COMMISSION REPORT TO THE COUNCIL AND PARLIAMENT ON THE IMPLEMENTATION OF FINANCIAL AND TECHNICAL COOPERATION WITH MEDITERRANEAN NON-MEMBER COUNTRIES - 1994
Date: 1996-05-02
Institutions: European Commission
Subjects: Mediterranean third countries, cooperation policy, financial cooperation, report, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  02.05.1996 
COM(96) 151  final 

COMMISSION  REPORT TO THE 

COUNCIL AND  PARLIAMENT  ON THE 

IMPLEMENTATION  OF FINANCIAL 

AND  TECHNICAL  COOPERATION  WITH 

MEDITERRANEAN  NON-MEMBER  COUNTRIES 

1994 

1. 

report 

second 

is 
financial 

The  1994  annual 
the 
t he 
cooperation  with 
and 
of 
implementation 
Mediterranean  non-member  countries,  and  covers  both  bilateral  and 
the  so-called  "horizontal"  cooperation.  Compared  with  last  year's,  the 
report  provides  additional  information  on  operations  launched  in  1994 
and  assesses  their  implementation,  in  response  to  the  wish  expressed 
by  the  Council  and  Parliament. 

report  on 

technical 

such 

2.  As  regards  the  implementation,  particular  importance  was  attached  to 
proper  completion  of  all  the  various  stages  in  a  project's  life  cycle,  and 
In  addition, 
special  attention  will  be  given  to  project  evaluation. 
in 
coordination  with 
particular  the  World  Bank,  should  ensure  improved  effectiveness  of 
Community-funded  operations. 

the  Member  States  and  other  donors,  an 

3. 

taking  longer.  As  described  in  more  detail  in 

Implementation  of  bilateral  cooperation  with  the  MNC  in  1994  was 
satisfactory  with  commitments  being  made  comparatively  earlier  but 
disbursement 
the 
sections  looking  at  specific  countries,  the  long  delays  are  mainly  due  to 
the  political  situation  (events  in  Algeria,  new  government  in  Morocco). 
As  for  horizontal  cooperation,  the  decentralized  programmes,  which  are 
local  authorities, 
to  meet  actual  needs  expressed  by 
designed 
universities  and  the  media,  had  far-reaching  effects. 

4.  However,  1994  will  be  remembered  as  the  year  of  great  changes  in 
EU's  policy  vis-à-vis  the  Mediterranean.  Since  the  Corfu  European 
Council  and  the  Commission  communication  of  19  October  1994  on 
strengthening  the  EU's  Mediterranean  policy  -  "Establishing  a  Euro-
Mediterranean  partnership"  - whose  main  guidelines  were  adopted  by 
the  Essen  European  Council,  awareness  of  the  importance  for  the  EU 
of  achieving  genuine  partnership  with 
region  h as  grown 
considerably,'  especially  in  consideration  of the  many  challenges  it  will 
be  confronted  with  in  forthcoming  years. 

t h at 

COOPERATION  WITH  THE  MNC 

I. NORTH  MEDITERRANEAN1 

1.  Generalities 

1.  Financial  and technical cooperation  with north Mediterranean  countries continued  in 
1994  when  funds  for  the  last  operations  under  the  third  financial  protocols  with 
Malta  and  Cyprus  were  committed.  The  fourth  protocol  with  Turkey,  adopted  in 
1980,  was  suspended  in  1994. 

2.  In  the  case  of  Cyprus,  it  was  decided  to  allocate  available  funds  from  the  third 
protocol  to  the  Greek  community  for  the  financing  of  a  "European  Institute",  the 
preliminary  work  on  which  is  now  completed. 

3.  As  for  Malta,  efforts  focused  on  monitoring,  and  wherever  possible  speeding  up 

implementation  of  approved  projects. 

4.  The  negotiation  of  fourth  protocols  with  Malta  and  Cyprus  was  the  year's  key 

event;  the  instruments  were  initialled  by  the  parties  in  December  1994. 

2.  Evaluation  bv  country 

21  CYPRUS 

1-  The  first  two  protocols 

Budget funds  under the first two protocols (ECU 26 million) were committed in full  and 
96%  was  disbursed.  EIB's  own  resources  (ECU  48  million)  were  committed  and 
disbursed  in  full. 

2.  The  third  protocol 

ECU  18  million  was  available  from  budget  funds.  New  commitments  for  1994  from 
budget  resources  amounted  to  ECU  2.2  million  and  went  to the  following  projects: 

Cyprus,  Malta  and  Turkey. 

Sector 
(a)  Rural  sector 

(b)  Public  sector 

(c) Industry 

(d)  Environment 

Project 

Description 

Support  for  agricultural 
research  (ECU  265 000) 

Administrative 
cooperation 
(ECU  100 000) 

Survey  of  customs 
procedures  (ECU  102 260) 

Cartography  and  land 
register  (ECU  800 000) 

Boosting  vegetal 
pathology  research  within 
the  Agricultural  Research 
Institute 
Visits  and  seminars  for 
officials  in  the  fields 
covered  by  Community 
law 
Training  in  EU  procedures 
for  central  government 
officials 
Support  for  the 
computerization  of 
Cyprus'  land  register 
Training  of  government 
personnel 
Introduction  of  modern 

Teacher  training  (ECU 
68  000) 
Automation  of  production 
procedures  in  SMEs  (ECU  production  methods, 
computerization  and 
99  700) 
productivity  boosting  in 
SMEs 
Support  for  Cyprus' 
institute  for  quality  control 
and  standardization 

Standardization, 
certification  and  quality 
control  (ECU  474 000) 
Industrial  pollution  control  Survey  of  industrial  waste, 
(ECU  350 000) 

assistance  with  new 
legislation. 

In  addition,  ECU  3.05  million  was  set  aside  to  cover  interest  rate  subsidies  on  EIB 
loans. 

By  the end  of  1994 70% of  budget  funds  had  been  committed,  of  which  88% actually 
disbursed. 

Remaining EIB resources (i.e. ECU 29 million out of ECU 44  million) were committed, 
with  the  opening  of  lines  of  credit  for  operations  in  the  water  supply  and  industrial 
sectors.  Disbursement  had  reached  34% of  the total  as at  31 December  1994. 

The text  of  the  fourth  financial  protocol  (1995-1998) was  initialled  in December  1994. 

3.  Evaluation 

Implementation  of  financial  and  technical  cooperation  continued  in  1994  according  to 
plan.  The  government  authorities  agreed  to improve  certain  administrative  procedures 
which  should  come  on  stream  in  1995  and  make  for  speedier  project  implementation. 
Conversely,  little  progress  was  made  in  the  commitment  of  funds  earmarked  for 
initiatives  bringing  together  the  two  communities,  with  the  exception  of  the  launch  of 
feasibility  studies  for  the  treatment  of  waste  waters  in  Nicosia. 

