GLOBAL EIB LOANS FOR SMEs

W.U.S.
WORLD UNION OF SMALL AND MEDIUM ENTERPRISES

under foundation
Project Financing of Small and Medium Enterprises

Global South Lending of
EIB – European Investment Bank
by Dr. Norbert W. Knoll-Dornhoff, Secy.-General (incumbent)
Budapest, 12th May 2009
I. Introduction
1. The European Investment Bank as International Financial Institution (IFI)
In the five decades from foundation, the European Investment Bank (EIB) has
become one of the most powerful International Financial Institutions in the world.
Operating on behalf the EU Governments who are the owners, the EIB lends about
45 billion EURO a year for projects helping development and cohesion of the
European Union. In the 1960's the EIB started to finance projects in Africa and today
about 10% of the EIB's financing is outside Europe, in Countries from China to Brazil.
This lending covers a wide spectrum of project investments including energy, water,
communication, Industry, Small and Medium Enterprises (SMEs) and financial
intermediaries.
2. Global South Lending
In recent decades, the EIB has become an important player among International
Financial Institutions (IFIs) lending to Countries in the Global South. The EIB is
increasingly involved in lending operations outside the European Union, in particular
in the Private Sector. Of all IFI lending in Latin America from 1979 to 2005, the EIB's
Private Sector Support ranked second after the World Bank. It was ranked the fourth
largest IFI Private Sector Lender in Asia.
3. Contents and aims of the Report
This Report contains the following information:
3.1. Contents
a) EIB’s SMEs Investment Support

b) Lending in Asia and Latin America
c) Overlook Financial Instruments offered by EIB
d) Global Loan Facility
e) European Investment Fund – Venture Capital and Guarantees
f) Global Loans and Guarantees for SME within EIB’s South Lending
g) EIB Authorised Financial Institutions for South Lending programmes
3.2 Conclusions and Recommendations for actions
a) Conclusions
b) Recommendations for actions
• WASME Headquarters
• Permanent Mission WASME to UNIDO
3.3 ANNEX
„A” - Global Loans for SME 2000 – 2007 under appraisal, approved, signed.
“B” - EIB Funding - breakdown by regions and countries
“C” - Cotonou Agreement
“D” – EIB authorised Financial Institutions
II. EIB’s SMEs Investment Support
1. Supporting investment by Small and Medium sized Enterprises (SMEs) is a

key focus for the EIB’s operational activities.
The EIB Group's range of financing instruments meet the many needs of SMEs. The
Group supports SME investment indirectly through credit arrangements with local
intermediary banks and financing institutions. Requests for financing under these
credit lines should be addressed directly to the financial intermediaries with whom the
EIB has concluded such agreements.
The most widely available EIB Group facilities to support SMEs are:
• EIB lines of credit for SMEs arranged with local banks

• EIF venture capital activities
• EIF SME portfolio guarantees
• JEREMIE - Joint European Resources for Micro to Medium Enterprises
2. The EIB - a development partner for SMEs outside the European Union
a) The European Investment Bank is the European Union’s long term financing arm.
While most of its operations are in the EU, it also contributes to the EU’s
development aid and co-operation policies in other regions and countries. The
Bank is project-oriented, financing mainly the fixed-asset components of capital
investments. Such projects have to be technically sound, financially viable, show
an acceptable economic return and comply with environmental protection,
procurement regulations and prevailing social legislation and norms. These
criteria apply to all projects financed by the Bank, both within and outside the EU.
The EIB has been a development partner, supporting projects in developing and
emerging countries, notably in the African, Caribbean and Pacific states (ACPs), for
more than 40 years. Over these years, it has acquired an extensive knowledge of the
countries in which it works, their investment climate and the reality of operating in
them.
b) In particular, the Bank supports EU co-operation policies through:
• a wide range of financial products (loans, equity, guarantees or quasi-equity

instruments);
• financing sound and productive investments mainly in sectors that generate
revenues for the products and services provided.
The Bank’s expertise and comparative advantage lie, in particular, in fields such as
infrastructure, environment and Small and Medium-sized Enterprises (SMEs), where
it seeks to pass to project promoters its technical and economic know-how. Other
benefits of EIB operations in developing countries are related to the Bank offering
very long maturities at interest rates closely following its borrowing on capital markets
or an extended range of flexible risk bearing financial instruments. This offers
particular advantages to borrowers in countries suffering from scarcity of long-term
funding on the local capital markets and limited access to international capital
markets.
c) Poverty reduction
Sustained high levels of economic growth are essential for poverty reduction.
Meeting basic social needs through grant funding is indispensable to help
populations survive. However, economic growth is required to break the vicious circle
of poverty. The EIB, being a bank, provides the financial resources required to
promote the investments that will generate growth, thereby contributing to
sustainable poverty reduction and social improvement.
The above is reflected in the various mandates under which the Bank operates in
emerging and developing countries:
d) African, Caribbean and Pacific states:
Private sector development is considered as essential for economic growth. This is a

central objective of the Cotonou Partnership Agreement between the EU and the
ACP states, and under which the EIB operates in the region. The Cotonou
Agreement has established the Investment Facility (IF), a revolving fund aimed at
being financially sustainable whilst meeting the development objectives of the
Agreement. It is managed and operated by the EIB and is focused on supporting
private sector development.
“The prime objective of the IF is to further the Cotonou Agreement’s goal of reducing
poverty in the ACPs, by contributing to sustained economic growth, private sector
development, increased employment and improved access to productive resources.
It aims to operate in all sectors and to support investments by private enterprises and
commercially run public sector entities, including revenue-generating infrastructure
critical for the private sector” (Annex II, Chapter 1, Article 3, par. 1 of the Cotonou
Agreement).”
e) Asia and Latin America (ALA)
In line with the EU Council Decision on the ALA mandate EIB finance is targeted at
productive investment that contributes to economic development and growth and
supports projects of mutual interest for the recipient countries and the EU. Projects in
the ALA regions therefore involve a reciprocal flow of benefits between the EU and
one or more beneficiary countries.
III. Lending in Asia and Latin America
1. EIB lending in Asia and Latin America (ALA) started in 1993
and is governed by mandates from the European Union (EU). Under the current
mandate (ALA IV), covering the period the 2007-2013, the EIB is authorised to lend
up to EUR 3.8 billion for financing operations supporting the EU co-operation
strategies in these regions and complementing other EU development and co-
operation programmes and instruments in these regions.
The EUR 3.8 billion regional ceiling is broken down into indicative sub-ceilings of
EUR 2.8 billion for Latin America and EUR 1.0 billion for Asia. There are no amounts
allocated per country.
The countries currently eligible for EIB financing under the ALA IV mandate are:
2. Asia
Brunei, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam -
ASEAN Group Bangladesh, China, India, Mongolia, Nepal, Pakistan, South Korea,
Sri Lanka, Yemen.
3. Latin America
• Bolivia, Colombia, Ecuador, Peru, Venezuela - Andean Community

• Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua - Central American
Common Market
• Argentina, Brazil, Paraguay, Uruguay - MERCOSUR
• Chile, Mexico, Panama
4. Types of projects
The EIB can support viable public and private sector projects in
infrastructure, industry, ago-industry, mining and services. Special emphasis is given
to projects that contribute to environmental sustainability (including climate change
mitigation) and to the security of the EU energy supply. The other core sector of
activity will be to support the EU presence in those regions through Foreign Direct
Investment, transfer of technology and know-how. EIB loans are project-oriented and
linked to the financing of the fixed-asset components of an investment.
a) Projects with a total investment above EUR 25 million can be financed

either directly to a project promoter or indirectly through a government or
financial intermediary. Project promoters are required simply to provide the
Bank's Operations Directorate with a detailed description of their capital
investment together with the prospective financing arrangements. The total
investment of a typical project under the ALA III mandate is above EUR 40
million.
b) For smaller projects the EIB can lend through credit lines to selected
financial institutions, which then on-lend the funds mainly to small and
medium-sized enterprises (Smells). The financial institutions assess each
project, assume the credit risk and set the loan conditions for the final
beneficiary according to criteria agreed with the EIB. Interested promoters of
such projects should contact the banks and intermediaries directly.
c) EIB does not provide grants or subsidies for projects in Asia and Latin
America.
IV. Financial Instruments offered by EIB
1. Financing facilities (overlook)
The EIB offers various financial services to support projects, depending on eligibility
and project category.
1.1 Individual loans

Requests for individual loans can be addressed directly to the EIB, without
specific formalities, either to its headquarters in Luxembourg, or to one of its
external offices (EIB addresses).
1.2 Credit Lines (so-called EIB Global Loans)

Small and medium sized investments are supported via credit lines arranged
with national, regional and local banks. Financing requests should be
addressed directly to one of the FI.
1.3 Venture capital

Requests for venture capital should be addressed directly to an
intermediary. See www.eif.org to obtain the list.
2. Structured Finance Facility (SFF)
3. Credit Lines (so-called EIB Global Loans)
These credit lines are made available to banks, leasing companies or financial
institutions, which online the proceeds for small or medium-scale investment projects
meeting the Bank's criteria.
3.1 Who can benefit from the proceeds of these credit lines?
authorities or Smells. To qualify as an SME, a company must have fewer
than 250 employees; an annual turnover not exceeding EUR 50 million; and
an annual balance sheet total of up to EUR 43 million.
3.2 For what projects?

New capital investment projects worth up to EUR 25 million, undertaken by
SMEs or, in the case of small infrastructure projects, by local authorities.
3.3 What type of investment?

Corporate investment, especially by small and medium-sized industrial and
service companies, investment in advanced technologies, R&D projects,
rational use of energy, environmental protection, water supply and
sanitation projects, other infrastructure projects, particularly in regional
development areas.
3.4 For what amount?
A maximum of EUR 12.5 million and up to 50% of the investment costs.
3.5 Loan period, interest rates, repayment, currencies, guarantees,

provisions/fees:
Determined by the respective EIB partner bank. Maturities typically range
between 5 and 12 years. Lending decisions under these schemes remain
with the financial intermediaries.
3.6 How to apply?
Directly to one of the intermediary banks and financing institutions, which

operate on a national, regional or local level.
4. Conditions of EIB Lending
a) The EIB provides long-term loans, running from approximately 4 to 20 years

(possibly more), depending on the economic life of the assets to be financed.
As well as fixed interest rates, the Bank can offer revisable fixed and convertible
rates, allowing for the change of interest rate formula during the life of the loan at
predetermined dates or periods. EIB variable rate loans are usually available at a
spread below LIBOR, fixed for the full maturity of the loan at the time of each draw
down.
b) In addition to its usually advantageous lending rates, the EIB normally charges
neither commitment fees nor non-utilisation fees, but fees for a project’s appraisal
and required legal services may be applicable in certain cases.
The EIB seeks adequate security for its lending, such as that provided by a bank or
banking syndicate, a financial institution, or a large diversified parent company with a
good credit rating. In certain circumstances, the Bank may also include a risk margin
in the financing arrangements.
The EIB seeks assurances that no other creditor is in a more favourable position than
itself, taking into account the tenor and expected amount of the commitment.
The EIB monitors the project’s progress, and may carry out onsite inspection. It may
also prepare an end of project evaluation report.
c) How long does the loan procedure take approximately from application to
disbursement?
An EIB appraisal procedure can take any period of time between 6 weeks to 18
months depending on the project scope, the degree of complication of an operation,
and the efficiency of the appraisal process on the part of both the EIB and the project
promoter.
d) What are the EIB disbursement procedures?
An EIB loan facility, once approved by the Board of Directors, can be drawn down in
a number of instalments, according to the borrower's requirements. Typically, an EIB
facility is available for use over a two to three year period. Disbursements would be
usually at short notice, 10 to 15 days following each disbursement request.
The maturity, repayment terms and amortisation profile of each draw down
instalment can be chosen by the borrower at the time of disbursement, facilitating
active treasury management. Decisions on timing and choice of currencies,
maturities and interest rate formulae are kept open and decided upon at the time of
each disbursement request. As such, an EIB facility resembles an MTN programme
without set-up costs.
5. European Investment Fund – Venture Capital and Guarantees
Since 1997, the EIB has been deploying throughout the European Union a venture
capital facility designed to strengthen the equity base of high-technology SMEs and
those with strong growth potential.
Operations under this heading encompass financing for:
a) venture capital funds,

b) security packages for such funds,
c) conditional and subordinated loans.
They are being mounted in close co-operation with the banking and financial
communities in the Member States.
On 7 December 2000, the EIB and the European Investment Fund (EIF) signed a
Master Agreement strengthening the relations between the two institutions in general
and streamlining the type of operations offered by each institution (see EIB Group).
An important point of this agreement concerns the transfer of the management of all
existing EIB risk capital investments to the EIF.
The EIF will be the only point of contact for all venture capital and SME portfolio
guarantee transactions within the EIB group. Consult www.eif.org to find the list of
intermediaries.
6. Global Loans and Guarantees within EIB’s South Lending
6.1 Break down over all regions
EIB FINANCING
Region Current year Past 5 years

