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Vol.1975/0248

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COMMISSION OFTHEEUROPEAN COMMUNITIES
i
COM(75)682final.
i "
[Brussels.22December1975
'•. '1,'
COMMISSION REPORTTOTHECOUNCIL ;
\
ontheadministration offinancialandtechnicalcooperationm
respectoftheoverseascountries,territories anddepartments
in1974
1 ' ■: ^ ■ ,;■.
1 , :' ■ ■1
1 .y
V.-, 1
COM(75)682final

I. OVERALL VIM
This memo deals with theadministration offinancial andtechnical cooperation in
respect oftheOverseas Countries ,Territories andDepartments (OCTD )during 1974 »
thefourth year ofthose countries' association with theCommunity under Council
Decision No70/549/EE.Cof29September 1970 .
Newcommitments infavour oftheOCTD entered into in1974 onthebasis ofthe
above Decision totalled 18833million u.a .,plus 380000u.a .committed from the
second EDF ,inother words atotal of19213million u.a .including 14113million
intheform ofgrants and5«10 million u.a .fortwoloans onspecial terms
approved bythe ]£IB»
Forthepurposes ofcomparison itwill berecalled that commitments amounted to
12.4 million u.a .in1971
1^.6 million u.a .in1972
and16.0 million u.a .in1973 »
Commitmf-nts in1974 were therefore considerably higher than inthepreceding years#
Inall ,ofthe72million u.a .inEDFresources provided forafive-year period
infavour oftheOCTD ,59million u.a .(nearly 82$)have been committed (see
Annex 2).
However ,despite unceasing efforts ,theEIBhas ,forthereasons setoutinits
memo of20December 1974 (seeCouncil Secretariat Memo T/13/75of8January 197b )»
notyetfound projects eligible forfinancing from itsownresources .
Commitments made in1974 were concerned above allwith economic infrastructure and ,
rural production .Special mention must bemade ofthechannelling offinance
towards projects involving themost needy portion ofthepopulation interritories
where theaverage standard ofliving isalready relatively high .This approach
wasworked outwhenaproject concerning IfewCaledonia wa3being appraised
(SeeChapter II,Section 5)« .

-g-
Thenextreport(to'bedrownupin1976)ontheadministration offinancialarid
technicalcooperationinrespectoftheOCTDin1975willpresentanovorall
assessmentofthefive-yenrperiod.
II.IlTOSTKEhT PROJECTSMJ)IWKSTwli;OT-LIMCED TECHNICAL COOPERATION
■>«■!« ■II ■■ .L *1.J1.II.J.Il I I.1JlI
]..Geographical orenkdovm
Commitmentsin1974wereconcernedabovealljwiththeNetherlandsoverseas
countries(15219millionu.a.),whiletheFrenchoverseasterritoriesand•
departmentsreceived3614millionu.a.(seeAnnexl).
Asregardsthelatter,twonewcommitments-foreconomicinfrastructure
investments-wereenteredintofortheTerritoryofWallisandFutunaandthe
DepartmentofGuadeloupe.FortheNetherlands overseascountries,three
decisionsdealtrespectively witharuralproductionprojectinSurinam,an
infrastructure projectaridaneducationalprojectintheAntilles.Inaddition,
threeinvestment-linked technicalcooperation schemesweredecidedon,involving
theAntillesandSurinam.
At31December1974cumulativeaidfortheNetherlands overseascountrieswas
IvirtuallyequalinfinancialvolumetoaidprovidedfortheFrenchoverseas
territories anddepartments ;29214millionu.a.fortheformer,29821millionu.s.,
forthelatter,
2.Breakdownbysector
Theeconomicinfrastructure sectorreceived4&?•<ofthecommitments-forthree
projects,twoofwhichwereparticularly largeintermsofvolume.
IntheNetherlandsAntillestheextensionofCuragaoAirportreceivedcombined
financingtotalling5.4millionu.a.;
1.02millionu.a.asprantaid, '
4.38millionu.a.asaspecialloan.

