ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)111
Vol.1977/0046

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)111final.
Brussels-31March1977
COMMISSION REPORTTOTHEACP-EEC COUNCIL OFMINISTERS
ONTHEADMINISTRATION OFFINANCIAL ANDTECHNICAL
COOPERATION IN1976UNDERTHELOMECONVENTION
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LiaJG■-twl3/?n~ I
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\t«\,'VA.. <r^7Y'%;;W
C0MC77)111final.

I
C0MC77)111final.
COUTENT S
INTRODUCTION 1_p
CHAPTERI:Mainguidelines oftheLomeConvention 3
Thebroadergeographical scopeoftheConvention 3
Stabex 3and4
Participation bytheACPStatesinthedetermination
andadministration ofaid 4
The"leastdeveloped "ACPStates 4-5
Microprojects 5
Regional cooperation 5
Industrial cooperation 5-6
Extension anddiversification ofEIBoperations 6-7
CHAPTERII:Establishment ofthevarious cooperation
bodiesandprocedures 8
(a)Thepartners 8
(b)Programming 8-11
(c)Starting upappraisal 11
(d)Establishment oftheDelegations 11–12
(e)Establishment ofthebodiesresponsible forthe
commitment ofCommunity aid 12-14
(f)Finalizing procedures forimplementing projects
andprogrammes 14
(g)Coordination andharmonization withotheraid 15
(h)Preparation ofdocuments 15
CHAPTERIII:Generalguidelines offinancial andtechnical
cooperation 16–17
CHAPTER IV:Financing decisions takenin1976 18
A.Breakdown brymethodoffinancing :
*Aidadministered bytheCommission 18
•Aidadministered bytheEIB 19

races
B.Breakdown bysector:
Development ofproduction
1.Industrialization
2.Ruralproduction
Economic infrastructure
Socialdevelopment
Tradepromotion
Exceptional aid
Stabex
Other
CHAPTER V:Execution ofaidfromEDFresources
II
STATISTICAL AKNEXES ;
Table1:Breakdown ofCommunity aidcommitments in1976by
country andbysector
Table2:Financing situation at31December 1976:breakdown
try-methodoffinancing andbyadministrative body
Table3:Financing situation at31December 1976:breakdown
trymethodoffinancing andbysector
Table4sDisbursements fromthefourth EDF
Table5sFinancial transfers effectedin1976tinderStabex
Table6:Listofspecialloanscommitted asat31December 1976
Table7•Subsidized loansandriskcapitalcommitted bytheEIB.20
20
20to26
26to34
34to38
39to41
42
43
44
44to45
46

INTRODUCTION
Thisannualreporthasbeendrawnuppursuant toArticle 41oftheLome
Convention -ofwhich1976wasthefirstyearofimplementation starting
from1April-anddealswiththeadministration offinancial andtechnical
cooperation betweentheEuropean Economic Community andtheACPStates.
ThepartsofthereportwhichconcerntheEuropean Investment Bankhave
beendrawnupinconjunction withtheBank.
TheLomeConvention ,whichwassignedon28February ,enteredintoforce
on1April1976afterhavingbeenratified bytheforty-six African,
Caribbean andPacificStates,theCommunity andthenineMemberStates.
Thetimerequired tocomplete theratification procedures wasnot,however ,
aperiodofinactivity inrelations betweentheCommunity andtheACPStates,
fortheyear1976sawtheapplication oftheprovisions oftheConvention on
trade,sugarandfinancial transfers for1975undertheexportearnings
stabilization system.
Similarly ,duringtheperiodunderconsideration ,theinstruments ofcooperation
andprocedures fortherapidandeffective mobilization ofthefundsprovided
forbytheConvention undertheheadoffinancial andtechnical cooperation
wereactively established .Variousimplementing textswereadopted,
programming missions werecarriedoutasearlyasJuly1975enabling the
indicative programmes tobefinalized ,andtheCommission Delegations were
established .Theappraisal ofactualprojects wascarriedoutconcurrently
sothatbytheendofDecember 1976nearly450million EUAhadbeencommitted
outofthetotalof3390million EUAstatedinArticle 42oftheConvention .
Inordertoaccommodate thepointsofconcernexpressed atthemeetingof
theJointCommittee oftheConsultative Assembly ,morethanhalfthefunds
committed havebeenallocated totheproductive sector,particularly rural
.development .
Thepreliminary discussions ontheimplementation ofthefundsearmarked for
thefinancing ofregional programmes andprojects werelaunched andpursued
andatthesametimetheCommittee onIndustrial Cooperation wassetup,thus
pavingthewayfortheopeningoftheCentreforIndustrial Development .
Nowthatthisstarthasbeenmadetheimplementation offinancial and
technical cooperation seemslikelytogetfullyunderwayintheearly
monthsof1977»whenthenewACPStateswillreceivesubstantial financing

-2-
andtheprovisions oftheConvention relating toregional cooperation and
toindustrial cooperation a.sawholewilltakefulleffectatthesametime.
Therefore ,laygettingofftoarapidstart,theLomeConvention hasfulfilled
thehopesplacedinitbythe55originalsignatories ,whichhaverecently
increased to58.

CHAPTERI
I.MAINGUIDELINES OFTHELOMECONVENTION
Oneoftherecitals oftheLomeConvention statesthatthesignatories are
"resolved toestablish anewmodelforrelations "betweendeveloped and
developing States,compatible withtheaspirations oftheinternational
Community towardsamorejustandmorebalanced economic order".Onthe
basisofthisfundamental guideline anagreement wasdrawnupwhichcontains
significant innovations compared withtheYaoundeConventions .Apartfrom
theincrease inthevolumeofaidandinthenumberofparticipants embracing
afarwidergeographical area,themaininnovations arethestabilization of
exportearnings ,thefactthattheACPStatesareexclusively responsible for
determining theirobjectives andpriorities (onthebasisofwhichtheindi­
cativeprogrammes ofCommunity aidaredrawnupbymutualagreement),increased
participation bytheACPStatesintheadministration ofCommunity aid,the
granting ofspecialadvantages tothepoorest ACPStates,microproject
programmes ,regional cooperation ,industrial cooperation andnewandoriginal
formsoffinancial aid(riskcapital)entrusted totheBankspecifically for
thefinancing ofindustrialization projects .
Thebasicobjective ofthecooperation istheeconomic andsocialdevelopment
ofthebeneficiary States.However ,specialimportance isattachedtothe
needto"seek"viathiscooperation "thegreaterwell-being ofthepopulation ".
WhattheCommunity hasachievedindevelopment aidandtheexperience built
upovermorethanfifteenyears,particularly inthefieldoffinancial
andtechnical cooperation ,arenonetheless irreplaceable .
Therefore ,thevarioustypesofaidthatalreadyexistedhavebeenmaintained :
economic andsocialinvestment projects ,generalandinvestment-linked
technical cooperation ,exceptional aid,aidfortradepromotion ,etc.The
sameappliestotheaidsectors-namely,ruralandindustrial development
projects ,economic andsocialinfrastructure projects-andtotheformsof
financing ,thoughherecertainchangesandimprovements havebeenmade,viz.
grants,specialloansonverysoftterms,EIBloans(generally combinedwith
interestratesubsidies),riskcapitaloperations .
1.Thebroadergeographical scopeoftheConvention
Insteadofthenineteen AASMandsixMemberStatesthatsignedtheYaounde
Convention theLomeConvention involvesforty-nine ACPStatesandnine
MemberStates,inotherwordsanoverallpopulation of525millionpeople.
2.Stabex
AlthoughStabexisnotstrictlyspeakingpartoffinancial andtechnical
cooperation itshouldbepointedout,inviewofitsimportance asaprinciple
andinpractice ,thatitisasystemforguaranteeing thestabilization ofearnings
fromexportsbytheACPStatestotheCommunityofcertainproducts (twelveinall)

-4-
affected "byfluctuations inprice and/orquantity .TheaimofStabex istoremedy
theharmful effects oftheinstability ofthese earnings andthereby enable the
ACPStates toachieve thestability ,profitability andsustained growth oftheir
economies .
3.Participation bytheACP States inthedetermination andadministration ofaid
TheLom£ Convention gives theACPStates acrucial role indetermining theaidto
begranted andinvolves them very closely initsadministration ,more sothan under
theprevious Conventions .TheACPStates arenowactively participating inthe
various stages ofpreparation andexecution ofprogrammes andprojects :aid
programming (afield inwhich they play adecisive role ),preparation ofthedossiers ,
theinitiation ofstudies ,project appraisal andexecution .
Anindicative programme ofCommunity aidisdrawn upbymutual agreement between the
Commission andeach ACPState andsubmitted foropinion totheMember States .
TheACPStates areclosely involved intheappraisal ofEDFprojects .They draw
up,negotiate andconclude pre-investment technical cooperation contracts ,
collaborate indrawing upfinancing proposals ,which aresubmitted totheCommunity 's
decision-making bodies andthefinal version ofwhich istransmitted totheACP
States concerned .They mayalso becalled upon tostate their case atthefinancing
decision level ,andwhere aproject does notreceive afavourable opinion from
theEDFCommittee ,thecountry concerned maybegiven ahearing bytheMember
States ,within anadhocCommittee ,sothat itcanpresent theoperation itself .
TheACPStates areresponsible fortheexecution ofprojects andtherefore
particularly forthenegotiation andconclusion ofworks andsupply contracts .
Their powers asregards theimplementation ofaidhave been strengthened bythe
fact that certain administrative ,financial andtechnical duties previously
fulfilled bytheCommission Delegates have been transferred tothem (forexample ,
alarge number ofprior endorsements andauthorizations have been abolished )*
4.The "least developed "ACPStates
TheLome Convention introduced special measures forthe "least developed "countries .
Under Stabex these countries already receive non-repayable transfers oneasier
terms than theother ACPStates .Forcapital projects ,themethod offinancing
normally used isthe grant .
Theleast developed ACPStates will beable tobenefit from training schemes for
management andother staff inGovernment ,departments ,specific schemes designed

-5-
tohelp solve their particular problems ,andthetemporary financing ,ona
diminishing scale andoncertain terms ,oftherunning costs oformajor repairs
totiginvestment projects previously financed toytheCommunity .
Inthegeographical "breakdown ofEDFfunds theCommission hasendeavoured to
take account ofthe special situation ofthepoorest ACP States .
5.Hicropro jects
Community aidhasmade asignificant contribution inthepast torural
development andtoimproving theliving conditions ofpeasant farmers .However ,
inorder toreach therural population more directly provision hasbeen made in
thenewConvention foranewkind ofoperation ,which hasalready proved itsworth
incertain developing countries -namely ,micropro jects benefiting local communities .
These schemes arenormally carried outinrural areas andinclude small dams ,
wells andwater supply systems ,silos andwarehouses ,service tracks ,bridges ,
vaccination pens ,schools ,dispensaries ,social assistance centres ,premises for
commercial activities ,etc .
The sumof20million EUAhasbeen earmarked forthese schemes .After twoyears
theCouncil ofMinisters will decide onthefollow-up tothis experiment .
6.Regional cooperation
Theobjectives andscope ofregional cooperation ,forwhich provision was
already made intheYaounde Convention ,have been more clearly defined atthe
instigation oftheACPStates themselves ,particularly with aview toaccelerating
economic cooperation within andbetween theregions oftheACPStates ,stepping up
thediversification oftheir economies ,reducing their economic dependence onother
countries ,creating sufficiently wide markets andusing tothefull theresources
and services available toeach State .
Theareas covered byregional cooperation aremainly industry ,transport and
communications ,energy production ,theexploitation ofnatural resources ,research
andtechnology ,stockbreeding andagriculture ,education andtraining ,tourism
andtechnical assistance fortheestablishment ofregional bodies .
7«Industrial cooperation
TheLom£ Convention attaches special importance totheindustrial development of
theACPStates .Theobjectives ofindustrial cooperation have been carefully
defined .Theareas where there will becooperation areessential sectors :
infrastructure linked toindustrialization (transport andcommunications ,energy ),
industries processing rawmaterials andindustries manufacturing finished and

-6-
semi-finished products ,industrial training inEurope and intheACP
States ,andindustrial information ,research ,promotion andstudies .
Special structures have been setuptoactivate industrial cooperation .
These aretheCommittee onIndustrial Cooperation ,ajoint body
responsible for seeing tothe implementation ofthe industrial
cooperation provisions oftheConvention andtheCentre for Industrial
Development ,whose main role istoencourage European firms toparticipate
intheexecution ofspecific industrial projects byarranging allthenecessary
contacts atthe technical and financial levels .
Inorder toencourage thedevelopment ofsmall andmedium-sized firms ,
particularly from theindustrial angle ,theConvention provides for
thepossibility offinancing projects infavour ofsuch firms through the
national development banks .
Inthe same spirit thenewConvention hassignificantly improved the
practical steps already taken previously toencourage participation by
local firms intheexecution ofEDPprojects .
8.Extension anddiversification ofEIBoperations
Among the salient features oftheConvention mention should bemade ofthe
fact that EIB operations have been extended anddiversified both interms
oftheBank 'ssectoral responsibilities andasregards thefinancial
techniques which itmay use .
Itshould bestressed ,however ,that allspecial loans ,which generally
bear themost favourable terms (duration 40years ,grace period 10years ,
interest rate 1%),aregranted under thesole responsibility ofthe
Commission .
_Sect_or al_re S£ons ibil _itie_s
Thetexts oftheConvention stipulate that industrial ,mining and
tourism projects aretobegiven priority financing from theresources
administered bytheBank ,inother words mainly byloans from itsown
resources combined with interest rate subsidies ,andbyassistance
intheform ofrisk capital .Projects inthese sectors aretherefore
first submitted totheBank ,which appraises them inaccordance with
itsStatute andtheprovisions oftheConvention .
This guideline does notrule outthepossibility ofBank loans being
granted forprofitable infrastructure projects incountries where this
form offinancing would appear appropriate .Wordoes itexclude
covering thecost ,from thefunds administered bytheCommission ,of
various operations provided forinTitle IIIoftheConvention
(training ,information ,promotion ,industrial studies ,etc.)orof
infrastructure required forindustrial development and ,possibly ,
certain projects which areworthwhile inthemselves butunlikely
tobefinanced byoneoftheforms ofaidadministered bytheEIB .

