REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2013 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE AND ON THE APPLICATION OF DECISION No 1080/2011/EU OF 25 OCTOBER 2011 COVERING THE EIB FINANCING OPERATIONS SIGNED DURING THE PERIOD FROM 2007 TO JUNE 2014
Date: 2014-10-30
Institutions: European Commission
Subjects: EIB loan, adaptation to climate change, development aid, financial management, investment project, investment protection, third country













EUR-Lex - 52014DC0674 - EN











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52014DC0674

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2013 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE AND ON THE APPLICATION OF DECISION No 1080/2011/EU OF 25 OCTOBER 2011 COVERING THE EIB FINANCING OPERATIONS SIGNED DURING THE PERIOD FROM 2007 TO JUNE 2014 /* COM/2014/0674 final */









1.           INTRODUCTION
Decision No 1080/2011/EU
of the European Parliament and of the Council of 25 October 2011 granting an EU
guarantee to the European Investment Bank (EIB) against losses under loans and
loan guarantees for projects outside the Union[1]
(the “Decision” or the "EU guarantee") requires the Commission to
report annually on EIB financing operations carried out under the EU guarantee,
building on yearly reports provided by EIB. 
The present report also provides a summary
of the own risk operations carried out by the EIB in 2013 in the regions
covered by the Decision. The EIB covers its operations in Africa, Caribbean and Pacific (ACP) as well as in Overseas Countries and Territories (OCT) in a
separate annual report[2].
Article 17 of the Decision requests the
Commission to present to the European Parliament and the Council a final report
on the application of the Decision. The final report is provided in Annex and
covers the EIB external financing operations signed during the period from 2007
to 30 June 2014 following the extension by six months of the Decision.
More detailed information and statistical
tables on the above activities, including at project, sector, country and regional level, are provided in the attached Staff Working Document (the “SWD”). 
Following the second year of implementation
of the new EIB REsults Measurement (REM) framework, this report provides more
detailed information on expected results based on EIB financing operations signed
in 2013. Actual results achieved based on six selected case studies on
operations under implementation are presented in the SWD.
On 16 April 2014, the European Parliament
and the Council adopted a new Decision No 466/2014/EU[3]
granting an EU guarantee to the EIB against losses under financing operations supporting
investment projects outside the EU over the period 2014-2020. 
2.           KEY RESULTS
The Decision sets
an overall General Mandate ceiling to EUR 27,484 mn and an additional EUR 2,000
mn Climate Change Mandate which was activated.
Despite a challenging business environment
in 2013, the EIB increased signatures in the regions covered by the Decision to
EUR 6.8bn (EUR 6.5 bn in 2012). Financing under the EU guarantee increased by
around EUR 0.4bn to EUR 4.4bn, while financing at EIB own-risk declined by EUR
0.1bn to EUR 2.4bn.
The EIB continued to demonstrate its strong
commitment to supporting the EU's climate action agenda. Overall, climate
action signatures in the External Mandate regions as defined in the Decision amounted
to EUR 2.1bn in 2013, or 31% of total signatures. In January 2012, the EIB
launched the REM framework, which strengthens measurement and reporting on the
results and impact of its operations as requested in the Decision. An extensive
set of objectively measurable and monitorable indicators have been developed
which will guide the assessment throughout the project life cycle. The expected
results for all EIB operations signed in 2013 are summarised in the SWD. EIB's own
report on results of EIB operations outside the EU has been published on its
website[4]. 
The Decision emphasised a stronger
alignment of EIB external activity and EU external policies, programmes and
instruments. Over the year 2013, the EIB continued to cooperate closely with
the Commission and the EEAS to strengthen the consistency and coherence of EIB
