EUROPEAN INVESTMENT BANK Promoting European objectives ARLEM s Commission for Economic, Social and Territorial Affairs (ECOTER) Brussels, 2 July 2010 Jackie Church, Liaison Officer 1
The European Investment Bank (EIB) Long-term finance promoting European objectives European Union s long-term lending bank set up in 1958 by the Treaty of Rome. Shareholders: 27 EU Member States Governance Board of Governors EU Finance Ministers Board of Directors - Member States & European Commission Management Committee EIB s executive body Audit Committee independent, non-resident 2
The European Investment Bank (EIB) European priority objectives Within the Union: Cohesion and convergence Small and medium-sized enterprises (SMEs) Environmental sustainability Knowledge Economy Trans-European Networks (TENs) Sustainable, competitive and secure energy 3
The European Investment Bank (EIB) European priority objectives Outside the Union: Private sector development Infrastructure development Security of energy supply Environmental sustainability Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI) 4
2009 key figures European Union: Partner countries: Total lending: EUR EUR EUR 70.5bn 8.6bn 79.1bn Borrowings: EUR 79.4bn Subscribed capital: (at 01/04/2009) EUR 232.4bn 5
EIB lending in 2009 (in EUR) 6
EIB lending 1958-2009 7
Breakdown of the EIB s capital 8
Value Added Value added of the Bank s lending activities: Support for EU priority objectives Project quality and soundness Financial benefits of EIB funds Technical assistance Project assessment 9
Benefits of an EIB loan Benefits of low cost of funding passed on to clients: Large amounts Broad range of currencies Long maturities Attractive interest rates Catalyst for participation of other banking or financial partners 10
Project Requirements Projects must: Meet at least one of the EIB s objectives Be technically sound Be financially viable Show an acceptable economic return Comply with environmental protection and procurement regulations 11
The EIB project cycle 12
EIB Activities Outside the Union Supporting EU Development and Cooperation Policies in Partner Countries EIB external mandates: Pre-accession countries: Candidate countries - Croatia, Turkey and Former Yugoslav Republic of Macedonia Potential candidate countries - Western Balkans European neighbourhood: Mediterranean Neighbourhood (FEMIP) Eastern Europe, Southern Caucasus, Russia Development: Africa, Pacific and Caribbean (ACP) South Africa Asia and Latin America (ALA) Loans of EUR 8.6bn in 2009 13
Stimulating growth and employment in the Mediterranean The role of FEMIP 14
Facility for Euro-Mediterranean Investment and Partnership FEMIP I- A long EIB Presence in the Mediterranean 1978 First EIB lending operation in the region (Lebanon). 1993 EIB s volume grows to over EUR 600 million a year. 1995 The Barcelona Process with objective is to build an area of peace, stability and shared prosperity. 2002 Creation of FEMIP. EIB s volume grows to over EUR 1.2bn a year. 2003 FEMIP opens first EIB external office outside the EU. 2004 European Neighbourhood Policy. 2005 Turkey becomes a pre-accession country but remains a FEMIP partner; FEMIP establishes the first EIB Trust Fund. 2006 Record EUR 8.7 bn external mandate for 2007 2013. 2008 Barcelona Process: Union for the Mediterranean. 2010 Mid-term Review. Wise Persons confirm the value-added and efficiency of FEMIP. 15
Facility for Euro-Mediterranean Investment and Partnership FEMIP I- What is FEMIP? Objectives and priorities FEMIP brings together the whole range of EIB instruments in the Mediterranean partner countries * Supporting the modernisation and opening-up of Mediterranean partner countries economies Two priorities:. Direct private sector support. Creation of an enabling, investment-friendly environment * Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco, Syria and Tunisia 16
Facility for Euro-Mediterranean Investment and Partnership FEMIP I- What is FEMIP? A diversified and complementary range of products a) Loans - Individual loans - Credit lines b) Private equity - Direct investments - Private equity funds - Co-investments - Local currency to MFIs c) Technical assistance - Operational TA - Upstream studies SME in Syrian Arab Republic 17
Facility for Euro-Mediterranean Investment and Partnership FEMIP II- Lending in the Mediterranean partner countries Since October 2002, FEMIP: invested EUR 10bn in the Med region disbursed almost EUR 7.5bn mobilised a further EUR 25bn in additional resources Annual Loans Signed in 1999-2009 (in M EUR) 3000 2500 2000 1500 financed over 1900 SMEs via EIB credit lines 1000 500 Total lending in 2009 EUR 1.6 bn 0 FEMIP Turkey Turkey & other non-eu UfM countries do not account towards FEMIP s volume 18
EIB financing in the Mediterranean Partner Countries Million EUR Energy Transport Telecoms Industry Environment Human Capital Credit Lines Risk Capital Israel 434m Regional 119m Syria 1,147m Tunisia 2,248m Lebanon 697 m Morocco 2,205m Egypt 2,413m Algeria 322m Gaza West Bank 55m October 2002 to December 2009: more than EUR 10 bn Jordan 368m 19
