12/07/20131 European Investment Bank Promoting European objectives Dunkerque 12 July 2013 Florence Gaboreaud – Lending Operations in Western Europe (Benelux, France, Ireland, UK)

Content What is the EIB? The EIBs approach to Maritime Transport The EIBs due diligence process EIB financing 12/07/20132

3 The European Investment Bank (EIB) Long-term finance promoting European objectives European Unions long-term lending bank set up in 1958 by the Treaty of Rome. Promoting European objectives, contribution to Europe 2020 strategy Shareholders: 28 EU Member States Governance Board of Governors – EU Finance Ministers Board of Directors - Member States & European Commission Management Committee –EIBs executive body Audit Committee – independent, non-resident

12/07/20134 EIB Signatures

12/07/20135 EIB Signatures 2012 (in EUR)

12/07/20136 EIB Lending by sector : EUR 283 billion

12/07/20137 EIB Lending to the Transport sector : EUR 66.5 billion

12/07/20138 EIB Lending to the Maritime Transport sector

Content What is the EIB? The EIBs approach to Maritime Transport The EIBs due diligence process EIB financing 12/07/20139

10 Background for intervention in waterborne transport Ports form the main gateway to international trade for the EU and the demand for waterborne transport is expected to increase in the future. Sea ports and intermodal logistics centers have a key role to play in the improvement of an integrated and sustainable global supply chain system. On the European coasts, safe and efficient entry points into European markets are needed to avoid unnecessary traffic crossing Europe. Reliable and diversified intermodal connections with the hinterland are also critical to facilitate the flow of goods and reduce transport time and costs. EIB Transport Lending Policy (2011)

The EIBs approach to Maritime Transport Projects must be in line with: EU objectives (White paper, TEN-T policy) EIBs Transport Lending PolicyEIBs Transport Lending Policy ( ) ing_policy_en.pdf 12/07/201311

12/07/ The European priority objectives within the EU: Knowledge Economy (incl. R&D) Trans-European Networks (TENs) Competitive and secure energy Small and medium-sized enterprises (SMEs) and mid-cap enterprises (midcaps) Convergence Climate change Action (incl. sustainable transport) Ports, waterways and shipping projects are generally eligible under TEN-T and sustainable transport.

Trans-European Transport Networks (TEN-T) Develop Trans-European Transport Networks (TEN ports) and major transport axes in Neighbouring Countries. Sustainable Transport Foster modal shift from road to maritime/inland waterway/railway transport by: –allowing maritime cargo to come closer to the final destination, thus reducing cargo onward journey by land transport modes –facilitating the provision of a maritime alternative to road based-freight transport (motorways of the sea/ short-sea shipping); –facilitating the connection between maritime and rail/waterway hinterland transport (multimodal terminals). Reduce vessel emissions and improve their energy efficiency 12/07/ Objectives for intervention in waterborne transport

12/07/ Projects shall demonstrate satisfactory economic and financial returns. The EIB will require that port projects are consistent with the development of the hinterland infrastructures needed for connecting the port with wider transport infrastructure networks (railways, motorways and/or inland water transport). Port projects should be framed in a long term national transport strategy coherent with TEN-T goals at the EU level. EIB Transport Lending Policy Requirements

Projects should be compliant with European environmental legislation The Bank will ask promoters to ensure that the project is climate resilient through appropriate design and operating measures. The Bank requires the promoters to ensure that the principles of the EU Treaty and international best practice are applied when selecting a concessionaire. 12/07/ EIB Transport Lending Policy Requirements

12/07/ Type of maritime projects that the EIB can in principle finance (1/2) Existing ports - common user infrastructure rehabilitation/expansion (breakwater, access channel, maritime locks, navigation aids, quays) – full support Existing ports - new terminals (port authority/infrastructure and/or terminal operator/superstructure and equipment]) – full support in principle, subject to : Selection of concessionaire (competitive, fair and transparent process) For container terminals: traffic commitment of shipping lines (transhipment hubs in particular) New ports Economic justification Environmental impacts Improvement of hinterland transport connections – full support, particularly rail and inland waterways access to ports and intermodal terminals.

12/07/ Motorways of the Sea projects (infrastructure and vessel components) –full support – Vessels and port facilities on routes part of the Motorways of the Sea network New vessels – In the EU: vessels with EU flag to be operated on « eligible routes », originating or ending on a EU country, during the loan life. – Short sea shipping: vessels operating on routes aimed at modal shift from road to maritime transport. – Convergence: vessel operations solely aimed at development region assistance. – Remote community support where no viable alternate to shipping is available (EU island community support). – Replacement of older, less energy efficient or more polluting vessels. N.B. The Bank pays special attention that the ships it finances use best available technologies and that promoters use sound environmental management practices. Vessel and Equipment R&D – R&D to enhance ship environmental performance and energy efficiency (ship hull, propulsion, power plants, waste treatment, etc.). Type of maritime projects that the EIB can in principle finance (2/2)

12/07/ Examples of port projects approved by the EIB Projects in the EU Fos 2XL, Marseilles, France (infrastructure for two container terminals) Kaiserschleuse Bremerhaven, Germany (major maritime lock) Rotterdam Port Second Maasvlakte (infrastructure for major extension of Port of Rotterdam) Pireaus Port II (container terminal expansion involving infrastructure and superstructure ) Duisburger Haven Port of Thessaloniki Purchase of Ro-ro vessel (Baltic Sea and Western Europe Motorways of the Sea) Purchase of Ro-pax vessels (Spain-Italy & Italy-Greece Motorways of the Sea) Spanish ports (Barcelona, Valencia, Cadiz, Bilbao) Port of Antwerp 2 nd Lock Waaslandhaven Jade Weser Container Terminal London Gateway Port of Liverpool River Terminal Port of Genoa Fincantieri RDI

12/07/ Madeira (Portugal) Las Palmas (Spain) EIB projects signed in the last 10 years Projects signed before 2007 Projects signed in Major ports (EU Top 20) Other ports A few examples of EU Ports with no EIB projects in the past Projects in the pipeline

Content What is the EIB? The EIBs approach to Maritime Transport The EIBs due diligence process EIB financing 12/07/201320

Identification – assessment of the projects eligibility Pre-Appraisal – preliminary assessment of the projects suitability Appraisal – assessment of the soundness of the project, taking into account technical, procurement, economic/financial aspects, environmental and social impacts of the projects Negotiation – signature of the contract. Requires previous approval from the EU Commission What are the steps of EIB Lending? EIB Project Cycle 12/07/201321

22 What are the steps of EIB Lending? EIB Project Cycle Promoters request EIB Eligibility Banking criteria Monitoring Staff teams Economic Financial Technical Environmental Social Management Committee (Appraisal Fact Sheet) External web Commissions Opinion & Member States Opinion Newly Identified Projects PIN Lawyers Contract Negotiation Board of Directors Loan Approval (Board Report) Contract Signature Project Borrower Guarantor 12/07/2013

Alignment with EU objectives & Transport Lending Policy Ensure quality and soundness of projects Improve and support projects and promoters (TA) Aspects typically covered are the following: Promoter/borrower: capacity, track record, shareholders, strategy, project rights. Strategy: Master plan, Business Plan. Project Site: Location, ownership rights, purpose of land use, local permits. Environment: Compliance with EU Environmental Directives: SEA, EIA, screening decision, Natura 2000, Habitats / Birds, cumulative impacts, public consultation; EIBs Statement on Environmental Principles and Standards. Technical Appraisal of projects 12/07/201323

Technical aspects: project design, unit costs. Procurement: Compliance with EIBs Procurement policy: EU Directives on procurement, selection process of the concessionaire. Project timing: permits and authorization plan, construction schedule, operation date. Economic and financial profitability: CBA, analysis of alternatives. Technical Appraisal of projects 12/07/201324

Content What is the EIB? The EIBs approach to Maritime Transport The EIBs due diligence process EIB financing 12/07/201325

26 EIB financing Project Finance Bespoke structured finance e.g. London Gateway Corporate Finance / Senior debt Public authorities Private companies Long term funding to match asset life subject to credit quality of borrower EIB aims to offer a financial advantage over commercial funding: interest rates, maturities and terms 12/07/2013

27 For more information Tel: (+352) /07/2013