Financing Education Projects in Western Balkans: EIB's Impact

1. EIB - Education Projects Projects Directorate, Industry and Services Eugenia Kazamaki Ottersten, VET Reforms in the Western Balkans: How to Finance and Implement March 11, 2004, Thessaloniki

2. EIB Overview of Presentation • EIB in Brief • Human Capital – Innovation 2000/2010 Initiative • Example of Project Life Cycle Approach • Can EIB Make a Difference?

3. EIB in Brief European Investment Bank • Financing Institution of the EU • Created in 1958 • Owned by EU Member States • Further Political Objectives of EU • Long Term Financing at “Attractive” Conditions

4. EIB in Brief Policy Driven Bank - Strategic Goals • Regional Development • Implementation of Innovation 2010 Initiative • Environment Protection and Sustainable Development • Preparation of Accession Countries • Support of EU Development and Cooperation Policy

5. Rationale for Education and VET • EU Policies - Enhancement of Education and Skills - National/Local Needs • Economic and Social Cohesion, Regional Development • European Competitiveness and Growth

6. EIB Human Capital Mandate: Education and Health • Amsterdam Treaty 1997 • Lisbon EU-Summit 2000 - Innovation 2000 Initiative (i2i) - i2010i

7. EIB in Brief Innovation 2000 Initiative • Lisbon 2000-Summit – Contribution to the creation of a knowledge based innovation driven society through: R&D Information and Communications Technology Networks (ICT) Human Capital Formation (LLL) Diffusion of Innovation SMEs and Venture Capital

8. EIB in Brief Innovation 2010 Initiative • Pan European Approach – EU 15 and extending to new member and candidate countries and Western Balkans • Integrated Approach – Knowledge, Innovation and Competitiveness favouring « Knowledge Net » Education and Training R&D (universities, research organisations, industry, specialized intermediaries, national/regional support systems, networks and partners) ICT – including e-services

9. How is EIB involved? EIB in Brief Mechanisms EIB Lending Schemes • Direct Loan (for private and public) • Grouped Loans - Framework Loan (for midsize companies and in support of structural funds) • Global Loan (small projects and SMEs) • Loans to Consortia / SPV (for Public Private Partnership projects) EIF • Venture Capital (Fund of Funds) • Guarantees for SME Portfolios

10. EIB in Brief Human Capital Lending Activities Volume • Approvals in excess of 10% of Bank’s Turnover Geographical Coverage • EU 15, New Member and Candidate Countries, Third Country Support to Euro Mediterranean Partnership Region, the African, Caribbean and Pacific States, South Africa and Western Balkans Lifelong Learning Enhancement • From pre-school, educational institutions, work place training through community learning

11. EIB in VET Employment – Employability

12. EIB in VET Type of Eligible Activities Traditional Infrastructure/Laboratories/Libraries/Student Housing Information and Communication Tools ICT (Hardware/Software/Training), Bandwidth to Support Networks/e-learning/e-services Training Vocational/Firm training/Training Centres/Transfer of Knowledge Activities (incubator activities/science parks) Support Management Systems and Services Technical Assistance/Implementation Units/Training Activities/Student Loan Frameworks

13. EIB in VET • Project Cycle – Promoter’s Request • EIB Eligibility • Banking Criteria – Staff Teams Evaluation • Economic, Financial, Technical, Environmental • Management Committee • Board of Directors • Contract Signature • Monitoring

14. Project Upstream Approach • Acquiring Knowledge of the Sector • Establishing Networks/Contact with Commission/Ministries of Education / VET schools • Project Selection/Project Definition • Investment Costs/Profitability Analysis • Structure (Legal Entity and Borrowing) • Management of Operation/Monitoring • Sharing Experience (Technology Transfer, PPPs) EIB in VET

15. Education Example of Education Project Lending Department/Projects Directorate Identification of Sector and Sector Need • Pre- Appraisal Meetings with - Ministry of Education, Municipalities - EAR - WB - ETF • Development of project – Technical Assistance • Appraisal - Approval • Monitoring

16. EIB in VET In Summary : Project under Development • Project Definition and Selection Criteria of Schools to be confirmed • Financial, Economic, Technical (including procurement) and Environmental Due Diligence • Appraisal Report • Approval from the Management Committee and Board • Negotiation and Signature of Contract • Project Implementation • Monitoring Requirements

17. EIB FINANCING Can EIB Make a Difference? • Supports Comprehensive Investments • Encourages Courses/Training Programmes and Investment in Content/Tools for Educational Purpose • Connects Schools • Spurs Training through Life • Spurs Social Cohesion and Facilitates Access • Offers Students up to Date Facilities and Tools • Creates Leverage and Catalytic Effects • Encourages Transfer of Knowledge

18. Thank you EIB FINANCING • European Investment Bank • www.eib.org • info@eib.org • European Investment Fund • www.eif.org • info@eif.org