Explanatory Memorandum to COM(2011)250 - Allocation of funds decommitted from projects under the 9th and previous European Development Funds (EDF) for development cooperation in South Sudan Proposal for a COUNCIL DECISION concerning the allocation of funds decommitted from projects under the 9th and previous European Development Funds (EDF) for development cooperation in South Sudan

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dossier COM(2011)250 - Allocation of funds decommitted from projects under the 9th and previous European Development Funds (EDF) for development ...
source COM(2011)250 EN
date 05-05-2011
In January 2011, the South Sudanese population voted overwhelmingly to declare independence from the north in a self-determination referendum, under the 2005 Comprehensive Peace Agreement (CPA). Independence is expected to be formally declared on 9 July 2011, the same day the CPA expires.

The European Union and its Member States have welcomed the result of the referendum and look forward to further developing a close and long-term partnership with South Sudan, while supporting a smooth and peaceful transition towards a stable and democratic independent state of South Sudan. To this end, work on joint programming between the EU and Member States has already begun, in close cooperation with local authorities and actors on the ground.

Following independence, South Sudan will have to face numerous humanitarian and socio-economic challenges in a context of reduced state capacity. Given the circumstances, external aid will become all the more crucial for a long period of time to assist South Sudan in fighting extreme poverty, empowering local communities and delivering early peace dividends to the population. Although South Sudan is expected to request accession to the Cotonou Agreement, it will take time before 10th European Development Fund (EDF) comes on stream following accession. Pending full accession to the Cotonou Agreement and other multilateral funding frameworks, there is therefore a risk of a 'funding gap' in the immediate post-referendum phase, during a period when South Sudan will remain very fragile, with a high risk of state failure.

Already in July 2010, Council Decision 2010/406/EU of 12 July 2010 allocated EUR 150 million of de-committed funds from the 9th and previous EDFs for the purpose of addressing the needs of 'the most vulnerable populations in Sudan'. Of this sum, EUR 85 million are earmarked for South Sudan. However, such an amount can be considered insufficient to cope with the immense needs of state- and capacity building as well as the development needs of the South Sudanese population. It is therefore deemed necessary to make additional funds available until South Sudan's full accession to the Cotonou Agreement.

Through the attached decision, the European Commission proposes to allocate an additional amount of EUR 200 million of de-committed funds from the 9th and previous EDFs, in accordance with the procedure envisaged in Article 1 (4) of the 10th EDF Internal Agreement, for the purpose of supporting South Sudan's state- and capacity building as well as development needs.

It thus proposes that the Council adopts the attached Decision on allocating an amount of EUR 200 million of de-committed funds from previous EDFs for South Sudan. A Financing Decision providing more detailed programming will be prepared subsequently.