European Investment Bank as a supporter of European PPPs

Abstract

The aim of a paper is to examine EIB activities in financing, advising and promotion of PPPs in EU member countries. Research is based on data gained from published by EIB materials and statistics. PPPs are much more complicated in legal, social, political, economical sides than projects conducted traditionally by public sector. Moreover high level of capital intensity of infrastructure assets is a stumbling block to gather the whole amounts to cover investments, mainly in form of loans. Banks become one of the main partners, and at the same time decision makers in PPP projects. A high level of risks in PPP projects combined with high level of capital intensity eliminates small, local banks leaving in the field big commercial banks and multilateral institutions, like as World Bank Group, Asian Development Bank, or in Europe European Bank of Reconstruction and Development and European Investment Bank (EIB). EIB is both a bank and a public institution. Together with loans EIB also offers advisory and technical assistance which can help projects to maximise value for money. As a unique financial institution EIB plays a catalytic role in promoting sound and important projects towards EU policy. The main task of EIB is to contribute towards the integration, balanced development and economic and social cohesion of EU Member States. EIB plays very crucial role in PPP development in EU, specially in countries with not very sophisticated financial markets. It seems that EIB is the biggest supplier of funds to finance PPP in European market.