11.7.2001 Official Journal of the European Communities L 189/21 COMMISSION DECISION of 7 February 2001 on the State aid which the Netherlands intends to grant to China in the form of development assistance for the construction of a high-technology dredger (notified under document number C(2001) 333) (Only the Dutch text is authentic) (Text with EEA relevance) (2001/522/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having regard to Council Regulation (EC) No 1540/98 of 29 June 1998 establishing new rules on aid to shipbuilding (!), Having regard to Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (3, and in particular Article 7 thereof, Having called on interested parties to submit their comments pursuant to the provision(s) cited above and having regard to their comments (3), Whereas: I. PROCEDURE (1) By letter dated 17 August 1999 the Netherlands authori- ties notified the Commission of a development assis- tance they were planning to grant to China for the purchase of a 12 000 m* dredger. Further information was provided on 6 October and 16 December 1999. (2) By letter dated 20 March 2000 the Commission notified the Netherlands authorities of its decision to initiate the procedure laid down in Article 88(2) of the EC Treaty in respect of the aid. The Netherlands authorities submitted their comments to the Commission by letters from their Permanent Representative dated 26 May and 23 October 2000. (3)  The Commission's decision to initiate the procedure was published in the Official Journal of the European Communi- ties. The Commission invited interested parties to submit their comments on the aid in question. OJ L 202, 18.7.1998, p. 1. ’) O] L 83, 27.3.1999, p. L. O] C 148, 27.5.2000, p. 14. (4) The Commission did not receive any comments from interested parties. II. DETAILED DESCRIPTION OF THE AID The project, which provides for development assistance under a general scheme for aid to developing countries, concerns the sale of a 12000 m® dredger costing NLG 160 million (EUR 72,6 million) to China Harbour Engineering Company (CHEC). The aid takes the form of a 14-year subsidised loan of 100 % with a three-year grace period at the rate of 4,17 %, i.e. a grant-equivalent of 31,25 %. The vessel is to be built at the IHC Holland shipyard at Kinderdijk. According to the Netherlands authorities, CHEC would be unable to purchase the dredger without the aid. The Commission decided to initiate the Article 88(2) procedure because it doubted that the project complied fully with the conditions laid down in Article 3(5) of Regulation (EC) No 1540/98 concerning the compati- bility of aid related to shipbuilding granted as develop- ment assistance. New provisions concerning aid for shipbuilding have been incorporated into Article 3(5) of Regulation (EC) No 1540/98 in cases where the aid is granted in the form of development assistance to a developing country. The Article states that such aid may be deemed compat- ible with the common market if it complies with the terms laid down for that purpose by OECD Working Party 6 in its Agreement concerning the interpretation of Articles 6 to 8 of the OECD Understanding on Export Credits for Ships. The Commission must verify the particular development content of the proposed aid and satisfy itself that it falls within the scope of the OECD Understanding on Export Credits and that the offer of development assistance is open to bids from different yards. On the basis of the information available to the Commission, it concluded that the project complied with the OECD criteria. However, the Commission doubted whether the devel- opment assistance was open to bids from different yards.