2.2.  MALTA 

Funds  available  under  the  three  financial  protocols  (1979-1993)  concluded  with  Malta 
were  committed  in  full  (ECU  93.5  million)  by  1 January  1994.  57% of  budget  funds 
(ECU  38.5  million)  and  78% of  EIB  own  resources  (ECU  55  million)  was  disbursed. 

Budget  funds  mostly  went  to infrastructure  projects,  training  initiatives  and to  promote 
local  business,  particularly  in  the  tourist  sector. 

EIB  own  resources  were  mainly  spent  on  infrastructure  (40%),  telecommunications 
(20%),  the  environment  and  drinking-water  supply  projects. 

The  new  financial  protocol  (1995-98)  was  initialled  in December  1994. 

n.  SOUTHERN  AND  EASTERN  MEDITERRANEAN2 

1.  Generalities 

1.  In  1994  new  financial  commitments  under  the  fourth  financial  protocol  with  SEM 
countries  totalled  ECU  574  million,  of  which  ECU  250  million  from  budget  funds 
and  ECU  324  million  from  EIB  own  resources. 

2.  The  sectoral  breakdown  of  financial  cooperation  under  the  last  generation  of 
protocols  has  changed  somewhat.  The  first  three  protocols  had  granted  priority  to 
infrastructure,  agriculture,  rural  development  and  vocational  training.  They  were 
funded  mostly from  budget resources.  Under the fourth  protocol these were rounded 
off  by  ancillary  measures  and  economic  reforms  launched  by  a  number  of  SEM 
countries. 

3.  Of the funds  put at the disposal  of SEM countries by the New Mediterranean  Policy 

The  Southern  and  Eastern  Mediterranean  region  covers  the  Maghreb  (Algeria, 
Morocco  and Tunisia) and the Mashreq  (Egypt, Israel, Jordan, Lebanon  and Syria). 

to back up economic reform,  ECU  300 million  was allotted to structural  adjustment 
programmes.  Additional  funds  from  the  4th  financial  protocol  rounded  up  the 
amount. 

In  addition,  ECU  80  million  from  budget  funds  under  the  4th  protocol  was 
earmarked  as risk capital3 (only ECU  31  million under the 3rd protocol).  Morocco, 
Egypt  and  Jordan  began  to  draw  funds  from  their  shares  in  1994  for  a  total  of 
ECU  28  million.  Tunisia  had  already  drawn  ECU  7  million  in  1993,  whereas 
Algeria,  Lebanon  and  Syria  have  not  yet  availed  themselves  of  the  facility. 

At the end of  1994 the picture was as follows: the overall commitment rate for  funds 
under  the  first  three  protocols  (budget  and  EIB  own  resources)  was  96.5%;  for  the 
fourth  protocol  it  was  60%,  with  commitments  for  Morocco,  Tunisia  and  Jordan 
taking  the  lead.  Only  Syria  was  lagging  behind  with  a commitment  rate  of  3% on 
fourth  protocol funds, but the delay can be explained by the late start of the third and 
fourth  protocols. 

2.  Evaluation  bv  country 

2.1.  ALGERIA 

1.  The  first  three  protocols 

MA  G H  REB 

Of  the  budget  funds  allocated  under  the  first  three  protocols  (ECLT  144  million), 88% 
was  committed  and  49%  disbursed. 
EIB  own  resources  (ECU  360  million)  were  committed  in  full  and  58%  actually 
disbursed. 

2.  The  fourth  protocol 

Budget  funds  allocated  under  the  fourth  protocol  (ECU  70  million)  were  concentrated 
on  a  small  number  of  operations  and  sectors,  namely  rural  development,  housing  and 
economic  infrastructure. 

Owing to the economic and political situation, commitments from  budget funds  in  1994 
were very limited: ECU  0.75  million was committed for a preliminary  study for a World 
Bank  agricultural  programme  (ASAL  - agricultural  sector  adjustment  loan). 

In  addition  to  risk  capital,  MNC  have  qualified  for  ECIP  funds  and  a  total  of 
ECU  8.75  million  from  that  instrument  has  been  committed  in  1994. 

No  operation  could  be  launched  using  risk  capital  (amount  earmarked  :  ECU  18 
million). 

At the end of  1994 64% (of the ECU  280  million total) of EIB own resources had been 
committed,  in accordance  with  programming  guidelines, to fund  transport  infrastructure 
and  water  supply  operations. 

By  the  same  date  66%  of  budget  funds  had  been  committed,  and  33%  actually 
disbursed.  64% of  EIB  own  resources  had  been  committed  and  8%  disbursed. 

3. 

Commentary 

The political  situation  in Algeria  has prevented  any  substantial  progress  in  Community 
cooperation  during  the  past  year.  Delays  accumulated  in  implementing  the  protocols 
have  resulted  in  some  projects  due  to  be  funded  under  the  first  three  protocols  being 
abandoned  and  other  projects  being  retargeted.  Similarly,  in  view  of  the  difficulties 
encountered  in  implementing  projects  already  approved  and  assessing  new  projects, 
utilisation  of  the  balance  from  the  fourth  protocol  (ECU  124  million  out  of  a  total 
ECU  350  million)  could  prove  problematic  in  the  short  term. 

2.2  MOROCCO 

1.  The  first  three  protocols 

Over  99% of  budget  funds  (ECU  356 million)  was  committed  and  84% paid  out. 

Loans  from  EIB  own  resources  (ECU  297  million)  were  committed  in  full  and  78% 
actually  disbursed. 

2.  The  fourth  protocol 

Out  of  a total  of  ECU  218  million  in  budget  funds,  ECU  112 million  was  allocated 
to  the  following  projects: 

Sector 
(a) Infrastructure 

(b)  Rural  development 

Description 

Project 
Drinking  water  supply  and  The  project  will  bring 
sanitation  (ECU  11 
million) 
Improvements  to farmland  Construction  of  irrigation 
in  Haouz 
(ECU  21.5  million) 

drinking  water  to  19 rural 
centres 

Support  to  local 
agricultural  credit  funds 
(ECU  16,4 million) 

Support  for  the 
Agricultural  Development 
Fund  (ECU  50 million) 

(c)  Scientific  cooperation  Development  of  remote 
sensing  (ECU  4  million) 

(d)  Health 

Support  for  mother  and 
newborn  child  health 
(ECU  9 million) 

systems  and  technical 
assistance  for  the  Office 
Mise  en  Valeur  Agricole 
of  the Haouz  region 
The  project  will 
strengthen  local  credit 
funds  enabling  them  to 
grant  loans  to 
smallholders 
The  project  will  put  at 
the  Fund's  disposal  budget 
credits  enabling  it  to  grant 
subsidies  to  smallholders 
implementing  improved 
techniques 
The  project  comprises: 
-  an  operation  to  monitor 
vegetation  on  land,  sea 
and  forest  conditions 

-  specialized  TA, 

training,  supply  of 
equipment 

The  project  seeks  to 
improve  mother  and  child 
welfare  services  through 
training  programmes, 
improved  facilities  and 
more  effective 
management 

In  addition,  80%  of  risk  capital  (ECU  20  million)  was  committed  to  fund  projects 
undertaken by Moroccan small and medium-sized undertakings, preferably  in partnership 
with  European  business. 

Loans  from  EIB  own  resources  (ECU  220 million)  were  allocated  to  agricultural 
initiatives  (improvements  and credit) and infrastructure  (electricity  and water).  Projects 
currently  being  considered  should  lead  to  funds  being  committed  in  full  in  1995, with 

14% earmarked  for  a line  of  credit  to  assist  the  industrial  sector. 

By  the  end  of  1994,  72%  of  budget  funds  had  been  committed  and  16%  actually 
disbursed.  68% of  EIB  own  resources  had  been  committed  and  12% paid  out. 

3.  Commentary 

By  and  large, implementation  of  the financial  protocols  produced  good results  in  1994. 

While  the  rate  of  commitment  was  good,  the  payment  level  was  low.  In  the  main, 
delays  can  be  put  down  to  successive  changes  of  government  which  have  resulted  in 
three  different  Finance  ministers  (acting  as  national  authorizing  officer)  occupying  the 
post over the 16-month period between November  1993 and February  1995.  In addition, 
the low level  of payments  reflects  the fact  that certain  invitations  to tender produced  no 
results  (Faculty  of  Science  and Technology,  Scientific  Research). 

2.3.  TUNISIA 

1.  The  first  three  financial  protocols 

Budget  funds  granted  under  the  first  three  financial  protocols  (ECU  208  million)  were 
committed  in  full  and  89% was  disbursed. 

EIB  own-resources  loans  (ECU  251  million) were  also committed  in full  and  87% was 
actually  disbursed. 

2.  The  fourth  protocol 

Budget  funds  granted  in  1994  amounted  to  ECU  13  million  out  of  a  total  of 
ECU  116 million,  and  went  to  fund  the  following  projects: 

Sector 
(a)  Rural  development 

Project 
Rural  development  of 
Sejnane-Stage  2 
(ECU  5 million) 

Hill-side  dams 
(ECU  3 million) 

Description 
The  aim  is  to  stabilize 
stock  farmers'  income, 
strengthen  the  existing 
stock  farmers' 
organization  and  teach 
them  sustainable  land 
management  techniques  to 
ensure  that  pastures  and 
semi-intensive  stock 
farming  are  preserved 
Construction  of  water 
reservoirs  (three  dams) 
for  various  purposes: 
irrigation,  replenishment 
of  ground  water  tables 
and  protection  against 
floods 

(b)  Industry 

T.A.  for  promoting  quality  The  project  seeks  to 
assurance 
(ECU  5 million) 

implement  a number  of 
initiatives  to train  workers 
and  raise  their  awareness 
in  Tunisian 
administrations  and 
institutions,  and  provide 
training  and  technical 
assistance  for 
implementing  a quality 
assurance  and 
infrastructure 
development  scheme 

Of the risk capital (ECU  15 million) administered by the EIB, 47% had been  committed, 
and the balance  should be taken  up in  1995.  The funds  will  strengthen  the capital  base 
of  Tunisian  undertakings  and  will  be  channelled  through  a  number  of  local  financial 
institutions. 

As  regards  loans  granted  by  the  EIB  from  own  resources,  amounting  to  ECU 
168 million,  94% had  been  committed  (23% in  1994)  as  follows: 

-  49%  for  infrastructure  of  economic  significance  (availability  of  water  resources  and 

means  of  communication); 

10 

-  41% for  industry  (lines  of  credit  and  establishment  of  business  parks)  and  tourism 

(lines  of  credit). 

By  the  end  of  1994,  65%  of  budget  funds  had  been  committed,  and  61% disbursed. 
94%  of  EIB  own  resources  had  been  committed  with  16% disbursed. 

3.  Commentary 

Overall,  implementation  of  the  financial  protocols  concluded  with  Tunisia  is  working 
well  in  terms  of  both  commitments  and  payments. 

The  Tunisian  administration  and  the  agencies  entrusted  with  implementation  of  the 
projects  funded  under  the  protocols  have  all  shown  remarkable  technical  and  financial 
capacities.  Likewise,  the  new  projects  are  usually  backed  by  excellent  supporting 
documentation. 

Projects being prepared at the end of  1994 in agriculture and economic development will 
enable  funds  under  the  fourth  protocol  to  be  committed  virtually  in  full  by  the  end  of 
1995. 

MASHREQ 

2.4.  EGYPT 

1.  The  first  three  protocols 

Of  the  available  budget  funds  (ECU  403  million),  98%  was  committed  and  71% 
disbursed.  EIB  own  resources  were  committed  almost  in  full  (99%)  and  81%  was 
disbursed. 

2.  The  fourth  protocol 

ECU  72.7  million  of  budget  funds  totalling  ECU  258  million  was  allocated  in  1994 to 
the  following  projects: 

ii 

Sector 
(a)  Agricultural 
development 

Project 
Veterinary  services 
programme 
(ECU  20  million) 

(b)  Environment, 

population  issues 

Development  project  for 
the  Protectorate  of  St. 
Catherine  (ECU  6 million) 

(c) Economic  reform 

Support  for  a family 
planning  programme  in 
Upper Egypt 
(ECU  10 million) 
Reform  of  the  banking 
sector.  Assistance  to the 
Central  Bank  of  Egypt 
(ECU  11.7  million) 

Description 
Assistance  to  the 
Egyptian  government 
(credit  programme, 
training,  drafting  new 
legislation) 
Programme  to  protect  the 
environment  and  tourist 
sites  in  the  region  of  the 
Monastery  of  St. 
Catherine 
Supply  of  contraceptives, 
technical  assistance  and 
training 

The  project  offers 
technical  assistance  and 
training  to  improve  the 
efficiency  of  Egypt's 
Central  Bank 

Programme  to  develop  the  Quality  improvement, 
marketing  techniques, 
private  sector 
investment  promotion 
(ECU  25  million) 

In addition, ECU  8.8  million  in budget funds  were spent on interest rate subsidy  on two 
EIB  projects:  the  ANSDK  Steel  Plant  and  a CIB  package  loan. 

Of  the  ECU  16 million  risk  capital  managed  by  the  EIB,  38% was  committed. 

EIB  own  resources  (ECU  310  million)  went  to  projects  in  the  power  generation 
(electricity  transmission),  industry  and  SME  sectors. 

By  the end  of  1994 58% of  budget  funds  had  been  committed  with  4% paid  out.  55% 
of  EIB  own  resources  had  been  committed  and  20% actually  disbursed. 

