The European Investment Bank is lending EUR 50 million to the Maynilad Water Services, Inc., a joint venture between Benpres Holdings, Suez-Lyonnaise des Eaux and Lyonnaise Asia Water Holdings Pty Ltd, for the improvement of the water supply, sanitation and sewerage system in the Western part of Manila (Philippines). A syndicate of international banks is guaranteeing the EIB loan.
The project, co-financed by the Asian Development Bank, will help to extend improved water supply services to an additional 2.5 million people, reduce the waste of water due to leakage and improve septic tank cleaning and disposal services to households without sewer connections. In parallel, with the financial support of the World Bank and the Asian Development Bank, Maynilad Water Services is also carrying out complementary projects to strengthen further the water supply and sewerage systems, and reduce the risk of water-related diseases. To ensure service standards and concession targets, the International Finance Corporation helped create a regulatory framework implemented by the Regulatory Office.
The European Investment Bank may lend up to EUR 900 million for investment in projects of mutual interest in Asia and Latin America during the period 1997 to 1999. In 1998, the Bank provided EUR 150 million for three projects located in Asia.
The EIB was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering EU policy objectives, in particular, regional development, European infrastructure, energy, industry and environment. Outside the Union, the EIB contributes to European development co-operation policies in accordance with the terms and conditions laid down in the various agreements linking the Union to some 130 countries in Central and Eastern Europe, the Mediterranean region, Africa, the Caribbean and the Pacific, Asia and Latin America.
The conversion rates of the 1 euro=1.16675 USD, 45.5033 PHP.