Article 21(7)(b) and adopted by the Council shall be paid without cost
for the beneficiary by the Member States to the EIB via a special account
opened by the EIB in the name of the Investment Facility in accordance with
detailed rules laid down in the management agreement provided for in Article
55(4).
2.           The date referred to in
Article 1(5) of the Internal Agreement shall be 31 December 2030.
3.           Save where the Council
decides otherwise regarding the remuneration of the EIB, in accordance with
Article 5 of the Internal Agreement, proceeds received by the EIB via the
credit balance of the special accounts referred to in paragraph 1 shall
supplement the Investment Facility and shall be taken into consideration for
the calls for contribution referred to in Article 21 and shall be used to meet
any financial obligation after 31 December 2030.
4.           The EIB shall undertake
the treasury management of the amounts referred to in paragraph 1 in accordance
with the detailed rules laid down in the management agreement provided for in
Article 55(4).
5.           The Investment Facility
shall be managed in accordance with the conditions laid down in the Cotonou
Agreement, the Overseas Association Decision, the Internal Agreement and Part
Two of this Regulation.
Article 54
Remuneration of the EIB
The EIB shall be remunerated on a full
indemnity basis for the management of the Investment Facility operations. The
Council shall decide on the resources and mechanisms for remuneration of the EIB
in accordance with Article 5(4) of the Internal Agreement. The measures
implementing that decision shall be incorporated in the management agreement
provided for in Article 55(4).
Article 55
Implementation of the
Investment Facility
1.           The EIB's own rules shall
apply to instruments financed by the 11th EDF resources which it
manages.
2.           Where programmes or
projects are co-financed by the Member States or their implementing bodies, and
correspond to the priorities which are laid down in the Country Cooperation
Strategies and Programming Documents provided for in the Implementation
Regulation and foreseen in the second and third subparagraphs of Article 10(1)
of the Internal Agreement and in Article 74 of the Overseas Association
Decision, the EIB may entrust tasks in the implementation of the Investment
Facility to Member States or their implementing bodies.
3.           The names of the recipients
of financial support under the Investment Facility shall be published by the
EIB, unless such disclosure risks harming the commercial interests of the
recipients, with due observance of the requirements of confidentiality and
security, in particular the protection of personal data. The criteria for
disclosure and the level of detail published shall take into account
specificities of the sector and the nature of the Investment Facility.
4.           The detailed rules for
implementing this Part shall be the subject of a management agreement between
the Commission, acting on behalf of the Union, and the EIB.
Article 56
Reporting under the
Investment Facility
The EIB shall regularly inform the
Commission of the operations carried out under the Investment Facility, including
interest rate subsidies; the use made of each call for contributions paid to the
EIB; and, in particular, of the total quarterly amounts of commitments,
contracts and payments, in accordance with the detailed rules laid down in the
management agreement provided for in Article 55(4). 
Article 57
Accounting and financial
statements of the Investment Facility
1.           The EIB shall keep the
accounts of the Investment Facility, including those interest rate subsidies
that are implemented by it and financed by the 11th EDF, to provide
a trail for the full circuit of the funds, from receipt to disbursement, and
then to the revenue to which they give rise and any subsequent recoveries. The
EIB shall draw up the relevant accounting rules and methods which are guided by
international accounting standards and inform the Commission and the Member States accordingly.
2.           Each year the EIB shall
send the Council and the Commission a report on the implementation of
operations financed from 11th EDF resources under its management,
including the financial statements drawn up in accordance with the rules and
methods referred to in paragraph 1 and the information referred to in Article
44(3).
Those documents shall be submitted in draft
form no later than 28 February and in their final version no later than 30 June
of the financial year following the one which they concern, so that they can be
used by the Commission in preparing the accounts referred to in Article 43 in
accordance with Article 11(5) of the Internal Agreement. The report on the
financial management of the resources managed by the EIB shall be submitted by
the latter to the Commission no later than 31 March.
Article 58
External audit and
discharge on EIB operations
The operations financed from 11th
EDF resources managed by the EIB in accordance with Part Two shall be subject
to the audit and discharge procedures of the EIB. Detailed rules for auditing
by the Court of Auditors are set out in a Tripartite Agreement between the EIB,
the Commission and the Court of Auditors.
PART THREE
TRANSITIONAL AND FINAL PROVISIONS
TITLE I
TRANSITIONAL PROVISIONS
Article 59
Transfer of balances
remaining from previous European Development Funds
Transfers to the 11th EDF of the
balances remaining from resources constituted under the Internal Agreements
relating to the Eighth, Ninth and Tenth European Development Funds (hereinafter
“previous EDFs”) shall be made in accordance with Articles 1(2)(b), 1(3) and
1(4) of the Internal Agreement.
Article 60
Revenue from interest on
resources of previous EDFs
The balance of revenue accruing from
interest on the resources of previous EDFs shall be transferred to the 11th
EDF and allocated for the same purposes as the revenue provided for in Article
1(6) of the Internal Agreement. The same shall apply to miscellaneous revenue
of previous EDFs comprising, for example, default interest received in the
event of late payment of contributions to those EDFs by Member States. The
interest generated by the 11th EDF resources managed by the EIB
shall supplement the Investment Facility.
Article 61
Reduction of contributions
by remaining balances
The amounts from projects under the 10th
EDF or from previous EDFs not committed according to Article 1(3) of the
Internal Agreement, or decommitted according to Article 1(4) of the Internal
Agreement, unless decided otherwise by the Council unanimously, shall reduce
that part of Member States’ contributions stated in Article 1(2)(a) of the
Internal Agreement.
The impact on the contribution of each Member State shall be calculated in proportion to the contribution of each Member State to the 9th and 10th EDF. The impact shall be calculated annually.
Article 62
Application of this
Regulation to operations under previous EDFs
The provisions of this Regulation
concerning the financial actors, revenue operations, validation, authorisation
and payment of expenditure, IT systems, grants, procurement, the presentation
of accounts and accounting, as well as external audit and discharge also apply
to operations financed from previous EDFs while respecting the existing legal
commitments. These provisions shall not apply to the Investment Facility.
Article 63
Commencement of
contribution procedures
The procedure concerning Member States'
contributions laid down in Articles 21 to 24 shall apply for the first time for
the contributions of the year N + 2, under condition that the Internal
Agreement enters into force between 1 October of year N and 30 September of
year N + 1.
TITLE II
FINAL PROVISIONS
Article 64
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.
It shall be binding in its
entirety and directly applicable in all Member States.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ C , , p. .
[2]               OJ C , , p. .
[3]               Regulation (EU, Euratom) No 966/2012 of the European
Parliament and of the Council of 25 October 2012 on the financial rules
applicable to the general budget of the Union and repealing Council Regulation
(EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p.1.) 
[4]               Commission Delegated Regulation (EU) No 1268/2012[4]
of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No
966/2012 of the European Parliament and of the Council on the financial rules
applicable to the general budget of the Union (OJ L 362, 31.12.2012, p.1.)
[5]               Council Regulation (EEC, Euratom) No 1182/71 of 3
June 1971 determining the rules applicable to periods, dates and time limits (OJ
L 124, 8.6.1971, p. 1).
[6]               Directive 95/46/EC of the European Parliament and of
the Council of 24 October 1995 on the protection of individuals with regard to
the processing of personal data and on the free movement of such data (OJ L
281, 23.11.1995, p. 31).
[7]               Regulation (EC) No 45/2001 of the European Parliament
and of the Council of 18 December 2000 on the protection of individuals with
regard to the processing of personal data by the Community institutions and
bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1).