6 EU Water Facility for ACP countries
| (25527)
8178/04
COM(04) 241
+ Annex
| 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 | 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 | EM of 16 April 2004
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| Previous Committee Reports | None; but see (24491) 8864/03: HC 63-xxviii (2002-03), para 2 (2 July 2003) and (25313) 5757/04: HC 42-xi (2003-04), para 5 (25 February 2004) and HC 42-xii (2003-04), para 14 (10 March 2004)
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| To be discussed in Council | 23 April 2004 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
6.1 The EU Water Initiative was launched during the World Summit
on Sustainable Development in Johannesburg in 2002. The aim is
to contribute to achieving the Millennium Development Goal (MDG)
of halving by 2015 the number of people without access to safe
water and sanitation. Its main objective — poverty reduction
— is also that of the ACP-EC Partnership Agreement signed
in Cotonou on 23 June 2003.
Earlier consideration by the Committee
6.2 In its Communication of 23 April 2003, the Commission proposed
the establishment of an EU Water Facility for African, Caribbean
and Pacific States — the EU-ACP Water Facility — sourced
from the €1 billion reserve of the 9th European
Development Fund (EDF) and conditional on the mid-term review
of EDF performance in 2004. The General Affairs and External
Relations Council on 19 May 2003 agreed 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.[5]
6.3 A further Commission Communication of 26 January
2004 provided more information on how the Facility would operate.
We were concerned to see a staggered financing package and were
not convinced that effective conditionality would be attached
to the disbursement of a second and any subsequent tranches.
We also asked the Secretary of State for International Development
(Mr Hilary Benn) to provide us with the further information the
Government was seeking concerning management of the proposed facility.
We did not clear the document.[6]
6.4 In his letter of 5 March 2004, the Minister outlined
steps that were being taken to establish a constructive dialogue
with the Commission in order to address the Government's and our
concerns. In addition to seconding a senior water specialist to
work with Commission officials on the financing proposal, the
Minister drew attention to the arrangements that he was seeking:
- an alternative, staggered financing
package that would see up to €500million (£335 million)
of the conditional €1 billion (£670 million) used for
the Water Facility, allocated in two equal sums;
- an initial €250 million (£168 million)
to be allocated now on the basis of information provided by the
Commission on 9th EDF commitments, disbursements, contracting
and management reforms designed to improve quality; and
- a second €250 million for the Water Facility
by March 2005 in the light of a full performance review focused
on evaluation of the use of 9th EDF resources and linked to the
outcome of the 2004 mid-term reviews of Country Strategies.
6.5 The Minister noted that, at the same time as
consideration was being given to disbursement of the second €250
million, the Council would also decide on the use of the remaining
€500
million of the conditional €1 billion.
6.6 We judged that 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 were also reassured
to learn from the Minister that the Member States judged that
the information provided by the Commission on the performance,
so far, of the 9th EDF provided a suitable basis upon
which to allocate the initial €250 million. Furthermore,
the Minister undertook to provide us with updated information
on the technical proposal for financing this Facility before it
was considered by the EDF Committee. On the basis of the Minister's
letters, we cleared both documents.[7]
The current proposal
6.7 This latest proposal from the Commission confirms
that the initial €250 million will be allocated for the establishment
of an ACP-EU Water Facility on the basis outlined above and seeks
agreement to it being the position upon which the Council would
enter into discussion with the ACP states about implementation
and management of the Facility.
Conclusion
6.8 We are satisfied that the Government's and
our shared concerns have now been adequately addressed, and accordingly
clear the document.
6.9 We look forward to hearing again from the
Minister, before any further decisions are taken, about the outcome
of the performance review to which disbursement of the second
tranche is linked and the details of the Council's proposals for
the use of the remaining €500 million of the conditional
€1 billion.
5 (24491) 8864/03; see HC 63-xxviii (2002-03), para
2 (2 July 2003). Back
6
(25313) 5757/04; see HC 42-xi (2003-04), para 5 (25 February 2004). Back
7
(24491) 8864/03 (25313) 5757/04; see HC 42-xii (2003-04), para
14 (10 March 2004). Back
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