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Through Which The "agreement Between The Government Of The Republic Of Colombia And The Government Of The Federal Republic Of Germany On Financial Cooperation" Signed In Bogota On July 19, 2012 Approved

Original Language Title: Por medio de la cual se aprueba el "Convenio entre el Gobierno de la República de Colombia y el Gobierno de la República Federal de Alemania sobre Cooperación Financiera", suscrito en Bogotá el 19 de julio de 2012

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1691 OF 2013

(December 17)

Official Journal No. 49.007 of 17 December 2013

CONGRESS OF THE REPUBLIC

By means of which the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation" is approved, signed in Bogotá on 19 July 2012.

Effective Case-law

THE CONGRESS OF THE REPUBLIC

Having regard to the text of the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogotá on 19 July 2012, which reads:

(To be transcribed: photocopy of the full text of the aforementioned Convention, certified by the Coordinadora of the Internal Working Group of the Treaties of the International Legal Affairs Directorate of the Ministry of Relations Exteriors, a document that is based on the files of that Ministry.

2012 BILL NUMBER 144

by means of which the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogotá, is approved on 19 July 2012.

The Congress of the Republic:

Having regard to the text of the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogotá on 19 July 2012, which reads:

(To be transcribed: photocopy of the full text of the aforementioned Convention, certified by the Coordinadora of the Internal Working Group of the Treaties of the International Legal Affairs Directorate of the Ministry of Relations Exteriors, a document that is based on the files of that Ministry.

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF COLOMBIA AND THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY ON FINANCIAL COOPERATION.

The Government of the Republic of Colombia, and the Government of the Federal Republic of Germany.

the United States for deep historical ties and resolved or to favor and effectively promote relations through an associative cooperation for development, on the basis of the principles of independence, sovereignty and non-interference in internal affairs and with the desire to strengthen the bonds of friendship-they have agreed on the following:

ARTICLE 1. OBJECTIVES OF DEVELOPMENT COOPERATION.

The Government of the Federal Republic of Germany and the Government of the Republic of Colombia (hereinafter referred to as the "Contracting Parties") shall cooperate in the fight against poverty and in order to achieve their economic, social and economic development. environment, among others. They will jointly advocate for sustainable global development, which is equally reflected in economic performance, social justice, ecological sustainability and political stability.

ARTICLE 2. CONVENTION OBJECTIVE

The objective of this Convention is to establish the legal framework that will govern the Financial Cooperation between the Contracting Parties, for the financing of development-oriented activities, in accordance with the constitutional and laws of their States as well as the principles of international law.

ARTICLE 3. FOUNDATIONS OF FINANCIAL COOPERATION

(1) For Financial Cooperation as an instrument of development cooperation the principles, procedures and obligations agreed below, which form the basis for the agreement of development measures between the Parties, shall apply. Contractors and implementing agreements governed by the private law that specify them.

(2) Before agreeing on development measures, the Contracting Parties shall maintain an associative dialogue on the basis and current issues of reimbursable and non-reimbursable financing. In the interest of efficiency and coordination among governments, in the case of reimbursable financing, 1 National Planning Department of the Republic of Colombia will carry out, in coordination with the Ministry of Finance and Credit Public of the Republic of Colombia, or who does its times, the identification and prioritization of the projects subject to financing. In the case of non-reimbursable financing, the coordination in the identification and prioritization of the projects subject to financing will be in the head of the Presidential Agency of International Cooperation of Colombia, APC Colombia, or who does his or her times. The Contracting Parties shall agree on the objectives, the priorities of the development measures and the Colombian implementing entities of the Financial Cooperation in the intergovernmental negotiations (the results of which will be translated into the Proceedings). Final) or other intergovernmental arrangements.

ARTICLE 4. DEFINITIONS.

The following definitions shall be used in the framework of this Convention:

1. Financial Cooperation: All measures for the development of a repayable or non-refundable nature made by the Kreditanstalt für Wiederaufbau-Institute of Credit for Reconstruction (KfW) and the German Investment and Development Society (DEG) as part of its activity as a German implementing body;

2. Development Measures: Any project or programme agreed between the Contracting Parties within the framework of Financial Cooperation;

3. Financing: Facilitating funds through loans, and financial contributions;

4. Development credits: Loans granted within the framework of the Financial Cooperation in accordance with the rules applicable to both States. In this context, funds from the Government of the Federal Republic of Germany and funds from a German implementing body will be combined;

5. Loans: Financing for interest and repayable;

6. Financial contributions: Non-interest and non-refundable financial cooperation funds (grants);

7. Benefits: Contributions in money or in kind, or a combination of both;

8. German implementing bodies: Bodies or organisations such as those referred to in Article 5, paragraph 4, to which the Government of the Federal Republic of Germany has entrusted the implementation of the development;

9. Borrower: It is the Colombian entity that receives the resources of Financial Cooperation reimbursable and is obliged to return a loan granted by the Government of the Federal Republic of Germany, through the German implementing agency, in the framework of Financial Cooperation;

10. Colombian executing entity: It is the Colombian entity responsible for the use of the resources of the Reimbursable Financial Cooperation and that assumes the obligations of technical, budgetary, financial, contracting, execution and sustainability of the investments necessary to meet the objectives and objectives of the project or programme established in the respective loan agreement. The executing entity will sign the loan contracts;

11. Recipient: A beneficiary of a financial contribution (subsidy) granted under the Financial Cooperation non-reimbursable by the Government of the Federal Republic of Germany through a German implementing agency. The recipient will sign the financing contracts;

12. Measures Agreement: Instrument of international law signed by the Contracting Parties in accordance with Article 5, paragraph 1, on the implementation of the development measures;

13. Final Act of the Intergovernmental Negotiations: Document entered into by the Contracting Parties in accordance with Article 3, paragraph 2, which is not a legally binding instrument;

14. Implementing agreements: Contracts governed by private law on the basis of agreements in accordance with the provisions of Article 5, paragraph 1, or on the basis of intergovernmental negotiations or other intergovernmental arrangements, in accordance with Article 3, paragraph 2, and which shall be subject to the legal provisions in force in the Federal Republic of Germany (in particular contributions finance, loan agreements, as well as the special agreements to be concluded by the contracts and other contractual arrangements in relation to these contracts). All authorizations to be granted by the Colombian side will be subject to the legal provisions in force in the Republic of Colombia;

15. Loan contracts: Implementation agreements in the framework of the reimbursable Financial Cooperation. They are signed by the German implementing agency, the borrower and the Colombian implementing entity;

16. Contracts for financial contributions: Implementation agreements in the framework of non-refundable financial cooperation. They are signed by the German implementing agency, the Presidential Agency of International Cooperation of Colombia, APC-Colombia (or whoever does its times) and the recipient;

17. Current expenses: Operating expenses including maintenance expenses.

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ARTICLE 5. AGREEMENT ON DEVELOPMENT MEASURES.

(1) Contracting Parties may sign, on the basis of this Convention and as a result of intergovernmental negotiations within the meaning of Article 3, paragraph 2, agreements on measures governed by the law (a) international, complementary, on one or more development measures. These set out in particular the objectives, the intended uses and the benefits, as well as, given the case, the Colombian implementing entities and the recipient or borrower of the financing.

(2) The obligation of the Government of the Federal Republic of Germany to fulfil the benefits is born on the condition that the Government of the Federal Republic of Germany has considered that the development measure is worthy of support. It shall be without effect if the Government of the Republic of Colombia does not perform its benefits under Article 7or Article 8 of this Convention, or does not comply with its obligations as stipulated in these articles.

(3) The Contracting Parties shall adopt the necessary arrangements for the implementation of the development measures, entrust the implementation to the implementing entities and authorize them to adopt implementing agreements. concrete.

(4) The Government of the Federal Republic of Germany shall entrust the implementation of concrete development measures within the framework of the Financial Cooperation to the KfW the SDR or the entity that it does its times.

(5) When a development measure has been deemed to be worthy of support as provided for in paragraph 2, the German implementing agency shall sign the implementing agreements with the Colombian implementing entity, the borrower or the recipient. and the Presidential Agency of International Cooperation of Colombia, APC-Colombia (or whoever does its own times) when it comes from.

(6) In the case of development credits, the creditworthiness of the borrower shall be a condition added to that set out in paragraph 5 for the conclusion of the execution agreement.

(7) Binding provisions will be agreed upon in the implementation agreements, especially with respect to:

1. The objectives pursued with the development measure and its financing;

2. The execution time, organizational and technical structure of the development measure and its financing;

3. The benefits of participating entities;

4. The procedure for the award of orders (works, goods and services) in the case of financing;

5. The consequences of non-compliance with contractual obligations.

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ARTICLE 6. BENEFITS AND OBLIGATIONS OF THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY.

