EU-Africa Infrastructure Trust Fund : annual report 2007.
Date: 2008-11-25
Institutions: European Investment Bank
Subjects: Africa, EU financial instrument, European Union, activity report, cooperation policy, development aid, energy transport, telecommunications, transport infrastructure, water supply

Annual Report 2007

E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k

E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k

EU-Africa Infrastructure  
Trust Fund

Annual Report 2007

E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k   •   E u r o p e a n   I n v e s t m e n t   B a n k

EU-Africa Infrastructure  
Trust Fund

Annual Report 2007

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Annual Report 2007

Contents

Foreword

Statement by the Chairman of the Executive Committee

Statement by the Co-Chairman of the Steering Committee

Description of the EU-Africa Infrastructure Trust Fund (ITF)

Description of Activities for the Year

➾ Activities of the Executive Committee
➾ Activities of the Project Financiers Group (PFG)
➾ Description of Approved Grant Operations 
➾ Projects that received a Clearance in Principle

Outlook for 2008

Annexes

➾ 1. Audited Financial Statements 
➾ 2. List of Donors and their Representatives
➾ 3. List of Donors and Aggregate Contributions Received (situation as at 31.12.2007)
➾ 4. Project Financiers Group
➾ 5. Approved Grant Operations (situation as at 31.12.2007)
➾ 6. List of eligible African countries
➾ 7. List of Acronyms
➾ 8. Acknowledgement of contributions to the Annual Report

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Foreword

We are pleased to present the first Annual Report of the EU-Africa Infrastructure Trust Fund. This 
truly innovative European initiative is a reflection of efforts by the European Union to intensify its 
aid to Africa, and to contribute to the achievement of the Millennium Development Goals. Africa is 
in serious need of infrastructure in all its facets: transport, energy, water, and telecommunications. 
Infrastructure plays a key role not only in promoting trade and growth but also in improving the  
everyday lives of African women, men and children. 

The  response  offered  by  the  European  Union  was 
adopted at the December 2005 European Council in 
the form of a Strategy for Africa with a strong focus on 
infrastructure. It paved the way for the Lisbon Sum-
mit in December 2007 between Heads of States and 
Governments of Africa and the EU, which endorsed 
the EU-Africa Partnership for Infrastructure to support 
and initiate programmes that facilitate interconnec-
tivity at continental level for the promotion of regional 
integration. The focus is thus clearly on projects of a 
regional or continental nature.

The innovative financial instrument of the EU-Africa 
partnership is this new Trust Fund. It blends grants 
from EU donors with long-term loan finance from the 
EIB and European financiers, in order to increase much 
needed investment in African infrastructure.

The Trust Fund is the first time that the EU Member 
States and the Commission, along with the EIB, have 
joined forces to create a European instrument to sup-
port a real partnership between bilateral and multi-
lateral aid and financing in developing countries. It 
aims  to  achieve  new  synergies  between  European 
donors  and  development  financiers  for  the  benefit 
of Africa. It also aims to achieve much needed coor-
dination of donors and beneficiaries by developing a 
consolidated list of infrastructure projects in a com-
mon pipeline.

Our  African  partners,  who  can  attract  these  invest-
ments, are closely associated with the process in order 
to ensure their ownership as well.

The  Agreement  establishing  the Trust  Fund  was 
signed  in  April  2007  by  10  donors  (the  Commis-
sion  plus  nine  EU  Member  States  1)  and  by  the  EIB 
as Manager of the Fund. The donors’ initial financial 
commitment  totalled  €87  million.  In  the  following 
eight months before the end of 2007, grant funding 
requests for six cross-border infrastructure projects 
were  analysed  and  approved  or  cleared  in  princi-
ple. Those funding requests are expected to result in 
future downstream investments four to five times the 
amount granted by the Trust Fund. Details of these 
grant operations, as well as the governance and activi-
ties of the Trust Fund, are described in the following 
pages of this report.

We  truly  believe  that  the Trust  Fund’s  performance 
over the first eight months of its existence has fulfilled 
expectations. However, given the size of the challenges 
it must help to address, there is much still to do. The 
mobilisation  of  additional  resources  for  Africa  thus 
remains a priority, which we are committed to address-
ing. The Commission, for its part, approved in Decem-
ber 2007 an additional contribution of €49 million and 
the UK has announced that it would join the Trust Fund 
with €10 million in funding. Building upon the exist-

1  Austria,  Belgium,  France, 
Germany,  Greece, 
Italy, 
Luxembourg, Netherlands, 
Spain.

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Annual Report 2007

ing solid base of projects in the early stages of devel-
opment, the Trust Fund will strive in 2008 to increase 
co-investments,  which  complement  the  additional 
contributions received from the donors.

We intend to pay a visit to one or more projects sup-
ported by the Trust Fund in Africa before the presen-
tation of the next annual report of the Trust Fund.

We  also  wish  to  reaffirm  our  resolve  to  contribute 
actively  and  effectively  to  the  reinforced  EU-Africa 
Partnership, and our commitment to making a suc-
cess of the Trust Fund, in close cooperation with the 
donors from the Member States, the bilateral Euro-
pean institutions, and our African partners.

Louis Michel,
Commissioner for Development
And Humanitarian Aid
European Commission as Founding 
Donor

Philippe Maystadt,
President of the European Investment Bank 
Manager of the Trust Fund

 
Annual Report 2007

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Statement by the Chairman of the  
Executive Committee

The EU-Africa Infrastructure Trust Fund was created as a key financing instrument of the EU-Africa 
Infrastructure  Partnership.  This  instrument  blends  grants  from  EU  donors  with  long-term  loan 
finance from the EIB and European financiers, with a view to fostering investment in infrastructure 
in Africa and making up the regional and continental deficits in this sector. African partners and 
institutions are closely associated with the process through the EU-Africa Infrastructure Partnership, 
as ownership by its beneficiaries is a key principle of this initiative.

2008 has started on very promising grounds, as new 
donors 4 will join or are considering joining the Trust 
Fund with substantial contributions, while an existing  
donor 5 has doubled its original pledge.

The added value of the EU-Africa Infrastructure Trust 
Fund is in leveraging funds from different sources and 
realising synergies and complementarities between the 
various donors. Hence it is on the way to becoming a 
recognised player in the sphere of development finance 
assistance, and we are determined to make it an efficient 
and effective instrument for infrastructure in Africa.

The Trust Fund Agreement was legally established in 
April 2007 with its signature by 10 donors (the Com-
mission plus nine EU Member States 2) and by the EIB 
as Manager of the Fund. The Trust Fund became opera-
tional in June 2007, when the minimum required Con-
tribution Certificates had been received.

At the end of 2007, six funding requests had been exam-
ined by the Executive Committee, on a proposal from 
the financiers. Four grants totalling €15.5 million were 
approved and are detailed in the report, while two pro-
posals for €25 million3 in total were given a “clearance 
in  principle”  as  being  eligible  for  funding. The  total 
request for grant operations thus amounted to €40.5 
million, corresponding to about half the initial amount 
of €87 million pledged by the donors in April 2007. The 
projects approved to date by the Fund show a balanced 
geographical coverage, with two approved operations 
in West Africa, and one each in East/Central Africa and 
Southern Africa.

