1. For the ACP States listed in Article 155 (3) (b) and (c):
(a) the percentage fixed in Article 29 shall be 2 %;
(b) the percentage fixed in Article 37 shall be 2 %.
2. In the application of Article 24 the special difficulties of the above ACP States shall be taken into account.
Chapter 2. Special Undertakings on Sugar
Article 48.
1. In accordance with Article25 of the ACP-EEC Convention of Lomé and with Protocol 3 annexed to that Convention, the Community has undertaken for an indefinite period, notwithstanding the other provisions of this Convention, to purchase and import, at guaranteed prices, specific quantities of cane sugar, raw or white, which originates in the ACP States producing and exporting cane sugar and which those States have undertaken to deliver to it.
2. The conditions for the implementation of Article 25 of the ACP-EEC Convention of Lomé have been laid down by Protocol 3 referred to in paragraph 1. The text of this Protocol is annexed to this Convention as Protocol 7.
3. The provisions of Article 12 of this Convention shall not apply within the framework of the said Protocol.
4. For the purpose of Article 8 of the said Protocol, the institutions established by the Convention may be used during the period of application of this Convention.
5. The provisions of Article 8 (2) of the said Protocol shall apply in the event of this Convention ceasing to be operative.
6. The declarations contained in Annexes XIII, XXI and XXII of the Final Act of the ACP-EEC Convention of Lomé are reaffirmed and their provisions shall continue to apply. These declarations are annexed as such to this Convention.
7. This Article and the Protocol 3 referred to in paragraph 1 shall not apply to relations between the ACP States and the French overseas departments.
Title III. MINERAL PRODUCTS
Chapter 1. Project and Programme Aid
Article 49.
With a view to contributing towards the creation of a more solid basis for the development of the ACP States whose economies are largely dependent on the mining sectors and in particular towards helping them cope with a decline in their capacity to export mining products to the Community and the corresponding decline in their export earnings, a system shall be established to assist these States in their efforts to remedy the harmful effects on their income of serious temporary disruptions affecting those mining sectors and beyond the control of the ACP States concerned.
Article 50.
1. The system laid down in Article 49 shall apply to the following products:
- copper, including associated production of cobalt,
- phosphates,
- manganese,
- bauxite and alumina,
- tin,
- roasted iron pyrites and iron ore, whether or not in agglomerate form (including pellets), excluding, during the period mentioned in Article 25 (2), the cases referred to in that Article.
2. If, not sooner than 12 months following the entry into force of this Convention, one or more products not contained in the above list, but upon which the economies of one or more ACP States depend to a considerable extent, are affected by serious disturbance, the Council of Ministers shall decide, not later than six months after the presentation of a request by the ACP State or States concerned, whether or not to include the said product or products in the list.
Article 51.
1. For the purpose specified in Article 49, and for the period of application of this Convention, a special financing facility shall be set up to which the Community shall allocate an overall amount of 280 million EUA to cover all its commitments under this system.
(a) This amount shall be managed by the Commission.
(b) This overall amount shall be divided into a number of equal annual instalments corresponding to the number of years of application. Each year, except the last, the Council of Ministers, on the basis of a report submitted to it by the Commission, may authorize, where required, a maximum of 50 % of the following year's instalment to be used in advance.
(c) Whatever balance remains at the end of each year of application of this Convention, except the last, shall be carried over automatically to the following year.
(d) If the resources available for any year of application are insufficient, the amounts due shall be reduced accordingly.
(e) The resources available for each year of application shall be made up of the following elements:
- the annual instalment, reduced by any amounts used under (b) above,
- the sums carried over under (c) above.
2. Before the expiry of the period referred to in Article 188, the Council of Ministers shali decide on the allocation of any balances remaining from the overall amount referred to in this Article.
Article 52.
1. Possible recourse to the means of financing available under the special facility provided for in Article 51 shall be open to the countries eligible under Article 53 when, for a product covered by Article 50 and exported to the Community, a substantial fall is recorded, or can be expected over the following months, in their capacity to produce, or to export, or in their export earnings to such an extent as to seriously affect the development policy of the ACP State concerned by seriously compromising the profitability of an otherwise viable and economic line of production, thus preventing it from renewing at a normal rate or maintaining the production plant or export capacity.
2. The possible recourse referred to above shall also be available when a substantial fall in the production or export capacity is experienced, or is foreseen, owing to accidents and serious technical mishaps or grave political events, whether internal or external.
3. A substantial fall in production or export capacity shall be taken to mean 10 %.
Article 53.
