TABLE OF CONTENTS

1........... Introduction. 3

2........... Contribution of EIB lending activity per geographical region. 6

2.1........ Pre-Accession Countries. 7

2.2........ Mediterranean Partner Countries. 9

2.3........ Eastern Europe, the Southern Caucasus and Russia. 10

2.4........ Asia and Latin America. 12

2.5........ South Africa. 14

3........... List of loans signed in the regions covered by the Decision in 2011. 15

4........... List of EC-EIB initiatives / partnerships in the regions covered by the external mandate. 22

5........... List of 2011 operations co-financed with other IFIs and the Commission. 27

1. Introduction

This Staff Working Document (SWD) reviews the implementation of the current EIB external mandate at regional and country level as well as the contribution of EIB financing operations to the fulfilment of external policy objectives, taking into account the operational objectives of the EIB.

The following tables summarise the EIB own resources lending activity in the regions covered by the mandate: overall signatures (Table 1), the signatures and available headroom under the mandate (table 2) and the signatures and available headroom under EIB own risk facilities (table 3).

Table 1: Overview of overall EIB lending signatures in the regions covered by the mandate

Table 2: EIB lending signatures under the current mandate

Table 3: EIB lending signatures under EIB own risk facilities

The objective of EIB operations under the mandate is to support relevant external policy objectives of the EU. In particular, the mandate Decision provides for some specific policy goals to be addressed through EIB external operations. The table below presents a summary of the key objectives for EIB financing operations carried out until the entry into force of Decision 1080/2011/EU in November 2011, i.e. those based on Decision 1016/2009/EC.

Table 4. Summary of key objectives for EIB financing operations under the mandate

Key Objectives under the mandate under Decision 1016/2009/EC || Pre-Accession || MED || EAST || ALA || RSA

Energy - Security of Supply || X || X || X || X || X

Protection of the Environment || X || X || X || X || X

Private Sector Development, SMEs || X || X || X || || X

Infrastructure Development, including extension of TENs || X || X || X || || X

Pre-Accession support || X || || || ||

Support of EU presence || || || || X ||

The extent of EIB contribution to EU policy objectives targeted by the mandate is detailed for each region in the sections below. It should be noted that EIB operational objectives derived from EU policy goals are recognised as appropriate measures for the fulfillment of the EU’s external policy objectives.

The support for energy security of the Member States and the protection of the environment are common objectives applicable to all regions based on the previous mandate Decision 1016/2009/EC. The following table provides the EIB signature volumes in 2009-2011 in support of these objectives. The table comprises also data on EIB financing in support of ‘Sustainable Communities’ covering the urban environment and sustainable transport systems (e.g. environmentally friendly public transport).

Table 5. Financing in support of energy security and environment

As regards climate action, 2011 overall EIB signatures amounted to EUR 2.08bn representing 32% of total EIB financing in the regions concerned (EUR 889 mn under the mandate or 29% of total lending under the mandate), which represents a 30% increase compared to the volume reached in 2010, i.e. EUR 1.6bn or 21% of financing in the regions covered by the Decision.

Table 6. Climate Action lending in 2011 in the regions covered by the Decision

EUR million || Mandate || Own risk || Total || Volume as % of total lending

|| N° of Ops || EUR mn || N° of Ops || EUR mn || N° of Ops || EUR mn ||

Pre-accession || 5 || 708 || 7 || 256 || 12 || 964 || 29%

Mediterranean || 2 || 131 || 0 || 0 || 2 || 131 || 13%

Eastern neighbours & Russia || 0 || 0 || 2 || 26 || 2 || 26 || 3%

Asia || 0 || 0 || 2 || 201 || 2 || 201 || 97%

Latin America || 1 || 51 || 4 || 660 || 5 || 711 || 74%

South Africa || 0 || 0 || 1 || 50 || 1 || 50 || 30%

Total: || 8 || 889 || 16 || 1194 || 24 || 2083 || 32%

Volume as % of Total lending || || 29% || || 35% || || 32% ||

Under the Mandate, signatures qualifying as climate action in 2011 were:

· In Pre-accession Countries, 5 projects of which 3 major ones in Turkey – one for afforestation, erosion control and rangeland rehabilitation and two railway rehabilitation and modernization – as well as another railway rehabilitation project in Montenegro and the construction of flood protection facilities in Bosnia and Herzegovina.

· In the Mediterranean, two reverse osmosis projects for sea water desalination in Israel.

· In Latin America, the up-grading of a power grid in Nicaragua.

Under the own risk facilities, climate actions signatures in 2011 were:

· in Pre-accession Countries: 7 projects in Turkey comprising investments in renewable energy and energy efficiency; parts of intermediated loans to SMEs and a large sustainable transport project;

· in Eastern Neighbours & Russia: investment in a regional fund targeting renewable energy investments in S. Caucasus and the modernization of an pulp and paper mill in Russia;

· in Asia: a framework loan in India and a regional fund investment in Central Asia both targeting renewable energy projects;

· in Latin America: framework loans on both a regional basis and one targeting Brazil to support climate action as well as an investment in a regional climate action fund and a hydropower plant in Chile;

· in South Africa: framework loan supporting small and medium scale investments in renewable energy and energy efficiency.

2. Contribution of EIB lending activity per geographical region

It is recalled that tables that follow only cover financing operations under the current 2007-2013 mandate and does not include lending under the previous mandate, which continued until 31 July 2007.

2.1. Pre-Accession Countries

2.1.1 Activity by Country

Table 1: Summary of lending signatures under mandate by Country (number of operations and volume)

Country || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Albania || 1 || 23 || - || - || 1 || 10 || 1 || 50 || 0 || - || 3 || 83

Bosnia and Herzegovina || - || - || 5 || 260 || 4 || 150 || 2 || 60 || 2 || 155 || 13 || 625

FYROM || - || - || 1 || 10 || 1 || 100 || 1 || 50 || 1 || 65 || 4 || 225

Montenegro || - || - || 6 || 50 || 3 || 108 || 2 || 45 || 2 || 18 || 13 || 221

Serbia || 1 || 60 || 3 || 170 || 10 || *888 || 9 || 680 || 3 || 91 || 26 || 1889

Turkey || 1 || 305 || 7 || 1519 || 6 || 1603 || 4 || 650 || 3 || 695 || 21 || 4772

TOTAL || 3 || 388 || 22 || 2009 || 25 || 2859 || 19 || 1535 || 11 || 1024 || 80 || 7815

* Note EUR 6m transferred to tranche B signed in 2011

In 2011, EIB financing volume in the Pre-Accession countries went down to EUR 1bn under the mandate. At the end of 2011, i.e after 69% of the current mandate period, 85% of the EUR 9bn regional sub-ceiling had been signed[1].

