title: Programme européen pour la reconstruction et le développement en Afrique du Sud (règlement n° 2259/96 du Conseil) - Rapport annuel (années 1996-1997)

eurovoc_concepts:
EU programme
South Africa
activity report
cooperation policy
development aid

text: COMMISSION DES COMMUNAUTES EUROPEENNES Bruxelles, le 03. 09. 1998 COM(1998) 502 final PROGRAMME EUROPEEN POUR LA RECONSTRUCTION ET LE DÉVELOPPEMENT EN AFRIQUE DU SUD (règlement n° 2259/96 du Conseil) RAPPORT ANNUEL (années 1996-1997) (présenté par la Commission) INTRODUCTION Le règlement n° 2259/96 du Conseil du 22 novembre 1996 établit la base juridique de la coopération au développement avec l'Afrique du Sud. Son article 9 prévoit que la Commission soumet au Parlement européen et au Conseil un rapport annuel sur la mise en oeuvre de ce règlement. Le présent document est le premier rapport établi en application de l'article 9; il couvre les exercices 1996 et 1997. La dotation budgétaire allouée au PERD s'est élevée à 130 millions d'écus en 1996 et à 127,5 millions d'écus en 1997. 1. HISTORIQUE DU PERD Dès l'exercice 1986, l'autorité budgétaire a créé une ligne (B7-5070) destinée à appuyer les actions de développement mises en oeuvre en Afrique du Sud. Cette dotation, ainsi que celles des années suivantes, a servi à financer le Programme spécial en faveur de l'Afrique du Sud. Ce programme visait principalement la société civile (jusqu'aux élections démocratiques de 1994, la CE n'entretenait pas de relations avec le gouvernement sud-africain) et portait $. l'origine essentiellement sur la lutte contre l'apartheid, mais il a progressivement accordé une attention de plus en plus grande aux problèmes du développement. Le programme spécial a appuyé 744 projets, pour un montant total de 443 millions d'écus. Depuis les élections démocratiques qui se sont tenues en avril 1994, la coopération entre l'UE et l'Afrique du sud a évolué vers une approche du développement plus traditionnelle, le nouveau gouvernement prenant une part de plus en plus active au programme européen pour la reconstruction et le développement (PERD), qui a pris la suite du programme spécial en 1995. • Dès avril 1994, le Conseil a exprimé son soutien à l'intensification de la coopération avec l'Afrique du Sud en concentrant l'aide communautaire dans des domaines d'activités susceptibles d'améliorer les conditions de vie de la population, et en particulier de ses couches les plus défavorisées. Cette approche était cohérente avec le programme de développement présenté par le nouveau gouvernement (programme pour la reconstruction et le développement - PRD). Celui-ci, toujours en cours, a connu des problèmes de mise en oeuvre et depuis 1996, il est poursuivi parallèlement à une politique macro-économique plus globale adoptée par le gouvernement et baptisée GEAR (Growth Employment and Redistribution). Cette politique insiste davantage sur la croissance (le principal facteur limitant le soutien budgétaire aux actions du PRD) et sur le rôle du secteur privé. liées au Indépendamment de développement en Afrique du Sud ont fait l'objet d'une restructuration et d'une réorganisation et la programmation a été renforcée (voir le chapitre 3). l'évolution politique, depuis 1996, les activités - 2- Les relations entre l'UE et l'Afrique du Sud ont également évolué, avec l'adhésion du pays à la convention de Lomé, même s'il ne s'agit que d'une participation limitée à Lomé IV bis, qui ne deviendra effective qu'en 1998. Des négociations bilatérales sont en cours et l'accord qui devrait en résulter fournira un cadre contractuel qui permettra de développer la coopération en matière de commerce et de développement entre l'UE et l'Afrique du Sud. L'Afrique du Sud a vocation à devenir un des principaux partenaires au développement de l'UE, en Afrique et en particulier en Afrique australe. Cependant, le caractère dual de l'économie et de la société sud-africaine (au sein desquelles on trouve des secteurs très, avancés et des poches de richesse) et la consolidation progressive de la transition socio- économique amorcée par le gouvernement issu des élections font de ce pays un partenaire particulier, original, doté de caractéristiques atypiques par rapport à celles des autres États ACP. 2. LE PERD ET SES PRIORITES Les priorités du PERD sont fixées par sa base juridique. L'article premier de celle-ci prévoit que la Communauté apporte prioritairement son soutien aux couches les plus défavorisées de la population. L'article 2 établit la liste des domaines concernés par le PERD (démocratisation et droits de l'homme, éducation et formation, santé, développement rural, développement urbain et logement social, soutien au secteur privé, et en particulier aux petites et moyennes de entreprises, l'environnement). régionale, protection institutionnel, renforcement coopération Les actions financées par le PERD doivent clairement refléter gouvernement (le PRD et la politique GEAR). les priorités du 3. PROGRAMMATION DU PERD L'article 6 de la base juridique (règlement n° 2259/96 du Conseil) prévoit l'établissement de programmes indicatifs pluriannuels (PIP) définissant un cadre et une stratégie pour les actions de coopération financées par l'UE en Afrique du Sud. Une étude stratégique a été présentée par la Commission européenne aux Éfats membres (comité Afrique du Sud) et examinée en janvier 1996. Sur cette base, la Commission a élaboré avec le gouvernement sud-africain un premier programme indicatif pluriannuel (PIP) couvrant la période 1997-1999; ce document a été signé en mai 1997 (voir l'annexe VII). Ce PIP respecte les dispositions de la base juridique en ce qui concerne les domaines de concentration de l'aide (soutien aux couches les plus défavorisées de la population sud- africaine) et les domaines éligibles à l'aide (énumérés à l'article 2 du règlement). Les principaux domaines de concentration définis dans le PIP sont : 3- les services sociaux de base (santé, éducation et formation, eau et assainissement) (50 à 60 % du PIP), le soutien au secteur privé (essentiellement à la création d'emplois et aux petites et moyennes entreprises) (15 à 20 % du PIP), la bonne gestion des affaires publiques et la démocratisation (15 à 20 % du PIP) et la coopération régionale (+/- 5 % du PIP). Le développement des ressources humaines, les questions d'égalité entre les hommes et les femmes et la protection de l'environnement ont été retenus comme thèmes horizontaux. L'enveloppe financière indicative annuelle s'élève en moyenne à 125 millions d'écus pour la période allant jusqu'à la fin de 1999. La CE et le gouvernement sud-africain ont reconnu le rôle primordial joué dans le développement par les partenaires de coopération décentralisés (les autorités locales, les ONG, les syndicats, les universités, les organismes privés à but non-lucratif, etc. ) et il a été convenu que 25 % au moins des ressources du PERD seraient allouées à ces partenaires et directement mis en oeuvre par eux (voir le chapitre 6). 4. MISE EN OEUVRE DU PERD En 1996 et 1997, respectivement 15 et 14 programmes ont été approuvés par le comité Afrique du Sud (voir le chapitre 7) et signés. Le tableau ci-dessous indique la proportion des ressources allouée aux différents domaines de concentration et la répartition entre les partenaires de mise en oeuvre (gouvernement ou partenaire décentralisé). Tableau 1 - Le PERD en 1996 et 1997 DOMAINES Services sociaux de base Secteur privé 1996 1997 5 2% 6 9% 9% 1 3% (1) Bonne gestion et démocratisa -tion 3 8% 15% PARTENAIRES DE MISE EN OEUVRE Gouverne- ment Partenaire decentralise Cooperation regionale et autres 1% 3% 8 8% 8 3% 12% 17% (1) Le programme de développement des compétences professionnelles (Labour Market Skills Development Programme), d'un montant de 46 millions d'écus, est pris en compte dans la partie "Services sociaux de base" mais il est également étroitement lié au domaine d'action concernant le "Secteur privé". L'annexe II fournit une liste des programmes et des projets approuvés en 1996 et 1997 dans le cadre du PERD ainsi que les engagements et les paiements correspondants. L'annexe III fournit des informations sur l'engagement global et sur le rythme des paiements. - 4- L'annexe IV fournit un rapport détaillé sur programmes en cours. l'état d'avancement des principaux L'annexe V présente des informations détaillées sur les marchés attribués dans le cadre des programmes de 1996 et 1997. Des gros efforts ont été entrepris pour mieux concentrer l'utilisation des ressources du PERD sur un petit nombre de programmes ayant une incidence significative. Cette approche a également été rendue nécessaire par les contraintes de gestion de l'aide, compte tenu de ressources en personnel très limitées (DG VIII et délégation à Pretoria) qui ont dû faire face à une charge de travail administratif considérable et qu'il convient de renforcer. Les premières années de mise en oeuvre du PERD ont eu pour caractéristique constante un faible taux de décaissement; 30 millions d'écus seulement ont été versés en 1996. Les obstacles ont été identifiés à plusieurs niveaux (capacité d'absorption du gouvernement sud-africain insuffisante, manque de procédures et de manuels normalisés, absence de certains instruments administratifs, etc. ). Des mesures correctrices ont été prises et les paiements ont augmenté, 59 millions d'écus ayant été versés en 1997 (dont 13,6 millions au titre des projets de 1996); il apparaît néanmoins que des retards importants sont encore provoqués par : l'insuffisance des capacités, le manque de connaissances et d'expérience, les procédures de mise en concurrence, les remaniements de personnel, le délai extrêmement financement, l'absence de procédures permettant l'exécution locale des paiements. long nécessaire pour finaliser les conventions de 5. SUIVI ET EVALUATION Un système complet de suivi et d'évaluation a été mis en place. Des consultations annuelles sont organisées en début d'année en partenariat avec le gouvernement et les partenaires de coopération décentralisés afin d'évaluer l'avancement des projets et d'examiner les problèmes rencontrés. Ces consultations nécessitent un important travail de préparation et fournissent l'occasion : • d'examiner en détail la mise en oeuvre de chacun des projets en cours, • de passer en revue et d'examiner les causes de retard, les difficultés et les problèmes rencontrés, etc. , • d'établir un calendrier pour la programmation de l'année à venir. Le résultat de ces consultations est consigné par écrit sous la forme d'un "procès-verbal agréé" signé par les deux parties, qui constitue un document de référence officiel pour l'évaluation de la mise en oeuvre du PERD. Six mois plus tard a lieu un exercice similaire ("évaluation à mi-parcours"). 5- Les consultations annuelles ont été tenues en avril 1997 (voir l'annexe VI) et l'évaluation à mi-parcours a eu lieu en novembre 1997. L'évaluation des programmes (à mi-parcours et finale) est souvent prévue dans les conventions de financement. Les programmes de 1996 et de 1997 venant tout juste de débuter, ces évaluations n'ont pas encore été lancées. 6. LES PARTENAIRES DE COOPERATION Comme il a été indiqué ci-dessus, outre le soutien au gouvernement (central ou provincial), 25 % au moins des ressources programmables sont mises en oeuvre par l'intermédiaire d'agents de coopération décentralisés. En ce qui concerne les ONG, la Commission européenne encourage activement la constitution de groupements, de réseaux ou d'autres associations en partenariat afin de parvenir à une meilleure intégration sectorielle et de faciliter le dialogue avec le secteur public. Dans le cadre du programme spécial, la stratégie de la Commission consistait à financer des ONG "channels" opérant par l'intermédiaire d'un large réseau de plus petites organisations. Les channels utilisés étaient le Kagiso Trust, le Conseil des églises sud- africain (South African Council of Churches, SACC) et la Conférence des évoques catholiques d'Afrique du Sud (Southern African Catholic Bishops' Conference, SACBC). En 1996 et 1997, il a été décidé de financer plutôt des ONG spécialisées, capables de mettre en oeuvre des programmes de développement importants dans les domaines de concentration du PIP, en coordination avec les politiques gouvernementales. Au vu du nombre extrêmement élevé de candidatures d'ONG locales et de petite taille reçues par la Commission européenne, il est urgent d'instaurer ou de financer des intermédiaires chargés de filtrer, d'évaluer et par la suite de gérer ces propositions émanant d'ONG. Ce problème devra être prioritairement traité en 1998. 7. COORDINATION AVEC LES ETATS MEMBRES L'article 4, paragraphe 6, l'article 7, paragraphes 2 et 3, et les articles 8 et 9 de la base juridique prévoient différents niveaux d'échange d'informations et de coordination entre les États membres. Des réunions sont périodiquement organisées à Pretoria par la présidence et par la délégation de la Commission européenne pour échanger des informations sur le PERD et les activités financées par les États membres. Les nouvelles initiatives dans le cadre du PERD (études, projets de propositions de financement, etc. ) sont systématiquement présentées aux représentations locales des États membres. Après ces consultations locales, les propositions de financement sont transmises au comité Afrique du Sud au sein duquel les États membres donnent leur avis. Ce comité s'est réuni 4 fois en 1996 et 4 fois en 1997 pour examiner et approuver les programmes de 1996 et 1997. Des réunions locales portant sur des questions sectorielles sont également organisées afin de coordonner les politiques correspondantes de la CE avec celles des États membres. Par ailleurs, l'évaluation des actions effectuée à l'occasion des consultations annuelles (voir le chapitre 5) est examinée avec les États membres, qui reçoivent une copie du "procès- verbal agréé", conformément à l'article 9. 8. DIVERS En 1996 et 1997, la délégation a reçu la visite de plusieurs représentants des institutions européennes impliquées dans la coopération et le développement, notamment la Cour des Comptes, de plusieurs parlementaires européens, dont la délégation du Parlement européen chargée des relations avec l'Afrique du Sud, de représentants de la Banque européenne d'investissement, etc. Un effort particulier a été entrepris pour s'assurer que des informations suffisantes sur le PERD et ses résultats sont disponibles, principalement en Afrique du Sud mais aussi en Europe. Un programme ad hoc (Information et communication sur le PERD) a été lancé fin 1997. 9. CONCLUSIONS ET PERSPECTIVES L'Afrique du Sud est le pays avec lequel la Commission européenne mène le plus vaste programme de coopération. Les activités de coopération avec l'Afrique du Sud ont traversé une période de réorientation et de restructuration, importantes entre 1994 et 1997. La Commission européenne et le gouvernement sud-africain se sont désormais lancés dans un processus de rationalisation (aspects de procédure, par exemple; intégration dans la Convention de Lomé) et de consolidation. Cette situation, de même que l'extrême complexité de l'organisation institutionnelle et sociale en Afrique du Sud, pèse lourdement sur tous les services de la Commission concernés et nécessite un renforcement permanent des capacités à tous les niveaux, notamment en ce qui concerne la délégation. Dans ce contexte, il est important de lancer une réflexion sur "l'après 1999" qui verra certainement l'Afrique du Sud devenir un partenaire important de l'UE, mais aussi d'un genre unique. Annexes I II III IV V VI VII - Règlement n° 2259/96 du Conseil du 22 novembre 1996 - Liste des projets approuvés en 1996 - Engagements et paiements - Liste des projets approuvés en 1997 - Engagements et paiements - Engagements et paiements en 1996/1997 (totaux) - Informations sur les marchés attribués - Procès-verbal agréé des consultations annuelles de 1997 - Programme indicatif pluriannuel (PIP) 28. 