The European Investment Bank (EIB), the European Union's long-term financing institution, has just signed finance contracts with Andalucía's and Aragón's regional authorities for funding local infrastructural improvement works.
The authorities in Andalucía are being lent EUR 29 million (ESP 4.8 billion) towards schemes forming part of their 1997-2007 Regional Development Programme. Projects targeted comprise: upgrading works on the A-92 North motorway between Seville and Granada; construction of a new A-92 South Almería-Guadix motorway link to connect Almería with the A-92 North motorway; renovation of 14 stretches of regional highways in the Guadalhorce valley (Málaga Province); new or refurbished drinking-water supply systems in seven municipalities as well as wastewater collection and treatment facilities in another 14 municipalities. The funds in question constitute the initial tranche of an umbrella credit facility approved by the EIB for such schemes.
The authorities in Aragón are being provided with EUR 36 million (ESP 6 billion) towards rehabilitating and modernising 26 sections (179 km in all) of the regional road network. The proceeds of this loan will also be earmarked for restoring a number of monuments exemplifying Spain's artistic heritage, notably the Mudéjar style of architecture, as well as numerous listed buildings throughout Aragón, a region rich in cultural gems.
On the one hand, the capital invested in improving communications infrastructure will facilitate traffic flows and improve road safety. On the other, viewed in conjunction with support for modernisation of drinking-water supply and wastewater treatment infrastructure plus restoration of works of historical, artistic and cultural interest, the various schemes will combine to enhance the quality of life for local communities and to promote tourism.
The EIB was founded in 1958 under the Treaty of Rome, which created the European Economic Community, with the aim of fostering enhanced integration, balanced development and economic and social cohesion in the Member States by providing long-term financing for capital investment furthering attainment of European Union (EU) objectives. It supports viable projects: fostering development of the EU's less favoured regions; targeting construction of trans-European transport, telecoms and energy networks; bolstering the international competitiveness and integration of European industry, particularly SMEs; safeguarding and enhancing the environment; endowing the EU with secure energy supplies; and promoting health and education facilities. Within certain limits, it also extends financing outside the Union in pursuit of the latter's policy of cooperation with third countries.Owned by EU Member States, the EIB funds its lending operations through borrowings raised on the capital markets, where its bond issues systematically enjoy the top AAA rating.
(1) EUR 1= ESP 166.386, 0647500 GBP.