EN    EN EN 
 
EN    EN  EUROPEAN COMMISSION 
Brussels, 4.3.2010 
SEC(2010) 186 final 
  
COMMISSION STAFF WORKING DOCUMENT 
Accompanying the 
 
THE REPORT FROM THE COMMISSI ON TO THE CO UNCIL AND TO THE 
EUROPEAN PARLIAMENT ON OPERAT IONS CARRIED OUT UNDER THE EIB 
EXTERNAL MANDATE IN 2008 
   
COM(2010)74 final 
 
EN 2   EN COMMISSION STAFF WORKING DOCUMENT 
Accompanying the 
 
THE REPORT FROM THE COMMISSI ON TO THE CO UNCIL AND TO THE 
EUROPEAN PARLIAMENT ON OPERAT IONS CARRIED OUT UNDER THE EIB 
EXTERNAL MANDATE IN 2008 
TABLE OF CONTENTS 
1. Contribution of EIB lending act ivity per geographical region..................................... 3 
1.1. Pre-Accession Countries .............................................................................................. 3 1.2. Mediterranean Partner Countries ................................................................................. 6 1.3. Eastern Europe, the Southern Caucasus and Russia .................................................... 9 1.4. Asia and Latin America ............................................................................................. 11 1.5. South Africa .............................................................................................................. . 13 
2. List of loans signed under the Community-supported mandate in 2008 ................... 15 3. List of operations co-financed with  other IFIs and the Commission......................... 19 
 
EN 3   EN 1. CONTRIBUTION OF EIB  LENDING ACTIVITY PER GEOGRAPHICAL REGION  
This report 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. It is 
recalled that, until 31 July 2007, EIB lending  continued under the previous 2000-2007 
mandate and that those operations are not  reflected in the tables that follow. 
1.1. Pre-Accession Countries  
1.1.1. Activity by Country 
Table 1: Summary of lending signatures by Country 
2007 2008 Tot 
Country  N° ops EURm N° ops EURm N° ops EURm 
Albania 1 23 - - 1 23 
Bosnia and Herzegovina - - 5 260 5 260 
FYROM - - 1 10 1 10 
Montenegro - - 6 50 6 50 
Serbia 1 60 3 170 4 230 
Turkey 1 305 7 1519 8 1824 
TOTAL 3 388 22 2,009 25 2,397 
In 2008, total EIB lending under the mandate in  Pre-Accession Countr ies totalled EUR 2 
billions; Turkey accounted fo r 75,6% of lending while 2 4,4% was assigned to Western 
Balkans Countries. The breakdown of EIB ac tivity under mandate by lending objectives is 
provided in section 1.1.2. below. 
In addition to EIB lending under mandate, a tota l of EUR 1.4bn of financing was signed in 
2008 at the EIB’s own risk without recour se to the Community guarantee under the Pre-
Accession Facility . The largest part (EUR 920m) was directed towards the SMEs in Turkey 
and Croatia in the form of credit lines and l ease financing. Infrastr uctures (namely energy, 
including renewable energy, transport and te lecommunications) in Turkey and Serbia 
benefited from EIB loans total ling EUR 322m while industrial pr ojects in Turk ey received 
EUR 203m. 
 
EN 4   EN 1.1.2. Activity by Objective  
Table 2: Summary of signatures by re gion-specific key lending objectives 
2007 2008 Tot   
Objective  N° ops EURm N° ops EURm N° ops EURm 
Knowledge economy (RTD, ICT, 
Education) - 0 1 70 1 70 
Extension of Trans-European 
Networks (TENs) 2 83 3 86 5 169 
Support for SMEs - 0 7 315 7 315 
Environmental Protection and 
Sustainable Communities 1 305 9 1,504 10 1,809 
Support to Sustainable, 
Competitive and Secure Energy - 0 2 103 2 103 
TOTAL 3 388 21* 2,009* 24* 2,397* 
* The above numbers cannot be added as a single operation may contribute to several objectives  
EIB financing in Pre-Accession countries reflects  the priorities established in the Accession 
and European Partnerships, in the Stabilisat ion and Association Agreements and in EU 
accession negotiations. The lending priorities are al so in line with EIB le nding within the EU. 
Support for the protection of environment and sustainable communities comprised 9 
projects and  accounted for three quarters (EUR 1.5bn) of total signature s under mandate in 
Pre-Accession countries in 2008. The majority of EIB investments under this heading was in support of public transport infras tructures and urban renewal. 
• Sustainable communities received support in particular in Turkey, where the EIB 
contributed to the fina ncing of three large public transport infrastructure  projects,  
namely for the construction and rehabilitation of rail infrastructure. The largest project, 
Istanbul Urban Transport II comprises EUR 700m EIB financing to  extend the existing 
metro system and to integrate the city’s various  public transport networ ks (light rail, tram 
and bus). By cutting road traffic, the urba n environment will be improved in terms of 
congestion and pollution. The two other projec ts in Turkey concerned public transport 
(light rail) networks in Bursa and Antalya respectively. 
• Urban renewal and regeneration  was supported by two EIB financed operations. The 
first is a EUR 300m loan which aims at streng thening public buildings in Istanbul in order 
to increase their resistance to major earthquak es. Earthquake risk mitigation measures are 
rather important given considering Istanbul’s location on the North Anatolian fault-line as 
well as its population size and density. The proj ect promoter will furthermore benefit from 
a close cooperation with a specialised “dis aster” group within the World Bank. Another 
 
