The EIB’s Water Sector Lending Policy: Strengthening the EIB’s Support to EU Policy Objectives in the Sector, August 2008

Water projects in all their forms constitute an important component to support environmental
protection and sustainable communities, one of the EIB’s six lending objectives inside the EU as
per its Corporate Operational Plan 2008-10, and an increasing share of the EIB’s activities in
Partner Countries. The Bank’s involvement adds significant value to water projects through project
preparation, advisory and technical assistance activities. This is particularly the case in regions
and countries where climate and other conditions increase even more the importance of the
sector. The Bank’s intervention will be predicated on maximizing value added, and priorities will be
determined on this basis.

The EIB provides long-term loan financing to both public and private clients in the water sector,
using a range of instruments. EIB financing has covered investments in all parts of the water
cycle including water abstraction and supply (for household, industrial, and agricultural use),
wastewater treatment and disposal, as well as coastal erosion, flood control and protection, and
hydropower generation. In 2003-07, EIB direct lending to water related projects, excluding
hydropower and irrigation, was around EUR 10bn. Of this, 88% was in the EU-27, making it the
biggest lender to the water sector within the EU. The EIB has also been the largest source of loan
financing to the global water sector to date, compared with other International Financing
Institutions.