What does the EIB offer to communities wishing to improve the energy performance of their buildings?
The energy performance of buildings is a priority subject for Europe and therefore for the EIB. We provide long-term direct financing to local authorities, on favorable terms, to finance projects that contribute in particular to reducing their carbon footprint. We also offer consulting services to support them in their efforts. We also work, and this is less known, through public banks and commercial banks. In France, our privileged partner is the Banque des Territoires: the EIB grants it funding envelopes which it distributes in the form of loans which are granted for targeted projects.
Can all local authorities benefit from the mechanisms offered by the EIB?
Yes, all communities can benefit from financing from the EIB. We intervene directly on the largest projects, whose budget exceeds 50 M €. These rather concern the large local authorities and their groupings.
For smaller projects, EIB financing is also available through the Banque des Territoires or commercial banks. A municipality or an EPCI that carries an eligible project can obtain a fixed rate loan for projects whose cost is at least 40,000 euros.
What is the point of going to the EIB rather than a traditional bank?
The financing conditions are excellent, because on the one hand the EIB finances itself at very low rates, and on the other hand because, as a European public institution, it allows the projects it finances to benefit from these conditions. . Compared to a traditional bank, it lends on longer maturities and can pay its funds in several installments, adapting to the life of the projects.
We also offer technical assistance and consulting services, particularly upstream of projects, to support feasibility studies, technical studies, financial arrangements or even procurement. This European service therefore goes well beyond a simple financial contribution.
I would add that the granting of financing from the EIB, given the very comprehensive instruction it implies, is a very strong signal of the viability of a project. It significantly strengthens its attractiveness for other funders.
Can an ERDF or EAFRD grant be combined with an EIB loan or assistance?
The EIB loan can finance half of the investment costs of a project at most, this because we seek to mobilize private actors in carrying out the operations that we finance. European grants can effectively be combined with an EIB loan, allowing all financing of European origin to reach up to 70% of the cost of the project.
What advice would you give to local authorities seeking EIB support for their energy renovation project?
I would advise communities interested in direct financing from the EIB to prepare their contact by gathering the information available on their energy renovation projects, their cost and the envisaged timetable. This is what allows us to verify the eligibility of a project for funding.
Subsequently, the technical departments and the financial department of the community are mobilized to examine the file. The procedures are very clearly defined and the project managers at the EIB guide the work. A financial questionnaire and a technical questionnaire are also discussed during a site visit. The entire process takes six to nine months, from initial contact to signing the loan.
How should a local authority proceed to enter into relations with the EIB?
A contact form is available on our website. You can also write directly to the EIB Group office in Paris ([email protected]). A first telephone meeting is then offered quickly. Then when the project becomes clearer, a relationship manager is appointed as the project leader’s correspondent.
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