- EIB

Information3 - 2002 • N° 112 ISSN 0250-3891

EIB ForumEIB 2002 The EIB’s “Countdown to EU new Euro- Eastward Enlargement“ Mediterranean financial , partnership 7 and 8 November At a meeting held in Barcelona on 18 October 2002 at the 2002 VIENNA Each year, the EIB holds EIB’s initiative, the Finance a Forum with invited guests Ministers of the 15 EU Member States and 12 Mediterranean from the worlds of politics, Partner Countries (MPC) banking and business. launched the Bank’s new With the enlargement Facility for Euro-Mediterranean negotiations reaching their Investment and Partnership peak in Copenhagen in (FEMIP). see article page 6 December 2002, this year’s Forum on the «Countdown to EU Eastward Enlargement» was particularly topical and raised a lot of attention.

From top to botton: - Philippe Maystadt - Pat Cox and Karl-Heinz Grasser - Robert Guillaume, Herbert Stepic, Wolfgang Roth, Alessandro Profumo, Terence Brown European and Karl-Peter Wilhelm Parliament Resolution on the EIB Annual Report 2001

On 21st November 2002, for the third year in succession, the European Parliament discussed a report on the EIB by Parliament’s Committee for Economic and Monetary Affairs. Mr Philippe Maystadt, President of the EIB, attended the debate, as did Commissioner Mario Monti. see article page 14 2002 VIENNA

“The Accession Countries have from enlargement. Commis- pointed out that Austrian Contents merited EU membership”. EU sioner Verheugen was con- companies had committed TCommissioner Günter Ver- vinced that the political mo- themselves vigorously to the heugen told the 550 guests at mentum for enlargement was Accession Countries, adding EIB Forum 2002 the EIB Forum that the Acces- unstoppable and that the EU that he expected to “Countdown to EU sion Countries had already ac- summit in Copenhagen in De- share especially in the above- Eastward Enlargement” 2 complished supreme social, cember would be a success. average economic growth an- Central European political and economic efforts The decisive test for European ticipated there in the coming flood relief programme 5 and that the successful transi- solidarity would then come in decades. He also stressed the tion to democracy, constitu- 2003 when, after the antici- need for structural economic The EIB’s new Euro-Mediterranean tionality and a market econ- pated positive decision by the reforms in the current EU financial partnership 6 omy in the space of just ten European Parliament, the en- Member States as well as, par- years had been anything but a largement treaty would have ticularly, for EU institutional EIB financing for foregone conclusion. Given to be ratified by the 25 na- reforms to ensure that deci- water sector projects 9 that the Accession Countries tional parliaments or through sion-making mechanisms con- European Parliament had to date borne by far the referenda. The Commissioner tinued to work efficiently in a Resolution on the heaviest burden for successful joined Pat Cox, President of 25-member Union. His Dutch EIB Annual Report 2001 14 enlargement, it was now up to the European Parliament, in counterpart, Finance Minister EIB Group in 6th R&D the 15 EU Member States to urging that a committed social Hans Hoogervorst, was more Framework Programme 16 demonstrate generosity and debate be initiated immedi- emphatic, pleading for better flexibility in the remaining de- ately to counter people’s fears preparations for enlargement EIB revises its Public cisions – all the more so be- and convince them of the op- on the part of the current 15 Information Policy 18 cause they stood only to gain, portunities offered by en- Member States, and specifi- Additional EIB premises in politically and economically, largement for Europe as a cally criticising both the Com- -Hamm 19 whole, at the same time mak- mon Agricultural Policy and President’s visit to ing it clear that failure to ex- the regional and structural the New York pand the EU would be disas- policies – by far the largest Stock Exchange 20 trous for the Accession items of expenditure in the EU Countries, and, for the present budget. EU financial resources Member States, would mean had to be deployed more effi- Günter Verheugen, foregoing stable political rela- ciently, with less being Member of the tions with their eastern neigh- pumped around prosperous , bours as well as economic countries and more being responsible for Enlargement growth. Commissioner Ver- spent where it was most ur- heugen also emphasised that gently needed. This would be Romania and Bulgaria would particularly vital in an en- receive special support to pre- larged EU. pare for their subsequent ac- cession in 2007, and that only Hungarian Finance Minister after they had joined the EU Csaba László confirmed that Pat Cox, President would the current enlarge- his Government would con- of the European Parliament ment process be complete. tinue to steer its present course, with a policy aimed EIB President Philippe Maystadt chiefly at promoting stability had opened the Forum and while at the same time offer- highlighted the main aspects ing foreign investors specific of the Bank’s activity in the economic incentives consis- Josef To‰ovsk˘, Chairman of the Financial Accession Countries: under- tent with EU parameters, in Stability Institute, pinning infrastructure, re- order to spur economic mod- Switzerland gional development and, in ernisation. Former Governor particular, foreign direct in- of the Czech National Bank vestment as a means of bring- Josef Tosovsky observed that ing in both capital and expert- European Economic and ise to the Accession Countries, Monetary Union was part of so providing decisive impetus the “acquis communautaire“; for the modernisation of their hence the question for the Ac- Karl-Heinz Grasser, economies. Austrian Finance cession Countries was not Minister of Finance, Austria Minister Karl-Heinz Grasser whether, but solely when, EIB Forum 2002 “Countdown to EU Eastward Enlargement”

they should join the euro zone. to completion of the reforms that Weighing the pros and cons of still lay ahead. Enlargement repre- early or later membership, he sented the greatest opportunity pointed out that the euro was at for ensuring security, trust, soli- least as important to Central and darity and progress. Directly hitch- Eastern Europe as the US dollar was ing Poland’s star to Europe, the to the current EU Member States: President declared: “We believe he therefore argued in in Europe, we believe in favour of early introduc- our future.” Poland had Success tion of the euro. The Ac- made considerable eco- achieved so Csaba László cession Countries were nomic headway and after 12 far is well prepared for the years of economic liberalisa- a stimulus to euro: in particular they tion was fit to compete in completion of were structurally flexible, the European internal mar- the reforms with versatile labour mar- ket. The Polish economy was that still lay kets for example, and now in a position to take ad- ahead. were thus in a position to vantage of the internal mar- Aleksander assert themselves compet- ket, all the more so if foreign Kwasniewski, itively even as members of a com- direct investment continued to con- Philippe Maystadt mon currency zone. Mugur Is- tribute to economic modernisation and Michael arescu, Governor of the National on a sustainable basis. Häupl Bank of Romania, maintained that his country was definitely on course On day two, the Forum turned to to join the EU in 2007. The key re- more practical issues of how the Ac- quirement in the next few years cession Countries could accelerate would be rapid modernisation of the economic catching-up process. Karl-Peter Wilhelm, infrastructure, especially through The first session focused on the Philippe extensive foreign borrowing, as need for infrastructure and the rel- Maystadt, Karl-Heinz infrastructure shortcomings repre- evant sources of finance available. Grasser and sented the crucial hurdle for Ro- Miron Tudor Mitrea, Romania’s Günter mania in terms of economic Transport Minister, outlined his Verheugen growth and inclusion in the inter- country’s infrastructure plans, held national division of labour. Brigita out the prospect of legislation to Schmögnerová, Executive Secretary promote public-private partnership of the UNECE and former Slovak Fi- models for infrastructure develop- nance Minister, congratulated the ment, and left his audience in no EIB on its long-term policy perspec- doubt about the EIB’s important tive, notably on having launched its role in Romania’s preparations for activity in the Accession Countries accession. Ewa Freyberg, Secretary as long ago as 1990 before there of State in the Polish Ministry of Wolfgang was any talk of their joining the EU. Economy, emphasised the crucial Schüssel and She recommended that the Euro- importance of high- Wolfgang Roth pean Commission and the Bank quality infrastructure consider ways of promoting stabil- for growth, foreign di- ity in the enlarged EU’s new eastern rect investment, domes- neighbours, i.e. in Russia, Belarus, tic labour mobility and, Ukraine and Moldavia, as well as especially, balanced strategically important Turkey. regional development. She agreed that rapid Polish President Aleksander Kwas- infrastructure develop- niewski reminded Forum guests at ment could be achieved an evening event in Vienna’s his- toric city hall of the division of Eu- rope prior to 1989 and the substan- Brigita Schmögnerová, Csaba László, tial progress that had been Francis Mayer, accomplished in all areas in a rela- Johannes Franciscus Hoogervorst, tively short space of time. Success Mugur Isarescu achieved so far would be a stimulus and Josef To‰ovsk˘

