COMMISSION STAFF WORKING PAPER
Date: 2012-02-07
Institutions: European Commission
Subjects: Asia, EIB loan, EU relations, Eastern Bloc countries, Latin America, Mediterranean third countries, Russia, South Africa, anti-crisis plan, climate change, cooperation policy, interinstitutional cooperation (EU), pre-accession aid, security of supply

EUROPEAN COMMISSION 

Brussels, 7.2.2012  
SWD(2012) 3 final 

COMMISSION STAFF WORKING PAPER 
Accompanying the document 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2010 

{COM(2012) 36 final} 

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   EN 

 
 
 
 
  
 
COMMISSION STAFF WORKING PAPER 
Accompanying the document 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2010 

This  document  is  a  European  Commission staff  working  document  for  information  purposes.  It  does 
not  represent  an  official  position  of  the  Commission  on  this  issue,  nor  does  it  anticipate  such  a 
position. 

TABLE OF CONTENTS 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

1.5. 

2. 

3. 

4. 

Contribution of EIB lending activity per geographical region..................................... 3 

Pre-Accession Countries .............................................................................................. 3 

Mediterranean Partner Countries ................................................................................. 6 

Eastern Europe, the Southern Caucasus and Russia .................................................... 9 

Asia and Latin America ............................................................................................. 11 

South Africa ............................................................................................................... 13 

List of loans signed in the regions covered by the Decision in 2010......................... 15 

List of EC-EIB initiatives / partnerships in the regions covered by the external 
mandate ...................................................................................................................... 20 

List of operations signed under the decision in 2010 and co-financed with other IFIs 
and the Commission................................................................................................... 24 

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COMMISSION STAFF WORKING PAPER 
Accompanying the document 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL  

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2010 

1. 

CONTRIBUTION OF EIB LENDING ACTIVITY PER GEOGRAPHICAL REGION 

This report reviews the implementation of the current EIB external mandate at regional and 
country  level  as  well  as  the  contribution  of  EIB  financing  operations  to  the  fulfilment  of 
external  policy  objectives,  taking  into  account  the  operational  objectives  of  the  EIB.  It  is 
recalled that lending under the previous 2000-2007 mandate continued until 31 July 2007 and 
that tables that follow cover financing operations under the current mandate only. 

1.1. 

Pre-Accession Countries  

1.1.1  Activity by Country 

Table 1: Summary of lending signatures by Country (number of operations and volume) 

2007 

2008 

2009 

2010 

Cumulative Total

Country 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Albania 

Bosnia and 
Herzegovina 

FYROM 

Montenegro 

Serbia 

Turkey 

TOTAL 

1 

- 

- 

- 

1 

1 

3 

23 

- 

- 

- 

60 

305 

- 

5 

1 

6 

3 

7 

- 

260 

10 

50 

1 

4 

1 

3 

10 

150 

100 

108 

170 

10 

894 

1519 

6 

1603 

1 

2 

1 

2 

9 

4 

50 

3 

83 

60 

11 

470 

50 

45 

680 

650 

3 

11 

23 

18 

69 

160 

203 

1804 

4077 

6797 

388 

22 

2009 

25 

2865 

19 

1535 

In  2010,  EIB  financing  volume  in  the  Pre-Accession  countries  went  down  to  EUR  1.5bn 
under the mandate. At the end of the third full year of the current mandate period, 78% of the 
EUR 8.7bn regional sub-ceiling had been signed. With a signature volume of EUR 680m in 
Serbia and EUR 650m in Turkey, the two countries together absorbed 87% of the amount lent 
under  mandate.  This  proportion  (87%)  is  also  representative  of  the  cumulative  mandate 
utilisation by the two countries since 2007. Turkey alone accounts for 60% of financing under 

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the  mandate  since  2007.  In  Serbia,  a  large  proportion  of  the  EUR  1.8bn  cumulative  loans 
under the current mandate finance the extension of trans-European networks.  

To  increase  the  EIB  activity  in  the  region  and  to  stress  the  commitment  by  the  European 
institutions to support the Pre-Accession countries in their joining to the EU, a new EIB office 
in the region was inaugurated in Belgrade in November 2010. 

Under the Pre-Accession Facility, the signature volume in 2010 exceeded the mandate and 
reached EUR 1.8bn. 70% of this amount financed  investments  in Turkey bringing the total 
EIB financing in Turkey to EUR 1.9bn in 2010. Activity was mainly driven by the continued 
need to counter the economic and financial crisis, as well as support for smart and sustainable 
growth. Since the crisis broke out, the EIB has supported the Turkish economy in particular 
by strengthening the SME sector in the country, which in 2010 accounted for EUR 910m in 
loans  to  intermediary  banks.  Of  this  support,  EUR  760m  were  provided  without  the  EU 
guarantee under the Pre-Accession Facility.  

Among the individual operations signed in Turkey in 2010, of particular note are two facilities 
for  SMEs  pooling  EIB  loans  with  IPA  grants,  namely  the  SME  Recovery  Support  Loan 
consisting of an EUR 120m EIB loan with EUR 30m of IPA funds attached; and the Greater 
Anatolia  Guarantee  Facility  combining  EUR  250m  in  EIB  loans  with  a  risk  sharing 
mechanism  of  the  EIF  backed  by  IPA  funds  (EUR  32m)  to  target  SMEs  in  the  weakest 
economic areas of Turkey. 

In  Croatia,  EIB  has  since  2006  financed  operations  exclusively  under  the  Pre-Accession 
Facility,  leaving  the  benefit  of  the  EU  guarantee  for  less  developed  countries.  Operations 
signed in 2010 totalling EUR 511m include a EUR 200m framework loan in cooperation with 
the  Commission  for  co-financing  with  EU  funds  (IPA  and  ISPA).  The  multi-sector  priority 
schemes  to  be  financed  will  address  the  long-term  needs  of  the  Croatian  economy  and  are 
expected to assist Croatia in the preparations towards meeting the EU acquis and targets in a 
number of key sectors. 

For  the  other  countries,  the  EIB  provided  under  the  Pre-Accession  Facility  a  second 
investment of EUR 30m to the European Fund for Southeast  Europe  (EFSE) established by 
the  Commission  and  partner  IFIs.  EFSE  aims  to  foster  economic  development  in  the 
Southeast  European  region  through  the  provision  of  loans  to  micro  and  small  enterprises 
(MSEs)  and  to  private  households  via  qualified  financial  institutions.  Last  year,  EFSE  was 
awarded  the  first  prize  at  a  G-20  summit  competition  SME  Finance  Challenge.  The 
competition examined various models of SMEs financing which proved innovative and crisis 
resistant.  The  average  micro-loan  provided  through  the  fund  is  EUR  4000  and  since  2005, 
over  100  000  companies  or  entrepreneurs  have  received  its  loans.  EFSE  operates  via  local 
banks,  thus  enhancing  their  administrative  and  financing  capacity.  Instrument  for  pre-
accession  assistance  (IPA)  contributes  annually  approximately  EUR  10m  to  the  fund.  This 
contribution generates on average EUR 70m loans to SMEs in the Western Balkans. 