(1) The Government of the Federal Republic of Germany shall encourage measures for the development of Financial Cooperation, through financing and all other agreed benefits by common agreement.

(2) Benefits may include the preparation, implementation and monitoring of progress in development measures.

(3) In the case of financing, the Government of the Federal Republic of Germany shall grant to the Government of the Republic of Colombia, or to other recipients which the Contracting Parties appoint by common agreement, the possibility of obtaining the German executor the amounts to be agreed in accordance with the provisions of Article 5or.

(4) The Government of the Federal Republic of Germany will grant the Government of the Republic of Colombia the possibility of obtaining financial contributions for special measures (environmental protection measures, credit guarantee funds for small and medium-sized enterprises, self-help measures aimed at combating poverty, measures aimed at improving the social situation of women or other areas which meet the criteria of German budgetary legislation), provided that they are has explicitly agreed in the agreement on measures governed by international law, pursuant to Article 5, paragraph 1, or in intergovernmental negotiations or other intergovernmental arrangements in accordance with paragraph 2 of Article 3, and after examined in accordance with Article 5, paragraph 5, it is noted that the objectives pursued with this financing may be achieved.

(5) In the case of development credits, the Government of the Federal Republic of Germany declares itself ready to refinance in part loans from a German implementing agency, to make available financial funds for the grant of interest, to assume, in accordance with the internal guidelines of the Federal Republic of Germany, and as long as the respective coverage requirements are met, guarantees or to enable these development credits by other means.

(6) The Government of the Federal Republic of Germany will provide the Government of the Republic of Colombia with the possibility of obtaining financial contributions for additional measures necessary for the implementation and attention of development as long as it has been agreed in the agreement of measures in accordance with Article 4, paragraph 12, or in the intergovernmental negotiations or other intergovernmental arrangements, in accordance with the Article 3, paragraph 2, and when after examination in accordance with Article 5, paragraph 5, it is noted that the objectives pursued by the supplementary measure can be achieved.

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ARTICLE 7. BENEFITS AND OBLIGATIONS OF THE GOVERNMENT OF THE REPUBLIC OF COLOMBIA.

(1) The Government of the Republic of Colombia will contribute to the development measures agreed as follows:

1. It shall ensure compliance with the specific benefits specified in the implementing agreements;

2. In the case of financing, it shall ensure that the German implementing body is in charge in accordance with Article 5, paragraph 4, for the verification of the regulatory and economic use of the funds;

3. In the case of financial fund facilitation, it will ensure full financing of the development measures;

4. It shall bear the current costs of the development measures, unless otherwise otherwise provided for in the implementing agreements;

5. It shall provide at the expense of the necessary experts and local auxiliaries in each case, unless otherwise otherwise provided for in the implementing agreements;

6. It will be responsible for the future of the facilities created by the development measures or will continue with the structural reform supported, unless otherwise specified in the implementing agreements;

7. It shall be vexatious because all the bodies involved in the implementation of this Convention and the arrangements for measures are informed in a timely and detailed manner of the content of the measures;

8. It will recognise for all funding flows (redemptions, disbursements and remaining funds, among others) the need to provide timely and sufficient freely transferable currency and the free conversion of the necessary local currency. for this. It shall endeavour to comply with this requirement at all times, within the time limit laid down in the implementing agreements and in the framework of national legislation;

9. It shall ensure that the German implementing bodies are not in a position of disadvantage vis-à-vis the multilateral financial institutions in the service of external debt.

(2) The Government of the Republic of Colombia will grant for the implementation of the development measures agreed under Article 5 the following provisions concerning taxes and other public taxes national order:

1. It shall exempt the German implementing agencies from all taxes and public charges of national order which are caused in the Republic of Colombia, and which are due in connection with the conciliation procedure and the validity of the implementing agreements. of the financing;

2. Exempt from national public order taxes and charges for all payments for the service of the acquired debt;

3. Care that the taxes and public charges of national order assumed by the Colombian implementing entity are not financed from the financial funds provided by the German implementing agencies;

4. Exempt from taxes and public charges of national order the contracts to be concluded for the performance of any of the development measures that are carried out with financial contributions, as well as the acquisition of goods and/or services and financial transactions that are made directly with the monies from the resources received as financial contributions.

ARTICLE 8. GUARANTEES

(1) In the case of loan contracts with public entities other than the Government of the Republic of Colombia, which have a sovereign guarantee, the Government of the Republic of Colombia undertakes to guarantee to the German implementing agency specified in Article 5 , paragraph 4, payments in compliance with the obligations of the borrower or recipient and to ensure the proper use of the funds coming from the German cooperation, so that avoid any claims for repayment which may result from the contracts loan.

