FEMIP trust fund serving the southern neighbourhood : annual report 2017.
Date: 2019-06-27
Institutions: European Investment Bank
Subjects: EIB loan, EU financial instrument, European Investment Bank, Mediterranean third countries, activity report, investment abroad

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EUROPEAN INVESTMENT BANK 
FEMIP TRUST FUND
SERVING THE SOUTHERN NEIGHBOURHOOD
ANNUAL REPORT
2017  

years

European Investment Bank FEMIP Trust Fund: Serving the Southern Neighbourhood Annual Report 2017

© European Investment Bank, 2018. 
All rights reserved. 
All questions on rights and licensing should be addressed to publications@eib.org

The EIB wishes to thank the following promoters and suppliers for the photographs illustrating this report:

gettyimages, Shutterstock, iStock, © Masen, © EPA - EU - Neighbourhood Info,  
© Geraldine Bruneel, © ONEP, © AfDB - BAD, © Université Euro-Méditerranéenne de Fès, © Photothèque VINCI

Authorisation to reproduce or use these photos must be requested directly from the copyright holder.

For further information on the FEMIP Trust Fund: Serving the Southern Neighbourhood,  
please consult our website (www.eib.org), which contains a regularly updated complete list of projects.  
You can also contact the Info-Desk, Communication Department, tel: +352 4379-22000.

Get our e-newsletter at www.eib.org/sign-up

PDF: QH-AH-18-001-EN-N

ISBN: 978-92-861-3790-7

ISSN: 2363-3999

doi: 10.2867/031001

2

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Contents

Foreword by the President 

About us 

2017 at a glance 

Donor statements 

Macroeconomic and financial developments 

FEMIP Trust Fund 

FEMIP Trust Fund operational results 

Impact in the Southern Neighbourhood 

Completed operations in 2017 

Specialised programmes: 

FEMIP Trust Fund: targeted support for climate action 
Internship programme at the European Investment Bank 
Secondment programme 
Dissemination Window 
Partnerships with third parties 
The Deauville MENA Transition Fund (MTF) 

EIB financing in the Southern Neighbourhood 

EIB lending in the MENA region 

Economic Resilience Initiative 

EC Blending 

Expected results from EIB lending in the Southern Neighbourhood 

Looking ahead 

FTF & EIB objectives for the Southern Neighbourhood 

Annex 1. Approved FTF operations (as at end-2017) 

Annex 2. Operations approved in 2017 

Annex 3. Abridged Financial Statements 

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This FEMIP Trust Fund (FTF) Annual Report has been prepared in accordance with the “Rules relating to the establishment and 
administration of the FTF” and the “FTF Rules of Procedure”1. It provides a comprehensive overview of the implementation of 
the FTF’s programme in 2017. 

1   In its meetings of 14 October 2004, the Board of Directors of the European Investment Bank approved the proposal for the establishment of a multi-purpose and multi-sectoral fund, 

 the FEMIP Trust Fund, and its rules of management and administration.

3

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODFEMIP Trust Fund 
a financial partner to support the EU’s Southern 
Neighbourhood in addressing:
Migration
High youth unemployment
Climate change

4

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 20175

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODForeword by the President

6

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017I n  view  of  the  challenges  the  EU’s  Southern  Neighbour-

hood region is facing, including those posed by the forced 
displacement  of  people,  persistent  fiscal  deficits  and  the 
threat  of  climate  change,  the  European  Investment  Bank 
(EIB), the EU bank, and the FEMIP Trust Fund (”FTF”) have prov-
en  their  worth  and  stepped  up  significantly  their  support  to 
the region. 

Mobilising  EUR  53m  of  donor  resources  since  2004,  the  FTF 
has  financed  77  grant  operations  in  the  Middle  Eastern  and 
North  African  (“MENA”)  countries,  leading  to  EUR  630m  of 
EIB  blended  operations  that  support  total  investment  of 
EUR 1.35bn. Thanks to the continuous support of 16 EU Mem-
ber States and the European Commission, in 2017 the FTF ap-
proved EUR 9.9m of grant operations, the largest in any given 
year to date.

The  FTF  has  been  very  successful  in  deploying  capital.  Cur-
rently,  more  than  three  quarters  of  the  paid-in  contributions 
have been approved and allocated to operations. As a result, 
the FTF is seeking to strengthen its partnership with the Eco-
nomic  Resilience  Initiative  (ERI),  which  forms  part  of  the  col-
lective EU response to the forced displacement and migration 
challenges  in  the  region  and  is  being  implemented  in  close 
cooperation  with  EU  Member  States,  the  European  Commis-
sion, Donors and other partners. Through the ERI, the Bank is 
helping  the  Mediterranean  partner  countries  build  up  their 

long-term economic resilience to future shocks and crises. In 
Lebanon, for instance, our long-term finance to support lend-
ing to smaller businesses will sustain 20 500 jobs and enable 
growth  and  employment-enhancing  investments,  helping 
this country as it hosts significant numbers of refugees.

Both  ERI  and  FTF-supported  operations  form  an  important 
part of overall EIB support for improving people’s lives in the 
Southern  Neighbourhood  region.  In  2017,  the  EIB  provided 
total  finance  of  EUR  1.9bn,  an  increase  of  17%  compared  to 
2016.  In  addition  to  substantially  increasing  lending  to  small 
and  medium-sized  enterprises  (66%  of  the  overall  lending  
volume),  the  Bank  continued  to  support  a  number  of  infra-
structure projects that are vital for economic growth, climate 
action and education. 

These results have been possible due to the EIB’s unique role 
as  an  EU  institution  –  owned  by  and  accountable  to  the  EU 
Member States – and our dedication to mobilising finance and 
expertise to implement EU external policies. 

The FTF has been a key player in the partnership between the 
EU  and  Mediterranean  partner  countries,  as  part  of  the  pro-
cess  of  encouraging  political  and  economic  renewal  in  the 
Southern Neighbourhood region. I look forward to continuing 
to strengthen these partnerships, so that – together – we can 
achieve even greater impact in our neighbourhood.

Werner Hoyer

7

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODAbout us

T he  Facility  for  Euro-Mediterranean  Investment  and 

Partnership  (FEMIP)  brings  together  under  one  roof 
the whole range of instruments implemented by the 
European  Investment  Bank  in  support  of  economic 
development  in  the  Southern  Neighbourhood  countries.  The 
FEMIP Trust Fund (FTF) is an instrument that complements the 
EIB’s activities in the Mediterranean region. Whilst substantial 
investment  is  required  in  the  EU’s  Southern  Neighbourhood 
countries,  there  is  not  always  sufficient  local  capacity  to  pre-
pare and implement operations, and investors are often unwill-
ing or unable to finance preparation or provide seed capital to 
develop  major  investment  projects.  The  FTF  aims  to  address 
these gaps by directing resources to operations in priority sec-
tors, which can be enhanced through the provision of techni-
cal assistance or made financially viable via risk capital.

Mediterranean 
Partner Countries

Countries eligible for the FEMIP TF are: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, and Tunisia. The EIB will start 
operating in Libya after it signs a Framework Agreement with the country. Following EU sanctions in November 2011, the EIB has suspended all 
loan disbursements and technical advisory contracts for projects in Syria.

8

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Priority sectors

Our offer

The  FEMIP  Trust  Fund  supports  projects  in  four  priority 
sectors:
•  access to credit for SMEs and mid-caps;
•  infrastructure, including projects in the transport, energy 

and water sectors;

•  environment,  including  support  to  projects  combating 
the causes and effects of climate change, through a ded-
icated  “envelope”  called  CAMENA  (Climate  Action  in  the 
Middle East and North Africa);

Tailored technical assistance throughout the project 
cycle:
•  identification  (including  upstream  sector  studies  and 

master plans);

•  preparation (including pre-feasibility and feasibility stud-

ies, audits, procurement documents);

•  implementation  (including  strengthening  project  man-
agement, skills and capacity building, coaching of public 
authority project implementation units);

•  human  capital,  research  &  development  (R&D),  and 

•  access to finance (including access to finance assessment 

innovation.

studies for enterprises and individuals).

Risk capital operations:
•  targeted  private  equity  operations,  including  seed  capi-
tal (for example, investments in fund structures, microfi-
nance institutions).

Capacity building:
•  internships, secondments, and more.

Governance

The  FTF  is  governed  by  the  Assembly  of  Donors,  which 
meets  at  least  once  a  year.  Contributions  come  from  EU 
Member States and the European Commission. The Assem-
bly  of  Donors  may  coordinate  with  other  international  fi-
nancial institutions and authorise third-party contributions 
to increase impact and reinforce complementarities in line 
with the guiding principles of the FTF.

Approval process

Operations  are  first  approved  by  the  Bank’s  Management 
Committee,  then  submitted  for  approval  to  the  FTF’s  gov-
erning body, the Assembly of Donors. 

9

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD2017 at a glance

Expected 
results

Lending

Concessional 
Financing

EUR 2.3bn
approved for 21 operations 
in the EU’s Southern 
Neighbourhood, of which

EUR 1.03bn
ERI operations 

Of 2.3bn approved,
1.9bn
was signed in 2017

123 000 jobs
sustained in SMEs, microenterprises  
and mid-cap companies

12 600 additional vehicles
benefiting per day from road networks

Clean energy for  
260 000 households

Improved sanitation for  
1.2 million people

6 600 students benefiting  
from new accommodation

10

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017FEMIP Trust FundEUR 10mapproved  for 9 operationsEconomic  Resilience Initiative Technical Assistance EUR 5mpre-approved for  2 operationsEuropean Commission Blending EUR 50mfor 1 regional projectAdvising

EUR 5.92m
of approved technical 
assistance operations (+51.7%)

EUR 3.59m
of signed technical assistance 
operations (+111%)

EUR 2.3m
disbursed (+28%)  
Economic Resilience Initiative

EUR 5m
of pre-approved technical 
assistance operations

Blending

Four  Neighbourhood  Investment  Facility  
Delegation  Agreements  in  the  EU's  Neigh-
bourhood region were signed for a total of 
EUR 63.4m. EUR 50m from this amount sup-
ports  the  EU  Trade  and  Competitiveness 
Programme  that  spans  Morocco,  Tunisia, 
Egypt and Jordan.

Lending

•  EUR 2.3bn approved for 21 operations
•  EUR 1.9bn signed for 18 operations (+17%)
• 

 Two core areas of activity: infrastructure 
and support for private sector development

• 

 Some 72% of total lending volume for private 
sector entities

•  EUR 1.03bn of approved ERI operations

11

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODDonor statements

Thomas Westphal

Director General – European Policy
Federal Ministry of Finance, Germany

Germany

“The FEMIP Trust Fund has seen another successful year supporting the prepa-
ration  and  implementation  of  projects  and  hence  unlocking  important  cata-
lytic investment for sustainable economic growth in the Southern Neighbour-
hood.  For  many  years  now,  it  has  played  a  crucial  role  in  achieving  a  strong 
development impact to ultimately improve the lives of local populations in the 
region. In contributing to the stability of the region, the Trust Fund has been 
an early mover on what has recently become a priority policy objective.

Germany,  as  one  of  its  long-standing  supporters,  is  proud  to  be  associated 
with this success story adding real value to development projects and is look-
ing forward to seeing more good results in the years to come, given the exist-
ing strong and interesting pipeline. The work of the FEMIP Trust Fund is in line 
with  Germany‘s  development  objectives  for  the  Southern  Neighbourhood, 
which is facing a number of challenges such as migration and climate change.”

Italy

“The FEMIP Trust Fund mirrors the EIB and European Union’s commitment to 
address the needs of the Mediterranean partner countries and foster develop-
ment for the benefit of all.

The  Trust  Fund’s  multi-sector  vocation  and  versatile  approach  has  brought 
about tangible results that can also be capitalised on a larger scale, while pur-
suing EU policy objectives in the Southern Neighbourhood region.

Gelsomina Vigliotti

Director General
International Financial Relations 
Ministry of Economy and Finance, Italy

As a FEMIP Trust Fund donor, Italy has provided financial support and partici-
pates  in  the  Assembly  of  Donors  to  help  address  the  socio-economic  devel-
opment  of  the  Mediterranean  partner  countries,  which  requires  investments 
in  youth  employment,  skills  development,  infrastructure,  the  environment, 
and entrepreneurial expansion and growth, all domains where the FEMIP Trust 
Fund has a direct impact.”

