CELEX: 51999PC0391
Language: en
Date: 1999-07-26
Title: Proposal for a Council Decision modifying Decision 97/787/EC granting exceptional financial assistance to Armenia and Georgia in order to extend it to Tajikistan

COMMISSION OF THE EUROPEAN COMMUNITIES
                                             Brussels, 26.07.1999
                                             COM (1999) 391 final
                                             99/0172 (CNS)
                              Proposal for a
                        COUNCIL DECISION
modifying Decision 97/787/EC granting exceptional financial assistance to
        Armenia and Georgia in order to extend it to Tajikistan
                     (presented by the Commission)
 ---pagebreak---                       EXPLANATORY MEMORANDUM
1. GENERAL ECONOMIC SITUATION IN TAJIKISTAN
      Like Armenia and Georgia, Tajikistan was severely hit by the economic
      collapse resulting from the breaking up of the command economy and the
      disintegration of the Former Soviet Union. The crisis reached its height when
      inter-republican payments and trade virtually ceased, arrears accumulated,
      and prices increased at hyper-inflationary rates. Furthermore, civil hostilities
      in the country destroyed infrastructure, disrupted trade, and led to a large
      number of refugees or displaced persons to other regions. Under such critical
      circumstances, output sharply dropped, by two-thirds, and living standards of
      the average population fell below poverty levels.
      As a result of the continuing civil hostilities, Tajikistan was among the last
      NIS countries to initiate reforms. However, after repeated efforts to stabilise
      the economy and thanks to a peace agreement between the warring parties,
      Tajikistan recorded a first year of growth in 1997 (1.7 %). Notwithstanding
      two external shocks (continued fall in world commodity prices - in particular
      cotton and aluminium - and the financial crisis in Russia), output expanded
      remarkably by about 5.3 % in 1998, although from a very low base. Despite
      credit expansion to the cotton sector and a sharp depreciation of the currency
      against the US$ (by 33 % from August 1998 to mid-March 1999), annual
      inflation fell below 3 % in December 1998. Fiscal/quasi-fiscal difficulties
      continued in early 1999, as the Government failed to collect satisfactory
      revenue levels in January, while the Central Bank continued to provide some
      direct credits to the illiquid cotton sector. In 1998, the current account deficit
      expanded from 5.5 % to 15.2 % of GDP (without official transfers), as export
      revenues declined and remittances from Russia, likely, diminished. At end-
      1998, gross foreign exchange reserves were equivalent to US$ 65 million
      only or 1.4 months’ imports. Tajikistan's balance of payments position is
      expected to remain fragile in the medium term.
      At the end of 1998, the external debt of Tajikistan was still equivalent to US$
      1,263 million and represented 98 % of GDP. Owing to its external financing
      needs and insufficient currency reserves, the country has accumulated
      substantial arrears vis-à-vis its creditors and suppliers, including vis-à-vis the
      Community (for a global outstanding amount in arrears of some € 74 million
      including late interest) on commercial credits to finance food and medical
      imports made available in 1992. However, the Tajik authorities have
      committed themselves to fully settle their outstanding financial obligations
      towards the Community and have already secured a minimum servicing of
      their debts.
      Tajikistan is the poorest country among the CIS and one of the least
      developed countries in the world, with most of the population living below
      the poverty line. The civil war had caused poverty to intensify and to become
      widespread and had confronted the Government with the difficult challenge
      of dealing with refugees, internally displaced persons (700,000) and the
                                               2
 ---pagebreak---        demobilised soldiers. Since August 1998, in addition to the local political
       problems, the Russian financial crisis has been deeply affecting the
       population, a large share of which is unable to meet its basic needs. With a
       possible loss of control of public finances, the temptation to recourse to
       social arrears might be increased, while budgetary support for the
       implementation of the yet fragile peace agreement would be weakened.
       In order to cover basic needs in recent years, Tajikistan, as Armenia and
       Georgia, has had recourse to international humanitarian assistance, out of
       which the Community has provided a substantial share, (in particular,
       through ECHO). However, technical assistance through TACIS and Food
       Security assistance already granted have been delayed for security reasons
       while, in November 1997, the Council postponed decision on an exceptional
       financial assistance in favour of Tajikistan, pending implementation by the
       country of an IMF supported macroeconomic stabilisation and structural
       reform programme.