-7-
.Interest_rate^ubs.idiejs
Inaccordance withtheprovisions oftheConvention andwithaccount
"beingtakenoftheexceptions stipulated inArticle 5ofProtocol
No2,loansmadebytheEIBfromitsownresources aregenerally
combined withaninterestratesubsidyof3theamountofwhich
ischargedagainst EDFresources .
Risk_capital
Withinthecontextofindustrial cooperation ,theConvention gavethe
Bankresponsibility forimplementing thistypeoffinancial aid,which
maytakehighlyflexible formsthatareespecially adaptedtothe
financing ofindustrial projects .
Thepurposeofriskcapitalis:
(i)tostepuptheownresources offirmseitherthroughthedirect
acquisition bytheBankonbehalfoftheCommunity ofaminority
holdingintheauthorized capitaloffirmsorbygrantingquasi-capital
assistance totheACPStateortoanational institution inorderto
enablethelattertoacquireaholdinginthecapitalofindustrial
firmswherethisoperation issupplemented byanotherfinancial
intervention bytheCommunity infavourofthatfirm.Inappropriate
casesotherformsofaidforstepping uptheownresources offirms
arealsopossible (e.g.shareholder advancesorbondsubscription );
(ii)thedirectfinancing ofinvestments bymeansofquasi-capital
assistance intheformofsubordinated orconditional loansas
definedinArticle4(3)ofProtocol No2;
(iii)thefinancing ofspecificstudiesandoftechnical assistance
tohelpfirmsgetofftheground.Thisaidmaybeusedforthe
preparation ofprojects whicharealreadyatanadvanced stageand
whichcouldqualifyforBankassistance .

-8-
CHAPTER II
ESTABLISHMENT OPTHE VARIOUS COOPERATION BODIES AND PROCEDURES
(a)Thepartners
After theCommunity ,alltheMember States andalltheACPcountries haddepo­
sited their instruments forratification oftheLome Convention ,theConvention
entered into force foralltheparties concerned on1April 1976 .Thepolitical
will marked "bythesignatures appended tothetext oftheLome Convention was
therefore fully confirmed .
The interest which theLome Convention continues toarouse among the
developing countries isillustrated bythedesire expressed byanumber
ofStates notincluded initially among the46toaccede totheConvention also .
Three former overseas countries andterritories (OCT)which have since
become independent (theRepublic ofSurinam ,theRepublic ofthe
Seychelles andtheComoros )acceded totheConvention under Article 89
thereof ,on16July ,27August and 13September 1976 respectively ,thus
raising thenumber ofACPStates to49*
Three other countries (SaoTom€ andPrfncipe ,Cape Verde andPapua New
Guinea )submitted aformal request foraccession under Article $0ofthe
Convention .Theprocedures fortheconclusion oftheaccession agreements
areunder wayandthese countries will therefore soon become
full members ofthe Convention .
(b)Programming
I.Financial andtechnical cooperation ,which constitutes oneofthe
cornerstones oftheLome Convention ,provides forthefinancing ,from
thesumof3390million EUA (3000million from theEuropean Development
Fund and390million from theEuropean Investment Bank 'sownresources ),
ofprojects andprogrammes which contribute towards theeconomic and
social development oftheACP States .
Article 51oftheLome Convention stipulates that this aidmust be
programmed .Thevery principle ofaidprogramming isone oftheinnovations
ofLome asitwas institutionalized for the first time inthe Convention .
Thesame Article lays down thegeneral objectives ofprogramming andalso
provides guidelines forthepractical execution ofthis work .Theaimof
programming istwofold :

-9-
(i)toensurethattheprojects andotherdevelopment schemesundertaken
withCommunity aiddovetail withtheobjectives andpriorities set
bytherecipient Stateunderitsdevelopment programme ;
(ii)tofacilitate implementation ofthedevelopment planoftherecipient
Statebyenabling thelattertoobtainasclearanideaaspossible
asregardsobjectives pursued,termsandoverall amountoftheaid
itcanexpectduringtheperiodcoveredbytheConvention .
Italsofacilitates coordination between Community aidandothersources
ofcapital(e.g.MemberStates,multilateral organizations ,etc.).
Inordertoattaintheobjectives laiddownwithinashorttime,the
MemberStates,theACPStates,theCommission andtheEIBhavediligently
completed ,inacoordinated manner,aconsiderable task.
2.Itwasfirstofallnecessary tohave,foreachACPState,athorough
knowledge oftheeconomic andsociopolitical realities ofthecountryand
ofitsdevelopment policy,itspotential anditsconstraints .
Thisproblem wasmoreacuteforthenewACPStateswhilefortheformer
AASMStatesallthatneededtobedonewastoupdatetheinformation
alreadyavailable .
3.Oncompletion ofthiswork,anexchange ofviewswasheld,foreach
ACPState,betweenrepresentatives oftheMemberStates,theCommission
andtheEIBata"pre-programming committee "meetingtodetermine the
"generalframework "oftheprogramming missionsinaccordance with
Article17(2)oftheInternalAgreement.
Thediscussions ofthiscommittee werecentredmainlyonthenational
objectives andpriorities whichseemedbest-suited toCommunity aid
operations .Thispre-programming enabledtheCommunity'saimstobe
morecloselycoordinated withthebilateral programmes oftheNine.
4.Theprogramming missions beganinJuly1975and.werevirtually
completed byJune197^(except,ofcourse,forthethreenewACPStates
whichwereformerly OCT).
Asageneralrule,themissions comprised threephases:
anoutline,bytheauthorities oftheACPStateinquestion ,ofthe
development policypursuedintermsofgeneralobjectives andpriorities ;
determination insuccessive concretestagesofthevariousintermediate
objectives ,andfinally,stepbystep,ofthemostsuitable Community
actionforattaining thoseobjectives ;
drafting andsigningofanindicative Community aidprogramme forthe
duration oftheLom£Convention .

-10-
Theoutlineisofcourseageneralflexible oneinviewof"theobjective
realities ,whichquitenaturally differfromonecountrytoanother.
Theindicative programmes allhaveonepointincommon,however :each
ofthemistheresultofjointworkandadialogue betweentheACP
countryconcerned andtheCommunity ,
Altogether theindicative programmes involveanoverall amountofalmost
2000million EUA(ofwhich5'].6%isfortheformerAASMand48*4$for
thenewACP).Thisistheaidwhichis"programmable "bycountry,andit
doesnotincludeStabex,exceptional aid,regionalprojects ,andgenerally
speaking ,aidadministered bytheEIB.
5*TheBankhastakenpartinallphasesofprogramming and
hasbeenrepresented inalmostallthemissions sentouttotheplaces
concerned .Nevertheless ,inthecaseofthesectorsforwhichtheBank
isresponsible ,theprojects referred toinmostoftheindicative
programmes havebeenmentioned onlyingeneraltermssinceitis
impossible fortheBanktoquoteexactfiguresforaidbeforetheprojects
havebeenappraised andsinceparticular flexibility mustbemaintained
inthissector.
6.Theestimated breakdown bysectorofalltheindicative programmes -
although subjecttoadjustments andamendments inthefuture-nevertheless
reflects thenationalpriorities oftherecipient States.
Thusthemajorpartoftheprogrammed aid-almost5&/o-goestothe
productive sector,theaccentbeingonruralproduction ,whichaccounts
formorethanathird;theabovementioned percentage shouldincrease
overtheyearsasnumerousindustrial ,miningortourismprojectsare
financed .
Economic andsocialinfrastructure takesecondandthirdplace
respectively ,witharound28%and15ofthetotal.
7.Eachindicative programme hasbeenthesubject,inaccordance with
Article17(3)oftheInternalAgreement ,ofanexchangeofviewsbetween
therepresentatives oftheMemberStates,theCommission andtheEIBat
the"post-programming "meetings .
8.Soitcannowbesaidthatthefirst-essential-phaseofthe
programming ,culminating intheapproval ofalltheindicative programmes ,
hasbeencompleted ;withinveryreasonable periodsoftime,ithasbeen
possibletoprogresstothestageofappraisal andfinancing ofprogrammes
andprojects.
Theprogramming isnotcompletelyfinished,however.AccordingtoArticle51(4)
oftheLom€Convention ,theindicative programmes mustbesufficiently
flexibletoenableaccounttobetakenofchangesoccurring intheeconomic
situation oftherecipient countries andanymodifications oftheir
initialpriorities .Consequently ,itmustbepossibletorevieweach
programme duringtheperiodcoveredbytheConvention .

-11-
Majorchangesofprogramme arediscussed withtheCommunity "bythe
ACPStateconcerned .Anewindicative programme isthenprepared and
isthesubjectofafurtherexchange ofviewswiththeMemberStates
(Article17(5)oftheInternalAgreement )onthevery "basisofthe
criteriaofcoherence appliedduringthefirstexchanges ofviews;
someACPStatesarealreadymakinguseoftheopportunities provided
byArticle51(4)oftheConvention .
Theprinciple ofprogramming willalsoapplytothoseStateswhichwere
notinitially included amongthe46ACPStatesbuthavealreadydecided
orwilldecideinthefuturetoaccedetotheConvention .Forthese
countries ,Community aidwillbeprogrammed inaccordance withthe
sameprinciples andmethodsalreadyappliedforthe46ACPStates.
Inaddition toprogramming thefinancial andtechnical aidallocated
directly toeachACPStateandreplying tothecommunication presented
inJuly1976byalloftheseStates,theCommunity ,afterdefiningthe
criteria ,prepared aprogramming projectofafirstinstalment ofthe
resources earmarked forregional cooperation -underArticle 47ofthe
LomeConvention .Thisprogramming ,basedontheproposals officially
presented bytheACPStates,isforfinancing projects andprogrammes
whichcanbeexpected tobeimplemented withinarelatively shorttime.
AssoonaspossibletheCommunity willalsodrawup,
proposals forthecontentofthesecondinstalment of
theregional fund,whichwillinvolveprojects andprogrammes which
cannotbeexpected tobeimplemented assoonasforthefirstinstalment .
Itshouldbepointedoutthatanumberofnationalprojects financed
in1976intheroad,railwayandportsectors-inTogo,Cameroonand
Congo-areofdefinite regionalinterestforanumberoftheneighbouring
countries oftherecipient States.
(c)Startingupappraisal
Onceanindicative programme hadbeendrawnup,thestaffofthe
Commission andtheBankbegan–orincertaincasescontinued-to
appraisetheprojects orprogrammes inaccordance withthepriorities
laiddowninagreement withtheACPStates.
Financing decisions hadbeentakenon81projects bytheendof1976and
almost200dossiersareatafairlyadvanced stageofappraisal which
willenablethemtobedealtwithsometimein1977»whilealargenumber
ofstudiesbegunin1976ortobestartedveryshortlyareonprojects
whichwillbeundertaken inthenexttwoyears.
(d)Establishment oftheCommission Delegations
Article 31ofProtocol No2totheLomSConvention laiddownthatthe
Commission wastoestablish delegates intheACPStates,withtheapproval
oftheauthorities ofthoseStates.TheCommission delegates maybeconsidered
asanessential linkintheimplementation oftheConvention withrespect
totheresources administered bytheCommission .

-12-
Asthey areinconstant contact with theministries andadministration of
theACPStates they are inaposition tospeed upimplementation ofthe
Convention considerably and tomake theCommission more aware ofthe
needs andproblems oftheStates inwhich they areestablished .
Forthis reason ,attheendof1975 »"theCommission gave high priority
tothis operation ofinstalling delegates byselecting ,recruiting ,
training andestablishing them astheapproval procedures initiated with
theauthorities oftheACP States were completed .
Since itwaspossible togroup together certain neighbouring States with
theagreement oftheStates concerned ,asprovided forinArticle 31,
theCommission hasinstalled atotal offorty delegations intheACP States .
Atpresent ,this operation isvirtually completed :theforty delegates
have taken uptheir posts while atthesame time theteams foreach
delegation have been formed .
TheCommission hassent outstaff tocollaborate with these delegates ,to
form multi –disciplinary teams (economic advisers ,agricultural experts ,
engineers ,architects ,administrative andfinancial staff )which will
enable themultiple forces ofcooperation tobeactiviated .Avast
operation involving thetransfer ofstaff already established and the
recruitment ofnew staff hasmade itpossible toplace experienced staff
alongside newrecruits inorder toprovide theACPStates with maximum
assistance inspeeding upimplementation oftheLome Convention .
(e)Establishment ofthebodies responsible forthecommitment of
Community aid
1-EDF Committee
Inaccordance with Articles 18and19oftheInternal Agreement ,the
EDFCommittee ,chaired byaCommission representative andconsisting of
representatives oftheMember States ,gives itopinion onproposals
forthefinancing -bygrant and/orspecial loan-ofprojects or
programmes submitted toit.TheEIB takes part inthework ofthe
Committee andtheCouncil Secretariat delegates anobserver toit.
TheEDFCommittee ,which hasexisted since 1964 ths-sacquired considerable
experience with the implementation ofthe twoYaounde Conventions .
Itsnewrules ofprocedure were adopted bytheCouncil oftheEuropean
Communities on4May1975 *This text ,which isfairly close tothe
previous ones ,enables thevarious procedural obligations imposed upon
theCommission bytheLome Convention andtheInternal Agreement tobe
metwith therequired flexibility anddiligence .

-13-
SincetheConvention cameintoeffecttheCommittee hasheldeightmeetings ,
atwhichafavourable opinionwasdelivered on66projectsinvolving a
totalof305.5million EUA(notincluding Stabex,interest-rate subsidies
andriskcapital),thatisanaverageofnearly40million EUAper
Committee meeting.
Thefirstprogrammes alreadypreparedfor1977suggestthatamonthly
commitment rateof50to70millionu.a.willbereached,whichaugurs
wellfortheuse,withinthetimelaiddown,ofallappropriations
enteredunderfinancial andtechnical cooperation .
2»Article 22Committee
Inthecontextofthedutiesassigned totheBankforadministering certain
formsofaidfromEDFresources ,theInternal Financial Agreement ofthe
Convention established undertheauspices oftheEIBacommittee calledthe
"Article 22Committee "aftertheArticleofthisAgreement underwhichitwas
setup.ThisCommittee comprises ninedelegations representing theMemberStar-
tes,andtheBank.TheCommission takespartinitsworkandtheCouncilSecre­
tariatsendsanobserver toitsmeetings .TheCommittee ischairedbythere­
presentative oftheMemberStatecurrently assuming thePresidency oftheBoard
ofGovernors oftheBankandtheCommittee'ssecretariat isprovided bythe
Bank.
TheArticle 22Committee delivers anopinionwhichiscommunicated tothe
decision-making bodiesoftheBank;thelatteractinaccordance withtheir
statutory rulesandpractices .
In1976,theArticle 22Committee metthreetimesanddelivered afavourable
opiniononfifteenoperations including eightrequestsforloanswith
interest-rate subsidies amounting to58million EUAandsevenproposals for
financing byriskcapitaltotalling 24.3million EUA.
3.Committee onIndustrial Cooperation
On14July1976,pursuanttoArticle35of"theLomeConvention ,theACP-EEC
CouncilofMinisters laiddownthecomposition andrulesofoperation ofthe
Committee onIndustrial Cooperation (CouncilDecision 1/76).
TheCommittee ,anintergovernmental body,ismadeupontheonehandof
representatives ofthenineMemberStatesoftheEEC,aCommission representativ
andarepresentative oftheEIB,and,ontheother,offifteenrepresentatives
oftheACPStates.
TheCommitteehelditsfirstmeetingon20December 1976.Atthismeetingit
appointed theDirectoroftheCentreforIndustrial Development (CID)andhis
deputy.