Analysed by sector, two projects are for interconnect-
ing electricity grids between two or more countries, one 
project is for a hydroelectric plant supplying power to 
three countries, and one project is for a telecommuni-
cations network.

In December 2007, the European Commission approved 
an additional contribution from the European Develop-
ment Fund (EDF) to the Trust Fund of €48.7 million. In 
addition, the UK announced that it will join the Trust 
Fund, with a contribution of €10 million.

2  Austria,  Belgium,  France,  Germany,  Greece,  Italy,  Luxembourg, 

Netherlands, Spain.

3 Port de Pointe Noire (€10m); Caprivi Interconnector (€15m).
4  e.g. Portugal joined in early 2008; Sweden and Finland are considering 

joining.

5 Luxembourg.

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Annual Report 2007

Gary Quince,
Chairman of the Executive Committee

Annual Report 2007

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Statement by the Co-Chairman of the  
Steering Committee

Responding to encouraging signals coming from Africa in recent years, and based on a new deter-
mination to significantly step up its efforts, the European Council in December 2005 adopted a new 
EU Strategy for Africa. With this new Strategy, the EU reaffirmed its commitment to peace, stability 
and development and defined a single comprehensive, integrated and long-term framework for its 
relations with the whole of Africa.

The  establishment  of  the  EU-Africa  Partnership  on 
Infrastructure is one of the main actions that underpin 
the EU Strategy for Africa. The European Commission 
believes  that  regional  cooperation  and  integration 
is  the  best  tool  to  increase  security,  to  boost  trade 
and  prosperity  and  to  further  sustainable,  human 
development. 

growth, promote regional trade, foster regional inte-
gration and reduce poverty. The EU will support Africa’s 
efforts to identify and address the missing links in exist-
ing networks, harmonize transport policies, develop 
integrated water management, develop cross-border 
and regional energy infrastructure and promote efforts 
to bridge the digital divide. 

Improving  infrastructure  and  infrastructure-related 
services  will  contribute  to  sustainable  economic 

The EU-Africa Partnership on Infrastructure is a valu-
able addition to the long term support provided by 

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Annual Report 2007

planned activities and, eventually, approving and 
overseeing the implementation of the Partnership 
Annual Work Programme,

In order to achieve the ambitious goals related to the 
effective development of African infrastructure for a 
sustained growth, the Steering Committee of the EU-
Africa Infrastructure Partnership will  work  together 
with other initiatives, actors and instruments, such as 
the Infrastructure Consortium for Africa, the emerging 
donors and the private sector.

Lluis Riera, Co-chairman  
of the Steering Committee 
of the EU-Africa Partnership  
on Infrastructure

the European Union to infrastructure development in 
Africa. It aims to substantially increase EU investment in 
African infrastructure and delivery of transport, energy, 
water  and  ICT  services.  Achieving  these  objectives 
depends also on an improved economic and business 
environment which constitutes the basis to expand 
infrastructure and trade.

Among  other  resources,  €  5.6  billion  from  the  10th 
European Development Fund (EDF, 2008-2013) and an 
innovative financial instrument, the EU-Africa Infrastruc-
ture Trust Fund, will be supporting this Partnership.  

In October 2007, the African Union Commission (AUC) 
and the European Commission launched the EU - Africa 
Partnership on Infrastructure in Addis Ababa.  At the 
same time, a Steering Committee –equally participated 
by European and African members- was established 
with the aim of providing policy and strategic orienta-
tion to the activities of the Infrastructure Partnership.  
Among others, main tasks of the Steering Committee, 
which  is  holding  its  second  meeting  in  November 
2008, comprise:

➾  issuing  policy  guidance  and  providing  strategic 
orientation to the Partnership and its implement-
ing instruments,

➾  serving as a forum for the exchange of information 
and coordination amongst its members as regards 
the needs of infrastructure, the related services and 
the regulatory frameworks as well as ensuring appro-
priate responses to the evolving priorities in Africa,

➾  ensuring  complementarity    between  AU-NEPAD 
Infrastructure Action Plan, the National and Regional 
infrastructure programmes or other infrastructure 
initiatives,

➾  facilitating the mobilisation of resources necessary 

to reach the Partnership goals,

➾  monitoring progress of operations implemented 
by the Partnership, reporting on past, ongoing and 

Annual Report 2007

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Description of the EU-Africa Infrastructure 
Trust Fund (ITF)

The EU-Africa Infrastructure Trust Fund provides financial support by way of grants to eligible infra-
structure projects alongside long-term loan finance made available by eligible financiers. In addi-
tion to the contribution of the Founding Donor, i.e. the European Commission, the Trust Fund may 
receive funding from EU Member States or Member State development finance agencies, as it did in 
its first year of operations, 2007.

The governance and operating structure comprise the 
following levels:

➾  The EU-Africa Infrastructure Partnership Steering Com-
mittee, established in October 2007 in Addis Ababa, will 
provide oversight to the wider EU-Africa Infrastructure 
Partnership and strategic advice to the Executive Com-
mittee of the Trust Fund. It will also receive regular sum-
maries of the Trust Fund’s activities, and will be able to 
comment on the Annual Report. It will not be involved 
in the day-to-day operations of the Trust Fund, nor in the 
selection of grant operations;

➾  The Trust  Fund  Executive  Committee  is  the  gov-
erning  body  of  the Trust  Fund.  It  is  responsible 
for  examining  and  approving  grant  operations, 
ensuring  that  all  terms  and  conditions  of  the 
Agreement and of the financing by the financiers 
are met, reviewing the effectiveness of the activi-
ties financed and ensuring their visibility, approv-
ing  the  Annual  Reports,  and  making  decisions 
on the potential expansion of the pool of donors 
and financiers outside the EU Member States. The 
Executive Committee is assisted by a permanent 
Secretariat, established within the EIB.

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Annual Report 2007

➾  direct grants for project components which have 
substantial  demonstrable  social  or  environmental 
benefits or which can mitigate negative environmen-
tal or social impacts;

➾  insurance  premiums,  i.e.  initial-stage  funding  of 
insurance coverage necessary to launch infrastruc-
ture projects.

Projects may be implemented by public or private enti-
ties, or entities with mixed public-private capital.

➾  The Project Financiers Group (PFG) brings together 
the designated project financiers, i.e. a development 
finance institution, bank, Member State agency or 
public body with international development project 
expertise, nominated by each donor and agreed by 
the Executive Committee. Project financiers are the 
source of the grant operation requests, which they 
examine in accordance with their own methodology, 
prior to submitting them to the Executive Commit-
tee for approval.

➾  The European Investment Bank, as Manager of the 
Trust Fund, is responsible for its financial manage-
ment, accounting and treasury operations.

