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A multilateral development bank with a social vocation

A multilateral development bank with a social vocation. The oldest pan-European supranational financial institution set up in 1956 by 8 member countries of the Council of Europe. 40 Member States All are members of the Council of Europe

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A multilateral development bank with a social vocation

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  1. A multilateral development bank with a social vocation • The oldest pan-European supranational financial institution set up in 1956 by 8 member countries of the Council of Europe

  2. 40 Member States All are members of the Council of Europe • 21 Central, Eastern and South Eastern European countries, forming the Bank’s target countries, are listed among the Member States (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Malta, Moldova, Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia, “the former Yugoslav Republic of Macedonia”, and Turkey). • Non-member States: Andorra, Armenia, Austria, Azerbaijan, Monaco, Russia, Ukraine, United Kingdom

  3. Key figures (figures at Dec. 11) More than € 30 billion in projects financed since inception Loans outstanding: € 12 billion Total assets: € 26 billion Own funds: € 6.5 billion Loans disbursed in 2011: € 1 855 million Rating AAA (Moody’s outlook stable, Standard & Poor's, outlook negative and Fitch Ratings, rating watch negative)

  4. Loans outstanding

  5. CEB’s action in support of the target countries Target group countries: New EU Member States + non-EU Member States in Eastern and South Eastern Europe

  6. 3 sectoral lines of action • Strengthening social integration • Aid to refugees, migrants and displaced persons • Housing for low-income persons • Creation and preservation of viable jobs • Improvement of living conditions in urban and rural areas • Managing the environment • Natural or ecological disasters • Protection of the environment • Protection and rehabilitation of historic and cultural heritage • Supporting public infrastructure with a social vocation • Health • Education and vocational training • Infrastructure of administrative and judicial public services

  7. The CEB and Sports Facilities • The Policy for Loan and Project Financing (Resolution 1522 (2009), Handbook for the preparation and monitoring of projects Chapter I, 1.4) states: • Chapter 1 – 1.4 Improving living conditions in urban and rural areas “The CEB finances projects involving the construction or rehabilitation of infrastructure in matters of urban rehabilitation and rural modernisation in favour of public entities at national or local level, such as: • basic educational and medical facilities; • socio-cultural or sports centres such as playgrounds, green spaces, exhibition sites, theatres and libraries; • Chapter 3 – 1.2 Education and vocational training “The CEB can finance projects involving education and vocational training as well as related infrastructure such as: • construction and/or rehabilitation of school and university establishments, including sports and cultural equipment as well as those pertaining to university halls of residence;

  8. Projects approved for the funding of Sports Facilities • In 2003, a € 54.4 million loan , for the Government of Romania for the partial financing of the construction of 300 sports’ halls attached to schools throughout Romania. • In 2004, a € 70 million transit loan in favour of Banca Intesa S.p.A (Italy) for the partial financing of a programme of investments in social infrastructure , including sport facilities, in Croatia, the Czech Republic, Hungary and the Slovak Republic. • In 2005, a € 12.4 million loan for the Government of Albania for the partial financing of a ‘Schools Development and Rehabilitation Programme’ in the municipality of Tirana. 7 new schools were constructed and 12 schools were rehabilitated, comprising sports facilities. • In 2007, a € 12.5 million loan for the government of “the former Yugoslav Republic of Macedonia” for the construction of 145 new Physical Education Facilities (PEFs) and the provision of the equipment needed to provide quality Physical Education. • In 2008, a € 100 million loan was approved in favour of Caixa Geral de Depositos SA (Portugal) for the partial financing of a programme of investments in the field of education such as the construction and/or rehabilitation school and university establishments, including sports and cultural equipment and education • In 2010, a € 40 million loan was approved in favour of the Municipality of Nicosia (Cyprus), for the partial financing of sub-project investments for the development, reconstruction and revitalisation of Nicosia’s City Centre, including the construction of a Community Sports Centre.

  9. “Bankable” projects • Investment project in Member State • Setting clear objectives in eligible field e.g. building, refurbishing health infrastructures • Establishing total costs and financing plan 50 % of total cost must be financed from non-CEB resources • Setting up implementation timetable to determine project and loan duration • Defining framework for project implementation unit responsible for project implementation

  10. “Bankable Projects” • Financial soundness of borrower • ensuring repayment of loan • Typical borrowers • Member States • Local and regional authorities • Financial institutions • Other public sector entities • With appropriate guarantees

  11. Trust Accounts According to the provisions for operating the Selective Trust Account or those governing other trust accounts, the CEB may grant interest subsidies and donations for the purpose of financing investment projects or technical assistance activities. Example: €200 K donation for a project to improve maternal, prenatal and pediatric care in Moldova.

  12. Project cycle Ex post evaluation Completion Monitoring & disbursements Negotiation of loan agreement Approval by the AC Identification Appraisal

  13. Project cycle • Presentation of the project by the Ministry of Foreign Affairs, together with a letter of intent • The borrower may be assisted by CEB staff in the presentation • Appraisal: • Opinion on social and political eligibility (Secretary General in Strasbourg) • Technical and financial appraisal (CEB) • Global and final recommendation (CEB)

  14. Project cycle • Approval by the Administrative Council • Monitoring and disbursements • In accordance with the contracts and the work progress • Completion report • Required at the end of the project • Ex post evaluation • Impact and sustainability of the project in order to assess performance and quality

  15. Loan terms • Rate : fixed or variable, based on CEB’s cost of funds (AAA)+modest margin • Length : up to 15 years with a possible grace period • Amount : up to 50%* of total project cost • Currency : according to borrower’s needs and CEB’s funds available • Guarantee: Member State, local authority, first class financial institution * Up to 90% in the CEB's target countries

  16. Further information: www.coebank.org

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