(4)is replaced by the following: "4. The Community shall support, through national and regional development strategies as defined

(5)is replaced by the following: "5. The Parties also agree to step up cooperation between them in the area of information and communication technologies, and the Information Society. This cooperation shall, through national and regional development strategies as defined

(2)is replaced by the following: "2. The Community shall support the ACP States' efforts, through national and regional development strategies as defined

(3)is replaced by the following: "3. The Parties also agree to reinforce cooperation in this area with a view to formulating and supporting effective competition policies with the appropriate national competition agencies that progressively ensure the efficient enforcement of the competition rules by both private and state enterprises. Cooperation in this area shall, in particular, through national and regional development strategies as defined

(6)is replaced by the following: "6. The Parties further agree to strengthen their cooperation in this field. Upon request, on mutually agreed terms and conditions, and through national and regional development strategies as defined

(2), the introductory wording is replaced by the following: "2. Cooperation in standardisation and certification, through national and regional development strategies as defined

(3)is replaced by the following: "3. The Parties agree to strengthen their cooperation, through national and regional development strategies as defined

(3)is replaced by the following: "

1. The Parties agree that labour standards should not be used for protectionist purposes.".
2. Article 51

(2)is replaced by the following: "2. Cooperation shall, in particular, aim, through national and regional development strategies as defined

(1), is replaced by the following: "1. Development finance cooperation shall be implemented on the basis of and be consistent with the development objectives, strategies and priorities established by the ACP States, at national, regional and intra-ACP levels. Their respective geographical, social and cultural characteristics, as well as their specific potential, shall be taken into account. Guided by the internationally agreed aid effectiveness agenda, cooperation shall be based on ownership, alignment, donor coordination and harmonisation, managing for development results and mutual accountability. In particular, cooperation shall:

1. a)promote local ownership at all levels of the development process;
2. b)reflect a partnership based on mutual rights and obligations;
3. c)emphasise the importance of predictability and security in resource flows, granted on highly concessional terms and on a continuous basis;
4. d)be flexible and appropriate to the situation in each ACP State as well as adapted to the specific nature of the project or programme concerned; and
5. e)ensure efficiency, coordination and consistency.". 44. Article 58 is amended as follows: (
6. a)in paragraph 1, point (
7. b)is replaced by the following: "(
8. b)regional or inter-State bodies to which one or more ACP States belong, including the African Union or other bodies with non-ACP State members, which are authorised by those ACP States; and"; (
9. b)paragraph 2 is amended as follows: (
10. i)point (
11. d)is replaced by the following: "(
12. d)ACP or Community financial intermediaries providing, promoting and financing private or public investments in ACP States;"; (
13. ii)point (
14. f)is replaced by the following: "(
15. f)developing countries that are not part of the ACP Group where they participate in a joint initiative or regional organisation with ACP States in conformity with Article 6 of Annex IV to this Agreement.". 45. Article 60 is amended as follows: (
16. a)point (
17. c)is replaced by the following: "(
18. c)mitigation of adverse short-term effects of exogenous shocks, including instability in export earnings on socio-economic reforms and policies;"; (
19. b)point (
20. g)is replaced by the following: "(
21. g)humanitarian and emergency assistance including assistance to refugees and displaced persons, interventions linking short-term relief and rehabilitation with long-term development in crisis or post-crisis situations, and disaster preparedness.". 46. Article 61 is amended as follows: (
22. a)paragraph 2 is replaced by the following: "2. Direct budgetary assistance in support of macroeconomic or sectoral reforms shall be granted where: (
23. a)well-defined poverty-focused national or sector development strategies are in place or under implementation; (
24. 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 (
25. c)public financial management is sufficiently transparent, accountable and effective. The Community shall align on the systems and procedures specific to each ACP country, monitor its budget support with the partner country and support efforts of partner countries to strengthen domestic accountability, parliamentary oversight, audit capacities and public access to information."; (
26. b)paragraph 5 is replaced by the following: "5. In the framework of the Agreement, the funds earmarked under the multi-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.". 47. Article 66

(1)is replaced by the following: "

