Today in Luxembourg, the President of the European Investment Bank (EIB), Philippe Maystadt, and the President of the Government of Andalusia, Manuel Chaves, signed an agreement setting out the terms of cooperation between the two institutions for implementing the JESSICA[1] programme in Andalusia to the tune of EUR 85 million. At the same time, they signed the contract for a EUR 50 million loan granted by the EIB to the Andalusia Region for investment in social housing and urban regeneration in 30 Andalusian towns.

At the signing ceremony President Maystadt stressed "the Bank's excellent relations with the Government of Andalusia, and the great social value of the investments that the EIB loan will help to finance, which will benefit some 15 000 families. Today's two signatures have the same ultimate goal - he continued - which is to improve the living conditions of the inhabitants of our cities".

JESSICA is a joint initiative of the European Commission and the EIB set up in cooperation with the Council of Europe Development Bank to promote investment in urban areas. To be eligible for financing, projects have to form part of integrated urban development programmes that ensure the consistency and sustainability of the investments. The JESSICA facility makes it possible to use the European Union's structural funds flexibly for projects that are attractive to private enterprise but require public financial support. JESSICA funds, which can be disbursed in the form of equity participations, guarantees or loans, have to be repaid and can be used again to finance new urban projects.

In tandem, the EIB loan signed today will help to finance Andalusia's fifth regional housing plan for the period 2008-2012, which focuses on two types of project: the construction of rented social housing as part of comprehensive district regeneration plans; and the refurbishment of buildings in concerted regeneration areas. The aim is to improve housing, rehabilitate abandoned buildings and enhance the living conditions of residents and visitors through the regeneration of public spaces.

These actions target the improvement of the urban environment, including the enhancement of energy efficiency and reduction of social exclusion, both current concerns of the European Union.

The European Investment Bank is the EU's long-term financing institution promoting European objectives. Set up in 1957, it operates in the 27 EU Member States and more than 130 other countries worldwide.

Over the past five years the EIB has provided almost EUR 30 billion for urban transport and urban regeneration projects in numerous EU Member States, gaining ample experience of their preparation and financing. At the promoters' request, the Bank will be examining the possibility of contributing its own resources to projects attracting JESSICA funding.


[1] Joint European Support for Sustainable Investment in City Areas.