Eligible  infrastructure  projects  must  fall  within  the 
guiding principles of African ownership and long-term 
project sustainability. They must also be cross-border 
projects or national projects with a regional impact on 
two or more countries, and at least one of the countries 
concerned must be in the list of forty-seven eligible 
African countries (see Annex 4). Four sectors are eligi-
ble for support: (i) energy; (ii) transport (rail, road, air, 
sea and inland waterways); (iii) water; and (iv) informa-
tion technology, including telecommunications infra-
structure where projects financed provide access to a 
service of general economic interest.

Funding support for eligible projects can take four dif-
ferent forms, as follows:

➾  interest rate subsidies: the provision of a lump-sum 
amount to a participating lender (i.e. the financiers 
appointed by the donors) to enable the lender to 
make long-term loan finance available at reduced 
interest  rates. The  subsidies  are  granted  so  as  to 
avoid market distortions;

➾  technical assistance: this includes funding prepara-
tory work for eligible projects, such as environmental 
impact  assessments,  project  supervision  and  tar-
geted capacity building (e.g. reinforcing the technical 
and administrative capacity of local staff in Africa);

Annual Report 2007

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Description of Activities for the Year

➾   Activities of the Executive Committee

The  Executive  Committee  is  the  governing  body  of  the  Trust  Fund,  and  its  members  are  the 
donors, which signed a Contribution Certificate of a minimum of €1 million. The Committee seeks 
to work on the basis of consensus. However, where a vote is required, each decision is subject to 
a double majority rule requirement, i.e. (i) two-thirds of the voting rights, and (ii) two-thirds of 
all voting donors.

The  Committee  met  three  times  in  2007,  first  on  an 
informal basis on 23 April immediately following the 
signature of the Trust Fund Agreement by the ten origi-
nal donors and the EIB as the Manager of the Trust Fund. 
The second meeting took place in June 2007, and the 
third in October 2007. The meetings were well attended, 
with an average participation of about 20 donor repre-
sentatives, or alternates, advisers and observers.

The priority responsibility of the Executive Committee is 
to ensure effective implementation of the Trust Fund’s 
activities, based on the strategic orientations of the Part-
nership Steering Committee. The Committee examines 
and decides upon the funding requests prepared and 
submitted by the financiers, reviews the effectiveness 
of those activities, ensures that lead financiers comply 
in the implementation of the activities with the Trust 
Fund’s rules and that appropriate visibility is given to 
the actions supported by the Trust Fund. The Commit-
tee approved four grant operations between June and 
December 2007, for a total of €15.5 million, while two 
applications6 for €25 million were given a “clearance in 
principle” (i.e. a procedure allowing for an initial favour- 
able decision on the eligibility of the relevant project 
and the envisaged grant operation. Formal approval 
must be subsequently obtained before any funding can 
be released and applied).

The Committee drafted and circulated to its members 
for comments and approval two important texts clari-
fying and detailing the scope and application of the 
Implementation Rules of the Agreement. These texts, 
i.e. the “Rules of Procedure for the Executive Commit-

tee” and the “Criteria for the Assessment of Proposals 
for Grant Operations”, will allow for greater efficiency 
and consistency in the Executive Committee’s decision-
making process. Both texts were finalised and adopted 
at the end of 2007.

In 2008, the Executive Committee will be assisted by 
a Secretariat composed of a full-time Head of Secre-
tariat, a part-time assistant, and a part-time secretary 
recruited and housed by the EIB, the Manager of the 
Trust Fund.

6  One project that had been cleared in principle in 2007 was granted 

final approval in January 2008.

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Annual Report 2007

➾    Activities of the Project Financiers Group 

(PFG)

The PFG consists of the EIB and financial institutions or agencies designated by their donor coun-
tries, which pledged a minimum of €1 million. At the end of the year, they included ADA (Austria), 
AFD (France), KfW (Germany), Lux-Development (Luxembourg), and COFIDES (Spain), as well as 
Greece’s Ministry of Economy and Finance and Italy’s Ministry of Foreign Affairs. The Group is 
expected to expand in 2008, as a result of more donors nominating their financiers, and more 
Member States becoming donors.

are also under way to associate the African Develop-
ment Bank with the PFG.

The PFG met for the first time informally on 19 April 2007 
at the EIB’s premises in Luxembourg, and then on five 
other occasions, which produced substantial results, e.g. 
the identification of projects for a common pipeline; the 
submission of six grant requests; the development of an 
“Operating Methodology” together with “Guidelines for 
Grant Operation Disbursements”, and various templates 
on financial calculations, which foster the harmonisation 
of procedures between the financiers.

At the operational level, the Fund’s Project Fi-nanciers 
Group has thus established itself quickly as an effective 
professional forum, enabling the bilateral development 
finance institutions and the EIB to work together on 
developing a pipeline of regional infrastructure projects 
in Africa. The PFG is already considered to be a notewor-
thy model of enhanced cooperation and increased aid 
effectiveness between European development finan-
ciers at an operational level.

The financiers are the source of project-related fund-
ing requests, which they first analyse, and then sub-
mit to the Executive Committee for approval. Grant 
operation requests must involve one or more mem-
bers of the Project Financiers Group. As a group, the 
financiers form an informal professional entity oper-
ating and cooperating on the basis of transparency, 
and under their own operating methodology. The PFG 
aims to (i) foster dialogue between the financiers for 
concrete and identified infrastructure projects, at an 
early stage and at the financing decision stage, and 
(ii)  facilitate  co-financing  between  them.  Its  remits 
include:

➾  internally reviewing requests for project clearance 

in principle;

➾  examining  project  grant  operation  requests  prior 
to  their  transmission  to  the  Executive  Committee 
for decision;

➾  drawing up an annual consolidated list of grant oper-
ation requests and submitting individual grant opera-
tion requests to the Executive Committee;

➾  issuing an opinion on each grant operation request, 
for  the  information  of  the  Executive  Committee, 
explaining  why  the  project  is  considered  suitable 
for grant support.

The PFG aims to achieve new synergies between the 
European  development  agencies  for  the  ben-efit  of 
Africa; and in accordance with the Agreement moves 

Annual Report 2007

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➾   Description of Approved Grant Operations 

EASSy Cable

(€2.6m grant, approved on 5 July 2007)

The  East  African  Submarine  Cable  System  (EASSy)7 
project consists of a 10 000 km fibre optic submarine 
cable  along  the  East  African  coast,  linking  Sudan  to 
South Africa with landing points in these countries as 
well as in Djibouti, Somalia, Kenya, Tanzania, Madagas-
car, Mozambique, Mayotte and Comoros. EASSy will be 
the first optical fibre connection for these countries to 
the global optical fibre network. EASSy’s planned stretch 
of coastline from Sudan to South Africa is the longest 
expanse of any inhabited continent not being served by 
an international undersea cable system today. Should 
the lack of international connectivity persist, it would 
have a direct negative impact on the economic devel-
opment of the region. EASSy is thus critical for the eco-
nomic development of East and Southern Africa.

will channel their investments through the West Indian 
Ocean Cable Company Ltd (WIOCC), a Special Purpose 
Vehicle (SPV), especially created to exist alongside the 
direct consortium members. 

