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Integrating Cities Conference
Milan
7th November 2018
22/11/2018 European Investment Bank Group 1
EIB Lending – supporting integration now
and in the future
Patricia B. Llopis
European Investment Bank – EIB
22/11/2018 European Investment Bank Group 2
Lending
• Loans
• Guarantees
• Equity
participation
Blending
•Combining EU
grants with EIB
loans
•Leveraging MS
co-financing and
EIB resources
Advising
• Sharing EIB
know-how through
technical and
financial advice
• Strong in-house
expertise
• Advisory
assistance
initiatives
The EIB is the European Union's bank. We provide finance and expertise
for sustainable investment projects that contribute to EU policy objectives.
More than 90% of our activity is in Europe.
EIB Financing European Cities and Regions
European Investment Bank Group 3
• Direct lending operations with cities and regions for
migrant/refugee accommodation and social infrastructure:
o Municipal and regional framework loans for
investment programmes
o Structural Programme Loans to co-finance
European Structural and Investment Funds (ESIF)
2014-20
• Financing for SMEs and micro-finance through banks and
other intermediaries
• Cooperation with municipal banks, national and regional
Promotional Banks
EIB Lending for integration
 Since 2014 the EIB has financed 15 projects
(investment and framework loans) with a
migrant/refugee component.
 EIB lending for integration projects has reflected
the migration flows (peak in 2015)
 The geographical concentration also reflects that –
mainly in Germany and Southern Europe
 Schemes are for social housing with a migrant
component or for temporary accommodation for
refugees but also for multi-sector programmes.
22/11/2018 European Investment Bank Group 4
EIB Eligibility matrix
European Investment Bank Group 5
Sector Eligibility criteria Geographical
scope
Housing and Shelter • Construction of social housing;
• Construction of reception centers for refugees;
• Construction of short-term temporary accommodation;
• Upgrading, replacing and reorganization of existing urban
infrastructure facilities to adapt them to accommodation and facilities
for refugees;
• Associated equipment (ICT components, furniture, etc.);
• Associated initial start-up costs:
 temporary shelter and standard packs for refugees;
 integration-related activities (staff costs for training, language
courses, health care, etc.);
• Development of new enterprises and commercial sites;
EU / non-EU
Infrastructure associated
with migrant/refugee
housing, shelter and
service provision
• Water supply, wastewater management, solid waste;
• Sustainable transport (incl. urban improvement schemes);
• Power supply/transmission/distribution;
• Innovation enabling infrastructures;
• Basic telecom connection to networks;
• Health, education facilities;
• Infrastructure and utility provision for new commercial sites;
EU / non-EU
Protection against
extreme weather events
• Flood/heavy rains protection and mitigation; EU / non-EU
Emergency response
infrastructure/equipment
• Infrastructure and equipment clearly dedicated to humanitarian
purposes (search and rescue vessels);
EU / non-EU
Technical assistance • TA and Consultancy Services for project preparation, management
and supervision
EU / non-EU
Other EIB initiatives for integration
• EIB-ILO Study on the employment impact of EIB
infrastructure investments in Mediterranean
countries
• Youth Employment Programme, starting inside EU
and expanded towards Western Balkan
• Economic Resilience Initiative (ERI), targeting
Western Balkan and Southern Neighbourhood
region.
• Support to EU Urban Agenda Partnership on the
inclusion of migrants and refugees
22/11/2018 European Investment Bank Group 6
Cities financing challenges
 Funding from a variety of sources but mostly EU
and national
 Used in different ways:
• Integration of new arrivals
• Social infrastructure
• Access to labour market
• Integration activities
 Difficulties in obtaining funding:
• High competition
• Difficulties in partnering with other institutions
• Unfavourable structural and administrative conditions
22/11/2018 European Investment Bank Group 7
…Unfavourable structural conditions
Little control over how funding for migrants and
refugees is managed
Complexities in the governance structure
Legal impediments
Asymmetric information
Unreliable and unpredictable national transfers
22/11/2018 European Investment Bank Group 8
…Unfavourable administrative conditions
Administrative burden
Burdensome and complex procedures
Overcomplicated justification of payments
thus increasing administrative costs
Rigid and limiting calls for proposals
Preparation, implementation and
management of EU funds is too onerous
and discouraging
Lack of financial instruments experience
22/11/2018 European Investment Bank Group 9
Inclusion Blending Facility
Potential benefits
Possibility to blend EU grants and loans
Address current financing gaps
Better involvement of cities in the decision
making process
Direct access to funding
Synergies with other sources of funding
22/11/2018 European Investment Bank Group 10
European Investment Bank Group 11
Contact
Patricia B Llopis
Urban Specialist
p.llopis@eib.org
+352 4379 89011
22/11/2018 European Investment Bank Group 12

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European investment bank lending

  • 1. Integrating Cities Conference Milan 7th November 2018 22/11/2018 European Investment Bank Group 1 EIB Lending – supporting integration now and in the future Patricia B. Llopis
  • 2. European Investment Bank – EIB 22/11/2018 European Investment Bank Group 2 Lending • Loans • Guarantees • Equity participation Blending •Combining EU grants with EIB loans •Leveraging MS co-financing and EIB resources Advising • Sharing EIB know-how through technical and financial advice • Strong in-house expertise • Advisory assistance initiatives The EIB is the European Union's bank. We provide finance and expertise for sustainable investment projects that contribute to EU policy objectives. More than 90% of our activity is in Europe.
