REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Tenth Annual Report 2015 on the implementation of Community assistance under Council regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community
Date: 2016-08-04
Institutions: European Commission, Secretariat-General
Subjects: Cyprus, EU programme, activity report, aid programme, development aid, economic development, financial aid, national unification

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 4.8.2016  COM(2016) 495 final   REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Tenth Annual Report 2015 on the implementation of Community assistance under Council regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community  
 
 
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

Tenth Annual Report 2015 on the implementation of Community assistance under 
Council regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of 
financial support for encouraging the economic development of the Turkish Cypriot 
community 

1. 

INTRODUCTION 
Council  Regulation  (EC)  No  389/20061  (the  "Aid  Regulation")  is  the  basis  for  the 
assistance to the Turkish Cypriot community (TCc) and requires annual reporting to 
the Council and the European Parliament. This report covers the year 2015. 

2. 

PROGRAMMING OF THE ASSISTANCE 

Between  2006  and  the  end  of  2015,  EUR  402  million  was  programmed  for 
operations  under  the  Aid  Regulation.  The  amount  committed  in  December  for  the 
2015  annual  programme  was  EUR  32,337,9002.  The  Multiannual  Financial 
Framework  (MFF)  2014-20  provides  a  multi-annual  perspective  to  the  programme 
with a provision for stable, annual funding. The assistance programme is, however, 
temporary  in  nature,  aiming  to  facilitate  the  reunification  of  Cyprus  and  Council 
Regulation No 1311/2133 laying down the MFF allows for a revision in the case that 
a reunification is achieved during the MFF period. 

3. 

IMPLEMENTATION MECHANISMS  

The programme is implemented in the areas of the Republic of Cyprus in which the 
Government of the Republic of Cyprus does not exercise effective control and where 
the application of the acquis is temporarily suspended pursuant to Protocol 10 of the 
Treaty  of  Accession.  Assistance 
through  direct 
management by the European Commission, but some projects are indirectly managed 
by the United Nations Development Programme (UNDP) or by the British Council.  

implemented  primarily 

is 

The Commission operates in a unique political, legal and diplomatic context. Ad hoc 
arrangements  are  needed  to  implement  the  programme  while  respecting  the 
principles of sound financial management. In EU-funded aid programmes, in normal 
circumstances,  agreements with a beneficiary  government would establish the legal 
framework  for  development  assistance.  No  such  agreements  can  be  made  for  the 
assistance to the TCc and the Commission has to rely on what it understands to be 
the  rules  and  conditions  applicable  locally.  Management  and  mitigation  of  the 
inherent risk is part of the Commission's responsibility and measures adopted include 
intensive monitoring and support to beneficiaries, revised payment conditions and a 
careful approach to the use of bank guarantees. The assistance includes a significant 
amount of grant support, requiring resource-intensive management.  

To  ensure  successful  and  sustainable  implementation  in  this  environment,  the  TCc 
must  fully  engage  in  the  preparation  for  the  acquis  roll-out  following  settlement. 

1 
2 
3  

OJ L65, 7.3.2006, p.5. 
Commission Decision C(2014) 9366.  
OJ L347, 2.12.2013, p.884. 

2 

 
 
                                                            
Cooperation  between  the  Turkish  Cypriot  and  Greek  Cypriot  communities  remains 
necessary for achieving the ultimate goal of reunification.  

The  Programme  Team  uses  the  EU  Programme  Support  Office  (EUPSO)  in  the 
northern part of Nicosia. The Representation of the Commission in Cyprus also hosts 
meetings  and  seminars  and  press  conferences  and  communicates  with  the  Cypriot 
public throughout the island, including on the aid programme. 

4. 

IMPLEMENTATION DURING THE REPORTING PERIOD 

4.1. 

General overview 

The Commission continues to implement the Aid Regulation with the overall aim of 
supporting reunification. The Commission stood ready to adapt the programme as a 
result of any agreements reached and action was taken to finance the opening of two 
new crossing points proposed by the two leaders as a confidence building measure.  

The  operations  in  2015  included  the  continuation  of  a  number  of  established  and 
successful  projects,  for  example  confidence  building  measures  (support  to  the 
Committee  on  Missing  Persons  and  protection  of  cultural  heritage)  and  EU 
scholarships. New impetus has been given in a number of fields with the conclusion 
of  substantial  technical  assistance  (TA)  contracts  and  consistent  technical  support 
will be particularly crucial in the period preparing for the settlement. Significant gaps 
in the capacity of beneficiaries still exist. Extensive adaption will be required before 
the acquis can be implemented, but the TCc now has a firmer understanding of the 
challenge. 

