Offering Circular. - SFM

through 2008. The Region has established a representative office in Brussels to promote directly the interests
of the Region within the various institutions of the EU.
The Region has been allocated funds for the six-year period 2000-2006 under the Rural Development Plan
(the “RDP”). The RDP is designed to develop rural areas in the Region. The funds will be used to help
maintain and diversify agricultural activities, create jobs and protect the environment. The EU fund which
contributes to the RDP is the European Agricultural Guidance and Guaranteed Fund. Total committed
funding to the Region from public sources under the RDP is equal to h586 million (of which approximately
44 per cent. is provided by the EU and 46 per cent. is provided by the Central Government) and is expected
to be paid through 2008 to the Region in varying amounts up to h107 million per year. Private source funding
under the RDP is estimated to provide an additional aggregate total amount of h257 million through 2008.
Funds have also been allocated for the six-year period 2000-2006 under the Leader Plus programme
(“Leader Plus”). Leader Plus is designed to promote the development of rural areas in the Region through
the provision of integrated services related to the agricultural industry (such as, for example, agro-business
services). The funds will be used to promote strategic development projects and technical assistance
programmes and to foster cooperation among rural areas in the Region. Funding for Leader Plus is provided
by the European Agricultural Guidance and Guaranteed Fund. Total committed funding to the Region from
public sources under Leader Plus through 2006 is equal to h29 million (of which approximately 47 per cent.
is provided by the EU and 33 per cent. is provided by the Central Government) and is expected to be paid
each year between 2002 and 2008 to the Region in varying amounts up to h5 million per year. Private source
funding under the RDP is estimated to provide an additional h22 million through 2008.
Funds committed by the EU are allocated to specific projects and amounts to be paid each year are
contingent upon the Region having spent the prior year’s allocation on such projects in the manner
determined by the EU. If within a determined grace period after 2006, all funds allocated to the Region have
not been spent on the relevant projects in accordance with EU specifications, the unpaid allocations will be
forfeited and any prepaid funds must be returned to the EU. Funds allocated to the Region by the EU for the
six-year period 1994-1999 pursuant to EU programmes Objective 2 and Objective 5b (the latter provided for
financial assistance to rural areas and terminated in 1999) totalled h261 million. Approximately 90 per cent.
(or h235 million) of such funds were spent on the related projects within the established deadline of 31
December 2001. The balance of h26 million is required to be returned to the EU.
The following table shows the historical trend and the contribution of each sector to value added at factor
cost (“GAV”) for Lazio:
GAV (1)
Year Ended 31 December
1998 1999 2000 2001 2002
(h millions)
Agriculture 1,636 1,673 1,732 1,707 1,724
Manufacturing 12,929 13,722 14,204 16,171 16,541
Construction 4,731 5,091 4,207 4,355 4,385
Services 82,015 84,678 89,298 94,225 97,974
GAV Including Imputed
Banking Services 101,312 105,165 109,441 116,460 120,625
Imputed Banking Services 5,451 5,439 6,068 5,766 5,830
GAV Excluding Imputed
Banking Services 95,862 99,725 103,373 110,694 114,795
Net Indirect Taxes 10,995 12,154 12,811 17,050 –
GDP 106,856 111,880 116,184 123,460 128,121
(1) Measured in current prices.
Source: ISTAT for 1998-2002 data.
In 2002 the service, industry and agriculture sectors contributed 81.0 per cent., 17.6 per cent. and 1.4 per
cent., respectively, to GAV of the Region of Lazio as compared to the contribution of these sectors of 11.9
per cent., 6.5 per cent. and 5.6 per cent., respectively, to GAV of Italy as a whole.
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