No C 81/6 Official Journal of the European Communities 26. 3. 91 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on the 'EC-International Investment Partners' 
financial faculty for countries of Asia, Latin America and the Mediterranean region 
(91/C 81/07) 
COM(90) 575 final 
(Submitted by the Commission on 5 December 1990) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community and in particular Article 235 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas the Community is fostering financial, technical 
and economic cooperation with the countries of Asia and 
Latin America and with the Mediterranean region; 
Whereas the Council has adopted guidelines on new 
forms of cooperation to benefit the Mediterranean 
region, on the one hand, and Asia and Latin America, on 
the other; 
Whereas in order to bolster such cooperation, it is 
necessary inter alia to encourage mutually beneficial 
investments; 
Whereas the Council has reached a consensus on the 
importance of the rdle of the private sector in the devel­
opment process; 
Whereas certain benefits can be derived from 
cooperation between Community firms and enterprises in 
the developing countries given that it is an excellent 
vehicle for the transfer of know-how and a catalyst for 
the provision of further aid; Whereas in the context of international cooperation with / 
the developing countries new forms of investment 
promotion have recently taken their place alongside the 
tried and tested ones, above all the financing of joint 
ventures which entails a host of mutually beneficial 
advantages, not least the knock-on effect that the 
creation of joint ventures has on the developing 
countries' industrial sector; 
Whereas a three-year pilot scheme was launched in 1988 
to promote, via a financial scheme known as the 
EC-International Investment Partners (EC-IIP), the 
creation of joint ventures between the Community and 
the countries of Latin America, Asia and the Mediter­
ranean; 
Whereas the results attained thus far bear witness to the 
considerable potential of this financial instrument in 
achieving the aforementioned objective; 
Whereas the continuation and extension of EC-IIP for a 
further five-year trial period from 1 January 1992 is 
therefore necessary to meet the new needs of the 
countries of Latin America, Asia and the Mediterranean; 
Whereas the objectives and operating criteria of that 
facility need to be defined; 
Whereas the Treaty makes no provision for the necessary 
specific powers, other than those stipulated in Article 
235, 
26. 3. 91 Official Journal of the European Communities No C 81/7 
HAS ADOPTED THIS REGULATION: 
Article 1 
For a five-year trial period starting on 1 January 1992, 
and as part of its economic cooperation with the 
countries of Latin America, Asia and the Mediterranean, 
the Community shall operate special cooperation 
schemes aimed at promoting investment by economic 
operators in the Community, particularly in the shape of 
joint ventures with local operators in the countries 
eligible. 
Article 2 
The EC-International Investment Partners scheme, here­
inafter referred to as EC-IIP, shall offer four kinds of 
financing facilities covering the various phases of the 
investment process: 
1. grants for the identification of projects and partners, 
not exceeding 50 % of the cost of the operation up to 
a ceiling of ECU 100 000; 
2. interest-free advances for feasibility studies and other 
operations prior to any decision to invest, not 
exceeding 50 °/o of the cost up to a ceiling of ECU 
250 000; 
3. capital requirements of a joint venture or local 
company with a licensing agreement, through partici­
pation in the provision of equity, not exceeding 20 % 
of the joint venture's capital up to a ceiling of ECU 
1 million; 
4. interest-free advances, not exceeding 50 % of the cost 
up to a ceiling of ECU 250 000, for training, technical 
assistance or management expertise of an existing 
joint venture, or joint venture about to be set up, or a 
local company with licensing agreements. 
The aggregate amount made available under facilities 2, 
3 and 4 may not exceed ECU 1 million per project. 
Article 3 
1. With regard to facility 1 set out in Article 2, 
financing applications may be submitted either direct to 
the Commission by the institution, association or body carrying out the identification of partners or projects, or 
via a financial intermediary. 
On the other hand, in the case of facilities 2, 3 and 4 set 
out in Article 2, Community funds shall be provided 
exclusively through the financial institutions defined in 
Article 4 below; this shall apply to institutions within the 
Community and to those from an eligible 
non-Community country that have signed a framework 
agreement with the Community. 
2. With regard to facility 3 set out in Article 2, the 
financial institutions must provide an amount at least 
equal to that provided by the Community. 
Article 4 
The financial institutions shall be selected by the 
Commission from among development banks, 
commercial banks, merchant banks and investment 
promotion bodies. 
Article 5 
Four types of criteria shall be applied by the Commission 
in selecting the projects: 
1. the anticipated soundness of the investment and the 
quality of the promoters; 
2. the contribution to development in terms of: 
— creation of added value, 
— creation of local jobs, 
— promotion of local entrepreneurs, 
— transfer of technology, 
— transfer of know-how, 
— impact on the balance of payments, 
— favourable impact on the environment, 
— manufacture and supply to the local market of 
products that have been difficult to obtain or are 
of a lesser quality; 
3. compatibility with the sectoral and geographical 
aspects of Community policy; 
4. compliance with the eligibility criteria applying to 
each of the facilities.