EN 5   EN operation supporting urban renewal in Serbia benefits from EUR 50m EIB loan for the 
improvement and upgrading of municipal infr astructures mainly covering transport and 
local/regional roads, educati on, cultural and historical he ritage and public buildings 
rehabilitation. The exp ected benefits include in partic ular improved quality of public 
facilities, increased traffic safety and reduction of congestion on the road network.  
• Healthcare infrastructure in Serbia received in 2008 a second tranch e of EUR 70m (from 
a total EIB financing of EUR 200m) foreseen  for the modernisation, redevelopment and 
extension of four tertiary care hospitals in ma jor Serbian cities. The project represents an 
integral and critical part of Serbia’s healthcare reform which has also benefited from a capacity building study commissioned by the Eu ropean Agency for Reconstruction (EAR) 
in 2005 and a study commissioned by th e World Bank in 2006 for the sector 
reconfiguration strategy. A de dicated Project Implementation Unit will be in charge of 
following the project implementa tion with the support of tec hnical assistance financed by 
the EAR. 
• Water and sanitation  investments received EIB fina ncing in Bosnia-Herzegovina and 
Montenegro. In Montenegro, the project con cerns water supply and urgent investment 
schemes for collecting and treating municipal wa stewaters. It will help bring the country’s 
infrastructure closer to the EU environmenta l standards, following the lines established by 
master plans funded by the EU and complete d under the supervision of the EAR. Some 
project components form part of the Commis sion’s Priority Environmental Investment 
Programme for the Balkan region.  
• Environment and energy  received EUR 200m suppor t through two financial 
intermediaries in Turkey for on-lending to finance small and medium, as well as potentially larger scale environment and ener gy investments, including renewable energy 
(wind, solar, biomass, biofuels, etc.), pollu tion abatement, natural gas distribution and 
energy efficiency (including fuel switching,  district heating, plant modernisation) 
investments. The possibility of providing long-t erm funds also in the local currency (TRY) 
is envisaged.  
Support for SMEs  and private sector was supported by 7 operations signed under mandate 
for a total of EUR 315m
1 financing to small and medium scal e projects provided through local 
financial intermediaries in Bosnia-Herzegovin a, Turkey, Serbia, Montenegro and FYROM. 
The expected benefits of most of the credit lines include support for the development of the 
countries’ financial system and of the SME se ctor, improved competitiveness of the industry, 
contribution to environmental pr otection and to the rational use of energy, improvement of 
infrastructure of local and regional interest. Gi ven the prevailing financial crisis and its impact 
in terms of reduced liquidity in  the financial markets of the Pr e-Accession countries, the Bank 
already started to step up its lending in favour  of SMEs via financial intermediaries in 2008. 
This effort is being reinforced in 2009. 
The provision of sustainable and competitive energy was supported by two direct operations. 
In Turkey a EUR 100m loan was signed for the upgrade and extension of the national 
electricity distribution networ ks as well as for investment in measurement and tele-
information systems. The project will help to cope with the growing electricity demand and 
                                                 
1 An additional EUR 920m in credit lines for SMEs in Turkey and Croatia was signed under the EIB own 
risk Pre-Accession F acility (PAF) in 2008. 
 
