
Article 1 
This Regulation lays down the rules for access by interested parties to Community external assistance instruments financed by the general budget of the European Union, as listed in Annex I.
Article 2 
For the interpretation of the terms used in this Regulation, reference is made to the Financial Regulation and to Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities.
Article 3 

1. Participation in the award of procurement or grant contracts financed under a Community instrument shall be open to all legal persons who are established in a Member State of the European Community, in an official candidate country as recognised by the European Community or in a Member State of the European Economic Area.
2. Participation in the award of procurement or grant contracts financed under a Community instrument with thematic scope, as defined in Annex I, Part A, shall be open to all legal persons who are established in a developing country, as specified in the OECD Development Assistance Committee list set out in Annex II, in addition to those legal persons already eligible by virtue of the instrument concerned.
3. Participation in the award of procurement or grant contracts financed under a Community instrument with geographical scope, as defined in Annex I, Part B, shall be open to all legal persons who are established in a developing country as specified in the OECD Development Assistance Committee list set out in Annex II and who are expressly mentioned as eligible, and to those already stated to be eligible by the instrument concerned.
4. Participation in the award of procurement or grant contracts financed under a Community instrument shall be open to all legal persons who are established in any country other than those referred in paragraphs 1, 2 and 3 of this Article, where reciprocal access to their external assistance has been established pursuant to Article 6.
5. Participation in the award of procurement or grant contracts financed under a Community instrument shall be open to international organisations.
6. The above is without prejudice to the participation of categories of organisations eligible for the award of any contract, or to the exception set out in Article 114(1) of the Financial Regulation.
Article 4 
All experts engaged by tenderers as defined in Articles 3 and 8 may be of any nationality. This Article is without prejudice to the qualitative and financial requirements set out in the Community’s procurement rules.
Article 5 
All supplies and materials purchased under a contract financed under a Community instrument must originate from the Community or from an eligible country as defined in Articles 3 and 7 herein. The term ‘origin’ for the purpose of this Regulation is defined in the relevant Community legislation on rules of origin for customs purposes.
Article 6 

1. Reciprocal access to the Community’s external assistance shall be granted for a country falling within the scope of Article 3(4), whenever such country grants eligibility on equal terms to the Member States and to the recipient country concerned.
2. The granting of reciprocal access to the Community’s external assistance shall be based on a comparison between the EU and other donors and shall proceed at sectoral level, as defined by the OECD Development Assistance Committee categories, or at country level, regardless of whether the country concerned is a donor or a recipient country. The decision to grant such reciprocity to a donor country shall be based on the transparency, consistency and proportionality of the aid provided by that donor, including its qualitative and quantitative nature.
3. Reciprocal access to the Community’s external assistance shall be established by means of a specific decision concerning a given country or a given regional group of countries. Such a decision shall be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission under the procedures and relevant committee associated with the act concerned. The right of the European Parliament to be regularly informed pursuant to Article 7(3) of that Decision shall be fully respected. Such a decision shall run for a minimum period of one year.
4. Reciprocal access to the Community’s external assistance in the least developed countries as listed in Annex II shall be automatically granted to the third countries listed in Annex III.
5. The recipient countries shall be consulted as part of the procedure described in paragraphs 1, 2 and 3.
Article 7 

1. In duly substantiated exceptional cases, the Commission may extend eligibility to legal persons from a country not eligible under Article 3.
2. In duly substantiated exceptional cases, the Commission may allow the purchase of supplies and materials originating from a country not eligible under Article 3.
3. Derogations as provided for in paragraphs 1 and 2 may be justified on the basis of the unavailability of products and services in the markets of the countries concerned, for reasons of extreme urgency, or if the eligibility rules would make the realisation of a project, a programme or an action impossible or exceedingly difficult.
Article 8 

1. Whenever Community funding covers an operation implemented through an international organisation, participation in the appropriate contractual procedures shall be open to all legal persons who are eligible pursuant to Article 3 as well as to all legal persons who are eligible pursuant to the rules of that organisation, care being taken to ensure that equal treatment is afforded to all donors. The same rules shall apply in respect of supplies, materials and experts.
2. Whenever Community funding covers an operation co-financed with a third country, subject to reciprocity as defined in Article 6, or with a regional organisation, or with a Member State, participation in the appropriate contractual procedures shall be open to all legal persons who are eligible pursuant to Article 3 as well as to all legal persons who are eligible under the rules of such third country, regional organisation or Member State. The same rules shall apply in respect of supplies, materials and experts.
3. As far as food aid operations are concerned, the application of this Article shall be limited to emergency operations.
Article 9 

1. For the purposes of humanitarian aid, within the meaning of Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid and for the purposes of aid channeled directly through NGOs, within the meaning of Council Regulation (EC) No 1658/98 of 17 July 1998 on co-financing operations with European non-governmental development organisations (NGOs) in fields of interest to the developing countries, the provisions of Article 3 shall not apply to the eligibility criteria established for the selection of grant beneficiaries.
2. Beneficiaries of these grants shall abide by the rules established in this Regulation where the implementation of the assisted humanitarian action and aid channeled directly through NGOs within the meaning of Regulation (EC) no 1658/98 requires the award of procurement contracts.
Article 10 