Grant  support  is  an  important  element  of  the  programme.  Given  the  importance  of 
relatively  small  grants  for  most  of  the  potential  beneficiaries,  the  Commission 
continues  to  seek  solutions  to  help  ensure  that  grants  reach  the  beneficiaries  in  a 
timely  and  efficient  manner.  This  includes  outsourcing,  and  the  Commission  has 
expanded the indirect management component in the 2015 programme. The popular 
scholarship  grant  programme  was  extended  until  2020  through  a  new  Delegation 
Agreement with the British Council. 

One  continuing  troublesome  issue  has  been  the  contract  for  the  construction  of  the 
Famagusta  sewage  network,  which  was  terminated  in  December  2013  by  the 
Commission  and  for  which  neither  the  dispute  nor  the  arrangements  for  project 
completion  have  been  resolved.  In  addition,  a  boycott  by  local  contractors  has 
affected tendering for other projects.  

At  the  end  of  the  year,  284  contracts  were  running.  This  number  has  dropped 
significantly  in  recent  years  due  to  completion  of  activities  funded  by  older 
programmes and closure or changes in management mode of grant contracts.  

As to Commission's specific activities, Corina Creţu, Commissioner for Regional and 
Urban  Policy  and  in  charge  of  the  aid  programme,  visited  the  island  in  October  to 
reaffirm the Commission's support for reunification.  

As regards the Commission's administration, the Task Force for the Turkish Cypriot 
community  was  transferred  at  the  beginning  of 2015  to  the Directorate-General  for 
Regional  and  Urban  Policy.  This  transfer  was  made  without  any  change  in  the 
mandate given to the Commission under the Aid Regulation. 

3 

 
 
 
4.2. 

Progress by objectives 

The overall objective of the aid programme is to facilitate the reunification of Cyprus 
by encouraging the economic development of the TCc, with particular emphasis on 
the  economic  integration  of  the  island,  on  improving  contacts  between  the  two 
communities  and  with  the  EU,  and  on  preparation  for  the  acquis.  The  activities  in 
2015 towards each of the objectives of the Aid Regulation were:  

4.2.1.  Objective 1: Developing and restructuring of infrastructure 

the 

provisional 

of  Next  Generation  Network 
Following 
telecommunications equipment in 2014, more technical assistance has been provided 
to  complete  the  roll-out  of  services  and  deal  with  the  remaining  problem  of  the 
billing part of the installation so far not handed over. 

acceptance 

Work  on  traffic  safety  was  reactivated  with  technical  assistance  to  stimulate 
reorganisation of responsibilities within the sector, assist with preparation for future 
acquis  roll-out  in  licensing  and  vehicle  inspection  and  drafting  of  technical 
specifications.  

treatment  plant 

The  bi-communal  Nicosia  wastewater 
(WWTP)  at  Mia 
Milia/Haspolat  has  been  producing  clean  effluent  since  2012,  but  there  are  still 
related projects to undertake: a contract for design of the new trunk sewer serving the 
whole of Nicosia and connecting to the WWTP was signed in November; agreement 
has been reached on sharing of the treated WWTP effluent and feasibility work and 
design  of  the  distribution  system  up  to  the  buffer  zone  is  underway;  the  same 
consultant will also study the agricultural use of sewage sludge from the WWTP and 
prepare technical specifications for sludge spreading equipment. 

All  remedial  works  were  completed  for  the  Morphou/Güzelyurt  WWTP  and  the 
Performance Certificate has been issued A tender was launched for construction of a 
reservoir and network for re-use of treated water from the plant, but this tender was 
not successful. 

The  Commission  has  launched  a  study  to  identify  the  necessary  remedial  works  to 
the Famagusta sewage networks and its cost. Design work is also underway for the 
extension to the Koutsoventsis/Güngör landfill, including specifications for a unit for 
treating  leachate  running  from  the  site.  An  order  was  also  placed  for  waste 
transportation trucks. These efforts on solid waste management will be supplemented 
by further investments to be made under the 2015 programme, including closure of 
polluting  dumpsites  and  construction  of  "transfer  stations"  for  efficient  transport  of 
waste  to  the  new  landfill.  Also  in  the  solid  waste  field,  a  new  medical  sterilisation 
facility was ordered to  help prevent dangerous disposal of unsterilised waste. Solid 
waste  management  is  also  addressed  in  grant  schemes  supporting  civil  society  and 
local communities (see below).  