<•3■*
Thisprojectisintendedtoenabletheairporttobeusedbythejumbojets
broughtintoservicebyanumberofairlinesservingCura9&oar.dthusenable
tourism-oneofthecornerstonesoftheAntilleseconomy.-tobeextended.
Communityaidismainlyconcernedwithextensionwork,suchastheimprovementof
ataxi-way,extensionoftheparkingapron,extensionoftherunwaydrainage
system,thelightingandmarkingsystems,andconstruction ofasectionofroad
toprovideaseconddirectlinkbetweentheairportandtheisland'sroadnetwork.
Itissupplemented byfinancefromNetherlandsbilateralaid,intendedmainlyfor
extensionoftheairterminalandmodification ofequipmentfortheinstrument
landingsystem.
Tht-specialloanabsorbsallthefundsprovidedforunderthethirdEDFforthe
Netherlands zoneandisgrantedonthefollowingterms:
durationyears
periodofgrace10years
interest3>c.
InGuadeloupe,theprojectfortheimprovement ofthePointe-a-Pitreharbourhas
alsoreceivedcombinedfinancingtotalling2908millionu.a.,including
2188millionu.a.intheformofgrantsand720000u.a.intheformofa
specialloanonthefollowingterms:
duration25years
periodofgrace5years
interest3^.
Thisfinancingisfortheconstructionofanewgoods–handlingberth,improvement
ofstorageareasaidrelatedwork,allofwhichisintendedtoenabletheport,
whichisthemostimportantinGuadeloupe,toberunundernormalconditionsof
operationandefficiency,whichwaspreviouslyimpossiblebecauseoftheshortage
ofshedsanddockareasinrelationtothesizeofthedocksandtheirdistance
fromthedocks.
PheFinancingContractwassignedatthebeginningofJunewiththeDepartment
ofGuadeloupebytheCommissionandtheBankastheCommunity'sauthorizedagent.

IntheTerritoryofWallisandFutuna,agrantof366000u.a.wasprovidedfor
theconstructionoftheVele-Poitrack(Futuna).Thissumisto"beusedto
continuethecirculartracklinkingalltheinhabitedpartsoftheisland.One
sectionofthistrack(Vele-Sigave )hasbeenbuiltwithfundsfromthesecond
EDF.
1
Totheseinvestments mustbeaddedanumberofinvestment-linked technical
cooperation measuresconcerningthesupervisionofroad,portandaeronautical
worksintheNetherlandsAntilles(125000u.a.intotal)andtheprovisionof
expertsforthepreparationofroadprojectsinSurinam(45000u.a.).
Theruralproductionsectoraccountedforonlyoneproject,althoughfora
considerable sumofmoney-theStondansie daminSurinam,whichreceivedagrant
of7878millionu.a.Thisprojectaloneaccountedfor41/&oftotalcommitments
enteredintoin1974.Thedam,situatedatStondansieontheNickerieriver,is
intendedtoincreasetheirrigationwatersavailableinthedryseason,the
shortageofwhichisvirtuallytheonlyfactorlimitingthecultivation ofrice
inthecoastal -zoneofnorth-western Surinam.Madeofearth,thisdamwillbe
1200mlongand24mhighandwillprovideareservoirof1000millioncubic
metresofwater.Thiswillenabletheirrigationof10000haofexistingrice
fieldstobeimprovedandwillmakepossiblethedevelopmentof16000haofnew
ricefields-onwhichtwocropswillbegrowneachyearthankstothewater
controlledbythedam.Nationalfinancing-withacontribution fromtheprivate
sector-willfinancethedevelopment ofthenewareas.Itisestimatedthat
byaround1985theseareaswillincreaseJsurinameseexportproductionby
approximately 100000t/yearandthatabovjt2000newjobswillthusbecreated
inconnectionwithpaddycultivation andricemilling;thisshouldcontribute
towardsbetterutilization onalocalbasisoftheworkforceavailableinthe
countryareas.
TheCommunityhasalreadyfinancedinthesameregion,fromthefirstEDF,the
oreationofa10000ha;polder(Europolder)andtheconstructionofadamonthe
I
Nanniriver.

There isalso only oneproject forthesocial sector .This project -the
construction andequipping ofasecondary technical schopl inSeroe Blanco (Aruba )
intheNetherlands Antilles -involves agrant of1436million u.a .(8$oftotal
commitments ). Theproject isintended toenable secondary-level pupils inAruba
(this level ofeducation wasintroduced ontheisland in19^9 )»whoareat
present accommodated inthepremises ofaprimary school which isitself over­
crowded ,toattend lessons under normal conditions .This will involve the
construction andequipping ofabuilding reserved fortheir use .
Thesecondary technical school isvitally important forAruba ,where there isan
acute shortage oftechnicians with secondary-level education .There areopenings
forsuch technicians ontheisland andeven inCura9ao .Since 1971 training
courses have been operating fortechnical teachers ;these will enable theteachers
f
supplied byNetherlands bilateral aidtobeprogressively replaced .
Tothis project should beadded various investment-linked technical cooperation
measures :astudy forhotel schools intheNetherlands Antilles (222000u.a.).
?
technical assistance totheSurinam Public Works Department fortheconstruction
ofbuildings financed bytheEDF (84000u.a.).
3.Use made ofcompleted investment projects
In1974 theCommission collected acertain amount ofinformation ontheusemade
ofanumber ofagricultural projects ,including -asregards theOCT-the
Nickerie andTijgerkreek projects inSurinam .
These polders were created inparticular toenable newland tobealloted to
smallholders tostem themigration tothetowns ,where there arenotenough jobq .
There isnotyetsufficient information ontheusemade ofthese twoprojects to
enable afull assessment tobemade oftheir economic impact .However ,the
results appear tobevery promising since anincrease inthe farmers' standard
ofliving hasalready been observed .