11. 96 DOE Journal officiel des Communautés européennes N° L 306/5 RÈGLEMENT (CE) N° 2259/96 DU CONSEIL du 22 novembre 1996 relatif à la coopération au développement avec l'Afrique du Sud LE CONSEIL DE L'UNION EUROPÉENNE, vu le traité instituant la Communauté européenne, et notamment son article 130 W, vu la proposition de la Commission ('), statuant conformément à la procédure visée à l'article 189C du traité 0, considérant que la politique de la Communauté vis-à-vis de l'Afrique du Sud a été marquée dans le passé par l'adoption de mesures négatives d'embargo commercial et de sanctions économiques à l'encontre du gouvernement responsable d'une politique d'apartheid, de même que de mesures positives de soutien aux populations victimes du système de l'apartheid, dans le cadre du programme spécial d'assistance à travers les organisations non gouver nementales; considérant que, à la suite des élections d'avril 1994 et de la mise en place d'un gouvernement démocratique, la Communauté s'est orientée vers une stratégie d'appui aux politiques et réformes menées par les autorités nationales; considérant que, dans sa déclaration du 25 mai 1993, le Conseil a exprimé son soutien à la création des structures démocratiques; considérant que, dans sa déclaration du 19 avril 1994 sur les relations futures entre la Communauté et l'Afrique du Sud, le Conseil a réitéré son soutien au renforcement de la coopération avec l'Afrique du Sud en concentrant l'appui communautaire sur des secteurs susceptibles d'améliorer les conditions de vie de la population, et en particulier de ses couches les plus défavorisées; considérant que l'accord de coopération entre la Commu nauté européenne et la république d'Afrique du Sud, signé en octobre 1994 à Pretoria, a pour objectif de promouvoir un développement socio-économique harmonieux et durable et constitue la première étape de l'établissement d'une coopération, à long terme avec ce pays, pour laquelle une proposition de directives de négociation a été soumise par la Commission au Conseil le 31 mars 1995; considérant que l'autorité budgétaire a décidé, dans le cadre du budget de 1986, de créer une ligne budgétaire destinée à appuyer les actions de développement dans ce pays; (•) JO n8 C 235 du 9. 9. 1995, p. 5. I1) Avis du Parlement européen du 10 octobre 1995 (JO n° C 287 du 30. 10. 1995, p. 29), position commune du Conseil du 19 mars 1996 (JO n° C 134 du 6. 5. 1996, p. 12) et décision du Parlement européen du 18 juillet 1996 (JO n° C 26l du 9. 9. 1996, p. 144). considérant qu'il y a lieu de fixer les modalités de gestion des ressources financières affectées par la Communauté à la mise en œuvre de cette coopération; considérant qu'un montant de référence financière, au sens du point 2 de la déclaration du Parlement européen, du Conseil et de la Commission du 6 mars 1995, est inscrit dans le présent règlement pour l'ensemble de la durée du programme, sans que cela n'affecte les compé tences de l'autorité budgétaire définies par le traité, A ARRÊTÉ LE PRÉSENT RÈGLEMENT: Article premier La Communauté met en oeuvre une coopération finan cière et technique avec l'Afrique du Sud, en appui des politiques et réformes menées par les autorités nationales de ce pays. < Le programme de coopération communautaire, intitulé «programme européen pour la reconstruction et le déve loppement en Afrique du Sud*, a pour objectif de contri buer au développement économique et social durable et harmonieux de ce pays et de consolider les bases d'une société démocratique et d'un État de droit dans le respect des droits de l'homme et des libertés fondamentales. Dans ce contexte, la Communauté apporte prioritaire ment son soutien aux actions en faveur des couches les plus défavorisées de la population sud-africaine. Article 2 1. Les actions de coopération à mettre en oeuvre'au titre du présent règlement portent principalement sur les domaines suivants: — soutien à la démocratisation et à la défense des droits de l'homme, — éducation et formation, — santé, — développement rural, — développement urbain et logement social, — soutien au secteur privé et coopération avec celui-ci, en particulier à l'égard des petites et moyennes entre prises, — renforcement institutionnel et organisation de com munautés locales,. — coopération et intégration régionales, — protection de l'environnement. 2. Dans ses actions de coopération, la Communauté tient compte des priorités du programme sud-africain pour la restructuration. et le développement. % N° L 306/6 PER" Journal officiel des Communautés européennes 28. 11. 96 Article 3 Les partenaires de la coopération qui peuvent obtenir un soutien financier au titre du présent règlement sont les administrations et les agences publiques nationales, provinciales et locales, les organisations non gouverne mentales et les organisations à base communautaire, les organisations régionales et internationales, les instituts et opérateurs publics ou privés. Article 4 1. Les moyens qui peuvent être mis en œuvre dans le cadre de la. coopération visée à l'article 1" comprennent notamment des études, une assistance technique, une action de formation ou la prestation d'autres services, des fournitures et des travaux, ainsi que des audits et des missions d'évaluation et de contrôle. 2. Le financement communautaire, en devises ou en monnaie locale, selon le besoin de la mise en œuvre des actions de coopération, peut couvrir: — des dépenses d'investissement, à l'exclusion de l'achat dé biens immeubles, — dans des cas dûment justifiés, des frais récurrents (englobant les dépenses d'administration, d'entretien et de fonctionnement), de manière à assurer l'utilisa tion optimale des investissements visés au premier tiret, dont l'exploitation représente temporairement un fardeau pour le partenaire. Dans ces cas, un plan prévoyant la reprise en charge de ces frais par le parte naire au terme du projet doit accompagner la proposi tion de financement de la Communauté. 3. Une contribution financière des partenaires visés à l'article 3 est, en principe, requise pour chaque action de coopération. Cette contribution est demandée dans les limites des possibilités des partenaires concernés et en fonction de la nature de chaque action. Dans des cas spécifiques, et lorsque le partenaire est soit une organisa tion non gouvernementale, soit une organisation à base communautaire, la contribution peut être apportée en nature selon leurs possibilités. a) l'instauration d'un système d'échange systématique d'informations-sur les actions financées et celles dont le financement est envisagé par la Communauté et les États membres; b) une coordination sur le lieu de mise en oeuvre des actions à travers des réunions régulières et d'échange d'informations entre les représentants de la Commis sion et des États membres dans le pays bénéficiaire. 7. La Commission, en liaison avec les États membres, peut prendre toute initiative nécessaire en vue d'assurer une bonne coordination avec les autres bailleurs de fonds concernés. Article 5 Le soutien financier au titre du présent règlement prend la forme d'aides non remboursables. Article 6 La programmation indicative pluriannuelle par objectifs ainsi que l'identification et la mise en œuvre des actions visées à l'article 2 qui en découlent s'effectuent dans le cadre d'un dialogue étroit avec le gouvernement sud-afri cain et compte tenu des résultats de la coordination visée à l'article 4 paragraphes 6 et 7. la programmation, Afin de préparer la Commission établit, dans le cadre d'une coordination renforcée avec les États membres, y compris sur place, un document synthé tique de stratégie de coopération, lequel est examiné par le comité visé à l'article 8 ci-après dénommé «comité». ' La Commission transmet le programme indicatif pluriannuel établi sur la base de cet examen au comité aux fins d'un échange de vues, lequel a lieu à la demande de la Commission ou d'un ou plusieurs membres du comité. Lorsqu'il n'est pas possible de parvenir au consensus souhaitable sur le document synthétique ou le program me, le comité donne son avis selon la procédure prévue à l'article 8. La même procédure s'applique lorsque des modifications du programme se révèlent nécessaires. Article 7 4. Des possibilités de cofinancement avec d'autres bail leurs de fonds peuvent être recherchées, en particulier avec les États membres. 5. La Commission peut prendre toute mesure utile pour faire connaître le caractère communautaire des aides fournies au titre du présent règlement. 6. Afin de réaliser les objectifs de cohérence et de complémentarité visés par le traité et de garantir une effi cacité optimale de l'aide, la Commission peut prendre toutes les mesures nécessaires de coordination, et notam ment: 1. La Commission est chargée d'instruire, de décider et de gérer les actions visées par le présent règlement, selon les procédures budgétaires et autres en vigueur, et notam ment celles prévues dans le règlement financier appli cable au budget général des Communautés européennes. 2. Afin d'assurer la transparence et la réalisation des objectifs visés dans l'article 4 paragraphe 6, la Commis sion communique aux États membres et à leurs représen tants sur place les fiches d'identification des projets dès que la décision de procéder à l'instruction est prise. Par la suite, la Commission procède à une mise à jour de ces fiches d'identification et la communique aux États membres. 3 28. 11. 96 FR Journal officiel des Communautés européennes N° L 306/7 Les décisions concernant les actions dont le finance 3. ment au titre du présent règlement dépasse 2 millions d'écus par action, ainsi que toute modification de ces actions entraînant un dépassement supérieur à 20 % du montant initialement convenu pour l'action concernée, et les propositions de modifications fondamentales à prévoir comme conséquence des difficultés apparues dans l'exé cution de projets déjà engagés sont arrêtées selon la procédure prévue à l'article 8. Lorsque le dépassement visé au premier alinéa est supé rieur à 4 millions d'écus, mais inférieur à 20 % de l'enga gement initial, l'avis du comité sera recherché selon les procédures simplifiées et accélérées. La Commission le comité des informe succinctement décisions de financement qu'elle a l'intention de prendre au sujet des projets et programmes d'une valeur inférieure à 2 millions d'écus. Cette information a lieu au plus tard une semaine avant la prise de décision. Toute convention ou tout contrat de financement 4. conclu au titre du présent règlement prévoit notamment que la Commission et la Cour des comptes peuvent sprocéder à des contrôles sur place selon les modalités habituelles définies par la Commission dans le cadre des dispositions en vigueur, en particulier celles du règlement financier applicable au budget général des Communautés européennes. 5. Dans la mesure où les actions donnent lieu à des conventions de financement entre la Communauté et l'Afrique du Sud, celles-ci prévoient que le paiement de taxes, droits et charges n'est pas financé par la Commu nauté. 6. La participation aux appels d'offres et aux marchés est ouverte, à égalité de conditions, à toutes les personnes physiques et morales des États membres, de l'Afrique du Sud et des États ACP. Elle peut être, étendue à d'autres pays en développement dans des cas dûment justifiés et dans le but d'assurer le meilleur rapport coût/efficacité. 7. Les fournitures sont originaires des États membres, de l'Afrique du Sud ou des États ACP. Dans les cas excep tionnels, dûment justifiés, elles peuvent être originaires d'autres pays. Article 8 sur ce projet dans un délai que le président peut fixer en fonction de l'urgence de la question en cause. L'avis est émis à la majorité prévue à l'article 148 paragraphe 2 du traité pour l'adoption dés décisions que le Conseil est appelé à prendre sur proposition de la Commission. Lors des votes au sein du comité, les voix des représentants des États membres sont affectées de la pondération définie à l'article précité. Le président ne prend pas part au vote. 3. a) La Commission arrête les mesures envisagées lors qu'elles sont conformes à l'avis du comité. b) Lorsque s'ont pas les mesures envisagées ne conformes à l'avis du comité, ou en l'absence d'avis, la Commission soumet sans tarder au Conseil une proposition relative aux mesures à prendre. Le Conseil statue à la majorité qualifiée. Si, à l'expiration d'un mois, le Conseil n'a pas statué, les mesures proposées sont arrêtées par la Commission. Article 9 Après chaque exercice budgétaire, la Commission soumet au Parlement européen et au Conseil un rapport annuel sur la mise en œuvre du présent règlement. Ce rapport exposera les résultats de l'exécution du budget en ce qui concerne les engagements et les paiements ainsi que les projets et programmes financés dans l'année. Il compor tera des informations statistiques précises et détaillées sur les adjudications effectuées pour la mise en œuvre des projets et, programmes. La Commission procède régulièrement à une évaluation des actions financées par la Communauté en vue d'établir si les objectifs visés par celles-ci ont été atteints et de fournir des lignes directrices pour l'amélioration de l'effi cacité des actions futures. Des résumés des rapports d'éva luation seront communiqués aux États membres. Les rapports complets seront à la disposition des États membres qui les demandent. Article 10 Le présent règlement entre en vigueur le troisième jour officiel des suivant celui de sa publication au Journal Communautés le 31 décembre 1999. européennes. Il expire 1. La Commission est assistée par un comité, composé des représentants des États membres et présidé par le représentant de la Commission. Le montant de référence financière pour l'exécution du présent règlement est de 500 millions d'écus pour la période du 1" janvier 1996 au 31 décembre 1999. 2. Le représentant de la Commission soumet au comité un projet des mesures à prendre. Le comité émet son avis Les crédits annuels sont autorisés par l'autorité budgétaire dans la limite des perspectives financières. lo N° L 306/8 I FR 1 Journal officiel des Communautés européennes 28. 11. 96 Le présent règlement est obligatoire dans tous ses éléments et directement applicable dans tout État membre. Fait à Bruxelles, le 22 novembre 1996. Par le Conseil Le président J. BURTON fl Annex II I:\lb7-3200\annurcp\projlist. doc LIST OF PROJECTS APPROVED IN 1996 PROJECT CONTRACT No Committments (ECU) Payments (ECU) Cato Manor* 96-73200-001 24,500,000 160,440 The Truth and Reconciliation Commission* Public Service Management Development * • Technical Support to tthe SA Department of Education 96-73200-002 1,950,000 1,577,532 96-73200-003 19,206,000 1,147,453 96-73200-004 17,200,000 0 Soul City 96-73200-005 2,350,000 NGO Rural Water Supply 96-73200-006 5,000,000 s Non-grid Electrification of Rural Schools :hool 96-73200-007 15,000,000 Policing in Eastern Cape Province 96-73200-008 9,000,000 Parliamentary Support Programme 96-73200-009 16,000,000 Support to the SA Trade Union Movement /erne ait 96-73200-010 4,300,000 Trade and Investment Development Programme for SMMEs 96-73200-011 8,907,000 Young doctors 96-73200-012 750,000 2,071,993 1,384,789 0 0 5,057,398 1,151,323 0 0 IDASA 96-73200-013 1,978,000 572,837 DTI policy support 96-73200-014 1,970,000 0 FISCU 96-73200-015 1,100,000 528,324 TOTAL 129,211,000 13,651,109 * Approved in 1995 under the 1996 budget **Not included in train, but submitted separately by written procedures to the Member States in Brussels. 12_ Annex III LIST OF PROJECTS APPROVED IN 1997 PROJECT CONTRACT No Commitments (ECU) Payments (ECU) Audit (Ernst and Young) Audit (Price Waterhouse) 97. 73200. 01 97. 73200. 