(2) In the case of loan contracts with public entities other than the Government of the Republic of Colombia, which do not have the sovereign guarantee, the Government of the Federal Republic of Germany will examine, depending on the type of project and/or public entity, if it can waive the requirement for such a guarantee or have to waive the execution of the project.

(3) In the case of non-refundable Financial Cooperation, compliance with the obligations entered in the financing contracts shall be ensured with the relevant German implementing body.

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ARTICLE 9. REPLACING DEVELOPMENT MEASURES.

(1) The development measures specified in Articles 3 and 5 may be replaced by other Financial Cooperation development measures if the Government of the Republic Federal of Germany and the Government of the Republic of Colombia so agree.

(2) If a development measure for which a financial contribution was provided in accordance with Article 6 paragraph 4 is replaced by others, the financial funds shall be made available only as financing when the special conditions are confirmed. Otherwise, the financial funds shall be made available as a loan.

(3) Those development measures for which development credits have been agreed may not be replaced by others.

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ARTICLE 10. DEADLINE FOR THE PROCUREMENT OF FUNDS.

The obligations agreed in accordance with Articles 6 and 7 will be void if the respective execution agreements are not signed within eight years, counted from the year of authorization of the funds.

ARTICLE 11. APPLICABILITY OF OTHER CONVENTIONS.

This Convention does not affect the provisions of the Convention on Technical Cooperation concluded between the Government of the Federal Republic of Germany and the Government of the Republic of Colombia on 26 May 1998 and entered into force on 28 June 1998. February 2001.

ARTICLE 12. DISPUTE RESOLUTION

Any dispute which may arise between the Contracting Parties concerning the interpretation or application of this Convention shall be settled by direct negotiations between the Contracting Parties. In the event that these negotiations are not successful, the dispute will be subjected to the remaining means of peaceful resolution recognized by international law.

ARTICLE 13. FINAL PROVISIONS.

(1) This Convention shall enter into force on the date on which the Government of the Republic of Colombia has communicated to the Government of the Federal Republic of Germany that the necessary internal requirements for the entry into force have been fulfilled. The date of receipt of the communication shall be decisive for this purpose.

(2) The Contracting Parties may agree to amendments to this Convention. For the entry into force of the amendment agreements, the provisions of paragraph 1 shall apply mutatis mutandis.

(3) This Convention shall govern indefinitely. Any Contracting Party may denounce it by written notification addressed to the other Party, which shall enter into effect within 30 days of receipt by the other Party.

(4) The denunciation of this Convention shall not affect any projects that are being implemented.

(5) Immediately after the entry into force of this Convention, the Government of the Republic of Colombia shall register with the Secretariat of the United Nations in accordance with Article 102 of the Charter of the United Nations. The Government of the Federal Republic of Germany shall be informed of the fact that it has taken place by providing it with the registration number of the United Nations as soon as confirmation has been received from the Secretariat of the United Nations. United.

Made in Bogota, on July 19, 2012, in two copies, in German and Spanish, both texts being equally authentic.

REASON EXPOSURE

Honorable Senators and Representatives:

On behalf of the National Government and in compliance with the provisions of Articles 150 numeral 16, 189 numeral 2 and 224 of the Political Constitution of Colombia, we present to the honorable Congress of the Republic the bill by means of which the " Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation, signed in Bogotá on 19 July 2012.

I. PREVIOUS CONSIDERATIONS

International cooperation is a fundamental aspect of the Colombian State's foreign policy. This is one of the most important tools for advancing effective integration into the axes of integration and development and complements national efforts in economic, social and environmental matters. For his part, he positions Colombia as a weight player in the international community.

This tool makes it possible to improve the living standards of the population, economic development, protection of the vulnerable population, promotion of human rights and all those contributions and constructions whose purpose is to growth of the recipient country.

Colombia has become a nation capable of leading real strategic alliances that seek development, contributing talent and experience in a horizontal dialogue with the international community.

Taking into account the current context, the transformations that have been part of Colombia's cooperation policy, and, hand in hand, the positive agenda that the current government has been implementing, in which a country with high levels is shown. expectations of growth, attractiveness for investment and tourism and with various innovative experiences arising from its development process, has allowed decisive steps in the field of cooperation to be taken and leadership in the region, in particular on the issue of South-South cooperation. The country enjoys great international recognition and is a reference point for other countries that have similar situations and challenges to those of Colombia.

