CEB and the outlook for CEB and the outlook for urban investments urban investments

through JESSICAthrough JESSICA

Financing Sustainable Investment, Growth and Jobs in Europe’s Urban

Areas

Open Days, Brussels, 9 October 2007

León HERRERADeputy Director General for LoansCouncil of Europe Development Bank (CEB)

Development bank founded in 1956 to contribute to social cohesion in Europe

39 member States to date

€25 billion in projects financed since inception

3 sectoral lines of action:

Social integration

Social housing Urban and rural modernisation Job creation and preservation in SMEs

Human capital Health Education

Environmental management

Natural or ecological disasters

Protection of the environment Preservation of historical and cultural

heritage

The CEB at a GlanceThe CEB at a Glance

More than EUR 9 billion financed so far in this field, with activity accelerating over the last five years

Overall objective: provision of housing and associated infrastructure for people on low incomes and to vulnerable population

Multi-sector support for urban renewal strategies which involve projects in:

social housing: new construction, renovation of large housing estates, conversion

public infrastructure: protection of the environment, water, waste , renewables.

social infrastructure: schools, health centers, but also financing SMEs, microcredits,

CEB’s Added Value : an Integrated CEB’s Added Value : an Integrated Approach to Social HousingApproach to Social Housing

Examples of projects: Examples of projects: HungaryHungary

Hungary 2007: Programme in housing Hungary 2007: Programme in housing and environmental protectionand environmental protection

BorrowerMinistry of Finance

Purpose

The loan will contribute to the investment in two important CEB ’s intervention fields: the protection of environment and the social housing. It is the continuation of three components of a 2002 successfully implemented project

ComponentsImprovement of the energy efficiency of traditional and pre-fabricated (panel) buildings through insulation and/or the modernization of heating, water supply and electric systemsPromotion of the use of renewable energy sources for household heating and energy generation purposes. Investments promoting the use of biomass, geothermic, wind, solar, organic waste and other renewable technologies may be supported. Investment to facilitate the mobility of severely disabled persons in their own apartments or houses

Loan amount€ 150 Million

SocialSocial infrastructures in Finlandinfrastructures in Finland

Finland 2007: social infrastructure Finland 2007: social infrastructure investmentsinvestments

BorrowerMunicipality Finance, a specialised financial institutionCEB’s total lending : € 400 Million5th programme in favour of MuniFin : loan € 75 Million; social housing sector is included for the 1st time

Type of projectmulti-sector projects : education (52%), health (23%), improving living conditions in urban and rural areas (9%), protection of the environment (10%)

BeneficiariesMunicipalities, municipal federations and municipally controlled companiesSocial impact of the four programmes since 1996: 419 sub- projects financed resulting in approximately 7,900 hospital beds modernised and improved school environment for 82,600 pupils

Added valueFacilitate access to favourable financing resources to smaller Finnish municipalities

Examples of projectsExamples of projects: Latvia: Latvia

Latvia 2001: Housing Latvia 2001: Housing Development Lending Development Lending

Programme Pilot projectProgramme Pilot projectBorrower

Mortgage and land Bank of Latvia, (MLBL), Riga - with state guarantee

PurposeImprove the quality of the Latvian housing stock, encourage private investment and create appropriate legal and financial environment

Three componentsRenovation or modernisation of multi-storey apartment buildings: loans to legal housing entities (condominiums, co-operatives, associations of owners)Housing repairs or purchase and repairs: loans to private personsCompletion of unfinished buildings: loans to housing providers (municipalities, NGO’s or specialised companies)

Loan amount€ 18.8 Million

Social effects plannedRenovation of 300 multi-family residential buildings, repair of 1,830 dwellings, purchase and renovation of 550 dwellings

2003: Modernisation of 2003: Modernisation of Education Infrastructure in MezzogiornoEducation Infrastructure in Mezzogiorno

Project scope: sub-projects ranging from the rehabilitation of an old hospice (“Real Albergo dei Poveri” in Naples) that will serve the cultural, educational and social needs of youth to the modernisation of schools and universities

Loan amount: 150 million euros

Expected social benefits: sustain the modernisation of the education system, reduce unemployment and contribute to the promotion of social cohesion and economic development in the South of Italy

Beneficiaries: population of Southern regions of Italy with 32 subprojects benefiting over 171 thousand students

Tri-partite Memorandum of Understanding coordinates EC, CEB and EIB approach to urban renewal and development actions Joint preparation and financing of social housing

projects and other urban infrastructure (public transport, health, education)

Collaboration on JESSICA initiative

As part of its co-operation on the JESSICA initiative, CEB can contribute: More than 50 years of expertise in developing and

financing social housing and associated infrastructures projects in different economic environments

Flexibility in terms of co-financing different sectors of intervention

Integrated approach to social housing and urban regeneration issues, as required under EC regulations pertinent to JESSICA

Capacity to intervene even in small projects

CEB’s Involvement in JESSICA CEB’s Involvement in JESSICA Initiative Initiative

We are here to help you make the best We are here to help you make the best possible use of structural funds.possible use of structural funds.

THANK YOU !THANK YOU !

Council of Europe Development Bank Council of Europe Development Bank (CEB)(CEB)

Directorate General for LoansDirectorate General for Loans

55, avenue Kléber - 75116 Paris, France55, avenue Kléber - 75116 Paris, France

Tel: +33 1 47 55 55 00Tel: +33 1 47 55 55 00Fax: +33 1 47 55 37 52Fax: +33 1 47 55 37 52

www.coebank.orgwww.coebank.org