5/6/10 1 European Investment Bank

10/04/23 1European Investment Bank

EUROPEAN INVESTMENT BANK

Financing infrastructure investments for the benefit of Russian Regions and Cities

Peter Jeffreys Russia, Eastern Europe and Southern Caucasus Division

29 May 2009


The European Investment Bank (EIB)Long-term Finance Promoting European Objectives

Created by the Treaty of Rome and set up in 1958.

EIB shareholders: the 27 Member States of the European Union

EIB Board of Governors: the 27 EU Finance Ministers

EIB Board of Directors: representatives from the 27 Member States and the European Commission

Own Funds EUR 33.4bn (subscribed capital EUR 164.8bn) at year end 2007

Lending in 2007: EUR 47.8bn in total, of which EUR 41.4bn within the EU and EUR 6.4bn Outside the EU

Total outstanding loans at 31.12.2007: EUR 324.8bn


The European Investment Bank (EIB)

Main External Mandate 2007-2013 for EIB lending operations outside the EU

= EUR 27.8 bn, of which

EUR 3.7 bn for Russia and Eastern Neighbours, i.e.:

Eastern Europe : Ukraine, Moldova and – subject to future Council Decision – Belarus

Southern Caucasus : Armenia, Azerbaijan and Georgia



Beneficiaries of EIB loans: State, Central Government, Regions, Municipalities, Utilities, Private Companies, Project Finance Structures and PPPs.

EIB Financing Operations in the region should be carried out in close cooperation with the EBRD in accordance with the tripartite Memorandum of Understanding signed between the Commission, the EIB and the EBRD in December 2006.



2007-2013 Mandate for Eastern Europe, Southern Caucasus & Russia

Focus on projects of significant interest to the EU in transport, energy, telecoms and environmental infrastructure.

Priority to projects on extended major Trans European Network Axes, projects with cross-border implications for one or more Member States and major projects favouring regional integration through increased connectivity.

In the environmental sector, the EIB should in Russia give particular priority to projects within the framework of the Northern Dimension Environmental Partnership.

In the energy sector, strategic energy supply and energy transport projects are of particular importance.


The European Investment Bank (EIB)Priority in Transport:

Projects on the extended major Trans European Network axes

Northern Axis

Central Axis

South Eastern Axis

Motorways of the Seas



Transport – Other Potential EIB Projects

Projects with cross-border implications for one or more Member States that improve the interconnection between the EU and its Neighbours.

Additional major projects favouring regional integration through increased connectivity.

Investments linked to the upgrading of infrastructure to make transport along the main axes more rapid and effective.

Projects promoting environmental sustainability, as well as safety and security.

Promotion of multi-modality.

Projects promoting technical, legal and administrative interoperability with EU systems, new EU technologies (e.g. ERTMS, SESAR, Galileo).



Energy – Potential EIB Projects (1)



Energy – Potential EIB Projects (2)

Strategic energy supply and energy transport projects.

Rehabilitation and development of energy networks and infrastructure in order to diversify and secure energy supplies to the EU, increase the efficient production and reliable transportation of energy and to promote regional integration.

Projects improving the performance, safety and security of energy infrastructures.

Projects having a positive environmental effect.



Environment – Potential EIB Projects

Wastewater and waste management projects, in particular projects having an impact on the coastal waters of the Black Sea.

Water management projects, to improve water quality, supply and sanitation.

Environmental infrastructure projects supporting nature protection, notably for biodiversity conservation and land degradation, as well for the forestry sector.

Other environmental infrastructure projects in the Black Sea region.



Telecoms – Potential EIB Projects

Projects with cross-border implications and promoting regional integration through increased connectivity.

Helping ENP partners to avoid technology gap and promote the use of new technologies.

Interoperability of national networks.

Projects favouring investments in broadband infrastructure, third generation mobile services (3G) and affordable access to Internet and mobile services.

Investments in telecommunication infrastructure linked to stimulation of market liberalisation and competitiveness.

Projects favouring investments to further strengthen the global partnerships, for example, the interconnection of National Research and Education Networks to the EU´s GÉANT infrastructure

The establishment of National Grid Initiatives in support of science and technology as well as for the public sector (especially health related) and in the area of scientific data repositories.



Key Requirements

Project eligible viz. 2007-2013 Mandate sectors.

Compliance with EIB procurement rules (notably OJ).

Compliance with EU’s Environmental policy & standards (notably EIA, etc.).

“Bankable” project with appropriate project preparation:

• Economic viability• Technical viability• Financial viability of project and of borrower• Legal documentation / security structure

Minimum project size – around EUR 30-50m, in principle (smaller projects can be considered on a case-by-case basis).



Federal Borrowers:Flood Barrier Project (co-financed with EBRD & NIB) EUR 40m

Regional Borrowers:Vodokanal III (with EBRD, NIB, NDEP, SIDA, under negot.) EUR 17.5m Moscow District Heating (with EBRD, negotiation stage) EUR 100m

Private Borrowers:MTS Mobile Broadband (with EBRD, negotiation stage) EUR 115mOGK-5 Power Plant Rehabilitation (with EBRD, negotiation stage) EUR 250mNizhnevartovsk Power Plant (with EBRD, appraisal stage) EUR TBC

EIB-financed projects in Russian Regions


For more information…

Peter Jeffreys

Russia, Eastern Europe and Southern Caucasus European Neighbourhood and Partner Countries Department

European Investment Bank Tel: (352) 4379 86409

Fax: (352) 4379 67495 e-mail: [email protected]

http://www.eib.org/

mailto:[email protected]

http://www.eib.org/

http://www.eib.org/

http://www.eib.org/

5/6/10 1 European Investment Bank

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