3.  Commentary 

In  1994  financial  and  technical  cooperation  with  Egypt  was  very  positive.  A  good 
number  of  new  projects,  launched  in  1994, were to become  operational  in  the first  half 
of  1995.  Payments  levels  improved  during  the year  as  a result  of  lines  of  credit  being 
opened  (food  industry,  loan  funds  for  agriculture). 

12 

All projects  were carefully  selected to boost the country's economic reform  programme, 
bearing in mind the proposals made under the new partnership agreement currently being 
negotiated.  The Community  undertook to back economic reform  during the transitional 
period, and to provide support for initiatives intended to lighten the social and economic 
burden  of  the  reform  programme,  especially  among  the  underprivileged. 

2.5.  ISRAEL4 

1.  The  first  three  protocols 

EIB  funds  (ECU  133 million)  were  committed  in  full  and  95%  was  actually  paid  out. 

2.  The  fourth  protocol 

Out of  a total of ECU  82 million, ECU  32 million had already  been committed  in  1993 
as  package  loans  to  the  Israeli  development  bank  to promote  small  and  medium-sized 
businesses,  and  in  1994  ECU  25  million  was  allocated  to  the  building  of  a  sewage 
treatment  plant  in  Sorek. 

3.  Commentary 

In  view  of  its  level  of  development,  Israel  only  qualifies  for  EIB  loans  from  own 
resources.  Although  successful,  their  impact  on  the  Israeli  economy  as  a  whole  is 
obviously  limited. 

2.6.  JORDAN 

1.  The  first  three  protocols 

ECU  85  million  in  budget  funds  was  committed  in  full  and  80%  disbursed. 

EIB loans totalled ECU  128 million, of which ECU  118 million from own resources and 
ECU  10 million  as  special  loans.  The  amount  was  committed  and  disbursed  in  full. 

2.  The  fourth  protocol 

ECU  4.1  million 
ECU  46  million,  and  went  to  fund  the  following  projects: 

in  budget  funds  was  committed 

in  1994,  out  of  a  total  of 

EIB  loans  only. 

13 

Sector 

(a)  Infrastructure 

(b)  Training 

Project 

Description 

Study  for  Aqaba  Railway  Study  on  modernization  of 
C o r p o r a t i on 
(ECU  0.25  million) 
Teacher  training 
(ECU  3.9  million) 

Jordan's  railways 

The project  seeks  to  improve 
teaching  quality,  especially  in 
primary  education 

In  addition,  ECU  2.01  million  in  budget  funds  went  to  fund  interest  rate  subsidies  on 
an  EIB  loan  for  a water  supply  project. 

Risk  capital  (ECU  2 million)  was  committed  in  full  to  finance  projects  launched  by 
SMEs.  Funds  were committed  in the form  of  a line of credit opened with the Industrial 
Development  Bank. 

At  the  end  of  1994  the  EIB  had  committed  58%  of  own  resources,  out  of  a  total  of 
ECU  80  million  earmarked  under  the  protocol,  on  transport  infrastructure  and  water 
supply  operations  and  a line  of  credit  for  industry  and  the  tourist  sector. 

At the end of  1994, 85% of fourth  protocol  budget funds  had been committed  with 38% 
disbursed.  Of  EIB  own  resources  58% had  been  committed  but  no  payment  had  been 
made. 

3.  Commentary 

Community  cooperation  made good  progress  in  1994, against  a background  dominated 
by  the  peace  process  and  exploratory  discussions  for  the  negotiation  of  the  EU-Jordan 
partnership  agreement. 
Financial  cooperation  worked  well,  with  the  usual  delays  due  to  the  Jordanian 
authorities'  lack  of  familiarity  with  Community  procedures. 

2.7.  LEBANON 

1.  The  first  three  protocols 

Of  the ECU  46  million  in  budget  funds,  98% had  been  committed  and  51%  disbursed, 
whereas  EIB  own  resources  (ECU  107  million)  had  been  committed  in  full  and  46% 
disbursed. 

14 

2.  The  fourth  protocol 

As  large  amounts  from  budget  funds  had  already  been  committed  by  the  end  of  1993, 
no further  funds  were committed  in  1994.  Instead projects  concerning  in particular  the 
assessment of war damage and technical assistance for the Lebanese administration  were 
launched. 

EIB  own  resources  (ECU  45  million)  were  allocated  to  projects  concerning  the 
rehabilitation  of  power  generation  plants, the  port  of  Beirut  and  water  sanitation. 

By  the  end  of  1994, 71% of  budget  funds  (ECU  24  million)  had  been  committed  with 
12%  disbursed,  and  42% of  EIB  own  resources  had  been  committed  but  no  funds  had 
been  paid  out. 

3.  Commentary 

Lebanon,  which  is entering  a crucial  stage of  its economic  and  social  recovery  after  17 
years  of  war,  has  shown  a remarkable  capacity  for  using  the  aid  granted  to  it. 

The European  Community  was the first  to assist Lebanon  in the reconstruction  process 
and  is  now  the  largest  contributor  to the National  Reconstruction  Plan. 

The  main  problem  encountered  when  implementing  aid  (especially  in the  case  of  EIB-
funded  infrastructure  projects)  is  how  to  rebuild  the  country's  administration  and 
strengthen  its  ability  to  manage  reconstruction  programmes.  Accordingly,  the  project 
providing technical  assistance to the Lebanese authorities, which runs for the three years 
during  which  vital  infrastructure  will  be rehabilitated,  is of  the outmost  importance  for 
the  Lebanese  government. 

2.8.  SYRIA 

1.  The  first  two  financial  protocols  (1977-1991) 

Budget  funds  under  the  first  two  protocols  (ECU  59  million)  were  committed  in  full, 
with  80%  actually  disbursed. 

Own-resources EIB loans (ECU 98  million) were committed in full  with 81%  disbursed. 

2.  The  third  and  fourth  financial  protocols 

These  (totalling  ECU  304  million)  were  adopted  with  some delay  by  Parliament  (entry 
into  force  was  January  1993  and  April  1994 respectively). 

15 

Under the protocols, ECU  17.5  million in budget funds  out of a total of ECU  79  million 
was  committed  in  1994  to  fund  the  following  projects: 

Sector 

Project 

Description 

(a)  Infrastructure 

Development  of  energy 
production 
(ECU  11 million) 

(b)  Economic 
reform 

Banking  sector  support 
programme 
(ECU  4.5  million) 

(c)  Population 

Population  issues  and 
family  planning 
(ECU  2 million) 

The project  aims  to: 
-  improve  management  of  the 

Electricity  Board 

-  train  personnel 
-  conduct  a study  for  a  national 

transmission  centre 
-  prepare  a master  plan 
The  project  aims  to: 
-  modernize  the  Syrian  Bank  of 

Commerce 

-  modernize  the  Syrian  Central 

Bank 

In  the  light  of  the  population 
census, this  project,  cofunded 
with  UNFPA  - the  UN  Fund 
for  Population  Activities  -  aims 
at  strengthening  the  Central 
Statistical  Office  and  conduct 
family  planning  activities 

In  addition,  ECU  12.9  million  had  been  committed  as  interest  rate  subsidies  (PEE 
Transmission). 