(in EUR) (in EUR)
European Union 9,774,129,601 198,426,374,651
Article 18 0 1,054,587,326
South-East 541,313,307 6,974,537,829
Europe
Africa, Caribbean, Mediterranean countries 0
Pacific countries
+ OCT
South Africa 25,000,000 635,000,000
Asia and Latin & 0 1,994,180,969
Central America
Commonwealth 0 85,000,000
of Independent
States
Total Amount 10,433,947,961 218,253,907,761
Last update : 15/05/2007
Source: EIB website: http://www.eib.europa.eu
6.2 Break down over ALA – Countries (Asia-, Latin,- Central,- America)
In the past six (6) years, including the current year 2007, the following ALA Countries
received no financing from EIB:
a) Asia: Bangladesh, Korea Republic of, Malaysia, Nepal, Singapore, Thailand.
c) Latin and Central America: Argentina, Bolivia, Chile, Costa Rica, El Salvador,
Guatemala, Macau, Nicaragua, Paraguay, Regional-Latin America, Uruguay,
Venezuela, West Indies, Yemen.
The following ALA - Countries received in the last 6 years financing from EIB:
Andean Countries EUR 40,000.000,-

Brazil EUR 463,000.000,-
Central America EUR 65,590.355,-
China EUR 500,000.000,-
Colombia EUR 100,000.000,-
Ecuador EUR 40,000.000,-
Honduras EUR 20,000.000,-
India EUR 50,000.000,-
Indonesia EUR 99,539.284,-
Lao, People’s Dem.Rep. EUR 42,119.773,-
Maldives EUR 50,000,000,-
Mexico EUR 70,000.000,-
Pakistan EUR 78,603,382,-
Panama EUR 40,812.995,-
Peru EUR 40,000.000,-
Philippines EUR 65,591,000,-
Sri Lanka EUR 160,000.000,-
Vietnam EUR 68,000.000,-
Source: EIB, website: http://www.eib.europa.eu/
7. Global Loans and Guarantees for SME Financing – South Lending

Summary 2001 – 2008
Subject a) Global Authorisation for Microfinance 2001

Date of Entry 06/08/2001
Beneficiary Microfinance institutions and specialised funds or banks, to be
selected.
Location ACP States - Africa, Caribbean, Pacific countries + OCT.
Description Global Authorisation for decisions on small requests – up to 2 M EUR
EIB finance EUR 15 million, to be committed until July 2004.
Status Approved - 24/07/2001
Subject b) BNDES Global Loan

Beneficiary Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Location Brazil - Asia and Latin & Central America.
Description The proposed line of credit will be targeted to part-finance projects
undertaken by private sector companies with EU interests
(subsidiaries, joint ventures)
EIB finance USD 50 m (equivalent to approx. EUR 41 m).
Subject c) BGFIBANK - Support to the Gabonese financial sector
Beneficiary BGFIBANK
Location Gabon - Africa, Caribbean, Pacific countries + OCT.
Description The loan will serve to strengthen BGFIBANK's quasi-equity with the
aim of assisting the development of the group's Gabonese
subsidiaries: BGFIBAIL (property and equipment leasing) and
FINATRA (individual equipment loans).
EIB finance EUR 6 million.
Subject d) COFIDES Global Guarantee Framework Loan

Beneficiary Compañia Española de Financiación del Desarrollo, COFIDES, S.A.
Location ALA Countries - Asia and Latin & Central America.
Description The proposed loan will be targeted to finance small and medium-
sized projects undertaken by private companies with EU interests
EIB finance EUR 25 m.
Subject e) DFCC Global Loan II

Beneficiary Ministry of Finance & Planning of the Democratic Socialist Republic of Sri Lanka
Location Sri Lanka - Asia and Latin & Central America.
Description Financing of investments of small/medium scale by the DFCC in industry,
productive infrastructure, tourism, mining, related services and eligible
health and climate change mitigation projects.
EIB finance Up to EUR 50 million.
Status Signed - 22/12/2006
Subject f) Access Microfinance Holding

Beneficiary LFS Financial Systems GmbH. Linienstr. 126 D-10115 Berlin. For the attention of:
Dr. Bernd Zattler, Managing Director
Description Equity investment in regional holding company with a total share capital of EUR 20
million incorporated in Germany, and dedicated to the creation and acquisition of
commercially sustainable microfinance institutions (MFIs).
Status Under appraisal - 02/05/2006
Subject g) Investisseurs & Partenaires
Beneficiary Investisseur & Partenaire pour le Développement
Mr. Patrice Hoppenot, President of the Board
c/o I&P Etudes et Conseils, 3, rue Casteja, 92100 Boulogne Billancourt, France
Location ACP States - Africa, Caribbean, Pacific countries + OCT
Description Equity investment in regional holding company with a total share
capital of EUR 16 million incorporated in Mauritius.
EIB finance Up to EUR 3.25 million
Subject h) Rwanda Global Loan II - Private Sector Support

Beneficiary • Banque Rwandaise De Développement (Contact person : Mr. Théogène
Turatsinze ; Fax No : 250 – 573569)
• Banque Commerciale du Rwanda ( Contact Person : Mr. David Kuwana ; Fax
No : 250 – 593395)
Location Rwanda - Africa, Caribbean, Pacific countries + OCT.
Description Line of Credit for on-lending in the form of medium and long-term financing
in Euros and local currency. Financing of Rwandan companies, particularly
Small and Medium sized, and micro enterprises.
Subject i) First Bank of Nigeria

Beneficiary First Bank of Nigeria (FBN)
Location Nigeria - Africa, Caribbean, Pacific countries + OCT.
Description Despite improvements in the Nigerian economic environment over the last couple of
years, local banks continue to experience constraints in their access to long term
resources. This operation will give FBN access to a source of stable long-term finance in
hard currency, which it needs to implement its ambitious strategies. It will also contribute
as a catalyst to increasing the flow of long-term private funding into the banking sector.
Subject j) Framework guarantee agreement (Central Africa)
Beneficiary • BGFIBANK SA, Libreville, Gabon
Mr Bernard PEDEPRAT, Deputy Managing Director
• BICIG SA, Libreville, Gabon
Mr Jean-Michel PAPIN, Director of Corporate Customers Network
• Union Gabonaise de Banque SA, Libreville, Gabon
Mr François HOFFMANN, Managing Director
Location Regional - Central Africa - Africa, Caribbean, Pacific countries + OCT.
Description Partial guarantee for loans granted by the financial intermediaries to private or
public commercial enterprises.
Subject k) Pacific Islands Financing Facility II (PIFF II)

Beneficiary Funds under the proposed facility would initially be made available to Bank South Pacific
(BSP) in Papua New Guinea, Bank of the Cook Islands Limited (BCIL) in the Cook
Islands, National Development Bank of Palau (NDBP) in the Republic of Palau and Niue
Development Bank (NDB) in Niue. Additional intermediaries from other Pacific countries
will be able to benefit from the facility at a later stage, subject to satisfactory appraisal and
approval by the Management Committee.
Location Regional - Pacific - Africa, Caribbean, Pacific countries + OCT.
Description The objective of this second financing facility in the Pacific region is to provide global
loans for onlending to SMEs and micro-sized initiatives as well as technical assistance to
in different Pacific countries through selected financial intermediaries.
EIB finance EUR 25 million
Subject l) TVCabo Multimedia

Beneficiary TVCabo Angola
Location Angola - Africa, Caribbean, Pacific countries + OCT. Luanda
Description The project concerns the construction of a broadband and bi-

directional digital network.
EIB finance EUR 15million.
Subject m) Private Enterprise Finance Facility
Beneficiary Barclays Bank of Kenya Ltd., East African Development Bank,
FINA Bank Ltd.
Location Kenya - Africa, Caribbean, Pacific countries + OCT.
Description Credit line providing long-term funds in Shillings and foreign currencies to
selected intermediary banks to finance small and medium sized private
investment projects.
Subject n) I & P Capital Fund II

Beneficiary I&P Management (Indian Ocean)
6th floor, Harbour Front building,
President John Kennedy Street
Port-Louis,
Mauritius
Location Regional - Indian Ocean - Africa, Caribbean, Pacific countries + OCT
Description The fund will make equity and quasi-equity investments of EUR 1 million – 5 million
in private companies located primarily in Mauritius and Madagascar and possibly
the wider Indian Ocean region and East Africa.
Subject o) PRO-PME II Global Loan

Beneficiary PRO-PME Financement S.A.
Credit institution specialising in financing of small and very small firms in
Cameroon (meso finance).
Location Cameroon - Africa, Caribbean, Pacific countries + OCT.
Description The Bank's loan will finance PRO-PME's loans and leasing operations in favour of
the final beneficiaries. The proposed operation complies with the principles and
aims of the Investment Facility established under the Cotonou Agreement. It will
help to promote Cameroon's private sector, particularly small urban companies,
which make a substantial contribution to the country's economic development, and
will assist the local financial sector by providing resources tailored to local
investment requirements in terms of duration and cost.
Subject p) MicroCred
Beneficiary MicroCred
Attn.: Mr Arnaud Ventura, Managing Director & CEO
13 rue Dieumegard
93400 Saint-Ouen
France
Location Regional - Africa - Africa, Caribbean, Pacific countries + OCT.
Description Equity investment in a regional fund incorporated in France dedicated to the
creation and acquisition of commercially sustainable microfinance institutions
(MFIs).
EIB finance Up to EUR 3 million from ACP-Investment Facility resources
Subject q) Private Enterprise Finance Facility

Beneficiary Allied Bank International (ABI), Barclays Bank of Uganda (BBU), Crane Bank,
Diamond Trust Bank Uganda (DTBU), East African Development Bank (EADB),
DFCU Ltd., Nile Bank
Location Uganda - Africa, Caribbean, Pacific countries + OCT.
Description Credit line providing long-term funds in Shillings and foreign currencies to selected
intermediary banks to finance small and medium sized private investment projects;
guarantee window for credit risk sharing on selected sub-borrowers. The purpose
is to support investment projects for the expansion, diversification, modernisation
or start-up of enterprises, through financing loans and leasing transactions with a
maturity matching the economic lifetime of assets. The credit line addresses the
lack of long-term resources in the Ugandan financial markets.
Subject r) Rural Impulse Microfinance Fund

Beneficiary Incofin
M. Loïc De Cannière, Managing Director
Sneeuwbeslaan 20, 2610 Wilrijk, Belgium
Description A microfinance fund to be incorporated in Luxembourg with an objective to make
debt and/or equity investments in microfinance institutions which provide financial
services to the rural poor.
EIB finance USD 85 million.
Subject s) EIB / Capital Investment Line III
Beneficiary African Banking Corporation Zambia Limited
Barclays Bank of Zambia Limited
Finance Bank Zambia Limited
Investrust Bank Limited
Stanbic Bank Zambia Limited
Standard Chartered Bank Zambia PLC
Location Zambia - Africa, Caribbean, Pacific countries + OCT.
Description A credit line to selected commercial banks and leasing companies for
medium-term on-lending / leasing to a wide range of small and medium sized
enterprises in Zambia.
EIB finance EUR 40 million
8. EIB Authorised Financial Institutions for South Lending programmes
A list of these Financial Institutions is contained in ANNEX “D” to this Report.

