Transcript EIB Corporate presentation 2013

Financing investments in the
shipping sector
Shipping and the Law, Naples 3 October 2013
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European Investment Bank Group
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The European Investment Bank at a glance
• Providing finance and expertise for sound and sustainable
investment projects
• Natural financing partner of the EU institutions
• Shareholders: 28 EU Member States
• Largest multilateral lender and borrower in the world
• Raises funds on the international capital markets
• Passes on favourable borrowing conditions to clients
• More than 400 projects each year in over 160 countries
• Headquarters in Luxembourg and some 30 local offices
• Around 2 000 staff:
• Not only finance professionals, but also engineers, sector
economists and socio-environmental experts
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The EIB: Supporting EU policy goals
• Sustainable growth and jobs in Europe
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Innovation and skills
Trans-European Networks
Sustainable, competitive and secure energy
Financing smaller businesses
• Economic and social cohesion
• Special support for economically weaker regions
• Helping regions absorb EU funds
• Environmental sustainability
• Climate action
• Sustainable transport
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European Investment Bank Group
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The EIB: loans signed and disbursed
from 2008 to 2012
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European Investment Bank Group
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EIB Lending to transport sector
2012: EUR 14.5 billion
Urban
32%
Air
3%
Maritime
5%
Roads,
Motorways
30%
Rail
30%
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Transport lending guidelines
 Strategic Transport Projects (incl. Trans-European Transport Networks
(TEN-T))
• develop Trans-European Transport Networks (TEN ports) and major
transport axes in Neighbouring Countries
 Sustainable transport
 Foster modal shift from road to maritime/inland waterway/railway transport
by:
• allowing maritime cargo to come closer to the final destination, thus
reducing cargo onward journey by land transport modes
• facilitating the provision of a maritime alternative to road based-freight
transport (motorways of the sea/ short-sea shipping)
• facilitating the connection between maritime and rail/waterway hinterland
transport (multimodal terminals)
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Transport lending guidelines
 Regional Development
Support projects located in ‘Convergence’ regions
 Knowledge Economy (i2i)
Support R&D projects which feature a technological process or product
innovation.
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Eligibility (i)
 TENS (Motorways of the Seas):
• Essential for the achievement of an efficient and cohesive Communitywide transport system
• Often shipping provides the only vehicle for imports and exports to and
from some European islands and peripheral maritime regions.
• Specialised vessels, such as tugs and pilot vessels are essential for the
operation of the Trans-European Ports Network under adequate safety
conditions
 EU regional development:
• Shipping ensures the security of supply of energy, food and commodities
and is indispensable for passenger transport and tourism in many
regions
• Maritime industries are an important source of employment and income
for the EU economy
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Eligibility (ii)
 Sustainable transport:
• Short sea shipping and inland waterway transport solutions constitute
sustainable alternatives to road transport corridors and have the
potential to solve road congestion problems
• Focus on supporting the development of clean technology, and
increased fuel efficiency as well as more concentrated effort in the safe
and environmentally efficient methods of phasing out older and less fuel
efficient vessels
 Investment in RDI:
• For the reasons explained above, but also
• To maintain the lead that EU has in world maritime equipment,
components and specialist vessel industry
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Maritime transport projects
Examples of projects EIB could finance
 Motorways of the Sea projects (infrastructure and vessel components) –full support
• Vessels and port facilities on routes part of the Motorways of the Sea network
 New vessels
• In the EU: vessels with EU flag to be operated on « eligible routes », originating
or ending on a EU country, during the loan life.
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Short sea shipping: vessels operating on routes aimed at modal shift from road to
maritime transport.
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Convergence: vessel operations solely aimed at developing region assistance.
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Remote community support where no viable alternate to shipping is available (EU
island community support).
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Replacement of older less energy efficient vessels.
N.B. The Bank pays special attention that the ships it finances use best
available technologies and that Borrowers use sound environmental
management practices.
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EIB funded vessel projects in the EU
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Ro-ro vessels (Baltic Sea and Western Europe Motorways of the Sea)
Ro-pax vessels (Spain-Italy & Italy-Greece Motorways of the Sea)
Feeder Containers linking EU ports with Africa
Car carriers linking EU, West Africa and South America
Offshore wind turbine installation vessels
Ro-pax vessels incorporating LNG technology
LNG Engine retrofitting
Cruise ships
EIB funded vessel projects outside the EU
• Istanbul Urban Transport, Turkey (ferries for the Bosphorus)
• Ro-Pax ferry – Linking Dakar with Ziganchor in Sénégal
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Maritime transport projects
Examples of projects EIB could finance
 Vessel R&D
R&D to enhance ship environmental performance and energy efficiency
(ship hull, propulsion, power plants, waste treatment, etc).
 Shipbreaking
Development of safe and environmentally sound ship decommissioning
facilities.
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EIB funded marine R&D activities
 Electric motors - thrusters with increased efficiency and reduction of fuel
consumption
 Dynamic Positioning Systems for vessels, and Automation systems for
marine propulsion applications
 Heat Exchangers for Fresh water generation on board ships, high speed
separators for onboard bilge water cleaning systems, marine sludge
dewatering system and oil mist separation
 Sealing solutions for use in Offshore applications such as buoyancy
offshore applications, rubber offshore products and sub sea solutions / deep
water drilling applications
 Improvement of marine engines in order to comply with increasingly strict
exhaust regulations
 Generators and electric power distribution systems for ships
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Vessel acquisition requirements
 All shipping financed by EIB under EU eligibility should have an EU flag to
ensure compliance with European safety, operating and environmental
norms. Furthermore, under an EU eligibility, Bank financed vessels are to
operate to or from an EU port.
 As a strict minimum, all shipping projects will adhere to all EU and IMO
safety and environmental rules and regulations with regard to the
construction and operation of vessels.
 For projects involving the expansion of the deep-sea fleet, the project
implementation will result in an overall improvement of the shipping line
environmental performance.
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Procurement guidelines
 As a general rule the Bank will require the borrower to consult at least five
companies from at least three different countries. Should there not be
enough shipyards with the technical capabilities to uphold these conditions,
the Bank will ensure that the result of the tendering process is in accord with
the project’s best interests, and respects the principles of economy, fairness
and transparency.
 The Bank will, on the basis of the available information, take steps to confirm
that project vessel prices are in line with market prices and, in co-operation
with the EU Commission (under Article 19), will check the existence of any
outstanding issues concerning Intellectual Property Rights, potential
breaches of trade agreements and, as far as possible the risk of distortions
caused by anti-competitive practices (including, inter alia, state aid, direct
subsidisation, injurious or below-cost pricing, or subsequent public rescue of
bankrupt companies) in the producer country or in the shipyard concerned.
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Financing Facilities
2 main facilities
 Direct Loans
Large-scale projects (investment cost > EUR 25m)
 Intermediated Loans (investment cost < EUR 25m)
• Small and medium-scale projects (particularly to
SMEs) via national and regional intermediary banks
• Lending decision remains with the financial
intermediary
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Project Requirements
Projects must:
 Meet at least one of the EIB’s objectives
 Be technically sound
 Be financially viable
 Show an acceptable economic return
 Comply with environmental protection and
procurement regulations
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The EIB project cycle
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Thank you!
More information at: www.bei.org
[email protected]
Tél. : +352 4379-22000
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European Investment Bank Group
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