It should be noted that lending in Croatia ands most of the lending in the private sector in Pre-Accession countries is done at the Bank's own risk under Pre-Accession Facility. With total signatures of EUR 2.4 bn in 2011, financing under the Pre-Accession Facility represented more than double the volume under the mandate.

The EIB activity in the Western Balkans is closely coordinated within the Western Balkans Investment Framework (WBIF), –an operational framework for blending grants with loans to fund strategic investments – providing a vehicle for coordination and mobilisation of funding and a platform for coordinating policy dialogue between the IFIs involved (EIB, EBRD, CEB, World Bank), the European Commission and bi-lateral donors.

Of the 41 projects approved under WBIF in 2011, EIB took the role of lead IFI on 14 of them. Estimated future investment on these 14 projects totals EUR 1.29 billion, and is estimated to attract grant funding of EUR 53.6m for technical assistance. The projects cover a wide sectoral spectrum: Energy, Transport, Water & Sewerage, Climate Change, Education & Health and a venture capital fund. In addition, EIB signed two contribution agreements with the Commission (under IPA) attracting EUR 13.5 m for investment grants to be blended with EIB loans in the environment sector.

Turkey continues to represent the largest target of the Bank's lending activity in the region. EIB support is shifting from crisis support to sustainable and smart growth, climate change, anergy and SME support. In Turkey, EIB works in close coordination with the Commission, which has provided accompanying IPA Funds, especially in the transport sector (railways) but also in multi-beneficiary programmes.

2.1.2. Activity by Objective

Table 2: Summary of signatures under mandate by region-specific key lending objectives

Objective || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Knowledge economy || - || - || 1 || 70 || 1 || 335 || 4 || 700 || - || - || 6 || 1105

Extension of TENs || 2 || 83 || 3 || 86 || 3 || 707 || 2 || 235 || 3 || 472 || 13 || 1583

Support for SMEs || - || - || 7 || 315 || 15 || 1245 || 6 || 243 || 4 || 76 || 32 || 1885

Environmental Protection & Sustainable Communities || 1 || 305 || 9 || 1504 || 5 || 715 || 5 || 257 || 7 || 872 || 26 || 3653

Sustainable, Competitive and Secure Energy || - || - || 2 || 103 || 3 || 450 || 1 || 40 || - || - || 6 || 593

TOTAL* || 3 || 338 || 22 || 2009 || 25 || 2859 || 19 || 1535 || 11 || 1024 || 80 || 7815

* The above numbers cannot be added as a single operation may contribute to several objectives

In 2011, lending under the mandate focused on Environmental Protection and Sustainable Communities projects which experienced a sharp increase compared to 2010. EIB lending in this sector comprised a EUR 55 mn loan for emergency flood relief and prevention measures in Bosnia-Herzegovina, which benefited from EU WBIF funds for technial assistance. A EUR 150 mn loan supported forestation, erosion control, rangeland rehabilitation and forest fire-fighting activities in Turkey, in line with the country’s ambitious Afforestation and Erosion Control Mobilisation Action Plan. The project constitutes the first operation under the Climate Change Mandate and is co-financed with Agence Française de Développement (AFD) and CEB. Municipal investments include a loan for hospitals in Bosnia-Herzegovina, judiciary buildings in Serbia and railway rehabilitation in Turkey.

The extension and development of corridors connecting to Trans-European transport Networks was supported in the Former Yugoslav Republic of Macedonia (Corridor X road project co-financed with IPA grants), Montenegro (Railway rehabilitation of part of the core strategic network identified by the Commission in the planning of continuation of gtEN-RT routes) and Turkey (Istanbul-Ankara railway, which is part of a TEN high Speed Line and cofinanced with IPA grants)..

Support to SMEs represented EUR 76m or 7% of lending under mandate in 2011, with two credit lines opened in Serbia and one in Montenegro.

2.2. Mediterranean Partner Countries

2.2.1. Activity by Country

Table 3: Summary of lending signatures under mandate by Country

Country || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Egypt || 1 || 130 || 1 || 250 || 2 || 120 || 3 || 906 || 1 || 50 || 8 || 1456

Israel || 1 || 120 || - || - || 1 || 25 || - || - || 2 || 262 || 4 || 407

Jordan || 1 || 50 || 1 || 37 || 1 || 166 || - || - || 1 || 81 || 4 || 334

Lebanon || 2 || 295 || 1 || 52 || 1 || 70 || - || - || 1 || 30 || 5 || 447

Morocco || 2 || 330 || 3 || 270 || 4 || 540 || 2 || 420 || 1 || 200 || 12 || 1760

Syria || 1 || 80 || 1 || 275 || 2 || 155 || 2 || 185 || - || - || 6 || 695

Tunisia || 1 || 200 || 4 || 311 || 3 || 434 || 3 || 498 || 2 || 303 || 13 || 1746

TOTAL || 9 || 105 || 11 || 1195 || 14 || 1510 || 10 || 2009 || 8 || 926 || 52 || 6845

The instability following the Arab Spring challenged the EIB local activity in 2011 which declined by more than 50%. However, the EIB continued to support Mediterranean Partner Countries, in particular those committed to democratic transition, in accord with the EU's new priorities for the changing neighbourhood. The investment decisions in the region were further affected by the decision to suspend the Bank's activities in Syria.

After four and half years from the start of the implementation of the mandate, EIB signatures reached 70% of the regional ceiling, which is in line with the percentage of time elapsed from the start of the mandate (69%).

