COMMISSION REPORT TO THE COUNCIL AND PARLIAMENT ON THE IMPLEMENTATION OF FINANCIAL AND TECHNICAL COOPERATION WITH MEDITERRANEAN NON-MEMBER COUNTRIES - 1994
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 02. 05. 1996 COM(96) 151 final COMMISSION REPORT TO THE COUNCIL AND PARLIAMENT ON THE IMPLEMENTATION OF FINANCIAL AND TECHNICAL COOPERATION WITH MEDITERRANEAN NON-MEMBER COUNTRIES 1994 1. report second is financial The 1994 annual the t he cooperation with and of implementation Mediterranean non-member countries, and covers both bilateral and the so-called "horizontal" cooperation. Compared with last year's, the report provides additional information on operations launched in 1994 and assesses their implementation, in response to the wish expressed by the Council and Parliament. report on technical such 2. As regards the implementation, particular importance was attached to proper completion of all the various stages in a project's life cycle, and In addition, special attention will be given to project evaluation. in coordination with particular the World Bank, should ensure improved effectiveness of Community-funded operations. the Member States and other donors, an 3. taking longer. As described in more detail in Implementation of bilateral cooperation with the MNC in 1994 was satisfactory with commitments being made comparatively earlier but disbursement the sections looking at specific countries, the long delays are mainly due to the political situation (events in Algeria, new government in Morocco). As for horizontal cooperation, the decentralized programmes, which are local authorities, to meet actual needs expressed by designed universities and the media, had far-reaching effects. 4. However, 1994 will be remembered as the year of great changes in EU's policy vis-à-vis the Mediterranean. Since the Corfu European Council and the Commission communication of 19 October 1994 on strengthening the EU's Mediterranean policy - "Establishing a Euro- Mediterranean partnership" - whose main guidelines were adopted by the Essen European Council, awareness of the importance for the EU of achieving genuine partnership with region h as grown considerably,' especially in consideration of the many challenges it will be confronted with in forthcoming years. t h at COOPERATION WITH THE MNC I. NORTH MEDITERRANEAN1 1. Generalities 1. Financial and technical cooperation with north Mediterranean countries continued in 1994 when funds for the last operations under the third financial protocols with Malta and Cyprus were committed. The fourth protocol with Turkey, adopted in 1980, was suspended in 1994. 2. In the case of Cyprus, it was decided to allocate available funds from the third protocol to the Greek community for the financing of a "European Institute", the preliminary work on which is now completed. 3. As for Malta, efforts focused on monitoring, and wherever possible speeding up implementation of approved projects. 4. The negotiation of fourth protocols with Malta and Cyprus was the year's key event; the instruments were initialled by the parties in December 1994. 2. Evaluation bv country 21 CYPRUS 1- The first two protocols Budget funds under the first two protocols (ECU 26 million) were committed in full and 96% was disbursed. EIB's own resources (ECU 48 million) were committed and disbursed in full. 2. The third protocol ECU 18 million was available from budget funds. New commitments for 1994 from budget resources amounted to ECU 2. 2 million and went to the following projects: Cyprus, Malta and Turkey. Sector (a) Rural sector (b) Public sector (c) Industry (d) Environment Project Description Support for agricultural research (ECU 265 000) Administrative cooperation (ECU 100 000) Survey of customs procedures (ECU 102 260) Cartography and land register (ECU 800 000) Boosting vegetal pathology research within the Agricultural Research Institute Visits and seminars for officials in the fields covered by Community law Training in EU procedures for central government officials Support for the computerization of Cyprus' land register Training of government personnel Introduction of modern Teacher training (ECU 68 000) Automation of production procedures in SMEs (ECU production methods, computerization and 99 700) productivity boosting in SMEs Support for Cyprus' institute for quality control and standardization Standardization, certification and quality control (ECU 474 000) Industrial pollution control Survey of industrial waste, (ECU 350 000) assistance with new legislation. In addition, ECU 3. 05 million was set aside to cover interest rate subsidies on EIB loans. By the end of 1994 70% of budget funds had been committed, of which 88% actually disbursed. Remaining EIB resources (i. e. ECU 29 million out of ECU 44 million) were committed, with the opening of lines of credit for operations in the water supply and industrial sectors. Disbursement had reached 34% of the total as at 31 December 1994. The text of the fourth financial protocol (1995-1998) was initialled in December 1994. 