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Presentation - Seventh Roundtable on Financing Agricultural Water - Felipe Ortega

Presentation - Seventh Roundtable on Financing Agricultural Water - Felipe Ortega, Head of Division of Division Agribusiness and Rural Development, European Investment Bank

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Presentation - Seventh Roundtable on Financing Agricultural Water - Felipe Ortega

  1. 1. Roundtable on Financing Agricultural Water Thematic meeting: Sustainable use of water for agriculture 1 FELIPE ORTEGA GIOVANNI MUÑOZ AGRIBUSINESS AND RURAL DEVELOPMENT DIVISION
  2. 2. The EIB: the EU Climate Bank ‣ Natural financing partner for the EU institutions since 1958 ‣ Around 90% of lending is within the EU ‣ Shareholders: 27 EU Member States ‣ Priorities: environment, infrastructure, innovation, SMEs Investing in Europe’s sustainable growth European Investment Bank 2
  3. 3. 3 EIB lending to agri-bioeconomy 2015-2019 European Investment Bank 3 6.2 8.2 4.5 5.5 4.2 0.6 0.8 0.6 1.2 0.9 9% 12% 7% 12% 8% 0% 2% 4% 6% 8% 10% 12% 14% 0 2 4 6 8 10 12 14 2015 2016 2017 2018 2019 EUR Billion NON-EU EU % EIB total lending % EIB total lending
  4. 4. Agricultural Water Management Water Management Practices: ‣ 1. Blue Water ‣ 2. Green Water ‣ 3. Re-used Water EIB aims at a diversified support to public and private promoters along these 3 categories; European Investment Bank 4
  5. 5. Blue Water Management Investment Opportunities 5 ‣ Public/Public-Private Investments - Modernization of irrigation and drainage and other rural infrastructure. EIB Pipeline Examples: Navarra Irrigation Efficiency – EUR 131 M Senegal River Valley Rice – EUR 54,23 M Plan Maroc Vert, Morocco – EUR 85 M National Irrigation Programme of Portugal - EUR 535 M Comunidades de Regantes, Spain – EUR 300 M Irrigated Agriculture Improvement, Cambodia – EUR 161 M Irrigation Rehabilitation, Hungary – EUR 281 M Zletovica Irrigation and Hydro Power, North Macedonia – EUR 131 M Georgia-Zemo Samgori Irrigation Project – EUR 50 M Lower Usuthu Smallholder Irrigation II – EUR 123 M Agro-Environmental Framework Loan – Greece – EUR 1021 M Note: The figures indicate the total project cost related to the investment proposal. Subject to positive outcome of the due diligence, the EIB would typically only finance a fraction of up to 50% of this amount.
  6. 6. Green Water Management Investments in: ‣ Agroforestry ‣ Research and innovation for improved crop varieties with more drought resilience ‣ Soil fertility management Examples of EIB operations: Loans to support RDI programmes by agribusinesses:  improved varieties;  decrease fertilization requirements;  more efficient water and nutrient uptake by plants, etc… European Investment Bank 6
  7. 7. Grey Water Management ‣ Treated urban wastewater use for re-use in irrigation ‣ Re-use of water with bad quality (saline and sodic contamination) for irrigation ‣ Bio-Drainage EXAMPLES of EIB OPERATIONS:  Italy – Abbanoa Water Investments (EUR 200m/824m) Investments in water and waste water infrastructure in the Sardinia Region, including re-usage of treated waste water for irrigation of certain crops  Uzbekistan – Agroforestry/Bio-Drainage: Recovery of degraded saline soils due to high brackish groundwater tables (30.000 Ha; EUR 30m) European Investment Bank 7
  8. 8. EIBs lending criteria in water for agriculture ‣ Sustainable water supply: Existence of RBMPs; avoid use of groundwater; ‣ Accountable use of transboundary waters: requires riparian notification; ‣ Focus on modernization and Resource efficiency: effective water saving partly returned or not abstracted; energy savings: alternative water sourcing, use of RE, technology; ‣ Water storage capacity: favour existing small/medium size dams; ‣ Economic and Financial viability: ERR includes externalities such as GHG emissions: perennial Vs annual crops; increase fertiliser use, etc. ‣ Proper asset management: O&M cost recovery and CAPEX contribution; ‣ User engagement: Water Users Associations - existence and capacities; ‣ Environmental and social: users demand for services; willingness and capacity to pay; avoid resettlement; need for ESIA, SEA and CRA; avoid expansion into high carbon stock and high biodiversity areas.
  9. 9. EIB Contact & Questions Felipe Ortega Head of Division Agribusiness and Rural Development Division Environment and Territorial Development Department Projects Directorate Phone: (+352) 4379 88574 email: European Investment Bank 9 Giovanni Munoz Senior Agricultural Engineer Agribusiness and Rural Development Division Environment and Territorial Development Department Projects Directorate Phone: (+352) 4379 83193 email: