Proposal for a Council Regulation (EC) on development cooperation with South Africa
25. 1. 2000 EN Official Journal of the European Communities C 21 E/1 II (Preparatory Acts) COMMISSION Proposal for a Council Regulation (EC) on development cooperation with South Africa (2000/C 21 E/01) COM(1999) 124 final - 1999/0070(SYN) (Submitted by the Commission on 12 March 1999) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 130w thereof, Having regard to the proposal from the Commission, Acting in accordance with the procedure laid down in Article 189c, Whereas, since the elections of April 1994 and the estab- the Community has lishment of a democratic government, turned towards a strategy of support for the policies and reforms undertaken by the South African authorities; Whereas the Council has adopted the Council Regulation (EC) No 2259/96 of 22 November 1996 on development coop- eration with South Africa (1); Whereas this abovementioned Regulation shall expire on 31 December 1999; Whereas the Agreement on Trade, Development and Coop- eration between the European Community and the Republic of South Africa stipulates in its Chapter VII financial assistance in the form of grants shall be covered by a special financial willingness to maintain its financial cooperation with South Africa at a substantial level, and that it will take the necessary decisions in this respect on the basis of a proposal by the Commission; that appropriate instruments this Agreement has entered into force, could be made Whereas other available after in particular in the framework of the future EC/ACP Cooperation Agreement and the eligibility of South Africa to the European Development Fund; in its the abovementioned Agreement contains Whereas Chapter V provisions on aims, priorities, methods and implementation of development cooperation with South Africa; Whereas in the light of the implementation of the Council Regulation (EC) No 2259/96 of 22 November 1996 abovemen- tioned, and of the Special Report No 7/98 of the Court of Auditors in respect of the European Community Development Aid Programme regarding South Africa (1986-1996), the Council Regulation (EC) No 2259/96 of 22 November 1996 has to be adapted, in particular as concerns simplification of procedures, greater focus on sectoral priorities and decen- tralised decision-making; (1) OJ L 306, 28. 11. 1996. Whereas assistance provided under this Regulation shall be implemented in coherence with actions of other donors, including multilateral institutions; Whereas Council Decision 87/373/EEC of 13 July 1987 (2) lays down the procedures for the exercise of implementing powers conferred on the Commission and the operation of the Committee that shall assist the Commission; Whereas the operation of this Committee should follow the management procedure or the advisory procedure where the management procedure is not considered appropriate; Whereas Council Regulation (EC, Euratom) No 2988/95 of 18 the Communities’ December 1995 on the protection of framework interests (3) establishes a common legal financial for all the fields of the Communities’ own resources and expen- diture; 1996 concerning Whereas Council Regulation (EC, Euratom) No 2185/96 of 11 and November to inspections carried out by the Commission in order protect the European Communities’ financial interests against fraud and other irregularities (4) applies to all areas of the Communites’ activity without prejudice to the provisions of the Community rules specific to the different policy areas, on-the-spot checks HAS ADOPTED THIS REGULATION: Article 1 Aims The Community shall implement financial and technical coop- eration with South Africa to support the policies and reforms carried out by that country’s national authorities in a context of policy dialogue and partnership. The aim of the Community cooperation programme, entitled the European Programme for Reconstruction and Development in South Africaí, shall be to contribute to South Africa’s harmonious and sustainable economic and social development and to its insertion into the world economy and to consolidate the foundations laid for a democratic society and a State governed by the rule of law in which human rights and funda- mental freedoms are fully respected. (2) OJ L 197, 18. 7. 1987. (3) OJ L 312, 23. 12. 1995. (4) OJ L 292, 15. 11. 1996. C 21 E/2 EN Official Journal of the European Communities 25. 1. 2000 the Community shall give priority to Within this context supporting operations which contribute to the fight against poverty. Community financing in local or foreign currency, 2. depending on the needs and nature of the operation, may cover: Article 2 Areas of cooperation Development cooperation to be carried out under this Regu- lation will focus mainly on: - support to policies, instruments and programmes aiming at the progressive integration of the South African economy for employment into the world economy and trade, creation, development of private sector, regional coop- special eration and integration. latter context, In this attention will be given to providing support to the adjustment efforts occasioned in the region by the estab- the free-trade area under the Trade, Devel- lishment of opment and Cooperation Agreement, especially in the SACU. Promotion of mutual general interest cooperation between European Union and South African businesses may be considered as well; - improvement of social services; living conditions and delivery of basic - support to democratisation, the protection of human rights, sound public management, local governments and involvement of civil society in the devel- opment process. the strengthening of Dialogue and partnership between public authorities and non- governmental development partners and actors will be promoted. focus on fight against poverty, Programmes shall take into account the needs of the previously disadvantaged communities and reflect the gender and environmental dimensions of devel- opment. Article 3 Eligibility of cooperation partners Cooperation partners eligible for financial assistance under this Regulation shall be national, provincial and