3. Evaluation Implementation of financial and technical cooperation continued in 1994 according to plan. The government authorities agreed to improve certain administrative procedures which should come on stream in 1995 and make for speedier project implementation. Conversely, little progress was made in the commitment of funds earmarked for initiatives bringing together the two communities, with the exception of the launch of feasibility studies for the treatment of waste waters in Nicosia. 2. 2. MALTA Funds available under the three financial protocols (1979-1993) concluded with Malta were committed in full (ECU 93. 5 million) by 1 January 1994. 57% of budget funds (ECU 38. 5 million) and 78% of EIB own resources (ECU 55 million) was disbursed. Budget funds mostly went to infrastructure projects, training initiatives and to promote local business, particularly in the tourist sector. EIB own resources were mainly spent on infrastructure (40%), telecommunications (20%), the environment and drinking-water supply projects. The new financial protocol (1995-98) was initialled in December 1994. n. SOUTHERN AND EASTERN MEDITERRANEAN2 1. Generalities 1. In 1994 new financial commitments under the fourth financial protocol with SEM countries totalled ECU 574 million, of which ECU 250 million from budget funds and ECU 324 million from EIB own resources. 2. The sectoral breakdown of financial cooperation under the last generation of protocols has changed somewhat. The first three protocols had granted priority to infrastructure, agriculture, rural development and vocational training. They were funded mostly from budget resources. Under the fourth protocol these were rounded off by ancillary measures and economic reforms launched by a number of SEM countries. 3. Of the funds put at the disposal of SEM countries by the New Mediterranean Policy The Southern and Eastern Mediterranean region covers the Maghreb (Algeria, Morocco and Tunisia) and the Mashreq (Egypt, Israel, Jordan, Lebanon and Syria). to back up economic reform, ECU 300 million was allotted to structural adjustment programmes. Additional funds from the 4th financial protocol rounded up the amount. In addition, ECU 80 million from budget funds under the 4th protocol was earmarked as risk capital3 (only ECU 31 million under the 3rd protocol). Morocco, Egypt and Jordan began to draw funds from their shares in 1994 for a total of ECU 28 million. Tunisia had already drawn ECU 7 million in 1993, whereas Algeria, Lebanon and Syria have not yet availed themselves of the facility. At the end of 1994 the picture was as follows: the overall commitment rate for funds under the first three protocols (budget and EIB own resources) was 96. 5%; for the fourth protocol it was 60%, with commitments for Morocco, Tunisia and Jordan taking the lead. Only Syria was lagging behind with a commitment rate of 3% on fourth protocol funds, but the delay can be explained by the late start of the third and fourth protocols. 2. Evaluation bv country 2. 1. ALGERIA 1. The first three protocols MA G H REB Of the budget funds allocated under the first three protocols (ECLT 144 million), 88% was committed and 49% disbursed. EIB own resources (ECU 360 million) were committed in full and 58% actually disbursed. 2. The fourth protocol Budget funds allocated under the fourth protocol (ECU 70 million) were concentrated on a small number of operations and sectors, namely rural development, housing and economic infrastructure. Owing to the economic and political situation, commitments from budget funds in 1994 were very limited: ECU 0. 75 million was committed for a preliminary study for a World Bank agricultural programme (ASAL - agricultural sector adjustment loan). In addition to risk capital, MNC have qualified for ECIP funds and a total of ECU 8. 75 million from that instrument has been committed in 1994. No operation could be launched using risk capital (amount earmarked : ECU 18 million). At the end of 1994 64% (of the ECU 280 million total) of EIB own resources had been committed, in accordance with programming guidelines, to fund transport infrastructure and water supply operations. By the same date 66% of budget funds had been committed, and 33% actually disbursed. 64% of EIB own resources had been committed and 8% disbursed. 3. Commentary The political situation in Algeria has prevented any substantial progress in Community cooperation during the past year. Delays accumulated in implementing the protocols have resulted in some projects due to be funded under the first three protocols being abandoned and other projects being retargeted. Similarly, in view of the difficulties encountered in implementing projects already approved and assessing new projects, utilisation of the balance from the fourth protocol (ECU 124 million out of a total ECU 350 million) could prove problematic in the short term. 2. 2 MOROCCO 1. The first three protocols Over 99% of budget funds (ECU 356 million) was committed and 84% paid out. Loans from EIB own resources (ECU 297 million) were committed in full and 78% actually disbursed. 