A multilateral development bank A multilateral development bank with a social vocationwith a social vocation

The oldest pan-European supranational The oldest pan-European supranational financial institution set up in 1956 by 8 financial institution set up in 1956 by 8 member countries of the Council of member countries of the Council of EuropeEurope

40 Member States40 Member StatesAll are members of the Council of EuropeAll are members of the Council of Europe

21 Central, Eastern and South Eastern European 21 Central, Eastern and South Eastern European countries, forming the Bank’s target countries, are countries, forming the Bank’s target countries, are listed among the Member Stateslisted among the Member States

((Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Malta, Moldova, Republic, Estonia, Georgia, Hungary, Latvia, Lithuania, Malta, Moldova, Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia, “the Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia, “the former Yugoslav Republic of Macedonia”, and Turkey).former Yugoslav Republic of Macedonia”, and Turkey).

Non-member StatesNon-member States: Andorra, Armenia, Austria, Azerbaijan, : Andorra, Armenia, Austria, Azerbaijan, Monaco, Russia, Ukraine, United KingdomMonaco, Russia, Ukraine, United Kingdom

Key figuresKey figures

More than € 30 billion in projects financed More than € 30 billion in projects financed since inceptionsince inception

Loans outstanding: € 12 billionLoans outstanding: € 12 billion Total assets: € 26 billionTotal assets: € 26 billion Own funds: € 6.5 billionOwn funds: € 6.5 billion Loans disbursed in 2011: € 1 855 millionLoans disbursed in 2011: € 1 855 million Rating AAA Rating AAA (Moody’s outlook stable, Standard & (Moody’s outlook stable, Standard &

Poor's, outlook negative and Fitch Ratings, rating watch Poor's, outlook negative and Fitch Ratings, rating watch negative)negative)

(figures at Dec. 11)

Loans outstandingLoans outstanding

CEB’s action in support of the CEB’s action in support of the target countriestarget countries

Target group countries:

New EU Member States + non-EU Member States in Eastern and South Eastern Europe

3 s3 sectoral lines of actionectoral lines of action Strengthening social integrationStrengthening social integration

Aid to refugees, migrants and displaced personsAid to refugees, migrants and displaced persons Housing for low-income personsHousing for low-income persons Creation and preservation of viable jobsCreation and preservation of viable jobs Improvement of living conditions in urban and rural areasImprovement of living conditions in urban and rural areas

Managing the environmentManaging the environment Natural or ecological disastersNatural or ecological disasters Protection of the environmentProtection of the environment Protection and rehabilitation of historic and cultural Protection and rehabilitation of historic and cultural

heritageheritage

Supporting public infrastructure with a social vocationSupporting public infrastructure with a social vocation HealthHealth Education and vocational trainingEducation and vocational training Infrastructure of administrative and judicial public servicesInfrastructure of administrative and judicial public services

The CEB and Sports Facilities The CEB and Sports Facilities I.I. The Policy for Loan and Project Financing (Resolution 1522 (2009), Handbook for The Policy for Loan and Project Financing (Resolution 1522 (2009), Handbook for

the preparation and monitoring of projects Chapter I, 1.4) states:the preparation and monitoring of projects Chapter I, 1.4) states:

Chapter 1 – 1.4 Improving living conditions in urban and rural areasChapter 1 – 1.4 Improving living conditions in urban and rural areas

“The CEB finances projects involving the construction or rehabilitation of infrastructure in matters of urban rehabilitation and rural modernisation in favour of public entities at national or local level, such as:

basic educational and medical facilities; socio-cultural or sports centres such as playgrounds, green spaces, exhibition sites,

theatres and libraries;

Chapter 3 – 1.2 Education and vocational trainingChapter 3 – 1.2 Education and vocational training

“The CEB can finance projects involving education and vocational training as well as related infrastructure such as:

construction and/or rehabilitation of school and university establishments, including sports and cultural equipment as well as those pertaining to university halls of residence;

Projects approved for the funding Projects approved for the funding

of Sports Facilitiesof Sports Facilities In 2003, a € 54.4 million loan , for the Government of Romania for the partial financing of the construction of

300 sports’ halls attached to schools throughout Romania.

In 2004, a € 70 million transit loan in favour of Banca Intesa S.p.A (Italy) for the partial financing of a programme of investments in social infrastructure , including sport facilities, in Croatia, the Czech Republic, Hungary and the Slovak Republic.

