EIB-Information. Nr. 55, february 1988.
Date: 2011-07-13
Institutions: European Investment Bank
Subjects: EIB loan, EU activity, EU financing, European Investment Bank, regional development

ν 

Den  Europaeiske  Investeringsbank 
Europäische  Investitionsbank 
ή  Τ
α  Ε
European  Investment  Bank 
Banco  Europeo  de  Inversiones 
Banque  européenne  d'investissement 
Banca  europea  per  gli  investimenti 
Europese  Investeringsbank 
Banco  Europeu  de  Investimento 

February  1988  • No  55 

ISSN  Ò250-3867 

Η 

s 

Lending  by  the  European  Investment  Bank  in  1987 totalled 7.84bn  ECUs,  an 
increase  of  some  40/o (2.6o/o in  real  terms)  compared with  1986. Within  the 
EEC,  the  EIB  advanced 7bn in  loans from  its  own  resources and almost 450m 
in  loans  from  New  Community  Instrument  (NCI)  resources.  Outside  the 
Community,  a total of  392.1m was  made available, comprising  189m from  own 
resources  and  203m  from  budgetary resources. Salient  features  of  the 1987 
financial  year  were : 

fostering  regional  development 

Ο  signature  of  the  £1bn/Ffrs  lObn co-
financing  agreement  (1.4bn 
in  ECU 
terms)  for  the  Eurotunnel  Project :  the 
first  series of  loans should be  disbursed 
during  1988; of  exceptional  importance 
to  the  Community's  transport network, 
the  Channel Tunnel  is  seen as  a  project 
which  will  provide a significant  stimulus 
to  Europe's  economy ; 
Ο  at  1.6bn, the volume of  loans  centred 
on  projects  designed  to  protect  the 
environment  in  1987,  the  European Year 
of  the  Environment,  amounted to  more 
than twice as much as the  previous year 
(702m) ; 
Ο  a surge in financing  for capital  invest­
ment 
which  attracted 4.35bn ; 
Ο  appreciable growth in  credit  for  pro­
ductive-sector 
in 
investment,  chiefly 
industry  (2.6bn,  compared with  1.9bn  in 
1986); 
0  an  upswing  in  global loans  for small 
and  medium-scale  projects  (more  than 
2bn made available  in all, of which  408m 
resources).  The 
furnished 
number  of  smaller  capital  projects  in 
receipt  of  global loan  allocations  during 
the year  ran to over  3000, the vast majo­
rity  mounted  by  SMEs ; 
Ο  a virtual  doubling of  financing, opera­
tions 
(390m); 
Ο  outside the  EEC,  a  boost for lending 
in the ACP  States under the Third Lomé 

in  Spain  (707m)  and  Portugal 

from  NCI 

V)  No  set  country  or  sector  quota  is  applied  to  the  provi 
sion  of  Bank  financing ;  the  breakdown  of  EIB  lending 
depends as mucli upon demand as upon the viability  of  the 
projects  put  forward  and their  conformity  with  the  Bank's 
economic  policy  objectives. 

(^)  ECSC. EIB,  NCI  and  Euratom  loans,  ERDF  and  EAGGF 
(Guidance  Section)  grants. 

. 

' 

Convention  (349m, in contrast to 210m in 
1986), while  further  progress  was  made 
towards  renewing  the  Financial  Proto 
cols with the Mediterranean  Countries ; 
Ο  in terms of the Bank's borrowing ope­
rations, the continued ground gained by 
Community  currencies,  including  the 
ECU  (5.6bn raised  in  1987), as opposed 
to  the slippage of  other currencies, par­
ticularly  the  US  dollar. 

Within  the  Community : the EIB moun­
ted  operations in all of the twelve  Mem­
ber  Countries  in  1987 ('),  particularly 
vigorous  growth  being  recorded  in 
lending  from  own  resources (+325m). 
Apart  from  the  high  level  of  lending in 
Spain  and  Portugal, there  was  a  sub­
stantial  upturn in financing operations  in 
France  and,  although  not  to  the  same 
extent,  in  Denmark.  Italy  remained the 
leading  recipient of  Bank credit. Lending 
dipped  however  in  Germany, the United 
Kingdom,  Greece,  Ireland  and  in  the 
Benelux countries. 
Loans granted by the  Bank in  1987 from 
its own and NCI resources  accounted for 
some  5 1%  of  Community  structural 
financing  (^)  and  more  than  80%  of 
financial  support  funded  from  borrow­
ings.  Accounting for  about  1% of gross 
fixed  capital formation within  the Com­
munity  in  1987, their  relative  importance 
was  most  pronounced  in :  Portugal 
(5.1%) ;  Italy  (2.4%  - 4% however  in the 
Ireland 
the  Mezzogiorno) ; 
case  of 
(4.2%);  Greece  .  (2.1%);  and  Spain 
(1.3%).  On the  basis of  data  available at 
thé  time  of  project  appraisal,  the  EIB 
puts at some  19.4bn the total fixed asset 
cost  of  projects  financed  in  1987.  In 
terms of employment, these projects are 

The 7.84bn  ECUs lent  by the  EIB in 1987 
were financed  as to 7.19bn from own re 
sources  (mainly  the  proceeds  of  the 
Bank's  borrowings  on  the  capital  mar 
kets)  comprising  7bn  provided  within 
and  190m  outside  the  Community  to 
gether  with  650m  from  resources  de 
ployed by the Bank acting under manda 
te (447m made available in the EEC from 
the  resources  of  the  New  Community 
Instrument  (NCI)  and  203m  outside  the 
Community  funded  from  budgetary  re 
sources). Loans provided under mandate 
are,  for  the  most  part,  granted  on  be 
half,  and  for  the  account,  of  the  Euro 
pean  Economic  Community  and are acc 
ounted  for  off  balance  sheet  in  the 
Bank's  Special  Section ;  responsibility 
for  these  operations  is limited  to  proper 
performance  of  the  mandate  entrusted 
to  the  EIB. 

The  Bank does  not tie  its  lending  within 
the  Community  to  any  predetermined 
geographical  or  sectoral  quota.  The 
spread  of  loans  depends  as much  upon 
demand as upon the viability  of the pro 
jects  put  forward  and  their  compliance 
with the economic  policy objectives pur 
sued  by the  EIB. Outside the  Communi 
ty, the  Bank conducts  its  lending opera 
tions  within  the  limits  of  amounts  laid 
in  agreements,  conventions  or 
down 
protocols  concluded  between  the  EEC 
and  the  country  in  question.  Individual 
projects  financed  must  comply  with  the 
guidelines  set  out  in  these  texts. 

There  are  no  formalities  involved  in 
making  an  initial  approach  to  the  Bank 
which  may  be  contacted  directly  about 
its  financing  facilities.  In the  case, how 
ever,  of  enquiries  concerning  small  and 
medium-scale  ventures  eligible  for  glo 
bal  loan  credit,  promoters  are  recom 
mended to get straight  in touch with the 
relevant  intermediary  institution. 

Ε
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expected  to  have  much the  same bene 
ficial  impact  as  in  previous  years. 
Outside  the  Community  : the  EIB con 
tinued  and  substantially  stepped  up 
(349m) its lending  operations  in the  Afri 
can, Caribbean  and  Pacific  States  under 
the  Third  Lomé  Convention  which 
entered into force on 1  May  1986 (and in 
the  Overseas  Countries  and  Territories 
under  the  parallel  Decision  concerning 
the  OCT).  In  the  Mediterranean  region, 
where  the  Bank  lent  43m,  activity  was 
given  over  to  tapping  residual  funds 
available 
for  deployment  under  EEC 
Financial  Protocols  and  to  paving  the 
way  for  activation  in  1988  of  the  new 
generation  of  Financial  Protocols, due to 
give  fresh  impetus  to  EIB  operations  in 
these  countries. 

A recapitulation  of  activity  in 1987 would 
not  be complete  without  restressing  the 

landmark  signature  of  the  credit  agree 
ment  providing 
for  £1bn/Ffrs  lObn 
(approx.  1.4bn  ECUs) towards  construct 
ing  the  Channel  Tunnel. The  agreement 
was  concluded  in  September  1987, with 
disbursements  scheduled 
throughout 
the  construction  period  (1988-1993).  It 
follows  that  the  loan  amounts  in  ques 
tion are not incorporated  in the  statistics 
for  Bank  activity  in  1987. 

Marking  a  key  stage  along  the  road  to 
greater,  economic  and  social  cohesion' 
within  the  Community,  entry  into  force 
on  1 July  1987  of  the  Single  Act  gave 
added prominence to the  part  played by 
the  Bank  in  building  a  Europe  founded 
on  reduction  of 
regional  disparities, 
establishment  of  the  internal  market, 
development  of  industry  through  the 
promotion  of  advanced 
technology, 
enhancement  and expansion  of Commu-

1 

• 

-1 

Table  1 :  Geographical  breakdown  of  financing  provided 

1987 

% 

NCI  . 

compo 
nent 

( 
m  ECUs) 

1986 

o/b 

NCI 

compo 
nent 

7 450.4 

100 

7071.1 

100 

Within  the  Community 
of  which : from  EIB  own 

resources 
from  NCI  resources 

Italy 
United  Kingdom 
France 
Spain 
Portugal 
Denmark 
Germany 
Ireland 
Greece 
Belgium 
Netherlands 
Luxembourg 
Other (') 

Outside  the  Community 
of  which : from  EIB  own 

resources 
from  budgetary 
resources 

ACP  States 
Mediterranean  region 

Grand  total 

7 003.4 
446.9 
3112.2 
1,133.7 
1 006.5 
707.4 
389.9 
315.3 
276.5 
178.6 
164.8 
37.1 
18.0 
1.6 
108.7 

392.1 

196.2 
14.0 
76.8 
113.7 
9.9 
31.8 
— 
— 
4.6 
— 
— 
— 
—  ' 

-41.8 
15.3 
13.5 
9.5 
5.2 
4.2 
3.7 
2.4. 
2.2 
0.5 
0.2 
0.1 
1.5 

.  188.9 

203.2 
349.3 
42.8 

7 842.5 

6678,1 
393.0 
3024.0 
1371.5 
623.4 
409.3 
190.3 
258.2 
441.8 
262.1 
253.0 
46.1 
98.2 
18.2 
75.0 

473.7 

381.8 

91.9 
209.7 
264.0 

7 544.8 

{')  Project  of  direct  benefit  to  the  EEC  but  located  outside  Member  States'  European  territories. 

I 

111.1 
16.3 
58.4 
69.0 
29.9 
59.9 
— 
47.8 
— 
— 
— -
— 
.  — 

42.8 
19.4 
8.8 
5.8 
2.7 
3.7 
6.2 
3.7 
3.6 
0.7 
1.4 
Ö.3 
1.1 

nity  infrastructure,  and  dedicated  pro 
the  environment.  These 
tection  of 
the 
various  priorities  highlighted  by 
Single  Act  enshrine  the  very  principles 
which  guide  and  inform  EIB  activity. 

Breakdown  of  Bank  lending  within 
the  EEC  by  economic  policy  objec 
tive 

In line with  the  EIB's principal task, pro 
jects  fostering  iregional  development 
represented the focal point of  Bank acti 
vity  in  1987 : a total  of  4.35bn was  made 
available  for  this  purpose,  representing 
a  notable  upturn  compared  with  the 
3.7bn  provided  the  previous  year.  70% 
of  lending  ih  this  category  was  brought 
to  bear  on countries  or  regions with  the 
severest  structural  problems  (Portugal, 
Greece,  Ireland,  Northern  Ireland,  parts 
of  Italy  and  Spain)  and  was  steered 
heavily towards  regions contending  with 
unemployment  rates above, and average 
income below, the Community average. 

In  the  course  of  what  from  the  spring 
onwards  had  been  declared  the  Euro 
pean Year of  the  Environment, the  Bank 
made  a  significant  contribution  to  the 
financing  of  environmental  protectiori 
projects,  doubling  the  volume  of 
its 
lending  in this  area  for  the  second  year 
in  a  row :  1  579m,  as  against  702m  in 
1986  and  360m  in  1985.  Capital  invest 
ment  financed  embraced  sewerage  and 
sewage  disposal  schemes,  water  treat 
ment  and  purification  plants  in  Italy, the 
United  Kingdom,  Portugal,  France  and 
Germany, as well as equipment  and pro 
cesses  helping  to  clean  up  the  air  we 
breathe  by  reducing  gaseous  emissions 
from  thermal  power  stations,  heating 
plants  and  refineries  in  Greece,  Ger 
many,  Italy  and  Denmark.  The  EIB  also 
contributed 
towards  construction  of 
household  waste  incineration  plants  in 
Italy,  the  United  Kingdom  and  France, 
the  rehabilitation  of  derelict  sites  and 
the  fight  against  soil  erosion  (Italy). 
Smaller-scale  items of  infrastructure  and 
industrial  investment  offering  environ 
mental  benefits  likewise  attracted  sub-
loans  from  multi-purpose  global  loan 
financing,  although  sometimes  entire 
global  loans  were  devoted  specifically 
to  this  end. 

EIB activity  in this field extends  however 
far  beyond  merely  advancing  credit  for 
projects  directly  geared  to  improving 
the  environment : indeed, when apprais-

1 

ing  all  loan  applications,  the  Bank sys 
tematically  examines  thé  environmental 
impact of  schemes and their  compliance 
with  existing  legislation. It  also  makes a 
point  of  encouraging  promoters to  instal 
equipment  limiting  the  direct  and  indi 
rect  environmental  effects  of  each  pro 
ject  to  levels  even  below  those  called 
for  by  law. 
Lending  to  industry  registered  substan 
tial  growth  (2.6bn) :  over  470m  of  the 
total  made  available  went  in support  of 
capital  investment  building  on  or  usher 
ing  in advanced  technology.  The main 
thrust  of  the  projects  financed  was  on 
honing  the  corhpetitive  edge  of  Euro 
pean  industry  over  a broad  spectrum  of 
activities. 
Again  in  the  productive  sector,  the  EIB 
continued  to  channel  credit  to  small 
and medium-sized  enterprises  (SMEs) 
through  its  global  loan  facility :  aggre 
gate  global  loan  credit  to  smaller  busi 
nesses  in  1987 comprised  1.4bn (')  from 
EIB  own  resources  and  408m  from  NCI 
resources (^).  A  large  number  of  sub-
loans  are .now  in the  pipeline  for  alloca 
tion  under  these  global  loans  in  coming 
months.  In  1987, 2 800  small  and  medi 
um-scale  industrial  veritures  attracted 
sub-loans  worth  in  excess  of  900m  in 
all : some  1  800 of  these  ventures  were 
financed  as to  more than 610m from the. 
Bank's  own  resources,  and  980  as  to 
295m  from  NCI  resources. 
In  addition,  90  allocations  (126m)  were 
channelled  to  ventures  making, more 
efficient  use  of  energy,  44  (74m)  to 
environmental  protection  projects,  9 
(25m)  to  ventures  deploying  advanced 
technology  and  98  (78m)  to  investment 
in  small  and  medium-scale  infrastruc 
ture. 

Nearly 80% of  productive  investment  by 
SMEs  financed  under  global  loans  in 
1987 was  undertaken  by  firms  with  less 
than  50  employees.. 
Taking-  all  global  loan  allocations  bet-, 
ween  1983,  the  European  Year  of  the 
Small : and  Medium-Scale  Enterprises, 
and the  end of  1987, the  EIB has helped. 

(')  To  which  should  be  added'213m  for  infrastructure  of 
fairly  modest  dimensioiis, 

(2)  NCI  IV  provides  for  760m  from  Commission  NCI  borro 
wings,  in  tandem  with, which  the  Bank  is  supplying  a fur 
ther  750m .from  its own  resources. The combined  1,5bn  will 
be  used  for  financing  productive  investment  by  SMEs, 
mainly  outside  the  assisted  areas. 
(3)  Beneficiaries  of  credit  from  EIB  own  resources :  over 
10 000 SMEs (3bn) ; beneficiaries  of  NCI credit : 9 200 SMEs • 
(2,4bn):  Key  data :  rational  use  of  energy  —  584  projects 
(530m) ;  advanced  technology  —  35  projects  (114m) ;  pro 
tection, of  the  environment  —  50  projects  (87m); • 

in  five  years,  to  finance  approximately 
20  000 smàHertScalé productive  ventures 
with credit  amounting to some 6.2bn (^);" 
Also in the  manufacturing sector, in 1987 
278ni  was  lent  in  support  of  projects 
involving 
industrial  cooperation  be 
tween  enterprises  in  different  Mem 

ber  Countries  and schemes  centred  on 
modernisation  and  conversion  of 
undertakings.  Examples  of  the  Bank's 
presence  in these  spheres  are  provided 
by  loans  for  projects  financed  in  the 
United  Kingdom  and  Italy  for  moderni 
sing  factories  processing  alumina  and 

1 

• 

1 

Table  2 :  Breakdown  by  economic  policy  objective  (')  of  financing  provided 

within  the 

Community  in 

1987 

Aggregate  financing 

Regional  development 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
United  Kingdom. 

Energy  policy  objectives 
Development  of  indigenous  resources 
Hydroelectric  --  geothermal 
Nuclear 
Oil and natural gas 
Coal,  lignite,  peat 
Import  diversification 
. Natural gas 
Coal 
Rational  use  of  energy 

Modernisation  of  undertakings 
Advanced  technology 
Modernisation  —  conversion 
Industrial  cooperation. 
Investment  by  SMEs 

Environment  —  cultural  heritage 
Air  pollution 
Water  and  soil  pollution 
Other  operations 
Safeguarding  cultural  heritage 

Community  infrastructure 
Transport 
. 
Railways 
Roads 
S flipp ing 
Airlines 
Intermodal, freight  terminals 
Telecommunications 

, -

million 
ECUs 

7450.4 

4 347.2 
37.1 
29.5 
56.4 
160.2 
459.5 
655.1 
148.6 
1  868.2 
.  18.0 
380.0 
534.6 

2 226.8 
667.6 
108.8 
214.4 
325.4 
19.0 
695.7 
255.8 
439.9 
863.5 

1 287.2 
474.1 
57.6 
219.9 
535.6 

1 579.2 
470.6 
730.9 
368.0 
9.7 

680.8 
655.0 
85.0 
194.5 
20.4 
307.8 
47.3 
25.8 

Total 

.% 

100.0 
0.9 
0.7 
.  1.3 
3.7 
10.6 
15.1 
3.4 
43.0 
0.4 
8.7 
;12.3 

100.0 
30.0 
4.9 
9.6 
14.6 
0.9 
31.2 
11.5 
19.7 
38.8 

100.0 
36.8 
4.5 
17.1 
41.6 

100.0 
29.8 
46.3 
23.3 
0.6 

100.0 
96.2 
12.5 
28.6 
3.0 
45.2 
6.9 
3.8 

Own 
resources 

NCI 
resources 

million 
ECUs 

million 
ECUs 

7 003.4 

447.0 

4311.8 
37.1 
29.5 
56.4 
160.2 
459.5 
655.1 
148.6 
1846.8 
18.0 
380.0 
520.6 

2 205.0 
667.6 
108.8 
214.4 
•325.4 
19.0 
695.7 
255.8 
439.9 
841.7 

900.1 
474.1 
57.6 
219.9 
148.5 

1 579.2 
470.6 
730.9. 
368.0 
9.7 

678.1 
652.3 
85.0 
194.5 
20.4 
307.8 
44.6 
25.8 

35.4 

21.4 

14.0 

21.8 

21.8 

387.1 

387.1 

2.7 
2.7 

2.7 

(')  The  various  totals  do  not  make  an  aggregate  as 
1 

::èrtain  loans  answer  simultaneously  more  than  one  objective. 

1 

aluminium,  support  for  development,of 
an  important  copper-mining  project  in 
Portugal  and  finance  for  Spain's  corpo 
rate  sector  aimed  at  adapting  Spanish 
firms 
to  the  new  market  conditions 
brought  about  by  entry  into  the  EEC. 
Projects  contributing 
to  Community 
energy  policy  objectives  attracted  2.2bn 
in 1987. Loans promoting  efficient  use of 
energy accounted for 863m of this (393m 
for  smaller-scale  investment  and  470m 
for  district  heating  or  for  electricity  grid 
interconnections).  Import  diversification 
projects  and those  furthering  the  use of 
natural  gas  (Italy,  Denmark,  a gasline  in 
Austria  benefiting  the  Community),  coal 
to fuel  power  stations  at  Brindisi  in  Italy 
and'Kilroot  in Northern  Ireland, or  lignite 
in  Greece were  funded  with  loans  total 
ling  696m. A  further  668m  helped. Mem 
ber  Countries 
indigenous 
resources,  namely  crude  oil, natural  gas 
and  hydroelectric  energy  in  the  United 
Kingdom, Italy, Spain and France, and to 
develop  nuclear  power. 
When  operational,  projects  financed  in 
1987  should  reduce  the  Community's 
dependence  on  oil  imports  by  some 
13.5m tonnes of oil equivalent  (t.o.e.)  per 
annum.  The  cut-back 
imports 
achieved  by virtue  of  projects funded by 
the  EIB since  1983 amounts to some 55m 
t.o.e.,  12m t.o.e.  of  this  realised  by  dint 
of  more  rational  use  of  energy ;  the 
overall saving corresponds to  some 14% 
of  projected  Community  oil  imports  in 
1995. 

to  harness 

in  oil 

fleets,  especially 

Schemes  aimed  at  developing  Com 
munity  transport  infrastructure  clai 
med  655m  in  1987, notably  for  air trans 
port  via  loans  for  airports  in the  United 
Kingdom,  Italy  and  France  and  acquisi 
tion  of  aircraft,  notably  in  Italy,  to  bol 
those 
ster  existing 
operating  between  Member  States. The 
Bank  also  financed  numerous  road  and 
motorway  sections 
Italy,  France, 
Ireland,  Spain,  Portugal  and  the  United 
Italy  and  the 
Kingdom,  harbours 
United  Kingdom,  a  tanker  in  Luxem 
bourg  for 
the  conveyance  of  petro 
chemical  products  and  improvements  to 
rail  links  in  Spain  and  Greece. 

in 

in 

. 

Borrowings 

The  EIB raised  borrowings  in  1987 for  a 
total  of  5  593  million  ECUs,  compared 
with  6  786  million  during  the  previous 
year.  Of this, 3  769  million  were  tapped 

in 

by means of  public  loan issues, 996  mil 
lion through private placings, 456  million 
interbank  operations,  352  million 
via 
under  a  US$  medium-term  notes  pro 
gramme  and  20  million  by  allocating  to 
third  parties  participations 
loans, 
guaranteed  by  the  EIB. 
A  striking  feature  of  the, financial  year 
was that  borrowings  were  raised  mainly 
iri  DM, whereas  the  US$  had  tradition 
ally  headed the  list  of  currencies  tapped 
in  the  past.  As  in  previous  years,  the 
ECU  occupied  second  place,  followed 
by the  US$, the  Italian  lira  and the yen. 
Again  reflecting  the  trend  of  recent 
years,  the  EIB  also  raised  appreciable 
amounts  in  French,  Swiss  and  Belgian 
francs.  Guilders  and  pounds  sterling 
(see  Table).  Swap  operations  totalled 
326  million  ECUs, bringing in the equiva 
lent  of  193  million  ECUs in  floating  rate 
US$ plus 133  million  in fixed rate ECUs. 

A  relative  fall  in demand  from  its  borro 
wers  for  floating  rate  funds  prompted 
the  EIB to  slacken  the  pace  of  its  calls 
on  this  market  where  it  raised  393  mil 
lion  ECUs as against  541  million  in 1986. 
The  Bank  concluded  two  issues  (toge 
ther  worth  200  million  ECUs)  in  floating 
rate  lire,  one  being  the  first  of  its  kind 
on  the  Eurolira  market.  The  balance  of 
193  million  ECUs, raised  in  floating  rate 
US$, has already  been mentioned  under 
the  heading  of  swap  operations. 

Principal  currencies  raised  (in  million 
ECUs)  -  after  swap  operations 

1987 

1986 

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
0. 

DM 
ECUs 
US$ 
Lit 
Yen 
Ffrs 
Sfrs 
Fl 
Bfrs 
£ 

1 153  (20.6%) 
807  (14.40/0) 
722  (12.9%) 
639  (11.40/0) 
517  (  9.20/0) 
464  (  8.30/0) 
370  (  6.60/0) 
;338  (6.00/0) 
302  (  5.40/0) 
142  ( 2.50/0) 

879  (13.00/0) 
897  (13.20/0) 
1 760  (25.90/0) 
594  (  8.70/0) 
514  (  7.60/0) 
413  (  6.10/0) 
•510  (  7.50/0) 
515  ( 7.6O/0) 
263  (  3.90/0) 
304  ( 4.50/0) 

In  1987, the  EIB  also  raised  the  equiva 
lent  of  79  million  ECUs  in  Luxembourg 
francs,  38  million  in  Danish  kroner  and 
21  million  in  Austrian  Schillings. 
The  trend  towards  a fall  in  the  relative 
importance  of  the  US$  in  relation  to 
aggregate  borrowings  gained considera 
ble  momentum  in  1987,  while  calls  on 
the  DM  market  showed  a steep  upturn. 
Similarly,  again  in  response  to  demand 
from  borrowers,  the  ECU  continued  to 
occupy  second  place  among  currencies 

tapped.  Hence,  the  EIB  confirmed  its 
prime  role  on  the  market  for  the,Com 
munity  currency  where  it  is  the  leading 
operator  on  both  the  borrowing  and 
lending  fronts.  The  main  countries  in 
which  loans  were  wholly  or  partly  dis 
bursed 
Italy 
(261  million), 
(360  million),  Denmark 
Spain  (107  million),  France  (83  million), 
Ireland  (79  million),  Portugal  (68  mil 
lion),  Greece  (16  million)  and  Belgium 
(14  million). 

in  ECUs  in  1987  were 

A  general  facet  of  the  1987  financial 
year  was  the  marked  rise  in  issues  on 
national  markets  and  the  sharp  dip  in 
operations  in  non-Community  currencies 
which  slipped  back  from  4I.80/0  of  the 
last  year. 
total 

to  31.50/0 

in  1986 

Lending  in  the  Member  Countries 

In  Italy,  traditionally  the  largest  benefi 
ciary of  EIB loans. Bank lending  reached 
a  new  high  of  3112m  (Lit  4 618bn),  of 
which  196m  (Lit  293bn)  was  provided 
from  NCI  resources.  The  loans  break 
down  as  to  1209m  (Lit  17933n) 
for 
industry,  1  081m  (Lit  1  609bn)  for  infras 
for 
tructure,  and  822m  (Lit  1212bn) 
energy  schemes.  Once  again,  the  Bank 
stepped  up  its  support  appreciably  for 
(363m/ 
the  high-technology 
Lit  536bn)  and  for  protection  of 
the 
environment  (692m/Lit  1  033bn). 
More  than  6OO/0  of  the  loans  granted 
were  for  projects  contributing  to  reg 
ional development, 870/o of them  located 
in the  Mezzogiorno, chiefly  in  Campania 
-  116m 
(Lit  282bn),.  Sicily 
-  191m 
(Lit  170bn),  Latium  -  123m  (Lit  182bn), 
Abruzzi  -  57m  (Lit  85bn)  and  Sardinia  -
130m  (Lit  192bn). 

sector 

These  projects,  niany  accorded  priority 
under  the  Investment  and  Job-creation 
Fund  (FIO)  consisted,  in  the  main,  of  a 
variety  of  communications  infrastructure 
(588m/Lit  874bn),  industrial  investment, 
(628m/Lit  935bn) 
typically  by  SMEs 
and  energy  schemes  (519m/Lit  767bn). 
The  earthquake-stricken 
regions  of 
Campania  and  Basilicata  also  received 
further  reconstruction  support  virtually 
exhausting  the  balance  of  Community 
aid  left  uncommitted. 

Lending in Italy on three major fronts : 

Industry :  a  multiplicity  of  small  and 
ventures 
medium-scale 

industrial· 

throughout  the  country  accounted  for 
two  thirds  of  Bank lending  in Italy chan 
nelled  via  the 
instrument  ' specifically 
tailored  to  their  needs,  the  global  loan 
facility.  The  proceeds  of  new  global 
loans  concluded  in  1987  and  of  those 
already on tap from previous years were 
drawn  on  to  fund  1 518 ventures  to  the 
extent  of  697m  (Lit  985bn),  of  which 
141m  (Lit  209bn)  from  NCI  resources 
was directed towards capital  investment 
in  the  more  developed  areas.  . 

larger-scale  projects  attracting 
The 
finance during the year were in the elec 
tronics  and  electrical-engineering  sec 
tors  (components,  printers,  magnetic 
memories,  automated  production  and 
computerised  programming  processes) ; 
substantial  credit  was  also  provided  for 
the  chemicals  industry,  more  often  than 
not  for  projects  incorporating  high tech 
nology, e.g. new  methods  developed  for 
the  manufacture  of 
fluorochemicals, 
detergents,  adhesives  and  medical  pro 
ducts and in modernising  an oil  refinery. 
Cast  wide,  the  net  of  Bank  lending  to 
industry  also  encompassed  backing  for : 
construction  of  the  ATR  42  aircraft,  a 
joint  franco-Italian  venture ;  railway  rol-
lingstock ;  motor  vehicle  tyre  and  win 
dow  manufacturing ;  production  of 
paper  and  foodstuffs ;  rationalisation  of 
an  alumina  plant  and  a  cementworks; 
and  the  fitting  out  of  an  industrial  and 
medical  research  centre. 

With  a  view  to  promoting  tourism  by 
safeguarding  the  Community's  cultural 
heritage, finance  was  also  advanced  for 
restoration  of 
in 
Venice and for  protection  of the archae 
ological  sites  at  Pompeii,  Herculaneum 
and  Stabiae. 

the  Doges'  Palace 

The  list  is  rounded  off  with  mention  of 
Bank  funding  for:  the  establishment  of 
an  interregional  veterinary  analysis  and 
research  centre ; development  of  refuse 
disposal  sites ;  construction  of  waste 
incineration  plant;  and,  through  global 
loans,  tourism  infrastructure  in  Calabria 
and, fish-farming  and  agriculture  in  Sar 
dinia. 

Infrastructure : in this second key sector, 
the  EIB furnished  loans  contributing  to: 
twin-track 
reinstatement  and 
railway 
construction  schemes ;  the  first  under 
ground  railway  system  in  Naples ;  the 
final  sections  of  the  Tunnels  Motorway 
("Autostrada  dei  Trafori")  linking  Italy 
(Piedmont)  with  Switzerland ;  the  new 
Al  Milan-Rome  and  A2  Rome-Naples 

motorway  link  by-passing the  Rome ring 
road;  widening  of  the  Rome-Naples 
motorway ;  reconstruction  of  viaducts 
between  Naples  and  Bari ;  development 
of  three 
freight 
intermodal,  rail/road 
centres  in  Turin,  Verona  and  Parma ; 
container-handling  and  ro/ro  facilities  at 
the  ports  of  Trieste  and  La  Spezia, 
Brindisi  coal  harbour,  marinas,  commer 
cial  and  fishing  harbours  at  Ortona, 
Bagnari, Cariati  and  Pescara, and upgra 
ding  of  ferries  operating  between  Sicily 
and  Sardinia  (offering  increased  capa 
city  and  comfort) ;  modernisation  of 
Turin-Caselle  airport  and  acquisition  of 
MD 82 and ATR 42 aircraft  for  domestic 
and intraCommunity  routes ; telecommu 
nications  in  the  Mezzogiorno  and  an 
emergency  satellite  system  to  facilitate 
preventive  action  in the  event  of  natural 
disasters. 

Many  water  supply,  sewerage  and 
sewage disposal schemes received Bank 
funding, particularly  in the  Po basin, the 
Rome region  arid Venezia, together  with 
watershed  management  and  flow  con 
trol  works  on  the  Arno  plus  investment 
designed  to  combat  soil  erosion,  land 
slides  and  flood  risks  in  The  Marches, 
Molise,  Valle  d'Aosta,  as  well  as  near 
Perugia  (Umbria)  and  in  Oltrepò  Pavese 
(Lombardy).  Credit  was 
similarly 
advanced  for  reafforestation  schemes, 
urban  redevelopment,  industrial  estates 
and  irrigation. 
Energy:  the  main  projects  supported  in 
this third  priority  area included develop 
ment  of:  hydroelectric 
in 
northern  Italy  and Calabria  and geother 
mal  resources  in  Tuscany;  a  combined 
district  heating  and power  plant  in Bres 
cia ;  and  Brindisi  coal-fired  power  sta 
tion also equipped with  desulphurisation 
installations  in  order  to  reduce  environ 
mental  pollution. The  Bank continued  to 
contribute  towards :  exploitation  of  oil 
and  natural gas  deposits  in the  Adriatic, 
the  Strait  of  Sicily  and Emilia-Romagna ; 
the  natural  gas  transmission  and  distri 
bution  grid  and  back-up  storage  reser 
voirs,  notably  in  the  Turin  and  Milan 
areas;  thé  electricity  grid  in the  Mezzo 
giorno,  district  heating  systems 
in 
Calabria  and  smaller  items  of  capital 
investment  centred  on  more  efficient 
use  of  energy. 

resources 

ture  (757m ECUs/£536m) and, to  a lesser 
extent, energy (345m ECUs/£243m) sche 
mes.  A 
further  32.3m  (£22.4m)  was 
directed  towards  projects  in  industry 
and  the  service  sector. 
Most  of  the  infrastructure  financed  was 
located  in  the  Assisted  Areas.  The  EIB 
nevertheless  provided  320m  (£234m)  for 
a range of projects throughout  the coun 
try  contributing  towards  protection  of 
the  environment,  chiefly  in  the  form  of 
sewerage and sewage disposal schemes 
and investment  designed to  improve the 
quality  of  drinking  water,  notably 
in 
Trent,  Anglia,  Yorkshire,  Northumbria, 
Humberside,  the  Midlands,  Scotland, 
North-West  and  South-West  England. 