  - page  2002 VIENNA

only through recourse to external temper the optimism of the assem- plained the reasons that had financing, particularly ISPA re- bled Accession Countries’ Transport prompted VW AG to invest in Slo- sources, support for the new EU Ministers: he claimed that their vakia and outlined the actual ben- Member States from the future plans were too ambitious and esti- efits, especially lower wages for structural funds and EIB loans. Ser- mated that it was likely to take qualified staff, the country’s geo- bia’s Transport Minister, Marija twenty years to build efficient mo- graphical position and good rela- Raseta-Vukosavljevic, set out her torway and road networks in Cen- tions with the authorities. Disad- country’s investment needs in tral and Eastern Europe. Even the vantages included the fact that All available terms of transport infrastructure use of public-private partnership aspects of the legal framework speeches and and telecommunications networks, models would do little to accelerate were still unclear, and the problems presentations pointing out that while Serbia’s the process. Moreover, regrettable of remoteness from suppliers and can be central geographical location made as it might be, it was highly unlikely poor infrastructure. Robert Guil- accessed at it a transport hub for the entire that capital could be mobilised si- laume, General Manager of Peu- www.eib.org/ Balkan region, it could fulfil its role multaneously for the development geot Citroën, also mentioned lower forum as a transit country only with sus- of a modern rail network. The Ac- wages for qualified and motivated tained external financial assistance. cession Countries’ political priori- staff as a significant factor in his Kajo Schommer, former Economics ties were clearly geared to road company’s decision to site a motor Minister of Saxony, explicitly ad- building and private transport. vehicle plant in the Czech Republic. dressed the subject of corruption, Herbert Stepic, Vice-President of particularly in public tendering pro- All speakers agreed that rapid in- Raiffeisen Zentralbank Österreich, cedures, recommending that a very frastructure development also de- described the contribution that for- tough line be taken, with EU fund- pended above all on strategic plan- eign banks were making, or had al- ing and EIB lending halted immedi- ning and on properly qualified ready made, in the Accession Coun- ately in cases where there was good planners; other prerequisites were tries, with the rapid development reason to suspect corrupt practice. the courage to set clear pri- of an efficient banking sys- He also stressed that environmen- orities and the availability tem capable – by virtue of The Bank tal legislation should be respected of long-term finance such familiarity with EU bor- intends to but that it was unacceptable for as that traditionally offered rowers and also with local strengthen such laws to be used by NGOs or by the EIB. There was markets – of mobilising further its other interested parties as a tool equally general agreement foreign direct investment support for for boycotting infrastructure proj- that public-private partner- in the industrial and serv- foreign direct ects. Hans Peter Haselsteiner, Head ships were no panacea for ice sectors. Alessandro investment of Bauholding STRABAG, sought to lack of finance, particularly Profumo, CEO of UniCred- in the Accession Countries ito, stressed that it was a where road construction costs courageous decision on the part of stood at around 80 per cent of EU the Accession Countries’ govern- levels, but the population’s income ments to open up their banking sys- represented only 30 per cent, mak- tems to foreign banks. Around 60 ing it virtually impossible to levy per cent of bank assets in Central toll charges covering costs. and Eastern Europe was now con- trolled by foreign banks. The deci- The final session focused on the ex- sion had clearly paid off, however, perience of foreign investors. Karl as both companies and private cus- Peter Wilhelm, Member of the tomers now enjoyed significantly Board of Volkswagen Slovakia, ex- improved and more cost-effective services. Finally, EIB Director Gen- eral Terence Brown described the Bank’s strategy in the Accession Countries and the EIB’s financing facilities. He emphasised that, as well as financing infrastructure, the Bank intended to strengthen fur- ther its support for foreign direct investment, through both direct

Ewald Nowotny, Michael Häupl, Aleksander Kwasniewski, Philippe Maystadt, Wolfgang Roth and Michael G. Tutty

page    - EUROPEAN INVESTMENT BANK EIB Forum 2002 “Countdown to EU Eastward Enlargement”

loans to companies and global development agencies spared them tria (as well as Germany) with its loans to partner banks in the Acces- protracted administrative proce- neighbours directly to the east, sion Countries, including all banks dures by offering a one-stop shop countries with which, for centuries, with foreign parent companies. for all essential services. it experienced cultural exchange but which it also dominated politi- Summing up, EIB Vice-Presidents The Austrian Chancellor, Wolfgang cally. Neighbouring peoples will Ewald Nowotny and Wolfgang Schüssel, brought the Forum to a now come together again under Roth pointed out that certain tasks close, underscoring the particular the umbrella of the European still had to be accomplished in importance of eastward enlarge- Union, within which – in an histori- order to bolster direct in- ment for Austria, which cally unique and revolutionary vestment: in particular, the The costs of was surrounded by four model of co-existence – small coun- legal framework had to be enlargement Accession Countries. The tries are not controlled by larger strengthened and laws im- are far strong economic growth ones, but rules are laid down jointly plemented, over-regulation outweighed anticipated in those coun- and respected by all. and red tape had to be elim- by the much tries should especially inated and a bolder ap- greater lend fresh impetus to Aus- The speakers’ message to the Vi- proach had to be taken to expected tria. He stressed that – not enna Forum was clear: the EIB is restructuring companies, in- gains only for Austria but for recognised as the most important cluding necessary labour the whole of the existing source of external finance and a shedding; firms also needed to co- EU – the costs of enlargement were stalwart partner in the Accession operate closely with universities far outweighed by the much Countries, and even more will be and colleges in their area with a greater expected gains. expected of it in the decades view to training a well qualified ahead. workforce. In addition, companies It is worth adding, although the prepared to embark on investment Chancellor did not spell this out, would find it helpful if industrial that enlargement will reunite Aus- Paul Gerd Löser Information and Communications Department The next EIB Forum will be held in Dublin in autumn 2003 (+352) 43 79 3139 [email protected]

