It is envisaged that implementation of Sapard should have an institution building effect in the countries concerned. The Special Accession Programme for Agriculture and Rural Development (Sapard) will require, for each of the 10 applicant countries referred to in Article 1(1) of Regulation (EC) No 1268/1999, the follow up of numerous projects, each of which is generally of limited financial dimension. Delegation of management tasks to the applicant country is desirable and Article 12(2) of Regulation (EC) No 1266/1999 provides for the possibility to confer such management to the applicant country. Sapard management should therefore be organised through agencies in the applicant countries in accordance with that decentralised approach.

EAGGF Guarantee provisions laid down in Regulation (EC) No 1663/95 concern mainly the payment function. The agencies in the applicant countries however will need to dispose of both that function plus an implementation function, appropriate criteria necessary also for that function therefore need to be laid down.

It is appropriate that accreditation may also be provisionally granted subject to the respect of essential/minimum criteria.

For the Commission to waive the ex ante approval stipulated in Article 12(1) of Regulation (EC) No 1266/1999 and to confer management of the aid on an applicant country, the national accreditation of the Sapard agency in the applicant country needs to be approved.

It is appropriate, where possible, to use existing structures in applicant countries for certain financial operations in each of these countries there is already a national fund through which PHARE monies are transferred and paragraph 2(v) of the Annex to Regulation (EC) No 1266/1999 provides that the national authorising officer shall bear the full financial responsibility and liability for the funds. It is therefore appropriate for Sapard purposes that the national fund in each applicant country be the competent authority which accredits the Sapard agency and supervises subsequent compliance with the accreditation criteria. The national authorising officer shall be the contact point for financial information between the Commission and the applicant country.

Article 12(2) of Regulation (EC) No 1266/1999 foresees execution of ex post controls by the Commission.The EAGGF clearance of accounts procedure is an efficient system to audit payments of the decentralised agencies and, if necessary, to recover irregular or undue payments from the applicant countries.

Sapard implementing rules should be fixed in bilateral agreements to be concluded between the Commission and each applicant country. The Commission and each applicant country should therefore draw up a multiannual financing agreement in which the conditions determining the use of the Sapard contribution will be set out. Annual financing agreements should set out the financial contribution of the Community.

To protect the financial interests of the Community, applicant countries should have similar obligations as Member States with regard to controls carried out by Community agents on the Sapard monies.

The measures provided for in this Regulation are in accordance with the opinion of the Committee of the European Agriculture Guarantee and Guidance Fund (EAGGF),