European Investment Bank EUROPEAN INVESTMENT BANK Promoting European objectives The EIB and Regional Development Wednesday 12th October 2011 Sebastian Hyzyk PJ/ERD/REGU European Investment Bank

The EIB and Regional Development Outline EIB role in EU regional development Lending in support of regional development Project examples Concluding remarks review PJ/ERD/REGU European Investment Bank

EIB role in EU Regional Development Financing ‘projects for developing less-developed regions’ is the objective of the EIB stipulated by the Treaty (Art. 309 TFEU). PJ/ERD/REGU European Investment Bank

EIB role in EU Regional Development EIB provides long-term finance for projects promoting European objectives to Member States, regions and other beneficiaries, by developing financial engineering, blending grants with loans through programme oriented products (Framework Loan, Structural Programme Loan) and through direct Investment Loans for large stand-alone projects PJ/ERD/REGU European Investment Bank

EIB role in EU Regional Development EIB operations support: regional development strategies, implemented by multiannual multi-sector investment programmes, implementation of EU Regional Policy through the Structural Funds Operational Programmes, large projects in the regions. PJ/ERD/REGU European Investment Bank

Programme oriented loans Framework Loan (FL) flexible instrument to finance operations that comprise many smaller projects, Structural Programme Loan (SPL) FL co-financing Structural Funds. PJ/ERD/REGU European Investment Bank

Lending in support of regional development Between 2008-2010 EIB signed EUR 75.8bn of loans in support of the development of less-developed regions, of which EUR 2.8bn were loans in support of the programmes implementing regional development strategies, In the on-going programming period the Bank has already approved EUR 17.4bn of loans contributing to EU Regional Policy implementation and corresponding to EUR 175.9bn of investment costs, Signatures in all MS, but programme oriented lending in particular with BG, CZ, EE, EL, ES, HU, IT, LV, LT, PL, PT, RO, SL PJ/ERD/REGU European Investment Bank

Project example – regional development strategy Zachodniopomorskie regional framework Project costs: EUR 293.3m Loan: EUR 85.3m (29%) EU Funds 50% Promoter: Westpomerania Region Implementation: 2008-2013 Support for the Multiannual Investment Plan, particularly in the transport, healthcare and cultural heritage sectors PJ/ERD/REGU European Investment Bank

Project example – regional development strategy Strong points: Institutional capacity of the promoter strong strategic framework Scope of operation in line with the responsibilities of the Region The project benefits from the EU Funds management and control system PJ/ERD/REGU European Investment Bank

Project example – EU Regional Policy EU Funds Co-financing 2007-2013 – Lithuania Project cost: EUR 9.6bn Loan amount: EUR 1.132bn (11.84%) Duration of loan: 25 years Co-financed with the European Commission Borrower/Promoter: Republic of Lithuania Implementation: 2007-2015 All Lithuanuia - NUTS III region ? PJ/ERD/REGU European Investment Bank

Project example – EU Regional Policy Benefits Implementing the OPs is a productive way of counteracting the economic crisis by promoting employment Cohesion Fund 2004-2006, Six River Basins Programmes, Water and Wastewater Management projects included Low cost of funding, long maturity, certainty and stability High flexibility in both the timing of disbursements and the allocation Synergies with JASPERS, particularly concerning large transport and environment infrastructure schemes Synergies with the JESSICA facility in Lithuania for housing projects – energy efficiency Synergies with JEREMIE for SMEs PJ/ERD/REGU European Investment Bank

Project example – large project COLLEGES NORD DE FRANCE Project cost: EUR 477m Loan amount: EUR 200m (42%) Duration of loan: 25 years Borrower/Promoter: Department du Nord Implementation: 2009-2014 All Lithuanuia - NUTS III region ? PJ/ERD/REGU European Investment Bank

Project example – large project Construction and modernisation of 30 lower secondary schools, accessible to young people with restricted mobility, equipped with high-performance IT facilities and conforming with best practice energy efficiency standards 16.000 students expected to benefit Project vital for the region’s economic and social development PJ/ERD/REGU European Investment Bank

European Investment Bank Concluding remarks classic EIB role – long-term financing and leveraging EU funds promoter’s capacity is crucial and could be enhanced by Technical Assistance (project preparation JASPERS, implementation – EIB TA/JASPERS) Check PJ/ERD/REGU European Investment Bank

European Investment Bank THANK YOU Sebastian Hyzyk Project Directorate Environment and Regional Development Department Regional and Urban Development Division hyzyk@eib.org PJ/ERD/REGU European Investment Bank