Central European Flood Relief Programme

Rainfall in the second week of Au- • By early December, almost all fi- passing on the proceeds to busi- gust this year in the Elbe catchment nance contracts had been signed. nesses and local authorities. area was unprecedented. On 12 Au- Of the immediate aid, EUR 430 mil- Rgust, a daily total of 312 mm (312 The loans were provided on par- lion are being directed to Saxony l/m2) of rain fell in Dresden, more ticularly favourable terms. The and Saxony-Anhalt, EUR 170 million than ever registered in Germany Bank stands ready to grant fur- to Austria and EUR 400 million to and 30% more than the previous ther loans for up to EUR 4 billion the Czech Republic. Direct loans to record rainfalls in 1906 and 1954. in coming years on very advanta- the Federal States of Saxony and The EIB reacted without delay : geous conditions in order to fi- Saxony-Anhalt for infrastructure re- nance major repairs and damage • On 18 August, an aid programme pairs account for half of the imme- prevention measures. was proposed to the Heads of diate aid for Germany, the balance Government of the countries af- consisting of global loans. In Austria, fected. all aid is being made available via Paul Gerd Löser • By mid-September, the Bank’s de- global loans to partner banks. Aid Information and cision-making bodies had ap- for the Czech Republic comprises a Communications Department proved an immediate aid pro- direct loan to the Government (+352) 43 79 3139 gramme of EUR 1 billion in 2002. which, in agreement with the EIB, is [email protected]

  - page  Pedro Solbes, EU Commissioner, Jordi Pujol, President of the Generalitat de Catalunya, , Spanish Finance Minister, Philippe Maystadt, EIB President and Antonio Pugliese, EIB Director for Lending in MPC The EIB’s new Euro-Mediterranean financial partnership

At a meeting held in Barcelona on 18 October 2002 The EIB will implement FEMIP in at the EIB’s initiative, the Finance Ministers of the close cooperation with all partici- 15 EU Member States and 12 Mediterranean pants in the region’s development: the European Commission, the Partner Countries (MPC) launched the Bank’s new banking community in Europe and Facility for Euro-Mediterranean Investment and the beneficiary countries, multi- Partnership (FEMIP). and bilateral development finance institutions.

FEMIP was set up in the wake of Already operational, the Facility Barcelona, the Barcelona European Council represents a major step forward in 18 October 2002 (March 2002) and Valencia Euro- economic and financial cooperation F between the Union and the MPC. FEMIP’s inaugural meeting took Mediterranean Conference (April 2002). The Union’s decision to en- Its priorities are: place in the Palace of the “General- trust the Bank with strengthening itat de Catalunya” in Barcelona, the the financial component of the • development of the wealth- and city that hosted the launch of the Euro-Mediterranean Partnership job-creating private sector, in- Euro-Mediterranean Partnership in was grounded in the EIB’s 30 creased backing for “South-South” 1995. It provided the occasion for years’ experience in the MPC: regional cooperation projects and the PDCC to adopt the new Facil- since 1974, the Bank has advanced support for investment in human ity’s Business Plan for the coming EUR 12.6 billion to these countries capital (health and education); four years and hold an initial de- and, between now and 2006, a • greater technical assistance for bate on the opportunities for, and further EUR 8-10 billion will be the design of projects and the obstacles to, private-sector invest- made available through this new process of economic reform and ment in the MPC. instrument. privatisation in the MPC; • provision of innovative financial Meeting twice a year and com- A major products and risk capital. posed of representatives of the Fi- development nance Ministries of the 15 EU In addition, one of the cornerstones Member States and 12 Partner The goal of the new Facility is to of FEMIP is extensive involvement Countries, the PDCC is the body help the Mediterranean Partner of the MPC in the deployment of charged with guiding and super- Countries meet the challenges of EIB assistance through the creation vising FEMIP activities. Underlining economic and social modernisation of a Policy Dialogue and Coordina- the importance of this new facility while fostering the region’s inte- tion Committee (PDCC) and open- and the commitment to forging a gration with a view to the creation ing of two EIB regional offices, one stronger partnership, the first ses- of a Euro-Mediterranean free-trade in the Maghreb and the other in sion of the PDCC was held at min- area by 2010. the Mashreq countries. isterial level under the joint chair-

page    - EUROPEAN INVESTMENT BANK The EIB’s new euro-Mediterranean financial partnership

manship of Spanish Finance Minis- ter, Mr Rodrigo De Rato and EIB President, Mr Philippe Maystadt, in the presence of Mr Pedro Three questions to Solbes, Jean-Louis Biancarelli for Economic and Monetary Af- Director General, fairs. In addition to delegations from all the Mediterranean Part- Directorate for ner Countries, bringing together Lending Operations Ministers of Finance and Coopera- in the Partner Countries tion for the first time since 1995, delegates from the World Bank (WB), International Monetary Fund (IMF) and African Develop- EIB Information: Is FEMIP already operational? ment Bank (AfDB) participated in the discussions. J-L. B.: Yes indeed! Even before the Barcelona meeting on 18 October, EUR 8 to 10 billion at the instigation of the Bank’s Management Committee and investment in the with the personal commitment of Vice President Francis Mayer, MPC by 2006 the EIB worked intensively on setting up FEMIP and finalising arrangements for cooperation with our colleagues at the The target set in the FEMIP Busi- Commission. Consequently, the first operations were submitted ness Plan is a gradual increase in to our Board of Directors from September onwards, and some the annual volume of EIB lending have already been - or are close to being - signed. These mainly in the MPC from EUR 1.4 to 2 bil- concern private-sector development, the Facility’s top priority. I lion. To this end, the EIB disposes can give you the examples of financing for expansion of the of funds under the existing man- Toyota factory in Turkey, creation of a natural gas liquefaction dates (1), risk capital entrusted to plant in Egypt (an interesting “North-South” joint venture bet- it from the EU budget, and techni- ween British Gas, Gaz de France, Edison and Egyptian operators cal assistance and investment aid in the hydrocarbons sector) and construction of the first private- resources provided by the Union sector cement plants in Tunisia and Algeria (the latter being a in application of the decision of model project for “South-South” cooperation implemented by the Barcelona European Council the Egyptian Group Orascom). For those interested, our opera- (March 2002) (2). tions pipeline is published in the Mediterranean section of the EIB’s website. The Facility will therefore signifi- cantly enhance the nature and vol- ume of EIB operations in the MPC. EIB Information: And what about organisation? It is a key element of the Heads of State or Government of the Fif- J-L. B.: teen’s declared aim of revitalising There too, everything is in place. The Facility will be managed as a dedicated operational unit within the EIB to take account of its mixed funding: EIB own resources and Community budgetary (1) 6 425 billion under the Euro-Med funds entrusted to the Bank under a Union mandate. FEMIP’s mandate, expiring in 2007; 600 million under the Turkish Earthquake Reha- Business Plan was approved by the Finance Ministers in Barcelona bilitation and Reconstruction Assis- and a new “private-sector” division is currently being set up tance Programme (TERRA), expiring within the Mediterranean Department to underpin the expansion end-2003; 450 million under the Special of activities in support of both large and small enterprises: innova- Action Programme for the EC-Turkey tive financing operations, risk capital and global loans. A regional Customs Union, expiring end-2004; 1 billion under the Mediterranean Part- EIB office will also be opened in Cairo, followed by another in the nership Facility, set up at the Bank’s Maghreb region. In keeping with the operational objectives, these own risk and expiring end-2004; for offices will play a support role in project identification, local Cyprus, Malta and Turkey, part of the authority contacts, project monitoring and technical assistance. 8.5 billion under the Pre-Accession Fa- The inauguration of the Cairo office is scheduled for the cility, set up at the Bank’s own risk and expiring end-2003. beginning of 2003, and the Maghreb office will be set up shortly afterwards. (2) Under Community budget mandate: 250 million of risk capital and 162 mil- lion of technical assistance resources.