The main purpose of the hybrid SPV model is to incor-
porate key development policy objectives in WIOCC’s 
shareholder agreement and other project documents.

WIOCC is a new company, selling a new product in sev-
eral markets, and its success is contingent upon being 
able to sell sufficient amounts of cable capacity. In addi-
tion, meeting the development policy objectives will 
also represent a major challenge for the company. The 
hiring of a competent core management team, consist-
ing of a Chief Executive Officer, a Chief Financial Officer 
and Chief Technical Officer is therefore a costly key issue 
for the success of the EASSy project, which the Trust 
Fund will address.

The EASSy cable will be owned and operated by a con-
sortium  of  internationally  licensed  operators,  either 
strictly private or of mixed public-private ownership. 
The  total  cost  of  the  project  is  estimated  at  about  
€160 million8. Some large operators will participate in 
the consortium directly in their own right. Others have 
requested and will receive co-financing from the EIB 
and several development finance institutions (DFIs) – 
African Development Bank (AfDB), Agence française de 
développement (AFD), Kreditanstalt für Wiederaufbau 
(KfW) and International Finance Corporation (IFC), which 

The  cost  of  recruiting  such  a  well-qualified  team  is 
estimated at about €2.6 million for the 18-month con-
struction period, when the risks of the project are the 
greatest, with high operational costs and no revenues. 
The ITF will provide the necessary funding for WIOCC 
to recruit and remunerate the required personnel until 
the cable system becomes operational. 

In  addition to this  grant,  the  EIB,  the  DFIs and  other 
co-financiers are supporting the project in other ways: 
(i) the EIB is currently providing up to €1.25 million in 

7  The East African Submarine 
Cable System -EASSy
8  The contract with the sup-
plier  amounts  to  some  
USD 242m

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Annual Report 2007

funding  for  technical  assistance  under  the  Cotonou 
framework, to help pay for the legal adviser and interim 
management team of the SPV (these funds, however, 
have  to  be  repaid  upon  the  financial  closure  of  the 
project);  (ii)  the  German  Government,  through  KfW, 
has  provided  a  grant  for  the  environmental  impact 
assessment; (iii) IFC has financed the original feasibility 
study together with DBSA and AFD, and has engaged 
a technical expert to assist in reviewing the supply con-
tract and the consortium shareholder agreement; and  
(iv) AfDB has provided a grant for the SPV to hire trans-
action advisers.

Félou Hydropower

(€9.3m  interest  rate  subsidy,  approved  on  10  July 
2007)

The Félou Hydropower project involves the engineer-
ing, construction, commissioning and operation of a 
run-of-river  hydropower  plant  at  the  Félou  falls,  on 
the Senegal River, about 15 km upstream of the town 
of  Kayes,  Mali. The  project  will  be  implemented  as 
part of the development of the hydropower  poten-
tial  of  the  States  belonging  to  the “Organisation 
pour  la  mise  en  valeur  du  fleuve  Sénégal  (OMVS9)”,  
comprising Mali, Mauritania and Senegal, and joined 
by Guinea in 1972.

The main components of the project are the rehabili-
tation  of  an  existing  weir,  and  the  construction  and 
installation of a powerhouse, three bulb turbine/gen-
erator units with a nominal capacity of 21 MWe each, 
a water intake structure, and a substation and over-
head transmission line. The project also includes the 
upgrading  of  access  roads  and  railway  facilities  as 
well as improvements to the existing dispatch centre 
at Manantali and to the telecommunications systems 
operated by Société de Gestion du Barrage de Manan-
tali (SOGEM) and the national utilities of Mali, Maurita-
nia and Senegal.

The project – expected to be completed at the end of 
2010 – has an estimated cost of €102.5m, to be funded 
by three co-investors: (i) the EIB (€33m), (ii) OMVS (€8m), 
and (iii) the World Bank (€61.5m).

The grant from the ITF will be in the form of an inter-
est  rate  subsidy  of  €9.3  million  on  the  EIB  loan. The 
subsidy will enable the project to meet HIPC10 require-
ments, thereby contributing to strong regional devel-
opment  through  the  generation  of  sustainable  and 
clean power.

9  OMVS: The Organisation pour la mise en valeur du fleuve Sénégal is 
an organisation founded in 1972 by Mali, Mauritania and Senegal to 
manage the Senegal River and its river basin. Its aims are to promote 
self-sufficiency in food, to improve the income of the local popula-
tions, and to preserve the natural ecosystems.

10  HIPC: Heavily Indebted Poor Countries, a group of 37 least developed 
but highly indebted countries, which are eligible for special assis-
tance under special programmes from the International Monetary 
Fund (IMF) and the World Bank (WB).

Annual Report 2007

16

Ethiopia-Kenya Interconnector:

(€0.55m grant, approved on 10 July 2007)

The  Ethiopia-Kenya  Power  Systems  Interconnection 
aims to connect the grids of these two East African coun-
tries, thus enabling them to benefit from the respective 
advantages of their own power systems, which have 
strong complementarities: the bulk of Kenya’s genera-
tion is expected to come from geothermal and fuel-fired 
thermal plants, while Ethiopia possesses a large poten-
tial of hydropower, estimated at about 45 000 MW.

Despite the availability of enormous energy resources, 
the two countries have overall electrification rates of less 
than 20%. This low level of access to electricity is a major 
barrier to social and economic development, especially 
in agriculture and industry. The construction of an inter-
connecting power line between the two countries will 
increase reliability of supply by taking advantage of the 
hydro vs. thermal complementarities of the two systems 
as well as the variability of peak demand. In addition, 
the two countries will be able to trade not only energy 
but also reserve capacity, which will provide an incentive 
to coordinate outages so that the total reserve margin 
on the interconnected system can be reduced, result-
ing in savings in capital and operating cost. In the short 
term, the line will also enable Kenya to cover its power 
needs by importing cost-effective power from Ethiopia 

instead of relying on expensive and polluting thermal 
power stations in Kenya. 

A Memorandum of Understanding for the implementa-
tion of the project has already been signed. However, 
before construction can begin, a due diligence process 
needs to be completed to assess and ensure the long-
term  and  sustainable  viability  of  the  project  in  both 
countries. This process includes a fully fledged techni-
cal and financial feasibility study, as well as a detailed 
environmental and social impact assessment, a Resettle-
ment Action Plan, and the choice of the proper organisa-
tional and institutional frameworks for the construction, 
ownership and operation of the interconnector.

The cost of this due diligence process has been esti-
mated at €1.65m, and will be shared by several donors, 
including AFD (€0.15m), KfW on behalf of the German 
Government (€0.20m), AfDB (€0.38m), DBSA (€0.2m), 
and the Ethiopian Electric Power Corporation in con-
junction with Kenya’s Energy Ministry (€0.15m). The ITF 
will cover the funding shortfall of €0.55m.