EIB  loans  under  the  third  and  fourth  protocols  (ECU  225  million)  had  not  yet  been 
taken  up.  They  were essentially  meant  to fund  improvements  to the power  supply  and 
road  systems  and  the  rural  telephone  network. 

At the end of  1994 94% of budget funds  under the third protocol  (ECU  36  million) had 
been  committed  with  2%  disbursed;  and  12%  had  been  committed  under  the  fourth 
protocol  (ECU  43  million). 

3.  Commentary 

1994  was  a  very  productive  year  from  the  point  of  view  of  EU-Syria  cooperation. 
Following  the adoption  of the fourth  protocol  in December  1993, the Syrian  authorities 
and  the  delegation  have  launched  a  number  of  preparatory  studies,  all  of  which  have 
been  completed,  enabling  budget  funds  under  the  third  and  fourth  protocols  to  be 
committed  almost  in full  (water  supply, banking  system reform,  development  of  energy 

16 

sector,  population  issues)  and  the  remaining  funds  to be  earmarked  for  1995 
(tourism,  business  centre,  management  school). 

These  excellent  results  (notwithstanding  the  rigidity  of the  local  authorities) 
are  the  product  of  Syria's  eagerness  to  open  up  and  modernize  its  economy 
and  the  Union's  resolve  to  show  its  interest  in  resuming  cooperation  with 
Syria,  after  a  long  interruption,  together  with  its  support  for  the  peace 
process. 

Even  though  there  is  still  scope  for  improvement  in  terms  of  speed  of 
implementation,  there  is  evidence  t h at  close and  sustained  contacts  between 
the  partners  (local  government  and  the  Commission)  are  essential  for 
effective  cooperation. 

III.  STRUCTURAL  ADJUSTMENT 

The  special  ECU  300  million  package  to  support  economic  reforms  in  SEM 
countries 
an 
a 
innovation  of the  fourth  generation  of financial  protocols. 

adjustment  programme 

implementing 

structural 

is 

A  limited  share  of  the  means  allocated  under  fourth  financial  protocols 
concluded  with  those  countries  may  be  added  to  the  funds  provided  under 
the  package. 

Community  aid  takes  the  form  of  funding  for  general  or  sectoral  import 
programmes  and  of  technical  assistance  for  macro-economic  and  sectoral 
support  programmes.  The  counterpart  funds  generated  by  the  programmes 
are  used  to  fund  initiatives  to  palliate  the  adverse  effects  of  structural 
adjustment  on  the  population. 

Funds  were  allocated 
measuring  structural  imbalance  and  long-term  development  needs. 

to  eligible  countries  on  the  basis  of  parameters 

By  the  end  of  1994  ECU  220  million  out  of  the  ECU  300  million  package 
had  been  committed  (cf.  table  below) 

EU  SUPPORT 1 

FOR  STRUCTURAL  ADJUSTMENT  IN  SEM 

COUNTRIES 

CO 

MMITMENTS  AS  AT  END  1 9 94 

ALGERIA 
MOROCCO 
TUNISIA 
JORDAN 
RESERVE 

TOTAL 

Special  package 
funds 
55 
60 
40 
65 
80 
300 

Protocol  funds 

TOTAL 

15 
20 
-
15 
-
50 

70 
80 
40 
80 
-
350 

1? 

It  would  be  premature  to  attempt  an  evaluation  of  the  full  effects  of  the  programmes, 
however  it  could  be  said  that  they  have  facilitated  the  implementation  of  economic 
reforms,  reduced  the  need  for  external  funding  and  boosted  expenditure  on  the  most 
disadvantaged  groups  of  population. 

Algeria was granted  a contribution  of ECU  70 million to support  its reform  programme 
in  the  low-cost  housing  sector.  Aid  has  taken  the  form  of  a  sectoral  programme  to 
import  building  materials  needed  to complete  council  dwellings;  counterpart  funds  are 
used  to  fund  operations  to  provide  the  dwellings  with  basic  infrastructure. 
In 
February  1994 the first  ECU  35  million  instalment was paid out. The programme  could 
be  said  to  be  on  track  even  though  implementation  has  been  delayed  mainly  owing  to 
Algeria's  political  situation. 

Morocco  was  granted  ECU  80 million  in  Community  aid  for  its  structural  adjustment 
programme.  Counterpart  funds  are  used  to  boost  budget  expenditure  on  health  and 
education. 
The  first  ECU  50  million  instalment  was  released  in  December  1993. 
Results  have been  more than  satisfactory,  both  from  the point  of  view  of  the  economic 
reforms  and  in  terms  of  budget  support  (loans  made  available  from  counterpart  funds 
have  all  been  taken  up  and  economic  indicators  for  the  target  sectors  have  shown 
sustained  growth  for  the period  concerned).  The  second  instalment  was  released  at the 
end  of  1994. 

Tunisia  was  the  first  country  to  receive  Community  aid  for  its  structural  adjustment 
programme.  The  contribution  was  fully  paid  out  by  31  December  1993.  Counterpart 
funds  go to finance job creation  schemes, which thanks to support from  the  Community 
have been kept going.  Economic reforms  have been implemented  according to plan and 
social  indicators  have  shown  a positive  trend  during  the  same  period. 

As for Jordan. ECU  50  million (of which ECU  40  million under the adjustment  package) 
have gone to support the  1992-93 economic reform  programme.  For the period  1994-95 
(of  which 
the  Community  disbursed 
ECU  25  million  as  part  of  the  adjustment  package)  to  support  the  economic  reform 
programme.  Counterpart  funds  are  spent  on  education  and  health. 

(as  at  December  1994)  ECU  30  million 

18 

COOPERATION  WITH SEM  COUNTRIES  AS  A WHOLE 

In  accordance  with  the  New  Mediterranean  Policy  (NMP),  the  relevant  Council 
Regulation  (EEC  1763/92 of  24/6/92)  and  the  priority  sectors  selected  for  cooperation 
with  SEM  countries  as  a  whole,  operations  already  under  way  were  pursued  in  1994 
and  new  programmes,  funded  from  both  budget  funds  and  EIB  own  resources,  were 
launched. 

I.  BUDGET  FUNDS  : 

Budget  funds  for  the  past  year  totalled  ECU  65  million  in  commitment  appropriations 
and  ECU  44.66  million  in  payment  appropriations. 

Since  the  launch  of  the  NMP  in  July  1992 ECU  165.05 million  have  been  committed 
and  ECU  65.47  million  disbursed,  i.e. 40% of  the  amount  committed. 

