• EIB lending in 2020 amounted to €1.2 billion and EIF equity and guarantee commitments to €180 million

• Some 8 000 businesses benefited from EIB Group operations, supporting approximately 147 000 jobs in the country.

• EIB Group support represented 0.66% of the Czech Republic’s GDP

Last year, the European Investment Bank Group (EIB Group), which consists of the European Investment Bank (EIB) and the European Investment Fund (EIF), provided loans, guarantees and equity commitments worth €1.4 billion in the Czech Republic. The EIB Group maintained the high level of investment reached in 2019.

The EIB signed new loans amounting to €1.2 billion and the EIF committed around €180 million in 11 equity, guarantee and microfinance operations benefiting some 6 870 small businesses. EIF financing supported approximately 55 900 jobs and mobilised total investments of €1.3 billion.

EIB Vice-President Lilyana Pavlova commented: “Despite the economic crisis brought on by the COVID-19 pandemic in 2020, the EIB Group kept a level of investment in the Czech Republic similar to that reached in 2019, which was already exceptional. Together with our Czech counterparts, we provided well-balanced support to the public and the private sector to increase the resilience of the economy and support a just transition. I am very proud that the EIB, as the EU climate bank, provided financial and advisory support to projects that will enhance vital infrastructure, energy efficiency and climate adaptation, and ultimately improve the quality of life of the Czech people.”

“Last year, the European Investment Bank also continued to support a number of important projects in strategic sectors, key to the future of the Czech Republic. And I am very pleased that the Czech private and public sectors have been able to make an active and effective use of this support. Projects delivered through the European Investment Bank in the Czech Republic last year helped around 8 000 small and medium-sized enterprises, thereby supporting more than 147 000 jobs. I very much appreciate this cooperation and I look forward to working together to develop and modernise the Czech economy again this year. Between 1992 and the end of 2020, the EIB supported investments totalling €23.2 billion. That is roughly CZK 600 billion,” said Minister of Finance Alena Schillerová.

EIB Group results in the Czech Republic in 2020

Support for strategic regional infrastructure

In 2020, the EIB provided €122.7 million of loans to the Central Bohemia and Pardubice regions to support key regional infrastructure, healthcare, transport, social care, education, culture and the energy efficiency of public buildings.

EIB investments will help these regions to cope with current and future health, economic and climate challenges. They will help enhance the attractiveness of these areas and offer better economic opportunities and quality of life for Czech people.

Support for climate adaptation and the energy transition

Through a €300 million loan signed in 2020, the EIB will finance a vast set of measures put in place by the Czech Ministry of Agriculture to strengthen the country’s water management services, including flood protection and storm management. This is part of the Bank’s efforts to preserve natural resources and protect the environment for future generations.

The EIB support will help to improve living conditions for some 110 000 people in the Czech Republic. About 25% of the Czech population live in flood-prone areas that face disastrous floods on average every 10-15 years.

The EIB signed a €190 million loan to ČEPS, a.s., the state-owned Czech Transmission System Operator. This investment will help strengthen the country’s electricity transmission infrastructure, improving the reliability and quality of electricity supply, and increasing the integration of renewables in the electricity network.

Support for sustainable transport

In 2020, the EIB provided €223.8 million to upgrade freight and passenger rail transport in the Czech Republic. EIB loans will support the acquisition of 50 electric locomotives and 140 freight intermodal wagons, and the retrofitting of around 310 locomotives with the European Train Control System (ETCS) by CD CARGO, as well as the purchase of 37 new passenger trainsets by the South Moravia region.

These investments will improve the capacity, safety and quality of freight services and passenger rail transport in the Czech Republic, notably through the use of modern control and signalling systems.

By promoting a shift from road to rail transport, these projects will have a positive impact on the environment and support the country’s transition to a low-carbon economy, in line with the objectives of the EIB Climate Bank Roadmap and the Czech Republic’s transport policy.

Support for SMEs and mid-caps during the COVID-19 crisis

In total, EIB Group operations in the Czech Republic in 2020 benefited some 8 000 small and medium-sized enterprises (SMEs) and mid-caps, supporting over 147 000 jobs.

The EIB concluded €356 million worth of intermediated lending with four partner financing institutions (Moneta, CSOB Leasing CZ, Ceska Sporitelna and SGEF CZ), further improving the access of Czech SMEs and municipalities to EIB financing. These operations support investments that will primarily focus on helping Czech companies deal with the consequences of the COVID-19 crisis. Some 1 190 SME and mid-cap projects are estimated to benefit from EIB loans in the Czech Republic, supporting about 91 200 jobs.