The  amount  estimated  to  finance  the  whole  project 
ranges from USD 250 to 400m depending on the volt-
age level and the type of electric current (AC/DC). If the 
results of the feasibility study are positive, an additional 
grant from the ITF will be considered, most likely for an 
interest rate subsidy, or the coverage of political risk.

17

Annual Report 2007

West-Africa Power Interconnector

(€3m grant, approved on 16 October 2007)

This €3m grant funding from the Trust Fund will be used 
by the West African Power Pool (WAPP11) to procure the 
services of an international consulting firm to conduct 
the  preparatory  studies12  of  the  planned West  Africa 
Power  Interconnector  project,  which  will  link  power 
grids in Ivory Coast, Liberia, Guinea, and Sierra Leone. 
The WAPP is a young regional institution, which requires 
support to finance the necessary preparatory studies for 
the projects it wants to promote.

The  objective  of  the WAPP  is  to  establish  a  regional 
electricity market in West Africa through the develop-
ment and implementation of key priority infrastructure 
projects that would foster power exchanges between 
the countries in the West African sub-region, and pro-
vide access to affordable energy resources to all Mem-
ber States of the Economic Community of West African 
States (ECOWAS13).

The  interconnection  project  will  consist  of  the  con-
struction  of  approximately  1 100  km  of  high  voltage 
transmission lines, as well as the extension of existing, 
or the construction of new high voltage substations in 
Man (Ivory Coast), Sannequille, Buchanan and Monrovia 
(Liberia), Nzérékore and Linsan (Guinea) and Bumbuna 
(Sierra Leone). The project is critical to the reconstruc-
tion  efforts  currently  under  way  in  the  post-conflict 
countries of Liberia, Sierra Leone and the forest region 
of Guinea. One of WAPP’s priorities is to interconnect 
these countries with the Ivory Coast in order to allow 
mutually  beneficial  power  exchanges  and  a  reliable 
electricity supply fostering economic growth and con-
solidating the fragile peace that has been achieved so 
far in these countries.

The WAPP Secretariat will be task-managing the pro-
curement process and the execution of the prepara-
tory studies for a period of up to 21 months, under 
the supervision of the EIB and KfW. Once the studies are 
completed around mid-June 2009, the WAPP Secretariat 

will work towards completing the financing plan of the 
project, for which the EIB and KfW are potential inves-
tors. The implementation of the investment project, 
the cost of which is estimated at €400m, could take 
up to four years.

A major development impact of the project will be the 
alleviation of energy shortages, which are a recurring 
problem in several West African States and an impedi-
ment to economic development. In turn, this lack of 
economic development is a major contributor to the 
conflicts and political instability that have character-
ised this region in recent years. The project will benefit 
three of the poorest states in the West Africa region and 
enhance cooperation in a region that has been marred 
by dramatic conflicts.

11  WAPP: an organisation created to integrate the national power system 

operations of African countries that are members of ECOWAS.

12  The preparatory studies for this project include: the feasibility study, 
the line survey, the production of maps, plan and profile drawings, 
the environmental and social impact assessment, the environmen-
tal impact statement, the Resettlement Action Plan and the Environ-
mental and Social Management Plan.

13  ECOWAS: Economic Community of West African States: Benin, Burkina 
Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, 
Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.

 
Annual Report 2007

18

➾    Projects that received a Clearance in 

Principle 

Port of Pointe Noire

Caprivi Link Interconnector 

(This project was “cleared in principle” in June 2007 and 
needs to be submitted again to the Executive Commit-
tee. The potential funding request could be €10 million 
as an interest rate subsidy.)

The aim of the project is to help integrate Congo and 
countries  in  the  sub-region  (notably  CAR  and  DRC) 
into international trade, and its objective is to increase 
maritime  traffic  at  Pointe  Noire  on  competitive  and 
financially viable terms of price and quality of services 
(time limits, safety, simplification of procedures) with 
greater involvement of the private sector. The invest-
ment programme could include the strengthening and 
extension of the external seawall; the rehabilitation of 
wharfs, public and access roads; the installation of a  
terminal for containers, and a wood storage zone.

(This project was “cleared in principle” in October 2007, 
and was approved in early 2008 – interest rate subsidy 
of €15 million. Brief summary provided for information 
only. Full details will be included in the Annual Report 
for 2008.)

The Caprivi Link Interconnector project is named after 
Caprivi, one of the thirteen regions of Namibia, a small 
strip  in  the  north-eastern  part  of  the  country,  lying 
between  Angola,  Zambia,  Zimbabwe  and  Botswana. 
Its objective is to provide a 970 km high-voltage inter-
connector between the Namibian, Zambian and Zim-
babwean  power  transmission  networks,  in  order  to 
increase  Namibia’s  access  to  electricity  and  relieve 
congestion in the eastern and southern regions of the 
Southern African Development Community (SADC14).

The total cost of the project – expected to be commis-
sioned in 2010 – is about €300 million, to be co-financed 
by the sponsor Namibia Power (Nampower), as well as by 
the EIB, KfW, and AFD, which will each invest €35 million 
in the project, with the Trust Fund providing €15 million 
in interest rate subsidy (IRS).

14  Southern  African  Development  Community  (SADC):  Angola,  Botswana,  Democratic  Republic  of  Congo,  Lesotho,  Madagascar,  Malawi,  

Mauritius, Mozambique, Namibia, South Africa, Swaziland, United Republic of Tanzania, Zambia, Zimbabwe.

19

Annual Report 2007

Annual Report 2007

20

Outlook for 2008

An  important  undertaking  in  2008  will  be  the  produc-
tion of a monitoring report on the operations of the Trust 
Fund, with a view to evaluating its functioning, progress, 
and  development  impact,  and  suggesting  and  imple-
menting possible improvements. As the project sponsors 
and  local  financiers  have  become  more  astute  in  plan-
ning and using increasingly sophisticated financial prod-
ucts,  the Trust  Fund  will  have  to  keep  up  with  financial 
innovation and flexibility in order to remain an attractive 
and valued source of financing. This will be all the more 
important since the Trust Fund is expected to receive addi-
tional funding in 2008 from the EDF as well as from other  
Member States that have expressed an interest in joining 
the pool of European donors.

Another objective is the establishment of a strong pipe-
line  for  2008  and  beyond,  with  a  well-structured  pri-
oritisation  of  projects  and  good  coordination  with  the 
African  partners,  the  local  offices  or  delegations  of  the 
European  Commission,  the  donors  and  their  financiers. 
The Trust Fund will also strive to keep a sound balance of 
investments between infrastructure sectors and regional 
needs.

Under  the  supervision  of  the  Executive  Committee,  the 
Secretariat  is  planning  to  develop  a  simple  but  effec-
tive  web-based  instrument,  which  should  contribute  to 
greater  visibility  of  the Trust  Fund,  and  provide  a  more 
efficient interface with and between its donors. It should 
also facilitate the management of data and the collection 
and dissemination of information.

