1. EIB Smart Cities financing
Smart Cities & Internet of Things, Bratislava, 27/11/2017
European Investment Bank Group

2. The European Investment Bank (EIB)
EIB is the EU’s long-term lending bank set up in 1958 by the Treaty of Rome, headquartered in Luxembourg
EIB shareholders are the 28 EU Member States
Largest multilateral lender and borrower in the world
Around 400 projects annually in more than 160 countries
Around 10% of financing is for projects outside the EU
Financing is in support for EU priority objectives (climate change, infrastructure, energy, SMEs, regional development, etc.)
The EIB, as the EU Bank, fully supports this transition. In fact, climate action is one of our core lending priorities.
In September last year the Bank adopted its Climate Strategy which builds on the experience so far and articulates our long term vision around three strategic areas that we want to develop further:
1. Proactive development of a pipeline of high impact projects, financial innovation, and developmental support for the Green Bond market
2. Increase resilience to climate change of our operations, plus an increase in adaptation investments and the development of climate risk and vulnerability assessment tools
3. Further mainstreaming of climate change considerations through all the activities we finance

3. EIB products

4. EIB financing to Smart Cities
At the European Investment Bank, we believe that smart city investments need to be grounded in an integrated planning framework. Through consultations with citizens, smart cities meet their real needs.
European Investment Bank Group

5. EIB Smart Cities Approach
What is for the EIB a SMART CITY PROJECT ?
Sustainable
+ Integrated
+ Inclusive
+ Innovative
For the EIB a „smart“ project shall be:
Sustainable = the Project should meet the sustainability principles of the EIB, i.e. standard eligibility criteria.
Integrated = the project should form an integrated part of and contribute to the implementation of a smart city strategy/plan, which shall combine multiple sectors and targets, multiple objectives, and explicitly considers the interconnectedness of key policy and investment decisions.
Inclusive = the preparation of the project shall involved all relevant stockholders (e.g. their citizens directly or through their associations, as well as the representatives of economic, social, cultural and political organisations).
Innovative = the project shall involve the application of new technology or other forms of innovation in the way it is designed, implemented and/or operated.
European Investment Bank Group

6. EIB Smart Cities Concept Brief
Smart cities plan and execute investments in their territories on the basis of medium to long term integrated strategies and target sustainable development.
Have a multisector sustainable development strategy
Smart cities ensure efficient use of human capital, resources and assets to optimise their comparative advantages.
Utilise their comparative advantage
Smart cities take into account the views of all the stakeholders, among them their citizens directly or through their associations, as well as the representatives of economic, social, cultural and political organisations.
Consult citizens and stakeholders
Smart city projects analyse costs and benefits, sustainability over their life-cycle, integration within the urban system and other planned investments, as well as overall consistency with the urban or regional development strategy.
Adopt a comprehensive approach in the making of investment decisions
Smart cities invest in advanced technologies, in particular in information and communication technologies.
Use new technologies, skills and innovation
Smart cities foster an innovative ecosystem through investment and by encouraging and collaborating with universities, industry and other partners to put in place the infrastructure, services and skills needed to support and nurture innovation.
Foster a pro-innovation environment
European Investment Bank Group

7. EIB Smart Cities Approach
What is for the EIB a SMART CITY PROGRAMME ?
SUSTAINABLE STRATEGY / PLAN
+ SMART CITY investments represent at least 30%
For the EIB a „smart“ project shall be:
Sustainable = the Project should meet the sustainability principles of the EIB, i.e. standard eligibility criteria.
Integrated = the project should form an integrated part of and contribute to the implementation of a smart city strategy/plan, which shall combine multiple sectors and targets, multiple objectives, and explicitly considers the interconnectedness of key policy and investment decisions.
Inclusive = the preparation of the project shall involved all relevant stockholders (e.g. their citizens directly or through their associations, as well as the representatives of economic, social, cultural and political organisations).
Innovative = the project shall involve the application of new technology or other forms of innovation in the way it is designed, implemented and/or operated.
The EIB is keen to help cities to create tailor-made solutions and finance smart investments that stimulate the development of your city.
European Investment Bank Group