  - page  EIB Information: FEMIP has ambitious objectives!

J-L. B.: We received a clear mandate from the March 2002 European Council: to assist the modernisation of the partner countries with a view to creating a Euro-Mediterranean free trade area by 2010. Of course, this is ambitious, but I am confident that the calibre of our teams and the vast stock of excellent relations built up by the EIB with all players in the region will enable us to meet this challenge successfully. Nevertheless, I do not underestimate the problems facing the MPC, and to tackle these we are, amongst other things, rapidly introducing a variety of forms of enhanced cooperation with our partners active in the region. This is particularly the case with the Commission, with which we must ensure the most effective

Jordi Pujol, deployment of credit lines for risk-capital and technical President of the the “Barcelona Process” and in- assistance operations entrusted to us under the Community Generalitat de volving the beneficiary countries budget. Finally, I wish to stress that we are benefiting from a Catalunya, more closely in the implementa- long tradition of cooperation with large companies, the Philippe Maystadt, tion of EU assistance. FEMIP’s banking community, multi- and bilateral organisations and, EIB President progress will be examined by the and last but not least, local authorities in these countries. Isabel Martín Bank’s shareholders and the EU in- Castellá, stitutions after one year of opera- EIB Vice-President tion, i.e. during the last quarter of 2003 under Italy’s Presidency of the Union.

Further information on the EIB’s in Barcelona is available on the Henry Marty-Gauquié activities in the MPC since 1974, EIB’s website in the section dedi- Director of Communications the origins of the Facility, the eco- cated to the Mediterranean Part- (+352) 43 79 3153 nomic background of the MPC ner Countries: www.eib.org/lend- [email protected] and the inaugural FEMIP meeting ing/med

Financing for economic development projects in the MPC (1992-2002: EUR 6 billion)

rail transport gas electricity renewable energy air traffic management hydrocarbons exploitation airport/airline Malte port drinking water wastewater management Chypre industrial pollution abatement solid waste Liban processing irrigation natural disaster (reconstruction) Health Cisjordanie

Gaza 0 km 300 600 900 km

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EIB financing for water sector projects

of potable water, flood protection measures and storm water drainage, schemes to reduce water losses and sanitation services in- cluding wastewater treatment.

EIB’s strong commitment to support quality improvement of water supply and sewerage services is a tangible response to:

• investments needed to meet in- creasingly stringent new environ- mental regulations at European and national levels; • the recognition that water supply and wastewater systems and man- agement need to be integrated at the river basin level; • a growing participation of the pri- vate sector in the implementation and operation of water and sani- tation systems. EU policy and legal framework

The EIB operates within the frame- work of the Treaty on European Union. Its reason for existence is to facilitate the concrete implementa- tion of EU policy objectives and leg- Since the mid-eighties, the water sector has been islation. a key financing area for the EIB as a component of its support for environmental The European Union’s water policy protection and human well-being. is underpinned by a large body of In non-EU-member countries, the Bank’s European legislation, which in itself has become a major driving force support for water and sanitation projects for investment in European Union is also enforcing its backing for and Accession Countries water mar- sustainable development. kets. With its 2005 compliance deadline, the Urban Waste Water Treatment Directive is a crucial Over the last decade, EIB’s annual tor. More than 300 water and sani- piece of European legislation cur- finance for water and sanitation tation projects in the public and pri- renly driving investment in sewer- projects throughout the world to- vate sector have been supported age and treatment systems. In fu- Otalled EUR 2 billion on average , over the last 5 years, spanning a ture, the key driver will be the ranking the Bank among the wide variety of types of project, Water Framework Directive, whose largest financiers in the water sec- such as improvement of the supply first objective is to promote sustain-

  - page  Loans signed from 1997 to 2001 EIB focus on the in the water sector environment Asia & Latin America 4,20% Improving the environment Africa, Caribbean, Pacific and human well-being ranks (ACP) & PTOM 6,99% European among the EIB’s top opera- Union 61,54% tional objectives, in line with Mediterranean European Union policies. The Partner Countries Bank’s target is to ensure that 16,08% between a quarter and a third of its individual loans in the Eu- Accession Countries ropean Union and Accession 11,19% Countries support environmen- tal investment. In 2001, over a quarter of total lending in the Union went for environmental projects, while in the Accession tor with a EUR 6.8 billion share of important areas of investment. In- Countries nearly 20% of lend- aggregate EUR 8.9 billion financing vestments in water services are ex- ing supported environmental for individual projects over the pected to continue at above EUR 15 schemes. EIB activity in the en- years 1997-2001. In most Member billion in the years to come, mainly vironmental field covers the States the water services sectors are to meet the obligations of the Wa- protection of the natural envi- technically and institutionally rela- ter Framework Directive. ronment, human health issues tively mature. The main drivers of (such as air pollution abate- investments are the EU’s Directives Accession Countries – The EIB has ment, the provision of safe requiring compliance with more allocated EUR 490 million for proj- drinking water and waste- stringent standards and implemen- ects in the water sector over the water treatment), improve- tation deadlines. Over the past five years 1997-2001, while its overall ment of the urban environ- years, total new investment in the lending for environmental projects ment, and regional and global water services sectors amounted to totalled EUR 2.8 billion since it environmental issues (includ- some EUR 15-19 billion annually, of started operating in these countries ing climate change and sup- which about EUR 4-6 billion was (in 1990). Last year, environmental port for various regional sea spent on water supply and distribu- projects accounted for 20% of total and river basin programmes). tion schemes and more than EUR lending, with loans going to flood Small-scale environmental sche- 11-13 billion on wastewater collec- prevention and reconstruction fol- mes undertaken by small and tion and treatment. The Bank has lowing the floods which hit Poland medium-sized enterprises (SMEs) helped the Member States to sus- and Hungary, as well as to waste- and local public bodies attract tain their investment efforts in the water treatment (Hungary) and dis- EIB finance through its global water sector. Its lending activity tribution and sewage disposal net- loan arrangements with local over the past few years has been works (Poland, Czech Republic, partner banks. largely driven by German, English Hungary and Slovenia). The envi- and Spanish and, to a smaller ex- ronmental sector will continue to tent, by Belgian, French, Dutch, require increasing levels of invest- Austrian and Swedish investment ment as countries fall into line with able management of water re- schemes, as well as by projects by the standards laid down by the EU’s sources. By 2015, a good ecological smaller municipalities through environmental directives. Available status for all water bodies should global loans. For instance, the EIB is best estimates suggest that some be reached on the basis of the de- the largest single lender to the pri- EUR 50 billion would need to be in- velopment of integrated river basin vate water companies in the United vested to ensure full compliance management plans. Kingdom. Most EU countries have with EU water legislation, while made significant progress towards EUR 15-20 billion would be re- The regional spread compliance with the Urban Waste- quired to cover the most urgent in- water Treatment Directive, which vestment needs in the upgrading of European Union – Investment in will continue to be a major invest- treatment facilities, new connec- the European Union constitutes the ment driver. At the same time, re- tions infrastructure and rehabilita- major part of EIB’s overall lending habilitation and system optimiza- tion works for systems in poor con- portfolio in the water services sec- tion schemes are becoming ditions. The EIB and EBRD are the page    - EUROPEAN INVESTMENT BANK EIB financing for water sector projects

(1) main lenders together with ISPA EIB rail transport grant aid, which has a catalytic and natural disaster leverage effect in making invest- Financing (reconstruction) ment affordable. Co-financing and for water & district heating/heat/ power generation a rational deployment of EIB loans sanitations urban infrastructure and ISPA grants help to mobilize projects wastewater the full potential of the Union’s fi- management nancial instruments and maximize in the Solid waste their funding impact, accelerating Accession processing drinking water the catching-up process in attain- and Partner ing EU standards. The EIB is work- irrigation ing closely with the European Com- Countries industrial pollution mission and national authorities by abatement programming joint appraisal mis- sions and giving early input to help ensure a pipeline of well-prepared projects are ready for future Struc- tural and Cohesion Fund grants when the countries join the EU.