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1.1.2.  Activity by Objective 

Table 2: Summary of signatures by region-specific key lending objectives 

2007 

2008 

2009 

2010 

Cumulative Total

Objective 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Knowledge 
economy 
(RTD, ICT, 
Education) 

Extension of 
Trans-
European 
Networks 
(TENs) 

Support for 
SMEs 

Environmental 
Protection & 
Sustainable 
Communities 

Sustainable, 
Competitive 
and Secure 
Energy 

- 

- 

1 

70 

1 

335 

4 

700 

6 

1105 

2 

83 

3 

86 

3 

707 

2 

235 

10 

1111 

- 

- 

7 

315 

15 

1251 

6 

243 

28 

1809 

1 

305 

9 

1504 

5 

715 

5 

257 

20 

2781 

- 

- 

2 

103 

3 

450 

1 

40 

6 

593 

TOTAL* 

3 

338 

22 

2009 

25 

2865 

19 

1535 

69 

6797 

* The above numbers cannot be added as a single operation may contribute to several objectives 

Under the mandate, the knowledge economies and the research and innovation capacities in 
Serbia  and  Turkey  will  be  reinforced  by  EUR  700m  signed  for  4  new  projects.  These 
contribute to various investment programmes in the areas of science and technology as well as 
research  and  development.  Also  the  pre-university  education  system  in  Serbia  will  benefit 
from improvements financed by these investments.  

Environmental  protection  and  sustainable  communities  comprised  4  water  and  sanitation 
projects in Bosnia-Herzegovina, FYROM, Montenegro and Turkey, as well as one sustainable 
transport project in Serbia.  

Support  to  SMEs  represented  EUR  243m  or  16%  of  lending  under  mandate  in  20101.  The 
operations range from a second EUR 150m financing for small businesses in Turkey to EUR 
10m signed with a private financial intermediary in Bosnia and Herzegovina. In Montenegro, 
EUR  28m  split  into  7  individual  Finance  Contracts  with  different  financial  intermediaries 
were signed in 2010. These are part of a EUR 100m financing facility approved in 2009 for 

1 

More  significant  financing  via  credit  lines  for  SMEs  was  provided  outside  the  EU  guarantee  for  an 
amount of EUR 980m representing 55% of lending under the Pre-Accession Facility. 

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financing  of  SME  projects,  small  and  medium  scale  infrastructure  projects  in  the  field  of 
environmental  protection,  energy  savings,  infrastructure,  industry,  services  and  tourism  in 
Montenegro.  

The  extension  and  development  of  corridors  connecting  to  Trans-European  transport 
Networks was supported in Serbia by two operations for a total EIB lending of EUR 235m.  

One priority energy project in Serbia received EUR 40m EIB finance. The project consists of 
the replacement of around 5% of existing obsolete electro-mechanic meters by digital meters 
integrated into a remote reading and connection-disconnection system that should reduce both 
technical  and  commercial  losses  caused  by  the  malfunctioning  of  the  current  system  and 
meter tampering. More accurate, comprehensive and timely electricity consumption data will 
permit  the  optimization  of  power  system  balance,  enhance  energy  efficiency  and  therefore 
optimize future investment in transmission and generation.  

1.2.  Mediterranean Partner Countries 

1.2.1.  Activity by Country 

Table 3: Summary of lending signatures by Country 

2007 

2008 

2009 

2010 

Cumulative Total

Country 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Egypt 

Israel 

Jordan 

Lebanon 

Morocco 

Syria 

Tunisia 

TOTAL 

1 

1 

1 

2 

2 

1 

1 

9 

130 

120 

50 

295 

330 

80 

200 

1 

- 

1 

1 

3 

1 

4 

250 

- 

37 

52 

270 

275 

311 

2 

1 

1 

1 

4 

2 

3 

120 

3 

906 

25 

166 

70 

540 

155 

434 

- 

- 

- 

2 

2 

3 

- 

- 

- 

185 

498 

105 

11 

1195 

14 

1510 

10 

2009 

7 

2 

3 

4 

1406 

145 

253 

417 

6 

11 

44 

695 

1443 

5919 

420 

11 

1560 

As  the  main  financial  partner  of  the  Mediterranean,  the  EIB  lending  under  the  mandate 
reached a record-high level of EUR 2bn in 2010, an increase of 33% from 2009. The volume 
increase was driven especially by Egypt which received 45% of the financing signed in 2010. 

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1.2.2.  Activity by Objective 

Table 4: Summary of signatures by region-specific key lending objectives 

2007 

2008 

2009 

2010 

Cumulative Total

Objective 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Support for 
enabling 
environment 
for private 
sector through 
strengthening 
of economic 
and social 
infrastructure 

Direct support 
for private 
sector, SMEs 
or micro-
finance 

6 

905 

10 

1143 

11 

1175 

10 

2009 

37 

5232 

6 

745 

2 

107 

5 

526 

1 

346 

14 

1724 

TOTAL* 

9 

1205 

11 

1195 

14 

1510 

10 

2009 

44 

5919 

* The above numbers cannot be added as a single operation may contribute to several objectives 

All  10  operations  signed  under  the  mandate  in  2010  contribute  towards  an  enabling 
through  strengthening  of  economic  and  social 
environment  for 
infrastructure.  

the  private  sector 

One  of  the  operations  additionally  provides  direct  support  for  the  private  sector.  This  EUR 
346m loan for an industrial project will contribute to the provision of basic infrastructure to 
meet the demand for cleaner fuels. This investment by an Egyptian private industrial company 
will convert heavy fuel oil to clean EU standard diesel. It is the largest private sector project 
in the region at the moment and is expected to create 7000 temporary and 700 permanent jobs. 
The  project  will  have  a  positive  environmental  impact  through  a  significant  reduction  in 
polluting vehicle emissions.  

To  address  the  growing  energy  needs  of  the  region,  the  EIB  financed  4  large  energy 
infrastructure projects totalling EUR 939m in Egypt and Tunisia. In each country, one project 
will bring improvements to the power transmission networks and another project contributes 
to  the  construction  of  modern  combined-cycle  power  plants  to  improve  system  efficiencies 
and reduce greenhouse gas emissions and air pollutants per unit of electricity generated.  

Transport sector received EUR 539m of EIB financing in favour of three investment projects. 
The  EIB  support  to  transport  projects  is  also  in  line  with  one  of  the  Union  for  the 
Mediterranean  priorities,  namely  the  Land  and  Sea  highways  initiative  that  aims  at 
contributing  to  regional  integration  via  significant  improvements  in  transport  and  transport-
related infrastructure.  

In  the  healthcare  sector,  EUR  130m  loan  was  signed  with  Syria  to  modernize  and  expand 
healthcare  services.  The  project  will  allow  the  construction  and  provision  with  medical 

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equipment  of  eight  hospitals.  It  furthermore  contributes  to  the  completion  of  the  National 
Centre  for  Drugs  and  Public  Health  to  improve  healthcare  access  and  the  overall  quality  of 
health services within a strategy of reducing urban-rural disparities. This project also benefits 
from FEMIP technical assistance. 