The  UNDP,  through  indirect  management,  is  completing  the  construction  of 
information  and  management  centres  in  four  potential  Natura  2000  areas.  These 
partially constructed buildings were the subject of a contract terminated in 2011. 

4 

 
 
Importantly,  a  major  technical  assistance  programme  started  in  2015,  targeting 
improved  management  capacity  in  both  the  water  and  waste  sectors.  Legal  texts  in 
these  areas  were  already  drafted  under  a  previous  TA  project,  which  finished  in 
2012. 

4.2.2.  Objective 2: Promoting social and economic development 

Following  the  business  support  technical  assistance  completed  in  2013,  a  new  TA 
contract  was  signed  in  November,  as  a  second  phase  of  the  intervention,  to  build 
capacity  in  business  support  organisations,  assess  the  feasibility  of  business 
incubation and clustering, facilitate dialogue on a Smart Specialisation Strategy that 
is  needed  for  access  to  European  Structural  and  Investment  Funds,  and  analyse 
market trends. In addition, by December, all preparatory work for the conclusion of a 
Delegation Agreement with the European Bank for Reconstruction and Development 
(EBRD)  was  completed.  This  will  enable  SMEs  to  access  EBRD  credit  funds  and 
know-how  for  business  development  from  2016.  Businesses  are  also  supported 
directly  through  grants  and  36  grant  contracts  under  the  SME  Development: 
Modernising  Products  and  Services  grant  scheme  remained  open  at  the  end  of  the 
year.  

In  the  rural  development  field  work  was  underway  to  raise  standards  in  the  dairy 
sector.  Technical  assistance  to  strengthen  the  capacity  of  veterinary  services  to 
secure  and  monitor  compliance  with  animal  health  standards  and  other  sanitary 
requirements for control and prevention of animal diseases and future trade of animal 
products across the Green Line started in mid-2015 and will continue in 2016. This 
will  continue  to  be  a  particularly  challenging  assignment.  Substantial  TA  was 
provided  in  2015  and  significant  investments  made  in  plant  and  equipment  for 
animal  by-product  management,  disease  eradication  and  for  reforming  the  dairy 
sector.  A  metrology  programme,  assisting  laboratories  in  measurement  capability, 
will  start  in  2016  along  with  TA  to  assist  in  further  strengthening  agricultural 
extension  services.  The  olive-growers  associations  of  the  two  communities  have 
proposed  a  trial,  bi-communal  programme  for  control  of  fruit  fly  pests  and 
preliminary  work  has  been  included  in  the  2015  programme.  Out  of  the  39  grant 
contracts awarded in 2013 under the 3rd Rural Development Grant Scheme, 22 were 
still running at the end of 2015. 

In the education sector, 13 grants were awarded in 2015 under the EUR 1.5 million 
scheme  for  Innovation  and  Change  in  Education  VI,  covering  objectives  including 
enhanced  teaching/learning  capacity,  joint  projects  with  Greek  Cypriot  schools, 
entrepreneurship  and  lifelong  learning.  Six  grant  contracts  out  of  ten  from  the 
previous scheme (2013) were still running at the end of 2015. 

After  completion  of  the  Vocational  Education,  Training  and  Labour  Market 
(VETLAM) project in 2012, a new TA contract was signed in 2015 for a follow-on 
project (VETLAM II) covering development and promotion of vocational education 
and  training  systems,  life-long  learning,  improving  employability  and  enhancing 
linkages between education and the labour market. This will be complemented by a 
grant  scheme  for  schools  and  lifelong  learning  organizations  included  in  the  2015 
programme. 

Consultation meetings were held with local communities to prepare the ground for a 
EUR  4.85  million  grant  scheme  to  be  launched  early  in  2016:  Community 
Development 4 that will focus on sharing public services to increase efficiency and 
quality.  Priorities  will  include  solid  waste  management,  in  complement  to  the 
extensive  infrastructure  investments  foreseen  in  the  2014  and  2015  programmes. 

5 

 
 
Nine grant contracts under earlier community development grant schemes were still 
running at the end of 2015. 

