LINKING DONOR SUPPORT TO POLICY DEVELOPMENT

1
LINKING DONOR SUPPORTTO POLICY DEVELOPMENT

• Employment
• the Role of the European Investment Bank
• Thessaloniki, 21-22 April 2005

2
European Investment Bank the European Unions
financing institution

• Created by the Treaty of Rome in 1958, to
  provide long-term finance for projects promoting
  European integration
• Subscribed capital EUR 163.7bn
• EIB shareholders 25 Member States of the
  European Union
• Lending in 2004 EUR 43bn (EUR 40bn within the
  EU)
• Borrowing in 2004 EUR 50bn (EUR 28bn in EU
  currencies).

3
EIB PROJECT ELIGIBILITY
Economic and social cohesion in an enlarged EU
i2i, RD, Dissemination of innovation, technology
networks,education, health
Support for SMEs
Development of Trans-European and access networks
Environmental protection and improvement
Support for EU development aid and
cooperationpolicies
Promoting Union policies
4
Strategic Outlook
Lisbon Strategy

• Preparing the transition to a knowledge-based
  economy and society by better policies for the
  information society and RD
• Modernising the European social model, investing
  in people and combating social exclusion
• Sustaining the healthy economic outlook and
  favourable growth prospects by applying an
  appropriate policy mix

LISBON EU COUNCIL March 2000
Target to become the most competitive and
dynamic knowledge-based economy in the world
capable of sustainable economic growth with more
and better jobs and greater social cohesion .
5
Strategic Outlook
INNOVATION
PRODUCTIVITY
EMPLOYMENT
COMPETITIVENESS
GROWTH
6
i2i PROMOTING KNOWLEDGE INNOVATION
(2000-2010)

• Human capital formation, including training
  activities
• Information technology networks and access
• RD
• Dissemination of information technology and the
  audiovisual sector
• Equipping SMEs with information technologies
• Development of SMEs and entrepreneurship.

Support for growth and employment
7
   
                             
8
(No Transcript)
9
i2iEUR 26.8bn SIGNED FROM LAUNCH(EUR 24bn EIB
plus EUR 2.8bn EIF)
10
27
25

• Human Capital
• Research Development
• ICT
• European Investment Fund

38
10
THE PROJECT CYCLE
AT THE EIB
Promoters request
EIB eligibility
Staff teams EconomicFinancialTechnicalEnvironm
ental
Monitoring
Banking criteria
Contractsignature
A sound project portfolio
11
PROJECT REQUIREMENTS

• Projects should
• Be eligible for EIB finance
• Be technically sound
• Be financially viable
• Show an acceptable economic return
• Comply with environmental protection and
  procurement regulations
• Have adequate security

A project assessment with many facets
12
PROJECT DETAILS THE EIB NEEDS

• General and legal information about the
  enterprise,its principal partners or sponsors
• Technical and environmental data of the project
• Economic data (market, jobs created,economic rate
  of return)
• Financial data operating costs (incl.
  depreciation and overheads), forecast financial
  statements (operating account and balance sheet),
  financing plan for the project and draw-down
  schedule
• Compliance with environmental protection and
  procurement regulations
• Guarantee security.

A test for sound investment
13
i2i
The loan will allow ICO, the Spanish States
credit agency to the main source of financing for
SMEs, to facilitate SMEs access to long-term
funds on equal terms with prime borrowers and
large corporations. In addition, ICO will
contribute to financing the construction of
technological parks. Both schemes come under the
agreement between the ICO and the Spanish
Ministry of Science and Technology and the
Spanish Scientific and Technological Parks
Association.
ICO Global Loan innovation programme for SMEs
FINANCIAL INTERMEDIARY ICO EIB
loan 200 million
14
i2i
The project concerns the design and construction
and renovation of premises suitable for high-tech
companies and research institutes at four science
parks in Finland namely Oulu (North Western
Finland), Espoo (Helsinki Area), Vantaa (Helsinki
Area) and Temperas (Central Finland)
Finnish Science Parks
PROMOTER The science parks are
owned by Technopolis Plc TOTAL
INVESTMENT COST 140 million EIB
loan 70 million
15
i2i
The project consists in providing 6,800
Information Technology (IT) classrooms to about
5,100 primary or basic education schools -
teaching grades 1 through 8 - located throughout
Turkey. The purpose of the project is to increase
quality and relevance of basic education and to
make schools a learning resource for the
community.
Turkey Education Framework Project
PROMOTER The Republic of
Turkey TOTAL INVESTMENT COST 250
million EIB loan 100
million ( 50 million signed)
16
i2i
The proposed project is designed to facilitate
access to higher education to students in later
study phase in Italy and is specifically targeted
to students enrolled in the Politecnici system.
The Politecnici Student Loan Facility
PROMOTER Politecnico di Milano,
Politecnico di Torino, Politecnico di Bari,
etc EIB loan 25 million
17
i2i
The project addresses the need for restructuring
and educational improvement in the Serbian
education system, aimed at facilitating economic
development through the enhancement of education
and skills. It comprises various measures, incl.
teacher training strengthened, vocational
education and training overhauled (prepared in
close cooperation with the European Agency for
Reconstruction)
School Upgrading Project
PROMOTER The Republic of
Serbia TOTAL INVESTMENT COST 50
million EIB loan 25 million
18
i2i
The project should broaden access to education
and e-Learning programmes to allow persons of all
ages to gain skills. (Project under preparation)
e-learning access enhancement
PROMOTER The Government of the Country
concerned TOTAL INVESTMENT COST
150 million EIB loan 75 million
19
i2i
KfWs entrepreneurial qualification program is
specifically designed within the Federal
Governments qualification policy (AFBG) to
improve and increase the qualification of skilled
workers, who have already obtained a first
technical non-university degree in their specific
profession. The program concentrates on
non-academic vocational training. The objective
is to build up the knowledge and skills either to
start their own business as entrepreneurs or to
achieve a position with higher responsibilities
in the respective industrial or services sector.
)
KfWs entrepreneurial qualification GL
PROMOTER The German
Government TOTAL COST 400
million EIB loan 200 million
20
A few key musts

• A longer-term view
• Political consensus on education coherence
  of policies
• Predictability of economic policies
• Equity in education access
• Financing and quality of educational services
• Responsiveness and linkages to business needs
• Framework enabling lifelong learning

21
http//www.eib.org