02 SADC Régional Food Security Training 97-73200-03 192,600** 96,300** 300,000 40,000 30,531 200. 000 853,368 Community Project Fund (Free State Department of Agriculture) 97-73299-04 17,000,000 Support to Fight Corruption (Transparency 97-73200-05 International) Soul City IV & V Participatory Primary Health Programme (SACLA) 97-73200-06 97-73200-07 300,000 3,200,000 9,600,000 Labour Market Skills Development (Department of Labour) 97-73200-08 46,000,000 Integrated Community Sports Programme (SCORE) 97-73200-09 7,900,000 Strengthening Local Government in Mpumalanga and Northern Province 97-73200-010 17,900,000 Public Health Sectoral Support Programme 97-73200-011 22,500,000 Education Sectoral Support Programme 97-73200-012 23,000,000* Conference, Workshop and Cultural Initiatives (CWCI) Fund 97-73200-013 1,900,000 Information and Communication Programm 97-73200- on the EPRD 900,000 TOTAL(1997 Coram. ) 127. 5 Mecu * To be commited under the 1998 budget ** Dotation 31 \S Annex IV COMMITMENTS AND PAYMENTS IN 1996/ 1997 996 Commitments: 129. 211. 100,00 Ecu (15 projects) Payments: 28514. 567,74 (99 payments) 1997 Commitments: 127. 500. 000,00(11 projects) Payments: 59. 768. 980,61 (137 payments) i:\lb7-3200\annurcp\annyo-97. doc ^ Annex V INFORMATION ON CONTRACTS AWARDED PROJECTS 1996 Project: 96-73200-01 CATO MANOR à- V ^ Financing Agreement: Partner Amount SA Government ECU 24. 500. 000 Contract: Doxiadis- Greece Contractor Amount: ECU Awarded through restricted tendering 832. 560 Total Paid: ECU 190. 381 Project: 96-73200-02 Truth and Reconciliation Commission (TRC) Financing Ag reement: i Partner Amount TRC ECU 1. 950. 000 Contract: Total Paid: Contracter Amount: ECU ECU 1. 577. 532 Project: 96-73200-03 Public Service Managem Financing Agreement: Partner Amount SA Government ECU 19. 206. 000 Contract: * Symonds Travers Morgan- UK Contractor Amount: ECU Awarded through restricted tendering 1. 553. 400 Total Paid: ECU '1. 147. 453 Project: 96-73200-04 Technical Support to. SA Department of Education Financing Agreement: Partner Amount SA Government ECU 17. 200. 000 Contract: Hedco-Rep. Of Ireland Contractor Amount: ECU Awarded through restricted tendering 633. 310 Total Paid: ECU 313. 181 Project: 96-73200-05 Soul City Financing Agreement: Partner Amount Institute for Urban Primary Health Care (SA) Institute 1 ECU 2. 350. 000 Contract: Total Paid: Contractor Amount: ECU ECU 2. 071. 993 /S- Ptoject: 96-73200-06 NGO Rural Water Supply Financing Agreement: Partner Amount Mvula Trust (SA) ECU 5. 000. 000 Contract: Contractor Amount: ECU Total Paid: ECU 1. 384. 789 Project: 96-73200-07 Non Grid Electrification of Rural Schools SA Government Financing Agreement: Partner ECU Amount IED-France Contractor Amount: ECU Direct Agreement after consultation Contract: 15. 000. 000 38. 650 Total Paid: , - ECU 25. 035 Project: 96-7^200-08 Policing in Eastern Cape Financing Agreement: Partner Amount SA Government ECU 9. 000. 000 Contract: Studio Bichara-ltaly Contractor Amount: ECU Awarded through restricted tendering 1. 167. 050 Total Paid: ECU 0 Project:. 96-73200-09 Parliamentary Support Programrne|i|»5 Financing Agreement: Partner Amount SA Government ECU 16. 000. 000 Contract: Contractor • Amount: ECU To be awarded through open international tender Total Paid: ECU 5. 057. 398 Project: 96-73200-10 Support to SA Trade Union Movement Financing Agreement: Partner Amount. South Africa Labour Development Trust 4. 300. 000 ECU Contract: Contractor Amount: ECU 0 Total Paid: ECU 1. 151. 323 k Project:^ 96-73200-11 Trade arid lnvestmèni|Oe^^ ^ Financing Agreement: Partner Amount SA Government ECU 8. 907. 000 Contract: Contractor Amount: To be awarded through restricted tendering ECU 0 Total Paid: ECU Project: 96-73200-12 Young Doctors 0 ;^ Financing Agreement: Partner Amount SA Government and CIM-Germany ECU. 750. 000 Contract:. Contractor Amount: ECU 0 Total Paid: - ECU 186. 250 Project; 96-73200-13 IDASA. : ^ £. ; g^ Financing Agreement: Partner Amount Contractor Contract: Institute for Democracy in South Africa 1. 978. 000 ECU Amount: ECU 0 Total Paid: ECU 572. 837 Project; 96-73200-14 DTI Policy Support Financing Agreement: Partner Amount Contractor Contract: SA Government-Not signed ECU 1. 970. 000 Amount: ECU Total Paid: ECU 0 0 Project;; 96-73200-15 FISCU ;3 '•''&: ^:-W^ Financing Agreement: Partner Amount Contractor Contract: SA Government ECU EAC- Bursvik Price Waterhouse 1. 100. 000 ECU ECU 85. 000 919. 890 Total Paid: ECU 528. 324 ir PROJECTS 1997 Project: 97-73200-01 Audit - Project Closure Financing Agreement Partner Amount None ECU 192. 600 Contract: Contractor Amount: Awarded through restricted tendering Ernst & Young-Belgium ECU 192. 600 Total Paid: ECU 40. 000 Project: 97-73200-02 Audit - Project Closure Financing Agreement Partner Amount None ECU 96. 300 Contract: Contractor Amount: Awarded through restricted tendering Price Waterhouse-Belgium ECU 96. 300 Total Paid: ECU 30. 531 Project: 97-73200-03 SADC Regional Food Security Training Financing Agreement Partner Amount SA Government ECU 300. 000 Contract: Total Paid: Contractor Amount: ECU ECU 200. 000 Project: 97-73200-04 Community Prbj. Fund (Free State Pep. Of Agriculture) Financing Agreement: Partner Amount SA Government ECU 17. 000. 000 Contract: Contractor Amount: Awarded through restricted tender IP-Germany (not signed) ECU 651. 963 Total Paid: ECU 0 Project: 97-73200-05 Support to Fight Corruption Financing Agreement: Partner Amount Transparency International ECU 300. 000 Contract: Total Paid: Contractor Amount: ECU ECU IY Project:-; 97-73200-06 Soul City IV and V Financing Agreement: Partner Amount Institute or Urban Primary Health Care ECU 3. 200. 000 Contract: Total Paid: Project: Contractor Amount: ECU ECU 0 97-73200-07. Participatiry Primary Health Programme Financing Agreement: Partner Amount SACLA (NGO-SA) ECU 9. 600. 000 Contract: Total Paid: Project: Contractor Amount: ECU ECU 853. 368 97^73200-08 Labour Market Skills Development Financing Agreement: Partner Amount SA Government ECU 46. 000. 000 Contract: Total Paid: Project:. Contractor Amount: ECU ECU 0 97-73200^9$ Integrated Community Sports'Programme Financing Agreement: Partner Amount SCORE (NGO-SA) ECU 7. §00. 000 Contract: Total Paid: Contractor Amount: ECU ECU 0 Project:. 97-73200-10 Strengt. Loc. Governm. Mpumalanga and North. Province Financing Agreement: Partner Amount SA Government ECU 17. 900. 000 Contract: Total Paid: Contractor Amount: ECU ECU 3 Project:?;:'. 97-73200-11 Public Health SectoralSupportProg^ Financing Agreement: Partner Amount SA Government ECU 22. 500. 000 Contract: Total Paid: Project: Contractor Amount: ECU ECU 0 97-73200-12 Education Sectoral Support Programme Financing Agreement: Partner Amount SA Government ECU 23. 000. 000 Contract: Total Paid: Project: Contractor Amount: ECU ECU 0 97-73200-13 Conference, Workshop and Cultural Initiatives Fund Financing Agreement: Partner Amount SA Government ECU 1. 900. 000 Contract: Total Paid: RrpjectF; Contractor Amount: ECU ECU 0 97-73200^14 Information and Communication Programme Financing Agreement: Partner Amount SA Government ECU 900. 000 Contract: Total Paid: Contractor Amount: ECU ECU Zt> Annex VI AGREED MINUTES 1997 ANNUAL CONSULTATIONS ON OFFICIAL DEVELOPMENT COOPERATION BETWEEN SOUTH AFRICA AND THE EUROPEAN COMMISSION ON THE EUROPEAN PROGRAMME FOR RECONSTRUCTION AND DEVELOPMENT (EPRD) Held in Pretoria from 14th - 15th April 1997 1. OPENING REMARKS The South African Delegation welcomed the European Commission delegation and noted that these first Annual Consultations between the EU and South Africa were taking place exactly two years after the signing of the 'Declaration of Intent' by Minister Jay Naidoo and Commissioner Pinheiro. The purpose of the consultations was to review progress on the implementation of the European Programme for Reconstruction and Development (EPRD) and find solutions to problems that were being encountered in the implementation of the programme. The discussions would also focus on a Multi-annual Indicative Programme (MIP). It was noted that the EPRD had successfully channeled resources into RDP projects as well as NGO initiatives and that all funds available had so far been committed, implementation had however been slow. European Commission Delegation thanked the Department of Finance for all the preparation that had gone into the Consultations and noted that many of the Departments involved in EU cooperation were present indicating the extent and spread of the Programme. The achievements of the programme were stressed and the history of SA-EU cooperation which started with the EC 'Special Programme' was recalled. The EC stated that although the government was the Commission's principal interlocutor in its development cooperation, other actors also played an important role. The Delegation was happy to note that EU support was responding to government priorities as outlined in the Reconstruction and Development Programme (RDP) and the Growth Employment And Redistribution (GEAR) strategy. The 'Declaration of Intent' was designed to set out the priorities of the programme and that the MIP would be a step further in the process. The EC delegation noted that although there was a need to highhght the successes of the programme, it was also important to outline concerns. First there was a need to understand better why implementation and disbursement of funds was so slow and second there was a need for more clarity about future commitments of resources. The EPRD should be Relevant (to South Africa's policies and needs), Efficient and Sustainable (with a strong link between projects of support and government policy). *u 2. GENERAL MATTERS 2. 1 Implementation of the Multi-annual Indicative Prolamine (MJP) The EC outlined the background to the MIP. It was required by the EU Council in terms of the agreement to provide support to South Africa, it could provide a multi-annual (3 year) basis for longer-term programming. The MIP would be 'indicative' and have the necessary flexibility to respond to changing needs. The document would set out the sectors of cooperation, timetables, targets, expected results and means of implementation. The Commission would like to see the EPRD focused and the MIP to express the priorities of Government for EU support. The document should set out the roles of the different implementing partners of the programme and suggest which actors were appropriate for which activities. The MIP should clarify the role and tasks of the 'National Authorising Officer' (NAO). It should indicate the scale of resources to be devoted to each sector. Finally the MEP should outline the Regional Dimension of the Programme. The EC added that the process of prioritisation would mean that some sectors would be effectively excluded from the MEP, however, this would lead to better management of the Programme and better visibility in the priority sectors. There needed to be a system of arbitration on the South African Government side to prioritise the sectors. 2. 2 Tender Procedures The SA Delegation (State Tender Board) noted that according to the new Constitution public procurement tenders needed to be: fair, equitable, competitive, transparent and cost effective. Two systems of preferences were also to be applied under South Africa's new government procurement policy. There would be a 10% price preference if over 80% of the content was local. There would also be a 10% price preference in favour of RDP principles of contracts over R2 million. The State Tender Board also considered that the Commission's regulations on tendering provided for much higher ceilings for restricted invitations to tender. The State Tender Board also stated that they would like to form part of the evaluation team of tenders where South African money was involved. The EC responded that there seemed to be no disagreement on the principles for tendering. It was noted that following detailed discussions between the Commission and South Africa in early 1996, a pragmatic approach had been adopted whereby draft EU regulations would be used prior to the outcome of long-term negotiations. It was added that too low ceilings for undertaking pre-qualification tenders would drastically slow down the implementation of projects. LL The SA Delegation stated that donor funds should be deposited in the RDP Fund. This fund was subject to the Exchequer Act, and therefore the same regulations governing South African Government funds applied to donor funds (notably tender rules and payment of taxes). It was proposed that the matter be taken up during discussions on the MEP in Wednesday. 2. 3 Payment of VAT and other tax and duties The SA Delegation introduced the topic explaining that current Financing Agreements do not foresee payment of taxes and duties. SA is now proposing that the provisions outlined in Article 309 of the Lomé Convention regarding the payment of local taxes should be adopted for the EPRD. The EC responded that South Africa's accession to Lomé would only be ratified by around September and hence problems might be encountered in the meantime. Furthermore, Article 309 followed on from article 308 which implied that the Commission should not pay taxes which do not apply to other donors. The EC noted that these issues of VAT and tendering were hampering implementation of the programme and made a strong plea that EU funds should be treated differently from South African exchequer funds and would not be subject to the domestic rules of the State. Tender Board. If agreement on VAT and tender issues could be reached, a major impediment to implementation would be removed. Tlie SA Delegation responded that it would look at a number of options for dealing with the VAT problem The Department of Finance would explore the possibility of instituting a reimbursement system within existing legislation. If this was not possible, the Department might ask Parliament to retrospectively authorise the provisions of the existing agreements. The Government would also seek to have the issue dealt with within a bilateral agreement. 2. 4 Reimbursement/disbursement and £ow of funds ' The EC Delegation introduced the item ^ saying that during the first discussions between the Commisrion and Department of Finance, a reimbursement system was requested by In recent discussions with Deputy Minister Gill Marcus, an advance South Africa. payment system had been agreed upon and will be reflected in future Financing Agreements. A standard text fo* a 'rider' to the existing Financing Agreements had therefore been prepared. SA Delegation asked that these be presented before the end of the week. The EC mentioned that as well as agreement on the text, a list was required of the Agreements it should apply to. zi 2. 5 Status of Technical Assistants The SA Delegation noted that agreements covering the status of technical assistants had been signed with most donors. The EC suggested that this issue might be dealt with in the interim by a reference in the MIP and taken up as appropriate in a standard annex in the Financing Agreement. The SA Delegation responded that an 'exchange, of letter' could be drafted dealing with the issue whereby EC funded technical assistants would benefit from provisions equivalent to those accorded under bilateral agreements with EU Member States. 2. 