Chad
Somalia
Dahomey
Sudan
Ethiopia
Swaziland
the Gambia
Tanzania
Guinea
Togo
Guinea-Bissau
Tonga
Lesotho
Uganda
Malawi
Upper Volta
Mali
Western Samoa.
3. The list of ACP States in paragraph 2 may be amended by decision of the Council of Ministers:
- where a third State in a comparable economic situation accedes to this Convention;
- where the economic situation of an ACP State undergoes a radical and lasting change either so as to necessitate the application of special measures or so that this treatment is no longer warranted.
Article 49.
1. The following shall be eigible for financial and technical co-oper- ation:
(a) the ACP States;
(b) the regional or interstate bodies to which the ACP States belong and which are authorized by the said States;
(c) the joint bodies set up by the Community and the ACP States and authorized by the latter to attain certain specific objectives, notably in the field of industrial and trade co-operation.
2. Subject to the agreement of the ACP State or ACP States concerned, the following shall be eligible for such co-operation in respect of projects or programmes approved by the latter:
(a) local authorities and public or semi-public development agencies of the ACP States, in particular their development banks;
(b) private bodies working in the countries concerned for the economic and social development of the population of those ACP States;
(c) firms carrying out their activities, in accordance with industrial and business management methods, which are set up as companies or firms of an ACP State within the meaning of Article 63
(d) groups of producers that are nationals of the ACP States or like bodies, and, where no such groups or bodies exist, the producers themselves;
(e) for training purposes, scholarship holders and trainees.
Article 50.
1. There shall be close co-operation between the Community and the ACP States in implementing aid measures financed by the former. This co-operation shall be achieved through active participation by the ACP State or group of ACP States concerned in each of the various stages of a project: the aid programming, the submission and appraisal of projects, the preparation of financing decisions, execution of projects and final evaluation of the results, in accordance with the various procedures laid down in Articles 51 to 57.
2. As regards project financing for which the Bank is responsible, application of the principles defined in Articles 51 to 58 may be adapted, in concert with the ACP State or ACP States concerned, to take account of the nature of the operations financed and of the Bank's procedures under its Statute.
Article 51.
1. Community aid, which is complementary to the ACP States' own efforts, shall be integrated in the economic and social development plans and programmes of the said States so that projects undertaken with the financial support of the Community dovetail with the objectives and priorities set up by those States.
2. At the beginning of the period covered by this Convention, Community aid shall be programmed, in conjunction with each recipient State in such a way that the latter can obtain as clear an idea as possible of the aid, in particular as regards the amount and terms, it can expect during that period and especially of specific objectives which this aid may meet. This programme shall be drawn up on the basis of proposals made by each ACP State, in which it has fixed its objectives and priorities. Projects or programmes already identified on an indicative basis may be the subject of a provisional timetable as regards preparation.
3. The Community indicative aid programme for each ACP State shall be drawn up by mutual agreement by the competent bodies of the Community and those of the ACP State concerned. It shall then be the subject of an exchange of views, at the beginning of the period covered by this Convention, between the representatives of the Community and those of the ACP State concerned.
This exchange of views shall enable the ACP State to set out its development policy and priorities.
4. The aid programmes shall be sufficiently flexible to enable ac- count to be taken of changes occurring in the economic situation of the various ACP States, and any modifications of their initial priorities. Therefore, each programme may be reviewed whenever necessary during the period covered by this Convention.
5. These programmes shall not cover the exceptional aid referred to in Article 59 or the measures for stabilizing export earnings referred to in Tide II.
Article 52.
1. Preparation of the projects and programmes which come within the framework of the Community aid programme drawn up by mutual agreement shall be the responsibility of the ACP States concerned or of other beneficiaries approved by them. The Community may, where those States so request, provide technical assistance for drawing up the dossiers of projects or programmes.
2. Such dossiers shall be submitted to the Community as and when they are ready by the beneficiaries specified in Article 49 (1), or, with the express agreement of the ACP State or ACP States concerned, by those specified in Article 45 (2).
Article 53.
1. The Community shall appraise projects and programmes in close collaboration with the ACP States and any other beneficiaries. The technical, social, economic, trade, financial, organizational and management aspects of such projects or programmes shall be reviewed systematically.
