EFSI activity under the IIW by the end of 2017
Between the start of implementation in 2015 and the end of 2017, the EIB approved 358[1] projects for EUR 39.2 billion, out of which 278 projects signed for EUR 27.4 billion of EFSI-backed financing under the IIW. The related investment to be mobilised[2] is estimated to be EUR 165.3 billion for approvals and EUR 131.1 billion for signatures. These projects collectively contributed to EFSI objectives as follow:
Overview of EFSI operations signed and not cancelled between 2015 and 31 December 2017 by EFSI objective[3] (EUR billion)
[1]Approved and not cancelled operations as of 31 December 2017. The total number of approved operations is 362 amounting to EUR 39.3 billion.
[2]Unlocked investment in terms of eligible investment mobilised as per the EFSI regulation.
[3]EFSI objectives listed according to the eligibilities defined in the EFSI regulation.
[4]EFSI-eligible investment mobilised has been split proportionally for operations contributing to several objectives.
EFSI operations will have both temporary and permanent employment effects. Temporary employment is associated with the implementation phase of projects and is measured in persons over the years of project’s implementation/construction. EFSI-backed operations signed by the end of 2017 will provide 570 000 person-years of employment across the EU Member States.
The permanent employment impact is observed during the operational phase of EFSI projects. The operations signed over the period 2015-2017 are expected to support the creation of some 115 000 full-time equivalent permanent jobs. There should also be significant indirect or induced employment. For example, a project to develop new transport infrastructure such as rail links will almost certainly mean the creation of new jobs in the local economy because firms are able to trade more cost-effectively with key markets elsewhere. Although they are more difficult to measure, it is the longer-term direct and indirect or induced employment effects arising from EFSI-backed operations that are likely to be the most significant.
The Bank’s operations involving financing for SMEs and mid-caps are likely to sustain a further 2 million jobs.
Research, development and innovation
EFSI-backed loans totalling EUR 5.8 billion in RDI will unlock EUR 20.4 billion of investment for the development of new technologies that are needed to promote Europe’s long-term industrial competitiveness. The EIB’s loans under the EFSI objective of promoting RDI have provided direct finance to some 114 private sector companies, potentially generating over EUR 79 billion of annual sales resulting from the project.
The following case studies shed more light on the EIB’s EFSI-backed operations under the European Growth Finance Facility (EGFF):
- Skeleton is a company which is developing projects in the field of electric energy storage systems based on supercapacitors
- Mermec is an innovative mid-cap company in the field of rail diagnostics and signalling systems which is aiming to strengthen its competitive market position.
Development and deployment of information and communication technologies
The total amount signed by end-2017 under the EFSI objective development and deployment of information and communication technologies was EUR 2.1 billion with an overall EUR 8.7 billion of investment mobilised. The projects supported included schemes to help develop broadband networks in all 28 Member States. Some of the schemes, such as the Connecting Europe Broadband Fund (CEBF), concern the investment in a broadband infrastructure fund, which supports to a large extent greenfield broadband projects that are mostly located in less densely populated areas, are smaller in size and have a high risk. As presented in the case study below, the EFSI-backed participation of EUR 100 million in the CEBF fund is expected to mobilise an additional EUR 1.37 billion of investment. As a result of EFSI loans signed cumulatively over the past three years under this objective, over one million new subscriptions are expected to be taken out for mobile data services and two million very high-speed broadband lines activated.
Selection of expected results of EFSI operations signed under the “development and deployment of information and communication technologies” objective by the end of 2017[5]
[5]Based on available information at project appraisal stage. Expected results from cancelled operations have been excluded.
Development of the energy sector in accordance with Energy Union priorities
Investments in the energy sector are vital for the promotion of secure, sustainable and cleaner energy. Over the past three years, EFSI operations totalling EUR 7.6 billion have mobilised some EUR 42.8 billion for building capacity to generate energy from renewable sources, improving energy efficiency and supporting electricity network projects. Also worth noting is the promotion of major cross-border interconnection projects to strengthen energy diversification and security of supply and promote cooperation between EU countries. The Transgaz BRUA gas interconnection between Bulgaria, Romania, Hungary and Austria presented as a case study in the section on competitive and secure energy, is a good illustration of a project allowing better market integration and increased security of supply. The Viotia Wind Parks operation, described in the section on renewable energy and energy efficiency, further demonstrates the type of project which EFSI can facilitate.
EFSI support is expected to give a significant boost to energy and heat generation capacity from renewable sources, facilitating the transport of both and increasing the number of households benefiting from green energy.
Selection of expected results from EFSI projects signed over the period 2015-2017 in relation to the development of the energy sector in accordance with Energy Union priorities[6]
[6]Based on information available at project appraisal stage. Expected results from cancelled operations have been excluded.
[7]Mega Volt Amperes
Development of transport infrastructure, equipment and innovative technologies for transport
Investment in transport infrastructure and the environment is a precondition for Europe’s overall economic competitiveness and growth. Almost EUR 3.8 billion of EFSI-guaranteed loans have been signed over the last three years, unlocking some EUR 15.7 billion to promote mobility transport networks, cleaner fleets, as well as projects to reduce congestion costs and trade bottlenecks. One of the new projects signed in 2017 that highlights EFSI’s contribution in this area is the free-flowing electronic tolling system supporting inter-operability for heavy vehicles on the Slovenian motorways (presented in the section on strategic transport). Riga Transport (see section on sustainable transport) also shows how EFSI’s support is helping to combat pollution. This project consists of the introduction of low-floor, high-volume trams and hydrogen-fuelled buses and trolley buses which will help slow the trend towards private car use and the ensuing traffic congestion.
Selection of expected results from EFSI operations signed over the period 2015-2017 in transport[8]
[8]Based on available information at project appraisal stage. Expected results from cancelled operations have been excluded.
Environment and resource efficiency
The EU’s environmental policy is aimed at greening the European economy, protecting the natural environment, and safeguarding the health and quality of life of European citizens. By the end of 2017, the EIB had signed over 7% of total EFSI lending volume (mobilising EUR 8.7 billion) for projects concerning water supply and sanitation, waste water and solid waste treatment and recycling, as well as to support sustainable urban and rural development. As described in the section on environmental protection, Romania Recycling and Circular Economy illustrates how EFSI can support the transition to a circular economy and the achievement of national recycling targets. In the area of water supply and sanitation, another recent example is the EUR 815 million investment of the AdP group at subsidiary level in the water and wastewater sector across Portugal.
As a result of EFSI operations in this area, over 13 million people will benefit from improved sanitation services, over 33 million people will have access to improved waste treatment and over 17 million will have safe drinking water.
Selection of expected results from EFSI operations contributing to environmental resource efficiency signed for the period 2015 - 2017[9]
[9]Based on information available at project appraisal stage. Expected results from cancelled operations have been excluded.
Financial support through the EIF and the EIB to entities with up to 3 000 employees
By the end of 2017, the EIB had signed 70 operations worth EUR 5.1 billion providing financial support to SMEs and mid-caps and mobilising investment of EUR 29.5 billion. Providing finance to SMEs and mid-caps to enable them grow directly contributes to job and wealth creation. Over two million jobs are expected to be sustained thanks to EFSI operations since 2015. Oliva AD, a Bulgarian operator in the sunflower market, illustrates how EFSI is supporting small companies across the EU.
Expected results from SME and mid-cap operations signed for the period 2015-2017 under EFSI[10]
[10]Expected results from cancelled operations have been excluded.
2 million jobs sustained
Human capital, culture and health
By the end of 2017, the financial support under EFSI had mobilised EUR 5.5 billion for hospitals, various universities and research campuses, employment and different administrative and cultural facilities. For instance, several employment and start-up programmes have been signed, helping to create the well-qualified workforce that is needed by modern economies, as well as opening up employment opportunities for young people. University of Latvia Research and Study Centre and Nova SBE Campus (PT) are two projects that will contribute to the 15 000 additional places to be created, and the modernisation of educational facilities for more than 21 000 students. Numerous important social housing projects have been undertaken in France, Spain, Poland and Portugal. In the Netherlands, EFSI supported the construction of Amphia hospital to provide state-of-the-art medical facilities to replace geographically scattered services and improve patient care for an ageing population.
Selection of expected results from EFSI projects signed over the period 2015-2017 contributing to human capital, culture and health[11]
[11]Based on information available at project appraisal stage.