6 Format and timing of Financing Agreements The SA Delegation introduced this item by saying the Department of Finance had taken legal advice which suggested that the standard text of the existing Financing Agreement was acceptable. "There were some minor issues that needed to be discussed. The EC responded that it was very happy the issue had finally been resolved. It was suggested that a commitment might be undertaken by both parties that the Agreements be signed within 60 days of the Financing Decision, as happened under Lomé. The EC also pointed out that each Agreement was in two parts. The first part covered procedural issues and was not changed from agreement to agreement and the second was a summary of the project document which should have the prior agreement of the implementing Department. It was agreed that the NAO, once nominated, would be responsible for the signing of all Financing Agreements that were to be implemented by Government. The SA Delegation wound up the discussion by saying that in regard to Financing Agreements related to decentralised cooperation, the Department accepted the proposals set out in the draft MIP. This stated that the implementing! agents should be responsible for the implementation of the contract directly to the Commission and not through government. ^ 3. STATUS OF COOPERATION 3. 1 On-going projects LAND AFFAIRS Background There is one ongoing project with Land Affairs, support for the RDP Land Reform Pilot Programme along with Denmark and the UK There is an EU-funded TA in the Department (Paul Zille). LAND REFORM PILOT PROGRAMME Project No: '95-75070-003 Project summary The project constitutes EU support for the initial phase of the Government's land reform effort. The Programme supports the acquisition of land for productive purposes by poor and landless communities which form legal entities. Qualifying communities also receive support for project planing, management and the development of basic on-farm infrastructure. The project is joint funded by the UK and Denmark. Total amount committed (ECUs): Total amount disbursed (ECUs): 11 m lm • Financing decision made 06/95 • Financing Agreement signed 05/96 • Workplan submitted 09/96 • Installments made 11/96 • End of contract 05/98 Project status Programme implementation, although variable between provinces, has been slower than expected. This is due to the pilot nature of the programme; non-existence - prior to the project's inception - of Department of Land Affairs provincial and pilot offices and operational difficulties associated with the provincial agency agreements that were required for the management of the Programme's pilot districts. Following the completion of the Pilot's two year time-scale, district offices have been successfully integrated into the Department's provincial directorates. Tlds will allow for more effective management of the projects and staff; and facilitate the improvement and standardisation of project implementation and management procedures. A progress report and workplan was submitted in September 1996. An institutional review has been undertaken. A consultant has been selected following a tender as the implementing agency for the Community Facilitation Fund element of the project. 2£ In line with the donor financing agreements, a report for all three donors to the programme is currently under preparation (for presentation on 22nd April 1997). A mid term review of the donor contribution to the land reform programme is scheduled for June/July 1997. Draft terms of reference have been prepared and circulated by the Department. Conclusions The meeting concluded that the meeting of donors scheduled for 22nd April might consider whether the production of the next workplan should await the outcome of the mid-term review. 26 HEALTH Background The Department of Health was the first government institution to enter into an agreement with the EU. Three projects were agreed in 1994 and Financing Agreements were signed by the Department of Health early in 1995. Two EU-funded technical assistants (Mr. Bill Bradshaw and Dr. Malcolm Seagal) are currently working with the Department. Progress with the implementation of the three projects has been slow. The contract period for all the projects has been extended to the end of this year (December 1997). The administration of the three projects has received significant attention in recent months. In particular, newly designed management reports have been developed to enable weekly monitoring of progress. In addition a change in the management of the projects has been instigated to further improve the scrutiny of project activities. The Deputy Directors General have been requested to personally review the new weekly progress reports with programme and activity managers to ensure that issues and constraints are being addressed. HTV-AIDS PROGRAMME Project No: '94-75070-055 Project summary The project supports the Department of Health's National HTV/AIDS programme. The objectives of the support are to increase the awareness of safe sex practices in youth and other socially vulnerable groups, reduce HTV infection and secure legal and social equality for those with HTV/AIDS. Total amount committed (ECUs): Total amount disbursed (ECUs): 11. 2 m 3. 3m Financing decision made 11/94 Financing Agreement signed 03/95 First installment paid (09/95) End of contract 31/12/97 Project status The project is ongoing. Progress in implementation has been slow due to institutional capacity constraints and personnel changes in the Department and a lack of clarity i?r regarding procedures to be followed. However, a workplan for the final phase of the project has recently been agreed by the Commission. A further report is expected covering up to 31st March 1997. It is anticipated that a further 42% of the total contract amount will be spent in the second quarter, 30% in the third quarter and 13% in the last quarter. The contract for EU support will finish at the end of the year. DISTRICT HEALTH SYSTEMS SUPPORT PROGRAMME Project No: '94-75070-056 Project summary Within the context of supporting the development of a national comprehensive strategic health plan, the objective of the project is to support the restructuring of the national health system through the development of district health systems. Total amount committed (ECUs): Total amount disbursed (ECUs): 5. 7m 2. 5m • Financing decision made 11/94 • Financing Agreement signed 03/95 • First installment paid (06/95) • End of contract 31/12/97 Project status The project is ongoing. As with the other health projects, long delays have been experienced in implementation due mainly to institutional constraints particularly in the provinces and lack of clarity with regard to procedures. A report setting out progress to date is due as is a workplan setting out the timetable for implementation of the remainder of the programme before the end of the year. Conclusion The Department would prepare the report and workplan for this project as soon as possible. The meeting noted that there was a danger that failure to provide the workplan for the final phase of this project might lead to a gap in the coverage of expenditure. ^? TECHNICAL ASSISTANCE PROGRAMME TO THE DEPARTMENT OF HEALTH Project No: '94-75070-058 Project summary Health sector reforms planned and supported through this technical assistance project are aimed at improving the general health and well-being of majority of the population with a specific focus on the poorest populations in rural and urban areas. Total amount committed (ECUs): Total amount disbursed (ECUs): 2. 5m lm • Financing decision made 11/94 • Financing Agreement signed 03/95 • First installment paid (06/95) • End of contract 31/12/97 Project status The project is ongoing. Delays have been experienced along with the other health projects. However, expenditure has increased 100% in the first three months of this year. A workplan for the final phase of the project has recently been agreed by the Commission. A further report is expected covering up to 31st March 1997. It is anticipated that a further 31% of the total contract value will be spent in the second quarter, 25% in the third quarter and 22% in the final quarter of the year. YOUNG EUROPEAN DOCTORS FOR SA PROGRAMME Project No: '96-73200-012 Project summary The project foresees the provision of 50 medical doctors as young European volunteers to hospitals in medically underserved areas in KwaZulu-Natal, Mpumalanga and Northern Province. The project will be run by GTZ/CIM in cooperation with Department of Health. The total EU contribution for the programme is 1,1 million ECUs ?. 750,000 million ECUs will come from the EPRD, the balance from another EU programme budgetline Total amount committed (ECUs): Total amount disbursed (ECUs): 750,000 Nil • Financing decision made 12/96 *© Project status The project has been agreed to but no Financing Agreement has been signed. The Commission has sent the annex related to technical and administrative provisions ior the Department to agree. The Department has recently forwarded comments on the annex to the Commission. * 2-9 Conclusion The Commission would provide the Department with the final text of the Financing Agreement for their scrutiny before signature. The Department will give their approval as soon as possible (within two weeks of receipt) to the agreement. Overall conclusions The Department will invite the Department of Finance and the Delegation to their next monthly meeting of project managers to see how the projects can be speeded up. The meeting noted that the performance of the Department in implementing existing projects would be taken into account when looking at future EU support for the sector. It was confirmed that the three existing agreements in the health sector will terminate at the end of 1997. 3» ^ TRADE AND INDUSTRY Background There are three projects with DTI. Two on SMMEs and one on Industrial and Trade Policy. PRIVATE SECTOR DEVELOPMENT PROGRAMME - SMMEs Project No: '95 75070-006 Project summary The project is divided into three components. The first part targets micro-lending NGOs by providing funds to build their capacity. This activity will be implemented by Khula Enterprise Finance Ltd, a section 21 company in which government has a 51% stake. The second element is an indemnity scheme, aimed at enabling SMEs to access capital from banks. It is being implemented by First National Bank and its subsidiaries and Khula. The third part of the programme is the provision of technical assistance to Khula. Total amount committed (ECUs): Total amount disbursed (ECUs): 11m Nil • Financing decision made 06/95 • Financing Agreement signed 05/96 • Workplans prepared by implementing parties (Khula and FNB) 09-11/96 Project status The project is not yet underway. Numerous delays have held up the implementation of the project. These have included institutional changes related to government agencies dealing with SMMEs and protracted discussions between the parties involved about procedural issues. Workplans have been prepared for some time and are still awaiting final agreement by the Department, before submission to the Commission. Conclusion The meeting agreed on a text for the DTI to convey to the Commission in agreeing the workplans relevant to the programme. "The DTI approves the management by Khula and implementation by private banks of the Micro and Small Enterprise Business Creation Scheme. The experience of the implementation of this programme calls for particular attention to be given to better defining the policy responsibilities of the Government vis a vis the implementation responsibilities of the private sector partners". It was agreed that the contract would not be split into its constituent components on the understanding that slow progress in one of the components would not be an impediment to financial disbursements to other elements. 11 3/ TRADE AND* INVESTMENT DEVELOPMENT PROGRAMME (SMMES) Project No: '96-73200- n Project summary The project, to be implemented through Ntsika Enterprise Promotion Agency (NEPA), will benefit previously disadvantaged SMEs providing training in the basic principles of international competitiveness for export. Furthermore, product specific groups of SMEs will receive 'hands on' integrated technical assistance in all aspects of export development. Opportunities to upgrade technology through a programme of international partnership instruments will be available to SMEs within specific product sectors. Total amount committed (ECUs): Total amount disbursed (ECUs): 8. 9m Nil • Financing decision made 10/95 • Financing Agreement (FA) (signed 02/97 Project status The project is not yet underway. Workplans need to be prepared by NEPA. A tender for the programme management unit needs to be launched. Conclusion The Commission and Ntsika will agree the terms of reference for consultants to prepare the workplan. These consultants will be contracted by Ntsika in the coming two weeks. In the meantime, Ntsika and the Delegation would begin immediately to prepare a tender dossier for the service contracts required for the projects. The meeting pointed out that normally consultants should not be required to draft workplans. DEPT. OF TRADE AND INDUSTRY (DTI) POLICY SUPPORT PROGRAMME Project No: '96- 73200-014 Project summary The project aims to improve the policy development and implementation capacity of the DTI in issues con ^erning industrial policy and trade. Total amount committed (ECUs): Total amount disbursed (ECUs): 2m Nu • Financing decision made 12/96 Project status Awaiting text, of Financing Agreement and signature thereof 12 2>2^ Conclusion The Commission will forward the text of the Financing Agreement to the Department in the coming few days. The Department and Delegation would complete the tender dossier for the service contracts required within the project, in the next two weeks. yi TRUTH AND RECONCILIATION COMMISSION Background The TRC signed their agreement directly with the EU in October. SUPPORT FOR THE TRUTH AND RECONCILIATION COMMISSION (TRC) Project No: '96- 73200-009 , Project summary EU support will assist the TRC's investigations unit, help with interpretation and translation and the research component of the Commission's work. The project covers the period up until the end of the year. Total amount committed (ECUs): Total amount disbursed (ECUs): 2m 1. 56 • Financing decision made 07/96 • Financing Agreement signed 09/96 • Workplan submitted to EU 01/97 • First installment made 03/97 • End of contract 12/97 Project status The project is underway and on track. A first workplan was submitted early in the year and payment made soon after. Conclusion The TRC will meet in the coming three weeks with the Delegation to discuss financial issues and the selection of investigators. 