Mediterranean Partner Countries - The EIB is particularly active in the critical water sector in the Mediter- ranean region. Some 70% of public infrastructure projects financed by the Bank in the Mediterranean Partner Countries (MPCs) over the past five years related to water sup- ply and wastewater treatment, i.e. 0 km 300 600km EUR 1.2 billion. Most of the envi- ronmental infrastructure financed along the coastal regions in these countries was linked to the short- age of water resources and inade- quate wastewater treatment offer- ing limited scope for re-use. In 2001, the bulk of total lending of EUR 580 million benefiting the en- vironment went to water schemes and wastewater treatment and dis- posal in Morocco, Turkey, Algeria Water management, and Tunisia. South Africa

The Bank has a number of impor- mote economic development and ects. METAP promotes the coordi- tant instruments for enhancing political and social stability in the nation and acceleration of the project development and its lend- MPCs. This aims to provide between transfer of funds and technology ing opportunities in the water sec- EUR 8 and 10 billion in financing in for the preparation and implemen- tor in the MPCs. In October 2002, the MPCs by 2006. Sustained sup- tation of studies aimed at environ- the EIB launched the Facility for port for the environment and the mental investment. It also supports Euro-Mediterranean Investment quality of life is one of FEMIP’s pri- regional exchanges of expertise and Partnership (FEMIP) to pro- ority areas. Another important tool and information and the formula- is the “Mediterranean Environmen- tion, design and implementation of (1) ISPA is the EU’s pre-accession struc- tal Technical Assistance Pro- policy reform and institutional de- tural policy instrument for the environ- gramme” (METAP), which was velopment. So far, EIB financed mental and transport sectors. A total of jointly established by the EIB, METAP studies have generated EUR 1.05 billion in grant aid is provided World Bank, UNDP and European over 50 water and sanitation proj- annually (50% for each sector). Upon ac- cession, ISPA funds will shift to the Commission in 1990 to help identify ects. The EIB and the Commission Union’s Regional and Cohesion Funds. and prepare environmental proj- are cooperating closely within the

  - page  needs are high. EIB strongly pro- EIB and the EU Water Initiative motes an effective co-operation be- tween donors and lenders to make Together with the European Commission and the EU Member States, the the best use of available resources. EIB is participating in the design of an Action Plan for the EU Water The Bank is currently playing an ac- Initiative. The Bank is involved in the preparatory works on all the tive role collaborating with the Eu- aspects relevant to this activity, in particular the financing strategy. The ropean Commission to prepare an next international forum to present the EU’s Water Initiative will be the action plan for meeting the Millen- World Water Forum in Kyoto on 16-23 March 2003. nium Goals in water and sanitation under the banner of the EU Water The objectives and targets of the Water Initiative follow mainly from the Initiative (see Box). UN Millennium Declaration (2000) and the agreements reached at the Johannesburg Summit (2002). Key aims are to halve the proportion of Asia and Latin America – The Bank people lacking access to safe drinking water and sanitation by 2015; to has signed EUR 232 million in con- balance human needs with those of the environment by 2015; and to tracts in the water sectors in these support the development and implementation of water resource mana- regions over the past five years. EIB gement strategies and plans. Sustainable water resource management financed projects all include a Euro- will be based on the principle of integrated river basin management. pean interest, usually involving pri- vate water companies from the Eu- The implementation of the EU Water Initiative will initially concentrate on ropean Union as promoters. Their Africa and Newly Independent States (NIS), with other (Mediterranean, local business partners and con- Asian and Latin American) regions to follow. EIB has long-standing expe- sumers benefit from improved serv- rience and expertise in financing projects in the water sectors in these ice levels and management, techni- regions. cal and managerial know how, etc. The Bank has financed various Pub- Key to successful implementation of the Water Initiative is effective co- lic Private Partnership (PPP) projects, operation between donors and lenders. A mix of soft money and loans including schemes in Argentina, helps make investment affordable through cost-effective projects, gene- Brazil, Indonesia, Philippines, and rating revenues at affordable prices and targeting both the urban and China. peri-urban poor populations. Ownership is another paramount issue: the recipient countries and populations should fully endorse the initia- Russia - the EIB is involved in financ- tive. ing environmental schemes in St Pe- tersburg and Kaliningrad within a special EUR 100 million lending METAP framework. Another key activity in the ACP Countries with mandate authorized by its Board of tool is a 3% interest rate subsidy over EUR 190 million of finance in Governors. The Bank is also partici- from the Union’s budget for EIB the water sector over the past five pating in two international environ- loans (from its own resources) for years. For instance, in 2001, the mental programmes for Europe’s selected environmental projects. Bank part-financed drinking water Northern region and, more specifi- supply projects in Burkina Faso and cally, the Baltic Sea region: the Western Balkans – The EIB is in- Senegal and a sewerage scheme in “Northern Dimension Environmen- volved in post-war reconstruction Mauritius. To promote environmen- tal Partnership” and the “Baltic Sea and is currently widening its financ- tal projects, interest rate subsidies Joint Comprehensive Environmental ing for vital transport infrastructure (from budgetary resources) can be Action Programme”. to include water and other environ- obtained for EIB loans. mental projects, such as the protec- The EIB’s value added tion of the Danube river basin and In developing and transition coun- wastewater management in major tries, water sectors are generally The EIB places a strong emphasis cities. The Bank is coordinating a key less developed, lack sound (cost-ef- on maximizing the value added of study for the environmental man- fective and affordable) projects and its operations. Key elements are agement of the Adriatic Sea and is face problems due to inadequate the particular financial benefits associated with the Danube and institutional and policy frame- that projects obtain by the use of Black Sea Task Force, set up by the works, fragmentation, low per- EIB financing; the quality and European Commission. formance of utilities, a lack of ex- soundness of each project; and, perience on the project promoters’ the consistency between each fi- ACP Countries – EIB’s operations in side, etc. Projects are mostly small- nancing operation and the priority the water sector are a key compo- scale with complex institutional set- policy objectives of the European nent of its overall environmental tings. At the same time, investment Union. page    - EUROPEAN INVESTMENT BANK EIB financing for water sector projects

Memorandum of Understanding between the EIB and the Commission

The MoU lays out the working procedures between Whereas the Bank satisfies itself that projects com- EIB and Commission services, in particular DG Envi- ply with good environmental standards and prac- ronment (ENV), in the process of consulting the tices on the basis of an environmental assessment Commission provided for under Article 21 of the by its staff, DG ENV undertakes to keep the Bank EIB’s Statute. Article 21 stipulates that loan appli- well informed on infringement procedures, new cations made to the Bank shall be submitted to the legislation, policy developments, etc. Commission for its opinion.