2. POLITICAL SITUATION
       In June 1997, after several years of civil war, a General Peace Agreement
       was signed between Tajikistan's government and the United Tajik Opposition
       (UTO). A free and fair constitutional referendum as well as parliamentary
       and presidential elections foreseen for Autumn 1999 are essential elements of
       this Peace Agreement.
       The implementation of the Agreement has been difficult, since not all armed
       groupings within Tajikistan are full participants in the process. Violent
       incidents, some of which targeting foreign personnel, have created problems
       both for the peace process and for the activities of international donors.
       The UN family and the IFIs continue, however, to support the peace process,
       whose success is important not just for Tajikistan’s future, but for Central
       Asia as a whole. The EC continues to be present through ECHO and, as from
       this year, under its rehabilitation programme and intends to normalise its
       relations with Tajikistan, including through new contractual arrangements.
       However, the timing of implementation will take into account political
       progress as regards the overall security situation and the peace process, in
       particular the holding of the constitutional referendum and the elections
       under acceptable conditions.
3. STATUS OF IMF PROGRAMME
       After two emergency post conflict credits respectively in December 1997 and
       April 1998, the IMF adopted in June 1998 a three-year ESAF programme in
       favour of Tajikistan, for an amount equivalent to US$ 128 million, in order
       to consolidate the stabilisation gains and to achieve sustainable growth. Key
       elements of the programme include restoring monetary and fiscal discipline,
       stabilising the exchange rate and interest rates, improving domestic resource
       mobilisation and increasing international reserves. The structural reforms
                                              3
 ---pagebreak---        emphasise privatisation of industrial and agricultural enterprises, private
       sector development and reforms of the financial, agricultural and social
       sectors.
       In addition, on 11 December 1998, the IMF and the World Bank took the
       initiative to convene a Consultative Group (CG) aiming at providing greater
       access to the financial facilities they implement in favour of Tajikistan and
       other NIS countries particularly hit by the spill-over effects of the Russian
       crisis. Since these countries had already high access in relation to their quota,
       the Fund and the Bank were asking bilateral donors, in particular the
       European Community, to provide exceptional complementary support.
       In December 1998, despite some slippages in the implementation of the
       ESAF-supported program, the IMF continued to support the authorities'
       adjustment and reform efforts and recommended the completion of the mid-
       term review under the first annual ESAF arrangement. Moreover, it endorsed
       their request for increased access (US$ 6 million) to Fund resources under
       the ESAF arrangement.
       The government of Tajikistan has taken strong measures to respond to the
       external shocks it faces and policies implemented have brought inflation to
       fall more rapidly than expected, economic activity to recover and real income
       to rise. Structural reforms in key areas appear to be proceeding satisfactorily,
       even if not fully according to the initial time schedule. Progress has also been
       reported recently in areas where delays had been registered. The conclusions
       of the recent IMF review mission (May 1999) in the country were
       encouraging and a positive decision on a second annual programme under
       the three-year ESAF Facility is expected shortly.
4. THE PROPOSED EXCEPTIONAL FINANCIAL ASSISTANCE TO TAJIKISTAN
       The Commission considers Tajikistan's macro-economic programme as
       being strong and comprehensive. This programme, if fully implemented,
       should ensure the necessary macro-economic stabilisation and, by the means
       of structural reforms, establish the core frame of a market economy.
       However, without additional external assistance, the reform process would
       be put in jeopardy and the country would be faced with substantial external
       imbalances in 1999 and, in the medium term, would not be able to meet its
       international financial obligations.
       Tajikistan, as one of the least developed countries in the world, is eligible for
       World Bank lending at highly concessional IDA (International Development
       Association) conditions, as well as for IMF ESAF lending, the concessional
       facility of the Fund.
       Owing to the exceptionally harsh social and economic conditions presently
       faced by Tajikistan and, in particular, to its extreme vulnerability to external
       shocks, the Commission considers that this country should be supported with
       concessional assistance and that exceptional support in the form of a mix of a
                                               4
 ---pagebreak---     loan and straight grants is required to underpin the implementation of the
    country's stabilisation and structural reform programme.
    On 17 November 1997, the Council adopted a decision1 providing
    exceptional financial assistance to Armenia and Georgia and agreed in
    principle to consider a similar assistance to Tajikistan once the latter would
    benefit from an upper credit tranche arrangement with the IMF.