1. An ACP State which, during the preceding four years, has, as a general rule, derived at least 15 % of its export earnings from a product covered by Article 50 may apply for financial aid from the resources allocated to the special financing facility if the conditions laid down in Article $2 are fulfilled.
2. However, for the States listed in Article 155 (3), the figure stipulated in the first paragraph shall be 10 %.
3. The application for aid shall be made to the Commission, which shall examine it in conjunction with the ACP State concerned. The fact that the conditions have been fulfilled shall be established by common accord between the Community and the ACP State. Notification thereof by the Commission to the ACP State shall entitle the latter to Community aid from the special financing facility.
Article 54.
1. The aid referred to in Article $3 shall be directed to the objectives defined in Article 49.
2. The amount of this aid to finance projects or programmes shall be determined by the Commission in the light of the funds available under the special financing facility, the nature of the projects or programmes proposed by the ACP States concerned and the possibilities for co-financing. In- determining the amount, account shall be taken of the scale of the reduction in production or export capacity and of the losses of earnings suffered by the ACP States and corresponding to those identified in Article 52.
3. Under no circumstances may a single ACP State be eligible for more than 50 % of the funds available under an annual instalment.
4. The procedures applicable to assistance in the above circumstances and the implementing arrangements shall be as provided for under Title VI; they shall take account of the need for rapid implementation of the aid.
Article 55.
1. To permit the implementation of precautionary measures to halt deterioration of production plant during the appraisal or implementation of these projects or programmes, the Community may grant an advance to any ACP State which so requests. This possibility shall not exclude recourse by the ACP State concerned to the emergency aid provided for in Article 137.
2. Since an advance is granted as a means of pre-financing projects or programmes, which it precedes or to which it is preparatory, account shall be taken of the importance and nature of those projects or programmes when the amount of advance is fixed.
3. The advance shall take the form of supplies or of the provision of services, or of cash. payments if this arrangement is considered more appropriate.
4. It shall be incorporated in the amount earmarked for Community operations in the form of projects or programmes at the time when the financing agreement relating to such operations is signed.
Article 56.
Aid granted from the special financing facility shall be reimbursed on the same terms and conditions as special loans, account being taken of the provisions adopted in favour of the States listed in Article 155 (3).
Chapter 2. Development of the Mining and Energy Potential of the ACP States
Article 57.
The Community shall be prepared to give its technical and financial assistance to help with the exploitation of the ACP States' mining and energy potential in accordance with the procedures peculiar to each of the instruments at its disposal and according to the provisions of this Convention.
Article 58.
At the request of one or more ACP States the Community will carry out technical assistance activities to strengthen their scientific and technical capacity in the fields of geology and mining in order that they may derive greater benefit from available know-how and direct their research and exploration programmes accordingly.
Where appropriate, the Community will also give its technical and financial assistance to the establishment of national or regional exploration funds in the ACP States.
In the sphere of research and investment preparatory to the launching of mining and energy projects, the Community may give assistance in the form of risk capital, possibly in conjunction with contributions of capital from the ACP States concerned and other sources of financing in accordance with the procedures laid down in Article 105.
Article 59.
The European Investment Bank, hereinafter called "the Bank" may, in accordance with its Statute, commit its own resources on a case-by-case basis beyond the amount fixed in Article 95 in mining investment projects and energy investment projects recognized by the ACP State concerned and by the Community as being of mutual interest.
Title IV. INVESTMENTS
Article 60.
The Community and the Member States shall endeavour to implement measures to encourage their economic operators to participate in the industrial development efforts of the ACP States, and shall encourage such economic operators to comply with the development objectives and priorities and the appropriate laws and regulations of the ACP States.
Article 61.
Each ACP State shall take such steps as are necessary to promote effective cooperation within the framework of this Title with the Community and the Member States or with economic operators or nationals of Member States who comply with the development objectives and priorities of the host ACP State.
Article 62.
Each ACP State shall endeavour to give as clear an indication as possible of its priority areas for industrial cooperation and the form it would like such cooperation to take.
Article 63.
The Contracting Parties recognize the importance of investment for the promotion of their development cooperation and acknowledge in this respect the need to take such steps as would promote such investment in areas considered mutually desirable.
Article 64.
The Contracting Parties agree that the treatment of investment coming from Member States to the ACP States shall be governed by the provisions of the joint declaration contained in Annex IX of the Final Act.
Title V. INDUSTRIAL COOPERATION
Article 65.
The Community and the ACP States, acknowledging the pressing need to promote the industrial development of the ACP States, agree to take all measures necessary to bring about effective industrial cooperation.
