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Danube River

EUROPEAN INVESTMENT BANK Promoting European objectives Presenting the new EU Strategy for the Danube Region - High Level Meeting Financing possibilities by the EIB Budapest, 20th April 2011 VP Dr M. Kollatz-Ahnen. Danube River.

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Danube River

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  1. EUROPEAN INVESTMENT BANK Promoting European objectivesPresenting the new EU Strategy for the Danube Region- High Level MeetingFinancing possibilities by theEIBBudapest, 20th April 2011VP Dr M. Kollatz-Ahnen 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)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 2010 (in EUR) • ∑ = EUR 71.8 bn European Investment Bank

  7. Loan signatures in the EU in 2010 (EUR m) European Investment Bank

  8. EIB signatures: 1958-2010 European Investment Bank

  9. Value Added EIB financing: • Long-term senior investment loans • Financing for up to 50% of project cost (minimum project cost for a direct EIB loan approximately EUR 25 million, i.e. minimum loan EUR 12.5 million) • Long maturity matching economic life of project assets, for state financing up to 20-25 years and 5-7 years grace period • EIB financing offers financial value-added • Sector and financial engineering expertise • Catalytic effect on participation of other financing partners European Investment Bank

  10. 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: (1) Connecting the Danube region; (2) Protecting the environment in the Danube region; (3) Building prosperity in the Danube region; (4) Strengthening the Danube region • Signatures in the Danube Region; EUR 7,6 m in 2008, EUR 11,8 m in 2009 and EUR 10,3 m in 2010 European Investment Bank

  11. EIB Lending in Danube Region Member States • 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

  12. EIB Lending in the Danube Region in 2007-2010 European Investment Bank

  13. 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. The latest example is a EUR 200m IPA fund to support EU Pre-Accession activities in Croatia - co-financing with the EU Commission • Sectoral / regional programme loans in the Czech Republic and Hungary European Investment Bank

  14. JASPERS Technical Assistance Partnership in the Danube Region Summary of JASPERS assignments in the Danube Region (2010) • JASPERS (Joint Assistance to Support Projects in European Regions) initiative, set up in 2006 to help Member States to prepare better project applications proposed for EU Structural Fund grant support. European Investment Bank

  15. EIB Lending in Danube Region to non-Member States (1) EIB financing in the Western Balkans (WB) • Loans signed in WB: over EUR 6 bn between 2000 and 2010 • 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

  16. EIB Lending in Danube Region to non-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 2010 • 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

  17. EIB Role in the Danube River Strategy In summary: • The EIB has a long standing experience of cooperation with most of the Member and non-Member Countries in the Danube region across a range of different sectors. • The EIB’s experience from the Baltic Sea Strategy is a valuable input to the Danube Strategy. • The EIB is well positioned to support developments in all sectors specified in the Danube River Strategy, with the particular emphasis on the following two areas: • EIB support to improving Navigation on the Danube and • EIB support to Danube River Basin Depollution. European Investment Bank

  18. EIB Support to Improving Navigation on the Danube Challenges: • Sub-optimal use of Danube/Sava waterways for transport • remaining bottlenecks, notably in the upper Danube • shipping fleet needs modernisation • traffic increase needs modern + more efficient ports + transhipment sites • Insufficient cross-border cooperation + planning • Danube as a sensitive river ecosystem Recent project examples: • Romania: Improvement of navigation conditions on the Danube Delta – Sulina canal bank protection • Bulgaria: Reconstruction and modernisation of port infrastructure and equipment – Danube Port of Lom • Bulgaria: Construction of a new combined (road and railway) bridge on the Pan-European Corridor IV between Vidin (Bulgaria) and Calafat (Romania) • Slovakia: Construction of a new road bridge across the Danube, together with connecting urban roads - Košicka Bridge Bratislava European Investment Bank

  19. EIB Support to the Danube River Basin Depollution Challenges: • Untreated wastewater • Agricultural run-off • Insufficient flood protection • Insufficient solid waste handling • Locally poor drinking water Recent project examples: • Austria: Upgrading of Vienna’s main wastewater treatment plant Simmering • Bulgaria: Sofia and Vratza Gabrovo and Sliven regions, integrated water management schemes • Czech Republic: Flood protection, investing into projects to mitigate flood risks • Hungary: Construction of wastewater treatment plant, Czepel Island • Montenegro: Support to the first national sustainable waste management system • Romania: Constanta port, Environmental protection • Most new EU member countries: Support to investments proposed under the CF2007-2013 implementation period European Investment Bank

  20. EIB Support to the Danube River Basin Depollution 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

  21. Prerequisites for an efficient implementation of the Danube Strategy • Strengthening infrastructure to move to business development, entrepreneurship and support to knowledge economy - energy, transport and environment (water, waste,…) • Strengthening institutional capacity/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 • Promoting cooperation (between funding sources, MS and non-MS), and exchange of information and best practices • Prioritising investment needs and avoiding fragmentation • Recourse to funding and TA European Investment Bank

  22. EIB contribution to the Danube Strategy • Dissemination of best practices from the BSS • Funding • Co-financing with EU Structural Funds, IPA Fund • Financial Engineering • JESSICA • JEREMIE • (RSFF, LGTT) … • TAC (Technical Advisory + Cooperation) • JASPERS • Other TAC by EIB European Investment Bank

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

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