1. In order to attenuate the debt burden of the ACP States and their balance-of-payment problems, the Parties agree to use the resources provided for under the multi-annual financial framework of cooperation under this Agreement to contribute to debt relief initiatives approved at international level for the benefit of ACP countries. The Community furthermore commits itself to examine how in the longer term other Community resources can be mobilised in support of internationally agreed debt relief initiatives.".
2. Article 67

(1)is replaced by the following: "1. The multi-annual financial framework of cooperation under this Agreement shall provide support for macroeconomic and sectoral reforms implemented by the ACP States. In this framework, the Parties shall ensure that adjustment is economically viable and socially and politically bearable. Support shall be given in the context of a joint assessment between the Community and the ACP State concerned on the reform measures being undertaken or contemplated either at macroeconomic or sectoral level, and permit an overall evaluation of the reform efforts. To the extent possible the joint assessment shall be aligned on country specific arrangements and the support monitored on the basis of results achieved. Quick disbursement shall be an important feature of support programmes.". 49. The title of Chapter 3 of Title II of Part 4, is replaced by the following: "CHAPTER 3 Support in case of exogenous shocks". 50. Article 68 is replaced by the following: "Article 68 1. The Parties recognise that macroeconomic instability resulting from exogenous shocks may adversely affect the development of the ACP States and jeopardise the attainment of their development requirements. A system of additional support in order to mitigate the short-term adverse effects resulting from exogenous shocks, including the effects on export earnings, is therefore set up within the multi-annual financial framework of cooperation under this Agreement. 2. The purpose of this support is to safeguard socio-economic reforms and policies that could be affected negatively as a result of a drop in revenue and to remedy the short-term adverse effects of such shocks. 3. The extreme dependence of the ACP States' economies on exports, in particular from the agricultural and mining sectors, shall be taken into account in the allocation of resources. In this context, the least developed, landlocked and island, post-conflict and post-natural disaster ACP States shall receive more favourable treatment. 4. The additional resources shall be provided in accordance with the specific modalities of the support mechanism as set out in Annex II on Terms and Conditions of Financing. 5. The Community shall also provide support for market-based insurance schemes designed for ACP States seeking to protect themselves against short-term effects of exogenous shocks.". 51. The title of Chapter 6 of Title II of Part 4 is replaced by the following: "CHAPTER 6 Humanitarian, emergency and post-emergency assistance". 52. Article 72 is replaced by the following: "Article 72 General principle 1. Humanitarian, emergency and post-emergency assistance shall be provided in situations of crisis. Humanitarian and emergency assistance shall aim to save and preserve life and to prevent and relieve human suffering wherever the needs arise. Post-emergency assistance shall aim at rehabilitation and linking the short-term relief with longer term development programmes. 2. Situations of crisis, including long-term structural instability or fragility are situations posing a threat to law and order or to the security and safety of individuals, threatening to escalate into armed conflict or to destabilise the country. Situations of crisis may also result from natural disasters, man-made crises such as wars and other conflicts or extraordinary circumstances having comparable effects related, inter alia, to climate change, environmental degradation, access to energy and natural resources, or extreme poverty. 3. The humanitarian, emergency and post-emergency assistance shall be maintained for as long as necessary to deal with the needs resulting from these situations for the victims, thereby linking relief, rehabilitation and development. 4. The humanitarian assistance shall be granted exclusively according to the needs and interests of the victims of the crisis situation and in line with the principles of international humanitarian law and with respect to humanity, neutrality, impartiality and independence. In particular, there shall be no discrimination between victims on grounds of race, ethnic origin, religion, gender, age, nationality or political affiliation and free access to and protection of victims shall be guaranteed as well as the security of humanitarian personnel and equipment. 5. The humanitarian, emergency and post-emergency assistance shall be financed under the multi-annual financial framework of cooperation under this Agreement, where such assistance cannot be financed from the Union's Budget. Humanitarian, emergency and post‑emergency assistance shall be implemented in complementarity and coordination with the Member States' efforts and in accordance with best practice in aid effectiveness.". 53. The following Article is inserted: "Article 72a Objective 1. Humanitarian and emergency assistance shall aim to: (