In 2011, loan signatures totaled EUR 929m in support of 8 projects[2]. 7 additional projects were approved in 2011 but not signed due to the inability of transition governments to commit to signature. In terms of geographical distribution, slightly over half of the total volume was allocated to projects in the Maghreb region (1 project in Morocco and 2 in Tunisia for a total of EUR 503m). In the Mashreq/Northeast 5 projects were signed in Egypt, Istrael, Jordan and Lebanon for a total of EUR 423m.

2.2.2. Activity by Objective

Table 4: Summary of signatures under mandate by region-specific key lending objectives

Objective || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Economic and social infrastructure || 6 || 905 || 10 || 1143 || 11 || 1175 || 10 || 2009 || 7 || 896 || 44 || 6128

Private sector including SMEs and micro-finance || 6 || 745 || 2 || 107 || 5 || 526 || 1 || 346 || 1 || 30 || 12 || 1754

TOTAL* || 9 || 1205 || 12 || 1195 || 16 || 1510 || 11 || 2009 || 8 || 926 || 56 || 6845

* The above numbers cannot be added as a single operation may contribute to several objectives

EIB lending in 2011 focused on supporting the enabling environment for the private sector through strengthening of economic and social infrastructure (7 operations, including a combined cycle gas turbine at Giza North power plant in Egypt cofinanced with the World Bank, the modernisation of the primary road network in Tunisia and a desanilation plant in Israel) while one operation targeted the direct support for the private sector (a credit line for SMEs in Lebanon).

2.3. Eastern Europe, the Southern Caucasus and Russia

2.3.1. Activity by Country

Table 5: Summary of lending signatures under mandate by Country

Country || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Armenia || - || - || - || - || - || - || 1 || 5 || 1 || 15 || 2 || 20

Georgia || - || - || - || - || - || - || 4 || 175 || 1 || 15 || 5 || 190

Rep. of Moldova || - || - || 1 || 20 || - || - || 5 || 185 || 1 || 20 || 7 || 225

Russia || - || - || - || - || 2 || 133 || 1 || 250 || - || - || 3 || 383

Ukraine || - || - || 1 || 150 || 1 || 100 || 1 || 16 || 2 || 625 || 5 || 891

TOTAL || - || 0 || 2 || 170 || 3 || 233 || 11 || 631 || 3 || 675 || 22 || 1708

In 2011, EIB lending in the Eastern Europe, the Southern Caucasus and Russia reached EUR 675m, with a sligfht increase compared to the volume signed in the previous year. Since the start of the implementation of the mandate, EIB signatures reached 44% of the regional ceiling, which is below the percentage of time elapsed from the start of the mandate (69%).

In terms of geographical distribution, the bulk of the lending volume was signed for projects in Eastern Europe (Ukraine and Moldova) while 4% was devoted to Southern Caucasus (Armenia and Georgia). In the latter region EIB activities started recently, the first loans to Armenia and Georgia dating back to 2010. Progress was also made in 2011 to open up a further market with substantial potential for eligible projects in Southern Caucasus with the conclusion of the negotiations of a Framework Agreement with Azerbaijan

No operations were signed in Russia under the mandate. However, the EIB signed the first loan at its own risk in Russia under its Eastern Partners Facility (a credit line for SMEs of EUR 100 mn). In parallel, the Bank continued to explore all avenues to support the Partnership for Modernisation between the EU and Russia, as evidenced by the signature of a Memorandum of Understanding with Vnesheconombank, where each institution undertook to provide up to EUR 500m in a lending cooperation to support the Partnership for Modernisation. It should be noted that in recent years the Commission has been unable to support EIB activity in sectors presenting controversial trade issues.

Disbursements during the year reached EUR 200m, reflecting some delays in project implemetation and compliance with conditions precedent to disbursement, but also reflecting the later acceleration of signatures in the region where operations only began in 2008.

2.3.2. Activity by Objective

Table 6: Summary of signatures by region-specific key lending objectives

Objective || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Transport || - || - || 1 || 20 || - || - || 3 || 85 || 1 || 450 || 5 || 555

Energy || - || - || 1 || 150 || - || - || 3 || 350 || 1 || 175 || 5 || 675

Telecom || - || - || - || - || 1 || 115 || - || - || - || - || 1 || 115

Environ-mental infrastr. || - || - || - || - || 2 || 118 || 3 || 66 || - || - || 5 || 184

SMEs || - || - || - || - || 1 || 100 || 2 || 130 || 1 || 50 || 6 || 280

TOTAL || - || - || 2 || 170 || 3 || 233 || 11 || 631 || 3 || 675 || 22 || 1,708

* The above numbers cannot be added as a single operation may contribute to several objectives

The new tripartite MoU signed in March 2011 between the Commission, the EBRD and the EIB together with the EIF will allow for enhanced strategic and operational cooperation in particular in the areas of climate change mitigation and adaptation, energy security, as well as, on the basis of respective competencies of EIB and EBRD, in the areas of support to the financial sector (notably for SMEs), the corporate and infrastructure sectors.

The objectives involved in the lending activities consisted in Transport (66.7%), Energy (25.9%) and finance to SMEs (7.4%). The largest loan (EUR 450 mn) was cofinanced with the EBRD and concerned the rehabilitation and improvement of approximately 350 km of highways radiating from Kiev in central Ukraine, largely on the extended TEN-T network. The second largest operation (EUR 150 mn) concerned the construction of a power transmission line and auxiliary facilities in Southern Ukraine. Three credit lines for SMEs were opened in Armenia, Georgia and Moldova.

2.4. Asia and Latin America

2.4.1. Activity by Country

Table 7: Summary of lending signatures under mandate by Country*

Country || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

China || - || - || - || - || 1 || 59 || - || - || - || - || 1 || 59

India || - || - || 1 || 150 || 1 || 100 || - || - || - || - || 2 || 250

Pakistan || - || - || - || - || 1 || 100 || - || - || - || - || 1 || 100

Tajikistan || || || || || || || || || 1 || 7 || 1 || 7

Vietnam || - || - || - || - || 2 || 147 || 2 || 223 || - || - || 4 || 370

Asia sub-total || - || - || 1 || 150 || 5 || 406 || 2 || 223 || 1 || 7 || 9 || 786

Argentina || 1 || - || - || - || 1 || 170 || - || - || 1 || 76 || 5 || 246

Brazil || 1 || 250 || 1 || 200 || - || - || 3 || 420 || 1 || 100 || 6 || 970

Columbia || - || - || - || - || 1 || 100 || - || - || - || - || 1 || 100

Mexico || - || - || 1 || 50 || - || - || - || - || 1 || 73 || 2 || 123

Nicaragua || - || - || - || - || 1 || 15 || - || - || 1 || 54 || 2 || 69

Panama || 1 || 27 || - || - || 1 || 397 || - || - || - || - || 2 || 424

Paraguay || - || - || 1 || 69 || - || - || - || - || - || - || 1 || 69

Uruguay || 1 || 28 || - || - || - || - || - || - || - || - || 1 || 28

Latin America sub-total || 3 || 305 || 3 || 319 || 4 || 682 || 6 || 420 || 4 || 303 || 20 || 2029

TOTAL || 3 || 305 || 4 || 469 || 9 || 1147 || 5 || 643 || 5 || 310 || 29 || 2815

*Of the operation signed in China in 2009, 50% (EUR 59m) was transferred in 2010 to EIB own-risk Facility for Energy Sustainability and Security of Supply.

In 2011, EIB lending in the Asia and Latin America amounted to EUR 310 million. It is worth noting that the first loan was signed in Central Asia (EUR 7 mn in Tajikistan). While this represented a declibne compared to 2010 activity, since the start of the implementation of the mandate, EIB signatures reached 71% of the overall Asia and Latin America ceiling, which is in line with the percentage of time elapsed from the start of the mandate (69%).

2.4.2. Activity by Objective

Table 8: Summary of signatures by region-specific key lending objectives

Objective || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

EU presence || 2 || 278 || 4 || 469 || 8 || 1029 || 5 || 643 || 3 || 249 || 22 || 2688

Environmental sustainability (incl.climate change) || 1 || 27 || 2 || 200 || 5 || 730 || 4 || 553 || 2 || 61 || 14 || 1571

TOTAL* || 3 || 305 || 4 || 469 || 9 || 1147 || 5 || 643 || 5 || 310 || 29 || 2815

* The above numbers cannot be added as a single operation may contribute to several objectives

In 2011, three projects supported EU FDI in Latina America: an automotive project in Argentina cofinanced with KfW, a tissue paper project in Mexico cofinanced with the Swedish Export Credit Corporation and a mobile broadband project in Brazil cofinanced with the Brazilian Development Bank, BNDES.

The first project signed in Tajikistan concerned the rehabilitation of low and medium-voltage distribution networks in Sugd region, northern Tajikistan. It aims at reducing distribution losses and promoting economically sustainable development of the energy sector as well as reducing Tajikistan’s dependence on imports of electricity from neighbouring countries. The project is co-financed with EBRD and benefits from grant financing from the Investment Facility for Central Asia (EUR 7mn).

An EUR 54 mn operation was signed in Nicaragua supporting the extension and upgrading of a power grid to facilitate renewable energy transmission, part of a programme launched by the Nicaraguan Government. The project constitutes an example of EIB cooperation with other IFIs and development institutions (IADB, CABEI, AECID) and KEXIM. It also constitutes the first EIB operation submitted to the Latin American Investment Facility (LAIF), which approved a grant of up to EUR 7m for the project. It also represents EIB’s efforts to diversify geographically its operations in ALA in favour of less prosperous countries.

Beyond the mandate, climate action in ALA countries received EIB support with additional loans totaling EUR 861m provided under EIB own risk Energy Sustainability Facility.

2.5. South Africa

2.5.1. Signatures by Objective

Table 9: Summary of signatures by region-specific key lending objectives

Objective || 2007 || 2008 || 2009 || 2010 || 2011 || Cumulative Total

Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm || Ops || EURm

Economic and social infrastruct. || - || 0 || 1 || 150 || 3 || 220 || 1 || 50 || 2 || 115 || 7 || 535

Private sector incl.SMEs || - || 0 || 3 || 203 || 2 || 100 || 1 || 50 || - || - || 6 || 353

TOTAL* || - || 0 || 3 || 203 || 4 || 280 || 1 || 50 || 2 || 115 || 13 || 648

* The above numbers cannot be added as a single operation may contribute to several objectives

In 2011, EIB financing in the Republic of South Africa focussed on infrastructure projects of public interest by financing two wa ter projects: one project concerned the upgrading of water supply networks and water treatment facilities in the city of Durban and neighbouring rural areas that serve in total more than 5 million people; the other project involved the construction of a dam on river Mooi and a pipeline to the Mgeni water system. The project will provide an additional 60 million m3 water per year to supply three municipalities, including Ethekwini (Durban) in the KwaZulu-Natal province, addressing the increasing water demands in major agglomerations as a result of economic development and population increases. It will also allow additional rural communities to be reached, thus contributing to the achievement of the water Millennium Development Goals in South Africa. The project was developed under the Mutual Reliance Initiative with the co-financing of AfD and KfW, with EIB as lead institution.

By the end of 2011, EUR 648m representing 69% of the revised mandate sub-ceiling for South Africa had been signed (with cancellations netted out, the commitment level is 63%), which is in line with the time elapsed since the start of the implementation of the mandate (69%).

In 2011, the EIB also signed a first loan in South Africa at the EIB own risk under the Energy Sustainability Facility (EUR 50mn), to finance small and medium-scale renewable energy and energy efficiency projects.

3. List of loans signed in the regions covered by the Decision in 2011

Loans signed in the Pre-Accession countries under the mandate

|| Country || Project Description || Loan Amount (EUR m) || Political Risk Guarantee[3]

|| Bosnia and Herzegovina || Reconstruction of Banja Luka clinical centre and construction of hospital in Bijeljina || 100 || No

|| Bosnia and Herzegovina || Emergency reconstruction of flood protection facilities along Sava river and tributaries || 55 || No

|| FYROM || Construction of motorway section between Demir Kapija and Smokvica in south of Former Yugoslav Republic of Macedonia (FYROM) in Corridor X (TEN) || 65 || No

|| Montenegro || Financing of small and medium-scale projects carried out by SMEs || 11 || No

|| Montenegro || Rehabilitation of railway infrastructure on main line crossing Montenegro and acquisition of rolling stock || 7 || No

|| Serbia || Financing of small and medium-scale projects carried out by SMEs and midcaps || 50 || No

|| Serbia || Lease financing of small and medium-scale infrastructure projects || 26 || Yes

|| Serbia || Refurbishment, rebuilding and new construction of judiciary facilities throughout country || 15 || No

|| Turkey || Afforestation, erosion control, rangeland rehabilitation and forest fire-fighting activities || 150 || No

|| Turkey || Construction of electrified high-speed line between Ankara and Istanbul || 400 || No

|| Turkey || Rehabilitation of Irmak-Karabük-Zonguldak rail line and installation of signalling system || 145 || No

|| || || 1,024 ||

Loans signed under the Pre-Accession Facility

|| Country || Project Description || Loan Amount (EUR m)

|| Albania || Financing of small and medium-scale projects carried out by SMEs || 10

|| Bosnia and Herzegovina || Financing of small and medium-scale projects carried out by SMEs || 15

|| Croatia || Financing of community infrastructure in coastal areas || 25

|| Croatia || Financing of small and medium-scale projects carried out by SMEs || 50

|| Croatia || Financing of small and medium-scale projects mainly carried out by SMEs and mid-caps || 50

|| Croatia || Financing of small and medium-scale projects || 20

|| Croatia || Upgrading schemes in fields of transport, urban renewal, energy, health, education and environmental protection in thirteen mainland provinces of Croatia || 25

|| Croatia || Construction of 13 km motorway section in Corridor Vc linking Croatia and Bosnia-Herzegovina || 60

|| Croatia || Investment in small-scale water and sanitation projects throughout Croatia (2009-2014) || 75

|| FYROM || Financing of projects carried out by SMEs || 50

|| FYROM || Financing of small and medium-scale projects carried out by SMEs || 10

|| Serbia || Financing of small and medium-scale projects carried out by SMEs || 20

|| Serbia || Financing of small and medium-scale projects carried out by SMEs and midcaps || 100

|| Serbia || Refurbishment and expansion of car plant in Kragujevac || 500

|| Turkey || Framework loan for financing eligible renewable energy and energy efficiency projects || 150

|| Turkey || Construction of gas-fired combined-cycle power plant in Samsun province (eastern Turkey) || 100

|| Turkey || Subscription to private equity fund targeting renewable energy projects || 20

|| Turkey || Framework loan for cofinancing small and medium-scale renewable energy and energy efficiency projects || 75

|| Turkey || Construction of gas-fired combined-cycle power plant in Samsun province (eastern Turkey) || 200

|| Turkey || Financing of projects carried out by SMEs || 150

|| Turkey || Financing of small and medium-scale projects carried out by SMEs || 50

|| Turkey || Financing of small and medium-scale projects carried out by SMEs, primarily in manufacturing and services sectors || 25

|| Turkey || Financing of small and medium-scale projects carried out by SMEs || 174

|| Turkey || Financing of small and medium-scale projects carried out by SMEs and midcaps || 75

|| Turkey || Financing of projects carried out by SMEs || 75

|| Turkey || Financing of small and medium-scale projects mainly carried out by SMEs || 75

|| Turkey || RDI involving automotive metal applications in Czech Republic, Romania, Slovakia, Hungary and Turkey || 19

|| Turkey || Equity investment in fund financing sustainable infrastructure || 10

|| Turkey || Upgrading and expansion of mobile telecommunications networks in Romania and Turkey through rollout of reinforced mobile broadband services || 150

|| || || 2,358

Loans signed in the Mediterranean countries under the mandate

|| Country || Project Description || Loan Amount (EUR m) || Political Risk Guarantee

|| Egypt || Installation of combined cycle gas turbine at Giza North power plant north-west of Cairo || 50 || No

|| Israel || Construction of reverse osmosis seawater desalination plant in Ashdod (south of Tel Aviv) || 120 || Yes

|| Israel || Construction of reverse-osmosis sea water desalination plant in Sorek, south of Tel Aviv, Israel || 142 || Yes

|| Jordan || Construction of phosphoric acid production complex in Eshidiya || 81 || Yes

|| Lebanon || Financing of small and medium-scale projects carried out by SMEs || 30 || Yes

|| Morocco || Construction of two sulphuric acid production plants in Safi and two low-grade phosphate processing plants in Mea and Halassa near Khouribga || 200 || No

|| Tunisia || Construction of sulphuric and phosphoric acid production complex to increase output of triple superphosphate fertiliser plant in Mdhilla || 140 || No

|| Tunisia || Modernisation of country's primary road network || 163 || No

|| || || 926 ||

Loans signed under the Mediterranean Partnership Facility II ||

|| Country || Project Description || Loan Amount (EUR m) ||

|| Regional - Mediterranean || Equity investment in fund financing sustainable infrastructure || 39 ||

|| || || 39 ||

Loans signed in Eastern Europe, Southern Caucasus and Russia under the mandate

|| Country || Project Description || Loan Amount (EUR m) || Political Risk Guarantee

|| Armenia || Financing of small and medium-scale projects carried out by SMEs || 15 || Yes

|| Georgia || Financing of small and medium-scale projects carried out by SMEs || 15 || Yes

|| Moldova, Republic of || Financing of small and medium-scale projects carried out by SMEs || 20 || Yes

|| Ukraine || Construction of power transmission line and auxiliary facilities in southern Ukraine || 175 || No

|| Ukraine || Rehabilitation and upgrading of radial trunk roads leading to Kiev || 450 || No