Since  2008,  a  Project  Management  Unit  (PMU)  has  been  providing  services  to 
support the implementation of grant schemes, with a range of training activities for 
applicants  and  grant  beneficiaries.  The  PMU  activities  are  continued  with  a  wider 
scope under a new service contract signed in 2015. This PMU provides valuable help 
to the Commission in terms of increased efficiency and assurance. 

Following the conclusion in 2014 of an economic monitoring programme conducted 
by  the  World  Bank  under  a  Trust  Fund  funded  by  the  2006  programme,  a  second 
phase programmed in 2014 started in early 2015, building on the results of previous 
analytical work and providing additional in-depth analysis and technical assistance in 
relevant areas. 

4.2.3.  Objective 3: Fostering reconciliation, confidence building measures, and support to 

civil society 

The Committee on Missing Persons (CMP), supported by the aid programme through 
an indirect management arrangement with UNDP, continued its field and laboratory 
work. Out of the 2001 total missing, the CMP had exhumed 1017 sets of remains, out 
of  which  618  were  genetically identified.  The  rate  of  identification  slowed  in  2015 
due  to  an  audit  of  DNA  testing  procedures.  The  field  work  also  became  more 
difficult  as  new  information  sources  became  scarce.  In  total,  1033  sites  have  been 
excavated, but only 21% of those examined in 2015 yielded remains4. A significant 
breakthrough, however, was achieved in November with the granting of access over 
the  period  2016-19  to  30  suspected  burial  sites  in  areas  under  Turkish  military 
control. In 2015 the Commission signed two Delegation Agreements with UNDP to 
provide funding for the CMP, each for an amount of EUR 2.6 million and covering, 
respectively,  activities  in  2015  and  2016.  This  yearly  amount  represented  82%  of 
total  donations  to  the  CMP  in  2015.  Overall,  in  the  period  2006-2015  the  EU 
contributed in excess of 70% of overall funding provided to the CMP by Cyprus and 
by international donors.  

the  Maronites 

Cultural  Heritage  protection  through  the  bi-communal  Technical  Committee  on 
Cultural  Heritage  (TCCH)  remained  a  key  component  of  the  reconciliation  and 
confidence building part of the aid programme. The reopening of the Othello Tower 
in Famagusta in July, attended by the two community leaders, was an important and 
highly  visible  event.  The  ceremony  for  the  completion  of  the  old  Saint  George 
Church  of 
in  November  also  drew 
in  Kormakitis/Koruçam 
considerable  participation.  An  important  development  at  the  end  of  November  was 
granting  access  to  the  TCCH  to  the  village  of  Agia  Marina/Gurpinar,  currently  a 
military site, where another important Maronite church is located, for an assessment 
of  the  conservation  and  restoration  works  needed.  The  importance  of  the  work 
conducted  by  the  TCCH  for  peace  and  reconciliation  in  Cyprus  was  recognized  by 
the European Parliament who awarded the European Citizen 2015 prize to the Greek 
Cypriot  and  Turkish  Cypriot  heads  of  the  TCCH  in  October.  A  Delegation 
Agreement  for  phase  4  of  the  Cultural  Heritage  protection  programme  was  signed 
with  UNDP  in  December.  Looking  forwards,  particular  attention  will  be  given  to 
conservation and caretaking by the beneficiary communities of restored sites.   

4 CMP data from 30 December 2015 

6 

 
 
                                                            
In  response to  an initiative for new confidence building  measures, the Commission 
acted swiftly to amend the Annex to the Green Line Regulation in  order to add the 
two new crossing  points at Deryneia and Lefka-Apliki and reallocate the necessary 
resources for their opening. Work will be undertaken by the UNDP in 2016.  

Support  to  civil  society  continued  in  2015  in  two  ways:  a  new  TA  contract  was 
signed  early  in  the  year  to  provide  capacity  building  for  civil  society  organisations 
(CSOs) and to stimulate networking and joint actions with Greek Cypriot and other 
EU CSOs. Later in the year, eight new grants were awarded under the Civil Society 
in Action V programme. These complement the 10 grants already running under Civil 
Society  in  Action  IV.  The  Civil  Society  Forum  (CSF),  a  platform  where  CSOs  can 
express  their  expectations  and  priorities,  was  launched  in  October  and  convenes 
every three months. The CSF acts as a catalyst for advocacy of CSOs and promotes 
active citizenship. 