    In January 1997, Tajikistan committed to fully servicing its outstanding
    financial obligations towards the Community and is presently securing a
    minimum servicing of the Community's outstanding claims. Moreover, the
    country is now implementing a comprehensive adjustment and reform
    programme in the context of a three-year ESAF arrangement approved by the
    IMF in June 1998. Therefore, the necessary preconditions for considering a
    Community exceptional financial assistance for this country appear now to
    be met.
    In the circumstances, and as already announced in its Communication to the
    Council and the Parliament of 20 January 19992, the Commission intends to
    propose an increase in the financing made available in favour of Armenia
    and Georgia in November 1997, so as to make room for exceptional
    assistance to Tajikistan. The Commission proposes that Council Decision
    97/787/EC of 17 November 1997 is adjusted with a view to increasing the
    present ceilings of long-term loans and grants that can be made available :
    –     the loans ceiling would be increased by a maximum amount of               € 75
          million ;
    –     the grants ceiling would be increased by a maximum amount of              € 35
          million to be financed by the general budget.
    These amounts are consistent with Tajikistan's residual financing needs,
    taking also into account the financial outflow resulting from the settlement of
    the country's arrears towards the Community (as of 31 March 1999, € 73
    million of arrears, with a monthly increase of some € 200,000 in interest on
    late payments). The amounts envisaged are, of course, maxima, and effective
    disbursements would depend on negotiations to be held between the Tajik
    authorities and the Commission. These negotiations would also have to fix
    the level and timetable for a net reduction in the country's net debtor position
    towards the Community, taking into account, as in the cases of Armenia and
    Georgia, the availability of the grant element of the assistance to be
    disbursed in successive annual tranches.
    The loan component of this assistance would be funded through Community
    market borrowing with a guarantee by the general budget. The beneficiary
    country would subsequently borrow from the Community. The borrowing
    and lending operations would be perfectly matched and without any
1
  97/787/EC, OJ L 322 of 25.11.1997, p. 37
2
  The Russian crisis and its impact on the NIS and Mongolia, COM(1999) 8 final, adopted by
  the Commission on 20 January 1999
                                               5
 ---pagebreak--- commercial risk for the Community. In accordance with the Guarantee Fund
mechanism the budgetary implications of a decision to make available loans
of up to € 75 million to the beneficiary country would be a maximum of €
10.5 million provisioning of the Fund to be drawn from the 1999 reserve for
guarantees relating to external actions.
As for the grant component of this assistance and without prejudice to the
competencies of the budgetary authority, the Commission considers that this
part of the exceptional assistance would have to be implemented in five equal
annual instalments of up to € 7 million from 2000 to 2004, within the limits
of Category 4 of the financial perspective for the 2000-2006 period.
In order to ensure coherence with the EC’s general policy towards Tajikistan,
a decision would be taken after the adoption of this Decision as to whether
sufficient progress has been made in the peace process, and in particular the
holding of elections, as to justify the immediate implementation of the
exceptional financial assistance to Tajikistan.
Accordingly, the Commission requests the Council to adopt the proposed
amendments and to allow Tajikistan to benefit from the existing Council
Decision 97/787/EC along with Armenia and Georgia.
