By Sherine Shoukry INFRASTRUCTURE projects are bringing the Union for the Mediterranean closer together, Sherine Shoukry reports. Optimism rang through the walls of the Bibliotheca Alexandrina last Thursday as delegates from over 40 member countries of the Union for the Mediterranean (UFM) and CEOs from 30 different financial and regional institutions sat down to discuss their commitment to participating in and financing infrastructure projects in the Euro- Mediterranean region. Heading the informal meeting, which is said to be "the first breakthrough towards the realisation of concrete projects in the context of the UFM," was Egyptian Minister of Trade and Industry Rachid Mohamed Rachid, and special adviser to President Nicolas Sarkozy, Henri Guaino. The Union for the Mediterranean is a 2008 re-launch of the Euro- Mediterranean Partnership, formerly known as the Barcelona Process. The union includes all EU members with several non-EU countries that border the Mediterranean Sea. One of the highlights of the meeting was the launch of the InfraMed Fund, an infrastructure investment fund. "The InfraMed Fund offers a new model of cooperation between North and South that underscores the importance of the private sector's contribution, together with the public sector, to achieve cooperation and integration among the two shores of the Mediterranean Sea," explained Rachid. Leading the fund is Egypt's EFG-Hermes, Caisse des Dépôts (CDC) of France, Cassa depositi e prestiti (Cdp) of Italy, and Caisse de Dépôt et de Gestion (CDG) of Morocco. It is hoped that the fund will expand to include Gulf investors, with some of the leading sponsors from the region being present at the meeting. The InfraMed Fund will begin by looking at projects in four main areas: energy efficiency; transportation; de-pollution of the Mediterranean; and urban development. So far 400 million euros out of a total of one billion euros have been committed by the InfraMed Fund sponsors. "The Union for the Mediterranean is nothing but the natural progression of the achievements of the Barcelona Process, for in the absence of the gains created by the Barcelona Process, this union would have never emerged," declared Rachid in the meeting's inaugural session. Both Rachid and Guaino outlined some basic philosophies within the UFM. Guaino explained that there will be "more practicality in implementing the projects", elaborating on the importance of "trying to separate the political from the economic", and that there will be no veto to stop a project if it will be of benefit to other countries. Rachid went on to say that there is no preference of one project over the other, and that they are "all important". Other concrete outcomes of the meeting include a $750 million commitment from the World Bank-managed Clean Technology Development Fund to finance the Mediterranean Solar Plan. The Global Environment Facility also announced its readiness to contribute $50 million to finance projects in the area of international waters management in the Mediterranean. And Agence Française de Développement, the German Kreditanstalt fèr Wiederaufbau, the European Investment Bank, UNIDO, and the EU Commission Directorate of Aid revealed their willingness to channel already existing funds to UFM's soon to be announced projects. The conference made frequent reference to the current economic crisis, but maintained a positive tone relative to it. Determined to bring optimism to the conference, Guaino called the crisis "an opportunity". "The Mediterranean is a point of relay for growth, and we want to share the model of the growth of tomorrow with it," he explained. "We must seize the opportunity and, more importantly, convince everyone that this is an opportunity."
