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Enterprise and Tourism Policy

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ECIP

Joint ventures with local operators from non-European countries

 

Official Title

"European Communities Investment Partners (ECIP)"

 

Legal References

Council Regulation EC 213/96 of 29 January 1996 on the implementation of the European Communities investment partners financial instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa. OJ L28 of 6.2.1996.

 

Objective

As part of its economic cooperation with the countries of Latin America, Asia, the Mediterranean region and South Africa, the European Union shall operate, for the period 1995-1999, special cooperation schemes (European Communities Investment Partners) aimed at promoting mutually beneficial investment by Community operators, particularly in the form of joint ventures with local operators in the countries eligible including tripartite operations with other developing countries to promote regional integration.

 

Target Public / beneficiaries

Small and medium-sized enterprises in countries of Asia, Latin America, the Mediterranean region, South Africa (ALAMEDSA) and the European Union.

 

Operators

ECIP Financial institutions (FI) i.e. commercial, merchant or development banks, and investment promotion agencies.

 

Calender

The ECIP scheme shall run from 1995-1999.

 

Eligible measures / nature of activities

The ECIP will offer five kinds of financing facility:

  • 1a. Identification of potential joint venture projects and partners. The beneficiaries are Chambers of Commerce, professional associations and ECIP Financial Institutions representing a group of countries. Individual companies may not benefit from this facility.

  • 1b. Preparation of a privatisation or a Build Operate Transfer (BOT) or a Build Operate Own (BOO) scheme in private infrastructure, utilities or environmental services. The beneficiaries are ALAMEDSA governments and public agencies.

  • 2. Feasibility studies or pilot projects. The beneficiaries are companies wishing to undertake a Joint Venture, a privatisation or a private infrastructure project.

  • 3. Joint venture capital requirements. The beneficiaries are Joint Ventures established in the ALAMEDSA countries with locals by EU partners, or local companies which operate under a licensing and technical assistance agreement with an EU company.

  • 4. Training, technical or management assistance. The beneficiaries are the same as for facility 3.

 

Rural Dimension / example of action in rural milieu

Facility 3 handicrafts production (equity investment) joint venture in Thailand.

 

Nature and amount of financial support

The financial reference amount for the implementation of this programme, for the period 1995-1999, is MECU 250.

For type of ECIP finance and maximum amount of funding available for the facilities is as follows:

  • Facility 1 Grant of up to 50% of the eligible costs with a maximum amount of 100 000 ECU.

  • Facility 1b Grant of up to 100% of the eligible costs with a maximum amount of 200 000 ECU.

  • Facility 2 Interest-free advance of up to 50% of the eligible costs with a maximum amount of 250 000 ECU (within this amount 50% of pre-feasibility travel costs may be financed up to ECU 10 000). The maximum total support per project is 1 000 000 ECU.

  • Facility 3 Equity holding or equity loan of up to 20% of the incremental capital of the joint venture. The financial institution must co-finance the project. Maximum amount of 1 000 000 ECU.

  • Facility 4 Interest-free loan for large companies, or a grant for small and medium-sized companies, of up to 50% of the eligible costs. The financial institution must co-finance the project. Maximum amount of 250 000 ECU. The maximum total support per project is 1 000 000 ECU.

 

Implementation

The ECIP is managed by the European Commission (Directorate General for External Relations DG I B/D/3) in a decentralised way though its network of ECIP financial institutions and investment promotion agencies.

Applications for financing under Facilities 2, 3 and 4 must be made though one of the financial institutions in the ECIP network.

Applications for Facility 1 and 1b may be made by the beneficiary organisation either directly to the EC of through an ECIP Financial Institution.

 

Communication support

  • Application form;
  • List of institutions financed by the ECIP.

 

Information offices or complementary sources of information

  • European Commission
    Directorate-General for External Relations
    DG I B/D/3
    B-1049 Brussels
    Fax: +32 2 299 02 04

 


date of publication: 01/98


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