local authorities and public bodies, non-governmental organisations and regional and international Community-based organisations, organisations, institutions and public or private operators. Any other body could be eligible if so designated by both parties. Article 4 Means, nature of expenses, information on the programme and coordination 1. The means that may be deployed under the cooperation operations referred to in Article 2 shall include in particular studies, technical assistance, training or other services, supplies and works, and also evaluation and monitoring audits and missions. - government budget expenditures to support reforms and policy implementation in the priority sectors identified through a policy dialogue, under the form of direct sectoral budget support: - investment and equipment; - in certain cases, and in particular where a programme is implemented by a non-government partner, taking into account the fact that the programme has to aim as much long-term sustainability, recurrent expen- as possible at diture and administrative, maintenance operating costs). (including Part of the financing may be channelled, in a targeted manner (e. g. emerging entrepreneurs), in the form of risk capital or interest rate subsidies to European Investment Bank loans. 3. A financial contribution from the partners referred to in Article 3 shall in principle be required for each cooperation operation. That contribution will be requested in accordance with the possibilities of the partners concerned and depending on the nature of each operation. It may be in kind. In specific cases where the partner is either a non-governmental organi- sation or a Community-based organisation, the contribution may not be required. 4. The Commission may take any appropriate step to ensure that the Community character of aid provided under this Regu- lation is made known. Opportunities may be sought for potential co-financing 5. with other donors, particularly the Member States. 6. In order to achieve the objectives of coherence and complementarity referred to in the Treaty and with the aim of the Commission may take all necessary coordination measures, notably: guaranteeing optimal effectiveness of aid, the (a) the establishment of a system for the systematic exchange information on actions financed or planned to be of financed by the Community and the Member States; (b) on-the-spot coordination of these actions by means of regular meetings and exchange of information between the representatives of the Commission and the Member States in the beneficiary country. 7. The Commission, in liaison with the Member States, may take any steps necessary to ensure adequate coordination with other donors concerned. 25. 1. 2000 EN Official Journal of the European Communities C 21 E/3 Article 5 Form of financial support been taken. The Commission shall subsequently update the project profiles and forward them to the Member States. Financial support under this Regulation shall take the form of grants. Article 6 Programming Tri-annual shall be carried out indicative programming based on specific 1. objectives in the context of close contacts with the South African Government and taking account of the coordination referred to in Article 4(6) and (7). Such a programming should result in aid being focused each year in a limited number of sectors identified amongst those areas referred to in Article 2. the results of In order to prepare for each programming exercise, in the 2. context of increased coordination with the Member States, including on-the-spot, the Commission shall draw up a recap- itulative document on cooperation strategy (Strategy Paper) to be examined by the Committee referred to in Article 8 hereafter referred to as the Committee. This Strategy Paper shall take into account the results of the most recent overall evaluation of operations financed under Regulation (EC) No 2259/96 and under this Regulation, of other regular evalu- ations of operations. This document will be discussed at the the Commission or one or more Committee request of In that case, where it is not possible to reach a members. desirable consensus on the Strategy Paper, the Committee shall give its opinion in accordance with the procedure referred to in Article 8. forward a tri-annual The Commission shall 3. indicative programme to be signed by the Commission and the South African Government, drawn up on the basis of that examin- ation, to the Committee for information. An exchange of views shall take place once a year, on the basis of a presentation by the Commission’s representative of the general guidelines for the operations to be carried out in the year ahead. Article 7 Procedures The Commission shall be responsible for appraising, 1. taking decisions on and managing operations conducted under this Regulation, in accordance with the budgetary and other procedures in force, notably those laid down in the Financial Regulation applicable to the general budget of the European Communities. this In the specific case of contribution of 2. the EPRD to regional programmes in the SADC area financed from the contribution may be utilised following LomØ EDF, Convention modalities, provided that the Financial Regulation applicable to the general budget of the European Communities are respected. the provisions of 3. In order to ensure transparency and achievement of the objectives referred to in Article 4(6), the Commission shall forward project profiles to the Member States and their local representatives as soon as the decision to appraise them has 4. All financing agreements or contracts concluded under this Regulation shall provide for on-the-spot checks by the Commission and the Court of Auditors in accordance with the usual established by the Commission pursuant to the rules in force, in particular those laid down in the Financial Regulations applicable to the general budget of the European Communities. arrangements In addition, the Commission may carry out on-the-spot checks and inspections in conformity with Regulation (EC) No 2185/96. The measures taken by the Commission in accordance with the in Article 8 shall provide for adequate procedure set out European the protection of Community in conformity with Regulation (EC) No 2988/95. interests of financial the 5. Where the operations give rise to financing agreements between the Community and South Africa, such agreements shall stipulate that taxes, duties and charges shall not be borne by the Community. Participation in invitations to tender and contracts shall 6. be open on equal terms to all natural and legal persons in the Member States, South Africa and the other ACP States. Partici- pation may be extended to include thrid countries in duly substantiated cases and in order to ensure the best cost-effec- tiveness ratio. 