EIB activities and the OCTs The European Investment Bank (EIB) EIB activities and the OCTs 2nd Summit of OCT Energy Ministers Brussels, June 2016 Angel Diez, EIB Loan Officer for the Caribbean European Investment Bank

The European Investment Bank (EIB) European Union’s long-term lending bank set up in 1958 by the Treaty of Rome (Shareholders: 28 EU Member States) Long-term finance promoting European objectives In the OCTs, under the “Overseas Association Decision”(OAD) Sources of funding European Development Fund (EDF), i.e. Member States budget EIB Own Resources European Investment Bank

European Investment Bank Sectors of Intervention Infrastructure Financial sector Energy Water Transport Telecoms SMEs Microfinance - public & private sector - - mainly through intermediaries - Top horizontal objectives : private sector development, including support for small and medium- sized enterprises (SMEs); climate change mitigation and adaptation. European Investment Bank

Financial Resources Funds managed by the EIB : the Cotonou Partnership Agreement & Overseas Association Decision European Development Fund – EDF (EU Member States’ budgetary funds) EIB Own Resources Investment Facility (IF) revolving fund Junior or subordinated loans Quasi-equity funding Equity funding Guarantees Local currencies Senior loans* Intermediated loans* Widely traded currencies Interest rate subsidies Technical Assistance  Total capital endowment under 9th , 10th and 11th EDFs ACPs EUR 3,637 m OCTs EUR 48.5 m Amounts available under 11th EDF 2014-2020 ACPs EUR 634 m OCTs EUR 5 m ACPs up to EUR 2,500 m OCTs up to EUR 100 m Including EUR 500m ‘impact financing’ envelope  Up to a maximum of 15% of the overall subsidy envelope * Instruments also available under IF European Investment Bank

What is an eligible project? Must contribute to EU development policy objectives and should be: Technically sound Economically justified Financially viable Comply with environmental protection and procurement regulations:  “EIB environmental and social guidelines”  “EIB Guide to Procurement” Qualified counterparties (sufficient experience and adequate financial capacity) Co-financiers (EIB maximum 50% of project cost) European Investment Bank

European Investment Bank Constraints financing OCTs projects  challenges ahead supporting projects in OCTs : too small scale projects (smaller than EUR 10 m investment) cannot be supported directly by EIB need of sound financial intermediaries willing to fund SMEs and interested by EIB conditions too large scale projects (requiring funds over EUR 40 m) may not have enough available resources within the OCT endowments compliance with EIB requirements, e.g.  in terms of procurement, credit risk, environment, etc. Small grant envelope for blending European Investment Bank

European Investment Bank Operations financed OCTs In EUR PROJECT YEAR AMOUNT New Caledonia BCI – Ligne de Credit Environnemental 2007 5,000,000 French Polynesia SOCREDO – Ligne de Credit Environnemental NC - Ligne de Credit Environnemental II 2010 10,000,000 SOCREDO – Ligne de Credit Environnemental II Banque de Tahiti Ligne de Credit Environnementale 2014 8,000,000 SOCGEN - Ligne de Credit Environnemental 2009 European Investment Bank

Thank you ! Angel Diez (Mr.) – Loan Officer Caribbean (public sector) Email: a.diezfraile@eib.org / phone: +352 4379 88456 European Investment Bank