CELEX: 51993PC0515
Language: en
Date: 1993-10-20
Title: Proposal for a COUNCIL DECISION on the conclusion of an Agreement, in the form of exchanges of letters, with the European Bank for Reconstruction and Development on the contribution of the European Economic Community to the Nuclear Safety Account

COMMISSION OF THE EUROPEAN COMVSUNITIES
                                        C0M(93) 515 final
                                        Brussels, 20 October 1993
                           Proposal for a
                          COUNCIL DEÇI$IQN
           on the conclusion of an Agreement, in the form
           of exchanges of letters, with the European Bank
             for Reconstruction and Development on the
         contribution of the European Economic Community
                    to the Nuclear Safety Account
                  (presented by the Commission)
 ---pagebreak---                          EXPLANATORY MEMORANDUM
1.  In conformity with the conclusions of the European Council of Lisbon, and
    following the conclusion of the Council of 7 December 1992, the Commission
    proposed that the Community should make a contribution available of 20
    MECU to the Nuclear Safety Account set up at the EBRD, in order to enhance
    the nuclear safety of the countries of Central and Eastern Europe and of the
    former Soviet Union, and negotiate an agreement to this end in the form of an
    exchange of letters with the EBRD.
    (Doc. SEC(93) 363 final of 9 March 1993).
    On 21 April 1993, the Council decided to authorize the Commission to
    negotiate the Community's participation in the above mentioned account on
    the basis of negotiating directives aiming notably at the following points :
    -    to provide for provisions on the coordination of nuclear safety related
         activities initiated by the Nuclear Safety Account, on the one hand, and of
         the Community assistance programs PHARE and TACIS, on the other;
    -    to provide for rules concerning a certain degree of financial control by the
         Court of Auditors of the Nuclear Safety Account's financial operations;
    -    to provide for a contribution of 20 MECU to the above mentioned
         account in 1993.
     (Doc. of the Council No. 6049/93 of 21 April 1993).
     In conformity with this Council decision, the Commission has negotiated
     exchanges of letters with the EBRD. These are reproduced in the annex of the
     attached draft decision.
3.1  As regards the form of the agreement, it will consist, on the one hand, of
     letters from the Community and the EBRD as foreseen by Article II, Section
     2.02 of the Rules governing the use and functioning of the Nuclear Safety
     Account and, on the other hand, of "side letters" accompanying the former and
     relating to the points of the negotiating directives which are not covered by
     the former.
 ---pagebreak--- 32 As to the substance of the exchanges of letters, the foliowiiig points should be
   noted:
   •  Tn orAer to hest safegnftfd thft fmflTiriftl mternsf o f thn Cnrrmrnrnty aa w»11
      as the auditing powers of the Court of Auditors and of the Coimnissûm, it
       appears useful to ensure in particular that the reports of die internal and
       external auditors of die EBRD on the operations of the Nuclear Safety
      Account be put at the disposal of the Commission and of die Court of
      Auditors. Moreover, should they think it appropriate, the latter would be
      in a position to verify the financial operations of the Nuclear Safety
      Account to the extent that these operations are related to Community's
   •   Following the first calls for tender issued by ms EBRD in the trame w mk
       of the Nuclear Safety Account's operations, it seems necessary to ensure
       that the Rules governing the Account as regards the awarding of tender
       contracts be correcdy inlarp^                                             To this
       effect, a particular provision specifies that, as from the conclusion of the
       flgrw^mftntrtnfhft CmrnrmnTty cantrihnlinfnr tin difio-fmiflfltinm will "he maffc
      between Member States of the Community, irrespective of whether or not
      they have individually contributed to the Account
   •   As far as the payment procedure of the Comnmnity contribution is
       concerned, it is foreseen that the contribution of 20 MECU will be made
       available to the Nuclear Safety Account either in cash or in non-interest
       bearing promissory notes in one single instalment in 1993.
