Issued by: Ministry of Finance & European Commission
Attention: Financial Editor
14 May 1996
FINANCING AGREEMENTS SIGNED BETWEEN SOUTH AFRICA AND THE EUROPEAN COMMISSION
Deputy Minister of Finance, Ms Gill Marcus, and Ambassador Erwan Fouere today signed financial agreements covering five projects under the European Programme for Reconstruction and Development (EPRD) grant facility in the presence of European Commission President, Mr Jacques Santer, and Minister of Finance, Mr Trevor Manuel.
The five projects constitute the first tranche of projects to be financed through the EPRD facility, and represent a value of approximately R300 million. Under the EPRD the European Union has made available a grant facility of ECU 125 million (R687.5 million) annually for five years (1995-1999) to be committed to specific projects. A Declaration of Intent in this regard was signed by European Union Commissioner Joao de Deus Pinheiro, and then Minister without Portfolio, Jay Naidoo, in May 1995. The EPRD programme, until recently the responsibility of the RDP office, now falls under the International Development Finance Directorate within the Department of Finance. Deputy Minister of Finance, Ms Gill Marcus, is to assume responsibility as National Authorising Officer for the Government of the Republic of South Africa.
The five projects signed today provide support from the European Commission in the following sectors:
1. Land Reform Pilot Programme (Department of Land Affairs - ECU 10.8 million = R59.4 million)
The EU project assistance covers a two-year programme (1996-97), which will focus on delivery of basic needs to communities who are to be settled on land in nine provincial pilot districts.
2. Water supply and sanitation in the Eastern Cape (Department of Water Affairs and Forestry - ECU 18 million = R99 million)
This is a 3 year programme (1996-98), which will see the majority of the funding going to the installation of basic water supply systems and improved sanitation serving some 230 000 rural inhabitants. Under the programme, assistance will also be given to institutional reform and training.
3. Library Support Programme for Universities (Department of Education - ECU 11,1 million = R 61,05 million)
This programme is targeted at historically disadvantaged universities and will cover textbook supplies, library collections support, library automation and networking support and professional training and human resource development.
4. Small and Micro Enterprises Development Programme (Department of Trade and Industry - ECU 11 million = 60,5 million)
This programme will be targeted at emerging entrepreneurs. Implementation will be effected through private banks and the Department of Trade and Industry.
5. Project Preparations, Evaluation and General Technical Assistance Consultancy Programme (Department of Finance - ECU 5 million = R27,5 million)
This will provide a facility for the engagement of both long and short-term consultants to assist with projects under the Reconstruction and Development Programme. Consultants will be engaged to assist with specific tasks related to project identification and appraisal, preparation, implementation, evaluation and monitoring.
Contact: Jennifer Wilson, Ministry of Finance, 082 453-4715 Christine Thompson, European Union, 012 464319