2004 discharge: European Agency for Reconstruction

PURPOSE : presentation of the final accounts of the European Agency for Reconstruction (EAR) for the financial year 2004.

CONTENT : this document published in the Official Journal of the EU sets out a detailed account of the implementation of the 2004 budget, including the revenue and expenditure and the balance sheet for the year concerned.

According to this document, the final budget amounted to EUR 374,6 millionincluding an EU grant of 96,7 %.

In 2004, the Agency’s aimed is to manage the principal aid programmes in Serbia and Montenegro (Republic of Serbia, Kosovo and Republic of Montenegro) and in the former Yugoslav Republic of Macedonia (FYROM). Operational centres are based in Belgrade, Pristina, Podgorica and Skopje with a high level of management autonomy while the general headquarters are based in Thessaloniki (Greece).

The principal operational activities are as follows :

In KOSOVO:

- start-up grants, loans, training and business advice to small businesses;

- legal assistance to vulnerable persons;

- loans provided from the EAR credit schemes;

- substantial and complex repairs to the fire damaged thermal power plant Kosovo B;

- rehabilitation of the ‘Sunny Hill’ district heating sub-station in Pristina;

- six bridges reopened between Pristina and the border crossing with FYROM.

In SERBIA:

- draft laws in Public Administration Reform;

- training programmes for special police bodies;

- rehabilitation programme for hospitals;

- new jobs created due to loans from the Revolving Credit Fund;

- training support to enterprises;

- overhaul of thermal power plants;

- regional training centres for adults; pilot schools rehabilitated and supplied with IT equipment;

- works on the Sloboda bridge and the Horgos border crossing point with Hungary.

In MONTENEGRO:

- specialised training to border police and to civil servants;

- central IT database of the Ministry of Interior;

- Agency for Human Resources Management, regional centres for vocational education and training;

- veterinary laboratory;

- new Roads Directorate and transport laws;

- master plans for wastewater and solid waste;

- Electric Utility unbundling/restructuring, energy efficiency strategy.

In the FYROM:

- 90 % of Internally Displaced Persons returned to their pre-conflict homes;

- training of mainly ethnic Albanians to become public servants;

- new jobs created and jobs preserved due to loans to SMEs from the Revolving Credit Fund; Agency for Entrepreneurship Promotion and SME Observatory set up;

- three new institutes developed and their staff trained.

The total operating expenditure amounted to EUR 268 965. A deficit, from operating activities, of EUR 53 398 000 was recorded. In total, 2004 ended with a negative economic result which amounted to EUR 53 929 000.   

As regards the staffing policy, the EAR officially set out 114 posts in its establishment plan. 88 are currently occupied + 173 other posts (local staff) giving a total of 261 posts (against 267 in 2003) assigned to administrative and operational tasks. Staff expenditure represented EUR 17 575 000.