PURPOSE : to amend Regulation 1726/2000/EC to improve the implementation of development cooperation with South Africa .

LEGISLATIVE ACT : Regulation 1934/2004/EC of the European Parliament and of the Council amending Regulation 1726/2000/EC on development cooperation with South Africa

CONTENT : Following a mid-term review of Regulation 1726/2000/EC, the Council and the Parliament have made certain amendments to the Regulation. These amendments concern mainstreaming of gender issues at all levels of the project cycle from planning to implementation, streamlining of administrative procedures, improving criteria for assessing project and programme design and clarification of the conditions for granting contributions from the European Programme for Reconstruction and Development (EPRD) to regional programmes. More particularly:

- Regulation 1726/2000/EC has a validity of seven years. It requires triennial programmes to be carried out. In order for these programmes to be synchronized with the duration of the Regulation, the wording of the relevant article is adjusted to allow four-year Indicative Programmes;

- Annex X of the Trade Development and Cooperation Agreement with South Africa deals with support to South African wine and spirits sector. The EC must provide assistance of EUR 15 million for the restructuring of the South African wine and spirits sector and for the marketing and distribution of South African wines and spirits. The Wine and Spirits Agreements have been signed on 28 January 2002. It is therefore necessary to include an additional amount of EUR 15 million for the restructuring of the Wines and Spirits sector in the reference amount of EUR 885.5 million. The relevant Article is amended to read "EUR 900.5 million."

- Article 8 of Regulation 1726/2000/EC refers to a "Geographically competent committee" but fails to establish it. Legally speaking the Committee did not exist. In practice the EDF Committee has been acting as the "South Africa Committee", albeit with a different weighing of Member States' votes. The Committee is established by this Regulation and the Commission must consult it for figures over EUR 8 million;

- Regulation 1726/2000/EC is brought in line with the new Financial Regulation of the Commission and its implementing provisions, particularly concerning the use of a single currency, the types of support, the role of intermediary institutions and applicable procedures;

- In view of the implementation of the EPRD, and in particular of the 2000 to 2002 Multiannual Indicative Programme, Regulation 1726/2000/EC is adjusted, in particular in relation to the adoption of sector-wide programmes, funding through budget support and the joint funding of projects and programmes in the field of regional cooperation and integration.

ENTRY INTO FORCE : 03/12/2004.