   The Council Is requested to approve the conclusion of the Agreement, in the
   form of exchanges of letters as reproduced in the annex to the attached draft
   decision, with the European Bank for Reconstruction and Devdopment on the
   contribution of the European Economic Community for the Nuclear Safety
   Account
   The Commission suggests that its Vice-President Sir Leon Brittaa be
   authorized by the Council to sign the Agreement with binding effect for the
   Community,
 ---pagebreak---                               COUNCIL DECISION
                                  of            1993
            on the conclusion of an Agreement, in the form of exchanges
     of letters, with the European Bank for Reconstruction and Development
             on the contribution of the European Economic Community
                            to the Nuclear Safety Account
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community, and in
particular Article 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas the precarious situation in the field of nuclear safety in several countries of
Central and Eastern Europe and of the former Soviet Union requires international
efforts in order to enhance the level of nuclear safety in these countries; whereas the
Community, through its technical assistance programs PHARE and TACIS, devotes
considerable means to this end,
Whereas in complement to the efforts already undertaken a multilateral fund, called
Nuclear Safety Account, has been established with the European Bank for
Reconstruction and Development which aims at the financing of short term measures
to enhance the level of nuclear safety in the countries in question; whereas the
European Council of Lisbon as well as the Council in its conclusions of 7 December
 1992 have expressed the wish that the Community contributes to this fund; whereas to
this end the Council, on 21 April 1993, has authorized the Commission to negotiate a
contribution agreement; and whereas this Agreement should now be concluded,
 ---pagebreak--- Whereas the Agreement will contribute to the achievement of the Community's
objectives; whereas the Treaty does not provide, for the adoption of this Decision,
powers other than those of Article 235,
Has decided as follows :
Article 1
The Agreement on the contribution to the Nuclear Safety Account in the form of an
exchanges of letters between the Community and the European Bank for
Reconstruction and Development, is hereby approved on behalf of the European
Economic Community.
The texts of exchanges of letters are annexed to this Decision.
Article 2
The Community shall be represented in the Assembly of contributors and, if need be,
in the Operating Committee of the Nuclear Safety Account, by the Cornmission
which shall appoint its representatives.
Article 3
This decision shall be published in the Official Journal of the European Communities.
Done at Brussels,                                              1993
                                                      For the Council
                                                      The President
 ---pagebreak---                                                                      earns.
A. Form of Letter by Contributor to President of Bank
Dear Sir,
1 am writing to acknowledge your communication regarding the establishment by
the European Bank for Reconstruction and Development (the "Bank") of the
Nuclear Safety Account (the "Account") to be governed by the Rules which had
previously been adopted by consensus among the representatives of the 6-7
governments.
1. I am pleased to confirm that the European Economic Community wishes to
    make a Contribution to the Account in accordance with the Rules in the
    aggregate amount of 20 million ECU on the basis of domestic laws and
    regulations and in accordance with annual budgetary appropriations.
    To the extent it is available by legislative action the Contribution win be paid
    in cash or in non interest bearing promissory notes in ECU in one instalment
    during the period of calendar year 1993.
 3. I confirm that the terms used herein have the meaning attributed to them in
    the Rules.
                                                       Sincerely yours,
 ---pagebreak---                                           ^
B. Form of Reply by President of Bank
Dear Sir,
Thank you for your letter of                  concerning the contribution of the
European Economic Community to the Nuclear Safety Account in the aggregate
amount of 20 million ECU.
This is to confirm that the European Bank will be pleased to accept this
contribution for inclusion in the Account pursuant to the Rules governing the
Account
                                                  Sincerely yours,
 ---pagebreak---                                                     1
C. Draft side letter to be sent jointly with the letter confirming the contribution
Dear Sir,
As a complement to my letter confirming the European Community's commitment to
make a contribution of 20 MECU in 1993 to the Nuclear Safety Account, in accordance
with Article II, Section 2.02 of the Rules, the Commission, on behalf of the European
Economic Community, asks the Bank, in its capacity as administrator and operator of the
Account, to confirm its agreement to the following provisions which will form an integral
part of the Contribution Agreement:
1.     The Commission and the Bank shall closely coordinate on nuclear safety
       assistance projects and related policy orientations, ensuring the cohesion and the
       complementarity of the activities generated by the Nuclear Safety Account in
       relation to the Community's PHARE and TACIS nuclear safety assistance
       programmes. To this end, beyond the information received through normal
       channels of operation of the Account, particularly in the context of meetings of the
       Assembly of Donors or of the Operating Committee, the Commission and the Bank
       will arrange for a regular exchange of views and experiences on nuclear safety
        assistance projects of mutual interest as well as for any other useful means of
       coordination.
       As regards the financial operations of the Nuclear Safety Account to the extent that
        it is related to the Community's contribution, the Commission may forward all
       relevant information to the European Court of Auditors. Moreover, the Bank will
       supply all supplementary information that the Commission or the Court of Auditors
        may wish to receive.
