World Bank Supports Accession

Leaders of the European Commission, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the World Bank decided during their end-March meeting in Brussels to join forces in supporting the EU accession of Central and Eastern European countries. The institutions will co-finance investment projects, as well as non-project-related work in the candidate countries, in accordance with the EU’s pre-accession policies, and will work together to foster the adoption of EU legislation, including the implementation of EU norms and standards in the public and private sectors. Representatives of the four institutions will meet regularly and staff cooperation will be strengthened, notably on the ground.

As a first concrete result of their enhanced cooperation, the European Commission, the EIB, the EBRD, and the World Bank have identified a preliminary list of projects amounting to about ECU 3.5 billion ($3.9 billion), that could qualify for co-financing in 1998/99. The projects included in the indicative list range from small-scale projects, for example, environment projects in the Baltic States, to large-transport infrastructure projects in the context of the Trans-European Networks in countries such as Hungary and Poland. Some projects in private industrial sectors (such as food processing) have also been included.

Grant support of the European Commission’s Phare pro-gram will continue to operate as an instrument for accession. Where appropriate, a combination of Phare grants, and loans from the EIB, the EBRD, the World Bank, and other international finance institutions will be sought.

The European Investment Bank (EIB), the EU’s long-term financing institution, will work closely with the European Commission, by focusing on projects that facilitate the adoption of the acquis communautaire [laws and regulations, adopted by the member countries] in areas such as environmental protection, transport (particularly Trans-European Networks), telecommunication and energy links, enterprise and employment development, and regional development. The EIB has already approved a new Preaccession Facility aiming at financing projects in the candidate countries.

The EBRD stands ready to explore co-financing opportunities in areas where substantial additional investment is needed to implement EU legislation, such as public and private infrastructure (municipal infrastructure, transport, energy), the environment, and the agribusiness industry, as well as modernization of the financial sector, restructuring of large industries, and support to small and medium-size enterprises.

The World Bank will play an important role in the pre-accession preparation, through its analytical work and co-financing of major infrastructures, in particular, in the transport, energy, and urban sectors and accompanying environmental sup-port; helping policy reform and institutional reform (also at local and sub-national levels), developing regulatory frame-works; and supporting the social sectors.

Excerpts from the joint press release, dated March 30, is-sued following the March meeting in Brussels.