Public investment banks

Investment banks have different mechanisms that can be applied to fund infrastructure projects, typically of large scale and high structural importance.

Investment banks specialise in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganisations, and acting as a broker and/or financial adviser for institutional clients.

Banks, be it at national, European (EIB), or international (World Bank) level, can provide loans to different infrastructure projects, including major interchange projects of strategic importance. At the European level, the European Investment Bank has the following funding mechanisms on hand that can be applied to give out loans:

– European Regional Development Fund – Cohesion Fund – JESSICA (Joint European Support for Sustainable Investment in City Areas)

– an initiative of the European Commission developed in cooperation with the European Investment Bank (EIB) and the Council of the European Development Bank (CEB) supporting sustainable development and regeneration through financial engineering mechanisms.

Investment banks have different mechanisms that can be applied to fund infrastructure projects, typically of large scale and high structural importance. On a European scale, the European Investment Bank has the following funding mechanisms to hand that can be applied to give out loans.

– European Regional Development Fund

– Cohesion Fund

– JESSICA (Joint European Support for Sustainable Investment in City Areas) – an initiative of the European Commission developed in cooperation with the European Investment Bank (EIB) and the Council of the European Development Bank (CEB) supporting sustainable development and regeneration through financial engineering mechanisms


NODES strategic objectiveContribution
Enhance accessibility and integration 0
Enhance intermodality 0
Enhance liveability 0
Increase safety and security conditions 0
Increase economic viability and costs efficiency ++
Stimulate local economy ++
Increase environmental efficiency 0
Increase energy efficiency 0

Good practice

Vienna Hauptbahnhof

Construction of new main railway station in Vienna at the junction of TEN-T railway corridors, replacing existing terminal stations. http://www.eib.org/projects/loans/2007/20070460.htm

Budapest fourth metro line

Construction and equipment of fourth metro line connecting South Buda and Pest                                               http://www.eib.org/projects/loans/2002/20020411.htm?lang=en

Application in NODES test sites – Thessaloniki Metro Network P&R Facilities Programme

Justification to the European Investment Bank for the funding of the construction of five P&R facilities in Thessaloniki, entitled “Thessaloniki Metro Network P&R Facilities Programme” (P&R facility at Mikra Interchange included)


Potential interchange performance improvement

Investment banks can boost investments in priority transport projects, including interchanges, that otherwise would struggle to be financed due to lack of national or regional public funds. It is therefore an attractive financing tool, particularly in regions that have limited public resources. It also guarantees consistent funding flows throughout the project duration.


Resources

The costs are low for this tool. The only costs that have to be incurred are for writing the funding proposal.

References

European Investment Bank. Available online: http://www.eib.org/

World Bank. Available online: http://www.worldbank.org/