12

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Kyriacos Kakouris

Head of the Directorate of Administration 
and Finance
Ministry of Finance, Cyprus

Cyprus

“The financing of long-term projects of common interest has been one of the 
EIB’s main success stories over its 60-year history. A major contributor to this 
success  is  the  Facility  for  Euro-Mediterranean  Investment  and  Partnership 
(FEMIP) together with the FEMIP Trust Fund, which support the preparation 
and financing of significant projects in the Mediterranean region, thus foster-
ing and enhancing development and employment.

Cyprus strongly believes that faster growth in Europe can be achieved when 
we see our closest neighbours also prospering and enjoying peace, and eco-
nomic and social stability. It is certainly true that more and better jobs in Eu-
rope can be sustained when we build with our neighbours sustainable infra-
structure to trade and secure flows of energy and goods, as well as human 
knowledge.

Cyprus stands firm in further enhancing the role of the EIB and other interna-
tional financial institutions in support of the Euro-Mediterranean partnership 
in order to assist our Southern Neighbours in facing the major challenges of 
the region and further expanding its great potential.

We  are  sure  that  the  Euro-Mediterranean  partnership  will  continue  with  
confidence  to  play  an  important,  strong  and  efficient  role  in  supporting 
worthwhile  investments  that  enhance  competitiveness,  development  and 
sustainable growth in the Mediterranean region.”

13

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODMacroeconomic and 
financial developments

A weak business environment, political instability and 

poor  infrastructure  quality  are  holding  back  eco-
nomic  activity  in  the  Southern  Neighbourhood. 
Competitiveness in the region is low (Figure 1), with 
many  countries  performing  poorly  according  to  the  World 
Bank’s  Doing  Business  2018  report  and  the  World  Economic 
Forum’s  (WEF)  Global  Competitiveness  Index.  The  2016  En-
terprise Survey by the EBRD/EIB/World Bank Group identifies 
political instability, corruption, electricity shortfalls and access 

to finance as the top obstacles for private sector businesses in 
the region. The fragile political and security situation and the 
difficult  business  environment  hamper  private  sector  activ-
ity. They also hinder the implementation of complex projects, 
needed  to  address  existing  infrastructure  gaps  and  within-
country  disparities.  Many  countries  in  the  region  suffer  from 
poor infrastructure quality, as noted by the WEF Competitive-
ness Index 2017.

Figure 1: Business environment (country rankings)

200

160

120

80

40

0

Morocco

Tunisia

Jordan

Palestine

Egypt

Lebanon

Algeria

  Doing Business, World Bank Group

Competitiveness, World Economic Forum 

Note:  

 World Bank’s Doing Business Report ranking includes 190 countries. World Economic Forum Global Competitiveness indicator ranking includes 137 countries.  
A high number corresponds to a poor ranking.

Source:  World Bank Group, Doing Business Report, 2018; World Economic Forum, Global Competitiveness indicator, 2017.

  Doing Business, WBG

  2015 

  2016 

  2017

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ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017 
 
 
 
 
 
 
 
 
The economic performance of the Southern Neighbourhood 
countries is slowly improving (Figure 2). The economies of the 
region expanded by 3.1% on average in 2017. GDP growth is 
expected  to  accelerate  to  3.6%  in  2018.  The  improving  eco-
nomic performance is supported by an improving security sit-
uation and the implementation of structural reforms in many 
countries,  including  Morocco,  Tunisia  and  Egypt,  according 
to  the  latest  IMF  Article  IV  Consultations  for  the  countries  in 
the region. Nonetheless, current growth may not be enough 

to  substantially  reduce  high  unemployment  and  address  re-
gional  disparities  within  countries.  The  unemployment  rate 
remained  high,  at  11.5%  in  2017.  Ongoing  regional  political 
tensions create substantial uncertainty for the private sector 
and continue to pose a substantial downside risk to the eco-
nomic outlook of the region. The conflict in Syria has had a se-
vere effect on Jordan and Lebanon. GDP growth is picking up 
slowly in both countries, reaching 2.5% in Jordan and 1.5% in 
Lebanon in 2018. 

Figure 2: Real GDP growth (in %)

6.0

4.5

3.0

1.5

0.0

Algeria

Egypt

Jordan

Lebanon

Morocco

Tunisia

Palestine

  2015 

  2016 

  2017 

  2018

Source: IMF World Economic Outlook (WEO) database. 

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2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
 
The fiscal position of many countries in the Southern Neigh-
bourhood is vulnerable, despite notable fiscal consolidation 
efforts  in  Egypt,  Jordan,  Morocco  and  Tunisia.  Fiscal  defi-
cits will remain above 5% of GDP in 2018 in five out of seven 
countries, according to the IMF (Figure 3). Moreover, debt to-

GDP  ratios  will  exceed  90%  in  Egypt,  Jordan  and  Lebanon 
(Figure 4). The fiscal position in many countries suffers from 
the legacy of weak domestic revenue mobilisation and high 
current expenditures to support large public sectors. 

Figure 3: Fiscal balance (in % of GDP)

0

-4

-8

-12

-16

Algeria

Egypt

Jordan

Lebanon

Morocco

Tunisia

Palestine

  2015 

  2016 

  2017 

  2018

Source:   IMF WEO database. 

Figure 4: General government debt (in % of GDP)

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P
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160

128

96

64

32

0

Algeria

Egypt

Jordan

Lebanon

Morocco

Tunisia

Palestine

  2015 

  2016 

  2017 

  2018

Source:   IMF WEO database. 

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ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017 
 
 
 
 
 
 
 
 
 
Low  oil  prices  have  contributed  positively  to  the  exter-
nal  balance  of  oil  importers  in  the  region.  Nonetheless,  all 
countries  in  the  FEMIP  region  record  current  account  defi-
cits (Figure 5). Current account deficits are particularly pro-
nounced  in  Lebanon,  Palestine2,  Jordan  and  Tunisia.  The 
large  current  account  deficit  in  Algeria,  a  net  exporter  of 

oil,  reflects  low  oil  prices.  Export  competitiveness  is  chal-
lenged  by  appreciating  real  effective  exchange  rates  that 
arise  from  the  dollar  pegs  that  are  in  place  in  some  coun-
tries.  Egypt,  Lebanon  and  Jordan  receive  large  remittance 
inflows, which help to finance their deficits.

Figure 5: Current account balance (in % of GDP)

0

-6

-12

-18

-24

-30

Algeria

Egypt

Jordan

Lebanon

Morocco

Tunisia

Palestine

  2015 

  2016 

  2017 

  2018

Source:   IMF WEO database. 

2   This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the EU Member States on this issue.

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2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
 
Access to finance

The financial sector in the region is dominated by banks pur-
suing  traditional  business  models.  The  percentage  of  firms 
with a bank loan is comparatively high in Lebanon, Morocco, 
and Tunisia, whereas Egypt, Jordan and Palestine are lagging 
behind  as  shown  by  data  from  the  EBRD/EIB/World  Bank 
MENA  Enterprise  Surveys  (Figure  6).  Banks  dominate  the  fi-
nancial system and are relatively large, supported by a solid 
deposit  base.  At  the  same  time,  a  large  share  of  deposits  is 
invested in government debt. In some countries, the reliance 

on  domestic  banks  for  financing  the  fiscal  deficit  and  pub-
lic debt reduces the availability of credit for the private sec-
tor. Bank credit to the private sector is above 60% of GDP in 
Morocco, Tunisia and Lebanon, according to Fitch. However, 
lending to the private sector is often concentrated on a small 
number of large firms. This can exclude the vast majority of 
firms  from  access  to  bank  lending,  even  if  credit  to  the  pri-
vate sector is high. Non-bank financial institutions and capi-
tal markets are still at an early stage of development.

Figure 6: Percentage of firms with a bank loan/credit line (% of firms)

57

54

52

Lebanon

Tunisia

Morocco

Jordan

Egypt
6

Palestine

6

17

Source:   EBRD/EIB/World Bank MENA Enterprise Survey.

18

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Access  to  finance  is  a  major  obstacle  to  operations  for  30% 
of  SMEs,  compared  to  20%  of  larger  firms,  according  to  the 
EBRD/EIB/World  Bank  MENA  Enterprise  Survey.  Moreover, 
while 73% of firms claim that they are not credit-constrained, 
58% of these firms do not even apply for a loan with a bank 
(Figure 7). In practice, these firms are shutting themselves off 

from the formal financial sector and becoming disconnected. 
The  MENA  Enterprise  Survey  shows  in  fact  that  disconnect-
ed firms behave like firms that are credit-constrained when it 
comes to investment decisions. In other words, disconnected 
firms may have enough capital to operate but not enough to 
invest, expand and create new jobs. 

Figure 7: Firms’ credit relationship with the financial sector (% of firms, 2013)

80

64

48

32

16

0

Egypt

Jordan

Lebanon

Morocco

Tunisia

Palestine

  Disconnected (suﬃcient capital - no loan needed)

  Discouraged

  Connected

Source:   EIB/EBRD/World Bank (2016), “What’s Holding Back the Private Sector in MENA? Lessons from the Enterprise Survey”.

l

Inadequate  access  to  finance  and  disconnectedness  are  es-
pecially pronounced for SMEs and microenterprises. In addi-
h
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tion to the high concentration of lending to large firms in the 
o
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g
region, the high cost of credit, reflecting stringent collateral 
P
D
G
requirements, and the inability of financial institutions to as-
sess the risks of investing in SMEs are to blame. SMEs in their 
early stages find it very difficult to access bank finance due 
to  their  lack  of  credit  history.  The  MENA  Enterprise  Survey 
shows that firms are less likely to disconnect from the bank-
ing sector and more likely to create new jobs if banks accept 

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movable assets as collateral. Since a large share of firms’ as-
sets consists of machinery and equipment, the willingness of 
banks to accept movable assets as collateral could go a long 
way  towards  enhancing  access  to  finance  for  microenter-
prises and SMEs (MSMEs). In all countries, SME lending could 
benefit from reformed secured transaction frameworks and 
better credit information. Insufficient coverage of credit bu-
reaus  is  amplified  by  the  poor  quality  of  financial  reporting 
by firms.

  2015 

  2016 

  2017 

  2018

19

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
 
 
 
 
 
 
 
FEMIP Trust Fund

20

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 201721

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD22

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017FEMIP Trust Fund 
operational results

S ince its inception, the FEMIP Trust Fund has continued to address the 

economic  challenges  in  the  Southern  Neighbourhood  countries  by 
funding  tailored  technical  assistance,  risk  capital  and  capacity-build-
ing operations. Its work is instrumental in creating opportunities and 
an attractive investment environment, which fosters economic growth in the 
region.

During  its  13  years  of  service  to  the  Southern  Neighbourhood  countries, 
the FEMIP Trust Fund has consistently demonstrated its value, with 77 ap-
proved  grant  operations  totalling  EUR 52.8m  (86%  of  the  total  paid-in 
contributions). 

Figure 8: Contributions to the FTF

Donor

  Austria
  Belgium
  Cyprus
  European Commission
  Finland
  France
  Germany
  Greece 
  Ireland
  Italy
  Luxembourg 
  Malta 
  Netherlands
  Portugal
  Spain
  Sweden 
  United Kingdom

TOTAL

Total pledges
(EUR ‘000)
2 000

Total paid-in  
(EUR ‘000)
2 000

2 500

1 000

1 000

1 000

7 000

2 000

3 000

1 000

2 500

5 4001

1 500

2 000

1 000

10 000

1 923

21 615

66 4382

2 500

1 000

1 000

1 000

7 000

2 000

3 000

1 000

2 500

5 000

1 500

2 000

1 000

10 000

1 923

16 931

61 354

1  EUR 400 000 has been transferred to the Economic Resilience Initiative Fund (ERIF)
2  Including EUR 18.48m dedicated to the CAMENA window

23

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODFEMIP Trust Fund:  
financial situation as at end-2017

The FEMIP Trust Fund has successfully deployed capital: 86% 
of the paid-in contributions (EUR 52.8m) has already been ap-
proved and allocated to 77 operations. 77% of the approved 
operations have been signed and 71% of the signed amount 
(EUR 29m, or 55% of total approvals) has been disbursed. 