actions with external EU policies. In this context, the Memorandum of Undestanding
between EC and EIB was updated and extended to EEAS and signed by the parties
on 12/09/2013. 
3.           FINANCING
OPERATIONS
3.1.        Overview
of EIB financing volume in the regions covered by the Decision
The following table provides an overview of
the volume of EIB financing in 2013 in the regions covered by the Decision.
Table 1: EIB External Financing Operations signed in
2013
 Countries of operation || Operations under mandate || EIB own risk operations || Total 
 (EUR million) || Comprehensive guarantee || Political risk cover || Total 
 Pre-Accession Countries || 960 || 0 || 960 || 1998 || 2958 
 Mediterranean countries || 397 || 133 || 530 || 0 || 530 
 Eastern Neighb., Russia || 1126 || 560 || 1686 || 119 || 1805 
 Asia and Latin America || 782 || 215 || 997 || 242 || 1240 
 South Africa || 0 || 260 || 260 || 0 || 260 
 Total || 3265 || 1168 || 4433 || 2359 || 6793 
Notes:
In addition to the above volumes on EIB own resources, equity and microfinance
operations amounting to EUR 53m were signed on third party resources in the Mediterranean.
The share of activity under the EU mandate
in total volume increased in 2013 by 4% to reach EUR 4.43bn (EUR 3.96bn in
2012) or 65% of total 2013 financing in the regions covered by the Decision. The
bulk (85%) of operations financed at EIB own risk was signed in Pre-Accession
countries.
In 2013, 74% of the loans signed under the
mandate were covered by a Comprehensive Guarantee (EUR 3.26bn), which is used
for sovereign and sub-sovereign operations, while 26% benefited from the political
risk cover (EUR 1.17bn), for private sector operations with all other risks in
these operations being borne by the EIB. 
Defaults on interests payments and loan
repayments from the Syrian Government continued in 2013[5]. Where in 2012, EIB had
made calls on the Guarantee Fund for a total of EUR 42 million and recovered
EUR 2.1 million, EIB made in 2013 supplementary calls for a total of 64.8 EUR
million. 
Chart 1: Annual evolution of EIB external lending
volumes on own resources
At the end of 2013 (see table 2), the
overall amount signed under the Decision (less cancellations) stood at EUR 27bn,
or 92% of the overall ceiling under the Mandate. An overall amount of EUR 2.46
bn was available for new EIB operations under the Mandate. The period of the
Decision was automatically extended by six months at the end of 2013 because
the European Parliament and the Council had not adopted a new Decision. 
Table 2: EIB
total signatures and disbursements under the Mandate (2007-2013)
 EUR mn || Ceiling || Net Signed || Net signed as % of ceiling || Disbursed || Net disbursed as % of net signed 
 Pre-Accession || 9 048 || 8 949 || 99% || 5 648 || 63% 
 Mediterranean || 9 700 || 8 381 || 86% || 4 145 || 49% 
 Eastern Neighbours, Russia || 3 848 || 3 844 || 100% || 898 || 23% 
 Asia and Latin America || 3 952 || 3 284 || 83% || 2 322 || 71% 
 South Africa || 936 || 911 || 97% || 558 || 61% 
 General Mandate Total || 27 484 || 25 369 || 92% || 13 571 || 53% 
 Climate Change Mandate (2011-2013) || 2 000 || 1 656 || 83% || 217 || 13% 
 Total Mandate || 29 484 || 27 025 || 92% || 13 788 || 51% 
Nota Bene:
Disbursement amounts are calculated on the EUR equivalent based on the exchange
rate at the moment of the transaction
In table 2, one can see that the EIB
reached or almost reached the regional ceilings in Pre-Accession, Eastern
Neighbourhood and in South Africa at the end of 2013. Headroom was still
available mainly in Mediterranean and ALA countries. The Decision provides for
the possibility of reallocating up to 10% between the regional ceilings.
In terms of disbursement, which is an
indicator of progress in project implementation, 51% of net amounts signed
under the Decision (EUR 13.8 bn) had been disbursed at the end of 2013. This
corresponds to the usual average time lag between signature and disbursement. Asia
and Latin America progressed well having drawn 71% of net signed amounts,
followed by Pre-Accession (63%) and South Africa (61%). In Eastern
Neighbourhood and Russia, disbursements remained below average at 23% of net
signatures, reflecting initial delays in project implementation and