As  at  31  December  1994  the  projects,  programmes  and  activities  funded  from 
Commission  budget  funds  (see annexed  list) could  be grouped  by priority  area as  show 
below: 

Environment 
Decentralized  cooperation 
Population  issues 
Culture  - Communication 
Training  - Education 
Peace  process 
Risk  capital 
Microprojects 

22% 
48% 
6% 
2% 
5% 
3% 
5% 
9% 

Between  1 January  and  31  December  1994 funds  were  allocated  as  follows: 

Environment 
ECU  6.36  million  in  interest  rate  subsidies  for  the  second  stage  of  the  EIB  project 
"Sanitation  for  coastal  towns  in  Tunisia". 

Decentralized cooperation5 
Following  the  successful  completion  of  the  pilot  phase,  the  following  activities  were 
confirmed  and  expanded: 

Activities  launched  in  1993  under  the  "Med  Invest"  programme  (ECU  10 million^ 
continued in  1994.  Med Invest supports cooperation between small and  medium-sized 
enterprises  and  the EC. 

19 

Med  Urbs 

Med  Campus 

Med  Media 

(ECU  8.9  million)  support  for  cooperation  between  local 
authorities  in  SEM  countries  and  the EC 

(ECU  8.9  million)  support  for  cooperation  between  universities 
in  SEM  countries  and  the EC 

(ECU  6.1 million)  support  for  the  media  in  SEM  countries  in 
the EC 

Med  Avicenne 

(ECU  7.39  million)  support  for  research  institutes  in  SEM 
countries  and  the EC 

All these programmes essentially aim, through the establishment of cooperation networks 
between development  agents, to create or strengthen civil society links not only between 
the Community  and  its  Southern  and Eastern  Mediterranean  partners, but  also  between 
the partners  themselves. 

Regional  cooperation 
The  Commission  approved  a  project  to  establish  a  Euro-Arab  Management  School 
(ECU  8.3  million)  which will be the first  institute jointly  set up as part of official  Euro-
Arab relations.  The School, based in Granada, will offer  a comprehensive  management 
training  programme  in  Arab  countries  and  at  the  same  time  will  train  high-level  Arab 
and  European  managers  in  Europe. 

In  addition,  a large number  of  ad-hoc  initiatives  (totalling  ECU  4.5  million)  have been 
launched  with  a  view  to  encouraging  the  peace  process,  notably  an  economic 
development  programme based on partnership between Europe and the Middle East and 
particularly  aimed  at  SMEs. 

Mention  should  be  made  of  some  60  micro-projects  (ECU  3.7  million)  comprising 
technical  assistance, surveys, trade promotion  and training (including seminars, debates, 
meetings  and  publications). 

II.  EIB  OWN  RESOURCES 

As  at end  of  December  1994 nine non-protocol  operations  had  been  approved  totalling 
ECU  612  million  out  of  the total  ECU  1800 million  made  available. 

The  following  initiatives  were  added  to the  four  already  approved  in  1992  and  1993. 

Environment:  three  loans  (qualifying  for  a 3% interest-rate  subsidy): 

(a)  "Sorek  Sewage  Treatment"  (ECU  10 million)  -  construction  of  a  sewage 

treatment  plant  eight  km.  west  of Jerusalem  and connections  to  sewers; 

20 

(b)  "Antalya  Sewerage"  (ECU  35 million)  -  construction  of  a  sewage  system  and 

sewage  treatment  plant  in  Antalya; 

(c)  "Sanitation  for  coastal  towns  in Tunisia"  (ECU  25  million,  stage  II)  -  funding 
for  the  extension  and  construction  of  two  sewage  treatment  plants  (Greater 
Tunis  and Médénine)  and upgrading of  sewage systems  in the towns  of  Menzel 
Bourguiba,  Sousse, Monastir,  Kelibia,  M'Saken  and  Médénine. 

A i rpo it i nfras true hire : ECU  80 million was granted for the construction/enlargement 
of  two  new  runways,  a  passenger  terminal  and  annexed  public  and  technical 
facilities  at  Beirut  international  airport  (Lebanon). 

Lastly, an ECU  80  million loan went to fund  electricity transfer between the EC and 
Morocco.  The  project  consists  in  the  extension  of  the  European  grid  to  Morocco 
via  cables  30 km.  long  across  the  Straits  of  Gibraltar  and  the  improvement  of  the 
Moroccan  national  grid  system. 

21 

CONCLUSION 

Overall  financial  and  technical  cooperation  with  Mediterranean  non-member 
countries 
in  1994  gave  positive  results,  despite  the political  uncertainties  which  continued  to  affect 
cooperation  adversely,  particularly  in A Igeria  . 

Most  encouraging 
programmes. 
various  partners  in  civil  society  as  agents  of  cooperation  with  the  MNC. 

cooperation 
that  they  fulfil  a  need  and  point  at  the  importance  of  the 

is  the  success  encountered  by  several  decentralized 

It  is  evident 

22 

List of Annexes 

1.  Financial implementation  of protocols 

2.  Sectoral  implementation  of protocols 

North  Mediterranean 
Souther and Eastern  Mediterranean 

3.  Cooperation  with MNC as a whole 

Budget  funds 
EIB 

23 

TOTAL FINANCIAL  IMPLEMENTATION OF THE FIRST THREE PROTOCOLS 

BUDGET 

EIB 

TOTAL PROTOCOL 

1978-1991 

TOTAL 

Commitments 

Payments 

TOTAL 

Commitments 

Payments 

TOTAL 

Payments 

Commitments 
Amount 
130,6 
93,5 
705 
929,1 

% Amount 
99,1 
96% 
65 
100% 
100% 
705 
99%  869,1 

486 
651 
458 
1595 

96% 
100% 
100% 
99% 

269 
529 
403 
1201 

885 
203 
152 
191 
1431 
133 
1564 
3159 
4088,1 

99% 
100% 
99% 
63% 
92% 
100% 

674 
186 
72 
127 
1059 
127 
1186 
2387 
96% 
96%  3256,1 

% 
76% 
70% 
100% 
94% 

55% 
81% 
88% 
75% 

76% 
92% 
47% 
66% 
74% 
95% 

76% 
80% 

Cyprus 
Malta 
Turkey 
s/t Northern Med. 

