23
Jul
Hungary’s government has mandated the Economy Ministry to negotiate on joining the EU-Africa Infrastructure Trust Fund, a resolution published in the latest issue of the official gazette Magyar Közlöny shows. Economy Minister Mihály Varga will work together with the Ministry of Foreign Affairs and Trade as well as the Magyar Export-Import Bank to take the necessary steps for accession to the fund. Hungary would pay a little more than 2.3 billion forints (EUR 7.4m) into the fund this year.
The EU-Africa Infrastructure Trust Fund (EU-AITF) was launched in 2007 by the EU together with its member states and the European Investment Bank. It finances large regional infrastructure programmes on the African continent to facilitate inter-connectivity and regional integration, blending grants from the European Commission and EU member states with long-term loan finance made available by eligible financiers. As of end-2013, the EC had allocated 638 million euros of a total grand endowment of 798 million euros.
EU-AITF was the first EU “blending instrument” with the objective of promoting infrastructure projects in Sub-Saharan Africa with a regional impact. Blending” means combining long-term investments from development finance institutions (loans, risk capital, etc) with grant monies to gain financial and qualitative leverage as well as project sustainability. Another objective of “blending” is the promotion of cooperation and coordination between European and non-European aid actors. EU-AITF donor contributions stem from the European Development Fund (EDF) budget and from several European Union Member States.
According to its website EU-AITF offers grant support from two different envelopes: (1) the Regional envelope promotes regional infrastructure projects (energy, transport, water, ICT): cross-border projects or national projects with a demonstrable regional impact on two or more countries and (2) the SE4ALL envelope supports regional, national and local energy projects targeting SE4ALL objectives, which are the following: to ensure universal access to modern energy services, to double the global rate of improvement in energy efficiency and to double the share of renewable energy in the global energy mix.
Source:http://hungarytoday.hu/news/hungary-eyes-joining-eu-africa-infrastructure-trust-fund-75945