Table 1: FTF financial situation as at end-2017

As at 31/12/2017

Pledged contributions

Paid-in contributions

Approved

Signed

Disbursed

Amount  
(EUR m)

% of  
approved amount

66.44

61.35

52.75

40.74

29.01

77%

55%

Project  
cycle

3

1

FTF approvals
EUR 52.8m

FTF disbursements
EUR 29.0m

2

FTF signatures
EUR 40.7m

24

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Figure 9: FTF approvals 2005-2017

FEMIP Trust Fund approvals

86%  
of the paid-in  
contributions

70

60

50

n
o

i
l
l
i

m
R
U
E

40

30

20

10

0

EUR 61.4m

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

  Accumulated Approvals

  Approvals

  Paid-in Contributions

16

14

12

10

8

6

4

2

0

A
n
n
u
a

l

A
p
p
r
o
v
a
l
s

E
U
R
m

i
l
l
i

o
n

Figure 10: FTF signatures 2005-2017

FEMIP Trust Fund signatures 

77%  
of approved

70

60

50

n
o

i
l
l
i

m
R
U
E

40

30

20

10

0

EUR 61.4m

  2015 

  2016 

  2017 

  2018

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

  Accumulated Approvals

  Signatures

  Paid-in Contributions

A
n
n
u
a

l

i

S
g
n
a
t
u
r
e
s

E
U
R
m

i
l
l
i

o
n

10

9

8

7

6

5

4

3

2

1

0

Figure 11: FTF disbursements 2005-2017

FEMIP Trust Fund disbursements

71%  
of signed

n
o

i
l
l
i

m
R
U
E

70

60

50

40

30

20

10

0

EUR 61.4m

  2015 

  2016 

  2017 

  2018

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

  Accumulated Disbursements

Disbursements

  Paid-in Contributions

A
n
n
u
a

l

D
i
s
b
u
r
s
e
m
e
n
t
s

E
U
R
m

i
l
l
i

o
n

9

8

7

6

5

4

3

2

1

0

25

  2015 

  2016 

  2017 

  2018

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODEUR 40.7mEUR 29.0mEUR 52.8m 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operations by sector

At  end-2017,  the  largest  part  of  the  funds  had  been  chan-
nelled  into  improving  access  to  finance  for  SMEs  and  mid-
caps  (EUR  16m  in  28  operations  across  both  technical  assis-
tance and risk capital instruments). To ensure the best use of 

resources  and  portfolio  differentiation  in  terms  of  scope  of 
intervention, even distribution was applied across the infra-
structure,  environment,  research,  development  and  innova-
tion (RDI), and human capital sectors. 

Figure 12: Sectoral distribution of approved FEMIP Trust Fund operations

RDI and Human Capital

18%

Finance and SMEs

31%

Multi-sector

9%

Sectoral distribution  
of approved  
FEMIP Trust Fund  
operations

20%

Environment

22%

Infrastructure

In 2017, thanks to the Trust Fund donors, nine new grant op-
erations  totalling  EUR  9.92m  were  approved.  Of  these  nine 
grants,  six  are  supporting  the  environment  sector,  two  are 

contributing  to  private  sector  development  in  the  South-
ern  Neighbourhood,  and  one  is  linked  to  an  infrastructure 
project.

Figure 13: Sectoral distribution of approved grants in 2017

EUR 7.0m
Environment

EUR 2.7m
Private sector development

EUR 0.2m
Infrastructure

26

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Geographical distribution of funding

Regional programmes, broadly covering the Southern Neigh-
bourhood  region,  comprised  57%  of  the  total  approved  
FEMIP Trust Fund funds. Excluding the regional programmes, 
Tunisia was the country benefiting most at the end of 2017, 
with ten approved grant operations worth EUR  8.7m. Pales-

tine, with EUR 6.0m in four operations, is the second-largest 
beneficiary  country  in  terms  of  volume  and  is  hosting  the 
Middle East Venture Capital Fund, the largest risk capital op-
eration supported to date by the Trust Fund, worth EUR 5m 
for early-stage private, export-oriented businesses. 

Figure 14: Geographical distribution of approved FEMIP Trust Fund operations

57.1%

Regional

Algeria 0.4%
Lebanon 0.9%
Egypt 1.1%

Jordan

5.9%

Morocco

6.5%

Geographical  
distribution of  
approved operations  
(as % of total  
approved funds)  
01/2005 - 12/2017

11.4%

Palestine

16.6%

Tunisia

27

EUR 29.1m

  2015 

  2016 

  2017 

  2018

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
Detailed status of grants 

Technical assistance contracts relating to FEMIP Trust Fund operations have been signed with consortium leaders coming 
from:
•  Netherlands, France, Germany, Belgium, Spain, Italy, United Kingdom, Portugal, USA, Luxembourg and Tunisia;
•  International organisations (UN family), EU institutions, and NGOs.

Figure 15: Geographical distribution of technical assistance consortium leaders

Consortium partners are from Lebanon, Tunisia, Morocco, Jordan, Palestine, Italy, Luxembourg, United Kingdom and France.

Figure 16: Geographical distribution of technical assistance consortium partners

28

Tasman Sea

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Approved grants in 2017 

In 2017, the Assembly of Donors approved nine new opera-
tions for a total amount of EUR 9.9m as follows:
•  six  operations  worth  some  EUR  7m  under  the  CAMENA 
climate action window, of which three are supporting in-
vestment activities in Jordan, Morocco and Tunisia and two 

were regional sub-operations under the Green for Growth 
Fund SICAV-SIF;

• 

three approvals providing EUR 2.9m under technical assis-
tance to support investments across the region.

Table 2: List of approved operations in 2017

Grant operation name

Grant type

Country

Sector

Net amount ap-
proved in EUR3 

Date of AoD 
approval

Deir Alla and Al-Karameh Water Supply and Sanitation Project

Study

Jordan

Environment

500 000

27/01/2017

Preparation of an investment programme for sustainable  
management of the GAFSA mining basin

Actions supporting the financial inclusion of more vulnerable  
people in the Southern Neighbourhood of the EU

TA

TA

Tunisia

Environment

498 000

27/01/2017

Regional

SMEs and 
private sector 
development

2 000 000

10/03/2017

Green for Growth Fund SICAV-SIF (1) 

Risk Capital

Regional

Environment

4 000 000

10/03/2017

Green for Growth Fund SICAV-SIF (2)

TA

Regional

Environment

500 000

10/03/2017

EIB-EBRD-WB Enterprise Surveys in the EU Eastern and Southern 
Neighbourhood and the Western Balkans - Southern Neighbour-
hood Section

Study

Regional

SMEs and 
private sector 
development

700 000

10/03/2017

BMCE Ligne Bleue

TA

Morocco

Environment

1 000 000

19/05/2017

Bani Kenaneh Water Supply and Sanitation Project

Study

Jordan

Environment

500 000

11/07/2017

Technical assistance for the implementation of the Electricity 
Network Upgrade Project: Project Management Support to PENRA 
Phase 2

TA

Palestine

Infrastructure

220 000

11/07/2017

Total

9 918 000

Completed grants in 2017 

In 2017, two operations for a total amount of EUR 1.3m were completed. Further details on these operations are included in the 
completed operations section on page 32.

Table 3: List of completed operations in 2017

Grant operation name

Country

Contracted 
amount
EUR 4

Date of AoD 
approval

Completion  
date

Technical Advisory to support seed accelerators in the FEMIP region

Regional

1 188 000

02/04/2014

01/12/2017

Envelope

Impact 
Finance

Technical assistance in support of the South Lebanon Water and 
Wastewater Project

Lebanon

150 000

14/12/2015

08/08/2017

CAMENA

Total

1 338 000

3  Includes part cancellation and increase of amount approved.
4  Includes part cancellation and increase of amount approved.

29

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODImpact in the Southern 
Neighbourhood

S ince  the  FEMIP  Trust  Fund’s  scope  of  operations  has 

been aligned with Official Development Aid (ODA) re-
quirements, contributions to the Fund can be report-
ed as ODA – based on the OECD Development Assis-

tance Committee (DAC) List. 

In  2015,  193  countries  adopted  the  2030  Agenda  for  Sus-
tainable Development and its 17 Sustainable Development 
Goals  (SDGs).  Governments,  businesses  and  civil  society, 
together with the United Nations, are mobilising efforts to 
achieve the Sustainable Development Agenda by 2030. Uni-
versal, inclusive and indivisible, the Agenda calls for action 
by all countries to improve the lives of people everywhere. 

The  table  below  shows  the  contribution  of  the  ongoing 
FEMIP  Trust  Fund  operations  towards  attaining  the  SDGs. 
The  full  amount  invested  under  each  operation  or  a  share 
of it has been allocated to the respective SDG based on the 
operation’s expected results. 

Figure 17:  Committed FTF funds per SDG under the ongoing 

operations

SDG 12; EUR 0.6m
SDG 10; EUR 0.7m
SDG 6; EUR 0.9m
SDG 4; EUR 1.0m
SDG 11; EUR 1.7m

SDG 7; EUR 1.9m

SDG 9; EUR 2.8m

SDG 16; EUR 0.23m

SDG 3; EUR 0.13m

SDG 17; EUR 11.0m

Committed  
FTF funds per SDG 
under the ongoing 
operations

SDG 13; EUR 3.0m

SDG 8; EUR 4.2m

30

As of end-2017, the ongoing FEMIP Trust Fund op-
erations  supported  12  out  of  17  SDGs  with  invest-
ments totalling some EUR 28m.

The  largest  share  of  the  currently  ongoing  opera-
tions is committed to the partnership and coopera-
tion that are required to attain SDG 17 (Partnerships 
for  the  Goals)  through  investments  in  financial  in-
struments (including equity and local currency mi-
crofinance)  and  capacity-building  programmes. 
This  represents  39%  of  the  approved  amount  un-
der 12 FTF operations. The Trust Fund also supports 
infrastructure, 
innovation 
(SDG  9)  and  measures  to  combat  climate  change 
and  its  impacts  (SDG  13).  SDGs  9  and  13  are  sup-
ported by 18 ongoing operations constituting 21% 
of  the  approved  amount.  Overall,  as  much  as  29% 
of the approved funds is contributing to climate ac-
tion  and  other  environment-related  SDGs,  namely 
SDGs 6, 7, 11, 12 and 13.

industrialisation  and 

  2015 

  2016 

  2017 

  2018

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017 
 
 
Table 4: Contribution of ongoing FEMIP Trust Fund operations to the attainment of the SDGs

Sustainable 
Develop-
ment Goal

Number of 
operations 5

Committed 
amount 6 
 (EUR m)

Regional
(EUR m)

Egypt  
(EUR m)

Jordan 
(EUR m)

Lebanon 
(EUR m)

Morocco 
(EUR m)

Palestine 
(EUR m)

Tunisia 
(EUR m)

1

1

6

3

3

8

1

5

5

10

1

12

0.13

1

0.89

-

1

-

-

-

0.13

-

-

-

-

-

0.08

0.29

0.11

0.25

-

-

-

0.30

2.50

-

-

0.17

-

-

-

-

-

-

1.29

0.17

0.18

0.22

1.29

-

-

0.25

-

-

-

-

-

-

-

-

-

-

0.43

0.29

0.11

-

0.29

0.11

0.43

0.30

0.17

-

-

-

-

-

-

-

0.25

2.50

2.00

1.88

1.50

0.08

4.17

1.67

2.77

0.83

0.67

0.67

1.72

0.64

-

-

3.03

1.65

0.23

0.23

11.05

6.30

-

-

-

-

-

-

-

-

Total

28.16

13.84

0.30

1.25

0.33

1.55

5.82

5.07

5    An operation can contribute to the achievement of a single or multiple SDGs.
6     Committed amount refers to the whole amount or a share of the approved amount for the operation depending on the number of SDGs each operation supports. 

The approved funds are equally distributed among the SDGs for each operation if it contributes to the attainment of more than one SDG.

31

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODCompleted operations in 2017

Supporting seed accelerators in the Southern Neighbourhood region

Over the last 14 years, the Bank has steadily increased its sup-
port for the creation of innovative start-ups and SMEs in the 
Southern  Neighbourhood  region,  not  only  by  investing  in 
first-time seed and venture capital (VC) funds but also by pro-
viding technical advisory. Tailor-made technical assistance for 
seed accelerators helps them provide better support to start-
ups with a view to improving the deal flow of investable in-
formation and communications technology (ICT) companies.

The  term  seed  accelerator  refers  to  a  relatively  new  class  of 
early-stage  programmes  that  combines  the  elements  of  tra-

ditional incubators with small amounts of equity-based pre-
seed funding and in-depth coaching in order to turn business 
ideas  into  products  in  a  matter  of  months.  The  accelerator 
programme culminates in an event in which start-ups are in-
troduced to potential investors to get them to the next stage. 

Initially, FEMIP Trust Fund resources supported the establish-
ment of the first FEMIP “business angels” network, invested 
in  Sadara  Ventures,  a  Palestinian  early-stage  ICT  fund,  and 
provided  technical  assistance  to  the  Palestinian  ICT  Incuba-
tor (PICTI). 