2. The aim of appraisal is:
(a) to ensure that the projects and programmes stem from economic or social development plans or programmes of the ACP States;
(b) to assess, as far as possible by means of an economic evaluation, the effectiveness of each project or programme by setting the effects it is expected to produce against the resources to be invested in it. In each project the expected effects shall be the practical expression of a number of specific development objectives of the ACP State or ACP States concerned.
On this basis, appraisal shall ensure that, as far as possible, the measures selected constitute the most effective and profitable method of attaining these objectives, taking into account the various constraints on each ACP State;
(c) to verify that the conditions guaranteeing the successful conclu- sion and the viability of the projects or programmes are met, which involves:
- verifying that the projects as conceived are suitable for bringing about the effects sought and that the means to be used commensurate with the circumstances and resources of the ACP State or region concerned;
- and furthermore guaranteeing that the staff and other means, particularly financial, necessary for operating and maintaining the investments and for covering incidental project costs are actually available, Particular attention shall be paid here to the possibility of the project being managed by national personnel.
Article 54.
1. Financing proposals, which summarize the conclusions of the appraisal and are submitted to the Community's decision-making body, shall be drawn up in close collaboration between the competent departments of the Community and those of the ACP State or ACP States concerned.
The final version of each financing proposal shall be transmitted by the competent departments of the Community simultaneously to the Community and to the ACP States concerned.
2. All projects or programmes put forward officially in accordance with Article 52 by an ACP State or ACP States, whether or not selected by the competent departments of the Community, shall be brought to the attention of the Community body responsible for taking financing decisions.
3. Where the Community body responsible for delivering an opinion on projects fails to deliver a favourable opinion, the competent departments of the Community shall consult the representatives of the ACP State or ACP States concerned on further action to be taken, in particular on the advisability of submitting the dossier afresh, possibly in a modified form, to the relevant Community body.
Before that body gives its final opinion, the representatives of the ACP State or ACP States concerned may request a hearing by the representatives of the Community in order to be able to state their grounds for the project.
Should the final opinion delivered by that body not be favourable, the competent departments of the Community shall consult afresh with the representatives of the ACP State or ACP States concerned before deciding whether the project should be submitted as it stands to the Community's decision-making bodies or whether it should be withdrawn or modified.
Article 55.
The ACP States, or the other beneficiaries authorized by them, shall be responsible for the execution of projects financed by the Community.
Accordingly, they shall be responsible for negotiating and concluding works and supply contracts and technical co-operation contracts.
Article 56.
1. As regards operations financed by the Community, participation in tendering procedures and other procedures for the award of contracts shall be open on equal terms to all natural and legal persons of the Member States and ACP States.
2. Paragraph 1 shall be without prejudice to measures intended to assist construction firms or manufacturing firms of the ACP States concerned, or of another ACP State, to take part in the execution of works contracts or supply contracts.
3. Paragraph 1 does not mean that the funds paid over by the Com- munity must be used exclusively for the purchase of goods or for the remuneration of services in the Member States and in the ACP States.
Any participation by certain third countries in contracts financed by the Community must, however, be of an exceptional nature and be authorized case-by-case by the competent body of the Community, account being taken in particular of a desire to avoid excessive increases in the cost of projects attributable cither to the distances involved and transport difficulties or to the delivery dates.
Participation by third countries may also be authorized where the Community participates in the financing of regional or interregional co-operation schemes involving third countries and in the joint financing of projects with other providers of funds.
Article 57.
1. The effects and results of completed projects, and the physical state of the work carried out, shall be evaluated regularly and jointly by the competent departments of the Community and of the ACP State or ACP States concerned in order to ensure that the objectives set are attained under the best conditions.
Evaluations may also be made of projects in progress where this is warranted by their nature, importance or difficulty of execution.
2. The competent institutions of the Community and of the ACP States concerned shall, each for their respective parts, take the measures which evaluation shows to be necessary. The Council of Ministers shall be kept informed of such measures by the Commission and each ACP State for the purposes of Article 41.
Article 58.
1. The management and maintenance of work carried out within the context of financial and technical co-operation shall be the responsibility of the ACP States or other beneficiaries.
2. Exceptionally, and by way of derogation from Article 46 (2), in particular under the circumstances specified in Article 10 of Protocol No 2, supplementary aid may be provided temporarily and on a diminishing scale in order to ensure that full use is made of investments which are of special importance for the economic and social development of the ACP State concerned and the running of which temporarily constitutes a truly excessive burden for the ACP State or other beneficiaries.