2. The fourth protocol Out of a total of ECU 218 million in budget funds, ECU 112 million was allocated to the following projects: Sector (a) Infrastructure (b) Rural development Description Project Drinking water supply and The project will bring sanitation (ECU 11 million) Improvements to farmland Construction of irrigation in Haouz (ECU 21. 5 million) drinking water to 19 rural centres Support to local agricultural credit funds (ECU 16,4 million) Support for the Agricultural Development Fund (ECU 50 million) (c) Scientific cooperation Development of remote sensing (ECU 4 million) (d) Health Support for mother and newborn child health (ECU 9 million) systems and technical assistance for the Office Mise en Valeur Agricole of the Haouz region The project will strengthen local credit funds enabling them to grant loans to smallholders The project will put at the Fund's disposal budget credits enabling it to grant subsidies to smallholders implementing improved techniques The project comprises: - an operation to monitor vegetation on land, sea and forest conditions - specialized TA, training, supply of equipment The project seeks to improve mother and child welfare services through training programmes, improved facilities and more effective management In addition, 80% of risk capital (ECU 20 million) was committed to fund projects undertaken by Moroccan small and medium-sized undertakings, preferably in partnership with European business. Loans from EIB own resources (ECU 220 million) were allocated to agricultural initiatives (improvements and credit) and infrastructure (electricity and water). Projects currently being considered should lead to funds being committed in full in 1995, with 14% earmarked for a line of credit to assist the industrial sector. By the end of 1994, 72% of budget funds had been committed and 16% actually disbursed. 68% of EIB own resources had been committed and 12% paid out. 3. Commentary By and large, implementation of the financial protocols produced good results in 1994. While the rate of commitment was good, the payment level was low. In the main, delays can be put down to successive changes of government which have resulted in three different Finance ministers (acting as national authorizing officer) occupying the post over the 16-month period between November 1993 and February 1995. In addition, the low level of payments reflects the fact that certain invitations to tender produced no results (Faculty of Science and Technology, Scientific Research). 2. 3. TUNISIA 1. The first three financial protocols Budget funds granted under the first three financial protocols (ECU 208 million) were committed in full and 89% was disbursed. EIB own-resources loans (ECU 251 million) were also committed in full and 87% was actually disbursed. 2. The fourth protocol Budget funds granted in 1994 amounted to ECU 13 million out of a total of ECU 116 million, and went to fund the following projects: Sector (a) Rural development Project Rural development of Sejnane-Stage 2 (ECU 5 million) Hill-side dams (ECU 3 million) Description The aim is to stabilize stock farmers' income, strengthen the existing stock farmers' organization and teach them sustainable land management techniques to ensure that pastures and semi-intensive stock farming are preserved Construction of water reservoirs (three dams) for various purposes: irrigation, replenishment of ground water tables and protection against floods (b) Industry T. A. for promoting quality The project seeks to assurance (ECU 5 million) implement a number of initiatives to train workers and raise their awareness in Tunisian administrations and institutions, and provide training and technical assistance for implementing a quality assurance and infrastructure development scheme Of the risk capital (ECU 15 million) administered by the EIB, 47% had been committed, and the balance should be taken up in 1995. The funds will strengthen the capital base of Tunisian undertakings and will be channelled through a number of local financial institutions. As regards loans granted by the EIB from own resources, amounting to ECU 168 million, 94% had been committed (23% in 1994) as follows: - 49% for infrastructure of economic significance (availability of water resources and means of communication); 10 - 41% for industry (lines of credit and establishment of business parks) and tourism (lines of credit). By the end of 1994, 65% of budget funds had been committed, and 61% disbursed. 94% of EIB own resources had been committed with 16% disbursed. 3. Commentary Overall, implementation of the financial protocols concluded with Tunisia is working well in terms of both commitments and payments. The Tunisian administration and the agencies entrusted with implementation of the projects funded under the protocols have all shown remarkable technical and financial capacities. Likewise, the new projects are usually backed by excellent supporting documentation. Projects being prepared at the end of 1994 in agriculture and economic development will enable funds under the fourth protocol to be committed virtually in full by the end of 1995. MASHREQ 2. 4. EGYPT 1. The first three protocols Of the available budget funds (ECU 403 million), 98% was committed and 71% disbursed. EIB own resources were committed almost in full (99%) and 81% was disbursed. 