1.   For the purposes of this Regulation, references to the applicable provisions of Regulation (EU, Euratom) 2018/1046 shall not include procedural provisions which are not relevant to the 11th EDF.

2.   Internal references in Regulation (EU, Euratom) 2018/1046 shall not render the provisions referred to indirectly applicable to the 11th EDF.

3.   Specific references in this Regulation to the provisions of Regulation (EU, Euratom) 2018/1046 are understood to be dynamic references, which include the subsequent amendments to those provisions.

4.   The Commission Decision on the Internal Rules on the implementation of the general budget of the European Union (European Commission section) for the attention of the Commission departments shall apply to the 11th EDF mutatis mutandis.

1.   The definitions set out in Article 2 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   For the purposes of this Regulation, the following terms in Regulation (EU, Euratom) 2018/1046 shall be construed as follows:

3.   Articles 4 and 5 of Regulation (EU, Euratom) 2018/1046 shall apply.

1.   Article 20 of Regulation (EU, Euratom) 2018/1046 shall apply. Without prejudice to Article 8 of this Regulation, total revenue shall cover total estimated payments.

2.   The revenue referred to in point (c) of Article 8(2) of this Regulation shall automatically decrease payments made against the commitment from which it was generated.

3.   The Union may not raise loans within the framework of the 11th EDF.

1.   Assigned revenue shall be earmarked to finance-specific items of expenditure.

2.   The following shall constitute assigned revenue:

3.   Assigned revenue referred to in points (a) and (b) of paragraph 2 shall finance such items of expenditure as determined by the donor, provided that it is accepted by the Commission.

Assigned revenue referred to in points (d) and (e) of paragraph 2 shall finance items of expenditure similar to those from which it was generated.

4.   Articles 25, 26 and 27 of Regulation (EU, Euratom) 2018/1046 shall apply. Acceptance of a donation shall be subject to the authorisation of the Council.

5.   The 11th EDF resources corresponding to assigned revenue shall be made available automatically when that revenue has been received by the Commission. However, an estimate of amounts receivable shall have the effect of making 11th EDF resources available in the case of assigned revenue referred to in point (a) of paragraph 2 where the agreement with the Member State is expressed in euros; in such cases, payments may be carried out against such revenue only when it has been received.

1.   11th EDF resources shall be earmarked for specific purposes per ACP State or OCTs and in accordance with the main instruments of cooperation.

2.   In respect of the ACP States, the main instruments of cooperation are laid down by the financial protocol set out in Annex Ic to the ACP-EU Partnership Agreement. The earmarking of resources (indicative allocations) shall also be based on the Internal Agreement and Regulation (EU) 2015/322 and shall take account of the resources reserved for support expenditure linked to programming and implementation under Article 6 of the Internal Agreement.

3.   In respect of the OCTs, the main instruments of cooperation are laid down in Part Four of Decision 2013/755/EU and Annex II thereto. The earmarking of those resources shall also take into account the non-allocated reserve provided for in Article 3(3) of that Annex and the resources for studies or technical assistance measures under point (c) of Article 1(1) thereof.

1.   Article 37(1) and Article 38 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   The annual statement of the commitments, payments and the annual amount of calls for contributions under Article 7 of the Internal Agreement shall be published in the Official Journal of the European Union.

3.   For the purpose of Article 38(2) of Regulation (EU, Euratom) 2018/1046, the term ‘locality’ shall mean, where necessary, the equivalent to the region on NUTS 2 level when the recipient is a natural person.

1.   Article 57, Article 59(2) and (3) and Articles 60 and 61 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   The Commission shall assume the responsibilities of the Union as referred to in Article 57 of the ACP-EU Partnership Agreement and in Decision 2013/755/EU. To that end, it shall implement the revenue and expenditure of the 11th EDF in accordance with the provisions of this Part and Part Three of this Regulation, under its own responsibility and within the limits of the 11th EDF resources.

3.   The Member States shall cooperate with the Commission so that the 11th EDF resources are used in accordance with the principle of sound financial management and performance.

1.   Articles 72 to 76 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   Articles 90 to 95 of Regulation (EU, Euratom) 2018/1046 concerning the liability of the financial actors shall apply.

1.   The annual activity report referred to in Article 74(9) of Regulation (EU, Euratom) 2018/1046 shall include, in an annex, tables showing by allocation, country, territory, region or sub-region, the total commitments, assigned funds and payments effected during the financial year and aggregate totals since the opening of the respective EDF.

