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Danube River

EUROPEAN INVESTMENT BANK Promoting European objectives The Danube Strategy Implementation and Financing - High Level Meeting Financing possibilities by the EIB Belgrade, 27 th September 2010 G. Clausse. Danube River.

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Danube River

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  1. EUROPEAN INVESTMENT BANK Promoting European objectivesThe Danube Strategy Implementation and Financing - High Level MeetingFinancing possibilities by theEIBBelgrade, 27th September 2010 G. Clausse European Investment Bank

  2. Danube River European Investment Bank

  3. 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 European Investment Bank

  4. 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 European Investment Bank

  5. The European Investment Bank (EIB) Under EU Mandates: • Pre-Accession • Candidate Countries: Croatia, Turkey and Former Yugoslav Republic of Macedonia • Potential Candidate Countries – Western Balkans • European Neighbourhood • Mediterranean Partner Countries • Russia and Eastern Neighbours • Development • Africa, Caribbean and Pacific • Asia and Latin America European Investment Bank

  6. EIB lending in 2009 (in EUR) • ∑ = EUR 79 bn European Investment Bank

  7. Loan signatures in the EU in 2009 (EUR m) European Investment Bank

  8. EIB borrowing activity • Total borrowing in 2009: EUR 79.4bn • 262 bond issues across 22currencies (including 3 in synthetic format) • Largest supranational borrower European Investment Bank

  9. EIB lending 1958-2009 European Investment Bank

  10. EIB Capital Increases and Outstanding Loans European Investment Bank

  11. The EIB project cycle European Investment Bank

  12. 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 (incl. JASPERS) • Project assessment European Investment Bank

  13. The EIB Board ofGovernors 27 members Audit Committee Board of Directors 28 directors 18 alternates + 6 experts Management Committee President 8 Vice-Presidents EIB Group Compliance Office OCCO SCC SG-JU RH Ops B FI PJ RM TMR IG Ops A Inspectorate General Strategy and Corporate Centre General Secretariat Legal Affairs Human Resources Operations in the European Union and Candidate Countries Operations outside the European Union and Candidate Countries Finance Directorate Projects Directorate Risk Management Directorate Transaction Management and Restructuring European Investment Bank

  14. EIB Lending in Danube Region Member States • EIB’s six priority lending objectives overlap with the three main thematic areas of the Danube Sea Strategy • Signatures EUR 7,6 m in 2008 and EUR 11,8 m in 2009 • EIB borrowers are: • (i) Public sector entities: Sovereign MSs, regions, municipalities and other sub-sovereign public entities • (ii) Private sector entities: leading corporates in all countries requiring financing for their capex and R&D investments • (iii) Financial institutions as a intermediaries for EIB’s Loan dedicated to SMEs and Mid-Cap Loans • In Austria, Hungary, Germany and also the Czech Republic, a large proportion of EIB lending goes to the private sector (knowledge economy and RDI) • In Bulgaria, the Czech Republic, Hungary, Slovakia, Bulgaria and Romania, the main emphasis is on (i) the public sector through loans to meet the national co-financing requirements for the implementation of the EU Funds supported project and (ii) major capital expenditure projects to enhance Cohesion and Convergence European Investment Bank

  15. EIB Lending in the Danube Region in 2007-2009 1) Länder of Baden-Württemberg and Bavaria European Investment Bank

  16. Cohesion Policy 2007-2013 Convergence regions Phasing-in Regions Phasing-out Regions Competitiveness and Employment Regions European Investment Bank

  17. Convergence Lending Leverage – lending, expertise and partnership • Co-financing with EU Structural Funds – funding the national or regional contribution • ERDF, Cohesion Fund, ESF • Individual (large) projects • Sectoral or regional operational programmes • Entire NSRF • Financial Engineering • JESSICA • JEREMIE • (RSFF, LGTT) … • TAC (Technical Advisory + Cooperation) • JASPERS • Other TAC by EIB European Investment Bank

  18. Co-financing with EU Structural Funds • Co-financing with EU Structural Funds – funding the national or regional contribution • The EIB has concluded a number of Structural Programme Loans in Bulgaria, the Czech Republic, Hungary, Romania and Slovakia to co-finance the Operational Programmes • Examples: NSFR Co-financing Facility (Romania) for EUR 1.0bn signed on 24 November 2008: supports the implementation of Romania’s 2007-2013 National Strategic Reference Framework and the Slovakia NDP Framework Loan II for EUR 1.3bn (approved). A similar Bulgarian operation, (EUR 700m) was signed in 2007. • Sectoral / regional programme loans in the Czech Republic and Hungary. European Investment Bank

  19. Project Examples • OEBB WIEN HAUPTBAHNHOF TEN Construction of the new main railway station in Vienna, at the junction of Priority TEN-T railway corridors 17 (Paris-Vienna-Bratislava), 22 (Nürnberg/Dresden-Prague-Vienna-Budapest-Athens/Constanta) and 23 (Gdansk-Warszawa-Brno/Bratislava-Wien). Loan: EUR 400m • SOFIA METRO PROJECT The operation would take the form of a framework loan for the co-financing, together with the European Commission, of Sofia's investment programme including the extension of the metro and the upgrading of the road network. Loan: EUR 105m • VERBUND STYRIA HV TRANSMISSION TEN  The project concerns the construction and operation of a 98km 380kV high voltage electricity line between Burgenland and Graz in Austria. It has been identified as priority TEN-e project of European interest. Loan: EUR 100m • MOLDOVA CHISINAU AIRPORT Technical Assistance to the Promoter for investments in airside infrastructure at Chisinau Airport, including runway and taxiway rehabilitation, passenger apron expansion and reconstruction, provision of airside support equipment and expansion of arrival and departure halls Loan: EUR 20m  European Investment Bank

  20. JASPERS Technical Assistance Partnership in the Danube Region Summary of JASPERS assignments in the Danube Region (early 2010) European Investment Bank

  21. JASPERS Technical Assistance Partnership in the Danube Region Examples of JASPERS assignments in 2009 include: • Bulgaria – Trakia, Maritza and other major motorways, Sofia solid waste management, Gabrovo and Vratza wastewater, River navigation, Burgas urban transport, energy efficiency in schools • Czech Republic – Major railway infrastructure and road schemes, Čistá Berounka water project, clean-up and recultivation of Diamo site in Mydlovary, Prague Metro, research and development • Hungary – Provincial urban transport, Budapest metro, Mecsek-Dráva solid waste • Romania – Motorways and TEN T schemes, river navigation, multimodal terminals, waste management in Bistrita, flue gas desulphurisation at Craiova power plant, regionalisation of water companies, district heating in Timisoara, Iasi and Bacau, broadband provision in rural areas • Slovakia – Motorway and expressway schemes, water supply and treatment • Slovenia – A2 motorway, reconstruction/electrification of Pragersko-Hodos line, flood protection, regional waste management centre in Ljubljana European Investment Bank

  22. EIB Lending in Danube Region tonon-Member States (1) • EIB financing in the Western Balkans (WB) • Loans signed in WB: over EUR 6 bn between 2000 and 2009 • Lending to all countries in WB on the basis of the “Pre-accession mandate” (EU budget guarantee) (EUR 8.7bn over 2007-2013) and at EIB’s own risk under the “Pre-Accession” Facility (EUR 5.5bn over 2007-2013) • Objective: foster economic development and integration process in the EU • Sector focus: modernisation and upgrading of national infrastructure, diversified support to human capital, SMEs, local authorities • Launched with the Commission, Council of Europe Development Bank and EBRD: the Western Balkans Investment Framework in December 2009 • Provision of a joint grant and lending facility for priority investments • Objective: simplify access to credit by pooling and coordinating different sources of finance & technical assistance • Sector focus: infrastructure sectors, small businesses, energy efficiency European Investment Bank