The EIF committed a total of €180 million through 11 operations, aimed at raising €1.3 billion. Some 6 870 businesses benefited from EIF operations in the Czech Republic, supporting about 55 900 jobs.

The EIF provided guarantee top-ups under COSME to CMZRB, Moneta Bank and Komercni Banka. The COSME Loan Guarantee Facility (LGF) is a window of the Single EU Debt Financial Instrument, which supports European enterprises’ growth and research and innovation (R&I). The EIF also provided guarantees to CSOB, Komercni Banka and Raiffeisenbank Czech Republic as a response to the COVID-19 crisis.

On the equity side, the EIF increased its stake in the Genesis Growth Equity Fund I and also invested in Enern Tech IV, a venture capital fund focusing mainly on early and early-growth stage ICT companies primarily in the Czech Republic and the broader region.

EIB advisory services in the Czech Republic

The mission of EIB Advisory is to help create and successfully implement sustainable investment projects by providing technical and financial advice to its partners across the project cycle and beyond. Advisory services in the Czech Republic are often delivered by multiple interdisciplinary advisory teams consisting of finance experts, engineers, and public-private partnership (PPP), innovation, climate and other specialists.

EIB advisory services help public and private entities to prepare projects that enable them to tackle some of the key challenges the Czech Republic and some of its neighbours are facing. Such projects support key investment in climate action, energy efficiency, digitalisation, innovation and social infrastructure.

In 2020, EIB advisory services provided:

• Grant support to the Czech-Moravian Guarantee and Development Bank (CMZRB) to help it structure an advisory unit within the organisation. The unit will provide advisory services to Czech project promoters in areas such as transport infrastructure, digital and smart city solutions infrastructure, the circular economy, renewable energy and social infrastructure.

• An assessment of the financing gaps for the agriculture and agri-food sectors in the Czech Republic, aiming to support the Czech European Agricultural Fund for Rural Development (EAFRD) in planning and programming the use of financial instruments for the 2021-2027 period.

• €2.25 million of grants from the EIB’s European Local Energy Assistance (ELENA) to the investment programme of the Czech Ministry of Industry and Trade for a comprehensive energy efficiency renovation of the country’s central government buildings. The renovation will increase operational efficiency, improve energy performance and reduce greenhouse gas emissions.

• Horizontal support in the preparation of projects under the Coal Regions in Transition Initiative in the Czech Republic, as requested by the Czech Ministry for Regional Development. Three Czech regions participated in the initiative – Karlovy Vary, Ústí nad Labem and Moravia-Silesia.

• Support for innovation and R&D project promoters.

EIB Group activity in the Czech Republic in 2020

Background information:

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union (EU) owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals both in Europe and beyond.

The EIB has worked with the Czech Republic since 1992 and invested in infrastructure, small businesses, environment and innovation. Since the start of operations in the Czech Republic, the EIB has provided €22.51 billion of financing to 185 projects.

EIB’s sustainable transport overview

About the European Investment Fund

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance. The EIF designs and develops both venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

European Commission Speech Brussels, 11 Feb 2021 Thank you. Good morning. Let me begin with five key messages emerging from this forecast:
First, the economic situation this winter remains challenging. Since t…

Brussels: Dr. Abdullatif bin Rashid Al-Zayani, Foreign Minister met at the headquarters of the European Parliament, Chair of the Delegation for relations with the Arab Peninsula at the European Parliament, Dr. Hannah Neumann, as part of the Minister’s official visit to Brussels.

Dr. AlZayani praised the evolving close relations existing between the Kingdom of Bahrain and the European Union, and their keenness to enhance joint cooperation in various fields to serve common interests.

He hailed the tangible efforts made by the European Parliament in expanding cooperation with the countries of the GCC as well as exchanging experiences and visits, noting the importance of parliamentary diplomacy in promoting joint cooperation between the two sides to achieve common goals and interests.

Dr. Hannah Neumann commended the distinguished bilateral relations between Bahrain and the EU, pointing out their joint endeavor to develop and strengthen them in various fields, including the parliamentary field.

She noted Bahrain’s role in supporting regional peace and the efforts it is making to enhance security and stability, wishing Bahrain further progress and prosperity.

During the meeting, aspects of enhancing and developing bilateral cooperation between the two sides in various fields were discussed, in addition to a number of issues related to parliamentary affairs.

The meeting was attended by MoFA’s Undersecretary for International Affairs, Dr. Shaikh Abdulla bin Ahmed Al Khalifa, the Ambassador of the Kingdom of Bahrain to the Kingdom of Belgium, the Grand Duchy of Luxembourg and the Kingdom of Denmark, and representative to the European Union and NATO, Dr. Bahia Jawad Al-Jishi, and the Minister’s accompanying delegation.