2. The fourth protocol ECU 72. 7 million of budget funds totalling ECU 258 million was allocated in 1994 to the following projects: ii Sector (a) Agricultural development Project Veterinary services programme (ECU 20 million) (b) Environment, population issues Development project for the Protectorate of St. Catherine (ECU 6 million) (c) Economic reform Support for a family planning programme in Upper Egypt (ECU 10 million) Reform of the banking sector. Assistance to the Central Bank of Egypt (ECU 11. 7 million) Description Assistance to the Egyptian government (credit programme, training, drafting new legislation) Programme to protect the environment and tourist sites in the region of the Monastery of St. Catherine Supply of contraceptives, technical assistance and training The project offers technical assistance and training to improve the efficiency of Egypt's Central Bank Programme to develop the Quality improvement, marketing techniques, private sector investment promotion (ECU 25 million) In addition, ECU 8. 8 million in budget funds were spent on interest rate subsidy on two EIB projects: the ANSDK Steel Plant and a CIB package loan. Of the ECU 16 million risk capital managed by the EIB, 38% was committed. EIB own resources (ECU 310 million) went to projects in the power generation (electricity transmission), industry and SME sectors. By the end of 1994 58% of budget funds had been committed with 4% paid out. 55% of EIB own resources had been committed and 20% actually disbursed. 3. Commentary In 1994 financial and technical cooperation with Egypt was very positive. A good number of new projects, launched in 1994, were to become operational in the first half of 1995. Payments levels improved during the year as a result of lines of credit being opened (food industry, loan funds for agriculture). 12 All projects were carefully selected to boost the country's economic reform programme, bearing in mind the proposals made under the new partnership agreement currently being negotiated. The Community undertook to back economic reform during the transitional period, and to provide support for initiatives intended to lighten the social and economic burden of the reform programme, especially among the underprivileged. 2. 5. ISRAEL4 1. The first three protocols EIB funds (ECU 133 million) were committed in full and 95% was actually paid out. 2. The fourth protocol Out of a total of ECU 82 million, ECU 32 million had already been committed in 1993 as package loans to the Israeli development bank to promote small and medium-sized businesses, and in 1994 ECU 25 million was allocated to the building of a sewage treatment plant in Sorek. 3. Commentary In view of its level of development, Israel only qualifies for EIB loans from own resources. Although successful, their impact on the Israeli economy as a whole is obviously limited. 2. 6. JORDAN 1. The first three protocols ECU 85 million in budget funds was committed in full and 80% disbursed. EIB loans totalled ECU 128 million, of which ECU 118 million from own resources and ECU 10 million as special loans. The amount was committed and disbursed in full. 2. The fourth protocol ECU 4. 1 million ECU 46 million, and went to fund the following projects: in budget funds was committed in 1994, out of a total of EIB loans only. 13 Sector (a) Infrastructure (b) Training Project Description Study for Aqaba Railway Study on modernization of C o r p o r a t i on (ECU 0. 25 million) Teacher training (ECU 3. 9 million) Jordan's railways The project seeks to improve teaching quality, especially in primary education In addition, ECU 2. 01 million in budget funds went to fund interest rate subsidies on an EIB loan for a water supply project. Risk capital (ECU 2 million) was committed in full to finance projects launched by SMEs. Funds were committed in the form of a line of credit opened with the Industrial Development Bank. At the end of 1994 the EIB had committed 58% of own resources, out of a total of ECU 80 million earmarked under the protocol, on transport infrastructure and water supply operations and a line of credit for industry and the tourist sector. At the end of 1994, 85% of fourth protocol budget funds had been committed with 38% disbursed. Of EIB own resources 58% had been committed but no payment had been made. 3. Commentary Community cooperation made good progress in 1994, against a background dominated by the peace process and exploratory discussions for the negotiation of the EU-Jordan partnership agreement. Financial cooperation worked well, with the usual delays due to the Jordanian authorities' lack of familiarity with Community procedures. 2. 7. LEBANON 1. The first three protocols Of the ECU 46 million in budget funds, 98% had been committed and 51% disbursed, whereas EIB own resources (ECU 107 million) had been committed in full and 46% disbursed. 