New offices for the European Investment Bank's Regional Representation for Central and East Africa were today officially inaugurated by the Minister for Finance, the Hon. David Mwiraria and the President of the EIB, Mr. Philippe Maystadt. The new representation office is the first to be opened by the EIB in sub-Saharan Africa. It is to play a key role in the EIB's commitment to build closer ties with its customers and expand operations in Africa, the Caribbean and the Pacific (ACP), within the framework of the ACP-EU Partnership Agreement, signed in Cotonou in June 2000, and of the Investment Facility, a risk taking facility for the private and the commercially run public sector, created under the Agreement and managed by the EIB.
The Nairobi-based Regional Representation intends to increase the effectiveness of EIB activities, in particular in the private sector, and to reinforce its identity with the ACP countries in East and Central Africa. As EIB President Philippe Maystadt said: The new Representation Office underlines the EIB's commitment as the European Union's development financing institution to supporting economic development in Africa under the Cotonou Agreement. Kenya being our host underlines its commitment for the same goal. Both the Bank and the ACP realise that implementation of the Cotonou Agreement's challenging mandate requires a permanent presence in Africa.
The EIB representations in Nairobi will add value in terms of operations and flexibility and European Development Finance in the whole region . Local investors will have a point of contact and for advice on European Investment Bank finance of projects through:
- Mr. Carmelo Cocuzza
- Mr. Philippe Brown
- European Investment Bank
- Tel (+254) 20 273 52 60
- Fax (+254) 20 271 32 78
- Africa Re Centre, Hospital Road, 5th floor, PO Box 40193, 00100 Nairobi, Kenya
Within the private sector, EIB Nairobi will also work with the network of local antennae of the CDE, Center for the Development of Enterprise in the region and with Pro€invest, both set up as independently managed private sector support instruments under the Cotonou Agreement and its predecessor treaties, the Lomé Conventions.
The EIB Nairobi will also help to improve co-ordination with the European Commission's grant aid in support of governance, regulatory and judicial improvements through the national indicative programmes (NIP) in the region. In addition it will strengthen synergies with the EIB's partners in the European Development Financing Institutions group, the EDFI, and with the World Bank group and other peer institutions.
EIB lending under the first full year of the Investment Facility (2004) reached sixteen operations for a total of EUR 337 million. In Kenya, loans of a total of 27 M USD were extended under the Investment Facility to the Magadi Soda Company, to part-finance the construction of its pure ash plant in co-financing with IFC and FMO, and two new loans of a total of 75.5 M EUR were recently approved to support the extension by KenGen of the Olkaria II geothermal power plant and the upgrading of KPLC's power distribution network.
Two other Regional Representations will shortly be officially openend in Dakar, Senegal, for Western Africa, and Tshwane/Pretoria, South Africa, for the Southern Africa region and Indian Ocean. The respective host-Governments and the Bank will officially inaugurate new office venues in Dakar and in Pretoria in June and in July.
The EIB, established in 1958 by the Treaty of Rome, finances capital investment projects that further the European Union (EU) policy objectives. It also participates in the implementation of the EU's co-operation policy towards third countries that have co-operation or association agreements with the Union. Currently, the Bank's financing in Africa, the Caribbean and the Pacific (ACP) is carried out under the provisions of the Investment Facility, set up by the ACP-EU Partnership Agreement, signed in Cotonou in June 2000. Under the Cotonou agreement the total financial aid available amounts to + EUR 15 billion for 2002-2006, of which EUR 11.3 billion is grant aid from the EU member states, + EUR 2 billion is managed by the EIB under the Investment Facility and up to EUR 1.7 billion is in the form of loans from the EIB's own resources. The Investment Facility is a revolving facility (loan amortizations will be invested in new operations), aiming at supporting technically, environmentally, financially and economically sound projects in the private or the commercially run public sector.