Article 59.
1. Exceptional aid may be accorded to ACP States faced with serious difficulties resulting from natural disasters or comparable extraordinary circumstances.
2. For the purposes of financing the exceptional aid referred to in paragraph 1, a special appropriation shall be constituted within the Fund.
3. The special appropriation shall initially be fixed at 50 million units of account. At the end of each year of application of this Convention this appropriation shall be restored to its initial level.
The total amount of monies transferred from the Fund to the special appropriation during the period of application of the Convention may not exceed 150 million units of account.
Upon expiry of the Convention any monies transferred to the special appropriation which have not been committed for exceptional aid shall be returned to the Fund proper for financing other schemes falling within the field of application of financial and technical co-operation, unless the Council of Ministers decides otherwise.
In the event of the special appropriation being exhausted before the expiry of this Convention, the Community and the ACP States shall adopt, within the relevant joint bodies, appropriate measures to deal with the situations described in paragraph 1.
4. Exceptional aid shall be non-reimbursable. It shall be allocated on 4 case-by-case basis.
5. Exceptional aid shall help finance the most suitable means of remedying the serious difficulties referred to in paragraph 1.
These means may take the form of works, supplies or provision of services, or cash payments.
6. Exceptional 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 arrangements for allocating exceptional aid, for payments and for implementing the programmes shall be worked out under an emergency procedure, with account being taken of the provisions of Article 54.
Article 60.
The fiscal and customs arrangements applicable in the ACP States to contracts financed by the Community shall be adopted by a decision of the Council of Ministers at its first meeting following the date of entry into force of this Convention.
Article 61.
In the event of failure of an ACP State to ratify this Convention pursuant to Title VII, or denunciation of this Convention in accordance with that Title, the Contracting Parties shall be obliged to adjust the amounts of the financial aid provided for in this Convention.
Title V. Provisions Relating to Establishment, Services, Payments and Capital Movements
Chapter 1. Provisions Relating to Establishment and Services
Article 62.
As regards the arrangements that may be applied in matters of establishment and provision of services, the ACP States on the one hand and the Member States on the other shall treat nationals and companies or firms of Member States and nationals and companies or firms of the ACP States respectively on a non-discriminatory basis. However, if, for a given activity, an ACP State or a Member State is unable ta provide such treatment, the Member States or the ACP States, as the case may be, shalt not be bound to accord such treatment for this activity to the nationals and companies or firms of the State concerned.
Article 63.
For the purpose of this Convention "companies or firms" means companies or firms constituted under civil or commercial law, including co-operative societies and other legal persons governed by public or private law, save for those which are non-profit-making.
"Companies or firms of a Member State or of an ACP State" means companies or firms formed in accordance with the law of a Member State or ACP State and whose registered office, central ad- ministration or principal place of business is in a Member State or ACP State; however, a company or firm having only its registered office in a Member State or ACP State must be engaged in an activity which has an effective and continuous link with the economy of that Member State or ACP State.
Article 64.
At the request of the Community or of the ACP States, the Council of Ministers shall examine any problems raised by the application of Articles 62 and 63. It shall also formulate any relevant recommendations.
Chapter 2. Provisions Relating to Current Payments and Capital Movements
Article 65.
With regard to capital movements linked with investments and to current payments, the Contracting Parties shall refrain from taking action in the field of foreign exchange transactions which would be incompatible with their obligations under this Convention resulting from the provisions relating to trade in goods, to services, establishment and industrial co-operation. These obligations shall not, however, prevent the Contracting Parties from adopting the necessary protective measures, should this be justified by reasons relating to serious economic difficulties or severe balance of payments problems.
Article 66.
In respect of foreign exchange transactions linked with investments and current payments, the ACP States on the one hand and the Member States on the other shall avoid, as far as possible, taking discriminatory measures vis-a-vis each other or according more favourable treatment to third States, taking full account of the evolving nature of the international monetary system, the existence of specific monetary arrangements and balance of payments problems.
To the extent that such measures or treatment are unavoidable they will be maintained or introduced in accordance with international monetary rules and every effort will be made to minimize any adverse effects on the Parties concerned.