14 2. The fourth protocol As large amounts from budget funds had already been committed by the end of 1993, no further funds were committed in 1994. Instead projects concerning in particular the assessment of war damage and technical assistance for the Lebanese administration were launched. EIB own resources (ECU 45 million) were allocated to projects concerning the rehabilitation of power generation plants, the port of Beirut and water sanitation. By the end of 1994, 71% of budget funds (ECU 24 million) had been committed with 12% disbursed, and 42% of EIB own resources had been committed but no funds had been paid out. 3. Commentary Lebanon, which is entering a crucial stage of its economic and social recovery after 17 years of war, has shown a remarkable capacity for using the aid granted to it. The European Community was the first to assist Lebanon in the reconstruction process and is now the largest contributor to the National Reconstruction Plan. The main problem encountered when implementing aid (especially in the case of EIB- funded infrastructure projects) is how to rebuild the country's administration and strengthen its ability to manage reconstruction programmes. Accordingly, the project providing technical assistance to the Lebanese authorities, which runs for the three years during which vital infrastructure will be rehabilitated, is of the outmost importance for the Lebanese government. 2. 8. SYRIA 1. The first two financial protocols (1977-1991) Budget funds under the first two protocols (ECU 59 million) were committed in full, with 80% actually disbursed. Own-resources EIB loans (ECU 98 million) were committed in full with 81% disbursed. 2. The third and fourth financial protocols These (totalling ECU 304 million) were adopted with some delay by Parliament (entry into force was January 1993 and April 1994 respectively). 15 Under the protocols, ECU 17. 5 million in budget funds out of a total of ECU 79 million was committed in 1994 to fund the following projects: Sector Project Description (a) Infrastructure Development of energy production (ECU 11 million) (b) Economic reform Banking sector support programme (ECU 4. 5 million) (c) Population Population issues and family planning (ECU 2 million) The project aims to: - improve management of the Electricity Board - train personnel - conduct a study for a national transmission centre - prepare a master plan The project aims to: - modernize the Syrian Bank of Commerce - modernize the Syrian Central Bank In the light of the population census, this project, cofunded with UNFPA - the UN Fund for Population Activities - aims at strengthening the Central Statistical Office and conduct family planning activities In addition, ECU 12. 9 million had been committed as interest rate subsidies (PEE Transmission). EIB loans under the third and fourth protocols (ECU 225 million) had not yet been taken up. They were essentially meant to fund improvements to the power supply and road systems and the rural telephone network. At the end of 1994 94% of budget funds under the third protocol (ECU 36 million) had been committed with 2% disbursed; and 12% had been committed under the fourth protocol (ECU 43 million). 3. Commentary 1994 was a very productive year from the point of view of EU-Syria cooperation. Following the adoption of the fourth protocol in December 1993, the Syrian authorities and the delegation have launched a number of preparatory studies, all of which have been completed, enabling budget funds under the third and fourth protocols to be committed almost in full (water supply, banking system reform, development of energy 16 sector, population issues) and the remaining funds to be earmarked for 1995 (tourism, business centre, management school). These excellent results (notwithstanding the rigidity of the local authorities) are the product of Syria's eagerness to open up and modernize its economy and the Union's resolve to show its interest in resuming cooperation with Syria, after a long interruption, together with its support for the peace process. Even though there is still scope for improvement in terms of speed of implementation, there is evidence t h at close and sustained contacts between the partners (local government and the Commission) are essential for effective cooperation. III. STRUCTURAL ADJUSTMENT The special ECU 300 million package to support economic reforms in SEM countries an a innovation of the fourth generation of financial protocols. adjustment programme implementing structural is A limited share of the means allocated under fourth financial protocols concluded with those countries may be added to the funds provided under the package. Community aid takes the form of funding for general or sectoral import programmes and of technical assistance for macro-economic and sectoral support programmes. The counterpart funds generated by the programmes are used to fund initiatives to palliate the adverse effects of structural adjustment on the population. Funds were allocated measuring structural imbalance and long-term development needs. to eligible countries on the basis of parameters By the end of 1994 ECU 220 million out of the ECU 300 million package had been committed (cf. table below) EU SUPPORT 1 FOR STRUCTURAL ADJUSTMENT IN SEM COUNTRIES CO MMITMENTS AS AT END 1 9 94 ALGERIA MOROCCO TUNISIA JORDAN RESERVE TOTAL Special package funds 55 60 40 65 80 300 Protocol funds TOTAL 15 20 - 15 - 50 70 80 40 80 - 350 1? It would be premature to attempt an evaluation of the full effects of the programmes, however it could be said that they have facilitated the implementation of economic reforms, reduced the need for external funding and boosted expenditure on the most disadvantaged groups of population. Algeria was granted a contribution of ECU 70 million to support its reform programme in the low-cost housing sector. Aid has taken the form of a sectoral programme to import building materials needed to complete council dwellings; counterpart funds are used to fund operations to provide the dwellings with basic infrastructure. In February 1994 the first ECU 35 million instalment was paid out. The programme could be said to be on track even though implementation has been delayed mainly owing to Algeria's political situation. Morocco was granted ECU 80 million in Community aid for its structural adjustment programme. Counterpart funds are used to boost budget expenditure on health and education. The first ECU 50 million instalment was released in December 1993. Results have been more than satisfactory, both from the point of view of the economic reforms and in terms of budget support (loans made available from counterpart funds have all been taken up and economic indicators for the target sectors have shown sustained growth for the period concerned). The second instalment was released at the end of 1994. Tunisia was the first country to receive Community aid for its structural adjustment programme. The contribution was fully paid out by 31 December 1993. Counterpart funds go to finance job creation schemes, which thanks to support from the Community have been kept going. Economic reforms have been implemented according to plan and social indicators have shown a positive trend during the same period. As for Jordan. ECU 50 million (of which ECU 40 million under the adjustment package) have gone to support the 1992-93 economic reform programme. For the period 1994-95 (of which the Community disbursed ECU 25 million as part of the adjustment package) to support the economic reform programme. Counterpart funds are spent on education and health. (as at December 1994) ECU 30 million 18 COOPERATION WITH SEM COUNTRIES AS A WHOLE In accordance with the New Mediterranean Policy (NMP), the relevant Council Regulation (EEC 1763/92 of 24/6/92) and the priority sectors selected for cooperation with SEM countries as a whole, operations already under way were pursued in 1994 and new programmes, funded from both budget funds and EIB own resources, were launched. I. BUDGET FUNDS : Budget funds for the past year totalled ECU 65 million in commitment appropriations and ECU 44. 66 million in payment appropriations. Since the launch of the NMP in July 1992 ECU 165. 05 million have been committed and ECU 65. 47 million disbursed, i. e. 40% of the amount committed. As at 31 December 1994 the projects, programmes and activities funded from Commission budget funds (see annexed list) could be grouped by priority area as show below: Environment Decentralized cooperation Population issues Culture - Communication Training - Education Peace process Risk capital Microprojects 22% 48% 6% 2% 5% 3% 5% 9% Between 1 January and 31 December 1994 funds were allocated as follows: Environment ECU 6. 36 million in interest rate subsidies for the second stage of the EIB project "Sanitation for coastal towns in Tunisia". Decentralized cooperation5 Following the successful completion of the pilot phase, the following activities were confirmed and expanded: Activities launched in 1993 under the "Med Invest" programme (ECU 10 million^ continued in 1994. Med Invest supports cooperation between small and medium-sized enterprises and the EC. 19 Med Urbs Med Campus Med Media (ECU 8. 9 million) support for cooperation between local authorities in SEM countries and the EC (ECU 8. 9 million) support for cooperation between universities in SEM countries and the EC (ECU 6. 1 million) support for the media in SEM countries in the EC Med Avicenne (ECU 7. 39 million) support for research institutes in SEM countries and the EC All these programmes essentially aim, through the establishment of cooperation networks between development agents, to create or strengthen civil society links not only between the Community and its Southern and Eastern Mediterranean partners, but also between the partners themselves. Regional cooperation The Commission approved a project to establish a Euro-Arab Management School (ECU 8. 3 million) which will be the first institute jointly set up as part of official Euro- Arab relations. The School, based in Granada, will offer a comprehensive management training programme in Arab countries and at the same time will train high-level Arab and European managers in Europe. In addition, a large number of ad-hoc initiatives (totalling ECU 4. 5 million) have been launched with a view to encouraging the peace process, notably an economic development programme based on partnership between Europe and the Middle East and particularly aimed at SMEs. Mention should be made of some 60 micro-projects (ECU 3. 