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EIB finances nine operations in RP
By Rose Palacio

Davao City (23 June 2005) -- While the European Investment Bank (EIB) continues to support a number of public sector projects in Asian countries, the focus of its operations is geared particularly towards the private sector in areas of intervention such as infrastructure, industry, agro-industry, mining and service sectors.

In the Philippines, EIB has financed nine (9) operations in both public and private sectors. In 1994 and 1995, it supported the Philippines in the construction of the Davao International Airport, providing funding for EUR 25m for its terminal building, and has also financed the Union Cement plant (previously known as Davao Cement) with a loan of EUR 23m.

In the power sector, the EIB has been actively involved with the First Gas for the constriction of the Santa Rita gas plant in Batangas with two loans provided in 1997 for the equivalent of EUR 72m.

During the same year, it approved a loan of EUR 25m to finance, jointly with the Asian Development Bank, the development of smaller airports to improve communication and tourism.

The EIB has also provided a loan of EUR 50m in 1998 to support the upgrading and extension of water supply and distribution systems in west Manila.

In the industrial sector, the EIB has been actively involved in the development of the semiconductor business by providing a loan of EUR 93.2m in 2001 to Philips Semiconductors Philippines Inc. for the expansion of its plant and operations in Calamba, Manila.

In 2004, the Bank signed two global loans to assist small and medium scale investments in the Philippines: the first loan, for USD 50m, was provided to ABN AMRO Bank Inc., a subsidiary of ABN AMRO NV; the second line of credit, for an amount of EUR 25m, was provided to the Development Bank of the Philippines.

The Bank intends to continue to finance eligible operations of this kind in the Philippines. It is actively looking for projects of mutual EU-Philippines interest that will have a positive impact on both national and regional development and particularly in public utilities, including its power sector, industry, tourism and the service sectors. (PIA-RPalacio)

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