Algeria 
Morocco 
Tunisia 
s/t  Maghreb 

Egypt 
Jordan 
Lebanon 
Syria 
s/t  Mashreq 
Israel 
s/t Mashreq & Isr. 
s/t Maghr. & Mash. 
s/t  Med 

%  Amount 

Amount 
38,6 
38,5 
590 
672,5  667,1 

44 
38,5 
590 

144 
356 
208 
708 

403 
85 
46 
95 
629 

126 
354 
208 
688 

393 
85 
45 
93 
616 

88% 
100% 
100% 
99% 

88% 
99% 
100% 
97% 

98% 
100% 
98% 
98% 
98% 

36,1 
22 
590 
648,1 

62 
297 
186 
545 

% 
94% 
57% 
100% 
97% 

49% 
84% 
89% 
79% 

280  71% 
68 
80% 
23  51% 
52% 
48 
68% 
419 

1337 

1304 
2009,5  4579,1 

98% 
228% 

964 
3540,1 

74% 
77% 

Amount 
100% 
92 
100% 
55 
115  100% 
262  100% 

% 
%Amoun1 
68% 
63 
43 
78% 
115  100% 
84% 
221 

92 
55 
115 
262 

360 
297 
250 
907 

492 
118 
107 
208 
925 
133 
1058 
1965 
2227 

360  100% 
297 
100% 
250  100% 
100% 
907 

207 
232 
217 
656 

394 
492  100% 
118 
118 
100% 
49 
107  100% 
79 
47% 
98 
640 
815 
88% 
127 
133  100% 
90% 
948 
767 
94%  1423 
1855 
298%  5130 
6642 

58% 
78% 
87% 
72% 

80% 
100% 
46% 
81% 
79% 
95% 
81% 
77% 
77% 

136 
93,5 
705 
934,5 

504 
653 
458 
1615 

895 
203 
153 
303 
1554 
133 
1687 
3302 
4236,5 

-C 

1) Commitments/total.  2) Payments/commitments inci. ongoing commitments. 

FINANCIAL IMPLEMENTATION OF THE FOURTH PROTOCOL 

1991-1996 

TOTAL 

Commitments 

Payments 

TOTAL 

Commitments 

Payments 

TOTAL 

Commitments 

Payments 

BUDGET 

EIB 

TOTAL PROTOCOL 

Algeria 
Morocco 
Tunisia 
s/t  Maghreb 

Egypt 
Jordan 
Lebanon 
Syria 
s/t  Mashreq 
Israel 
s/t Mashreq & Isr. 

Amount 
46 
157 
75 
278 

70 
218 
116 
404 

%  Amount 
15 
25 
46 
86 

66% 
72% 
.65% 
69% 

% 
33% 
16% 
61% 
31% 

Amount 
180 
150 
158 
488 

280 
220 
168 
668 

% Amounl 
15 
18 
25 
58 

64% 
68% 
94% 
73% 

258 
46 
24 
43 
371 

150 
39 
17 
5 
211 

58% 
85% 
71% 
12% 
57% 

6 
15 
2 

4% 
38% 
12% 

23 

11% 

371 

211 

57% 

23 

11% 

310 
80 
45 
115 
550 
82 
632 

172 
46 
19 

237 
34 
271 

55% 
58% 
42% 
0% 
43% 
41% 
43% 

35 

35 
30 
65 

% 
8% 
12% 
16% 
12% 

20% 
0% 
0% 

15% 
88% 
24% 

Amount 
226 
307 
233 
766 

350 
438 
284 
1072 

% Amount 
30 
43 
71 
144 

65% 
70% 
82% 
71% 

568 
126 
69 
158 
921 
82 
1003 

322 
85 
36 
5 
448 
34 
482 

57% 
67% 
52% 
3% 
49% 
41% 

. 

41 
15 
2 
0 
58 
30 
88 

% 
13% 
14% 
30% 
19% 

13% 
18% 
6% 
0% 
13% 
88% 
18% 

s/t Med. 

775 

489 

63% 

109 

22% 

1300 

759 

58% 

123 

16%| 

2075 

1248 

60% 

232 

19% 

N 

1) Commitments/total.  2) Payments/commitments  inci. ongoing  commitments. 

IMPLEMENTATION OF THE MEDITERRANEAN PROTOCOLS (NORTHERN MED) BY SECTOR 

EEC/NORTHERN MEDITERRANEAN (1978 - 1993) 

SECTOR 
OF ACTIVITY 

PROTOCOL  1 

PROTOCOL 2 

PROTOCOL 3 

TOTAL 

ECU mill. 

% 

ECU mill. 

% 

ECU mill. 

% 

ECU mill. 

% 

(1965/1993) 

1, INFRASTRUCTURE,  WATER 

105,2 

53,9% 

68,9 

30,0% 

127,0 

50,2% 

301,1 

44,4% 

(Collection  and supply) 

2, SANITATION, ENVIRONMENT 

8,5 

4,4% 

10,7 

4,7% 

4,6 

3, ENERGY (Thermal power stations, 

7,6 

3,9% 

77,0 

33,6% 

89,0 

gas and electricity supply) 

4, AGRICULTURE, FISHERIES,  FORESTRY 

10,5 

4,2% 

19,0 

2,8% 

5,  TRADE, INDUSTRY, SERVICES 

62,9 

274% 

15,0 

5,9% 

151,6 

22,4% 

6, SCIENTIFIC COOPERATION 

5,0 

2,2% 

7,  EDUCATION 

73,7 

37,8% 

5,0 

2,2% 

5,0 

0,7% 

5,6 

0,8% 

0,0 

0,0% 

0,6 

0,2% 

00 

8, HEALTH CARE, HOUSING 

9, STRUCTURAL ADJUSTMENT 

(bilateral  component) 

10 COMMITMENT REMAINING 

11,  TOTAL 

195,0 

100% 

229,5 

100% 

6,3 
253,0 

2,5% 
100% 

677,5 

100% 

0,0 

0,0% 

31.12.94 

0,0 

0,0% 

6,3 

0,9% 

IMPLEMENTATION  OF THE MEDITERRANEAN  PROTOCOLS  (NORTHERN MED) BY SECTOR 

EIB-ALL COUNTRIES (1978 - 1994) 

SECTOR 
OF ACTIVITY 

PROTOCOL 1 
(1965/1983) 

PROTOCOL 2 
(1973/1988) 

PROTOCOL 3 
(1979/1993) 

TOTAL 
(1965/1993) 

ECU mill. 

% 

ECU mill. 

% 

ECU mill. 

% 

ECU mill. 

% 

1. INFRASTRUCTURE, 

SANITATION, 

WATER (Collection and supply) 

2.  ENERGY (Thermal power  stations, gas 

and electricity  supply) 

3.  AGRICULTURE, FISHERIES, FORESTRY 

4.  TRADE, INDUSTRY, SERVICES 

5.  GLOBAL LOANS 

(to industry or mixed) 

6.  COMMITMENT REMAINING 
7.  TOTAL 

36 

100% 

44 

64% 

25 

36% 

(D 
40 

10 

27 

80 

2 5% 

6% 

17% 

5 1% 

120 

10 

4 6% 

4% 

27 

105 

10% 

4 0% 

36 

100% 

69 

100% 

157 

100% 

262 

100% 

P*3 

(1) incl. environment - ECU 7 million. 

December  1994 

IMPLEMENTATION  OF THE MEDITERRANEAN  PROTOCOLS (SEM) BY SECTOR 

EEC-ALL COUNTRIES  (1978-1994) 

SECTOR 
OF ACTIVITY 

PROTOCOL 1 
(1978/1981) 
% 

ECU mill. 

