European investment bank lending

1. Integrating Cities Conference
Milan
7th November 2018
22/11/2018 European Investment Bank Group 1
EIB Lending – supporting integration now
and in the future
Patricia B. Llopis

2. European Investment Bank – EIB
22/11/2018 European Investment Bank Group 2
Lending
• Loans
• Guarantees
• Equity
participation
Blending
•Combining EU
grants with EIB
loans
•Leveraging MS
co-financing and
EIB resources
Advising
• Sharing EIB
know-how through
technical and
financial advice
• Strong in-house
expertise
• Advisory
assistance
initiatives
The EIB is the European Union's bank. We provide finance and expertise
for sustainable investment projects that contribute to EU policy objectives.
More than 90% of our activity is in Europe.

3. EIB Financing European Cities and Regions
European Investment Bank Group 3
• Direct lending operations with cities and regions for
migrant/refugee accommodation and social infrastructure:
o Municipal and regional framework loans for
investment programmes
o Structural Programme Loans to co-finance
European Structural and Investment Funds (ESIF)
2014-20
• Financing for SMEs and micro-finance through banks and
other intermediaries
• Cooperation with municipal banks, national and regional
Promotional Banks

4. EIB Lending for integration
 Since 2014 the EIB has financed 15 projects
(investment and framework loans) with a
migrant/refugee component.
 EIB lending for integration projects has reflected
the migration flows (peak in 2015)
 The geographical concentration also reflects that –
mainly in Germany and Southern Europe
 Schemes are for social housing with a migrant
component or for temporary accommodation for
refugees but also for multi-sector programmes.
22/11/2018 European Investment Bank Group 4

5. EIB Eligibility matrix
European Investment Bank Group 5
Sector Eligibility criteria Geographical
scope
Housing and Shelter • Construction of social housing;
• Construction of reception centers for refugees;
• Construction of short-term temporary accommodation;
• Upgrading, replacing and reorganization of existing urban
infrastructure facilities to adapt them to accommodation and facilities
for refugees;
• Associated equipment (ICT components, furniture, etc.);
• Associated initial start-up costs:
 temporary shelter and standard packs for refugees;
 integration-related activities (staff costs for training, language
courses, health care, etc.);
• Development of new enterprises and commercial sites;
EU / non-EU
Infrastructure associated
with migrant/refugee
housing, shelter and
service provision
• Water supply, wastewater management, solid waste;
• Sustainable transport (incl. urban improvement schemes);
• Power supply/transmission/distribution;
• Innovation enabling infrastructures;
• Basic telecom connection to networks;
• Health, education facilities;
• Infrastructure and utility provision for new commercial sites;
EU / non-EU
Protection against
extreme weather events
• Flood/heavy rains protection and mitigation; EU / non-EU
Emergency response
infrastructure/equipment
• Infrastructure and equipment clearly dedicated to humanitarian
purposes (search and rescue vessels);
EU / non-EU
Technical assistance • TA and Consultancy Services for project preparation, management
and supervision
EU / non-EU

6. Other EIB initiatives for integration
• EIB-ILO Study on the employment impact of EIB
infrastructure investments in Mediterranean
countries
• Youth Employment Programme, starting inside EU
and expanded towards Western Balkan
• Economic Resilience Initiative (ERI), targeting
Western Balkan and Southern Neighbourhood
region.
• Support to EU Urban Agenda Partnership on the
inclusion of migrants and refugees
22/11/2018 European Investment Bank Group 6

7. Cities financing challenges
 Funding from a variety of sources but mostly EU
and national
 Used in different ways:
• Integration of new arrivals
• Social infrastructure
• Access to labour market
• Integration activities
 Difficulties in obtaining funding:
• High competition
• Difficulties in partnering with other institutions
• Unfavourable structural and administrative conditions
22/11/2018 European Investment Bank Group 7

8. …Unfavourable structural conditions
Little control over how funding for migrants and
refugees is managed
Complexities in the governance structure
Legal impediments
Asymmetric information
Unreliable and unpredictable national transfers
22/11/2018 European Investment Bank Group 8

9. …Unfavourable administrative conditions
Administrative burden
Burdensome and complex procedures
Overcomplicated justification of payments
thus increasing administrative costs
Rigid and limiting calls for proposals
Preparation, implementation and
management of EU funds is too onerous
and discouraging
Lack of financial instruments experience
22/11/2018 European Investment Bank Group 9

10. Inclusion Blending Facility
Potential benefits
Possibility to blend EU grants and loans
Address current financing gaps
Better involvement of cities in the decision
making process
Direct access to funding
Synergies with other sources of funding
22/11/2018 European Investment Bank Group 10

11. European Investment Bank Group 11
Contact
Patricia B Llopis
Urban Specialist
p.llopis@eib.org
+352 4379 89011

12. 22/11/2018 European Investment Bank Group 12