However, it is important to take into account external variables that in one way or another affect the cooperation policy of bilateral or multilateral sources, such as the current economic crisis or that Colombia has been listed as a high-income country. The above has generated a context in which the non-rembable financial cooperation and the technical cooperation offered by the sources has been greatly diminished.

As a result, the national government has established a more strategic cooperation policy, aimed at complementing the efforts of the National Government to achieve better and higher levels of development, within the framework of the ultimate objective of democratic prosperity.

For the Colombian State it is of great importance to diversify the modalities of cooperation and to include new ones such as triangular cooperation or repayable financial cooperation.

II. COOPERATION WITH THE FEDERAL REPUBLIC OF GERMANY

The bilateral relations between Colombia and Germany have been characterized by their dynamism and have been strengthened over the years in a special way in the area of International Cooperation. Germany is one of the main contributors to cooperation resources and one of the few states that has not reduced its contribution of non-rembolsable money for the next few years, taking into account the current and changing scenario of cooperation. international, prescribed by the economic landscape of the European States.

The consolidation of a legal framework governing financial relations with Germany is of vital importance for the country, as it will energize non-reimbursable and rembable cooperation, which is translated for Colombia in the execution of new projects of social, economic, environmental, peace and justice impact, areas of vital importance for the development of the country and for the fulfillment of the goals of the current government.

In Colombia, German development cooperation defines its fields of action through preparatory meetings, called "Intergovernmental Consultations". Subsequent to these, the "Intergovernmental Negotiations" are carried out through which the previously agreed fields of action are evaluated and ratified. The last Intergovernmental Negotiations took place in December 2010 in Bonn, Germany, and the next ones are planned to be held in Bogota, Colombia, before the end of 2012.

In the 2009 Intergovernmental Consultations, the first space for negotiations between Colombia and Germany was established, in order to establish the areas of work between the two governments, which were ratified in the negotiations. Intergovernmental, December 16 and 17, 2010, in Bonn, Germany.

For the technical and financial cooperation allocations a total of € 119.5 million was stipulated, of which EUR 105 million are allocated to projects or programmes of financial cooperation and EUR 14.5 million to projects or programmes of technical cooperation.

It is important to note that only projects that have been agreed upon in the Intergovernmental Negotiations are encouraged. The basis of German cooperation is the development strategies of the countries, so the principle of alignment of the "Declaration" is notorious on the agenda of cooperation with that State. In this sense, the cooperation implemented by Germany in Colombia is aligned with the Colombia National Development Plan "ProsperityAll" 2010-2014 and the Strategy of Colombia International Cooperation ENCI 2012-2014, a document that was shared with different actors including the international community, civil society and the National Government, with a view to achieving a better articulation, harmonisation and coordination between sectors.

In this sense, it should be noted that human rights, peace and crisis prevention have been the historic priority in the relations of the two states. It shows that until 2010, the cooperation of Germany towards Colombia was mainly focused on the area ofDevelopment of Peace and Prevention of Crisis".

However, while the strategy with the German government aims to strengthen ties of cooperation on issues such as peace-building, the cooperation agenda with that country has included new issues such as the environment, science and technology, economic and social development, as well as consolidation of trade and investment, among others.

This shows that, in the 2010 Intergovernmental Negotiations, a new priority area was included in the area of cooperation called "Environmental, Protection and Sustainable Use of Resources". Natural"and a new area called"Sustainable Economic Development" is currently under negotiation.

Bilateral cooperation and official development assistance is mainly channelled through the German Federal Ministry for Economic Cooperation and Development (BMZ), in coordination with the German Technical Cooperation Agency (Deutsche Bank). Gesellschaft für Internationale Zusammenarbeit (GIZ), which concentrates the competence and experience of three organizations: DED, GTZ and InWent, in this unique organization.

The Ministry of Financial Cooperation-BMZ sets out the fundamental lines and concepts on which German development policy is based and establishes long-term strategies for determining cooperation between Germany and other countries. actors.

In Colombia, GIZ (technical cooperation agency) aims to support peace building processes, strengthening the rule of law and supporting the implementation of the Law of Justice and Peace.

Additionally, financial cooperation, defined as all development measures of a repayable or non-reimbursable character, is carried out by the Kreditanstalt für Wiederaufbau-Institute of Credit for Reconstruction (KfW) and the German Investment and Development Company (DEG).