-14-
TheCommission also prepared theCommittee 'ssubsequent discussions on
making theCentre operation (seebelow )andonconsultation of
economic andsocial circles bytheCommittee (asprovided forinArticle 10
ofDecision 1/76oftheACP/EECCouncil ).
4,Centre forIndustrial Development
TheCID'sStatutes andrules ofoperation were thesubject ofDecision 2/76
ofthesame Council ,taken onthesame date ,pursuant toArticle 36of
the Lome Convention .
Sothat theCID ,which will besituated inBrussels ,cangetstarted on
itswork theCommission staff hasdrafted afinancial regulation andstaff
regulations .Both these texts will beputbefore theCommittee on
Industrial Cooperation sothat theCIDcanactually become operative in
theearly months of1977 •
(f)Finalizing procedures forimplementing projects andprogrammes
Inorder tofacilitate implementation oftheLome Convention and in
particular of the resources managed byit,theCommission hasundertaken
aseries ofmissions tothe new ACP States inorder tofinalize the
implementing procedures with thenational authorities ofeach ofthese
States .
The aim ofthese missions was threefold :
(i)Tonegotiate with thenational financial institution designated by
bytheauthorities ofeach State theagreement laying down therules
forexercising thefunctions ofEDF Paying Agent forpayments inthe
national currency ofthat State .These rules were negotiated onthe
basis ofArticle 32ofProtocol No2tothe Lome Convention .
(ii)Tomeet theNational Authorizing Officer who ,inaccordance with
Article 30ofProtocol No2,represents hiscountry 'sauthorities
inoperations relating toprojects financed from theFund 's
resources .Onthis occasion the financial procedures asdefined in
theLome Convention and subsequent texts were explained indetail to
theNational Authorizing Officer 'sstaff andtotherepresentatives of
thevarious Ministries required toplay apart inimplementing theprojects .
(iii)Toexamine with theauthorities which will bepreparing andconcluding
works ,supply andtechnical assistance contracts therules and
requirements oftheinvitation totender procedures .
These negotiations andthediscussions relating totheadministrative and
financial procedures oftheEDFwere conducted ineach case inthespirit of
cooperation which characterizes relations between theCommunity andthe
ACPStates .They have made asignificant contribution towards speeding up
implementation oftheLome Convention .

(g)Coordination andharmonization withotheraid
Foroptimumeffectiveness itisadvisable toharmonize the
variousformsofexternalaidwhich,together withtheeffortsmadeby
thecountries concerned themselves ,contribute towardstheimplementation
oftheACPStates'development plans.Suchhasalwaysbeenthepreoccupati
ofCommunity aid.
Thishasbeenthecaseduringthevariousphasesofprogramming when,
thankstoincreased exchanges ofinformation ,theMemberStatesofthe
EEC,withtheACPSta/tes,theCommission andtheBank,haveworkedtowards
thisgoal.
Theanalysis anddissemination ofthisinformation willmeetatwofold
aim:toprovidebetterguidanceforCommunity measures andtoinformthe
publicofthesemeasures intheMemberStatesandintheACPStates.
Thecoordination ofdevelopment policies hastakenpractical shapeinthe
caseofthefinancing oflarge-scale projects ,whichcanbeexecuted
onlyifthecontributions ofthevariousfinancing institutions are
broughttogether andharmonized .HeretheACPStatesandtheCommission
haveactivelycollaborated withthecommonobjective ofbringing together
thenecessary financing resources andofadopting theimplementing
procedures .
In1976,therewasverymarkedconfirmation oftheinterest ofArab
Governments andinstitutions incoordinating theiraidoperations with
Community measures .TheACPStatesencouraged thiscoordination ,to
whichtheCommunity foritspartmadeaconsiderable contribution .The
jointevaluation ofthefollowing projects ,whichinthecourseofthe
yearwerethesubjectoffinancing decisions andinitialimplementing
measures ,wascompleted :theCongo-Ocean railwayintheCongo,the
portofDoualaandtheSongLoulouDaminCameroon ,theSelingue Damin
Mali,theMukungwa powerstationinRwanda.,theGolwen–Gelibroadin
Somalia.TheBankandotheraidsourcestookfinancing decisions for
theregional CIMAOcementfactoryproject-whichinvolvestheIvory
Coast,GhanaandTogo–andtheKpongdamprojectinGhana.The
Commission intendstocontribute tothefinancing oftheseoperations
atthebeginning of1977.
(h)Preparation ofdocuments
In1976,theCommission staffprepared 3.numberofdocuments forthe
detailedorganization offinancial andtechnical cooperation .
Amanualofinstructions fortheuseoftheCommission Delegates will
shortlybeforwarded totheACPStatesandvariousCommission documents
couldalsobesenttothem,including outlinesforthepresentation of
projectdossiers,outlinesforfinancing proposals andvariousinformation
onthemethodsofappraising andassessing projects .
TheEIBhasdistributed abrochure ontheprocedures governing its
operations undertheConvention .

CHAPTER III
GENERAL GUIDELINES OFFINANCIAL AM )TECHNICAL COOPERATION
Thedescriptions oftheprojects given inChapter IVofthis Report provide
afairly detailed picture ofthenature oftheoperations financed todate
under financial andtechnical cooperation .
At31December 1976 ,anoverall amount of445*8 million EUAh=dbeen
committed out ofatotal of3390million EUA ofCommunity aidprovided
for under Article 42ofthe Convention .
Certain points ofamore general nature should nevertheless bemade atthis
stage .
Exceptional aid (Art .59oftheConvention )
Nearly alltheappropriations available forthefirst year ofapplication of
this form ofaidwere used in1976 (47.7 million EUAoutof50million EUA).
Circumstances were such that owing tonatural disasters andother similar situations
tencountries were indifficult situations which justified recourse to
emergency aid ,this being inaccordance with thewishes expressed bythe
Joint Committee ofthe Consultative Assembly which met inLome in
December 1976 .
Stabex
Although Stabexdoes notdirectly involve funds used under financial and
technical cooperation ,itshould benoted that in1976 thefinancial
transfers made for 1975 under the system for stabilizing export earnings
amounted tonearly afifth ofthe Stabexappropriation .
Micropro iect s
Itmaybenoted ,however ,that thefunds earmarked formicroprojects were
used less quickly since itwasnecessary tofinalize the special procedures
forappraising this type ofoperation .Proposals onthis subject were
formulated bytheCommission andputbefore theACP States on 10November 1976 .
Regional cooperation
Inview ofthetime required toestablish criteria fordetermining the
regional nature ofprojects andprogramme aninitial instalment ofregional
appropriations -work which wasenergetically carried outin1976 -it
was not infact possible tofinance anyregional operations before the end
of1976 ,apart from EIBaidfortheCIMAO project .
There isnodoubt that in1977 substantial Community aid will beearmarked
forprogrammes andprojects ofthis kind .
Breakdown offinancing
Bysector (seeTables 1and 3)
With theexception ofthecommitments under exceptional aidandStabex ,which
areofafortuitous orrelatively automatic nature ,thebreakdown ofthe
financing among thevarious sectors -insofarasitmaybeconsidered
significant after only nine months ofimplementation oftheConvention -
shows that thedevelopment ofproduction occupies first place with 64%of
thetotal (ofwhich 37%forindustrialization and2J%forrural production )
andthat economic infrastructure ,mainly involving road projects ,comes
second with 28%.Thesocial sector ,with 5$»hasgotofftoafairly
slow start .

-17-
With regard tothebreakdown ofproject aidtrycountry ,itisobvious
that theACPStates previously associated with theCommunity under
theYaounde Convention areinamore favourable position atpresent
than thenewACPStates which have signed theLome Convention (about
70$and30%respectively ).Alarge number ofproject dossiers relating
totheformer States were already available atthe endoftheperiod of
implementation ofthesecond Yaounde Convention ,orwere atasufficiently
advanced stage ofappraisal forthecorresponding financing decisions
tobetaken atanearly date .
Forthenewassociates ,contacts first ofallhadtobemade inorder
toenable each side tofamiliarize itself with theprocedures used ,
launch thenecessary studies andcomplete theproject dossiers sothat
financing decisions could betaken under theoptimum conditions .
TheCommunity authorities will ,inconjunction with theauthorities of
theACPcountries ,endeavour inthecourse ofnext year toreach a
commitment level for thenewACP States comparable with that ofthe
former AASM .
Byadministrative institution (seeTable 2)
Intheperiod under consideration theCommission committed 377-6 million EUA
(including Stabex andexceptional aid).This amount would have been
considerably higher ifthecomplex discussions relating totheuseofthe
appropriations earmarked forfinancing regional programmes andprojects had
been completed in1976 ;itistobehoped that major projects inthis
sphere will befinanced in1977 •
TheEIB ,working onaparallel basis andoften jointly with the
Commission ,committed more than 68million EUA (including 41.5million Viy
wayofloans from itsownresources ,plus 5*5million EUA ofinterest-rate
subsidies and21.2 million EUAofrisk capital ,charged against EDF
resources )foranumber ofprojects relating mainly totheindustrial
sector .
*
* *
The various commitments referred toabove were made inaccordance with
theindicative programmes prepared tjytheACPStates andtheCommunity .
1Theinterest-rate subsidies (5*5million EUA)andrisk capital
(21.2million EUA),which will bediscussed below ,mobilized atthe
EIB'sinitiative ,must beadded tothis amount foraccounting purposes .

-18-
CHAPTER IV
FINANCING DECISIONS TAKEN IN1976
A. BREAKDOWN BYMETHOD OFFINANCING
(seeTable 2)
Inall ,at31December 1976 ,445*8 million EUAhadbeen committed out
ofatotal of3390million EUA ofCommunity aidprovided for in
Article 42oftheConvention .This result may seem modest since it
represents only 13$ofthetotal appropriation ,thebulk ofwhich must
beallocated before 1March I98O .However ,itshould beremembered that
theperiod under consideration lasted only nine months andthat ,
particularly forthenewACPStates ,itmust beconsidered asastarting-up
andeven running-in phase fortheappraisal andimplementation ofprogrammes
andprojects ,andalso asarunning-in period fortheapplication ofthe
procedures ,some ofwhich arecompletely new .
Inorder toanalyse these results ,itseemed wise todraw adistinction
between aidadministered bytheCommission andaidwhich istheEIB's
responsibility .
1.Aid administered bythe Commission
This aidtotalled 377*6 million EUA ,ofwhich :
119-8 million EUAwasnon-programmable aid (72.1 million EUAofStabex
and47»7million EUAofexceptional aid);
257-8 million EUAmaybeconsidered asprogrammable aidinthesense
ofconsisting ofamounts used fortheindicative programmes .
Non-repayable aid (non-Stabex )
Thesumof286.9 million EUAwascommitted intheform ofnon-repayable
aid ;asprovided forinArticle 10ofProtocol No2totheConvention ,
this aidwas granted onapriority basis totheleast developed countries
listed inArticle 48oftheConvention .
Theaidwasmainly forprojects concerning rural production and economic
andsocial infrastructure .However ,certain directly productive projects
intheindustrial sector ,relating inparticular toenergy ,were financed
inthis form inthepoorest countries (Selingue daminMali andthe
Mukungwa hydroelectric plant inRwanda ).
Repayable aid (non-Stabex )
Thesumof18.6 million EUAwascomitted inthis form ,arelatively lowfigure
compared with thetotal appropriation forspecial loans ;itwill therefore be
important infuture toincrease theusemade ofthis method offinancing ,
amatter towhich theCommission andtheACPStates arealready giving theirattention with regard totheprojects atpresent under appraisal .

-19-
Theloans inquestion were made foragro-industrial projects inCameroon
andChad andfortwotransport infrastructure projects inCongo and
Cameroon .
Itshould "benoted that thelatter operations were financed byacombined
grant/special loan inview oftheimportance ofthese projects toless
developed neighbouring countries .
2.Aid administered bythe European Investment Bank
Since theentry into force oftheConvention theamount made available
bytheBank forfinancing totals 61.7 million EUA ,ofwhich :
41.5 million EUAwas forloans with interest-rate subsidies ;
21.2 million EUA was forrisk capital operations .
Subsidized loans
TheBank granted five loans totalling 41*5 million EUA outofitsown
resources tofour ACPStates (Cameroon ,Ghana ,Kenya andMauritius )and
foraregional project involving Togo ,Ivory Coast andGhana .
Thefinancial terms ofthese loans arefairly similar :duration ofbetween
eleven andfifteen years with interest rates ofbetween 6$and6j$ taccount
being taken oftheinterest-rate subsidies .
Three loans arefortheenergy sector ,oneloan linked with three risk
capital operations relates totheregional CIMAO cement works project and
anoverall loan will enable small andmedium-sized industrial projects
tobeundertaken through adevelopment bank .
Risk capital
Seven risk capital operations involving atotal of21.2 million EUAwere
signed on31December 1976 ,three ofthem being combined with asubsidized
loan .
They relate tosixACPcountries ,namely Cameroon ,Ivory Coast ,Ghana .
Upper Volta ,Togo andChad .Three States (Upper Volta ,Chad andTogo )
listed asleast developed countries inArticle 48oftheConvention received
almost 70$ofthis finance .
Thebreakdown ofthese first risk capital operations bysector andaccording
tothe various methods ofuse isasfollows :
(i)sole financing ofindustrial projects (SOCAPALM ,SOSUHV ,BANDA ,CIMAO ),
including oneregional project .

-20-
(ii)very substantial useisbeing made ofthevarious possible ways of
utilizing risk capital :conditional orsubordinated loans tostep up ,
ownresources viashare-holding States (SOSUHV ,BANDA ,CIMAO ),direct
conditional orsubordinated loans tofirms (SOCAPALM ,SOSUHV ).
B.BREAKDOWN BYSECTOR (seeTables 1and3)
DEVELOPMENT OFPRODUCTION
Ashasjust been stated (see"Breakdown offinancing "above ),theproductive
sector (excluding Stabex andexceptional aid),with 64%ofthefunds
committed in1976 ,hasbeen allocated thehighest proportion ofaid ,
which isinline with thetrend emerging from theexamination ofthe
indicative programmes asawhole .
1.INDUSTRIALIZATION
TheLome Convention placed very special emphasis onindustrialization ,the
aimbeing toenable theACP States todevelop aparticularly dynamic
sector oftheir economies andachieve large increases innet output aswell
ascreating alarge number ofjobs .Anumber ofnewinstruments have
been created tofacilitate theimplementation ofCommunity aidinthis
field and tocomplement through training ,information andpromotion
activities theoperations financed inthearea ofindustrial production
proper -which isessentially theEIB*s field ofactivity -andalso
those financed inthearea ofinfrastructure ,particularly energy
infrastructure ,upon which thedevelopment ofindustry depends .
In1976 Community commitments were already made foranumber ofvery big
projects inthesectors ofenergy ,manufacturing industry andagro-industrial
complexes#
Inorder tofacilitate thepreparation ofprojects andtheprovision of
assistance tofirms during thestarting-up period ,theBank 'sBoard of
Directors ,following thefavourable opinion oftheArticle 22Committee ,
approved anoverall authorization of 1million EUA intheform ofrisk
capital .This authorization ,which isprovided forinArticle 51ofthe
Financial Regulation oftheEDF ,will enable theBank tocarry outthestudies
andprovide thetechnical assistance that arerequired fortheimplementation
ofprojects inthesectors forwhich itisresponsible with speed and
flexibility .
(a)Loans todevelopment banks
Article 49oftheConvention states that development banks areamong the
bodies eligible forfinancial andtechnical cooperation .Accordingly ,
theBank granted aglobal loan of2million EUAtotheDevelopment Finance
Company ofKenya Limited (DFCK ). This isthefirst time theBank hasused
theglobal loan technique inAfrica ;itisafinancing method that enables
resources tobetransferred viaexperienced local financing institutions tohelp
develop various industrial schemes .Theglobal loan wasgranted foreleven
years ,withafour-year grace period ,atasubsidized interest rateof6%.

-21-
Severaloperations ofthesametypearecurrentlyundergoing appraisal bytheCommission andtheEIBandwillbeimplemented soon.
(b)Projectswithanenergybias
Fivemajorprojects werefinanced inthisfield:
(i)InCameroonasubsidized EIBloanof13500000EUAwasgrantedtothe
SocieteRationaled'Electricite duCameroun (SOEEL)tohelpfinancearigm
andhydroelectric powerstationatSong-Loulou ontheRiverSanaga,together
withtransmission linesandinterconnection stations.Theprojectwill
enableSOUELtocopewiththerapidincrease indemandfromthesouthern and
westernregionsofCameroon.
Thecostoftheprojecthasbeenputat174million EUA.BesidestheEIB
andtheC.C.C.E. (France),Arab sourcesoffinancial aidsuchastheSaudi
Development Fund,theKuwaitiDevelopment FundandtheIslamicDevelopment
Bankareinvolved infinancing theoperation .
Theduration oftheEIBloanisfifteenyearsandthesubsidized interest
rateis61/8%perannum.
(ii)InGhana,theCommunityisparticipating inconjunction withotheraid
bodiesinthefinancing ofahydroelectric projectlaunched bytheVolta
RiverAuthority (VRA),apublicbodyresponsible forthedevelopment ofthe
VoltavalleyandLakeVolta,particularly fortheproduction ofelectricity .
Thepurposeofthefinancing istoconstruct adamandahydroelectric power
stationwhichwillincreasetheVRA'sinstalled capacity by160MW.This
increased capacity shouldenabletheVRA.tomeetGhana'sneedsupto1985
whilecontinuing toexportelectricity toTogoandBenin.
TheEIBhasgrantedaloanof10.0million EUA.Foritspart,theCommission
isactivelypursuingtheappraisal ofaloanonspecialtermsof8980000EUA
forthisproject,inrespectofwhichafinancing decisioncouldbetakenvery
soon.
Thetotalcostoftheproposedstructures is243million EUA.TheIBRDand
numerousotheraidbodies(suchastheArabBankforEconomic Development in
Africa,theSaudiArabianFund,theKuwaitiFundandtheCanadianInternational
Development Agency)intendtohelpfinancetheproject.
(iii)InMauritius ,asubsidized EIBloanof2millionEUAhasbeengranted
totheCentralElectricity Board(CEB)toboosttheisland'selectricity
production capacity.
Thisfinancingwillenableanewextension tobebuilttothelargestthermal
powerstationontheisland,locatedatFortVictoria.Theextensionwill
increasethestation'scapacityto62.4MWandwillenableittocopewith
expectedincreaseindemandforelectricity fromtherapidlydeveloping
industrial andhotelandcateringsectors.Theloanhasbeengrantedfor
13l/2yearsatasubsidized interestrateof6/&.

-22-
ThisisthesecondloantheEIBhasgrantedtheGEB.InJuly1975theBank
grantedaloanof1750000EUAunderthesecondYaoundeConvention tohelp
financeanearlierstageinthedevelopment ofthepowerstation.
(iv)InMali,anEDFgrantof19157000EUAwillgotowardsbuildingthe
Selingue dam,theMaliGovernment 'sbiggestprojecttodate.
Thisvastoperation wasinitially conceived andstudiedasfarbackasthe
sixties.TheGovernment financed thepreliminary studyofthedamfromits
ownresources .Subsequently theCommunity ,theUNDP,France,Italyand
theFRGfinanced thevariousfeasibility studies,thosefortheexecution of
theproject,amasterplanforthedevelopment oftheNigervalleyandthe
feasibility studyforthedevelopment ofanirrigated agricultural area
situated downstream fromthedam.
Thepriority statuswhichtheMaliGovernment hasgiventhisproject-it
occupies achoicepositioninthe1974-78Five–yearDevelopment Plan–can
beexplained bytheimportance attached totheaimsbeingpursued :
(a)tocoverMali'selectricity requirements uptoabout1990;
(b)todevelopprogressively thecultivation ofirrigated crops(using
gravity-feed orpumpedirrigation techniques )soastolimitthecountry's
dependence oncerealimports.
Theconstruction ofthedamwillresultinimproved navigation conditions on
theRiverNiger,particularly thestretchbetweenKoulikoro andMarkala,
inthemonthsoflowwater,duringwhichtheriverisnotnavigable at
present.Lastly,thelakethatwillformbehindthedamwillmakea
considerable contribution tofisheryproduction .
Thetotalcostoftheprojectisestimated at127million EUA.Besides
Community aid,manyothersourceswillbeparticipating inthefinancing of
thisimportant project ;thesearetheAfricanDevelopment BankandtheAfrican
Development Fund,theArabBankforEconomic Development inAfrica,the
KuwaitiFund,theSaudiArabianFund,theAbuDhabiandQatariFunds,bilateral
aidfromSaudiArabia,Canada,Germany,FranceandItaly.
(v)InRwanda,Communityaidistoprovideagrantof20millionEUAasits
contribution totheMukungwahydroelectric powerstation ,whichwillhavea
nominaloutputratingof6.25MW.Thisprojectconstitutes thelogical
follow-up asregardselectricity infrastructure toapolicypursuedunderthe
earlierFunds,alargeproportion ofwhichwasusedtobuildtheelectricity
distribution network.
TheRwandese Government setsverygreatstorebythisprojectasawayof
copingwiththeenergyshortfall inRwandaandintheregionoftheGreat
Lakes(Rwanda,BurundiandKivu)withinthetime–scaledictatedbythe
forecasts forthegrowthofconsumption .
Thecostoftheoperation ,forwhichthetechnical andeconomicstudieshave
alreadybeenfinancedunderthethirdEDF,isestimated at29*9million EUA.
Besidesthesefiveoperations ,Community aidhasfinancedthefollowing in
thesamesector :

-23-
inRwanda,atechnical assistance missiontotheMinistryofthePlanto
helpsolvetheproblemsinthecountry *senergypolicy(70000EUA);
inWesternSamoa,twostudies,oneonthehydroelectric potential of
Upolu(50000EUA)andtheotherontwohydroelectric powerstations
(160000EUA).
(c)Agro-industrial complexes andfoodindustries
Threeschemeswerefinancedinthisfield,ofwhichtwowerethesubjectofjointCommission/EIBfinancing (inChadandCameroon).
(i)InChad,theBandaprojectconsistsofestablishing a3360haindustrial
sugar-cane plantation andbuildingasugarfactory/refinery(capacity 30000t)
toprocesstheproduction oftheplantation intheSarhregion.Thesugar
producedisintendedforthedomestic market,whichhasbeendependent on
imports uptonow.
Theprojectispartoftheefforttodiversify thenational economyandaims
atthesametimetoaccelerate regional development insouthern Chad,to
improvethetradebalance,tocreatejobsandproducetheinducedeffects
tobeexpected fromanindustrial projectand,lastly,tosatisfydomestic
sugarrequirements by1981/82•
Thecostofthewholeprojectisestimated atover57million EUA.Its
financing planisbasedonpotential contributions fromvariousproviders of
fundsincluding theChadState(ownresources),theCCCE(Prance),aconsortium
oflocalbanks,suppliercreditsand,lastly,Community aid.Thiscomprises :
(a)aCommission loanonspecialtermsof7«5million EUA(duration 40years,
witha10–yeargraceperiod,andaninterestrateof1%;
(b)anEIBconditional loanintheformofriskcapitalof7»5million EUA.
ThisloanhasbeengrantedtotheRepublic ofChadtopartfinancethe
State'smajority holdinginthecapitaloftheSocieteNationale Sucriere
duTchad(SONASUT)onthefollowing terms:
duration 20years,withan8-yeargraceperiod,andaninterestrate
of2Jb.
Itshouldbeemphasized thattheCommunity aidisbeinggrantedonverysoft
terms,whichmeansthattheprojecthasasolidfinancial baseand,by
encouraging theindustrialization ofoneoftheleast-developed ACPStates,
isthusfullyinkeepingwiththespiritoftheLomeConvention .

-24-
(ii)InCameroon ,furtherfinancial contribution providedjointlybythe
Commission ,theEIBandCameroonitselfwillbeusedtocompletethework
undertaken withthirdEDFfundsontheDibombari agro-industrial oilpalm
complex.Thepurposeofthefinancing istoextendtheareasslightly-
to6295ha-andtocoveroverspending duetotheconsiderable pricerises
thathaveoccurred sincetheprevious commitments weremade.
A2.5million EUAspecialloanfromtheEDPwillpartlycovertheoverspending
onearlieragricultural investments andwillpayfortheupkeepoftheplantations
thatarenotyetproductive fromJuly1977untilJune1980(anoperation whichis
considered virtually aninvestment );itwillalsobeusedtopurchasevarious
vehicles andmachinery andtocoverthecostofassembly andindustrial trials
intheoilmill.Theconditions oftheloanare:duration 25years,10-year
graceperiod,interestrate1%.
TheEIB*scontribution willbeintheformofriskcapitalviaaconditional
loanof2.3million EUAgrantedtotheSocieteCamerounaise dePalmeraies
(SOCAPALM )topart-finance theindustrial investments intheDibombari complex.
Theconditions oftheloanare:duration 20years,7-yeargraceperiod,interestrate2%until30June1984and4*5%thereafter .
Seventypercentoftheoutputofthisprojectisintendedforthelocalmarket
andtherestisforexport.Itwillprovideover1300newjobs.
(iii)InUpperVolta,theEuropeanInvestment Bankhasfundedtwooperations
involving assistance intheformofriskcapitaltotalling 4428000EUAfor
theextension oftheBanforasugarcomplexinthesouth-west .
Theseoperations comprise :
(a)aconditional loanof1428000EUAextendedtotheUpperVoltaStatefor
twentyyears,withasix-yeargraceperiod,ataninterestrateof2$.
ItwillbeusedtohelpboostthecapitaloftheSocieteSucriere Voltaique
(S0SUHV),thepromotoroftheproject,inwhichtheStatehasamojority
holdingj
(b)asubordinated loanof3millionEUAgrantedtoS0SUHVforthirteenyears,
withanine-year graceperiod,ataninterestrateof2/&forthefirstseven
yearsand5l/?%thereafter .
Theseamountwillgotowardsextending thesugarcaneplantations (from2250ha
to3350ha)andincreasing thecapacityofasugarfactorywhoseoutputwill
beincreased from20000t/yearto31500t/year.Thesugarproducedisintended
forlocalconsumption ,whichwilleliminate theneedforimports,helpthe
balanceofpayments andcreate500newjobs,alltobefilledbyUpperVolta
nationals .
TheCaisseCentrale deCooperation Economique (France)isalsoparticipating in
thefinancing ofthisprojectoperating throughtheNational Development Bank.
Besidesthesethreeoperations ,astudycosting40000EUAhasbeenfinanced by
thefourthEDPontheMossosugarprojectinBurundi.

-25-
(d)Othermanufacturing industries
Inthisfield,onelarge-scale regionalindustrial projectinWestAfricaand
severalstudieshavebeenfinanced.TheyconcernTogo,IvoryCoastandGhana
andGuyana,SudanandTanzania.
(i)TheCIMAO(Cimentsdel'Afrique del*Ouest)regionalindustrialproject
hasbeengrantedfinancing intheformofanEIBsubsidized loancombined with
riskcapitalassistance totalling 20million EUAtofinancetheconstruction of
aclinkerplantandtheprovision ofequipment foralimestone quarryatTabligo,
whichisnearLomeinTogo.
Thesubsidized loanwasgrantedtoCIMAO,acompanysetupbyanInternational
Treatyconcluded inDecember 1975betweentheIvoryCoast,TogoandGhana,whichholdequalsharesin92$ofitscapital,whilethethreeriskcapitaloperations
involvethetransfer of2million EUAtoeachofthethreeACPStatesthat
signedtheTreatytofinancetheirsharesinCIMAO.Theinterestratesubsidy
ontheEIB's14l/2-yearloanis&fom
Theriskcapitaloperations aireintheformofsubordinated loanstoeachofthe
threeStates;theyhavebeengrantedfortwentyyears,withafourteer>-year
graceperiod,ataninitialinterestrateof2
InMarch1976theEIBhadalreadygranted CIMAOaloanequivalent to5925000EUA
underthesecondYaounde Convention .
Moreover ,thecurrentdiscussions betweenthethreeStatesconcerned andthe
Commission shouldlead,inthenearfuture,totheallocation ofatotalamount
of18million EUAfromthefourthEDFforfinancing various'socialinfrastructures
thatareanintegralpartoftheproject.
Theproject,whichwillintegrate theproduction andmarketing ofacommodity
whichisessential fortheeconomic development ofthethreeStatesandwillcreate
newandsubstantial tradeflowsbetweenthem,isthefirstindustrial project
ofaregionalnatureinWestAfrica.Theplant'sproduction capacitywillbe
about1200000t/yearandtheTreatystipulates thatthethreecountrieswillbuy
thetotaloutput,whichwillbesoldatauniformpricetotheclinkercrushing
worksontheirrespective territories .
TheoverallcostoftheCIMAOproject–whichcomprises ,inadditiontothe
industrial plantwhichwillbethecompany'sproperty,rail,portandpower
supplyinfrastructure requiredforrunningtheclinkerplant(tobefinancedby
theTogolese Government )–isestimated at244*82million EUA,ofwhich
189.65million EUAisearmarked fortheindustrial plantand55«17million EUA
fortheinfrastructure .TheWorldBank(IBRD),theCaisseCentraledeCooperation
Economique (CCCE),theArabBankforEconomicCooperation inAfrica(ABEDIAI,theAfricanDevelopment Bank(ADB)andtheCIMAOcompany(fromitsownresources)
arealsocontributing tothefinancing oftheindustrial partoftheproject.

-26-
(ii)InGuyana,acomprehensive studywillbecarriedoutforaprojectforthe
construction ofafish-processing factorywithanannualcapacityof18000t
andemploying 700people,complete withthenecessary portinstallations
(costs140000EUA).
(iii)InSudan,agrantof334000EUAwillbeusedforanumberofstudieson
projectsfortheconstruction offactories designedtoprocessmolasses ,produce
paperpulpandmanufacture building materials .
(iv)InTanzania,,agrantof550000EUAwillbeusedtoproducetechnical and
economicstudiesforestablishing anindustrial complexincluding acanvasmill,
afactorymanufacturing footwear (particularly canvasfootwear)andaleather
goodsfactory.
2.RURALPRODUCTION
TheACPStateshadalreadyplacedgreatemphasis onthissector,attheprogramming
stage,sinceitisessential forthein-depth development oftheireconomies and
theimprovement ofthelotofthegreaterpartoftheirinhabitants .
Theresultsobtainedin1976bearouttheimportance attachedtoruralproduction
sincethesectorreceived nearly90million EUAandthuscomesimmediately after
industrialization ,together witheconomicinfrastructure .Itshouldalsobenoted
thatlargesums-10million EUA-havebeenallocated totheagricultural parts
oftwoagro-industrial complexes classified intheindustrialization sector.
Aswillbeseenbelow,numerousstudieshavebeenfinanced whichpromise
large-scale projects inthenextthreeyears.
(a)Plantations
Over43million EUA.hasbeenallocated tothisimportant subsector of'modern"rural
production ,thefundsbeingintendedforbothindustrial andvillageplantations .
Afeasibility studyforatea^-growing projectinSudan(220000EUA.)hasbeen
financed underthefourthEDF,andsohavethefollowing schemes:
(i)InBurundi,threeteaprojects werelaunchedin1976:thefinalphaseofthe
Toraproject,theextension oftheTezateafactoryandthecompletion ofthe
Muramvyaproject.
Thefirstprojectconstitutes thesecondphaseofaplantoimprovetheTora
agro-industrial complex.Thisventure(580haofteagardens,plusatea
factory)hasalreadyreceived Community financing tothetuneof4*6millionEUA,

-27-
andwiththisnewproject,whichcosts3.8millionEUAandinvolvesreplanting and
extending gardens,providing supplementary technical andsocialinfrstructure and
improving theexistingindustrial plant,Community aidwillhavecontributed over
8.4million EUAtotheoperation .
AsregardstheextensionoftheTezafactory(197000EUAgrant),thisisinfact
supplementary financing intendedtocoveroverspending incurredwhilethefactory
projectwas"beingexecuted underthethirdEDF.
Lastly,theMuramvyaproject(418000EUAgrant)supplements earlierCommunity
contributions totheprojectfortheextension ofteagrowingonvillage
smallholdings intheMuramvyaregion(secondandthirdEDIb:1884000EUA)
involving thedevelopment of500haofteagardensdividedintosmalllots.
Itmainlyinvolvesreplanting teabushesandextending theplantations (from
490to500ha)andprovidingadditional infrastructure (tracks,sheds,etc.).
(ii)InZaire,theprojectforextensions totheGosuma(Oubangui)plantation of
selectedpalmsisreceiving agrantof12.98million EUA.Theprojecthad
alreadyreceived 3573000EUAunderthesecondEDF(aspartoftheplanto
boostagriculture inOubangui).
Theschemefinanced underthesecondEDPisnearingcompletion andhasenableda
2000haindustrial plantation ofselected palmsand432haofindividual
plantations tobeestablished underfavourable conditions .
Theaimofthepresentprojectistoextendtheareaoftheindustrial
plantations to4500haandthatoftheindividual plantations to1500ha.
Whenfullyproductive ,i.e.asfrom199.0,thistotalareaof6000hawill
produce75000tofclustersannually,corresponding toabout16500tofpalmoil
and3400tofpalmkernels.Thewholeoutputisintendedprimarily forthe
domestic market.
(iii)InEthiopia,agrantof12.87millionEUAwillenableacoffee
improvement programme tobecarriedthrough.
Inadditiontolowyields,theEthiopian coffeeindustryisfacinganumber
ofseriousproblems .Production techniques arepoor,thecoffeetreesare
gettingveryoldandtheoutbreak ofthecoffeeberrydiseaseisbecoming a
bigthreattotheindustry asawhole.
Theaimofthisprojectistoincreaseyieldperunitoflandinthemajor
coffee-growing areasbyintroducing improvedcultivation techniques ,applying
diseaseandpestcontrolmeasures ,supplying inputs,settingupacredit
systemandcreating marketing channels ;alsoincludedintheprojectarethe
provision ofsupplies,thenecessary meansandservices,togetherwithresearchand

-28-
technical assistance ,and theconstruction ofinfrastructure ,notably rural
tracks .
Moreover ,theproject will help improve food crop production bycoffee-growers
andbyother farmers intheproject areas through theprovision offarm inputs
(fertilizers andselected seeds ). Theproject islocated ineight districts
spread over thefive major coffee –producing regions ofEthiopia .
(iv)InTanzania ,agrant of12.7 million EUAhasbeen given toacoffee
improvement programme .Thegrant isdesigned toraise theproduction ofthe
land currently under coffee inTanzania through alarge-scale extension
campaign backed upbyinputs andcredit toimprove coffee-growing and
pest-control methods .Introduced simultaneously into each area ,theprogramme
will over four years encompass anincreasing proportion ofthegrowers until
about 110500hectares (and280000growers )areinvolved .Itisanticipated
that annual production will beraised bynearly 50%from itspresent level of
46350tto69400 tandthat interms ofquality thetopfive classes will
represent 25%ofproduction asopposed to15%atpresent .Theincreased
production will have afarm gate value of 16.7million EUAandaforeign
exchange value ofatleast 34million EUAandwill raise export taxes to
13million EUA .Theindividual grower 'sincome will beraised byathird .
(v)InBurundi ,agrant of4«3million EUAwill beused tocomplete theImbo
project byconsolidating theresults achieved since theoperation was launched
in1967 andtomake theproject payitswayintheshort term through the
optimum use ofthefacilities created .Thegrant will beused tocomplete
acoffee plantation ,construct apulping plant ,install newgrowers and set
upvarious kinds oftechnical andsocial infrastructure ontheRuzizi plain ,
which hasbeen little exploited uptonowandoffers asolution totheproblem
ofregional overpopulation .With this project ,Community aidwill have
allocated atotal of8.9million EUAtothis important operation .
(b)Hydro-agricultural development schemes (15-4million EUA)
Anumber ofACPStates have aspecial interest inthis type ofoperation
since itmeans that part ofagricultural production isnolonger atthemercy
ofadverse weather conditions such asthose encountered intheSahel ,
particularly over thelast fewyears .Inthelong run ,operations ofthis
type should atleast reduce theneed toresort tofood aidindifficult
periods ,thecost ofwhich (including transport )isvery high andwhich
frequently presents major problems asregards timely delivery .
3 Hydro-agricultural schemes also have theadvantage that they accustom the
peasants tointensive growing methods ,which domuch toensure that the
production offood and cash crops develops steadily .

-29-
Fiveoperations andanumberofstudieshavebeenfinancedinthisfield,
involving Burundi,Jamaica,Mauritania ,SomaliaandUpperVolta.Itwill
alsoberecalledthattheSelingue damprojectreferredtoaboveincludes
®bighydroagricultural development scheme.
(i)InJamaicaa1millionEUAgrantanda2.7millionEUAspecialloan
willenableequipment andtechnical assistance tobesuppliedforthe
construction ofmicrodams andforirrigation .Forseveralye*rsnow,
Jamaicahassuffered fromperiodsofdroughtthathaveledtow*ter
shortages inallregionsandtotheintrusion ofsaltwaterintocoastal
regionaquifers ,thelatterbeingduetointensive pumpingfromwells
duringthelongperiodswithoutrainfall .Theadverseweatherconditions
haveseriously affectedtheoutputofrootcropsandvegetables ,most
ofwhicharenon-irrigated .
Theinadequate growthofagriculture hasgivenrisetorapidexpansion
ofimportsofagricultural products anddeclining agricultural self-
sufficiency .
TheJamaican Government therefore planstoimplement anumberof
investment schemesdesignedtoimprovewatersuppliestotheruralsector
bothforsocialreasonsandinordertoincrease agricultviraloutput.
Theoverallcostoftheoperation isestimated at10million EUA.
Community aidwillcontribute tothisoperation bycoveringthecostof
purchasing equipment necessary fortheconstruction of220microdams and
pumpsthatwillservetheirrigation schemesassociated withthedams
andbyfinancing thetechnical assistance requiredforsupervision of
theworks.
(ii)InUpperVolta.a1.8millionEUAgrantwillenable300haofflat
landdownstream fromtheruraldamsconstructed withfinance fromthe
firstEDFtobedeveloped forricegrowingandmarketgardening by
meansofanirrigation anddrainage system.Thisschemefollowson
fromafirstphaseinvolving thedevelopment of150ha,financed from
thirdEDFresources andcosting5^9000EUA.Thisprojectalsoinvolves
creating aworkforce tocarryouttheimprovements andmaintainthe
installations afterwards .
(iii)InMauritania ,a5.8million EUAgrantforthecreationofapilot
areainthe(Jorgolwillcoverthecostoffinancing thesecondstage
ofworkonthis700haarea,thedevelopment ofwhichwasstartedunder
thethirdEDF.Notonlyinthepilotareaimportant initsownright,
beingaprojectwhichinvolvestheproduction offoodcrops(m=inlyrice)
inacountrywhichhasseriousproblemsinthisfield,butitalso
pointsthewaytomuchbiggerprojectsinthefuture,e.g.theschemestoimprovetheGorgolValley(10000ha)andtheSenegalValley(several
tensofthousands ofhectares onMauritanian territory),whichother
bodiesareinterested infunding.

30
(iv)InSomalia,a1.4million EUAgranthasbeencommittedfor
agricultural andwaterengineering studiesfortheSaakowprogramme in
theJubaValley;thesestudiesrelatetotheconstruction ofirrigation
structures foranagricultural programme involving 34000haandin
particular forthedevelopment of5000ha.ofthatarea.
Thisprojectformspartofoneofthemanyirrigation programmes
recommended byastudyfinanced underthethirdEDF,atacostof
400000EUA,onthedevelopment ofthewholeoftheJubaValley,which
involves 300000peopleincluding 50000formernomadswhohaverecently
settled down.
(v)Theseprojects weresupplemented byvariousoperations inthe
technical cooperation field,namely:
InGhana :studyforanirrigation projectinWeya(95000
EUA)
InMadagascar :studyforthesecondphaseofthedevelopment of
theAndapaBasin(32000EUA)
InUpperVolta :provision ofanexpertfortheOfficeNational
desBarrages etde1'Irrigation tomonitor
implementation oftheirrigation programme
(74000EUA)
InJamaica :provision ofanengineertoworkforthe
Government onpreparing thedossierforthe
"220microdams "project(8900EUA)
(c)Agriculture (foodandcashcrops–21.3million EUA)
Thissub-sector ,together withthoseofmicroprojects andtraditional
stockfarming andfishing,isofgreatimportance tothebulkofthe
workingpopulation ofmostACPStates.Community aidhasalways
attached greatimportance tothisfield,fortheresultsthatcanbe
expected fromaidoperations herehelptoreduceregional imbalances ,
curbruraldepopulation andinshort,increasethewell-being ofthe
population ,whichisoneofthemainobjectives oftheLomeConvention .
TwooftheEEC'snewpartners–GuineaBissauandtheGambia-willbe
receiving agricultural inputspaidforoutofCommunity grants.
(i)GuineaBissauwillbeimporting (atacostof162000EUA)
vegetable seedsandlightagricultural equipment ,whichwillbemade
available tothepeasantfarmerstoencourage national production of
foodproducts .
Thequantities ofseedsshouldsufficetosow350haandthusproduce
5000tofvegetables *Thelightagricultural equipment ,whichis
mainlyintendedforanimal-drawn tillage,willhelptointensify
cultivation onanareaofbetween500and600ha.

-31-
Theproject will therefore increase considerably thepeasant farmers 1
income while atthe same time meeting animmediate need forfood for
both theurban population and that ofcertain rural areas .
(ii)Thescheme tobecarried outinTheGambia (atacost of982000EUA)
will enable thefarmers intheprovinces ofMcCarthy Island andUpper
River tobeprovided with animal-traction equipment ,oxteams andselected
seed onterms compatible with their financial resources (theproject
involves 33villages ,22000people andanarea of13000ha,which is
20%ofthecultivated land ).
This project will make itpossible tostep upagricultural production by
enabling sound growing techniques tobeapplied atthemost appropriate
times andbyoffsetting thelabour shortages during themost busy periods .
Itmeets theneed toensure self-sufficiency inessential foodstuffs ,
mainly cereals ,and toimprove thecountry 'sbalance ofpayments by
reducing food imports while atthe same time increasing thequantities of
groundnuts exported .
Pour financing operations concern theextension ofearlier projects whose
results appear promising :
(i)Therural development project intheDepartment ofBad€guich6ri in
Niger wasallocated a1.3million EUA grant tocontinue thework funded
with 1.1million EUAfrom thethird EDFforimproving theproduction and
marketing ofcash crops (cotton )andfood crops (millet andsorghum )and
forcarrying outmeasures toprotect and conserve the soil and small-scale
transport andinfrastructure projects (tracks ,storage sheds ,etc.).
(ii)Development ofthecotton –growing area inSenegal (6.5million EUA
grant ). This project ,which involves 5000farming families ,forms part
oftheefforts made with Community aidunder thesecond andthird EDPs to
diversify theSenegalese economy through theintroduction andsubsequent
expansion ofcotton growing .
Itisproposed toputafurther 16000haunder cotton intheregions of
S6n6gal Oriental ,Haute Casamance andSin£-Saloum through thedissemination
ofimproved growing techniques andtheprovision ofinfrastructure (sheds ,
rice mill ).
Thecrops rotated with cotton will benefit from these measures and
additional production of24000 tofseed cotton ,4500 tofgroundnuts
(forexport )and40000tofcereals (intended forlocal consumption )is
anticipated .
Theoperation will play alarge part indiversifying theSenegalese economy
andwill help restore abalance between theregions bydiminishing the
preponderence ofthe "groundnut triangle "infavour ofareas which have
hitherto been less developed .

