EIB EU support to ASEAN

Report
EIB operations in
Asia
ASEAN – EU Connectivity Dialogue
Luxembourg, 25th February 2014
European Investment Bank
EIB LENDING IN ASIA AND LATIN AMERICA (ALA)
A bit of History …
Operations in ALA started in 1993
Until 2006 the remit was to support EU presence through loans to:
- Subsidiaries of EU companies
- EU/ALA joint ventures
- Transfer of EU technology
EIB provided long-term financing and political risk guarantee (Risk-Sharing)
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EU BENEFICIARIES OF EIB LENDING IN ALA
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EIB LENDING IN ALA
Evolving objectives …
Since 2007:
• Support of EU presence
• Environmental sustainability
From 2011:
• Environmental sustainability
• Social and economic infrastructure
• Local private sector
EU Support no longer a sufficient criteria but a desirable side effect
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EIB LENDING IN ASIA
Asian Countries eligible for EIB financing under the ALA Mandate
22 Eligible countries in Asia
Framework Agreements signed with 14 Asian countries.
Afghanistan*, Bangladesh, Bhutan*, Brunei*, Cambodia*, China (including Hong Kong
and Macao Special Administrative Regions), India, Indonesia, Laos, Malaysia*, Maldives,
Mongolia, Nepal, Pakistan, the Philippines, Singapore*, South Korea*, Sri Lanka,
Taiwan*, Thailand, Vietnam, Yemen.
* No Framework Agreement signed
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MAP OF ELIGIBLE COUNTRIES
14 Asian countries with Framework Agreement
8 Asian countries without Framework Agreement
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EIB LENDING IN ASIA
As of 01.01.2014, the Bank has lent:
 EUR 5.2 billion via 61 loans in 12 Asian countries
 33% to Private and 67% to Public Sector
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EIB LENDING IN ASIA
Country distribution
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EIB LENDING IN ALA
Breakdown by Activity
Energy
32%
Global Loans
9%
Water, sewerage
4%
Industry
17%
Agriculture,
Forestry and
Fishing
5%
Services
0.29%
Transports
19%
Telecommunication
14%
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EIB LENDING IN ASIA IN 2013
In the Year 2013, the Bank has*:
•
Signed EUR 515.8m
– Nepal Tanahu Hydropower project (EUR 53.8m)
– Exim Bank of India Climate Change FL (EUR 150m)
– Bangladesh Power Energy Efficiency (EUR 82m)
– Sri Lanka SME and Green Energy FL (EUR 90m)
– Srei Climate Change FL (EUR 40m)
– Pakistan Keyal Khwar Hydropower Plant (EUR 100m)
•
Approved by CA EUR 350m
– Dhaka Environmentally Sustainable Water Supply (EUR 100m)
– Ireda Renewable Energy and Energy Efficiency FL (EUR 200m)
– Ulaanbaatar Water (EUR 50m)
* Allocations under already signed framework loans not shown above
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EIB LENDING IN ASIA: A LUCRATIVE ACTIVITY
Lending in ASIA has proved lucrative:
•
For the EIB
– Very high IRRI
– Positive contribution to the Bank’s overheads
– Low capital consumption
•
For EU Companies
– Long term funding at AAA conditions
– Free political risk guarantee
•
For the ASIA countries
– Employment creation
– Transfer of technology
– Foreign exchange income
– Fiscal inflows
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RELEVANCE OF ASIA FOR THE EIB CLIMATE CHANGE ACTION
• By 2030 ASIA will emit more than half of the world’s GHG emissions
• ASIA includes the most vulnerable areas and the countries with
hugest renewable energy and carbon credit potential
• The unit cost of reducing GHG emissions in ASIA is much lower than
in Europe
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