Further  loans served to  improve commu 
nications  between  the  UK  and  other 
Member  Countries,  principally  in  terms 
of  the  air  traffic  sector  where  the  Bank 
supported :  construction  of  a  new 
London  City  airport  in  the  docklands 
area of  the  capital, air safety  equipment 
at  London  Heathrow,  a  second  passen 
ger terminal at Gatwick, extension to the 
runway  at  Roborough  airport  (Plymouth) 
and  additions  to  and  refurbishment  of 
facilities  at  Manchester.  Road  schemes 
in Kent and Essex also attracted credit. 
Other  infrastructure  financed  included : 
the  rail  network  in  the  Glasgow  area, 
roads  in  Devon  and  numerous  compo 
site  schemes  bringing  together  finance 
for  roadworks,  mains  connections  and 
access roads for  industrial estates, reha 
bilitation  of  disused  docks  or  shipyards, 
sewerage  and sewage disposal schemes 
together  with  a variety  of  public  infras 
tructure,  for  the  most  part  in  Scotland, 
Wales,  North-West  and  North-East 
England. 

In  some  of  the  above  cases,  provision 
for  environmental  protection  played  a 
significant  part in project  design, especi 
ally  for  household  waste  disposal facili 
ties  in  Manchester,  Cheshire  and Lanca 
shire. In others, the infrastructure served 
the  needs  of  higher  educational  institu 
tes  including  technical  and  vocational 
training  colleges  in  Dyfed,  Manchester, 
Stafford  and  Lancashire, involved trans 
forming  a  shipyard 
into  an  offshore 
technology  park  (Newcastle-upon-Tyne) 
or  underpinned  urban  renewal  schemes 
in  Cardiff  and  Plymouth. 

In  the  United  Kingdom,  the  EIB  lent 
more  than  1.1 bn  (£801m),  of  which  14m 
(£10m)  from  NCI  resources. The  bulk  of 
financing  was  given'over  to  infrastruc 

In the  energy  sector,  the  EIB  helped  to 
fund  development  of  the  Arbroath  field, 
200km  to  the  east  of  Aberdeen,  in  the 
British  sector  of  the  North  Sea,  offering 

lent, 

than 

loans 

proven reserves of some 100m barrels of 
crude. Production from this field as from 
1990 is expected to  run to  35 000 barrels 
a  day.  Conversion  of  Northern  Ireland's 
600  MW  Kilroot  thermal  power  station 
from  oil-  to  dual-firing  (coal/oil)  and 
transmission  equipment  designed 
to 
upgrade  the  reliability  of  the  electricity 
distribution  system  in  Northern  Ireland 
aiso  constituted  projects  supported  by 
the  Bank  in  the  energy  sector. 
Bank  lending  in  the  industrial  sector 
included  finance  for  modernisation  of 
aluminium  production,  casting  and  rol 
ling  facilities  where  sophisticated  tech 
nology  will  sharpen  competitiveness  as 
a  result  of  greater  versatility,  higher-
quality  end  products, cost-trimming  and 
energy-saving.  Other 
funded 
development  of  new  data-processing 
systems  and  establishment  of  a  new 
computer  centre  for  the  Co-operative 
Wholesale  Society  Ltd  near  Manchester 
(streamlining  order  processing,  stock 
management,  production  planning  etc.) 
as  well  as  facilities  for  household  and 
industrial  waste  disposal. 
Operations  in France  in  1987 recorded a 
Ibn 
distinct  upturn  with  more 
(Ffrs  7bn) 
76m 
(Ffrs  530m)  from  NCI  resources.  The 
productive  sector  absorbed  more  than 
two  fifths  of  the  total  with  loans  going 
to  both  larger-scale  projects,  notably 
those  deploying  advanced  technology, 
and  to  capital  investment  by  SMEs  in 
the  assisted  areas  in  the  main. 
Under  the  heading  of  advanced  or  high 
technology,  the  EIB helped  to  finance  a 
new  lay-out  for  a  motor  vehicle.paint, 
shop at Sochaux designed to  exploit  the 
most  modern  technological  advances  in 
this  area to  an extent  without  precedent 
in the  European  motor  industry.  As  well 
as  enabling 
top-of-the-range  models 
asseriibled  at  Sochaux  to  be  given  a 
higher-quality  and  more  durable  finish, 
the  project will  make working  conditions 
in  the  paint  shop  far  less  onerous  and 
will  upgrade  skill 
the 
workforce  as  well  as  reducing  energy 
consumption. The Bank also  lent  its sup 
port  to  expansion  of  manufacturing  and 
R&D facilities  in a factory  in the suburbs 
of  Bordeaux  specialising  in  computer-
aided  design  and  manufacturing  sys 
tems (CAD/CAM), principally  serving the 
clothing  sector.  Finally,  still  in  the  high-
tech  area,  the  EIB  financed  modernisa 
tion of  plant at Firminy  (Loire)  producing 
extruders  and  pumps  and  furnishing 

levels  among 

of  which 

back-up  for  a major  research  and deve 
lopment  programme. 
In  conjunction  with  the  SDR  de  la  Bre 
tagne,  the  EIB  put  up  a  grouped  loan, 
the  proceeds  of  which  were  earmarked 
for 
two  medium-sized  agricultural-
processing  firms,  for  the  production  of 
fertilisers  and  also  for  telecommunica 
tions  equipment  manufacturing  in  Brit 
tany. 
New  global  loans  concluded  in  1987 
amounted  to  382m  (Ffrs  2.6bn)  in  all, of 
which  77m  (Ffrs  530m) was  drawn  from 
NCI  resources.  Deployment  of  the  sub-
loans  available  under  these  credit  lines 
was  achieved  in  continued  cooperation 
with  Crédit  d'Equipement  des  PME, 
Caisse  Centrale  de  Crédit  Coopératif 
and  the  Sociétés  de  Développement 
Régional.  But  links  were  also forged  for 
the. first  time  with  four  Banques  Popu 
laires  active  in  northern  and  eastern 
France,  with  Fructicomi  and  Fructibail, 
property-leasing  subsidiaries  of 
the 
Caisse Centrale des Banques Populaires, 
with  Murabail  and  Bail-Energie, 
two 
holding  companies  of  theBTP-Finances 
Group,  specialising  in  property  leasing, 
and  with  the  associated  Banque  de 
Financeriient des Equipements. Ventures 
mounted  by  local  authorities  and  public 
bodies  will  qualify  for  credit,  chiefly  for 
infrastructure 
for  energy-saving  and 
environmental  protection, channelled via 
these  new  intermediaries. 
The  proceeds  of  the  above  and  ongoing 
global  loans  seryed  to  fund  767  small 
and  medium-scale  ventures  with  credit 
totalling  162m (Ffrs  l.lbn),  the  NCI com 
ponent  accounting  for  498 of  these  ven 
tures  with  finance  to  the  tune  of  77m 
(Ffrs  530m). 

investment 

infrastructure 
Capital 
in 
absorbed  284m  ECUs 
in 
(Ffrs  2bn) 
finance  for : continued  work  on the TGV 
Atlantique  (High-Speed  Train)  line  to  Le 
Mans  and  Angers;  construction  of  the 
Le  Mans-Anger  section  of 
the  A ll 
Paris-Nantes  motorway,  the  Toulouse 
and  Lyons  by-passes,  improvements  to 
the  road  networks  in  Brittany  and  Lor 
raine  (serving  textile-mill  country  in  the 
Vosges  and  the  Lorraine  iron  and  steel 
industry), the Mâcon-Châtillon section of 
the  A40  motorway  leading  to  the  Mont 
Blanc  tunnel,  Switzerland  and  Italy ;  a 
second  passenger  terminal  at  Nice's 
international  airport,  and ;  a  variety  of 
works in and around Nancy ranging from 
flood  protection and the completion  of a 
industrial 
by-pass  to  rehabilitation  of 

6 

wasteland.  The  Bank  also  advanced  a 
further  loan  for  the  waste  water  treat 
ment  plant serving the  Marseilles  conur 
bation  where  a  new  physiochemical 
installation  will  be  constructed  under 
ground  for  processing  foul  water,  while 
plant  for  treating  sludge  produced  by 
this  installation  is  to  be  located  incons 
picuously  in  an  old  quarry.  The  project 
includes  a  6km  marine  outfall  pipe  for 
disposing  of  pre-treated  effluent. 
Four  global 
totalling  167m 
loans 
(Ffrs  1.2bn)  stepped  up  the  Bank's  co 
operation  with  Crédit  Local  de  France 
(formerly  "CAECL")  with  a view  to  fund 
ing  small  and  medium-scale  items  of 
public 
the 
road  and  water-supply 
departmental 
networks  in  assisted  areas.  The  pro 
ceeds of  these credit  lines and of  others 
concluded the  previous year were drawn 
on  during  1987  to  support  80  smaller 
funds 
infrastructural 
amounting 
58.5m 
(Ffrs  404.5m). 

infrastructure,  principally 

schemes  with 

toto 

to 

in 

this 

Lending  in  the  energy  sector  amounted 
to  123m  (Ffrs  846m)  and  was  directed 
towards further  backing for  construction 
of the first two  units (1  280  MW each) of 
Flamanville  nuclear  power  station 
in 
Manche,  interconnection  of  the  French 
and  British  electricity  grids  via  eight 
subsea  cables  (with ^ a  combined  capa 
city  of  2 000  MW)  laid  under  the  Chan 
nel  between  Calais  and  Dover.  This 
project  is designed to  provide  a reliable 
and efficient  link  between the  two  grids 
allowing  for  pooling  of  energy  resour 
ces.  The  twin  promoters.  Electricité  de 
France  and  the  Central  Electricity  Gen 
erating  Board,  have  received  a  total  of 
some  Ffrs  l.lbn  and £120m  respectively 
for 
reciprocal  supply  scheme. 
Another  loan  in  France's  energy  sector 
supported  construction  of  a new  house 
hold  waste  incineration  plant  at  Lyon-
Gerland  which,  as  Well  as  significantly 
reducing  atmospheric  pollution  in  the 
Lyons  area,  will  be  equipped  with  heat 
recovery  facilities  to  supply  power  to 
the  grid  and to  feed  the  existing  district 
heating  system  with  hot  water  from 
steam  generated  at  the  plant. 
The  list  of  Bank  lending  operations  in 
France  in  1987  is  completed  with  ment 
ion  of  a global  loan for  22m (Ffrs  150m) 
to. Crédit  Local  de  France  .for  smaller, 
schemes  meeting 
the  Community's 
energy  objectives.  The  finance  will  be 
local  and  regional 
parcelled  out 
in 
investment 
authorities 

to 
for  capital 

reriewable  sources  of  energy,  change 
over  from  oil  to  coal  and  other  appro 
priate  fuels,  electricity  distribution,  heat 
recovery  and  the  construction  of  mini 
hydroelectric  plants. 

With  the  productive  sector  and commu 
nications  infrastructure  making  a  partic 
ularly  strong  showing,  lending  in  Spain 
in  1988  soared  to  707m  (Ptas  99bn),  of 
which  114m  (Ptas  16bn)  was  provided 
from  NCI  resources. 
investment  by  small  and 
Productive 
medium-sized firms  in industry  attracted 
417m  (Ptas  58bn),  with  an  NCI  compo 
nent of 92m (Ptas  13bn). The funds were 
advanced  in the form  of  global  loan cre 
dit  to : 

-Banco  de  Crédito  Agricola  for  onlend 
ing  to  agricultural-processing  ventures ; 
-Banco  de  Crédito  Industrial,  Banco  de 
Bilbao,  Barico  de  Santander,  Banco 
Commercial  Espanol,  Banco  Hispano 
Industrial,  Banco  Hispano  Americano, 
Banco  Vizcaya  and  Banco  Popular 
Espanol :  for  small  and  medium-scale 
ventures  and allied service-sector  activi 
ties  (from  EIB  own  and  NCI  résources) 
and  for  tourism  (EIB  own  resources) ; 
-Liscaya  (Leasing  Bancaya  SA),  Uninter 
Leasing  SA  (member  of 
the  Banco 
Hispano  Americano  Group)  and  Lisban 
(a  Bjanco  de  Bilbao  subsidiary).  These 
establishments  will pass sub-loans  on to 
smaller  businesses  or  public  bodies  as 
straight  investment  credit  or  as  finance 
leasing  plant  and  equipment, 
for 
particularly  for  projects with  a high-tech 
or  innovative  slant ; 

in 

-Caja  General  de  Ahorros  de  Canarias : 
the  Canary 
for  capital  projects 
Islands. 
Actual  credit  allocations  during  the  year 
from  these  and  previous  global  loans 
benefited  300  smaller  ventures  with 
finance  totalling  90m  (Ptas  13bn),  sub-
loans from  NCI resources  accounting  for 
63m  (Ptas  9bn)  of  this  amount  and  fun 
ding  175  of  the  said  ventures. 
Finance for  infrastructual schemes ran to 
218m (Ptas  30bn) the  bulk  of  which  was 
directed towards improving  road and rail 
links.  Noteworthy  here  are : the  project 
designed  to  remove  bottlenecks  and  to 
upgrade  safety  conditions  on  the  La 
Corufia-Port  Bou  section  of  the  railway 
line  between  Galicia  and  Cataluna ;  the 
building  of  a road  bridge  on the  Guadi 
ana  between  Ayamonte  and  Portugal ; 
works  on  the  N4  linking  Madrid  to 
Seville,  Cordoba  and  Cadiz ;  and  sec 

tions  of  the  NI,  N2  and  N620  between 
Madrid  and  Portugal  and  between  the 
Spanish capital and the South of France. 
Other  loans  were  focused  on  improve 
ments to  main roads  in Andalucia, nota 
bly  the  Seville-Grenada-Baza  and Jerez-
Antequera  motorways  and  the  express 
way  between  Guadix  and  Almeria. 
Funds  were  also  advanced  for  sections 
of  the  Ugaldebieta  motorway  designed 
to  connect  Bilbao  with  the  Nervion  val 
ley  and  with  the  motorways  to  Burgos, 
Barcelona,  San  Sebastian  and  France. 

in 

the 

local  authorities 

Still  in  the  transport  sector,  the  Bank 
granted a loan towards construction of a 
road  haulage  centre  near  Bilbao facilita 
ting  EEC goods  traffic.  This  project  will 
centralise  customs  clearance,  loading/ 
unloading,  freight  storage,  parking  and 
safeguarding  of  heavy  goods  vehicles 
conducting  cross-frontier 
trade.  More 
modest  infrastructural  schemes  embra 
cing  road,  water  supply,  sewerage  and 
sewage  disposal,  electrification  and 
urban  development  works  undertaken 
by 
less-
developed  regions  are  being  financed 
through a global loan furnished to Banco 
de  Crédito  Local.  Finally,  the  EIB  sup 
ported  construction  of  five  dams  on 
tributaries  of  the  Guadiana  under  a pro 
ject  designed to  put more, better-quality 
water  on tap to  household and industrial 
consumers, to create scope for  irrigation 
and  to  offer  protection  against  flooding 
in  western  Extremadura. 
The  energy  sector 
took  up  73m 
(Ptas  lObn), the  best  part  of  this  in  the 
form  of  a loan for  51m (Ptas  7bn) for an 
ambitious  hydroelectric  scheme compri 
sing  dams  and  two  power  stations  on 
the  Jucar,  50km south-west  of  Valencia, 
with  a  combined  installed  capacity  of 
870. MW.  The  balance  of  financing  in 
this  sector  was  accounted  for  by  a glo 
bal  loan  for  22m  (Ptas  3bn)  to  Barico. 
Atlantico  for  renovating  and  moderni 
sing  boilers  in  small  and  medium-sized 
undertakings  with  a  view  to  energy-
saving  and  to  converting  units  from  oil 
to  natural  gas.. 

Bank  lending  in  Portugal  amounted  to 
390m 
(Esc.  63.5bn),.  comprising  10m 
(Esc.  I.èbn)  from  NCI  resources.  The 
principal  recipients  were  private-sector 
concerns,  both  smaller  industrial  firms 
and  promoters  mounting 
larger-scale 
manufacturing  projects. 
Development  of  the  Neves  Corvo  cop 
per  mine  in Alentejo  arid construction  of 
t.p.a.  ore-processing  plant 
a 

i.3m 

attracted  180m  (Esc.  29bn).  Forecast 
production  is  put  at  between  250 000 
t.p.a.  of  concentrates. 
and  470 000 
Reserves are estimated to total 25m ton 
nes of  ore  with  an average  copper  con 
tent  of  8o/o, making  this  deposit  one  of 
the  largest  in the world with  such a rich 
copper  content. 
The  EIB provided  21m (Esc.  3.5bn)  in all 
in  loans towards  construction  of  a hotel 
complex  in the Algarve  and for  a factory 
producing  medium-density  wood-fibre 
panels  in  the  Viseu  district. 
A  total  of  80m  (Esc.  13bn)  was  made 
available  to  SMEs  via : 
-blanket  global  loans  to  the  State  from 
which  every corrimercial  bank and finan 
cial institution throughout the length and 
breadth  of  thé  country  is  authorised  to 
seek  credit 
in 
agreement  with 
lAPMEl  (Instituto  dé 
Apoio  às  Pequenas  e  Médias  Empresas 
Industriais) ; 

for  projects  selected 

-  a  custom-made  global  loan  to  Banco 
Pinto  e  Sotto  Mayor  for  small  and 
medium-scale  ventures  in the  agricultur 
al,  fisheries  and  agricultural-processing 
sectors  intended  to  facilitate  the  struct 
ural  adjustment  of  Portugal's  farming 
sector; 
-global  loans,  drawing  on  both  EIB own 
and  NCI  resources,  to  Banco  Portuguès 
de Investimento for capital investment  in 
industry  and  allied  services,  energy-
saving  schemes  and  tourism  ventures. 
In all, 121 SMEs in Portugal received cre 
dit  under  global  loan  facilities  accorded 
during  the  year  or  still  open  from  the 
previous  year.  These  SMEs  absorbed  a 
total  of  44m  (Esc.  7bn),  of  which  3.5m 
(Esc.  580m) from  NCI resources went  to 
six  of  the  enterprises  concerned. 

In line with the  recommendations  of  the 
1985  National  Roads  Programme  gover 
ning  investment  in  priority  trunk  roads, 
EIB  support  for  transport  infrastructure 
(87m  ECUs/Esc.  14bn)  continued  to  be 
directed towards  upgrading  various seg 
ments  of  the  national  road  network  by 
financing  carriageway  renovation  works 
or.the  construction  of  completely  new 
sections.  The  Bank  also  helped 
to 
improve  the  road  between  Madeira  air 
port  and the  island's capital, Funchal, as 
well  as contributing  towards  opening  up 
access  to  tourist  areas  vvest  of  Funchal. 
Further  road  schemes  attracting  EIB 
backing  centred  on construction  of : two 
sections  of  road,  one  north  of  Lisbon, 
the  other  in  the  north  of  the  country 

designed,  in both cases, to  smooth  con 
nections  with  a  new  bridge  into  Spain ; 
sections  of  motorway  serving  Porto, the 
Ave  and  Sousa  valleys,  key focal  points 
for  industry  in the  north  of  the  country, 
and  a  road  bridge  across  the  Guadiana 
linking  the  Algarve  with  Andalucia. 

further 

A  scheme  to  supply  the  town  of  Porto 
with,  at 
the  outset,  an  additional 
11m  cu.m of water  per annum claimed a 
loan  of  6.6m  from  the  Bank  (Esc.  l.lbn) 
for  offtake,  treatment  and  distribution 
two  projects  on 
works.  A 
Madeira  attracted  credit  totalling  9m 
(Esc.  1.5bn)  for  sewage  treatment  and 
disposal  facilities  in  the  Funchal  area 
and. for  a  solid  vyaste  composting  plant 
serving  some  80% of  the  island's  popu 
lation  and  incorporating  equipment  for 
the  recovery  of  ferrous  material,  both 
projects  of  clear  benefit  to  the  environ 
ment. 

The  Bank advanced 6m (Esc.  Ibn)  in the 
energy sector with the aim of  expanding 
the  local  power  grid  on  Säo  Miguel  and 
Terceira  islands in the Azores by  reinfor 
cing  two  transmission  and  distribution 
networks  and 
introducing  a  systems 
control  component.  This  project  will 
make  for  more  reliable  power  on  the 
two  islands: 

Aggregate  Bank  financing  in  Denmark 
in  198.7 came  to  315m  (Dkr  2.5bn)  com 
prising 32m (Dkr  250m) from  NCI resour 
ces. Virtually  all  of  this credit  was taken 
up  by  the  energy  sector  for  schemes 
geared to  harnessing  indigenous  natural 
gas  resources  and to  encouraging  rnore 
rational  use  of  energy.  The  building  of 
district  heating  grids,  for  example,  will 
both  lessen  Denmark's  dependence  on 
outside  sources of  energy  and substant 
ially  reduce  atmospheric  pollution.  The 
EIB  continued  its  support  for  the  con 
struction  of  a distribution system to  pipe 
hot water  from  power  stations  and solid 
waste  incineration  plants  in  the  Copen 
hagen conurbation  to  ten  outlying  muni 
cipalities.  It  also  financed  similar  works 
in Ârhus  and  in  numerous  municipalities 
along  the  Lillebaeit.  In  addition,  loans 
were  made  available  for  the  district 
heating  grids  in  Gentofte,  Hornslet  and 
the  western  suburbs  of  Copenhagen. 