PROTOCOL 2 
(1981/1986) 
% 

ECU mill. 

PROTOCOL 3 
(1986/1991) 
% 

ECU mill. 

PROTOCOL 4 
(1991/1996) 
% 

ECU mill. 

TOTAL 
(1978/1996) 

ECU mill. 

% 

1.  INFRASTRUCTURE, 

WATER (Collection and supply) 

2. SANITATION,  ENVIRONMENT 

3.  ENERGY (Thermal power stations, 

gas and electricity  supply) 

4.  AGRICULTURE, FISHERIES, FORESTRY 

5.  TRADE, INDUSTRY,  SERVICES 

6.  SCIENTIFIC  COOPERATION 

7.  EDUCATION (1) 

8.  HEALTH CARE, HOUSING 

9.  STRUCTURAL ADJUSTMENT (2) 

(Bilateral  component) 

10.  COMMITMENT  REMAINING 

85 
0 

60 

5 
0 

35 

34 

20 

61 

1 

0 
0 

6 

28% 
0% 

20% 

2% 
0% 

11% 

11% 

7% 

20% 

0% 

0% 
0% 

2% 

34 
0 

27 

23 
0 

8% 
0% 

7% 

6% 
0% 

44 
0 

56 

39 
0 

7% 
0% 

9% 

6% 
0% 

23 
0 

61 

15 
0 

3% 
0% 

8% 

2% 
0% 

186 
0 

9% 
0% 

204 

10% 

82 
0 

4% 
0% 

145 

35% 

260 

42% 

136 

18% 

576 

27% 

75 

26 

41 

22 

0 
0 

22 

18% 

143 

23% 

169 

22% 

421 

20% 

6% 

10% 

5% 

0% 
0% 

5% 

18 

44 

6 

0 
0 

5 

3% 

7% 

1% 

0% 
0% 

1% 

4 

12 

19 

50 
0 

1% 

2% 

2% 

6% 
0% 

68 

158 

48 

50 
0 

3% 

7% 

2% 

2% 
0% 

286 

37% 

319 

15% 

11.  TOTAL 

307 

100% 

415 

100% 

615 

100% 

775 

100% 

2112 

100% 

(1)  Targeted projects, programmes  and training initiatives are included  under the relevant  sector. 
(2)  Structural adjustment  sector - ECU 300 million, incl. ECU 220 million already  committed. 

IMPLEMENTATION  OF THE MEDITERRANEAN  PROTOCOLS (SEM)  BY SECTOR 

EIB-ALL COUNTRIES  (1978-1994) 

SECTOR 
OF ACTIVITY 

PROTOCOL  1 
(1978/1981) 

PROTOCOL 2 
(1981/1986) 

PROTOCOL 3 
(1986/1991) 

ECU mill. 

% 

ECU mill. 

% 

ECU mill. 

% 

PROTOCOL 4 
(1991/1996) 
% 

ECU mill. 

TOTAL 

(1978/1996) 

ECU mill. 

% 

1. 

INFRASTRUCTURE, 
WATER (Collection  and  supply) 

2.  SANITATION - ENVIRONMENT 

3.  ENERGY (Thermal power  stations, 

gas and  electricity  supply) 

166,5 

46% 

136,5 

23% 

97,5 

10% 

337 

26% 

738 

23% 

0 

97 

0% 

10 

2% 

27% 

201,5 

34% 

129 

188 

13% 

12 

1% 

151 

5% 

19% 

127 

10% 

614 

19% 

4.  AGRICULTURE,  FISHERIES,  FORESTRY 

20,5 

6% 

132 

22% 

284 

28% 

59 

5% 

496 

15% 

5. 

TRADE,  INDUSTRY, SERVICES 

6.  COMMITMENT REMAINING 

78 

0 

22% 

120 

20% 

187,5 

19% 

224 

17% 

610 

19% 

0% 

0 

0% 

117 

12% 

541 

42% 

658 

20% 

7.  TOTAL 

362 

100% 

600 

100% 

1003 

100% 

1300 

100% 

3265 

100% 

SOURCE: EIB quarterly  statistics 

COOPERATION WITH MNC AS A WHOLE 

Budget funds 

(December  1994) 

Sector of activity 

/. 

Environment 

Commitment  (ECU million) 

Interest rate subsidies (EIB loans) 
IMPHOS - cadmium  removal  (phosphate) 

1.1 
1.2. 
1.3.  EIW training 
1.4.  Gaza  - sanitation  project 

19.95 
1.10 
0.53 
15.00 

Total 1 

36.58 (22%) 

Decentralized  cooperation 

2.1.  CIHEAM 
2.2.  MED-URBS 
2.3.  MED-CAMPUS 
2.4.  MED-INVEST 
2.5.  MED-MEDIA 
2.6.  MED-AVICENNE 

3.00 
22.32 
23.30 
10.00 
11.04 
8.82 

Total 2 

78.48 (48%) 

3. 

Regional  cooperation 

3.1  Framework  contract 
3.2  Population 
3.3  EURONEWS 
3.4  Risk capital 
3.5  EURO-ARAB  Management 
3.6 
3.7  Microprojects  * 

"Peace  process"  projects 

0.5 
10.50 
3.00 
9.00 
8.30 
4.45 
14.24 

Total 3 

49.99 (30%) 

GRAND TOTAL 

165.05(100%) 

'Microprojects 

Technical  assistance 
Studies 
Trade  promotion 
Training,  seminars 

3.18(22.3%) 
3.81  (26.8%) 
0.33 (2.3%) 
6.92 (48.6%) 

^>o 

COOPERATION WITH MNC AS A WHOLE 

EIB own resources 

(December  1994) 

Sector of activity 

/. 

Environment 

Commitment  (ECU million) 

1.1  Effluent treatment  and  associated  infrastructure 
(Coastal towns of Tortus and  Latakia  (Syria)) 

40.0 

42.0 
1.2.  Waste water  disposal - coastal towns in Tunisia 
1.3.  Sewage  treatment  plant  at Soreq (Israel) 
10.0 
1.4.  Sewerage  system and  treatment  plant at Antalya  35.0 

Total  1. 

Other 

127.0(21%) 

2.1.  Telecommunications/international  network Jordan  45.0 
80.0 
2.2.  Beirut airport  (Lebanon) 
200.0 
2.3.  Maghreb-Spain  gas pipeline  (Algerian  section) 
2.4.  Telecommunications/international  network  Morocc  80.0 
80.0 
2.5.  EU-Morocco  electricity  supply  link 

Total 2 

485.0 (79%) 

GRAND TOTAL 

612.0 (100%) 

' 3 >1 

ISSN 0254-1475 

COM(96) 151 final 

DOCUMENTS 

EN 

11 

Catalogue number  :  CB-CO-96-161-EN-C 

ISBN 92-78-02414-7 

Office for Official  Publications of the European Communities 

L-298S Luxembourg 

^