administrative delays in recipient countries. The rate of disbursements under
Climate Change Mandate is relatively low because of its activation at the end
of 2011.
Table 3: Annual lending signatures under the current
Decision (2007-2013)
 EUR mn || 2007 (*) || 2008 || 2009 || 2010 || 2011 || 2012 || 2013 || Gross Total || Cancel-lations || Net Total 
 Pre-Accession || 389 || 2 009 || 2 859 || 1 535 || 874 || 821 || 610 || 9 096 || 147 || 8 949 
 Mediterranean || 1 205 || 1 195 || 1 510 || 2 009 || 926 || 1 305 || 530 || 8 680 || 299 || 8 381 
 Eastern Neighbours, Russia || 0 || 170 || 233 || 631 || 675 || 934 || 1 443 || 4 085 || 241 || 3 844 
 Asia and Latin America || 305 || 469 || 1 051 || 643 || 310 || 300 || 584 || 3 662 || 378 || 3 284 
 South Africa || 0 || 203 || 280 || 50 || 115 || 100 || 260 || 1 008 || 96 || 912 
 General Mandate Total || 1 899 || 4 045 || 5 932 || 4 867 || 2 900 || 3 460 || 3 427 || 26 530 || 1 161 || 25 369 
 Climate Change Mandate (2011-2013) ||   ||   ||   ||   || 150 || 500 || 1 006 || 1 656 || -- || 1 656 
 Pre-Accession ||   ||   ||   ||   || 150 || - || 350 || 500 || -- || 500 
 Mediterranean ||   ||   ||   ||   ||   || 350 || - || 350 || -- || 350 
 Eastern Neighbours, Russia ||   ||   ||   ||   ||   || - || 243 || 243 || -- || 243 
 Asia and Latin America ||   ||   ||   ||   ||   || 150 || 413 || 563 || -- || 563 
 South Africa ||   ||   ||   ||   ||   || - || - || - || -- || - 
 Total Mandate || 1 899 || 4 045 || 5 932 || 4 867 || 3 050 || 3 960 || 4 433 || 28 186 || 1161 || 27 025 
   || (*) Until 31st July 2007, lending was also carried out under the previous 2000-2007 Decision. 
In terms of
number of projects, 42 new operations were signed under the Decision in 2013
compared to 43 in 2012. See table below.
Table 4: Number of operations signed by regions,
by resource, in 2013
 Regions || Mandate || EIB own-risk || Total || Third party resources 
 Asia and Latin America || 11 || 2 || 13 ||                -   
 Mediterranean || 7 ||                -   || 7 || 9 
 Pre-Accession || 6 || 19 || 25 ||                -   
 Eastern Neighbours, Russia || 16 || 1 || 17 ||                -   
 South Africa || 2 ||                -   || 2 ||                -   
 Multi-Regional* ||                -   || 4 || 4 ||                -   
 Total || 42 || 26 || 68 || 77 
* Operations signed with a
focus on 2 or more regions
The Pre-Accession
countries remained the main beneficiary region of EIB financing outside the EU
in 2013 with EUR 2.96 bn signed (25 new operations), representing 43.5% of
total financing in the regions of the Decision. EIB prioritised credit lines to
SMEs and trans-European infrastructure projects. Lending under the EU guarantee
declined to EUR 0.96 bn and lending under the own-risk Pre-Accession Facility
amounted to EUR 2.0 bn compared to EUR 2.3 bn in 2012 (see table 1). 
The Mediterranean countries came under a
challenging operating environment in 2013 due to the political events. EIB's
activity dropped by 66%, from EUR 1.7bn in 2012 to EUR 0.6bn (16 new
operations). As in previous years, energy and transport sectors were the
largest beneficiaries of EIB financing in the Mediterranean region. The EIB
also stepped up its lending to the private sector with 9 operations signed for
private equity and microfinance on third party resources.
EIB financing in the Eastern Neighbourhood
and Russia increased with 17 new operations to EUR 1.8bn (see tables 1 and 4).
This was mainly due to activities in Russia. However, political events forced
the EIB to postpone three operations in Ukraine and Russia which would
otherwise have been concluded over the mandate period. Signing of further potential
operations in Russia will be subject to the relevant EU sanctions. The
Commission will monitor and evaluate the likelihood of further activation (and
possible need for replenishment) of the Guarantee Fund.
Furthermore, the EU-Russia transport
dialogues have been frozen since 2012. The conditions to re-launch transport
cooperation have so far not been met and the wider bilateral relationship has
deteriorated further during 2014 following the Ukraine crisis
In Asia and Latin America, total lending
increased to EUR 1.24 bn (compared to EUR 700 mn in 2012). 