1. a)safeguard human lives in crises and immediate post-crisis situations; (
2. b)contribute to the financing and delivery of humanitarian aid and to the direct access to it of its intended beneficiaries by all logistical means available; (
3. c)carry out short-term rehabilitation and reconstruction to enable the victims to benefit from a minimum of socio-economic integration and, as soon as possible, create the conditions for a resumption of development on the basis of long-term objectives set by the ACP countries and regions concerned; (
4. d)address the needs arising from the displacement of people (refugees, displaced persons and returnees) following natural or man-made disasters so as to meet, for as long as necessary, all the needs of refugees and displaced persons (wherever they may
5. be)and facilitate action for their voluntary repatriation and re-integration in their country of origin; and (
6. e)assist the ACP State or region in setting up short term disaster prevention and preparedness mechanisms, including for prediction and early warning, with a view to reducing the consequences of disasters. 2. Assistance may be granted to ACP States or regions taking in refugees or returnees to meet acute needs not covered by emergency assistance. 3. Post-emergency action shall aim at physical and social rehabilitation consequent to the results of the crisis concerned and may be undertaken to link the short-term relief and rehabilitation with the relevant longer term development programmes funded from the national, regional indicative programmes or the intra-ACP programme. Such actions must be necessary for the transition from the emergency phase to the development phase, promoting the socio-economic reintegration of the parts of the population affected, removing as far as possible the causes of the crisis and strengthening institutions and the ownership by local and national actors of their role in formulating a sustainable development policy for the ACP country concerned. 4. Where appropriate, short-term disaster prevention and preparedness mechanisms as referred to in paragraph 1(
7. e)will be coordinated with other disaster prevention and preparedness mechanisms in place. The development and strengthening of national, regional and all-ACP disaster risk reduction and management mechanisms shall assist ACP States to build their resilience to the impact of disasters. All related activities may be pursued in cooperation with regional and international organisations and programmes that have a proven track record in disaster risk reduction.". 54. Article 73 is replaced by the following: "Article 73 Implementation 1. Assistance operations shall be undertaken either at the request of the ACP country or region affected by the crisis situation, or at the initiative of the Commission, or on the advice of international organisations or local or international non-State organisations. 2. The Community shall take adequate steps to facilitate speedy action, which is required to meet the immediate needs for which the assistance is needed. The assistance shall be administered and implemented under procedures permitting operations that are rapid, flexible and effective. 3. Underlining the developmental nature of the assistance granted in accordance with this Chapter, assistance may be used exceptionally together with the indicative programme at the request of the State or region concerned.". 55. In Article 76

(1), point (

1. d)is replaced by the following: "(
2. d)loans from the Bank's own resources and the Investment Facility, the terms and conditions of which are set out in Annex II to this Agreement. Such loans may also be used to finance public investment in basic infrastructure.". 56. In Article 95

(3), the first subparagraph is replaced by the following: "3. The Community and the Member States, on the one hand, and the ACP States, on the other, shall notify the other Party not later than 12 months before the expiry of each five-year period of any review of the provisions they desire to make with a view to a possible amendment of the Agreement. Notwithstanding this time limit, if one Party requests the review of any provisions of the Agreement, the other Party shall have a period of two months in which to request the extension of the review to other provisions related to those which were the subject of the initial request.". 57. In Article 100, the second paragraph is replaced by the following: "This Agreement, drawn up in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, all texts being equally authentic, shall be deposited in the archives of the General Secretariat of the Council of the European Union and the Secretariat of the ACP States, which shall both transmit a certified copy to the government of each of the Signatory States.". C. ANNEXES 1. Annex II, as amended by Decision No 1/2009 of the ACP-EC Council of Ministers of 29 May 2009[1], shall be amended as follows: (

1. a)Article 1 is replaced by the following: "Article 1 1. The terms and conditions of financing in relation to the operations of the Investment Facility (Facility), the loans from own resources of the European Investment Bank (Bank) and special operations shall be as laid down in this Chapter. These resources may be channelled to eligible enterprises, either directly or indirectly, through eligible investment funds and/or financial intermediaries. 2. Funds for interest rate subsidies, as provided for under this Annex, will be made available from the interest subsidy allocation specified in Annex Ib, paragraph 2(c), to this Agreement. 3. Interest subsidies may be capitalised or may be used in the form of grants. The amount of the interest rate subsidy, calculated in terms of its value at the times of disbursement of the loan, shall be charged against the interest subsidy allocation specified in Annex Ib, paragraph 2(c), and paid directly to the Bank. Up to 10 % of this allocation for interest rate subsidies may also be used to support project related technical assistance in ACP countries. 4. These terms and conditions are without prejudice to terms and conditions that may be imposed upon ACP countries subject to restrictive borrowing conditions under the Heavily Indebted Poor Countries ("HIPC") or other internationally agreed debt sustainability frameworks. Accordingly, where such frameworks require a reduction in the interest rate of a loan by more than 3 %, as permitted under Articles 2 and 4 of this Chapter, the Bank shall seek to reduce the average cost of funds through appropriate co-financing with other donors. Should this not be deemed possible, the interest rate of the Bank loan may be reduced by such amount as required to comply with the level arising from the HIPC initiative or any internationally agreed debt sustainability framework."; (
2. b)Article 2

(7)and

(8)are replaced by the following: 7. Ordinary loans in countries not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks may be extended on concessional terms and conditions in the following cases: (

1. a)for infrastructure projects, that are a prerequisite for private sector development in the Least Developed Countries, in post-conflict countries and in post-natural disaster countries. In such cases, the interest rate of the loan will be reduced by up to 3 %; (
2. b)for projects which involve restructuring operations in the framework of privatisation or for projects with substantial and clearly demonstrable social or environmental benefits. In such cases, loans may be extended with an interest rate subsidy, the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest rate subsidy shall not be higher than 3 %. The final rate of loans falling under point (
3. a)or (
4. b)shall, in any case, never be less than 50 % of the reference rate. 8. The funds to be provided for these concessional purposes will be made available from the interest subsidy allocation referred to in Annex Ib, paragraph 2(c), to this Agreement."; (
5. c)Article 4

(2)is replaced by the following: "2. Loans from the Bank's own resources shall be granted under the following terms and conditions: (

1. a)the reference rate of interest shall be the rate applied by the Bank for a loan with the same conditions as to currency and the repayment period on the day of signature of the contract or on the date of disbursement; (
2. b)however, for countries which are not subject to restrictive borrowing conditions under the HIPC or other internationally agreed debt sustainability frameworks: (
3. i)in principle, public sector projects shall be eligible for an interest rate subsidy of up to 3 %; (
4. ii)private sector projects falling into the categories specified in Article 2