Table 5: Key facts of TA to support seed accelerators in the FEMIP region

Technical advisory to support seed accelerators in the FEMIP region 

Approved amount

Signed

Disbursed

Sector

EUR 2m

EUR 1.18m

EUR 1.03m

Date of approval

Date of signature

Date of completion

SMEs and Private Sector

Geographical area

02/04/2014

19/11/2014

01/12/2017

Regional

32

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Subsequently, The FEMIP Trust Fund set up the first platform 
to support seed accelerators with a combination of capacity 
building and funding. Seed accelerators act like powerful fil-
ters, as they generate a quality pipeline of investable compa-
nies  for  business  angels  and  VC  funds.  They  provide  entre-
preneurs  with  investment  to  help  them  create  companies, 
innovate  and  expand.  This  typically  includes  pre-seed  and 
seed  funding  that  comes  at  an  early  stage,  training  and,  in 
some cases, open-lab office space. For all these reasons, seed 
accelerators appear to be playing a key role in the creation of 
first-time jobs for young people.

This is how the FEMIP Trust Fund helped:

Technical assistance

•  Selection of a pool of seed accelerators in target countries. 

•  Organisation  of  the  following  capacity-building  pro-

grammes for seed accelerators’ staff members: 

•  six  regional  workshops  facilitated  by  top-class  experts 
and practitioners focused on improving the accelerators’ 
efficiency  and  their  services  to  start-ups  in  the  areas  of 
business  development,  management,  marketing  and  ad-
vanced  technology.  Some  of  the  capacity-building  pro-

grammes  aimed  to  promote  regional  integration  by  in-
creasing  the  interaction  between  the  accelerators’  staff 
across the region; 

• 

two study tours in the United States and in the European 
Union  to  visit  state-of-the-art  accelerators,  learn  about 
best practices and create networking opportunities. 

•  Supporting  the  EIB  in  disbursing  grants  to  the  selected 

accelerators. 

•  Monitoring the use of the grant by the accelerators based 

on deliverables. 

•  Measuring  the  success  of  the  pilot  according  to  pre-de-

fined benchmarks. 

•  With  this  project,  the  Bank  catalysed  and  channelled 
support  for  the  development  of  local  entrepreneurship 
in an innovative way. In a region where the business en-
vironment  is  becoming  more  difficult  and  cultural  im-
pediments  more  entrenched,  Tunisia  was  a  bright  spot. 
Although the home of the Arab Spring is suffering signifi-
cantly economically and has been plagued by terrorist in-
cidents, start-ups are nonetheless showing openness and 
a  desire  for  a  democratic,  collaborative  society.  Young, 
well-educated  and  dynamic,  the  entrepreneurs  share  re-
sources and support each other. 

33

Four  accelerator  programmes  are  all  working  together,  act-
ing as mentors for each other’s clients and sharing networks, 
investors and international connections. 

This group of four accelerators is also actively engaged in our 
Acceleration for Value Creation (AfVC) programme. This pro-
gramme  selected  12  companies,  all  of  which  had  excellent 
technologies,  and  helped  them  develop  international  busi-
ness  models,  gain  international  customers  and  connections 

and start the scaling process. The number of active projects, 
however,  quickly  fell  to  ten,  a  further  two  of  which  did  not 
participate fully in the programme due to lack of time, issues 
with visas and external commercial pressures. The technical 
assistance team introduced the remaining firms to sales and 
distribution  channels,  connected  them  with  experts  in  the 
respective fields, and introduced them to individual investors 
and funds through the technical assistance team’s network.

Monder  Khanfir,  engineer  and  venture  capital  investor, 
runs a seed accelerator firm in Tunisia that benefited from 
this technical advisory programme. It is common for many 
entrepreneurs in the Middle East and North Africa (MENA) 
to leave their countries to look for better opportunities or 
easier financing. This contributes to the brain drain, a phe-
nomenon  where  professionals  move  to  other  countries  to 
find success. 

INTERVIEW

Too many hurdles

“I set up my first company in Tunisia in 1997 because I want-
ed  to  give  something  back  to  society  –  ‘la  dette  sociale’  as 
we call it,” Khanfir says. “But very soon, I was shocked at the  
level  of  bureaucracy,  administrative  hurdles  and  clearance 
procedures.  Everything  was  a  nightmare.  Only  six  months 
later, I left the country.”

Khanfir  eventually  returned  to  Tunis  and  today  his  seed  ac-
celerator company, WikiStartup, is showing young entrepre-
neurs that they can succeed at home. 

“Just after the revolution in 2011, we were inspired by the US 
model of seed accelerators and started our own firm in Tuni-
sia: WikiStartup,*” Khanfir says. “At the time there were very 
few organisations of this type focusing on getting businesses 
started, and common to all of us was the desire to impact the 
ecosystem for the new generation of entrepreneurs. We knew 
that we would not succeed without funding, so we launched 
the seed capital fund for start-ups in Tunisia.”

Thanks to the FEMIP Trust Fund, WikiStartup became the first 
accelerator in Tunisia. 

“There is an incredible dearth of information about econom-
ic  activities  in  Tunisia,  but  also  in  the  whole  MENA  region 
and all across Africa,” Khanfir explains. “Founders need to be 
smart, flexible, passionate and able to bear pain, I guess.”

“This programme helped us to see different seed accelerator 
models in different countries, which spanned eight countries. 
We  were  happy  to  see  that  all  start-up  entrepreneurs  share 
the same spirit, mind-set and behaviour: taking risk, looking 
for  knowledge  capital,  thinking  outside  the  box,  being  very 
open and creative,” Khanfir comments. 

“I see great potential for seed accelerators in Tunisia to support 
up to 500 start-ups a year. Today we only support 10-20 start-
ups a year, but there are many people who want to create busi-
nesses and jobs. This means we have very fertile ground.”

34

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Results

Of  the  eight  actively  engaged  companies,  seven  are  now 
generating revenue in international markets:

•  JOBI, which is in its first six months of revenue generation, 
is  establishing  an  Irish  company  and  is  at  an  advanced 
stage of obtaining funding from Enterprise Ireland; 

•  BARAC,  a  young  cybersecurity  firm  that  detects  attacks, 
identifies threats to information-technology infrastructure 
and uses artificial intelligence to detect fraud – in its first 
year, with almost GBP 5m of orders generated in the UK;

•  Chifco, which will quadruple its sales this year, all in export 

markets; 

•  Tagaddod,  which  is  the  only  production  enterprise,  has 
won  orders  in  Switzerland,  the  Netherlands  and  poten-
tially  the  UK,  and  will  increase  its  revenues  by  400%  to 
EGP 20m this year; 

•  NextGen,  which  will  also  double  sales  with  new  orders 

from Qatar, Algeria and Oman; and

•  Valomnia, which is advancing in the UK and will increase 

sales by 50% this year.

•  WebRadar, which is now operating in France and negoti-
ating a contract with L’Oréal worth EUR 400 000, which is 
double its current annual turnover;

The  eighth  company,  Methania,  which  helps  farmers  pro-
duce their own renewable energy, is in its first year of reve-
nue generation and has received almost EUR 1m worth of or-
ders in Tunisia.

35

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD36

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017South Lebanon water and wastewater project

This technical assistance operation supported the promot-
er and the other Lebanese institutions involved in the man-
agement,  implementation  and  initial  operation  of  the  in-
vestment project funded by the EIB for the Sour wastewater 
treatment plant.

•   helped  the  municipalities  involved  with  the  design,  pro-
curement  and  construction  of  the  necessary  connections 
between the new primary/secondary collector systems and 
the local tertiary sewer systems serving households;

In particular, the technical assistance operation:
•   advised  the  CDR  and  the  South  Lebanon  Water  Establish-
ment (SLWE) on managing the procurement, construction 
and operational stages of the South Lebanon (Sour) waste-
water project;

•   supported the institutional development of the South Leb-
anon  Water  Establishment  with  advice  and  assistance  in 
setting up a dedicated wastewater division, and recruiting 
and  training  professional  staff  to  manage  the  wastewater 
collection and treatment facilities;

•   supported the CDR in meeting the conditions for disburse-

ment of the EIB loan and the reporting requirements;

•   provided  training  to  South  Lebanon  Water  Establishment 
staff in supervising and managing the completed wastewa-
ter facilities in their areas of responsibility.

Table 6: Technical assistance in support of the South Lebanon Water and Wastewater Project

Approved amount

Signed

Disbursed

Sector

Beneficiary

Technical assistance in support of the South Lebanon water and wastewater project

EUR 0.15m

EUR 0.15m

EUR 0.15m

Date of approval

Date of signature

Date of completion

Environment/Water (climate action)

Geographical area

14/12/2015

12/04/2016

28/02/2017

Lebanon

Council for Development and Reconstruction (CDR), South Lebanon

37

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODSpecialised programmes

FEMIP Trust Fund:  
targeted support for climate action

CAMENA – Supporting climate action  
in the Middle East and North Africa

1.  Identification of projects

2.  Assistance with project preparation and implementation

3.   Capacity building for financial intermediaries, public sector borrowers and other 

stakeholders to improve the development of climate action projects

4.   Upstream activities related to advisory services and investments in climate action

Figure 18: Share of environment-related FEMIP Trust Fund operations supported by CAMENA

UK aid branding guidance

June 2014

Total FTF 
Operations

79.7%

20.3%

Environment sector

Other 13% 

CAMENA 87% 

Other Sectors

Environment

38

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Figure 19:  CAMENA portfolio as of end-2017

10
Technical
Assistance

1
Risk
Capital

✓

✓

✓

3 operations in procurement phase 
(EUR 1.9m)
5 signed operations
(EUR 2.5m)
2 completed operations
(EUR 0.45m)

✓

C-Share investment in the Green 

for Growth Fund (GGF)

11
approved
operations

CAMENA outputs

As at end-2017, the CAMENA envelope 
had approved 11 operations for a total 
amount of EUR 9.3m.

During 2017, four new CAMENA operations were 
approved:
–  three  feasibility  studies:  wastewater  collection  and 
treatment for the Bani Kenaneh area (Jordan); sustain-
able  management  of  the  GAFSA  phosphate  mining 
basin PART A (Tunisia); Deir Alla and Al-Karameh water 
supply and sanitation project (Jordan)

–  one equity operation: Green for Growth Fund ("GGF")
–  one  financial  technical  assistance  operation  in  sup-

port of the BMCE Ligne Bleue project

2013

A
n
n
u
a

l

i
l
l
i

E
U
R
m

BMCE Ligne Bleue (Morocco)
Scope: establishment of a line of credit (“Ligne Bleue”) 
D
i
s
intermediated  by  the  Banque  Marocaine  du  Com-
b
u
r
merce  Extérieur  (BMCE),  which  will  be  dedicated  to 
s
e
m
funding  water  efficiency  and  water  resource  protec-
e
n
tion  projects  in  the  private  sector  in  Morocco.  The 
t
s
grant will be used for technical assistance to support 
project implementation and ensure that funds are ab-
sorbed rapidly and channelled towards the most cli-
mate-relevant investments.

EUR 29.1m

o
n

  2015 

  2016 

  2017 

  2018

39

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
 
Wastewater collection and treatment for  
Bani Kenaneh Area (Jordan)

Scope:  preparation  of  a  technical  and  economic  feasibility 
study for the upgrading of the water supply system and for 
the provision of a wastewater collection and treatment sys-
tem  to  serve  needs  up  to  the  year  2045  and  to  assess  the 
environmental and social impacts of the project.

Sustainable management of the GAFSA mining 
basin PART A (Tunisia)

Scope: provision of technical assistance for the management 
of  water  resources  under  severe  stress  from  the  cumulative 
impact of industrial pollution and climate change in the arid 
Gafsa basin in central Tunisia. The proposed technical assis-
tance project is divided into two separate phases:

1.  Phase I: Determine the best value for money investments 
to improve water resource management and develop a co-
herent investment programme;

2.  Phase II: Investigate the technical, economic, financial, so-
cial  and  environmental  feasibility  of  the  selected  invest-
ments for the purpose of maximising efficiency in the use 
of water resources and preserving their quality.

40

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017to include six countries in the MENA region, following up its 
success  in  the  South-Eastern  Europe  and  EU  Eastern  Neigh-
bourhood countries. Financing under CAMENA will be exclu-
sively dedicated to the MENA region. GGF provides refinancing  
and  technical  assistance  to  financial  institutions  to  enhance 
their  participation  in  the  energy  efficiency  and  renewable 
energy  sectors;  it  also  makes  direct  investments.  EUR  4m 
is  for  C-share  investment  and  EUR  500  000  is  for  technical 
assistance. 

