Introduction to EIB activities in the OCTs

Transcription

1 The (EIB) Introduction to EIB activities in the OCTs OCT-EU Forum Brussels, 5 th December 2013 EIB Caribbean and Pacific OCTs Divisions 1

2 The (EIB) European Union s long-term lending bank set up in 1958 by the Treaty of Rome Long-term finance promoting European objectives Finances investment in productive sectors and revenue generating infrastructure In the OCTs, under the Overseas Association Decision (OAD) Duration: 27/11/ /12/2013 Beneficiaries: 20 OCTs Sources of funding European Development Fund (EDF), i.e. Member States budget EIB Own Resources 2

3 Sectors of Intervention Infrastructure Energy Water Transport Telecoms - public & private sector - Financial sector SMEs Microfinance - mainly through intermediaries - Top horizontal objectives : private sector development, including support for small and mediumsized enterprises (SMEs); climate change mitigation and adaptation. 3

4 Financial instruments Senior loans Junior or subordinated loans Intermediated loans / credit lines Quasi-equity funding Equity funding Guarantees Currencies: Internationally traded currencies local currencies (on an ad-hoc basis) Interest rate subsidies Technical assistance 4

5 Who can benefit? Private entrepreneurs and commercially-run public sector enterprises Investment funds and other financial intermediaries Local entrepreneurs and foreign investors Micro-, Small- and Medium-sized enterprises 5

6 The EIB project cycle Strong ownership of project promoters, support provided if required Opinion from concerned OCT and Commission sought before appraisal 6

7 What is an eligible project? Must contribute to EU development policy objectives and should be: Technically sound Economically justified Financially viable Produce measurable development results: Results Measurement framework (ReM) Comply with environmental protection and procurement regulations: EIB environmental and social guidelines Significant financial contribution from promoter Co-financiers (EIB maximum 50% of project cost) 7

8 Measuring project impact January 2012: Introduction of a Results Measurement Framework (ReM) enabling an analysis of aggregate results as data build up Pillar 1 Pillar 2 Pillar 3 Expected contribution to lending objectives Quality and soundness of the operation, based on expected results Expected financial and non-financial additionality An assessment of a project s consistency with EIB mandate objectives and its contribution to EU priorities and country development objectives, going beyond a focus on eligibility alone. A series of sector-specific standardised indicators to capture a project s economic, social, environmental and institutional outcomes. It continues to measure project quality and its ability to achieve the expected results. An assessment of the EIB additionality over market alternatives in terms of financial product, technical, structuring and sector contribution and standards and assurance. 8

9 Resources & utilisation Pipeline for the coming years is extensive EUR 16.7m available from EDF resources Full utilisation of the Own Resources envelope No further Own Resources funds as of 31 st December 2013 New Own Resources envelope for the period of EUR 100m will only be available after ratification of the 11 th EDF package. complemented by a new EUR 5m grant envelope 9

10 OCTs portfolio Breakdown by sector 10

11 OCTs portfolio Breakdown by country 11

12 OCTs portfolio Supporting OCTs and challenges ahead compliance with EIB requirements, e.g. in terms of procurement, credit risk, environment, etc. poor financial viability, notably in the infrastructure sector small scale of projects 12

13 Sea Water Air Conditioning Project, Tahiti EUR 7.5 m EIB loan for the implementation of a new seawater air-conditioning system (SWAC) in French Polynesia s main hospital Pumps seawater from 900m depth (5-8 c) replacing energyintensive central refrigeration system Drastically reduces electricity consumption and greenhouse gas emissions Region s first ever large-scale infrastructure project involving EU, national and state authorities Partnership with Agence Française de Développement under the Mutual Reliance Initiative Contributes to the government s objective of increasing the share of renewable energy to 50% by 2020 and 100% by

14 The way forward Under the 11th EDF: Sectors: continuing focus on financial sector (SMEs), infrastructure (including social infrastructure) and climate change adaptation Proposed amounts: Investment Facility revolving fund (EDF) Grants Own Resources lending No further replenishment EUR 5 m EUR 100 m How to ensure full utilisation and even distribution? More systematic dialogue OCTs EU Member States European Commission EIB More involvement in preparatory work (grant funding) Feasibility studies, upstream capacity building Technical Cooperation Facilities under the EDF? 14

15 Thank you! 15