14 2ft- WATER AFFAIRS Background One project is on-going with the Department. A number of technical assistant contracts have been awarded following tender processes and these elements of the project are up and running. WATER DEVELOPMENT PROGRAMME - EASTERN CAPE Project No: '95-75070-004 Project summary The project provides technical assistance to the Department, and particularly in the Eastern Cape, in project management, monitoring and evaluation and environmental issues. The EU contribution will also cover the extension of water supplies to 200 communities in the province. Total amount committed (ECUs): Total amount disbursed (ECUs): 18m 724,000 • Financing decision made 06/95 • Financing Agreement signed 05/96 • Tenders for programme management and technical assistance launched 01-09/96 • Technical assistance teams in place 09-11/96 • Workplans for water supply implementation 1997 sent to Brussels 03/97 • End of contract May 1999 Project status The project is underway. Four service contracts are operational concerning; project management, information systems, monitoring and evaluation and environmental technical assistance. A proposal for the first phase of the works element of the programme is with the Commission. Conclusion The Commission is expected to approve the workplan and make a payment of R18 million in the coning days. 15 3,5 EDUCATION Background There are two projects with the Department. LIBRARY BOOKS AND TRAINING INSTITUTIONS Project No: '95-75070-009 FOR HISTORICALLY DISADVANTAGED Project summary The project will provide support for historically disadvantaged universities and technikons in the for of equipment, books and training. Total amount committed (ECUs): Total amount disbursed (ECUs): 11m Nil • Financing decision made 10/95 • Financing Agreement signed 05/96 • Tender for management contract launched 07/96 Project Status The project is not yet underway. The implementation of the project, and particularly of the establishment of the management unit have been delayed. The contract of the management of the project is currently being negotiated with The British Council. Once this unit is in place, implementation can proceed. Conclusion The Department will send a letter in the coming few days to the Delegation approving the appointment of the British Council. TECHNICAL SUPPORT TO THE DEPT. OF EDUCATION Project No: '96-73200-004 Project summary The programme, to be managed by the Joint Education Trust (JET) will work mainly with provincial departments of education t^ "evelop and pilot Early Childhood Development and Adult Basic Education strategies. The programme will also focus on improving administrative and management capacity. Total amount committed (ECUs): Total amount disbursed (ECUs): 17m Nil 16 34 • Financing decision made 07/96 • Financing Agreement (FA) signed 02/97 • Agreement between implementing agency (Joint Education Trust) and Department under discussion Project status Project not yet underway. Again, delays have been experienced in getting this project started. Initially this was due to discussion regarding the contractual relationships of the Institutional constraints in the Department of Education have also parties involved. hampered efforts to make decisions necessary to get the programme underway. However, the Joint Education Trust has drafted an interim workplan and established terms of reference for the technical assistant foreseen in the programme. Conclusions A meeting to be held on 16th April will discuss the interim workplan. The contract between JET and the Department is with the Director General and is expected to be approved in the coming few days. The tender documents for technical assistance were in Brussels. This tender would be launched within the next few weeks. Other projects The Bursary Programme: The Department will discuss with the Delegation the modalities for the transfer of the remainder of the Kagiso Trust Bursary Programme to the Tertiary Education Fund of South Africa (TEFSA). The meeting noted that the amount available for this transfer was around R30 - 35 million. The Commission stressed that no further commitments for bursary provision had been made. University of the North Maths and Science Programme (UNIFY). The Commission recalled the Financing Agreement and stressed the need to proceed with the tender that would provide technical assistance services for years 2 and 3. The meeting also resolved that the Department of Finance would convene a meeting between the Delegation and the Department regarding the UNIFY project at the University of the North. 17 ^r MINERALS AND ENERGY Background This RDP project is being implemented by Eskom. NON-GRIP ELECTRIFICATION OF RURAL SCHOOLS Project No: '96-73200-007 Project summary The project, to be implemented by the Department of Minerals and Energy and ESKOM, will provide non-grid electricity to 1,000 schools in the Eastern Cape and Northern Province. Total amount committed (ECUs): Total amount disbursed (ECUs): 15m Nil • Financing decision made 07/96 • Financing Agreement signed 02/97 Project status Due to the brevity of the original project appraisal, the Department and Commission have agreed to conduct a review of the project before it gets underway. Meanwhile, Eskom have drafted technical specifications for the supplies that will be needed on the project. Conclusions The Commission had asked ISPRA to review the tender documents. The Commission would sign a contract in the near future with the consultant to undertake the review. 18 £* PARLIAMENT Background The Agreement was signed by the Speaker of the National Assembly in her capacity as President of the Speakers' Forum. PARLIAMENTARY SUPPORT PROGRAMME Project No: '96-73200-009 Project summary The aim of the project is to empower legislatures both on national and provincial level to fulfill their democratic functions, namely; consideration of legislature, policy formulation, monitoring of the executive, constituency work and public education. Total amount committed (ECUs): Total amount disbursed (ECUs): 16m 0. 6m Financing decision made 07/96 Financing Agreement signed 10/96 Interim workplan has been submitted to EU, 02/97 First installment paid 03/97 End of contract 04/99 Project Status The project is underway and on track. A project coordinator and deputy coordinator have been appointed. An interim workplan has been submitted and approved covering the period 1st March to the end of June 1997. The project coordination team is currently preparing the 1st annual workplan. This is due to be submitted at the end of the month. Conclusions The annual workplan would be submitted in the 2nd or 3rd week of May. As regards future funding, the Commission pointed out that due to the scale of the existing project it was unlikely that further funds could be committed in the near future. 19 S3 SAFETY AND SECURITY - EASTERN CAPE POLICING FN EASTERN CAPE Project No: '96-73200-008 Project summary The project, will be implemented by the Provincial Ministry of Safety and Security over three years. It is jointly funded, with British ODA Improved civilian oversight of the Police Service, better management, improved infrastructure and management thereof and training will be promoted through the project. Total amount committed (ECUs): Total amount disbursed (ECUs): 9m Nil • Financing decision made 07/96 • Financing Agreement signed 02/97 • Tender for technical assistance launched in February • End of contract 02/99 Project status The project is underway and on track. A project manager has been recruited and the Project Steering Committee set up. A tender was opened on April 15th for the provision of technical assistance and the tender evaluation is underway. A fourth project steering committee to be held by the end of April will consider the first project report. 20 <f O HOUSING CATO MANOR DEVELOPMENT PROGRAMME Project No: '96-73200-01 Project summary EU support for the RDP Presidential Project in Cato Manor is aimed in the following areas; the development of infrastructure, promotion of access to loan finance for housing and strengthening implementation capacity in the area of project management. Total amount committed (ECUs): Total amount disbursed (ECUs): 24. 5m Nil • Financing decision made 10/95 • Financing Agreement (FA) signed 02/97 • Tender for management unit launched 07/96 * o" Project status The project is not yet underway. Lengthy delays have been experienced. These have been caused by discussions about the role of the various parties involved. A contract is about to be signed with a company to provide technical assistance services. The project will soon be submitting an interim workplan. The ongoing conflict around land claims of the Cato Manor site have the potential to hamper project implementation. The Department stated that they felt this problem would be overcome. Conclusion The Commission is negotiating the signing of the contract for technical assistance. This should be done by month's end. 21 M JUSTICE Background There is one EU funded project which involves the Department. However, implementation is the responsibility of an independent foundation - the European Union Foundation for Human Rights. A proposed 'rider' to the Financing Agreement has been sent to the Commission which clarifies the relationship between the various parties involved in the Programme. HUMAN RIGHTS PROGRAMME Project No: '94-75070-066 Project summary The programme uses NGOs as implementing agencies to support mdividuals and communities seeking access to their constitutional rights and basic services. The programme has four main objectives; to ensure that the public institutions dealing with human rights provisions of the Constitution function effectively, to encourage a strong NGO community in the sector, to increase legal provision to needy communities and to increase awareness about human rights. Total amount committed (ECUs): Total amount disbursed (ECUs): 15 m 3. 8 m • Financing decision made 11/94 • Financing Agreement signed 05/96 • First installment paid (12/96) • End of contract 11/99 Project status The project is ongoing. A number of delays were experienced in setting up the project, these revolved around the relationship of the Department to the project and the appointment of Board members for the Foundation. The programme is now running smoothly. The Commission has committed R21 million (approximately 3. 8 million ECUs) for the Programme for this year, 80% of which it has disbursed. Of this, around R9 million has already been committed to 21 individual projects. 24 NGOs are currently involved in the implementation of these projects. 22 <R, AGRICULTURE PARTICIPATION BY SOUTH AFRICA IN THE SADC REGIONAL FOOD SECURITY TRAINING PROGRAMME Project number 97/73200/003 Project summary and status The project is an ongoing initiative within the SADC region. This project allows South Africa to participate in the programme using EPRD resources whereas the rest of the programme is funded from the European Development Fund. The regional programme contributes to agreed SADC goals for the food security sector. A draft copy of the Financing Agreement together with the technical and administrative provisions annex of the Financing Agreement have been sent to the department for approval. A workplan has been drafted by the project management and sent to the Department of Agriculture for approval. Terms of reference for two tenders have been sent to the Department for approval. A financial commitment is due to be formalised by the Commission in the coming days. Total amount committed (ECUs): Total amount disbursed (ECUs): 300,000 Nil • Financing decision still to be taken • Financing Agreement still to be signed • End of contract 09/98 Conclusions The Department of Finance will contact the Department of Agriculture to ensure they provide agreement for the Financing Agreement text and tender dossiers. This would be done in the next two weeks. 23 <*1 PUBLIC SERVICE AND ADMINISTRATION Background This is the only programme with the department. service training institute, SAMDI and by a consortium of six universities, JUPMET. It will be implemented by the public PUBLIC SERVICE MANAGEMENT DEVELOPMENT PROGRAMME Project No: '96-73200-003 Project summary The aim of the project is to enhance the performance and management capacity- of the Public Service. The three year project will be implemented by the Department of Public Service and Adrninistration along with training institutions. The project will consist of training of public servants and technical assistance to the department with regard to training policy. Total amount committed (ECUs): Total amount disbursed (ECUs): 19m Nil • Financing decision made 07/96 • Financing Agreement (FA) signed 02/97 Project status The project is not yet underway. The long process of a pré-qualification tender is the main reason for this. The pré-qualification tender for a management unit is currently being evaluated. Conclusions The Commission will approve a shortlist and tender dossier for the second phase of the tender within the next three weeks. The workplan for JUPMET cannot be approved until one is received from SAMDI to ensure there are no overlaps. 24 H FINANCE TECHNICAL ASSISTANCE CONSULTANCY PROGRAMME Project No: '95-75070-007 Project summary The project provides a facility for the engagement of consultants and technical assistants to work on various aspects of the EPRD throughout the project cycle. The facility is managed by GTZ. Total amount committed (ECUs): Total amount disbursed (ECUs): 5m 241,000 • Financing decision made 06/95 • Financing Agreement signed 05/96 • Open tender launched 03/96 • Contract awarded to GTZ 12/96 • First installment made 12/96 Project status The project is underway and on track. S ADC FINANCE AND INVESTMENT RESEARCH PROGRAMME Project No: '96-73200-15 Project summary The project will consist of a major study on finance and investment in the SADC region. Total amount committed (ECUs): Total amount disbursed (ECUs): ' 1. 1m Nil • Financing decision made 12/96 • Financing Agreement signed 02/97 • Tender concluded • End of contract 02/98 Project status Negotiations with the company which will undertake the project have been concluded. Conclusion The Commission will sign the contract with the consultant in the coming days. •k-k-k ^ 25 Without prejudging the decisions to be made about appraising or financing future projects, which would be taken in the light of the priorities to be agreed in the MIP, the following partners also took part in the consultations to present their plans or proposals. 3. 2 Projects under appraisal The Department of Agriculture in the Free State Province reported to the meeting that a project preparation exercise had been undertaken early this year to identify possible EU support. A project, proposal for a small projects fund for community initiatives in economically viable and sustainable food and income generation activities is in its final stages of development. The Department of Labour reported on a project identification exercise undertaken by the Department and Commission which is nearing conclusion. The exercise had explored possible EU assistance for the development and implementation of government's training policy. The Department of Housing reported on progress regarding possible EU support for RDP Special Integrated Presidential Projects ('SIPPs') in Northern Province and Mpumalanga. A preliminary * pre-feasibility' study was undertaken at the end of last year. Terms of reference have been developed for a further study to review the proposals for EU support and to strengthen the capacity-building emphasis of the project. 3. 3 Other projects discussed The Department of Arts Culture Science and Technology informed the meeting of South African policy in the sector and of the various projects already identified by the Department. The meeting was informed that terms of reference for a study to explore possible EPRD support for Science and Technology had been forwarded to the Delegation via the Department of Finance. The representatives of both the Department and the Department of Finance pointed out that Science and Technology was a government priority and requested a response from the Commission regarding the proposed study at the earliest opportunity. The Department V Public Works has submitted terms of reference to the Delegation via the Department of Finance proposing a project preparation study to look at possible EU support for the restnicturing of the unit ir the department dealing with public works policy as well as possible management and training support. 