14 EU Water Facility for ACP countries
| (a)
(24491)
8864/03
COM(03) 211
(b)
(25313)
5757/04
COM(04) 43
Annexes 1-4
|
Commission Communication on the establishment of an EU Water Fund
Commission Communication on the future development of the EU Water Initiative and the modalities for the establishment of a Water Facility for ACP countries
Annex 1: EDF resources for ACP countries - situation at 31 October 2003
Annex 2: Draft Council Decision concerning the release of the conditional amount of €1 billion under the ninth European Development Fund for cooperation with African, Caribbean and Pacific countries
Annex 3: Draft Commission Decision amending Commission Decision No. C(2001) 1578/2 of 15 June 2001 on allocations to regional programmes and to intra-ACP cooperation under the financial protocol of the ACO-EC Partnership Agreement
Annex 4: Draft Council Decision on the position to be adopted by the Community within the ACP-EC Council of Ministers regarding a decision on the use of the reserve of the long-term development envelope as well as resources from the Investment Facility of the ninth European Development Fund for the establishment of an ACP-EU Water Facility
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| Legal base | (a) —
(b) The Communication: —
Annex 2: Article 310 in conjunction with the second sub-paragraph of Article 300(2) EC; unanimity
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| Department | International Development
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| Basis of consideration | (a) Minister's letter of 1 March 2004
(b) Minister's letter of 5 March 2004
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| Previous Committee Reports | HC 63-xxviii (2002-03), para 2 (2 July 2003) and HC 42-xi (2003-04), para 5 (25 February 2004)
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| To be discussed in Council | 23 March 2004 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | (Both) Cleared
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Background
14.1 The EU Water Initiative was launched during the World Summit
on Sustainable Development in Johannesburg in 2002. The aim was
to contribute to achieving the Millennium Development Goal (MDG)
of halving by 2015 the number of people without access to safe
water and sanitation. In Africa close to 40% of the population
are without access to safe water, and worldwide more people die
from unsafe water than from war.
Document (a)
14.2 In this Communication of 23 April 2003, the Commission proposed
the establishment of an EU Water Fund to be sourced from the €1
billion reserve of the 9th European Development Fund
(EDF). The sum was conditional as it could be released by the
Council only after the mid-term review of the performance of the
EDF in 2004, though the Commission hoped that the funds could
be released early in 2004. It recognised that the legal provisions
which apply to the EDF would have to be respected, and possibly
modified, to allow the reserve to be mobilised for this purpose.
It suggested that an appropriate way to manage the Fund might
be to set up an executive agency.
14.3 The Communication was presented to the General
Affairs and External Relations Council on 19 May 2003 , at which
agreement was reached that the Commission should continue to investigate
the options and to discuss the detail of the proposal in the Council
working groups. This accorded with the views of the Government,
which gave strong backing to the aims of the proposal.
14.4 We considered the document on 2 July 2003 but
did not clear it.
Document (b)
14.5 This Communication of 26 January 2004 provides
more information on how the Facility would operate, and proposes
management and funding arrangements and the activities it would
support. Two main types are envisaged: Institution building
and non-investment related technical assistance and Support
for investment projects and programmes and related technical assistance.
We considered the document on 25 February and asked the Secretary
of State for International Development (Mr Hilary Benn) to provide
us with the further information the Government was seeking. We
shared its concerns and its view on the activities proposed.
A major concern of the Government was that the proposal would
release the sum of €1 billion from the 9th EDF
in advance of the performance review. We did not clear the document.
The Minister's letters
14.6 In his letter of 1 March, the Minister notes
that the Commission Communication of 26 January 2004 (document
(b)) supersedes the Communication of 23 April 2003 (document (a)).
14.7 In his letter of 5 March 2004, the Minister
recalls that, whilst the Communication of 26 January 2004 seeks
a political decision from the Council to create the Water Facility,
the details of implementation will be subject to a subsequent
financing proposal for approval by the EDF Management Committee.
14.8 The Minister says that his Department is seconding
a senior water specialist to work, from 15 March, with Commission
officials on the financing proposal. The Government intends to
establish a constructive dialogue with the Commission in order
to address the concerns to which the Minister drew attention in
his Explanatory Memorandum on document (b).
14.9 The Minister then comments:
"Regarding the performance review, the details
of an alternative, staggered financing package are currently being
discussed in the Council ACP Working Group. The arrangement being
considered would see up to €500 million (£335 million)
of the conditional €1 billion (£670 million) used for
the Water Facility. This would be allocated in two equal sums.
"An initial €250 million (£168 million)
would be allocated now on the basis of information provided by
the Commission on 9th EDF commitments, disbursements, contracting
and the management reforms designed to improve quality. Good
performance is reported in these areas during 2003. As implementation
of EDF9 is still at an early stage having only commenced on 1
April 2003, Member States consider that the Commission has provided
as much information as can reasonably be expected at this stage
of the programming cycle and that this provides a suitable basis
upon which to agree to allocate the initial €250 million.
"The Council would consider a second €250
million for the Water Facility by March 2005 in the light of a
full review focused on performance. The Commission would present
this by the end of 2004 and provide updated information on portfolio
performance as well as analysis in terms of impact and evaluation
of the use of 9th EDF resources. This would also link to the
outcome of the mid-term reviews of Country Strategy papers that
will also be undertaken in 2004 and which may themselves potentially
release funds for reallocation. The Council would also decide
on the use of the remaining €500 million of the conditional
€1 billion at this stage.
"The draft Council Decision appended to the
Commission's Communication would be revised to reflect this proposed
financing arrangement. A decision is likely to be sought from
the General Affairs and External Relations Council meeting on
23 March.
"I hope it will be possible for the Committee
to give scrutiny clearance for this proposal on the basis of this
additional information and on the understanding that I shall provide
you with updated information on the technical proposal prior to
it being considered by the EDF Management Committee. This would
be a similar to the arrangement agreed on the Communication proposing
the creation of a Peace Facility for Africa from EDF9 resources."[29]
Conclusion
14.10 The Minister undertakes to provide us with
updated information on the technical proposal for financing this
Facility before it is considered by the EDF Management Committee.
The arrangement being discussed in the ACP Working Group, of
a staggered financing package which would be allocated initially
in two equal sums of €250 million, could well meet our concerns
about the allocation of the conditional €1 billion from the
9th EDF. We are also reassured to learn from the Minister
that it is the view of the Member States that the information
provided by the Commission on the performance, so far, of the
9th EDF provides a suitable basis upon which to allocate
the initial €250 million.
14.11 On the basis of the Minister's letters,
we now clear both documents.
29 (24999) 14145/03; see HC 63-xxxvii (2002-03), para
15 (12 November 2003). Back
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