        In particular, the reports of the internal and external auditors of the Bank on the
        Nuclear Safety Account, to be established in accordance with Art. IV, Section 4.04
       of the Rules, shall be made available to the Commission and, through it, to the
        European Court of Auditors. In case they consider it appropriate, the Commission
        and the European Court of Auditors, according to their respective competences,
        will be entitled to verify                                              the financial
         operations of the Nuclear Safety Account to the extent that it is related to the
         Community's contribution.
 3.      As concerns the procurement arrangements pursuant to the Rules, the
         Commission understands that the Bank accepts the understanding whereby, upon
         conclusion to this Contribution Agreement, no discrimination will be made between
         individual Member States of the European Community, irrespective of their having
         concluded individual Contribution Agreements with the Bank or not, as far as the
         awarding of procurement contracts for services or supplies are concerned in the
         course of operations of the Nuclear Safety Account.
                                                                    Sincerely yours,
 ---pagebreak---                                                 1
D. Draft side letter of reply by President of Bank
Dear Sir,
In complement to my letter accepting the contribution of the European Economic
Community to the Nuclear Safety Account, I am pleased to confirm the
agreement of the Bank to the provisions contained in the side letter to your letter
of
                                                    Sincerely yours,
 ---pagebreak---                                     FINANCIAL STATEMENT
I. FINANCIAL IMPLICATIONS
1.    Title of operation:
      Community contribution to the Multilateral Fund for Nuclear Safety in the countries of
      Eastern and Central Europe and the former Soviet Union.
      ("Nuclear Safety" Account established at the EBRD)
2.    Budget heading involved:
      Article B7 - 630
3.    Legal basis
      Article 235 EEC Treaty
4.    Description of operation
      4.1    Specific objectives of the operation
             Contribution of the Community to the "Nuclear Safety" Account established at the
             EBRD, administered by the Assembly of Donours/Operational Committee which
             includes the principal donours, thereunder the Community
      4.2    Period covered : 3 years
      4.3    Populations affected
             Countries of Eastern and Central Europe and the former Soviet Union.
5.     Classification of expenditure or revenue
       5.1   NCE
       5.2   NDA
6.     Type of expenditure or revenue
       6.1    100% subsidy, for joint financing of a multilateral fund established at the EBRD.
7.     Financial impact
       7.1 Method of calculating total cost of operation:
              Financial participation of the Community in the amount of 20 MECU, in accordance
              with the Council decision of 21 April 1993 (Council document nr. 6049/93 of
             21.4.93)
       7.2 Indicative breakdown of allocation commitments and payments
                                         BRS 1/93                  I Draft budget 94
      Commitments                              20 MECU                         pm
      Payments                         |       20 MECU             |           pm
                                                                                                /lO
 ---pagebreak--- 8.   Fraud prevention measures
     Auditing system of the EBRD as well as specific provisions regarding the auditing rights
     of the Commission and the Court of Auditors, according to the exchange of letters with the
     EBRD.
II.  ADMINISTRATIVE EXPENDITURE
1.   Will the proposed operation involve an increase in the number of Commission staff?
     No
III. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
1.   Objectives and coherence with financial programming
     1.1    Specific objectives of the proposed operation. This must be quantified (as far as is
            possible) and presented for each of the years concerned if the operation is
            multiannual.
            Support of the activities of the "Nuclear Safety" Account with the purpose of
            financing measures to improve the security of nuclear reactors in the countries of
            Eastern and Central Europe and the former Soviet Union.
     1.2    Is the operation incorporated in the DG's financial programming for the relevant
            years?
            Foreseen in the Programmes TACIS/PHARE 1993.
      1.3   To which broader objective defined in the DG's financial programming does the
            objective of the proposed operation correspond?
            Continuation of the Community action, notably with respect to the supply of
            equipment needed to improve nuclear safety.
2.   Grounds for the operation
     2.1    Grounds for the operation
            Multilateral operation following the decisions of the European Council of Lisbon
            (June 1992), the G7 Munich Summit of July 1992 and the Council conclusions of
            7.12.1992.
3.   Monitoring and evaluation of the operation
     Seat of the Commission in the Assembly of Donours/Operational Committee of the
     Account, which determines and monitors the projects and which has the authority to review
     the effectiveness of the activities financed.
                                                                                                 /K
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(93) 515 final
                                                      DOCUMENTS
EN                                                                     05 15 01
                                 Catalogue number : CB-CO-93-550-EN-C
                                                             ISBN 92-77-59990-1
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