Finally,  EUR  55m  loan  was  signed  under  mandate  to  develop  modern  water  supply, 
wastewater  collection  and  treatment  infrastructure  in  North-Western  Syria.  The  objective  of 
the project is to reduce raw wastewater discharges to the rivers flowing to the Mediterranean 
Sea,  and  improve  the  water  and  wastewater  services  within  nearby  cities  and  villages.  The 
project  is  included  in  the  EU  Horizon  2020  initiative,  aiming  to  tackle  top  sources  of 
Mediterranean pollution, which is also one of the priority activities under the Union for the 
Mediterranean  (UfM)  (de-pollution  of  the  Mediterranean  Sea).  It  is  expected  that  374  000 
inhabitants  will  benefit  from  the  operation  by  2025. The  project  is  supported  by  FEMIP 
technical assistance and EUR 5m investment grant from EU budgetary resources. 

Besides lending under the mandate, three operations totalling EUR 516m were signed within 
the framework of the Mediterranean Partnership Facility II. 

Four further private equity operations were signed under the ENPI Risk Capital Envelope, for 
an amount of EUR 22m. 

Technical  assistance  operations  contracted  in  2010  represent  a  total  value  of  EUR  16.1m 
under  three  financial  envelopes:  FEMIP  Support  Fund  (EUR  10.1m),  FEMIP  Trust  Fund 
(EUR  1.9m)  and  Support  to  FEMIP  envelope  (EUR  4.1m).  In  particular,  the  FEMIP  Trust 
Fund  helped  to  conduct  a  feasibility  study  on  the  creation  of  Mediterranean  Business 
Development Initiative (MBDI), which would be a centre for SME support.  

The de-pollution of the Mediterranean Sea witnessed a step forward as the Mediterranean Hot 
Spot  Investment  Programme  -  Project  Preparation  and  Implementation  Facility  launched  in 
2009  under  the  FEMIP  Support  Fund  showed  its  first  results.  The  facility  provides  grant 
assistance to help partner  countries prepare pollution reduction  infrastructure projects to the 
required  standards  for  international  financing.  78  operations  have  been  identified  for  a  total 
cost of around EUR 5.7bn. More than half of these projects have already received financing. 
Among  the  projects  that  have  not  yet  been  funded,  the  EIB  has  selected  nine  investment 
operations  totalling  EUR 1.2bn  that  it  wants  to  examine  and  potentially  finance  during  the 
period 2010-2013. 

The  Mediterranean  has  been  identified  by  the  United  Nations’  Intergovernmental  Panel  on 
Climate  Change  (IPCC)  as  being  especially  vulnerable  to  the  impacts  of  climate  change. 
Many  of  these  impacts  (increased  risk  of  drought,  longer  fire  season,  reduction  in  crop 
productivity)  are  common  across  the  region,  yet  few  Mediterranean  countries  have  robust 
adaptation plans. The EIB took part in a major event in Athens on 22 October 2010, which led 
to the launching of the Mediterranean Climate Change Initiative (MCCI). This initiative aims 
to  strengthen  environmental  collaboration  between  the  governments  of  Mediterranean 
countries  and  to  promote  and  facilitate  investment  in  low  carbon  projects  throughout  the 
region.  Whilst  the  MCCI  called  for  a  unified  Mediterranean  voice  that  would  help  advance 
climate  change  discussions  on  a  global  level,  it  also  confirmed  the  need  for  initiatives  that 
could pave the way for climate action at a regional level. 

The  Mediterranean  region  is  witnessing  unprecedented  changes.  In  collaboration  with  the 
European  External  Action  Service  and  the  Commission,  the  EIB  remains  committed  to 

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enhance  efforts  for  a  coordinated  EU  response  to  the  needs  of  the  populations  concerned 
through  investments  fostering  the  social  and  economic  development,  employment  and 
political  stability  in  the  region.  In  this  framework,  subject  to  the  Council  approval,  the  EIB 
has the potential to provide financing of almost EUR 6 billion to the Mediterranean countries 
over 2011-2013. This amount includes an estimated EUR 4.5bn of lending capacity with the 
EU Guarantee (of which the EUR 1bn additional envelope proposed by the EP and estimated 
EUR 0.7bn for climate change mitigation and adaptation), EUR 1.2bn lending capacity at EIB 
own-risk and EUR 0.2bn financing for risk-capital in favour of SMEs. The EIB works in close 
collaboration with other IFIs and European bilateral institutions. 

1.3. 

Eastern Europe, the Southern Caucasus and Russia 

1.3.1.  Activity by Country 

Table 5: Summary of lending signatures by Country 

2007 

2008 

2009 

2010 

Cumulative Total

Country 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Armenia 

Georgia 

Republic of 
Moldova 

Russian 
Federation 

Ukraine 

TOTAL 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

0 

- 

- 

1 

- 

1 

2 

- 

- 

20 

- 

150 

170 

- 

- 

- 

2 

1 

3 

- 

- 

- 

133 

100 

1 

4 

5 

1 

1 

5 

175 

185 

250 

16 

1 

4 

6 

3 

3 

5 

175 

205 

383 

266 

233 

11 

631 

16 

1034 

In 2010, EIB lending in the Eastern Europe, the Southern Caucasus and Russia reached EUR 
631m,  which  is  almost  three  times  the  volume  signed  in  the  previous  year.  In  terms  of 
geographical distribution, 40% of the lending volume was signed for projects in Russia, 37% 
in Eastern Europe and 23% in Southern Caucasus. 2010 saw the first EIB loans being signed 
in Armenia (one operation of EUR 5m) and Georgia (4 operations totalling EUR 175m).  

In  December  2010,  the  EIB  launched  a  new  technical  assistance  facility,  the  Eastern 
Partnership Technical Assistance Trust Fund (EPTATF), which aims to increase the impact of 
operations and accelerate successful project implementation in the region. The EPTATF will 
help  to  elaborate  pre-feasibility  and  feasibility  studies,  institutional  and  legal  appraisals, 
environmental  and  social  impact  assessments,  project  management  and  borrower  support 
throughout  the  project  implementation  process,  as  well  as  financing  upstream  studies  and 
horizontal institutional activities. 

1.3.2.  Activity by Objective 

Table 6: Summary of signatures by region-specific key lending objectives 

Objective 

2007 

2008 

2009 

2010 

Cumulative Total

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Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Transport 

Energy 

Telecommuni
cations 

Environmental 
infrastructure 

SMEs 

TOTAL 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

1 

1 

- 

- 

- 

20 

150 

- 

- 

- 

2 

170 

- 

- 

1 

2 

1 

3 

- 

- 

115 

118 

100 

3 

3 

- 

3 

2 

85 

350 

- 

66 

130 

4 

4 

1 

5 

3 

105 

500 

115 

184 

230 

233 

11 

631 

16 

1034 

In  the  Eastern  Neighbourhood  and  Russia,  EIB  focuses  on  projects  that  are  of  significant 
interest  to  the  EU  in  the  transport,  energy,  telecommunications  and  environmental 
infrastructure  fields.  Since  2009,  the  EIB  contributes  to  the  development  of  the  Eastern 
Partnership by providing finance also to the SMEs.  