Deir Alla and Al-Karameh water supply and sanita-
tion project (Jordan)

Scope: preparation of baseline and feasibility studies for the 
upgrading of the water supply system and for provision of a 
new wastewater collection and treatment system. The tech-
nical  assistance  will  investigate  the  necessity  and  the  tech-
nical, economic, financial, social and environmental feasibil-
ity. It will prepare an investment project for the rehabilitation 
and upgrading of the existing water supply system and the 
improvement  of  the  wastewater  collection  and  wastewater 
treatment system. 

Green  for  Growth  Fund  ("GGF")  -  C-share  invest-
ment in the Green for Growth Fund to advance en-
ergy  efficiency  and  renewable  energy,  combined 
with technical assistance (regional)
Scope:  C-share  investment  (first  loss  tranche)  in  the  Green 
for  Growth  Fund,  SICAV-SIF  ("GGF").  The  Fund  is  expanding 

41

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODInternship programme  
at the European Investment Bank

This  programme  contributes  to  building  capacity  in 
the  region  and  provides  a  unique  opportunity  for 
graduates from all FEMIP countries. 

Mediterranean 
Partner Countries

Type of grant

 Capacity building

Countries

Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, 
Palestine, Syria and Tunisia

Implementing entity

EIB

Beneficiary

All 10 Southern Neighbourhood countries

Countries eligible for the FEMIP TF are: Algeria, Egypt, Israel, 
Jordan, Lebanon, Libya, Morocco, Palestine, Syria, and Tunisia. 
The EIB will start operating in Libya after it signs a Framework 
Agreement  with  the  country.  Following  EU  sanctions  in  No-
vember  2011,  the  EIB  has  suspended  all  loan  disbursements 
and technical advisory contracts for projects in Syria.

Sector

Human capital

Amount of the grant

EUR 1.99m

Date of grant approval

07/03/2006

Time frame of the grant

Start of activities: 01/01/2007

End of activities: 31/12/2018

What FEMIP trainees say

Safaa Aarab, Mandate Management Department

“The FEMIP traineeship is a unique opportunity for non-EU young 
graduates to have access to a life-changing experience working for 
one of the most important international financial institutions.  
I was very fortunate to join the programme and be part of an inter-
national, fast-paced and stimulating team like the Trust Fund and 
Blending Division, which contributes to the EIB’s mission by impact-
ing people’s lives and making them better. Having a first working 
experience in such an environment was very enriching, both profes-
sionally and personally, and enabled me to enter the international 
and highly competitive Luxembourgish consulting sector.”

42

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017It  provides  the  selected  candidates  with  on-the-job  expe-
rience  and  training  in  a  global  development  environment, 
while giving the European Investment Bank an opportunity 
to benefit from the knowledge, talent and diversity that the 
trainees bring to the institution. 

No country splits or gender quotas are imposed and the se-
lection  of  candidates  is  solely  based  on  qualifications.  This 
notwithstanding,  the  programme  will  continue  to  aim  at 

Directorate Breakdown

Secretariat General

Operations Directorate

Projects Directorate

Finance Directorate

Office of the Chief Compliance Officer

Risk Management Directorate

Transaction Management and Restructuring

EIB Institute

Total

16

43

30

4

5

1

4

2

105

Country of Origin Breakdown

FEMIP Countries

Algeria

Palestine

Egypt

Israel

Jordan

Lebanon

Morocco

Syria

Tunisia

Turkey

Total

4

5

13

1

3

5

32

5

12

25

105

reaching  a  balance  in  terms  of  the  geographic  and  gender 
representation of the interns.

The programme was approved in 2006 and launched in 2006 
with funding of EUR 0.47m. This funding was increased four 
times  and  reached  EUR  1.99m.  It  enabled  the  recruitment 
of  105  trainees  between  2007  and  2017.  As  at  end-2017,  an 
amount of EUR 1.3m had been disbursed, leaving a balance 
of EUR 0.6m not used. It is expected that 11 trainees will be 
recruited in the period 2018-2019.

Reham Abdelrahman, Neighbouring Countries Department

“Participating  in  the  prestigious  FEMIP  internship  programme 
at the European Investment Bank is a valuable international ex-
perience.  The  EIB  is  very  positive  and  dynamic,  and  provides  a 
great  multicultural  environment  and  a  stimulating  and  inspir-
ing workplace. The international working environment at the EIB 
offered  me  a  great  platform  to  work  together  with  profession-
als from different backgrounds and to learn more about finance 
for development. Such an international experience afforded me 
professionalism,  global  exposure,  relevance  to  my  academic 
studies, complex challenges and the opportunity to broaden my 
horizons. What’s more, this formative internship is perfect for me 
in pursuing my future career and for my personal development.”

43

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODOperations Directorate and the Secretariat General. Two ad-
ditional  secondees  are  expected  to  join  the  Bank  in  2018. 
Each eligible candidate will commit to the EIB-FEMIP Second-
ment Programme for up to two years at the EIB. 

Secondment programme

By hosting secondees from public sector organisations in the 
region, the Bank and the FEMIP Trust Fund donors contribute 
to developing institutional skills for officials from the differ-
ent  ministries  (Finance,  Economy,  Transport,  Environment, 
etc.),  central  banks  or  other  public  organisations  across  the 
Southern Neighbourhood countries.

Since the launch of the programme in 2013, the EIB has host-
ed six secondees – from Egypt, Palestine and Tunisia – in the 

Objectives:

to offer secondees relevant work experience in an in-
ternational organisation;

to  strengthen  relationships  between  the  EIB  and  the 
Southern Neighbourhood countries;

to  foster  sustainable  socio-economic  development 
and inclusive growth in the Southern Neighbourhood 
countries;

to  build  capacity  and  foster  an  enabling  investment 
environment  in  favour  of  the  EU  priority  areas  for  its 
Southern Neighbours.

Mediterranean 
Partner Countries

Amount of the grant

Date of grant approval

EUR 1.1m

21/12/2012 

Sector

Human capital

Indicative time frame at approval stage

Start of activities: 01/2013

End of activities: 12/2018

Countries  eligible  for  the  FEMIP  TF  are:  Algeria,  Egypt,  Israel,  Jordan, 
Lebanon, Libya, Morocco, Palestine, Syria, and Tunisia. The EIB will start 
operating in Libya after it signs a Framework Agreement with the country. 
Following EU sanctions in November 2011, the EIB has suspended all loan 
disbursements and technical advisory contracts for projects in Syria.

• 

• 

• 

• 

44

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017What FEMIP secondees say

Nour Mestiri, Neighbouring Countries Department 

“Before joining the EIB, I worked for three years in a Tunisian civ-
il engineering design office. I heard about the EIB and it was a 
dream for me to be part of the EIB team. This dream came true 
thanks to the FEMIP secondment programme. This programme 
did not just make a dream come true, but it also boosted my ca-
reer. Since joining the EIB, in the public sector operational de-
partment for the MENA region, I have learned a lot.

First,  I  learned  to  love  my  job.  Working  with  such  a  dynamic 
team enabled me to love what I do. Second, I work with inter-
national colleagues with experience, knowledge and expertise: 
what I learned here in 17 months would take me five years to 
learn  where  I  come  from.  Third,  this  opportunity  even  helped 
me  with  my  personal  development.  Finally,  this  opportunity 

Mohamed Ali Hmani, Advisory Services Department

“After working as an economist for the Central Bank of Tuni-
sia for many years, I felt that it was necessary to give an in-
ternational  flavour  to  my  professional  career,  preferably  by 
starting a new, different line of work in the development fi-
nancing field. So when the secondment opportunity arose it 
was a welcome development, and I was happy to be able to 
play a role, no matter how small, as a Technical Assistance 
(TA) Officer within the Advisory Services (AS) Department of 
the  EIB.  In  that  role,  I  have  contributed  to  the  preparation 
and  implementation  of  the  EIB's  advisory  activity  through 
the  management  of  externally  procured  TA  operations,  in 
close  cooperation  with  other  EIB  services  (Operations,  Pro-
jects,  Legal).  I  have  been  involved  in  the  day-to-day  activi-
ties of the TA business, with significant interaction on specific 
projects, which has given me real insight into the EIB’s opera-
tions and objectives.

Eighteen months on and I can honestly say that, my experi-
ence as a secondee, although challenging, has been enjoy-
able  and  very  rewarding.  One  of  the  most  enjoyable  parts 
of  my  secondment  has  undoubtedly  been  the  opportunity 

has brought me many more advantages than I expected, especially 
in terms of expertise in the field of finance.”

to network with a new set of colleagues, and an added bonus is 
that I have a completely new group of friends. In sum, I feel I have 
benefited  both  personally  and  professionally  from  this  experi-
ence and I would encourage other professionals to take second-
ment  opportunities  and  push  themselves  that  little  bit  further 
out of their comfort zone.” 

45

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODDissemination Window

The Dissemination Window is an envelope of funds 
set aside for awareness-raising activities such as the 
organisation  of  side  events  at  international  confer-
ences  or  support  for  similar  efforts  by  beneficiary 
governments. Activities can include seminars, work-
shops, participation in conferences, the production 
of  information  material  for  a  broad  audience,  and 
other activities that are not covered in the individu-
al operation budget.

In  2017,  funds  were  used  for  a  visit  of  the  Tunisian 
Ministry  of  Development  and  International  Coop-
eration  (MDICI)  to  the  European  Investment  Bank 
from 2 to 4 October. This visit provided the Tunisian 
Delegation with a better understanding of the func-
tioning of the EIB and contributed to building rela-
tions  between  the  EIB  and  the  key  focal  points  in 
the MDICI.

Mediterranean 
Partner Countries

Countries eligible for the FEMIP TF are: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria, and Tunisia.  
The EIB will start operating in Libya after it signs a Framework Agreement with the country. Following EU sanctions in November 
2011, the EIB has suspended all loan disbursements and technical advisory contracts for projects in Syria.

Type of grant

Countries

Seminars

Southern Neighbourhood countries

Implementing entity

EIB

Beneficiary

Public and private

Amount of the grant

EUR 0.45m

Date of grant approval

11/03/2008

Grant duration approved

Term of FTF

Time frame of the grant

Start of activities: 02/04/2008

End of activities: Term of FTF

MDICI  representatives  also  discussed  bilateral 
cooperation  with  Luxembourgish  authorities 
and met with the EIB’s Brussels office staff.

improve  understanding  of 

The  programme  included  thematic  sessions 
to 
the  EIB’s 
procedures, including on technical assistance, 
environmental  and  procurement  standards, 
legal documentation, and blending activities.

A  similar  visit  of  Lebanese  authorities  to  the 

EIB took place in summer 2018.

The  visit  resulted  in  intensified  cooperation 
on  project  implementation  and  new  projects 
(including the signing of two public sector pro-
jects in 2017). 

The  EIB  hosted  three  MDICI  representatives 
in  October  2017  to  raise  awareness  of  EIB  
activities,  guidelines  and  procedures  in  the 
region.

46

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Partnerships with third parties

The  following  table  shows  contributions  to  the  FEMIP  Trust 
Fund received from third parties as at 31 December 2017.

The FEMIP Trust Fund channels grants from third parties for 
specific  purposes  such  as  the  Deauville  Partnership  MENA 
Transition Fund (MENA TF), which supports EIB-led regional 
projects. 

Third-party  contributions  have  also  been  received  through 
cooperation agreements with:

–  the International Renewable Energy Agency, United Arab 
Emirates  (IRENA)  for  the  co-financing  of  a  study  entitled 
“Evaluating  renewable  energy  manufacturing  potential  in 
the Southern Neighbourhood Countries”.

–  the  International  Institute  for  Democracy  and  Elector-
al  Assistance,  Sweden  (IDEA)  to  support  a  joint  region-
al  study  entitled  "Enhancing  the  Impact  of  Private  Sector 
Development  on  Democratic  Transition  in  the  Southern 
Neighbourhood Countries".

–  the  German  Agency  for  International  Cooperation  (GIZ) 
to  support  a  study  entitled  “National  Appropriate  Mitiga-
tion  Actions  Potentials  in  the  Southern  Neighbourhood 
Countries”.