(7)(

1. b)shall be eligible for interest rate subsidies on the terms specified in that provision. The final interest rate shall, in any such case, never be less than 50 % of the reference rate; (
2. c)the repayment period of loans made by the Bank from its own resources shall be determined on the basis of the economic and financial characteristics of the project. These loans shall normally comprise a grace period fixed by reference to the construction period of the project.". 2. Annex III is amended as follows: (
3. a)in Article 1, points (
4. a)and (
5. b)are replaced by the following: "(
6. a)strengthen and enhance the role of the Centre for the Development of Enterprise (CDE) so as to provide the private sector with the necessary support in the promotion of private sector development activities in ACP countries and regions; and (
7. b)strengthen and reinforce the role of the Technical Centre for Agricultural and Rural Cooperation (CTA) in ACP institutional capacity development, particularly information management, in order to improve access to technologies for increasing agricultural productivity, commercialisation, food security and rural development."; (
8. b)Article 2 is replaced by the following: "Article 2 CDE 1. The CDE shall promote a business environment which is conducive to private sector development and support the implementation of private sector development strategies in the ACP countries by providing non-financial services, including consultancy services, to ACP companies and businesses and support to joint initiatives set up by economic operators of the Community and of the ACP States. In this regard, due account shall be taken of the needs arising from the implementation of the Economic Partnership Agreements. 2. The CDE shall aim to assist private ACP enterprises to become more competitive in all sectors of the economy. It shall in particular: (
9. a)facilitate and promote business cooperation and partnerships between ACP and EU enterprises; (
10. b)assist with the development of business support services through support for capacity building in private sector owned organisations or support for providers of technical, professional, management, commercial and training support services; (
11. c)provide assistance for investment promotion activities, such as investment promotion organisations, organisation of investment conferences, training programmes, strategy workshops and follow-up investment promotion missions; (
12. d)support initiatives that contribute to fostering innovation and the transfer of technologies, know-how and best practices on all aspects of business management; (
13. e)inform the ACP private sector about the provisions of this Agreement; and (
14. f)provide information to European companies and private sector organisations on business opportunities and modalities in ACP countries. 3. The CDE shall also contribute to the improvement of business environment at national and regional levels so as to support enterprises to take advantage of the progress in regional integration processes and trade opening. This shall include: (
15. a)assisting enterprises in meeting existing and new quality and other standards introduced by progress in regional integration and the implementation of the Economic Partnership Agreements; (
16. b)diffusing information within the local ACP private sector about the product quality and standards required in external markets; (
17. c)promoting regional and national business environment reforms, including by facilitating the dialogue between private sector and public institutions; and (
18. d)enhancing the role and function of national and/or regional service-providing intermediaries. 4. The activities of the CDE shall be based on the concept of coordination, complementarity and added value in respect of any private sector development initiatives taken by public or private entities. In particular, its activities shall be consistent with the national and regional development strategies as defined in Part 3 of this Agreement. The CDE shall exercise selectivity and ensure financial sustainability in undertaking its tasks. It shall ensure an appropriate division of tasks between its Headquarters and regional offices. 5. Periodic evaluations of the activities undertaken by the CDE shall be carried out. 6. The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall, after the signature of this Agreement: (
19. a)lay down the statutes of the Centre; (
20. b)appoint the members of the Executive Board; (
21. c)appoint the management of the Centre on a proposal from the Executive Board; and (
22. d)monitor the overall strategy of the Centre and supervise the work of the Executive Board. 7. The Executive Board shall, according to the statutes of the Centre: (
23. a)lay down the financial and staff regulations and the rules of operation; (
24. b)supervise its work; (
25. c)adopt the programme and the budget of the Centre; (
26. d)submit periodic reporting and evaluations to the Supervisory Authority; and (
27. e)perform any other tasks allocated to it by the statutes of the Centre. 8. The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance cooperation."; (
28. c)Article 3 is replaced by the following: "Article 3 CTA 1. The mission of the CTA shall be to strengthen policy and institutional capacity development and information and communication management capacities of ACP agricultural and rural development organisations. It shall assist such organisations in formulating and implementing policies and programmes to reduce poverty, promote sustainable food security, preserve the natural resource base, and thus contribute to building self-reliance in ACP rural and agricultural development. 2. The CTA shall: (
29. a)develop and provide information services and ensure better access to research, training and innovations in the spheres of agricultural and rural development and extension, in order to promote agriculture and rural development; and (
30. b)develop and reinforce ACP capacities in order to: (
31. i)improve the formulation and management of agricultural and rural development policies and strategies at national and regional levels including improved capacity for data collection, policy research, analysis and formulation; (
32. ii)improve the information and communication management, in particular within the National Agricultural Strategy; (iii) promote effective intra-institutional Information and Communication Management (ICM) for performance monitoring, as well as consortia with regional and international partners; (
33. iv)promote decentralised ICM at local and national levels; (
34. v)strengthen initiatives via regional cooperation; and (
