WRITTEN QUESTION P-1530/03 by Giuseppe Di Lello Finuoli (GUE/NGL) to the Commission. Funding by the Italian State and the region of Campania of the programme contract presented by Agrifuturo S.c.a.r.l..
Date: 2003-04-29
Institutions: European Parliament, Provisional data
Subjects: Campania, Italy, State aid, agri-foodstuffs, control of State aid, infringement procedure (EU), investment project, support policy

6.3.2004

EN

Official Journal of the European Union

C 58 E/77

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.

C 58 E/78

Official Journal of the European Union

EN

6.3.2004

It later emerged that the region of Campania had proposed an amendment to point 4.9 of its regional
operational programme in an effort to have the Commission review the limits and prohibitions affecting
funding of the tomato-processing sector.

Without an amendment of this kind, the Agrifuturo programme contract could not be funded, as it was in
breach of the specific provisions of point 4.9, under which plant modernisation resulting in an increase in
processing capacity was not eligible for assistance.

The Commission did not accept the proposed amendment and notified the region of Campania of its
decision in April 2002.

In the light of the above, will the Commission ascertain whether, despite the rejection of the proposed
amendment to point 4.9 of Campania’s regional operational programme, funding for the abovementioned
programme contract has been provided by the Italian State and/or the region of Campania and, if so,
whether infringement proceedings have been initiated?

(1) OJ C 161 E, 10.7.2003, p. 180.

Answer given by Mr Fischler on behalf of the Commission

(5 June 2003)

The Commission requested from the Italian authorities all the data needed to ascertain if funding had been
accorded Agrifuturo.

The Italian authorities recently supplied the same.

No proceedings have yet been initiated as the said data has still to be analysed.

(2004/C 58 E/095)

WRITTEN QUESTION E-1539/03

by Jonas Sjöstedt (GUE/NGL) to the Commission

(7 May 2003)

Subject: EIB loans to Morocco (cid:1) alleged irregularities with risk capital given to SMEs

In a note dated 21 February 2003, Mr Abdelkader Chatri, former ‘Responsable du Contrôle Régionale du
Crédit Agricole du Maroc (CNCA)’ has drawn the attention of the European Investment Bank to serious
irregularities in connection with EIB loans given to the company Biopain.

What steps have been taken by the EIB to follow up these allegations?

Has the EIB informed the European Anti-Fraud Office OLAF about these allegations?

What steps have been taken so far by OLAF?

Answer given by Mrs Schreyer on behalf of the Commission

(30 June 2003)

The Commission has received the following information from EIB:

The European Investment Bank (EIB) received a letter from Mr Chatri, former financial controller of
one of the participating banks in an apex global loan to the Moroccan Government. In that letter,
Mr Chatri complained that proceeds of two sub-loans were not used for the intended purpose. In line
with prevailing procedures, the letter and documents were immediately transmitted to EIB’s Head of