As shown in the table 5, credit lines to
financial institutions for private sector development were the most prominent
activity by volume of operations signed in 2013, in particular in the
Pre-Accession region and the Eastern Neighbourhood. These were followed by
energy - in particular in the ALA regions - transport and urban development.
The breakdown by sector and region is provided below.
Table 5:
Sectoral breakdown of external operations signed in 2013 under the Mandate and
at EIB own risks
 EUR mn || Pre-Accession || Mediterran-ean || Eastern Neighbour-hood Russia || Asia and Latin America || South Africa || Total 
 Energy || 199 || 253 || 105 || 867 || 110 || 1.534 
 Transport || 460 || 50 || 438 ||             -   ||   || 948 
 Water, sewerage || 6 || 77 || 64 || 60 ||   || 207 
 Credit lines || 1.450 || 80 || 1.193 || 283 ||   || 3.006 
 Agriculture, fisheries, forestry || 150 ||   || 6 || 21 ||   || 177 
 Industry ||   || 20 ||   || 9 ||   || 29 
 Financial Services || 192 ||   ||   ||             -   ||   || 192 
 Telecommunications || 300 ||   ||   ||             -    ||   || 300 
 Urban development || 200 || 50 ||   ||             -   || 150 || 400 
 Total || 2.958 || 530 || 1.805 || 1.240 || 260 || 6.793 
Notes: In addition
to the above volumes, equity and microfinance operations amounting to EUR 53m
were signed on third party resources in the Mediterranean.
3.2.        Contribution to EU policy objectives 
The Decision defines three horizontal
high-level objectives for all regions covered by the EU budgetary guarantee
("Mandate objectives")
(i)         Climate change mitigation and
adaptation; 
(ii)        Development of social and
economic infrastructure;
(iii)       Local private sector
development, in particular support to SMEs.
Additional underlying objectives include
the contribution to the general principles guiding external action, as referred
to in Article 21 TEU and regional integration among partner countries,
including economic integration between pre-accession countries, neighbourhood
countries and the Union. 
Technical Regional Operational Guidelines[6] aim at ensuring that
EIB financing under the EU guarantee is consistent with and complementary to
corresponding EU external policies, programmes and instruments in the different
regions covered by the Decision.
The contribution to the Mandate's
objectives is reflected in the following chart taking into account both the
2013 operations under Mandate and under the own-risk facilities. Almost half of
operations contribute to more than one objective. This is particularly relevant
in climate action projects. 
Chart 2: Contribution to mandate objective
(%)
Climate change mitigation and adaptation
The EIB has continued in 2013 to strengthen its climate action
lending. The additional Climate Change Mandate envelope of EUR 2 bn has helped
to widen, beyond the emerging market economies, the spread of developing
countries in which investments in climate action are being made. By the end of
2013, in terms of signature, 83% of the EUR 2 bn envelope (released in October
2011) had been utilised and the balance was already fully earmarked for
additional operations in pipeline, which were indeed signed before the expiry
of the Mandate in June 2014. Climate action lending remained strong in Asia
with almost 90% of signatures, it reached close to 50% in Latin America and
Central Asia, and 88% of the new financing volume in South Africa. In the Mediterranean, 50% of the
financing signed in 2013 supported climate action. Substantial amounts of
climate action finance were also mobilised for projects in the Pre-Accession and
Eastern Neighbourhood regions, but the overall proportion is less there in the light
of strong other lending priorities, notably private sector development.
Table 6: Climate Action external lending
signatures in 2013 in the regions covered by the Mandate
   || Climate Action under || Total climate action || as % of total signed 
 EUR m || Climate Change Mandate || General Mandate || EIB own-risk Facility 
 Asia || 286 || 127 || 51 || 464 || 88% 
 Central Asia || 127 ||   ||   || 127 || 58% 
 Latin America ||   || 52 || 191 || 243 || 49% 
 Mediterranean ||   || 253 ||   || 253 || 48% 
 Pre-Accession || 350 ||   || 159 || 509 || 17% 