|| || || 675 ||

Loans signed in Eastern Europe, Southern Caucasus and Russia at the EIB own risk

|| Country || Project Description || Loan Amount (EUR m) ||

|| Regional – Southern Caucasus || Subscription to private equity fund targeting renewable energy projects || 1 ||

|| Russian Federation || Modernisation and expansion of integrated pulp and paper mill in Syktyvkar || 100 ||

|| || || 101 ||

Loans signed in Asia and Latin America under the mandate

|| Country || Project Description || Loan Amount (EUR m) || Political Risk Guarantee

|| Argentina || Refurbishment, modernisation and expansion of gearbox manufacturing plant in Cordoba || 76 || Yes

|| Brazil || Extension of geographical coverage and increase of capacity of TIM Celular's GSM and UMTS mobile broadband networks || 100 || Yes

|| Mexico || Construction of tissue factory using recycled paper in Tepeapulco (Hidalgo) || 73 || Yes

|| Nicaragua || Extension and upgrading of power grid || 54 || No

|| Tajikistan || Rehabilitation of low and medium-voltage distribution networks in Sugd region, northern Tajikistan || 7 || No

|| || || 310 ||

Loans signed in Asia and Latin America under the Facility for Energy Sustainability and Security of Supply at EIB own risk ||

|| Country || Project Description || Loan Amount (EUR m) ||

|| Brazil || Framework loan for financing projects that generate significant environmental benefits helping to combat climate change in Brazil || 500 ||

|| Chile || Construction of hydropower plant in Laja, 450 km south of Santiago de Chile || 55 ||

|| India || Framework loan supporting renewable energy projects contributing to climate change mitigation || 200 ||

|| Regional - Central America || Framework loan for projects contributing to climate change mitigation || 100 ||

|| Regional - Latin America || Participation in investment fund targeting biodiversity projects in Latin America || 4 ||

|| Regional – Central Asia || Subscription to private equity fund targeting renewable energy projects || 1 ||

|| || || 861

Loans signed in Souyth Africaa under the mandate

|| Country || Project Description || Loan Amount (EUR m) || Political Risk Guarantee

|| South Africa || Upgrading of water supply networks and water treatment facilities in city of Durban and neighbouring rural areas || 35 || No

|| South Africa || Construction of dam on river Mooi and pipeline to Mgeni water system, KwaZulu-Natal province || 80 || No

|| || || 115 ||

Loans signed in South Africa under the Facility for Energy Sustainability and Security of Supply at EIB own risk ||

|| Country || Project Description || Loan Amount (EUR m) ||

|| South Africa || Financing of small and medium-scale renewable energy and energy efficiency projects || 50 ||

|| || || 50

4. List of EC-EIB initiatives / partnerships in the regions covered by the external mandate

Cooperation between the EIB and the Commission is daily and pervasive throughout much of the EIB activities. Part of this cooperation takes place within the various regional blending mechanisms, i.e. the Western Balkans Investment Framework (WBIF), the Neighbourhood Investment Facility (NIF), the EU-Africa Infrastructure Facility and the Investment Facility for Central Asia (IFCA), involving also other IFIs and European Bilateral Financing Institutions.

Beyond the strong cooperation under the above facilities, as referred to in the main report, a close policy dialogue takes place between the Commission, the EEAS and the EIB. This dialogue is particularly emphasized whenever stressed political and economic circumstances call for a coordinated approach between the two institutions.

This was for example the case for Mediterranean countries under the most challenging circumstances of the Arab Spring uprisings and demands for the rule of democracy. A very constructive and effective dialogue took also place in relation to matters arising in specific countries, which led to a coordinated reaction to events in Syria. The Commission, the EEAS and the EIB also pursued discussion with a view to identifying how the EIB could better support the Strategic Partnership between the EU and Russia and the Partnership for Modernisation, also in light of the recent Russia’s accession to the WTO, which would help to address some of the issues that had prevented the Commission from supporting EIB financing in Russia in certain sectors. To lay the basis for such cooperation over the medium term, the EIB signed an MoU with Russia’s development bank VEB in June 2011, in the context of the Summit between the EU and Russia.

The rest of this section provides an overview of the main initiatives, partnerships and instruments complementing the EIB external mandate and own risk facilities within which the Commission and the EIB cooperated in 2011, with the aim to maximise synergies and to provide coherent support for the regions outside the EU. At the end of the section, a summary table provides a breakdown of the EU budgetary funds provided to date to complement EIB financing in the regions covered by the Decision. Section 5 provides the list of projects signed by the EIB and co-financed with other IFIs or with the Commission

Pre-Accession Countries

– Established in December 2009, the Western Balkans Investment Framework (WBIF) pools and coordinates different sources of finance and leverages grants with loans for projects that have priority for the Western Balkan beneficiaries, in infrastructure sectors, and other relevant socio-economic sectors including SMEs and energy efficiency. By the end of 2011, WBIF has supported 111 projects representing a total investment cost in excess of EUR10 billion. The total grant contribution awarded under the Joint Grant Facility amounts to EUR 220m and the indication of IFI loan resources leveraged is EUR 5.5 billion. The facility pools resources from the Commission with those of European multilateral financial institutions: (CEB, EBRD, EIB) and bilateral development finance institutions (Czech Export Bank, Hungarian Development Bank, KfW, Slovenia SID Bank and the Austrian Development Bank) as well as donors (AT, CZ, DK, FIN, GER, GR, HU, IRL, IT, LUX, NL NOR, PL, SK, SL, SP, SSW, UK). The World Bank recently joined as an associated IFI. Governed by a Steering Committee and a Project Financiers’ Group, the WBIF is available to the Western Balkans countries of Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo[4]. Only the beneficiary countries can present projects to the WBIF’s, in application of IPA’s ownership principle.

– The Energy Efficiency Finance Facility (EEFF) was launched in 2006 to tackle the Climate Change issue. It aims at stimulating the energy efficiency investments in all types of building and in the industry sector by making appropriate financing available. The EEFF combines IFI credit lines extended to financial intermediaries with incentives to improve the cost effectiveness of equipment and make the energy investment more attractive, and fees to the benefit of local financial intermediaries to encourage them to lend for the purpose of energy efficiency financing. At the end of 2011, the total grant contribution made available by the EC amounted to EUR 19.5m and the EIB lending commitment is at least 78m.

