The European Investment Bank, the European Union's financing institution, will finance the acquisition of an additional 70 metro units used for the renewal of Stockholm's metro system. In 2001 and 2002 already 125 units were financed by the EIB. For this new project, a long term loan of SEK 1 000 million (EUR 108 million) was signed today in Luxembourg by representatives of the Stockholm County Council and Mr. Sauli Niinistö, the recently appointed Vice-President of the EIB whose responsibilities include Sweden, Finland and the Baltic States/Northern Dimension. This is the first loan agreement signed by Mr. Niinistö on behalf of the EIB.
The new units (the so-called Vagn 2000) are an important part of the Stockholm metro improvement. Quieter and more energy-efficient, they will replace obsolete rolling stock on the oldest part of the network. They have been designed to incorporate the most advanced components and equipment available. About 90% of the components are recyclable and the new units consume around 20% less energy than the old ones. Most of the first series of 125 vehicles (part-financed by the Bank in 2001 and 2002) have already been delivered, tested and put into operation and have proven to be reliable. The project will contribute to improve the quality of service to the users of the metro system and help to maintain the attractiveness of this mode of transport. This should contain the growth in private car usage and thereby enhance the quality of the urban environment. The Bank has given priority to supporting more environmentally friendly modes of transport, concentrating over 40% of its loans in the transport sector on long-distance rail links and urban rail transport systems.
Mr. Sören Olofsson, Director of the County Council, who signed the loan with Ms Helena Holmstedt, Finance Director, on behalf of the Stockholm County Council, said: This continued collaboration with EIB is well appreciated by the Stockholm County Council, and the loan contributes positively to diversifying the maturity of our funding.
Mr. Sauli Niinistö, EIB Vice-President, said: I am particularly pleased to sign the VAGN 2000 Project with the County of Stockholm, one of the EIB's most important partners in Sweden. This long-term project will make urban public transport more attractive, a major EIB objective for the development of public services. The EIB has maintained a high level of financing in the European transport sector, committing some EUR 39 billion over the past five years for transport projects, of which EUR 1.488 billion in Sweden.
In my role as Vice-President with responsibilities for the Nordic area, I am looking forward to meeting many leaders of business and public affairs in coming times so as to reinforce the strong framework of cooperation which already exists between Sweden and the EIB. I will also be seeking to encourage new relationships that can enhance the development of the Acceeding Countries within the European Union and the development of stronger relationships with the neighbouring countries and Russia through the continued improvement of infrastructure within the Nordic triangle, thus reinforcing the Northern Dimension.
The European Investment Bank, the European Union's long-term lending institution, finances capital investment furthering EU integration, in particular: regional development, trans-European transport, telecom and energy networks; industrial competitiveness; SMEs, and environmental protection. It also operates outside the EU within the framework of the EU's policy for co-operation and development. Owned by its Member States, the EIB raises its funds on the capital markets (AAA-rated issuer). As part of its remit, the EIB supports the development of infrastructure networks with a Community dimension, notably in the transport sector.
Within the EU, the EIB priorities include regional development, economic and social cohesion, environmental protection, and an innovative, competitive European economy. Priority is further given to the economic integration of the future Member States into the Union.
In 2002, regional development absorbed an aggregate EUR 22.9 billion in the present and future EU Member States.
In the environmental sector, the Bank has set itself the target of directing between a quarter and a third of its individual loans in the present and future Member States towards environmental projects. Individual loans reached a record EUR 10.2 billion. Environmental projects include urban transport and renewal, water and sanitation, waste disposal, renewable energy, and energy saving.
EIB financing in support of the EU's strategy for a competitive information and knowledge-based economy amounted to EUR 3.6 billion in 2002.
Sweden
In 2002, the EIB lent some EUR 33 billion within the EU, EUR 720 million of which in Sweden. Its activities were concentrated on road and rail transport as well as operations under the EIB's i2i Innovation Initiative such as a substantial R&D loan in the industrial sector. Since May 2000, the EIB has approved 14.4 billion and signed contracts worth 10.8 billion for investment in research and development, information and communications technology networks, dissemination of innovation (including support to the audiovisual sector), and human capital formation, in particular education infrastructure. The creation of a more innovative European economy being a long term objective, the Bank has extended its initial support beyond 2003 and made it a priority for its lending until 2010.
New EIB Vice-President
Mr. Sauli Niinistö was recently appointed Vice-President of the European Investment Bank and member of its Management Committee. He succeeds Mr. Ewald Nowotny who ended his four-year term. Mr. Niinistö, who was appointed by the Board of Governors on a proposal by Austria, Sweden and Finland (the three countries form a shareholder constituency), was Deputy Prime Minister of Finland from 1995 until 2001. A lawyer by education, he was a member of the Finnish government as Minister of Justice from 1995 until 1996 and Minister of Finance from 1996 until 2003. He chaired his party, Kokoomus (National Coalition Party), from 1994 until 2001. Mr Niinistö was Chairman of the European Democratic Union (EDU) 1998-2002 and has since 2002 been Honorary Chairman of EPP (European People's Party). He began his career in 1976 as Senior Secretary of the Turku Court of Appeal where he later became a judge (1994-1995). In between (1978-1988), he worked as an Attorney at Law in Salo. He obtained a legal degree (LL.M) from the University of Turku in 1974. He was born in 1948 in the city of Salo.