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Regional Knowledge Center

The European Investment Bank (EIB)

The European Investment Bank (EIB) is the European Union's bank and the world’s largest multilateral borrower and lender providing finance and expertise for sustainable investment projects that contribute to EU policy objectives. 

Background

The European Investment Bank (EIB) is non-profit long-term lending banking institution established in 1958 under the Treaty of Rome. The EIB is a publicly owned international financial institution and its shareholders are the 28 EU member states. Thus, the member states set the bank's broad policy goals and oversee the two independent decision-making bodies – the board of governors and the board of directors.

It is the world’s largest international public lending institution.

Geographical scope

Although about 90 percent of projects financed by the EIB are based in EU member countries, the bank does fund projects in about 150 other countries – non-EU South-Eastern European countries, Mediterranean partner countries, ACP countries, Asian and Latin American countries, the members of the Eastern Partnership and Russia. According to the EIB, it works in these countries to implement the financial pillar of the Union’s external cooperation and development policies by encouraging private sector development, infrastructure development, security of energy supply and environmental sustainability.

In Central Asia, The EIB is currently active in 4 countries: Tajikistan, Kazakhstan, Kyrgyzstan and most recently Uzbekistan. The loans provided by the EIB come from the lending window for Asia provided under the mandate from the Council and European Parliament for the period 2014-2020, out of which 182 M€ has been made available for use in Central Asia.

Implementation and priority fields

Overall the lending strategy outside the EU follows the EIB’s priority objectives for lending activity:

  • Private sector development
  • Financial sector development
  • Infrastructure development
  • Security of energy supply
  • Environmental sustainability
  • EU presence.

In Central Asia within the framework of the EIB External Lending Mandate, priority is given to projects which contribute to improving energy supplies and environmental protection. Borrowing counterparts will include both public sector entities and private sector companies.

Eligible projects in the energy sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for:

  1. Gas and oil networks leading to improved performance and increased safety and security of gas supplies to the EU
  2. Oil and gas extraction facilities, where EIB funding will focus on equipment and infrastructure for environmental protection purposes.
  3. Electricity generation plants and electricity transmission lines, providing substantial energy saving and environmental protection benefits.

Eligible projects in the environmental sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for energy saving as well as schemes leading to a significant improvement of the environment

Funding type

EIB provides 3 main funding types:

  • Lending: The vast majority of EIB financing is through loans, but EIB also offers guarantees, microfinance, equity investment, etc.
  • Blending: EIB support unlocks financing from other sources, particularly from the EU budget. This is blended with loans to form a full financing package.
  • Advising: Lack of finance is often only one barrier to investment. EIB helps with administrative and project management capacity to facilitate investment.

In Central Asia within the framework of the EIB External Lending Mandate, priority is given to projects which contribute to improving energy supplies and environmental protection. Borrowing counterparts will include both public sector entities and private sector companies.

Eligible projects in the energy sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for:

  1. Gas and oil networks leading to improved performance and increased safety and security of gas supplies to the EU
  2. Oil and gas extraction facilities, where EIB funding will focus on equipment and infrastructure for environmental protection purposes.
  3. Electricity generation plants and electricity transmission lines, providing substantial energy saving and environmental protection benefits.

Eligible projects in the environmental sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for energy saving as well as schemes leading to a significant improvement of the environment

In addition, Central Asian countries are eligible under the Bank’s own risk Climate Action & Environment Facility (CAEF) for investment grade projects in renewable energy, energy efficiency, carbon capture, transportation or storage projects aiming specifically to reduce greenhouse gas emissions and projects contributing substantially to security of EU energy supply.

Project cycle

The EIB Project cycle includes 4 main stages:

  1. Applying for a loan
  2. Appraisal
  3. Procurement
  4. Monitoring.

EIB_project cycle

Contact details

European Investment Bank, 98-100, boulevard Konrad Adenauer, L-2950 Luxembourg.
EIB Switchboard: Tel: +352 43 79 1; fax +352 43 77 04
Information desk: Tel: +352 4379-22000; fax +352 4379-62000
http://www.eib.org/infocentre/contact/index.htm

This project is funded by the European Union

And implemented by a consortium led by