European Investment Bank financing Urban Development & Infrastructure projects 2 nd Serbian Property & Infrastructure Development Conference, Belgrade, 21 February 2017. Dubravka Nègre, Head of EIB Regional Representation for the Western Balkans
The EIB Group Providing finance and expertise for sound and sustainable investment projects Leading developer of risk financing for innovative SMEs 23/02/2017 European Investment Bank Group 2
The EIB: the EU bank An EU Bank created in 1958 as an EU financing arm Around 90% of lending is within the EU Shareholders: 28 EU Member States Investing in Europe s growth 23/02/2017 European Investment Bank Group 3
The EIB at a glance Largest multilateral lender and borrower in the world We raise our funds on the international capital markets We pass on favourable borrowing conditions to clients Non-for-profit organization Some 450 projects each year in over 160 countries Headquartered in Luxembourg and has 40 local offices Around 3 000 staff: Not only finance professionals, but also engineers, sector economists and socio-environmental experts Almost 60 years of experience in financing projects 23/02/2017 European Investment Bank Group 4
Our priorities (2016 figures) Environment Infrastructure Innovation SMEs EUR EUR EUR EUR 16.9bn 19.7bn 13.5bn 33.6bn 23/02/2017 European Investment Bank Group 5
EIB Group financing in 2016: EUR 83.8bn Signatures EFTA & Enlargement Countries EUR 3.35bn Eastern Neighbours EUR 1.65bn EUR European Union 75. 4bn Outside EU EUR 8.4m Africa, Cari bbean, Pac ific, South Africa EUR 0.77bn Total EUR 83.8bn 8.38bn Southern Neighbours EUR 1.63bn Asia and Latin America EUR 0.98bn 23/02/2017 European Investment Bank Group 6
EIB operations in Western Balkans 2005-2015 Western Balkans 2500 2000 1500 1000 Approvals Signatures Disbursements 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUR M 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Approvals 582 594 479 517 2,066 1,249 685 425 1,146 536 200 245 8,724 Signatures 399 413 443 577 1,262 914 1,034 671 656 381 222 397 7,369 Disbursements 186 236 306 315 371 585 859 839 719 519 596 556 6,087 23/02/2017 7
Serbia EIB operations in Serbia 2005-2016 1400 1200 1000 800 600 400 Approvals Signatures Disbursements 200 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EUR M 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total Approvals 239 290 220 150 1359 835 335 135 665 265 20 20 4533 Signatures 149 250 134 170 893 690 711 275 315 115 130 176 3858 Disbursements 85 136 148 98 169 317 576 539 422 209 307 360 3364 23/02/2017 8
Our products We help catalyse investment LENDING BLENDING ADVISING Loans But also: Guarantees (trade financing) Equity participation Combining EIB finance with EU budget (Project Bond Initiative) Higher risk projects for innovation (InnovFin) Attracting FUNDING for long-term growth Prepare, evaluate and support the implementation of projects (JASPERS) Support for public/private partnerships (EPEC) 23/02/2017 European Investment Bank Group 9
Individual loans three options for lending: EIB Lending Options 1 Direct loan to SPV 2 Loan guaranteed by a bank 3 Loan through a bank The EIB finances the company directly. The EIB carries the risk on the loan. The EIB lends the funds directly to the promoter and also signs a firstdemand guarantee with a commercial bank. The EIB has risk exposure to the bank. The EIB lends to a bank, which in turn lends the funds to the company passing on some of the EIB s funding advantage. The EIB has risk exposure only to the bank. EIB Commercial Bank(s) EIB EIB Loan(s) Guarantee Loan(s) Loan(s) Loan(s) Commercial Bank(s) Commercial Bank(s) Loan(s) Promoter/borrower Promoter/borrower Promoter/borrower European Investment Bank
Projects must: Project Requirements Meet at least one of the EIB s objectives Be technically sound Be financially viable Show an acceptable economic return Comply with EU environmental protection and procurement regulations 23/02/2017 European Investment Bank Group 11
EIB strategy in the Western Balkans Long term loans (public/private borrowers + SMEs) Project Finance and Public Private Partnerships WBIF (Technical assistance and grant support coordinated with the EU, bilateral donors and IFIs) Jaspers (Technical assistance coordinated with the EU Commission) EDIF (Venture capital for SMEs) European Investment Bank
EIB Priority Objectives Outside the Union: Private sector development Infrastructure development Security of energy supply Environmental sustainability Western Balkans: EIB operates under the Pre-Accession EU Mandate and the Pre-Accession Facility (at EIB own risk). In the preparation is the roll out of the new Economic Resilience Initiative (ERI), envisaged to strengthen the resilience of central and local governments to crisis and shocks. European Investment Bank
