Two new initiatives to increase private investment in the Neighbourhood region were presented last week at the Strategic Board meeting of the Neighbourhood Investment Facility (NIF) in Brussels
• The Investment Security in the Mediterranean Region (ISMED) Support Programme will be implemented together with the OECD and aims to enhance investment security in the Mediterranean region. The programme will evaluate the level of investment protection provided by the local authorities, identify gaps and make recommendations to address them. An amount of €1.5 million are foreseen for this programme.
• The ISMED Risk and Cost Sharing Toolkit of the NIF will provide targeted measures like support to risk-sharing mechanisms (making funds available to help private investors by reducing their exposure to risk) and guarantee schemes addressing risk as a major obstacle for private investments. A sizeable part of the €220 million EU grants expected to be available to the NIF until the end of 2013 will serve to underpin this important initiative.
This can leverage resources from European Public Finance Institutions and private investors of at least €2 billion for different infrastructure projects in the Neighbourhood region.
Štefan Füle, EU Commissioner for Enlargement and European Neighbourhood Policy, said: "I welcome the ISMED Support Programme as a concrete example of our good cooperation with the OECD and I am very glad that today we are launching a new toolkit under the Neighbourhood Investment Facility to support private investments in the entire Neighbourhood region. These innovative tools are designed to help our partner countries to attract much needed investments from the private sector for large infrastructure projects more effectively. This should have a positive impact on growth, jobs and the daily life of people in the region."