1. In order to accelerate the eradication of poverty through the promotion of local capacities, markets and purchases, special consideration shall be given to local and regional procurement in partner countries.
2. Tenderers who have been awarded contracts shall respect internationally agreed core labour standards, e.g. the ILO core labour standards, conventions on freedom of association and collective bargaining, elimination of forced and compulsory labour, elimination of discrimination in respect of employment and occupation, and the abolition of child labour.
3. Access by developing countries to Community external assistance shall be rendered possible by all such technical assistance as is deemed appropriate.
Article 11 
This Regulation amends and regulates the relevant parts of all existing Community instruments listed in Annex I. The Commission shall amend Annexes II to IV to this Regulation from time to time to take account of any amendments to OECD texts.
Article 12 
This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 21 November 2005.
For the Council
The President
J. STRAW
ANNEX I

The following amendments are made to the Community instruments listed hereafter.

PART A — Community instruments with a thematic scope

1.. Council Regulation (EC) No 1725/2001 of 23 July 2001 concerning action against anti-personnel landmines in third countries other than developing countries:

— Article 4(2) is replaced by the following:
'
2. Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance:'
— in Article 7(3) the following sentence is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is defined in the Regulation (EC) No 2112/2005.'
2.. Council Regulation (EC) No 976/1999 of 29 April 1999 laying down the requirements for the implementation of Community operations, other than those of development cooperation, which, within the framework of Community cooperation policy, contribute to the general objective of developing and consolidating democracy and the rule of law and to that of respecting human rights and fundamental freedoms in third countries:

— in Article 5(1) the following sentence is added:
'Eligibility for grant contracts shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 0f 21 November 2005 on access to Community external assistance.'
— Article 6 is replaced by the following:
'
Article 6 
To be eligible for Community aid, the partners referred to in Article 5(1) must have their main headquarters in a country eligible for Community aid under this Regulation, as well as under Regulation (EC) No 2112/2005. Such headquarters must be the effective decision-making centre for all operations financed under this Regulation. Exceptionally, the headquarters may be in another third country.'
— Article 9 is replaced by the following:
'
Article 9 

1. Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with the rules of eligibility, and the derogations therefrom, laid down in this Regulation, as well as those set out in Regulation (EC) No 2112/2005.
2. The origin of supplies and materials purchased under this Regulation shall be further determined in accordance with the rules of origin, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.'

PART B — Community instruments with a geographical scope

3.. Council Regulation (EC) No 2500/2001 of 17 December 2001 concerning pre-accession financial assistance for Turkey:

— in Article 8(7) the following sentence is added to the first subparagraph:
'Eligibility for participation in tendering procedures under this Regulation shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
— in Article 8(7) the following sentence is added to the second subparagraph:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is further defined in Regulation (EC) No 2112/2005.'
— in Article 8 the following paragraph is added:
'
8. The origin of supplies and materials purchased under this Regulation shall be further defined in accordance with the rules of origin, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.'
4.. Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia:

— in Article 7(3) the following sentence is added:
'Eligibility for participation in tendering procedures under this Regulation shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
— Article 7(4) is replaced by the following:
'
4. Participation in contractual procedures implemented through an international organisation or co-financed with a third country is defined in Regulation (EC) No 2112/2005'
5.. Council Regulation (EC, Euratom) No 99/2000 of 29 December 1999 concerning the provision of assistance to the partner States in Eastern Europe and Central Asia:

— in Article 11(3) the following sentence is added:
'The origin of supplies and materials purchased under this Regulation shall be further determined in accordance with the rules of origin, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of. 21 November 2005 on access to Community external assistance.'
— in Article 11(4) the following sentence is added:
'Eligibility for participation in tendering procedures under this Regulation shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.'
— in Article 11(5) the following sentence is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is further defined in Regulation (EC) No 2112/2005.'
6.. Council Regulation (EC) No 1267/1999 of 21 June 1999 establishing an Instrument for Structural Policies for Pre-Accession:

— in Article 6a(1) the following sentence is added:
'Eligibility for participation in tendering procedures under this Regulation shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
— in Article 6a(2) the following subparagraph is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is further defined in Regulation (EC) No 2112/2005.'
7.. Council Regulation (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period:

— in Article 3(3) the following sentence is added:
'Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with the rules of eligibility and the derogations therefrom laid down herein, as well as in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
8.. Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean Partnership:

— in Article 8(1) the following sentence is added:
'Eligibility for participation in tendering procedures under this Regulation shall be determined in accordance with the rules of eligibility and the derogations therefrom laid down herein, as well as in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
— in Article 8(8) the following sentence is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is defined in Regulation (EC) No 2112/2005.'
9.. Council Regulation (EEC) No 1762/92 of 29 June 1992 on the implementation of the Protocols on financial and technical cooperation concluded by the Community with Mediterranean non-member countries:

— in Article 2(1) the following subparagraph is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is further defined in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
10.. Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America:

— in Article 9 the following subparagraph is added:
'Participation in contractual procedures implemented through an international organisation or co-financed with a third country is further defined in Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance.'
— in Article 13 the following subparagraph is added:
'Eligibility for participation in tendering procedures under this Regulation shall be further determined in accordance with the rules of eligibility, and the derogations therefrom, set out in Regulation (EC) No 2112/2005.'