Table 7: Third-party contributions to the FTF

Third Parties

Deauville Partnership MENA 
Transition Fund (MENA TF)

International Renewable 
Energy Agency, United Arab 
Emirates (IRENA)

International Institute  
for Democracy and Electoral 
Assistance, Sweden (IDEA)

German Agency for 
International Cooperation GIZ 
(NAMA)

Pledges  
in EUR

Paid-in  
in EUR

Status

20 965 000 

16 250 000

Ongoing

18 000 

18 000

Completed

75 000 

75 000

Completed

100 000 

100 000

Ongoing

Total

21 158 000

16 443 000

The  Trust  Fund  has  been  successful  in  deploying  capital. 
However,  the  remaining  resources  available  for  new  op-
erations  are  running  out.  In  parallel,  requests  for  financing 
are  increasing  and  the  pipeline  of  projects  already  exceeds 
EUR 20m. The EIB counts on the continued support of donors 
to achieve its ambitious and challenging objectives.

47

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODThe Deauville MENA Transition Fund (MTF)

The Deauville Partnership provides support for political and 
economic  transitions  in  Egypt,  Tunisia,  Morocco,  Libya,  Jor-
dan  and  Yemen.  The  MENA  Transition  Fund  was  created  to 
provide  countries  with  advisory  services  to  undertake  the 
policy  reforms  needed  to  build  more  inclusive  and  trans-
parent  economies,  boost  trade  and  integration  in  the  re-
gion, and create an enabling environment for private sector 
growth. It is administered by the World Bank; the EIB acts as 
an implementation support agency.

As  at  end-2017,  the  total  amount  of  contributions  received 
by the fund was USD 240.3m. USD 24.3m has been granted 
by the MENA Transition Fund for five EIB-led technical advi-
sory programmes in the Southern Neighbourhood countries 
through the FEMIP Trust Fund.

Figure 20: MTF-allocated funds by implementing support agencies

120

100

80

m
D
S
U

60

40

20

0

32,4

24,2

13,3

6,5

1,0

0,5

29,0

14,4

3,8

African Development Bank

Arab Fund for Economic 
& Social Development

European Bank for 
European Investment Bank
International Finance Corporation
African Monetary Fund
Reconstruction and Development

International Monetary Fund

Organisation for Economic 
Islamic Development Bank
Co-operation and Development

OPEC Fund for 
International Development

111,5

World Bank

48

  Accumulated Disbursements

Disbursements

  Paid-in Contributions

  2015 

  2016 

  2017 

  2018

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017 
 
 
 
 
 
 
 
 
 
 
Project Status

EIB-led projects approved by the Deauville MENA Transition Fund7

Table 8: MTF projects' status

Project

Objective

Logismed Soft Project 

Regional Integration through Trade  
and Transport Corridors

SME Growth Programme

✔  Supports the enhancement of logistic platform capacities in Egypt, Morocco and Tunisia and creates a 
collaborative network between logistic platforms. The initiative is ongoing. It is delivering specialised 
training in all participating countries. It is laying the foundations for the establishment of national  
logistics associations that will eventually support the future network of logistics centres.

✔  Reduces barriers to trade and transport along the priority trade corridors of Egypt, Jordan, Morocco  

and Tunisia. The initiative is supporting different studies in the fields of logistics, road, rail and maritime 
transport and could lead to the mobilisation of up to USD 600m in several investments within the  
different technical fields across the region. 

✔  Supported Jordan's SME Growth Programme, the primary objective of which is to support and sustain 
start ups and SMEs, with a particular focus on high-value growth enterprises. This initiative was  
targeted at JEDCO (Jordan Enterprise Development Cooperation), and enabled it to move from being a 
grant-awarding and administrative body to an organisation with proven capacity to access resources in 
support of SME growth and development in Jordan. To date the programme has prepared growth action 
plans for 50 enterprises. It is estimated that these enterprises will have a combined increase in sales of 
over EUR 55m and create over 900 jobs. 

Promoting Financial Inclusion via Mobile 
Financial Services in the Southern and 
Eastern Mediterranean Countries

✔  Provides targeted support to the region’s central banks to promote the development of innovative  
retail payment solutions, such as mobile financial services, which will enable expanded access to  
financial services across the region.

Optimising and Monitoring Employment  
in Infrastructure Investments

✔  Estimates the impact of government investments in public infrastructure on job creation, in qualitative 
and quantitative terms, through a management information system, and applies lessons learnt to  
design better projects which can create more and better jobs.

Financial breakdown of EIB-approved projects (in USD)

Table 9: Financial breakdown of EIB-approved projects under MTF

Project per country

Logismed Soft Project 

Egypt

Jordan

Morocco

Tunisia

Grand Total

1 565 403

1 565 403

1 565 000

4 695 806

Regional Integration through Trade and Transport Corridors

4 230 000

2 630 000

3 550 000

3 800 000

14 210 000

SME growth programme

3 850 000

Promoting Financial Inclusion via Mobile Financial Services 
in the Southern and Eastern Mediterranean Countries

Optimising and Monitoring Employment in Infrastructure 
Investments

426 000

392 000

3 850 000

874 0008 

609 500

609 500

Total

5 795 403

6 906 000

5 507 403

5 974 500

24 239 306

7  More details on the contracts regarding EIB projects are given in Annex 4.
8  USD 56 000 has been retained as an indirect cost for promoting financial inclusion via mobile financial services in the Southern and Eastern Mediterranean countries for Egypt.

49

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODEIB financing in the Southern 
Neighbourhood

50

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 201751

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODEIB lending  
in the MENA region

I n  2017,  the  Bank 

lent  a  total  of 
EUR  1.9bn9  to  the  Southern  Neigh-
bourhood  countries,  an  increase  of 
about  17%  compared  to  2016,  un-
derpinning  the  EIB’s  commitment  to  re-
tain  its  role  as  a  leading  financier  in  the 
region. 

Figure 21: Signed loans 2007-2017, EUR m

2500

2000

1500

1000

500

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

  Algeria 

  Egypt 

  Israel 

  Jordan

  Lebanon 

  Morocco 

  Palestine

  Syria

  Tunisia

In 2017, the Bank signed 18 operations in six countries (Egypt, 
Jordan,  Lebanon,  Morocco,  Palestine,  and  Tunisia).  While  
continuing  to  support  key  infrastructure  projects  across  the 

region,  the  Bank  focused  increasingly  on  the  private  sector 
during the year, in particular on SMEs. 

In addition, the Bank invested EUR 68m in equity, new products and special transactions (ENPST) projects and the EIF provided EUR 60m in the form of guarantees.

h
t
w
9 
o
r
g
P
D
G

l

a
e
R

52

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017 
 
 
 
 
 
 
 
 
Figure 22: Loans signed in 2017 (Breakdown by sector, %)

Water

Education

Corporates

6%

2%

4%

Energy

6%

Transport

17%

65%

Loans for 
SMEs and 
mid-caps

72%  of  the  total  lending  volume  went  to  private  sector  en-
tities,  as  against  an  average  of  45%  across  the  region  over 
2007-2016.  Apart  from  the  significant  increase  in  SME  lend-
ing (which reached 66% of the overall lending volume in 2017, 
compared to 54% in 2016 and 12% in 2015), the Bank contin-
ued  to  support  transport  projects,  which  represented  17% 
of  total  lending.  Corporate  lending  (6%)  was  also  on  the  rise 
compared to previous years and focused primarily on compa-
nies in the manufacturing and food/agriculture sectors. 

In  the  public  sector,  the  Bank  continued  to  provide  support 
to  key  infrastructure  projects  across  the  region  in  the  areas 
of transport, energy, education, and water and sanitation, ac-
counting for the remaining 28% of the overall lending volume. 
Climate action remained high on the agenda. 22.4% of oper-
ations are expected to have a significant positive climate im-
pact.  However,  this  level  represented  a  reduction  compared 
to a share of more than 30% for climate action operations in 
2016. This resulted mainly from the increased focus on private 
sector lending, in line with Economic Resilience Initiative (ERI) 
priorities in 2017. 

Figure 23: Loans signed in 2017 (Breakdown by country, %)

Palestine

Jordan

2%

6%

Morocco

26%

Lebanon

20%

  2015 

21%

Tunisia

  2016 

25%

Egypt

EUR 29.1m

  2017 

  2018

53

EUR 29.1m

  2015 

  2016 

  2017 

  2018

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
 
 
Economic Resilience Initiative

A s  part  of  the  EU  response  to  the  challenges  posed 

by forced displacement and irregular migration, the 
EIB has rolled out the Economic Resilience Initiative 
(ERI). We have developed the initiative in coopera-
tion with the European Commission and Member States, fol-
lowing  a  request  by  the  European  Council.  The  initiative  can 
rapidly mobilise additional financing in support of growth, vi-
tal infrastructure and social cohesion in the Southern Neigh-
bourhood and Western Balkans regions.

The ERI dramatically increases the support we provide. We are 
using the initiative to target projects that particularly enhance 
economic  resilience,  including  many  critical  infrastructure 
projects  that  are  expected  to  require  blending  with  grants 
and  technical  assistance  for  project  preparation  and  imple-
mentation. This responds to the need to scale up investments 
in  infrastructure  that  is  facing  or  risking  unsustainable  pres-
sures from demographic and climate changes. Finally, the ERI 

creates an opportunity to support private sector investments 
with a higher risk profile – and higher economic and social re-
turns – than would otherwise be the case, through impact fi-
nance in the Southern Neighbourhood region.

By  the  end  of  2017,  the  EIB  had  already  approved  lending 
of  EUR  1.5bn  under  the  ERI.  These  operations  include  the 
Programme  National  Assainissement  2,  which  will  provide 
long-term funding for municipalities across Morocco to up-
grade  and  expand  the  country’s  wastewater  infrastructure 
capacity, improve services for some 1.2 million people and 
create  13 500  person-years  of  employment.  The  Université 
Euro-Méditerranéenne  de  Fès  project  will  be  able  to  offer 
European diplomas for Moroccans and other students from 
the region, paving the way for better educational standards, 
development of skills and better labour market integration 
of graduates. Another project will focus on overcoming bar-
riers to investment by small businesses in Lebanon. 

54

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017By the end of 2017, the ERI was backed by EUR 99m in donor 
contributions  from  seven  EU  Member  States  (Croatia,  Italy, 
Lithuania, Luxembourg, Poland, Slovakia, and Slovenia).

As part of the initiative, the EIB approved EUR 90m of fund-
ing from its own resources in 2017 to be used for technical 

assistance and advisory services in support of ERI projects, 
especially more complex infrastructure projects and riskier 
private sector projects. There is significant demand for the 
funding, which is expected to expedite the preparation and 
implementation of resilience projects.

Project highlights

•  Université Euro-Méditerranéenne de Fès in Morocco 
(UEMF). Construction of an eco-campus, with research 
facilities  and  equipment,  and  teaching,  student,  and 
sport facilities at the UEMF. The project is supported by 
an EIB loan of EUR 70m signed in July 2017. The project 
will also benefit from a grant from the EU’s Neighbour-
hood Investment Facility (NIF) of EUR 13m.

•  Arab  Bank  Regional  Facility  and  Private  Sector  Sup-
port Lebanon. These two operations under the ERI pro-
vide  EUR  565m10  to  Jordan,  Lebanon,  Palestine,  Egypt 
and Morocco in support of local SMEs. SMEs can obtain 
credit lines set up with five commercial banks. Support-
ing local entrepreneurship is particularly important in 

a region that has been hit hard by the migration crisis. 
The credit lines are expected to be implemented over 
the next two years and will support around 38 500 FTE 
jobs across all key sectors of the economy.

• 

Food and Drinks Business Development Morocco. In 
July 2017, the Bank signed a EUR 35m loan to support a 
manufacturing company in Morocco – the first project 
signed with a private sector counterpart in the country. 
The  loan  will  finance  the  promoter’s  investment  pro-
gramme. It will contribute to Morocco’s integration into 
international markets and is expected to have a strong 
job creation impact.

10  Arab Bank Regional Facility: EUR 300m signed in December 2017; Lebanon Private Sector Support: EUR 265m signed in June 2017.

55

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODEC Blending

T he EIB continued to seek complementary grant fund-

ing  for  its  lending  operations,  including  by  actively 
blending its loans with support from the EU-funded 
Neighbourhood Investment Facility (NIF).

Four Delegation Agreements in the Neighbourhood Region 
(Eastern and Southern) were signed with a total NIF contri-
bution of about EUR 63.4m. 

