II. EIB LOANS
2.1. OVERVIEW
The Structural Funds programs described above offer non-reimbursable grants for projects. But loans from the European Investment Bank (EIB) represent another financing possibility for the private sector. The U.S. does not hold a share in the EIB, nor does it sit on its board. The EIB is one of the world's largest multilateral development bank, and acts as the European Union financial arm. In 2004, the EIB approved loans totalling € 45.7 billion. The EBRD in comparison totaled € 4.1 billion in 2004, and the World Bank € 14.3 billion in 2003. The EIB Subscribed Capital in 2004 was € 163 billion.
The EIB supports the same "key European policy objectives" as those supported by the Structural Funds. The EIB finances projects from both the public and the private sectors. The Bank offers preferential rates and longer payback periods than most commercial banks can offer. As a general rule, projects should contribute to growth in the less developed regions, with an emphasis on innovation and job creation. The EIB is well known for its expertise in project identification and appraisal by teams of engineers, economists and financial analysts. EIB staff prepares project monitoring, completion and post-completion evaluation reports. The EIB is ready to finance projects to be developed in Europe and elsewhere: the EIB has stated its willingness to examine projects sponsored by U.S.-based firms. More information can be found on the EIB Website.
PROJECT FINANCING
A promoter seeking to obtain a loan can contact the Bank by telephone or in writing and submit his project, which will be vetted for eligibility, i.e. for compliance with the EU objectives that the EIB serves to promote. Within the EU, projects considered for EIB financing must contribute toward one or more of the following key objectives: fostering the economic development of the less favored regions, improving the European transport and telecommunications infrastructure, protecting the environment, promoting renewable energy, enhancing international competitiveness of industry, extending and modernizing infrastructure in the health and education sectors.
Outside the EU territory, the EIB supports the EU's cooperation and development aid policies in over 120 countries in Africa, the Caribbean & the Pacific, the Mediterranean area, Central and Eastern Europe, Asia and Latin America.
Projects should be in the range of €20 to 25 million.
Review the EIB Website. for further information.
2.3. TENDERING OF EIB-FINANCED PROJECTS
The commercial service at the U.S. Mission to the European Union has developed a database containing all tenders of European public procurement projects sponsored by the EIB in non-EU countries. It is important to note that the EIB does not act as a contracting authority, unlike other multinational development banks. For operations both within and outside the European Union, promoters are fully responsible for all aspects of the procurement process, from drafting the tender specifications to award of contracts. The rights and obligations of the promoters vis-à-vis the tenderers for goods, works or services to be furnished for a project are governed by the tendering documents published by the borrower.
For operations within the EU, borrowers must adhere to EU procurement guidelines when tendering projects. The EIB requires its borrowers to follow international competitive bidding procedures in contracting out the procurement of goods, works or supplies. For operations outside the EU, and in the case of financing operations from the bank's own resources, call for tenders are open to nationals of all countries. The EIB encourages promoters (both public and private) to apply international competitive bidding procedures.
Go directly to our database, then click on link to EIB tenders.