V. Conclusions and Recommendations for Actions
1. Conclusions
1.1 Not enough Global Loans for SMEs
Many of the loans went to large-scale, non-sustainable oil, gas, mining, dam and
industrial projects – sectors that may be economically viable for the EIB but mainly
benefit subsidiaries of EU companies. Only a small fraction of the EIB budget went to
SMEs.
EIB Lending Asia
bySector
Trans
TeleCom
m 5%
Sector
p13%
(1994 - 2006) Industr
y 14%
Global
Loans
16%
TeleCom
m
Industr
y
Energ
y
Global
Loans
Trans
Energ p
y 52%
EIB Lending Asia by Sector (1994 bis 2004)

Source: “The development impact of European Investment Bank
(EIB) lending operations in the Cotonou and ALA framework.”
(Project no.EP/ExPol/B/2004/09/06).
1.2 EIB’s key objectives regarding poverty alleviation and social development
not yet reached.
Although the EIB is often presented as the “Development Bank of the EU” in practice
EIB’s contribution to key objectives regarding poverty alleviation and social
development embedded in the EU’s Country Strategy Papers could significantly be
increased within the next decade.
• In Latin America and Asia EIB loans have targeted well-established and
financially secure sectors or clients, thus tending not to reach out to the poorest
(and financially risky) countries or small local companies.
• In Latin America, more than 90% of EIB loans since 1993 have been given to
either subsidiaries of Eubased companies or to big trans-national corporations.
• In Africa the EIB manages a significant share of EU commission budget money
for development co-operation (up to €13.5 billion during last ten years) and this
tendency is increasing with the creation of the new EIB’s Cotonou Investment
• Facility, expected to disburse €2.2 billion of the EU budget between 2003 and
2008. The first few loans disbursed by the Facility went predominantly to the
private sector, to large European corporations or large local companies,
• In Africa, as in Latin America, the preferred targets of EIB loans are within the
extractive industries sector. The Chad–Cameroon Oil Pipeline was the
project ever funded by the EIB in Africa, with €144 million, representing four
percent of the total lending in the ACP region countries.
1.3 Better project information for NGOs and the right to submit applications for
SME funding.
In cases where EIB is the sole financier, more information during

the whole project cycle should be made available to local and international NGOs.
In accordance with the key objectives of EIB as the „Development Bank of the EU”,
NGOs representing SMEs should have the right to submit funding requests directly to
EIB.
1.4 Urgent Backlog: EIB Global Loans for SME in Asian Countries.
• Over last ten years the EIB, acting under the first two mandates given by the EU
for the ALA region (Asia and Latin America) has financed nine projects in the
water sector (water supply and sanitation, sewerage systems and large dams).
This has run to a total of €335 million, of which €240 million was loaned for five
water projects in Asia (in China, Madagascar, Laos, Indonesia and the
Philippines) and €95 million for the above- mentioned projects in Latin America
(Argentina and Paraguay). Although, relative to the energy sector, the water
sector in Asia was not heavily funded (only with 14% of the loans between 1994
and 2004), it is important to point out that the EU (via the use of the guarantee on
EIB loans) has mainly promoted water privatisation projects in this region. These
projects were carried out in the Philippines and Indonesia.
• Of 19 EIB Global Loans (GL) between 2001 and 2007 ( 6 GL under appraisal, 8
GL approved and 5 GL signed), which have a direct link to Small and Medium
Enterprises (SMEs)
16 GL are (or will be) provided for African Countries and Carribean
1 GL are (or will be) provided for Latin Amertican Countries
2 GL are (or will be provided for Asian Countries.
EIB GLOBAL LOANS FOR SMEs
AFRICA
LATIN AM
ASIA
• Of 17 Asian Countries, only in 4 Countries are EIB authorises Financial
Institutions (FI) appointed.
• In the following Asian Countries are Fis appointed by EIB: India, Indonesia,
Philippines, Sri Lanka.
• Of a total budget of approx. 2 billion EUR (last 5 years) for the ALA Countries,
only 125 million EUR have been provided for direct SME financing.
2. Recommendations for Actions
2.1 The SMEs Conference may wish
The Governing Body WASME may wish
a) to discuss the contents of this Report in one of the next sessions of the Steering
Committee
b) to forward this Report to the W.S.U.’s Member Organisations seeking their
comments and possible proposals for amendments,
c) to authorise the Permanent Representatives of W.S.U.to submit this Report to
EIB European Investment Bank to EIB’s officers in charge of Global South
Lending to their consideration,
d) to authorise the General Secretary W.S.U. to seek the support of UNIDO in
upgrading EIB’s Global South Lending in the ALA Countries.
2.2 The Secretary General W.S.U.
The General Secretary with the consent of the Steering Committee W.S.U. shall
contact W.S.U. Member Organisations, W.S.U.‘s Representatives, Advisers,
Chambers of Commerce, Financial Institutions in the ALA Countries with priority in
Bangladesh, Malaysia, Nepal, South Korea, Thailand and Vietnam in order to
encourage these organisations to undertake the following actions:
a) submit to the General Secretary W.S.U. a Report on the financial needs of SMEs
in their Country,
b) Nominate Financial Institutions who may be interested in qualifying as a national
Financial Institution under the authorisation of EIB,
c) Call SMEs in their Countries to submit project proposals to be financed by EIB.
Sources:
1. EIB website http://www.eib.europa.eu

2. Investment Bank (EIB) lending operations in the Cotonou and
ALA framework” (Project no EP/ExPol/B/2004/09/06), by
Jaroslava Colajacomo, CRBM March 2005 available at:
http://aa.ecn.cz/img_upload/2a47e698cb07569dfd0ebe077b6aa
d99/eib_study12_05_jaro.pdf
The study has been used as background for the European
Parliament “Report on the impact of the lending activities of the
European Community in developing countries (2004/2213(INI))”
FINAL A6-0183/2005 9.6.2005 Committee on Development
Rapporteur: Gabriele Zimmer available at:
http://bankwatch.ecn.cz/newsroom/documents.shtml?x=330478
3. The IF Operational Guidelines were previously confidential
but have been disclosed by the EIB to the
Parliament on 24 February 2005.
4. EIB: The Social Assessment of Projects in Developing Countries:
The Approach of the European Investment Bank, July 2004.
5. Report “The Development Impact of
European Investment Bank (EIB) lending operations in the
6. Cotonou and ALA framework” (Project no
EP/ExPol/B/2004/09/06) carried out in March 2005.eib
ANNEXES
A. Global Loans for SME 2000 – 2007 under appraisal,

approved, signed
Global Autorisation for Microfinance 2001

Date of
06/08/2001
Entry:
Beneficiary: Microfinance institutions and specialised funds or banks, to be selected
Location: ACP States - Africa, Caribbean, Pacific countries + OCT.
Description: Global Authorisation for decisions on small requests – up to 2 M EUR – for

financing in the form of equity, quasi-equity, straight loans or guarantees.
Counterparties are selected according to experience, competences and commitment
to promote microfinance industry’s viability.
Objectives: Help microfinance institutions develop operations and reach commercial and
financial self-sustainability, to the benefit of poor clients. Interventions will be
coordinated with those of the major international donors and combined where
necessary with grants from other sources for institution building measures.
Sector: Services.
Proposed EIB
EUR 15 million, to be committed until July 2004.
finance:
Total cost:
Environment No negative environmental impact to be expected from the use of funds by final
al aspects: beneficiaries.
Procurement:No procurement issues involved in microfinance operations.
Status: Approved - 24/07/2001
BNDES Global Loan
Date of Entry: 14/07/2004
Beneficiary: Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Location: Brazil - Asia and Latin & Central America.
Description: The proposed line of credit will be targeted to part-finance projects undertaken by
private sector companies with EU interests (subsidiaries, joint ventures) in various
sectors of the economy, with a bias towards infrastructure.
Objectives: Provide BNDES with long term ressources in order to support EU investment in
Brazil and help diversify its present sources of funding.
Sector: Global loans.
Various sectors of the economy with a bias towards infrastructure.
Proposed EIB
USD 50 m (equivalent to approx EUR 41 m).
finance:
Total cost: Not applicable.
Environmental All sub-projects financed under the proposed loan will be required to comply with
aspects: the relevant national legal framework, to be acceptable in environmental terms to
EIB.
Procurement: The procurement of works, goods and services relating to the sub-projects shall
follow apppropriate market procedures and comply with applicable national
legislation.
BGFIBANK - Support to the Gabonese financial sector

Beneficiary:
Location: Gabon - Africa, Caribbean, Pacific countries + OCT.
Description: Subordinated loan to BGFIBANK for assisting development of the group's

Gabonese subsidiaries.
Objectives: The loan will serve to strengthen BGFIBANK's quasi-equity with the aim of
assisting the development of the group's Gabonese subsidiaries: BGFIBAIL
(property and equipment leasing) and FINATRA (individual equipment loans).
Sector: Services.
Proposed EIB
EUR 6 million.
finance:
Environmental The EIB will verify that BGFIBAIL and FINATRA's lending activity complies
aspects: with its customary environmental standards.
Procurement: Not applicable.
COFIDES Global Guarantee Framework Loan
Beneficiary: Compañia Española de Financiación del Desarrollo, COFIDES, S.A.
Location: ALA Countries - Asia and Latin & Central America.
Description: The proposed loan will be targeted to finance small and medium-sized projects
undertaken by private companies with EU interests (subsidiaries, joint ventures)
in industry, agro-industry, infrastructure, tourism, energy and
telecommunications, and related services.
Objectives: To enhance the support the EIB can provide to European companies investing in
Latin America and Asia.
Industry, agro-industry, commercial infrastructure, tourism and related services.
Proposed EIB
EUR 25 m.
finance:
Environmental All projects should comply with the principles and standards set by EU policies,
aspects: subject to local conditions and law. The environmental impact of each project
should also be acceptable to the EIB.
Procurement: EIB procurement guidelines for global loans will be applied.
HBTF Global Loan

Beneficiary: The Housing Bank for Trade and Finance (HBTF)
Location: Jordan - Mediterranean countries.
Description: Financing of small and medium sized long term projects, primarily of private
sector SMEs throughout Jordan.
Objectives: The project will contribute to the development of Jordanian private sector
companies, in particular SMEs in industry, services and infrastructure (also
including agro-food and tourism) as well as health and education sectors.
Industry, agro-industry, tourism, health, education, infrastructure and services
sectors normally eligible for EIB financing.
Proposed EIB
Around EUR 50 million
finance:
Total cost: Not applicable
Environmental All investments financed from the resources made available by the Bank
aspects: through global loan operations are required to comply with the relevant
national legal framework and be acceptable, in environmental terms, to the
Bank in line, as appropriate, with the EU Environmental policy and legislation.
Procurement: The Bank’s standard procurement guidelines to Global Loans will apply.
ATLAMED Invest.
Beneficiary: ATLAMED S.A. – Moroccan Fund Manager.
Contact: Mr Bassim Jaï Hokimi

Chairman
37, Rue Jalal Eddine Assayouti
Casablanca
Morocco
Fax: +212 22 39 57 10
Location: Morocco - Mediterranean countries.
Description: Participation in a private equity fund focussing on investments in private

companies active in growth sectors of the Moroccan economy.
Objectives: The fund will invest in the equity of local companies to promote their
modernisation and expansion. With priority being given to partnerships with
international investors, the project is also expected to support FDIs in Morocco
and have a pioneering role in the development of the country’s financial sector,
as it provides for the development of the country’s private equity industry and
for a relatively new type of financing structure (e.g. LBO transactions) in
Morocco.
Sector: Services.
The fund is a generalist fund and will be investing in a variety of sectors. It will
target sectors in which Morocco has a comparative advantage and a strong
growth potential.
Proposed EIB
Up to EUR 9 million, capped at 25% of total fund commitments.
finance:
Total cost: Target fund size is MAD 500 million (around EUR 45 million).
Environmental The fund will only invest in enterprises that comply with environmental
aspects: standards meeting the EIB’s requirements.
Procurement: N/A.
DFCC Global Loan II

Beneficiary: Ministry of Finance & Planning of the Democratic Socialist Republic of Sri
Lanka
Location: Sri Lanka - Asia and Latin & Central America.
Description: The proceeds of the EIB loan would be channelled through MOF via DFCC
to the final beneficiaries meeting the eligibility criteria of mutual interest for
financing under the EIB global loan.
Objectives: Financing of investments of small/medium scale by the DFCC in industry,
productive infrastructure, tourism, mining, related services and eligible health
and climate change mitigation projects.
Industry, productive infrastructure, tourism, mining, related services, health
and environment.
Proposed EIB
Up to EUR 50 million.
finance:
Environmental The borrower will be requested to ensure that the final beneficiaries comply
aspects: with local legislation and EIB rules and guidelines.
Procurement: Investments financed under the global loan will comply with national
legislation and EIB procurement guidelines.
Status: Signed - 22/12/2006
Tutunska Banka AD Global Loan