EN 6   EN contribute to safer, more efficient and ra tional use of the energy supply system. In 
Montenegro, the EIB co-financed the rehabilitation and upgrading of electricity infrastructure, 
comprising primarily transmission substations bu t also hydropower plants in Montenegro. The 
project represents a good example of EIB coope ration with the main IF Is and donors active in 
the region; parallel financing to the project is provided i.a.  by the EBRD and EAR. Through 
the inclusion of particular undertakings by th e promoters, the project will underscore the 
energy policy reforms of the country towards the creation of a liberalised and competition-
based energy market in line with EU regulations and best practice.  
The extension and development of Trans-European transport Networks  in the region was 
supported by three operations for a total EIB lending of EUR 86m.  In Bosnia-Herzegovina, 
EUR 75m was provided for the construction of a new motorway section enabling the country 
to connect with the internationa l transit corrid ors (Corridor Vc extending from the Croatian 
coast to Budapest through Bosnia-Herzegov ina and through Croatia again by crossing 
Corridor X). Main benefits of the project derive  from time savings and vehicle operating cost 
savings relative to the current trunk road in  poor condition. In Montenegro, two transport 
projects linking to TENs concerned the rehabilitation of a central railway axis as well as parts 
of the national road network. Both projects ar e co-financed by other IFIs and benefit from 
technical assistance financed by the EAR. The ra ilway is also part of the Core Strategic 
Network identified by the EC in the context of  planning the continuati on of TEN routes in 
European neighbouring states. 
1.2. Mediterranean Partner Countries 
1.2.1. Activity by Country 
Table 3: Summary of lending signatures by Country 
2007 2008 Tot   
Country  N° ops EURm N° ops EURm N° ops EURm 
Egypt 1 130 1 250 2 380 
Israel  1 120 - 0 1 120 
Jordan 1 50 1 37 2 87 
Lebanon 2 295 1 52 3 347 
Morocco 2 330 3 270 5 600 
Syrian Arab Republic 1 80 1 275 2 355 
Tunisia 1 200 4 311 5 511 
TOTAL 9 1,205 11 1,195 20 2,400 
Table 3 shows that Tunisia, Sy ria, Morocco and Egypt, with respectively 26%, 23%, 22% and 
20%, accounted for some 91% of lending while th e remaining 9% was assigned to Jordan and 
Lebanon. 
 
EN 7   EN Lending under mandate was complemented by risk capital operations funded by the 
Community budget as well as by two loans si gned under the Mediterranean Partnership 
Facility II at EIB's own risk. Including these operations, the vol ume of 2008 signatures in the 
Mediterranean region reached some EUR 1.3bn.  
1.2.2. Activity by Objective 
Table 4: Summary of signatures by re gion-specific key lending objectives 
* The above numbers cannot be added as a single operation may contribute to several objectives 
As one of the main financing instruments of  the Euro-Mediterranean partnership, FEMIP 
continued its support to the Barc elona Process, which was reinforced at the summit of Heads 
of State and Government in Paris in July 2008, by the launch of the Union for the Mediterranean. The summit also agreed on the following priority initiatives within the 
mission of FEMIP:  
• De-pollution of the Medite rranean Sea (Horizon 2020) 
• Investment in terrestrial and maritime highways 
• Renewable energy (Mediterranean solar plan) 
Since 2008, FEMIP also stepped up the Euro-Med iterranean partnership via conferences on 
specific issues, most recently on tourism, micr ofinance, climate change , and human capital.  
The bulk of FEMIP lending activit ies in 2008 addressed the creati on of an investment-friendly 
environment through the establishment of efficient infrastructure . In particular, 70% of 
lending volume signed under mand ate in 2008 contributed to the economic development of 
the region through investments in the energy infrastructure. 
The Mediterranean partner countries are expe riencing a huge increase in energy demand, 
especially for electricity, owi ng in particular to economic development and the needs of a 
growing population. Three areas fo r action continue to be the fo cus of FEMIP activity in this 
sector:  
• Improved access to energy sources for the local population, 
• Integration of the Euro-Medit erranean energy markets and 2007 2008 Tot 
Objective N° ops EURm N° ops EURm N° ops EURm 
Support for enabling environment for private 
sector through strengt hening of economic 
and social infrastructure 6 905 10 1,143 16 2,018 
Direct support for private sector, SMEs or 
micro-finance 6 745 2 107 8 852 
TOTAL 9* 1,205* 11* 1,195* 20* 2,400* 
 