The new tripartite MoU signed in March 2011 between the Commission, the EBRD and the 
EIB  together  with  the  EIF  will  allow  for  enhanced  strategic  and  operational  cooperation  in 
particular in the areas of climate change mitigation and adaptation, energy security, as well as, 
on  the  basis  of  respective  competencies  of  EIB  and  EBRD,  in  the  areas  of  support  to  the 
financial sector (notably for SMEs), the corporate and infrastructure sectors. 

More than half of the volume signed in 2010 supports the needs of the energy sector in Russia 
(EUR 250m for energy efficiency) and Georgia (EUR 100m for renewable energy). 

As  part  of  the  Joint  IFI  Action  Plan  in  support  of  banking  systems  and  lending  to  the  real 
economy as well as within the SME Eastern Partnership Initiative, the EIB signed two credit 
lines  in  Georgia  (EUR  35m)  and  Moldova  (EUR  20m).  These  operations  are  intended  to 
support  primarily  projects  of  small  and  medium  sized  companies,  including  an  up  to  30% 
portion for small and medium scale energy and environment projects promoted by mid-sized 
corporates and public entities.  

Further  support  to  SMEs  will  be  provided  through  the  EUR  75m  Global  Loan  signed  in 
Moldova  for  investments  benefiting  the  local  wine  industry  and  for  on-lending  to  the  final 
beneficiaries (almost exclusively SMEs) including local growers, winemakers and associated 
industries  such  as  bottle  production.  The  EIB  loan  is  associated  with  technical  assistance 
required to support the successful upgrading of the Moldovan wine sector. 

Transport  infrastructure  financing  comprised  3  operations  for  a  total  of  EUR  85m.  Two  of 
these (EUR 5m each) are in support of sustainable urban transport. 

Finally, 3 operations in the environmental / water sector received EIB financing in an amount 
of EUR 66m. 

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1.4. 

Asia and Latin America 

1.4.1.  Activity by Country 

Table 7: Summary of lending signatures by Country 

2007 

2008 

2009 

2010 

Cumulative Total

Country 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Argentina 

Brazil 

China 

Colombia 

India 

Mexico 

Nicaragua 

Pakistan 

Panama 

Paraguay 

Uruguay 

Vietnam 

TOTAL 

1 

1 

- 

- 

- 

- 

- 

- 

1 

- 

1 

- 

3 

- 

250 

- 

- 

- 

- 

- 

- 

27 

- 

28 

- 

305 

- 

1 

- 

- 

1 

1 

- 

- 

- 

1 

- 

- 

4 

- 

200 

- 

- 

150 

50 

- 

- 

- 

69 

- 

- 

469 

1 

- 

1 

1 

1 

- 

1 

1 

1 

- 

- 

2 

9 

170 

- 

119 

100 

100 

- 

15 

100 

397 

- 

- 

147 

1147 

- 

3 

- 

- 

- 

- 

- 

- 

- 

- 

- 

2 

5 

- 

420 

- 

- 

- 

- 

- 

- 

- 

- 

- 

223 

1 

5 

1 

1 

2 

1 

1 

1 

2 

1 

1 

4 

170 

870 

59* 

100 

250 

50 

15 

100 

424 

69 

28 

370 

643 

21 

2504 

*Of the operation signed in China in 2009, 50% (EUR 59m) was transferred in 2010 to EIB 
own-risk Facility for Energy Sustainability and Security of Supply.  

By the end of 2010, two thirds of the regional ceiling for Asia and Latin America under the 
mandate had been signed. More precisely, the utilisation rate in Asia reached 78% while Latin 
America was at 62%. Following exceptionally high signature volume of 2009, lending under 
the  mandate  declined  in  2010  to  EUR  643m  in  favour  of  3  projects  in  Brazil  and  2  in 
Vietnam. Additional signatures for ALA countries were realized under the Facility for Energy 
Sustainability and Security of Supply in an amount of EUR 579m of which EUR 500m for a 
second climate change framework loan in China and EUR 79m for the construction of a wind 
farm in Mexico. Together,  total financing under mandate and own-risk facility amounted to 
EUR 1.2bn in ALA countries.  

Among  the  Central  Asian  countries  eligible  for  EIB  financing,  Kazakhstan  was  the  second 
country  to  sign  a  Framework  Agreement  in  2010,  after  the  Republic  of Tajikistan  did  so  in 
2009. Subsequently, three projects are being appraised in these countries in the water, energy 
and  climate  action  sectors.  The  Bank  continues  its  efforts  towards  reaching  Framework 
Agreements with Kyrgyzstan, Turkmenistan and Uzbekistan. 

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1.4.2.  Activity by Objective  

Table 8: Summary of signatures by region-specific key lending objectives 

2007 

2008 

2009 

2010 

Cumulative Total

Objective 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Support for 
EU presence 
in ALA 
(European 
FDI, transfer 
of European 
technology) 

Support of 
environmental 
sustainability 
(including 
climate 
change 
mitigation) 

2 

278 

4 

469 

8 

1029 

5 

643 

19 

2419 

1 

27 

2 

200 

5 

730 

4 

553 

12 

1510 

TOTAL* 

3 

305 

4 

469 

9 

1147 

5 

643 

21 

2504 

*  The  above  numbers  cannot  be  added  as  a  single  operation  may  contribute  to  several 
objectives 

The EIB has developed an important portfolio of investments contributing to environmental 
sustainability,  including  climate  change  mitigation  which  represents  a  new  area  of 
intervention for the EIB in ALA since the beginning of the current mandate period. 60% of 
cumulative signatures under the mandate support environmental sustainability. Additionally, 
all financing under the Facility for Energy Sustainability and Security of Supply (EUR 1.2bn 
signed since 2007) qualifies as climate action. Almost all operations signed under the mandate 
additionally  support  the  EU’s  presence  in  ALA  through  foreign  direct  investment  and  the 
transfer of technology and know-how.  

Regarding the operations signed in 2010, the EIB contributed EUR 290m to two projects in 
Brazil for the expansion and upgrading of energy distribution networks. 

An  industrial  project  in  Brazil  benefited  from  EUR  130m  EIB  financing.  This  will  part-
finance an investment programme with three objectives: (i) improvement of product mix and 
production  balance,  (ii)  energy  efficiency  and  (iii)  improvement  of  environmental  impacts. 
The  sub-projects  take  place  in  three  major  production  sites  across  Brazil.  The  production  is 
mainly dedicated to serve the domestic market while any export is limited to other countries 
within  the  American  continent.  The  project  is  expected  to  create  200  additional  permanent 
jobs and 3000 person-years of employment during project implementation. 

In Vietnam, EIB finances two sustainable transport projects totalling EUR 223m in EIB loans. 
Both projects contribute to climate change mitigation by facilitating a reduction in transport-
related pollutants emissions and fuel consumption. They aim to provide a more reliable, fast 
and  environmentally  friendly  metro  service  along  corridors  currently  served  only  by  road-
based modes. The projects will make a significant contribution to improvement of the quality 

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of life in two of the largest cities of Vietnam – Ho Chi Minh City (EUR 150m EIB loan co-
financed  with  ADB  and  KfW)  and  Hanoi  (EUR  73m  EIB  loan  co-financed  with  ADB  and 
AFD) – by increasing mobility for many and by alleviating traffic congestion and providing a 
cleaner and quicker alternative to mopeds and private cars. Upon completion, the two projects 
together are expected to directly benefit a total of 340 000 metro passengers per day. 

Two operations signed under the Facility for Energy Sustainability and Security of Supply: 

A  new  EUR  500m  climate  action  framework  loan  to  China  was  signed  in  December  2010 
following  the  success  of  the  first  one,  signed  in  2007,  demonstrating  the  EIB’s  continued 
commitment to assist the country in its fight against climate change. The first EUR 500m loan 
has  helped  to  realise  a  number  of  projects,  including  forestation  programmes,  wind  farms, 
small hydropower schemes, and energy efficiency and pollution reduction investments in the 
industrial sectors. This operation ranks among the EIB’s most efficient loans in terms of GHG 
emissions with an estimated 2 million tonnes of CO2 savings every year, once all sub-projects 
are up and running. 

EUR 79m  loan  will  part-finance  the  construction  and  commissioning  of  a  wind  farm 
comprising 121 turbines with a total capacity of 103 MW in Santo Domingo Ingenio, Oaxaca. 
The  project  will  also  include  the  construction  of  access  roads  and  interconnection  with  the 
high-voltage  network.  The  project  is  designed  to  cater  for  the  rapidly  growing  electricity 
demand  in  Mexico  with  a  renewable  energy  source.  The  project  meets  the  Facility’s 
requirements by fostering environmental sustainability, energy security and the development 
of renewable energies. It will also promote economic development and bring social benefits to 
one of Mexico’s poorest regions by creating jobs. With this loan, the EIB is also supporting 
investment  –  and  the  resultant  technology  transfer  –  by  a  major  European  company  in  the 
renewables sector. 

1.5. 

South Africa 

1.5.1.  Signatures by Objective 

Table 9: Summary of signatures by region-specific key lending objectives 

2007 

2008 

2009 

2010 

Cumulative Total

Objective 

Ops 

EURm  Ops  EURm  Ops  EURm  Ops  EURm  Ops 

EURm 

Support for 
infrastructure 
projects of 
public interest 

Direct support 
for private 
sector, SMEs 

TOTAL* 

- 

- 

- 

0 

1 

150 

3 

220 

1 

50 

4 

370 

0 

0 

3 

3 

203 

203 

2 

4 

100 

280 

1 

1 

50 

50 

5 

8 

303 

533 

* The above numbers cannot be added as a single operation may contribute to several objectives 

EIB  financing  in  the  Republic  of  South  Africa  (RSA)  focuses  on  infrastructure  projects  of 
public interest (including municipal infrastructure, power and water supply) and private sector 

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13 

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support,  including  SMEs.  By  the  end  of  2010,  59%  of  the  mandate  sub-ceiling  for  South 
Africa had been signed.  

In 2010, one loan of EUR 50m was signed in South Africa in support of the water sector. This 
project  is  part  of  the  eThekwini  municipality’s  multi-annual  investment  programme  to 
improve the efficiency of the water network system and construct new bulk water pipelines so 
as  to  optimise  the  system  operation  and  adapt  to  new  water  sources.  The  project  will 
contribute  to  South  Africa’s  achievement  of  the  Millennium  Development  Goals  by 
improving access to piped drinking water in previously un-served rural and peri-urban areas. 
EIB’s ability to provide long-term funding at attractive interest rates contributes to reducing 
the impact of the required tariff increases on end users. EIB also brings its technical expertise, 
thus  giving  comfort  to  the  stakeholders  that  the  water  demand  management  and 
environmental aspects of the project in particular are dealt with according to international best 
practice. 

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2. 

LIST OF LOANS SIGNED IN THE REGIONS COVERED BY THE DECISION IN 2010 

Loans signed in the Pre-Accession countries under the mandate 

Country 

Project Description 

Loan 
Amount 
(EUR m) 

Political 
Risk 
Guarantee2 

Albania 

Programme of rehabilitation of secondary and local roads throughout Albania 

50.00  

No 

Bosnia 
Herzegovina 

and 

Financing for small and medium-scale ventures 

10.00  

Yes 

Bosnia 
Herzegovina 

and 

Construction  and  rehabilitation  of  water  and  sanitation  facilities  in  Republika 
Srpska 

50.00  

No 

FYROM 

Expansion  of  water  supply  networks  in  rural  areas  and  improvement  of 
wastewater disposal nationwide 

50.00  

No 

  Montenegro 

  Montenegro 

Financing of small and medium-scale projects carried out by SMEs 

28.00*  

No 

Rehabilitation and construction of municipal water and sanitation infrastructure 

16.50  

No 

Serbia 

Construction  of  47  km  bypass,  of  which  27  km  of  motorway  and  20  km  of 
road, on Pan-European Transport Corridor X, west and south of Belgrade 

40.00  

No 

Serbia 

Construction of new Sava bridge and access roads in Belgrade 

90.00  

No 

Serbia 

Construction of motorway section in pan-European corridor X in Serbia 

195.00  

No 

Serbia 

Financing of small and medium-scale projects carried out by SMEs 

25.00  

Yes 

Serbia 

Replacement  of  electromechanical  meters  by  digital  meters  integrated  into 
remote reading and connection/disconnection system 

40.00  

No 

Serbia 

Financing of small and medium-scale projects carried out by SMEs 

20.00  

Yes 

Serbia 

Investments aimed at revitalising public sector R&D 

200.00  

No 

Serbia 

Support  programme  for  increasing  supply  and  quality  of  pre-university 
education 

50.00  

No 

Serbia 

Financing of small and medium-scale projects carried out by SMEs 

20.00  

Yes 

Turkey 

Turkey 

Turkey 

Turkey 

Extension of water and wastewater system to serve entire Bursa metropolitan 
area 

50.00  

No 

Financing of small and medium-scale projects, with particular focus on smaller 
businesses 

150.00  

No 

Strengthening  of  science  and  research  system  and  improvement  of  Turkey's 
innovation capacity 

300.00  

No 

R&D  conducted  at  national  research  institutes  associated  with  Scientific  and 
Technological Research Council 

150.00  

No 

2 

The Political Risk Guarantee column highlights the operations where, in contrast to sovereign or 
equivalent risk operations covered by the Comprehensive Guarantee, the Community assumes defined 
political risks while the EIB assumes all other risks. 

