WRITTEN QUESTION P-1529/03 by Rodi Kratsa-Tsagaropoulou (PPE-DE) to the Commission. Granting of loans by the European Investment Bank (EIB) to Greece and Turkey.
Date: 2003-04-29
Institutions: European Parliament, Provisional data
Subjects: EIB loan, Greece, Türkiye, earthquake, exchange of information, project evaluation, project management, use of aid

C 58 E/76

Official Journal of the European Union

EN

6.3.2004

Answer given by Mr Fischler on behalf of the Commission

(4 June 2003)

The possibility of setting up a Community Joint Inspection Structure (JIS) to co-ordinate national and
Community inspection policies and activities and to pool the means and resources for control purposes
was one of the options identified in the Green Paper on ‘The Future of the Common Fisheries Policy
(CFP)’ (1) which was retained in the Communication from the Commission on the reform of the CFP
(‘roadmap’) (2). The Communication to the Council and the Parliament ‘Towards uniform and effective
implementation of the Common Fisheries Policy’ (3) follow up these initiatives.

The last Communication setting out the concept of a JIS will be discussed thoroughly in the Council and
the Parliament. A proposal of the Commission on the setting up of the JIS will be transmitted to the
Council and the Parliament by 2004 after an extended impact study is finalised. In this context, the
Commission could also propose to the Council the seat of this Agency.

(1) COM(2001) 135 final.
(2) COM(2002) 181 final.
(3) COM(2003) 130 final.

(2004/C 58 E/093)

WRITTEN QUESTION P-1529/03

by Rodi Kratsa-Tsagaropoulou (PPE-DE) to the Commission

(29 April 2003)

Subject: Granting of loans by the European Investment Bank (EIB) to Greece and Turkey

On 2 April 2003 the EIB decided to grant EUR 350 million to Turkey to support the private sector and
for the reconstruction of the areas hit by the 1999 earthquake.

Does the Commission have any information from the EIB (tables or studies) regarding which specific
projects the Turkish administration will fund with these loans? Is there an evaluation of the use made of
the first tranche of EUR 150 million in loans to Turkey, granted for the same purpose?

In 1999 Greece was granted a loan of EUR 300 million for the same purpose. Does the Commission have
details on the use made of these loans and the take-up rate? The first envelope which the EIB approved
made provision for the granting of EUR 900 million. What reasons can the Commission give for the delay
in continuing with the granting of these loans, and what plans are there for payment of the remaining
amount?

Answer given by Mr Solbes Mira on behalf of the Commission

(21 May 2003)

In response to the August 1999 earthquake which devastated the Eastern Maramara region of Turkey, at
the request of the Council, a composite Loan Facility of EUR 600 million was approved by the European
Investment Bank’s (EIB) Board of Governors in January 2000, known as the ‘TERRA’ Mandate (the Turkey
Earthquake Rehabilitation and Reconstruction Assistance Mandate). This Mandate is covered by a
Community Guarantee (1).

The EUR 150 million (2)
loan of
EUR 450 million (for Infrastructure and Urban Reconstruction), under what is termed the ‘TERRA 1’. The
first two loan tranches amounting to EUR 300 million were signed in 2000.

loan signed on 2 April 2003 is the third tranche of a total

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Official Journal of the European Union

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loans of EUR 300 million signed in 2000 have been completely
The full amount of the ‘TERRA 1’
allocated and disbursed. This
is a complex, multi-sector, multi-location operation embracing the
reconstruction of over 3 100 housing units, the establishment of business centers for over 5 600 business
premises, support to nearly 25 000 small businesses to replace business assets, emergency highway repairs,
railway repairs, rehabilitation of municipal infrastructure, reconstruction of hospitals. In all, almost 60
distinct investment reconstruction programmes or projects have been individually financed by the EIB.
Implementation of the recently signed final TERRA 1 tranche of EUR 150 million is well underway.

As regards the evaluation, the EIB monitors in cooperation with the World Bank and other donors the use
of the loans closely and receives monthly progress reports. A recent in-depth review by the Bank of the
whole TERRA 1 project confirmed that it is progressing well. The physical completion of the TERRA 1
project and use of the full EUR 450 million is foreseen before the end of 2004. At that time, a Project
Completion Report will be issued.

Known as the ‘TERRA 2’ project, the remaining amount of the overall TERRA Facility (EUR 150 million)
was mounted in parallel and signed in 2000/2001 in the form of global loans, via local banks, to assist
Turkish enterprises (mainly small and medium-sized enterprises (SMEs) in the affected areas) to rebuild and
reconstruct their former businesses. This part of the Mandate is also now progressing well after a slow
start, and it is expected that the amount will also be fully committed by end 2004 in favour of a wide
range of Turkish SMEs in the affected areas.

Following the earthquake of September 1999, Greece and the EIB entered in December 1999 into a
finance contract signed for an amount of EUR 300 million (of an original EUR 900 million approved by
the Board on 7 December 1999). EUR 150 million were disbursed on 15 December 1999. Mid 2002, the
following which date, any undisbursed
disbursement deadline was extended to 31 December 2002,
balance would be automatically annulled. The Progress Report of
the Ministry of Economy dated
November 2002, demonstrated that realised project expenditure was not sufficient to justify further loan
disbursements and it was decided that the remaining credit (EUR 150 million signed but undisbursed and
EUR 600 million not signed) would be cancelled on 31 December 2002.

The principal reasons identified for the delay are:

(cid:1) a higher than expected Community contribution (mainly European Regional Development Fund

(ERDF) grants) allowing for a mere 10 % of investment cost lent by EIB;

(cid:1) the considerable delays in schemes implementation because of lengthy and cumbersome administrative

procedures;

(cid:1) the over-estimated original budget as established by the Ministry of Economy and Finance at appraisal.

(1) Council Decision 2000/24/EC of 22 December 1999 granting a Community guarantee to the European Investment
Bank against losses under loans for projects outside the Community (Central and Eastern Europe, Mediterranean
countries, Latin America and Asia and the Republic of South Africa), OJ L 9, 13.1.2000.

(2) EUR 350 million loans were signed on 2 April 2003, of which EUR 150 million under TERRA 1 and

EUR 200 million for other non-related operations.

(2004/C 58 E/094)

WRITTEN QUESTION P-1530/03

by Giuseppe Di Lello Finuoli (GUE/NGL) to the Commission

(29 April 2003)

Subject: Funding by the Italian State and the region of Campania of the programme contract presented by

Agrifuturo S.c.a.r.l.

In a preliminary reply of 14 February 2003 to my written question of 22 January 2003 (P-0126/03 (1)),
Commissioner Fischler said that he had no knowledge of the investment project submitted by the company
Agrifuturo.