WRITTEN QUESTION E-2906/01 by Markus Ferber (PPE-DE) to the Commission. Alqueva artificial lake, Portugal.
Date: 2001-10-22
Institutions: European Parliament, Provisional data
Subjects: EU financing, Portugal, World Bank, economic policy, engineering structure, environmental impact, hydraulic works, impact study, lake

18.7.2002

EN

Official Journal of the European Communities

C 172 E/19

Secondly, the Honourable Member recalls four explanation factors:

(a)

transfers of income generated by work and by capital to the rest of Spain;

(b) use of the Spanish CPI instead of the CPI of the Autonomous Community;

(c)

transfers of work and capital-generated income abroad;

(d)

the under-registration of the population, which has grown very sharply in recent years.

In commenting on these points, it should be noted that none of the first three issues raised (a, b and c) are
of relevance for regional GDP. While the fourth point could have a bearing on regional GDP per capita, it
must be remembered that Eurostat carries out its duties within a network system, where the data collection
is carried out by National Statistical Offices. In the calculation of regional GDP per capita, account was
taken of regional population figures that were officially submitted to Eurostat by the National Statistical
Office of Spain (INE). The Commission has no reason to have any doubt about these figures. Consequently,
the impact that this ‘GDP miscalculation’ would have on the investments made in the Balearic Islands is
null and void and the Commission will therefore not grant any economic compensation.

Concerning the implementation of other means of calculating the regional wealth, the Commission would
like to point out that from 2002 onwards, data on regional primary income and regional disposable
income at NUTS level 2 will be available for many Member States. Due to exemptions granted to some
Member States, a complete set of these data will not be available before 2005. It is Eurostat’s intention to
provide estimations before that date but currently these data are not available.

(2002/C 172 E/020)

WRITTEN QUESTION E-2906/01

by Markus Ferber (PPE-DE) to the Commission

(22 October 2001)

Subject: Alqueva artificial lake, Portugal

Is it correct that the European Union is contributing half of the EUR 1,25 billion required to finance
Europe’s largest dam project in the Alqueva region of Portugal?

Is it correct that the World Bank rejected an application for funding for this project because of economic
misgivings as long ago as 1975?

Is this investment guaranteed to be economically and ecologically sustainable?

Is it true that more than a million trees have been felled for this artificial lake and that populations of
many native species are endangered?

Answer given by Mr Barnier on behalf of the Commission

(14 December 2001)

The Alentejo region is one of the most disadvantaged in Portugal and in the European Union as a whole. It
is an agricultural region subject
to frequent droughts, resulting in a weak economic fabric and a
population with a poor level of skills.

In order to support the sustainable development of this region, during the 1994-1999 and 2000-2006
programming periods the Structural Funds are part-financing both the Alqueva multi-purpose project and
a whole series of measures designed to diversify the productive fabric and upgrade human resources, while
minimising the impact on the environment. The specific integrated development programme for the
Alqueva for 1994-1999 contains € 193 133 000 and the Alentejo regional Operational Programme for
2000-2006 € 1 088 000 for this purpose.

C 172 E/20

Official Journal of the European Communities

EN

18.7.2002

With regard to the Alqueva multi-purpose project, the dam on the Guadiana river aims to create a
strategic reserve of drinking water for supply to the people of the Alentejo and to ensure energy
production and irrigation in this region. Before the part-financing decision was taken, several studies were
carried out to analyse this project from the economic and environmental points of view. These studies
were carried out either at the request of the Portuguese authorities or at the request of the Commission or
jointly and all agreed on the importance of this project for the development of the Alentejo.

These studies proposed a number of measures to minimise and offset the impact of the project on the
environment. To this end, an environmental management plan was worked out which includes all these
measures as well as those designed to reduce as far as possible the number of trees to be felled in the area
to be flooded. Implementation of this plan, which is now in progress, is monitored by a committee on
which non-governmental environmental organisations are represented.

At the time the part-financing decision was taken, the Commission ensured that this project, and in
particular the measures listed above, complied with Community policy and law on the environment, and it
is continuing to do so throughout the implementation process.

Lastly, the Commission would point out that it is not in a position to comment on the decisions of the
World Bank.

(2002/C 172 E/021)

WRITTEN QUESTION E-2972/01

by Samuli Pohjamo (ELDR) to the Commission

(26 October 2001)

Subject: EU subsidies to banks in candidate countries to compensate for bad debts

Small businesses in the candidate countries have access to the SME Facility. The European Bank for
Reconstruction and Development (EBRD) has selected the banks in the candidate countries which may
support small and medium-sized enterprises under the SME Facility programme. The EBRD funds these
banks to the tune of EUR 125 million.

If the support takes the form of lending at the normal price, which requires the normal guarantees, it will
be of little use. It will not help the firms which need support. Firms which are able to obtain a loan from
banks under normal conditions do not need support. It is important that SMEs in the candidate countries
should be supported, but if normal conditions are applied the take-up of such loans will probably remain
small.

To enable the support to be more effective, it should include interest subsidies and periods of grace (for
normal loans), loans without the requirement for guarantees or for significant loan deposits, and loan
guarantees to other financial institutions.

Is the EU prepared to subsidise the selected banks in the candidate countries in the event of bad debts, and
if so, which banks belong to the system and on what conditions do the banks in the candidate countries
grant loans to businesses?

Answer given by Mr Verheugen on behalf of the Commission

(21 December 2001)

The small and medium-sized enterprise (SME) finance facility programme was launched to provide a
response to the difficulty SMEs in the candidate countries encounter in raising finance. Banks are often
reluctant to lend to them for a number of reasons: the difficulty of assessing the risk, lack of available
collateral, the fact that the costs of administering small loans are proportionally much higher than for
larger loans, and because the banking sector in most candidate countries has suffered very substantial
losses in the past, which has resulted in a more cautious approach to lending.

Under this scheme, the Commission provides support to local banks in the form of grants together with
credit lines from International Financial Intermediaries (IFIs).