2. Within the meaning of the Convention, regional projects are those which help directly to solve a development problem common to two or more countries through joint schemes or coordinated national schemes,
Article 135.
1. The scope of regional and inter-regional cooperation shall include in particular:
(a) acceleration of industrialization in the ACP States through the setting-up of regional and inter-regional undertakings, account being. taken of the establishment of back-up infrastructure;
(b) transport and communications: roads, railways, air and sea transport, inland waterways, postal services and telecommunications;
(c) the production of energy and joint exploitation of natural resources;
(d) research and technology applied to intensifying regional and inter-regional cooperation;
(e) agriculture, notably stock-farming, industry and the promotion of intra-ACP trade in the products of these sectors;
(f} education and training, including the establishment of joint institutions of advanced technology, in the context of training programmes to enable nationals to participate fully in economic development;
(g) control of major endemic diseases and, more generally, measures to improve the health of the population;
(h) cooperation in tourism, including the establishment of tourist promotion centres or the strengthening of existing ones on a regional basis, in order to increase regional and international tourism;
(i) technical assistance for the establishment of regional cooperation bodies or the development of new activities in existing regional bodies, including the preparation of specific programmes and projects;
(j) assistance for action by ACP-EEC business organizations set up with the aim of improving production and the marketing of products on external markets.
2. For the purpose of promoting their regional cooperation the least-developed ACP States shall have a priority claim to the application of the relevant provisions in respect of projects concerning at least one least-developed ACP State, notably where infrastructure projects relating to transport, communications, telecommunications, energy and the development of production are concerned.
Article 136.
1. An ACP State or group of ACP States participating with neighbouring non-ACP countries in a regional or inter-regional project may request the Community to finance that part of the project for which it is responsible.
2. Existing regional cooperation bodies or any- such bodies which may be set up may make a request for Community financing on behalf of their ACP Member States with the latter's explicit agreement.
3. Where a project or programme is financed by the Community through a regional institution, the terms and conditions of such financing applicable to the ultimate beneficiaries shall, in agreement with the ACP State or States concerned, be agreed between the Community and the regional institution.
Chapter 9. Emergency Aid
Article 137.
1. Emergency aid may be granted to ACP States faced with serious economic and social difficulties of an exceptional nature resulting from natural disasters or extraordinary circumstances having comparable effects.
2. For the purpose of financing the emergency aid referred to in paragraph 1, a special appropriation shall be constituted within the Fund.
3. (a) The special appropriation shall initially be fixed at 60 million EUA. At the end of each year of application of this Convention this appropriation shall be restored to its initial level.
(b) The total amount of monies which may be transferred from the Fund to the special appropriation during the period of application of this Convention may not exceed 200 million EUA.
(c) Upon expiry of this Convention any monies transferred to the special appropriation which have not been committed for emergency aid shall be returned to the Fund proper for financing other schemes falling within the scope of financing and technical cooperation, unless the Council of Ministers decides otherwise.
(d) In the event of the special appropriation being exhausted before the expiry of this Convention, the ACP States and the Community shall adopt, within the relevant joint bodies, appropriate measures to deal with the situations described in paragraph 1.
4. Emergency aid shall be non-reimbursable. It shall be allocated on a case by case basis.
5. (a) Emergency aid shall help finance the most suitable means of remedying as effectively and speedily as possible the serious difficulties referred to in paragraph 1.
(b) These means may consist of works, supplies or the provision of services and cash payments and, in exceptional cases, reimbursement in whole or in part of the sums already spent by the ACP State on implementing schemes included in the financing agreement relating to the emergency aid in question.
(c) The ACP State receiving emergency aid shall obtain its supplies from the markets of the Community, ACP States or third countries under the conditions laid down in Article 125.
(d) Where appropriate, such aid may, with the agreement of the ACP State concerned, be implemented via specialized agencies or directly by the Commission.
6. Emergency aid shall not be used for dealing with the harmful effects of the instability of export earnings, which are the subject of Title II.
7. The detailed rules for the allocation of such aid shall be the subject of an emergency procedure. The conditions governing the payment and implementation of such aid shall be determined on a case by case basis; advances may be granted by the national authorizing officer where implementation is based on an estimate.
8. (a) Operations financed by emergency aid must be carried out as quickly as possible and, whatever the circumstances, the monies must be used within six months of the implementing arrangements being established, unless otherwise stipulated by those arrangements and provided that it is not agreed by common accord during the implementation period, to extend that time limit owing to extraordinary circumstances.
(b) Where the monies made available have not all been used up within the time limit set, the fund commitment may be reduced to an amount corresponding to the monies used within that time limit.
(c) The unexpended portion shall then be paid back into the special appropriation.
Chapter 10. Technical Cooperation
Article 138.
The technical cooperation referred to in Article 93 shall cover the following:
(a) general studies, notably in the technical, economic, organizational, training or management spheres;
(b) studies for a particular project or programme;
(c) supervisory, advisory or administrative services or provision of technical cooperation personnel at the implementation stage of a project or programme;
(d) technical cooperation services other than those linked to the implementation of a project or programme.
Article 139.
1. Technical cooperation may be either linked with projects or programmes or of a general nature.
2. Technical cooperation linked with projects or programmes comprises inter alia:
(a) development studies;
(b) technical, economic, financial and commercial studies, and research and surveys required to prepare projects or programmes;
(c) help with the preparation of dossiers;
(d) help with the implementation and supervision of work;
(e) temporarily meeting the cost of technicians and providing the resources needed for them to accomplish their assignment;
(f) technical cooperation measures which may be required temporarily to permit the establishment, launching, operation or maintenance of a specific project, including where necessary appropriate technical assistance and the training of nationals of the country or countries concerned.
3. General technical cooperation comprises inter alia:
(a) studies of the prospects and means for economic development and diversification in the ACP States, and of problems of interest to groups of ACP States or to the ACP States as a whole;
(b) sectoral or product studies;
(c) the provision in the ACP States of experts, advisers, technicians and instructors of the Member States or the ACP States for specific assignments and for limited periods;
(d) the supply of instructional, experimentation and demonstration equipment;
(e) general information and documentation to promote the development of the ACP States and the achievement of the aims of cooperation.
4. At the request of the least-developed ACP States the Community shall give special priority to technical cooperation schemes aimed at:
(a) identifying, preparing and carrying out projects and programmes which form part of the indicative programmes;
(b) facilitating the implementation of the system for the stabilization of export earnings;
(c) promoting technical cooperation between ACP States;
(d) carrying out studies and research work directed towards solving specific economic and social development problems, in particular as regards technological adjustment to the special conditions and features of the least-developed ACP States.
Article 140.
1. Technical cooperation shall be provided under service contracts concluded with consultancy firms or consulting engineers or experts recruited with reference in particular to their professional qualifications and practical experience of problems of the type to be dealt with. Given equal competence, preference will be given to ACP experts or consultancy firms. In exceptional cases technical cooperation may also be undertaken through public works departments.
2. In order to speed up the procedures, service contracts, including those covering the recruitment of consultants and other technical assistance specialists, may be negotiated, drawn up and concluded either by the national authorizing officer on a proposal from the Commission or with its agreement or by the Commission in agreement with the ACP State concerned, where the scheme is urgent, of minor importance or short duration, particularly in the case of appraisals concerned with the preparation of projects and programmes.
Article 141.
1. Technical cooperation in training shall be based on multiannual training programmes and specific schemes.
2. The aim of the multiannual programmes shall be:
(a) to train nationals of the ACP States in accordance with the educational and vocational training priorities expressed by the ACP States;
(b) to train staff, notably middle management and technical staff, associated with the different development projects being financed by the Community in each ACP State so as to phase out technical assistance and to staff capital projects entirely with ACP nationals on a permanent basis.
3. The specific schemes shall deal with vocational training, technological research and innovation at State or regional organization level. Their aim shall be to provide vocational or advanced training for the staff of public services and institutions and of agricultural, industrial and commercial undertakings and services as well as training for instructors in these different fields.
4, Technical cooperation in the field of training shall be achieved through:
(a) awards to nationals of the ACP States for studies and training courses; oe
(b) the provision in the ACP States of experts and instructors who are nationals of the Member States or the ACP States, for specific assignments and for limited periods;
(c) the organization of seminars, training and advanced training courses for nationals of the ACP States;
(d) the supply of teaching, instructional, experimentation, demonstration and research equipment;
(e) collaboration between training or research establishments and universities in the Member States and corresponding bodies in the ACP States.
5. The above activities shall as a matter of priority be undertaken in the recipient ACP State or at regional level. They may where necessary be undertaken in another ACP State or in a Member State. In the case of specialized training particularly suited to the ACP States' requirements, training may in exceptional cases be provided in another developing country.
6. At the request of the least-developed ACP States, the Community shall give special priority to schemes concerned with:
(a) training for management and other staff of public administrative departments and of the technical departments responsible for economic and social development, with the aim of increasing their efficiency and thus deriving maximum benefit from the possibilities offered by this Convention;
(b) basic and further training for management and other staff in the private sector.
Article 142.
1. The rules governing the placing and award of service contracts shall be determined by a decision of the Council of Ministers at its first meeting after the entry into force of this Convention.
2. However, until the entry into force of that decision, Articles 24 to 27 of Protocol 2 to the ACP-EEC Convention of Lomé and the joint declaration on Article 26 of the said Protocol, as annexed, to the Final Act of this Convention shall apply to service contracts concluded after 1 March 1980.
Article 143.
1. Where an ACP State has, within its administrative and technical staff, national personnel making up a substantial part of the work force necessary for the execution by the public works department of a technical cooperation project, the Community may, in exceptional cases, contribute to the costs of the public works department by providing certain apparatus that it lacks, or supply the required additional staff in n the form of experts from another State.
2. The participation of the Community shall cover only costs incurred by supplementary measures and temporary expenditure relating to execution strictly confined to the requirements of the project in question and shall exclude all current operational expenditure.
Chapter 11. Technical Assistance and the Financing of Small- and, Medium-sized Undertakings
Article 144.
1. The Community shall finance schemes in favour of small- and medium-sized undertakings in the ACP States. The methods of financing shall be determined by reference to the nature of the programmes presented by those States.
2. Technical cooperation from the Community shall help to reinforce the activities of bodies in the ACP States working for the development of small- and medium-sized undertakings and to provide the necessary vocational training for such undertakings.
3. Community financing, undertaken in the form of reimbursable aid or possibly grants, shall as a general rule be through an intermediary. Such financing may also be direct. Financing through an intermediary shall be given priority whenever there exists in the ACP State concerned a bank or other national body contributing to the aim in question. Finance through an intermediary may be accorded:
- by the Bank from the resources administered by it to banks or financial institutions for onlending to small- and medium-sized industrial, agro-industrial or tourist undertakings,
- by the Commission from the resources administered by it to public bodies, local authorities or cooperatives aimed at developing craft, commercial and agricultural sectors.
4. Where the financing is undertaken via an onlending body, it shall be that body's responsibility to present individual projects within the programme already approved and to administer the monies placed at its disposal. The methods, terms and conditions for financing the final recipient shall be determined by mutual agreement between the ACP State concerned, the competent Community authority and the onlending body.
5. The projects shall be appraised by the financial body. This body shall decide, on its own. financial responsibility, on final loans to be granted on terms established by reference to those obtaining for this type of operation in the ACP State in question.
6. The financing terms accorded by the Community to the financing body shall take into consideration the latterâs need to cover its administrative costs, exchange and financial risks and the cost of technical assistance given to the undertakings or final borrowers.
Chapter 12. Micro-projects
Article 145.
1. In order to respond concretely to the needs of local communities with regard to development, the Fund shall participate in the financing of micro-projects at the ACP States' request.
2. To this end, the requisite amounts shall be included in the indicative programme of Community aid referred to in Article 109 (3) and the corresponding funds shall be deducted from the grants provided for in the first indent of Article 95 (1) (a) and may be used to cover commitments relating to this type of scheme.
3. Special priority shall be accorded to the preparation and implementation of micro-projects in the least- developed ACP States.
Article 146.
1. (a) In order to be eligible for Community financing micro-projects must:
- meet a real priority need at local level,
- ensure the active participation ef the local community.
(b) The Fund's contribution. to each micro-project may not exceed 150 000 EUA.
2. Programmes for micro-projects shall cover small projects making an economic and social impact on the life of the people and the local communities in the ACP States. These projects shall normally be located in rural areas; however, the Community may also assist in the financing of micro-projects in urban areas.
3. Micro-projects shall include: dams, wells and water supply systems, silos and warehouses for storing provisions and crops, rural electrification, rural service tracks and bridges, rural landing strips, jetties, animal vaccination pens and corridors, primary schools, training colleges, craft industries such as centres and cooperatives, maternity homes, social assistance centres, community centres, market buildings, urban sanitation and land development, premises to encourage commercial activity and other projects which meet the criteria referred to in paragraph 1.
Article 147.
1. Each project for which Community assistance is requested must stem from an initiative taken by the local community which will benefit therefrom. The financing of micro-projects shall in principle have a tripartite structure and shall stem from:
- the community concerned, in the form of a contribution, in cash or in kind or through the provision of services adapted to its capacity to contribute,
- the ACP State, in the form of a financial contribution, the use of public equipment or the supply of services,
- the Fund.
2. The total of the shares contributed by the ACP State and the local community concerned must normally be at least equal to the grant requested from the Fund. The three participantsâ contributions shall be mobilized at the same time. For each project, the local community shall undertake to maintain and run the project, in conjunction with the national authorities as appropriate.
Article 148.
1. (a) The ACP State concerned shall prepare and submit to the Commission an annual programme setting forth the broad outlines of the projects planned.
(b) After examination by the Commission's departments these programmes shall be submitted to the relevant bodies of the Community for financing decisions in accordance with Article 113.
2. Within the framework of the annual programmes thus drawn up the financing decision relating to each micro-project shall be taken by the ACP State concerned, with the agreement of the Commission delegate; agreement shall be deemed to be given once a month has elapsed from notification of such decision.
Article 149.
Upon completion of each micro-project programme the ACP State concerned, in consultation with the Commission delegate, shall forward a report on its implementation to the Commission.
Chapter 13. Taxation, Customs and other Provisions
Article 150.
The taxation and customs arrangements applicable in the ACP States to contracts financed by the Community are covered by Protocol 6.
Article 151.
In the event of an ACP State failing to ratify or denouncing this Convention in accordance with Title XI, the Contracting Parties shall be obliged to adjust the amounts of the funds provided for in the Convention. Such adjustment shall also apply on the conditions stipulated in Articles 185 and 186 upon the'accession of new ACP States to the Convention.
Article 152.
1. The financing of projects and programmes may cover expenditure incurred in and strictly limited to the start-up period, for example for the maintenance and operation of plant that is not yet fully productive, provided that such expenditure, identified in the financing proposal, is considered necessary for setting up, launching and operating the capital projects in question.
2. Special priority shall be accorded to the financing of support costs in the least-developed ACP States.
Article 153.
1. Pursuant to Article 93 (4), running costs may be financed as specified in paragraph 2, 3 or 4 of this Article.
2. The financing of running costs may serve to cover the cost of operating, maintaining or managing capital projects implemented previously, in order to ensure that full use is made of such projects, in particular by providing maintenance equipment and/or carrying out large-scale repair work.
3. Such aid shall be provided temporarily and on a diminishing scale.
4. It must be confined to exceptional cases, account being taken of the needs and resources of each ACP State concerned.
5. Special priority shall be accorded to the financing of running costs in the least-developed ACP States.
Article 154.
Upon expiry of this Convention:
- the appropriations provided for under Article 95 in the form of risk capital but not committed shall be added to those provided for in the form of special loans in the same Article,
- the appropriations provided for under Article 133 for financing regional projects but not committed shall be made available for financing, as a priority, other regional projects and programmes in the same sub-region.
Title VIII. GENERAL PROVISIONS CONCERNING THE LEAST-DEVELOPED, LAND-LOCKED AND ISLAND ACP STATES
Article 155.
1. Under this Convention the least-developed ACP States are accorded special treatment and special measures are provided for the land-locked and island ACP States in order to enable them to overcome the specific difficulties and obstacles resulting from the nature of their needs in the first case and their geographical location in the second and to take full advantage of the opportunities offered by the Convention.
2. The specific provisions laid down pursuant to this Title in respect of the least-developed ACP States on the one hand and the land-locked and island ACP States on the other are contained in Articles 15, 21, 46, 47, 53, 82, 90, 93, 106, 107, 112, 125, 129, 133, 135, 139, 141, 145, 152, 153 and Article 30 of Protocol 1.
3. In accordance with their needs and individual characteristics the ACP States referred to in the following three lists shall be eligible for the special measures referred to in this Article:
(a) least-developed ACP States
Benin
Chad
Botswana
Comoros