PACIFIC ISLANDS FINANCING FACILITY II

The objective of this second financing facility in the Pacific region is to provide global loans for onlending to SMEs and micro-sized initiatives as well as technical assistance to in different Pacific countries through selected financial intermediaries.

Funds under the proposed facility would initially be made available to Bank South Pacific (BSP) in Papua New Guinea, Bank of the Cook Islands Limited (BCIL) in the Cook Islands, National Development Bank of Palau (NDBP) in the Republic of Palau and Niue Development Bank (NDB) in Niue. Additional intermediaries from other Pacific countries will be able to benefit from the facility at a later stage, subject to satisfactory appraisal and approval by the Management Committee.

The intermediaries will provide the EIB with a summary on environmental impacts of the projects to be financed and on proposed mitigating action. They will make further investigations if the Bank so requests to ensure that projects to be financed comply with the environmental standards that satisfy the Bank’s requirements. Guidelines on the Bank’s environmental requirements will be provided to the banks as part of the loan negotiation process.

The financial intermediaries will ensure that equipment, works and services to be financed will be procured at the most advantageous price, having regard to quality and efficiency, and that an open international bidding procedure will be followed where appropriate.

Industry, agro-industry, tourism, transport, telcommunications, social housing, services.