EUROPEAN INVESTMENT BANK The EIB and Regional...

PJ/ERD/REGU 1 European Investment Bank

EUROPEAN INVESTMENT BANK

The EIB and Regional Development

Sebastian Hyżyk

PJ/ERD/REGU


The EIB and Regional Development

Outline

EIB role in EU regional development

Lending in support of regional development

Project examples

Concluding remarks

PJ/ERD/REGU

3 European Investment Bank

EU Regional Policy implementation

In 2007-13 there are EUR 347bn of EU Funds

available for the Regions:

European Regional Development Fund

European Social Fund

Cohesion Fund

Cohesion Policy implemented through the NSRF

and Operational Programmes

Decentralisation – Member States and Regions

PJ/ERD/REGU


EU regional policy implementation

2007

2013

PJ/ERD/REGU


EU regional policy implementation

2014

2020


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).



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


Structural Programme Loans

Framework Loan (FL)

flexible instrument to finance multi-scheme

operations

Structural Programme Loan (SPL)

FL co-financing Structural Funds

PJ/ERD/REGU


Structural Programme Loans

Why SPL? to deal with operations

(programmes) where individual schemes may

not be known a priori

Specific feature: appraisal focusing on

institutional capacity, quality of the programme

and capacity of the promoter



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.


EIB lending through FLs

EU regional policy 2007-2013 supported

through SPLs with 31 signed operations for

about EUR 20bn in 16 Member States

Regional development strategies supported

through 35 FLs for EUR 4.5bn in 5 Member

States


Greek Structural Programme Loan

EU Funds Co-financing 2007-2013 – Greece

Project cost: EUR 21.5bn

Loan amount: EUR 2.0bn (9%)

Duration of loan: 25 years

Borrower/Promoter: Hellenic Republic

Implementation period: 2007-2015



EIB framework loan supports the implementation of

the Greek National Strategic Reference Framework

2007-2013:

OP Environment and Sustainable Development

OP Competitiveness and Entrepreneurship

OP Digital Convergence

OP Development of Human Resources

OP Education and Lifelong Learning

5 regional OPs

PATHEP Railway Corridor



Expected benefits:

SPL will cater to the recovery and sustainable

development of the Greek economy

acceleration of implementation

EU Funds absorption crucial for the Greek

economy

EIB Technical Assistance, in particular in

challenging sectors such as water and waste

management



At the appraisal stage numerous risks identified

Risk Assessment and Mitigation Action Plan

was requested

EIB also provided Technical Assistance for the

Project Implementation Unit

Studies on wastewater and waste sectors

helping better inform central government on the

sector issues


Impact of the crisis on SMEs:

scarcity of funding due to banking sector

delevaraging

lack of matching funds to deliver EU projects

liquidity problem in the construction sector (key to

deliver infrastructure projects)

availability of bank guarantees



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



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


Impact of the crisis

more prudent/conservative budgetary planning and

less appetite for debt,

maximising impact of EU funds,

need for innovative SMEs to absorb JEREMIE funds,



Concluding remarks

EIB role

classic – leveraging EU funds

upstream – project preparation JASPERS

implementation – EIB TA/JASPERS

proactive – macroregional strategies and Europe

2020

promoter’s capacity is crucial

and could be enhanced by Technical

Assistance


THANK YOU

Sebastian Hyzyk

Project Directorate Environment and Regional Development Department

Regional and Urban Development Division

[email protected]

mailto:[email protected]

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