– Since 2001, the Commission and the EIB are co-operating under the SME Finance Facility (SMEFF), merging the grant support with the EIB lending to help developing the SME lending capacities of Participating Financial Institutions in the eligible countries. At end 2011, the EIB’s total grant available for the SME FF under the PHARE[5] Program was EUR 69m, and the EIB has committed to provide debt financing of at least EUR 690m.

– Since 2003, the Municipal Finance Facility (MFF) aims to encourage local financial intermediaries to extend loans to municipalities. The mechanism of the programme is similar to the SMEFF. The total grant contribution made available by the EC has reached EUR 55.8m and the EIB lending commitment is at least EUR 279m.

It is worth noting that, beyond the cooperation in the above facilities, there are other examples of co-financing of projects between EIB loans and EU budget grants particularly in the Pre-Accession region. For example, in Turkey, in 2011 the EIB part-financed the ISTANBUL-ANKARA RAILWAY B project with EUR 400m signed during the year, and complementing the initial EIB contribution to the project of EUR 850m signed over 2006-2009. The project is a Trans-European Network (TENs) High Speed Line (“HSL”) which also attracted Commission support under the IPA Transport Programme (EUR 120m).

Neighbourhood Region

– The Commission and the EIB cooperate in the framework of the Neighbourhood Investment Facility (NIF), which mobilises additional funding for infrastructure projects and SMEs in the area of the European Neighbourhood Policy by providing grant support for lending operations of the EIB and other EU public financial institutions. The EIB is the largest financier in terms of volumes lent for NIF projects: it has co-financed more than 2/3 of the projects (35 out of 52) approved by the NIF Board since the inception of the Facility until the end of 2011. The EIB also manages the NIF Trust Fund (signed on 5 November 2008) to pool contributions from the Commission, the Member States and other donors.

Mediterranean countries

– The Commission and the EIB closely cooperate in the framework of the priorities established under the Union for the Mediterranean (UfM). Synergies with the Commission are especially developed in areas related to UfM horizontal activities such as Horizon 2020, the Maritime and Land Highways and the Mediterranean Solar Plan. Cooperation mainly consists of joint policy setting, the exchange of information and periodical meetings held on a sectoral basis both at operational and senior management levels. Two EIB employees have been seconded to the UfM Secretariat based in Barcelona.

– The Commission is also represented in the FEMIP Committee, which in addition involves representatives of the Member States and the UfM countries. The Committee meets up to three times a year to discuss FEMIP’s strategy and operational guidelines

– The EIB manages in the context of FEMIP and on behalf of the EU, a budgetary envelope of EUR 32 million per year under the inter-regional ENPI programme for risk capital investments and technical assistance.

– The FEMIP Trust Fund (FTF), with a replenished financial envelope of EUR 38m funded by contributions of 17 Member States and the Commission, provides resources to upstream technical assistance and studies, targeted equity operations designed to support innovative private sector companies and concrete initiatives for Mediterranean partner countries committed to the transition to democracy. Since its creation in 2004, the FEMIP Trust Fund has given solid added value to the Bank’s activities in the region. It has been operating as a think tank by financing research in new areas likely to help to develop the private sector in the region. In total, between 2005 and 2011, the FTF financed 49 operations with a total value of EUR 28.3m. In 2011, four new TA contracts amounting to EUR 1.2m were signed.

Eastern Neighbourhood, Russia,

– The Commission and the EIB closely cooperate in the framework of flagship initiatives established under the EU Eastern Partnership.

– In December 2010, the EIB launched a new technical assistance facility, the Eastern Partnership Technical Assistance Trust Fund (EPTATF) complementary to the NIF, which aims at filling critical gaps for investment projects and building capacity, contributing to faster, more successful project implementation in Eastern Partnership countries. To date, Austria, France, Latvia, Poland and Sweden contributed a total of EUR 8.2 m to EPTATF.

Central Asia

– The Investment Facility for Central Asia (IFCA) was created in 2010. Its overarching objective is to mobilise additional investments to support the common goal of achieving an area of stability and prosperity and good relations involving the EU and Central Asia, in particular for operations in the field of energy and environment. Initial investment targets are key infrastructures with priority focus on energy, environment, SMEs and social infrastructure. EIB, ERBD & the Nordic Development Bank are eligible together with AfD, KfW, SIMEST & SOFID. IFCA’s budget for 2011-2012 was set at EUR 45m. To date, one project involving EIB co-financing has been approved to benefit from an IFCA grant (EUR 7m in Tajikistan). In addition, EIB has signed a contribution agreement with the Commission for blending IFCA funds (EUR 2.5m) with EIB loans in support of sustainable energy projects in Kazakhstan.

Latin America

– The Latin America Investment Facility (LAIF) encourages beneficiary governments and public institutions to carry out essential investment in Latin America which could not be otherwise financed either by the market or by the development financial institutions alone. The facility, managed by the Commission, was officially launched in May 2010 and has foreseen an amount of EUR 125m for the period 2009-2013. LAIF is a financing mechanism aiming at mixing grants (non refundable financial contributions from the European Commission and other donors) with loans of multilateral or bilateral public European Development Finance Institutions and Regional Latin American Banks. One EIB project benefitted from a grant under the Facility in 2011.

South Africa

– Under the EU budget funded Risk Capital Facility (RCF) the Commission and the EIB collaborated successfully with the government and a local DFI (Industrial Development Corporation) to pursue a clear development focus through support to SMEs, job creation and social transformation. After ten years of cooperation, EIB’s involvement in RCF ended in 2011. After having invested EUR 37m under a first envelope (RCF1) the Facility is now in its second EUR 50m envelope (RCF2); both are revolving funds. To date, RCF1 and RCF2 have funded over 120 SMEs, as well as investment funds which in turn invested into SMEs. Overall, over 8,000 new direct jobs have been or are expected to be created as of today. RCF made investments in a wide range of sectors and across all South African provinces.

