New lending strategy to focus on transport, logistics and communications
NIB has adopted a new lending strategy that will guide the Bank’s operations in the sector of transport, logistics and communications. The new approach will help identify opportunities to finance qualified projects.
“Developed transport, logistics and communications infrastructure increases mobility, connects markets and regions together and creates conditions for the economies to improve efficiency and productivity,” says Stefan Fridriksson, Senior Manager at Business Development, who was responsible for drafting the lending strategy.
One of the focus sectors in the Bank’s lending operations, transport, logistics and communications, accounts for up to 20% of NIB’s total annual lending volume. Financing in this sector can increase in the near future through conventional direct project loans or participation in increasingly common financial structures built on public-private partnerships.
It has been estimated that in the period 2007-2013, the countries of the Baltic Sea region will commit up to EUR 95 billion in projects of infrastructure development related to transport alone.
“The new approach will help identify opportunities to finance qualified projects. We are taking into account the most recent policies of the Bank’s member-countries, EU policies and the Baltic Sea region and inter-governmental initiatives in this area,” Mr Fridriksson continues.
In identifying eligible projects, NIB is committed to regional cooperation under the umbrella of the recently established Northern Dimension Partnership on Transport and Logistics as well as the EU Strategy for the Baltic Sea region, including the development of trans-European transport networks (TEN-T) as the most significant element of the EU transport policy for infrastructure.
Speaking about the Bank’s priorities, Mr Fridriksson stresses that NIB will continuously focus on projects that deal with the environmental burden caused by transport and logistics, such as the reduction of CO2 emissions and pollutants.
NIB also seeks to support efforts of cross-border cooperation in the Baltic Sea region. To identify eligible projects, NIB will maintain dialogue with relevant country authorities in the member-countries and the entire Baltic Sea region.
“When lending to countries outside this region, our efforts will concentrate on supporting research and innovation, technological cooperation and climate change mitigation as well as investments involving member-country interests,” explains Mr Fridriksson.
NIB will pay special attention to the development and upgrade of public transport, including tram, underground railway and train, as well as the constant improvement of the road system in the region. Research in creating alternatives to oil and petrol engine vehicles, and investments in traffic control systems are also all in line with NIB’s lending strategy in this sector.
NIB will also continue financing infrastructure development in airports and sea ports and harbours in the Nordic-Baltic region. Lending will be aimed at projects located to connect major transport corridors.
In logistics, NIB will put emphasis on financing the integration of freight transport modes and promote the use of environment-friendly technologies in this area. As an example of a logistical project eligible for NIB financing, Mr Fridriksson names intermodal logistical centres, or hubs.
“Such centres integrate road, railway, air and water transport. This method of integration can reduce costs and reduce the environmental burden,” he says.
The new lending strategy also promotes the member countries’ leadership in telecommunications, investments in state-of-the-art technologies developed by domestic producers, broadband data exchange, the rollout of 3G and 4G mobile networks.
“The investments into a well-functioning sector of transport, logistics and communications are large-scale, have long pay-back times and require long-maturity financing. NIB is well positioned for servicing these investments,” concludes Mr Fridriksson.