The Institute for Reconstruction (KfW) aims to allocate financial resources to contribute to and complement the efforts of the National Government, in the fight against poverty, environmental protection and the consolidation of peace.

The direct negotiating partners of the Federal Ministry of Economic Cooperation and Development (BMZ) in the area of technical cooperation and non-refundable financial cooperation are the Colombian Foreign Ministry who in coordination With the Presidential Agency of International Cooperation of Colombia-APC, they define the programs and cooperation projects; and for the case of the repayable financial cooperation is the Ministry of Foreign Affairs along with the Ministry of Hacienda y Crédito Público and the National Department of Planning (DNP).

In addition to bilateral cooperation there is multilateral development cooperation. The German Government supports organisations operating globally, such as the International Committee of the Red Cross, the World Bank, regional development banks, funds and programmes of the United Nations.

Colombia has benefited from different cooperation projects developed by the German government in the country. Among these projects, projects can be mentioned in the area of consolidation, reparation to victims of conflict, justice, institutional strengthening, biodiversity and water and basic sanitation, among others.

III. BACKGROUND AND CONTENT OF THE CONVENTION

The negotiations of the "Agreement between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogotá, on 19 July 2012 (hereinafter: "Convention") The Ministry of Finance and Public Credit (MHCP), the Ministry of Finance and Public Credit (MHCP), have been carrying out a wide consultation process with the relevant Colombian entities since 2009. The National Department of Planning (DNP); the Bank of the Republic and the Directorates of the Protocol and International Legal Affairs of the Foreign Ministry.

The Convention consists of 13 articles. The following is a brief explanation of each of them:

-- 1or. Consets the goal of development cooperation and highlights the importance of continuing in the fight against poverty, promoting sustainable, social, and economic development, among others.

-- 2or. It sets out the objective of the Convention, which is to define the legal framework for financial cooperation between the Government of Colombia and the Government of Germany. The importance of the activities that are developed within the framework of the Convention is highlighted in accordance with the constitutional and legal norms of both States as well as with the principles of international law. The Convention will allow for the development of activities, projects or programmes of benefit to Colombia, with both reimbursable and non-reimbursable financial contributions from the German Government.

-- 3or. The basis or principles to be governed by the Convention are laid down and the importance of maintaining the dialogue between the parties and of establishing the actions or projects to be developed is mentioned. It is also defined that, for the financial cooperation of a refundable nature (loans), the actions must be carried out in accordance with the National Planning Department and the Ministry of Finance and Public Credit; and for the operations Non-reimbursable financial services, with the Presidential Agency of International Cooperation of Colombia (APC). The above, with a view to respecting the regular pipeline of financial operations in Colombia and the procedures used to make them effective.

-- 4or. Contains the definitions of the different terms used in the Convention, including clearly financial concepts (inter alia, measures agreement, benefits, development credits). The purpose of this article is to prevent confusion or discrepancies between the Parties in the future.

-- 5or. Refers to the Agreements on Development Measures, which consist of complementary agreements through which the objective, the amount, the implementing entities and the remaining specificities are set project techniques which will be subject to such contributions. In addition, the consequences of non-compliance with contractual obligations will be established in the specified supplementary agreements.

-- 6or. Consagra the commitments assumed by the Government of the Federal Republic of Germany at the time of signing the text. In particular, it is highlighted that the German Government will grant the Government of Colombia, if required, contributions of financial cooperation for projects or programmes that have previously been agreed between the parties.

-- 7or. Stipulates the commitments assumed by the Government of the Republic of Colombia, once the financial contribution is agreed with the German Government. In this article, it is important to note that the National Tax and Customs Directorate-DIAN conceptualized that the national government could commit to exempt the German implementing agencies from taxes and levies of the national order, only, and in particular they were delimited as follows:

(i) exempting the German implementing agencies from all taxes and public charges of national order which are caused in the Republic of Colombia and which are due in connection with the concertation and during the validity of the execution of the financing.

(ii) Exempt national public order taxes and charges to all payments for the service of the acquired debt;

(iii) To take care that the taxes and public charges of national order assumed by the Colombian implementing entity are not financed from the financial funds provided by the German implementing agencies; and

(iv) Exempt national taxes and public charges for contracts that are to be concluded for the performance of any of the development measures that are executed with financial contributions, as well as the acquisition of goods and/or services and financial transactions that are carried out directly with the money from the resources received as financial contributions.