EIB Products in the Western Balkans In the Western Balkans, the EIB operates primarily through: Direct loans to projects generally with a cost above EUR 25 million to private and public sector Intermediated loans channeled through intermediary banks (credit lines to banks), whereby intermediaries are obliged to transfer the financial benefits from EIB resources to SMEs and municipalities Framework loans to central and local public authorities for projects of up to EUR 50 million The EIB contributes to the European Fund for Southeast Europe (EFSE - www.efse.lu) that provides sustainable financing to micro and small enterprises and to the Green for Growth Fund South East Europe (for RE and EE - www.ggf.lu) In preparation are several PPP/ PF initiatives. European Investment Bank
Urban development- landmark projects in Serbia 23/02/2017 European Investment Bank Group 15
Belgrade Urban Renewal Project: Support of multiannual investment programme for rehabilitation of 37 km of main urban roads, upgrading of 34km of urban transport network (tramways) and traffic control systems. - Borrower: Republic of Serbia - Beneficiary: City of Belgrade - Amount: 90 m up to 20 years including 5 years of grace 25/01/2011 16 European Investment Bank
Examples of sub-projects financed: Belgrade Urban Renewal Reconstruction of: Savska ulica Nemanjina Resavska Bulevar Vojvode Stepe Bulevar Kralja Aleksandra Juzni Bulevar Autokomanda Purchase of: Dozens of new trams for the City of Belgrade 23/02/2017 European Investment Bank Group 17
Municipal and Regional Infrastructure Project: Support of investment programme managed by Ministry of Economy, mainly in the transport and local/regional roads, education, cultural and historical heritage and public buildings rehabilitation located in municipalities throughout Serbia. - Borrower: Republic of Serbia, represented by Ministry of Economy - Beneficiary: Municipalities and local self governments - Amount: 75 m up to 20 years - Disbursements to date: 50 m - project benefits from WBIF for TA EIB lead institution 25/01/2011 18 European Investment Bank
Municipal and Regional Infrastructure Examples of sub-projects financed: Izgradnja srednje strucne skole «Sezai Siroi» u Bujanovcu Izgradnja vrtica u MZ u Ivanjici Rekonstrukcija zgrade Jugoslovenske Kinoteke u Beogradu Rekonstrukcija puta u Banji Koviljaci Rekonstrukcija Instituta za Rehabilitaciju u Mladenovcu Rekonstrukcija enterijera Narodne Biblioteke Srbije u Beogradu Sanacija i adaptacija spomen kuce Radoja Domanovica Kardio vaskularno odelenje Klinickog Centra u Nisu 23/02/2017 European Investment Bank Group 19
Jugoslovenska Kinoteka i Narodna Biblioteka- pre i posle 23/02/2017 European Investment Bank Group 20
Belgrade City Sava Bridge project Project: Construction of access roads to a new cable stayed bridge over the Sava river (six lane dual carriageways plus interchanges to connect with Bulevar Umetnosti, Tosin bunar and Jurija Gagarina, in total some 6km). - Borrower: City of Belgrade - Beneficiary: City of Belgrade - Amount: 160 m up to 25 years - Disbursements to date: 155 m - Co-financed with EBRD - Project benefits from WBIF for TA (raffic management and maintenance contract) EIB lead institution 25/01/2011 21 European Investment Bank
Municipal Water Programme Project: Support of multiannual investment programme for the city of Novi Sad to rehabilitate their water supply and wastewater collection and treatment networks. - Borrower: Republic of Serbia - Beneficiary: City of Novi Sad - Amount: 25 m up to 20 years including 5 years of grace - Disbursements to date: 15 m - Co-financed with KfW Project is expected to include allocation of two additional schemes: wastewater treatment ancillary infrastructure in Vrbas and Kragujevac. 25/01/2011 22 European Investment Bank
Projects implemented with the support of the City of Belgrade Gazela bridge reconstruction, EUR 33m EIB loan implemented between 2008 and 2011. Belgrade by pass, EUR 100m loan still under implementation, EUR 27m remains to be disbursed (financed sections Dobanovci-Ostruznica, Ostruznica-Orlovaca i Orlovaca- Avala) 23/02/2017 European Investment Bank Group 23
In the pipeline Waste to Energy project in Vinca; Waste Water Treatment Plans across Serbia; Continuation of the Municipal Infrastructure support in the wide range of sectors and municipalities; More infrastructure support to the City of Belgrade building on the successful cooperation in the last 15 years. 23/02/2017 European Investment Bank Group 24
Thank you! www.eib.org b.belgradeoffice@eib.org Tel.: +381 11 312 1756 23/02/2017 European Investment Bank Group 25