14 September 2010, ACP House, Brussels, Belgium1 Technical Meeting on the Development of Mineral Resources Presentation by Stéphanie Guihard-Brand and Eberhard Gschwindt Development financing instruments of the EIB in the ACPs, with a particular focus on the mining sector

14 September 2010, ACP House, Brussels, Belgium Background information on the EIB The EIB in the ACP countries 1. Structure of the presentation Guiding principles 4. Illustrating our action through concrete projects

14 September 2010, ACP House, Brussels, Belgium3 EIB: background Information Promoting European Objectives

14 September 2010, ACP House, Brussels, Belgium4 EIB: Background Information Birth: Treaty of Rome, 1958 Purpose: Provide long term lending to promote European objectives Shareholders: 27 EU Member States Governance: Board of Governors-EU Finance Ministers Board of directors-Member States & European Commission Management Committee-EIBs executive body Audit Committee-Independent, non-resident

14 September 2010, ACP House, Brussels, Belgium5 EIB lending outside the EU in 2009: EUR 8.6 bn –Pre-accession countries Candidate countries - Croatia, Turkey and the FYRM* Potential candidate countries in the Western Balkans –European neighbourhood Mediterranean Neighborhood (FEMIP) Russia and Eastern Neighbours –Co-operation policy Africa, Pacific and Caribbean States (ACP) Overseas Countries and Territories (OCT) South Africa Asia and Latin America (ALA) * Former Yugoslav Republic of Macedonia SUPPORTING EU DEVELOPMENT AND COOPERATION POLICIES

14 September 2010, ACP House, Brussels, Belgium6 The EIB & the African, Caribbean and Pacific States Committed to economic growth and sustainable development

14 September 2010, ACP House, Brussels, Belgium7 ACPs: the oldest mandate entrusted to the EIB (1963) Since 2003: Cotonou Partnership Agreement Builds on the acquis of over 45 years of experience Sources of funding: -European Development Fund (EDF) -EIB Own Resources EIBs role focuses on the Financial Cooperation: managing the Investment Facility & lending from its own resources EIB lending in the ACPs

14 September 2010, ACP House, Brussels, Belgium8 Since 2003: breakdown by sector of project signed

14 September 2010, ACP House, Brussels, Belgium9 Infrastructure*Financial sector Projects that foster: regional integration environnemental sustainability: renewable energy/climate change growth/ development: job creation and poverty alleviation (ESIAF) cooperation with bilateral and multilateral donors * Supported by: EU-Africa Infrastructure Trust Fund and the Water/Energy Facilities STRATEGIC FOCUS EnergyWaterTransportsSMEsMicrofinance - mainly through intermediaries -- public & private sector -

14 September 2010, ACP House, Brussels, Belgium10 OTHER SECTORS: - industry, commodities, services - Provision of long term finance not available locally Provision of long term finance not available locally Mining: EITI initiative, ESIAF: high financial & economic outputs Industry & agro-business: - SME focus (through credit lines) - export oriented undertakings Sugar sector: close cooperation with the EC Tourism sector - economic context/political stability/governance issues

14 September 2010, ACP House, Brussels, Belgium11 Guiding principles Taking more risks, in a controlled manner for more value-added

14 September 2010, ACP House, Brussels, Belgium12 EIB lending in ACPs & OCTs* * Overseas Countries and Territories

14 September 2010, ACP House, Brussels, Belgium13 Economic growth Poverty reduction & Millennium Development Goals Private sector development, through Foreign Direct Investors, Local private sector Financial sector Commercialy viable public entities The objectives The means Use of a wide range of risk-bearing instruments under IF Value added of the IF The constraints: Ensure the long term sustainability of the IF through risk pricing Mitigate the risk of MS as guarantors vs. developmental objective EIB and the Cotonou Agreement Investment Facility

14 September 2010, ACP House, Brussels, Belgium14 EIB terms and conditions Subsidies are available: -for project related technical assistance -to ensure concessionality whenever required EIB operates on market related terms: risk pricing, cost recovery Long maturities and grace periods EIB = catalyst encourages co-financing max. 50% of funding provided by EIB Direct or indirect intervention (major /smaller scale investments)

14 September 2010, ACP House, Brussels, Belgium15 Technically sound Financially viable Bear a positive impact on the economy: - economic and social impact assessment framework - Comply with environmental protection and procurement regulations: - EIB environmental and social guidelines- Project requirements

14 September 2010, ACP House, Brussels, Belgium16 Illustrating our action through concrete projects

14 September 2010, ACP House, Brussels, Belgium17

14 September 2010, ACP House, Brussels, Belgium18

14 September 2010, ACP House, Brussels, Belgium19 Lumwana 2001

14 September 2010, ACP House, Brussels, Belgium20 Moma 2002

14 September 2010, ACP House, Brussels, Belgium21 Ambatovy 2006

14 September 2010, ACP House, Brussels, Belgium22 Thank you !