CELEX: 51993PC0503
Language: en
Date: 1993-10-14
Title: Proposal for a COUNCIL DECISION on the conclusion of a Convention between the European Economic Community and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) concerning aid to refugees in the countries of the Near East

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          COM(93) 503 final
                                          Brussels, 14 October 1993
                           Proposal for a
                          COUNCIL DECISION
            on the conclusion of a Convention between the
                 European Economic Community and the
                United Nations Relief and Works Agency
      for Palestine Refugees (UNRWA) concerning aid to refugees
                   in the countries of the Near East
                    (presented by the Commission)
 ---pagebreak---                                      * -
                         EXPLANATORY   MEMORANDUM
The Commission nw*de proposals to the Council in May 1993*) for a
mandate to open negotiations for the renewal of the Convention between
the EEC and UNRWA which has expired on 31 December 1992.
In accordance with the decision of the General Affairs Council of 12
July 1993, the Cosamission negotiated on 23 - 09 - 1993 with UNRWA the
text of the proposed new Convention for the period 1993 until 1995.
As compared with the last Convention the main changes in the poposed
text, in conformity with the directives for negotiation, are as follow:
The cash contribution towards the cost of UNRWA's education and health
programmes (including the supplementary feeding programme) shall be ecu
30 million for 1993, ecu 31 million for 1994 and ecu 32 million for
1995. In the framework of the health programme UNRWA will introduce a
maternal health and family planning programme.
The financial implications of the action proposed are set out in the
financial annex.
In addition to this the "Fiche financière" and an overview over
expenditure under the last Convention are annexed to this document.
*)  SEC(93)810
 ---pagebreak---                               Proposal for a
                             COUNCIL   DECISION
              on the conclusion of the Convention between the
                    European Economic Community and the
                  United Nations Relief and Works Agency
        for Palestine Refugees (UNRWA) concerning aid to refugees
                     in the countries of the Near East
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard co the Treaty establishing the European Community, and in
particular Artxc «• 235 thereof,
Having regard to ^he proposal from the Commission,
Having regard to the Opinion of the European Parliament*)
Whereas the Convention concluded wirh the United Nations Relief and
Works Agency for Palestine Refugees (UNRWA) concerning aid to refugees
in the countries of the Near East, approved on 23 April 1990^), expired
on 31 December 1992;
Whereas the Community assistance to UNRWA fosters the campaign against
poverty in the developing countries and thereby contributes to a
sustainable economic and social d€>velopment of the concerned population
and the host: countries they live in.
Whereas a nevr Convention should be concluded, with "JNRVJA so that the
Community's aid can continue to be provided as part of a comprehensive
operation offering a measure of continuity;
Whereas continued support of UNRWA operations would be         likely to
contribute co the; attainment of the Community objectives.
Whereas the Treaty does not provide, for the adoption of this Decision,
powers other than those of Article 235,
HAS DECIDED AS FOLLOWS:
1)  Opinion delivered on
2)  OJ No L 118, 9.5.1990
 ---pagebreak---                                 Article 1
The Convention between the European Community and the United Nations
Relief and Works Agency for Palestine Refugees (UNRWA) concerning aid to
refugees in the countries of the Near East is hereby approved on behalf
of the Community.
The text of the Convention is attached to this Decision.
                                Article 2
The execution of the Community programme of food aid to UNRWA shall be
governed by the procedure defined in Regulation (EEC) No 3972/863) or,
if appropriate by any regulation on food aid repealing and replacing it.
                                Article 3
The President of the Council is hereby authorized to designate the
persons empowered to sign the Convention in order to bind the Community.
Done at                                 For the Council
                                        The President
For the Secretary-General
3)  OJ N° L 370 of 30.12.86 pp.1
 ---pagebreak---                                      -4-
                                CONVENTION
                 BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
             AND THE UNITED NATIONS RELIEF AND WORKS AGENCY
                      FOR PALESTINE REFUGEES (UNRWA)
                        CONCERNING AID TO REFUGEES
                    IN THE COUNTRIES OF THE NEAR EAST
                                 Article 1
Desirous of continuing its aid to Palestine Refugees, the European
Economic Community (hereinafter referred to as "the Community") hereby
concludes this Convention with the United Nations Relief and Works
Agency for Palestine Refugees (hereinafter referred to as "UNRWA") in
order to confirm its commitment to a programme of aid to UNRWA. This
aid shall take the form of contributions in kind or in cash extending
over a three-year period for use under the UNRWA education, health and
feeding programmes.
                                Article 2
1. The Community shall pay to UNRWA annually a cash contribution towards
the cost of the education and health programmes, including the cash
component of the supplementary feeding programme. The size of this
contribution shall be ECU 24.2 million in 1993, ECU 25.4 million in 1994
and ECU 26.7 million in 1995 for the education programme; ECU 5.0
million in 1993, ECU 4.9 million in 1994 and ECU 4.7 million in 1995 for
the health programme; ECU 0.8 million in 1993, ECU 0.7 million in 1994
and ECU 0.6 million in 1995 for the cash component of the supplementary
feeding programme. The distribution of these amounts will be amenable to
adjustment each year depending on evidence of real needs.
2. UNRWA shall send the Community each year a report on the use made of
the Community contribution. UNRWA shall also provide the Community with
all the documentation relating to the execution of the education and
health programmes, including the supplementary feeding programme; the
detailed accounts of expenditure; and budgetary estimates of future
expenditure and the yearly statistics of the UNRWA Departments of
Education and Health.
3. UNRWA shall inform the Community of any significant changes planned
for the education or health services provided by the Agency.
4. In the event of any significant changes in the education or health
services provided by UNRWA during the period of validity of this
Convention, the Community reserves the right to give its approveil to the
use made of the funds it is making available to UNRWA.
 ---pagebreak---                                 ARTICLE 3
                     Aid for the feeding programmes
1. The community shall contribute in kind or in cash to the various
UNRWA feeding programmes.
2. The size and form of the Community contribution to these programmes
and the conditions on which aid is granted shall be determined by the
Community each year in the framework of its food aid programmes, on the
basis of the requests submitted by UNRWA, with the exception of the cash
component of the supplementary feeding programme (included within the
health programme) which will amount to ECU 0.8 million in 1993, ECU 0.7
million in 1994 and ECU 0.6 million in 1995, subject to yearly
adjustments as specified in Article 2(1).
3. The Community shall pay the following contributions in cash to UNRWA
for these feeding programmes,
    -   a sum as a contribution to the operating          costs  of  the
        supplementary feeding programme, as indicated,
    -   a sum for the purchase of products in developing countries or on
        the local market in the event of an emergency or non-
        availability on the Community market or in other exceptional
        cases after agreement by the Community,
    -   a specific sum per tonne of each product received or purchased
        by UNRWA under the programme for distribution of rations to
        special hardship cases and the feeding in training centres
        programme, as a contribution to transport and distribution
        costs.
4. UNRWA shall send the Community, in April of each year, a report on
the operation of the feeding programmes, indicating in particular the
number, category and location of recipients and the services provided,
the cost of the programmes and the use made of Community contributions
in kind and in cash.
 ---pagebreak---                                      -6-
                                ARTICLE 4
                                  Visits
UNRWA will facilitate, to the extent of its capabilities, the visit of
the representatives of the European Community on the spot.
                                ARTICLE 5
                            Financial control
UNRWA shall;
1.  keep financial and accounting documents concerning the activities
    financed by the EEC, and,
2.  make available to the competent bodies of the EEC, upon request, all
    relevant financial information including statements of accounts
    concerning
the programme/project,   whether   they  are  executed  by  UNRWA  or by
subcontract ing.
In conformity with the Financial Regulation of the European Community,
the Commission and the European Court of Auditors may undertake,
including on the spot, checks related to the operations financed by the
European Community.
                                ARTICLE 6
Any question arising out of this Convention shall be settled          by
consultation between the two parties at the request of either party.
                                ARTICLE 7
                       Duration of the Convention
This Convention shall cover a period of three calendar years 1993, 1994,
1995.
                                ARTICLE 8
This Convention is drawn up in duplicate in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese and Spanish languages, each
version being equally authentic.
Done at Brussels,
             For                                  on behalf
the United Nations Relief and                   of the Council
  Works Agency for Palestine             of the European Communities
    Refugees (UNRWA)
 ---pagebreak---                                    - * -
                                                     Annex 1/Part 1
Heading B7407:   Aid to the United Nations Relief and Works Agency for
                 Palestine Refugees in the Near East
   appropriations                 appropriations          % variation
   authorized 1993                requested 1994
   commitments   payments         com.s    pay.s          com.s   pay.s
   30.0            30.0           31.0     31.0           3.3%    3.3%
1. Title of operation
   Aid to the United Nations Relief and Works Agency for Palestine Refugees
   in the Near East.
2. Budget heading involved
   Article B7-407
3. Legal basis
   Eighth Convention between the EEC and UNRWA to be signed first quarter of
   1993.
4. Description of operation
   4.1 Specific  objectives of the    operation
       Community cash contribution to the implementation of the United
       Mations Relief and Works Agency for Palestine Refugees (UNRWA)
       supplementary food aid, education and health programmes. Measures
       include distributing warn» midday nvB&ln, milk for children and
       supplementary rations for pregnant women, nursing mothers and victims
       of tuberculosis.
       The community contribution to the UNRWA education programme will help
       provide elementary and preparatory level schooling for more than
        350 000 children of Palestine refugees.
