EIB IN THE WATER SECTOR (FLOOD PROTECTION) Hans van Os/Julio Schreier. Working Group Floods 21 March 2018

Transcription

1 EIB IN THE WATER SECTOR (FLOOD PROTECTION) European Investment Bank Hans van Os/Julio Schreier Working Group Floods 21 March 2018 European Investment Bank 1

2 The EIB: the EU Bank Natural financing partner for the EU institutions since 1958 A policy driven Bank Headquartered in Luxembourg with 40 local offices Largest multilateral lender and borrower in the World (AAA) Around 3000 staff including finance professionals, engineers, sector economists and socio-environmental experts Investing in Europe s growth European Investment Bank 2

3 The EIB: capital breakdown European Investment Bank European Investment Bank 3

4 EIB priorities: Environment Infrastructure Innovation SMEs EUR EUR EUR EUR 16.9bn 19.7bn 13.5bn 33.6bn European Investment Bank 4

5 The EIB: a major lender to the water sector The largest source of loan financing to the global water sector Can lend up to 50% of investment costs for individual projects (average = 30%) Lends to public or private utility companies, national or local authorities Lending covers the whole water cycle (water resources, water supply, sanitation, flood protection) projects mainly water supply and sanitation European Investment Bank 5

6 Loan signatures in the water sector in by region (EUR m) 6.000,0 Central Asia 5.000, , , , ,0 Latin America Candidate countries Asia (excl. Central Asia) ACP States Russia, E.Europe,Sth. Caucasus Mediterranean countries Member states 0, Total loan volume: EUR 19.85Bn European Investment Bank 6

7 EU member states Lending to the water sector in (EUR m) 33% in UK > 75% in five countries Sweden Poland Portugal Slovenia Finland Greece Bulgaria Austria Cyprus Romania Ireland Hungary Netherlands Spain France Belgium Germany Italy United Kingdom European Investment Bank 7

8 EIB project cycle We support sound and sustainable projects Step 7 Repayment Step 6 Monitoring Step 1 Proposal EIB project cycle Step 2 Appraisal Step 3 Approval Technical assessment Environmental Social Financial Economic Climate EIB Management Committee EIB Board of Directors European Investment Bank Step 5 Disbursement Step 4 Signature Finance contract is signed European Investment Bank 8

9 Key Drivers for EIB Financed Water Service Delivery/continuity Network extension Assets renewal Climate Change (mitigation and adaptation) Service rationalization Post disaster emergency Compliance: Local regulations European Investment Bank 9

10 EIB Activity in Flood Management Projects Main types of projects co-financed by EIB Inland (rivers and waterways): Remediation and reconstruction works after damages due to floods Preventative works: Improving existing facilities Newly created facilities Coastal protection works European Investment Bank 10

11 EIB Activity in Flood Management Projects General principles for development of Flood Management projects Looking at the river basin as a whole (Water Framework Directive) Following the step-by-step approach of the Flood Directive (risk maps, hazard maps, etc.) SEA: Strategic Environmental Assessment; Combination of structural/non-structural measures contributing to overall objectives Promotion of the EIB Guide for the preparation of Flood Management Schemes Mobilise technical assistance for preparation and/or implementation of the investments including to assess climate change risk and vulnerability EIAH HUB support JASPERS European Investment Bank 11

12 EIB Activity in Flood Management Projects Typical Tasks of a Flood Management TA developed by these 1. Preliminary Flood Risk Assessment 2. Hydraulic Modelling & preparation of Flood Hazard Maps 3. Flood Risk Assessment (FRA) 4. Define Objectives and Strategies 5. Identification of measures for flood risk management 6. Development of Phased Investment Program 7. Development of a Short Term Investment Plan (STIP) 8. Implementation of a GIS based River Management and Monitoring System 9. Capacity Building European Investment Bank 12

