CEB approved seven new loans totalling €670 million

PARIS - The Council of Europe Development Bank (CEB) approved seven new loans today totalling €670 million in support of education and vocational training, environmental protection, health and social care, MSME financing, and the promotion of inclusive and resilient living environments.

“We believe that investing in social infrastructure and people while protecting the environment is crucial for the well-being of all European citizens. The loans approved today reaffirm our continued commitment to resilient and inclusive societies, and ultimately sustainable development, by helping ensure access to essential services,” Governor Monticelli commented. 

Cyprus: A €48 million loan to the Larnaca Sewerage and Drainage Board (LSDB) will help connect under-served suburban areas to the integrated urban wastewater network in one of the world’s most water-stressed countries. While the project’s social focus will address territorial inequalities as a prerequisite for more cohesive societies, appropriate wastewater treatment, storage and reuse for irrigation will improve environmental protection and contribute to sustainable management of scarce water resources. At completion, the project will meet the needs of about 32,000 residents in the area, thereby complementing two previous phases of investments successfully carried out with the CEB’s support.

Czech Republic: A €64 million loan to Brno Waterworks and Sewerage (BVK) aims to improve wastewater treatment for a population of over 412,000 in the wider Brno region. The project will enable sludge reuse and increase energy efficiency; it will also help reduce water pollution and improve the quality of downstream effluents and watercourses. By reducing the long-term costs of wastewater treatment for the connected households, the project is also expected to ensure the continued affordability of wastewater services. The loan is the CEB’s first direct financing of a municipal public company in the Czech Republic.

France: A €200 million loan to the Société Publique des Ecoles Marseillaises (SPEM), a special-purpose company created in 2022 by the French State and the City of Marseille, will partially finance the construction of new schools as well as major renovation works in existing ones. As part of the School Plan launched by the City in 2021 to address the serious deterioration of Marseille’s school stock, the project aims to provide better learning and working conditions for schoolchildren and the educational community as a whole. With a total investment cost of at least €845 million euros the project will cover 188 establishments, representing 40% of all primary schools in Marseille. Given the scale and strategic importance of the investments for the national and local authorities, the French government will provide its guarantee to secure all loan financing to be extended to SPEM.

Italy: A €25 million loan to the City of Reggio Emilia is aimed at responding flexibly to evolving social development and inclusion challenges. As part of the city’s urban regeneration Plan, the project will support the transformation of an impoverished central area – known as “R60 District” – into a socially inclusive, affordable, and vibrant urban neighbourhood. The project represents an innovative initiative to repurpose and regenerate the urban space to enhance social cohesion, improve urban safety and increase the quality of living.  A major component of the project is the construction of 148 social and affordable housing units, either through new development or the conversion of existing buildings. Community facilities, such as recreational and cultural areas, sports infrastructure and interventions aimed at improving mobility and accessibility, are also included in the project’s scope.

Poland: A €150 million loan to Société Générale Equipment Leasing Polska (SGELP) will co-finance eligible investments by Polish MSMEs. By facilitating their access to finance, the programme will contribute to financial inclusion through the creation and preservation of jobs. In line with the CEB’s social mandate, as much financing as possible will be directed to MSMEs operating in regions with the highest unemployment rates and is expected to promote women’s entrepreneurship, with a target of 15% of CEB’s loan being allocated to women-owned businesses. To comply with commitments made under the Paris Agreement, the SGELP will limit the financing of vehicles and actively develop that of green assets. The CEB has successfully supported SGELP since 2008 through five successive facilities totalling €410 million.

Romania: A €72.9 million loan to Sector 6 Municipality of Bucharest aims to respond to the evolving social needs by improving access to healthcare services through the construction of a greenfield hospital. The new health facility will provide inpatient and outpatient services to approximately 400,000 citizens of Sector 6 and beyond.  With a plan to recruit nearly 1,200 staff, the new hospital is expected to help slow down the brain drain of Romanian doctors and nurses to other countries in search of better salaries and working conditions. This loan is the first major health project financed by the CEB at sub-national level in Romania. Benefitting from a partial Invest EU guarantee, the loan marks the second CEB operation with Bucharest’s Sector 6.

Spain: A €110 million additional loan to the City of Barcelona will continue to support the City Council’s commitment to the 2030 Agenda for Sustainable Development and the transformation of Barcelona into a more inclusive city*. This new loan will supplement the €170 million CEB financing already approved in 2018, bringing to €280 million the total amount of Bank’s investment in Barcelona’s resilience strategy. The CEB financing will contribute to improving the quality of life of today’s residents and future generations.

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* Read CEB’s September 2023 Thematic Review on Barcelona’s Superblock Programme