Co-financing operations with European non-governmental development organisations (NGOs) in fields of interest to the developing countries
1995/0168(SYN)
OBJECTIVE: to establish the arrangements for co-financing operations with European NGOs in
fields of interest to the developing countries.
COMMUNITY MEASURE: Council Regulation (EC) 1658/98 on co-financing operations with
European non-governmental organisations (NGOs) in fields of interests to the developing countries.
SUBSTANCE: The Community co-finances with European NGOs operations to meet the basic needs
of disadvantaged people in developing countries. Priority is given to proposals for operations based
on an initiative by partners in developing countries. These operations, proposed by European NGOs
and conducted in cooperation with their partners in the developing countries, aim to alleviate poverty
and enhance the target group's quality of life and own development capacity.
The Community also co-finances operations aiming to:
- raise public awareness and information in Europe about development problems in the
developing countries,
- reinforce cooperation and coordination between NGOs from the Member States and between
them and the Community Institutions.
The agents of cooperation are NGOs constituted in a Member State in accordance with the laws of
that State, which have their headquarters there and the majority of whose funding originates in
Europe. Particular attention is to be paid to NGOs which have a large capacity to mobilise
development funding, who have good administrative and financial management capacities and
experience in this area. Operations to be implemented:
- with regard to development: essentially local, social and economic development in rural and urban
areas, human resources development through training and institutional support for local partners;
particular attention is to be given to operations connected with strengthening civil society (promoting
human rights and democracy), women and sustainable development and the protection of threatened
cultures (endangered indigenous cultures) and improving the rights and protection of children;
- with regard to public awareness: operations which highlight the interdependence of the Member
States and the developing countries, which seek to mobilise support for more equitable North-South
relations, encourage cooperation between NGOs and enable partners in the developing countries to
play an active part;
- with regard to coordination, support for the development of appropriate exchange and
communication networks.
Priority for co-financing is to be given to operations which will have a durable impact and will be
consistent with other actions of decentralised agents. Community co-financing can cover investment
spending and operational spending and any spending necessary for the smooth implementation of the
co-financed operations, including the administrative costs of NGOs. Variations in exchange rate may
also be taken into consideration. Aid will take a form of non-repayable grants or contributions to
working capital for micro credit projects. With regard to the decision-making procedure, the
Commission will be responsible for appraising and administering the co-financing of operations
covered by the regulation. It will be assisted by a committee composed of the representatives of the
Member States. In general, the decision as to whether an operation is to be supported should be taken
within six month of receipt of the application. If the decision is negative, reasons must be given. The
Community contribution shall not exceed 50% of the total cost or 75% of total contributions, except
in exceptional cases. In every case, the Community contribution must not exceed 85% of the total
financial contributions. Decisions on Community co-financing of projects exceeding ECU 2 million
will be subject to a commitology procedure (type IIb Committee). Every three months the
Commission must inform the Member States of the co-financing projects approved. An annual report
is forwarded to Parliament and the Council containing a summary of operations co-financed during
the past year and an evaluation of them and general guidelines for future operations. Regular
evaluations are envisaged to establish whether the objectives of the operations have been attained.
An overall evaluation is to be submitted three years after the regulation comes into force, with
proposals for amending it.
ENTRY INTO FORCE: 02/08/1998.
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