In  December,  the  Turkish  Cypriot  Chamber  of  Commerce  announced  the  awards 
under its bi-communal internship programme, supported by aid programme funding, 
covering  80%  of  project  costs,  which  will  provide  internship  opportunities  to  24 
Turkish Cypriot and Greek Cypriot university graduates in the other community.   

4.2.4.  Objective 4: Bringing the TCc closer to the EU 

The management of scholarships to the EU was outsourced to the British Council for 
the academic years 2014-16 and 125 grants were awarded under this scheme in 2015. 
This  arrangement  was  extended  for  a  further  three  years  through  a  Delegation 
Agreement  signed  with  the  British  Council  in  December,  covering  the  academic 
years 2017-20. The Commission has ensured access to scholarships every year since 
2007  and  continuity  of  this  scheme  is  considered  vital.  As  part  of  the  activities  to 
manage the Scholarship programme, British Council is organising 'Study in Europe' 
days to provide information to students about study possibilities outside the UK. It is 
also  developing  an  alumni  network  and  will  monitor  medium-term  impact,  for 
example the return rate of students to Cyprus and success in finding employment.  

A  new  Infopoint  started  operating  in  early  2015.  This  generated  a  high  level  of 
visibility for the EU, its policies and the EU-funded aid programme with 35 events 
during 2015. Many information products were distributed. There is also a Facebook 
page abbilgi and significant print media and TV coverage of Infopoint activities.   

4.2.5.  Objectives  5/6:  Preparing  the  Turkish  Cypriot  community  to  introduce  and 

implement the acquis 

The  Commission's  Technical  Assistance  and  Information  Exchange  (TAIEX) 
instrument is used to  implement objectives  5 and 6 of the Aid Regulation and thus 
helps prepare the TCc for implementation of the acquis in view of the withdrawal of 
its suspension upon the entry into force of a comprehensive settlement of the Cyprus 
problem. Assistance continued in 2015 around the same 16 main areas, or 'sectors', of 
the acquis as in previous years, in order to facilitate the reunification of Cyprus. In 
total,  the  number  of  events  organised  in  2015  was  307.  TAIEX  actions  included 
expert  missions,  training  courses,  workshops  and  study  visits.  TCc  stakeholders 
demonstrated  a  significantly  heightened  awareness  of  acquis  requirements  in  the 
active TAIEX sectors. A seminar for high level TCc stakeholders on EU regional and 
urban policy was held in Brussels in November. 

Support  to  trade  across  the  Green  Line  (Regulation  866/2004)  continued.  The 
independent  experts  have  been  involved  in  2015  in  carrying  out  the  regular 
phytosanitary inspections of potatoes and citrus products, taking honey samples for 

7 

 
 
analysis  and producing an updated list  of vessels whose catch can  be traded  across 
the Green Line. 

4.3. 

Financial execution (contracts and payments) 

4.3.1.  Contracting 

Commitments  amounted  to  EUR  27.7  million  in  2015  and  included  a  significant 
volume  of outsourced  work  and some important technical assistance contracts. The 
commitment rate has increased for the fourth successive year, showing acceleration 
in the programme. 

4.3.2.  Payments 

Payments in 2015 were EUR 17.7 million. It is expected that the payment trend will 
be upwards as the commitment volume increases.     

4.4.  Monitoring 

The Commission has direct responsibility for implementation of most projects (direct 
management).  The  level  of  supervision  by  Commission  staff  is  high,  with  "spot-
check"  visits  as  well  as  site  meetings  and  steering  committees.  A  dedicated  PMU 
monitors grants for community development, SMEs and rural enterprises, and as of 
2015,  also  for  Civil  Society  Organizations,  schools  and  vocational  education  and 
training organisations, and supports grant beneficiaries in the application of rules for 
grant implementation.  

The TAIEX monitoring was improved through the re-launch of the Project Steering 
Groups in autumn 2015, aiming at stock-taking, progress evaluation and planning for 
the  future  period.  TAIEX  logistics  are  monitored  through  the  on-line  TAIEX 
Management System. 

4.5. 

