Created in 1957 by the Treaty of Rome and launched in 1959, the European Development Fund (EDF) is the EU's main instrument for providing development aid to African, Caribbean and Pacific (ACP) countries and to overseas countries and territories (OCTs).
The EDF funds cooperation activities in the fields of economic development, social and human development as well as regional cooperation and integration.
It is financed by direct contributions from EU Member States according to a contribution key and is covered by its own financial rules. The total financial resources of the 11th EDF amount to €30.5 billion for the period 2014-2020.
The following shall constitute assigned revenue:
- financial contributions from Member States and third countries, including in both cases their public agencies, entities or natural persons, and from international organisations to certain external aid projects or programmes financed by the Union and managed by the Commission or the EIB on their behalf in accordance with Article 10 of the Implementation Regulation;
- revenue earmarked for a specific purpose, such as income from foundations, subsidies, gifts and bequests;
- revenue arising from the repayment, following recovery, of amounts wrongly paid;
- revenue generated by interest on prefinancing payments, subject to Article 8(4) of Regulation (EU, Euratom) No 966/2012;
- repayments and revenues generated by financial instruments pursuant to Article 140(6) of Regulation (EU, Euratom) No 966/2012;
- revenue arising from subsequent reimbursement of taxes pursuant to point (b) of Article 23(3) of Regulation (EU, Euratom) No 966/2012.
General provisions on types of financing
For the purpose of providing financial assistance under this Title, cooperation between the Union, the ACP States and OCTs may take the form, inter alia, of:
- triangular arrangements by which the Union coordinates with any third country its assistance to an ACP State, OCTs or region;
- administrative cooperation measures such as twinning between the public institutions, local authorities, national public bodies or private law entities entrusted with public service tasks of a Member State or an outermost region, and those of an ACP State or OCTs or their region, as well as cooperation measures involving public-sector experts dispatched from the Member States and their regional and local authorities;
- expert facilities for targeted capacity building in the ACP State, OCTs or their region and short-term technical assistance and advice to them, as well as support of sustainable centres of knowledge and excellence on governance and reform in the public sector;
- contributions to the costs necessary to set up and administer a public-private partnership;
- sector policy support programmes, by which the Union provides support to an ACP State's or OCTs' sector programme; or
- interest rate subsidies.
Monitoring and reporting by the Commission and the EIB
The Commission and the EIB shall monitor, each to the extent to which it is concerned, the use of 11th EDF assistance by the ACP States, the OCTs or any other beneficiary, and the implementation of projects financed by the 11th EDF, having particular regard to the objectives referred to in Articles 55 and 56 of the ACP-EU Partnership Agreement and in the corresponding provisions of the Overseas Association Decision.
The budget of the 11th European Development Fund is 30.506.000.000 euro.