2.   Where the responsible authorising officer of the Commission becomes aware of problems in carrying out procedures relating to the management of 11th EDF resources, he or she shall, in conjunction with the appointed national, regional, intra-ACP or territorial authorising officer, make all contacts necessary to remedy the situation and take any steps that are necessary. In cases where the national, regional, intra-ACP or territorial authorising officer does not or is unable to perform the duties incumbent on him or her under the ACP-EU Partnership Agreement or Decision 2013/755/EU, the responsible authorising officer of the Commission may temporarily take the former's place and act in the name and on behalf of the former in indirect management. In such a case, the Commission may receive, from the resources allocated to the ACP State or OCTs in question, financial compensation for the additional administrative workload incurred.

1.   The accounting officer of the Commission shall be the accounting officer of the 11th EDF.

2.   Points (a) and (c) to (f) of the first subparagraph of Article 77(1), Article 78(3) and (4), Article 79, Article 80(1), (2) and (3), Article 81, Article 82(2) to (10), and Articles 84, 85 and 86 of Regulation (EU, Euratom) 2018/1046 shall apply.

3.   The accounting rules referred to in Article 80(1), (2) and (3) of Regulation (EU, Euratom) 2018/1046 shall apply to the 11th EDF resources managed by the Commission. Those rules shall be applied to the 11th EDF while taking into account the specific nature of its activities.

4.   The accounting officer shall prepare and, after consulting the responsible authorising officer, adopt the chart of accounts to be applied to the 11th EDF's operations.

1.   In accordance with Article 7 of the Internal Agreement, the ceiling for the annual amount of the contribution for the year n + 2 and the annual amount of the contribution for the year n + 1, as well as its payment in three instalments, shall be determined in accordance with the procedure set out in paragraphs 2 to 7 of this Article.

The instalments to be paid by each Member State shall be set in such a way as to be in proportion to the Member State's contributions to the 11th EDF as set out in Article 1(2) of the Internal Agreement.

2.   The Commission shall present a proposal by 15 October of the year n, setting out:

The Council shall decide on that proposal by 15 November of the year n.

The Member States shall pay the first instalment of the contribution for the year n + 1 at the latest by 21 January of the year n + 1.

3.   The Commission shall present a proposal by 15 June of the year n + 1, setting out:

The Council shall decide on that proposal at the latest 21 calendar days following the presentation by the Commission of its proposal.

The Member States shall pay the second instalment at the latest 21 calendar days following the adoption of the Council decision.

4.   By 15 June of the year n + 1, the Commission, taking into account the EIB's forecasts concerning the management and operation of the Investment Facility, including those interest rates subsidies which are implemented by the EIB, shall establish and communicate to the Council a statement of the commitments, payments, and the annual amount of the calls for contributions made in the year n and to be made in the years n + 1 and n + 2. The Commission shall provide the annual amounts of the contributions by Member State, as well as the amount still to be paid by the EDF, distinguishing between the shares of the EIB and of the Commission. The amounts for the years n + 1 and n + 2 shall be based on the capacity to deliver effectively the proposed level of resources while endeavouring to avoid significant variations between the different years, as well as significant end-of-year balances.

5.   The Commission shall present a proposal by 10 October of the year n + 1, setting out:

The Council shall decide on that proposal at the latest 21 calendar days following the presentation by the Commission of its proposal.

The Member States shall pay the third instalment at the latest 21 calendar days following the adoption of the Council decision.

6.   The sum of the instalments relating to a certain year shall not exceed the annual amount of the contribution determined for that year. The annual amount of the contribution shall not exceed the ceiling determined for that year. The ceiling shall not be increased except in accordance with Article 7(4) of the Internal Agreement. A possible increase of the ceiling shall be made part of the proposals referred to in paragraphs 2, 3 and 5 of this Article.

7.   The ceiling for the annual amount of the contribution to be paid by each Member State for the year n + 2, the annual amount of the contribution for the year n + 1 and the instalments of the contributions shall specify:

1.   Calls for contributions shall first use up the amounts laid down for previous EDFs, one after the other.

2.   The contributions of the Member States shall be expressed in euros and shall be paid in euros.

3.   The contribution referred to in point (a) of Article 19(7) shall be credited by each Member State to a special account entitled ‘European Commission — European Development Fund’ opened with the central bank of the relevant Member State or the financial institution designated by it. The amount of such contributions shall remain in those special accounts until the payments need to be made.

4.   The account referred to in paragraph 3 shall be kept free of any charge and interest.

5.   Where negative interest is applied to the account referred to in paragraph 3 of this Article, the Member State concerned shall, at the latest on the date of payment of each instalment referred to in Article 19, credit the account with an amount corresponding to the amount of such negative interest applied until the first day of the month preceding the payment of the instalment.