                                       6
 ---pagebreak---                                         Proposal for a
                                  COUNCIL DECISION
    modifying Decision 97/787/EC granting exceptional financial assistance to
                Armenia and Georgia in order to extend it to Tajikistan
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 308 thereof,
Having regard to the proposals from the Commission3,
Having regard to the opinion of the European Parliament4,
(1)     Whereas the Council Decision 97/787/EC of 17 November 1997 provides
        exceptional financial assistance to Armenia and Georgia5 ;
(2)     Whereas, in parallel with its Decision to provide exceptional financial
        assistance to Armenia and Georgia, the Council agreed to also consider a
        similar operation for Tajikistan once circumstances allow ;
(3)     Whereas Tajikistan is undertaking fundamental political and economic
        reforms and is making substantial efforts to implement a market economy
        model ;
(4)     Whereas trade, commercial and economic links are expected to develop
        between the Community and Tajikistan ; whereas Tajikistan is eligible to a
        Partnership and Cooperation Agreement with the European Communities and
        their Member States and has formally requested to benefit from such an
        agreement as soon as possible ;
(5)     Whereas Tajikistan agreed with the International Monetary Fund (IMF) in
        June 1998 on a three-year Enhanced Structural Adjustment Facility (ESAF) ;
(6)     Whereas the Tajik authorities have formally undertaken to fully settle their
        outstanding financial obligations towards the Community and whereas
        Tajikistan secures a minimum servicing of outstanding Community claims ;
(7)     Whereas the Tajik authorities have formally requested exceptional financial
        support from the Community ;
3
        COM(1997) 24 final (OJ C 95 of 24.3.1997 p. 64) - 1997/0028/CNS and COM(1999) xxx
        final (OJ C )
4
        OJ C
5
        97/787/EC, OJ L 322 of 25.11.1997, p. 37
                                                  7
 ---pagebreak--- (8)   Whereas Tajikistan is a low income country and is facing particularly critical
      economic, social and political circumstances; whereas this country is eligible
      to highly concessional loans from the World Bank and the IMF;
(9)   Whereas concessional financial assistance from the Community in the form of
      a mix of a long term loan and straight grants is an appropriate measure to help
      the beneficiary country at this critical juncture;
(10)  Whereas this assistance, both the loan and the grant component, is highly
      exceptional and therefore in no way constitutes a precedent for the future;
(11)  Whereas the inclusion of a grant component in this assistance is without
      prejudice to the powers of the budgetary authority;
(12)  Whereas this assistance should be managed by the Commission;
(13)  Whereas in implementing this Decision, the Commission will take due account
      of progress made in the Inter-Tajik peace process and, in particular, in the
      holding of elections under acceptable conditions ;
(14)  Whereas the Commission consulted the Economic and Financial Committee
      before submitting its proposal ;
(15)  Whereas the Treaty does not provide, for the adoption of this decision, powers
      other than those of Article 308,
HAS DECIDED AS FOLLOWS :
                                      Sole article
Council Decision 97/787/EC of 17 November 1997 is modified as follows :
1.      Article 1 is modified as follows :
        (i)   Paragraphs 1 to 3 are replaced by the following :
              "The Community shall make available to Armenia, Georgia and
              Tajikistan exceptional financial assistance, in the form of long-term
              loans and straight grants. "
              "The total loan component of this assistance shall amount to a
              maximum principal of € 245 million, with a maximum maturity of 15
              years and a grace period of 10 years. To this end, the Commission is
              empowered to borrow, on behalf of the European Community, the
              necessary resources that will be placed at the disposal of the
              beneficiary countries in the form of loans. "
              "The grant component of this assistance will consist of an amount of up
              to € 130 million during the 1997-2004 period, with a maximum of
                                                8
 ---pagebreak---               € 24 million annually. The grants shall be made available insofar as the
              net debtor position of the beneficiary countries towards the Community
              is being substantially reduced. "
2.      Article 3 (1) is replaced by the following text :
        "1.   Subject to the provisions of Article 1 (4) and Article 2, the total amount
              of the loan offered to each country shall be made available by the
              Commission in parallel with the first instalments of the grants. The
              remainder of the grant component of the assistance shall be made
              available by the Commission in successive instalments, subject to the
              same provisions."
3.      Article 5 (2) is replaced by the following text :
        "2.   Before 31 December 2004 at the latest, the Council shall examine the
              application of this Decision to that date on the basis of a
              comprehensive report by the Commission. "
Done at Brussels,
                                              For the Council
                                              The President
                                                9
 ---pagebreak---                                                   ANNEX
  BUDGETARY RESOURCES NECESSARY FOR THE PROVISIONING OF THE GUARANTEE
FUND IN 1999 AND MARGIN UNDER THE RESERVE FOR LOANS AND LOAN GUARANTEES IN
                                    FAVOUR OF THIRD COUNTRIES
                                                (EUR million)
Operations                                  Basis of the       Provisioning of the         Reserve Margin
                                            calculation6             Fund7
                                                                                                346.0 8
Operations decided
       EIB/New mandates9
       CEEC                                    872.9                 122.2                        223.8
       ALA                                     218.1                   30.5                       193.3
       South Africa                            143.5                   20.1                       173.2
       MED                                     351.4                   49.2                       124.0
       FYROM                                    38.5                    5.4                       118.6
       Bosnia                                   42.0                    5.9                       112.7
       EIB/Old protocols9
       Syria                                     -30                   -4.2                       116.9
       Macro-financial assistance
       Albania III                                20                    2.8                       114.1
       Bosnia I                                   20                    2.8                       111.3
Operations proposed
       EIB/Turkey10                              105                   14.7                        96.6
       EIB/Croatia 11                             35                    4.9                        91.7
       Macro-financial assistance
       Bulgaria IV12                             100                   14.0                        77.7
       Romania IV12                              200                   28.0                        49.7
       FYROM II12                                 50                    7.0                        42.7
       Tajikistan12                               75                   10.5                        32.2
   6
            The provisioning basis is calculated by applying the relevant guarantee cover rate, namely
            70% (EIB loans new mandates), 75% (EIB loans old protocols) or 100% (macro-financial
            assistance loan).
   7
            In accordance with the provisioning rules in Council Regulation (EC, Euratom) No 2728/94 of
            31 October 1994, the Fund having reached its target amount on 31 December 1997, the
            provisioning rate has been reduced to 14%.
   8
            Amount of the Reserve for loans and loan guarantees in favour of third countries for 1999
            under the financial perspective.
   9
            Annual amounts of loans scheduled to be signed in 1999 and correction of amounts already
            provisioned in the Fund to take account of actual signings at the end of 1998: Transfer 5/99 to
            the Guarantee Fund.
   10
            Proposal for a Council Regulation on a special financial cooperation measure for Turkey
            (COM(95) 389/3).
   11
            EC/Croatia cooperation agreement (SEC(95) 180/final).
   12
            Commission proposal.
                                                          10
 ---pagebreak---                         FINANCIAL STATEMENT
1.  TITLE OF OPERATION
    Exceptional financial assistance to Tajikistan.
2.  BUDGET HEADING INVOLVED
    –     Grant component of the assistance
          Article B7-531 : Exceptional financial assistance to Armenia, Georgia
          and Tajikistan.
    –     Loan component of the assistance :
          Article B0-213 : European Community guarantee for the borrowing
          programmes contracted by the Community to provide financial
          assistance to the countries of the Commonwealth of Independent
          States.
3.  LEGAL BASIS
    Article 308 of the Treaty
4.  DESCRIPTION OF OPERATION
4.1 General objective
    a)    Description of the action
    Provision of a Community loan (to be financed by Community borrowing in
    the international capital market) in the amount of up to € 75 million and
    grant of up to € 35 million (to be financed by the General Budget) to the
    beneficiary country with a view to supporting its government's reform efforts
    towards economic progress, to containing the already widespread poverty
    and strengthening the current peace process.
    b)    Justification for the action
    The sustainability of the beneficiary country's economic reforms heavily
    depends on external financial assistance from official sources, at
    concessional terms.
4.2 Period covered and arrangements for renewal
    Period 2000-2004 for the grant
    Period 1999-2014 for the loan
                                         11
 ---pagebreak--- 5.  CLASSIFICATION OF EXPENDITURE OR REVENUE
5.1 Compulsory/Non-compulsory expenditure
    –     Grant component : non compulsory.
    –     Loan component : compulsory.
5.2 Differentiated/Non-differentiated appropriations
    –     Grant component : differentiated.
    –     Loan component : differentiated.
6.  TYPE OF EXPENDITURE OR REVENUE
    –     Straight grant (100% subsidy), which would be released in successive
          instalments.
    –     Potential activation of budget guarantee for the Community borrowing
          aimed to fund the loan.
    –     The Community grant will not be reimbursed. The loan element will be
          reimbursed.
7.  FINANCIAL IMPACT
7.1 Method of calculating total cost of operation (relation between
    individual and total costs)
    a)    Method of calculation
    The evaluation of the amounts of the assistance deemed necessary is based
    on the present estimates of the beneficiary country's residual external
    financing needs.
    For the loan component of the assistance, a token entry is proposed given
    that the amount and timing of any call on this budget line cannot be
    calculated in advance and because it is expected that the budget guarantee
    will not be called.
    b)    Effect of the action on intervention credits
    The budget entry corresponding to the grant component of the assistance will
    be activated subject to compliance with a number of policy conditions to be
    agreed with the authorities of the beneficiary country.