It is important to note that the concept issued by the specified entity was incorporated in its entirety into the Convention. This is in accordance with the Colombian regulations governing the matter. Specifically in what makes mention of financial contributions (grants) Colombian legislation, in article 96 of Law 788 of 2002, states that they are exempt from any tax, tax or contribution, funds from aid or donations from foreign entities or government, agreed with the Colombian Government, intended to carry out joint utility programs, covered by intergovernmental agreements.

-- 8or. Highlights that for those contributions that have the sovereign guarantee granted by the Government of Colombia, the same is committed to guarantee to the German implementing agency the payments that are made in case the contributions come from (a) to ensure that the funds from German cooperation are properly used, i.e. that they are intended for projects which were previously agreed between the parties. The purpose of this Article is to grant the German Government the guarantee of payment of the debt, and to ensure a good use of the contributions.

-- 9or. It allows changes in projects subject to being financed by contributions from the German Government. In this sense, if the Parties agree that the contribution will be allocated to a project, but that due to external factors or changes in the development objectives of the two States, they decide jointly to allocate the contributions to a new project, could make the change without having any adverse consequences.

-- Article 10. Fixed the deadline for the obligations, that is, if the execution agreements for the contributions are not signed within eight (8) years, counted from the authorization year of the funds, will have no effect, and the parties would have to agree if a move is made to another project or if they are not used.

-- Article 11. Mentions that the provisions contained in the "Convention on Technical Cooperation between the Government of the Federal Republic of Germany and the Federal Republic of Germany" will not be affected. Government of the Republic of Colombia ", made on 26 May 1998 and entered into force on 28 February 2001.

-- Article 12. Sets the mechanism by which the controversies that may arise between the Parties in relation to the interpretation or execution of the Convention will be resolved.

-- Article 13. Consagra the final provisions, including the entry into force of the instrument and the amendments that can be made to it.

IV. FINAL CONSIDERATIONS ABOUT CONVENTION APPROVAL

It is considered that the passage of the Bill through which the Convention is approved is important, priority and advantageous for the country for the following reasons:

-- As set out in the "National Development Plan 2010-2014" and the document "Bases of the National Development Plan 2010-2014 Prosperity for All", one of the major cross-cutting axes on "The progress of the National Development Plan is to achieve"greater international relevance for Colombia in international markets, in international relations, and in the multilateral agenda of the development and cooperation". In this sense, the national government has sought to expand its sources of financing and to achieve new cooperation agreements on both technical and financial matters, which will allow it to diversify resources, reduce costs and obtain technical support. in order to achieve the objectives set out in national and regional development.

-- Following this line, the national government has conducted negotiations with the Federal Republic of Germany, in order to advance the fulfillment of the commitment acquired in the specified Plan, resulting in the present Financial Cooperation Agreement, by means of which the general guidelines are established within which the financing of development-oriented activities will be carried out, in accordance with the constitutional and legal norms of both States.

-- This Convention is the result of several years of joint work, in which the German Government and national government entities reached common points that are framed in the policies of the countries and that generate a benefit for both countries. parts. Similarly, the Convention becomes an instrument that allows projects to be carried out with Germany to be aligned with the Colombian Development Plan.

-- It is necessary to emphasize that the Convention is required to access credit resources with Germany that will allow financing development projects identified as priorities by the Colombian Government entities.

-- Similarly, with the signing of the Convention, the commitment to cooperate in the fight against poverty is contemplated, in order to achieve greater economic and social development and protect the environment, inter alia. Likewise, the Parties undertake to work together to achieve sustainable development, which is reflected equally in economic performance, social justice, ecological sustainability and political stability, as raised in the first article of the Convention.

For the reasons stated above, the National Government, through the Minister of Foreign Affairs, requests the Honorable Congress of the Republic to approve the "of Law by means of which the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany" on Financial Cooperation, signed in Bogotá, Colombia, on 19 July 2012. "

Of Honorable Congressmen,

The Foreign Minister,

MARIA ANGELA HOLGUIN HANG.

THE UNDERSIGNED COORDINATOR OF THE INTERNAL WORKING GROUP OF TREATIES OF THE DIRECTORATE OF INTERNATIONAL LEGAL AFFAIRS OF THE MINISTRY OF FOREIGN RELATIONS OF THE REPUBLIC OF COLOMBIA

CERTIFIES:

That the reproduction of the text above is a faithful and complete photocopy of the original text of the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Cooperation financial", signed in Bogotá, on July 19, 2012, a document that rests in the archives of the Internal Working Group of the Treaties of the Directorate of International Legal Affairs of this Ministry.

