1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. Lending in support of regional development
Between 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

8. 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:
Support for the Multiannual Investment Plan, particularly in the transport, healthcare and cultural heritage sectors
PJ/ERD/REGU
European Investment Bank

9. 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

10. Project example – EU Regional Policy
EU Funds Co-financing – 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:
All Lithuanuia - NUTS III region ?
PJ/ERD/REGU
European Investment Bank

11. Project example – EU Regional Policy
Benefits
Implementing the OPs is a productive way of counteracting the economic crisis by promoting employment
Cohesion Fund , 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

12. 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:
All Lithuanuia - NUTS III region ?
PJ/ERD/REGU
European Investment Bank

13. 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
students expected to benefit
Project vital for the region’s economic and social development
PJ/ERD/REGU
European Investment Bank

14. 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

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