WRITTEN QUESTION E-0226/04 by Margrietus van den Berg (PSE) to the Commission. Starch factories and developing countries.
Date: 2004-02-02
Institutions: European Parliament, Provisional data
Subjects: agro-industry, aid policy, business start-up, developing countries, investment aid, investment protection, starch

C 88 E/490

Official Journal of the European Union

EN

8.4.2004

(cid:1) this provision has now been implemented for more than three years in external aid projects. It was
drafted to take into account the interests of the various actors as well as the legal context. The
Commission’s major concern has been to harmonise all its award procedures to make the rules more
transparent and to rationalise management. On the basis of acquired experience, the specific issue of
conflict of interest will be examined during the next revision of the rules. The Commission will, of
course, continue to insist on the principles of fair and equal participation in tenders and contracts and
of transparency, which underlie the contract award procedures in the field of Community external aid.

(1) OJ L 248, 16.9.2002.
(2) OJ L 357, 31.12.2002.
(3) SEC(2003) 387/2.
(4) Decision SEC(1999) 1801/2.

(2004/C 88 E/0502)

WRITTEN QUESTION E-0226/04

by Margrietus van den Berg (PSE) to the Commission

(2 February 2004)

Subject: Starch factories and developing countries

On a working visit to Veendam, I was informed about the possibilities of starch being produced from
cassava in developing countries and about the factors which are hampering progress in that area. In many
developing countries, cassava is frequently a local crop which thrives in the natural environment and is
very suitable for use in the production of starch. Starch is a raw material for the food, textiles and paper
industries. Construction of a starch factory may create a large number of jobs in the rural parts of
developing countries which frequently have to cope with high rates of unemployment. Many jobs can be
created in agriculture, in industry and in small private businesses. It costs between EUR 4 and 5 million to
construct a factory of this nature. That is an affordable investment which can give a real positive boost to
local economies in developing countries. Private investors are interested in participating in the projects
with venture capital, but that is not sufficient for the implementation of the projects. Banks, too, must
participate by granting loans, but they are less cooperative. Participating banks want guarantees for the
amounts that they lend. The provision by the European Union of bank guarantees in respect of such
projects would be very valuable and would encourage the banks to participate. That would result in the
green light being given for considerable small-scale investments with a huge economic spin-off in the local
economy of developing countries.

1.
Is the Commission aware of the possibilities which the starch industry offers with regard to job-
creation in developing countries, and has it already noted the problems that are occurring in respect of
bank guarantees?

Does the Commission acknowledge that the absence of bank guarantees is creating an obstacle to

2.
these valuable projects?

Is the Commission prepared to make a contribution to a possible solution to this problem, for

3.
example by providing bank guarantees?

Answer given by Mr Nielson on behalf of the Commission

(12 March 2004)

The starch industry is generally a capital

intensive sector; however, whilst contributing to the
1.
economic development in the rural areas producing cassava, it will insure some valuable job creation.
While the Commission has no specific experience in the starch industry in developing countries, one of
our main private sector development instruments, the Center for Enterprise Development (CDE), has had
some selected projects in this sector. A contact person at the CDE is M. Touré (Tel. 0032-2-6791905,
e-mail: cto@cde.int).

8.4.2004

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Official Journal of the European Union

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The Commission is aware that

the absence of bank guarantees is often a problem for
2. and 3.
investment projects in African, Caribbean and Pacific countries (ACP). For this and other reasons, the
Commission is currently looking into the possibilities of providing guarantees. There are two ongoing
activities. First, the main instrument for private sector development, the EUR 2,2 billion investment facility
(IF) managed by the European Investment Bank (EIB), has the possibility to provide guarantees to banks. A
recent study of the EIB has confirmed the need to develop local financial markets and the potential use of
guarantees for this purpose. The IF committee will discuss in the coming months if and how bank
guarantees should be granted by the EIB. Second, the Commission, together with the ACP secretariat, is
currently conducting a study on the international guarantee system. The goal of this study is to analyse if
there are needs for guarantee instruments in ACP countries that are not covered by the existing guarantee
system. The Commission will make sure that the issue of bank guarantees is duly taken into account in
this study and that an appropriate follow-up of the recommendations of this study will take place.

(2004/C 88 E/0503)

WRITTEN QUESTION E-0254/04

by Elspeth Attwooll (ELDR) to the Commission

(3 February 2004)

Subject: Global TB Drug Facility

Does the Commission have any intention to make a contribution to the Global TB Drug Facility? If so,
could it give an indication of the amount it would propose?

Answer given by Mr Nielson on behalf of the Commission

(18 March 2004)

The Commission recognises the important role the Global TB Drug Facility (GDF) plays within the Stop TB
partnership to expand access to, and availability of, high-quality TB drugs to facilitate global Directly
Observed Treatment Short-regime (DOTS) expansion to control TB worldwide.

The Commission does not intend to provide direct support to the GDF. Its support is provided as part of
for Action: accelerated action on the human immunodeficiency virus/acquired
the Programme
immunodeficiency syndrome (HIV/AIDS), malaria and tuberculosis in the context of poverty reduction,
which established a broad and coherent Community response for 2001-2006. Community programmed
support through the various financial instruments to confront HIV/AIDS, malaria and tuberculosis, will
total close to EUR 1 200 million (annual average of EUR 300 million) for the period 2003-2006. This
figure includes support to the Global Fund to fight HIV/AIDS, tuberculosis and malaria: the Commission
has disbursed to the fund EUR 120 million for 2002 and has programmed support of EUR 340 million for
years 2003-2006. 17 % of the funds allocated in the initial rounds went to TB control programmes. It is
estimated that these projects will provide Directly Observed Treatment Short-Regime (DOTS) coverage for
2,8 million patients as compared with a coverage of 830 000 in 2000. Furthermore, 46 % of the funds for
all diseases are allocated to providing drugs and commodities. On the other side, almost all of the bilateral
health programmes of the Commission foresee an integrated approach to improving delivery of primary
care; this includes the diagnosis and appropriate treatment of tuberculosis, thus ensuring that anti-TB drugs
are given in an effective way that avoids the emergence of further resistance to these drugs.