35. vi)develop approaches for assessing the impact of policy on agricultural and rural development. 3. The Centre shall support regional initiatives and networks and shall progressively share capacity development programmes with appropriate ACP organisations. To this end, the Centre shall support decentralised regional information networks. Such networks shall be built up gradually and efficiently. 4. Periodic evaluations of the activities undertaken by the CTA shall be carried out. 5. The Committee of Ambassadors shall be the supervisory authority of the Centre. It shall, after the signature of this Agreement: (
36. a)lay down the statutes of the Centre; (
37. b)appoint the members of the Executive Board; (
38. c)appoint the management of the Centre on a proposal from the Executive Board; and (
39. d)monitor the overall strategy of the Centre and supervise the work of the Executive Board. 6. The Executive Board shall, according to the statutes of the Centre: (
40. a)lay down the financial and staff regulations and the rules of operation; (
41. b)supervise its work; (
42. c)adopt the programme and the budget of the Centre; (
43. d)submit periodic reporting and evaluations to the Supervisory Authority; and (
44. e)perform any other tasks allocated to it by the statutes of the Centre. 7. The budget of the Centre shall be financed in accordance with the rules laid down in this Agreement in respect of development finance cooperation.". 3. Annex IV, as amended by Decision No 3/2008 of the ACP-EC Council of Ministers of 15 December 2008[2], is amended as follows: (
45. a)Articles 1, 2 and 3 are replaced by the following: "Article 1 Operations financed by grants within the framework of this Agreement shall be programmed at the beginning of the period covered by the multi-annual financial framework of cooperation. Programming will be based on the principles of ownership, alignment, donor coordination and harmonisation, managing for development results and mutual accountability. Programming for this purpose shall mean: (
46. a)the preparation and development of country, regional or intra-ACP strategy papers (SP) based on their own medium-term development objectives and strategies, and taking into account the principles of joint programming and division of labour among donors, which shall, to the extent possible, be a partner country or region led process; (
47. b)a clear indication from the Community of the indicative programmable financial allocation from which the country, region or intra-ACP cooperation may benefit during the period covered by the multi-annual financial framework of cooperation under this Agreement as well as any other relevant information, including a possible reserve for unforeseen needs; (
48. c)the preparation and adoption of an indicative programme for implementing the SP, taking into account commitments of other donors, and in particular of the EU Member States; and (
49. d)a review process covering the SP, the indicative programme and the volume of resources allocated to it. Article 2 Country strategy paper The country strategy paper (CSP) shall be prepared by the ACP State concerned and the EU. It shall draw from prior consultation with a wide range of actors including non‑State actors, local authorities and, where relevant, ACP Parliaments, and shall draw on lessons learned and best practices. Each CSP shall be adapted to the needs and respond to the specific circumstances of each ACP State. The CSP shall be an instrument to prioritise activities and to build local ownership of cooperation programmes. Any divergences between the country's own analysis and that of the Community shall be noted. The CSP shall include the following standard elements: (
50. a)an analysis of the political, economic, social, and environmental country context, constraints, capacities and prospects including an assessment of basic needs, such as income per capita, population size and social indicators, and vulnerability; (
51. b)a detailed outline of the country's medium-term development strategy, clearly defined priorities and expected financing requirements; (
52. c)an outline of relevant plans and actions of other donors present in the country, in particular including those of the EU Member States in their capacity as bilateral donors; (
53. d)response strategies, detailing the specific contribution the EU can provide. These shall, to the extent possible, enable complementarity with operations financed by the ACP State itself and by other donors present in the country; and (
54. e)an indication of the most appropriate support and implementation mechanisms to be applied in implementing the above strategies. Article 3 Resource allocation 1. The indicative resource allocation among ACP countries shall be based on standard, objective and transparent needs and performance criteria. In this context: (
55. a)needs shall be assessed on the basis of criteria pertaining to per capita income, population size, social indicators and level of indebtedness and vulnerability to exogenous shocks. Special treatment shall be accorded to the least developed ACP States, and the vulnerability of island and landlocked States shall duly be taken into account. In addition, account shall be taken of the particular difficulties of countries dealing with the aftermath of conflict or natural disaster; and (
56. b)performance shall be assessed on the basis of criteria pertaining to governance, progress in implementing institutional reforms, country performance in the use of resources, effective implementation of current operations, poverty alleviation or reduction, progress towards achieving the Millennium Development Goals, sustainable development measures and macroeconomic and sectoral policy performance. 2. The allocated resources shall comprise: (
57. a)a programmable allocation to cover macroeconomic support, sectoral policies, programmes and projects in support of the focal or non-focal areas of Community assistance. The programmable allocation shall facilitate the long-term programming of Community aid for the country concerned. Together with other possible Community resources, these allocations shall be the basis for the preparation of the indicative programme for the country concerned; and (
58. b)an allocation to cover unforeseen needs such as those defined in Articles 66 and 68 and Articles 72, 72a and 73 of this Agreement, accessible under the conditions set out in those Articles, where such support cannot be financed from the Union's budget. 3. Provision will be made on the basis of the reserve for unforeseen needs for those countries, which, due to exceptional circumstances, cannot access normal programmable resources. 4. Without prejudice to Article 5

