Alexandria, 08/06/2004 (Agence Europe) - The ministerial surveillance committee of the FEMIP (Facility for European Mediterranean Investment Partnership), which met in Alexandria (Egypt) on 7 June, set the method to be followed for the coming period and adopted a series of recommendations on encouraging privatisation and support to the public sector through access to financing sources. Nearly all the Euro-Mediterranean ministers (except the ministers of Algeria, Tunisia and Turkey) were present, including the Israeli and Syrian ministers and, of course, the Egyptian minister who hosted the meeting.
Ministers discussed the creation of a Trust Fund in liaison with the FEMIP. They threw themselves into the task of determining the modalities of operation and, above all, the allocation to be provided. All participant countries were called upon to contribute to the fund, which could amount to between EUR 20 and 40 million. The EIB will make its contribution known at the accounting round table envisaged for each member country's participation.
Ministers also looked at the results of the activities in the field of technical assistance with forecast commitments over the period 2003-2004 of EUR 54.7 million (EUR 22 million for human capital, 2 million for education, 17 million infrastructure and 14 million industry).
The EIB, which manages FEMIP, plans to devote to the region a volume of financial aid that should amount to EUR 2 billion annually. Thirty to forty percent are to go to private sector initiatives with the rest supporting major projects or high social added value sectors such as the environment, health and education. Ministers also discussed the reform process in the countries of the region. These countries are said not to have let up in their resolve to modernise their economies. This commitment is important mainly on the eve of the G8 summit, which must handle reform in the region, it is stressed at the EIB. (See also yesterday's EUROPE, p.16, on the subject of the intervention by European Commissioner Siim Kallas).
On this occasion, the EIB signed two loan agreements with Egypt and Tunisia. EUR 100 million in the first case goes to funding a gas pipeline linking Egypt and Jordan (between Aqaba and Rehab). The pipeline, 393 km long, will allow Egyptian natural gas to be carried to the major power plants, industrial enterprises and other users located on the whole of Jordanian territory. It is also called the "Arab pipeline" or the "Jordanian pipeline". In the case of Tunisia, EUR 65 million have been granted for improving Tunisia's urban infrastructure.