  • 3. EIB Financing European Cities and Regions European Investment Bank Group 3 • Direct lending operations with cities and regions for migrant/refugee accommodation and social infrastructure: o Municipal and regional framework loans for investment programmes o Structural Programme Loans to co-finance European Structural and Investment Funds (ESIF) 2014-20 • Financing for SMEs and micro-finance through banks and other intermediaries • Cooperation with municipal banks, national and regional Promotional Banks
  • 4. EIB Lending for integration  Since 2014 the EIB has financed 15 projects (investment and framework loans) with a migrant/refugee component.  EIB lending for integration projects has reflected the migration flows (peak in 2015)  The geographical concentration also reflects that – mainly in Germany and Southern Europe  Schemes are for social housing with a migrant component or for temporary accommodation for refugees but also for multi-sector programmes. 22/11/2018 European Investment Bank Group 4
  • 5. EIB Eligibility matrix European Investment Bank Group 5 Sector Eligibility criteria Geographical scope Housing and Shelter • Construction of social housing; • Construction of reception centers for refugees; • Construction of short-term temporary accommodation; • Upgrading, replacing and reorganization of existing urban infrastructure facilities to adapt them to accommodation and facilities for refugees; • Associated equipment (ICT components, furniture, etc.); • Associated initial start-up costs:  temporary shelter and standard packs for refugees;  integration-related activities (staff costs for training, language courses, health care, etc.); • Development of new enterprises and commercial sites; EU / non-EU Infrastructure associated with migrant/refugee housing, shelter and service provision • Water supply, wastewater management, solid waste; • Sustainable transport (incl. urban improvement schemes); • Power supply/transmission/distribution; • Innovation enabling infrastructures; • Basic telecom connection to networks; • Health, education facilities; • Infrastructure and utility provision for new commercial sites; EU / non-EU Protection against extreme weather events • Flood/heavy rains protection and mitigation; EU / non-EU Emergency response infrastructure/equipment • Infrastructure and equipment clearly dedicated to humanitarian purposes (search and rescue vessels); EU / non-EU Technical assistance • TA and Consultancy Services for project preparation, management and supervision EU / non-EU
  • 6. Other EIB initiatives for integration • EIB-ILO Study on the employment impact of EIB infrastructure investments in Mediterranean countries • Youth Employment Programme, starting inside EU and expanded towards Western Balkan • Economic Resilience Initiative (ERI), targeting Western Balkan and Southern Neighbourhood region. • Support to EU Urban Agenda Partnership on the inclusion of migrants and refugees 22/11/2018 European Investment Bank Group 6
  • 7. Cities financing challenges  Funding from a variety of sources but mostly EU and national  Used in different ways: • Integration of new arrivals • Social infrastructure • Access to labour market • Integration activities  Difficulties in obtaining funding: • High competition • Difficulties in partnering with other institutions • Unfavourable structural and administrative conditions 22/11/2018 European Investment Bank Group 7
  • 8. …Unfavourable structural conditions Little control over how funding for migrants and refugees is managed Complexities in the governance structure Legal impediments Asymmetric information Unreliable and unpredictable national transfers 22/11/2018 European Investment Bank Group 8
  • 9. …Unfavourable administrative conditions Administrative burden Burdensome and complex procedures Overcomplicated justification of payments thus increasing administrative costs Rigid and limiting calls for proposals Preparation, implementation and management of EU funds is too onerous and discouraging Lack of financial instruments experience 22/11/2018 European Investment Bank Group 9
  • 10. Inclusion Blending Facility Potential benefits Possibility to blend EU grants and loans Address current financing gaps Better involvement of cities in the decision making process Direct access to funding Synergies with other sources of funding 22/11/2018 European Investment Bank Group 10
  • 11. European Investment Bank Group 11 Contact Patricia B Llopis Urban Specialist p.llopis@eib.org +352 4379 89011