In 2005, a € 12.4 million loan for the Government of Albania for the partial financing of a ‘Schools Development and Rehabilitation Programme’ in the municipality of Tirana. 7 new schools were constructed and 12 schools were rehabilitated, comprising sports facilities.

In 2007, a € 12.5 million loan for the government of “the former Yugoslav Republic of Macedonia” for the construction of 145 new Physical Education Facilities (PEFs) and the provision of the equipment needed to provide quality Physical Education.

In 2008, a € 100 million loan was approved in favour of Caixa Geral de Depositos SA (Portugal) for the partial financing of a programme of investments in the field of education such as the construction and/or rehabilitation school and university establishments, including sports and cultural equipment and education

In 2010, a € 40 million loan was approved in favour of the Municipality of Nicosia (Cyprus), for the partial financing of sub-project investments for the development, reconstruction and revitalisation of Nicosia’s City Centre, including the construction of a Community Sports Centre.

““Bankable” projectsBankable” projects

Investment project in Member StateInvestment project in Member State Setting clear objectives in eligible field Setting clear objectives in eligible field

e.g. building, refurbishing health infrastructurese.g. building, refurbishing health infrastructures

Establishing total costs and financing planEstablishing total costs and financing plan50 % of total cost must be financed from non-CEB 50 % of total cost must be financed from non-CEB resources resources

Setting up implementation timetableSetting up implementation timetableto determine project and loan durationto determine project and loan duration

Defining framework for project implementationDefining framework for project implementationunit responsible for project implementationunit responsible for project implementation

““Bankable Projects”Bankable Projects”

Financial soundness of borrowerFinancial soundness of borrower ensuring repayment of loanensuring repayment of loan

Typical borrowersTypical borrowers Member StatesMember States Local and regional authoritiesLocal and regional authorities Financial institutions Financial institutions

Other public sector entitiesOther public sector entities With appropriate guaranteesWith appropriate guarantees

Trust AccountsTrust Accounts

According to the provisions for operating the According to the provisions for operating the Selective Trust Account or those governing other Selective Trust Account or those governing other trust accounts, the CEB may grant interest trust accounts, the CEB may grant interest subsidies and donations for the purpose of subsidies and donations for the purpose of financing investment projects or technical financing investment projects or technical assistance activities.assistance activities.

Example: €200 K donation for a project to improveExample: €200 K donation for a project to improve maternal, prenatal and pediatric care in Moldova. maternal, prenatal and pediatric care in Moldova.

Project cycle Project cycle

IdentificationIdentificationAppraisalAppraisal

Approval by the ACApproval by the AC

Negotiation of loan agreementNegotiation of loan agreement

Monitoring & disbursementsMonitoring & disbursements

CompletionCompletion Ex post evaluationEx post evaluation

Project cycleProject cycle Presentation of the project by the Ministry of Presentation of the project by the Ministry of

Foreign Affairs, together with a letter of Foreign Affairs, together with a letter of intentintent The borrower may be assisted by CEB staff in the The borrower may be assisted by CEB staff in the

presentationpresentation

Appraisal:Appraisal: Opinion on social and political eligibility (Secretary Opinion on social and political eligibility (Secretary

General in Strasbourg)General in Strasbourg) Technical and financial appraisal (CEB)Technical and financial appraisal (CEB) Global and final recommendation (CEB)Global and final recommendation (CEB)

Project cycleProject cycle Approval by the Administrative CouncilApproval by the Administrative Council

Monitoring and disbursementsMonitoring and disbursements In accordance with the contracts and the work progressIn accordance with the contracts and the work progress

Completion reportCompletion report Required at the end of the projectRequired at the end of the project

Ex post evaluationEx post evaluation Impact and sustainability of the project in order to assess Impact and sustainability of the project in order to assess

performance and qualityperformance and quality

Loan termsLoan terms RateRate :: fixed or variable, based on CEB’s fixed or variable, based on CEB’s

cost of funds (AAA)+modest cost of funds (AAA)+modest marginmargin

LengthLength :: up to 15 years with a possible up to 15 years with a possible grace periodgrace period

Amount Amount :: up to 50%up to 50%** of total project cost of total project cost CurrencyCurrency :: according to borrower’s needs and according to borrower’s needs and

CEB’s funds availableCEB’s funds available Guarantee:Guarantee: Member State, local authority, first Member State, local authority, first

class financial institutionclass financial institution* Up to 90% in the CEB's target countries

www.coebank.org

Further information: