09/04/2015 European Investment Bank Group · The European Investment Bank (EIB) at glance 09/04/2015 3 The EIB, bank of the European Union is a long-term lending bank.Created by the

09/04/2015 European Investment Bank Group

EUROPEAN INVESTMENT BANK The EU approach to the role of the private sector in development

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Global Responsibility – Austrian Platform for Development & Humanitarian Aid

Centre for International Development, Alois Wagner-Saal, Sensengasse 3, 1090 Vienna

The European Investment Bank (EIB) at glance

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The EIB, bank of the European Union is

a long-term lending bank. Created by the

Treaty of Rome in 1958, the Bank is owned

by the 28 EU-Member States

World’s largest multilateral lender by

volume, providing finance and expertise

for sound and sustainable investment

projects which contribute to furthering EU

policy objectives within and outside EU

Around 90% of the activity is focused on

Europe, but the EIB also support the EU’s

external and development policies, with

some EUR 8 bn invested outside the EU

in 2014

Figures updated Feb 2014 – as round figures are used, it is possible that the totals do not correspond to the sum

of the individual amounts

EIB Lending outside EU in 2014: EUR 8bn

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EFTA and Enlargement Countries include: Liechtenstein, Norway, Switzerland, Iceland, the Former Yugoslav Republic of Macedonia,

Montenegro, Serbia, Turkey, Albania, Bosnia and Herzegovina, Kosovo

EIB ‘s contribution to further EU policy goals

Outside the Union

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Outside the EU, EIB implements the financial components of agreements concluded under

European development aid and corporation policies

We support investment projects in some 150 non-member countries throughout the world

The EIB’s terms of reference outside the EUR are determined by multi-annual mandates

entrusted to the Bank by the EU and EU member States such as:

External Lending Mandate (ELM)

Local Private Sector Development, in

particular SMEs

Economic and social infrastructure

Climate Action

Cotonou Mandate for ACP, in addition to the ELM

objectives:

Reducing and eventually eradicating poverty

Sustainable development

Gradual integration into the world economy

The Bank also promotes EU external policy goals, such as:

Promoting growth and development in partner countries

Supporting EU enlargement

Supporting strategic partnerships and security (e.g. security of energy supply)

EIB Lending Outside the Union

Strategy

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In line with the EU’s Agenda for Change(1), the EIB will have renewed focus on private sector

development, recognised as key driver of sustainable growth. This should not exclude public

sector interventions, which are indispensable for sustainable private sector activity.

In terms of sectors, the strategy has different levels of priority, with two key focus areas:

(1) “Increasing the impact of EU Development Policy: an Agenda for Change”, Oct. 2011 (https://ec.europa.eu/europeaid/increasing-

impact-eu-development-policy-agenda-change_en)

SECOND

PRIORITY

KEY

FOCUS

Infrastructure

Infrastructure with a regional focus, notably projects

consistent with the PIDA (Programme for Infrastructure

Development in Africa) Priority Action Plan

Projects with a pro-poor focus

Projects which promotes sustainable economic

growth

In any of the following sectors: energy, water and

sanitation, transport and telecommunication.

Financial Sector

Channeling finance to SMEs and micro-enterprises, with

the aim of stimulating job creation and private sector

growth and supporting the development of local

financial markets

Credit lines, also in local currency, to select local

financial intermediaries

Private equity funds targeting SMEs and microfinance

Risk capital (direct equity, quasi-equity) and risk-sharing

instruments such as guarantees.

OVERALL

GOAL

Across all sectors, Climate Action investment is important for the region given that many ACP states a highly vulnerable

to a changing climate. Supporting adaptation initiatives and mitigating the impact of climate change through the promotion

of low-carbon transport and energy, increasing climate resilience and promoting renewable energy sources and energy

efficiency are over-arching priorities of EIB lending.

Agriculture and food security projects have a high

multiplier effect in terms of development impact and are a

priority sector in the Agenda for Change

Corporate Lending / Industry, which directly supports

private sector activities

OTHER

SECTORS Affordable and Social Housing, Health and Education, Mineral Resources, Tourism


Neighborhood

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During 2014 the Bank signed EUR 2.9bn of operations in the Neighborhood region

Under the new External Lending Mandate covering the period 2014-2020, where the Bank is

authorised to lend up to EUR 14.5bn


Asia and Latin America (ALA)

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40 Countries eligible for EIB financing under the ALA Mandate, of which 33 under

Frameworks Agreement .

During 2014 the Bank signed EUR 1.3bn of operations in the region.

Under the new External Lending Mandate covering the period 2014-2020, the EIB is

authorised to lend up to EUR 3.4bn.


Africa, Carribbean and Pacific States (ACP)

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Since operations began, the EIB

has invested

over EUR 17bn in more than

1 300 projects in the region.

