REPORT FROM THE COMMISSION TO THE COUNCIL 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 23.8.1995 to 22.2.1996)
Date: 1996-05-21
Institutions: European Commission
Subjects: Asia, Central and Eastern European countries, EIB loan, Latin America, cooperation agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  21.05.1996 
COM(96) 215  final 

REPORT FROM THE COMMISSION  TO THE COUNCIL 
AND  THE EUROPEAN  PARLIAMENT 

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

A. 

central and eastern  European  countries:  Poland,  Hungary,  the Czech  Republic, the 
Slovak  Republic, Romania,  Bulgaria,  Estonia,  Latvia,  Lithuania  and  Albania  (from 
1.7.1995 to  31.12.1995) 

B. 

South Africa  (from  15.6.1995 to 31.12.1995) 

and 

C. 

Latin  American  and  Asian  countries  with  which  the  Community  has  concluded 
cooperation agreements (from  23.8.1995 to 22.2.1996) 

A.  KKI'ORT  FROM  THE  COMMISSION 

TO THK COUNCIL  AND TO  PARLIAMENT 

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

(from  1.7.1995 to 31.12.1995) 

1. 

Introduction 

Council  Decision 93/696/EC  of  13 December  1993  (OJNoL321  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  July to 31 December  1995. 

2. 

EIB  lending 

2.1  During  the  second  half  of  1995  the  Bank  signed  13  loans  financed  out  of  own 
resources  for  a total  of ECU 843 million  in central  and  eastern  Europe.  The  list  of 
operations signed during the second half of  1995 and the description  of the  projects 
are given in the table below. 

2.2  At  31  December  1995  the  loan  contracts  signed  by  the  Bank  under  the  current 

mandate amounted to ECU  1 894 million. 

Operations signed in the period  1  July-31 December  1995 on the basis of the Council Decision of  13 December  1993 (93/696/EC) 

CENTRAL AND EASTERN EUROPE 

COUNTRY 

PROJECT  NAME 

ALBANIA 

EAST-WEST ROAD CORRIDOR 

BULGARIA 

TRANSIT ROADS II 

CZECH Rep. 

CZECH E ROADS 
C'EZ I (POWER PLANT  IMPROVEMENTS) 

-  Tranche A 
-  Tranche B 

HUNGARY 

TELECOMMUNICATIONS  II - Tranche B 

FINANCIAL  SECTOR  Global  Loan 

LITHUANIA 

PORT OF KLAIPEDA 

DATE OF 
SIGNATURE 

08.12.1995 

20.07.1995 

13.12.1995 

14.12.1995 
14.12.1995 
22.11.1995 

22.11.1995 

03.07.1995 

POLAND 

FINANCIAL  SECTOR Global Loan 

07.12.1995 

POLISH RAILWAYS III (PKP III) 

18.12.1995 

SLOVAKIA 

STATE BANK APEX Global Loan II 

18.07.1995 

ROMANIA 

CONSTANTA  PORT  REHABILITATION 

18.12.1995 

HEAT AND POWER REHABILITATION 

31.10.1995 

1  TOTAL 
! 
u_.._„ 

AMOUNT 
SIGNED 
(ECUm) 
24 

60 

60 

100 
100 
50 

150 

14 

100 

40 

50 

35 

60 

843 

DESCRIPTION 

Rehabilitation  and  improvement  of some 94 km  of roads 
along the main  East-West  road  corridor 
Rehabilitation  and  reconstruction  of some 900 km of main 
transit  roads 
Improvements  to the road  network 
Installation  of desulphurization  equipment  at six  thermal 
power  stations 

Expansion  and  modernization  of the  telecommunications 
network 
Financing of industry, infrastructure  and tourism  projects 
through  selected  financial  intermediaries 
Construction  of a small container terminal and  improvements 
to the roll-on/roll-off  terminal 
Financing of industry, infrastructure  and tourism  projects 
through  selected  financial  intermediaries or direct  operations 
Rehabilitation  and  upgrading  of the first section  of the 
Warsaw-Terespol  TEN  railway  line 
Financing of term credit  operations  in industry, tourism  and 
related  services,  and  environmental  protection  and  energy-
saving 
Repair of stonn  and  accident  damage  to and  completion of 
breakwaters 
Rehabilitation  and  modernization  of heat and  power 
production  and  electricity  transmission  and  distribution 
facilities 

B.  REPORT  FROM  THK  COMMISSION 

TO  THK COUNCIL  AND TO  PARLIAMENT 

on the rate of utilization  of European  Investment  Bank 
loans for  projects  in South  Africa 

(from  15.6.1995 to 31.12.1995) 

1. 

Introduction 

Council  Decision  95/207/EC  of  1  June  1995 (OJ  No L  13 1  of  15.6.1995) grants in 
full  the  Community  guarantee  to  the  European  Investment  Bank  (EIB)  against 
losses  under  loans  for  investment  projects  in  South  Africa  for  a  maximum  loan 
ceiling of ECU 300 million over an indicative two-year  period. 