ANNEX II
Part I: Developing Countries and Territories(Official Development Assistance) Part II: Countries and Territories in Transition(Official Aid)
Least Developed Countries (LDCs) Other Low-Income Countries (Other LICs) (per capita GNI <$745 in 2001 Lower Middle-Income Countries (LMICs) (per capita GNI $746-$2975 in 2001) Upper middle-Income Countries (UMICs) (per capita GNI $2976-$9205 in 2001) High-Income Countries (HICs) (per capita GNI >$9206 in 2001) Central and Eastern European Countries and New Independent States of the former Soviet Union (CEECs/NIS) More Advanced Developing Countries and Territories
AfghanistanAngolaBangladeshBeninBhutanBurkina FasoBurundiCambodiaCape VerdeCentral African RepublicChadComorosCongo, Dem. Rep.DjiboutiEquatorial GuineaEritreaEthiopiaGambiaGuineaGuinea-BissauHaitiKiribatiLaosLesothoLiberiaMadagascarMalawiMaldivesMaliMauritaniaMozambiqueMyanmarNepalNigerRwandaSamoaSao Tome and PrincipeSenegalSierra LeoneSalomon IslandsSomaliaSudanTanzaniaTimor-LesteTogoTuvaluUgandaVanuatuYemenZambia ArmeniaAzerbaijanCameroonCongo, Rep.Côte d’IvoireGeorgiaGhanaIndiaIndonesiaKenyaKorea, Democratic RepublicKyrgyz Rep.MoldovaMongoliaNicaraguaNigeriaPakistanPapua New GuineaTajikistanUzbekistanViet NamZimbabwe AlbaniaAlgeriaBelizeBoliviaBosnia and HerzegovinaChinaColombiaCubaDominican RepublicEcuadorEgyptEl SalvadorFijiGuaemalaGuyamaHondurasIranIraqJamaicaJordanKazakhstanMacedonia (former Yugoslav Republic)Marshall IslandsMicronesia, Federated StatesMoroccoNamibiaNiuePalestinian Administered AreasParaguayPeruPhilippinesSerbia & MontenegroSouth AfricaSri LankaSt Vincent & GrenadinesSurinameSwazilandSyriaThailandTokelauTongoTunisiaTurkeyTurkmenistanWallis and Futuma BotswanaBrazilChileCook IslandsCosta RicaCroatiaDominicaGabonGrenadaLebanonMalaysiaMauritiusMayotteNauruPanamaSt HelenaSt LuciaVenezuela Bahrain BelarusBulgariaCzech RepublicEstoniaHungaryLatviaLithuaniaPolandRomaniaRussiaSlovak RepublicUkraine ArubaBahamasBermudaBruneiCayman IslandsChinese TapeiCyprusFalkland IslandsFrench PolynesiaGibraltarHong Kong, ChinaIsraelKoreaKuwaitLibyaMacaoMaltaNetherlands AntillesNew CaledoniaQatarSingaporeSloveniaUnited Arab EmiratesVirgin Islands (UK)
Threshold for World Bank loan Eligibility ($5185 in 2001)
AnguillaAntigua nd BarbudaArgentinaBarbadosMexicoMontserratOmanPalau IslandsSaudi ArabiaSeychellesSt Kitts and NevisTrinidad and TobagoTurks and Caicos IslandsUruguay


ANNEX III

Australia, Austria, Belgium, Canada, Denmark, European Commission, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States.

ANNEX IV
II.  (a) 

7.. Untying is a complex process. Different approaches are required for different categories of ODA, and actions by Members to implement the recommendation will vary in coverage and timing. Bearing this in mind, DAC Members will untie their ODA to the least developed countries to the greatest extent possible and in accordance with the criteria and procedures set out in this recommendation:

((i)) DAC Members agree to untie, by 1 January 2002, ODA to the least developed countries in the following areas: balance of payments and structural adjustment support; debt forgiveness; sector and multi-sector programme assistance; investment project aid; import and commodity support; commercial services contracts, and ODA to non-governmental organisations for procurement related activities.
((ii)) In respect of investment-related technical cooperation and free-standing technical cooperation, it is recognised that DAC Members’ policies may be guided by the importance of maintaining a basic sense of national involvement in donor countries alongside the objective of calling upon partner countries’ expertise, bearing in mind the objectives and principles of this recommendation. Free-standing technical cooperation is excluded from the coverage of the recommendation.
((iii)) In respect of food aid, it is recognised that DAC Members’ policies may be guided by the discussions and agreements in other international fora governing the provision of food aid, bearing in mind the objectives and principles of this recommendation.
8.. This recommendation does not apply to activities with a value of less than SDR 700 000 (SDR 130 000 in the case of investment-related technical cooperation).