7. the Supplies shall originate in the Member States of European Community, South Africa or the other ACP States. In duly substantiated exceptional cases, they may originate in other countries. 8. Except as otherwise in the present Regulation, contracts shall be signed by the South African Government. In addition, if a contract is not covered by a financing agreement, contracts shall be concluded by the Commission. the Financial Regulation In application of Article 111 of applicable to the general budget of the European Communities, payments will be made through a local paying agent which will be established by agreement between the South African auth- orities and the Commission, and by whom bank accounts in local currency and euro will be opened. The paying agent must keep a full account of operations on these accounts and submit to the control of the Commission and the Court of Auditors. the Financial Regulation In application of Article 109 of applicable to the general budget of the European Communities, a National Authorising Officer may be appointed. Article 8 Comitology 1. The Commission shall be assisted by a Committee, composed of the representatives of the Member States and chaired by the representative of the Commission. C 21 E/4 EN Official Journal of the European Communities 25. 1. 2000 to be submit the measures The Commission representative shall to the 2. Committee a draft of taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the represen- tatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The chairman shall not vote. opinion of The Commission shall adopt measures which shall apply immediately. However, if these measures are not in accordance be with the communicated by the Commission to the Council forthwith. In that event, the Commission may defer application of the measures which it had decided for a period of not more than one month from the date of such communication. the Committee, shall they The Council, acting by a qualified majority, may take a different decision within the time limit referred to in the previous para- graph. a concerning any operation at 3. By way of derogation to paragraph 2 above, for financing cost of over decisions EUR 5 million and below EUR 25 million, or any adjustment of such an operation involving an increase of more than 20 % initially agreed, and proposals arising for in the amount for substantive amendments in the execution of a project which a commitment has already been made, the Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the Committee. It shall inform the Committee of the manner in which its opinion has been taken into account. 4. The Commission shall inform the Committee succinctly of financing decisions it intends to take concerning projects and programmes of a value of under EUR 5 million. Such information shall be given at least one week before the decision is taken. 5. Where the increase referred to in paragraph 3 above is more than EUR 5 million but less than 20 % of the original commitment, the Committee’s opinion shall be sought by simplified and accelerated procedures. 6. In case of programmes approved by the Committee and financed through tranches relating to more than one financial year, the Commission will take yearly subsequent financing decisions, not exceeding the determined maximum expenditure financial for the approved programme and in the limit of resources made available by the budgetary authority, without further communication to the Committee. Article 9 Monitoring and evaluation After each financial year the Commission shall submit an annual report on implementation of this Regulation to the European Parliament and the Council. The report shall set turnout with regard to commitments and out payments and the projects and programmes financed in the course of It shall contain statistics on contracts awarded for implementing projects and programmes. the budget the year. In addition the Commission shall monitor progress against each operations’ and objectives outcomes, using objectively verifiable indicators. of outputs in terms The Commission shall regularly evaluate operations financed by those operations’ the Community to determine whether objectives have been reached and to establish guidelines for improving the effectiveness of future operations. Summaries of evaluation reports shall be forwarded to the Member States. Full reports shall be made available to Member States which request them. this Regulation, the Commission shall By 31 October 2003 and eighteen months prior to the expiry of to the European Parliament and the Council an overall evaluation of the operations financed by the Community forming the tri- annual programme 2000-2002 under this Regulation, accom- panied if necessary by proposals for amendments to it and in the latter case by suggestions for the future of the Regulation. submit Article 10 Annual appropriations The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective. Each year the budgetary description will fix a ceiling within the annual appropriation for technical assistance contracts to be concluded by the Commission for the carrying out of joint operations European Communities and of the beneficiary. the mutual benefit the for of Article 11 Duration This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities and shall expire on 31 December 2006. This Regulation shall be binding in its entirety and directly applicable in all Member States