The MoU’s objective is to clarify the distribution of tasks during the consultation procedure so as to en- sure that all projects to be financed by the Bank comply with EU policy and legislation in the envi- Water treatment ronmental field. plant, Jakarta

The Bank’s finance acts as a catalyst Working together attracting other financiers. Its rig- with the European orous project appraisal and the pro- fessional (technical) expertise of EIB Commission staff give a “seal of competence” to The EIB and European Commission projects, pulling in other sources of are key operational partners in the finance. This is particularly impor- water sector, combining their funds velopment of the water sector, tant in areas where the water serv- particularly in the Accession Coun- particularly in the southern coun- ices sector is not fully mature. An- tries, the Mediterranean Partner tries of the European Union and other important effect is that the Countries and the ACP Countries. regions outside the Union where long maturities and grace periods Synergies between the Bank’s investment needs are high and af- of EIB loans help to keep tariff in- loans, focusing on infrastructure fi- fordability is lower. As a naturally creases within limits of affordabil- nancing, and the Commission’s monopolistic, essential public serv- ity and political acceptability. grants, targeting project prepara- ice, a steady flow of projects can tion, capacity building and institu- be expected, even in times of eco- The Bank aims to drive project pro- tional reform, as well as co-opera- nomic setback and uncertainty moters towards sustainability. For tion with other donors, are crucial about other new investment. this purpose, it has various instru- for an effective and efficient trans- ments of which the provision of fer of funds. In addition, the Bank EIB co-operation with the Euro- funds for, and supervision of, project acts as an adviser to the Commis- pean Commission and with other preparation studies is most impor- sion in the appraisal of Cohesion providers of funds will be crucial to tant. Such upstream activity renders Fund and ISPA projects, which creating the necessary conditions the Bank’s involvement in the sector again has a positive impact on iden- for a successful move towards the even more effective. Another tool tifying and evaluating potential sustainable use of water resources serving the same objective is the proj- projects suitable for EIB finance. by balancing human water needs ect specific loan covenants. with preservation of the quality of In May 2002, the EIB and the Com- environmental resources. The EIB’s contribution towards im- mission signed a Memorandum of plementing the European Union’s Understanding (MoU) designed to water policy objectives represents improve the effectiveness and effi- value added that is gaining visibil- ciency of working together, build- Yvonne Berghorst ity through the Bank’s participation ing upon earlier agreements and Information and Communications in new EU environmental policy ini- experience. Department tiatives. A recent example is the (+352) 43 79 3154 EU’s Water Initiative, which was Growth potential [email protected] launched at the World Summit on Sustainable Development in Johan- The EIB has the potential to in- nesburg (late August 2002). crease its contribution to the de-

  - page  European Parliament Resolution on the EIB Annual Report 2001

tors notably in the Candidate Coun- tries, Mr Maystadt summarised the Bank’s activity in the region. With a loan portfolio of EUR 18 bn, EIB was already by far the biggest lender in the region and it would continue to make financing available for invest- ments needed to prepare the future Member States for accession. The Bank was especially active in three main areas: the environment, be- cause of the significant amounts of The EP debate took place during the November investment needed to bring coun- session which was marked by the presence of tries in line with EU standards; infra- Parliamentarians from the Candidate structure (in particular transport, en- Countries. Confirming the Bank’s ongoing ergy and telecommunications); and policy dialogue with the Parliament and its foreign direct investment (FDI), be- continued cooperation with the Commission, cause of the key contribution that the private sector could make in the EIB President, Philippe Maystadt, replied to catching-up process. EIB’s attention questions raised by the report to social issues focused on bringing to the Candidate Countries state-of- the art facilities in areas such as On 21st November 2002, for the third that had developed over recent health, education, water supply and year in succession, the European Par- years, demonstrating the Bank’s waste-water management and im- Oliament discussed a report on the EIB commitment to enhanced policy di- proving the quality of life in urban by Parliament’s Committee for Eco- alogue with the European Parlia- areas. Moreover, EIB lending to nomic and Monetary Affairs (EMAC). ment. The Bank’s efforts to address projects in the Candidate Coun- This year, the rapporteur was Dutch the suggestions and recommenda- tries encouraged the adoption of MEP Ms Ieke van den Burg (PSE), who tions made in Parliament’s two pre- EU standards, and notably EU envi- (1) presented the “Report on the Euro- vious reports were recognised, and ronmental principles and standards pean Investment Bank annual report she hoped that this year’s report with the inherent public participa- for 2001” to Parliament’s Plenary Ses- would be given equal attention. tion and stakeholder involvement. sion in Strasbourg. (See also article above on EIB Forum Among the topics covered by the in Vienna). EIB President Mr Philippe Maystadt report are: Accession Countries and and European Commissioner Mario social issues, employment and ... while also concen- Monti attended the debate in which SMEs, environmental protection, trating on EIB’s other speakers from all political groupings new mandates, funding, control took part. The opportunity was par- and prudential supervision. operational priorities ticularly welcomed by Mr Maystadt in view of the presence during that EIB’s contribution to The rapporteur welcomed the re- week of Parliamentarians from the preparing Candidate cent decision to increase EIB’s capi- tal, a measure which had been sup- Candidate Countries and the EIB’s Countries for own contribution to preparing for ported by Parliament in its 2000 their accession to EU membership. Accession... report. President Maystadt recalled

Introducing her report, Ms van den Parliament having asked the Bank (1) See EIB Informations 2001-No.107 Burg acknowledged the cooperation to increase emphasis on social sec- and 2002-No.110 page    - EUROPEAN INVESTMENT BANK European Parliament Resolution on the EIB Annual Report 2001

that in approving the 50% capital Employment and of the capital markets in Central The report by increase as from January 2003, the SMEs and Eastern Europe, Ms van den Ms van den Burg Bank’s Board of Governors had en- Burg asked that cooperation with is posted on the dorsed a clear strategy for the Bank pension funds be further devel- EIB’s website, EIB Group’s activities in support of over the coming years. Its main op- oped. Mr Maystadt confirmed the together with SMEs and employment effective- erational priority remained the fos- Bank’s objective to broaden market the adopted ness were singled out by Parliament tering of regional development penetration and investor base in texts and a as requiring increased emphasis by and economic and social cohesion the capital markets: EIB long-term verbatim of the Bank. Financing medium and in the Union, with the objective bonds had already been taken up proceedings small-scale investment was indeed that 70% of individual loans and by pension funds in the United a core activity of the EIB Group, said 50% of global loans should benefit Kingdom, and the Bank would con- Mr Maystadt: each year some Assisted Areas. tinue to seek innovative customised 100,000 SMEs benefited from ei- operations which might attract ther EIB support through long term Moreover, EIB had already made a pension funds and insurance com- finance or from support through significant contribution to the so- panies investing in the euro. the European Investment Fund, called “Lisbon objective” - to make EIB’s specialised subsidiary provid- Europe the most competitive and Control and prudential ing venture capital and guarantee knowledge-based economy - by instruments. Representing some supervision lending over EUR 13 bn under its In- 30% of the Bank’s overall lending novation 2000 Initiative. Support in the EU, this activity also pro- Several Parliamentarians having ex- was also continuing for environ- moted close cooperation with the pressed reserves regarding the EIB’s mental protection and improve- financial and banking community. audit and banking supervisory ment projects, with the aim that EIB projects were of course in- arrangements as well as the audit environmental lending should ac- tended to have a positive impact on agreement with the Commission and count for between one third and the economy, but he advised the Court of Auditors, Mr Maystadt one quarter of individual loans in against establishing too direct a confirmed Mr Monti’s views: The the EU, and a similar proportion in link between employment creation Court had full access to documents Accession Countries. Present esti- and project approval. Responding for audit matters within its remit mates indicated that the upper tar- also to Commissioner Monti, Mr concerning EU funds managed by get would, as in 2001, again be Maystadt added that EIB would re- the Bank and the agreement was achieved in 2002 within the EU. view its definition of SMEs once the working to the mutual satisfaction question of its support for midcap of the parties. The EIB’s Audit Com- EIB support for EU development companies had been addressed. mittee, assisted by external auditors, and cooperation policies with Part- audited the Bank’s own resources ner Countries was being channelled Funding and capital and reported directly to the EIB’s notably into two major new initia- Board of Governors. Mr Maystadt tives: the Investment Facility in the markets also recalled the Bank’s openness to ACP Countries; and the new Euro- being subject to a banking supervi- Mediterranean Facility Partnership Recognising the professionalism of sory body, adding: “we follow with (FEMIP) , which had been launched EIB’s fund-raising worldwide and its interest on-going discussions on the in mid-October 2002 following the pro-active role in the development possible creation of a European EU Council’s call in March 2002 for Banking Supervisor.” He further as- a new major initiative for the re- (2) See also EIB website under “Project sured the assembly of the EIB’s full gion (see also article above). News” cooperation with OLAF, the EU anti- fraud body, and other competent Mr Cox, President of the European Parliament authorities. This was notably the case and Mr Maystadt, President of the EIB regarding the Lesotho Highlands Water project(2) and Mr Maystadt confirmed his availability to provide further clarification to parliamentary committees on any of the above as may be required.