Facility for Euro-Mediterranean Investment and Partnership FEMIP Increasingly involved Mediterranean Partner Countries Once a year the FEMIP Ministerial debates FEMIP s Corporate Operational Plan and other initiatives providing direction FEMIP s strategy and actions are scrutinised by the FEMIP Committee Encouraging expert discussion and sharing of knowledge through FEMIP Conferences Developing Partnerships - Forging Alliances Closer than ever with the EC, EU Bilateral and IFIs Marseille Centre of Mediterranean Integration 20
Facility for Euro-Mediterranean Investment and Partnership FEMIP III- How to move forward? FEMIP s role within the Barcelona Process: Union for the Mediterranean 13 July 2008, Euro-Mediterranean Heads of State and Government gave a new impetus to the Euromed Partnership by launching the Barcelona process: Union for the Mediterranean that would focus on six priority initatives Finance Ministers that met in Luxembourg on 7 October 2008 invited FEMIP to act as key coordinator of three priority initiatives:. De-pollution of the Mediterranean. Mediterranean Solar plan. Maritime and Land Highways Urban Renewal was introduced as an additional priority sector for FEMIP after the UfM Ministerial on Sustainable Development (Paris, June 2009). FEMIP Trust Fund financed the feasibility study of the Mediterranean Business Development Initiative. 21
EIB Financing of Urban Renewal and Development Main Sectors of Activity Urban renewal and development (i.e. public infrastructures) Social housing (rehabilitation and new construction, special focus on energy efficiency measures) Individual buildings of public interest (e.g. cultural heritage) Public transport Education and health facilities Water management and improvement of the environment, including waste treatment Utilities, including district heating & street lighting 22
EIB Financing of Urban Renewal and Development Specific Sectors of Activity Supporting proper housing provision and eradication of slums promoting social inclusion Regeneration of historic centers ( Medinas 2030 Initiative in the Mediterranean) Natural disasters prevention Technical assistance outside the EU 23
EIB Financing of Urban Renewal and Development Geographical Coverage Focus on the EU-27 So far few urban renewal and development projects outside the EU (Morocco, Tunisia, South Africa, Jordan): Focus on supporting proper housing provision and eradication of slums, promoting social inclusion, regenerating urban centres (supporting the Millennium Development Goals) Provision of Technical Assistance outside the EU 24
EIB Financing of Urban Renewal and Development Objective (i) Promoting urban renewal and (ii) managing urban growth - or adaptation to a smaller population - in order to foster long-term sustainable urban development. Setting framework for sustainable urban development: Integrated, inclusive and comprehensive approach to urban development at all levels: (i) long-term strategic level, (ii) district/neighbourhood level and (iii) individual project level. Enhancing the capacity of the relevant planning authorities and public bodies to deliver facilities and public services (e.g. via Technical Assistance) Involvement of private sector 25
EIB Financing of Urban Renewal and Development Integrated Approach to Urban Development and Regeneration Strategy and objective-based on a sound diagnosis, integrated into its broader socio-economic context Precise definition of land use and infrastructure facilities Consideration of adequate services and equipment Assessment of environmental impacts including energy performance of buildings Social impacts, including employment Global economic analysis of the operation Financial sustainability (public and private) of investment and operation Adequate governance and public consultation (e.g. local urban area plans, mobility plan, housing plan, comprehensive urban development plans for specific neighbourhoods) 26
«Medina 2030 Initiative» for Historical Centres in the Mediterranean Created by the EIB with a kick-off seminar in October 2008 in Venice and a follow-up seminar in October 2009 in Marseille; Sharing experiences on urban regeneration in historical centres among stakeholders in the Mediterranean Technical assistance pilot project on Meknès medina launched by EIB Marseille Centre for Mediterranean Integration: EIB lead partner on urban regeneration of historical centres 27
«Medina 2030 Initiative» for Historical Centres in the Mediterranean Technical Assistance Pilot Project in Meknès Highly complex long-term process of inner city regeneration Reduction of poverty and inequality, creating an environment for economic growth and development Preservation of historic monuments and cultural heritage 28
«Medina 2030 Initiative» for Historical Centres in the Mediterranean Technical Assistance Pilot Project in Meknès Objective: Setting up a comprehensive urban renewal (investment) programme, including: Reducing building density, Providing adequate public infrastructure, facilities and services, Improving accessibility, Upgrading of housing, (adaptation to modern demand of population/family structures, etc.) Proposal for an institutional structure To identify financial tools 29
http://www.eib.org/femip 30