-32-
(iii)A4*2million EUAgrant hasbeen provided forthecontinuation of
thepeanut scheme inSenegal ,theaidbeing granted onthestrength of
theexcellent results oftheprevious Community project .This project
isintended toextend by8400hatheareas atpresent under cultivation
inSin€-Saloum ,Casamance andS£n£gal Oriental ,andtoimprove the
quality ofproduction over anarea of28000haintheBiourbel region .
TheSenegalese share oftheinternational market inthese products ,which
offers bright prospects ,will therefore beincreased and theincome of
therural population will beraised considerably .
(iv)Theinterim project forming part ofanintegrated programme forthe
development ofthecotton –producing area ofChad (1977/78agricultural
year )takes over from theprogrammes previously financed inthis field
(1972-77 »cost 14million EUA). Theinterim project hasbeen allocated
agrant of3.3million EUA totide itover pending thestart ofanew
multiannual programme which isbeing prepared forfinancing from the
fourth EDF . Because ofthe decisive influence ofthe cotton sector on
the Chad economy itwas ofcardinal importance not tointerrupt the
support being given tothis sector for thechangeover from traditional
cultivation to"productivity-oriented "cultivation using improved
techniques .
A2.7million EUAgrant supplements earlier Community aidforagricultural
projects inMali :development ofrice growing using controlled flooding
intheS€gou area ,development oflowland rice growing intheSikasso
region ,mass information campaign for theprotection ofseeds andcrops
and thedevelopment ofdah growing .These areworthwhile projects whose
implementation was seriously disturbed bythesharp price increases of
These various investment projects have been supplemented bytechnical
cooperation measures taking theform either ofstudies oroftechnical
assistance totheStates concerned .These operations involve :1973/74.
inGuinea Bissau :study for thedevelopment ofcotton
growing (200000EUA)
inMali finalization ofthe studies for the
construction ofarice mill inDioro
(55000EUA)
inRwanda provision oftechnical assistance to
promote pyrethrum growing (160000EUA)
inTrinidad andTobago provision ofanexpert tomake an
initial assessment ofthefood production
unit project (12000EUA)
study forthedevelopment ofthe
Oropuche (60000EUA)
inUpper Volta study forthedevelopment oftheValley
oftheVoltas (300000EUA)

-33-
inSomalia :provision oftechnical assistance forthe
MinistryofthePlan(300000EUA),
involving studiesforagricultural and
stockfarming projects
inCameroon :studyonthefuturereorganization ofthe
National RuralDevelopment Fundtoenable
ittofulfilthenewtasksassignedtoit
(70000EUA).
(d)Stockfarming (3030000EUA)
Twooperations havebeenfinancedinthisfieldinNiger,atatotalcost
of3030000EUA.
Theobjectofthefirstoperation istoprovideNiger,bymeansofa
1.4million EUAgrant,withthemeanstoenablethecampaign against
contagious bovinepleuropneumonia tobecontinued forafurtherperiod
ofthreeyears.
Thesecondschemeisconcerned withstock-fattening bypeasantfarmers.
A1610000EUAgranthasbeenmadeinordertoimprove,extendand
intensify thestock–fattening alreadypractised bythefarmersinthe
departments ofNiameyandZinder;inaddition ,ademonstration scheme
willbecarriedoutinirrigated agricultural areasinthedepartment of
Tahoua.Bytheendofthethirdyearofthisthree-year programme ,
8250farmersin500villageswillbeinvolved ;theywillreceive
20500headofcattle.
Thisscheme,whichisparticvilarlyimportant forthedevelopment of
agriculture combined withstockfarming willgenerate anannualoverall
increaseinvalueaddedofmorethan738000EUA,agooddealofwhich
willaccruetotheproducers .
(e)Fishing(4828000EUA)
Onlyoneprojecthasbeenfinancedinthisfield.Thisinvolves the
development offisheries inMaliandfollowsonfromaninitial
experimental phase,financed underthethirdEDF,whichindicated that
theprojectwouldbebothusefulandfeasible .
Inthelightofthegoodinitialresultsobtainedduringtheexperimental
phaseitwasdecidedtograntCommunity aidof4*8million EUAtocontinue
thisprojectforafurtherfiveyears.Theobjectives areto:
increasetheincomeandimprovethelivingconditions ofthefishermen ;
satisfythedomestic marketforfreshfishonaprogressive basis;
developfurtherandrationally exploitthecountry *sfisheryresources
andincrease thenumberofoutlets ;
increasethequantity andcontrolthequalityofexportsofdriedand
smokedfish.

-34-
(f)Micropro.jects
Thefirst annual programme involving this newtype ofCommunity aidwas
launched inDecember 1976 with agrant of270000EUAtoCameroon .This
programme isofatypically rural nature ,notonly because ofits
location but also because ofthenature ofthe 25schemes involved :the
rural water engineering (wells ,bore holes ,small water supply systems ),
rural tracks ,bush maternity hospital ,small storage warehouses ,rural
markets ,supply ofmarketing equipment ,etc .Allthese microprojects will
involve theparticipation oftherural communities concerned ,inthe
form either ofcash orofwork ,andthere will beafinancial contribution
from theState .Inall ,thecommunities aretoprovide 50$ ,theState
19$andtheEDFtheremaining 31$ ,which will work outatbetween 3900
and 30000EUA for each microproject .
Anumber ofother projects ofthis type areunder appraisal .
ECONOMIC INFRASTRUCTURE
Nearly 20$ofall .programmable Community aidunder theLome Convention
hasbeen earmarked forthis sector ,upon which theeconomic development
ofevery country depends .
1.Roads and bridges
Operations inthis sub-sector relate toinvestment projects intheCentral
African Empire ,Niger ,Somalia ,Togo andUpper Volta andtovarious studies
ofwhich details aregiven below .
TheCentral African Empire hasreceived agrant of1.2million EUA for
thereconstruction offive bridges and theimprovement oftheir approaches .
These bridges ,situated ontheroad joining theCentral African Empire
tothe Port ofDouala and ontheroad between Bangui and theproductive
regions oftheeastern part ofthecountry ,were seriously damaged oreven
completely destroyed during therecent rainy season .Thereconstruction
ofthese bridges will enable themajor highways inquestion tobereopened
totraffic ,which will considerably reduce transport costs since vehicles "
have been forced tomake long detours since thebridges collapsed .
Upper Volta hasreceived a12.8 million EUAgrant forimproving and
asphalting the 97km-long Ouagadougou-Koudougou road ,which links the
capital with thecountry 'sthird biggest urban ,business andindustrial
centre .This work wasmade necessary bythecopulation growth and
economic expension intheKoudougou region ,where major agricultural and
industrial projects have already been carried outinthepast andothers
are tobeexecuted inthe future .
Niger has
road .received a4«7million EUA grant tocomplete theDosso-Madaoua

-35-
Thefollowing threeprojects-involving Niger,TogoandSomalia–have
someparticularly interesting features .Thefirsttworepresent the
finalphaseoflarge-scale projects toopenupregionswithpoor
communications ,whilethethirdstandsoutbecauseitisbeingfinanced
inanewway.
Modernization oftheNiame.y-Zinder highwayinNiger
A22054000EUAgrantwillenabletheTchadaoua-Takieta section (141km)
toimproved andasphalted andtheasphaltsurfaceoftheNiamey-Dosso
section(129km)"towidened;thiswillcompletethemodernization
oftheNiamey-Zind erhighway,anoperation onwhichCommunity aidhas
spentnearly50million EUAsince1965(studiesandworks).
Themodernization ofthishighwaywillmakeamajorcontribution to
creatingnational cohesion andisaprerequisite forNiger'seconomic
andsocialdevelopment .
Theroadstretches formorethan1000kmacrossthesouthofthe
country-wheretwo-thirds ofthepopulation andafairpartofthe
country'sagricultural potential areconcentrated .Itwillextendas
farasLakeChadwhentheFriendship Highwayfinanced byCanadianbilateral
aidiscompleted beyondZinder.Itisavitallineofcommunication for
Niger:itenablescontacts andtradebetweenthevariousregionsofthe
countrytobesteppedupandcarriesthebulkoftheconsumer andcapital
goodsimportedthroughtheportsofBeninandNigeria.
Modernization oftheOuagadougou-Lome highway
Theimprovement ofTogo'sNational Highway No1,whichisthebackbone
ofthecountry'sroadtransport systemandwhosemainroleistogivethe
northernregionsaccesstotheportofLome,willbecontinued withthe
improvement andasphalting oftheKante–Mangoroad(86km,10.4million EUA
grant).
Thebuilding ofthissectionalsoconstitutes animportant steptowards
thecompletion oftheOuagadougou-Lome international highway.Thetotal
lengthofthehighwayis972km,ofwhich555kmofthe685kmonTogolese
territory hasalreadybeenmodernized oriscurrently beingmodernized
(theUpperVoltasectionoftheroadisnowfinished).
Inordertocompletethislink,onlytheMango-Cinkasse section(130km)
willremaintobeimproved .
Themodernized roadwillprovideUpperVoltawithafurtherlineof
communication (inadditiontothelongerandlesspracticable roadstoGhana
andIvoryCoast),anditwilleventually beofgrowingimportance tothe
westernregionofNigertoo.

-36-
Moreover ,itwaswith this inview that atripartite agreement was
concluded inSeptember 1976 between Togo ,Upper Volta andNiger .
This agreement stipulates inter alia that theforeign trade ofthe
signatory countries –nowjoined byMali -should henceforth bedirected
preferably totheport ofLome .Consequently itisplanned toimprove
theport andincrease itshandling capacity to5million tinthemedium
term .
Improvement andasphalting ofthe Golwein-Gelib roadmSomalia
Itshould bepointed outthat this conventional road modernization project
isnoteworthy forthefact that itisthefirst real cofinancing
operation tobecarried outwith theArab Fund forEconomic andSocial
Development .
Theproject involves theimprovement andasphalting ofthe 257-km long
Golwein-Gelib road ,which isthecentral section ofthehighway linking
thecapital ,Mogadishu ,with theport ofKismayu .Itsaim istoreplace
apoor dirt road ,unfit fortraffic intherainy season ,byafast
permanent road ,which will befitforuse byheavy traffic all theyear
round .Itwill create amuch easier and much more economical link between
thecountry 'stwomain centres ofdevelopment ,namely Mogadishu and
Kismayu ,and itwill also facilitate development oftheregions served by
theroad ,particularly thevery fertile Scebeli andJuba valleys .The
cost ofthewhole project isestimated at39«1 million EUA ,which will
befinanced jointly bytheEDP (19-6 million EUA)andtheAFESD
(19-5 million EUA).
*
Under theheading ofroad transport anumber ofinvestment-linked technical
cooperation schemes have also gotunder way ,involving works management
andsupervision androad studies .Among thelatter thefollowing may be
mentioned :
mSénégal :
inSudan :
mGuinea
Bissau :
inMali :study oftheTambacounda-Kedougou road(460000EUA),
study oftheKolda-Velingara road(40000EUA);
economic andtechnical study oftheKadugli-Talodi
road(300000EUA);
study oftheGuebo-Xitole road(200000EUA);
study oftheBankass –Koro-Upper Volta frontier road
(230000EUA);
inRwanda : study oftheKigali-Butare road (54000EUA).

-37-
2.Railways (7«7million EUA)
FurtherCommunity aid-of7.7million EUAfromfourthEDFresources ,
including 3.8million EUAintheformofaloanonspecialterms-
wasgivenfortherealignment oftheCongo-Ocean railway(CFCO),
bringingtheoverallCommunity contribution towardsthefinancing of
thisproject uptonearly15million EUA.
Thetotalcostoftheoperation maybeestimated at196.5million EUA.
TheCongolese Government iscontributing 23million EUA,andother
contributions arebeingmadebytheAfricanDevelopment Bank(ADB),
theFondsd'AideetdeCooperation (FAC),theCaisseCentrale de
Cooperation Economique (CCCE),theCanadianInternational Development
Agency(CIDA),theWorldBank,theArabBankforEconomic Development
inAfrica(ABEDIA),theSaudiArabianDevelopment Fundandthe
KuwaitiFundforArabEconomic Development .
Stretching fromPointeNoiretoBrazzaville ,theCFCOwasbroughtinto
operation in1934.In1962thediscovery ofsubstantial manganese
deposits inGabonledtotheconstruction ofarailwaylinefromthe
GabonesefrontiertoMountBelo(KP200ontheCFCOsection),the
ore-carrying trainsthentakingtheCFCOlinetoPointeNoire.
Verysoon,inviewofthesteadyincrease intraffic,abottleneck
aroseonthesectionofthelinecrossing theMayombemassif.
Realignment oftheCFCOhadtherefore becomeimperative sincethis
sectionwasexpectedtobecomecompletely saturated by1978.This
wouldnotonlyslowdownforestryactivities innorthern Congo,the
CentralAfricanEmpire,south–eastCameroon andsouthern Chad,(the
woodcanbetransported economically onlybyrail)butwouldalso
leadtoincreasing difficulties asregardsthetransportation ofthe
manganese (2milliont)fromGabon.
Itistherefore plannedtomodernize around87kmofthelineinthe
Mayombe range.
3.Portsandinlandwaterways (5million EUA)
Twoprojects havebeenfinanced bytheEDFinthisfield,onein
CongoandtheotherinCameroon ?Anappraisal oftheportinfrastructure
inGuineaBissauhasalsobeenfinanced .
Adecision wastakentoprovidesupplementary financing of7^9000EUA
forCongotoenableworkonextending theportofBrazzaville tobe
completed .