21

Annual Report 2007

Annual Report 2007

22

Annexes

1. Audited Financial Statements

2. List of Donors and their Representatives

3. List of Donors and Aggregate Contributions Received (situation as at 31.12.2007)

4. Project Financiers Group

5. Approved Grant Operations (situation as at 31.12.2007)

6. List of eligible African countries

7. List of Acronyms

8. Acknowledgement of contributions to the Annual Report

23

Annual Report 2007

➾   1. Audited Financial Statements

Independent Auditor’s report

To the chairman of the Audit Committee of
EUROPEAN INVESTMENT BANK
Luxembourg

We have audited the accompanying financial statements of the 
EU-AFRICA Infrastructure Trust Fund, which show a loss of EUR 
(951,000) and a total balance sheet of EUR 41,549,000 and which 
comprise the balance sheet as at December 31, 2007, the income 
statement, the statement of changes in equity, the cash flow state-
ment for the period from June 14, 2007 (date of inception) to 
December 31, 2007, and the notes to the financial statements.

Management  Committee’s  responsibility  for  the  financial 
statements

The Management Committee of the European Investment Bank 
is responsible for the preparation and fair presentation of these 
financial statements in accordance with International Finan-
cial Reporting Standards and with the general principles of the 
Directives of the European Union on the annual accounts and 
consolidated accounts of certain type of companies, banks and 
other financial institutions and insurance undertakings. This 
responsibility  includes:  designing,  implementing  and  main-
taining  internal  control  relevant  to  the  preparation  and  fair 
presentation of financial statements that are free from mate-
rial misstatement, whether due to fraud or error; selecting and 
applying appropriate accounting policies; and making account-
ing estimates that are reasonable in the circumstances.

Responsibility of the “Réviseur d’Entreprises”

Our responsibility is to express an opinion on these financial 
statements  based  on  our  audit. We  conducted  our  audit  in 
accordance with International Standards on Auditing as adopted 
by the Luxembourg “Institut des Réviseurs d’Entreprises”. Those 
standards require that we comply with ethical requirements 
and plan and perform the audit to obtain reasonable assur-
ance whether the financial statements are free from material 
misstatement.

Responsibility of the “Réviseur d’Entreprises” - continued

ments. The procedures selected depend on the judgment of the 
“Réviseur d’Entreprises”, including the assessment of the risks of 
material misstatement of the financial statements, whether due 
to fraud or error. In making those risk assessments, the “Réviseur 
d’Entreprises” considers internal control relevant to the entity’s 
preparation and fair presentation of the financial statements in 
order to design audit procedures that are appropriate in the cir-
cumstances, but not for the purpose of expressing an opinion 
on the effectiveness of the entity’s internal control.  

An  audit  also  includes  evaluating  the  appropriateness  of 
accounting policies used and the reasonableness of account-
ing estimates made by the Management Committee, as well as 
evaluating the overall presentation of the financial statements. 
We believe that the audit evidence we have obtained is sufficient 
and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view 
of the financial position of the EU-AFRICA Infrastructure Trust 
Fund as of December 31, 2007, of its financial performance, of its 
changes in equity and of its cash flows for the period from June 
14, 2007 (date of inception) to December 31, 2007 in accord-
ance with International Financial Reporting Standards and with 
the general principles of the Directives of the European Union 
on the annual accounts and consolidated accounts of certain 
types of companies, banks and other financial institutions and 
insurance undertakings.

ERNST & YOUNG
Société anonyme
Réviseur d’entreprises

An audit involves performing procedures to obtain audit evi-
dence about the amounts and disclosures in the financial state-

March 12, 2008

Bernard LHOEST

Annual Report 2007

24

Financial Statements

Income Statement
at December 31, 2007 (in EUR’000)

Interest and similar income

Total operating income

General administrative expenses

Total operating expenses

Net result

Balance sheet
At December 31, 2007 (in EUR’000)

ASSETS

Cash and cash equivalents

Total assets

LIABILITIES AND EQUITY

LIABILITIES

EQUITY

Contributions received

Accumulated deficit

Total Equity

Total Liabilities and equity

The notes refer to the Notes to the Financial Statements.

Note 

Initial Period 
31.12.2007

749

749

(1,700)

(1,700)

(951)

Note

2007

41,549

41,549

42,500

(951)

41,549

41,549

3

25

Annual Report 2007

Statement of changes in equity
(in EUR’000)

At 1 January 2007

Contributions received

Loss for the year

Total income and expense for the year

At 31 December 2007

Cash flow statement
(in EUR’000)

Operating activities

Profit for the financial year

- Interest received

- Operating expenses 

Net cash flows used in operating activities

Financing activities

Paid in by EC / Member States

Net cash flows from / (used in) financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of financial year

Effect of exchange rate changes on cash equivalents

Cash and cash equivalents at end of financial year

Issued  
capital

Retained 
Earnings

Other  
reserves

Total  
equity

42,500

42,500

42,500

(951)

(951)

(951)

42,500

(951)

41,549

41,549

-

-

2007

749

(1,700)

(951)

42,500

42,500

41,549

0

0

41,549

 
 
Annual Report 2007

26

Notes to the financial statements

1. General information

On 9 February 2006, the European Commission and the Euro-
pean Investment Bank signed a Memorandum of Understand-
ing (the “MoU”) to promote jointly the EU-Africa Infrastructure 
Partnership and, in particular, to establish a supporting EU-Af-
rica Infrastructure Trust Fund (the “Trust Fund”).

In accordance with the MoU, the key objective of the Trust Fund 
is to contribute to achieving the strategic objectives of the EU-
Africa Partnership through targeted funding aimed at making 
up the regional and continental deficit in Sub-Saharan infra-
structure. The Trust Fund will contribute to the goals of the EU-
Africa Partnership on Infrastructure by providing financial 
support by way of grants to eligible infrastructure projects 
alongside long-term loan finance made available by eligible 
financiers.

In accordance with the Agreement constituting the implemen-
tation rules of the Trust Fund the activities of the Trust Fund 
started on 14 June 2007. Hence, the Financial Statements as at 
31 December 2007 are the first Financial Statements of the Trust 
Fund.

2. Significant accounting policies

2.1. Basis of preparation

The Trust Fund’s financial statements have been prepared in ac-
cordance with International Financial Reporting Standards (IFRS) 
as adopted by the European Union.

The accounting policies applied are in conformity with the IFRS 
and with the overall principles of the Directive 86/635/EEC of 
the Council of the European Communities of 8 December 1986 
on the annual accounts and consolidated accounts of banks and 
other financial institutions, as amended by Directive 2001/65/
EC of 27 September 2001 and by Directive 2003/51/EC of 18 
June 2003 on the annual and consolidated accounts of certain 
types of companies, banks and other financial institutions and 
insurance undertakings (the “Directives”).

At the closing date, the financial instruments held by the Fund 
concerns only cash deposit which is subject to a very low risk of 
value.