(7)of this Annex concerning reviews, the Community may, in order to take account of new needs or exceptional performance, increase a country's programmable allocation or its allocation for unforeseen needs: (

1. a)new needs may result from exceptional circumstances such as crisis and post‑crisis situations or from unforeseen needs as referred to in paragraph 2(b); (
2. b)exceptional performance is a situation in which, outside the mid-term and end-of-term reviews, a country's programmable allocation is totally committed and additional funding from the national indicative programme can be absorbed against a background of effective poverty-reduction policies and sound financial management."; (
3. b)Article 4

(1)to

(4)are replaced by the following: "1. Upon receipt of the information referred to above, each ACP State shall draw up and submit to the Community a draft indicative programme on the basis of and consistent with its development objectives and priorities as expressed in the CSP. The draft indicative programme shall contain: (

1. a)general budget support and/or a limited number of focal sectors or areas on which support should be concentrated; (
2. b)the most appropriate measures and operations for attaining the objectives and targets in the focal sector(
3. s)or area(s); (
4. c)the resources possibly reserved for a limited number of programmes and projects outside the focal sector(
5. s)or area(
6. s)and/or the broad outlines of such activities, as well as an indication of the resources to be deployed for each of these elements; (
7. d)the types of non-State actors eligible for funding, in accordance with the criteria laid down by the Council of Ministers, the resources allocated for non-State actors and the type of activities to be supported, which must be not-for-profit; (
8. e)proposals for a possible participation in regional programmes and projects; and (
9. f)a possible reserve for insurance against possible claims and to cover cost increases and contingencies. 2. The draft indicative programme shall, as appropriate, contain the resources reserved to reinforce human, material and institutional ACP capacity for preparing and implementing national indicative programmes and possible participations in programmes and projects funded from the regional indicative programmes and for improving the management of the ACP States' public investment projects cycle. 3. The draft indicative programme shall be the subject of an exchange of views between the ACP State concerned and the Community. The indicative programme shall be adopted by common agreement between the Commission on behalf of the Community and the ACP State concerned. It shall, when adopted, be binding on both the Community and that State. This indicative programme shall be annexed to the CSP and shall in addition contain: (
10. a)an indication of specific and clearly identified operations, especially those that can be committed before the next review; (
11. b)an indicative timetable for implementation and review of the indicative programme, including commitments and disbursements of resources; and (
12. c)results-oriented criteria for the reviews. 4. The Community and the ACP State concerned shall take all necessary measures to ensure that the programming process is completed within the shortest possible time and, save in exceptional circumstances, within twelve months of the adoption of the multi-annual financial framework of cooperation. In this context, the preparation of the CSP and the indicative programme must be part of a continuous process leading to the adoption of a single document."; (
13. c)Article 5 is amended as follows: (
14. i)paragraph 2 is replaced by the following: "2. In exceptional circumstances as referred to in Article 3

(4), in order to take into account new needs or exceptional performance, an ad hoc review can be carried out on the demand of either Party."; (

1. ii)in paragraph 4, the introductory wording is replaced by the following: "4. The annual operational, mid-term and end-of-term reviews of the indicative programme shall consist of a joint assessment of the implementation of the programme and take into account the results of relevant activities of monitoring and evaluation. These reviews shall be conducted locally and shall be finalised between the National Authorising Officer and the Commission, in consultation with the appropriate stakeholders, including non-State actors, local authorities and, where relevant, ACP parliaments. They shall in particular cover an assessment of:"; (iii) paragraphs 5, 6 and 7 are replaced by the following: "5. The Commission shall submit once a year a synthesis report on the conclusion of the annual operational review to the Development Finance Cooperation Committee. The Committee shall examine the report in accordance with its responsibilities and powers under this Agreement. 6. In the light of the annual operational reviews, the National Authorising Officer and the Commission may at the mid-term and end-of-term reviews, review and adapt the CSP: (
2. a)where operational reviews indicate specific problems; and/or (
3. b)in the light of changed circumstances of an ACP State. A change in the CSP may also be decided as a result of the ad hoc review process foreseen under paragraph 2. The end-of-term review may also include adaptation for the new multi-annual financial framework of cooperation in terms of both resource allocation and preparation for the next programme. 7. Following the completion of the mid-term and end-of-term reviews, the Commission may, on behalf of the Community, increase or decrease the resource allocation of a country in the light of current needs and the performance of the ACP State concerned. Following an ad hoc review as foreseen under paragraph 2, the Commission may, on behalf of the Community, also increase the resource allocation in the light of new needs or exceptional performance of the ACP State concerned, as defined in Article 3

(4)."; (

1. d)Article 6 is amended as follows: (
2. i)The title is replaced by the following: "Scope"; (
3. ii)The following paragraphs are added: "3. Requests for financing of regional programmes shall be submitted by: (
4. a)a duly mandated regional body or organisation; or (
5. b)a duly mandated sub-regional body, organisation or an ACP State in the region concerned at the programming stage, provided that the operation has been identified in the regional indicative programme (RIP). 4. The participation of non-ACP developing countries to regional programmes shall be envisaged only to the extent that: (
6. a)the centre of gravity of the projects and programmes funded under the multi‑annual financial framework of cooperation remains in an ACP country; (
7. b)equivalent provisions exist in the framework of the Community's financial instruments; and (
8. c)the principle of proportionality is respected."; (
9. e)Articles 7, 8 and 9 are replaced by the following: "Article 7 Regional programmes The ACP States concerned shall decide on the definition of geographical regions. To the maximum extent possible, regional integration programmes should correspond to programmes of existing regional organisations. In principle, in case the membership of several relevant regional organisations overlaps, the regional integration programme should correspond to the combined membership of these organisations. Article 8 Regional programming 1. Programming shall take place at the level of each region. The programming shall be a result of an exchange of views between the Commission and the duly mandated regional organisation(
10. s)concerned, and in the absence of such a mandate, the National Authorising Officers of the countries in that region. Where appropriate, programming may include a consultation with non-State actors represented at regional level and, where relevant, regional parliaments. 2. The regional strategy paper (RSP) shall be prepared by the Commission and the duly mandated regional organisation(
11. s)in collaboration with the ACP States in the region concerned, on the basis of the principle of subsidiarity and complementarity, taking into account the programming of the CSP. 3. The RSP will be an instrument to prioritise activities and to build local ownership of supported programmes. The RSP shall include the following standard elements: (
12. a)an analysis of the political, economic, social and environmental context of the region; (
13. b)an assessment of the process and prospects of regional economic integration and integration into the world economy; (
14. c)an outline of the regional strategies and priorities pursued and the expected financing requirements; (
15. d)an outline of relevant activities of other external partners in regional cooperation; (
16. e)an outline of the specific EU contribution towards achievement of the goals for regional integration, complementary insofar as possible to operations financed by the ACP States themselves and by other external partners, particularly the EU Member States; and (
17. f)an indication of the most appropriate support and implementation mechanisms to be applied in implementing the above strategies. Article 9 Resource allocation 1. The indicative resource allocation among ACP regions shall be based on standard, objective and transparent estimates of needs and the progress and prospects in the process of regional cooperation and integration. 2. The allocated resources shall comprise: (
18. a)a programmable allocation to cover support to regional integration, sector policies, programmes and projects in support of