EUR 42.5 mio lent in ACP in first 4 months

The European Investment Bank's (EIB's) loans in the African, Caribbean and Pacific (ACP) region totalled EUR 42.5 million for the first 4 months of 2002, all from risk capital resources from the European Development Fund 
The following lending operations were signed between 1st January and 30th April 2002.

• Cameroon: EUR 12 million from risk capital resources to Camrail s.a. for the upgrading of the main line, between Douala, on the coast, and Ngaoundéré, inland, via Yaoundé. The upgrading will allow for a better, safer and more commercial use of the line, and also support further inland connections to Chad and the Central African Republic. The investment contributes to preparations to privatise of Cameroon's railway system.
• Gabon: EUR 22 million from risk capital resources for part financing of Gabon's participation in the SAT 3/WASC/SAFE fibre-optic sub-marine telephone cable.
• Mauritania: EUR 4 million of risk capital resources to the Grands Moulins de Mauretanie for the construction of a flourmill and feedstock plant for processing domestic and imported cereals. The project will promote domestic production and greater price stability through increased storage capacities. EUR 2.5 million of risk capital resources to Socité d'assainissement, de travaux, de transport et de maintenance (ATTM), the public sector civil engineering company, for the purchase of road building and maintenance equipment. 
• Mauritius: EUR 2 million from risk capital resources to the Central Electricity Board of Mauritus for the extension of the thermal power station and installation of a new diesel turbo-generator at Port Mathurin on the island Rodrigues, 600 km east of Mauritius. The scheme will meet growing demand and better assure electricity generation, an essential requirement for economic development. 

In 2001 the EIB's loans to the ACP countries, OCT (Overseas Countries and Territories) and South Africa, totalled EUR 670 million (EUR 544m in 2000); EUR 338 million from own resources (EUR 326m) and EUR 332 million from the EDF (EUR 218m).

Nearly 80% of EIB's lending to ACPs, OCTs and South Africa went to the private sector, the commercially run public sector, or support activities such as in power and water infrastructure. The increased emphasis by the EIB on private sector investments is a key focus of the forthcoming Investment Facility (IF) of the Cotonou agreement. The IF foresees the EIB providing loans and equity financing for a total of EUR 3.9 billion to commercially viable businesses during 2002 2006. The Cotonou agreement replaces the Lomé IV convention.

The EIB, established in 1958 by the Treaty of Rome, finances capital investment projects which further the European Union (EU) policy objectives. It also participates in the implementation of the EU's co-operation policy towards third countries that have co-operation or association agreements with the Union. Currently, the Bank's financing in Africa, the Caribbean and the Pacific (ACP) is carried out under the provisions of the Fourth Lomé Convention, which was concluded in 1989 for a period of 10 years and is accompanied by two Financial Protocols. Under the second financial protocol, the total financial aid available amounts to EUR 14.6 billion, of which EUR 12 billion is grant aid from the EU member states, EUR 1 billion is managed by the EIB as risk capital finance, and up to EUR 1.6 billion is in the form of loans from the EIB's own resources. The EIB is at the moment working in close collaboration with the EU Member States and the European Commission to finalise criteria and operational guidelines of the newly created Investment Facility, set up by the New ACP-EU Partnership Agreement, signed in Cotonou in June 2000, which will replace the Lomé Convention. Under the Cotonou agreement the total financial aid available amounts to EUR 15.2 billion for 2002-2006, of which EUR 11.3 billion is grant aid from the EU member states, EUR 2.2 billion is managed by the EIB under the Investment Facility, replacing risk capital finance, and up to EUR 1.7 billion is in the form of loans from the EIB's own resources. The Investment Facility is a revolving facility (loan amortizations will be invested in new operations), aiming at supporting technically, environmentally, financially and economically sound projects in the private or the commercially-run public sector.
The Republic of South Africa became an associate member of the Lomé Convention in 1997. The Bank has a separate lending mandate from the EU's Member States to provide long term financing for RSA totalling EUR 825 million over the period 2000-2006.