Beneficiary: Tutunska Banka AD
Location: Former Yugoslav Republic of Macedonia - South-East Europe.
Description: Credit line for financing of limited scale projects of small and medium
enterprises and local infrastructure projects of local authorities.
Objectives: Make available access to long-term funds at affordable interest rates to sectors of
economy with least availability of financing – small and medium size enterprises
and local authorities.
Proposed EIB
EUR 20 million.
finance:
Total cost: Not Applicable.
Environmental The financial intermediaries will be requested to ensure compliance of the sub-
aspects: projects with relevant national and EU environmental laws, as appropriate.
Procurement: The financial intermediaries will be requested to ensure compliance of the sub-
projects with EU directives, in particular for the award of public sector contracts,
as may be appropriate.
HAA Serbia and Montenegro Global Loan

Beneficiary: Hypo Alpe-Adria-Bank AD Beograd and
Hypo Alpe-Adria-Bank AD Podgorica
Location: Serbia and Montenegro - South-East Europe.
Description: Credit line for financing of limited scale projects of small and medium-sized
Objectives: Make available access to long-term funds at affordable interest rates to
sectors of economy with least availability of financing – small and medium
size enterprises and local authorities.
Proposed EIB
EUR 50 million.
finance:
Environmental The financial intermediaries will be requested to ensure compliance of the
aspects: sub-projects with relevant national and EU environmental laws, as
appropriate.
Procurement: The financial intermediaries will be requested to ensure compliance of the
sub-projects with EU directives, in particular for the award of public sector
contracts, as may be appropriate.
Access Microfinance Holding

Beneficiary: LFS Financial Systems GmbH
Linienstr. 126
D-10115 Berlin
For the attention of: Dr. Bernd Zattler, Managing Director
Description: Equity investment in regional holding company with a total share capital of
EUR 20 million incorporated in Germany, and dedicated to the creation and
acquisition of commercially sustainable microfinance institutions (MFIs).
Objectives: Achieving a social return through the deployment of equity or convertible debt
to new or existing MFIs in developing countries as well as a commercially
acceptable return in the microfinance area.
Sector: Services.
Financial Sector
Proposed EIB
finance:
Total cost: Not Applicable.
Environmental Investee companies to meet minimum environmental standards to be specified
aspects: and monitored by the Manager of the holding company.
Procurement: Not Applicable.
Status: Under appraisal - 02/05/2006
Investisseurs & Partenaires

Beneficiary: Investisseur & Partenaire pour le Développement
Mr. Patrice Hoppenot, President of the Board
c/o I&P Etudes et Conseils
3, rue Casteja
92100 Boulogne Billancourt
France
Description: Equity investment in regional holding company with a total share capital of
EUR 16 million incorporated in Mauritius.
Objectives: The company’s investment objective is to achieve a commercially
acceptable return in the lower-end of a small and medium-enterprise
segment and in microfinance institutions by means of equity and debt
instruments.
Sector: Services.
All sectors (except sectors normally excluded on ethical grounds)
Proposed EIB
Up to EUR 3.25 million
finance:
Environmental Investee companies to meet minimum environmental standards to be
aspects: specified and monitored by the Manager of the holding company.
Procurement: Not applicable
China Climate Change Framework Loan

Beneficiary: Government of China
Location: China - Asia and Latin & Central America.
Description: The operation would be a large-scale multi-investment scheme under which

the Bank could support several individual projects that contribute to the
avoidance or reduction of greenhouse gas emissions by the use of renewable
energy sources, energy efficiency enhancements, or the capture and use or
storage of greenhouse gases, some schemes with the possibility to generate
carbon credits.
Objectives: The overall purpose of the operation is to improve the global environment by
supporting projects that help to mitigate climate change. It would support
materially the EU-China Partnership on Climate Change, which encompasses
the China-EU Action Plan on Energy Efficiency and Renewable Energies and
the China-EU Action Plan on Clean Coal.
Targeting projects in the energy sector.
Proposed EIB
EUR 500 million
finance:
Total cost: Over EUR 1,000 million.
Environmental The operation is aimed at improving the global environment. It could support
aspects: projects with the potential to generate carbon credits. The schemes to be
selected for funding shall comply with relevant EU environmental standards,
subject to prevailing conditions, as well as the social safeguards of the Bank.
If located in the EU the project schemes would most likely fall under either
Annexes I or II of the EIA directive (97/11/EC), which would require,
respectively, a mandatory EIA or allow the competent authorities to
determine the EIA requirements.
Procurement: The procurement procedures for the schemes to be financed by the EIB loan
shall be in compliance with the EIB Guide to Procurement.
Rwanda Global Loan II - Private Sector Support
Beneficiary: • Banque Rwandaise De Développement (Contact person : Mr.
Théogène Turatsinze ; Fax No : 250 – 573569)
• Banque Commerciale du Rwanda ( Contact Person : Mr. David
Kuwana ; Fax No : 250 – 593395)
Location: Rwanda - Africa, Caribbean, Pacific countries + OCT.
Description: Line of Credit for on-lending in the form of medium and long-term
financing in Euros and local currency.
Objectives: Financing of Rwandan companies, particularly Small and Medium sized,
and micro enterprises.
Sectors eligible under the Cotonou Agreement, including, agribusiness,
manufacturing, transport, construction, energy, health and education, and
services amongst others.
Proposed EIB
EUR 10 million.
finance:
Environmental Investors in Rwanda are required to respect the national legislation on the
aspects: matter. The selected banks do recognise that environmental risks have to
be part of the standard risk assessment procedures.
Procurement: The financial intermediaries will ensure that equipment, works and
services to be financed will be procured at the most advantageous prices,
having regard to quality and efficiency, and that an open international
bidding procedure will be followed where appropriate.

Kuwana ; Fax No : 250 – 593395)
Proposed EIB
EUR 10 million.
finance:
aspects: matter. The selected banks do recognise that environmental risks have to be
part of the standard risk assessment procedures.
Procurement: The financial intermediaries will ensure that equipment, works and services
to be financed will be procured at the most advantageous prices, having
regard to quality and efficiency, and that an open international bidding
procedure will be followed where appropriate.

Kuwana ; Fax No : 250 – 593395)
Proposed EIB
EUR 10 million.
finance:
aspects: matter. The selected banks do recognise that environmental risks have to be
part of the standard risk assessment procedures.
Procurement: The financial intermediaries will ensure that equipment, works and services
to be financed will be procured at the most advantageous prices, having
regard to quality and efficiency, and that an open international bidding
procedure will be followed where appropriate.
First Bank of Nigeria

Beneficiary: First Bank of Nigeria (FBN)
Location: Nigeria - Africa, Caribbean, Pacific countries + OCT.
Description: This project involves a loan to FBN of up to EUR 50 million. It aims at

supporting the development of FBN, in particular with regard to (i) the
implementation of its retail strategy, (ii) the reinforcement of its position in
the corporate banking market and potentially (iii) the development of regional
synergies. FBN, thanks to its unique position, is going to be a leading actor in
financial deepening and economic integration in West-Africa.
Objectives: Despite improvements in the Nigerian economic environment over the last
couple of years, local banks continue to experience constraints in their access
to long term resources. This operation will give FBN access to a source of
stable long-term finance in hard currency, which it needs to implement its
ambitious strategies. It will also contribute as a catalyst to increasing the flow
of long-term private funding into the banking sector.
Sector: Services.
Financial Intermediation
Proposed EIB
finance:
Environmental Investors in Nigeria are required to respect the national legislation on the
aspects: matter. FBN recognises that environmental risks have to be part of the
standard risk assessment procedures and have to be adequately and
appropriately addressed. It verifies in its appraisal of projects that companies
have received the necessary licenses and performed an EIA when required.
Procurement:
FBN will ensure that equipment, works and services to be financed under this
operation will be procured at the most advantageous prices, having regard to
quality and efficiency, and that an open international bidding procedure will
be followed where appropriate.
Framework guarantee agreement (Central Africa)

Beneficiary: • BGFIBANK SA, Libreville, Gabon
Mr Bernard PEDEPRAT, Deputy Managing Director
• BICIG SA, Libreville, Gabon
Mr Jean-Michel PAPIN, Director of Corporate Customers Network
• Union Gabonaise de Banque SA, Libreville, Gabon
Mr François HOFFMANN, Managing Director
Location: Regional - Central Africa - Africa, Caribbean, Pacific countries + OCT.
Description: Partial guarantee for loans granted by the financial intermediaries to private or
public commercial enterprises.
Objectives: The proposed operation will enable the financial intermediaries to finance the
major projects to be implemented in the coming years in various Central
African countries with their own resources while complying with the
prudential ratios of the Central African Banking Commission (especially
concerning risk coverage and risk sharing). It will thus contribute to
developing the region's financial sector and private sector.
The EIB will provide the financial intermediaries with surety for loans or
guarantees granted to private or public commercial enterprises undertaking
long and medium-term projects in the industrial, productive infrastructure and
services sectors.
Proposed EIB EUR 50 million.
finance:
Environmental The EIB will assist the financial intermediaries in the area of environmental
aspects: impact assessment in order to ensure that projects supported comply with the
EIB’s standards.
Procurement: The financial intermediaries will undertake to ensure that the EIB’s
competitive tendering criteria are observed.
Pacific Islands Financing Facility II (PIFF II)

Date of
13/11/2006
Entry:
Beneficiary
Not applicable.
:
Location: Regional - Pacific - Africa, Caribbean, Pacific countries + OCT.
DescriptionThe objective of this second financing facility in the Pacific region is to provide global
: loans for onlending to SMEs and micro-sized initiatives as well as technical assistance
to in different Pacific countries through selected financial intermediaries.
Objectives: Funds under the proposed facility would initially be made available to Bank South
Pacific (BSP) in Papua New Guinea, Bank of the Cook Islands Limited (BCIL) in the
Cook Islands, National Development Bank of Palau (NDBP) in the Republic of Palau
and Niue Development Bank (NDB) in Niue. Additional intermediaries from other
Pacific countries will be able to benefit from the facility at a later stage, subject to
satisfactory appraisal and approval by the Management Committee.
Sector: Services.
Industry, agro-industry, tourism, transport, telcommunications, social housing,
services.
Proposed
EIB EUR 25 million
finance:
Environme The intermediaries will provide the EIB with a summary on environmental impacts of
ntal the projects to be financed and on proposed mitigating action. They will make further
aspects: investigations if the Bank so requests to ensure that projects to be financed comply
with the environmental standards that satisfy the Bank’s requirements. Guidelines on
the Bank’s environmental requirements will be provided to the banks as part of the
loan negotiation process.
Procureme The financial intermediaries will ensure that equipment, works and services to be
nt: financed will be procured at the most advantageous price, having regard to quality and
efficiency, and that an open international bidding procedure will be followed where
appropriate.
TVCabo Multimedia
Date of 17/11/2006
Entry:
Beneficiar
TVCabo Angola
y:
Location: Angola - Africa, Caribbean, Pacific countries + OCT.
Luanda
Descriptio The project concerns the construction of a broadband and bi-directional digital
n: network.
Objectives
Provision of multimedia services for individual homes and corporate markets.
:
Sector: Telecommunications.
Proposed
EIB EUR 15million.
finance:
Total cost: EUR 31million.
Environme There will be minimal environmental impacts with the project development, and
ntal correct mitigation measures are planned. The project is considered environmentally
aspects: acceptable without reservation.
Procureme In this private sector operation, the purchase of technical equipment was made on
nt: international markets. The majority of suppliers have a good reputation, which is
considered satisfactory by the Bank.
HAA Group Bosnia Global Loan
Beneficiary: Hypo Alpe-Adria-Bank d.d., Hypo Alpe-Adria-Bank a.d., Hypo Alpe-
Adria-Leasing d.o.o.
Location: Bosnia and Herzegovina - South-East Europe.
Description: Credit line for financing of limited scale projects of small and medium
Objectives: Make available access to long-term funds at affordable interest rates to
sectors of economy with least availability of financing – small and
medium size enterprises and local authorities.
Proposed EIB finance: EUR 105 million.

