Adam McDonaugh European Investment Bank

Adam McDonaughEuropean Investment Bank

Maritime Transport: Scotland’s Sustainable Growth Opportunity

The First MacKay Hannah Scottish Maritime Transport Conference

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FINANCING MARITIME INFRASTRUCTURE

– THE EIB APPROACH

Adam McDonaugh

Head of London Office

European Investment Bank

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The European Investment Bank Group

European Union’s long-term lending bank

Set up in 1958 by the Treaty of Rome.

Shareholders: 27 EU Member States

EIB Group;European Investment Bank – EIB

European Investment Fund - EIF

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EIB financing priorities

Within the European Union:Economic and Social Cohesion and Convergence; Implementation of the Knowledge Economy; Development of Trans-European Networks (TENs); Protecting and Improving the Environment and

Promoting Sustainable Communities; Support for SMEs; and Supporting Sustainable, Competitive and Secure

Energy.

Outside the EU: EU mandate for partner countries

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Changing emphasis

Significant shift in direction in last two years:

Climate change – new emissions policies EIB Reviews its energy and transport policies

Financial crisis - EU Economic Recovery Plan Stepped up lending European Clean Transport Facility

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The new EIB transport lending policy

Efficient use of all transport modes

Tightened selection criteria for road and civil aviation sector projects (strong RDI, support to CO2 emissions reduction goal)

Increased support for maritime transport, inland waterways, and intermodal terminals and urban transport

In 2008, rail, urban and maritime transport projects accounted for about half of EIB lending to the transport sector, including about EUR 1 billion for maritime transport

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EIB approach to financing ports

Existing ports - common user infrastructure rehabilitation/expansion (breakwater, access channel, maritime locks, navigation aids, quays)

Existing ports - new terminalsFor container terminals: traffic commitment of shipping lines (transhipment hubs in particular)

New portsEconomic justificationEnvironmental impact

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Improvement of hinterland transport connections

Particularly rail, inland waterways, intermodal terminals

Motorways of the Sea (MOS)

Both vessels and port facilities on the MOS network

New vessels

Vessels to be operated on eligible routes

EIB support for other maritime projects

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EIB financing

Senior debt (lending to public port authority, private terminal operator, project finance vehicle)

Equity (through participation in port sector investment funds)

Risk sharing facilities (limited)

Public and private borrowers

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Some EIB financed port projects

Projects in the EU Jade Weser Container Terminal (infrastructure for a new deepwater

container terminal) Rotterdam Port – Maasvlakte 2 (infrastructure for major extension) Puerto de Algeciras – Isla Verde (equipment for container terminal) Fos 2XL, Marseilles, France (infrastructure for two container

terminals) Porti Italia (modernisation and upgrading of Italian ports) Pireaus Port II (container terminal expansion) Purchase of Ro-ro vessel (Baltic Sea and Western Europe

Motorways of the Sea) Purchase of Ro-pax vessels (Spain-Italy & Italy-Greece Motorways

of the Sea)Projects outside the EU Beria, Mozambique (improvement to access channel) Panama Canal (widening) Tangier Second Container Terminal, Morocco (superstructure and

equipment)

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For more information…

http://www.eib.org/

EIB London Office

Royal Exchange Buildings

EC3 V 3LF

Tel: +020 7375 9660

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In 2008, EIB lending to maritime transport projects in the EU amounted to about EUR 900 m, including about EUR 180 m for shipping

MARITIME TRANSPORT - EIB LENDING IN THE EU

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2002 2003 2004 2005 2006 2007 2008

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Total lending: EUR 57.6bn

European Union: EUR 51.5bn

Partner countries: EUR 6.1bn

The European Investment Bank (EIB)2008 Key Figures