The European Investment Bank (EIB), acting as a Fund of Funds Manager, signed three operational agreements for the total amount of PLN 273 million (approx. EUR 64 million equivalent) with Getin Noble Bank S.A., one of the leading banks in the Polish housing sector. The goal is to provide loans for the much-needed thermo-modernisation of multi-family residential buildings in three Polish regions: Pomerania, Mazovia and Kujawsko-Pomorskie.
The Programme is dedicated to the housing cooperatives and associations, social housing associations, local government entities and entities that they control, and other institutions or bodies. The financing will support projects designed to reduce heat losses, eliminate individual sources of heat in conjunction with connecting to district heating networks, modernise local heat sources, energy upgrades in heating and ventilation systems, internal installations, installation of energy monitoring and management systems.
It is estimated that at least eight thousand households will increase their energy efficiency thanks to support from this Programme and at least 250 multi-apartment buildings will be modernised in all three regions.
Getin Noble Bank S.A. was selected as a Financial Intermediary for its leading role in financing energy efficiency in the housing sector. Each project will be also co-financed from Getin Noble Bank’s own funds to increase the leverage on EU money. Expected complementary financing to be provided by Getin Noble Bank S.A. is estimated at the level of PLN 48 million (approx. EUR 11 million equivalent), which will come on top of the PLN 273 million of Programme financing.
Further to the signature of the operational agreements, Getin Noble Bank S.A. has already launched calls for projects in all three involved regions. First projects in the regions of Pomerania and Kujawsko-Pomorskie were submitted to Getin Noble Bank in June 2018, and the bank expects to receive expressions of interest in the remaining region in the coming months.
Based on the success of financial instruments managed under the JESSICA Initiative during the 2007-2013 programming period, four Polish regions (i.e. Pomerania, Mazovia, Silesia and Kujawsko-Pomorskie) have each established their respective financial instruments for which the EIB was selected as a Fund of Funds Manager.
The EIB manages financial instruments under the regional operational programmes with the task to invest the European Structural and Investment Funds (ESIF) resources through Financial Intermediaries into eligible projects in urban regeneration and energy infrastructure, with the aim to support:
- energy efficiency and smart energy management;
- production and distribution of renewable energy; and
- regeneration of deprived communities in urban and rural areas.
Earlier this year, the EIB has already signed three operational agreements for PLN 378 million (approx. EUR 85 million equivalent) with Bank Gospodarstwa Krajowego, Poland’s national promotional bank, to support urban regeneration projects in the Polish regions of Pomerania, Mazovia and Silesia. By acting as Fund of Funds Manager, the EIB increases its level of support for urban regeneration and development projects in Poland, for which it is already active in the form of loans granted to municipalities and other local authorities.
EIB in Romania
EIB financing (signed projects) in Romania came to a total of EUR 1.3 billion in 2017. The total investment of the EIB Group (the European Investment Bank and the European Investment Fund) in Romania in 2017 was EUR 1.87 billion.
The European Fund for Strategic Investments (EFSI) is an initiative to help overcome the current investment gap in the EU. It aims to mobilise EUR 500 billion by 2020. Jointly launched by the EIB Group and the European Commission, it is the central pillar of the Investment Plan for Europe, aiming to boost jobs and GDP, improving the lives of people across Romania.