ECIP - EC financing for the promotion of joint ventures in Asia, Latin America, the Mediterranean and South Africa
The European Community Investment Partners (ECIP) financial instrument, first launched as a pilot scheme in 1988, provides financing for the creation of joint ventures, privatization and private infrastructure projects in the developing economies of Asia, Latin America, the Mediterranean and South Africa. A budget of ECU 250 million is available under this scheme for the financing of projects in the 1996-1999 period. ECIP is managed by the European Commission, in a decentralized way, through its network of ECIP financial institutions (FI) and investment promotion agencies. These institutions are generally commercial, merchant or development banks, but the membership of the network is open to any bank, subject to the opinion of the Commission and the Council's ALA/Mediterranean Committee. The network of FIs represents one of the distinctive features of the ECIP scheme: namely its decentralized mode of operation which emphasises subsidiarity. The presence of FIs in the host countries also helps local businesses to gain access to ECIP through an institution close to their place of business. In contrast to most cooperation instruments, ECIP is market driven. The success of the scheme has shown that it replies to a need both of the developing countries and of European operators. The joint venture nature of ECIP projects reinforces their development impact by encouraging transfers of technology and know-how, and creating export opportunities for the host countries. The types of operation financed by ECIP include: - Identification of potential joint venture projects and partners; - Feasibility studies or pilot projects; - Joint venture capital requirements; - Training, technical of management assistance; - Preparation of a privatization, Build Operate Transfer (BOT) or Build Operate Own (BOO) scheme in private infrastructure, utilities or environmental services. ECIP is specifically aimed at small and medium-sized enterprises, but large companies may also benefit if their projects are particularly interesting for the development of the host countries.