1. CEB and the outlook for urban investments through JESSICA Financing Sustainable Investment, Growth and Jobs in Europe’s Urban Areas Open Days, Brussels, 9 October 2007 León HERRERA Deputy Director General for Loans Council of Europe Development Bank (CEB)

2.  Development bank founded in 1956 to contribute to social cohesion in Europe  39 member States to date  €25 billion in projects financed since inception  3 sectoral lines of action: Social integration  Social housing  Urban and rural modernisation  Job creation and preservation in SMEs Human capital  Health  Education Environmental management  Natural or ecological disasters  Protection of the environment  Preservation of historical and cultural heritage The CEB at a Glance

3.  More than EUR 9 billion financed so far in this field, with activity accelerating over the last five years  Overall objective: provision of housing and associated infrastructure for people on low incomes and to vulnerable population  Multi-sector support for urban renewal strategies which involve projects in:  social housing: new construction, renovation of large housing estates, conversion  public infrastructure: protection of the environment, water, waste, renewables.  social infrastructure: schools, health centers, but also financing SMEs, microcredits, CEB’s Added Value : an Integrated Approach to Social Housing

4. Examples of projects: Hungary

5. Hungary 2007: Programme in housing and environmental protection Borrower Ministry of Finance Purpose The loan will contribute to the investment in two important CEB ’s intervention fields: the protection of environment and the social housing. It is the continuation of three components of a 2002 successfully implemented project Components Improvement of the energy efficiency of traditional and pre- fabricated (panel) buildings through insulation and/or the modernization of heating, water supply and electric systems Promotion of the use of renewable energy sources for household heating and energy generation purposes. Investments promoting the use of biomass, geothermic, wind, solar, organic waste and other renewable technologies may be supported. Investment to facilitate the mobility of severely disabled persons in their own apartments or houses Loan amount € 150 Million

6. Social infrastructures in Finland

7. Finland 2007: social infrastructure investments Borrower Municipality Finance, a specialised financial institution CEB’s total lending : € 400 Million 5th programme in favour of MuniFin : loan € 75 Million; social housing sector is included for the 1st time Type of project multi-sector projects : education (52%), health (23%), improving living conditions in urban and rural areas (9%), protection of the environment (10%) Beneficiaries Municipalities, municipal federations and municipally controlled companies Social impact of the four programmes since 1996: 419 sub- projects financed resulting in approximately 7,900 hospital beds modernised and improved school environment for 82,600 pupils Added value Facilitate access to favourable financing resources to smaller Finnish municipalities

8. Examples of projects : Latvia

9. Latvia 2001: Housing Development Lending Programme Pilot project Borrower Mortgage and land Bank of Latvia, (MLBL), Riga - with state guarantee Purpose Improve the quality of the Latvian housing stock, encourage private investment and create appropriate legal and financial environment Three components Renovation or modernisation of multi-storey apartment buildings: loans to legal housing entities (condominiums, co-operatives, associations of owners) Housing repairs or purchase and repairs: loans to private persons Completion of unfinished buildings: loans to housing providers (municipalities, NGO’s or specialised companies) Loan amount € 18.8 Million Social effects planned Renovation of 300 multi-family residential buildings, repair of 1,830 dwellings, purchase and renovation of 550 dwellings

10. 2003: Modernisation of Education Infrastructure in Mezzogiorno  Project scope: sub-projects ranging from the rehabilitation of an old hospice (“Real Albergo dei Poveri” in Naples) that will serve the cultural, educational and social needs of youth to the modernisation of schools and universities  Loan amount: 150 million euros  Expected social benefits: sustain the modernisation of the education system, reduce unemployment and contribute to the promotion of social cohesion and economic development in the South of Italy  Beneficiaries: population of Southern regions of Italy with 32 subprojects benefiting over 171 thousand students

11.  Tri-partite Memorandum of Understanding coordinates EC, CEB and EIB approach to urban renewal and development actions  Joint preparation and financing of social housing projects and other urban infrastructure (public transport, health, education)  Collaboration on JESSICA initiative  As part of its co-operation on the JESSICA initiative, CEB can contribute:  More than 50 years of expertise in developing and financing social housing and associated infrastructures projects in different economic environments  Flexibility in terms of co-financing different sectors of intervention  Integrated approach to social housing and urban regeneration issues, as required under EC regulations pertinent to JESSICA  Capacity to intervene even in small projects CEB’s Involvement in JESSICA Initiative

12. We are here to help you make the best possible use of structural funds. THANK YOU ! Council of Europe Development Bank (CEB) Directorate General for Loans 55, avenue Kléber - 75116 Paris, France Tel: +33 1 47 55 55 00 Fax: +33 1 47 55 37 52 www.coebank.org