Transcript Mr Peter Coveliers

EIB LENDING TO CITIES - REGIONS
FINANCE CONFERENCE – LJUBLJANA
REGION
28 May 2003
Peter Coveliers
Senior Loan Officer
00352 4379-6336
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FINANCING IN CENTRAL EUROPE
EUR 16.2 billion (1990 - 2001)
Estonia 200
Latvia 208
Lithuania 297
Poland 4 908
Slovak Rep. 1 256
Czech Rep. 2 847
Romania 2 339
Hungary 2 175
Slovenia 998
Bulgaria 989
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Presentation Outline

The European Investment Bank–the EU’s Financial Institution
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Lending to Cities/Regions

The Ljubljana Public Transport
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Past experience in European Urban Transport Projects
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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 lessdeveloped regions in all sectors of the economy
•Translated into the Framework regulation N° 1260/99
A priority mission assigned to the Bank
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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.
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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)
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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
Of which EIB Loans
159 Million
80 Million
N.B. In each case, EIB loans focus on selected priotity measures pertaining to a
number of sectors/intervention axes.
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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
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Lending to Cities/Regions (II)
Success Criteria
for Urban Investment
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Strategic background
Clear objectives and performance benchmarks
Robust local support
Critical size
Critical time span
Coordination between measures
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A virtuous circle …
City’s
credit
standing
Urban
investment
quality
Economic
strength and
integration
impacts
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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
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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!).
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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.
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Past experience in European
Union
Urban Transport Projects
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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”
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