13 HUB European Investment Bank 13

14 JASPERS European Investment Bank 14

15 St. Petersburg Flood Barrier, Russian Fed. The Problem: Yearly floods since the city s creation 300 years ago. Baltic mean sea level rise Annual damages >USD 50m The solution: Completion of the construction of a Flood Protection Barrier where previously financial problems impeded the project. 25 km embankment across Neva Bay, six discharge sluices and 2 navigation channels with closing gates. Designed to provide protection against the level of a flood whose severity that occurs every 1000 years (4.5m) European Investment Bank 15

16 St. Petersburg Flood Barrier, Russian Fed. Project cost: EUR 2,200m (incl. 6 lanes motorway) Loan amount: EUR 40m Duration of the loan: 22 years Co-financed with EBRD (USD 245m). Borrower/Promoter: The Russian Federation Final Beneficiary: The Barrier Authority Implementation: European Investment Bank 16

17 Flood Prevention Projects, Czech Republic Main data: Borrower: Czech Republic and banks Promoter: Ministry of Agriculture (MoA) Final Beneficiary: River Boards, although they will exercise a coordination role to ensure consistency. Phase 1 Phase 2 Period Since 2007 Project cost EUR 198m EUR 542m Population 250, ,000 Dykes 45km 647km* Retentions 38 (9m m³) 264* River regul. 40km n.a.* Polders n.a. 24* *as of March 2013 European Investment Bank 17

18 Flood Prevention Projects, Czech Republic Objectives: Prevent repetition of the catastrophic floods that hit the country between 1997 and 2002, causing 91 deaths, EUR 5.7 billion of damages to public and private property. Mitigate flood risks in 5 river basins (Labe, Ohre, Morava, Odra, Vltava), providing protection for major agglomerations and key infrastructure. Wide-range of preventative measures that are integrated at river basin level. Strengthen River Boards which contributes to the implementation of the EU Water Framework Directive. Implement international co-operation in the field of flood protection: cross-border schemes included in project. European Investment Bank 18

19 Italian Flood Prevention Framework Loan Country: Italy Type of operation: Framework Loan Project Cost: 1605 M EUR Loan: 800 M EUR European Investment Bank 19

20 Italian Flood Prevention Framework Loan Structural details of the project: The operation, structured as a Framework Loan, will support the implementation of the priority programme that consists of approximately 300 flood risk management schemes located mainly in the metropolitan areas in the central and northern regions of Italy. Schemes addressing landslide risk and coastal erosion will also be eligible. The programme is managed by the Italian government and the schemes will be implemented by the local authorities. Climate mitigation/adaptation components (%): 50% Calendar: implementation period from 2016 to Geo: Central and Norther Regions (Italy) (Vernazza Flooded Square Cinqueterre. Photo : primeitaly.com) European Investment Bank 20

21 Waterschap Hollandse Delta One of the components to be financed Country: Netherlands Type of project: Investment loan Project cost: 270 MEUR EIB loan: 120 MEUR (invest. breakdown: 2016 to 2021) Short description: The project concerns the investment programme of Waterschap Hollandse Delta. The investment programme will focus on flood protection, waste water treatment and other water management infrastructure. European Investment Bank 21

22 Conclusions Importance of overall flood management strategy / vision Take river basin planning approach TA is crucial both in preparation and selection of schemes and in the management of investment Include non-structural measures and tailor selection methodology to this end (multi-criteria, qualitative..) Combine hydrologic and economic modelling European Investment Bank 22

23 Conclusions Combine economic, technical and environmental criteria to rank interventions Financial and Economic sustainability (cost recovery) Importance of public consultation Public opinion Licenses and permits Infrastructure Resilience European Investment Bank 23

24 Thank you for your attention Questions? For more information please contact: Hans Van Os Senior Water Engineer Independent Quality Review Division JASPERS Phone: (+352) Fax: (+352) European Investment Bank Rue de la Loi 227 B-1040 Brussels, Belgium Julio Schreier Senior Water Engineer Water Management Division Projects Directorate Phone: (+352) Fax: (+352) European Investment Bank 100, boulevard Konrad Adenauer L-2950 Luxembourg European Investment Bank 24