 ---pagebreak---                                         g-
       The Community contribution to the health programme will help UNRWA to
       develop its health education and family planning activities, to
       establish family planning centres, finance a programme to help the
       handicapped in a non-hospital environment and improve its diagnosis
       and guidance infrastructure.
   4.2 Duration
       The Commission is shortly to sign the 8th Convention between the EEC
       and UNRWA for the period 1993-95.
   4.3 Target   population
       Those benefiting from these measures are located in the five areas
       covered by UNRWA activities: Jordan, Syria, the Lebanon and the
       Occupied Territories of the West Bank and the Gaza Strip.
5. Classification of expenditure or revenue
   -   Compulsory expenditure
       Differentiated     appropriation
   -   Type of revenue: none
6. Type of expenditure or revenue
       100% grant
   -   Grant for joint financing with other sources in the public  and/or
       private sector: none
   -   Interest   subsidy: none
       Other: none
   -   Should the operation prove an economic success, is there provision
       for all or part of the Community contribution to be reimbursed? No.
   -   Will the proposed operation cause any change in the level of revenue?
       If SO/ what sort of change and what type of revenue is involved? No.
 ---pagebreak---                                                       *>
7. Financial impact
    7.1 Method      of calculating        total      cost of operation   for    1994 budget    year
          The following amounts have been allocated to finance the UNRWA
          education and health programmes under the seventh Convention between
          the EEC and UNRWA: ECU 22 million in 1990, ECU 24 million in 1991 and
          ECU 26 million in 1992. The eighth Convention provides for
          expenditure of ECU 30 million in 1993 and ECU 31 million in 1994.
          These contributions will not be an additional burden on the Community
          budget as they will replace the contributions in cash and in kind to
          UNRWA*s supplementary food aid programme.
   7.2 Breakdown         by area   of         activity
  AREA OF                           93 BUDG                 94 PDB            VARIATION
  ACTIVITY                                                                   IN %
  Education                              24.2                 25.4              +   5%
  Health                                  5.0                   4.9             -   2%
  Food    programme                       0.8                   0.7             - 13%
  TOTAL                                30                     31                    3.3%
    7.3   Operation      expenditure      for    studies,   experts'   meetings,     etc.   included
          in part     B.
  TYPE OF                           93 BUDGET               94 PDB            VARIATION
  EXPENDITURE                                                                 IN %
  Studies
  Experts'        meetings
                                    none                    none              none
  Conference       and
  congress
  Information        and
  publications
             TOTAL
  No of        man/years
 ---pagebreak---                                         A b'-
   7.4 Indicative    schedule  of commitment     appropriations
  Aggregate                                   INDICATIVE PROGRAMMING
  situation       Budget      PDB
  end 1992        1993        1994    1995      1996        1997   1998    T
      (1)                                                          and     O
                                                                   there-  T
                                                                   after   A
                                                                           L
   536             30          31       32        33            34  token 696
                                                                    entry
(1)     Including provision under 1991 and 1992 mini-budgets charged under
        sub-section B8.
- estimated amount needed:          ECU            million
- period of application:
8. What anti-fraud measures are planned in the proponed operation?
   Normal Commission controls.
   Under Article 3 of the Convention, UNRWA will submit an annual report to
   the Commission on the operation of the food programmes, in particular
   with regard to their cost and the use made of Community contributions in
   cash and in kind.
   Under Articles 5, UNRWA will provides all facilities for any Commission
   staff appointed to monitor the use of the Community aid. Controls will
   be carried out primarily by Commission delegates in the countries
   concerned.
 ---pagebreak---                                        M-
9. Elements of cost-effectiveness analysis
   9.1   Objectives
       Specific objective(s): connections with broader objectives and other
       measures proposed in the indicative financial programming.
       The operation is intended to contribute to the financing of food aid,
       support, education and health programmes of the United Nations Relief
       and Works Agency for Palestine Refugees for about 2.2 million people
       in five areas where the Agency is active: Jordan, Syria, the Lebanon,
       and the West Bank and Gaza Strip occupied by Israel.
       The Community contribution to the health programme will help UNRWA to
       develop its health education and family planning operations.
       More general objective:
       Developing cooperation with the UNRWA to meet the needs of refugees
       and improve education and health standards.
   9.2 Grounds for  the  operation
       - Cost: ECU 31 million in 1994
       The costs reflect the real needs established by the UNRWA (which has
       been mandated by the UN to implement education and health programmes
       for Palestine refugees in the Middle East) and are the basis of the
       Convention signed by the EEC and the UNRWA.
       The Community contribution to the UNRWA under the abovementioned
       Convention represents around 20% of the total cost of the UNRWA
       programme for refugees and is for the purpose of improving health and
       education standards for 2 200 000 refugees in the Middle East.
       - spin-off effect (impact beyond the specific objectives):
         Humanitarian measures likely to contribute to the economic and
         social stability of the region.