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  15 June to 31 December  1995. 

2. 

EIB lending 

At  31  December  1995  the  EIB  signed  loans  financed  out  of  own  resources  for  a 
total of ECU 45 million in South  Africa. 

The list of operations signed during the  second  half of  1995 and  the description  of 
the projects are given in the table below. 

Operations signed in the period  15 June-31 December  1995 on the basis of the Council Decision of  1  June  1995 (95/207/EC) 

SOUTH AFRICA 

PROJECT NAME 

DATE OF 
SIGNATURE 

AMOUNT 
SIGNED 
(ECUm) 

DESCRIPTION 

Development Bank of Southern  Africa 
Infrastructure  Global Loan 

28.12.1995 

30 

Global loan to provide funds  for financing  of small 
and medium-scale projects  primarily in the water and 
sanitation sectors 

Industrial Development  Corporation 
Global Loan 

21.12.1995 

15 

Global loan to provide funds  for financing  of small 
and medium-scale  projects  in the manufacturing, 
transport,  agro-industry,  tourism and mining sectors 

TOTAL 

45 

(  .  RKPORT FROM  THK  COMMISSION 

TO  THK COUNCIL 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  23.8.1995 to 22.2.1996) 

L 

Introduction 

Council  Decision  93/115/EEC  of  15 February  1993  (OJ  No L 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 
sets  a  limit  of  ECU 250 million  per  year,  for  a  three-year  period 
The  list  of 
eligible 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  23.8.1995 to 22.2.1996. 

2. 

EIB lending 

2.1  During  the  second  half  of  the  last  year  of  the  mandate,  the  EIB  signed  loans 
financed  out  of  own  resources  for  a  total  of  ECU  155 million  in  Argentina,  China 
and Pakistan.  During the same period,  the EIB  Board  of Directors  approved  a loan 
of  ECU 38 million  for  a  project  in  Colombia. 
The  list  of  operations  approved 
and/or  signed  during the  period  and  the  description  of the  projects  are given  in the 
table below. 

2.2 

In all, under the  mandate  which  expired  on  22  February  1996,  the  EIB  signed  loan 
contracts  for  a total  of  ECU  607  million.  Loan  contracts  for  the  remaining  ECU 
143 million will be signed  shortly.  They concern the following  projects 

Country 
Argentina 
Brazil 
Colombia 
Indonesia^ 
Pakistan^ 

Project  name/sector 
"Mercosur road" (transport) 
"CESAN -Spirito  Santo" (water treatment) 
"Eldorado Airport"  (transport) 
"CLIPAN" (leasing company) 
"SAI HYDRO" (energy) 

Total (ECU m) 

45 
40 
38 
8 
12 

(*) 

Allocated  under 
COM(95)507 of 30.10.1995). 

the  "ALA  -Global  authorization"  of  ECU  20m  (see  previous  report, 

Operations  signed or approved by the EIB Board  of Directors between 23 August  1995 and 22 February  1996 (93/115/EEC) 

LATIN AMERICA  AND ASIA 

COUNTRY 

PROJECT  NAME 

ARGENTINA 

AGUAS  ARGENTINAS 

Date of 
approval 
7.11.1995 

Date of 
signature 
1.12.1995 

Amount 
(ECU m) 
70 

AELINCO 

25.7.1995 

14.12.1995 

CHINA 

COLOMBIA 

PAKISTAN 

TOTAL 

PING HU OIL AND GAS 
DEVELOPMENT 
ELDORADO  AIRPORT 

GHAZI-BAROTHA HYDRO 
POWER 

12.12.1995 

18.12.95 

12.12.1995 

12.12.1995 

Not yet 
signed 
14  12.1995 

55 

38 

24 

193 

DESCRIPTION 

New waste-water  collection  and treatment 
facilities in the northern  part of Greater  Buenos 
Aires 

Construction  of facilities  for the treatment  and 
disposal  of hazardous waste in the Province of 
Buenos Aires 
Development  of Ping Hu oil and gas  field. 
transmission  and distribution  of gas 
Build, operate  and transfer  concession for  the 
second  runway at Eldorado  Airport 
Design, engineering work  and construction of 
hydroelectric  power  station  on the river Indus 

ANNEX 

List of developing countries in  Latin America  and  Asia 
with which  the Community  had concluded  cooperation  agreements 
at the time the  EIB was given  the  mandate 

L 

LATIN  AMERICA 

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

2.  ASIA 

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

ISSN 0254-1475 

COM(96) 215  final 

DOCUMENTS 

EN 

11 

Catalogue number  : CB-CO-96-226-EN-C 

ISBN 92-78-04154-8 

Office  for Official Publications of the European Communities 

L-298S Luxembourg 

1