EN 8   EN • Diversification of sources of supply, not ably through the use of renewable energy. 
• In Syria and Tunisia, the EIB co-financed th e construction of gas-fired dual-cycle power 
plants which, besides catering for the growing electricity demand, will also improve the power sectors’ fuel efficiency and environmental performance. 
• In Egypt and Morocco, the projects comprise developments to the national power 
transmission networks. In Egypt , the extension of the gas tran smission system to new areas 
will allow replacing the use of fuel oil and LPG and reduce the cost of energy supply with 
resulting benefits for the consumers and the environment. The project will also increase the country’s capacity for gas exports to Jordan, Syria, Lebanon and Israel. The export component supports the East Mediterranean  Gas Ring, falling under one of the TEN-E 
priorities.  
Four operations representing 21% of total lend ing under mandate contributed to develop the 
transport  infrastructure. FEMIP’s commitment to help set up an integrated and effective 
Euro-Mediterranean transport system will help to boost trade both to th e EU and within the 
Mediterranean region, a pre-requisite for th e region’s long-term economic development. 
• In Tunisia, EUR 110m was extended to improve the urban road infrastructure. The project 
forms part of the programme of prior ity actions es tablished under Tunisia’s 11
th Economic 
and Social Development plan and will lead to  improvement of the population’s quality of 
life. 
• In Morocco, one project focuses on upgrade and reconstruction of 15 000 km of rural 
roads, with a signifi cant impact on the economic and social development of rural areas, on 
road traffic and the reduction in vehicle mainte nance costs. The projec t is co-financed with 
several other IFIs and lenders and benefits from subsidy a nd technical assistance grant 
from the NIF.  
• Another loan in Morocco fina nces the construction of a s econd container terminal at 
Tanger-Med port, a major infrastructure at the crossroads of the East - West and North - 
South maritime roads. The project will substa ntially improve Morocco’s infrastructure and 
maritime links for international trade. 
• In Jordan, the EIB granted alongside other IFIs an increase to the loan in favour of Amman 
Ring Road project, the construction works of which started in 2006 and are ongoing. The 
project forms part of a broad package of developments proposed by the Government of 
Jordan to improve transport provision and promote economic development in the Greater 
Amman area. Two FEMIP technical assistance operations are in pla ce and contribute to 
project preparation as well as  elaboration of a Strategic Master Plan for the Amman 
Development Corridor. 
The proportion of financi ng in support of the private sector , including risk capital operations 
and EIB own risk lending, repres ented 20% in terms of total volume and 60% in terms of 
number of operations (reflecti ng the smaller average size of private sector operations in 
contrast to public sector t ypically consisting of large scal e infrastructure projects). 
Credit lines for SMEs  were provided through three privat e Lebanese banks for a total of 
EUR 52m. This financing is pa rt of the EIB pledge made at  the Paris III conference to 
underpin the Lebanese recovery and reconstruc tion programme and represents a continuation 
 
EN 9   EN of direct cooperation with lead ing Lebanese financial instituti ons in the form of “stand-alone” 
credit lines, in contrast to the traditional stat e-guaranteed form of operations. The operation is 
structured under the Special FEMIP Envelope  under which the EIB bears more risk.  
Finally, EUR 55m loan was ma de to a Tunisian private industrial  enterprise, to finance the 
environmental upgrading of a number of la rge phosphate production f acilities. Mining and 
downstream mineral processing play s an important socio-economic role in Tunisia, hence the 
importance of accompanying environmental initi atives to ensure minimising pollution. The 
project will result in a positiv e effect on the environment th rough significant reduction of SO2 
and fluor emissions. An interest subsidy for the project has been earmarked within the 
National Indicative Programme (NIP) for Tunisia.  
In 2008, outside the Community guarantee , the EIB financed 9 risk capital  operations in 
several Mediterranean Partner Countries for the amount of  EUR 95m. Two loans totalling 
EUR 33m in favour of projects in the pharmaceuti cal industry in Israel were signed under the 
EIB own risk Mediterranean Partnership Facility II .  
1.3. Eastern Europe, the Southern Caucasus and Russia 
1.3.1. Activity by Country 
Table 5: Summary of lending signatures by Country 
2007 2008 Tot  
 
Country  N° ops EURm N° ops EURm N° ops EURm 
Republic of Moldova - 0 1 20 1 20 
Ukraine - 0 1 150 1 150 
TOTAL - 0 2 170 2 170 
EIB financing operations in Eastern Europe, the Southern Caucasus and Russia are carried out 
in close cooperation with the EBRD accordi ng to the terms set out in a tripartite 
Memorandum of Understanding between the Commission, the EIB an d the EBRD, which 
aims to bring together the expertise, capacity and comparative advantages of each participant 
for the successful implementation of the Eu ropean Neighbourhood Policy and the EU-Russia 
Strategic Partnership.  
The 2007-2013 mandate expanded the EIB’s activit ies to include the Southern Caucasus. 
Consequently, Framework Agreements were sign ed with Georgia (in 2007) and Armenia in 
early 2008 (entered into force in December 200 8). Negotiations with Azerbaijan are still on-
going.  
The global financial and economic crisis had di rect consequences on EIB activity in Eastern 
Neighbourhood and Russia. Moreover, the c onflict with Russia in  Georgia and the 
political/economic instability in Ukraine preven ted certain projects from being pursued. The 
EIB participated, together w ith the Commission, EBRD, ADB a nd IFC in the post-conflict 
joint needs assessment in Georgia lead by the World Bank and the United Nations. The 
 
