Roth: EIB to Give More Loans to New EU Members

Luxembourg, 7 May

The European Investment Bank (EIB) anticipates the level of its lending in the new EU member states to increase. The reason is that development needs in these countries are much higher than in the EU15, which has benefited from almost 90% of all EIB lending in the EU25, Wolfgang Roth, EIB vice-president, explained in an interview with STA.

"For example in 2004 the EIB invested EUR 39.7bn in the EU25, however, in the new member states EIB lending amounted to EUR 3.8bn," Roth wrote in his answers to STA questions on the first anniversary of the EU's enlargement.
"If we consider that in the new member states the need to develop communication infrastructure, improve the environment and modernise economies is much higher than in the EU15, we anticipate an increasing trend of EIB lending in these countries."
Talks on new projects are under way with Slovenia, confirmed Roth, one of the eight EIB vice-presidents, who is also responsible for Slovenia. The bank is currently considering backing the construction of a new motorway connection between Maribor and the Hungarian border.
The new motorway sections are estimated to be 67 km long and are divided in a western section Maribor - Vucja Vas (36.2 km) and an eastern section Beltinci - Pince (30.8 km). "The bank currently considers co-financing the western section. In this case the EIB financing is proposed to reach up to EUR 250m," Rith said.
The bank has approved an environmental sector loan of EUR 40m to co-finance projects in water supply, wastewater collection, wastewater treatment and solid waste management in smaller municipalities.
It also appraises a project of the construction of two run-the-river hydro power plants of 42.5 MW and 39.5 MW on the river Sava in the east of Slovenia, and a 178 MW pump storage power plant at the Soca river in the west. "EIB financing is proposed to reach up to EUR 130m out of the total costs of EUR 260m," according to Roth.
Total EIB lending in Slovenia since 1991 amounts to EUR 1,514m. To date, EUR 1,245m has been disbursed and EUR 500m has already been repaid, Roth said. The bulk of lending has focused on the transport infrastructure sector (58%), while only some 2% has gone to the environment and water sectors.
The most important partner is the government. Out of the total of EUR 1.514bn as on 31 January 2005, the government and its ministries hired EUR 904m; of this amount, guarantees have been provided for EUR 794m, according to Roth.
Roth specified that the EIB provided loans for the construction of the new motorways between Blagovica and Vransko (EUR 175m) and between Kozina and Srmin (EUR 160m) and rehabilitation of the main east-west railway lines (EUR 60m).
According to EIB official, 40% of EIB loans targeted projects in the private sector: 25% in telecommunications, with the most important projects focusing on the upgrading and extension of telecoms networks.
Approximately 15% of EIB loans are being implemented by EIB partner banks via the EIB global loans that are used mostly for financing smaller projects in the small and medium-sized sector with total costs from EUR 40,000 up to EUR 25m.
Roth underscored that EIB lending as well as spending of EIB funds in Slovenia had been fully in accordance with EIB priorities.
The bank's main objective in the case of Slovenia and other newcomers is to back their deeper integration into the EU, while transport projects, especially development of transport corridors, as well as projects related to the Lisbon Strategy represent its main priorities.
"However, EIB financing is project linked and it depends on the quality of the individual projects submitted for financing," Roth underscored in his written answers to STA questions.

Roth: EIB to Give More Loans to New EU Members

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