REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in central and castern European countries: Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania (from 1.1.1995 to 30.6.1995) and in countries of Latin America and Asia with which the Community has concluded cooperation agreements (from 23.2.1995 to 22.8.1995)
Date: 1996-03-01
Institutions: European Commission
Subjects: Asia, Central and Eastern Europe, EIB loan, Latin America, use of aid

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  01 03.1996 
COM(96) 72 final 

REPORT  FROM  THE COMMISSION  TO  THE  COUNCIL 
AND  THE  EUROPEAN  PARLIAMENT 

on  the rate of utilization  of European  Investment  Bank  loans for  projects 

A 

in  central  and  eastern  European  countries  Poland,  Hungary,  the  Czech  Republic, 
the  Slovak  Republic,  Romania,  Bulgaria,  Estonia,  Latvia,  Lithuania  and  Albania 
(from  I  1.1995 to  30.6.1995) 

and 

B 

in countries  of  Latin  America  and  Asia  with  which  the  Community  has  concluded 
cooperation  agreements  (from  23.2.1995 to  22.8.1995) 

A.  REPORT  FROM  THE  COMMISSION  TO THE  COUNCIL 

AND TO  PARLIAMENT 

on the rate of utilization  of European  Investment  Bank  loans  for  projects 
in central  and  eastern  European  countries (Poland,  I lungary, 
the Czech  Republic, the  Slovak  Republic,  Romania,  Bulgaria,  Latvia, 
Estonia,  Lithuania  and  Albania) 

(from  1.1.1995 to  30.6.1995) 

Introduction 

Council  Decision  93/696/EC  of  13 December  1993  (OJ  No  L 321  of  23.12.1993) 
grants  in  full  the  Community  guarantee  to  the  European  Investment  Bank  (EIB) 
against  losses  under  loans  for  projects  in  central  and  eastern  Europe  for  a 
maximum  loan  ceiling  of  ECU  3 000  million  over  an  indicative  three-year  period 
in  respect  of 
The  loan  guarantee  ceiling  includes  the  provisions  adopted 
investments  in  Estonia,  Latvia  and  Lithuania  in  Council  Decision 93/166/EC  of 
15 March  1993. 

The Council  Decision  requires the Commission  to draw  up a six-monthly  report  on 
the  situation  regarding  loans  signed  under  the  guarantee 
The  present  report 
covers the period  from  1 January to  30 June  1995. 

2. 

EIB  lending 

During  the  first  half  of  1995  the  Bank  signed  six  loans  financed  out  of  own 
resources for  a total of ECU  130 million  in central  and  eastern  Europe. 

The list  of operations  signed  during  that  period  and  the description  of the  projects 
are given  in the table below. 

Operations signed in the period  1  January-30 June  1995 on the basis of the Council Decision of 13 December  1993 (93/696/EC) 

CENTRAL AND EASTERN EUROPE 

COUNTRY 

PROJECT NAME 

DATE OF 
SIGNATURE 

AMOUNT 
SIGNED 
(ECUm) 

DESCRIPTION 

ALBANIA 

FERRY TERMINAL AT THE PORT OF 
DURRES 

1.6.1995 

5.00 

Expansion and upgrading of fern  terminal  facilities 

BANK OF ALBANIA APEX Global Loan 

2.6.1995 

ESTONIA 

ESTONIAN INVESTMENT BANK Global 
Loan- tranche B 

29.6.1995 

LITHUANIA 

LITHUANIAN DEVELOPMENT BANK 
Global loan 

10.4.1995 

SLOVAKIA 

SPP GAS TRANSMISSION 

23.5.1995 

5.00 

5.00 

5.00 

Financing SMEs in industry, tourism and senices related to 
industn', as well as energy saving and environmental 
protection schemes 

Financing SMEs in industn-. tourism and senices related to 
industry, as well as energy saving and environmental 
protection schemes 

Financing SMEs in industn. tounsm and senices related to 
industry, as well as energy saving and environmental 
protection schemes 

50.00 

Modernization  and expansion  of the international  pipeline 
earning Russian gas through  Slovakia to western Europe 

ROMANIA 

TELECOMMUNICATIONS 

16.5.1995 

80.00 

Expansion and modernization  of the national 
telecommunications svstem 

TOTAL 

130.00 

B.  REPORT  FROM  THE  COMMISSION  TO  II IL COUNCII 

AND TO  PARLIAMENT 

on the rate of utilization  of European  Investment  Bank  loans for  projects  of mutual 
interest  in countries  of Latin  America  and  Asia that  have concluded  cooperation 
agreements  with the  Community 

(from  23.2.1995 to  22.8.1995) 

1. 