EN 10   EN conclusions of the joint needs assessment were  presented at the D onors’ Conference of 
October 2008 in Brussels, together w ith funding proposals from the donors.  
Two operations, in Ukraine and Republic of Moldova, were signed in the region in 2008.  
1.3.2. Activity by Objective 
Table 6: Summary of signatures by re gion-specific key lending objectives 
2007 2008 Tot   
Objective  N° ops EURm N° ops EURm N° ops EURm 
Transport - 0 1 20 1 20 
Energy - 0 1 150 1 150 
Telecommunications - 0 - 0 - 0 
Environmental infrastructure - 0 - 0 - 0 
TOTAL - 0 2 170 2 170 
Both loans signed in 2008 contribute to the development of infrastructure , namely energy 
transmission and airport modernisation.  
• In Ukraine, EUR 150m was extended for the co nstruction of electricity transmission line 
between Kiev area and western Ukraine, enab ling connections in the medium term to the 
Trans-European Energy Networks (TEN-E). The project will reinforce the transmission 
network, support a more economic use of generation capacity, improve Ukraine’s 
participation in the European  energy markets, reduce losse s, thereby lowering the amount 
of greenhouse gas emissions and other harmful em issions in Ukraine, improve the security 
of supply to the Kiev city area and fac ilitate the closure of the Chernobyl 750 kV 
substation, which is in a radioa ctively contaminated area.  
• In the Republic of Moldova, EUR 20m loan will finance investments in airside 
infrastructure at Chisinau Airport, which is the sole airport serving the Republic of Moldova. The investments comp rise the rehabilitation of the airport's runway and 
taxiways, reconstruction and extension of the passenger apron and expa nsion of the arrival 
and departure halls of the passenger terminal. Technical assistance is  foreseen from the 
Neighbourhood Investment Facility (NIF) to support all stages of the project from 
feasibility study to the preparation of an air port master plan to implementation assistance 
and works supervision, which are key to project success. 
 
EN 11   EN 1.4. Asia and Latin America 
1.4.1. Activity by Country 
Table 7: Summary of lending signatures by Country 
2007 2008 Tot   
Country  N° ops EURm N° ops EURm N° ops EURm 
Brazil 1 250 1 200 2 450 
India - 0 1 150 1 150 
Mexico - 0 1 50 1 50 
Panama 1 27 - 0 1 27 
Paraguay - 0 1 69 1 69 
Uruguay 1 28 - 0 1 28 
TOTAL 3 305 4 469 7 774 
In November 2008 the Council ad opted the decision on the elig ibility of 5 Central Asian 
countries for EIB financing under the Community Guarantee,  which has been confirmed 
under the Decision of the European Parliame nt and the Council of 13 July 2009. A first 
Framework Agreement governing EIB activities in Central Asia was signed with Tajikistan in 
early 2009. The focus of EIB in this region will be on major energy supply and energy transport projects with cross-border implications . Like in Eastern Euro pe, Southern Caucasus 
and Russia, EIB activity in Central Asia will be carried out in close cooperation with the 
EBRD, pursuant to the EC-E BRD-EIB tripartite MoU. 
In 2008 four operations totall ing EUR 469m were signed in the ALA region with Brazil 
receiving 42.6% of the total lending amount. A first loan of EUR 150m was signed under the 
Asia envelope
2. 
                                                 
2 In addition to the total EIB financing under mandate, the EIB Board of Directors approved the 
allocation of EUR 220m for three proj ects that contribute to the mitigation of climate change within the 
EUR 500m China Climate Change Framework Loan, which was signed in 2007 under the EIB own risk Facility for Energy Sustainability and Security.  
 