EN 

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1,534.50 

Loan 
Amount 
(EUR m) 

0.78  

12.00  

200.00  

34.00  

Loans signed under the Pre-Accession Facility 

Country 

Project Description 

Albania 

Investment in senior A tranche of regional A&B sub-fund 

Bosnia 
Herzegovina 

and 

Investment in senior A tranche of regional A&B sub-fund 

  Croatia 

  Croatia 

  Croatia 

Cofinancing  of  EU-supported  projects  mainly  in  transport  and  environment 
sectors 

Upgrading  of  vinyl  chloride  monomer  (VCM)  plant  and  construction  of 
polyvinyl chloride (PVC) plant at complex on island of Krk 

Financing of projects undertaken by SMEs and mid-cap companies 

250.00  

  Croatia 

Construction of shopping centre in Split 

FYROM 

Investment in senior A tranche of regional A&B sub-fund 

  Montenegro 

Investment in senior A tranche of regional A&B sub-fund 

Serbia 

Investment in senior A tranche of regional A&B sub-fund 

Turkey 

Financing of small and medium-scale projects carried out by SMEs 

Turkey 

Upgrading of access network for fixed line operations 

Turkey 

SME financing in several sectors 

Turkey 

Financing of small and medium-scale projects carried out by SMEs 

Turkey 

Turkey 

Financing of small and medium-scale projects carried out by SMEs, primarily 
in manufacturing and services sectors 

Financing of small and medium-scale projects carried out by SMEs located in 
least-developed provinces of eastern Turkey 

27.20  

2.34  

4.68  

10.21  

60.00  

250.00  

150.00  

100.00  

75.00  

250.00  

Turkey 

Financing of small and medium-scale projects carried out by SMEs 

120.00  

Turkey 

Turkey 

Financing  of  small  and  medium-scale  projects,  mainly  in  manufacturing  and 
services sectors 

Financing  of  renewable  energy,  energy  efficiency  and  climate  change 
mitigation projects 

50.00  

200.00  

1,796.20 

EN 

16 

   EN 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans signed in the Mediterranean countries under the mandate 

   Country 

Project Description 

Loan 
Amount 
(EUR m) 

Political 
Risk 
Guarantee 

Egypt 

Upgrading and expansion of national power transmission network 

260.00  

No 

Egypt 

Egypt 

Construction  of  oil-refining  installations  for  converting  heavy  petroleum 
residues to cleaner middle distillates in Mostorod 

346.37  

Yes 

Construction of gas-fired combined-cycle power plant in Nile Delta, north-west 
of Cairo 

300.00  

No 

  Morocco 

Construction of motorway between Berrechid and Béni Mellal 

220.00  

No 

  Morocco 

Expansion of Tanger Med Port's container transhipment facilities 

200.00  

No 

Syrian  Arab 
Republic 

Modernisation  of  water  supply  and  wastewater  collection  and  treatment 
infrastructure in north-west Syria 

55.00  

No 

Syrian  Arab 
Republic 

Provision of medical equipment for new hospitals in Damascus 

130.00  

No 

Tunisia 

First phase of construction of 18 km of priority railway lines in Tunis 

119.00  

No 

Tunisia 

Construction  of  400  MW  single-shaft  combined-cycle  gas  turbine  plant  in 
Sousse 

194.00  

No 

Tunisia 

Upgrading of national power grid 

185.00  

No 

Loans signed under the Mediterranean Partnership Facility II 

Country 

Project Description 

2,009.37  

Loan 
Amount 
(EUR m) 

Algeria 

Construction  and  operation  of  sub-sea  natural  gas  transmission  pipeline 
between Beni Saf in Algeria and landfall near Almeria in Spain 

500.00  

Regional 
- 
Mediterranean 

- 
Regional 
Mediterranean 

Equity participation in closed-end infrastructure fund 

Equity investment in fund financing sustainable infrastructure 

15.00  

0.98  

515.98 

EN 

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Loans signed in Eastern Europe, Southern Caucasus and Russia under the mandate 

   Country 

Project Description 

Loan 
Amount 
(EUR m) 

Political 
Risk 
Guarantee 

Armenia 

Rehabilitation and renovation of metro system 

5.00  

No 

Georgia 

Construction  of  high-voltage  power  transmission  lines  and  back-to-back 
converter  station  in  order  to  complete  electricity  ring  in  Georgia  and  provide 
interconnection with Turkish grid 

80.00  

No 

   Georgia 

Financing  of  small  and  medium-scale  energy  and  environmental  projects 
undertaken by mid-cap companies and public entities 

35.00  

Yes 

  Georgia 

  Georgia 

Rehabilitation  works  at  Enguri  and  Vardnili  cascade  of  hydropower  plants 
(Abkhazia) 

20.00  

No 

Repair and upgrading of municipal water facilities 

40.00  

No 

Moldova, 
Republic of 

Purchase  of  up  to  90  new  trolleybuses,  spare  parts  and  rolling  stock 
maintenance equipment 

5.00  

No 

Moldova, 
Republic of 

Moldova, 
Republic of 

Improvement of wine industry 

75.00  

No 

Repair and upgrading of key national road sections 

75.00  

No 

Moldova, 
Republic of 

Rehabilitation and extension of water and sanitation systems in various small 
towns 

10.00  

No 

Moldova, 
Republic of 

Financing  of  small  and  medium-scale  energy  and  environmental  projects 
undertaken by mid-cap companies and public entities 

20.00  

Yes 

Russian 
Federation 

Upgrading  of  large  power  plant  in  southern  Russia  (North  Caucasus)  and 
construction  of  modern,  efficient  combined-cycle  gas  turbine  unit  to  replace 
two old units 

250.00  

Yes 

  Ukraine 

Rehabilitation  and  modernisation  of  water  supply  and  wastewater  collection 
and treatment facilities in Mykolayiv Vodokanal (southern Ukraine) 

15.54  

No 

630.54  

EN 

18 

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Loans signed in Asia and Latin America under the mandate 

   Country 

Project Description 

Loan 
Amount 
(EUR m) 

Political 
Risk 
Guarantee 

Brazil 

Improvement  of  product  mix  and  production  balance  on  several  sites 
nationwide 

130.00  

Yes 

Brazil 

Expansion and upgrading of power distribution networks 

90.00  

Yes 

   Brazil 

Expansion and upgrading of gas distribution grids in greater São Paulo area 

200.00  

Yes 

Viet Nam 

Construction of Metro Line 3 in Hanoi 

Viet Nam 

Construction of Metro Line 2 in Ho Chi Minh City 

73.00  

150.00  

No 

No 

643.00  

Loans  signed  in  Asia  and  Latin  America  under  the  Facility  for  Energy  Sustainability  and 
Security of Supply 

Country 

Project Description 

  China 

Financing  of  climate  change  mitigation  projects,  mainly  in  clean  and 
renewable energy fields 

  Mexico 

Construction of wind farm in municipality of Santo Domingo Ingenio in region 
of Istmo de Tehuantepec (state of Oaxaca) 

Loans signed in South Africa 

   Country 

Project Description 

Loan 
Amount 
(EUR m) 

500.00  

78.50  

578.50 

Loan 
Amount 
(EUR m) 

Political 
Risk 
Guarantee 

South Africa  Upgrading and expansion of water supply infrastructure 

50.00  

Yes 

 50.00  

EN 

19 

   EN 

 
 
 
 
 
 
 
  
  
  
 
  
 
 
 
 
 
 
 
 
 
3. 

LIST  OF  EC-EIB  INITIATIVES  /  PARTNERSHIPS  IN  THE  REGIONS  COVERED  BY  THE 
EXTERNAL MANDATE 

This  section  provides  an  overview  of  the  main  initiatives,  partnerships  and  instruments 
complementing the EIB external mandate within which the Commission and the EIB cooperated 
in  2010  with  the  aim  to  maximise  synergies  and  to  provide  coherent  support  for  the  regions 
outside the EU. At the end of the section, a summary table provides an indication of the activity 
volumes signed by the EIB with final beneficiaries when managing EU budgetary funds. 

