April 2009 Vol. 236 No. 4

Projects

European Investment Bank Eyes Middle East Development

The European Investment Bank’s dedicated arm for the Mediterranean region, the Facility for Euro-Mediterranean Investment and Partnership (FEMIP), has just announced a major pipeline-related financing transaction.

FEMIP’s remit is to promote development of nine countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Gaza/West Bank. FEMIP has established itself as the main financial partner of the Mediterranean region, with more than EUR 8.5 billion invested since 2002.

The EIB signed a letter of intention to lend up to 500 million euros to MEDGAZ, the first direct gas pipeline between Algeria and Europe. The project cost is estimated by the promoter at approximately 1 billion euros. An environmental study addressing the entire project, i.e. international waters, Algerian and Spanish landfalls, was prepared in 2004.

The new MEDGAZ pipeline transporting natural gas from Beni Saf in Algeria directly to Spain below the Mediterranean Sea will bring substantial financial benefit to Algeria and help secure a stable and diversified supply of energy in the European Union.