Presentation on theme: "1 EIB LENDING TO CITIES - REGIONS FINANCE CONFERENCE – LJUBLJANA REGION 28 May 2003 Peter Coveliers Senior Loan Officer 00352 4379-6336."— Presentation transcript:
1 EIB LENDING TO CITIES - REGIONS FINANCE CONFERENCE – LJUBLJANA REGION 28 May 2003 Peter Coveliers Senior Loan Officer 00352 4379-6336
2 Lithuania 297 Latvia 208 Czech Rep. 2 847 Slovak Rep. 1 256 Bulgaria 989 Romania 2 339 Poland 4 908 Hungary 2 175 Slovenia 998 FINANCING IN CENTRAL EUROPE EUR 16.2 billion (1990 - 2001) Estonia 200
3 Presentation Outline The European Investment Bank–the EU’s Financial Institution Lending to Cities/Regions The Ljubljana Public Transport Past experience in European Urban Transport Projects
4 The European Investment Bank – the EU’s Financial Institution (I) Title XVII of the Treaty : Community actions to strengthen economic and social cohesion are supported through the Structural Funds, the Cohesion Fund and the EIB Art 267 a) of the Treaty : The Bank shall facilitate the financing of projects for developing less- developed regions in all sectors of the economy Translated into the Framework regulation N° 1260/99 A priority mission assigned to the Bank
5 The European Investment Bank – the EU’s Financial Institution (II) The Commission proposes guidelines to set out priorities for structural assistance (EIB is consulted in the process) Member States prepare their National Development Plan. The EIB assists the MS during this process by : - providing historical data of its lending activity by sector/areas - identifying with the MS domains for its future lending activity - establishing potential amount of loan financing within the Plan.
6 The European Investment Bank – the EU’s Financial Institution (III) EIB analyses the NDP and transmits comments to DG REGIO (interservice consultation) EIB participates in the negotiations between MS and EC on a modulated basis : - no interference in setting the priorities and allocating grants (MS & COM decision) - intervenes mainly when optimizing or complementing grants with loans - helps finalising and potentially expanding the financial plan with indicative loan amounts (for the whole period or part of it)
7 The European Investment Bank – the EU’s Financial Institution (IV) Andalucia Total Cost 11709 Million EU Structural Funds 7841 Million State Budget 2317 Million Regional Budget 1551 Million Of which EIB Loans to date 80 Million Cantabria Total Cost 519 Million EU Structural Funds 297 Million State Budget 57 Million Local budgets 7 Million Regional Budget 159 Million Of which EIB Loans 80 Million N.B. In each case, EIB loans focus on selected priotity measures pertaining to a number of sectors/intervention axes.
8 Lending to Cities/Regions (I) Assisting Urban sustainable Development: Channels and Promotors National and Local governments Large Stand-alone projects Local single purpose development agencies Specialised intermediaries Public Private Partnership
9 Lending to Cities/Regions (II) Success Criteria for Urban Investment Strategic background Clear objectives and performance benchmarks Robust local support Critical size Critical time span Coordination between measures 9
10 A virtuous circle … 10 Urban investment quality Economic strength and integration impacts City’s credit standing
11 Ljubljana Public Transport (I) Succes Factors Clear Commitment from all stakeholders (Ministries of Transport and Finance, SZ, the Region/City of Ljubljana) Technical preparation with clear, realistic scope of the project (TTK feasibility study) Identify promotor / sponsor Financial / economic analysis
12 Ljubljana Public Transport (II) What can the Bank offer Assistance in the structering of the deal (technical and financial) Relationship with European Commission – although not setting priorities, this is done at national level Long term (15-20 years) concessional financing Borrower could be Government/Local Bank or Municipality/Municipal entitity (10% cap on municpal lending!).
13 Ljubljana Public Transport (III) Information requirements General and legal info about the promotor/borrower, its principal partners or sponsors Technical and environmental data of the Project Economic data (market demand, jobs created, economic rate of return) Financial data (operating costs balance sheet, financial statements, financing plan of the project and scheduled of projected expenditures, procurement plan) Financial structure incl guarantuees/security.
14 Past experience in European Union Urban Transport Projects Saarbrucken: Strasseninfrastruktur Saarland (EUR 80 M) Montpellier: Tramway de Montpellier (EUR 113 M) Strasbourg: Tramway de Strasbourg (EUR 46 M) Orleans: Tramway d’Orléans (EUR 46 M) Valencia: Metro de Valencia II (EUR 110 M) Barcelona: Tranvia Barcelona Baix Llobregat (EUR 136 M) Copenhagen: Danish Motorway III (EUR 69.5 M) Budapest: Infrastructure & Services (Tramcar II) (EUR 75 M) Krakow: Urban Transport (EUR 45 M) => see brochure “Urban Development”