Environmental aspects: The financial intermediaries will be requested to ensure compliance of
the sub-projects with relevant national and EU environmental laws, as
appropriate.
Procurement: The financial intermediaries will be requested to ensure compliance of
the sub-projects with EU directives, in particular for the award of public
sector contracts, as may be appropriate.
SME Reconstruction Facility

Beneficiary: Banque du Liban
Location: Lebanon - Mediterranean countries.
Description: The proposed facility consists of an Apex Global Loan open to Lebanese
Banks selected by EIB and aimed at co-financing private sectors
investments in support of SMEs affected by the recent conflict.
Objectives: Lebanese SMEs have been seriously affected by the recent conflict and
need access to tailored credit facilities; (longer maturities and grace
periods - lower interest rates). The proposed financing will provide a
sustainable means of support for the backbone of private sector business in
the country.
Multi-sector.
Proposed EIB
EUR 100 million.
finance:
Total cost: Estimated at least at EUR 200 million.
Environmental All investments financed from the resources made available by the Bank
aspects: through global loan operations are required to comply with the relevant
national legal framework and be acceptable, in environmental terms, to the
Bank in line, as appropriate, with the EU Environmental policy and
legislation.
Procurement: The Bank’s standard procurement guidelines to Global loans will apply.
Private Enterprise Finance Facility
Beneficiary: Barclays Bank of Kenya Ltd., East African Development Bank, FINA
Bank Ltd.
Location: Kenya - Africa, Caribbean, Pacific countries + OCT.
Description: Credit line providing long-term funds in Shillings and foreign

currencies to selected intermediary banks to finance small and medium
sized private investment projects.
Objectives: The purpose is to support investment projects for the expansion,
diversification, modernisation or start-up of enterprises, through
financing loans and leasing transactions with a maturity matching the
economic lifetime of assets. The credit line addresses the lack of long-
term resources in the Kenyan financial markets.
Agro-industry, fishing, mining and quarrying, food processing,
manufacturing, tourism or services related to these sectors, or
healthcare and education
Proposed EIB finance: Up to EUR 20 million.
Environmental aspects: The intermediaries will assess environmental risks and mitigating
measures as part of their regular project appraisal and will ensure
compliance of projects to be financed with Kenyan environmental
standards controlled by the competent authority (NEMA).
Procurement: Assets to be financed will be procured on a competitive basis taking
into account relevant market practice as well as the nature and size of
the goods considered.
I & P Capital Fund II
Beneficiary: I&P Management (Indian Ocean)
6th floor, Harbour Front building,
President John Kennedy Street
Port-Louis,
Mauritius
Location: Regional - Indian Ocean - Africa, Caribbean, Pacific countries + OCT.
Description: The fund will make equity and quasi-equity investments of EUR 1 million
– 5 million in private companies located primarily in Mauritius and
Madagascar and possibly the wider Indian Ocean region and East Africa.
Objectives: Contributing to the development of the private sector in the targeted
regions and producing a commercial return to investors.
Sector: Services.
The fund will make investments across a range of sectors.
Proposed EIB
finance:
Total cost: Up to EUR 30 million.
Environmental Investee companies to meet the Bank’s environmental standards
aspects: Compliance to be monitored by the fund manager.
PRO-PME II Global Loan

Beneficiary: PRO-PME Financement S.A.
Credit institution specialising in financing of small and very small firms in
Cameroon (meso finance).
Location: Cameroon - Africa, Caribbean, Pacific countries + OCT.
Description: The Bank's loan will finance PRO-PME's loans and leasing operations in
favour of the final beneficiaries.
Objectives: The proposed operation complies with the principles and aims of the
Investment Facility established under the Cotonou Agreement. It will help
to promote Cameroon's private sector, particularly small urban companies,
which make a substantial contribution to the country's economic
development, and will assist the local financial sector by providing
resources tailored to local investment requirements in terms of duration
and cost.
Financial sector and local private-sector SMEs.
Proposed EIB
EUR 4 million.
finance:
Environmental PRO-PME will ensure that all the necessary permits and authorisations
aspects: issued by the various competent authorities are obtained for the projects
financed. Application of national environmental regulations by the
borrower will be systematically required. If necessary, additional
investigations will be required to ensure that the projects comply with the
Bank's environmental standards.
Procurement: PRO-PME will ensure that its customers' selection of supplies and services
includes, if appropriate, the competitive tendering necessary to guarantee
the sound economics of each project.
MicroCred
Beneficiary: MicroCred
Attn.: Mr Arnaud Ventura, Managing Director & CEO
13 rue Dieumegard
93400 Saint-Ouen
France
Location: Regional - Africa - Africa, Caribbean, Pacific countries + OCT.
Description: Equity investment in a regional fund incorporated in France dedicated

to the creation and acquisition of commercially sustainable
microfinance institutions (MFIs).
Objectives: Achieving a commercially acceptable return in the microfinance area
and a social return through the deployment of equity or convertible
debt to new or existing MFIs in developing countries.
Sector: Services.
Financial sector
Proposed EIB finance: Up to EUR 3 million from ACP-Investment Facility resources
Environmental aspects: Investee companies to meet the Bank’s environmental standards to be
monitored by the Fund Manager.
Private Enterprise Finance Facility

Beneficiary: Allied Bank International (ABI), Barclays Bank of Uganda (BBU), Crane
Bank, Diamond Trust Bank Uganda (DTBU), East African Development
Bank (EADB), DFCU Ltd., Nile Bank
Location: Uganda - Africa, Caribbean, Pacific countries + OCT.
Description: Credit line providing long-term funds in Shillings and foreign currencies to
selected intermediary banks to finance small and medium sized private
investment projects; guarantee window for credit risk sharing on selected
sub-borrowers.
Objectives: The purpose is to support investment projects for the expansion,
diversification, modernisation or start-up of enterprises, through financing
loans and leasing transactions with a maturity matching the economic
lifetime of assets. The credit line addresses the lack of long-term resources
in the Ugandan financial markets.
Agro-industry, fishing, mining and quarrying, construction, food
processing, manufacturing, tourism (or services related to these sectors),
healthcare and education.
Proposed EIB
finance:
Environmental The intermediaries will assess environmental risks and mitigating
aspects: measures as part of their regular project appraisal and will ensure
compliance of projects to be financed with Ugandan environmental
standards controlled by the competent authority (NEMA).
Procurement: Assets to be financed will be procured on a competitive basis taking into
account relevant market practice as well as the nature and size of the goods
considered.
STEG GAZ II
Beneficiary: Société Tunisienne de l’Électricité et du Gaz (STEG)
Location: Tunisia - Mediterranean countries.
Description: L’investissement envisagé vise essentiellement le programme 2007-2011

de la STEG pour le développement du gaz naturel en Tunisie avec un volet
distribution publique pour le raccordement de 340 000 nouveaux clients
résidentiels et un volet expansion du réseau de transport.
Objectives: Le projet s’inscrit dans le cadre du 11ème Plan National (2007-2011). Il
s’intègre dans le programme prioritaire du gouvernement tunisien visant à
augmenter de façon significative la pénétration du gaz dans les secteurs
industriels et résidentiels afin de réduire les importations de produits
pétroliers (GPL, fuel lourd et gasoil) et de préserver l’environnement. Des
mesures d’encouragement au raccordement au réseau gaz ont été mises en
place avec un objectif de 500 000 ménages raccordés à l’horizon 2009.
Par sa contribution au développement de l’approvisionnement énergétique
du pays, notamment du secteur privé, le projet est en ligne avec les
objectifs fixés dans le cadre de la Facilité FEMIP de la Banque.
Sector: Energy.
Gaz
Proposed EIB
60 millions d’EUR.
finance:
Total cost: Environ 133 millions d’EUR
Environmental L’évaluation des incidences du projet sur l’environnement est requise
aspects: selon la législation tunisienne (décret 91-362, largement inspiré de la
Directive européenne 97/11). Les études d’impact, les mesures
d’atténuation et leur approbation par l’Agence Nationale pour
l’Environnement seront soumises à la Banque.
Procurement: Les dossiers d’appel d’offres des différentes composantes du projet feront
l’objet d’une concurrence internationale avec publication au JOCE.
The Building Block Equity Fund
Beneficiary: Bader, a Lebanese entrepreneurial network.
Location: Lebanon - Mediterranean countries.
Fund to be based in Beirut.
Description: Participation in the setting up of a private equity fund focused on
Small and Medium-sized Enterprises (SMEs) in Lebanon.
Objectives: The project will improve the financing of SMEs in Lebanon. SMEs
are seen as a key factor for the reconstruction and improvement of the
competitiveness of Lebanon’s economy.
Sector: Services.
Lebanese technology, services or innovative traditional companies.
Proposed EIB finance: Up to the lower of EUR 5 million or 25% of fund size.
Total cost: Up to USD 22 million (EUR 17 million) fund size.
Environmental aspects: The fund will only invest in companies that comply with the
environmental standards required by the EIB.
SONEB Alimentation en Eau Urbaine

Beneficiary: Société Nationale des Eaux du Bénin (SONEB)
Location: Benin - Africa, Caribbean, Pacific countries + OCT.
Description: Le projet porte sur la réalisation d’infrastructures visant à renforcer le

système d’alimentation en eau potable de Cotonou et ses
agglomérations péri-urbaines situées dans les communes d’Abomey
Calavi et de Seme Kpodji, dans le sud de la République du Bénin. En
matière d’assainissement, le projet contribuera à la construction de
3500 ouvrages d’assainissement autonome dans les quartiers les plus
défavorisés de l’agglomération de Cotonou.
Objectives: L’objectif du projet est d’accroître le taux d’accès à l’eau potable dans
l’agglomération de Cotonou, de 56% en 2006 à 66% en 2011,
permettant ainsi à plus de 220 000 personnes de bénéficier
directement du projet. Les ouvrages d’assainissement autonome
concerneront 30 000 habitants.
Sector: Water, sewerage, solid waste.
Hydraulique urbaine.
Proposed EIB finance: 13 millions d’EUR.
Total cost: 26 millions d’EUR.
Environmental aspects: Dans le cadre de la demande de subvention à la Facilité pour l’Eau, le
projet a fait l’objet d’une étude préparatoire qui a évalué les impacts
sur l’environnement des travaux envisagés et proposé des mesures
d’atténuation. Néanmoins, une EIE devra être réalisée conformément
à la législation béninoise qui précise que les projets d’importance
majeure, dont les projets ayant un impact sur les ressources naturelles
en eau, sont soumis à une EIE. Cette dernière devra être approuvée par
l’Agence béninoise d’Environnement avant le démarrage des travaux.
Procurement: Les procédures d’appel d’offre retenues pour le projet seront celles de
la Banque, chef de file des bailleurs, conformément aux dispositions
de la Facilité ACP-EU pour l’Eau. Les travaux les plus importants
feront l’objet d’appels d’offres internationaux, avec publication au
JOCE. Les autres travaux seront soumis à une concurrence nationale,
selon la taille des marchés.
Pafos Sewerage II
Beneficiary: Pafos Sewerage Board
Mr. E. Malekides
General Manager
Location: Cyprus - European Union.
Greater Pafos
Description: The project consists of Phase II (2007-2012) of Greater Pafos sewerage
and drainage system’s and treatment plant’s expansion.
Objectives: The project will contribute to the compliance of the Pafos Sewerage
Board with the requirements of EC Directive 91/271 on Urban
Wastewater Treatment (as amended by Directive 98/15/EC) by 2012.
Proposed EIB finance: EUR 40 million.

Total cost: EUR 108 million.
Environmental aspects: An Environmental Impact Assessment, in form and substance fully
compliant with national Law, of project components has been
undertaken. The Environmental Service of the Ministry of Agriculture,
Natural Resources and Environment has confirmed that the project will
not have any significant negative effect on Nature Conversation Sites
(Natura 2000).
Procurement: The Promoter meets obligations regarding public notice and EU Journal
publication of tenders notices, whenever applicable.
Telefónica del Perú II

Beneficiary: Telefónica del Perú S.A.A.
Location: Peru - Asia and Latin & Central America.
Description: The project concerns the purchase and installation of equipment for the
provision of Telephony, Broadband Internet, Data Transmission, Cable
Communications, Satellite Pay-TV and VSAT services in the main
populated centres and in some rural areas of Peru.
Objectives: Contributing to i) improving overall business productivity in Peru, ii)
support a European Company with a strategic presence in Latin America
and iii) allow the transfer of European economic and technological
knowledge.
Sector: Telecommunications.
Proposed EIB finance: Up to EUR 60 million.

