L 46/52 Official Journal of the European Communities 20. 2. 1999 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 25 February 1998 on development aid granted by Germany for the construction of a dredger sold to Indonesia (notified under document number C(1998) 583) (Only the German text is authentic) (Text with EEA relevance) (1999/142/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular the first subparagraph of Atrticle 93(2) thereof, Having regard to Council Directive 90/684/EEC of 21 December 1990 on aid to shipbuilding ('), as extended by Council Regulation (EC) No 3094/95 of 22 December 1995 on aid to shipbuilding (%), as last amended by Regu- lation (EC) No 2600/97 (%), and in particular Article 4(7) thereof, Having, in accordance with Article 93 of the EC Treaty, given notice to the parties concerned to submit their comments, and having regard to those comments, Whereas: By letter dated 3 January 1996, the European Dredging Association lodged a complaint concerning the sale of three dredgers by Germany to Indonesia. The Association suspected that the aid granted in connection with the sale was in breach of Council Directive 90/684/EEC (Seventh Directive on aid to shipbuilding). According to the letter, () OJ L 380, 31. 12. 1990, p. 27. @) OJ L 332, 30. 12. 1995, p. 1. () OJ L 351, 23. 12. 1997, p. 18. the aid appeared to enable the supplier to charge a price below the market price in Taiwan and Thailand where the supplier participated in international tenders in competition with other companies supplying dredging services. By letter SG(94) D/6533 of 17 May 1994 to Germany, the Commission had approved the granting of development aid in connection with the sale of three dredgers by Volkswerft Stralsund to the Indonesian public corporation Pengerukan (‘Rukindo’). Rukindo is a State limited-liab- ility corporation, 100 % of its shares being owned by the Ministry of Finance. The development aid was granted in the form of a loan from the Reconstruction Loan Corporation (Kreditanstalt fir Wiederaufbau). The loan covered 90 % of the contract value for a period of 11 years at an interest rate of 3,5 %. The OECD aid equi- valent was 25,35 %. The borrower was the Republic of Indonesia, represented by the Ministry of Finance. In the German notification of the proposed aid submitted on 24 March 1994, it was stipulated in which locations in Indonesia the dredgers were to be used. In its letter to Germany approving the aid, the Commission stated that the dredgers were to be used only in Indonesia (‘Die neuen Bagger sollen allein in Indonesien eingesetzt werden, ...).