6.   Without prejudice to paragraph 7 of this Article, the Commission shall endeavour to make any withdrawals from the special accounts in such a way as to maintain a distribution of assets in those accounts that corresponds to the contribution key pursuant to point (a) of Article 1(2) of the Internal Agreement.

7.   When covering the 11th EDF cash resource requirements in accordance with paragraph 3, the Commission shall aim to reduce the impact of the obligation on Member States to credit amounts of negative interest pursuant to paragraph 5 by drawing with priority on the sums credited to the accounts concerned.

8.   The contribution referred to in point (b) of Article 19(7) shall be credited by each Member State in accordance with Article 47(1).

1.   On the expiry of the time limits laid down in Article 19(2), (3) and (5), the Member State concerned shall be obliged to pay interest in accordance with the following conditions:

2.   In respect of the contribution referred to in point (a) of Article 19(7) of this Regulation, the interest shall be credited to one of the accounts provided for in Article 1(6) of the Internal Agreement

In respect of the contribution referred to in in point (b) of Article 19(7) of this Regulation, the interest shall be credited to the Investment Facility in accordance with Article 47(1) of this Regulation.

1.   Articles 97, 98 and 99, Article 100(1), the first subparagraph of Article 100(2), Article 101(1) to (6), and Articles 102 to 107 and 109 of Regulation (EU, Euratom) 2018/1046 shall apply. Recovery may be done by way of a Commission decision enforceable pursuant to Article 299 TFEU.

2.   With regard to Article 97(3) of Regulation (EU, Euratom) 2018/1046, the reference to own resources shall be understood as reference to the Member States' contributions referred to in Article 19 of this Regulation.

3.   Article 99(2) of Regulation (EU, Euratom) 2018/1046 shall apply to recoveries established in euro. For recoveries in local currency, it shall apply using the rate of the central bank of the country issuing the currency in force on the first calendar day of the month in which the recovery order is established.

1.   The commitment of expenditure shall be preceded by a financing decision adopted by the Commission.

2.   Article 110(2) to (5), Article 111, points (a) and (b) of the first subparagraph of Article 112(1), Article 112(2) to (5), and Articles 114, 115 and 116 of Regulation (EU, Euratom) 2018/1046 shall apply.

3.   With regard to the application of the third and fourth subparagraphs of Article 114(2) of Regulation (EU, Euratom) 2018/1046, the period within which to enter into legal commitments which implement the action may be extended beyond three years following the date of the conclusion of the financing agreement with ACP States and OCTs.

4.   Where the 11th EDF resources are implemented in indirect management with ACP States or OCTs, the responsible authorising officer may, upon accepting justification, extend the two-year period referred to in Article 114(6) of Regulation (EU, Euratom) 2018/1046 and the three-year period referred to in the third subparagraph of Article 114(2) thereof.

5.   At the end of the extended periods referred to in paragraph 3 and 4, the unused balances shall be, as applicable, decommitted.

6.   Where measures are adopted under Articles 96 and 97 of the ACP-EU Partnership Agreement, the running of the periods referred to in this Article may be suspended.

7.   For the purposes of the third subparagraph of paragraph 1 of Article 111 of Regulation (EU, Euratom) 2018/1046, compliance shall be assessed against the relevant provisions, in particular the Treaties, the ACP-EU Partnership Agreement, Decision 2013/755/EU, the Internal Agreement, this Regulation, and all acts adopted in implementation of those provisions.

1.   Subject to the conditions set out in paragraph 2 of this Article, Article 116 of Regulation (EU, Euratom) 2018/1046 shall apply to payments carried out by the Commission.

2.   Where 11th EDF resources are applied under indirect management with ACP States or OCTs and the Commission executes payments on their behalf, the time limit referred to in point (b) of Article 116(1) of Regulation (EU, Euratom) 2018/1046 shall apply to all payments not referred to in point (a) thereof. The financing agreement shall contain the necessary provisions to ensure the timely collaboration of the contracting authority.

3.   With regard to Article 116(5) of Regulation (EU, Euratom) 2018/1046, payments for which the Commission is responsible shall be charged to the same allocation as the corresponding contract. If the remaining funds are not sufficient, it will be charged to the account or accounts provided for in Article 1(6) of the Internal Agreement.

1.   For the purpose of providing financial assistance under this Title, cooperation between the Union, the ACP States and OCTs may take the form, inter alia, of:

2.   In addition to the types of financing provided for in Articles 30 to 37, financial assistance may also be provided through the following:

3.   Financial assistance may also be provided through contributions to international, regional or national funds, such as those established or managed by the EIB, Member States or by ACP States or OCTs and regions or by international organisations, for attracting joint financing from a number of donors, or to funds set up by one or more donors for the purpose of the joint implementation of projects.

