European Fund for Strategic Investment(EFSI):Opportunities in Lithuania

10 January 2017, VILNIUS.Marius Vaščega, European Commission Economic Governance Officer in Lithuania

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Economic Policy Priorities

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Investment Plan for Europe / EFSI: why?

Slow economic recovery in 2008-2013 due to...

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... lack of investment… but around €300 bn would helpreturning to historical average.

Gross fixed capital formation –main trend, historical average and investment planEU-28, at 2013 prices, € bn

GFCF historical sustainable norm, assuming an investment/GDP ratio of 21-22%

Investment plan

Baseline data / forecasts

1999 20002001 2002 2003 2004 2005 20062007 2008 2009 2010 2011 2012 20132014 2015 2016 2017

2,416

3,039

2,527

2,543

2,5282,567

2,6402,717

3,021

2,657

2,714

2,606

2,659 2,647

2,869

forecasts

2,678

2,748

2,864

2,940

Investment Plan for Europe / EFSI: why?

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European Fund for Strategic Investments (EFSI)

(Total investments at least EUR 500 bn up to 2020

via European Investment Bank and European

Fund for Strategic Investments)

1. Mobilising finance for investment

� European Investment Project Portal

� European Investment Advisory Hub

2. Making finance reach the real economy

� Predictability and quality of regulation

� Removing non-financial, regulatory barriers

in key sectors within Single Market

� Structural reforms in the Member States

3. Improved investment environment

Investment Plan for Europe

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European Fund for Strategic Investments

Over EUR10 million

EuropeanInvestment

Bank

Directly

Up to EUR 10million

EuropeanInvestment

Fund

Indirectly through financial

intermediaries

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EFSI results

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Energy efficient residential buildings in North Rhine Westphalia,EUR 100 million (Total: EUR 230 million)

London energy efficiency co-financing facilityEUR 137 million (Total: EUR 547 million)

Nearly-zero-energy office buildings in SwedenEUR 75 million(Total: EUR 161 million)

Funding facility to support energy efficiency investments in FranceEUR 400 million (Total: EUR 800 million)

Financing a portfolio of new nearly zero-energy buildingsEUR 170 million (Total: EUR 409 million)

Infrastructure fund for commercial and public buildings(Cost: not disclosed)

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EFSI projects – energy efficiency

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Lietuvos Energija Vilnius CHP ProjectEUR 190 million(Total: not disclosed)

Vilnius – Utena (A14) highway reconstruction(Total: not disclosed)

Modernisation of Vilnius airport infrastructureEUR 30 million(Total: EUR 75 million)

SMEs: INNOVFIN: OP bank (EUR 150 million in the Baltic States and Finland),COSME: Swedbank (EUR 165 million in the Baltic States)INNOVFIN: Šiaulių bankas (EUR 50 million in Lithuania)

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EFSI projects - Lithuania

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Wind farms,hydroelectric plants,etc. (EUR 355 mln)Energy infrastructure(EUR 175 mln)

Green transport (EUR93 mln)

Health (EUR 390 mln)

Culture (EUR 306 mln)

IT (EUR 50 mln)

Social protection (EUR203 mln)

Education (EUR 43 mln)

- Renovation of residential buildings

- Construction and renovation of high energy class buildings

- Improvement of energy efficiency of businesses

- Modernization of gas-run heating equipment

Energy efficiency (EUR 1.055 mln)

EFSI opportunities in Lithuania: a study – financing gap

Transport(EUR 2.009 mln)

Water management (EUR 3.232 mln)

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EFSI opportunities in Lithuania: a study - conclusions

a) EFSI can be used to counter fight pro-cyclical financing and stabilize economic growth

b) EFSI can be used to finance more sectors than ESIF

c) EFSI can be used by more beneficiaries than ESIF, expenditure eligibility criteria are not applied

d) European Investment Advisory Hub support can be used to structure projects

e) EFSI takes partial risk for the project (project financing features are applied)

f) State aid rules are not applied to EFSI financing

g) Considering average size of the projects in Lithuania it is recommended to consider using National

Promotional Institution (NPI) as intermediary working by “one stop shop” concept

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EFSI opportunities in LT: a study - big projects

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EFSI opportunities in LT: a study - small projects

Thank you – more information:

http://ec.europa.eu/priorities/jobs-growth-and-investment/investment-plan_en

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