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Urban Development Strategies in the Mediterranean Barcelona, 14th - 15th March 2011

What are the solutions for funding investments linked to UDSs? –the experience of the EIB

Mariana Ruiz Alvarado Urban Economist Projects Directorate European Investment Bank

European Investment Bank

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EIB financing in the urban sector

European Investment Bank

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EIB Operational Instruments  Technical Assistance: provide technical support to prepare bankable projects with special focus on climate change mitigation and adaptation (FEMIP, NIF).  Traditional Lending: loans for sovereign, sub-sovereign and corporate clients with long tenors  Individual loans (e.g. a new tramway line),  Sector specific framework loans (e.g. social housing programme)  Multi-sectoral framework loans (e.g. municipal multi-annual investment plan)  Financial Engineering: Support the use of new financial instruments such as JESSICA and JEREMIE (EU specific).  Could the JESSICA initiative be translated to the Mediterranean?  Structured Finance: Participation in dedicated Funds and Equity.

European Investment Bank

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EIB project requirements: the ÂŤ three pillars Âť Eligibility = consistency with EU priorities

Technical quality and economic soundness

Financial viability and adequate security

Comply with procurement and environmental and social protection regulations

A project assessment with many facets European Investment Bank

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Multisectoral Framework loans I: Szczecin

European Investment Bank

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Multisectoral Framework loans II: Procedures  Experience in EU countries, specially in Poland  Adapted to local and regional administrations with a clear development strategy and integrated approach.  Investments in a multiplicity of small urban projects : public spaces, street network, street furniture and lighting, water and sewage, solid waste, schools, health centres, social housing, etc…  The EIB analyses strategies, prioritisation of investment, implementation and monitoring procedures during appraisal.

 Allow a flexible allocation procedure ex-post to the contract signature.

European Investment Bank

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Multisectoral Framework loans III: Allocation procedures Promoter sends Allocation Request with list of Schemes.

Schemes above EUR 50 m?

NO

YES Full appraisal.

Approval by Board of Directors?

YES

Review of the information.

Approval by Projects Directorate?

The Bank issues an Allocation Letter

NO

YES

NO Scheme is rejected

European Investment Bank

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Medinas 2030  In 2007 the Bank launched the “Medinas 2030” initiative, which focuses on the rehabilitation of historical centres in the Mediterranean countries.  Within the remit of the Marseille Centre for Mediterranean Integration a “Medinas 2030 Programme” has been designed, with three components:

 pre-operational study on the identification of integrated operations and the adaptation of financial mechanisms;  knowledge transfer and exchange workshops to increase awareness and disseminating good practices; and  implementation of the Meknès medina pilot project, supported by a contracting assistance study.

European Investment Bank

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EIB CONTACT INFORMATION Mariana RUIZ ALVARADO Urban Economist Projects Directorate European Investment Bank 100 boulevard Konrad Adenauer L-2950 Luxembourg Email: m.ruizalvarado@eib.org

Visit www.eib.org/femip European Investment Bank

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