-6-
4.Implementation ofaid
Theacceleration observed over thepast fewyears intheexecution ofprojects
inhand wasconfirmed in1974 .Total contracts concluded in1974 amounted to
89million u.a .,forallthree EDFs ,which represents aninorease of25million u.a .
over thepreceding year (seeAnnex 3forthesituation ofthethird ELF).
This acceleration intheexecution ofprojects ismirrored intheincrease inthe
volume ofdisbursements which ,attheendof1974 »amounted to64million u.a .t
compared with 47million u.a ,thepreceding year ,inother words anincrease of
more than 35$.
5.Choi ceofnewproducts
IntheOD/OTwith arelatively high percapita GDPthere isatendency tofavour
forfinancing "byCommunity aidprojects involving thepoorer section ofthe
population rather than theODorOTconcerned asawhole .
This has ,forexample ,"been thecase with theMoindou-Bourail road project in
NewCaledonia .This road wasgiven high priority laytheTerritory since itwas
tosome extent asocially-motivated scheme which would hardly "benefit thebig
mining companies (whose materials andproducts aretransported byboat )but
rather thelocal population (itwill serve ahighly populated area ,transporting
passenger andconsumer goods ). Theproject wassubmitted totheEDFCommittee
in1974 formixed financing bygrant andbyloan onspecial terms ,butthe
Committee didnotagree tothegrant part oftheCommunity aid .Theterritorial
authorities obtained aloan from aFrench body fortheamount initially intended
tobefinanced bygrant aidandtheproject wassubmitted again totheEDF
Committee bytheCommission inApril 1975 andreceived afavourable opinion in
respect oftheproposal forthefinancing byloan onspecial terms ,Adelegation
from New Caledonia which had inthe meantime come toBrussels indicated that in
future itproposed topresent totheCommission above allprojects ofasocial
nature .

III.GEMMiiTECHNICAL COOPERATION
Traininepro^raEimen
AsinthepastCommunityaidfortraining,whichcoversinvestment-linked and
independent schemes,tookfourdifferentforms:
specifictrainingprojects;
provisionofeducationalinstructors ;
scholarships andin-servicetraininggrants;
traineesh^psandfurthertrainingperiodsattheCommission.
ActivitiesinthisfieldfortheOCTDwereconfinedin1973/74totheawarding
ofscholarshipsandgrantsforin-servicetrainingandcorrespondence courses.
Scholarships andin-servicetraininggrants
In1973/74theCommunitycontinuedwithitstrainingactivitiesunderthemulti-
annualgrantprogrammelaunchedin1972.
I
Inthe1973/74academicyear,79scholarships andin-servicetraininggrants
wereawardedtoOCTDnationalscomparedwith66in1972/73•
ThenumberofscholarshipholdersfromtheNetherlands zone(NetherlandsAntilles
andSurinam)increasedfrom63in1972/73"bo78in1973/74(seeAnnex4).All
ofthesescholarshipholdersarestudyingintheNetherlands.
ThenumberofSurinamesescholarshipholdersfellfrom30in1972/73"to20in
1973/74*TheSurinameseGovernmentdecidedtoassumeresponsibility forall
SurinamesescholarshipholdersstudyingintheNetherlands a3fromSeptember1974
andtodevotethebalanceremainingfromthemultiannualscholarships programme
forSurinamesenationalstotraininginSurinamitself.Theapplicationsfor
localtraininghavenotyetbeenreceivedbytheCommission.
Thebrenlcdovmofscholarships bysectoroftrainingisasfollows(seeAnnex5)5
Economics 8scholarships (109&)
Agriculture 10"(13$)
Technical
studios 33 «"(4tf0)
I-Iedical 13"(l6fa)
Others 15»(19£)
79"(10096)

-8-
Grantsforcorrespondence courses
In1973/74"thereweresixpersonsreceivingsuchgrants:
Countryoforigin:
ComoroArchipelago 1
NewCaledonia 1 j
FrenchPolynesia 1
StPierreandHiquelon 3
6
Sectorsoftraining:Economics 2
Agriculture 1'
Technicalstudies3
6
sas1
1
1
3
6
/

AîŒï.lX1
Breakdownbycountryandbysectorofthecomiritmentdecisions
takenin1974inrespectoftheOCTDunderthe3rdEDP
(in'000u.a.)
Rural
productionéconomie
infrastructureSocial
developinentTechnical
coopérationOverheads TGoai
(l)Iletherlandsg:one 7878- 3020 1436 476 409 15219
IAntilles i5020 1436 347 173 6976
ISurinam7878J129 236 8243
Iofwhich,grants 7878 1020 1436 476 409 11219
I loans 4000 4000
(2)Prenchzone 3274- 340 3614
INewCaledonia50 50
Polynesia 30 30
IWallisandFutuna 336 20 386
IGuadeloupe 2908 180 3088
IReunion 60 60
Jofwhich,grants 2554 340 2894
Jloans I720 720
Total I7878 8294 1436 476 749 18833
Iofwhich,grants I7878 3574 1436 476 749 14113
Jloans I 4720J1.!_4720

AERIX 2
AFARS AND ISSAS 1549
NETHERLANDS
ANTILLES 5924
COMORO ARCHIPELAGO 3745
GUADELOUPE 3808
GUYANA 2584
MARTINIQUE 3616
NEW CALEDOIEEA
FRENCH POLYNSÏA 2881
REUNION 6392
STPIERRE AND
KIQUEL0N
SURINAM 15232
WALLIS AND FUTUNA 681
TOTALGrantfSummary ofanounts corjnitted inrespect oftheOCTD under the 3rdEDF
Situation at31December 1974
(in*000u.a .)
ECOUCIilC AIID SOCIAL IINVESTMENTS
46412Spécial
loans
4000
720
630
1796
7146Interest
rate
subsidiesContribu­
tions tow­
ards risk
cap .form .INVESTMENT
-LIEKED
TECHNICAL
COOPERA­
TIONGEIJ .T...CH .COOP .AID P0R
TOTALBasic and
advanced
trainingOther
activitiesMARKETING
Al® SALES
FROKOî'IOE0V2EHMDS TOTAL
1549 1549
9924 1000 _ 550 714 12188
_3745 3745
4528 320 610 5458
2584 2584
4246 4246
170 170
2881 35 2916
8188 234 8422
15 15
15232 553 550 691 17026
681 35 716
53558 1873 1100 2504 59035

i AÏÏUEX3
Aidfinanced "bythe3rd.EDFand,fromtheEIB's
ovmresources:Situationat31December1974
OCTD
in*000u»a.
Contractsplaced Disbursements
-3rdEDF
¡Grants I
Investmentprojects•' J21969 10222
Investment-linked technicalassistance 1386 983
iTradepromotion
Exceptionalaid
Generaltechnicalcooperation 553 162
Administrative costs,delegatedand
technicalsupervisionI18571838
25765 13205
Interestratesubsidies
Totalgrants 25765 13205
Repayableaid
Specialloans 7146 1069
'
Riskcapital
TOTAL3rdEDP 32911 14274
EIB
Ordinaryloans
GRAKDTOTAL 32911 14274

ANNEX4
I
J
Breakdownfor1973/74"bycountryoforigin
andstudyofOCTDscholarship holders
i^Countrvofstudy
Countryoforigin^**' ,,,''«ii^Prance1–:
Netherlands
fTOTAL *
(origin)
iNetherlandsAntilles 58 58
INewCaldonia 1 1
Surinam 20 20
Total(countryofstudy) 1 78 79

AHNEX5
Xh-orMovmbyoourtryoforiginandtype;oftraining
ofOOTDscholarshipholdersfor1973/74
Countryoforigin l
i
!Ï
.1
I.Typeoftramin1
?I1
TOTAL
jiïconomics!Agriculture I
i iTechnical
,studios J"Medicalj* <
Other |
!
ÏÏetherlai'idfjAntilles |
I5 Iii
ïI25I12» h&
LewCaledonia
II
1 I«
!
!\ i
I11
Surinam iI3
l i9i
I Ii7!I I
i1!
! I
i •ι20
Total(typeof
trainiïif?)I
I
8
ii I
i
I
10 I33j
II !
i j
13i
__ il
15!
i|>y
i_
Percentage I10 !
LJ1
13 i42i 1
Ιό 19
~Ι|100.0
L–– '
Domeat:loscienceteachers ,