Audit and controls 

The European Court of Auditors carried out a 2015 follow-up of the 2012 TCc aid 
programme audit and has reported early in 2016. No follow-up action is required. A 
detailed  external  audit  of  internal  control  mechanisms  was  carried  out  in  order  to 
identify potential improvements in assurance following the 2015 transfer of the Task 
Force to the Directorate-General for Regional and Urban Policy. The auditors have 
reported  in  2016  and  necessary  follow-up  actions  are  ongoing.  An  ex-post  audit  of 
five  invoice  payments  was  made  in  October  by  the  Directorate-General  for 
Neighbourhood  and  Enlargement  Negotiations  (DG  NEAR)  dating  from  the  pre-
2015 period when DG NEAR managed the Task Force. No quantifiable errors were 
found. A contract was also concluded for expenditure verification of 15 grants under 
the  grants  scheme  SME  development  III:  modernising  products  and  services.  This 
work is to be carried out in 2016 as implementation of the grant contracts finishes. 

4.6. 

Evaluation 

Following  the  general  programme  evaluation  in  2013,  programme  indicators  were 
reassessed. Data was collected for many sectors and a series of new indicators was 
proposed.  It  is  clear,  however,  that  much  economic  and  social  data  is  missing  and 
that significant improvement in statistics will be necessary to accompany the future 
acquis  roll-out.  Following  the  2014  assessment  of  CMP  operations  by  the  Equipo 
Argentino de Antropologia Forense (EAAF), three more visits were made by EEAF 
in 2015, including for review of genetic testing procedures. 

8 

 
 
4.7. 

Information, Publicity and Visibility 

There  were  188  visibility  and  communication  actions  in  2015,  a  considerable 
increase over 2014 and to which the new Infopoint project, which is managed by the 
EUPSO  office  together  with  the  Representation  of  the  European  Commission  in 
Cyprus, contributed significantly (see also 4.2.4). Highlights in 2015 were: the rural 
tours 
in  Komi  Kebir/Büyükkonuk,  Kiados/Serdarlı,  Morphou/Güzelyurt  and 
Lefka/Lefke  and  panel  discussions  on  EU  policy  on  rural  development;  Mobility 
Week celebrated for the first time in the TCc; and an awareness campaign on human 
anti-trafficking.  Europe  Day  and  Green  Week  were  celebrated  with  a  large-scale 
outdoor  event  and  there  was  a  major  conference  on  cultural  heritage  bringing 
together experts island-wide. 

4.8. 

Consultations with the Government of the Republic of Cyprus 

Meetings  were  held  with  representatives  of  the  Government  of  the  Republic  of 
Cyprus,  in  particular  when  senior  Commission  officials  visited  the  island.  The 
Commission  continues to rely  on its cooperation for verification  of property  rights, 
and  also  meets  regularly  with  the  Permanent  Representation  in  Brussels.  The 
Commission's Directorate-General for Health and Food Safety undertook a technical 
mission in January to address the outbreak of lumpy skin disease, which had island-
wide repercussion. 

5. 

CONCLUSIONS 

The Commission remains committed to supporting the settlement process under the 
UN auspices, and shall make use of all possibilities under the programme to facilitate 
initiatives  arising  from  the  process,  as  it  did  during  2015  to  secure  funding  for  the 
opening  of  new  crossing  points.  The  establishment  of  the  bi-communal  ad  hoc 
committee, through which the two communities have undertaken to study technical 
issues  of  acquis  compliance,  is  a  welcome  development.  It  has  been  demonstrated 
that TAIEX support under the aid programme has had a positive impact on the work 
of  the  committee  as  TCc  participants  have  demonstrated  a  significantly  improved 
awareness of the acquis in those areas which have seen TAIEX activity. 

The  Commission  continues  to  deliver  assistance  under  the  Aid  Regulation  to 
facilitate  the  reunification  of  Cyprus  by  encouraging  the  economic  development  of 
the  Turkish  Cypriot  community,  by  working  under  its  six  objectives.  During  2015, 
assistance  brought  closer  focus  on  areas  that  present  particular  problems  in  future 
acquis compliance. These are primarily those in the field of environment and animal 
health. 

In view of the low capacity and lack of resources of the beneficiary in many fields 
and  gaps  in  readiness  for  the  future  acquis  roll-out,  project  sustainability  must  be 
carefully  considered.  The  Commission  remains  active  in  supporting  particular 
projects  for  periods  after  the  hand-over  to  beneficiaries.  Major  infrastructure  and 
plant that has been delivered is, however, now operating and maintained successfully 
by the beneficiaries.  

The programme is demonstrating acceleration, as shown by increasing commitment 
rate. Fast response to the  needs of the beneficiary becomes ever more important as 
the settlement talks evolve.  

9