Download EIB FINANCING OF URBAN RENEWAL AND

EUROPEAN INVESTMENT BANK
Urban Development Projects
29th May 2009
Barbara Lemke
Urban Planner
Projects Directorate
02/08/2017
European Investment Bank
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EU APPROACH TO URBAN POLICY
CONTEXT
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Urban culture / asset as a major comparative advantage
of the EU in a global economy
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Identification of common challenges: demographic,
environmental, security, social cohesion
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Subsidiarity
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European Investment Bank
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EU APPROACH TO URBAN POLICY
OBJECTIVES
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Sustainable communities; avoiding urban sprawl
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Ensuring urban sustainability, taking advantage of existing
(massive) assets: focus on urban renewal and regeneration
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Share experiences
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The LEIPZIG CHARTER (2007)
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European Investment Bank
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BANK FINANCING OF URBAN PROJECTS
MAIN SECTORS OF ACTIVITY
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Urban renewal and development (i.e. public infrastructures)
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Social housing (rehabilitation and new construction, with
special focus on energy efficiency)
Individual buildings of public interest (e.g. cultural heritage)
Public transport
Education and health facilities
Water management and improvement of the environment,
including waste treatment
Utilities, including district heating & street lighting
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European Investment Bank
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BANK FINANCING OF URBAN PROJECTS
SECTORS OF WEAK ACTIVITY
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Supporting proper housing provision and eradication of slums
promoting social inclusion (Technical Assistance outside EU)
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Regeneration of historic centers (“Medinas 2030 Initiative”)
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Natural disasters prevention
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Governance (Technical Assistance outside the EU)
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European Investment Bank
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EUROPEAN INVESTEMENT BANK FINANCING
OF URBAN RENEWAL/REGENERATION PROJECTS
EIB Loans in the Urban Sector (Urban Transport & Urban
Development) in million EUR, excluding Global Loans
2004
Investment loan
3770
59 %
5155
66 %
2181
66 %
2538
52 %
3828
54 %
17472
59 %
Framework loan
2674
41 %
2679
34 %
1123
34 %
2320
48 %
3289
46 %
12084
41 %
6444
100 %
7834
100 %
3304
100 %
4858
100 %
7116
100 %
29556
100 %
Total
%
2005
%
2006
%
2007
%
2008
%
Total
%
Operation type
On average, around EUR 6 bn = 10% of the annual lending
activity of the Bank
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European Investment Bank
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EU APPROACH TO URBAN POLICY
INTEGRATED URBAN PLANNING
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Strategy and objective-based on a sound diagnosis, integrated
into its broader socio-economic context
Precise definition of land use and infrastructure facilities
Consideration of adequate services and equipment
Assessment of environmental impacts
Social impacts, including employment
Global economic analysis of the operation
Financial sustainability (public and private) of investment and
operation
Adequate governance and public consultation
European Investment Bank
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FINANCING URBAN RENEWAL AND DEVELOPMENT
LARGE PROJECTS
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Typical projects: public infrastructure, public transport,
hospitals, etc.
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Project promoters: SPVs
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Main role of public administrations: ensuring coordination
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Financing:
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Sources: budget, concessions, PPPs
Loans and the issue of public debt
Transaction costs in private participation
European Investment Bank
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EIB FINANCING OF URBAN RENEWAL AND
DEVELOPMENT
LONG-TERM LOANS TO LARGE PROJECTS
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Amounts, duration, conditions
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Adaptations for PPPs and additional requirements
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Objective: best use of resources, user protection
Project quality
Adaptation to context: legal issues, relations between partners,
financial sustainability
Adequate distribution of risks and rewards
European Investment Bank
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EIB FINANCING OF URBAN RENEWAL AND
DEVELOPMENT
DIRECT LOANS OR LOANS THROUGH INTERMEDIARIES
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Public intermediaries (national and regional institutions)
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Financial intermediaries (commercial or public banks)
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European Investment Bank
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EIB FINANCING OF URBAN RENEWAL AND
DEVELOPMENT
MUNICIPAL FRAMEWORK LOANS
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Numerous schemes included in capex
Multi-annual budget financing
Sector specific loans: social housing, water management, etc.
Conditions for success:
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Well-defined strategy, objectives and implementation and monitoring
procedures
Robust legal, planning and implementation framework
Minimum critical thresholds (size of investments)
Consensus (public participation)
Adapted/reasonable time horizon
Multi-sector integration (coordination of services)
European Investment Bank
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EIB QUALITY REQUIREMENTS FOR
URBAN RENEWAL/REGENERATION PROJECTS
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Part of a local and/or regional strategy
 integrated urban renewal and regeneration plan/strategy
 sectoral plans integrated into the broader local and regional
strategy.
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Integrated planning to ensure the sustainability of local urban
communities:
 adequate technical definition, including service provision
 economically sound and financially sustainable
 socially responsible under sound governance
 positive impact on the environment, with particular focus on
energy efficiency and sustainable transport.
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European Investment Bank
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EIB FINANCING OF SOCIAL HOUSING PROJECTS
ELIGIBILITY AND QUALITY CONDITIONS
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Policies: urban environment; social cohesion
Location:
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Brownfield sites
Greenfield sites if part of urban regeneration and/or local housing plan
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Investment, not maintenance
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Quality requirements:
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Well-defined strategy, objectives and procedures
Robust legal context, planning and implementation structure
Technical standards and services
European Investment Bank
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EIB FINANCING OF URBAN RENEWAL AND
DEVELOPMENT
URBAN DEVELOPMENT FUNDS
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JESSICA, Joint European Support for Sustainable Investment
in City Areas
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Initiative of the European Commission (DG REGIO) launched at
end of 2005, and supported by EIB and Council of Europe
Development Bank
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Applying “financial engineering” techniques to EU Structural
Funds
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European Investment Bank
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PJ/COENV/URB
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European Investment Bank
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