Article 67.
Throughout the duration of the loans and risk capital operations provided for in Article 42, each of the ACP States undertakes:
- to place at the disposal of the beneficiaries referred to in Article 49 the currency necessary for the payment of interest and commission on and amortization of loans and quasi-capital aid granted for the implementation of aid measures on their territory;
- to make available to the Bank the foreign exchange necessary for the transfer of all sums received by it in national currency which represent the net revenue and proceeds from transactions involving the acquisition by the Community of holdings in the capital of firms.
Article 68.
At the request of the Community or of the ACP States, the Council of Ministers shall examine any problems raised by the application of Articles 65 to 67. It shall also formulate any relevant recommendations.
Title VI. Institutions
Article 69.
The Institutions of this Convention are the Council of Ministers, assisted by the Committee of Ambassadors, and the Consultative Assembly.
Article 70.
1. The Council of Ministers shall be composed, on the one hand, of the members of the Council of the European Communities and of members of the Commission of the European Communities and, on the other hand, of a member of the Government of each of the ACP States.
2. Any member of the Council of Ministers unable to attend may be represented. The representative shall exercise all the rights of the accredited member.
3. The proceedings of the Council of Ministers shall be valid only if half the members of the Council of the European Communities, one member of the Commission and two thirds of the accredited members representing the Governments of the ACP States are present.
4. The Council of Ministers shall lay down its rules of procedure.
Article 71.
The office of President of the Council of Ministers shall be held alternately by a member of the Council of the European Communities and a member of the Government of an ACP State, the latter to be designated by the ACP States.
Article 72.
1. Meetings of the Council of Ministers shal] be called once a year by its President.
2. The Council of Ministers shall, in addition, meet whenever necessary, in accordance with the conditions laid down in its rules of procedure.
Article 73.
1. The Council of Ministers shall act by mutual agreement between the Community on the one hand and the ACP States on the other.
2. The Community on the one hand and the ACP States on the other shall each, by means of an internal protocol, determine the procedure for arriving at their respective positions.
Article 74.
1. The Council of Ministers shall define the broad outlines of the work to be undertaken in the context of the application of this Convention.
2. The Council of Ministers shall periodically review the results of the arrangements under this Convention and shall take such measures as may be necessary for the attainment of the objectives of this Convention.
3. Where provided for in this Convention, the Council of Ministers shall have the power to take decisions; such decisions shall be binding on the Contracting Parties, which must take such measures as are required to implement these decisions.
4. The Council of Ministers may likewise formulate such resolutions, recommendations or opinions as it may deem necessary to attain the common objectives and to ensure the smooth functioning of the arrangements of this Convention.
5. The Council of Ministers shall publish an annual report and such other information as it considers appropriate.
6. The Council of Ministers may make all the arrangements that are appropriate for ensuring the maintenance of effective contacts, consultations and co-operation between the economic and social sectors of the Member States and of the ACP States.
7. The Community or the ACP States may raise in the Council of Ministers any problems arising from the application of this Convention.
8. Where provided for in. this Convention, consultations shall take place, at the request of the Community or of the ACP States, within the Council of Ministers, in accordance with the conditions laid down in the rules of procedure.
9. The Council of Ministers may set up committees or groups and ad hoc working groups, to undertake such activities as it may determine.
10. At the request of one of the Contracting Parties, exchanges of view may take place on questions having direct repercussions on the matters covered by this Convention.
11. By agreement among the parties, exchanges of views may take place on other economic or technical questions which are of mutual interest.
Article 75.
The Council of Ministers may, where necessary, delegate to the Committee of Ambassadors any of its powers. In this event, the Committee of Ambassadors shall give its decisions in accordance with the conditions laid down in Article 73.
Article 76.
The Committee of Ambassadors shall be composed, on the one hand, of one representative of each Member State and one representative of the Commission and, on the other, of one representative of each ACP State.
Article 77.
1. The Committee of Ambassadors shall assist in the performance of its functions the Council of Ministers shall carry out any mandate entrusted to it by the Council of Ministers.
2. The Committee of Ambassadors shall exercise such other powers and perform such other duties as are assigned to it by the Council of Ministers.
3. The Committee of Ambassadors shall keep under review the functioning of this Convention and the development of the objectives as defined by the Council of Ministers.