It  is significant  that, since  establishment 
of  Denmark's  Energy  Plan  in  1976,  the 
EIB  has  provided  1  700m  (Dkr  14bn)  for 
capital 
energy  sector. 

this  country's 

investment 

in 

Outside  the  energy  sector,  the  EIB con 
cluded  a global  loan for  32m (Dkr  250m) 
with  Finansieringsinstituttet  for  Industri 
og  Handvaerk.  Drawn  from  NCI  resour 
ces, the  proceeds  of  this  credit  line  will 
be  passed  on for  productive  investment 
by  SMEs.  The  number  of  small  and 
medium-scale  ventures  financed  under 
the  heading of this  and previous  lines of 
credit  already  on  tap  came 
to  46, 
accounting  between them  for  5m ECUs/ 
Dkr 41m. 

lent  276.5m 
the  EIB 
In  Germany, 
(DM  574m).  The  best  part  of  this  went 
towards schemes to protect the environ 
ment  which  in  some  cases  contributed 
at the  same time  towards  attainment  of 
Community  energy  objectives.  Hence, 
148.5m  (DM  308m)  in  all  was  directed 
towards  bringing  combined  heat-and-
power  stations  into  line  with  national 
and Community  legal standards. Located 
in  Hanover  (replacing  units  operated  by 
Volkswagen,  Continental  Gummi  and 
Stadtwerke  Hannover),  also  north  of 
Saarbrücken  (Weiher  111), as  well  as  in 
Duisburg  and  in  Saarbrücken  itself,  the 
power  stations  will  either  be  fitted  with 
flue  gas 
installations  or 
equipped  with  more  energy-efficient 
and  less  polluting  coal-fired  steam  gen 
erators. 

treatment 

A  loan  for  18m (DM  37m)  was  provided 
for  constructing  a  dam  to  control  the 
flow  of  the  Wupper  in  the  Bergisches 
(North  Rhine-Westphalia).  The 
Land 
project  will  permit  regulation  of  the 
yield  of  the  Wupper,  guarantee  ade 
quate  water  supplies  to  firms  in  the 
Lower  Wupper  Valley,  improve  water 
quality  in the  river  and  prevent  flooding 
over  wide  areas  in  winter. 

There  was  continued  cooperation  with 
Westdeutsche  Landesbank  Girozentrale 
through  the  medium  of  global  loans 
totalling  96m  (DM  200m)  focused  on 
srnall  and  medium-scale  infrastructural 
projects  Intended  to  reduce  pollution 
and to  encourage energy  saving. Priority 
will  be  accorded  to  investment  centred 
on the  collection, treatment,  disposal  ór 
recycling  of  solid,  gaseous  and  liquid 
waste, both industrial and domestic, and 
on  the  manufacture  and  installation  of 
equipment,  such  as  measuring  and 
monitoring  systems,  to  safeguard  or 
enhance  the  environment. 

received  a 

Industry 
for  14m 
(DM  29m) for  construction  of  an electro 
nic  components  factory  and  installation 

loan 

to 

of  a  new  micro-electronics  production 
line  in  Schleswig-Holstein 
introducing 
sophisticated  EDP infrastructure  serving 
to  increase the  competitiveness  of  Euro 
pe's  entrepreneurial  sector. , 
In Greece, the  EIB lent  165m (Dr  26bn), 
comprising  4.6m  ECUs  (Dr  700m)  from 
NCI  resources,  for  protection  of  the 
environment,  electricity  generation  and 
distribution,  and 
infrastructural  sche 
mes,  notably  in  the  transport  sector. 
Small  and  medium-scale  industrial  ven: 
tures  also  attracted  part  of  this  credit. 
In  response  to  the  need  to  safeguard 
the  EIB  helped 
the  environment, 
to 
finance  works 
to  modernise  and 
upgrade  an  oil  refinery  at  Aspropyrgos 
near  Eleusis 
the  north-west  of 
Athens.  These  works  include  installa 
tions  to  reduce  exhaust  fumes  and  pol 
lutant  effluent.  Finance  towards  con 
struction  of  sewerage  systems  and 
wastewater  treatment  plant  at  Psyttalia 
to  the  south-west  of  Athens  will  also 
serve  to  clean  up  the  Saronic  Gulf  as 
part.of  a wider  scheme to  reduce shore 
line  pollution. 
With  lending  targeted  towards  streng 
thening  the  country's  electricity  supply 
system, the  Bank aided : construction  of 
a  hydroelectric  power  station  on  the 
Acheloos  near  Stratos ;  working  of  an 
open-cast  lignite  mine  at  Amynteon  in 
north-western  Greece;  erection  of  a 
nevv  high-voltage  transmission  line  link 
ing  two  sub-stations,  one  at  Kardia 
(Western  Macedonia)  and  the  other  at 
Aghios  Stephanos  (Athens), and ; estab 
lishment  of 
two  mini  hydroelectric 
plants  in  Central  Greece. 

Infrastructural  schemes  supported  by 
the  EIB  included  railway  rolling  stock 
modernisation  and  renewal  through  the 
purchase  of  new  high-speed  passenger 
train  sets,  extensions  to  water  supply 
works  in  the  Thessaloniki  conurbation, 
including  investment  in  purification  sys 
tems,  and  upgrading  of  different  sec 
tions  of  the  road  network  in Athens  and 
Attica. 

the 

Under 
Integrated  Mediterranean 
Programme  (IMP)  for  Crete,  the  Bank 
concluded a contract for  financing smal 
infrastructural  works  on  the 
ler-scale 
island,  notably  irrigation  schemes, fore 
stry  development, 
to 
roads,  harbour  and  airport  installations, 
water  supply,  sewerage  and  sewage 
disposal, vocational  training, centres  and 
environmental  works  to  protect  against 

improvements 

8 

forest  fires,  set  up  observation  posts 
and  provide  coastal  defences. 
New  global  loans  were  made  available 
to : (a)  the  Agricultural  Bank  of  Greece, 
the  proceeds  earmarked  for  onlending 
for  small  and  medium-scale  on-farm, 
industrial  and  agricultural-processing 
ventures,  plus  modest  irrigation  sche 
mes ;  (b)  the  Hellenic  Industrial. Deve 
lopment  Bank  (ETBA),  the  credit  desig 
nated  for  smaller-scale  capital  invest 
ment  in  industry,  allied  services  and the 
tourism  sector,  and;  (c)  the  Hellenic 
Organisation  of  Small  and  Medium-
Sized  Industries  and  Handicrafts  (EOM 
MEX), recipient,  in this  case, of  a global 
loan  from  NCI  resources  for  funding 
smaller  items  of  capital  investment  in 
industry. 

Ongoing  allocations  made  during  the 
year  from  eariier  global  loans  totalled 
37m  (Dr  6bn)  and  contributed  towards 
91  small  and  medium-scale  ventures. 
Nine  ventures  attracted  1m  ECUs 
(Dr  150m) 
the  abovementioned 
NCI  global  loan  provided  in  1987. 

from 

Bank  lending  in  Ireland  in  1987 amoun 
ted 
funds 
to.  177m  (IR£149m).  The 
helped  to  finance  acquisition  by  Aer 
Lingus  of  two  Boeing 737-300 aircraft  as 
part  of  the  company's  fleet  modernisa 
tion  and  renewal  programme.  Operating 
with  reduced  noise  levels,  better  fuel 
efficiency  and  improved  landing  capab 
ility  in bad weather, the new aircraft  will 
be  put  onto  the  busy  Dublin-London 
route  and  will  also  be  used  for  charter 
flights to  Greece, Italy, Spain and Portu 
gal-

With  a view  to  preserving  an  important 
part  of 
Ireland's  cultural  heritage,' 
finance was also directed towards resto 
ration  works  at  Dublin  Castle  and  the 
construction  of  new conference  facilities 
there.  Other 
infrastructure  supported 
included  the  first  phase  of  a  new  ring 
road  around  the  western  perimeter  of 
Dublin,  various  projects  to  improve  and 
modernise  the  national  primary  road 
including  construction  and 
network, 
upgrading  of 
roads  near  Dublin,  in 
Waterford,  County  VVicklow  and  County 
Donegal,  and  the  building  of  a  bridge 
over the  River  Shannon  at  Limerick.  Fur 
ther  loans were  provided  for  a reservoir 
at  Belgard to  improve  water  supplies  in 
the  Tallaght  area  and  for  capital  invest 
ment  designed  to  increase  the  capacity 
of  the  main  Dublin  sewage  treatment 
plant  às  well  as  for  a  series  of  smaller 

matching  vvater  and  sewerage  works 
throughout  the  country.' 

The  Bank  assisted  modernisation  of  Ire 
land's  telecommunications  systems  with 
loans  for  installation  and  extension  of 
telephone  exchanges  (many  using  digit 
al 
technology),  extension  of  urban, 
trunk,  telex  and  data  transmission  net 
works,  the  laying  of  optical  fibre  links 
and  improvements  to  radio  transmission 
systems. 
As  part  of  a  continuing  programme  to 
develop  Irish  forests,  the  EIB  contribu 
ted  towards  investment  in  forestry  and 
related  activities  at  various 
locations 
throughout  Ireland. 
Finally,  a  global  loan  was  made  avai 
lable to the  Bank of  Ireland for  financing 
investment  by  small  and  medium-sized 
enterprises  in  industry  and  tourism. 
Sixty-two  smaller  ventures  attracted  7m 
(IR£5.5m)  in all during the year from glo 
bal  loan  credit  already  activated. 

In  Belgium,  the  Bank  furnished  37m-
(Bfrs  1.6bn)  in  loans  for  capital  invest 
ment  in  industry  exploiting  advanced 
technology  and  contributing  to .the  con 
version  of  areas  hit  by  closures  in  the 
coalmining sector : at Hasselt  in Limburg 
Province,, the  Bank  financed  extension 
and  automation  of  a  factory  producing 
compact  disc  players,  while  at  Mol  in 
Antwerp  Province,· EIB funding  aided the 
installation  of  new- plant,  the  first  of  its 
kind  in the  Community, designed for  the 
manufacture  of  thin  and extra-thin  glass 
used  for  applications  in  the  electronics, 
medical  equipment,  optoelectronics  and 
solar  energy  sectors. 

In  the  Netherlands  two  loans  totalling 
18m (Fl  42m)  will  also serve  to  diversify 
economic  activity  in  former  coalmining 
areas of  southern  Limburg ; the  projects 
relate to : construction  of  a plant  for  the 
production  at  Geleen  of  aspartame,  an 
artificial  sweetener,  using  a  high-tech 
enzymatic  process  representing  innova 
tive technology  for  the  EEC, and ; instal 
lation  of  a flight  simulator  at  Maastricht 
airport  close  to  KLM's  training  school 
for  pilots 
flying  Fokker  F-50s  over 
domestic  and  international  routes.  The 
simulator  is  unique  in  Europe  inasmuch 
as there  is, as yet,  only  one  other  of  its 
kind  in  use  in  New  Zealand. 

In the  Grand  Duchy  of  Luxembourg, a 
for  1.6m  ECUs  (Lfrs  68m)  was 
loan 
made  available  for  building  a tanker  to 
transport  petroleum  products  and  che 

micals  along  the  Rhine  and the  Moselle 
between  Rotterdam,  Antwerp,  London, 
Hamburg  and  Luxembourg. 

Under  a  special  authorisation  by  the 
EIB's  Board  of  Governors  in  keeping 
with  Article  18 of  the  Bank's  Statute, a 
loan for  109rii was provided for a project 
of  direct  interest  to the  EEC as a whole, 
although  situated  outside  the  Member 
States'  European  territories :  a  gasline 
across  Austria 
conveying  Soviet 
natural  gas  into  the  Community  and 
reinforcing  the  integrated  European  gas 
grid.  The  378km  complete  loop line  will 
follow  the  coursé  of  the  existing  Trans-
Austria-Gasline  financed  previously  by 
the  Ba'nk  and  which  runs  from  the 
Czechoslovakian/Austrian  border  near 
Baumgarten  to  the  Austrian/Italian  bor 
der  near  Tarvisio.  The  present  project 
includes  extensions  and  improvements 
to  the  Baumgarten  compressor  station. 
In  addition  to  helping  to  diversify  the 
EEC's energy  supplies, the  new  line  will 
bring  benefits  in terms  of  reduced Com 
munity  oil  imports. 

