EIB financing of sustainable urban transport Journées Île-de-France Europe
Monica Peña Sastre, Policy Adviser 21.10.2015 European Investment Bank Group
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EIB: The EU Bank
Natural financing partner for the Members States and EU institutions since 1958 Around 90% of lending is within the EU Shareholders: 28 EU Member States
Investing in Europe’s growth European Investment Bank
Lending priorities 2014
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European Investment Bank Group
EIB lending in France 2010-2014
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Eligibility of urban mobility
EIB priority objectives: • Environment and sustainable communities • Development of trans-European networks (TEN-T) EIB Transport Lending Policy (2011) • Public transport: metros, tramways, BRT • Transport infrastructure: road/street network, soft modes, traffic calming measures, modal interchanges • Clean vehicles • RDI 28/02/2013
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EIB Lending to the transport sector (2005-2014)
Transport Lending 2005-2014 EUR 140 bn
Urban public transport lending 2008-2014 EUR 22 bn 9%
1% Metros
6%
8% Air transport
11%
Tramways
Railways + Urban transport
35%
43%
Urban railways Light rail systems
Roads, motorways 16% 51%
Urban/suburban passenger transport
Sea transport
Other 20%
Lending to the transport sector has been stable over past decade: around EUR 12 - 15 bn /year (approximately 20-25% of total lending).
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EIB Financial products: Investment Loan • Direct individual loan to individual borrower • “Traditional” EIB lending instrument
Project example: Tramway de Paris Three loans: 2005, 2009, 2014 Total loan amount: EUR 782 m
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EIB Financial products: Investment Loan Project example: Autolib • Development of an electric car-sharing service + the deployment of an open supporting charging service network in the Paris metropolitan area. Autolib' Street Station
• Project components: RDI - concept definition and technology development the manufacturing and deployment of the related infrastructure the operational and services phases • EIB loans: EUR 130 m for RDI for the car batteries EUR 75 m for installation and extension of the scheme, from the parking and charging network through to the billing system •European Investment Bank Group
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EIB Financial products: Investment Loan
Project example: Urban Mobility for London The project consists of schemes that renew and upgrade existing track lines and stations of the London Underground, as well as the construction of a network of cycle tracks, connecting the city with the surrounding suburbs. EIB loan = GBP 1 bn
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EIB Financial products: Framework Loan • Loan to Single Counterparty for multiple projects. • A flexible instrument to finance mono or multi-sector scheme operations including sustainable urban transport • Details of individual investments may not be known at loan approval stage. Project example: Brno Municipal Infrastructure (Czech Republic) • • • • • •
Promoter: City of Brno Total project cost: EUR 231m, EIB funding: 50 % EU Funds: 35% Implementation: 2009-2015 Type of investments: Urban infrastructure, public transport, water management, cultural and recreational facilities
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EIB Financial products: CEF Debt Instrument
• Risk-sharing instruments EC-EIB • Initially financial instruments development focused on products geared to Project Finance operations: Project Bond Credit Enhancement (PBCE) Loan Guarantee for TEN- T (LGTT II) • Broader, more scalable and diversified product range is needed and being actively developed.
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Mobilising new investment
EFSI
EIB Group
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EFSI Products
SOURCES OF FUNDING The Fund serves as credit protection for new EIB activities European Fund for Strategic Investments
TYPICAL PRODUCTS OFFERED •Long-term senior debt for higher risk projects
•Transport infra
•Long-term •investment funds
•Broadband infra
•Energy infra
•Innovation
•Energy Resource efficiency
•Research
•Renewable energy
•SMEs
•Education
•Subordinated loans
•Equity and quasi-equity
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Other investors join in on a project basis
FINAL RECIPIENTS AND TYPICAL PROJECTS
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Eligible operations
Commercially sound
Economically and technically viable
Added value (additionality)
Investments boosting employment and growth
Bank intermediation is possible
Pricing commensurate with the risk – no subsidy element - Typically higher risk profile than normal EIB’s normal operations - Risk-absorbing products to foster the implementation of additional projects and to support the development of SMEs and MidCaps European Investment Bank Group
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Eligible counterparts
Corporates of all sizes
Utilities
Public sector entities (but excluding direct Member State risk)
SMEs (below 250 employees) or MidCaps (below 3,000 employees)
National promotional banks or other financial institutions for intermediation
Dedicated investment platforms possible
EIB normal “know your customer” and compliance requirements European Investment Bank Group
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The European Energy Efficiency Fund (EEEF)
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The European Energy Efficiency Fund (EEEF)
Project example
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The EIB project cycle
Only EFSI
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Project quality and eligibility Quality (Pillar 1) • Economic interest • Promoter’s capabilities • Environmental and social sustainability • Employment, technology and other benefits
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Eligibility (Pillar 2) • EIB’s transport lending policy • EC White Paper • EC TEN-T (CEF) • EC Green Paper/Action Plan/Communication on urban mobility (SUMP) • EU growth/climate/energy packages (EU 2020, 20/20/20, EE Plan) • EU Cohesion Policy
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Thank you!
more information: www.eib.org www.eib.org/eiah
[email protected] European Investment Bank Group
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