  23. EIB Lending in Danube Region tonon-Member States (2) • EIB Financing in the EU’s Eastern Neighbours • Lending to Ukraine, Moldova, Armenia, Azerbaijan, Georgia and Russia under EU mandate (EUR 3.7bn over 2007-2013) and under the EIB facility (Eastern Partners Facility (EPF), up to EUR 1.5bn) • Loans approved and signed in Eastern Partner Countries: EUR 1.3 bn between 2007 and 2009 • Objective: priority to projects on extended major Trans European Network axes, projects with cross-border implications for one or more Member States and major projects favouring regional integration through increased connectivity. For energy, focus on strategic energy supply and energy transport projects. But also environment, SMEs. • Sector focus: from basic infrastructure and environment to SMEs and investment by European corporates -> expanding sector coverage through EIB facility (EPF) • Co-financing with IFIs and local banks European Investment Bank

  24. Examples of EIB Projects -  the Water Sector Problems: • untreated wastewater • Agricultural run-off • Insufficient flood protection • (insufficient solid waste handling) • (locally poor drinking water) Recent project examples: Moreover • Financing of projects specifically addressing adaptation to climate change -significant experience has been gained in the water sector, particularly with regards to flood management projects. • TA + grants/ loan blending within Western Balkans Investment Framework • Cooperation with ICPDR, DABLAS, RENA European Investment Bank

  25. Examples of EIB Projects -  the Navigation on the Danube Problems: • Sub-optimal use of Danube/ Sava waterways for transport - remaining bottlenecks, notably in upper Danube - shipping fleet needs modernisation - traffic increase needs modern + more efficient ports + transhipment sites - insufficient cross-border cooperation + planning • Danube as sensitive river ecosystem Recent project examples: European Investment Bank

  26. Examples of EIB Projects -  Navigation on the Danube Other projects in the Danube region (selection): • Bosnia and Herzegovina – National roads - Banja Luka - Gradiska: construction of a 29 km long 4 lane motorway section between Banja Luka and Gradiska, and a bridge over the river Sava - € 65M • Bulgaria – Trakia Motorway: construction of two motorway sections on Pan-European Corridor VII between Sofia and Black Sea - € 100M • Romania – Roads rehabilitation V: Strengthening and upgrading of 745 km of National Roads - € 240M; Roads rehabilitation VI - € 450M; • Serbia – Roads and bridges rehabilitation: rehabilitation of some 100 bridges - € 98M; European Roads, incl. Beška bridge over Danube in Novy Sad - € 144M; Corridor X Motorway (E75 Niš - FYROM) - € 384M European Investment Bank

  27. Issues for an efficient implementation of the Danube Strategy • Starting with infrastructure to move to business development, entrepreneurship and support to knowledge economy – but important issues remain in terms of energy, transport and environment (water, waste,…) • Importance of strengthening institutional capability: from projects origination to implementation; developing an integrated approach addressing financial and non-financial needs • Priority to be given to cross-border projects and interconnectivity • Importance of promoting cooperation (between funding sources, MS and non-MS), and exchange of information and best practices • Importance of prioritising investment needs and avoiding fragmentation European Investment Bank

  28. Priorities for a successful Danube Strategy • Proper integration of the territorial dimension • Support to cross-border projects and inter-connection within the Danube region, with a specific attention to linking MS and non-MS countries • Focus on supporting economic competitiveness and accession process for Candidate countries and potential Candidate countries • Emphasis on strengthening cooperation between IFIs for lending in non-MS and on supporting the emergence of public private partnerships. • Focus on environment and sustainable production and consumption of natural resources European Investment Bank

  29. Quality • “good” projects • Life-cycle analysis • Best blending of funding sources and funding architecture • Cross-border projects to avoid “missing links” •  EIB has helped and continues to help European Investment Bank

  30. For more information… http://www.eib.org/ European Investment Bank

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