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European Investment BankPromoting European objectives
Dunkerque12 July 2013
Florence Gaboreaud – Lending Operations in Western Europe (Benelux, France, Ireland, UK)
Content
What is the EIB?
The EIB’s approach to Maritime Transport
The EIB’s due diligence process
EIB financing
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The European Investment Bank (EIB)Long-term finance promoting European objectives
European Union’s long-term lending bank set up in 1958 by the Treaty of Rome.
Promoting European objectives, contribution to Europe 2020 strategy
Shareholders: 28 EU Member States
GovernanceBoard of Governors – EU Finance Ministers
Board of Directors - Member States & European Commission
Management Committee –EIB’s executive body
Audit Committee – independent, non-resident
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EIB Signatures 1958-2012
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EIB Signatures 2012 (in EUR)
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EIB Lending by sector2008-2012: EUR 283 billion
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EIB Lending to the Transport sector2008-2012: EUR 66.5 billion
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EIB Lending to the Maritime Transport sector2001-2012
Content
What is the EIB?
The EIB’s approach to Maritime Transport
The EIB’s due diligence process
EIB financing
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Background for intervention in waterborne transport
Ports form the main gateway to international trade for the EU and the demand for waterborne transport is expected to increase in the future.
Sea ports and intermodal logistics centers have a key role to play in the improvement of an integrated and sustainable global supply chain system.
On the European coasts, safe and efficient entry points into European markets are needed to avoid unnecessary traffic crossing Europe.
Reliable and diversified intermodal connections with the hinterland are also critical to facilitate the flow of goods and reduce transport time and costs.
EIB Transport Lending Policy (2011)
The EIB’s approach to Maritime Transport
Projects must be in line with:
EU objectives (White paper, TEN-T policy)
EIB’s Transport Lending Policy (13.12.2011)
http://www.eib.org/attachments/strategies/transport_lending_policy_en.pdf
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The European priority objectives
within the EU:Knowledge Economy (incl. R&D)
Trans-European Networks (TENs)
Competitive and secure energy
Small and medium-sized enterprises (SMEs) and
mid-cap enterprises (midcaps)
Convergence
Climate change Action (incl. sustainable transport)
Ports, waterways and shipping projects are generally eligible under TEN-T and sustainable transport.
Trans-European Transport Networks (TEN-T)
Develop Trans-European Transport Networks (TEN ports) and major transport axes in Neighbouring Countries.
Sustainable Transport
Foster modal shift from road to maritime/inland waterway/railway transport by:
– allowing maritime cargo to come closer to the final destination, thus reducing cargo onward journey by land transport modes
– facilitating the provision of a maritime alternative to road based-freight transport (motorways of the sea/ short-sea shipping);
– facilitating the connection between maritime and rail/waterway hinterland transport (multimodal terminals).
Reduce vessel emissions and improve their energy efficiency
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Objectives for intervention in waterborne transport
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Projects shall demonstrate satisfactory economic and financial returns.
The EIB will require that port projects are consistent with the development of the hinterland infrastructures needed for connecting the port with wider transport infrastructure networks (railways, motorways and/or inland water transport).
Port projects should be framed in a long term national transport strategy coherent with TEN-T goals at the EU level.
EIB Transport Lending PolicyRequirements
Projects should be compliant with European environmental legislation
The Bank will ask promoters to ensure that the project is climate resilient through appropriate design and operating measures.
The Bank requires the promoters to ensure that the principles of the EU Treaty and international best practice are applied when selecting a concessionaire.
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EIB Transport Lending PolicyRequirements
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Type of maritime projects that the EIB can in principle finance (1/2)
Existing ports - common user infrastructure rehabilitation/expansion (breakwater, access channel, maritime locks, navigation aids, quays)– full support
Existing ports - new terminals(port authority/infrastructure and/or terminal operator/superstructure and equipment]) – full support in principle, subject to :
Selection of concessionaire (competitive, fair and transparent process)For container terminals: traffic commitment of shipping lines (transhipment hubs in particular)
New portsEconomic justificationEnvironmental impacts
Improvement of hinterland transport connections – full support, particularly rail and inland waterways access to ports and intermodal terminals.