Introduction 

Council  Decision  93/1 I 5/EEC  of  I 5 February  1993  (O.I  No  I. 45  of  23.2.1993) 
grants  in  full  the  Community  guarantee  to  the  European  Investment  Bank  (EIB) 
against  losses  under  loans  for  projects  of  mutual  interest  in  certain  third  countries 
with  which  the  Community  has concluded  cooperation  agreements  The  Decision 
The  list  of 
sets  a  limit  of  ECU  250 million  per  year,  for  a  three-year  period 
beneficiary  countries  is given in the  annex. 

The Council  Decision  requires the Commission  to draw  up a six-monthly  report  on 
the  rate  of  take-up  of  loans  under  the  guarantee.  The  present  report  covers  the 
period  from  23.2.1995  to 22.8.1995. 

2. 

EIB lending in the period  23.2.1995  to  22.8.1995 

During the first  half of the third  year of activity, the EIB  signed  loans financed  out 
of own  resources  for  a total  of ECU  133 million  in five  countries  in Latin  America 
and  Asia.  During the  same period,  the EIB  Board  of Directors  approved  a loan  of 
ECU  6 million to be signed  before  the end  of the current  mandate. 

The  list  of operations  signed  or  approved  during  the  period  and  the  description  of 
the  projects  are  given  in the  table  below. 
It  should  be  noted  that  loans  in  Peru, 
the  Philippines  and  Indonesia  were  approved  by  the  Bank  before  the  period  of 
reference  and,  as  such,  they  were  allocated  in  full  (loans  in  Peru  and  the 
Philippines)  or  in  part  (loan  in  Indonesia)  to  the  second  year  of  activity  (see 
COM(95)507). 

Operations signed or approved by the EIB Board of Directors during the period from  23.2  1995 to 22.8.1995 (93/115/EEC) 

LATIN AMERICA AND ASIA 

COUNTRY 

PROJECT NAME 

ARGENTINA 

AILINCO 

INDONESIA1 

GAS TRANSMISSION AND 
DISTRIBUTION 

DATE OF 
APPROVAL 
25.7.1995 

DATE OF 
SIGNATURE 
not yet signed 

31.1.1995 

20.7.1995 

PARAGUAY 

ASUNCION SEWERAGE 

19.6.1995 

3.7.1995 

PERU2 
PHILIPPINES2 
THAILAND 

TOTAL 

PAN AMERICAN HIGHWAY 
DAVAO AIRPORT PROJECT 
ERAWAN PARALLEL GAS PIPELINE -
Phase II 

27.9.1994 
25.10.1994 
28.2.1995 

14.7.1995 
10.3.1995 
27.7.1995 

AMOUNT 
(ECUm) 

DESCRIPTION 

6.00 

46.00 

17.00 

27.00 
25.00 
18.00 

139.00 

Construction of plant for the treatment and disposal of 
dangerous waste in the province of Buenos Aires 
Construction of a new gas pipeline linking the south of 
Sumatra with consumers in the centre of Sumatra  and 
on the island of Batams 
Extension of waste-water collection and disposal 
network in Asuncion 
Rehabilitation of transport sector 
Modernization and extension of Davao airport 
Extension of parallel gas pipeline from Erawan in Bang 
Pakong to Wang Noi 

The  "gas  transmission  and  distribution"  project  costing  ECU 46m  has  been  entered  in  the  accounts  as  follows.  ECU 24m  for  the  period 
22.2.1994-22.2.1995  and ECU 22m for the period 22.2.1995-22.2  1996 
The amounts were entered in the accounts during the period 22.2.1994-22 2.1995 

List  of developing  countries  in  Latin  America  and  Asia 
with  which  the  Community  has  concluded  cooperation  agreements 

ANNEX 

LATIN  AMERICA 

Argentina 
Brazil 
Chile 
Mexico 
Paraguay 
Uruguay 
Andean  Group (Bolivia,  Colombia,  Ecuador,  Peru,  Venezuela) 
Central  American  countries  (Costa  Rica,  Guatemala,  Honduras,  Nicaragua,  Panama, 
Salvador) 

ASIA 

Bangladesh 
China 
India 
Macao 
Mongolia 
Pakistan 
Sri Lanka 
ASEAN Group (Brunei,  Indonesia,  Malaysia,  Philippines,  Singapore,  Thailand) 

ISSN 0254-1475 

COM(96) 72  final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-96-084-EN-C 

ISBN 92-78-00910-5 

Office for Official Publications of the European Communities 

L-2985 Luxembourg