772C Department of Finance has submitted a request to the Commission to explor~ the possibility of EU support for an initiative to bolster Financial Management in the Office of the Accountant General. The meeting was also informed that a proposal was being developed for support to Project Management in the Department of Finance. Discussions 26 H on these proposals would be held between the Department and the Delegation within the coming month. *o The Department of Transport had submitted a request to the Commission via the Department of Finance regarding support for a port management project in the SADC region to be organised by the International Maritime Organisation (IMO). The Commission responded that the request had not yet been received and noted that a proposal for a regional project would need to be submitted in liaison with the appropriate SADC structures. The Commission also mentioned that a major transport study in the region had recently been agreed to. The Department of Water Affairs and Forestry recalled to the meeting that they had submitted a request via the Department of Finance for the Commission to conduct a study into the Working for Water project. A response was expected from the Commission within the coming few weeks. The National Youth Commission based in the Office of the Deputy President informed the meeting of its plans to encourage the promotion of youth issues within the work of government. 4. SECTOR SUPPORT PROGRAMMES The Department of Finance recalled their earlier request for the Commission to consider assistance for targeted Sector Support Programmes in the areas of Health and Education. The Department said that in the period of major budgetary restructuring by government in both sectors, such sector support was a major priority of the government for EPRD assistance. The Department further recalled the discussions between Deputy Minister Gill Marcus and Acting Director General Philippe Soubestre on this subject at their meeting in February. The Department underlined the urgency of the request and asked the Commission to consider the deployment of a team of experts as soon as possible to appraise the proposal The Commission took note of the request and suggested the matter be referred to discussions of the MEP. 5. OVERALL CONCLUSION OF THE SESSION The session on project status provoked discussion on a number of issues. The conclusions of which are summarised below. • It was agreed that the issue of future programmes for support under the EPRD would be discussed in the context of the MTP. 27 ^r It was observed that a Department's ability to implement existing projects swiftly and successfully would be taking into account in decisions on future EPRD support. • The coherence of projects with government and departmental policy was essential to ensure successful and sustainable projects. The volume and diversity of projects being undertaken and those in the pipeline illustrated the need for a stronger focus and a system of processing government priorities was required. 6. OTHER MATTERS • The meeting agreed that annual consultations on the status of cooperation would take place in February of March. These consultations would review the status of projects and discuss policy and procedural issues related to the EPRD. A mid-term review would be held in September at a lower level and involve a review of only those projects in which discussion was required. Regular two-monthly meetings would be held between the Delegation and Department of Finance. • The meeting further agreed on channels of communication between the Commission and Government with regards to the EPRD. The Department of Finance would address all correspondence to the Head of Delegation. Correspondence between government and commission in regard to projects would be sent by the Department of Finance except where technical issues and operational matters of existing projects were concerned. In this case the Department responsible for the project would correspond directly with the Delegation with a copy to the Department of Finance. Signed on 18th April 1997 in Pretoria. Shaheed M Rajie For the Government of the Republic of South Africa Jean-Claude Boidin For the European Commissi'. 28 ^ ANNEX 1 LIST OF PARTICIPANTS European Commission European Commission, Brussels EC Delegation, Pretoria South African Delegation Department of Finance EU - Technical Assistant State Tender Board Department of Foreign Affairs Jean-Claude Boidin Olivier Ruyssen Ervvan Fouéré Robert De Vogelaere Abdoul-Aziz M'Baye Richard Zink Roberto Rensi Angelos Pangratis Janet Davies Pinky Mashigo Oda van der Kemp Tsepo Monaledi Logan Rangasamy Carlos Texeira Alfredo Perdiguero Peter Larsen Shaheed Rajie Adriaan Woudstra Israel Kidane-Mariam Seamus Jeffreson Jan Breytenbach Willem Bosnian Eh Bitzer Jim Paterson Laetitia Jackson Danie Meyer Rina-Louise Pretorius SA Mission, Brussels Sue Lund Pat Nkambule Department of Land Affairs 29 \3 Paul Zille Hennie van Rensburg Catherine Makwakwa Tsakani Mnisi Vanessa van Heerden Alicia Stevens Peter Ngobese Kariem Hoosain Kalinga Pelpola Ghaleep Jeppie Chris Madiba Daan Visser Chris Klopper CaarliiefLombard Richard Ndaba Sebolelo Nomvete Nohtha Linka Nick Taylor Rob Adam Marjorie Pyoos Nick Grobler Hannes Opperman Rodney Buttle, Lawson Naidoo Peter Du Plessis Peter van Straaten Gavin Bradshaw Piet Biesheuvel Johan Walhs Zinkle Mapumulo EU Technical Assistant Department of Health Department of Trade and Industry Truth and reconciliation Commission Department of Water Affairs Department of Education Joint Education Trust Department of Arts, Culture, Science and Technology Department of Minerals and Energy Eskom Parliament SA Police Service SA Police Service (Eastern Cape) Safety and Security (Eastern Cape) ODA technical assistant Department of Housing Department of Justice 30 5^ Precious Dlamini Nicolas Marcoux Patrick Lekala Ian Goldman Bongani More Elroy Africa Adrienne Bird Adri Friess Steve Mokoena EU Foundation for Human Rights Department of Agriculture, Free State Technical assistant Department of Public Works Department of Labour National Youth Commission 51 Annex VII MULTI-ANNUAL INDICATIVE PROGRAMME FRAMEWORK FOR COOPERATION BETWEEN THE REPUBLIC OF SOUTH AFRICA AND THE EUROPEAN COMMUNITY May 1997 <a i 1 MULTI-ANNUAL INDICATIVE PROGRAMME A FRAMEWORK FOR COOPERATION BETWEEN SOUTH AFRICA AND THE EUROPEAN COMMUNITY I. GENERAL FRAMEWORK 1. The Government of South Africa represented by Deputy Minister of Finance Ms. Gill Marcus, the European Commission represented by Mr. Philippe Soubestre, Director General for Development and the European Investment Bank represented by Mr. J u s t in Loasby held discussions in Cape Town on May 13, 1997 with a view to determining the general guidelines of cooperation between South Africa and the European Community. 2. During these discussions, the indicative programme of the Community aid to South Africa was drawn up in accordance with the cooperation Agreement signed between South Africa and the European Community in October 1994. 3. The representatives of the Government of South Africa and of the European Commission underlined that their cooperation is based on the following priorities, and that all the arrangements outlined in this programme will be inspired by them: • • Development and consolidation of democracy, and of the rule of law as well as respect for human rights and fundamental freedoms. Improvement in the standard of living as a contribution to poverty alleviation of previously disadvantaged communities through the development support programmes to basic social sectors in areas like health, education, water supply and sanitation. etc. • Sustainable economic and social development with particular emphasis in the development of human resources talcing into account questions of gender and environmental protection. • Promotion of the private sector development that will encourage the establishment of sustainable income generating activities to historically disadvantaged part of the population. S2> N-v- i Jtl| 4. These priorities will be implemented systematically on the basis of the Integrated Approach - The Project Management Cycle. 5. Within this general framework, the overall objective pursued through the cooperation under this Indicative Programme is redressing the inequalities inherited from the system of apartheid. As poverty and the inequalities are found predominantly in the ex- homelands, cooperation between South Africa and the European Commission will be primarily concentrated on the improvement of the living standards of the disadvantaged communities in these areas. In this context, particular emphasis will be given on the necessity of the improvement of the living condition of women. 6. As regards programmable financial cooperation with South Africa, the Community envisages an annual indicative financial envelope of about 125 million ECU for the period up to the end of 1999. 7. Furthermore, the European Investment Bank could contribute, from the resources which it manages, to the financing of productive investment projects in compliance with the criteria and Statute of the Bank. 8. The effectiveness of any development effort requires a stable macro- economic framework facilitating sustainable economic growth. The South African Government issued 'A Macro-Economic Strategy for Growth, Employment and Redistribution' (GEAR) in J u ne 1996. In the medium to long run, the Government commits itself to pursue the objectives of the Strategy which seeks to attain, among others, a competitive fast-growing economy. which creates sufficient jobs, a redistribution of income and opportunities in favour of the poor and a society in which sound health, education and other services are available to all. II. FOCAL AREAS OF COOPERATION The European Programme for Reconstruction and Development (EPRD) earmarks a reference financial amount of 500 Million ECU for the period from lsl J a n u a ry 1996 to 31st December 1999. Thus, the annual allocation for the EPRD for the period up to end of 1999 is about 125 Million ECU. This amount has to be committed every year for various agreed projects/programmes from within the focal areas. Considering the limited resources available for funding projects, it was agreed to identify focal areas of intervention on which the Commission's support will be concentrated. Focusing the EPRD support in a limited number of intervention areas will help avoid thinly spread activities. Such an approach will assist in targeting development assistance on impact-oriented priority si. K- 2 (M sectors of the Government which are coherent with the Government's overall development policies. ; The parties have agreed on the following areas of cooperation: , Focal Areas 1. Basic Social Services • Sector Support Program for Health & Education Total Indicative Programmable Allocation 50-60% Channels of Implementation (Indicative % Allocations) Government Agents of Decentralized Coop. 40-50% 100% • Other Activities 10-20% 50% 50% 2. Private Sector Development 3. Good Governance 15-20% 50% 50% and Democratization 15-20% 50% 50% Other Areas 4. Regional Cooperation 5. Unallocated +/-5% +/-5% 100% 50% 50% In implementing Government channeled programmes, opportunities to develop collaboration with agents of decentralized cooperation will duly be sought, and appropriate modalities to speed up effective delivery will be elaborated. The Multi-Annual Indicative Programme of the European Programme for Reconstruction and Development (EPRD) will also take into account h u m an resource development, gender issues and environmental protection as cross sectoral themes. Decentralized cooperation is a mechanism or an instrument used for implementation of part or whole of various programmes. Development programmes covered by decentralized cooperation shall be within the focal areas indicated above and shall be based on the RDP objectives and principles. Formulation of projects or SS" W â programmes will be designed in a manner that is coherent with the Government's sectoral policies and priorities. See chapter III. 1. BASIC SOCIAL SERVICES SECTOR 1. 1 Specific Objective The main objective of support to the basic social services sector is to contribute to an improvement in the standard of living of the poor in disadvantaged community areas. Interventions, are multi-dimensional and designed to contribute to the social transformation of the inherited inequalities. Particular emphasis will be given on 'sectoral support to education, training and health'. 1. 2 Sectoral Policies and the Government's Commitments The Government h as already given particular focus on the provision of basic social services development to the historically disadvantaged communities. This has been elaborated in the White Paper for Reconstruction and Development Programme (RDP). The Government is exerting maximum effort to ensure that proper mechanisms are in place to enhance convenient access to economic opportunities as well as easier access to health, education and to other social amenities. Taking account of the discrepancies inherited from the past, sectoral policies were drawn for health, education and training. A White Paper on water supply and sanitation was adopted stating that water supply is a h u m an right issue; and that due to the scarcity of quality water supply, it is to be given economic value. See Annex 2. The Government h as confirmed its commitment to the transformation of the social sector in favour of the disadvantaged communities by undertaking a reprioritisation of the national budget based on the objectives and principles envisaged in the RDP policy document. This would result in additional budgetary allocation for operation and maintenance of social infrastructures and basic social services. It will ensure that adequate financial and human resources will be provided in the education and health sectors to guarantee sustainability of agreed programmes/projects including coverage of recurrent expenditures. It will also review policy developments (including budgetary allocations) during annual consultations. St W- Support of the European Community Support of the Community in basic social services development will have as its goal improvement in the standard of living of the historically disadvantaged communities both in rural and urban areas. The programme will focus on key initiatives in support of primary education, further education and training and in primary health, HIV/AIDS and reproductive health. Complementary activities such as provision of water and basic sanitation, urban upgrading, access road may also be supported. The "sector support programmes" on health and education will provide financial resources to cover capital and equipment expenses related to the implementation of specific Government priority projects and programmes to be agreed upon after joint appraisal. In duly substantiated cases recurrent expenditures could be covered provided they are explicitly stipulated in the financing agreements. Questions related to gender and impact of the projects on environmental protection will receive special consideration during the project formulation stage and in the course of development of the various interventions. 2. Private Sector Support Specific Objective The primary objective of the private sector support is to encourage income generating and employment creation activities in favour of the previously disadvantaged part of the population in both the rural and urban areas. It will also take as its objective the enhancement of linkage opportunities of small and medium enterprises with the developed sectors of the economy. Sectoral Policies and the Government's Commitment The 'Macro-Economic Strategy' document of 1994 takes promotion of small and medium enterprise development as a key element for employment creation and income generation. It entails areas related to creating an enabling environment to investment, trade policy reform, including in enhancing productivity and competitiveness. The strategy also covers competition policy which introduces anti-trust legislation to create a more competitive and dynamic business environment. 