7 million) comprising technical assistance, surveys, trade promotion and training (including seminars, debates, meetings and publications). II. EIB OWN RESOURCES As at end of December 1994 nine non-protocol operations had been approved totalling ECU 612 million out of the total ECU 1800 million made available. The following initiatives were added to the four already approved in 1992 and 1993. Environment: three loans (qualifying for a 3% interest-rate subsidy): (a) "Sorek Sewage Treatment" (ECU 10 million) - construction of a sewage treatment plant eight km. west of Jerusalem and connections to sewers; 20 (b) "Antalya Sewerage" (ECU 35 million) - construction of a sewage system and sewage treatment plant in Antalya; (c) "Sanitation for coastal towns in Tunisia" (ECU 25 million, stage II) - funding for the extension and construction of two sewage treatment plants (Greater Tunis and Médénine) and upgrading of sewage systems in the towns of Menzel Bourguiba, Sousse, Monastir, Kelibia, M'Saken and Médénine. A i rpo it i nfras true hire : ECU 80 million was granted for the construction/enlargement of two new runways, a passenger terminal and annexed public and technical facilities at Beirut international airport (Lebanon). Lastly, an ECU 80 million loan went to fund electricity transfer between the EC and Morocco. The project consists in the extension of the European grid to Morocco via cables 30 km. long across the Straits of Gibraltar and the improvement of the Moroccan national grid system. 21 CONCLUSION Overall financial and technical cooperation with Mediterranean non-member countries in 1994 gave positive results, despite the political uncertainties which continued to affect cooperation adversely, particularly in A Igeria. Most encouraging programmes. various partners in civil society as agents of cooperation with the MNC. cooperation that they fulfil a need and point at the importance of the is the success encountered by several decentralized It is evident 22 List of Annexes 1. Financial implementation of protocols 2. Sectoral implementation of protocols North Mediterranean Souther and Eastern Mediterranean 3. Cooperation with MNC as a whole Budget funds EIB 23 TOTAL FINANCIAL IMPLEMENTATION OF THE FIRST THREE PROTOCOLS BUDGET EIB TOTAL PROTOCOL 1978-1991 TOTAL Commitments Payments TOTAL Commitments Payments TOTAL Payments Commitments Amount 130,6 93,5 705 929,1 % Amount 99,1 96% 65 100% 100% 705 99% 869,1 486 651 458 1595 96% 100% 100% 99% 269 529 403 1201 885 203 152 191 1431 133 1564 3159 4088,1 99% 100% 99% 63% 92% 100% 674 186 72 127 1059 127 1186 2387 96% 96% 3256,1 % 76% 70% 100% 94% 55% 81% 88% 75% 76% 92% 47% 66% 74% 95% 76% 80% Cyprus Malta Turkey s/t Northern Med. Algeria Morocco Tunisia s/t Maghreb Egypt Jordan Lebanon Syria s/t Mashreq Israel s/t Mashreq & Isr. s/t Maghr. & Mash. s/t Med % Amount Amount 38,6 38,5 590 672,5 667,1 44 38,5 590 144 356 208 708 403 85 46 95 629 126 354 208 688 393 85 45 93 616 88% 100% 100% 99% 88% 99% 100% 97% 98% 100% 98% 98% 98% 36,1 22 590 648,1 62 297 186 545 % 94% 57% 100% 97% 49% 84% 89% 79% 280 71% 68 80% 23 51% 52% 48 68% 419 1337 1304 2009,5 4579,1 98% 228% 964 3540,1 74% 77% Amount 100% 92 100% 55 115 100% 262 100% % %Amoun1 68% 63 43 78% 115 100% 84% 221 92 55 115 262 360 297 250 907 492 118 107 208 925 133 1058 1965 2227 360 100% 297 100% 250 100% 100% 907 207 232 217 656 394 492 100% 118 118 100% 49 107 100% 79 47% 98 640 815 88% 127 133 100% 90% 948 767 94% 1423 1855 298% 5130 6642 58% 78% 87% 72% 80% 100% 46% 81% 79% 95% 81% 77% 77% 136 93,5 705 934,5 504 653 458 1615 895 203 153 303 1554 133 1687 3302 4236,5 -C 1) Commitments/total. 2) Payments/commitments inci. ongoing commitments. FINANCIAL IMPLEMENTATION OF THE FOURTH PROTOCOL 1991-1996 TOTAL Commitments Payments TOTAL Commitments Payments TOTAL Commitments Payments BUDGET EIB TOTAL PROTOCOL Algeria Morocco Tunisia s/t Maghreb Egypt Jordan Lebanon Syria s/t Mashreq Israel s/t Mashreq & Isr. Amount 46 157 75 278 70 218 116 404 % Amount 15 25 46 86 66% 72%. 65% 69% % 33% 16% 61% 31% Amount 180 150 158 488 280 220 168 668 % Amounl 15 18 25 58 64% 68% 94% 73% 258 46 24 43 371 150 39 17 5 211 58% 85% 71% 12% 57% 6 15 2 4% 38% 12% 23 11% 371 211 57% 23 11% 310 80 45 115 550 82 632 172 46 19 237 34 271 55% 58% 42% 0% 43% 41% 43% 35 35 30 65 % 8% 12% 16% 12% 20% 0% 0% 15% 88% 24% Amount 226 307 233 766 350 438 284 1072 % Amount 30 43 71 144 65% 70% 82% 71% 568 126 69 158 921 82 1003 322 85 36 5 448 34 482 57% 67% 52% 3% 49% 41%. 41 15 2 0 58 30 88 % 13% 14% 30% 19% 13% 18% 6% 0% 13% 88% 18% s/t Med. 775 489 63% 109 22% 1300 759 58% 123 16%| 2075 1248 60% 232 19% N 1) Commitments/total. 2) Payments/commitments inci. ongoing commitments. IMPLEMENTATION OF THE MEDITERRANEAN PROTOCOLS (NORTHERN MED) BY SECTOR EEC/NORTHERN MEDITERRANEAN (1978 - 1993) SECTOR OF ACTIVITY PROTOCOL 1 PROTOCOL 2 PROTOCOL 3 TOTAL ECU mill. % ECU mill. % ECU mill. % ECU mill. % (1965/1993) 1, INFRASTRUCTURE, WATER 105,2 53,9% 68,9 30,0% 127,0 50,2% 301,1 44,4% (Collection and supply) 2, SANITATION, ENVIRONMENT 8,5 4,4% 10,7 4,7% 4,6 3, ENERGY (Thermal power stations, 7,6 3,9% 77,0 33,6% 89,0 gas and electricity supply) 4, AGRICULTURE, FISHERIES, FORESTRY 10,5 4,2% 19,0 2,8% 5, TRADE, INDUSTRY, SERVICES 62,9 274% 15,0 5,9% 151,6 22,4% 6, SCIENTIFIC COOPERATION 5,0 2,2% 7, EDUCATION 73,7 37,8% 5,0 2,2% 5,0 0,7% 5,6 0,8% 0,0 0,0% 0,6 0,2% 00 8, HEALTH CARE, HOUSING 9, STRUCTURAL ADJUSTMENT (bilateral component) 10 COMMITMENT REMAINING 11, TOTAL 195,0 100% 229,5 100% 6,3 253,0 2,5% 100% 677,5 100% 0,0 0,0% 31. 12. 94 0,0 0,0% 6,3 0,9% IMPLEMENTATION OF THE MEDITERRANEAN PROTOCOLS (NORTHERN MED) BY SECTOR EIB-ALL COUNTRIES (1978 - 1994) SECTOR OF ACTIVITY PROTOCOL 1 (1965/1983) PROTOCOL 2 (1973/1988) PROTOCOL 3 (1979/1993) TOTAL (1965/1993) ECU mill. % ECU mill. % ECU mill. % ECU mill. % 1. INFRASTRUCTURE, SANITATION, WATER (Collection and supply) 2. ENERGY (Thermal power stations, gas and electricity supply) 3. AGRICULTURE, FISHERIES, FORESTRY 4. TRADE, INDUSTRY, SERVICES 5. GLOBAL LOANS (to industry or mixed) 6. COMMITMENT REMAINING 7. TOTAL 36 100% 44 64% 25 36% (D 40 10 27 80 2 5% 6% 17% 5 1% 120 10 4 6% 4% 27 105 10% 4 0% 36 100% 69 100% 157 100% 262 100% P*3 (1) incl. environment - ECU 7 million. December 1994 IMPLEMENTATION OF THE MEDITERRANEAN PROTOCOLS (SEM) BY SECTOR EEC-ALL COUNTRIES (1978-1994) SECTOR OF ACTIVITY PROTOCOL 1 (1978/1981) % ECU mill. PROTOCOL 2 (1981/1986) % ECU mill. PROTOCOL 3 (1986/1991) % ECU mill. PROTOCOL 4 (1991/1996) % ECU mill. TOTAL (1978/1996) ECU mill. % 1. INFRASTRUCTURE, WATER (Collection and supply) 2. SANITATION, ENVIRONMENT 3. ENERGY (Thermal power stations, gas and electricity supply) 4. AGRICULTURE, FISHERIES, FORESTRY 5. TRADE, INDUSTRY, SERVICES 6. SCIENTIFIC COOPERATION 7. EDUCATION (1) 8. HEALTH CARE, HOUSING 9. STRUCTURAL ADJUSTMENT (2) (Bilateral component) 10. COMMITMENT REMAINING 85 0 60 5 0 35 34 20 61 1 0 0 6 28% 0% 20% 2% 0% 11% 11% 7% 20% 0% 0% 0% 2% 34 0 27 23 0 8% 0% 7% 6% 0% 44 0 56 39 0 7% 0% 9% 6% 0% 23 0 61 15 0 3% 0% 8% 2% 0% 186 0 9% 0% 204 10% 82 0 4% 0% 145 35% 260 42% 136 18% 576 27% 75 26 41 22 0 0 22 18% 143 23% 169 22% 421 20% 6% 10% 5% 0% 0% 5% 18 44 6 0 0 5 3% 7% 1% 0% 0% 1% 4 12 19 50 0 1% 2% 2% 6% 0% 68 158 48 50 0 3% 7% 2% 2% 0% 286 37% 319 15% 11. TOTAL 307 100% 415 100% 615 100% 775 100% 2112 100% (1) Targeted projects, programmes and training initiatives are included under the relevant sector. (2) Structural adjustment sector - ECU 300 million, incl. ECU 220 million already committed. IMPLEMENTATION OF THE MEDITERRANEAN PROTOCOLS (SEM) BY SECTOR EIB-ALL COUNTRIES (1978-1994) SECTOR OF ACTIVITY PROTOCOL 1 (1978/1981) PROTOCOL 2 (1981/1986) PROTOCOL 3 (1986/1991) ECU mill. % ECU mill. % ECU mill. % PROTOCOL 4 (1991/1996) % ECU mill. TOTAL (1978/1996) ECU mill. % 1. INFRASTRUCTURE, WATER (Collection and supply) 2. SANITATION - ENVIRONMENT 3. ENERGY (Thermal power stations, gas and electricity supply) 166,5 46% 136,5 23% 97,5 10% 337 26% 738 23% 0 97 0% 10 2% 27% 201,5 34% 129 188 13% 12 1% 151 5% 19% 127 10% 614 19% 4. AGRICULTURE, FISHERIES, FORESTRY 20,5 6% 132 22% 284 28% 59 5% 496 15% 5. TRADE, INDUSTRY, SERVICES 6. COMMITMENT REMAINING 78 0 22% 120 20% 187,5 19% 224 17% 610 19% 0% 0 0% 117 12% 541 42% 658 20% 7. TOTAL 362 100% 600 100% 1003 100% 1300 100% 3265 100% SOURCE: EIB quarterly statistics COOPERATION WITH MNC AS A WHOLE Budget funds (December 1994) Sector of activity /. Environment Commitment (ECU million) Interest rate subsidies (EIB loans) IMPHOS - cadmium removal (phosphate) 1. 1 1. 2. 1. 3. EIW training 1. 4. Gaza - sanitation project 19. 95 1. 10 0. 53 15. 00 Total 1 36. 58 (22%) Decentralized cooperation 2. 1. CIHEAM 2. 2. MED-URBS 2. 3. MED-CAMPUS 2. 4. MED-INVEST 2. 5. MED-MEDIA 2. 6. MED-AVICENNE 3. 00 22. 32 23. 30 10. 00 11. 04 8. 82 Total 2 78. 48 (48%) 3. Regional cooperation 3. 1 Framework contract 3. 2 Population 3. 3 EURONEWS 3. 4 Risk capital 3. 5 EURO-ARAB Management 3. 6 3. 7 Microprojects * "Peace process" projects 0. 5 10. 50 3. 00 9. 00 8. 30 4. 45 14. 24 Total 3 49. 99 (30%) GRAND TOTAL 165. 05(100%) 'Microprojects Technical assistance Studies Trade promotion Training, seminars 3. 18(22. 3%) 3. 81 (26. 8%) 0. 33 (2. 3%) 6. 92 (48. 6%) ^>o COOPERATION WITH MNC AS A WHOLE EIB own resources (December 1994) Sector of activity /. Environment Commitment (ECU million) 1. 1 Effluent treatment and associated infrastructure (Coastal towns of Tortus and Latakia (Syria)) 40. 0 42. 0 1. 2. Waste water disposal - coastal towns in Tunisia 1. 3. Sewage treatment plant at Soreq (Israel) 10. 0 1. 4. Sewerage system and treatment plant at Antalya 35. 0 Total 1. Other 127. 0(21%) 2. 1. Telecommunications/international network Jordan 45. 0 80. 0 2. 2. Beirut airport (Lebanon) 200. 0 2. 3. Maghreb-Spain gas pipeline (Algerian section) 2. 4. Telecommunications/international network Morocc 80. 0 80. 0 2. 5. EU-Morocco electricity supply link Total 2 485. 0 (79%) GRAND TOTAL 612. 0 (100%) ' 3 >1 ISSN 0254-1475 COM(96) 151 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-161-EN-C ISBN 92-78-02414-7 Office for Official Publications of the European Communities L-298S Luxembourg ^