 Eastern Neighbours, Russia  || 243 || 5 || 19 || 267 || 15% 
 South Africa  ||   || 230 ||   || 230 || 88% 
 Total in Mandate Regions || 1006 || 667 || 421 || 2.094 || 31% 
The energy sector
accounted for the largest part in terms of climate financing volume (EUR 1.3bn)
and number of projects (16), reflecting especially the strong demand for
investments in energy efficiency and renewable energy. Other projects which
contributed to the EIB's climate action objective were in the sustainable
transport (EUR 357mn) and urban development (EUR 177mn) or "natural
resources" (EUR 120mn) sectors. 
In 2013, climate action signatures amounted
to EUR 2.1 bn, representing 31% of total EIB external financing in the regions
covered by the Decision. This proportion is above the EIB’s global target of
25%. The relatively high volume signed in 2013 can be explained by the
signature of relatively high number of projects. 
Development of social and economic
infrastructure
The EIB signed a total of 46 external operations
worth EUR 3.6bn in order to help developing social and economic infrastructure
in various sectors. This includes 9 intermediated operations where the actual
sector distribution is not known in advance. As in previous years, the largest
share was in the energy (18 projects) and transport (10 projects) sectors. 
Local private sector development, in particular
support to SMEs
The EIB supports local private sector
development in different ways, most commonly by extending credit lines to
financial intermediaries (mainly banks) for on-lending to small and medium
enterprises. Overall, of the 51 external operations that contributed to local
private sector development, 36 were loans to intermediaries providing EUR 3.3bn
worth of financing for on-lending to SMEs or mid-caps. Another 12% of these
operations were direct loans to larger private companies, and 9 operations
represent investments in private equity funds and microfinance institutions
(MFIs).
Regional integration
Projects in a number of sectors are
expected to contribute to regional integration. Of the 17 projects (EUR 1.1bn)
contributing to regional integration, 6 are direct operations in the transport
sector. These are mainly cross-border roads and regional air navigation
networks. Four projects contribute through the energy sector. This dimension
was strongest in the Pre-Accession and Eastern Neighbourhood region where
roughly three quarters of the total external lending volume in support of
regional integration is concentrated.
3.3.      Impact and value added of EIB
operations. 
The REM framework provides an assessment of
the EIB financing operations throughout their lifecycle. It helps to select
sound projects which are in line with EU priorities based on concrete results,
and where the EIB involvement will add value. At appraisal, results indicators
are identified, with baselines and targets that capture expected economic,
social, and environmental outcomes of the operation. Achievement against these
specified performance benchmarks is monitored throughout the project life and
reported at two major milestones: at project completion and 3 years after project
completion ("post completion") for direct operations; at the end of
the investment period and at the end of life of private equity funds; and at
the end of the allocation period for intermediated lending.
Projects are rated according to three
"Pillars":
(i)         Pillar 1 rates the expected
contribution to the EU and the countries' priorities and eligibility under EIB
mandate objectives.
(ii)        Pillar 2 rates the quality and
soundness of the operation, based on the expected results.
(iii)       Pillar 3 rates expected EIB
financial and non-financial additionality.
More information on the REM conceptual
framework can be found in the SWD. Since it will take several years for actual
results to be produced by operations under the REM framework that was
introduced in 2012, six selected case studies in the SWD present actual results
achieved by projects under implementation. Therefore here below the expected
results are presented and discussed for all operations signed in the regions
covered by the Mandate.
Chart 3: Distribution of expected REM ratings by
pillar of the projects signed in 2013 
 
