The European Investment Bank (EIB) signed today the first tranche of EUR 62.5 million of a total EUR 250 million loan to the Portuguese Government, to support the Madeira Regional Government to re-establish lost and damaged infrastructure caused by the flooding of February 2010.
This multi-sector framework loan will contribute to repairing and reconstructing the massive damage to the public infrastructure in the Madeira Island, strengthening its resilience to natural disasters and its adaptation to climate change. The operation will provide the Portuguese authorities with long-term funding at attractive conditions to help financing a huge investment effort to overcome such force majeure circumstances.
The 2010 Madeira Island floods and mudslides were the result of an extreme weather event that affected Madeira Island in Portugal's Autonomous Region of Madeira on 20 February 2010. As a result of the natural disaster, 42 people died and at least 250 were injured and about 650 lost their houses. The city of Funchal and other areas were heavily damaged by landslides. Communications were seriously disrupted across the island.
The EIB loan will contribute to repair and reconstruct fundamental infrastructure in a Convergence, ultra-peripheral territory of the European Union, restoring the conditions for a balanced development of the region, as well as supporting the sustainable economic recovery, employment creation and protection of existing livelihoods.
The EIB loan focuses mainly on small and medium sized investment schemes of less than EUR 50 million distributed throughout most of Madeira’s territory in areas such as hydraulics, roads, bridges, electricity and water supply. The investment programme to be carried out by Madeira’s authorities will also include mechanisms to prevent similar natural disasters in the future by addressing key risks.
Background:
The European Investment Bank is the long-term financing institution of the European Union (EU), working to further European objectives. Created in 1958, it operates in the EU’s 27 Member States and in over 130 other countries across the world. The Bank’s financing is geared to well-defined European policies. The EIB loans contribute to economic and social cohesion, environmental protection, research and innovation, support for SMEs, the development of trans-European transport and energy networks, and sustainable, competitive energy.