    The budget entry reflecting the budget guarantee for the loan component of
    the assistance will be activated only in the case of an effective call on the
    guarantee.
                                          12
 ---pagebreak--- 7.2 Itemised breakdown of cost - Schedule of commitment and payment
    appropriations
    (i)    Grants
             The financing of the expenditure will be secured in annual or six-
             monthly instalments from 2000 onwards within the limits of Category
             4 of the new Financial Perspectives for the 2000-2006 period.
             The following schedule of appropriations is proposed (in current
             million €) :
                                   2000        2001        2002       2003        2004
               Commitment            7           7           7          7           7
               appropriations
               Payment               7           7           7          7           7
               appropriations
    (ii)   Eventual call on the budget guarantee
           –      Recourse to the Guarantee Fund established by Council
                  Regulation (EC, EURATOM) n° 2728 of 31 October 1994.
           –      In case the Guarantee Fund did not contain sufficient resources,
                  additional payments would be called up from the budget by
                  transfer :
                  • Of any margin remaining in the Reserve for guarantees ;
                  • Of any late payments to the budget for which the budget
                     guarantee has been activated (under Article 27 (3) of the
                     Financial Regulation) ;
                  • Of any margin available under the ceiling of category 4 of the
                     financial perspectives or redeployment therein.
           –      In order to fulfil its obligations, the Commission can
                  provisionally ensure the debt service with funds from its
                  Treasury. In that case, Article 12 of the Council Regulation (EC,
                  EURATOM) n° 1552/89 of 29 May 1989 will apply.
8.  FRAUD PREVENTION MEASURES
    The funds will be paid directly to the Central Bank of the beneficiary country
    only after verification by the Commission Services, in consultation of the
    Economic and Financial Committee and in liaison with the IMF and World
    Bank Services, that the macro-economic policies implemented in this country
    are satisfactory and that the specific conditions attached to this assistance are
    fulfilled.
                                            13
 ---pagebreak---     Financial assistance operations under this Decision will be subject to audit by
    the relevant Commission services and the Court of Auditors, to be carried on
    the spot whenever and wherever appropriate.
9.  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
9.1 Specific and quantified objectives;
    By supporting the beneficiary country’s macro-economic reform efforts and
    complementing financing by the International Community provided to this
    country in the context of an IMF agreed programme, this assistance would
    not only underpin the transition towards market economy, but the resulting
    improved social, economic and financial situation would also be a crucial
    element for the strengthening of the peace process in the country.
    The assistance would also help the country servicing its outstanding external
    financial obligations, in particular towards the Community. These
    outstanding financial obligations towards the Community are presently
    equivalent to euro 74 million (including arrears and late interest).
    The present assistance will only be mobilised with the proviso that the
    beneficiary country will have fully discharged its outstanding financial
    obligations towards the Community.
9.2 Grounds for the operation
    – Higher access for Tajikistan to International Financial Institutions'
       financial facilities is limited and the country has already high access in
       relation to its quota.
    – Choice of ways and means :
       • Owing to its dire social and economic situation and to its extremely
          vulnerable balance of payments, Tajikistan should be supported with
          highly concessional assistance.
       • A similar assistance package has already been adopted in favour of
          Armenia and Georgia (97/787/EC)
    – Main factors of uncertainty which could affect the specific results of the
       operation:
       • Further negative developments in the economic and financial situation
          of the whole region and, in particular, of the beneficiary country.
       • Resumption of civil hostilities.
                                           14
 ---pagebreak--- 9.3 Monitoring and evaluation of the operation
    This exceptional assistance is of macro-economic nature and its monitoring
    and evaluation are based on a satisfactory track record of the IMF supported
    adjustment and reform programmes that the beneficiary country is
    implementing.
    The monitoring of the action by the Commission services will take place on
    the basis of a genuine system of macro-economic and structural policy
    indicators to be agreed with the authorities of the beneficiary country. The
    Commission services will also remain in close contact with the IMF and
    World Bank services in order to benefit from their assessment of the
    recipient country’s stabilisation and reform achievements.
    An annual report to the European Parliament and to the Council is foreseen
    in the proposed Council decision, which will include an evaluation of the
    implementation of this operation
10. ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)
    This action is exceptional in nature and will not involve an increase in the
    number of Commission staff.
                                           15