The European Investment Bank in the Pacific Region Information Seminar on the Implementation of the EU-Pacific interim EPA Development Co-operation and EU funding Nigel Hall EIB Pacific Regional Office Port Moresby, 22-23 February 2012 European Investment Bank 1
Briefing Contents A EIB Background and External Mandates B Sources of Funding for the Pacific Region C EIB Activities in the Pacific Region D Cooperation with EU Institutions and Member States European Investment Bank 2
A EIB Background and External Mandates EIB The EU s long-term Financing Institution promoting European Objectives Establishment Treaty of Rome, 1958 Shareholders 27 EU Member States Governance Board of Governors Board of Directors Management Committee Audit Committee EU Finance Ministers Member States & European Commission EIB s executive body Independent, non-resident European Investment Bank 3
A EIB Background and External Mandates Facts & Figures Mission Contribution towards the integration, balanced development and economic and social cohesion of the EU Member States Provision of long-term lending to promote EU objectives for economic and social development External Lending Lending for the ACP/ OCTs Based on a series of mandates given by the Union (Accession countries, Euro-Med, ACP, OCTs, ALA, Balkans, Russia) 1. EIB s Own Resources - from the International Capital Markets 2. The Investment Facility from the European Development Fund European Investment Bank 4
Agenda A EIB Background and External Mandates B Sources of Funding for the Pacific Region C EIB Activities in the Pacific Region D Cooperation with EU Institutions and Member States European Investment Bank 5
B Sources of Funding for the Pacific Region Grants European Investment Bank 6
B Sources of Funding for the Pacific Region The EIB Mandate & the IF: Principal Objectives & Means Objectives Means Use of risk-bearing instruments (value-added of the IF): Private sector development, through Foreign Direct Investors, Local private sector Financial sector Commercialy viable public entities Economic growth Poverty reduction & Millennium Development Goals Loans Quasi-equity Equity Guarantees Contraints Ensure the long term financial sustainability of the IF through risk-pricing Mitigate the risk of MS as guarantors vs. development objectives European Investment Bank 7
Agenda A EIB Background and External Mandates B Sources of Funding for the Pacific Region C EIB Activities in the Pacific Region D Cooperation with EU Institutions and Member States European Investment Bank 8
C EIB Activities in the Pacific Facts & Figures 19 beneficiary countries and territories Total of loans and equity EUR 570 m (or AUD 760 m) Close cooperation with other donors: World Bank/IFC, ADB, AusAID, NZAID & and EC where possible Over 100 contracts to date Total signed amounts by country (ex. OCTs) European Investment Bank 9
C EIB Activities in the Pacific Total signed amounts by country (1975-2011) The EIB in the Pacific - total amounts signed by country Fiji 134 French Polynesia 56 Kiribati 2 New Caledonia 48 Papua New Guinea 171 Regional Pacific 61 Samoa 18 Solomon Islands 8 Tonga 12 Tuvalu 2 Vanuatu 12 0 20 40 60 80 100 120 140 160 180 EUR m European Investment Bank 10
C EIB Activities in the Pacific Loan Approvals 2004 2011: +/- EUR 170 m 2004 Project Pacific Islands Financing Facility I+II Country Regional Sector Finance Amount EUR 45 m Kula Fund II Regional Finance EUR 4.4 m Novotel Denarau Fiji Tourism EUR 11 m Fiji Power Fiji Electricity EUR 25 m Samoa Venture Capital Fund Samoa Finance EUR 0.5 m Kolombangara Forestry Project Solomon Forestry EUR 3.5 m Socredo Environmental LoC I+II FP Finance EUR 10 m BCI Environmental LoC NC Finance EUR 5 m UNELCO Vanuatu Energy EUR 4 m Banque de Polynésie / SocGen FP Finance EUR 10 m 2011 Environmental LoC to four FIs NC Finance EUR 10 m Digicel Pacific Regional ITC EUR 40 m European Investment Bank 11
C EIB Activities in the Pacific Project Example 1: Digicel Pacific Total Project Cost USD 129 m EIB Financing USD 40 m Countries Fiji, Vanuatu, Tonga & Cook Islands Description expansion of existing telecommunications networks and introduction of competition in several markets Objectives improved coverage & service levels in mobile communication development of a competitive GSM mobile network European Investment Bank 12
C EIB Activities in the Pacific Project Example 2: Environmental Lines of Credit EIB Financing Banque de Polynésie SOCREDO I & II BCI BCI, SGCB, BNP NC & BNC EUR 10 m EUR 10 m EUR 5 m EUR 10 m Description Objectives Provision of subsidised financing resources for investments in renewable energy & energy efficiency Supports SMEs in pursuing environmentally sustainable business practices European Investment Bank 13
C EIB Activities in the Pacific Eligible Beneficiaries: Private entrepreneurs and commercially-run public sector enterprises Investment funds and other financial intermediaries ACP and international entrepreneurs Large enterprises, SMEs and Microfinance European Investment Bank 14
Agenda A EIB Background and External Mandates B Sources of Funding for the Pacific Region C EIB Activities in the Pacific Region D Cooperation with EU Institutions and Member States European Investment Bank 15
D Cooperation with EC & other EU Institutions & Member States European Commission a close partner externally & internally Co-operation in EIB s Statute: - Consultation regarding individual proposals for projects - Representation on the EIB Board of Directors Strong operational links with the EC, as the initiator and executive body for many areas of EU policies relevant to the EIB Close cooperation with the EU Delegations in the Pacific - Contributing to the EU's development and cooperation policies in the Pacific Region Pooling Mechanisms under the ACP-EU Energy / Water Facility Other EU Partners: Centre for the Development of Enterprise (CDE) EU Member States European Investment Bank 16
Contact details: European Investment Bank Pacific Regional Office Level 32, 88 Phillip Street SYDNEY NSW 2000 Australia Jean-Philippe de Jong Head of Regional Office Nigel Hall Technical Adviser Katrin Bock Business Analyst tel +(61 2) 8211 0536 email: j.dejong@eib.org tel +(61 2) 8211 0530 email: n.hall@eib.org tel +(61 2) 8211 0532 email: k.bock@eib.org Web address: www.eib.org European Investment Bank 17