Common use of Nature of Financing Clause in Contracts

Nature of Financing. 1. The nature of financing shall, inter alia, include: (a) projects and programmes; (b) credit lines, guarantee schemes and equity participation; (c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments; (d) the human and material resources necessary for effective administration and supervision of projects and programmes; (e) sectoral and general import support programmes which may take the form of: (i) sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services; (ii) sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and (iii) general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products. 2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where: (a) public expenditure management is sufficiently transparent, accountable and effective; (b) well defined macroeconomic or sectoral policies established by the country itself and agreed to by its main donors are in place; and (c) public procurement is open and transparent. 3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects. 4. The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs. 5. In the framework of the Agreement, the European Development Fund (hereinafter referred to as the Fund) including counterpart funds, unexpended balance from previous Funds, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate resources drawn from the European Community’s budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement. 6. The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing. TITLE II FINANCIAL COOPERATION CHAPTER 1 FINANCIAL RESOURCES

Nature of Financing. 1. The nature of financing shall, inter alia, include: (a) projects and programmes; (b) credit lines, guarantee schemes and equity participation; (c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments; (d) the human and material resources necessary for effective administration and supervision of projects and programmes; (e) sectoral and general import support programmes which may take the form of: (i) sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services; (ii) sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and (iii) general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products. 2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where: (a) well-defined poverty-focused national or sector development strategies are in place or under implementation; (b) well-defined stability-oriented macroeconomic policy established by the country itself and positively assessed by its main donors, including where relevant the international financial institutions, is in place or under implementation; and (c) public expenditure financial management is sufficiently transparent, accountable and effective; (b) well defined macroeconomic or sectoral policies established by the country itself and agreed to by its main donors are in place; and (c) public procurement is open and transparent. 3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects. 4. The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs. 5. In the framework of the Agreement, the European Development Fund (hereinafter referred to as funds earmarked under the Fund) including counterpart funds, unexpended balance from previous Fundsmulti-annual financial framework of cooperation under this Agreement, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate other resources drawn from the European Community’s budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement. 6. The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing. financing TITLE II FINANCIAL COOPERATION CHAPTER 1 FINANCIAL RESOURCESCOOPERATION‌

Nature of Financing. 1. The nature of financing shall, inter alia, include: (a) projects and programmes; (b) credit lines, guarantee schemes and equity participation; (c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments; (d) the human and material resources necessary for effective administration and supervision of projects and programmes; (e) sectoral and general import support programmes which may take the form of: (i) sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services; (ii) sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and (iii) general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products. 2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where: (a) well-defined poverty-focused national or sector development strategies are in place or under implementation; (b) well-defined stability-oriented macroeconomic policy established by the country itself and positively assessed by its main donors, including where relevant the international financial institutions, is in place or under implementation; and (c) public expenditure financial management is sufficiently transparent, accountable and effective; (b) well defined macroeconomic or sectoral policies established by the country itself and agreed to by its main donors are in place; and (c) public procurement is open and transparent. 3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects. 4. The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs. 5. In the framework of the Agreement, the European Development Fund (hereinafter referred to as funds earmarked under the Fund) including counterpart funds, unexpended balance from previous Fundsmulti-annual financial framework of cooperation under this Agreement, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate other resources drawn from the European Community’s budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement. 6. The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing. TITLE II FINANCIAL COOPERATION CHAPTER 1 FINANCIAL RESOURCES

Nature of Financing. 1. The nature of financing shall, inter alia, include: (a) projects and programmes; (b) credit lines, guarantee schemes and equity participation; (c) budgetary support, either directly, for the ACP States whose currencies are convertible and freely transferable, or indirectly, from counterparts funds generated by the various Community instruments; (d) the human and material resources necessary for effective administration and supervision of projects and programmes; (e) sectoral and general import support programmes which may take the form of: (i) sectoral import programmes through direct procurement including financing of inputs in the productive system and supplies to improve social services; (ii) sectoral import programmes in the form of foreign exchange released in instalments for financing sectoral imports; and (iii) general import programmes in the form of foreign exchange released in instalments for financing general imports covering a wide range of products. 2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where: (a) public expenditure management is sufficiently transparent, accountable and effective; (b) well defined macroeconomic or sectoral policies established by the country itself and agreed to by its main donors are in place; and (c) public procurement is open and transparent. 3. Similar direct budgetary assistance shall be granted gradually to sectoral policies in substitution for individual projects. 4. The instruments of import programmes or budgetary support defined above can also be used to support eligible ACP States implementing reforms aimed at intra-regional economic liberalisation which generate net transitional costs. 5. In the framework of the Agreement, the European Development Fund (hereinafter referred to as the Fund) including counterpart funds, unexpended balance from previous Funds, own resources of the European Investment Bank (hereinafter referred to as the Bank) and where appropriate resources drawn from the European Community’s 's budget, shall be used to finance projects, programmes and other forms of operations contributing to the achievement of the objectives of this Agreement. 6. The funds provided under the Agreement may be used to cover the total costs of both the local and foreign expenditure of projects and programmes, including recurrent cost financing. TITLE II FINANCIAL COOPERATION CHAPTER 1 FINANCIAL RESOURCESCOOPERATION 1. For the purposes set out in this Agreement, the overall amount of the Community's financial assistance and the detailed terms and conditions of financing are provided for in the Annexes to this Agreement. 2. Should an ACP State fail to ratify this Agreement or denounce it, the Parties shall adjust the amounts of the resources provided for in the Financial Protocol set out in Annex I. Adjustment of the financial resources shall also apply upon: (a) the accession to the Agreement of new ACP States which did not take part in its negotiation; and (b) the enlargement of the Community.