Agreement on a Five Year Development Cooperation Programme

AGREEMENT ON A FIVE YEAR DEVELOPMENT COOPERATION PROGRAMME

2002-2006

between

THE GOVERNMENT OF THE REPUBLIC OF BULGARIA

THE GOVERNMENT OF THE HELLENIC REPUBLIC

The Government of the Republic of Bulgaria and the Government of the Hellenic Republic hereafter referred to as “the Parties”,

Taking into consideration the guidelines of the OECD’s Development Assistance Committee (DAC),

Recalling the cooperative relationship between the European Union and the states of the region and the existing framework agreements,

Reaffirming the efforts of the international community in the area,

Noting that the Hellenic Republic has formulated and is ready to implement a five-year comprehensive development plan, which, complemented by international organisations, financial institutions and other bilateral donors, aims at the reconstruction and transition of recipient Balkan countries towards mutually agreed development goals,

Reiterating the importance of a regional development approach aiming at contributing to peace, security, prosperity and stability in the region,

Having in mind that the Republic of Bulgaria and the Hellenic Republic are eager to enter into an advanced contractual relationship, based on partnership and transparency, coupled with a development assistance programme; that the objectives of the present programme aim at contributing to the economic development and European orientation of the Republic of Bulgaria,

Have agreed as follows: ARTICLE 1

Objectives

The target areas of this development assistance programme are the following:

(a) Modernisation of infrastructures, particularly in the energy and transportation sectors, (b) Promotion of productive investments, (c) Modernisation of public administration and self-government, (d) Support of democratic institutions / cooperation of Parliaments, (e) Support to the rule of law and the welfare state, (f) Addressing economic inequalities, (g) Support to education and vocational training, to the administrative and scientific potential.

All projects related to the above mentioned target areas shall be incrementally integrated into Annex B of this Agreement upon approval by the Greek side. Annex B forms an integral part of this Agreement.

ARTICLE 2

Allocation of development funds

(a) The development assistance by the Hellenic Republic to the Republic of Bulgaria, by virtue of the present Agreement, amounts to fifty four million two hundred ninety thousand euro (€ 54,290,000) for a five year period (2002-2006). The above amount will be allocated on an annual basis, in accordance with the present bilateral framework programme.

(b) Of the total amount, twenty per cent (20%) will be allocated by the Hellenic Ministry of Economy and Finance to private productive investments in the Republic of Bulgaria, which meet the objectives of this Agreement. Relevant applications could be submitted as of July 1st, 2002.

(c) One of the main objectives of the bilateral assistance for the reconstruction process, economic, social, institutional and environmental in the Republic of Bulgaria is complementary to the overall development programmes of the European Union, international financial institutions and bilateral donors. The regional impact of the development assistance shall also be taken into consideration.

ARTICLE 3

Evaluation and monitoring procedures

The two Parties agree on an evaluation and monitoring procedure for the above development assistance.

In this context, the overall responsibility for the monitoring and evaluation of the development assistance in the recipient Party is entrusted to the National Coordinator for the Implementation of the Hellenic Plan for the Economic Re-construction of the Balkans, hereafter called the HiPERB.

The modalities are provided for in the Annex (A), which constitutes an integral part of this Agreement. ARTICLE 4

Joint Management Committee

A Joint Management Committee shall be established for the management and implementation of the development assistance programme.

Modalities concerning the composition, competence and functioning of the Joint Management Committee are provided for in Annex (A) to the present Agreement.

ARTICLE 5

Compatibility with European Community Policies

In applying this Agreement, the Hellenic Republic shall respect its obligations arising from its membership to the European Union.

Projects and activities financed under the development assistance programme shall comply with European Community policies, including those concerning environmental protection, gender equality, transport, TransEuropean Networks (TREN), competition, as well as public procurement.

The HiPERB Monitoring Committee shall ensure coordination and coherence among projects financed under this Programme.

ARTICLE 6

Coherence and Synergy with other donors

Both Parties agree that other countries or international organisations and institutions of regional cooperation may participate to the financing support for the implementation expenditure of projects and activities under this Programme.

The co-financed expenditure concerns clearly visible parts. The accumulation of financial support under the HiPERB and other financing sources shall not exceed 90% of the cost of the project.

ARTICLE 7

Impediments and Overpowering Circumstances (force major)

In case of impediments to the implementation of this Agreement due to overpowering circumstances, recognised by the Parties, in practice (such as war, civil unrest or natural disasters) or in case of peril, the following provisions shall apply: (a) In case the duration of the impediment to the implementation of this Agreement is less than 24 (twenty-four) months, the use of the funds for the implementation of the activities shall be suspended. Funding shall resume again, once the impediment has been overcome. (b) In case the duration of the impediment to the implementation of this Agreement is more than twenty-four (24) months, the Parties shall hold discussions on the continuation of this Agreement. The residual funds shall be used only after an agreement has been reached between the two Parties.

Independently of the above, the Parties, in any event which may hamper the realisation of the objectives, for which this assistance has been provided for, or the fulfilment of the obligations established by this Agreement, shall take any action which may be necessary for the best use of this assistance. ARTICLE 8

Denunciation or Suspension

This Agreement may be denounced or suspended at any time after due notification to the other Party. The denunciation shall come into effect in the following circumstances: (a) Breach by one of the Parties of the terms and conditions of this Agreement, particularly in the case of prolonged and unjustified delays in the completion of the activities foreseen by this Agreement, as well as severe mismanagement of the funds. (b) Adverse developments, which seriously hamper the realisation of this Agreement’s objectives.

ARTICLE 9

Settlement of disputes

Disputes arising with respect to the implementation and/or the application of this Agreement shall be settled through diplomatic channels.

ARTICLE 10

Amendments

The Parties may amend this Agreement through an exchange of Notes. Any such amendment shall enter into force according to the procedure set forth in Article 11.

ARTICLE 11

Entry into force

This Agreement shall enter into force upon receipt of the last written notification, through diplomatic channels, of the fulfilment of both parties’ internal procedures.

In witness thereof, the undersigned, duly authorised by their respective Governments, have signed this Agreement.

Done in Sofia, on August 28th 2002, in two (2) original copies, written in English, both texts being equally authentic.

For the Government of the For the Government of the Republic of Bulgaria Hellenic Republic

Milen Keremedchiev Andreas Loverdos Deputy Minister of Economy Deputy Minister for Foreign Affairs