EUR 1bn annual lending

volume

Under the 11th European

Development Fund, EUR

500m for Impact Financing

The importance of support to the Private Sector

Outside the Union

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Support for financial sector

Credit Lines for SMEs

Microfinance

Private Equity

Guarantees

Support for Public Private Partnerships (PPP) which:

Increase service level at no additional cost and lower overall cost of service

Support the development of institutional capacity and transfer of skill

Share cost and risk for infrastructure development, especially for tight public budgets


SMEs & Private Sector

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Priorities

Maintain support for Micro, Small and Medium Enterprises

(MSMEs) through credit lines, equity investments and lending

to microfinance institutions.

Broaden the standard toolkit with new products, including

guarantees, support for trade and local currency lending

where possible.

Support innovation by providing financing for private sector

R&D and industrial investment, promoting value chains based

on industrial sectors and local needs.

Promote regional integration through support for foreign

direct investment

Projects Examples

Liberia, Madagascar, Nigeria, Rwanda, Tanzania, Zambia –

Access Microfinance (EUR 16m) Equity, Technical Assistance

and Lending).

Sri Lanka – Global loan supporting SMEs and green energy

(EUR 90m)


Energy Sector

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Priorities

Support the development of renewable energy projects.

Develop energy efficiency potential..

Develop and rehabilitate electricity and gas distribution

infrastructure and support the sustainable production

transmission investments that are required to meet increasing

demand.

Support the development and integration of regional energy

markets, including development and efficient operation of

electricity interconnections, as well as regional integration of

the natural gas networks.

Projects Examples

Kenya – Lake Turkana Windfarm (EUR 200m & EUR 25m

equity mobilised from the EU-AITF).

Jordan – Tafila Windfarm (EUR 53m).

EU-AITF: the EU-Africa Infrastructure Trust Fund was established in 2007, and aims to increase investment in infrastructure in Sub-Saharan

Africa by blending long term loans from participating financiers with grant resources. (http://www.eu-africa-infrastructure-tf.net)


Transport Sector

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Priorities

Supporting sustainable transport projects such as public transport, short sea shipping, rail routes

as well as multimodal solutions and logistic platforms.

Promoting safety along transport networks. Particular attention is also paid to cooperation in the

field of security and safety for all transport modes.

Improving interconnections with the Trans-European Transport Network (TEN-T) beyond the EU

in order to promote trade and greater integration with EU markets.

Projects Examples

Egypt – North-South Road Corridor (EUR 60m).

Tanzania – Improving regional airports (EUR 50m).


Urban Sector

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Priorities

Sustainable urban regeneration and development of new sustainable urban-industrial clusters, plus

affordable housing and related infrastructure.

Improvements in urban district heating, energy efficiency, municipal solid waste and water/waste

water.

Enhancement of conditions in historic city centres, e.g. in the Mediterranean region.

Projects Examples

Egypt – Community Development Programme

(EUR 45m).

Africa (regional) – Shelter-Afrique Affordable

Housing and Community Development (EUR

15m & EUR 1.9m Technical Assistance).


Water & Environment Sector

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Priorities

Environmental projects to address local pollution abatement needs and utilise the high potential for

climate mitigation especially in energy intensive economies.

Improved water security and water resources management, including projects supporting water

efficiency and demand management.

Climate action, with a special focus on adaptation to water-related climate impacts and reduction

of greenhouse gas emissions, e.g. from landfills.

Projects Examples

Tanzania – Lake Victoria Water and Sanitation (EUR 45m).


Other Sectors

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Priorities

Education

Refurbish and modernise education Infrastructure

Ensure that education programmes are well aligned with the needs of the labour market

Support innovative industries (science parks, incubators, etc …)

Information & Communication Technologies (ICT)

Bridging the digital divide, by supporting network expansion in rural poorly served areas

Promoting competition between mobile and fixed lines services operators to increase market efficiency

Promoting development of inclusive eService platforms for public authorities

Agriculture, Food Security & Forestry.

Providing investments throughout the agricultural value chain, from sustainable production through to

improved transport and processing

Projects Examples

Mauritania – Terrestrial Telecom Cable Project

(EUR 15m).


Technical Assistance

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Objectives

Technical Assistance funds from the European Commission and EU Member States.

Help the partner countries and private promoters to better prepare, manage and

supervise their investment projects.

Improve the quality and development impact of investment.

Strengthen the management capacities of local partners in the medium and long term.

Areas

Studies or targeted activities upstream of lending operations in the areas of legislative,

regulatory and institutional reforms.

Pre-feasibility or feasibility studies for investment projects (Water and Wastewater,

Energy, Environment, education and Health).

Project implementation


Technical Assistance

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European Investment Bank

www.eib.org

Martin Brunkhorst

Head of Vienna Office

Tel: +43 1 505 36 76 11

[email protected]

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Further information:

Documents

09/04/2015 European Investment Bank Group · The European Investment Bank (EIB) at glance 09/04/2015 3 The EIB, bank of the European Union is a long-term lending bank.Created by the