Expected results of all operations
signed in 2013 in the regions covered by the Mandate:
As the distribution of Pillar 1
ratings shows, more than half of the operations signed in 2013 are expected to
make an excellent contribution to mandate objectives, meaning a high
contribution to both the countries' own development objectives and the EU
priorities for the country and/or region. Those projects that are expected to
make a "good" contribution are in line with mandate objectives and
could make a high contribution to either the country's own development
objectives or those of the EU and a moderate contribution to the other.
In terms of Pillar 2, 9% of operations signed are expected to make an excellent rating
including direct operations with an economic rate of return (ERR) greater than
15%, or intermediated operations (credit lines) which make an exceptional
contribution to increasing access to finance as well as developing the financial
sector, in a relatively low risk environment. More than 86% of operations are
expected to be "good". These are direct operations with an average
ERR of 10% to 15%, or intermediated operations which contribute to increasing
access to finance and financial sector development yet in a high risk
environment with less likelihood of results. 
Pillar 3
ratings show that about 21% of operations signed in 2013 are expected to have
high additionality - typically, extending the longest maturity of debt
available to the borrower from the market by more than 100%; matching economic
life of the assets to be financed by at least 80%; taking a lead role in
project preparation, structuring and/or implementation support. Another 62% are
expected to make good contribution, providing significant additionality -
typically, combining significant contribution in terms of either technical and
sector aspects or higher standards and assurance. The 17% of signed operations
that were rated as expecting moderate additionality were typically standard
products where limited contribution to project design, structuring or
implementation was necessary.
4.           COOPERATION
WITH THE COMMISSION 
A list of the existing frameworks within
which the EIB and the Commission cooperated in 2013 with a view to
strengthening the coherence of overall EU support in the regions covered by the
Decision is included in the accompanying SWD, together with a summary table on
the financing volumes signed by the EIB upon its management of EU budget
resources. Moreover, some of the main activities coordinated between the two
institutions in 2013 are outlined in the SWD.
5.           COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS 
Cooperation with other International
Financial Institutions (IFIs) is an integral part of the EIB activities,
ranging from dialogue on institutional matters, horizontal topics and thematic
issues, and mutual consultation, to enhanced forms of operational co-financing
and work sharing. In 2013, co-financing with other IFIs or European bilateral
institutions represented 47% of EIB total signatures with the EU guarantee. The
list of co-financed operations signed in the regions covered by the Mandate in
2013 is included in the SWD.
Dialogue between IFIs mostly takes place
within specialised working groups meeting periodically to share best practices
or to address specific issues. One such group has been working on results
harmonisation among financial institutions active in the private sector, and a
similar working group was set up in 2013 on results harmonisation for public
sector projects. 
In addition, ad-hoc working groups are
established to address specific issues, for instance the G-20 and G-8 often
call on the World Bank and MDBs for input. The EIB participates in other
dialogue initiatives such as the Heads of MDBs meeting (January 2014) which was
organised by the EIB. The EIB also plays a key role in the EU Platform for
Blending in External Cooperation.
[1]               OJ L 280, 27.10.2011, p.1
[2]               EIB – 06/2014 – ISBN 978-92-861-2059-6 "Annual
Report 2013 on EIB activity in Africa, the Caribbean and Pacific, and the
overseas territories"
[3]               OJ L 135, 8.5.2014, p.1
[4]               
http://www.eib.org/attachments/country/eib_rem_annual_report_2013_en.pdf
[5]               See Report from the Commission to the European
Parliament and the Council on the Guarantee Fund and its management in 2013 -
COM(2014) 463 final of 16.7.2014 and its SWD (2014) 241 final.
[6] See Commission's SWD – COM(2012) 357 final
According to Decision
No 1080/2011/EU of 25 October 2011, the Commission shall present to the
European Parliament and the Council a final report on the application of this
Decision. It covers the EIB financing operations signed during the period covered
by the Decision[1]
from 2007 to 30 June 2014 following the extension by six months of the
Decision. This report complements the analysis of the annual report for 2013 on
EIB external activity with EU budgetary guarantee and takes into account the entire
effectiveness period, including the 6 months extension in 2014.
In the Decision
the maximum ceiling of the EIB financing operations under the EU guarantee (EUR
29.5bn) has been broken down in a General Mandate of EUR 27.5bn and a Climate
Change Mandate of EUR 2bn. The General Mandate has been broken down into
regional ceilings and sub-ceilings. 

