1. 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

2. 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

3. 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

4. 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
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

5. 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

6. 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

7. 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

8. Thank you ! Angel Diez (Mr.) – Loan Officer Caribbean (public sector)
/ phone:
European Investment Bank