The Secretariat of the African, Caribbean and Pacific Group of States

ACP PRESS RELEASE: 3 July 2009 – The Committee of Ambassadors of the African, Caribbean and Pacific (ACP) Group, held successful discussions with the European Investment Bank (EIB) in Luxembourg on Thursday where both parties exchanged views and suggested areas that the ACP Group wants the bank to focus its resources on.

The Ambassadors led by its Chairman and the Ambassador of Solomon Islands, H.E Mr. Joseph Maáhanua, met with the President , Mr Mr. Philippe Maystadt, the Vice-President, P. Sakellaris, and senior officials of the bank.

Highlighting the importance of the meeting, Mr Maáhanua said that the presence of the Committee of Ambassadors in Luxemburg was a clear demonstration of the seriousness that the ACP Group viewed its relations and collaboration with the EIB.
 
He stated that whilst they were in Luxemburg to discuss the Investment Facility report for 2008, it was also appropriate for them to take the opportunity to jointly reflect on the perspectives for 2009 and beyond.

In terms of ACP-EU development cooperation, the chairman said that 2008 had been marked by the entry into force of the revised Cotonou Partnership Agreement and of its associated financial Protocol, the 10th EDF, which inter alia provides for an additional envelope of € 1.5 Billions for the Investment Facility.  From this, € 400 millions would be used for financing of the interest rate subsidies and an envelope of € 2 Billions for EIB own resources loans.

Mr Ma’ahanua admitted that 2008 has also been a particularly challenging year for ACP’s vulnerable economies, with the surge in fuel prices, the considerable increase in food prices and the crippling effect of the global financial and economic crisis and its damaging effect on ACP’s exports and much needed FDI flows.

Nonetheless, Mr Maáhanua continued, the crisis has provided an opportunity for all ACP to draw the correct lessons and lay the ground for improved policies.
“Likewise policies aimed at fostering investment in ACP countries, have taken on new urgency and this is where we see the contribution of the EIB as pivotal,” the ambassador, said.

“We hope that the EIB will be able to respond in a more flexible and innovative manner to the investment needs of the ACP countries, already beset by the financial and economic crisis,” Mr Maáhanua said.

 In this regard, the chairman welcomed the recent amendments to the Cotonou Agreement aimed at greater flexibility in favour of the Highly Indebted Poor Countries (HIPC countries), and highlighted ACP’s proposal to extend such measures to all ACP countries.

Mr Maáhanua said that it would be useful for the EIB to explore possibilities for greater flexibility in the terms and conditions of loans granted to ACP countries. 

Meanwhile, the ambassador pointed to a pertinent issue which needs to be addressed is the case of projects with budgets not exceeding five million euros and which are currently not funded by EIB.
“Clearly this is a challenge for many of our small states, which - in view of their inherent physical and financial constraints - may not always be able to propose projects with budgets above five million euros,” he said.
Senior officials of the bank told ACP Ambassadors that they were pleased with the discussions, which allowed them to hear the views from the ACP Group.
ACP Ambassadors raised specific and concrete problems of their countries and regions which they have encountered in complying with the conditions of the EIB. 
The ACP Ambassadors later spilt into their respective regions and held discussions with EIB officials responsible for their respective regions.

ENDS

For detailts contact: iroga@acp.int