Article 66.
Industrial cooperation between the Community and the ACP States shall have the following objectives:
(a) to promote new relations of dynamic complementarity in the industrial field between the Community and the ACP States, notably by establishing new industrial and trade links between the industries of the Community and those of. the ACP States;
(b) to promote development and diversification of all types of industry in the ACP States and to foster in this respect cooperation at both regional and inter-regional levels;
(c) to promote the establishment of integral industries capable of creating links between various industrial sectors in the ACP States in order to provide those States with the basis on which the build-up of their technology will principally rely;
(d) to encourage the complementarity between industry and other sectors of the economy, in particular agriculture, by developing agro-allied industries in order to slow down the rural exodus, stimulate food and other production activities as well as to promote the establishment of further natural resource-based industries;
(e) to facilitate the transfer of technology and to promote the adaptation of such technology to the specific conditions and needs of the ACP States, and to help the ACP States to identify, evaluate and select technologies required for their development and to develop their efforts to increase their capacity in applied research for adaptationsof technology, and for training in industrial skills at all levels;
(f) to foster the participation of nationals of ACP States in all the types of industry that are being developed in their countries;
(g) to contribute as far as possible to the creation of jobs for nationals of the ACP States, to the supply of national and external markets and to the procurement of foreign exchange earnings for those States
(h) to facilitate the overall industrial development of the ACP States, in particular their production of manufactured goods, by taking due account of their specific needs in the formulation of policies designed to adjust the industrial structures of the Community to changes occurring at the world level;
(i) to encourage the establishment in the ACP States of joint ACP-EEC industrial ventures;
(j) to encourage and promote the establishment and reinforcement of industrial, business and trade associations in the ACP States which would contribute to the full utilization of the internal resources of those States with a view to developing their national industries;
(k) to assist in the establishment and operation of institutions in the ACP States for the provision of regulatory and advisory services to industry;
(l) to strengthen the existing financial institutions and bring about conditions favourable to capital borrowing for the stimulation of the growth and development of industries in ACP States, including the promotion of the basic rural small- and medium-scale and labour-intensive industries.
Article 67.
In order to attain the objectives set out in Article 66 the Community shall help to carry out, by all the means provided for in the Convention, programmes, projects and schemes submitted to it on the initiative or with the agreement of the ACP States in the fields of industrial training, small- and medium-sized industries, local processing of ACP raw materials, technology cooperation, industrial infrastructures, trade promotion, energy cooperation and industrial information and promotion.
Article 68.
The Community shall provide by all the means available under financial and technical cooperation necessary assistance in the field of industrial training including that related to industrial investments, in particular of the Community and its Member States with a view to enabling ACP States to acquire, develop and adapt technological skills that are essential to their industrial growth and to the improvement of the quality of life of their peoples.
To this end the Community shall, on the basis of requests of ACP States, provide effective assistance in the evaluation of needs and the execution of appropriate schemes such as:
(a) the posting of nationals of ACP States in technical institutions and other appropriate institutes of higher learning;
(b) the setting-up and operation at national or regional level of ACP training and research institutes or centres;
(c) the establishment and implementation of programmes involving specialized industrial training for ACP nationals at all levels and the organization of practical training courses and attachments in undertakings and industries both in the Community and in the ACP States;
(d) the establishment and promotion of activities aimed at the consolidation of appropriate indigenous technologies and the acquisition of relevant foreign technologies, in particular those of other developing countries;
(e) the promotion of exchange and other forms of cooperation between universities and specialized institutes in the Community and in the ACP States.
Article 69.
The Community shall contribute to the establishment and development of all types of small- and medium-sized industries identified by the ACP States as important in terms of their development objectives. through financial and technical cooperation schemes adapted to the specific needs of such industries in these States and through encouragement, by appropriate incentives, of the transfer of relevant resources from Community private undertakings inter alia through joint ventures. between small- and medium-sized industries of the Community and of the ACP States. These schemes shall cover inter alia:
1. the evaluation of the development potential of the small- and medium-sized industries sector;
2. the setting-up and strengthening of information, promotion, advisory, supervisory and credit institutions as well as facilities for the promotion of external and internal marketing;
3. the creation of appropriate infrastructure and industrial estates;
4. the provisions of basic and advanced training;
5. the setting-up of adequate structures aimed at appropriate technological transfer, adaptation and innovation;
6. the identification of possibilities for subcontracting and facilitating the implementation thereof;
7. the financing of schemes for small- and medium-sized industries.
Article 70.