EN 12   EN 1.4.2. Activity by Objective  
Table 8: Summary of signatures by re gion-specific key lending objectives 
2007 2008 Tot 
Objective N° ops EURm N° ops EURm N° ops EURm 
Support for EU presence in ALA 
(European FDI, transfer of European technology) 2 278 4 469 6 747 
Support of environmental sustainability  
(including climate change mitigation) 1 27 2 200 3 227 
TOTAL 3 305 4* 469* 7* 774 
* The above numbers cannot be added as a single operation may contribute to several objectives  
The 2007-2013 mandate introduced as new focus areas for EIB activity in ALA, namely 
investments contributing to environmental sust ainability, including climate change mitigation, 
or to the energy security of th e EU. The EIB also continues to support the EU’s presence in 
the countries concerned through fo reign direct investment and the transfer of technology and 
know-how. Moreover, the Council  invited the Bank to progre ssively expand its activities 
across a larger number of count ries in ALA, including in le ss prosperous countries.  
In 2008, lending activity in Latin America in su pport of European foreign direct investment 
was affected by the downward revision of i nvestments planned in the region by some 
European companies. Four ope rations, all of which supported  EU presence in ALA  region, 
were signed in 2008. Two of these are indi rect operations (through local financial 
intermediaries) and additi onally contribute to the environmental sustainability  objective, by 
supporting a series of investments by pr ivate and public sector operators.  
• In India, the EUR 150m framework loan suppo rts the financing of renewable energy and 
energy efficiency projects in line with the EU -India Strategic Partnership, which foresees 
i.a. cooperation in curbing climate change. It  represents a direct follow-up on the Joint 
Statement issued at the EU-India summit of November 2007, which stated that “ India and 
the EU welcomed the steps taken by the EI B in India to establish loan-based project 
funding under its new Asia lending mandate, and in particular with reference to the 
financing instruments supporting pr ojects in the fields of energy  sustainability and climate 
change mitigation ”. 
• In Mexico, EUR 50m was extend ed to one of the country’s main public development bank, 
which will be managing the Mexican Carbon Fund in order to support environmental 
projects, in particular Clean Development Mech anism projects. The loan is consistent with 
the EU policy and strategy on climate change, which calls for the identification of new 
tools to strengthen developing c ountry participation in  global efforts to address the climate 
change. This is a pilot operati on in a country that offers huge potential for projects tackling 
climate change. 
The two other operations signed in 2008 supporti ng EU presence in ALA, are loans to the 
subsidiaries of European telecommunications  companies for the expansion of mobile 
 
EN 13   EN telecommunications networks in  Brazil and in Paraguay. Access to telecommunications is of 
key importance in promoting economic development and fighting poverty.  
• In Brazil, the project will contribute to devel oping innovative IT infrastructure, as well as 
facilitating improved internet, multimedia a nd telecommunications services. The project 
has significant developmental potential as it will contribute to providing broadband telecom services where fixed networks have  a relatively low level of diffusion and/or 
quality. The EIB loan (EUR 50m) will be alloca ted to investments in the regions of Brazil 
with an income considerably below the national average. 
• In Paraguay, the operation meets to the Council’ s invitation to diversif y EIB financing also 
to the less prosperous countries; the project is located in one of the poorest countries in the 
region, where EIB had not yet established a presence. The EUR 68.5m EIB financing will 
allow GSM network coverage of  all cities with more than  5000 inhabitants and further 
increase the population coverage to about 83%. This is particul arly important in a country 
with a very low fixed-line density (8 mob ile phones for one fixed line). By migrating the 
local subscriber base to GSM,  the project also supports th e EU policy goal of promoting 
interoperable technologies. 
1.5. South Africa 
1.5.1. Signatures by Obj
ective 
Table 9: Summary of signatures by re gion-specific key lending objectives 
2007 2008 Tot   
Objective  N° ops EURm N° ops EURm N° ops EURm 
Support for infrastructure projects of public 
interest - 0 1 150 1 150 
Direct support for private sector, SMEs - 0 3 203 3 203 
TOTAL - 0 3* 203* 3* 203* 
* The above numbers cannot be added as a single operation may contribute to several objectives  
EIB financing in the Republic of South Afri ca (RSA) focuses on priority infrastructure 
investment programmes and the promotion of pr ivate sector growth. All 3 operations signed 
in 2008 provided support for the private sector . One of these also meets the other main 
objective of the RSA mandate as it supports urban infrastructure  regeneration. This operation 
involves EUR 150m EIB financing provided through three private sector and two public 
sector financial intermediaries for funding th e supply of affordable and social housing and 
associated urban infrastructure including so cial amenities, throughout RSA. The improvement 
of housing conditions for the low-income populati on plays an important role in the national 
development strategy of RSA and is in accord ance with the EU-RSA Country Strategy which 
focuses on the reduction of poverty and inequality, as well as the creation of an enabling environment for economic growth and developm ent. The operation complements EC actions 
(provision of technical assistance for capacity  building for Social Housing Institutions) as 
well as Netherlands Development Finan ce Company and Agence Française de 
 
EN 14   EN Développement (provision of subsidised mo rtgage finance for commercial financial 
intermediaries and of funding for the supply of housing).  
An innovative medium-sized private sector st art-up project benefi ted from EUR 40m EIB 
financing under the Structured Finance Facilit y. The project involves the construction of a 
production facility for thin-film photo-voltaic (PV) modules, which represent an important 
component for the renewable energy sector. The production process involves an innovative 
locally-developed technology which is characteri sed by lower raw material costs than silicon-
based modules and will c ontribute to the learning effect that is expected to gradually reduce 
the costs in the PV industry. The new plant will  provide PV systems to  schools and clinics in 
rural communities, where PV is already of ten more cost-effective than power grid 
development, as well as making micro-si zed installations fo r individual homes.  
The EIB also lent EUR 12.5m to support the es tablishment of a greenfield metal coating 
production facility in South Afri ca. The project will help to bu ild commercial capacity in the 
South African steel industry. Th e metal coating sheets produ ced by the promoter are used 
extensively in the residential roofing market. Through increased availability of  cheaper and 
more reliable roofing material for housing, the project will contribute to improving living 
conditions.  
 