Total cost: To be confirmed.
Environmental aspects: If the project were located within Europe, it would not fall under
Annexes I and II of EU Directive 97/11/EC (concerning Environmental
Impact Assessment requirements) and would be subject only to national
legislation. The applicable legislation in Peru and its respect by the
promoter will be checked during appraisal.
Procurement: The promoter is a private company providing its services in liberalised
markets. During appraisal EIB will assess whether the procurement
procedures it followed were fair, transparent, economically/technically
effective and in line with EIB procurement guidelines.
Programme Eau Senegal

Beneficiary: SONES (Société Nationale des Eaux du Sénégal) – Société de
patrimoine concessionnaire du service public d’eau potable dans 66
centres urbains au Sénégal
Location: Senegal - Africa, Caribbean, Pacific countries + OCT.
Description: Financement de la première phase du Programme d'Eau Potable et

Assainissement pour le Millénaire (PEPAM) qui a pour objectif
d'améliorer la desserte en eau potable des populations des centres de
l'intérieur, et des quartiers périphériques de Dakar.
Objectives: Le PEPAM fait suite au Projet Sectoriel Eau (PSE) et au Projet Eau
Long terme (PELT), au financement desquels a participé la Banque.
Le PEPAM vise à atteindre les objectifs du millénaire pour le
Développement fixés par les nations unis à l’horizon 2015. La
première phase du PEPAM 2006-2011 a pour objectifs d’augmenter
le taux de branchement domiciliaire à l’eau potable, d’améliorer la
qualité des eaux distribuées, de renforcer la politique de
branchements sociaux et de renforcer la réforme institutionnelle de
l’hydraulique urbaine initiée en 1996.
Proposed EIB finance: 15 millions d’EUR.

Total cost: 59 millions d’EUR.
Environmental aspects: Les projets précédents soutenus par un grand nombre de bailleurs de
fonds internationaux ont permis au promoteur d’établir des
procédures d’évaluation de l’impact sur l’environnement en accord
avec la pratique internationale et acquérir de l’expérience dans ce
domaine. Le projet prévoit la création d’une équipe de suivi
environnemental et social au sein de l’unité de gestion du projet. Les
travaux prévus dans le cadre du projet concernent des infrastructures
assez simples qui posent peu de problèmes environnementaux et
ayant une flexibilité dans le choix de leur emplacement afin de
minimiser d’éventuels effets négatifs.
De manière générale, les services de la Banque veilleront à ce que la
directive 97/11/CE sur les EIE soit reflétée dans les procédures
mises en œuvre par le promoteur. Il conviendra aussi de suivre
l’impact du projet sur des zones de protection de la nature
éventuelles. L’exploitation des eaux souterraines par forages fera
l’objet d’une attention particulière pour éviter un risque de
surexploitation. Le promoteur ne pourra engager les concours des
bailleurs pour des travaux qui requièrent une EIE sans avoir
préalablement soumis l’EIE dûment approuvée par les autorités
compétentes aux bailleurs de fonds.
Procurement: Il est prévu de suivre une approche programme afin d'atteindre les
objectifs de la Déclaration de Paris concernant l'harmonisation des
procédures entres bailleurs de fonds, y compris pour les appels
d'offres. Conformément aux procédures de la Facilité ACP-UE pour
l'Eau, les bailleurs de fonds, y inclus la BEI, suivront les procédures
du chef de file des bailleurs, dans le cas présent l'Agence française
de Développement. Ces procédures sont en accord avec les
dispositions du guide pour la passation des marchés de la Banque.
Pour tout appel d’offres international, un avis général sur les travaux
inclus dans le projet sera publié dans le JOUE ainsi que pour un petit
nombre de marchés pour les travaux les plus importants.
Rural Impulse Microfinance Fund

Beneficiary: Incofin
M. Loïc De Cannière, Managing Director
Sneeuwbeslaan 20, 2610 Wilrijk
Belgium
Description: A microfinance fund to be incorporated in Luxembourg with an objective

to make debt and/or equity investments in microfinance institutions
which provide financial services to the rural poor.
Objectives: The fund’s key objective is to provide local currency financing to rural
microfinance institutions operating in developing countries and to ensure
the capital preservation and a reasonable return for the shareholders. The
first closing will include BIO, FMO, IFC, Incofin and KBC Private
Equity.
Sector: Services.
Microfinance sector.
Proposed EIB finance: Up to EUR 3 million (USD 3.5 million).
Total cost: Up to EUR 30 million (USD 36 million).
Environmental aspects: Investee companies to meet minimum environmental standards to be
specified and monitored by the Manager of the holding company.
Fauji Cement Project

Beneficiary: Fauji Cement Company Ltd (FCCL) belongs to the Fauji Foundation
Group. FCCL is a long-time leader in the cement-manufacturing
industry. Fauji Group is a conglomerate of several industrial and
commercial projects in various sectors, including energy, gas supply,
fertilizer, cement and chemicals.
Location: Pakistan - Asia and Latin & Central America.
The plant, based in Jhang Bahtar, Attock district, is located in the
Province of Punjab.
Description: The project concerns the construction and operation of a new production
line on an existing site. The capacity of some 2 million tons per annum is
dedicated to supply the domestic market and export to Afghanistan.
Objectives: The local production of cement will valorise domestic raw materials
(limestone and clay) , and contribute directly to the industrial
development and the economic diversification of a particularly poor rural
region. An increase in cement production capacity should assist Pakistan
to maintain a low level of cement prices, which in turn should facilitate
critical infrastructure development, the ongoing reconstruction after the
October 2005 earthquake and sustained export to Afghanistan.
Furthermore, the less developed North West Frontier province of
Pakistan is likely to benefit the most in terms of availability of cement for
developing the physical infrastructure and in turn improving livelihoods
and employment opportunities in the province. As such the project is
consistent with the EU strategy targeting poverty alleviation and
infrastructure development in Pakistan.
Sector: Industry.
Manufacturing
Proposed EIB finance: USD 85 million.
Total cost: Project cost is estimated at about USD 232 million.
Environmental aspects: An EIA is being performed by an independent consultant. The plant is
designed with state-of-the art cement production technology, which will
reduce both energy consumption and atmospheric emissions levels, in
line with usual international standards.
Procurement: The promoter utilises procurement procedures, which are usual in the
industry (international enquiry followed by price negociation) and
normally in the best interest of the project. EU procurement Directives
are not applicable.
Capmezzanine Maroc
Beneficiary: Accès Capital Atlantique S.A., une filiale de la Caisse de Dépôt et de
Gestion marocaine.
Location: Morocco - Mediterranean countries.
Description: L’opération consiste en une prise de participation par la Banque, sur les
ressources budgétaires de l’Union européenne (capitaux à risques gérés
par la Banque en vertu du règlement MEDA II) dans un fonds
d’investissement nouvellement créé.
Objectives: Le fonds aura pour objet d'investir en fonds propres et quasi-fonds
propres (financements mezzanines) dans des petites et moyennes
entreprises domiciliées et exerçant leur activité au Maroc. Le fonds
investira dans entreprises opérant dans tous les secteurs d’activité à
l’exception de l’immobilier, de l’agriculture, des matières premières, de
la défense et des autres secteurs traditionnellement exclus par la BEI.
Sector: Services.
Intermédiation financière et fonds d’investissement.
Proposed EIB finance: Le montant de l’investissement de la Banque n’excèdera pas l’équivalent
en dirhams marocains (MAD) de 6 M EUR ou, si ce montant est
inférieur, 25% du capital du fonds.
Total cost: Le fonds aura un capital minimum de 250 M MAD au premier closing
(environ 22,5 M EUR). L’objectif des promoteurs est de parvenir au
second closing à un capital de 500 M MAD (45 M EUR).
Environmental aspects: N/A
Procurement: N/A
UPI Banka d.d Credit Line

Beneficiary: UPI Banka d.d., Sarajevo
Location: Bosnia and Herzegovina - South-East Europe.
Description: Credit line for financing of limited scale projects of small and medium-sized
Objectives: Make available access to long-term funds at affordable interest rates to sectors of
economy with least availability of financing – small and medium size enterprises
and local authorities.
Proposed EIB
EUR 25 million.
finance:
Environmental The financial intermediary will be requested to ensure compliance of the sub-
aspects: projects with relevant national and EU environmental laws, as appropriate.
Procurement: The financial intermediary will be requested to ensure compliance of the sub-
projects with EU directives, in particular for the award of public sector contracts,
as may be appropriate.
EIB / Capital Investment Line III

Beneficiary: African Banking Corporation Zambia Limited
Barclays Bank of Zambia Limited
Finance Bank Zambia Limited
Investrust Bank Limited
Stanbic Bank Zambia Limited
Standard Chartered Bank Zambia PLC
Location: Zambia - Africa, Caribbean, Pacific countries + OCT.
Description: A credit line to selected commercial banks and leasing companies for
medium-term on-lending / leasing to a wide range of small and medium
sized enterprises in Zambia.
Objectives: To promote the private sector in all sectors eligible under the Cotonou
Agreement.
The private sector, in particular industry; agro-industry; commercial
agriculture, tourism, mining, energy, water and sewerage, transport and
telecommunications, services linked to these sectors.
Proposed EIB
EUR 40 million
finance:
Environmental All beneficiaries to satisfy EIB environmental requirements.
aspects: Environmental summary fiches to be supplied for all allocations.
Procurement: Standard EIB procurement procedures for credit lines will be applied.
B. EIB Funding - breakdown by regions and

countries
EIB FINANCING
Region Current year Past 5 years
(in EUR) (in EUR)
European Union 9,774,129,601 198,426,374,651
Article 18 0 1,054,587,326
South-East Europe 541,313,307 6,974,537,829
Mediterranean 0 6,672,257,956
countries
Africa, Caribbean, 93,505,053 2,411,969,030
Pacific countries +
OCT
South Africa 25,000,000 635,000,000

Asia and Latin & 0 1,994,180,969
Central America
Commonwealth of 0 85,000,000
Independent States
Total Amount 10,433,947,961 218,253,907,761

Breakdown by country
List of loans
Country Current year Past 5 years

(in EUR) (in EUR)
ALA Countries 0 0
Andean Countries 0 40,000,000
Argentina 0 0
Bangladesh 0 0
Bolivia 0 0
Brazil 0 463,924,180
Brunei Darussalam 0 0
Central America 0 65,590,355
Chile 0 0
China 0 500,000,000
Colombia 0 100,000,000
Costa Rica 0 0
Ecuador 0 40,000,000
El Salvador 0 0
Guatemala 0 0
Honduras 0 20,000,000
India 0 50,000,000
Indonesia 0 99,539,284
Korea, Republic of 0 0
Lao People's Dem. 0 42,119,773

Rep.
Macau 0 0
Malaysia 0 0
Maldives 0 50,000,000
Mexico 0 70,000,000
Mongolia 0 0
Nepal 0 0
Nicaragua 0 0
Pakistan 0 78,603,382
Panama 0 40,812,995
Paraguay 0 0
Peru 0 40,000,000
Philippines 0 65,591,000
Regional - Latin 0 0
America
Singapore 0 0
Sri Lanka 0 160,000,000
Thailand 0 0
Uruguay 0 0
Venezuela 0 0
Vietnam 0 68,000,000
West Indies 0 0
Yemen 0 0
Breakdown by country
List of loans
Country Current year Past 5 years

(in EUR) (in EUR)
ACP States 0 201,466,000
ACP States and OCT 0 0
Africa 3,000,000 139,249,950

Angola 0 0
Anguilla 0 0
Antigua and Barbuda 0 0
Aruba 0 0
Bahamas 0 0
Barbados 0 9,750,000
Belize 0 3,737,000
Benin 0 0
Bonaire (Neth. Antilles) 0 0
Botswana 0 14,500,000
British Antarctic 0 0
Territory
British Indian Ocean 0 0

Territory
Burkina Faso 0 33,250,000

Burundi 0 0
Cameroon 0 113,499,999
Cape Verde 0 33,000,000
Caribbean 45,000,000 53,000,000
Cayman Islands 0 0
Central Africa 0 20,300,000

Central African Rep. 0 0
Chad 0 2,000,000
Comoros 0 0
Congo 0 13,000,000
Congo (Dem. Rep.) 0 0
CuraĂp.) 0 0
CuraĂ§ao (Neth. 0 0
Antilles)
Djibouti 0 0
Dominica 0 0
Dominican Republic 0 107,230,000
East Africa 0 31,800,000

Equatorial Guinea 0 0
Eritrea 0 0
Ethiopia 0 116,500,000
Falkland Islands 0 0
Fiji 0 35,500,000
French Polynesia 0 0
French South/Antarc 0 0
Territory
Gabon 7,000,000 32,000,000
Gambia 0 0
Ghana 0 140,500,000
Grenada 0 5,000,000
Guinea 0 12,000,000
Guinea-Bissau 0 0
Guyana 0 0
Haiti 0 0
Indian Ocean 0 2,000,000
Ivory Coast 0 0
Jamaica 0 35,000,000
Kenya 0 103,659,140
Kiribati 0 0
Lesotho 0 0
Liberia 0 0
Madagascar 0 18,000,000
Malawi 0 300
Mali 0 0
Mauritania 0 53,000,000
Mauritius 0 87,200,000
Mayotte 0 0
Montserrat 0 0
Mozambique 0 200,800,000
Namibia 0 4,000,000
Netherlands Antilles 0 0
New Caledonia 0 0
Niger 0 13,000,000
Nigeria 0 223,966,941
OCT 0 0
Pacific 2,000,000 22,400,000
Papua New Guinea 0 0
Pitcairn 0 0
Rwanda 7,000,000 3,000,000
Saba (Neth. Antilles) 0 0
Saint Kitts and Nevis 0 0
Saint Lucia 0 0
Samoa 0 4,350,000
SĂŁo TomĂ© e 0 0
Principe
Senegal 0 25,000,000
Seychelles 0 0
Sierra Leone 0 0
Solomon Islands 0 3,500,000
Somalia 0 0
South Sandwich 0 0
Islands
Southern Africa 0 10,500,000
St Vincent & Grenad. 0 8,300,000
St. Eustatius (Neth. 0 0

Antilles)
St. Helena 0 0
St. Maarten (Neth. 0 0
Antilles)
St. Pierre and 0 0
Miquelon
Sudan 0 0
Suriname 0 0
Swaziland 0 44,750,000
Tanzania 0 35,000,000
Togo 0 0
Tonga 0 0
Trinidad & Tobago 0 33,000,000
Turks & Caicos Islands 0 0
Tuvalu 0 1,000,000
Uganda 0 62,000,000
Vanuatu 0 0
Virgin Islands (British) 0 0
Wallis and Futuna 0 0

Islands
West Africa 0 83,860,000
Zambia 29,505,053 217,100,000
Zimbabwe 0 0
C. COTONOU AGREEMENT
• Presentation
• Composition
• List of ACP Countries
• Beginning of ACP-EU cooperation
• Regime of Association and the Yaoundé Conventions
• The Lome Conventions
• From Lome I to Lome IV
• Review of Lome IV
• The Cotonou Agreement
• Economic Partnership Agreements (EPA)
• Innovations of the Cotonou Agreement
• Government - civil society Partnership
• ACP Summit
• Objectives
• Important Dates
PRESENTATION
The African, Caribbean and Pacific Group of States (ACP) is an organisation created by the
Georgetown Agreement in 1975. It is composed of African, Caribbean and Pacific States
signatories to the Georgetown Agreement or the Partnership Agreement between the ACP and
the European Union, officially called the "ACP-EC Partnership Agreement" or the "Cotonou
Agreement".
Objectives
The ACP Group´s main objectives are :
• sustainable development of its Member-States and their gradual integration into the
global economy, which entails making poverty reduction a matter of priority and
establishing a new, fairer, and more equitable world order ;
• coordination of the activities of the ACP Group in the framework of the implementation
of ACP-EC Partnership Agreements;
• consolidation of unity and solidarity among ACP States, as well as understanding
among their peoples ;
• establishment and consolidation of peace and stability in a free and democratic society.
Composition
The ACP Group consists of 79 Member-States, all of them, save Cuba, signatories to the
Cotonou Agreement which binds them to the European Union: 48 countries from Sub-
Saharan Africa, 16 from the Caribbean and 15 from the Pacific.
List of ACP Countries
Angola - Antigua and Barbuda - Belize - Cape Verde - Comoros - Bahamas - Barbados - Benin
- Botswana - Burkina Faso - Burundi - Cameroon - Central African Republic - Chad - Congo
(Brazzaville) - Congo (Kinshasa) - Cook Islands - Cte d'Ivoire - Cuba - Djibouti - Dominica -
Dominican Republic - Eritrea - Ethiopia - Fiji - Gabon - Gambia - Ghana - Grenada - Republic
of Guinea - Guinea-Bissau - Equatorial Guinea - Guyana - Haiti - Jamaica - Kenya - Kiribati -
Lesotho - Liberia - Madagascar - Malawi - Mali - Marshall Islands - Mauritania - Mauritius -
Micronesia - Mozambique - Namibia - Nauru - Niger - Nigeria - Niue - Palau - Papua New
Guinea - Rwanda - St. Kitts and Nevis - St. Lucia - St. Vincent and the Grenadines - Solomon
Islands - Samoa - Sao Tome and Principe - Senegal - Seychelles - Sierra Leone - Somalia -
South Africa - Sudan - Suriname - Swaziland - Tanzania - Timor Leste - Togo - Tonga -
Trinidad and Tobago - Tuvalu - Uganda - Vanuatu - Zambia - Zimbabwe
Overview
The Group was originally created with the aim of coordinating cooperation between its
members and the European Union. Its main objective was to negotiate and implement, together,
cooperation agreements with the European Community.
Over the years, the Group extended its range of activities. Since then, cooperation among its
members has gone beyond development cooperation with the European Union and covers a
variety of fields spanning trade, economics, politics and culture, in diverse international fora
such as the World Trade Organisation (WTO).
Beginning of ACP-EU cooperation
Cooperation between the European Union and the ACP Group began in 1975 with the First
Lome Convention but the origin of this type of partnership dates back to the birth of Europe
itself as an organised regional entity. In fact, as soon as the Treaty of Rome was signed in 1957,
it created an avenue for cooperation with the Overseas Countries and Territories (OCTs) of the
six signatory countries: Germany, Belgium, France, Italy, Luxembourg and Holland, i.e.
essentially West and Central African countries with ties to France.
Regime of Association and the Yaoundé Conventions
A "Regime of Association" was devised in 1957 and endowed with resources from the first
European Development Fund (EDF). In 1963 and 1969 18 African States and their six
European counterparts signed the First and Second Yaoundé Conventions, supported by
resources from the 2nd and 3rd EDF respectively. The agreements were geared mainly towards
financial, technical and trade cooperation, primarily in the sectors of economic and social
infrastructure.
The United Kingdom´s accession to the European Community in 1973 paved the way for the
extension of the Europe-Africa cooperation to the Commonwealth countries, whether African,
Caribbean, or Pacific. Later on, Spain´s accession would also have an impact on the
membership of the ACP Group.
The Georgetown Agreement, the Group´s fundamental charter, which was signed in 1975 at the
time the First Lome Convention came into force, laid down the rules for cooperation between
the countries of three continents, the main link being shared aid from the European Community.
The Lome Conventions
With the signature of the first Lome Convention in 1975, the number of signatory countries rose
to 46 on the ACP side and 9 on the European side. Lome II was signed by 58 ACP States in
1980 and Lome III by 65 ACP countries and 10 European States in 1985.
These three Conventions, each spanning a five-year period, were accompanied by the 4th, 5th
and 6th EDFs. These were implemented until 1990, year in which Lome IV was signed, during
the negotiation of which events occurred that would rock Central and Eastern Europe as
symbolized by the fall of the Berlin Wall.
ACP-EU cooperation has been able to keep the lid on non-politicization. The most notable
achievement of ACP-EU cooperation is that it introduced a new type of relationship between
rich and poor countries based on solidarity and partnership, an independent involvement in
political arrangements which can boost bilateral relations.
The Lome conventions granted non-reciprocal trade preferences to ACP countries. They
included many more innovations than the Yaoundé Conventions. For example, agricultural
sectoral programmes first appeared in the Lome Conventions. In addition, a compensatory
mechanism was created under Stabex to offset losses in export earnings due to price
fluctuations.
From Lome I to Lome IV
Improvements were added from one convention to the next without causing any major
disruptions. Lome II saw the appearance of Sysmin, a mechanism similar to Stabex, but for
mining products. The negotiation of that convention, signed in 1984, in the middle of a decade
characterised by a quest for viability and efficiency, was marked by the calling into question of
the effectiveness of aid. Emphasis was placed on food self-sufficiency for ACP countries.
The expression "political dialogue", or policy dialogue, made its appearance in Lome III, but
political dialogue would only really be introduced in Lome IV. Negotiated during the turmoil of
1989, that Convention enshrined respect for Human Rights as a fundamental clause.
In the meantime, the structural adjustment established by the Bretton Woods Institutions had
been supported by Europe and was therefore taken on board in Lome IV. The major innovation
of that Agreement still remains its duration. Signed for a 10-year period, it included two 5-year
Financial Protocols and the 7th and 8th EDFs. Lome IV was signed by 68 ACP countries and 12
EU Member-States.
The negotiation of the second financial protocol led to more changes than had been anticipated.
The European public displayed a certain lack of interest in cooperation at the end of the Cold
War. The clause on respect for Human Rights and democratic principles was by then an
essential aspect of cooperation, and measures for the suspension of aid made their appearance.
Review of Lome IV
Lome IV bis, which was signed in 1995, saw the number of signatory countries move to 70 for
the ACP and 15 on the EU side, and distinguished itself by the importance accorded to
decentralised cooperation and the role of civil society.
Twenty years of Europe-ACP cooperation and the consolidation of solidarity among ACP
countries had forged a cohesive bond which made the breaking up of the ACP bloc or any
weakening of the ACP entity quite unthinkable.
The Cotonou Agreement
Negotiation of the Cotonou Agreement was fraught with obstacles and took place in the midst
of a period of global orthodoxy. The benefits and opportunities of the liberal economic system
are undeniable but the constraints and lack of insight inherent in some economic policies
imposed in different places have been counter-productive and resulted in the failure of the
World Trade Organisation´s Ministerial Conference in Seattle, which enabled all involved to
become more aware and to include a social agenda in economic adjustments.
It is in the wake of this transformation that the Cotonou Agreement was signed by 77 ACP
countries on 13 June 2000. Cuba, candidate to the Agreement was, unfortunately, unable to sign
it. Nonetheless, the ACP Group decided to include Cuba, in the hope that the problems which
prevented its accession to the ACP-EU partnership would be resolved in the near future.
The last country to become a member of the ACP Group was Timor Leste. It is affiliated with
the Pacific region. It became an ACP Member-State in 2003, shortly after its independence.
The Cotonou Agreement, by its very existence, represents a significant success for the ACP
Group. It was forged from the Group´s determination to maintain its solidarity - a solidarity
which certainly convinced the ACP States´ European partners. In addition, the Agreement,
despite not meeting all the ACP demands, took on board their fundamental concerns.
First of all by its duration - twenty years- sufficient time to enable ACP Member-States to get
onto the road to development and, especially, to become smoothly integrated into the global
market. Indeed, the Agreement envisages the removal of non-reciprocal trade preferences
granted ACP countries, but only after a long transition period. In fact, Economic Partnership
Agreements (EPA) will be negotiated between the European Union and ACP countries between
September 2002 and the end of 2007, following which they will come into force.
Economic Partnership Agreements (EPA)
The ACP-EU Economic Partnership Agreements (EPA) are supposed to be special trade
agreements which, like the Cotonou Agreement that spawned them, aim mainly to ensure the
development of ACP countries and their gradual integration into the global economy. They
must be compatible with the rules of the World Trade Organisation. In addition to the gradual
nature of any trade liberalisation among ACP countries, the EPAs must fulfill a second
criterion, i.e. asymmetry, which means that they must take account of the difference in the
levels of social and economic development between the European Union and ACP countries. At
the same time, the European Union will assist ACP countries and businesses to implement the
necessary structural and macro-economic reforms, by building their capacities so as to enable
them to better cope with the challenges of competition and globalization.
This transitional phase of ACP-EU trade cooperation from 2000-2007 required the approval of
the WTO, which was hard-won. In November 2001, the determination of the ACP countries,
bolstered by the unstinting support of the European Union at the 4th WTO Ministerial
Conference, enabled them to claim a decisive victory, perhaps for their future: they obtained a
WTO waiver for the trade chapter of the Cotonou Agreement.
On that occasion, the ACP Group stood out as one of the emerging Groups from the developing
world. It was firm but realistic, opting resolutely for free trade while remaining determined to
protect its vital interests.
Innovations of the Cotonou Agreement
Apart from its relatively long duration (20 years instead of 5 years as for Lome I, II and III, and
10 for Lome IV), the main innovations of the Cotonou Agreement derive from the fact that it
incorporates civil society and the private sector as new actors on the political level. They will,
therefore, no longer be mere beneficiaries of cooperation, but feature among the managers,
insofar as permitted by the prerogatives of governments, which are solely responsible for
determining the main development policies for their countries.
The major options within the Cotonou Agreement were not imposed on the ACP but constitute
a deliberate choice and are part of the ongoing development of the Group´s member-countries,
be it the choice of economic liberalisation or a stronger affirmation of political dialogue. This
involves the democratization of ACP countries and the involvement of new actors in the
implementation of cooperation.
Almost all ACP member-countries had already undergone a political renewal prior to the
signing of the Cotonou Agreement, and although some countries are still experiencing problems
like civil war, they are increasingly few in number. The rise in democracy is seen particularly in
the progressive development of the ACP-EU Joint Parliamentary Assembly, organ of
cooperation between the European Parliament and parliaments of ACP countries, into a true
Joint Parliamentary Assembly of democratically-elected parliamentarians, in keeping with the
spirit and letter of the Cotonou Agreement.
Government - civil society Partnership
The serious economic crisis at the end of the 80s and 90s which saw civil society in ACP
countries playing an increasingly active role in the fight against poverty, gave rise, inter alia, to
dialogue between social actors and governments. Governments felt the need to harness the
dynamism of all sectors of the society primarily with a view to reducing and ultimately
eradicating poverty. As a result, as soon as the Cotonou Agreement was signed, the ACP Group
took steps to encourage the organisation and strengthening of civil society and the ACP private
sector. An ACP Civil Society Forum and a Private Sector Forum were set up by the ACP
Group. These sectors now serve as mechanisms for implementing cooperation.
Twenty-five years of cooperation have demonstrated that, albeit enabling developing countries
to survive, aid cannot create development. Trade, by contrast, is a determining factor of
development. The Cotonou Agreement promotes the strengthening of real economic partnership
through new trade agreements, among other things. The Group has been making tremendous
efforts to attract foreign investment and has been trying, therefore, to establish a favourable
legal, economic and political environment to achieve that objective.
ACP Summits
Changes on the world scene at the end of the 80s, which saw the end of ideological
bipolarisation, the economic problems of that era, and other factors prompted ACP Heads of
State and Government to meet, for the first time, in Libreville, Gabon, in November 1997. At
that 1st Summit, they laid down the guidelines for strengthening the Group by assigning more
specific roles to the ACP organs and deciding to reform the General Secretariat by transforming
it from a mere organ of support to the political bodies into an executive institution. The Group
also decided to extend consultations among its member-countries to various fora such as the
United Nations Organisation.
The 2nd ACP Summit, held in Santo Domingo, Dominican Republic, in November 1999, gave
even more precise directives for intra-ACP cooperation and broadening the scope of the Group
which, while maintaining its privileged partnership with the European Union, needed to develop
a dialogue with other blocs and make its voice heard in the new economic and geopolitical
context. The affirmation of the ACP Group´s presence at the Ministerial Conferences of the
World Trade Organisation, for example, (Doha, November 2001, and Cancun, September 2003)
is the logical consequence of the Summit directives and their subsequent implementation.
The 3rd Summit of ACP Heads of State and Government held in Nadi, Fidji, in July 2002,
established guidelines in view of the negotiation of future ACP-EU Economic Partnership
Agreements, with a view to positioning the ACP Group in the current economic and
geopolitical context.
OBJECTIVES
The objectives of the ACP Group, as defined by the Georgetown Agreement, are to :
• Promote a new, fairer and more equitable world order ; ;
• Promote and strengthen solidarity among ACP States, and understanding between ACP
peoples and governments ;
• Contribute to the development of important and close economic, social and cultural
relations among developing countries and develop cooperation among ACP States in the
areas of Trade, Science and Technology, Industry, Transport, Education, Training and
Research, Information and Communication, the Environment, Demography and Human
Resources ;
• Contribute to the promotion of regional, inter-regional, and effective intra-ACP
cooperation among ACP States, generally among developing countries, and strengthen
the regional organisations of which they are members ;
• Define common positions of ACP States vis-à-vis the EEC in areas covered by the
Lome Convention and on relevant issues debated in international fora, which may
influence the implementation of the Lome Convention ;
• Ensure achievement of the objectives of the Lome Convention ; and
• Coordinate the activities of ACP States in the framework of the application of the Lome
Convention.
IMPORTANT DATES
1957
Signing of the Treaty of Rome which established the European Community, and contains a
section on cooperation with Overseas Countries and Territories (OCTs).
Creation of the "Regime of Association" with resources from the 1st European Development
Fund (EDF).
1963
Signing of the 1st Yaoundé Convention by 18 African States and 6 European countries,
supported by resources from the 2nd EDF. That Agreement, like the 2nd Yaoundé Convention,
was designed mainly for financial, technical and trade cooperation primarily in the sectors of
economic and social infrastructure.
1969
Signing of the 2nd Yaoundé Convention supported by the 3rd EDF.
1973
Accession of the United Kingdom to the European Community opens the way for the extension
of Europe-Africa cooperation to Commonwealth countries in Africa, the Caribbean and the
Pacific.
1975
Signing of the Georgetown Agreement - the founding Charter of the Group. It defines the rules
governing cooperation among the countries of the 3 continents whose main link was the sharing
of aid from the European Community.
Entry into force of the Lome Convention - signed by 46 ACP countries and 9 European States
- which marks the beginning of cooperation between Europe and the ACP Group. The
Convention grants non-reciprocal trade preferences to ACP countries and establishes Stabex:
compensatory mechanism for loss of export earnings due to price fluctuations. It is coupled
with the 4th EDF.
1980
Signing of the 2nd Lome Convention by 58 ACP countries (coupled with the 5th EDF).
Appearance of Sysmin : mechanism similar to Stabex, created for mining products.
1985
Signing of the 3 rd Lome Convention by 65 ACP countries and 10 European States, (6th EDF).
Emphasis is placed on food self sufficiency in ACP countries.
1990
Signing of the 4th Lome Convention which introduces a political dimension to cooperation.
1995
Signing of the 4th Lome Convention bis by 70 ACP countries and 15 European countries. The
Convention emphasizes the importance of decentralised cooperation and the role of civil
society.
November 1997
1st ACP Summit in Libreville, Gabon, to consider how to strengthen the Group.
November 1999
2nd ACP Summit in Santo Domingo, Dominican Republic, with the theme: "On the road to the
3rd millennium".
23 June 2000
Signing of the Cotonou Agreement by 77 ACP countries, which provides for the abolition of
non-reciprocal trade preferences after a transition period of ACP-EU trade cooperation. During
that time, from September 2002 to the end of 2007, Economic Partnership Agreements (EPAs)
will be negotiated between the European Union and ACP States.
November 2001
The ACP States obtain a waiver from the rules of the World Trade Organisation (WTO) on the
trade chapter of the Cotonou Agreement at the 4th WTO Ministerial Conference.
July 2002
3rd ACP Summit in Nadi, Fiji, with the theme: "ACP Solidarity in a globalized world". The
Summit defined guidelines for the Group in view of the negotiations for the Economic
Partnership Agreements (EPA).
September 2002
Start of negotiations for Economic Partnership Agreements (EPA) in Brussels.
June 2003
1st meeting of ACP Ministers of Culture
October 2003
Start of EPA negotiations with the regions of West and Central Africa.
February 2004
Start of EPA negotiations with the regions of East and Southern Africa
Source: ACP Secretariat Website
“D” EIB authorised Financial Institutions
ALA - Countries Asia and Latin America