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Motorways of the Sea projects (infrastructure and vessel components) –full support – Vessels and port facilities on routes part of the Motorways of the Sea network
New vessels– In the EU: vessels with EU flag to be operated on « eligible routes », originating or ending on a EU country, during the loan life. – Short sea shipping: vessels operating on routes aimed at modal shift from road to maritime transport.– Convergence: vessel operations solely aimed at development region assistance. – Remote community support where no viable alternate to shipping is available (EU island community support). – Replacement of older, less energy efficient or more polluting vessels.
N.B. The Bank pays special attention that the ships it finances use best available technologies and that promoters use sound environmental management practices.
Vessel and Equipment R&D – R&D to enhance ship environmental performance and energy efficiency (ship hull, propulsion, power plants, waste treatment, etc.).
Type of maritime projects that the EIB can in principle finance (2/2)
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Examples of port projects approved by the EIB
Projects in the EU
Fos 2XL, Marseilles, France (infrastructure for two container terminals)Kaiserschleuse Bremerhaven, Germany (major maritime lock)Rotterdam Port Second Maasvlakte (infrastructure for major extension of Port of Rotterdam)Pireaus Port II (container terminal expansion involving infrastructure and superstructure )Duisburger HavenPort of ThessalonikiPurchase of Ro-ro vessel (Baltic Sea and Western Europe Motorways of the Sea)Purchase of Ro-pax vessels (Spain-Italy & Italy-Greece Motorways of the Sea)Spanish ports (Barcelona, Valencia, Cadiz, Bilbao)Port of Antwerp 2nd Lock WaaslandhavenJade Weser Container TerminalLondon GatewayPort of Liverpool River TerminalPort of GenoaFincantieri RDI
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Madeira (Portugal)
Las Palmas (Spain)
EIB projects signed in the last 10 years
Projects signed before 2007
Projects signed in 2007-2011
Major ports (EU Top 20)
Other ports
A few examples of EU Ports withno EIB projects in the past
Projects in the pipeline
Content
What is the EIB?
The EIB’s approach to Maritime Transport
The EIB’s due diligence process
EIB financing
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Identification – assessment of the project’s eligibility
Pre-Appraisal – preliminary assessment of the project’s suitability
Appraisal – assessment of the soundness of the project, taking into account technical, procurement, economic/financial aspects, environmental and social impacts of the projects
Negotiation – signature of the contract. Requires previous approval from the EU Commission
What are the steps of EIB Lending? EIB Project Cycle
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What are the steps of EIB Lending? EIB Project Cycle
Promoter’s request
EIB Eligibility
Banking criteria
MonitoringStaff teamsEconomic
Financial
Technical
Environmental
Social
Management
Committee(Appraisal Fact Sheet)
External web
Commission’s Opinion &
Member State’s Opinion
Newly Identified Projects
PIN
LawyersContract Negotiation Board of Directors
Loan Approval(Board Report)
Contract Signature
Project
Borrower
Guarantor
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Alignment with EU objectives & Transport Lending Policy Ensure quality and soundness of projectsImprove and support projects and promoters (TA)Aspects typically covered are the following:
Promoter/borrower: capacity, track record, shareholders, strategy, project rights.
Strategy: Master plan, Business Plan.
Project Site: Location, ownership rights, purpose of land use, local permits.
Environment: Compliance with EU Environmental Directives: SEA, EIA, screening decision, Natura 2000, Habitats / Birds, cumulative impacts, public consultation; EIB’s Statement on Environmental Principles and Standards.
Technical Appraisal of projects
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Technical aspects: project design, unit costs.
Procurement: Compliance with EIB’s Procurement policy: EU
Directives on procurement, selection process of the
concessionaire.
Project timing: permits and authorization plan, construction
schedule, operation date.
Economic and financial profitability: CBA, analysis of
alternatives.
Technical Appraisal of projects
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Content
What is the EIB?
The EIB’s approach to Maritime Transport
The EIB’s due diligence process
EIB financing
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EIB financing
Project FinanceBespoke structured finance e.g. London Gateway
Corporate Finance / Senior debtPublic authoritiesPrivate companies
Long term funding to match asset life subject to credit quality of borrower
EIB aims to offer a financial advantage over commercial funding: interest rates, maturities and terms
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For more information
http://www.eib.org/
Tel: (+352) 437922000
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