Pre-Accession Countries 

Established in December 2009, the Western Balkans Investment Framework (WBIF) pools and 
coordinates  different  sources  of  finance  and  leverages  grants  with  loans  for  projects  that  have 
priority for the Western Balkan beneficiaries, in infrastructure sectors, and other relevant socio-
economic sectors including SMEs and energy efficiency. By the end of 2010, the Framework has 
supported a total of 73 projects representing a total investment cost in excess of €6 billion. The 
total  grant  contribution  awarded  under  the  Joint  Grant  Facility  amounts  to  €139  million.  The 
facility  pools  resources  from  the  European  Commission  with  those  from  the  three  partner  IFIs 
(CEB,  EBRD,  EIB)  and  bilateral  donors.  The  WBIF  is  available  to  the  Western  Balkans 
countries  of  Albania,  Bosnia  and  Herzegovina,  Croatia,  the  former  Yugoslav  Republic  of 
Macedonia,  Montenegro,  Serbia  and  Kosovo3.  Only  the  beneficiary  countries  can  present 
projects to the WBIF, in application of IPA’s ownership principle. 
The  Energy  Efficiency  Finance  Facility  (EEFF)  was  launched  in  2006  to  tackle  the  Climate 
Change issue. It aimed at stimulating the energy efficiency investments in all types of building 
and  in  the  industry  sector  by  making  appropriate  financing  available.  The  EEFF  combines  IFI 
credit lines extended to financial intermediaries with incentives to improve the cost effectiveness 
of  equipment  and  make  the  energy  investment  more  attractive,  and  fees  to  the  benefit  of  local 
financial intermediaries to encourage them to lend for the purpose of energy efficiency financing. 

– 

– 

Since  2001,  the  Commission  and  the  EIB  are  co-operating  under  the  SME  Finance 
Facility (SMEFF), merging the grant support with the EIB lending to help developing 
the  SME  lending  capacities  of  Participating  Financial  Institutions  in  the  eligible 
countries.  At  end  2009,  the  EIB’s  total  grant  available  for  the  SME  FF  under  the 
PHARE4 Program was EUR 69m, and the EIB has committed to provide debt financing 
of at least EUR 690m. 

Since  2003,  the  Municipal  Finance  Facility  (MFF)  aims  to  encourage  local  financial 
intermediaries  to  extend  loans  to  municipalities.  The  mechanism  of  the  programme  is 
similar  to  the  SMEFF.  The  total  grant  contribution  made  available  by  the  EC  has 
reached EUR 55.8m and the EIB lending commitment is at least EUR 279m.  

3 
4 

under United Nations Security Council Resolution 1244 (1999).  
Poland and Hungary Aid for the Reconstruction of the Economy (“PHARE”). 

EN 

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Mediterranean countries 

– 

– 

– 

– 

– 

The  Commission  and  the  EIB  closely  cooperate  in  the  framework  of  the  priorities 
established  under  the  Union  for  the  Mediterranean  (UfM).  Synergies  with  the 
Commission  have  especially  been  developed  in  areas  related  to  UfM  horizontal 
activities  such  as  Horizon  2020,  the  Maritime  and  Land  Highways  and  the 
Mediterranean  Solar  Plan.  Cooperation  mainly  consists  of  joint  policy  setting,  the 
exchange  of  information  and  periodical  meetings  held  on  a  sectoral  basis  both  at 
operational and senior management levels. The UfM Secretariat Inaugurated in March 
2010 will be in charge of preparing proposals for joint initiatives to be decided by the 
political  bodies  and  following  up  project-related  decisions  of  the  UfM  Summit.  Two 
EIB employees will be seconded to the UfM Secretariat based in Barcelona. 

The  Commission  is  also  represented  in  the  FEMIP  Committee,  which  in  addition 
involves representatives of the Member States and the UfM countries. The Committee 
meets  up  to  three  times  a  year  and  has  the  remit  of  discussing  FEMIP’s  strategy  and 
operational guidelines 

The  EIB  manages  in  the  context  of  FEMIP  and  on  behalf  of  the  EU,  a  budgetary 
envelope of EUR 32 million per year under the inter-regional ENPI programme for risk 
capital  investments  and  technical  assistance.  In  2010,  seven  technical  assistance  (TA) 
operations  for  a  total  value  of  EUR  14.2m  were  contracted.  Risk  capital  operations 
signed under this envelope amounted to EUR 21.5m in 2010.  

The  FEMIP  Trust  Fund  (FTF),  a  financial  envelope  of  EUR  34.5m  funded  by 
contributions of 15 Member States and the Commission, provides resources to upstream 
technical assistance in the form of strategic thematic studies and risk capital operations 
specializing  in  seed  capital.  It  focuses  its  activities  on  two  priority  objectives:  private 
sector  development  and  the  creation  of  an  investment-friendly  environment  in  the 
Mediterranean region. Since its creation in 2004, the FEMIP Trust Fund has given solid 
added value to the Bank’s activities in the region. It has been operating as a think tank 
by  financing  research  in  new  areas  likely  to  help  to  develop  the  private  sector  in  the 
region. The Trust Fund has also financed private equity operations as well as technical 
assistance  not  directly  linked  to  projects.  In  total,  between  2005  and  2010,  the  FTF 
financed 39 operations with a total value of EUR 26m. In 2010, 5 new TA operations 
amounting to EUR 1.9m were contracted.  

The  Commission  and  the  EIB  cooperate  in  the  framework  of  Neighbourhood 
Investment Facility (NIF), which mobilises additional funding for infrastructure projects 
mainly  in  the  energy,  transport,  environment  and  social  sectors  in  the  area  of  the 
European  Neighbourhood  Policy  by  providing  grant  support  for  lending  operations  of 
the EIB and other EU public financial institutions. The EIB also manages the NIF Trust 
Fund  (signed  on  5  November  2008)  to  pool  contributions  from  the  Commission,  the 
Member States and other donors. In 2010, 13 out of 14 operations approved by the NIF 
Board are being co-financed by the EIB (6 in the South and 7 in the East), whilst most 
NIF grants have been allocated to the energy sector in both regions. The EIB assumes 
the  role  of  lead  financial  institution  in  more  than  one  third  of  all  approved  NIF 
operations  in  2010  (in  two  cases  together  with  EBRD)  and  has  thus  considerably 
increased this function especially in the Eastern region. 

EN 

21 

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Eastern Neighbourhood and Russia 

– 

– 

– 

The  Commission  and  the  EIB  closely  cooperate  in  the  framework  of  the  flagship 
initiatives established under the EU Eastern Partnership. 

In  December  2010,  the  EIB  launched  a  new  technical  assistance  facility,  the  Eastern 
Partnership  Technical  Assistance  Trust  Fund  (EPTATF),  which  aims  to  increase  the 
impact of operations and accelerate successful project implementation in the region. The 
principal  strategic  orientations  of  the  Fund  will  be  drawn  up  in  early  2011.  Also 
fundraising is underway.  