 External
     Mandate utilisation

The final
utilisation of the Mandate as at 30 June 2014 is 99 % overall (98 % for the
part of the Climate Change Mandate), with small regional differences as shown
in the following table (figures in EUR m). Political events forced the EIB to
postpone three operations in Ukraine and Russia which would otherwise have been
concluded prior to end June. Ultimately, due to these unforeseen circumstances
the amount re-allocated during the last 6 months to the Eastern Neighbourhood
could only be partially used (EUR 82m out of EUR 200m). Events in Thailand had a similar effect on one operation. 
Table 1: External Mandate
utilisation 2007-2014 (up to 30/06/2014)

 Sub-sovereign
     operations under the Mandate

The sub-sovereign
window has proven most useful and has served the EU’s external policy
objectives well since it enabled the EIB to support a number of highly relevant
projects, notably SME support, development of municipal infrastructure, social
housing and climate action. The EUR 2.6 bn ceiling for sub-sovereign operations
under the EU Comprehensive guarantee was exhausted at the end of June 2014. 27
operations were signed in 9 countries. 

 Loan
     disbursements to projects supported by the Mandate

At the end of
June 2014, EUR 14.4bn, corresponding to 50% of net signatures, had been drawn
by borrowers for investment projects supported under the Mandate. Taking into
account that part of the lending activities were concluded only recently and
the usually long implementation time of projects, this disbursement rate is
expected to ramp up progressively over the coming years.
    Table 2: Cumulative net
signatures and disbursements under the Mandate as at end June 2014

 EIB
     financing overall – under Mandate and at the EIB's full own risk 

Overall, in the
2007-06/2014 period, EIB signed EUR 47.2bn financing operations in the regions
covered by the Mandate of which 64% (30.4bn gross signatures) with EU guarantee,
the remainder being under lending facilities at EIB’s full own risk. The EU Comprehensive
guarantee covers EUR 22.7bn of loans with sovereign or sub-sovereign
counterparts while the Political Risk guarantee covers EUR 7.7bn lending to the
private sector. 
Table 3: EIB Financing
Operations in the geographical areas of the Mandate by nature of guarantee
cover
During the
Mandate period, EIB signed loans in 46 countries covered by the Decision. In 40
countries, financing was provided under Mandate with EU guarantee, and in 26
countries under EIB’s own-risk facilities. All except three beneficiary
countries (Croatia, Israel and Russia[2])
are developing countries according to the OECD list of ODA recipients. 25% of
EIB financing volume was signed in lower middle income (17 beneficiary
countries), low income (Tajikistan) or least developed countries (Bangladesh and Nepal). 
Support to the
development of infrastructure forms the strongest line of activities,
especially in the energy and transport sectors which together represent around
half (52%) of the signed volume under the Mandate. Private enterprise
development, primarily through credit lines to intermediary banks, comes second
involving 47% of lending under EIB’s own risk and 20% of signatures under the
Mandate. Financing to improve water and sewerage systems as well as investments
in health and education were financed almost exclusively under the Mandate. 

 Contribution
     of overall lending to EU policy objectives

Since 2007, EIB
concluded 437 operations of which 271 under the Mandate, 132 under own-risk facilities
and 34 risk capital operations from third party resources. The following chart
shows the contribution of all these operations to the Mandate objectives in
terms of volume and proportion of operations signed in 2007-06/2014.
Chart
1: Cumulative contribution to Mandate objectives[3]
During the
Mandate, 108 projects with substantial climate components were financed.
Climate financing reached EUR 12bn, representing 25% of the total volume signed
on EIB own resources (excluding operations from third party resources). The
proportion for the Mandate alone is 26 %. 
Table 4: Climate
Action in 2007 – 06/2014 in the regions covered by the Mandate

 Co-financing
     with other IFIs and loan-grant blending

Over the entire
Mandate period, 58% of the EIB’s financing volume under the Mandate was
co-financed with other IFIs.
Table 5: EIB financing
operations blended with EU grant resources or co-financed with other IFIs
27% of the loan
volume under Mandate was associated with grants, essentially in the form of investment
subsidies or technical assistance. In terms of EU budget allocations, WBIF and
NIF received the largest contributions over the period 2007-2013, respectively
€ 229 million and € 223 million. In that period, LAIF received € 25 million and
AIF € 5.7 million and IFCA € 4.3 million. Loan-grant blending took place in
more than half (22) of the 40 countries where the EIB provided financing under
the Mandate.
[1] Implementation of the Mandate started on 1 August 2007
(following the signature of the EU Guarantee Agreement) and was extended until
30 June 2014.
[2] Signing of further potential operations in Russia will be subject to the relevant EU sanctions.
[3] A single project may contribute to more than one
mandate objective.