The European Investment Bank (EIB), the European Union's (EU) long-term financing institution, is lending EUR 5 million to the Municipality of Lisbon (Câmara Municipal de Lisboa) for the rehabilitation of social housing in the city. The project complements other projects previously financed by the EIB to modernise the city of Lisbon and forms part of the strategy to reform the management of social housing services and improve the living conditions of the most impoverished section of the population.

A total of some 6 000 dwellings, in 14 social housing bairros, home to more than 20 000 people, will be rehabilitated by the end of year 2001. The total population of the estates targeted by the project is 33 000 people, some 5% of the city's population, the majority of which are tenants of very low-rent housing. The buildings concerned are among the most deteriorated, owing to years of inadequate maintenance. 500 man-years of temporary jobs will be required during implementation and 20 permanent jobs will be created for the management services of the rehabilitated dwellings.

The loan is part of the Amsterdam Special Action Programme - ASAP - set up by the EIB to support investment in labour-intensive sectors in accordance with the Amsterdam Resolution on Growth and Employment. Since the inception of ASAP 18 months ago, the Bank has approved close to EUR 9 billion of loans for job creating projects by small and medium-sized enterprises, education, health and environment infrastructure, as well as for TransEuropean Networks and urban renewal. Over a period of 3 years (1997-2000) the EIB aims to mobilise additional co-financing of some EUR 20 billion within the EU for investment leading to temporary and permanent job creation. In average, some 320 000 temporary jobs are expected to be created during the construction phase of the projects. In addition, expected permanent jobs though out the EU could average 5 000 per billion euro invested.

The EIB was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering European Union policy objectives, in particular, regional development, European infrastructure, energy, industry and environment. Outside the Union, the EIB contributes to European development co-operation policy in accordance with the terms and conditions laid down in the various agreements linking the Union to some 130 countries in Central and Eastern Europe, the Mediterranean region, Africa, the Caribbean and the Pacific, Asia and Latin America.