1. For the first year of accession, the Union shall provide temporary financial assistance, hereinafter referred to as the "Transition Facility", to Bulgaria and Romania to develop and strengthen their administrative and judicial capacity to implement and enforce Community legislation and to foster exchange of best practice among peers. This assistance shall fund institution-building projects and limited small-scale investments ancillary thereto.
2. Assistance shall address the continued need for strengthening institutional capacity in certain areas through action which cannot be financed by the Structural Funds or by the Rural Development funds.
3. For twinning projects between public administrations for the purpose of institution building, the procedure for call for proposals through the network of contact points in the Member States shall continue to apply, as established in the Framework Agreements with the Member States for the purpose of pre-accession assistance.
The commitment appropriations for the Transition Facility, at 2004 prices, for Bulgaria and Romania, shall be EUR 82 million in the first year after accession to address national and horizontal priorities. The appropriations shall be authorised by the budgetary authority within the limits of the financial perspective.
4. Assistance under the Transition Facility shall be decided and implemented in accordance with Council Regulation (EEC) No 3906/89 on economic aid to certain countries of Central and Eastern Europe.