Reciprocal access by Union financial institutions to financial instruments set up by other organisations shall be promoted, as appropriate.

4.   Actions financed under the 11th EDF may be implemented with parallel or joint co-financing.

In the case of parallel co-financing, an action is to be split into a number of clearly identifiable components which are each financed by the different partners providing co-financing in such a way that the end-use of the financing can always be identified.

In the case of joint co-financing, the total cost of an action is to be shared between the partners providing the co-financing and the resources are to be pooled in such a way that it is no longer possible to identify the source of financing for any given activity undertaken as part of the action.

5.   In implementing its support to transition and reform in ACP States and OCTs, the Union shall draw on and share the experiences of Member States and lessons learned.

1.   Subject to the conditions set out in paragraphs 2 and 3 of this Article, Articles 154 to 159 of Regulation (EU, Euratom) 2018/1046 shall apply. For the purposes of Article 158 of that Regulation, indirect management with third countries may also take the form of a financing agreement concluded with the relevant organisation or body at regional or intra-ACP level.

2.   Entities implementing 11th EDF funds shall ensure consistency with the Union's external policy and may entrust budget-implementation tasks to other entities under conditions equivalent to those applying to the Commission. They shall fulfil their obligations under Article 155(1) of Regulation (EU, Euratom) 2018/1046 annually. The audit opinion shall be submitted within one month of the report and management declaration, to be taken into account in providing assurance for the Commission.

International organisations as referred to in point (c)(ii) of the first subparagraph of Article 62(1) of Regulation (EU, Euratom) 2018/1046 and bodies of the Member States as referred to in points (c)(v) and (vi) of the first subparagraph of Article 62(1) of that Regulation which have been entrusted budget-implementation tasks by the Commission may also entrust budget-implementation tasks to non-profit organisations possessing the appropriate operational and financial capacity, under conditions equivalent to those applying to the Commission.

ACP States and OCTs may implement the 11th EDF funds through their departments and bodies governed by private law on the basis of a service contract. Those bodies shall be selected on the basis of open, transparent, proportionate and non-discriminatory procedures, avoiding conflict of interests. The financing agreement shall stipulate the terms of the service contract.

3.   Where the 11th EDF is applied in indirect management with ACP States, OCTs or their regional organisations, without prejudice to the responsibilities of the contracting authorities, the Commission:

The financing agreement shall contain provisions to that end.

1.   Article 208(4) and (5), Article 209(1), (2) and (4), Article 210(1), Article 214, Article 215(2) to (7) and Article 216 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   Financial instruments may be established under the 11th EDF. Member States or other parties may contribute to such instruments.

3.   The 11th EDF shall be authorised to contribute to financial instruments or to the provisioning of budgetary guarantees set up by the Union budget.

4.   Financial instruments may be established in the financing decisions referred to in Article 24. They shall be, whenever possible, under the lead of the EIB, a multilateral European financial institution such as the European Bank for Reconstruction and Development, or a bilateral European financial institution such as a bilateral development bank, and may be pooled with additional grants from other sources.

1.   Articles 234, 235 and 252 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   With regard to Article 234(2) of Regulation (EU, Euratom) 2018/1046, references to the competent committee shall be the understood as to the European Development Fund Committee referred to in Article 8 of the Internal Agreement.

1.   Article 236 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   Union general or sector budget support shall be based on mutual accountability and shared commitments to universal values, and shall aim at strengthening contractual partnerships between Union and ACP States or OCTs in order to promote democracy, human rights and the rule of law, to support sustainable and inclusive economic growth and to eradicate poverty.

3.   Any decision to provide budget support shall be based on budget support policies agreed by the Union, a clear set of eligibility criteria and a careful assessment of the risks and benefits.

One of the key determinants of such a decision shall be an assessment of the commitment, record and progress of ACP States and OCTs with regard to democracy, human rights and the rule of law. Budget support shall be differentiated to better respond to the political, economic and social context of the ACP States and OCTs, taking into account situations of fragility.

4.   When providing budget support, the Commission shall clearly define and monitor its conditionality, and shall also support the development of parliamentary control and audit capacities and increase transparency and public access to information.

5.   Disbursement of budget support shall be conditional on satisfactory progress towards achieving the objectives agreed with the ACP States and OCTs.

6.   When providing budget support to OCTs, their institutional links to the Member State concerned shall be taken into account.

1.   The annual accounts of the 11th EDF shall be prepared for each financial year, which shall run from 1 January to 31 December. Those accounts shall comprise:

The financial statements shall be accompanied by the information supplied by the EIB in accordance with Article 51 of this Regulation.

Article 243 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   The accounting officer shall send, via electronic means, the provisional accounts to the Court of Auditors by 31 March of the following year.

The Court of Auditors shall, by 15 June of the following year, make its observations on the provisional accounts as regards the part of the 11th EDF resources for the financial management of which the Commission is responsible, so that the Commission can make the corrections deemed necessary for drawing up the final accounts

3.   The Commission shall approve the final accounts and send them, via electronic means, to the European Parliament, to the Council and to the Court of Auditors by 31 July of the following year.

By the same date, the accounting officer shall transmit a representation letter covering the final accounts to the Court of Auditors.

The second subparagraph of Article 246(3) of Regulation (EU, Euratom) 2018/1046 shall apply.

The final accounts shall be published in the Official Journal of the European Union together with the statement of assurance given by the Court of Auditors in accordance with Article 43 of this Regulation by 15 November of the following year.

1.   The report on financial implementation shall be prepared by the responsible authorising officer and transmitted to the accounting officer by 15 March for inclusion in the 11th EDF accounts. It shall present a true and fair view of the revenue and expenditure operations from 11th EDF resources. It shall be presented in millions of euros and shall comprise:

2.   The financial outturn account shall contain the following:

1.   The Commission and the EIB shall monitor, each to the extent to which it is concerned, the use of 11th EDF assistance by the ACP States, the OCTs or any other beneficiary, and the implementation of projects financed by the 11th EDF, having particular regard to the objectives referred to in Articles 55 and 56 of the ACP-EU Partnership Agreement and in the corresponding provisions of Decision 2013/755/EU.

2.   The EIB shall periodically inform the Commission regarding the implementation of projects financed by the 11th EDF resources it administers, following the procedures set out in the operational guidelines of the Investment Facility.

3.   The Commission and the EIB shall provide the Member States with information on the operational implementation of 11th EDF resources as foreseen in Article 18 of Regulation (EU) 2015/322. The Commission shall send that information to the Court of Auditors.

1.   The budgetary accounts shall provide a detailed record of the financial implementation of the 11th EDF resources.

2.   The budgetary accounts shall show all:

3.   When commitments, payments and debts are expressed in national currencies, the accounting system shall make it possible, where necessary, for them to be recorded in national currencies as well as in euros.

4.   Global financial commitments shall be recorded in euros for the value of the financing decisions taken by the Commission. Individual financial commitments shall be recorded in euros at the equivalent of the value of the legal commitments. That value shall include, where appropriate:

5.   All accounting records referring to the fulfilment of a commitment shall be kept for a period of five years from the date of the decision giving discharge in respect of the financial implementation of 11th EDF resources, referred to in Article 44, concerning the financial year during which the commitment was closed for accounting purposes.

1.   Regarding the operations financed from 11th EDF resources managed by the Commission in accordance with Article 14, the Court of Auditors shall exercise its powers in accordance with this Article and Article 43.

2.   Articles 255, 256 and 257, Article 258(1) and (2), the second sentence of Article 258(3), Article 258(4) and Article 259 of Regulation (EU, Euratom) 2018/1046 shall apply.

3.   For the purposes of this Title, the Court of Auditors shall have regard to the Treaties, the ACP-EU Partnership Agreement, Decision 2013/755/EU, the Internal Agreement, this Regulation and all other acts adopted pursuant to those instruments.

4.   The Court of Auditors shall be informed of the internal rules referred to in Article 60(1) of Regulation (EU, Euratom) 2018/1046, including the appointment of authorising officers, as well as of the instrument of delegation referred to in Article 79 of that Regulation.

5.   The national audit authorities of the ACP States and the OCTs shall be encouraged to cooperate with the Court of Auditors at its invitation.

6.   The Court of Auditors may, at the request of one of the Union institutions, issue opinions on matters relating to the 11th EDF.

1.   Subject to paragraph 2 of this Article, Articles 260 to 263 of Regulation (EU, Euratom) 2018/1046 shall apply.

2.   The discharge decision shall cover the accounts referred to in Article 38 of this Regulation, except the part thereof provided by the EIB in accordance with Article 51 thereof. The discharge referred to in Article 260(1) of Regulation (EU, Euratom) 2018/1046 shall be given in respect of those 11th EDF resources that are managed by the Commission in accordance with Article 14(2) of this Regulation for year n.

3.   The discharge decision shall be published in the Official Journal of the European Union.