1. 1 Dr. Hakan Lucius M. Otto Hüsken Original presentation is modified for Internet use. Hazard Risk Management in Europe and Central Asia Workshop Istanbul, October 26th – 28 th, 2004

2. 2 Largest Supranational EIB - European Union’s Financing Institution:  AAA rated, not-for-Profit Institution;  Subscribed Capital EUR 163.7 bn;  Outstanding Lending EUR 259 bn;  EIB Shareholders: Member States of the EU; THE EIB

3. 3 From Reconstruction towards Prevention EARTHQUAKE RECONSTRUCTION EXPERIENCE Italy Greece Algeria Turkey: TERRA 1 for Public Sector; TERRA 2 for Private Sector

4. 4 Private and public equally served WHO CAN BORROW ? Government authorities/agencies Banks Municipalities Private companies

5. 5 EIB and earthquake finance Earthquake damages & loans EarthquakeDamage to Economy % GDPDirect investment Terra, Turkey, 1999 3 - 6.5 bn EUR1.51.5 bn EUR (EIB: 450 m EUR) Attica, Greece, 1999 > 2.3 bn EUR51.3 bn EUR (EIB: 150 mEUR) Algeria, 2003> 5.5 bn EUR83.6 bn EUR (EIB: 230 mEUR) Umbria and Marche, Italy 1997 3.5 bn EUR (EIB > 800 mEUR)

6. 6 high low high Bank’s Learning Curve EIB From Reconstruction to Prevention Post earthquake involvementPre earthquake involvement

7. 7 EIB Earthquake Risk Mitigation - Prevention ClientsPrevention measures Municipalities  Reinforcement of individual urban houses  Development of earthquake safe new housing areas  Urban renovation projects  Adaptation of public urban infrastructure Commercial and industrial Clients  Reinforcement of production premises  Construction of earthquake safe buildings Social Infrastructure  Reinforcement of individual social infrastructure, schools, hospitals, museums, theaters, public halls, etc… …. Government  Public shelter construction  Emergency infrastructure development (water, power,…)  Public transport projects, airports, ports, railway, ……. Banks  Credit lines for commerce and industry  Credit lines for public infrastructure provision Technical Assistance  TA grants limited to special programmes/regions  TA as part of the loan financed project

8. 8 Bank’s infrastructure: Promoter advice, finance product and innovation, project appraisal, project implementation management, quality control- monitoring, information and stakeholder mangement IMPROVEDPROJECTIMPROVEDPROJECT Bank’s and promoter’s human resources: Expertise creation, recruitement, capacity building, training, human resource development and management Technology: Earquake science, risk models, structural design, warning systems, develop and maintain state-of–the art knowledge and technology Procurement: I nternationally recognised procedures and processes, transparency, competition, reliability Project Design: Planning, approving, tendering, contracting Project implementation: Construction management, supervision, testing Handing over to users: Distribution process, handing over process, utilization follow- up Information, Marketing: Stakeholder information management, public campaign, earthquake awareness management Project Maintenance: Aftercare, inspection, rehabilitation management, risk mitigation Reference: M. E: Porter, Competitive Advantage. Creating ans Sustaining Superior Rperformance, Free Press, 1985 Support Activities Primary Activities EIB Project Development/Implementation Strategy

9. 9 100, Boulevard Konrad Adenauer L – 2950 Luxembourg Tel 00352 4379 – 1 Fax 00352 4379 04 www.eib.org Thank You