Dada in Bogotá, D. C., at two (2) days of the month of August of two thousand twelve (2012).

The Coordinator of the Internal Working Group of the Treaties Directorate of International Legal Affairs,

ALEJANDRA VALENCIA GARTNER.

EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá, D. C.,

Authorized. Submit to the consideration of the honorable Congress of the Republic for the constitutional effects.

(Fdo.) JUAN MANUEL SANTOS CALDERÓN.

The Foreign Minister,

(Fdo.) Maria Angela Holguin Cuellar.

DECRETA:

Ir al inicio

ARTICLE 1o. Approve the "Agreement between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogota, 19 July 2012.

Ir al inicio

ARTICLE 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on financial cooperation, signed in Bogota, on July 19, 2012, which by the first article of this law is approved, will force the country from the date on which the international link with respect to them is perfected.

Ir al inicio

ARTICLE 3o. This law governs from the date of its publication.

Dada en Bogotá, D. C., a

Presented to the honorable Congress of the Republic by the Minister of Foreign Affairs.

The Foreign Minister,

MARIA ANGELA HOLGUIN HANG

1998 424 LAW

(January 13)

by which the follow-up to the international conventions signed by Colombia is ordered.

The Congress of Colombia

DECRETA:

Item 1or. The national government through the Foreign Ministry will present annually to the Senate and House Foreign Relations Committees, and within the first thirty calendar days after the legislative period beginning every 20 years. July, a detailed report on how the existing international agreements signed by Colombia with other States are being complied with and developed.

Article 2or. Each dependency of the national government responsible for implementing the international treaties of its competence and requiring reciprocity in them, will transfer the relevant information to the Ministry of Foreign Affairs and the Ministry of Foreign Affairs. Second.

Item 3or. The full text of this law shall be incorporated as an annex to any and all international conventions which the Ministry of Foreign Affairs presents to the Congress.

Article 4or. This law governs from its enactment.

The President of the honorable Senate of the Republic.

Amylkar Acosta Medina.

The Secretary General of the honorable Senate of the Republic,

Pedro Pumarejo Vega.

The President of the honorable House of Representatives,

Carlos Ardila Ballesteros.

The Secretary General of the honorable House of Representatives,

Diego Vivas Tafur.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santa Fe de Bogota, D. C., on January 13, 1998.

ERNESTO SAMPER PIZANO

The Foreign Minister,

Maria Emma Mejia Velez.

EXECUTIVE BRANCH OF PUBLIC POWER

PRESIDENCY OF THE REPUBLIC

Bogotá, D. C., at August 28, 2012

Authorized. Submit to the consideration of the honorable Congress of the Republic for the constitutional effects.

(Fdo.) JUAN MANUEL SANTOS CALDERÓN.

The Foreign Minister in charge of the

's Office Functions

(Fdo.) Maria Angela Holguin Cuellar.

DECRETA:

Ir al inicio

ARTICLE 1o. Approve the "Agreement between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on Financial Cooperation", signed in Bogota, 19 July 2012.

Ir al inicio

ARTICLE 2o. In accordance with the provisions of Article 1 of Law 7ª of 1944, the "Convention between the Government of the Republic of Colombia and the Government of the Federal Republic of Germany on financial cooperation, signed in Bogotá on July 19, 2012, which by the first article of this law that is approved, will force the country from the date on which the international link with respect to them is perfected.

Ir al inicio

ARTICLE 3o. This law governs from the date of its publication.

The President of the honorable Senate of the Republic,

JOHN FERNANDO CHRIST BUSTS.

The Secretary General of the honorable Senate of the Republic,

GREGORIO ELJACH PACHECO.

The President of the honorable House of Representatives,

HERNAN PENAGOS GIRALDO.

The Secretary General of the honorable House of Representatives,

JORGE HUMBERTO MANTILLA SERRANO.

COLOMBIA-NATIONAL GOVERNMENT

Communicate and comply.

Execute, subject to revision of the Constitutional Court, pursuant to article 241-10 of the Political Constitution.

Dada en Bogotá, D. C., 17 December 2013.

JUAN MANUEL SANTOS CALDERÓN

The Foreign Minister,

MARIA ANGELA HOLGUIN HANG.

The Minister of Finance and Public Credit,

MAURICIO CÁRDENAS SANTAMARIA.

Ir al inicio