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EIB financing

Burundi: ECU 4 million for small and medium-sized enterprises

The European Investment Bank is granting a global loan of ECU 4 m to support small and medium-sized projects in agro-industry, industry, fisheries, mining, tourism and in the transport sector in Burundi.

The funds, from risk capital resources, are advanced in form of a conditional loan, to Banque Nationale de Dloppement Economique (BNDE) for onlending (for 15 years at 2% per annum), for equity participations (up to 25 years at I %), or to finance studies (up to 10 years at 1 %)

The loan will be the fourth in Burundi under the Third Lomonvention.

Central African Republic: ECU 10 million for electricity supply

The EIB is providing ECU 10 m to finance the rehabilitation and extension of electricity supply facilities in Bangui, the capital of the Central African Republic.

The funds, from risk capital resources provided under the Third Lomonvention and managed by the EIB, are being advanced to the State, which will use ECU 6 m to participate in the equity capital increase of Soci d’Energie Centrafricaine (Enerca) and will onlend ECU 4 m to Enerca in the form of a convertible loan. To the extent that the loan is used to finance equity it is granted for 25 years at I %, to the extent that it will be onlent the terms are 20 years and 2 %.

The EIB’s contribution is part of a wider scheme to increase power generation and distribution, mainly by developing hydro-electric resources; it comprises the construction of a flood control dam, the rehabilitation of two hydroelectric power stations, the installation of a new 5MW thermal generating set, the expansion of the City of Bangui’s transmission and distribution networks and improvements to Enerca’s technical and administrative capacity.

Total cost for the overall scheme which is to be implemented between 1989 and 1992 is estimated at ECU 69 m. Financing also comes from the International Development Association (World Bank Group), the African Development Fund, France’s Caisse Centrale de Cooption Economique (CCCE), the Kuwait Fund and Enerca’s own resources.

Cd’Ivoire: ECU 46 million for energy and sewerage

In the framework of the global economic and financial reform programme undertaken by the Cd’Ivoire authorities, the European Investment Bank is providing ECU 46 m for electricity supply and for drainage and sewerage networks. The funds are made available under the Third Lomonvention and attract an interest subsidy from European Development Fund resources.

1) Energy Sector:

The Bank is lending ECU 30 million for 17 years at 5.60%, to the Republic of Cd’Ivoire for on-lending to Energie Electrique de Cd’Ivoire (EECI) to finance part of the country’s energy sector adjustment programme. Cd’Ivoire has committed itself to restructuring the energy sector whose financial needs are estimated at some ECU 290 m. The objectives of this programme are to improve operating efficiency and promote a more rational use of energy. The major ElB-financed components are the rehabilitation and maintenance of existing installations and the extension of the distribution network, to meet demand up to the mid-1990s. The programme is cofinanced by the World Bank and the African Development Bank, amongst others. Financing is also expected to come from Caisse Centrale de Cooperation Economique, Paris.

2) Drainage and sewerage system

The Republic of Cd’Ivoire is furthermore receiving ECU 16m for 17 years at 5.6%, to finance improvements to Abidjan’s drainage and sewerage system, mainly through the completion of the trunk sewer, the link-up of the port industrial zone, the installation of treatment works, and an ocean outfall for the disposal of waste water. The works will considerably improve the lagoon’s environment.

Madagascar: ECU 3.225 million for industrial fishing and fish-processing

The EIB is granting ECU 3.225 m to part-finance the replacement of three fishing trawlers and the modernisation of a shrimp-processing plant at Hell-Ville on the north-western coast of Madagascar.

The funds, from risk capital resources, are advanced to Peries de Nossi-BPNB), an important Madagascar-based private industrial group, in the form of an equity participation of ECU 425 000 (9.5 % of the capital), a shareholder’s advance of ECU I m at I %, and a conditional loan, of ECU 1.8m for 12 years at 4 %. PNB had already received a loan of ECU 5 m in 1983 from the EIB, from risk capital resources, for the acquisition of four fishing trawlers.

The total cost of the project is estimated at ECU 13.45 m; additional finance is expected to come from Caisse Centrale de Cooption Economique (Paris) and the International Finance Corporation (World Bank Group).

Nigeria: ECU 50 million for small and medium-sized enterprises

As part of its financing activities under the Third Lomonvention, the EIB has lent the Nigerian Industial Development Bank (NIDB) ECU 50 m for onlending to small and medium-sized enterprises in the industrial, agro-processing, mining and tourism sectors.

This global loan has been granted for a term of 14 years at a rate of 5.6% after deduction of an interest subsidy from the resources of the European Development Fund.

This operation is the third with NIDB: in 1978 and 1983 NIDB two global loans totalling ECU 65 m were granted, out of which 85 projects were financed.

Suriname: ECU 3 million for small and medium-sized enterprises

The European Investment Bank is granting a global loan of ECU 3 m to support small and medium-sized projects in industry, agro-industry, forestry, mining and tourism in Suriname.

The funds, from risk capital resources, are advanced in form of a conditional loan to Nationale Ontwikkelingsbank N.V. (NOB) for 15 years at 2%.

Global loans are advanced to development banks or other financial institutions who on-lend the funds in smaller amounts for investment projects appraised according to the ElB’s economic, financial and technical criteria.

Trinidad and Tobago: ECU 15 million in support of small and medium-sized enterprises

The European Investment Bank is providing ECU 15 m in support of small and medium-sized enterprises in the industrial, agro-industrial and tourism sectors in Trinidad and Tobago:

- a global loan of ECU 12 m from the Bank’s own resources for 15 years at 5.5% (after deduction of an interest rate subsidy from the European Developent Fund) is made available to Trinidad and Tobago Development Finance Company (TTDFC) for onlending to small and medium-sized companies,

- ECU 2.5 m from risk capital resources, are advanced to TTDFC for making equity participation in small and medium-sized enterprises, and

- ECU 500 000, also from risk capital resources, will be used for an equity participation in TTDFC, in the name of the European Community, it is the first equity participation in the name of the Community in a Caribbean ACP country’s development finance corporation.

The global loan is the fifth to TTDFC; out of the previous for loans 55 smaller-scale industrial and tourism ventures were financed.

Uganda: ECU 2 million for small and medium-sized entreprises

The European Investment Bank is granting a global loan of ECU 2 m to support small and medium-sized enterprises in the industrial, agroindustrial and tourism sectors in Uganda.

The funds, from risk capital resources, are advanced in form of a conditional loan for 15 years at 2% to Uganda Development Corporation (UDC) for onlending to the Development Finance Company of Uganda (DFCU).

UDC is a wholly government-owned holding company and, together with Commonwealth Development Corporation (London), DEG-Deutsche Gesellschaft fur Beteiligungen in Entwicklungslandern (Germany), and International Finance Corporation (World Bank Group) one of four equal shareholders in DFCU.