On 12 May 2025, the Regions Working Group held a joint webinar with the European Investment Bank (EIB), focusing on financing and advisory mechanisms available to municipalities for developing sustainable transport infrastructure. 

As part of the revised TEN-T network, regions and cities across Europe are preparing to play a key role within corridors and urban nodes. Delivering these infrastructure projects will require substantial investment, and the EIB is well-positioned to support municipalities in this process. 

The webinar featured expert speakers from the EIB, who outlined the Bank’s role, key financing instruments for municipalities, available technical advisory services, and successful project examples. 

The role of the European Investment Bank 

Torsten Brand, EIB, kicked off the webinar with an introduction to the EIB and its structure as the EU's investment institution. Functioning both as a bank and a fund, the EIB does not rely on taxpayer contributions but instead raises capital through international financial markets. It then offers this capital to clients on favourable terms. Owned and governed by the EU Member States, the bank is significantly influenced by its three largest shareholders, Germany, France, and Italy, who together hold roughly half of the ownership. 

As one of the world’s leading providers of climate finance, the EIB plays a central role in supporting the EU’s green and digital transitions. Around one-fifth of its lending is directed toward urban projects, demonstrating a strong commitment to enhancing the sustainability and liveability of European cities. 

Financing instruments for municipalities

The EIB offers a variety of instruments to suit municipalities of different sizes and project maturity levels, including investment loans, framework loans, and intermediated loans. 

• Investment loans are aimed at large-scale, clearly defined projects (typically over €50 million), covering up to 50% of total costs. However, such loans are less common for local authorities due to the scale involved. 
• Framework loans are more commonly used. These support multi-year investment programmes involving a series of smaller, thematically related projects. For example, Barcelona secured a €200 million framework loan covering 72 initiatives in urban regeneration, mobility, energy efficiency, and digital services. 
• Intermediated loans are well suited to smaller municipalities (under 75,000 residents), allowing access to EIB financing through national or regional intermediaries without engaging in the full appraisal process. 

EIB loans can be blended with EU grants (e.g. from European Structural and Investment Funds), potentially covering up to 70% of project costs, with the remaining 30% covered by national or local contributions. The Bank also supports the mobilisation of private investment, particularly in climate action, innovation, and SME development. 

Eligibility criteria and process 

Regarding eligibility criteria, it was emphasised that land acquisition costs and refundable VAT are not financeable under EIB loans. The loan process itself involves several structured steps: a project is first proposed and, if deemed eligible, undergoes a rigorous appraisal conducted by EIB experts in economics and engineering. Successful projects are then approved by the management committee or board of directors, followed by contract signature, disbursement, ongoing monitoring, and eventual repayment. 

Participants also raised questions about the possibility of joint applications. While multiple municipalities may co-apply for financing, it was noted that such arrangements are administratively complex. Nevertheless, successful precedents do exist, such as a social housing project in France, where four municipalities coordinated their efforts and received separate but connected contracts under a shared financing arrangement. 

Importantly, the EIB confirmed that its financing mechanisms apply equally to cohesion and non-cohesion countries. While more developed regions may not be eligible for certain structural funds, the EIB applies its financial tools across the EU without discrimination in terms of regional development status. This provides consistent access to EIB instruments, ensuring that all European cities can engage in sustainable transport and infrastructure transformation, regardless of size or geographic context. 

Advisory services and project preparation support 

Wojciech Deska, EIB, presented an overview of the EIB’s advisory services, particularly those available through the Urban Advisory Division. These services assist municipalities in project development and implementation, with tools tailored for both the public and private sectors.  

Among these services is JASPERS, a partner platform that helps cities structure sustainable investments. Another key programme is ELENA, which provides grants typically between €1 and €3 million to cover up to 90% of project preparation costs. ELENA does not fund capital expenditure directly but is invaluable in laying the groundwork for successful infrastructure projects. Projects funded through ELENA must have clear, measurable goals. During the discussion, the presenters noted that pilot projects, such as automated shuttles, may be eligible for support if they serve a defined preparatory function. If uncertainty exists, the EIB can consult its extensive project database to recommend more effective, proven approaches.

Case studies: Lublin, Poland and Oradea, Romania 

Leonor Berriochoa and Angeliki Kopsacheili, EIB, presented the city of Lublin, Poland, as a case study, due to the EIB’s long-standing cooperation and a proven track record of effective implementation. The city has successfully completed two municipal infrastructure framework loans (2010 and 2012), and a third was recently appraised. Together, these have mobilised approximately PLN 1.5 billion, with 60% co-financed by EU grants and 30% covered by the municipal budget, supported through EIB loans. 

Key actions included the development of an intermodal transport hub, physically integrating urban, regional, and long-distance transport services. Previously separated bus and rail stations located 3 km apart were consolidated into a single facility adjacent to the railway station. This hub now features bus platforms for 40+ lines, ticketing, park-and-ride, bicycle storage, and pedestrian connectivity, significantly improving travel time, operational efficiency, and user experience. 

Social infrastructure also featured prominently. Lublin delivered 120 new social housing units and a model public school. Urban regeneration efforts revitalised the main square and green areas, including the €10M redevelopment of People's Park, aligning with climate resilience goals. 

Ana-Maria Mitroi Ciobicat, EIB, presented the case of Oradea, Romania, as a medium-sized city supported by the EIB. Oradea contributed to a €144 million investment programme with a €40 million framework loan from the Bank, combining financing with advisory to drive urban transformation in a medium-sized city. Rather than simply blending funds, the EIB helped shape a coherent project pipeline aligned with city strategies and EU policy objectives. 

The programme covered 14 projects, including sustainable urban transport, green development, and energy efficiency. Around 65% of investments contributed to climate action, with an estimated annual CO₂ reduction of 2,000 tons. Public transport modernisation made up nearly half the pipeline, replacing over 30 diesel buses with zero-emission vehicles and upgrading related infrastructure. 

Urban regeneration improved access to green spaces for 90% of residents, while social benefits included more inclusive and accessible public infrastructure. With varied project maturity, the EIB’s advisory services supported technical readiness, helping the city assess technologies, feasibility, and procurement. The Oradea case showcases how EIB lending can be a platform for policy alignment and institutional strengthening, not just funding. 

Conclusion

Overall, the session offered a comprehensive overview of the EIB’s role in supporting sustainable urban transport and infrastructure development. Through a mix of financing instruments, advisory services, and illustrative case studies, participants were able to receive practical insights into how their cities and regions can engage with the EIB.  

Those presenting on behalf of the EIB were keen to state that they remain available for any queries from interested municipalities and regional public authorities. When asked for their key takeaway from the session, they stated that getting in touch sooner, at the earliest stages of a potential project, is preferable to later, when exploring all available financing options. The Regions Working Group will next meet in July to share members’ experiences with Bus-Rapid Transit systems (BRTs) and engage in a group discussion around future webinars and activities.