
Article 1 
The allocation of a Community financial contribution for 2006 and 2007 to cover expenditure incurred by Portugal relating to further action, as specified in Article 23(6) of Directive 2000/29/EC, and taken for the purpose of combating Bursaphelenchus xylophilus (Steiner et Buhrer) Nickle et al. (pinewood nematode), which is laid down in Annex I, and taken in the framework of the action plan proposed by Portugal, is hereby approved.
Article 2 
The total maximum Community financial contribution referred to in Article 1 is EUR 8 417 848,95.
The eligible expenditure and the maximum Community financial contributions shall be set out in Annex I.
Article 3 
An advance of EUR 2 000 000 shall be paid within 30 days from the date of adoption of this Decision.
Article 4 
The balance of the Community financial contributions as set out in Annex I shall be paid on the following conditions:

((a)) it can be concluded from technical progress reports to be provided by Portugal to the Commission on 15 January and 15 April 2007 and from inspection missions carried out by the Food and Veterinary Office of the Commission that the measures referred to in Annex I have been implemented by Portugal by 31 March 2007 at the latest, in an appropriate way to meet the objectives referred to in Article 1; and
((b)) an official request for payment has been submitted by Portugal to the Commission by 31 August 2007 at the latest, accompanied by a financial report and a final technical report as provided for in Article 5.
Article 5 
Evidence of the measures taken and the expenditure incurred shall be submitted by Portugal through:

((a)) a final technical report showing the implementation of all actions referred to in Annex I and their respective date of completion;
((b)) a financial report, presented in the format laid down in Annex II, showing the expenditure relating to the various measures for which a Community financial contribution is requested together with appropriate documentation, such as invoices or receipts.
Article 6 
The expenditure incurred by Portugal for the measures laid down in Annex I shall not result in any overcompensation of the owners of the trees. The compensation shall be based on the value of the wood the owner would have been able to obtain immediately before the beginning of the actions in the clear cut belt.
Article 7 

1. If there is evidence that the measures laid down in Annex I have not been completed in an appropriate way by 31 March 2007 at the latest, the rate of Community financial contribution relating to the part of the eligible expenditure concerned by this late execution shall be reduced to a level specified in the following table:
Number of days of delay starting from 1 April 2007 Rate of Community financial contribution
1-15 60 %
16-30 50 %
31-60 25 %
61 or more 0 %
2. Without prejudice to paragraph 1, failure to submit the request for payment and the accompanying reports provided for in Article 4(b) by 31 August 2007 at the latest, shall result in a 25 % reduction in the Community financial contribution per calendar month of delay.
Article 8 
Portugal shall ensure that the further action referred to in Article 1 is implemented in compliance with the applicable Community environmental legislation.
Article 9 
This Decision is addressed to the Portuguese Republic.
Done at Brussels, 13 December 2006.
For the Commission
Markos KYPRIANOU
Member of the Commission
ANNEX I
(in EUR)
Location Measure Eligible expenditure Maximum Community financial contributions(at a co-financing rate of 75 %)
Clear cut belt Survey activities for PWN in belt area 156 000 117 000
Cutting and transport of all PWN vector host trees 4 666 666 3 499 999,5
Stripping of all PWN vector host trees 300 000 225 000
Disposal of tree strippings 700 000 525 000
Compensation for the value of the wood 4 666 666 3 499 999,5
Re-design of clear cut belt dedicated information system 200 000 150 000
Subtotal  10 689 332 8 016 999
Subtotal Coordination activities 534 466,6 400 849,95
Grand total  11 223 798,6 8 417 848,95
Total maximum Community financial contribution 8 417 848,95



ANNEX II
FINANCIAL COST STATEMENT 

Measure 1: Survey activities in the belt area
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Measure 2: Cutting and transport of trees
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Measure 3: Stripping of the trees
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Measure 4: Disposal of tree strippings
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Measure 5: Compensation for the value of the wood
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Measure 6: Re-design of information system
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Subtotal: X,XX X,XX     X,XX 
Total: X,XX X,XX     X,XX 
Measure 7: Coordination activities
Actually incurred and paid costs
Short description of expenditure Eligible expenditure VAT excl. Community contribution Supporting document references number Unit Unit price Quantity Amount VAT excl. Remarks
Grand total: X,XX X,XX     X,XX 