-38-
CameroonistoreceiveCommunity aidof4218000EUA(comprising
2million EUAintheformofagrantand2218000intheformof
aloanonspecialterms)forextending andimproving operating
conditions intheportofDouala,whichisnolongerabletomeet
therequirements oftheCameroonian economy.
Therapiddevelopment oftradehasbroughtaboutasteadyincrease
intheactivities oftheportofDouala,highlighting theneedto
modernize itsfacilities ;projects financed fromfirstEDFresources
(supplyofadredgerandrebuilding offourquays)andfromvarious
otherexternal aidsources andgovernment fundsprovided onlya
temporary improvement .
Theextensiore plannedcomprise theconstruction ofanewtimberport..
andacontainer wharf,dredging oftheaccesschanneltomakeit
deeper,andtheconstruction ofanewfishingportandship-repair
yard.
Thetotalcostoftheprojectisestimated at94*6million EUA.
Cameroonwillputup13.5million EUAandvariousexternal financing
sources(ABEDIA,ADB,IBRD,Canadian ,FrenchandGermanbilateral
aid)willalsobecontributing .
4.Télécommunications (6.8million EUA)
Community aidwillprovideagrantof6794000EUAfortheimprovement
oftelecommunications inSudanbyfinancing :
(i)thereplacement oftheout-of–dateandoverloaded switching
centreinKhartoum byanewautomatic unitfornational andinternational
calls;
(ii)theinstallation ofasupplementary unittoextendthecapacity
oftheexistingsatellite tracking stationsituated atItemHaraz,
nearKhartoum tandpermitdirectcommunication withothercountries .
Theprojectispartofavastoperation todevelopPan-African
telecommunications (PANAFTEL),whichstemsfromarecommendation
adoptedbyanOAUCommittee in1964aimingattheestablishment
ofdirecttelecommunications betweenthirty–sevenAfricancountries .
Throughthewholeoperation itisplannedtocreateabout20000km
ofradiolinksandseventeen international switching centres.
Theotherprojects formingpartoftheSudanesesectionofPANAFTEL
willbemainlyfinanced bytheArabFundforEconomic andSocial
Development .

-39-
SOCIALDEVELOPMENT (16.7million EUA)
Socialdevelopment received3.7%ofthetotalamountofaidwhichcouldbe
programmed in1976.Asalreadystated,thereasonwhytheproportion of
aidearmarked forthissectorissosmallistheamountoftimeneededto
preparethedossiersforinfrastructure projects andtodrawupthe
programmes ofscholarships ,traininggrantsandspecifictraining.
Inappraising projectsinthisfieldparticular attention ispaidtothe
studyofthequestions ofrecurrent costs,thetraining ofstaffresponsible
fortheoperation andmaintenance ofcapitalprojects ,andtheadaptation
ofbuildings andequipment tothesurroundings andtotheneedsofthe
population .
1.Education andtraining (13.5million EUA)
Educational infrastructure
Twooperations werefinancedinthisfield,oneinBurundiandtheother
inRwanda.
InBurundi,agrantof3«5million EUAwillenableaFacultyofScienceand
astudents *hosteltobeconstructed andfittedoutinBujumbura .The
purposeofthisprojectistoprovidetheestablishment withtheclassrooms
andthelaboratories forpractical workandresearch(5456m^)whichit
lacksandalsotoprovidestudents readingsciencesubjects-whichare
essentialforthecountry *seconomic development –withsatisfactory
accommodation andworkingconditions .Thehostel,whichwillhouse208students,willcoveranareaof4608m^.
IntheRwandeseRepublic ,Community aidof1520000EUAwillpermitthe
construction andfittingoutoftheFacultyofMedicine atBut*>re,whichis
designedtotrainRwandese doctorswithemphasisbeingplacedontheactual
healthsituation inthecountry.
Theexecution ofthisprojectwillhelpensurethesuccessoftheGovernment *s
medicalstafftrainingpolicy.Itwillmakeitpossibletoimprovethe
workingconditions ofthestudents andteachingstaff,whoarehavingto
workinout–of–dateandunsuitable premisesatpresentandparticularly
lacklaboratories forpractical workandresearch.
Inamorespecificarea,namelytheprovision ofinstructors andvocational
training ,threeschemeswerefinanced :
(i)oneinNiger(8000EUA),whichinvolvedsendingatechnicalinstructor
onapreparatory missiontothetrainingcentreforpressandfilmjournalists ,
withaviewtodefiningthetraining schemestobeundertaken inthisfield;
(ii)asecondinUganda(10000EUA)involvedtheprovision oftechnical
assistance formanagement training ;
(iii)athirdschemeinTogo(54000EUA)consisted insendinganinstructor
totheUniversity ofBenin'sSchoolofIndustrial Engineering .

40
Scholarships
In1976aprovisional overallamountof8million EUAwasdistributed ,amongthe
ACPSta.tesinordertoenablethemtoawardscholarships andtraininggrantstotheirnationalsinthe1976/77academicyear.ItseemedAppropriate ,
pendingfinalizationofthegeneraltraining programmes ,foraprovisional
amounttobemadeavailable toenableastarttobemadeonthefinancing of
training schemesassignedpriority bytheStatesconcerned .Thisprocedure
offersthetwinadvantages ofavoiding anybreakincontinuity inthe
programmes drawnupwiththeformerassociates andofenablingthetraining
programmes requested bythenewACPStatestogetofftheground.Eachof
theprovisional amountswillbesubsequently chargedagainstthe1976-80
multiannual training programme oftherelevant ACPState.Intheyear
1976/771179scholarships hadbeenawardedbytheendofDecember 1976,
ofwhich267inEurope,798inthehomeACPStateand114inotherACPStates.
2.Publichealth
Theproblemoftraining management staffandaboveallmaintenance personnel
isquiteacuteinmostACPStates.ForthisreasontheCommunity financed
inthisfieldanumberofpreparatory andconcurrent technical cooperation
schemes,amongwhichthefollowing shouldbementioned :
inLiberia,afeasibility studyfortheRuralHealthCentre(10000EUA);
inMadagascar ,atechnical assistance mission(costing16000EUA)to
definetheadministrative systemtobeusedintheBefelatanana and
Ampefiloha hospitals andtheschemestobeundertaken forthetraining
ofmedical,management andmaintenance staff;
inSierraLeone,atechnical assistance missiontodrawupalistof
equipment tobesuppliedtothecountry'shospitals ,healthcentresand
andpublicdispensaries (10000EUA),andtheprovision ofatechnical
instructor responsible forestablishing anational maintenance service
andtrainingstaffforthatservice .
Asregardscapitalprojects proper,onlyoneproject wasfinanced .The
amountinvolvedisfairlysmall(2150000EUA)buttheprojecthascertain
originalfeatures .TheCommission 'sprevious experience inthisfieldh"S
shownthatoverandabovetheconstruction ofbuildings andthesupplyof
equipment ,emphasis shouldbeplacedontheadministration ofhospitals ,on
therecurrent costsentailed bytheirestablishment andonthetraining of
staffresponsible forrunningandmaintaining them.Itwasagainstthis
background thattheprojectinquestion wasappraised inconjunction with
theSierraLeoneauthorities .
Itwastherefore stipulated thattheexistinghospitalinfrastructure should
firstofallbestrengthened byimproving itsequipment ,andthatthis
shouldbecomplemented byaschemetotrainstafftomaintain boththenew
andtheexisting equipment .
Theprojecthastwoseparate aspects :
thefirstinvolves equipping orre–equipping hospitals ,healthcentres
anddispensaries withmedicalhardware ;
thesecondinvolvestraining twomobileteamstomaintain andrepair
equipment inallhealthunits.

-41
3.Waterengineering ,urbaninfrastructure andhousing(1.5millionEUA)
Nomajorproject wasfinancedinthissectorin1976.Thissituation will
notrecurin1977»however,sincethedossiers ofvariousoperations
undergoing appraisal willshortlybeavailable andthefollowing studies
havebeensetintrain:
Madagascar : studyondrinking watersuppliesintheSouth
(500000EUA),
Niger: technical assistance forthesinkingofwells
(135000EUA),
technical assistance toGFEDES(70000EUA),
Malawi: technical assistance forthepreparation of
projects (120000EUA).
Withparticular reference tohousing,however,itshouldbepointedoutthat
theexceptional aidof3million EUAgrantedtoMauritius willbedevoted
entirelytotheconstruction oflow-cost housing,whichwillmakeit
possibletorehousepeoplewhosehomesweredestroyed bythecyclone.

-42-
TRADEPROMOTION (1.9million EUA)
Theparticipation oftheACPStatesintradeeventsgavealarge
numberofproducers fromthosecountries anopportunity todemonstrate
theirgrowinginterestintheopenings offeredbytheEuropean market.
Atthesametimetheseeventsenabled themtomeetEuropean importers
anddistributors interested intheirproducts.Tradingchannels were
established anddeveloped asaresult.
Undertheprogramme fortheparticipation oftheACPStatesintrade
eventsheldinEuropeandAfrica,ACPStateswererepresented on140
standsateighteeninternational fairsandspecialized showsin1976,
including seventeen intheMemberStates.
Moreover ,theseriesofindustrial testsonaboutfortylittle-used
orunexploited tropical woodvarieties originating inAfrican ACPcountries
wasconcluded duringtheyearanddetailed datasheetswereproduced
foreachvariety.Thesedatasheetswillbedistributed insucha
wayastoreachthelargestpossible numberofusersoftropical wood
inEurope.AnumberofACPStatespossessing forestry resources took
partin1976intwospecialized fairsinCopenhagen andRotterdam to
promotethenewvarieties ;thispromotion campaignwillbepursued
energetically in1977*
TheACPStatesinquestion havealsorequested thatthestudyonthe
packaging ofsawnwood befollowed upinordertoensurethattherules
proposed inthestudyareapplied.
Theschemetopromotetropicalfruitandout-of-seasonvegetables was
alsocontinued ,withencouraging results.Astudyhasbeenundertaken
withaviewtoidentifying theopportunities forgrowingtheseproducts
intheACPStatesandthestepstobetakeninEuropetoincrease
importsoftheproducts inquestion .
Furthermore ,anumberofmeetings betweenEuropean businessmen and
nationals oftheACPStatesandnon-associated developing countries
wereorganized inthecontextofparticipation bytheACPStatesin
tradeevents.Thesemeetings provideanopportunity forimproving
tradecontacts andtheconditions underwhichproducts aremarketed.
TheCommunity provided financial andtechnical assistance fora
seminaronmarketing andinternational tradeheldatYamoussokro in
IvoryCoastforseniorforeigntradeofficials fromtheACPStates.
Thisseminar wasanunqualified successandwillbefollowed bya
similar seminarforcommercial attaches oftheACPStatesand
non-associated developing countries whoarepostedinEurope.

-43-
EXCEPTIONAL AID (Article 59»amount 47»7 million EUA)
Pursuant toArticle 59oftheLome Convention ,in197° theCommunity
decided togrant exceptional aidtotalling 47740 345EUAtoten
ACPStates .Thepurpose ofthis aidwastoenable therecipient
countries todeal with difficult situations resulting from natural
disasters (Niger ,Somalia ,Mauritius ,Madagascar )orfrom conflicts
(Zaire ,Zambia ,Malawi ,Botswana ,Rwanda ,Lesotho )*
Thefunds placed atthedisposal oftherecipient countries were
used topayforimports ofessential products andmaterials (spares ,
fertilizer ,seed ,fuel ,detergents ,rolling stock )andalso for
building orrepairing roads ,houses andschools .
Ingeneral theaidwasputtousewithin asatisfactory period of
time ,despite certain delays encountered atthebeginning ofcertain
operations ,which were notably duetothefact that theCommission
Delegations were notyet established inthenewACPStates .
Thefollowing table gives details oftheoperations :
NIGER 9614 345 EUA supply ofgroundnut seed J
SOMALIA 3426 000 EJA construction ofschools fornomads I
ZAIRE 15000 000 EUA purchase ofspares
ZAMBIA 7500 000 EUA purchase offertilizer ,fuel ,
vegetable oils ,detergents ,spares
MALAWI 1500 000 EUA purchase ofspares ,cement ,fertilizer I
BOTSWANA 1000 000 EUA purchase ofrolling stock I
MAURITIUS 3000 000 EUA construction ofhouses
MADAGASCAR 1700 000 EUA repair ofdamage caused bycyclones
RWANDA 4000 000 EUA purchase oflorries andfuel I
LESOTHO 1000 000 EUA maintenance ofatrack I
47740 345EUA
Plus 300000EUAunder theYaoundé Convention .

-44-
STABEX(72.1million EUA)
Theexportearningsstabilization systemdoesnotcomeunderfinancial
andtechnical cooperation .
However,mordertoprovideanoverallviewofEDFcommitments and
expenses ,thetransfers effectedfor1975undertheexportearnings
stabilization systemaresetoutinTable5.
OTHER
Anumberofgeneral Community aidoperations donotfallwithinany
oftheabovesectors.Theyincludeinparticular generaltechnical
cooperation schemesandCommission activities inrespectof
information andseminars .
Generaltechnical cooperation
Undertheheadingofthespecialmeasures providedforbythe
Convention infavouroftheleast-developed States(Article 11of
Protocol No2),expertswereplacedatthedisposalofBurundi
(NationalAuthorizing Officer–40000EUA),UpperVolta(Ministry
forthePlan-95000EUA),Swaziland (CentralStatistical Office-
190000EUA)andChad(MinistryforthePlan-100000EUA)atthe
requestofthosecountries .
Thesetechnical assistants ,eachworkinginhisrespective field,
willhelptoidentify ,prepareandcarryoutprojects comingwithin
theframework oftheprogramming ofCommunity aid,andwillassist
intraining thenationalstaffwithwhomtheyaretowork.
Information
TheCourier
Inthelasttwoyearsorso"TheCourier"hasbecomenotonlyalink
betweentheCommunity andtheACPStatesbutalsoalinkbetweenthe
ACPStatesthemselves .Ithelpstobringtogether ACPStatesbelonging
tothesamegeographical area,asisborneoutbytheinterest taken
initbytheauthorities ofthosecountries ,butitalsohelpstobring
togethertheACPStatesthatarethefurthestapartgeographically by
enabling themtogettoknowoneanotherbetter.Although "TheCourier"
iscentred ontheACPStates-sinceitisameansofinformation and
documentation ontheLom£Convention -itisalsoaforumforthe
exchange ofideasondevelopment matters.