In 2017, the Bank signed a NIF contribution for the EU Trade 
and Competitiveness Programme, covering Morocco, Tuni-
sia, Egypt and Jordan, with a total amount of EUR 50m. The 
programme’s  objective  is  to  improve  the  competitiveness 
of selected sectors through their value chains and the pros-
pects for trade. It also envisages building the capacity of fi-
nancial intermediaries and final beneficiaries to support the 
implementation  of  the  project,  and  will  provide  wider  ac-
cess  to  finance  for  SMEs  while  enabling  local  intermediary 
banks to take more risk and reach out to targeted segments 
of the economy.

In  addition,  a  range  of  bilateral  projects  have  been  ap-
proved by the NIP governing bodies, including the Kitchen-
er Drain project in Egypt and Université Euro-Méditerranée-
nne de Fès (UEMF), Morocco (see page 55).

The  Kitchener  project  is  the  first  phase  of  a  larger  invest-
ment programme aimed at depolluting the Kitchener Drain 
through  investments  in:  (i)  wastewater  and  sanitation;  (ii) 
solid waste; and (iii) drain infrastructure rehabilitation. It is 
the first project of its kind in Egypt to adopt an “integrated” 
approach to tackling several sources of pollution simultane-
ously  to  achieve  maximum  impact  and  synergies.  The  EIB 
and the EBRD, supported by EU funding of almost EUR 47m, 
aim to improve surface and ground water quality, as well as 
soil quality. The project will also improve public health, em-
ployment and general living conditions.

The  EIB  is  providing  loan  finance  to  the  UEMF  in  order  to 
construct an ecologically friendly campus at Fes with high-
level education programmes and research. The project will 
also  contribute  to  mitigating  climate  change,  thanks  to  its 
design,  which  puts  great  emphasis  on  energy  efficiency 
and  the  use  of  renewable  energy.  The  EU  grant  alongside 
the EIB loan will finance the construction of the campus and 
the purchase of the necessary equipment. The new site will 
offer  the  students  education  of  a  high  standard  and  will, 
through  a  scholarship  system,  enable  high-achieving  stu-
dents with low incomes to attend the university.

56

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Expected results from EIB lending  
in the Southern Neighbourhood

Credit lines and equity funds for private sector development

Expected results  –  support for lending to SMEs and mid-caps

Number of projects

Total loans (EUR m)

Total loans #

Average loan size (EUR)

Average loan tenor (years)

Jobs sustained in beneficiary firms

Expected results – lending through microfinance institutions

Value of loans to microenterprises

Number of loans to microenterprises

Average loan size (EUR)

Women as % of final beneficiaries

Jobs sustained in microenterprises

Expected results – supporting job creation through equity funds

Total size of supported funds

Average leverage ratio

Number of investee companies supported 

Average size of investment

Net jobs created in investee companies

Expected results – Industry and R&D

Employment during implementation  
(temporary jobs in person-years)

Employment during operation (permanent jobs)

9

1 580

3 690

428 000

5.9

122 000

EUR 3.38m

938

3 600

33%

938

EUR 558m

12.8

31

EUR 11m

7 870

1 280

1 890

Total jobs sustained  
in supported SMEs,  
microenterprises  
and mid-cap  
companies: 123 000

57

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODDeveloping social and economic infrastructure

Expected results – Transport

Road networks: 

Length of road lanes built or upgraded

Additional vehicles benefiting, per day

Time savings, per year

Vehicle operating cost savings, per year 

Road fatalities avoided, per year

Public transport:

New or upgraded urban transport routes  
(bus/tram/metro)

New or upgraded stations or stops

Vehicles or rolling stock purchased

Journeys on new or upgraded public transport,  
per year

Time savings, per year

Additional rail cargo carried, per year

396 km

12 600

2.48 million hours

EUR 0.32m

3

68 km

36

53

152 million

32 million hours

300 000 tonnes

2.48 million hours  
saved per year due  
to better road networks

152 million journeys  
per year on improved  
public transport

Expected results – Energy

Electricity generation:

Generation capacity from renewables

Electricity production, per year

Households potentially served by electricity produced

200 MW

797 GWh

260 000

260 000 households 
potentially served  
by clean electricity

58

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Expected results – Water and sanitation

Sanitation

New/upgraded wastewater treatment capacity 
(person-eq.)

New/upgraded sewer/storm pipes

New/upgraded domestic sanitation connections

Population benefiting from improved sanitation 
services

Expected results – Education

Education

Students taking advantage of newly created  
or rehabilitated higher education facilities

Additional students enrolled in first year after 
completion

400 000

225 km

20 000

1.2 million

1.2 million people  
benefiting from  
improved sanitation

6 600

5 620

6 600 new student 
places in higher 
education

Expected direct employment impacts – Employment across all infrastructure  
and industry/R&D projects

Employment during implementation  
(temporary jobs in person-years)

Employment during operation (permanent jobs)

53 800

3 750

59

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODLooking ahead

60

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017FTF & EIB objectives  
for the Southern Neighbourhood

FTF objectives

Looking forward, we will continue to seek ways to maxim-
ise the impact of FTF operations. By combining EIB and FTF 
resources – technical, as well as financial – the FTF will sup-
port  partner  countries  in  promoting  investment  in  socio-
economic  infrastructure  and  private  sector  development, 
thus creating jobs and economic growth.

Our long-established presence in the Southern Neighbour-
hood region, with a track record of supporting investment 
in  public  infrastructure  and  private  sector  development, 
can bring added value at this time of economic challenges. 
The  FTF  will  continue  to  provide  a  vehicle  through  which 
the EIB and the donor community can cooperate effectively 
for the benefit of the region.

With  the  continued  support  of  the  FTF  Donors  –  coupled 
with  the  active  cooperation  of  the  Bank  with  international 
financial  institutions  –  the  EIB  will  continue  supporting  EU 
development  goals  in  pursuit  of  the  ambitious  objectives 
set and actively contributing to strengthening local econo-
mies and development in the Mediterranean region.

The  EIB  looks  forward  to  continuing  its  close  cooperation 
with both the FEMIP contributors and its target countries to 
ensure  the  quality  and  sustainability  of  investments  in  the 
Southern  Neighbourhood.  As,  to  date,  over  three  quarters 
of the paid-in contributions have been approved and allo-
cated  to  operations,  the  FTF  will  seek  to  strengthen  part-
nerships.  To  this  effect,  as  already  mentioned  during  the 
October 2017 FTF Assembly of Donors, the FTF has evolved 
into  a  sub-compartment  of  the  Economic  Resilience  Initia-
tive Trust Fund (the “ERI Fund” or “ERIF”) dedicated to tech-
nical  assistance  and  advisory  services.  Therefore,  the  re-
maining unallocated FTF resources will complement the EIB 
own resources allocated to that sub-compartment.  

EIB lending objectives

In the context of the migration crisis, the EIB has been called 
upon by the European Council to further scale up its support 

for  the  EU’s  Southern  Neighbourhood  and  the  Western  Bal-
kans. In response, the Bank has developed, together with the 
EU, an Economic Resilience Initiative (ERI) in order to mobilise 
investment to support economic growth and sustainable de-
velopment in these regions. In particular, the ERI has the am-
bitious  objective  of  providing  additional  EIB  financing  in  the 
order of EUR 4.5bn in the Southern Neighbourhood over the 
period 2016-2020. Therefore, the focus of the Bank’s activities 
in the Mediterranean region during 2018 and beyond will be 
on delivering on the ambitious objectives of the ERI as well as 
on contributing to the EU’s External Investment Plan (EIP). 

In  this  context,  the  Bank  expects  to  continue  its  increased 
focus  on  private  sector  development  in  order  to  foster  job 
creation  and  economic  growth.  This  will  include  a  further 
strengthening of the Bank’s support for local SMEs in the re-
gion as well as continued efforts to expand corporate lending. 
Moreover, the EIB will also accelerate its financing activities in 
favour of private equity and microfinance clients so as to fur-
ther  diversify  its  support  for  the  private  sector  and  achieve 
more impact.

Another focus of the Bank’s activities in the region will be on 
reinforcing  the  economic  enabling  environment  to  stimulate 
growth  by  providing  continued  support  for  social  and  eco-
nomic  infrastructure.  Specifically,  in  the  public  sector,  the 
Bank expects to finance transport, water and wastewater, en-
ergy  efficiency,  urban  development  and  renewable  energy 
projects.  The  EIB  will  continue  to  support  projects  in  these 
sectors throughout the region but will place a particular focus 
on Jordan and Lebanon as the countries most affected by the 
crisis in neighbouring Syria. 

Moreover,  as  part  of  the  ERI,  the  EIB  will  concentrate  its  en-
gagement  on  projects  in  remoter  regions  and  projects  that 
make  a  strong  contribution  to  promoting  youth  inclusion, 
gender equality, job creation, and social impact. A special fo-
cus will also be placed on supporting home and host commu-
nities  affected  by  large  migration  flows.  Finally,  investments 
that contribute to climate action (both adaptation and mitiga-
tion) will also continue to be a priority objective.

61

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODAnnex 1. Approved FTF operations as at end-2017

No Country

Title

Completed operations 

Approved 
Budget  
in EUR 

Signed Amount
in EUR

Assistance 
Type

17 842 690

16 332 200

Sector

Finance

Finance

Finance

Finance

Transport

Energy

Energy

SME

Environment/ 
Climate Change

Finance

Energy

Finance

Finance

Improving efficiency of workers' remittances

Financial sector support programmes - METAC I and II - 1st Phase

2nd Phase

Examining the access of small firms to sustainable forms of external finance

Examining the promotion of long-term private saving

Logistic needs in the MPCs: potential for the development of a logistic platform network

Clean Development Mechanism (CDM) - Project identification in FEMIP countries

Financial mechanism for the development of renewable energy and energy efficiency

Analysis of tourism strategies and policies in FEMIP countries

Study programme with Blue Plan

Review of existing trade finance services for Euromed trade

Potential for biofuel production in FEMIP countries

A review of the economic and social impact of microfinance

TA related to the Tunisian Seed Capital Fund

Strategies for the regeneration of Medinas in the Mediterranean area

Urban Development

Private-type management and operation of the public irrigation systems in FEMIP coun-
tries: a test case in Morocco

Identification and removal of obstacles to the extended use of wastewater in agriculture

Adaptation of financial products to workers' remittances atTunisian Bank Union

Mediterranean Business Development Initiative MBDI

Jordan Highway Master Plan

Study programme with the Blue Plan II

Technical Assistance Business Angels

Mediterranean Solar Plan

Incubators Network (RMIE)

Urban operation in Medina/Meknes

Technical assistance to Palestine ICT Incubator

Broadband access for FEMIP countries

Maritime highways

Medinas 2030 Investment Programme

Competitiveness and employment challenges in Tunisia

Mobilizing the Potential of Gulf Countries' Sovereign Wealth Funds for the Mediterra-
nean Partner Countries

Mobile financial services in Mediterranean Partner Countries

Environment  
and Water

Environment and 
Water

Finance

SME

Transport

Energy/Tourism

SME

Energy

SME

Urban Development

RDI

RDI

Transport

Urban Development

Multi-sector 

Finance 

Finance

Project Preparation and Implementation Study in the Framework of the “Integrated and 
Sustainable Community Development Programme (ISCDP)

Urban Development

Projects Identification Study under the Mediterranean Urban Projects Finance Initiative

Urban Development

Seed Capital Fund

PPP legal frameworks in the FEMIP region

FTFO - EPEC services (2011) for PPP in MPCs

Energy efficiency and renewable energy project preparation programme in urban areas 
of the MPCs

Potential of Mesofinance for Job Creation in Mediterranean Partner Countries

Finance

Multi-sector 

Energy

Finance

Study on enabling SME access to growth capital markets via dedicated SME Exchange 
markets (SMEs initiative)

Finance and MSMEs

Support for the dissemination of the FEMIP Trust Fund-funded activities in the FEMIP 
region

Multi-sector 

Support for the pre start-up of the Euro-Med Development Centre (EMDC) for MSMEs

Finance and MSMEs

Cooperation Agreement between EIB and FEMISE

Evaluating Renewable Energy Manufacturing Potential in the Mediterranean Partner 
Countries

Feasibility study on diaspora and start-up programme PACEIM (Programme d’Aide à la 
Création d’Entreprises Innovantes en Méditerranée)

Study on the Employment Impact of European Investment Bank (EIB) Infrastructure 
Investments in Mediterranean Partner Countries (MPCs)

Enhancing the Impact of Private Sector Development on Democratic Transition in the 
Mediterranean Partner Countries