53- p^ 5 It also stressed that due to the obstacles encountered in the past, the SMME sector is to receive particular attention. In order to address the issue, a White Paper was issued on small business promotion. Various programmes and institutions such as a business centre for small enterprises, a promotion agency to provide non-financial assistance, scheme for wholesale loans, loan guarantee schemes and a competitiveness fund for consultancy advice on technology and marketing have been established. financing Support of the European Community Support of the Community will primarily aim at SMMEs (small, medium and micro-enterprises) including possible linkages to developed parts of the economy. Promotion of linkages will reinforce new enterprises by activating resources (financial, services and training facilities. etc. ) of the former in favour of the latter. Assistance could entail business support in new ventures through outsourcing, increased competitiveness, the outcome of which would envisage increased sales and job creation. Within the private sector development, small scale farmers might be considered as potential target group for the EPRD support. SMME support will address gender issue by giving particular attention to the needs and aspiration of women who play a key role in many of the informal business activities. Particular attention will also be given to the role of the financial intermediaries such as the banks, NGOs and the like by encouraging and supporting them to offer their services to the disadvantaged population previously excluded from those services. Guarantee and indemnity schemes, technical and other targeted assistance to the public and private sector institutions and companies can provide through the participatory support schemes. Closer collaboration and partnership with chambers of commerce, business schools and with other professional organizations dealing with private sector development could be encouraged as well as funding of targeted vocational and managerial training. The contents of future programmes in these areas will take account of the experience gained in implementation of ongoing projects/ programmes. (5) h s «r. K- 6 m 3. Good Governance and Democratization Specific Objectives The main objective of the EPRD support to good governance is to enhance the effective and efficient management system of the national, provincial and local government administrations including that of strengthening the legislature (parliament) and the judiciary systems. The other objective of the support is to advance and deepen a transparent and accountable democratic system of Government with the active participation of the society. Programmes directed to local governments shall put emphasis on increasing their capacity to improve living conditions of their constituencies. Sectoral Policy and the Government's Commitment One of the major components of the RDP h as been its emphasis on capacity building of the provinces and local governments. Issues related to democratization, good governance and rule of the law are all well entrenched in the new constitution which underscores on the basic tenets of democracy which entail a non-racial and non-sexist society. The Department of Constitutional Affairs and Local Government has been established to strengthen the capacity of local governments to enable them to effectively r un the day-to-day administration in their localities and to ensure that they are capable of efficient delivery of services to their constituencies. The crime prevention strategy recently adopted is another major initiative taken by the Government which targets at rooting out the serious crime situation in the country. The Government will continue committing adequate budgetary allocations and h u m an resources in order to ensure sustainability of implementation of policies, in particular in crime prevention initiatives. Support of the Community • The Community will provide support in good governance related initiatives. The assistance will focus. on the restructuring and reorientation of public service, capacity building and establishment of appropriate management and information systems at national, provincial and local levels. • Special emphasis will be given to capacity building in departments (national and provincial), local governments, professional associations, NGOs. etc. involved in the S3 A~V 7 (M management of the focal areas of the EPRD. These will focus mainly in policy formulation, programming, budgeting and service delivery. Assistance to the legal system will address efficiency in the legal practice. The support will envisage restructuring of the judiciary system and training of judges and technical advisory services in specific areas as identified by the Government. Support to crime prevention initiatives and human right issues shall be part of the programme. In general the cooperation will aim at attaining a qualitative change in legal practice so that confidence in the legal system will prevail and that the rule of law in the country will be enhanced. 4. Regional Cooperation Specific Obfectives The primary objective of regional cooperation is to incorporate South Africa within the regional programmes being implemented through the Southern African Development Community (SADC). Government's Policy and Commitments The RDP White Paper and the Macro-Economic Strategy clearly stress the importance of regional cooperation. Both policy documents reiterate that growth and development within South Africa cannot be looked at in isolation from the regional development. As a result, South Africa has been nominated as a coordinator of the financial and investment portfolio of the SADC region. South Africa has already committed itself in the studies to be undertaken in the areas of regional investment and finance matters. Support of the Community The SADC and the Commission have agreed on the following focal areas: Infrastructure and Services Trade, Investment and Finance Food, Agriculture and Natural Resources SADC Secretariat for Capacity Building Other Activities. fc> o t. r^l. 8 Even though the modalities of cooperation will be elaborated in due course, the first two major sectors of the regional programmes represent the focal areas of concentration. Programmes falling under food, agriculture and natural resources; and capacity building of the SADC secretariat will be supplementary support programmes. 5. Cooperation Outside of the Focal Areas Unallocated resources referred to in page 3 may be used to finance limited activities (e. g. preparatory studies and pilot programmes) of common interest. Support to science and technology will be addressed from this resource allocation. Appropriate resources will also be earmarked to reinforce the capacities of the NAO and the Commission services for the appraisal, monitoring, implementation, evaluation and ensuring adequate visibility in the public of the above mentioned activities. 6. Horizontal Themes: Human Resource Development, Gender and Environmental Protection Programmes that will be developed within the focal areas will have cross-sectoral support dimensions translated into practice through three horizontal themes - human resource development, gender and environmental protection. Human resource development is an important element in the EPRD initiatives. Attention will be given to training and technical assistance related to capacity building and institutional development. In addition, the support will address entrepreneurial, technical and vocational training. The latter initiative will have a strong emphasis on training and advisory services on job creation in both formal and informal sectors particularly benefiting the youth and women, Gender sensitivity assessment has crucial implications for achievement of all development objectives. Gender analysis should, therefore, be addressed in the conception, design and implementation of all development policies and interventions as well as in monitoring and evaluation stages. Environmental protection and preservation are key factors in all development initiatives. The primary reasons for performing environmental assessment, which include socio-cultural elements, are to improve, the quality of projects and their sustainability through direct discussions with stake-holders and C\ beneficiaries. Development programmes financed under the EPRD, need to take account of environmental consideration at all phases of the ^project management cycle'. III. DECENTRALIZED COOPERATION Decentralized cooperation is an instrument for implementation of development projects or programmes at local and grass root levels. A minimum of 25% of programmable resources will be allocated for implementation through agents of decentralized cooperation. Agents of decentralized cooperation mainly cover decentralized public authorities, rural and village groups, cooperative, trade unions, teaching and research institutions, NGOs, other associations including professional and business associations, groups and agents which are able and wish to contribute to the development of the country on their own initiatives, providing that the agents and/or the operations are non-profit making. The historical involvement of civil society in the evolution of the present day South Africa has resulted to the widespread presence of agents of decentralized cooperation'. These partners have, in general, proven to be an effective instrument for implementation of grass root developments. Moreover, they have often shown efficiency in delivery of services. The support given to programmes being implemented through decentralized cooperation mechanism will, however, be within the focal areas. stipulated above, i. e. , basic social services, private sector development, and good governance and democratization. Identification, preparation of projects and signing of agreements with agents of decentralized cooperation will be handled by the EU Commission. The implementing agencies will be accountable to the Commission. However, copies of the agreements and progress reports on implementation of projects/programmes will be submitted to the Department of Finance on a regular basis. IV. EIB INTERVENTION The EIB loans can be made available to borrowers in the public and private sectors. The support will focus on long-term investment projects which will enhance and be coherent with the RDP principles and objectives. In line with the Bank's normal requirement, projects have to be evaluated against financial and economic viability and should be technically feasible taking into account the environmental implications. i~L k-^- 10 V. MODALITIES OF PROGRAMME PREPARATION, IMPLEMENTATION, MONITORING AND EVALUATION Appropriate qualitative exercise will be emphasized during the identification and formulation (appraisal) phases of the project cycle following the logical framework approach. The financing proposals emanating from the project formulation documents will result in preparing the financing agreements. Attention will be given to regular follow-up and monitoring of project implementation. Ongoing and ex-post evaluation of the programmes will receive due attention. The Government of South Africa will appoint a National Authorizing Officer (NAO). The NAO will designate an appropriate official in the Department of Finance to act as Deputy National Authorizing Officer to handle day-to-day. activities related to EU development assistance. The status of non-national technical assistants and their dependents with regard to exemption from customs duties, income taxes, residence and work permits, imports of personal effects, open and management of bank accounts, arrest and detention and settlement of disputes and other relevant matters will be addressed by exchange of letters between the Department of Finance and the European Commission. The implementation of the EPRD projects will be supported with technical assistance experts. The specialists will be expected to play an important role in expediting the tasks related to fulfillment of the project management cycle. In the course of their duties, the transfer of skills and capacity building to their counterparts will be ensured. In order to attain maximum coordination, coherence and complimentarity of programmes; an effective mechanism of consultation with other donors, in particular with the EU member states, will be undertaken. The Community's annual allocation for South Africa will be decided by the end of each year in the framework of its budgetary procedure. In order to speed up. the implementation process, the South African Government will identify specific government executed projects for the subsequent year latest at the beginning of the last quarter of each year. The project ideas will be discussed and elaborated with the EU Delegation during the last quarter of the year. The implementation of the projects being drawn from the multi- annual indicative programme begins with the signing of the financing agreements for the specific projects. Implementing agencies arc required to have approved annual work plans and Q have to submit regular reports as stipulated in the respective financing agreements. The Annual consultation will take place tentatively in February/March of each year. It will review the status of implementation of the various project/programmes. The Annual Consultation will also address ongoing policies including budgetary issues within the focal sectors. Furthermore, it will elaborate projects and programmes to be committed for the ensuing year. There will be a mid-term review tentatively in September or October of each year which will review implementation constraints and programming of uncommitted funds. Besides regular follow up and monitoring mechanism will be established between the Department of Finance and the EU Delegation on a monthly basis. The tendering system will be transparent and shall be open, fair, cost effective and competitive. It will be implemented according to the relevant EC regulations (i. e. Financial regulation applicable to the European Communities General Budget; Council regulation (EC) 2259/96 of 22 Nov. 1996 on Development with South Africa). The closing dates and times for the invitation of tenders will be coordinated by the Commission in conjunction with the appropriate state authority. The Multi-Annual Indicative Programme will enter into effect six weeks upon signature by the South African Government and the European Commission, unless one party advises the other to the contrary within this period. At the request of one of the parties and when the circumstances do justify, there may be a review of the agreed indicative sectoral allocations a n d / or other provisions of the present Multi-Annual Indicative Programme. Done in Cape Town, Republic of South Africa, on the fourteenth day of May 1997, in three originals. For the Government of South Africa Fof the Commission 1 of the European Communities Of 12 MEMORANDUM OF UNDERSTANDING Annex 1 SUPPORT OF THE EUROPEAN INVESTMENT BANK TO THE REPUBLIC OF SOUTH AFRICA TOWARDS THE IMPLEMENTATION OF DEVELOPMENT COOPERATION With reference to Section 1/7 and Section IV of the Multi-Annual Indicative Programme (Framework of Cooperation between South Africa and the European Community), the European Investment Bank (the "Bank") could contribute to the of productive projects and programmes - or other investments aimed at promoting the private and public sectors - in particular in industry (including agro-industry), commercial agriculture, tourism, mining, energy, water and sewerage, transport and telecommunications, as well as other services linked to these sectors. financing The determination of the amounts and the conditions for the financing of the projects will depend on the results of a detailed appraisal of every project, carried out in compliance with the procedures of the Bank. The ceiling amount to be made available by the Bank under the - two Framework Agreements is 675 (300 + 375) MECU for the period to end 1999. The Bank takes note of the intention of the Government of South Africa to submit proposals to the Bank, or to authorize that proposals be submitted to it, for financial assistance in the following areas: • Assistance to the small and medium scale enterprise sector through approved financial intermediaries or through government; • Investment in infrastructure (e. g. electricity, water and telecommunications); and • Development of operations in the industry (including the agro-industry), mining, tourism,transport sectors. With respect to the financing by the Bank in South Africa, both parties undertake that operations from the Bank's own resources, whether made directly or through intermediaries, will be in accordance with the provisions as stipulated in the Framework U Gi 13 Agreements for financial cooperation between the Government of the Republic of South Africa and the Bank, the first as signed on 12 September 1995, and the second to be signed in the second half of 1997. During April 1997, consultations on the second Framework Agreement for financial cooperation between the Republic of South Africa and the European Investment Bank commenced. The Bank draws attention to the fact that this programme could be suspended in the event that the Government of the Republic South Africa were to fall into arrears in its obligations to the Bank. Signed in Cape Town, Republic of South Africa, on May 2, 1997. wÀ. Mfff^ On behalf of the Government Republic of South Africa On behalf of the of the European Investment Bank 4 14 BASIC GOVERNMENT POLICIES 1. The Reconstruction and Development Programme (RDP) ANNEX 2 Following the democratic election in April 1994, a White Paper on Reconstruction and Development was issued in November 1994. The White paper is a policy framework for integrated and coherent socio-economic progress and transformation of South Africa. It is a basic policy document which addresses key areas of interventions in order to redress the political and socio economic imbalances of the apartheid legacy. The RDP h as the following six basic principles: a) Integrated and sustainable development b) People-driven in the process of meeting the needs with maximum transparency and inclusivity c) Peace and security d) Nation building e) Meeting basic needs and building infrastructure f) Democratization The RDP policy document refers to the following five key programmes: a) Meeting Basic Needs:-- This include job creation, land and agrarian reform, housing, water and sanitation, energy supplies, health care and nutrition. etc. b) Developing Human Resources:- The key government support area is transformation of the educational and training system c) Building the Economy:- It highlights issues related to barriers to growth and investment such as government dissaving, capital outflows, low exports, high import propensity and low productivity. The close economic relationship with the neighbouring countries and the need to develop a comprehensive strategy are emphasized. d) Democratizing the state and society e) Implementing the RDP. The economic policy framework of the RDP White Paper highlights the creation of a strong, dynamic and balanced economy which will; a) create jobs in both formal and informal sectors Ctt b) alleviate poverty, low wages and extreme inequalities inherited from the apartheid system c) address economic imbalances and structural problems in the various sectors d) integrate into the world economy by raising the efficiency of the manufacturing capacity and increase country's export potential e) address uneven development within the region f) ensure that no one suffers from discrimination in hiring, promotion or training on the basis of race or gender g) develop the human resource capacity h) democratize the economy and empower the historically disadvantaged. In order to achieve the RDP objectives, the Government stressed on the following basic economic development strategy: a) Financial and monetary discipline b) Establishment of a conducive environment for economic growth. c) Trade and industry policies designed to foster a greater outward orientation. d) Modernization of human resource programmes e) Reform of the labour market institutions to facilitate fair and equitable collective bargaining. A MACRO-ECONOMIC STRATEGY: Growth, Employment and Redistribution The macro-economic strategy stresses that the prevailing 3% economic growth per a n n um will not reverse the unemployment situation. It will also provide inadequate resources for the necessary expansion of in social service delivery. The economy should grow by 6% per year and 400,000 jobs per a n n um in order to reduce unemployment and improve the living standard for all. In order to attain higher economic growth and significant job creation without undermining the macro-economic stability, the Government strategy is design to entail: a) A competitive platform for export growth; b) A stable environment for a surge in private investment; c) Restructuring public services and government capital expenditure; d) New emphasis in industrial and infrastructural development; e) Greater labour market flexibility; &r 16 f] Enhanced human resource development The macro-economic package envisages the following elements: a) A faster fiscal deficit reduction programme to contain debt service obligations, counter inflation and free resources for investment; b) A renewed focus on budget reform to strengthen the redistribution thrust of expenditure; c) An exchange rate policy to keep the real effective rate stable at a competitive level, d) A consistent monetary policy to prevent a resurgence of inflation; e) Further steps in the gradual relaxation of exchange controls; f) Speeding up the restructuring of state assets; g) Tax incentives to stimulate new investment in competitive and labour absorbing projects; h) Expansion of infrastructure programmes that will address service deficiencies and backlogs; The long term vision of the macro-economic strategy will be: a) A competitive fast growing economy which creates sufficient jobs for all work-seekers, b) A redistribution of income and opportunities in favour of the poor, c) A society in which sound health, education and other services are available to all, and d) An environment in which homes are secure and places of work are productive. II. SECTORAL POLICIES 1. Education The educational system under apartheid era was organized in a complex hierarchy of separate racial and ethnic departments and services. Funding of education and training had been grossly unequal across the racial ethnic sub-systems. These discriminatory provisions resulted to huge disparities in physical, professional services and teaching quality. Majority of the black population had little access to education and training. As a result of unequal access to education, huge inequalities in skills and competence in the nation's labour force along racial and ethnic line developed. Consequently, there have been unequal opportunities in employment. ^ 17 The constitution guarantees equal access to basic education for all. The policy of the Government stipulated that education and training are basic human rights. The need to overhaul the learning programmes or curricula have been highlighted in the White Paper. Special attention has been given to student recovery programme in science and mathematics. The White Paper on Reconstruction and Development Programme (RDP) took human resource development as one of the key programmes. A White Paper on Education and Training was issued in March 1995. The policy on education specified that state resources are deployed according to the principles of equity so that the same quality of learning opportunities for all citizens will be established. The rehabilitation of the schools and colleges is to go hand in hand with gradual transfer of ownership of these institutions to the communities. National Qualification Framework (NQF) has been put in place to ensure that standard quality of education is maintained. Adult Basic Education and Training:- Specially the black adult population, had no schooling or inadequate schooling in the past. The Department of Education views adult education and training as a driving force for social change and economic development. Early Childhood Development:- Early childhood education is taken as a starting point of a national human resource development strategy. As it is a multi-disciplinary field, the need for closer cooperation with the Departments of Health and Welfare is recognized. Further Education and Training: According to the Government, the key to a successful integrated approach to education and training lies at the post compulsory phase of education. Higher Education or Tertiary education: The government acknowledges that higher education represents a major source for national development. The Government has approved the appointment of a National Commission on Higher Education. The Commission has started its work. The White Paper on Education and Training has delineated the national and provincial powers in education and training. Substantial powers have been vested in the provincial legislatures and governments to run educational affairs other than the universities and technikons which are subject to a national policy framework. -9-0 2. Health Following the democratic election in April 1994, the Government has given special emphasis to strengthen of and improve access to primary health services. The budget allocation for non- hospital primary care services has gone up to 19% in 1995/96 as compared to 11% of total public sector health expenditure in 1992/93. A Medium Term Expenditure Framework has been adopted to guide the relative redistribution of resources towards primary health care. In 1994 health care for children under 6 and pregnant women has been declared to be free. In April 1996, the Government announced access to free health care to all groups of patients at primary health care clinics. The key area in health sector transformation has been the District Health System. It is considered as a vehicle for the provision of the comprehensive primary health care. 3. Water Supply and Sanitation The Water Supply and Sanitation Policy document was issued in November 1994. Provision of water supply and sanitation have been targeted objectives as part of the fulfillment of basic needs stipulated in the Reconstruction and Development Programme. The lack of basic services such as. water supply and sanitation is one of the major symptoms of poverty and underdevelopment. The following eight principles have been established in the Water Supply and Sanitation Policy: a) Water supply development should be demand driven and community based, b) Basic water supply services are human rights c) Some for 'all' rather 'all' for some d) Equitable regional allocation of development resources, e) Water has economic value, f) The user pays, g) Water supply being part of the integrated development of the country, h) Environmental integrity. * }wu- 19 5. Private Sector Development The Government has elaborated policy statements on both the RDP policy paper and the 'Macro-Economic Strategy' of 1996. The RDP White paper covers a wide range of policy issues related to private sector development. It entails areas related to creating an enabling environment to investment; trade policy reform in areas like enhancing productivity and competitiveness. It also covers competition policy which introduces anti-trust legislation to create a more competitive and dynamic business environment. This policy ensures that efficient participation of small and medium enterprises are not jeopardized by anti-competitive nature of operation by developed business entities. The Government has committed itself to the support of smail and medium enterprise development. The key areas of support to this sub-sector includes the following: Access to advice and training Access to marketing Access to finance Access to infrastructure and premises Access to appropriate technology Encouraging inter-firm linkages The 'Macro-Economic Strategy also gives special emphasis to private sector development. Various institutions were established to support small and medium enterprises. Small business centre has been constituted in the Department of Trade and Industry. A promotion agency has been set up to support non-financial assistance; an enterprise to handle wholesale loans; an agency for credit guarantee schemes and special support for pre-shipment export finance guarantee and access to working capital. Competitive fund for consultancy advice on technology and marketing has been established. In order to support the small and medium enterprise development and give legal basis for the establishment of the above enterpreneurial development institutions; a National Sniall Business Enabling Act (Notice 1304 of 1995) was issued. ?2~ 20 GUIDING PRINCIPLES FOR DECENTRALIZED COOPERATION ANNEX 3 1. Background in South Africa supporting development The European Union has been initiatives non-government organisations since 1986. Since the start of EU cooperation with the Government in 1994, support under the EPRD has been composed of a combination of support for government projects and support for non-governmental organisations - NGOs. through The European Commission has recently launched a study into the issue of-decentralised cooperation. This process is aimed at identifying potential 'agents' of decentralised cooperation and at examining ways in which this type of development assistance might best be implemented. 2. Definition of'decentralised cooperation' 'Decentralised cooperation' is an approach to development which gives 'decentralised agents'1 of development a key role in the conception and management of development projects. The approach must be participatory, bottom up, unambiguously focusing on the final beneficiaries and on the identification by them of their needs and requests. The role of the central authorities and the Commission is limited to monitoring and being kept informed, having agreed to the modalities of this instrument of support. 3. Objectives this to speed up type of cooperation The aim of implementation of development projects under the EPRD and benefit the particular capabilities, innovative operating methods and resources of the agents of decentralised cooperation. i. s 1 The fourth Lome Convention refers to 'agents of decentralised cooperation' as; decentralised public authorities, rural and village groups, cooperatives, trades unions, teaching and research institutions, non-governmental development organisations, other associations, groups and agents which are able and wish to contribute to the development of the Country on their own initiative, providing that the agents and/or the operations arc non-profit-making. Jl 21 li Guiding principles of decentralised cooperation under the EPRD. An indicative proportion of 25% of the resources available under the EPRD will be devoted to decentralised cooperation. The precise modalities of how this element of the EPRD will be implemented will be agreed by the South African Government and European Commission at a the completion of the study into decentralised cooperation. The following three guiding principles have been agreed by the Government and Commission regarding the implementation of decentralised cooperation; later stage following • The actions will be within the three focal sectors agreed in the MIP. • Appropriate reporting mechanisms will be developed. • Actions cooperation should be coherent with initiatives being implemented within the rest of the EPRD. through decentralised funded >V 22 ISSN 0254-1491 COM(98) 502 final DOCUMENTS FR 11 01 N° de catalogue : CB-CO-98-509-FR-C ISBN 92-78-38794-0 Office des publications officielles des Communautés européennes L-2985 Luxembourg JS