International Seminar on the renewal of Public Transport Bus Fleets  17 September 2012, Skopje, Macedonia Financing Public Bus Transport through international fundings bertram.ludwig@uitp.org

Introduction 2/10 Добар ден Overview about funding in Europe For non-Eu member states Main banks in Europe Project funding Theoretical understanding for practical use Examples 2/10

The European Investment Bank What is the EIB? Which countries are eligible for EIB funding? Distinctive characteristics of EIB Non-profit Policy driven bank AAA credit reputation All currencies Not more than 50% of investment Attracts other investors Mainly EU Different focus outside EU EIB, the Western Balkans and Turkey Cohesion and Convergence Environmental sustainabilty TEN - investment 3/10

The European Investment Bank The EIB and the financing of Public Transport Examples of investment Infrastructure - Rolling stock Project funding and framework loans ELENA: technical assistance Loan period Interest rate Leasing Second hand buses Project request Oradea (Romania) Metz (France) OTL – Oradea Transport Local Metz Métropole Region Municipalities Trams and Buses Buses and BRT system 10 Low floor trams, 20 new buses 17,5km Bus Lane, 27 Diesel Hybrid Buses, Workshop, 3 park&ride stations 16,3 Mio € 50 Mio € 4/10

The European Bank for Regional Development What is the EBRD? Which countries are eligible for EBRD funding? Distinctive characteristics of EBRD Largest financial investor in the Balkan region EIB and EU; 63 countries „Regional Development“ Ex-Soviet area CEEC 29 countries Assisting countries to develop into market-oriented economies Regional Focus Public and private sector investments Direct lending to public transport companies 5/10

The European Bank for Regional Development The EBRD and the financing of Public Transport Examples of investment LIBOR or EURIBOR Anti corruption measurements Up to 35% of requested capital for private sector Public service conract 1370/2007 Gross contacts – net contracts Corporate Development Programmes Dubrovnik & Pula (Croatia) Kaunas (Lithuania) Bus fleet renewal 50 new buses, spare parts, workshop Sustainable transport strategy for historic cities Direct loan to (municipal) bus company: 10 Mio €. No sovereign guarantee Procurement assistance Restructuring of business culture and PT sector. Public Service Contract establishment 6/10

The Asian Development Bank What is the ADB? Which countries are eligible for ADB funding? Distinctive characteristics of ADB Biggest Asian Bank „fields of public concern“ Committed to help emerging countries Creating the framework for private investment Asia Central Asia Armenia, Azerbaijan, Georgia Less regional focus Cooperation with other banks Asia 7/10

The Asian Development Bank The ADB and the financing of Public Transport Examples of investment Project Preparatory Technical Assistance Support of PT as policy goal Client based bank Proper investment regulations, frameworks and contracts. Loan rates: LIBOR Loan period: 10 years Tiblisi (Georgia) Baku (Azerbaijan) Eriwan (Armenia) Lanzhou (China) Metro project Bus project 8/10

Project funding for Bus Investment Requirements & Characteristics Examples Small amount of financial aid Demonstration project Strong committment to PT given PT operator with sufficient knowledge and expertise Small number of buses Along with other projects Mostly EU funded UITP project partner CHIC Cleaner Hydrogen in Cities HCV Hybrid Commercial Vehicles BIOGASMAX EBSF European Bus System of the Future Goal Hydrogen Buses. Long term benefits of hydrogen buses. Hybrid Commercial Vehicles. FP7 funded. Volvo and Solaris city buses Biogas vehicles. Increasing the use of alternative fuels (biogas). Urban bus systems. Broad scope of Bus topics Examples London Prague, Frankfurt, … Lille, Torun, Zielona Góra Budapest, Bucharest, … 9/10

Conclusion & Outlook Strong political committment for PT must be given Money is available but political willingness needs to be strengthened Change in business culture is needed Future projects - UITP To clarify the jungle of financial aid – UITP is ready to assist you Благодарам 10/10