Central America
BANCO CENTROAMERICANO DE INTEGRACION ECONOMICA-BCIE
Apartado Postal 772
Tegucigalpa, M.D.C.
Honduras
Carlos WATSON, Jefe
Brazil
Banco Itaú BBA S.A.
Avenida Paulista 37, 18° andar
CEP 01311-902 Saõ Paulo
Brazil
Maria Estela FERRAZ DE CAMPOS, Financiamento de Projetos
Brazil
UNIBANCO - União de Bancos Brasileiros S.A.
Av. Eusébio Matoso, 891 - 9th Floor, Pinheiros
CEP 05423-901 São Paulo
Brazil
Marcelo FANGANIELLO, Funding Manager - Capital Markets Unit
India
Rabo India Finance
Forbes Building, 2nd Floor
Charanjit Rai Marg, Fort,
Mumbai 400 001
India
Ashutosh Maheshvari, Executive Director Financial Sector Group
Indonesia
Rabobank International Indonesia
Plaza 89, 9th Floor
Jl. H.R. Rasuna Said, Kav. X-7/6
Jakarta 12940
Indonesia
Sani Effendy, Vice President Corporate Finance
Andean Pact
CORPORACION ANDINA DE FOMENTO-CAF
Av. Luis Roche
Torre CAF, Altamira
P.O. Box: Altamira 69011
Caracas
Fernando INFANTE, Director Financiamiento Multilateral y de Banca Comercial
Philippines
ABN AMRO
18/F LKG Tower
6801 Ayala Avenue,
1286 Makati City
Philippines
Filomeno G. Yaptinchay, Vice President, Financial Markets
Philippines
Development Bank of the Philippines
Sen. Gil. J. Puyat Avenue,
Corner Makati Avenue
Manila
Philippines
Ignacio C. Serrano, Senior Assistant Vice President, Fund Sourcing
Sri Lanka
The Socialist Republic of Sri Lanka
Ministry of Policy Development and Implementation
The Secretariat (3rd Floor), PO Box 277
Source: Website EIB
Offices of the W.S.U. General Secretary
H-1026 Budapest, Garas utca 22, Tel: +36 (1) 315 10 59

mailto: eurowif@t-online.de

GLOBAL EIB LOANS FOR SMEs

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

GLOBAL EIB LOANS FOR SMEs

Uploaded by

Copyright:

Available Formats

W.U.S.

WORLD UNION OF SMALL AND MEDIUM ENTERPRISES

Project Financing of Small and Medium Enterprises

2. Global South Lending

This Report contains the following information:

a) EIB’s SMEs Investment Support

3.2 Conclusions and Recommendations for actions

1. Supporting investment by Small and Medium sized Enterprises (SMEs) is a

• EIB lines of credit for SMEs arranged with local banks

b) In particular, the Bank supports EU co-operation policies through:

• a wide range of financial products (loans, equity, guarantees or quasi-equity

d) African, Caribbean and Pacific states:

Private sector development is considered as essential for economic growth. This is a

e) Asia and Latin America (ALA)

1. EIB lending in Asia and Latin America (ALA) started in 1993

• Bolivia, Colombia, Ecuador, Peru, Venezuela - Andean Community

a) Projects with a total investment above EUR 25 million can be financed

1. Financing facilities (overlook)

1.1 Individual loans

1.2 Credit Lines (so-called EIB Global Loans)

1.3 Venture capital

2. Structured Finance Facility (SFF)

3. Credit Lines (so-called EIB Global Loans)

3.2 For what projects?

3.3 What type of investment?

3.5 Loan period, interest rates, repayment, currencies, guarantees,

3.6 How to apply?

Directly to one of the intermediary banks and financing institutions, which

4. Conditions of EIB Lending

a) The EIB provides long-term loans, running from approximately 4 to 20 years

5. European Investment Fund – Venture Capital and Guarantees

a) venture capital funds,

6.1 Break down over all regions

Region Current year Past 5 years

a) Asia: Bangladesh, Korea Republic of, Malaysia, Nepal, Singapore, Thailand.

Andean Countries EUR 40,000.000,-

7. Global Loans and Guarantees for SME Financing – South Lending

Subject a) Global Authorisation for Microfinance 2001

Subject b) BNDES Global Loan

Subject d) COFIDES Global Guarantee Framework Loan

Subject e) DFCC Global Loan II

Subject f) Access Microfinance Holding

Subject h) Rwanda Global Loan II - Private Sector Support

Subject i) First Bank of Nigeria

Status Approved - 21/11/2006

Subject k) Pacific Islands Financing Facility II (PIFF II)

Subject l) TVCabo Multimedia

Description The project concerns the construction of a broadband and bi-

Subject n) I & P Capital Fund II

Subject o) PRO-PME II Global Loan

Subject q) Private Enterprise Finance Facility

Subject r) Rural Impulse Microfinance Fund

8. EIB Authorised Financial Institutions for South Lending programmes

A list of these Financial Institutions is contained in ANNEX “D” to this Report.

1.1 Not enough Global Loans for SMEs

EIB Lending Asia by Sector (1994 bis 2004)

In cases where EIB is the sole financier, more information during

2. Recommendations for Actions

2.1 The SMEs Conference may wish

The Governing Body WASME may wish

2.2 The Secretary General W.S.U.

1. EIB website http://www.eib.europa.eu

A. Global Loans for SME 2000 – 2007 under appraisal,

Global Autorisation for Microfinance 2001