Brussels, 23/04/2007 (Agence Europe) - The fruit of a joint European Commission and European Investment Bank (EIB) idea, the Trust Fund for the development of infrastructure in Africa (EUROPE 9128) is now on track, with an initial allocation of €87 million from the Commission and voluntary member states. The Commission, the EIB and nine EU member states willing to make a contribution signed the memorandum of understanding in Brussels on 23 April for the official creation of this Europe-Africa partnership financial instrument for infrastructure, launched in July 2006. The aim is to give Africa major infrastructure networks without which economic growth and human and lasting social development of the African continent is impossible (EUROPE 9232).
During the signing ceremony between Development Commissioner Louis Michel and EIB President Philippe Maystadt, representatives of the member states concerned (Germany, Austria, Belgium, Spain, France, Greece, Italy, Luxembourg, the Netherlands) and Moss Lenga, acting Secretary General of the ACP Group (Africa/Caribbean/Pacific), all welcomed the speed with which the idea, floated less than one year ago, was given concrete substance.
During its start-up phase (2006-2007), the Trust Fund will be able to count on €27 million from member states and €60 million in grants from the European Development Fund (EDF). This will be in addition to the €260 million in loans from the EIB, stressed Louis Michel. The Commissioner stressed the “double political significance of this initiative” which, on one hand, is totally in keeping with the European consensus on development policy that demonstrates the member state and Commission's determination to “act more collectively on the ground” and, on the other hand, meets the priorities defined by the African Union and NEPAD (New Partnership for African Development) to “give Africa a backbone of major transport, energy and telecommunication infrastructure and improve water resources management, which is essential to assist millions of people trapped in poverty”. Recalling that the Commission has long been a partner of Africa in the field of infrastructure, Louis Michel was pleased that cooperation had come about between the Commission, the EIB and member states, which will make the most of “expertise and value added of each”. The initial allocation is naturally “modest given the gigantic needs in financing” (it is estimated that the current investment in infrastructure in Africa must be doubled with a first allocation of €8 billion annually until 2010, moving up to €16 billion over the next five years). Also, the Commissioner hopes there will be a substantial increase in resources from member states and from the 10th EDF for the start-up phase in 2007.
“We share NEPAD's vision that the achievement of crossborder infrastructure will have a significant impact on the quality of life of the African populations”, said Philippe Maystadt, delighted to announce that the first financing package will go to the East African Submarine Cable System, and the Felou Hydropower project on the Senegal river to provide Mali, Senegal and Mauritania with electricity. Speaking on behalf of Belgium, Minister Armand de Decker announced an initial contribution of €1 million, and Spain confirmed the €10 million announced in June 2006: - Germany €1 million, France €5 million, Luxembourg €1 million, the Netherlands €2 million for the first year. Austria, Greece and Italy did not give a figure. (an)