-45-
Sincethebeginning of1973"TheCourier"hasbeenpublished intwo
editions-EnglishandFrench-anditnowhasatotalprintrunof
over36000copieswithacirculation inmorethansixtycountries,
inthefrontrankofwhicharetheACPStates.
Thegrowingreadership andreputation ofthereviewaretheresult
ofsixyears*ssustained efforttoimprovethequalityandpresentation
ofthearticles andtoincrease circulation .Circulation willhe
boostedinthenexteighteen months,moreover ,particularly asregards
theEnglishedition,giventheeconomic anddemographic significance
oftheEnglish-speaking group.
Otheri^ormation
DuringthepastyeartheCommission 'sDirectorate-General for
Information fundedfromitsoperating budgetanumberofinformation
activities forthenewACPStatesinordertofamiliarize journalists
fromthosecountries (press,radioandTV)withtheCommission
departments responsible forthevariousareasofapplication ofthe
LomSConvention .
Forexample,abouttwentyjournalists ontraining coursesinEurope
orpassingthroughwereinvitedindividually toCommission headquarters
andinthiswaydirectcor.tact wasestablished withtheeditorial
departments ofdailynewspapers andlocalbroadcasting services.
Moreover,thespecialized radioservicesoftheMemberStates(in
particular theBBC*sAfricanService)havebroadcast anumberof
reportsandsurveysonvariousaspectsoftheCommunity *sfinancial
andtechnical aid.TheCommission wasrepresented onspecially
designed standsattheN*DolaandLusakafairsinZambia,andin
Botswana *
Training (advancedtrainingsessions)
Advancedtrainingsessions (traditionally knownasseminars)were
heldin1976,asinpreviousyears.Therewerefifteenseminars
inall*
TheseseminarsbroughttogetherinBrussels 400ACPstudents-plus
students fromotherdeveloping countries –fortwo–tothree-day
programmes covering fundamental aspectsoftheCommunity'sdevelopment
policyandinparticular theLom€Convention .
Anumberofseminarsorganized inconjunction withthebodiesresponsible
formanaging EDFscholarship holdersintheCommunity countries provided
aninsightintohowscholarship holdersinEuropewerefaringintheir
studies.
Thisprogramme willbecontinued andexpandedin1977•

-46-
CHAPTER V
EXECUTION OFAIDPROMEDFRESOURCES
A.Invitations totender
In1976eleveninternational invitations totenderwereissuedin
thecontextoftheimplementation oftheLom£Convention ,involving
anestimated totalofaround134»5million EUA.
Oftheseeleveninvitations totender,nineconcernworksestimated
at126million EUAoverall,whiletheothertworelatetoordersfor
supplies amounting to8.5million EUA.
Thesefigurescoveronlyeightmonthsandarenotableforthescale
oftheworksputouttotender.
Thus,forthenineinvitations totenderinrespectofworks-of
whichfiveconcerncofinancing operations -theEDF'scontribution
perinvitation totenderisonaverageapproximately 14million EUA.
B.Rateofdisbursements (seeTable4)
Attheendof197^,i.e.eightmonthsaftertheentryintoforce
oftheLom£Convention ,disbursements underthefourthEDFamounted
toaround108million EUA.
Overhalfofthisamountconcerned disbursements undertheexport
earningsstabilization system.

-Hf-
BREAKDOWNOFCOMMITMENTS IH197P8YCOUNTRYANDBYSECTOR ('000EUA)
S£DEVELOPMENT OFPRODUCTION
IIDUSTRIALIZATION
S~ltF­_®^RURALPRODUCTIONCCO.NOHIC
IHFRASTRUCTRESOCIALDEVELOPMENTMOTTOJ
EDUCATION AND
TTtAININGWAT.W,URBAM
INFRA.SHOUSJ['ΑΊΟΙ
STABEX
Bahamas
BARead0S
81NII
BOTSWANA
BURUNDI
CA«[R00"
CENTRALfRICANEMPIRE
CONGO
\VORYCOAST
ETHIOPIA
FIJI
GABON
GAHBIA
6HANA
6RENADA
GUINEA
GUINEABISSAU
EQUATORIAL GUINEA
GUYANA
UPPERVOLTA
JARAICA
ΚΕΝΥΑ
ESOTHO
IBERIA
ADAGASCAR
ALAHI
ALl
AUftlTIUS
AURITANlA
ICER
IGERIA
96ADA
RUANDA
WESTERNSAMOA
SENEGAL
SIERRA LEONE
SOULIA
SUDAN
SUAl11AND
TANzANIA
CMAD
TOGO
TONGA
TRiNtoadAIDTOBAGO
lk\RE
lANBIA
ALIACPSTATES,REGIONALPROJECTS174
3709
>19157»
!237AÎ
i?0070S
!210!
1965?
3007130
1«6
36Ct
353
736?
15000
14420
015
nooo
■614
22»
10
JLOCKEDAPPROPRIATIONS
GRANDTOTAL?«1«259,*941;22J243161
1oo^||i
3«6li3250Î6B94122<743*
efunienGRANTS
SPECIALLOANS
RISKCAPITAL
EI6LOANS461379*4344112?
i5!'fff'8-™;;
2OOOÎ14000>»500.10050
1422B43275jl5363
43275>1?653
l
j?700319414IX
i
i
i–i–
31B414826
regionalprojects"categoryon7«2S019
769?019
4.
t
384613019
3546i?000Mis
I
200|5W
heunderstanding thattht<000soori
7SCO
1477497213711240
14774072137650?
||7740{72137
ThiscoaaitaentfortheCIMAOprojecthasbeenenteredprovisionallyinthe"regionalprojects1categoryontheunderstandingthatthisclassificationwill
toreraf?coaa??BenlSauffior?za??OTTornf?nfnc?ng^ByrTsk capitalreferredtoinArticle51oftheEOFFinancial 1Regulation.
yB8xC?S('8)la^ai88SSrSllilles2K8J3l^b$p8c?BTlf^?<i ^CoialsslontotheChlpfAuthorizingOfficeroftheEOFforthefinancingoftechnicalclassification vlllbecoaefinalwhenthecurrent
ancinooftechnicalcooperation,tradeproaotion235
50
7470
1230
14«7
29042
1η
16023
15S0
27490
650
S
1042
1701
B
50
794
30
M
20627
3»
2516
1314
«
2m
1770
27ON
5424
5130
47112
SO
1059
26029
52?
1151
2SO
27ŒO
9957
340
1S524
16
«5*3
35
22?
110
7no
28*
2?224
431564
6W
445126lOOfl
36450?
«506
n2a
41500

-ν*-
TABLE2
LOMECONVENTION
FINANCING SITUATION AT31DECEMBER 1976
(million EUA)
Totalvplume:
(Article42ofthe
Convention )Commitments in1976
Aid.administered
bytheCommissionAidadministered by
theEIBTotal
Amount 1oAmount *Amount 2Amount*
EDFresources
-Grants
ofwhich:microprojects
interest ratesubsidies
exceptional aid
-Specialloans
–Riskcapital
-Stabex3000
2100
[£]
(150)
430
95
37588.5
61.9
12.7
2,8
11.1377«59
286.86
(0.27)
(-)
(47.74)
18.60
72.13100.0
76.0
4.9
19.126.74
5.51
(5.51)
21.2339.2
8.1
31-140403
292.37
18,60
21,23
72,1390.7
65.5
4,2
4,8
16,2
EIBresources
–LoansfromEIBresourcesi22
390il^
11,541.50
41.5060.8
60,8 41,50 9,3
TOTAL 3390 100.0 377,59 100.0 68.24 100,0 445,83 100,0

TABLE3
LomeConvention
BreakdownbysectoroffinancingcommutedIn1976
~~ (millionEUA)
DEVELOPMENT OFPRODUCTIONEC0N0MIC
INFRASTRUCTURE"IFMipmËNTTRADE
PROMOTIONtXLtHI1UNAL
AIDSTABEX OTHER •TOTAL
Amount
INOUSTRI.
ALIZA710ÎAmount
RURAL
ilHCDUCTIOΝAmount*Amount*Amount AnountiAnount*Amount*Amount%
AidadministeredbytheISI.76489.01121
6191.609100.016.094100.01,331100.0 47.740100.072.137100.0 6.502100.0 377.590 85
uommtssl on
1.1.Non-repayable ald
_Programmable grants
(ofwhichmlcroprojects)
-Exceptionalaid41.714
41.71486.311
86.311
(0.270)85.963
85.9639416.694
16.6941-933
1.933
47.7406.502
6.502239.117
239.117
(0.270]
47.74055
1.2.Specialloans 10.050 2.700 65.6*6 6 18.55C4
1.3.Stabex 72.137 72.11716
Aidadministered bytheEIB
2.1.LoansfromEIBresources
;2,interestratesubsidies
3.3.cap'ta'£8.236 J
41.500
5.506
21.22S21
20
3
1068.23^
41.500
5.505
21.22811
9
1
5
OrTotil 120.000Γ89,011100.091.339100,0 I16.694i100.01.933100.047.740100.072.137100.0 6,502100.0445.82s1
!100.0
ofwhlch:
fromEOFresources
(1,2.2,2.3)
fromEIBresources(2.1)209,011
78.500
41.500(46.9;-)
89,011(20.6$
91.809(3.7;-)
16.694(0.4;;)
1.933(10.7$
47.740(16.2$
72.137(1.5$
j6.502(100$
404.33
41.50I
91
9

-NO­
TABLE4
Disbursements in1976fromthe
resources ofthefourthEDF('000EUA)
Country Commitments Disbursements
Bahamas 235
Barbado s 50
Bemn 7470 7408
Botswana 1230
Burundi 14187 2244
Cameroon 15542 7612
CentralAfricanEmpire 1798 589
Congo 16023 7693
IvoryCoast 15250 15000
Ethiopia - 27490 14420
Fiji 650 615
Gabon 35 12
Gambia 1042
Ghana 7018 5176
Grenada 35
Guinea 50
GuineaBissau 794
Equatorial Guinea j 30
Guyana 240
Upoer-Volta 20627 1785
Jamaica 3909
Kenya 516
Lesotho 1314
Liberia 40
Madagascar 2499 1314
Malawi 1770
Mali 27094 1407
Mauritius I 3424
Mauritania 5830 1808
Niger 47112 12798
Nigeria 50
Uganda 1959 1749
Rwanda 26029 415
Western Samoa 522 277
Sénégal 11538 3669
SierraLeone 2280
Somalia 27020 2572
Sudan 9957 1659
Swaziland 340
Tanzania 15524 1887
Chad 18769 1888
Togo 13543 3473
Tonga 35
Trinidad 222
Zaire 28380 7569
Zambia 7750 137
AilACPStates 2618 254
Regional projects 8224 2224
Blockedappropriations6262
404326 107654

-s-*-
TABLE S
TRANSFERS EFFECTED FOR1976UNDERTHEEXPORTEARNINGS
STABILIZATION SYSTEM2
AMOUNT OFTRANSFER
RECIPIENT ACPSTATE PRODUCT INEUA
BENIN1 Groundnuts
Coffee
Cotton
Oilcake464330
1174883
4299556
1191079
BURUNDI 1 Cotton
Rawhidesandskins965602
520053
CAMEROON Woodintherough 3601423
CENTRAL AFRICAN ENPIRE Coffee 353108
CONGO Woodintherough 7361677
IVORYCOAST Woodintherough 15000000
ETHOPIA Coffee
Rawhidesandskins9339683
5080364
FIJI Coconutoil 615140
GHANA Woodintherough 5176408
UPFERVOLTA Groundnut s
Cotton685239
175936
MALI1'3 Cotton 648503
1
NICER Groundnut s
Rawhidesandskins5441294
507747
S0MALIA Freshbanans
Rawhidesandskins1296907
635238
SUDAN Rawhidesandskins 1658579
TANZANIA Cotton1887082
TOGO1 .Coffee 2680324
UGANDA Cotton 1748932
WESTERN SAMOA Cocoa 276978
72786065
Theseareamongtheleastdeveloped ACPStatesandtherefore received
?non-repayable transfers .Intheparticular caseofthissystem,commitments anddisbursements arein,practice oneandthesame. .Thistransferwillnotbeeffecteduntilthebegmiing of1977*

-SJL -
Special loans 1976Table 6
(Lomé Convention )
('000EUA )
Recipient country andproject Amount ofloan Interest
%Duration
(years )Grace period
(years )
Cameroon
Extension oftheport ofDouala
Additional financing fortheDibombari
agro–industrial complex2000
25001
140
2510
10
Congo
Realignment oftheGPCO 3846 1 40 10
Jamaica
Supply ofequipment andtechnical assistance
fortheconstruction ofsmall dams andirrigation
works 2700 1 40 10 '
Establishment ofanagro-industrial complex
atBand a 7550 1 40 10
18596

Table7
SUBSIDIZED LOANSAIH)RISKCAPITAL COmiTT^D SYTHEEIB
(Situationat31December 1976)
A.^REAICDOVJN BYCOUNTRY
Country;LoansfromtheEIB's
ownresources ^
IRiskcapital from
EDFresourcesTotal
IAmount
(million EILo*Amount
[million EUA<r
)/ûAmount
[million EUi!)*
CAIŒROON
GHANA
UPPERVOLTA
KENYA
MAURITIUS
CHAD 1
REGIONAL PROJECTS13.50
10,00
2.00
,j.oo
14.0032.6
24.1
4.8
4.8
33.72.30
4.43
7.50
6,0011-4
21.8
37.1
29.715.80
10.00
4.43
2.00
2.00
7.50
20.0025,6
-16,2
7,2
3-2
3.2
12.1
32.5
TOTAL 41.50 100,0 20.23 100.0 61.73 100.0
BLOCKED APPROPRIATIONS1.00 1.00
GRANDTOTAL41.50 21.2:1 62.73
BREAKDOWN BYSECTOR
CountryLoansfromtheEIB's
ownresources ^Riskcapital irom
Total
EDFresources
Amount
(million EUj$Amount
million EUiS1*Amount
(million EUicf.)/"
GLOBAL LOANS
ENERGY
AGRO-INDUSTRIAL COMPLEXES
ANDPOODINDUSTRIES
MANUFACTURING INDUSTRY2.0
25,5
14.04.8
61.5
33.714.2
6.070.3
29.72.0
25.5
114.2
20.0
Il_3.2
41.3
23,0
32,5
TOTAL 41.5 100,0 20.2 100.0 i61.7 100.0
TheCIKAOproject(ordinaryloanof14.0millionEUAtotheCIMAOcompanyandthreeriskcapitalcontributions of2.0millionEUAeach,accordedtoTogo,GhanaandIvoryCoastrespectively )hasbeenenteredprovisionally inthe"regionalprojects"categorypendingfinalapprovalofthearrangements forimplementing theprovisions oftheLomeConvention
relatingtoregional cooperation .
^Overallcommitment authorization forthefinancing byriskcapitalofspecificstudies
referredtoinArticle51oftheEDPFinancialRegulation^31December1976noallocation
hadbeensigned.
CombinedwithajfointerestratesubsidyfromEDFresources .