In the framework of overall cooperation with respect to industrial development, special emphasis will be placed on the domestic processing of ACP raw materials with a view to achieving a larger and equitable share of processed raw materials in both production and exports of the ACP States. In this context, account will be taken, where appropriate, of specific sectoral requirements, with adequate attention being paid to the food processing sector. The Community will contribute through the various means of financial and technical cooperation to:
1. the promotion, development and financing of processing industries in the ACP States;
2. feasibility studies;
3. the evaluation of processing possibilities and the provision of information on processing technologies;
4. the promotion within the Community and other markets of the exports of ACP processed products.
Article 71.
With a view to assisting the ACP States to strengthen their indigenous capacity for scientific and technological development and to facilitating the acquisition, transfer and adaptation of technology on terms that will seek to bring about the greatest possible benefits and minimize costs, the Community, through the instruments of financial and technical cooperation is prepared inter alia to contribute to:
(a) the establishment and strengthening of industry- related scientific and technical infrastructures in the ACP States;
(b) the definition and implementation of research and development programmes;
(c) the identification and creation of possibilities of collaboration among research institutes, institutions of higher learning and undertakings of ACP States, the Community, the Member States and other countries;
(d) the identification, evaluation and acquisition of technology including the negotiation on favourable terms and conditions of foreign technology, patents and other industrial property, in particular through financing and/or through other suitable arrangements with firms and institutions within the Community;
(e) the provision of advisory services to ACP States for the preparation of regulations governing the transfer of technology and for the supply of available information, in particular on the terms and conditions of technology contracts, the types and sources of technology, and the experience of ACP States and other countries with the use of certain technologies;
(f) the promotion of technology cooperation between ACP States and between them and other developing countries in order to make best use of any particularly appropriate scientific and technical facilities those States may possess.
Article 72.
The Community shall contribute by all the means available under financial and technical cooperation to the setting-up and the extension in the ACP States of the infrastructure necessary for industrial development, particularly in the fields of transport and communications, energy, research and adaptation of technology, industrial training and the location of industries.
Article 73.
1. The Community shall contribute to the setting-up and the extension in the ACP States of undertakings in particular in the following fields:
(a) integral industries capable of creating linkages between the different sectors of the economy;
(b) industries processing the ACP State's natural resources; :
(c) industries linked to the development of agriculture and the promotion of agricultural produce;
(d) any other line of production which may increase value added locally, have a favourable effect on employment or the trade balance, facilitate the diversification or regional balance of industry or foster industrial or inter-regional cooperation.
2. Community financing shall take the form, as a matter of priority, of loans from the Bank and risk capital, which are the specific financing methods for industrial undertakings. The methods for employment of risk capital are defined in Title VI with the purpose of their adaptation to the particular difficulties inherent in the financing of industrial undertakings in the ACP States.
Article 74.
In order to enable the ACP States to obtain full benefit from the trade arrangements and other provisions of this Convention, trade promotion schemes shall be carried out to encourage the marketing of industrial products of ACP States both in Community and in other external markets, and also in order to stimulate and develop trade in industrial products among the ACP States, in accordance with the provisions of Article 93.
Article 75.
Programmes, projects or schemes undertaken in the field of industrial cooperation and involving Community financing shall be implemented in accordance with Title VII, taking into account the particular characteristics of operations in the industrial sector.
Article 76.
1. The Community and the ACP States recognize the mutual benefits of cooperation in the field of energy. With a view to developing the conventional and non-conventional energy potential and the self-sufficiency of the ACP States, the Community will assist inter alia in the following areas:
(a) preparation of inventories on energy resources and demand, adequate attention being paid to non-commercial energy demand;
(b) implementation of alternative energy strategies in programmes and projects that will take special account of the experience of the ACP States and cover inter alia wind, solar, geothermal and hydro-energy sources;
(c) development of the investment potential for the exploration and development of national and regional energy sources as well as the development of sites of exceptional energy production enabling the establishment of energy-intensive industry;
(d) strengthening of the management and control of the ACP States of their energy resources in terms of their development objectives by all the means provided for in this Convention;
(e) establishment of a rural energy programme with emphasis on rural energy technologies and energy planning that meet basic needs;
(f) promotion of research, adaptation and dissemination of appropriate technology as well as the training needed to meet energy-related manpower needs;
(g) production in the ACP States of equipment for the production and distribution of energy as well as the application of energy-saving techniques;
(h) implementation of measures that will minimize the negative impact of energy production on the environment as well as promote environmentally positive projects;
(i) conservation of existing and future energy resources of the ACP States, whether conventional or non-conventional.