       - multiplier effect: ability to mobilize other forms of finance.
 ---pagebreak---                                             At-
   9.3 Monitoring and evaluation      of the    operation
   -    Performance    indicators selected:     these are established in the UNRWA
        Convention.
   -    Details   and frequency of planned evaluation:       UNRWA annual reports
   -    Assessment of operation     results:    improved situation for the?
        refugees.
   9.4 Coherence with financial     programming
   -    Is the operation incorporated in the financial        programming of the DG
        for the years concerned? Yes.
   -    To which broader objective defined in the DG's financial programming
        does the objective of the proposed operation correspond?
        Humanitarian measures.
   -    What are the main factors of uncertainty        that could affect  the
        specific results of the operation? None.
10 Administrative expenditure (part A of the Budget)
   This section will be sent to DG XIX and DG IX;          DG IX will then forward
   it to DG XIX together with its opinion.
   10.1   Will the proposed operation involve an increase        in the number of
          Commission staff? If so, how many?
   10.2   Indicate the amount of staff and administrative         expenditure
          involved in the proposed operation.        Explain the method of
          calculation.
 ---pagebreak---                                       - 4~6~
                                                    Annex 2
                   Expenditure under past Convention.
                                 Table 1
Estimated EEC contributions under the Convention     to UNRWA's  regular
programmes in 1990, 1991 and 1992 in million ecus
                                         1990       1991        1992
Cash for Education Programme             21.0       22.0        23.0
Cash for Health Programme                 1.0        2.0         3.0
Cash contribution for
Supplementary Feeding Programme           3.4         2.7        2.0
Food products
(in value, at world prices,
delivered free at destination)           14.8       16.5        16.5
Distribution costs                        0.5         1.0        0.6
            Total                        40.7       44.2        45.1
                                Table 2:
Estimated EEC contributions to UNRWA's extraordinary programmes       in
1990, 1991 and 1992 in million ecus (outside the Convention)
EMLOT                                       1990    1991       1992
(Extraordinary measures in Lebanon and
the Occupied Territory of the West Bank     0.87    12.0        1.4
and Gaza)
Distribution costs                                    1.8       0.05
Total                                       0.87    13.8        1.45
 ---pagebreak---                                            A i,
                                  Table 3
                         Summary of Tables 1 and 2
Estimated EEC contributions to UNRWA's food aid programmes
     regular programme under the Convention (Table I)
     extraordinary measures (Table II)
 (in million ecus for 1990, 1991 and 1992)
                                          1990       1991        1992
Cash contribution for
supplementary feeding programme            3.4        2.7         2.0
Food Products
(in value, at world prices,
delivered free at destination)            14.8       16.5        16.5
Distribution costs                         0.5        1.0         0.6
EMLOT
(Extraordinary measures in Lebanon and
the Occupied Territory of the West Bank              12.0         1.4
and Gaza)
Distribution costs                                    1.8         0.05
                                          18.7         34.0      20.551)
1)   The lower amount of 20.55 in 1992 can be explained by the fact that
     the Community was not able to satisfy UNRWA's extraordinary food aid
     requirements which were e»qual to those in 1991 and presumably wil]
     be similar in subsequent years.
 ---pagebreak---                                                    A%
                             FINANCIAL  ANNEX
1. Relevant budgetary lines (Budget 1993)
   Food aid programme   : Budgetary lines within Chapter       7-20
   Cash contributions    : B7-407: Aid to the United Nations Relief       and
   Works Agency for Palestine Refugees in the Near East
2• Description of Action
   Establishment of a new Convention between the EEC and UNRWA for the
   allocation of food aid in kind and in cash for the Agency's feeding
   programmes and a cash contribution for the UNRWA education, health
   and supplementary feeding programmes.
3. Legal Base
   Article 235 of the Treaty establishing               the European Economic
   Community. Regulations (EEC) no 3972/86 and no 1930/90.
4. Financial implications
   The amounts proposed towards the financing of UNRWA's Education and
   Health and Supplementary Feeding programmes under the eighth EC-
   UNRWA Convention are: ecu 30 million for 1993, ecu 31 million for
   1994, ecu 32 million for 1995 in accordance with the General Affairs
   Council of 12 July 1993.
   The size and content of the aid to UNRWA for the feeding programmes
   will be decided, as in the past, following the procedure defined in
   Regulations (EEC) no 3972/86 1 ) and no 1 9 3 0 / 9 0 2 ) .
1) OJ N° I. 370/86 of 30.12.86 pp.1-4
2) OJ 174/90 of 7.7.1990 pp.6-7
 ---pagebreak---                                                   -Ai-
                                                                      ISSN 0254-1475
                                                               COM(93) 503 final
                                                       DOCUMENTS
 EN                                                                              il
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                                                             ISBN 92-77-59863-8
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