EIB_FEMIP_EN

CITY DEVELOPMENT STRATEGY INFORMATION PLATFORM: FINANCING TOOLS

European Investment Bank Facility for Euro - Mediterranean Investment and Partnership (FEMIP) Type of institution: International Financial Institution In line with the European Neighbourhood Policy and the Union for the Mediterranean, FEMIP, the Facility for EuroMediterranean Investment and Partnership, is the financial arm of the European Investment Bank (EIB) in the Mediterranean region. FEMIP is committed to helping Mediterranean partner countries achieve sustainable economic development and social growth.

FEMIP has two investment priorities in the region, namely, to provide support to the private sector and create an investment-friendly environment. It also promotes dialogue between Euro-Mediterranean partners. In order to attain its objectives, FEMIP offers services and products that are tailored to the investment environment in the Mediterranean, in addition to undertaking field studies to tackle forthcoming challenges within the region.

FEMIP provides the following: 1. Loans: Lines of credit to encourage the development of small and medium-sized enterprises. The EIB makes lines of credit available to its partners – commercial banks or development financing institutions, which then lend the funds to their own customers. It aims to respond to the needs of local communities.

Individual loans to help develop the economic infrastructure of the Mediterranean partner countries, paying particular attention to the expansion of the private sector and to the creation of a business-friendly environment.

2. Private equity to promote the creation or strengthening of the capital base of productive businesses, particularly those established in partnership with EU-based companies.

3. Technical assistance to improve the quality of operations and their impact on development by: - strengthening the capacity of the Mediterranean partner countries and project promoters, - financing studies and activities upstream aimed at consolidating directly and indirectly the expansion of the private sector.

4. Guarantees, in order to: - To stimulate local capital markets.

- To mobilise additional resources to supplement scarce public capital resources.

- To support sub-sovereign development.

- To reduce foreign exchange risk.

- To reduce government risk exposure In the urban sector, the following sectors are thus identified as FEMIP priorities: 1. Urban renewal and regeneration particularly in historical centres (the “Medinas 2030” Initiative within the CMI) 2. Shelter, including social and affordable housing 3. Urban transport, especially public transport 4. Work places and spaces that facilitate employment 5. Public space, including recreational facilities FEMIP Trust Fund (FTF) The FEMIP Trust Fund complements the Bank’s investment activities in the region. It finances upstream technical assistance and studies, as well as targeted equity operations designed to support innovative private sector companies.

It is conceived as a multi-donor, multi-purpose and multi-sector fund. It relies on voluntary contributions from EU Member States and the European Commission, which together form the Assembly of Donors. The donors meet on a regular basis to discuss the broader Trust Fund strategy, to assess and approve operations.

The FEMIP Trust Fund main priorities are: finance, water and the environment, energy, transport, urban development,

CITY DEVELOPMENT STRATEGY INFORMATION PLATFORM: FINANCING TOOLS

RDI and human capital. In each area, the Trust Fund considers expected outcomes, namely the kinds of changes it would be best equipped to support, as well as how to contribute to those outcomes. The fact that FTF operations are resultsdriven is thus intended to strengthen the value added provided to the region.

In the urban sector, FTF upstream Technical Assistance for Urban Development focuses on improving infrastructure and living conditions in urban environments, urban transportation and encouraging the modernization of financing mechanisms for local authorities.

Funding The main objectives of a TA action, lead by FEMIP, are: 1) to ensure compliance with international standards and regulations; 2) to increase the promoter’s technical capacity or governance skills; 3) to carry out feasibility studies; 4) to ensure both proper project implementation and good quality in monitoring/reporting tasks; and 5) to help local authorities in the definition of global policies.

Until 2011, Urban Development sector represented 4% of the FTF activities. EUR 1.2 m were used to fund 4 Technical Assistance operations and studies of which 2 are regional operations (Strategies for the regeneration of Medinas in the Mediterranean area and Medinas 2030 Investment Programme) and 2 country operations (Urban operation in Meknès Medina, Morocco and Project Preparation and Implementation Study in the Framework of the “Integrated and Sustainable Community Development Programme (ISCDP), Egypt).

The above mentioned regional and country operations contribute to the urban sector by: 1. Improving the regulatory framework for urban development and urban regeneration, enabling sustainable urban development.

2. Improving access to finance for urban rehabilitation and development projects in the Mediterranean Partner Countries.

3. Strengthening EIB cooperation with other IFIs and development banks, especially with the World Bank, AFD and KfW. 4. Human capital development through harmonisation of practices to meet international standards, and adaptation to local needs for urban rehabilitation projects.

5. Knowledge sharing improvement through dissemination activities and enhanced visibility.

How to submit proposals: Authorities are invited to submit proposals to the referent ministry, and to the Ministry of Finance, the latter being the EIB direct counterpart.

Criteria to be highlighted: Each borrower’s project proposal is assessed to ensure that the project is economically, financially, socially and environmentally sound.

Website: www.eib.org Contact: 98-100, boulevard Konrad Adenauer L-2950 Luxembourg (+352) 43 79 1 (+352) 43 77 04 Date of entry: January 2012