EN 15   EN 2. LIST OF LOANS SIGNED UNDER THE COMMUNITY -SUPPORTED MANDATE IN 2008 
Loans signed in the Pre-Accession countries 
  Country Project Description Loan 
Amount 
(EUR m) Political 
Risk 
Guarantee3 
 Bosnia and 
Herzegovina Construction of 15 km motorway section between Drivusa and 
Kakanj in Corridor Vc 75.00 No 
 Bosnia and 
Herzegovina Financing of small and medium -scale infrastructure projects 75.00 Yes 
 Bosnia and 
Herzegovina Financing of small and medium-scale projects 50.00 Yes 
 Bosnia and 
Herzegovina Rehabilitation and construction of water and sanitation facilities 60.00 No 
 FYROM Financing for small and medium-scale ventures 10.00 Yes 
 Montenegro Urgent rehabilitation and modernisation of Podgorica and Tivat 
airports 1.00 No 
 Montenegro Financing of small and medium-scale projects 30.00 Yes 
 Montenegro Rehabilitation of railway infrastructure on main line crossing 
Montenegro and acquisition of rolling stock 7.00 No 
 Montenegro Rehabilitation and construction of municipal water and sanitation 
infrastructure 5.00 No 
 Montenegro Rehabilitation and upgrading of electri city infrastructure in Serbia 
and Montenegro 2.98 No 
 Montenegro Rehabilitation of roads and bridges throughout country 4.00 No 
 Serbia Modernisation, redevelopment and extension of four tertiary care 
hospitals in Serbia (Belgrade, Niš, Novi Sad and Kragujevac) 70.00 No 
 Serbia Lease financing of small and medium-scale projects 50.00 Yes 
 Serbia Financing of small and medium -scale infrastructure projects 50.00 No 
 Turkey Construction of first line of modern tramway system in Antalya 19.00 No 
 Turkey Extension of light rail transit system in city of Bursa 100.00 No 
 Turkey Framework loan for financing small and medium-scale infrastructure 
projects in the fields of environment and energy 200.00 No 
                                                 
3 The Political Risk Guarantee column highlights the operations where, in contrast to sovereign or 
equivalent risk perations covered by the Comprehensive Guarantee, the Community assumes defined 
political risks while the EIB assumes all other risks. 
 
EN 16   EN  Turkey Strengthening of public buildings in Istanbul aimed at increasing 
city's resistance to major earthquakes 300.00 No 
 Turkey Extension of Istanbul's public transport network 700.00 Yes 
 Turkey Upgrading and extension of national electricity distribution networks 100.00 No 
  Turkey Financing of small and medium-scale projects 100.00 No 
   2008.98  
 
Loans signed in the Mediterranean countries 
  Country Project Description Loan 
Amount 
(EUR 
m) Political 
Risk 
Guarantee 
 Egypt Extension of national high-pressure gas transmission network 250.00 No 
 Jordan Construction of Amman Ring Road 36.92 No 
 Lebanon Financing of small and medium-scale projects 52.00 Yes 
 Morocco Upgrading of power transmission network throughout Morocco 170.00 No 
 Morocco Construction of second container terminal at Tanger-Med port 40.00 Yes 
 Morocco Construction of around 15 500 km of rural roads over period 2005-2015 60.00 No 
 Syria Construction of natural gas-fired combined-cycle power plant located 25 
km south of Damascus 275.00 No 
 Tunisia Upgrading of Groupe Chimique Tunisien's existing production facilities 
aimed at improving environmental protection in Skhira and M’Dhilla near 
Gabès 55.00 No 
 Tunisia Construction and operation of dual-fired combined-cycle power plant in 
Ghannouch 86.00 No 
 Tunisia Development of Tunisia’s natural gas transmission and distribution 
network 60.00 No 
  Tunisia Improvement of urban road infrastructure in Tunisia 110.00 No 
     1194.92   
     
 
EN 17   EN  
Loans signed in the Eastern Euro pe, Southern Caucasus and Russia 
  Country Project Description Loan 
Amount 
(EUR 
m) Political 
Risk 
Guarantee 
 Moldova, 
Republic 
of Modernisation of airside infrastructure and expansion of terminal at 
Chisinau airport 20.00 No 
  Ukraine Construction of electricity transmission line between Rivne and Kiev 150.00 No 
     170.00   
     
 
Loans signed in Asia 
  Country Project Description Loan 
Amount 
(EUR 
m) Political 
Risk Guarantee 
  India Framework loan for financing renewa ble energy and energy efficiency 
projects 150.00 No 
     150.00   
 
Loans signed in Latin America 
  Country Project Description Loan 
Amount 
(EUR 
m) Political 
Risk 
Guarantee 
 Brazil Expansion and upgrading of digital mobile telecoms network 200.00 Yes 
 Mexico Financing of small and medium-scale environmental infrastructure 
schemes 50.00 No 
  Paraguay Expansion of GSM network 68.50 Yes 
     318.50   
     
 
EN 18   EN  
Loans signed in South Africa 
  Country Project Description Loan 
Amount 
(EUR 
m) Political 
Risk Guarantee 
 South 
Africa Financing of affordable social housing and related urban infrastructure, 
including social amenities, throughout South Africa 150.00 Yes4 
 South 
Africa Construction of production facility fo r thin-film photovoltaic modules in 
Paarl (Western Cape) 40.00 Yes 
  South 
Africa The construction of a metal sheet roofing complex in South Africa 12.55 No 
     202.55   
                                                 
4 The facility is made available to five intermedia ries, of which two are public (with comprehensive 
guarantee) and three are private (political risk guarantee only). 
 
EN 19   EN 3. LIST OF OPERATIONS CO -FINANCED WITH OTHER IFIS AND THE COMMISSION  
Mandate Country Contract name Project 
cost 
(EURm) EIB loan 
signed in 
2008 
(EURm) Multilateral
Financing 
Institutions European 
Bilateral 
Institutions EC 
contributions 
Co-financed operations under th e external lending mandate 
ENP-EAST Republic 
of 
Moldova MOLDOVA 
CHISINAU AIRPORT 48.90 20.00 
      
ENP-EAST Ukraine RIVNE-KYIV HIGH 
VOLTAGE LINE 300.00 150.00       
ENP-MED Jordan AMMAN RING 
ROAD B 287.40 36.92       
ENP-MED Morocco ROUTES RURALES 
III 396.80 60.00       
ENP-MED Morocco ONE - RESEAUX 
ELECTRIQUES II 587.00 170.00       
ENP-MED Syria DEIR ALI II POWER 
PLANT 722.70 275.00       
ENP-MED Tunisia STEG II 133.00 60.00       
ENP-MED Tunisia GCT MISE A NIVEAU 
ENVIRONNEMENTA
LE 149.50 55.00 
      
ENP-MED Tunisia STEG CENTRALE DE 
GHANNOUCH B 405.00 86.00       
Pre-
Accession Bosnia-
Herzeg. CORRIDOR VC - 
FIRST PHASE - 
NORTH 158.40 75.00 
      
Pre-
Accession Monteneg
ro POWER SECTOR 
RECONSTRUCTION B 140.00 2.98 
      
Pre-
Accession Monteneg
ro ROADS AND 
BRIDGES 
REHABILITATION A2 144.90 4.00 
      
Pre-
Accession Monteneg
ro MONTENEGRO 
RAILWAYS II 68.07 7.00       
Pre-
Accession Monteneg
ro MONTENEGRO 
WATER AND SANITATION B 114.00 5.00 
  
    
 
EN 20   EN Pre-
Accession Serbia CLINICAL CENTERS 
B 430.00 70.00       
Pre-
Accession Turkey TEDAS 
ELECTRICITY 
DISTRIBUTION B 650.00 100.00 
      
Pre-
Accession Turkey ISTANBUL URBAN 
TRANSPORT II 1551.00 700.00       
Pre-
Accession Turkey ISTANBUL 
EARTHQUAKE RISK 
MITIGATION 875.00 300.00 
      
Pre-
Accession Turkey TURKISH 
EXIMBANK SME GL 400.00 100.00       
RSA South 
Africa SAFAL STEEL 
PLANTS 159.02 12.55   
    
      7720.69 2289.44       
Co-financed risk capital operations (Community budget, ENPI) 
ENPI RC Regional 
Med  ALTERMED B 75.00 3.00       
ENPI RC Egypt BELTONE MIDCAP 
FUND 80.00 12.50       
ENPI RC Syria FIRST 
MICROFINANCE 
INSTITUTION SYRIA 12.00 2.00 
      
ENPI RC Egypt SPHINX 
TOURNAROUND 
FUND 65.00 13.00 
      
ENPI RC Morocco FONDS CAPITAL 
CARBONE 26.00 6.50       
      258.00 37.00