Issued by: Department of Foreign Affairs
MEDIA RELEASE ON THE EUROPEAN INVESTMENT BANK (EIB) EXTENDS TENDERS TO SOUTH AFRICAN BUSINESS
The first signs of a breakthrough regarding South African tenders for development programmes, in terms of South Africa's accession to the Lome Convention, are now becoming visible.
The European Investment Bank (EIB) a European Union institution which also assists developing countries with grants in terms of the Lome Convention, has renewed its framework agreement with the South African Government in terms of which it will make a loan facility of 375 million ECUs (R2 billion) available for infrastructural projects. On 4 March 1998, EIB's Vice-President, Dr Rudolf de Korte and the Ministry of Finance's deputy Minister Gill Marcus, signed the agreement which would cover the period 1998-1999, also referred to as the 2nd framework agreement.
The EIB has also made certain arrangements by which South African businesses could tender for EIB projects in other ACP countries.
An increase in activity between the European Investment Bank and South African financial institutions and business, has become visible during the last financial quarter.
The First National Bank (FNB) was able to raise an 80 million Rand 10-year loan facility with the EIB for infrastructure financing.
During February 1998, the Compagnie Thermique de Belle Vue Limitee, a contract winner from EIB, selected a South African company, DUKE ENGINEERING AND SERVICES as a turnkey contractor for their coal/bagasse co-fired 70 MW thermal power station in Mauritius.
On Tuesday, 10 March, ESKOM South Africa and ESKOM Mampower from Namibia have requested the EIB's participation in financing their NEUTRAL EARTHING REACTORS.
The EIB has, as the awarding authority, requested tenders for the above projects. Companies wishing to apply for tender documents will be able to do so at ESKOM Transmission Commercial Services in South Africa.
The past two years, 1995-1997, have been funds from EIB totalling 300 million ECU (R1.2 billion) go to various projects executed by such institutions as the Industrial Development Corporation (IDC); The Development Bank of Southern Africa (DBSA); Central Energy Fund (CEF), and the Commercial Banks: Standard Bank; FNB and NEDCOR Bank. Among these projects are: the Maputo Corridor, rural electrification, TELKOM's telephone lines extension, water supply and sanitation into rural areas, to mention but a few.
The positive response by the EIB to a wide range of development projects in South Africa, augurs well for the establishment of a very rewarding future relationship, especially when South African expertise will find growing EIB encouragement to enter into development contracts in neighbouring countries and even wider afield.
ISSUED BY THE DEPARTMENT OF FOREIGN AFFAIRS PRETORIA 23 MARCH 1998