EIB and Andalusia government sign agreement to manage fund of up to EUR 250 million

The European Investment Bank (EIB) and the Government of Andalusia are working together to foster urban development in the region. The EU bank will manage a fund of up to EUR 250 million designed to promote sustainable investment in public and urban infrastructure in Andalusia.

The fund will be jointly financed by the ERDF (European Regional Development Fund Andalusia 2014-2020) and the regional government. The different investments will also be financed by the private sector.

Signed in Seville by EIB Vice-President Emma Navarro and the Economic, Finance and Public Administration Minister of the Government of Andalusia, Antonio Ramírez de Arellano, the agreement provides for the EU bank to manage a fund designed to finance the projects of regional and local authorities, and especially public-private partnerships, social housing organisations and private sector promoters. To be eligible for funding, investments will have to be aimed at rehabilitating degraded spaces, supporting the social and economic development of less-favored communities, improving energy efficiency in public buildings, promoting urban innovation or fostering cultural heritage.

Under this agreement, the EIB will bring its know-how and international experience in the management of financial resources, ensuring that the intermediaries selected to implement the sustainable urban development investments in Andalusia provide long-term funding on favorable terms.

EUR 220 million to foster growth and employment

The EIB also granted the regional government a EUR 220 million loan to support investment in various sectors of the Andalusian economy. This is the second instalment of a EUR 725 million loan provided by the EIB to finance, along with funding from the ERDF and the European Social Fund, Andalusia’s 2014-2020 regional operational programme. The EIB money will be used to support small businesses and finance sustainable transport infrastructure as well as investment in innovation, education and technological development.

At the signing ceremony for these two agreements in Seville, EIB Vice-President Emma Navarro stressed “The EIB’s positive impact on the economy of Andalusia, a region in which the EU bank has been working for over 30 years, financing investment that boosts economic growth and employment. The agreements that we are signing today provide a further good example of the EIB’s commitment to promoting social and regional cohesion through projects and initiatives that benefit the people of Andalusia.”

Original source: EIB
Published on 9 July 2018