In the Eastern Neighbourhood and Russia, preparatory work for the new EC-EIB-EBRD 
tripartite MoU signed in March 2011 extended over several months in 2010. In parallel, 
operational  cooperation  continued,  with  joint  banks’  pipeline  and  agreement  on  the 
framework  policies  for  each  eligible  sector  (transport,  energy,  environment  and 
telecommunications). 

Central Asia 

– 

– 

As for the Eastern Neighbourhood, the EIB operations in Central Asia are developing in 
the  framework  of  the  new  EC-EIB-EBRD  tripartite  MoU.  The  focal  priorities  are 
energy and environment. 

The  Investment  Facility  for  Central  Asia (IFCA)  was  created  in  2010.  Its  overarching 
objective is to mobilise additional investments to support the common goal of achieving 
an area of stability and prosperity and good relations involving the EU and Central Asia, 
in  particular  for  operations  in  the  field  of  energy  and  environment,  with  a  view  to 
supporting  EU  strategic  development  objectives  and  the  sustainable  economic  and 
social development of the countries in the region. 

South Africa 

– 

Global 

– 

In  support  of  South  Africa,  the  EIB  has  assisted  the  Commission  in  the  design  and 
implementation of dedicated EU funded risk capital facilities for South African SMEs 
aiming notably at job creation in the context of Black Economic Empowerment (BEE). 
The second Risk Capital Facility (RCF II) for an amount of EUR 50 million and for a 
period  of  five  years  was  set  up  at  end  2006  and,  thanks  to  the  excellent  cooperation 
between the Commission and the EIB, is being implemented according to schedule and 
meeting its main Key Performance Indicators. Accordingly, this year will correspond to 
the last one under the 5 year investment phase, and EIB’s involvement will discontinue 
on 31 December 2011.  

The Global Energy Efficiency and Renewable Energy Fund (GEEREF) is an innovative 
fund of funds sponsored by the Commission, Germany and Norway and advised by the 
EIB and EIF to provide clean energy to emerging countries and economies in transition. 

EN 

22 

   EN 

 
Table: Signatures on EU budget resources under EIB management in the regions covered by the 
external mandate 

2007 

2008 

2009 

2010 

Total 
2007-
2010 

TA, Grants signed with beneficiaries 

Turkey/FEMIP Support Fund 

1.06 

1.06

IPA contribution to the SME Recovery Support Loan in Turkey 

30.00 

30.00

Western Balkans Investment Framework, of which: 

- IPA investment grants 

- European Western Balkans Joint Fund (*) 

11.00 

11.00

6.24 

6.24

- Infrastructure Project Facility (IPF) TA 

7.67 

7.97 

0.90 

16.54

Municipal Finance Facility (MFF) (TA and other grants) 

7.50   

1.20 

8.70

SME Finance Facility (SME FF) (TA and other grants) 

1.00

3.50 

1.00 

5.50

Energy Efficiency Finance Facility 

5.00 

5.00

FEMIP Support Fund (excl. Turkey) 

17.50

16.90

12.20  10.10 

56.70

Support to FEMIP envelope (2007-2013) 

4.10 

4.10

FEMIP Trust Fund* 

0.46

3.02

3.89 

1.95 

9.32

Risk Capital signatures 

Global  Energy  Efficiency  and  Renewable  Energy 

Fund* 

22.50 

22.50

MEDA / ENPI Risk Capital 

46.45

62.00

22.00  21.50  151.95

FEMIP Trust Fund* 

2.00   

5.00 

7.00

TOTAL 

66.41

98.09

78.12  92.99  335.61

* includes other sources of funding than EU budget 

EN 

23 

   EN 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
4. 

LIST  OF  OPERATIONS  SIGNED  UNDER  THE  DECISION  IN  2010  AND  CO-FINANCED 
WITH OTHER IFIS AND THE COMMISSION 

Mandate  Country 

Contract name 

Project 
cost 
(EURm) 

EIB loan 
signed in 
2010 
(EURm) 

Multilateral
Financing 
Institutions 

European 
Bilateral 
Institutions 

EC 
contributions 

Co-financed operations under the external lending mandate 

Albania  

SECONDARY AND LOCAL 
ROADS 

Bosnia 
and 
Herzegovina 

WATER 
SANITATION RS 

AND 

WATER  SUPPLY  AND 
WATER 
WASTE 
COLLECTION 

FYROM 

Montenegro 

MONTENEGRO  WATER 
AND SANITATION C 

137 

100 

100 

114 

Serbia 

BELGRADE BY-PASS B 

361 

50 

50 

50 

17 

40 

CORRIDOR 
MOTORWAY PHASE I 

X 

(E-80) 

391 

195 

Serbia  

Serbia  

Serbia  

BELGRADE  CITY  SAVA 
BRIDGE B 

EPS 
METERS LOAN 

ELECTRONIC 

405 

84 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Pre-
Accession 

Turkey 

BURSA WASTEWATER II 

294 

Pre-
Accession 

Serbia  

PUBLIC SECTOR 
RESEARCH AND 
DEVELOPMENT 

ENP-MED 

Egypt  

ERC REFINERY  

421 

3800 

90 

40 

50 

200 

346 

ENP-MED 

Egypt  

EGYPTIAN 
TRANSMISSION  

POWER 

762 

260 

ENP-MED 

Egypt  

GIZA  NORTH 
PLANT  

POWER 

ENP-MED  Morocco  

ADM VII  

1052 

674 

300 

220 

ENP-MED  Morocco  

PORT  DE  TANGER  MED 
II-INFRASTRUCTURES  

957 

200 

ENP-MED 

Tunisia  

STEG 
ELECTRICITE 

IV  TRANSPORT 

ENP-MED 

Tunisia  

RESEAU 

FERROVIAIRE 

370 

700 

185 

119 

EN 

24 

   EN 

 
  
  
  
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RAPIDE 

ENP-MED 

Tunisia  

STEG  CENTRALE  DE 
SOUSSE 

388 

194 

ENP-EAST  Armenia  

YEREVAN 
REHABILITATION  

METRO 

ENP-EAST  Georgia  

HIGH 
TRANSMISSION LINES  

VOLTAGE 

ENP-EAST  Georgia  

ENP-EAST  Georgia  

WATER 
INFRASTRUCTURE 
MODERNISATION  

VARDNILI  &  ENGURI 
HYDRO 
REHABILITATION 

ENP-EAST 

Moldova, 
Republic of 

CHISINAU 
TROLLEYBUSES 

ENP-EAST 

Moldova, 
Republic of 

MOLDOVA 
SECTOR PROJECT  

WATER 

ENP-EAST 

Moldova, 
Republic of 

MOLDOVA ROADS II  

ENP-EAST  Russia  

OGK-5  POWER  PLANT 
MODERNISATION  

ALA 

Vietnam  

HANOI METRO LINE  

35 

300 

80 

47 

15 

30 

181 

517 

900 

5 

80 

40 

20 

5 

10 

75 

250 

73 

ALA 

Vietnam  

HO  CHI  MINH  CITY 
METRO LINE 2 

1545 

150 

Co-financed risk capital operations (Community budget, ENPI) 

ENPI RC & 
TA 

Regional 
Med 

VANTAGE 
MEZZ FUND 

REGIONAL 

90 

10 

EN 

25 

   EN