8. EIB Smart Cities Approach – project examples
European Investment Bank Group

9. What is needed to succeed?
Transparency
Feedback mechanism & incentives
Citizens participation
Empowerment
Capacity
Accountability
Vision
Plan
Creditworthiness
Private sector
mobilization
Fiscal autonomy
Decision making authority
Clear intergovernmental
frameworks
European Investment Bank Group

10. EIB Smart Cities Products
Characteristics
Example
Investment Loan
Direct loan to a single SMART urban investment project
ROUEN ECO-QUARTIERS FLAUBERT-LUCILINE
Direct Framework Loan FL
Loan to a SMART urban investment programme
KRAKOW INTELLIGENT AND SUSTAINABLE DEVELOPMENT
Intermediated FL
Dedicated Multi-Beneficiary Intermediated Loan targeting smart urban investments
BELFIUS SMART CITIES CLIMATE & CIRCULAR ECONOMY
Equity Investment
Investment in an urban infrastructure investment fund
GINKGO FUND
European Investment Bank Group

11. EIB Smart Cities Products – Project examples
ROUEN ECO-QUARTIERS FLAUBERT-LUCILINE
Remediation of port/ industrial brownfields
Preparation of sites for mixed residential, commercial, public space, culture, leisure uses.
Emphasis on sustainable mobility, near-passive energy municipal building, geothermal heating network
European Investment Bank Group

12. EIB Smart Cities Products – Project examples
KRAKOW INTELLIGENT AND SUSTAINABLE DEVELOPMENT
Framework Loan with a City.
Co-finance Intelligent and Sustainable Development projects
Supports the 2030 City Strategy of Kraków aiming at using modern technology to improve urban space and public transport as well as interacting with citizens to increase quality of life.
Covers urban roads, sustainable mobility schemes, thermo-modernization of buildings, urban renewal and regeneration, social housing, ICT and other urban infrastructure.
European Investment Bank Group

13. EIB Smart Cities Products – Project examples
BELFIUS SMART CITIES CLIMATE & CIRCULAR ECONOMY
Intermediated framework loan with a bank.
Covers wide range of SMART investments and promoters in Belgium: Smart is not only for large cities!
Support to investments in urban renewal, urban infrastructure, social and affordable housing, energy efficiency, renewable energy, sustainable transport, water, solid waste and ICT.
Stimulates best practice: integrated approach, innovative governance, use of tested smart technology, consultation.
Relies on an intermediary bank with technical capacity and market reach in the municipal market.
European Investment Bank Group

14. EIB Smart Cities Products – Project examples
GINKGO FUND
The Ginkgo Fund is constituted as a closed-end risk capital investment vehicle (or SICAR: “Société d’Investissement en Capital à Risque”) established under the laws of Luxembourg.
The Fund’s purpose is to acquire a portfolio of brownfield sites in Belgium and France, to clean them up using innovative environmental remediation technologies, and either to sell them for further real estate development or to proceed with real estate development through the planning and construction of energy efficient buildings (housing, and commercial or office space) with subsequent property resale.
The Placement Memorandum further stipulates that the development of the sites will be in accordance with the integrated urban development strategies of the appropriate local authorities.
European Investment Bank Group

15. Contact Details Useful links: www.eib.org
Celia ALVAREZ RODRIGUEZ
Senior Loan Officer, Public Sector Division
Czech Republic, Hungary and Slovakia
Phone: (+352)
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg
Kamil DÖRFLER
Urban Specialist, Urban Development Division
Project Directorate
Phone: (+352)
Useful links:
EIB Blog on Smart City Projects
European Investment Advisory Hub
„Find the support your project needs“
Radoslaw OSSOWSKI-BARBETTI
Head of EIB Group office in Bratislava
Phone: (+421)
Eurovea Central 1
Pribinova 4
Bratislava, Slovakia
European Investment Bank Group