At the heart of Europe’s recovery plan is the €672.5 billion Recovery and Resilience Facility to help get the economy back on track, made up of €312.5 billion in grants and €360 billion in loans.

The European Parliament has now voted to approve the RRF, confirming the political agreement reached in December 2020. The vote on 10 February paves the way for the RRF to come into force in the second half of February 2021.

To access the money, member states need to prepare national recovery plans showing they will allocate at least 37% of the funds to the transition to a greener economy and at least 20% to initiatives to digitise their economies. The money must be spent on public investments and reforms to strengthen the country’s economy.

Euronews reporter Guiilaume Desjardins went to visit a project to build a green hydrogen biorefinery in Provence in France, hoping to benefit from EU funds.

Green Hydrogen

France has drawn up a €100 billion national recovery plan, with €40 billion expected to come from the EU’s recovery and resilience facility. About a third of this (€30 billion) will be spent on the transition to a greener economy. This would include investments in building renovations, clean transport and decarbonizing industry.

The green hydrogen sector will receive €7 billion: €2 billion from the recovery plan over the next two years, then an additional €5 billion by 2030.

French energy giants Total and Engie have teamed up to launch the Masshylia project in Châteauneuf-les-Martigues in Provence. It would be France’s largest green hydrogen production site, used to make biofuel, a cleaner alternative to diesel.

The current biorefinery uses what is known as ‘grey’ hydrogen, produced using fossil fuels. The plan is to replace it with green hydrogen, produced using solar panels. Total estimates this would reduce their carbon footprint by 15,000 tonnes of CO2.

The project is counting on public funds to kickstart the green hydrogen sector.

According to Jean-Michel Diaz, the Mediterranean regional representative at Total, these funds are essential because “the cost to produce the first units are much higher than they would be if you used an existing industrial facility already running at full scale. So in order to get a final product available, at an acceptable cost to consumers, you need to help at the start”.

Creating new jobs

The Masshylia project would also help the region’s economic recovery.

Between 50,000 and 150,000 direct and indirect jobs would be created, according to Sylvain Brémond, Deputy Director General at Capenergies. He also believes that the financial investment will help the region combat climate change.

Nearby company Helion, a hydrogen battery maker, says that as a related industry it will benefit from the creation of the green hydrogen plant.

“Industrial production goes hand in hand with investment in production tools, testing tools and infrastructure”, says Helion’s Chief Operation Officer, Benoît Vesy. He adds that his company currently has 40 workers but he predicts they will grow to over 100 by the end of the decade.

The European Commission’s aims

Projects like the green hydrogen plant in France, are the kind of projects the Commission wants to see governments invest in says European Commission Vice President Valdis Dombrovskis.

“A substantial part of the recovery and resilience facility is to be linked with our work towards climate neutrality. Clean hydrogen is clearly one of those work directions” says Dombrovskis.

The Commission Vice-President adds however that “it’s for each member state to decide which projects they are exactly putting forward. So in this case, it’s for France to decide whether to present this project in their recovery and resilience plans.”

EU countries are in the process of submitting their nation recovery plans to the European Commission.

Dombrovskis says there are other initiatives for a green transition that governments can consider investing in: “other activities that can be financed in renewable energies, are in what we are calling a renovation wave, so improving the energy efficiency of buildings and many other areas”.

EU leaders struck a deal on the Pandemic recovery fund in December 2020 after long negotiations.

“Well, obviously, those had been complicated negotiations” says Dombrovskis, ” but we have created an unprecedented financial package from the EU point of view. It’s a very substantial amount of money. So now the main thing is that this money really goes to the economy and it’s well spent”.

The first payouts could take place as soon as summer 2020.

“That’s what we are aiming for” says Dombrovskis. He adds that it is “important that member states are preparing their recovery and resilience plans so that the European Commission can approve them. And that would be then the basis for paying this money. ”

“We would start with paying after approval of the plan of 13% of pre-financing. So that would be a substantial amount of money immediately flowing towards the member states.”

The Commission’s Vice-President warned however that there was still one more stage, before the payments could be made. “There is another important element: for the European Commission to go to the markets and to borrow this money, we need all member states to ratify. So it’s another important part which member states need to do to ensure that this money is really flowing”.

As Europe continues to reel from this pandemic, the pressure is on to get the recovery funds where they’re most needed, as soon as possible.