Global

– The Global Energy Efficiency and Renewable Energy Fund (GEEREF) is an innovative fund of funds sponsored by the Commission, Germany and Norway, and advised by the EIB and EIF, to provide clean energy to emerging countries and economies in transition.

Table 10: Signatures/Commitments of EU budget resources under EIB management and/or contributing to EIB financed projects in the regions covered by the external mandate

5. List of 2011 operations co-financed with other IFIs and the Commission

Mandate/ Facility || Country || Name || Project cost (EURm) || EIB loan signed in 2011 (EURm) || Multilat. Financing Inst. || European Bilateral Inst. || EU budget contribut.

Climate Change Mandate. || Turkey || AFFORESTATION AND EROSION CONTROL || 378.00 || 150.00 || || X ||

Pre-Acc. Mandate || Bosnia and Herzegovina || RS HOSPITALS || 286.30 || 100.00 || || X || X

Pre-Acc. Mandate || Bosnia and Herzegovina || EMERGENCY FLOOD RELIEF AND PREVENTION || 98.40 || 55.00 || || || X

Pre-Acc. Mandate || FYROM || CORRIDOR X ROAD PROJECT || 300.00 || 65.00 || X || || X

Pre-Acc. Mandate || Montenegro || MONTENEGRO RAILWAYS II || 68.07 || 7.00 || X || X || X

Pre-Acc. Mandate || Serbia || UPGRADING OF JUDICIARY BUILDINGS || 91.44 || 15.00 || || || X

Pre-Acc. Mandate || Turkey || IRMAK-ZONGULDAK RAILWAY REHABILITATION || 370.09 || .145.00 || || || X

Pre-Acc. Mandate || Turkey || ISTANBUL-ANKARA RAILWAY TRANCHE B || 3648.17 || 400.00 || || X || X

Pre-Acc. Facility || Turkey || CRESCENT CLEAN ENERGY FUND TURKEY || 200.00 || 20.00 || X || ||

Energy Sustainabil. Facility || Regional – S. Caucasus || CRESCENT CLEAN ENERGY FUND TURKEY || 200.00 || 1.25 || X || ||

Energy Sustainabil. Facility || Regional – Central Asia || CRESCENT CLEAN ENERGY FUND TURKEY || 200.00 || 1.25 || X || ||

Pre-Acc. Facility || Turkey || DENIZBANK CLIMATE CHANGE FACILITYX || 150.00 || 75.00 || X || ||

Pre-Acc. Facility || Turkey || GREATER ANATOLIA SME LOAN EXTENSION || 400.00 || 50.00 || || || X

Pre-Acc. Facility || Turkey || VAKIFBANK CLIMATE CHANGE FACILITY || 150.00 || 75.00 || X || ||

Pre-Acc. Facility || Turkey || SEKERBANK LOAN FOR SME || 100.00 || 48.85 || X || X ||

Pre-Acc. Facility || Croatia || PRIVREDNA BANKA GL II || 120.00 || 20.00 || || || X

Pre-Acc. Facility || Croatia || MUNICIPAL WATER FINANCING FACILITY || 150.00 || 75.00 || X || ||

Pre-Acc. Facility || Croatia || CORRIDOR VC || 150.40 || 60.00 || X || ||

Pre-Acc. Facility || Croatia || RC LOAN FOR SMEs PRIORITY LENDING || 100.00 || 50.00 || || || X

Pre-Acc. Facility || Croatia || ESB LOAN FROM SMES & MID-CAP II || 200.00 || 50.00 || || || X

Pre-Acc. Facility || Turkey || INFRAMED B || 385.00 || 10.00 || || X ||

Med. Partnership Facility II || Regional - Mediterranean || INFRAMED B || 385.00 || 39.02 || || X ||

ALA Mandate || Tadjikistan || TAJIK POWER REHABILITATION || 21.00 || 7.00 || X || || X

ALA Mandate || Nicaragua || PNESER RENEWABLE ENERGY TRANSMISSION || 113.32 || 54.01 || X || || X

ALA Mandate || Argentina || VW SUPPLY CHAIN LATAM || 152.78 || 76.39 || || X ||

Energy Sustainabil. Facility || Regional – Latin America || ECOENTERPTISES FUND II || 29.48 || 4.47 || || X ||

Energy Sustainabil. Facility || Regional – Central America || CENTRAL AMERICA CLIMATE CHANGE FL || 300.00 || 100.00 || X || ||

ENP MED. Mandate || Jordan || JORDAN INDIA FERTILIZER || 453.00 || 81.00 || X || ||

ENP MED. Mandate || Egypt || GIZA NORTH POWER PLANT II || 483.80 || 50.00 || X || ||

FEMIP Risk Capital/TA || Regional – North Africa || CAPITAL NORTH AFRICA VENTURE FUND II || 100.00 || 10.00 || || X || X

ENP EAST Mandate || Ukraine || EUROPEAN ROADS UKRAINE II || 1010.20 || 450.00 || X || ||

ENP EAST Mandate || Ukraine || 750KV ZAPORIZHZHIA – KAKHOVSKA LINE || 397.00 || 175.00 || X || ||

Eastern Partners Facility || Ukraine || MONDI SYKTYVRAK MILL MODERNISATION || 462.80 || 100.00 || X || ||

RSA Mandate || South Africa || MOOI-MGENI TRANSFER SCHEME PHASE 2 || 225.00 || 80.00 || || X ||

[1] It should be noted that one operation in Turkey of EUR 150 mn was not included as it must be counted under the climate change mandate ceiling.

[2] The FEMIP Annual Report available via http://www.eib.org/infocentre/publications provides a full picture of EIB activities in support of Mediterranean Parner Countries, including lending under EIB own risk facilities, risk capital, technical assistance and studies.

[3] The Political Risk Guarantee column highlights the operations where, in contrast to sovereign or sub-sovereign operations covered by the Comprehensive Guarantee, the Community assumes defined political risks while the EIB assumes all other risks.

[4] under United Nations Security Council Resolution 1244 (1999).

[5] Poland and Hungary Aid for the Reconstruction of the Economy (“PHARE”).