The convention at work

EDF

Following the favourable opinion delivered by the EDF Committee, the Commission has decided that the projects listed below should be financed.

Western Samoa

Afulilo Hydropower Plant
6th EDF
Grant: Ecu 8 189 000

The project concerns the construction of a 4MW hydropower station in the Afulilo basin of Western Samoa’s main island of Upolu, which will generate 24GWh a year. The project aims to cover the projected increase in demand of electrical energy for about 10 years and to reduce dependence on oil imports for existing diesel generating capacity. This hydro-electric installation will generate the electricity for one of the W. Samoan Government’s most important socioeconomic development projects: the Rural Electrification Programme.

Project implementation involves the construction of the plant and the supply of equipment, accompanying actions such as consultancy for preliminary studies, engineering design, site supervision, technical assistance and institutional support for the Electric Power Corporation (EPC). Funds for many of these accompanying actions have been earmarked and committed by various external aid agencies.

Togo

Village Water Supply programme in the Savanes and Kara regions
5th and 6th EDF
Grant: Ecu 2 475 000

Togo is giving priority to water supplies in rural areas, and has set itself the goal of providing supplies of drinking water (20 litres per head per day) for rural populations estimated at 2.5 million. Around 50% of needs are currently being met.

The project fits in with this priority and will seek to provide a supply of water for approximately 75 000 people in the Kara and Savanes regions of northern Togo from 200 boreholes and 20 springs. It is in line with the aims of the 6th EDF indicative programme - improving the living conditions of the rural populations and increasing their ability to provide for themselves.

ACP States

Improvement of production and the marketing of ACP products on external markets
6th EDF
Grant: Ecu 4 628 000

The achievement of the European single market and the likely opening up of East European countries to a market economy are certain to bring about an increase in international demand. It was with this in mind that a project was devised to provide ACP exporters of tropical fruit and out-of-season vegetables with the technical and commercial assistance which they need in order to adapt themselves without delay to the evolution of international demand and the new marketing techniques resulting, for the most part, from the intensive concentration witnessed in the field of distribution.

The project will be run by the COLEACP and will provide ACP producers with:

- advanced professional training,
- a permanent source of commercial and technical information,
- assistance at both production and marketing levels,
- continuous professional liaison with European trading partners,
- systematic investigation into diversifying products and markets. c,

EIB

Mozambique: Ecu 6m for small and medium-sized projects

To finance capital investment projects by small and medium-sized enterprises and feasibility studies for SMEs in industry, agro-industry and tourism in Mozambique, the EIB is providing a conditional loan of Ecu 6 m from risk capital resources foreseen under the Third Lomonvention and managed by the Bank under mandate from the Community. The funds go to Banco de Mobique, the country’s central bank. BM itself, as well as all commercial banks in Mozambique, may use the proceeds of this global loan for financing SMEs.

To the extent BM and other banks are on-lending, in the form of conditional sub-loans, the EIB advanced the funds to BM for 20 years at 1%. Where the funds are used for financing feasibility studies, the terms are up to 10 years at 1%.

Global loans are open to financial institutions for on-lending in smaller amounts for economically, financially, technically and managerially sound investment projects. In 1989 the EIB granted 15 global loans totalling Ecu 52.1 m to financial intermediairies in African, Caribbean and Pacific Countries and Overseas Countries and Territories and approved 93 sub-loans totalling Ecu 34.2 m to final beneficiaires.

EMERGENCY AID

Liberia

The Commission has taken a number of decisions for emergency aid for the victims of the fighting in Liberia, amongst which.

Ecu 600 000 for Liberian refugees in Guinea, Ecu 400 000 for refugees in Sierra Leone and Ecu 650 000 for those affected in Liberia itself.

The aid will be implemented by the UN High Commission for Refugees, the League of Red Cross Societies and by Mcins Sans Frontis (Belgium).

The funds allocated will enable medical supplies to be purchased.

A further amount of Ecu 250 000 has also been allocated to the International Red Cross Committee for the supply of medicine and for essential goods and services.

Mozambique

In response to cholera and malaria epidemics in Mozambique in the past weeks, Ecu 300 000 has been allocated for the purchase, transport and distribution of vaccines and other medicines as well as for the sending out to Mozambique of medical teams from the Non-Governmental Organisation “Solidarieton il Terzo Mondo”.

A grant of Ecu 3 000 000 has also been approved as a contribution to humanitarian organisations aid programmes for the victims of the fighting and for the malnourished.

Za

Emergency aid totalling Ecu 450 000 has been granted for Angolan refugees in Zaire.

Somalia

In view of the consequences of the continuing conflict in the north of Somalia, which has resulted in extensive needs, and in particular an increasing need for medical care for the injured and civilian population living in the conflict zone, and following a new appeal to the Community from the International Committee of the Red Cross (ICRC), the Commission has decided to grant emergency aid, under Article 203 of the Lomonvention, amounting to Ecu 435 000 in favour of this population in Somalia.

This aid is to finance a medical and relief programme, including the air transport of medical goods and personnel, medical care, etc. and will be implemented by ICRC.

Angola

Aid totalling Ecu 3 000000 has been granted as a contribution to aid programmes being carried out by humanitarian organisations for the victims both of the present fighting and of the drought in Angola.

Cd’Ivoire

Ecu 260 000-worth of aid has been allocated for Liberian refugees who are pouring into Cd’Ivoire (particularly in the Guigio and Tabou provinces). The aid will be implemented by Mcins Sans Frontis (France) and will go to providing essential supplies,

Sudan

A grant of Ecu 5 000 000 has been approved as a contribution to humanitarian organisations’ aid programmes for the victims of the fighting in Southern Sudan.

FOOD AID

After favourable opinions by the Food Aid Committee, the Commission has taken the following decisions:

Food aid

VISITS

The President of Burundi visits the Commission

Major Pierre Buyoya, the President of the Republic of Burundi, met Manuel Marin, the Commission Vice-President responsible for development and fisheries, on 22 June 1990. President Buyoya was accompanied by Cyprien Mbonimpa, Minister of External Relations and Cooperation, Gilbert Midende, Minister of Energy and Mining, Salvador Sahinguvu, State Secretary for Planning, and Fridolin Hatungimana, State Secretary for Cooperation.

The talks provided an opportunity to take a general look at cooperation between the Community and Burundi and at the prospects for the implementation of LomV.

President Buyoya outlined his policy of National Unity and Development, which reflects the Government’s desire for social harmony and economic development, stressing the importance it attaches to decentralising development to the communes and to ensuring the awareness and involvement of the population of Burundi.

He said that he appreciated cooperation with the Community, explaining his Government’s guidelines for LomV programming and raising one or two specific matters of particular interest to his country - Stabex intervention this year, Community support for structural adjustment, the possibility of Community support for the communal intervention funds (which the Burundi Government is to set up to support decentralised economic development) and regional cooperation.

Commissioner Marin again affirmed that the Community supported the Burundi authorities’ drive for peace and development. The Commission, he said, welcomed the Burundi Government’s approach in the process of National Unity towards the adoption of a new constitution. He stressed that the new Convention indeed put top priority on the sort of decentralisation and involvement of the people enshrined in Burundi’s Charter of National Unity, so that the instrument of LomV should enable the Community to help implement this policy.

The Commissioner went on to assess the latest events on the international political scene and to see what effects they might have on the development of Africa, underlining the importance of respecting human rights and having an economic democracy to ensure the wellbeing of the population as a whole.: