Documents

Summary report on infrastructure/private sector development follow-up meeting to Regional Funding Conference

Opening of the meeting

The participants were officially welcomed to the meeting by the Italian Under-Secretary of Foreign Affairs, Mr Umberto Ranieri.

Following this, the Chairman, Mr Fabrizio Saccomanni, stated in his introductory remarks that the purpose of the meeting would be twofold : on the one hand information would be provided and exchanged on the follow-up to the Regional Funding Conference while on the other hand the meeting should discuss the methodology of monitoring the implementation of the so-called Quick Start Package (QSP). In his brief introductory comment, the Co-Chair of Working Table II, Mr Gligor Bishev, underlined the importance of a rapid implementation of the projects which had been identified in the QSP.

Financial results of the Regional Funding Conference (RFC) Mr Rory O'Sullivan of the Joint World Bank/EC office briefed the meeting on the results of the RFC. A document was distributed on the funding status of the 35 infrastructure project contained in the QSP. After the RFC the World Bank/EC office has been checking on the various specific pledges made and on the more general expressions of interest with regard to the funding of infrastructure projects. Furthermore, the status of as yet unallocated funds is being looked into, verifying the ratio between grants and loans and checking to what extent they could in fact be used in support of existing QSP proposals. To the extent that no particular reference was made by donors with regard to the funding of specific projects, the WB/EC office are in the process of matching the available funding with the financing need of the various projects. This process should be completed in the weeks ahead with a view to presenting a complete picture at the Regional Table meeting on 8 June in Thessaloniki. For at least 6 projects the full financing package is already signed and tender documents can be prepared (NB as of 8 May the number has increased to 9). For another 17 projects specific pledges from donors appear sufficient to provide for full financing and negotiations with these donors are starting. For the remaining 12 projects, no specific pledges were made at the donors conference but funds appear to be available from general pledges, and specific donor support is being verified. For every project a lead agency has been identified, in charge of further preparations and contacts with donors that support a particular project. The delegations of Romania and Canada drew attention of the meeting to a technical support project in the field of electricity provision and requested that the project is included in the QSP as funding is fully secured.

Implementation of QSP infrastructure projects

The EIB representative, Mr Massimo d'Eufemia, informed the meeting about upcoming missions of the EIB to Croatia, Bosnia-Herzegovina (energy sector) and the fYR of Macedonia to discuss the implementation of the QSP. Once a decision has been taken by the EU-Ministers of Finance on the eligibility of Montenegro for EIB-support a fact-finding mission will go there as well. The EIB will also continue its work on the transport and air traffic regional studies.

Implementation of QSP with regard to private sector development.

Mr Henry Russell of the EBRD gave a detailed presentation of the EBRD involvement in the various infrastructure and private sector development projects. The EBRD is lead agency for three infrastructure projects for which the financing has been fully secured. In addition thereto some projects currently in the "near term" list are proceeding more rapidly than expected and could possibly also already start implementation in early 2001.

For private sector initiatives some 356 million Euro was pledged at the RFC. Some 35 million Euro was pledged to specific initiatives and the EBRD is in the process of reviewing each pledge to confirm the specific use and the conditions attached thereto (the full EBRD-statement is attached).

Position/reaction of recipient countries

Several recipient countries informed the meeting about the internal preparations for the implementation of the QSP and about the corresponding national budgetary provisions which had been made. Albania mentioned the budgetary requirements for the expropriation of land in view of road projects. Some countries (especially Bulgaria) stressed the importance of concluding swiftly the loan agreements as delays would hamper the implementation of the QSP. Croatia reiterated the regional importance of the Adriatic-Ionian highway and requested that funds be made available to undertake the required feasibility study. It welcomed the upcoming mission of the EIB. The representative of the fYR of Macedonia underlined the need to apply an acceptable balance between grants and loans with respect to the funding of the QSP. Romania stressed the importance of finding a solution to the Danube problems.

Views from the donors

Some donors used the meeting to give more detailed information about their pledges. The US delegate submitted to the meeting some examples of flow chart/implementation schedules that could be used to monitor the implementation of the QSP. The US ware willing to provide technical assistance to the countries concerned is setting up such of implementation schedules and monitoring progress (see also report on point 7 of agenda).

The Canadian delegation recalled a joint US/Canada proposal to set up in the framework of the Working Table II an ad-hoc group on electricity projects with a view to exchange information. The Chairman, Mr Saccomanni, indicated that energy could in any case be one of the items on the agenda of the next Working Table meeting.

The German delegation specified its interest in some of the QSP, including the project on emergency road rehabilitation in Kosovo.

Monitoring of the QSP

It was generally felt that information on the implementation of the quick start projects should be provided both by the recipient country concerned and the lead agency (Bulgaria mentioned it intended to produce every three months progress reports for each infrastructure project). With regard to the form in which the reports might be drawn up the meeting considered the US-proposal to be a good example that could be used in order to obtain a homogeneous presentation of the information on the QSP.

In line with the conclusions of the RFC it was felt that the implementation of the projects should be monitored within the framework of Stability Pact, through (in this case) Working Table II in co-operation with the IFI's and the EC and the continued involvement of the HLSG in view of its role in donor co-ordination.

The Chairman, Mr Saccomanni, indicated that this is not a static process but that frequent contacts/meetings will be required to move the process along and to address possible bottlenecks. It is a collective responsibility to make the QSP work.

In addition thereto the Working Table and its operating structures should not just ensure implementation of the QSP with regard to infrastructure and private sector development but also ascertain that simultaneous progress is made in the area of reform where commitments have been entered into (for example the investment compact and the anti-corruption initiative, trade facilitation etc). Progress reports, from the recipient countries and the lead-agencies could be submitted both to the Stability Pact and to the joint WB/EC office.

Conclusion/AOB

The Chairman informed the meeting that an informal meeting of countries of the region might take place at the end of June in the fYR of Macedonia. Consultations are being conducted with the Co-Chair of Working Table II and more information will follow shortly.