Patricia Tibbels Information and Communications Department (+352) 43 79 4317 [email protected]

  - page  EIB Group in 6th R&D Framework Programme

The 6th EU Research Framework Programme, launched official- ly in Brussels on November 11, is designed to lay the foundations of a European Research Area.

New funding instruments, such as (FP6), they did so in the hope of crease spending from 1.9% of GDP large Networks of Excellence and meeting potential partners and towards 3%. Funding streams Integrated Projects, will ‘pool’ ex- finding new ways of funding their should promote collaborative Ncellence to achieve critical mass at research and innovation activities. working and national research ef- European scale, under the Euro- Again, the Research and Develop- forts, which have to become more pean Commission managed new ment (R&D) segment is facing a effective and integrated to reach Framework Research Programme. moment of truth: the gap in R&D scientific excellence. The European Investment Bank spending and other indicators be- Group will play an active role in tween the EU and the US has lately Will the Research Framework Pro- this Programme. The EIB, espe- increased, making the goal of be- gramme also deliver on its prom- cially active over the last years in coming the most knowledge- ises? Philippe Busquin, European the area of Research & Develop- based society in the world more Commissioner responsible for ment via its Innovation Initiative difficult to achieve. This goal is not R&D, thinks it will. In his opening i2i, has committed itself to keep made easy by the decline of in- address to the Launching Confer- R&D support as a cornerstone of vestor confidence and the drying ence in the Brussels Heysel com- the EIB’s future involvement in in- up of new funding. Other major plex, transformed into a massive novation finance. A specific Task obstacles are a low efficiency in state of the art technology fair, Force has been created to manage transforming research in products, Busquin said that the Research this activity, coordinated by Jean- the lack of a performing EU patent Framework Programme is a policy Jacques Mertens and Paolo Munini. system and the lack of coordina- tool that will act like a catalyst for tion and collaboration between change and growth. Towards a knowledge national research systems. based society Terence Brown, EIB Director Gen- Bridging the Gap eral and keynote speaker at the When more than 8000 people Research and Innovation session from all over Europe met in Brus- The European Commission is set- of the conference, pointed out sels in November for the launch of ting an agenda for improving R&D that Europe should make the the European Commission’s Sixth in the EU by 2010. In a communi- most of its leadership in various Framework Research Programme cation it asks Member States to in- scientific and technological fields. page    - EUROPEAN INVESTMENT BANK EIB Group in 6th R&D Framework Programme

Mr Brown: “Since the 2000 Lisbon these efforts are carried out in close Council, and the launch of i2i, the co-operation with the European EIB Group has widened its scope. Commission with the objective of The EIB is now starting to provide optimising synergies. finance for Large Research Infra- structure projects, which it did not At a round table organized by do before. What EIB can bring UNICE, Michel Deleau, Director- there is focus, spreading good General of the Projects Direc- practice, and smoothing the ex- torate, stressed that: “The EIB penditures curve for the sponsors. Group is significantly adapting its Also, EIB investment in clusters and financial products to the funding incubators can further help to pro- of innovation. In particular it now vide the infrastructure, which will considers research expenditures encourage expansion of R&D, en- such as salaries as investment and sure the bridge between academia addresses the financing needs be- and industry, and stimulate entre- tween SMEs and large corpo- preneurial culture.” rates”. In this context, the EIF will continue to innovate and to play Optimising synergies its catalytic role by attracting other investors. Michel Deleau He also said it was important to use added that the EIB is especially the full potential for complemen- well placed to finance research at will be organised both in and to tarity and synergy between the ex- the interface between higher edu- highlight R&D projects/pro- isting grant and loan instruments, cation and industry. “The EIB is ac- grammes features and contents/ as well as with equity and guaran- tively present in the funding of structures, aiming at further im- tee schemes. “The EIB Group is al- both sectors and committed to proving the Bank’s successful per- ready involved, to a significant ex- pursue its effort in Research and formance in the sector over the tent, in financing innovative SMEs, Innovation funding, as exempli- years to come. partly also through the European fied by the intention to prolong Investment Fund, as well as in sup- the i2i programme”. Candidate Countries porting corporate investment, pro- vided it contributes to our priority The recently created R&D Task A special feature of the R&D Con- objectives such as under our i2i pro- Force – who co-ordinated the EIB ference was the high representa- gramme or for regional develop- presence at the conference – took tion of the Candidate Countries ment. Furthermore, we are review- note of the important policy and (15% of the participants came ing our approach and lending operational indications obtained from the accession states). Last instruments so as to cover the mid- at the conference and is working October they signed an association size companies better than we have towards transferring them into agreement with the Commission done to date”, Mr Brown said. All the Bank’s operations. Meetings to participate fully in the FP6, on equal footing with the EU member states for the first time. The EUR 17.5 billion budget agreed for the Research Programme will there- fore be the first area where en- largement becomes a reality.

Pé Verhoeven Information and Communications Department (+352) 43 79 3118 [email protected]

EC Comissioner Philippe Busquin (research) and Jean-Jacques Mertens (Projects directorate and member of the EIB R&D Task Force)

  - page  EU policy on transparency and pub- lic disclosure of information by pub- EIB revises its Public lishing high-quality information on its strategy, policies, activities and Information Policy practices. It balances this with the constraints to disclosure which are a prerequisite for continuing to function properly. Thus EIB’s aim is to disclose information and docu- One of the key corporate objectives for releasing and updating infor- ments whenever possible, whilst of the EIB is to achieve a high level mation. They are also available on taking into account, for example, of transparency of its activities and request in paper form. The website its duty to ensure that the promot- Ocommunicate even more effective- provides further information, for ers of projects, borrowers, and oth- ly with all stakeholders. In this con- example, on the Bank’s policy dia- er parties involved in a Bank-fi- text, the Bank carried out an in- logue with other EU institutions as nanced project can rely on confi- depth review of its public informa- well as with specific interest groups. dentiality in their banking relation- tion policy and has recently issued All EIB publications are either avail- ship. new documents to explain the prin- able directly on the website or are ciples and rules governing the poli- listed there. How EIB Communicates - an cy and describe how it is applied. Overview summarises the means The Information Policy Statement used by the Bank to implement the These documents can be consult- outlines the framework for the pol- policy statement. Amongst other ed on the Bank’s website, icy and the underlying principles. It things, it contains a list of principal www.eib.org, the principal medium describes the EIB’s commitment to publications issued. This document page    - EUROPEAN INVESTMENT BANK EIB revises its Public Information Policy

will be regularly updated, reflect- The main documents outlining the EIB is committed to applying an ac- ing the on-going nature of the EIB’s Public Information Policy are: tive information policy and to Bank’s commitment to enhanced strengthening its efforts in this • Information Policy Statement transparency. field. It regards its public informa- (available in all EU languages) tion policy as an evolving, flexible EIB has also revised its Rules on • How EIB Communicates - an process, subject to continuous eval- Public Access to Documents, replac- Overview (available in English, uation and quality assessment. It ing those adopted by its French and German) welcomes comments from all Management Committee in 1997. • Rules on Public Access to stakeholders with a view to future The new rules are the EIB’s response Documents (available in all EU development of the policy and to the call by the European languages) has set up a dedicated mailbox Parliament, Council and Commission [email protected] to promote this. • Code of Good Administrative to those EU institutions and bodies Behaviour for the Staff of the EIB not directly covered by Regulation Patricia Tibbels in its Relations with the Public EC/1049/2001 to review their own Information and (available in all EU languages) rules on public access to documents, Communications Department taking account of the Regulation’s • Contact Details (available in (+352) 43 79 4317 principles and limits. English, French and German) [email protected]

ferry staff and visitors from one building to the other. Naturally, Additional EIB premises data transmission links will pro- vide staff working in the new in Luxembourg-Hamm building with full access to IT fa- cilities.

Pé Verhoeven Information and Communications The EIB’s activities in providing fi- Training Centre are among the Department nancial support for the European services and departments that will (+352) 43 79 3118 Union’s objectives have developed move to the new building as of [email protected] EIB Vice-president T Wolfgang Roth, considerably over the last years, no- end- 2002. assisted by Rémy Jacob tably with new mandates such as (Deputy Secretary the Innovation 2000 Initiative, Telecommunications will continue General ) and Agustin preparing tomorrow’s Europe in to be channelled via the Bank’s cen- Auría (Head of Central and Eastern Europe and tral number, 4379-1. New extension Common Facilities Management), signs contributing to the EU’s develop- numbers for individual telephones the contract for the ment and cooperation policies with and faxes will be communicated to purchase of the Hamm Partner Countries. interested outside parties as soon building. On the right: as they are available. E-mail ad- Marthe Thyes-Walch To cope with its immediate require- dresses of individual staff members (Notary) and Hanns- Claus Paqet ment for extra space for offices and remain unchanged. (Architect and builder). other facilities, the EIB recently pur- chased a new building in the Rue Excellent connections will make de Bitbourg in Hamm, near Luxem- the physical distance between the bourg city centre and about 10 min- two EIB buildings as insignificant utes from its headquarters in Kirch- as possible. A regular shuttle will berg. The new premises will house facilitate fast and efficient trans- about 160 staff. Translation, Credit mission of mail and other docu- Risk, Internal Audit, Operations ments that cannot be sent elec- Evaluation, Economic and Financial tronically. In addition, a Studies and Human Resources continuous minibus service will

  - page  EIB-Information is published periodically by the President’s visit to the New York Information and Communications Department of the European Investment Bank. Stock Exchange

Material which appears in EIB Information may be freely reproduced; an acknowledgement and clipping of any article published would be appreciated. A senior delegation of the EIB September 30th. The President force the importance attrib- led by its President, Philippe rang the Closing Bell and the uted by EIB to the U.S. investor Maystadt, visited New York on event was televised live on all base and also as a statement of European A30th September/ 1st October major financial TV channels. intent for increased presence in Investment Bank 100, bd Konrad Adenauer 2002. Amongst other activities Mr. Dick Grasso, President & the U.S. capital market. L - 2950 Luxembourg on the agenda, were the con- CEO of NYSE presented Mr. Tel. (+352) 4379 - 1 Fax (+352) 43 77 04 cluding of listing arrangements Maystadt with a replica gavel The Bank’s USD funding pro- www.eib.org for all EIB’s outstanding USD and a medallion to commemo- gramme is a key component of [email protected] global bond issues – seven is- rate the event. The EIB delega- its presence in the global capi- Department for Lending sues for a total of USD 18 bil- tion was also given a tour of tal markets. Currently, the Bank Operations in: Italy, Greece, Cyprus and Malta lion – on the New York Stock the trading floor and briefed has USD 28 billion outstanding Via Sardegna, 38 about the Exchange’s electron- in USD benchmark bonds. Of I - 00187 Rome Exchange, providing an update Tel. (+39) 06 47 19 -1 to key U.S. financial institutions ic trading systems. Later, the these, USD 17 billion have been Fax (+39) 06 42 87 34 38 on the Bank’s policies and per- President was interviewed live issued in global format since Athens Office spectives and holding media on Bloomberg Television. January 2001. Targeting the 364, Kifissias Ave & 1, Delfon GR - 152 33 Halandri / Athens briefings with a view to publi- size and breadth of the U.S. in- Tel. (+30 - 2) 10 68 24 517-9 cise the Bank’s activities in the An NYSE listing facilitates EIB vestor base is vital to EIB’s Fax (+30 - 2) 10 68 24 520 U.S. capital markets. to distribute widely its bonds to strategic approach to the USD Berlin Office Lennéstrasse, 11 institutional as well as retail in- market. D - 10785 Berlin The New York Stock Exchange vestors. While EIB’s USD securi- Tel. (+49 - 30) 59 00 479 - 0 Fax (+49 - 30) 59 00 47 99 accorded the Bank with the ties have been quoted on NYSE privilege of bringing the trad- since 1964, this is the first time Carlos Guille Brussels Office Rue de la Loi, 227 ing activities of NYSE to a close that the entire outstanding & Sandeep Dhawan B - 1040 Brussels at 4:00 p.m. EST at the end of global bond curve has been list- Americas, Asia & Pacific Tel. (+32 - 2) 23 50 070 Fax (+32 - 2) 23 05 827 the third fiscal quarter on ed. This serves both to re-en- Capital Markets Department Lisbon Office Avenida da Liberdade, 144-156, 8. Dto P - 1250-146 Lisbon Tel. (+351) 21 34 28 989 Fax (+351) 21 34 70 487

Madrid Office Calle José Ortega y Gasset, 29 E - 28006 Tel. (+34) 91 43 11 340 Fax (+34) 91 43 11 383

European Investment Fund 43, avenue J.F. Kennedy L - 2968 Luxembourg Tel. (+352) 42 66 88 - 1 Fax (+352) 42 66 88 - 200 www.eif.org [email protected]

Lay-out: EIB graphic workshop, Sabine Tissot

Photos: EIB Photographic library, Alexander Wulz, Isopress Senepart, eyewere images, PhotoDisc, Digitalvision.

Printed in Luxembourg by Buck on Arctic Silk paper awarded the “Nordic Swan“ environment label

QH - AA - 02 - 003 - EN- C