Sharp  increase  in  financing  for  thé 
ACP  States  under  the  Third  Lomé 
Convention  and  for  the  OCT 

from 

risk  capital 

The  financial  year  1987  saw  the  EIB 
stepping  up  considerably  its  financing 
operations  mounted  under 
the  Third 
Lomé  Convention  activated  the  previous 
year.  Similar  impetus  was  accorded  to 
parallel  aid .specifically  earmarked  for 
the  Overseas  Countries  and  Territories. 
A  total  of  161.2m  was  made  available 
from  the  Bank's  own  resources  (')  and 
188.2m 
resources, 
making  for. 349.4m  in  all,  in  contrast  to 
209.7m  in  1986. Loans were  advanced  in 
33 separate  ACP  States  and  two  OCTs, 
while  19 ACP States also  benefited from 
finance  for  broad-based  regional  pro 
jects  in  West  and  East  Africa.  Angola 
and  Mozambique  became  beneficiaries 
of  Bank  lending  for  the  first  time  after 
joining  the  ranks  of. the  ACP  countries 
when  the  Third  Lomé  Convention  came 
into ; force. 
As in previous years, funding  by the  EIB 
in  1987  went  mainly  to  industry  and.to 

(')  Ttiese  loans carried  a maximum  interest  subsidy  of  3%, 
drawn  from  the  resources  of  the  European  Development 
Fund,  such  that  the  actual  rate  of  interest  borne  by  the 
borrower  amounted  to  5°/o. 

the  agricultural-processing  sector  (270/o 
for  fairly  large  projects  and  31o/o  for 
SMEs via national or regional dfcs). Next 
in line, with the emphasis on making the 
most  of  indigenous  resources, came the 
energy  sector  (22o/o),  followed  by  tele 
communications 
(90/0),  water  supply 
(70/0)  and  port  infrastructure  (30/o). 

for 

Some  two  thirds  of  Industrial  projects 
financed  under individual  loans or global 
loans  (115  smaller  ventures  attracting 
32m)  were  designed  first  and  foremost 
to  exploit  domestic  resources,  to  pro 
mote  local  import-substitution  activities 
or to develop exports. The EIB continued 
its 
the  rehabilitation  of 
lending 
infrastructure  either  by 
industry  and 
assisting  firms  faced  with  economic  dif 
ficulties  to  modernise  or  restructure,  or 
by  contributing  to  bolstering  the  finan 
ces, of  companies  managing  public  utili 
ties  and to  ensuring the smooth  working 
of  local  water  and  electricity  supplies. 
In  addition,  assistance  was  given  to 
improving 
telecommunications,  water 
supply,  and  electricity  generation  and 
distribution  with  a  view  to  bettering 
living  conditions, creating  a more favou 
rable economic  climate  for  business and 
helping.  countries 
their 
balance  of  payments,  especially  by 
reducing  oil  imports. 

redress 

to 

Aggregate 
financed  totalled  1175m. 

capital 

investment 

co-

mie  Community  of  West  African  States 
(Benin,  Burkina  Faso, Cape  Verde,  Ivory 
Coast,  Gambia,  Ghana,  Guinea, Guinea-
Bissau,  Liberia,  Mali,  Mauritania,  Niger, 
Nigeria,  Senegal,  Sierra  Leone  and 
Togo) 
the  establishment  of 
three  microwave  links  for  international 
and  national  communications  in  Guinea, 
Guinea-Bissau, Mali and Mauritania, and 
the installation of exchanges and related 
equipment. 

through 

-  6m  to  the  East  African  Development 
Bank  (EADB)  and  three  loans  of  2m 
ECUs*  each  to  Tanzania,  Uganda  and 
Kenya  for  the  purpose  of  funding  these 
countries' 
in 
EADB.  The  proceeds  of  the  operations 
will  help  to  finance  small  and  medium-
scale  industrial,  agricultural  processing 
and tourism ventures  in the three  States 
concerned. 

increased  shareholdings 

for : 

resources) 

Kenya : 34.5m  (including  7.5m  from  risk 
capital 
(a)  selective 
rehabilitation  and  modernisation  of 
berths  and  oil  terminals  at  Mombasa, 
the  country's  principal  port  which  also 
serves  parts  of  Uganda,  Rwanda, 
Burundi,  Zaire  and The  Sudan ;  (b)  sup 
porting  small  and  medium-scale  ventu 
res  under  a global  loan  to  the  Develop 
ment  Finance  Corporation  of  Kenya ; (c) 
uprating  tea-processing  capacity  with  a 
view  to  boosting  small-holder  tea  pro 
duction ;  (d)  funding  an  increase 
in 
EADB's  share  capital  (cf  "regional  pro 
jects"  above). 

List  of  financing  operations  mounted in 
the  ACP  States  and  the  OCT in  1987 

As  in  previous  years,  there  was  a  high 
incidence  of  co-firiancing  operations  in 
vvhich  EIB credit  was  made  available  in 
tandem with  bilateral aid from the Mem 
ber  States, multilateral  aid from  interna 
tional  institutions  and  finance  provided 
by  the  Commission  of  the  European 
(European  Development 
Communities 
Fund)  and  other  banks. 

-  21m*  to 

Regional  projects: 
the 
ECOWAS  Co-operation,  Compensation 
and  Development  Fund  for  the  second 
phase  of  a  programme  to  extend  and 
interconnect 
telecommunications 
networks  of  the  members  of  the  Econo-

the 

*  from  risk  capital  resources 

10 

Zimbabwe :  32m  for :  (a)  extension  of 
installations  for  the  treatment,  pumping 
and  distribution  of  drinking  water  in 
Harare ; 
(b)  supporting  small  and 
medium-scale  ventures  through  a global 
loan  to 
the  Zimbabwe  Development 
Bank ;  (c)  construction  of  two  abattoirs 
in the south of the country  (at  Bulawayo 
and  Masvingo)  plus  a  new  beef-
processing  centre  at  Harare,  projects 
designed 
to  develop  and  maximise 
stockfarming. 

Nigeria:  30m  to 
the  New  Nigerian 
Development  Company  for  the  promo 
tion of small and medium-scale ventures 
in the  industrial,  agricultural-processing, 
mining  and  tourism  sectors,  mainly  in 
the  country's  ten  northern  States. 

Ethiopia:  21m*  for  development  of  an 
open-cast  gold  mine  at  Lega  Dembi  in 
the  south  of  the  country. 

Ivory  Coast:  16.9m for:  (a)  modernisa 
tion  and  replacement  of  installations  at 
a  textile  mill  in  Abidjan  (new  spinning 
shop  plus adaptation  of  a weaving  shop 
where projectile  looms will replace shut 
tle  looms) ;  (b)  renewal  and  modernisa 
tion  of 
three  cotton  ginning  plants 
(reconstruction  of  a ginnery  at  Korhogo 
and renovation  of  ginneries  at  Boundiali 
and  Mèrikono). 

Botswana : 16m (including 5m from  risk 
capital  resources)  for:  (a)  construction 
of  an  abattoir  in  Francistown  (north 
eastern  Botswana)  with  a  processing 
capacity  of  up to  500 head  of  cattle  and 
200  head  of  small  ruminants  a  day  and 
rationalisation  of  the  general  processing 
and  marketing  of  beef,  the  main  source 
of  income  and  employment  for  8OO/0 of 
the country's population ; (b) support for 
small  and  medium-scale  projects  via  a 
global  loan  to  the  Botswana  Develop 
ment  Corporation  Limited. 

Madagascar:  15^5m,* for  rehabilitation 
of  power  generation  and  transmission 
facilities  and  installation  of  additional 
distribution  capacity  with  a  view 
to 
upgrading  reliability  of  power  produc 
tion  and  supply  and  to  making  more 
efficient  use  of  generating  capacity  by 
virtue  of  an  improved  distribution  net 
work. 

facilities  at  Nouadhibou, 

Mauritania:  15m*  for:  (a)  improving 
and extending  electricity  generation  arid 
supply 
the 
country's  main  port  and  economic  cen 
tre ;  (b)  final  adjustments  to  iron  ore 
processing  facilities  at  SNIM's  Guelb  el 
Rhein  enrichment  plant  in  the  Zouerate 
region  with  a  view 
improved 
productivity  of  iron  ore, the  mainstay  of 
Mauritania's  economy. 

to 

Niger:  14.3m*  for  construction  of  a 
high-voltage  transmission 
line  over  a 
distance  of  298km  between  Maradi  in 
Niger  and  Katsina  in  Nigeria  to  the 
south  for 
improving 
the  purpose  of 
Niger's  powei^ supply  drawn  from  hydro 
and  gas-fired  steam  plants. 

Mauritius:  13m (including  3m from  risk 
capital  resources)  for  rehabilitation  of 
Fort Victoria  thermal  power  station  (62.4 
MW),  small  hydroelectric  generating 
plants  (3.4  MW 
in  all)  and  improve 
ments  to  the  distribution  network.  , 

Somalia:  13m*  for  rehabilitation  and 
expansion  of  electricity  generating 
equipment, transmission and distribution 
facilities  in  Mogadishu. 

500 000 people  to  be served  and appre 
ciably  improving  health conditions  in the 
two  towns. 

Senegal:  12m* 
for  upgrading  and 
expanding the  domestic telecommunica 
tions  network,  chiefly  by  recourse  to 
digital  technology,  through  installation 
of  close  on  40 000  telephone 
lines, 
provision  of  buildings,  cables, transmis 
sion  networks  and  microwave  links  and 
the creation  of  a national  data transmis 
sion  network. 

Zambia:  10.2m*  to  the  Development 
Bank  of  Zambia  for  firiancing  small  and 
in  industry, 
medium-sized  enterprises 
agricultural-processing,  mining 
and 
tourism. 

Bahamas:  9.1m  towards  financing  the 
improvement  and  expansion  of  electri 
city supply services in the  Family  Islands 
by  constructing  a  diesel  power  station 
(6  MW)  on  the  island  of  Abaco,  instal 
ling  three  generating  units  with  a  total 
capacity  of  4.5  MW  on  the  island  of 
Bimini  and  four  on  Eleuthera  Island  (6 
MW  in  all)  together  with  increases  in 
generating  capacity  (combined  total  of 
some  10  MW)  on  seven  other  islands. 

Ghana :  7m*  for  the  second  phase  of 
the  programme  to  rehabilitate  the Tema 
refinery,  contributi.ig  towards  improving 
environmental  protection,  making  more 
rational  use  of  energy  and  enhancing 
workers'  safety. 

Tanzania : 7m* : (a)  part  of  this  to  Tan 
ganyika  Development  Finance  Company 
Limited  for  financing  small  and  medi 
um-sized  enterprises  in  the  industrial, 
agricultural-processing 
tourism 
sectors ; (b) part to the State for funding 
an  increase  in  EADB's  share  capital  (cf 
"regional  projects"  above). 

and 

Benin :  6.5m*  for  improving  water  sup 
plies  to  Cotonou  and  Porto  Novo,  the 
two  largest towns  in  Benin, by means of 
drilling  new  boreholes, constructing  and 
extending  water  treatment  plants  and 
elevated  storage  reservoirs,  rehabilita 
ting  existing  reservoirs  and  laying distri 
bution  pipes  enabling  an , additional 

'  from  risk  capital  resources 

resources) 

for  extending 

Malawi:  6.5m  (including  2.5m  from  risk 
capital 
the 
water  supply  SYStem  in  the  capital, 
Lilongwe,  by  constructing  a  new  4.5m 
cu.m storage  dam and the first  phase of 
a  new  32 000  cu.m  per  day  treatment 
plant. 

Jamaica  : 5.25m for  expanding  facilities 
at  the  port  of  Montego  Bay  in  order  to 
cater for  the  increase  in cruise ship  traf 
fic  and  to  offer  more  space  for  cargo 
handling :  construction  of  a  quay, 
dredging  of  the  entrance  channel, wide 
ning  of  the  inner  basin and  construction 

Angola :  4m*  to  Banco  Nacional  de 
Angola for  financing, under  the  National 
(FUNIN), 
Investment  Fund 
feasibility 
studies  or  actual 
implementation  of 
small  and medium-scale  ventures, espe 
cially  those  intended  to  help  meet  the 
staple  needs  of  the  population. 

for 

installation  of 
Dominica:  3.8m* 
three  generating.units  with  a  combined 
capacity  of 4.3 MW on the  Clarke's River 
to  enable  the  island  to  meet  increasing 
electricity  demand  without  recourse  to 
oil  imports. 

Belize:  3.5m  (including  1m  from  risk 
capital  resources)  for  financing  small 
and  medium-scale  ventures 
the 
industrial,  agricultural-processing  and 
tourism  sectors  through  the  Develop 
ment  Finance  Corporation  of  Belize. 

in 

to 

Swaziland :  3m* 
the  Swaziland 
Industrial  Development  Company  Limi 
ted  for  financing  small  and  medium-
sized  enterprises  in  industry,  agricul 
tural-processing,  mining  and  tourism. 

ginnery 

Mozambique:  3m*  for  rehabilitating  a 
and 
cotton 
a 
at 
Chilembene  to  help to  provide  the  capi 
tal with vegetables throughout the year. 

vegetable-processing 

at  Chokwe 

plant 

Sâo  Tome  and  Principe : 2.1m* for  the 
installation  of  a  palm  oil  mill  at  Ribeira 
Peixe  in  the  south  of  the  island  as  part 
of  a  plantation  programme  designed  to 
enable  .the  country 
to  achieve  self-
sufficiency  in  edible  oil. 

Comoros:  2m*  to  the  Comoros  Deve 
lopment  Bank  for  financing  small  and 
in  industry, 
medium-sized  enterprises 
agricultural-processing, 
and 
transportation. 

tourism 

Uganda :  2m*  to  the  State  for  funding 
an  increase  in  EADB's  share  capita)  (cf 
"regional  projects"  above). 

Grenada:  1.8m*  to  the  Grenada  Deve 
lopment  Bank  for  financing  small  and 
medium-sized  enterprises  in  the  indus 
trial,  agricultural-processing  and tourism 
sectors,  including  a  nutmeg  oil  distilla 
tion  plant 
the  world's 
second  largest  producer  of  nutmegs) 
with  a  view  to  increasing  exports. 

(Grenada 

is 

St  Kitts-Nevis:  1.5m*  to  the  Develop 
ment  Bank  of  St  Kitts-Nevis  for  finan 
cing small and medium-sized  enterprises 
in  industry,  agricultural  processing  and 
tourism. 

Tonga:  1.5m*  to  the  Tonga  Develop 
ment  Bank for financing small and medi 
um-scale  ventures  in  industry,  agricultu 
ral  processing  and  tourism. 

Liberia : (600 000*)  and the  Republic  of 
Guinea  (300 000*) : for  a feasibility  study 
on  a  regional  project  designed  to  tap 
iron  ore  deposits 
the  Nimba 
mountains  close to  the frontier  between 
these  two  ACP  States. 

in 

Solomon  Islands : 90 000* for  a feasibi 
lity  study  into  prospective  demand  for 
crude  oil  and  uprating  of  corresponding 
storage  capacity  at  Honiara. 

O CT 

Virgin  Islands : 4.4m for  construction  of 
a  diesel  power  station  at  Pockwood 
Pond  with  two  2.5  MW  generating  sets, 
connection  to  the  network  via  under 
ground  cables  and the  laying  of  a sub 
marine  cable  between  Tortola, the  main 
island,  and  Virgin  Gorda. 

French  Polynesia:  4m  (including  1m 
from  risk  capital  resources)  to  Société 
de  Crédit  et  de  Développement  de 
rOcéanie 
financing 
small  and  medium-sized  enterprises  in 
the 
industrial,  agricultural-processing, 
fisheries, tourism and transport sectors. 

(SOCREDO) 

for 

11 

Lending  under 
Financial  Protocols 

the  Mediterranean 

to  deploy 

With  activity  tending  to  be  focused  on 
negotiating  and  concluding 
the  new 
generation  of  financial  protocols  bet 
ween the  EEC and  most  of  the  Mediter 
ranean  countries  (i.e.  the  Maghreb  and 
Mashreq  countries,  Israel  and  Yugo 
slavia)  and  on  putting  the  finishing  tou 
ches  to  these  new  protocols,  the  Bank 
continued 
the  balance  of 
funds  still  available  under  earlier  proto 
cols,  while  programming  and  studying 
projects  to  be  mounted  under  the  new 
protocols.  The  latter  are  scheduled  to 
enter  into  effect  during. 1988  (').  The 
breakdown  of  lending  during  the year  is 
given  below,  encompassing  the  entire 
42.8m  ECUs  of  residual  funds  commit 
ted,  27.7m  ECUs  drawn  from  the  EIB's 
own  resources  and  15.1m  ECUs  from 
Community  budgetary  resources : 

In  Algeria,  22m  (the  balance  remaining 
under  the  Second  EEC-Algeria  Financial 
Protocol) went towards expansion of the 
thermal  power  station  at  Béchar  in  the 
through 
south-west  of 
installation  of:  five  new  diesel  generat 
ing sets of  8 MW  each, a workshop, sto 
rage  tanks  and  associated  equipment. 

the  country 

In  Turkey,  10.6m 
from  budgetary 
resources  was  given  over  to  erection  of 
a  380  kV  transmission  line  connecting 
a  new 
lignite-fired  power  station  at 
Yeniköy  in the south-west  of the country 
to  the  national  grid. This loan  exhausted 
the  last  of the funds  available  under  the 
Supplementary  Protocol  concluded  for 
an  amount  of  some  30m  ECUs  in  1973 
after  the  first  enlargement  of  the  Com 
munity  gave  rise  to  additional  contribu 
tions  from  the  three  new  Member  Sta 
tes. 

In  Jordan,  3.1m  (the  last  of  the  funds 
remaining  under  the  Second  Financial 

(')  Protocols  are  expected  to  be  activated  with  the  follo 
wing  countries  in  1988, the  amounts  of  projected  EIB  loan 
and  risk  capital  aid  for  each  of  these  being :  Yugoslavia, 
550m ;  Israel, 63m ; Algeria,  183m (plus 4m  in  risk  capital) ; 
Tunisia,  131m  (plus  6m  in  risk  capital);  Morocco,  151m 
(plus  11m  in^risk  capital);  Jordan,  63m  (plus  2m  in  risk 
capital);  Lebanon,  53m  (plus  1m  in  risk  capital);  Egypt, 
249rn  (plus  i lm  in  risk  capital). 
'  from  risk  capital  resources 

12 

Protocol),  was  lent  for  construction  of 
five  sheep-fattening  units  intended  to 
increase  domestic  sheepmeat  product 
ion  and  to  promote  greater  agricultural 
self-sufficiency.  The  units  have  an  over 
all  capacity  of  36 000 lambs  a  year  and 
are  situated 
western  and  central-western  regions. 

in  the  country's  north 

In  Malta,  a loan for  3m from  budgetary 
resources  (the  first  loan  provided  under 
the  Second EEC-Malta Financial Protocol 
in  force  until  the  end  of  1988)  was 
advanced  for  construction, of  a  solid 
waste  composting  plant that  will  recycle 
the  organic  waste  of  Malta's  . entire 
significantly 
domestic 
reducing  pollution  on  the  island.  The 
plant  is  expected  to  produce  initially 
50 000 tons  of  compost,  rising  to  75 000 
tons  by  1995, to  be  used  by farmers  for 
soil  enrichment  and  by  the  government 
for  land  reclamation/improvement  and 
forestry. 

refuse, 

thus 

In Cyprus,  a 2.6m credit  (including 1.1m 
from  budgetary  resources)  was  directed 
towards  developing  the  efficiency  and 
reliability  of  the  integrated  electricity 
transmission  system  through  installation 
of  telecontrol/telemetering  facilities  in 
six  sub-stations 
interface 
equipment  at the  island's  new  electricity 
control  centre  under  construction  near 
Nicosia,  an 
transformer 
capacity  at  six  other  sub-stations  and 
provision  of  an  additional  sub-station. 
This  loan  exhausts  the  balance  of  funds 
available  under  the  Second  EEC-Cyprus 
Financial  Protocol. 

increase 

linked 

to 

in 

In  Tunisia,  a  loan  for  1.5m  (including 
400 000  from  budgetary  resources)  was 
granted for financing small and medium-
and  agricultural-
scale  agricultural 
processing  ventures.  The  funds  were 
advariced  to  the  Banque  Nationale  de 
Développement  Agricole  (BNDA)  in  the 
form  of  a  global  loan,  the  proceeds  of 
which  were  on-lent  in  support  of  vent 
ures  designed  to  boost  agricultural  pro 
duction for  local markets and to  increase 
self-sufficiency.  The credit  used to  fund 
this  operation  mounted  in  1987  stems 
from  the  balance  left  over  from  another 
project financed via BNDA in 1984 which 
cost  less  than  expected.  More  than 270 
smaller  ventures  attracted  sub-loans 
from  both  this  latest  credit  and  from  a 
global  loan for  20m granted the  previous 
year. 

ECU 

Belovi/ are the  ECU's values in national curren 
cies, as at 31 December  1987 ; these  rates are 
applied to  the  first  quarter  in preparing finan 
cial  statements  and  operational  statistics  of 
the  Bank: 

' 

DM 
£ 
FF 
Lit 
Hfl 
Ptas 

2,06034 
0,696793 
6,98335 

1 521,66 

2,31762 

140,566 

FB 
Flux 
DKr 
Dr 
£irl. 
Esc 
US$ 

43,1539 
43,1539 
7,94457 
164,483  . 

0,777888 

169,467 

1,30335 

N.B. : ECU/national currency conversions given 
in this  issue  for  operations  in  1987 are  based 
on different  exchange  rates, applicable  at the 
time  of  each  contract  signature. 

J 

EIB-Information  is  published  periodically 
by  the  European  Investment  Bank  In  nine 
(Danish,  Dutch, 
different 
English,  French,  German,  Greek,  Italian, 
Portuguese  and  Spanish). 

languages 

Material  which  appears  in  EIB-Information 
may  be  freely  reproduced '; an  acknowledge 
ment  would  be  appreciated  and  also  a  clip 
ping  of  any  article  published. 

100,  bd  Konrad Adenauer 
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