• EIB also approved last year record EUR 4.3 billion of financing for future projects in Greece

• Strengthening of EIB and EIF cooperation with Greek partners strengthens COVID-19 response, energy transition, road safety and private sector growth

• 45% of financing support climate action and environmental protection

Annual financing provided by the European Investment Bank Group and the amount approved for future investment plans reached record levels in Greece last year. In 2020 EUR 2.8 billion of new support for high-impact private and public investment across the country was agreed between the European Investment Bank and European Investment Fund and Greek partners and a further EUR 4.3 billion approved by the EIB for future investment.

EIB Group financing in Greece last year represented the third largest engagement in the European Union as a percentage of national GDP. Furthermore, EIB financing in Greece represented the second largest per capita engagement in the EU

Details of the EIB’s highly important financial and technical support for long-term investment to help Greek companies overcome COVID-19 challenges,  accelerate energy transition and harness renewable energy resources, and improve road safety were outlined earlier today by Christos Staikouras, Finance Minister of the Hellenic Republic and Governor of the European Investment Bank, Werner Hoyer, President of the European Investment Bank and Christian Kettel Thomsen, EIB Vice President responsible for Greece.

“2020 was a uniquely challenging year for Greece, Europe and the whole world, due to the coronavirus pandemic and its social and economic consequences. These consequences rendered necessary the support of households and businesses with the use of every available tool, instrument and resource. The Greek Government responded to this challenge to the maximum possible extent. The European Investment Bank Group has had a crucial contribution in this direction.

The close and fruitful cooperation between the Greek Authorities and the EIB’s dedicated Investment Team for Greece led to record-high financial results. The EUR 2.8 billion of new EIB and EIF financing agreed last year helps Greek companies – and, mostly, small and medium enterprises – to overcome the COVID-19 challenges and supports energy transition, climate action and investment in infrastructure. Furthermore, the EUR 4.3 billion of new financing approved by the EIB for Greece – which consists a historic high for EIB’s contribution in Greece and is almost three times higher compared to 2019 – guarantees that the EIB Group will further strengthen its role as a key technical and financial partner of Greece”, said Christos Staikouras, Minister of Finance of the Hellenic Republic and Governor of the European Investment Bank.

“The EIB Group is committed to supporting high-impact and transformational investment across Greece. Last year’s record EU Bank engagement to enhance economic resilience to COVID-19, increase climate action and support priority investment is only possible due to the close and continued cooperation between Greek authorities, business partners and the EIB Investment Team for Greece. EIB and EIF experts are learning from pioneering projects in Greece and sharing global best practice to help investment in Greece to deliver more. Looking ahead the impact of future EIB Group activity will be further strengthened by the record approval of new projects. The close partnership between Greece and the EIB Group is delivering and will be even stronger in the future” said Werner Hoyer, President of the European Investment Bank.

“EIB engagement is supporting business investment, transforming access to green energy and improving key services across Greece. The record EIB Group engagement last year is allowing thousands of companies to harnessing new opportunities and small-scale projects to deliver safer roads, better schools and protection from floods. This is only possible thanks to the shared commitment and dedication of our counterparts across the country and the EIB Investment Team for Greece.” said Christian Kettel Thomsen, European Investment Bank Vice President responsible for Greece.

Largest annual EIB support for climate action in Greece

45% of EIB financing in Greece last year will directly help to reduce carbon emissions and adapt to a changing climate.

This includes dedicated financing to encourage energy efficient investment and local projects to better protect homes and businesses from floods.

Reinforced EIB and EIF partnership helping companies invest and innovate

Last year the EIB Group provided EUR 1.2 billion for targeted credit lines managed by 11 leading Greek banks.

The new private sector financing is being used to support climate action, improve access to inclusive finance, encourage agricultural investment and help companies in sectors most impacted by COVID-19.

This includes EUR 423 million provided by the European Investment Fund, a significant increase on the EUR 29 million provided in 2019.

Supporting energy transition across Greece

Last year the EIB provided EUR 1.2 billion for energy investment in Greece.

This is supporting construction of new interconnections with Crete, which will allow the greater use of renewable resources in Greece’s energy mix, as well as enabling 7,000km of new electricity distribution infrastructure to be installed by PPC, improving reliable supply of electricity.

The EIB is also providing EUR 125 million to support construction of a new 826 MW power plant in Greece by Mytilineos S.A. that will allow greater use of renewable energy resources in the country, enabling the phasing out of lignite power generation in Greece by 2023, and cater for long-term energy demand.

Technical cooperation with Greece to share best practice and enhance project impact

Last year the EIB Group’s dedicated Investment Team for Greece provided technical expertise for 13 projects in Greece.

The EIB has also seconded financial experts to help set up the new Hellenic Development Bank and Recovery and Resilience Fund.