Multi-sector 

Energy

Human Capital

Multi-sector 

SME

Study

TA

Study

Study

Study

Study

Study

Study

Study

Study

Study

Study

TA

Study

TA

Study

TA

Study

TA

TA

TA

Study

TA

Study

TA

Study

Study

TA

TA

Study

Study

Study

Study

Risk Capital

Study

TA

Study

Study 

Study

TA

Studies

Study

198 000

500 000

500 000

195 000

180 000

597 390

195 000

189 000

200 000

180 000

80 000

200 000

70 000 

125 000 

185 000 

1 000 000 

200 000 

489 500 

200 000 

197 850 

500 000

500 000

195 000 

183 418 

597 385 

195 000 

189 054 

200 000 

180 000 

80 000 

199 000 

70 000 

125 000 

160 950 

581 359 

199 999 

489 500 

198 980 

2 093 300 

2 093 300 

850 000 

160 000 

350 000 

300 000 

400 000 

194 600 

500 000 

165 000 

400 000 

185 000 

190 000 

160 000 

199 900 

850 000 

159 654 

189 163 

284 724 

395 000 

194 600 

499 000 

157 500 

480 000 

177 228 

190 000 

159 000 

138 000 

250 000 

2 000 000 

250 000 

1 775 000 

675 000 

80 000 

167 265 

189 000 

25 000 

35 000 

250 000 

400 000 

52 925 

18 075 

750 000 

80 000 

200 000 

199 000 

25 000 

35 000 

250 000 

400 000 

71 000 

19 000 

37 000 

245 000 

150 000 

36 400 

Upstream Study

245 000 

148 872 

237 500 

237 500 

500 000 

Study

Study

Feasibility Study

TA

LOGISMED  Euromed Logistics Platforms: Lot 2.A (Tunisia)

Lot 2 B (Morocco)

Space for MED with the European Space Agency

Transport

1 000 000

Multi-sector 

500 000 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

Regional

Regional

Algeria

Morocco

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Tunisia

Regional

Morocco

Regional

Tunisia

Regional

Jordan

Regional

Tunisia

Regional

Morocco

Morocco

Palestine

Regional

Regional

Regional

Tunisia

Regional

Regional

Egypt

Regional

Tunisia

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

Regional

62

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017400 000

425 000

760 000

35 000

2 800 000

1 100 000

100 000

40 000

40 000

180 000

40 000

TA

TA

Capacity Building

TA

Study

Risk Capital  
(Investment Loan/  
Local Currency)

TA (PP - Project 
Preparation)

Risk Capital  
(Investment Loan)

TA (PP - Project 
Preparation)

No Country

Title

Sector

Approved 
Budget  
in EUR 

Signed Amount
in EUR

Assistance 
Type

Engaged operations (partially disbursed)

22 165 000

20 752 772

48

49

50

51

52

Jordan

Regional

Regional

Palestine 

Regional

53

Regional

54

55

56

Tunisia

Regional

Tunisia

Technical assistance in support of the development of the Euro-Mediterranean logistic 
area of Amman (Madounah) in the HASHEMITE KINGDOM OF JORDAN

Dissemination window for FTF studies

Multipartner networking and learning centre (contribution to Marseille Centre for Medi-
terranean Integration(MCMI))

Middle East Venture Capital Fund

FEMIP Internship Programme 

PPP action in the FEMIP Region: Action I (a)

Action I (b)

Action II

Action III

Capacity building in the Tunisian microfinance sector (MicroMED)

FEMIP Secondment Programme (phase I+II)

Reinforcing private equity regulation and institutional expertise in Tunisia

Strengthening cooperation with EU bilateral agencies and public banks for joint initia-
tives in the Mediterranean partner countries: (1) Elaboration of joint studies and techni-
cal assistance operations

Transport 

Multi-sector 

Multi-sector 

RDI

Human Capital

250 000 

450 000 

500 000 

5 000 000 

1 990 000

230 000

450 000

500 000

TA

Seminars

TA

5 000 000

Risk Capital  
(Investment Loan)

1 990 000

Capacity Building

Multi-sector 

1 700 000 

Finance

Human Capital

Finance

2 800 000

1 100 000

175 000

57

Regional

(2) Supporting joint capacity building activities in the region

Multi-sector

300 000

(3) Targeted secondments

(4) Designing and implementation of joint dissemination events

58

Tunisia

59

60

Regional

Regional

61

Regional

62

Palestine

63

64

Lebanon

Regional

65

Egypt

Jordan

Tunisia

Palestine

Regional 

Tunisia

Lebanon

66

67

68

69

70

71

72

73

74

75

76

77

Taysir - Subordinated loan to a greenfield MFI in Tunisia (under Impact Investment 
Envelope)

Finance/ Private Sector

1 000 000

1 000 000

Technical Advisory to support seed accelerators in the FEMIP region

Finance and MSMEs

1 200 000

1 188 000

COOPMED - Participation in a debt fund supporting microfinance and social economy in 
the Mediterranean region

Increasing the impact of the Southern Neighbourhood Advisory Programme for the 
Transport Sector (“SNAP-T”):

Étude de faisabilité d’une Liaison Permanente entre l’Autoroute A4 et la ville de Bizerte

Étude de la Liaison Permanente entre l’Autoroute A4 et la ville de Bizerte : Supervision 
indépendante de l’ouvrage principal

Assistance Technique pour l'extension et l'amélioration fonctionnelle de l'Aéroport Inter-
national de Tunis Carthage (AITC)

Finance and MSMEs

2 000 000 

2 000 000 

Transport

2 000 000

320.000 

75 000 

265 700 

Preparation of the Power Plant Facilities for the Gaza Central Desalination Plant  
(implementation of the Water Supply to Gaza, Seawater Desalination Project (Phase A) 
(extension of service contract TA2012033 PS F10))

Renewable Energy 
(Climate Action)

Technical assistance in support of the South Lebanon Water and Wastewater Project 
(extension of TA2010047 LB F10)

Water (Climate Action)

National Appropriate Mitigation Actions Potential in the Mediterranean Partner  
Countries - NAMA Study

Environment  
(Climate Action)

600 000

595 760 

150 000 

200 000 

150 000 

288 562 

TA (PP - Project 
Preparation)

TA (Project 
Implementation)

TA

Feasibility Study for Alexandria West Wastewater Treatment Plant Extension

Assistance in tendering a Project Implementation Consultant-PIC for Alexandria West 
Wastewater Treatment Plant Extension and Upgrade

Wastewater

400 000

299 750 

Feasibility Study

50 000     

TA

TA (Project Implemen-
tation -PI)

350 000

500 000 

Regional

Enhancing the Impact of the PPP Project Preparation Facility (the "MED 5P initiative")

Multi-sector 

Feasibility Study for Deir Alla and Al-Karameh Water Supply and Sanitation project

Water

450 000 

Transport 

2 100 000

2 052 100

Technical Assistance Programme in support of the DGPC (Direction Générale de Ponts 
et Chaussées) for EIB financed projects Modernisation Routière I – II and Voiries 
Prioritaires V

Technical Assistance for the implementation of the electricity network upgrade project: 
project management support to PENRA Phase 2

The EIB-EBRD-WB Enterprise Surveys in the EU Eastern and Southern Neighbourhood 
and the Western Balkans - Southern Neighbourhood section

Etude de faisabilité pour la dépollution et la réhabilitation du bassin minier de Gafsa - 
Partie A

Water/ Wastewater

Feasibility Study for Upgrade and Expansion for Saida Wastewater Collection and Treat-
ment Systems

Electricity

Private Sector

Water/ Wastewater

Renewable Energy & 
Energy Efficiency

Renewable Energy & 
Energy Efficiency

Regional 

Green for Growth Fund, SICAV- SIF

Regional 

Green for Growth Fund, SICAV- SIF

Regional 

Morocco

Jordan

Actions supporting the financial inclusion of more vulnerable people in the Southern 
Neighbourhood of the EU

Finance/Private Sector

BMCE Ligne Bleue

Bani Kenaneh water supply and sanitation project

Water

Water Supply &  
Sanitation

209 810

220 000

700 000

498 000

330 000

4 000 000

500 000

2 000 000

1 000 000

500 0000

TA

TA

TA

Study

TA

TA

Risk Capital

TA

TA

TA

Study

63

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 
 
 
 
Annex 2. Operations approved in 2017

Grant operation name

Grant type

Country

Sector

Deir Alla and Al-Karameh Water Supply and Sanitation Project

Preparation of an investment programme for sustainable management of the GAFSA  
mining basin

Actions supporting the financial inclusion of more vulnerable people in the Southern  
Neighbourhood of the EU

Green for Growth Fund SICAV-SIF (1) 

Green for Growth Fund SICAV-SIF (2)

EIB-EBRD-WB Enterprise Surveys in the EU Eastern and Southern Neighbourhood and  
the Western Balkans - Southern Neighbourhood section

BMCE Ligne Bleue

Bani Kenaneh Water Supply and Sanitation Project

Technical assistance for the implementation of the Electricity Network Upgrade Project:  
Project Management Support to PENRA Phase 2

Total

Study

TA

TA

Risk Capital

TA

Study

TA

Study

TA

Jordan

Tunisia

Regional

Regional

Regional

Regional

Morocco

Jordan

Environment

Environment

SMEs and Private  
sector development

Environment

Environment

SMEs and Private  
sector development

Environment

Environment

Palestine

Infrastructure

Net amount  
approved  
in EUR 12

Date of AoD 
approval

500 000

498 000

27/01/2017

27/01/2017

2 000 000

10/03/2017

4 000 000

500 000

700 000

1 000 000

500 000

220 000

9 918 000

10/03/2017

10/03/2017

10/03/2017

19/05/2017

11/07/2017

11/07/2017

12 

Includes part cancellation and increase of amount approved.

64

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Annex 3. Abridged Financial Statements

BALANCE SHEET
As at 31 December 2017
(in EUR ’000)

ASSETS

Cash and cash equivalents

Venture capital investments

Loans and receivables

Other assets

Total assets

LIABILITIES AND CONTRIBUTORS’ RESOURCES

LIABILITIES

Amounts owed to third parties

Third party contributions

Other liabilities

Total liabilities

CONTRIBUTORS’ RESOURCES

Contributions

Retained earnings

Total contributors’ resources

Total liabilities and contributors’ resources

31.12.2017

31.12.2016

43 377

3 266

1 868

1 195

49 706

629

10 192

8

10 829

61 354

-22 477

38 877

49 706

44 203

3 373

-

1 235

48 811

236

12 282

8

12 526

54 290

-18 005

36 285

48 811

65

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODFrom 01.01.2017 
to 31.12.2017

From 01.01.2016 
to 31.12.2016

67

-

-

-

67

-3 054

-754

-155

-568

-8

-4 539

-4 472

6

314

104

75

499

-1 461

-

-85

-

-8

-1 554

-1 055

INCOME STATEMENT
For the year ended 31 December 2017
(in EUR ’000)

Interest and similar income

Unrealised gain on venture capital investments

Net foreign exchange gain

Other income

Total operating income

Projects financed

Unrealised loss on venture capital investments

General administrative expenses

Net foreign exchange loss

Other expenses

Total operating expenses

Net loss for the financial year

66

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 201767

2017 ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOODOperational Contacts 

Christoph Kuhn
Director of Mandate Management Department 
3 +352 4379 87324
U   c.kuhn@eib.org 

Flavia Palanza 
Director of Neighbouring Countries Department 
3 +352 4379 84816
U   f.palanza@eib.org 

Jesper Persson 
Head of Trust Funds and Blending Division
3 +352 4379 86665
U   j.persson@eib.org 

Dionysios Kaskarelis 
Head of Trust Funds and Financing Partnerships Unit 
3 +352 4379 86108 
U   d.kaskarelis@eib.org 

68

ANNUAL REPORT – FEMIP TRUST FUND: SERVING THE SOUTHERN NEIGHBOURHOOD 2017Information Desk
3 +352 4379-22000
U   info@eib.org 

European Investment Bank
98 -100, boulevard Konrad Adenauer
L-2950 Luxembourg
3 +352 4379-1
www.eib.org/ftf – U info@eib.org

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print:
QH-AH-18-001-EN-C
eBook: QH-AH-18-001-EN-E
pdf:

ISBN 978-92-861-4032-7
ISBN 978-92-861-3791-4
QH-AH-18-001-EN-N ISBN 978-92-861-3790-7

ISSN 1830-3838
ISSN 2363-3999
ISSN 2363-3999

doi:10.2867/255866
doi:10.2867/092582
doi:10.2867/031001

FEMIP TRUST FUND
SERVING THE SOUTHERN 
NEIGHBOURHOOD 
ANNUAL REPORT 

20
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