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13 brian field

  1. 1. Leadership and Management in Sustainable Development European Summer School Suor Orsola Benincasa University of Naples, 10th July, 2013 Promoting Sustainable Development & Supporting the Recovery European Investment Bank The European Investment Bank Brian G. Field Urban Planning and Development Adviser The European Investment Bank
  2. 2. 2 Problems in financing infrastructure projects Even where underlying investments are sound, in the post crisis environment, projects can face difficulties in accessing finance: European Investment Bank Heightened degree of risk aversion by commercial banks Deteriorating credit rating/debt ceilings Difficulties for smaller private-sector providers to access finance
  3. 3. 3 EIB – Supporting projects promoting EU objectives EU’s financing arm, established by the Treaty of Rome in 1958 EIB’s shareholders are the 27 EU Member States Promoting EU objectives Providing long term loans to the private and public sector, in a broad range of currencies Total lending in 2011: EUR 60.9bn Total lending in 2012: EUR 52.2bn (EUR 79.1bn in 2009) Large increase a consequence of the financial crisis (after a specific mandate from ECOFIN) European Investment Bank
  4. 4. 4European Investment Bank Objectives and Instruments (a response to the financial crisis) Objectives Broadening the financing base for infrastructure investments Increasing awareness and deepening the financial sector servicing such development needs Harmonising and coordinating resources Instruments Medium to long-term senior loans Subordinated loans Letters of credit Guarantees Mezzanine debt instruments Local debt securities Equity Technical Assistance support
  5. 5. 5 Funding strengths and value for customers European Investment Bank Funded mainly through bond issues on international capital markets, exploiting strong market positioning Passing on funding advantage to loan customers Not for profit (but also not for loss) Large and frequent international bond issuer…EUR 71.3bn issues in 2012
  6. 6. 6 Typical Funding Instruments European Investment Bank Investment Loans. Framework Loans. Global Loans. Funds.
  7. 7. 7 EIB Signatures 2012 (in EUR) European Investment Bank
  8. 8. 8 The Leipzig Charter European Investment Bank SUSTAINABLE COMMUNITIES Innovation and education policiesHigh quality public spaces Infrastructure networks and energy efficiency Regenerate deprived neighbourhoods Improve physical environment Training for children and the young Local economy and labour market policies Efficient affordable transport
  9. 9. 9 Overcoming Fragmentation Integrated Planning European Investment Bank An integrated approach to territorial development for effective improvement in the socio-economic conditions of settlements, whatever spatial scale, requires identification of the co-operating elements of infrastructure investment with the evolution of the social capital that should be developed simultaneously in the areas where applied.
  10. 10. 10 Integrated Planning and EIB’s Three Pillars A project assessment with many facets, but three key elements in the appraisal process. European Investment Bank Eligibility, i.e. consistency with EU priorities. Technical quality and economic soundness. Financial viability and adequate security. Projects must also comply with EU procurement, environmental and social protocols.
  11. 11. 11 The EIB Project Cycle 30/07/2013 11
  12. 12. 12European Investment Bank Benefits of an EIB loan Large amounts Broad range of currencies Long maturities Attractive interest rates Catalyst for participation of other banks or financial partners
  13. 13. 13 Value Added of the Bank’s Activities European Investment Bank Support for EU priority objectives Project quality and soundness Financial benefits of EIB funds Technical assistance Project assessment
  14. 14. 14 Facilitating the Recovery An enhanced role for EIB is not the solution to the crisis, but should certainly be part of the solution. European Investment Bank A capital injection of €10 billion Leverage for significant additional borrowing and associated lending opportunities Focus on the EU for the creative and sustainable deployment of additional funds Promoting growth, sustainable development and employment generation
  15. 15. 15 Promoting European Objectives European Investment Bank Evolution of EIB lending activity The EUR 10bn paid-in capital increase will enable a 40% lending growth over the base signature level foreseen in the Operational Plan 2012-2014
  16. 16. 16 Priority objectives for additional funding European Investment Bank Convergence Small and medium-sized enterprises (SMEs) and mid-cap enterprises Environmental sustainability Knowledge economy Trans European Networks (TENs) Sustainable, competitive and secure energy
  17. 17. 17 Some Ingredients for Successful Projects European Investment Bank Informed by a clear plan and/or development strategy. Commitment of, and clear benefits for, all relevant stakeholders both public and private. Exploits the comparative advantage of its locality. Promotes accepted best practice in sustainable development. Exploits innovative financial instruments and, where/when appropriate, takes advantage of technical assistance.
  18. 18. 18 EIB CONTACT INFORMATION Brian G. Field Regional and Urban Division European Investment Bank 100 boulevard Konrad Adenauer L-2950 Luxembourg Tel: +352 4379 83063 Email: b.field@eib.org European Investment Bank