2.2. Significant accounting judgments and estimates

The preparation of financial statements in conformity with 
IFRS requires the use of certain critical accounting estimates. 
It also requires management to exercise its judgment in the 

process of applying the Trust Fund’s accounting policies. The 
areas involving a higher degree of judgment or complexity, 
or areas where assumptions and estimates are significant to 
the financial statements are disclosed.

2.3. Summary of significant accounting policies

The balance sheet represents assets and liabilities in decreasing 
order of liquidity. Assets and liabilities concern exclusively cur-
rent items.

2.3.1. Foreign currency translation

The Trust Fund uses the Euro (EUR) for presenting its financial 
statements, which is also the functional and presentational cur-
rency.

Foreign currency transactions are translated, in accordance with 
IAS 21, at the exchange rate prevailing on the date of the trans-
action. 

Monetary assets and liabilities denominated in currencies other 
than in Euro are translated into Euro at the exchange rate pre-
vailing at the balance sheet date. The gain or loss arising from 
such translation is recorded in the income statement.

Non-monetary items that are measured in terms of historical 
cost in a foreign currency are translated using the exchange 
rates at the dates of the initial transactions. Non-monetary items 
measured at fair value in a foreign currency are translated using 
the exchange rates at the date when the fair value was deter-
mined.

Exchange differences arising on the settlement of transactions 
at rates different from those at the date of the transaction, and 
unrealized foreign exchange differences on unsettled foreign 
currency monetary assets and liabilities, are recognized in the 
income statement.

The elements of the income statement are translated into Euro 
on the basis of the exchange rates prevailing at the end of each 
month.

2.3.2. Cash and cash equivalents

The Trust Fund defines cash equivalents as current accounts or 
short-term deposits with original maturities of three months or 
less. The current account is one account opened in the EIB books 
in the name of the Trust Fund, called “EU-Africa Infrastructure 
Trust Fund Account”.

27

Annual Report 2007

2.3.3. General administrative expenses

For managing the Trust Fund the EIB shall be granted with a 
standard payment equal to 4% (four percent) of the aggregate 
amount of Contributions effectively made available to the Trust 
Fund. This fee is intended to cover in full the cost of managing 
the Trust Fund.

For the year 2007, the management fee paid to the EIB amounts 
to EUR 1,700,000.

2.3.4. Interest income

Under the terms of the Trust Fund and according to the Agree-
ment, the EIB remunerates the cash on the current account.

Interest income are recognised in the income statement for all 
interest bearing instruments on an accrual basis using the ef-
fective interest method based on the actual purchase price in-
cluding direct transaction costs. This is a method of calculating 
the amortised cost of a financial asset and allocating the interest 
income over the relevant period. The effective interest rate is 
the rate that exactly discounts estimated future cash receipts 

through the expected life of the financial instrument to the net 
carrying amount of the financial asset. 

For the year 2007, the interest income received in remuneration of 
the current account opened in EIB books amounts to KEUR 749.

2.3.5. Contributions

In addition to the Founding Donor, any Member State of the 
European Union or any public or private entity sharing the same 
objectives as the Trust Fund may contribute funds in Euro to the 
Trust Fund’s Account.

2.3.6. Taxation

The Protocol on the Privileges and Immunities of the European 
Communities, appended to the Treaty of 8 April 1965 establish-
ing a Single Council and a Single Commission of the European 
Communities, stipulates that the assets, revenues and other 
property of the Institutions of the Union are exempt from all 
direct taxes.

3. Contributions received

Contributions received are detailed below:

EC / Member States

Contribution to The Fund (EURO)

Austria

France

Greece

Italy

Luxembourg

Netherlands

Spain

European Commission

Total

4. Subsequent events

1 000 000

5 000 000

1 000 000

2 500 000

1 000 000

2 000 000

10 000 000

20 000 000

42 500 000

There have been no material post balance sheet events which could require disclosure or adjustment to the 31 Decem-
ber 2007 financial statements.

Annual Report 2007

28

➾   2.  List of Donors and their Representatives

Donor

Donor’s Representative 

Austrian Republic

Mr Martin Lugmayr (martin.lugmayr@ada.gv.at)

European Commission

Mr Gary Quince (gary.quince@ec.europa.eu)

Federal Republic of Germany

Mr Franz Marre (franz.marre@bmz.bund.de)

French Republic

Mr Jean-Marc Bellot (bellotjm@afd.fr)

Grand Duchy of Luxembourg

Ms Nadine Feyder (nadine.feyder@mae.etat.lu)

Hellenic Republic

Mr Panayotis Papanastassiou (p.papanastassiou@rp-grece.be)

Italian Republic

Ms Gabriella Di Gioia (gabriella.digioia@esteri.it)

Kingdom of Belgium

Ms Ariane Meunier (ariane.meunier@minfin.fed.be)

Kingdom of Spain

Ms Maria Ortiz (maria.ortiz@reper.mae.es)

The Netherlands

Mr Jan Van Renselaar (jan-van.renselaar@mnbuza.nl)

Secretariat of the Trust Fund:

Head of Secretariat

Mr Yves de Rosée (y.derosee@eib.org)

Assistant

Secretary

Ms Anja Schorr (a.schorr@eib.org)

Ms Sharon Wraight (s.wraight@eib.org)

29

Annual Report 2007

➾   3.  List of Donors and Aggregate Contributions 

Received (situation as at 31.12.2007)

The following table shows the aggregate contributions actually received from each donor.

Donor* 

Date of  
signature of 
Agreement

Pledged 
contribution 
amount (EUR) 

Contribution amount 
actually received  
(in EUR) 

The Kingdom of Spain

23/04/2007

10 000 000

Luxembourg 
additional contribution**

AFD

European Commission

The Hellenic Republic

Austrian Development Agency

The Italian Republic

The Netherlands

Germany

23/04/2007 

1 000 000 
1 000 000

23/04/2007

5 000 000

23/04/2007

60 000 000

23/04/2007

1 000 000

23/04/2007

1 000 000

23/04/2007

5 000 000

23/04/2007

2 000 000

23/04/2007

1 000 000

5 000 000

5 000 000

1 000 000 

5 000 000

20 000 000

1 000 000

1 000 000

2 500 000

2 000 000

* 

** 

 The UK signed the Instrument of Accession to the Trust Fund on 15.01.2008 with a commitment to contribute EUR 10m, whilst Portugal 
signed the Instrument of Accession to the Trust Fund on 01.02.2008 with a commitment to contribute EUR 1m.
 On 10 December 2007, Luxembourg signed an additional contribution certificate for EUR 1 million. This additional contribution was credited 
to the Trust Fund on 9 January 2008 and is therefore not included in the amount of contributions received as at 31 December 2007.

87 000 000

42 500 000

 
Annual Report 2007

30

➾   4. Project Financiers Group

Country

Financier

Financier’s Representative

Austrian Republic

Austrian Development Bank

Oliver Walter (oliver.walter@oe-eb.at)

The European Union

European Investment Bank

Robert Feige (r.feige@eib.org)

Federal Republic of Germany

Kreditanstalt für Wiederaufbau - KfW

Klaus Gihr (klaus.gihr@kfw.de)

French Republic

Agence française de développement - AFD

Jean-Marc Bellot (bellotjm@afd.fr)

Grand Duchy of Luxembourg

Lux-Development S.A.

Richard Schmid (schmid@lux-development.lu)

Hellenic Republic

Ministry of Economy and Finance

Katherina Alesta (k.alesta@mnec.gr)

Italian Republic

Italian Ministry of Foreign Affairs

Francesco Anania (francesco.anania.est@esteri.it)

Kingdom of Spain

The Netherlands

COFIDES

Fernando Acena (fernando.acena@cofides.es)

To be designated 

Jan Van Renselaar (jan-van.renselaar@mnbuza.nl)

31

Annual Report 2007

➾   5.  List of approved Grant Operations 

(situation as at 31.12.2007)

Project 

name

Regional cover

Description

Lead 

Other PFG 

 Grant 

financier

financiers

amount 

Date of 

Scope

ExecComm 

approval

EASSy

Djibouti,  

Construction and  

EIB

KFW, AFD

2 600 000

TA

05/07/2007

Somalia, Kenya,  

operation of 10 000 km 

Zanzibar, Burundi,  

fibre optic submarine 

Tanzania, Madagascar,  

cable along the East  

Mozambique, Uganda, 

African coast.

Rwanda, Lesotho, 

Botswana, Sudan  

and RSA

FELOU  

Mali / Mauritania / 

Design, delivery, construc-

EIB

9 335 000

IRS

10/07/2007

hydropower 

Senegal

plant

tion, commissioning and 

operation of a run-of-river 

hydropower plant in Félou 

close to Kayes (Mali). 

Ethiopia-

Ethiopia, Kenya

Feasibility study for the 

KfW

AFD

550 000

TA

10/07/2007

Kenya Power 

Systems Inter-

connection 

Project

construction of an inter-

connection transmission 

line between Ethiopia and 

Kenya.

Pre-invest-

- Man (Ivory Coast) 

Procurement of the  

EIB

KfW

3 000 000

TA

16/10/2007

ment studies 

- Sannequille (Liberia)  

services of an international 

for West Africa 

- Nzérékore (Guinea)  

consulting firm to under-

power inter-

- Buchanan (Liberia)  

take the pre-feasibility 

connection

- Monrovia (Liberia)  
- Bumbuna (Sierra Leone)  
- Linsan (Guinea)

study, the line survey, the 

production of maps, plan 

and profile drawings, the 

environmental and social 

impact assessment, the 

environmental impact sta-

tement, the Resettlement 

Action Plan and Environ-

mental and Social Man- 

agement Plan.

      15 485 000     TOTAL  

grant approvals 

Annual Report 2007

32

➾   6. List of eligible African countries

•  Angola

•  Benin

•  Botswana

•  Burkina Faso

•  Burundi

•  Cameroon

•  Central African Republic

•  Chad

•  Congo Brazzaville

•  Democratic Republic of Congo

•  Eritrea

•  Ethiopia

•  Djibouti

•  Gabon

•  Equatorial Guinea

•  São Tomé and Principe

•  Ghana

•  Togo

•  Guinea-Bissau

•  Guinea Republic

•  Ivory Coast

•  Liberia

•  Kenya

•  Somalia

•  Lesotho

•  Swaziland

•  Madagascar

•  Malawi

•  Mali

•  Mauritania

•  Mauritius

•  Comores

•  Seychelles

•  Mozambique

•  Namibia

•  Niger

•  Nigeria

•  Rwanda

•  Senegal

•  Cape Verde

•  Gambia

•  Sierra Leone

•  Sudan

•  Tanzania

•  Uganda

•  Zambia

•  Zimbabwe

33

Annual Report 2007

➾   7. List of Acronyms

AFD: 

AfDB: 

Agence française de développement

African Development Bank

COFIDES: 

Companía Española de Financiación del Desarrollo

DBSA: 

DFI: 

DfID: 

Development Bank of Southern Africa

Development Finance Institution

Department for International Development

EASSy: 

Eastern Africa Submarine Cable System

EC: 

European Commission

ECOWAS: 

Economic Community of West African States

EDF: 

EIB: 

European Development Fund

European Investment Bank

ExCom: 

Executive Committee

HIPC: 

Heavily Indebted Poor Countries

ICA: 

IFC: 

IRS: 

ITF: 

KfW: 

The Infrastructure Consortium for Africa

International Finance Corporation

Interest Rate Subsidy

Infrastructure Trust Fund

Kreditanstalt für Wiederaufbau

NAMPOWER:  Namibian Power

OeEB: 

OMVS: 

PFG: 

SPV: 

Oesterreichische Entwicklungsbank AG

Organisation pour la mise en valeur du fleuve Sénégal

Project Financiers Group (of the ITF)

Special Purpose Vehicle

SOFID: 

Sociedade Para O Financiamento Do Desenvolvimento

SOGEM: 

Société de Gestion du Barrage de Manantali

TA: 

TF: 

Technical Assistance

Trust Fund

WAPP: 

West African Power Pool

WIOCC: 

West Indian Ocean Cable Company Ltd.

Annual Report 2007

34

➾   8.  Acknowledgement of contributions  

to the Annual Report

The Secretariat of the EU-Africa Trust Fund prepared this Annual Report with the kind contribution of:

European Investment Bank
100, boulevard Konrad Adenauer
L-2950 Luxembourg

European Commission
AIDCO C4
200, rue de la Loi
B-1049 Brussels

Kreditanstalt für Wiederaufbau - KfW
Palmengartenstr. 5-9
D-60325 Frankfurt, 
Germany

Agence Française de Développement – AFD
5, rue Roland Barthes
75598 Paris Cedex 12, 
France

The European Investment Bank as Manager of the Trust Fund prepared the Financial Statements.

35

Annual Report 2007

Annual Report 2007

36

For further information, contact:

European Investment Bank
100, boulevard Konrad Adenauer
L-2950 Luxembourg
3 (+352) 43 79 – 1
5 (+352) 43 77 04
www.eib.org/acp  –  U info@eib.org

Head of the Secretariat
Yves de Rosée
3 (+352) 43 79 - 82968
5 (+352) 43 79 - 64999
U y.derosee@eib.org

While material appearing in this report may be freely reproduced, the EIB would appreciate an acknowledgement and press clipping.

© Photographs and illustrations were supplied by the EIB’s Graphics Workshop.

Layout: EIB Graphics Workshop.

Printed in Luxembourg by Imprimerie Centrale s.a. on AcondaVerd Silk paper using vegetable oil-based inks. Certified in accordance with Forest Stew-
ardship Council (FSC) rules, the paper consists of 60% virgin fibre (of which at least 30% from well-managed forests), 30% de-inked post-consumer 
waste and 10% mill broke.

The Annual Report is also available on the Bank’s website: www.eib.org/publications.

EU-Africa Infrastructure Trust Fund • Annual Report 2007

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