GreenTown collaborates with European Investment Bank – Millions for making refinery green

POSTED: 08/20/13 12:25 PM

WILLEMSTAD – GreenTown Curacao teams up with the European Investment Bank (EIB) to replace the heavily polluting oil refinery with a lively green waterfront city. The €5 billion ($6.4 billion) cost of GreenTown is consistent with the priorities established for the European Investment Bank’s lending activity for their overseas countries and territories portfolio.

GreenTown Chairman Andres Casimiri handed over a copy yesterday of the EIB’s supporting letter to the management of the Central Bank of Curacao and St. Maarten.

As Europe’s largest multilateral borrower and lender by volume, the European Investment Bank provides finance and expertise for sound and sustainable investment projects that contribute to furthering EU policy objectives. While more than 90% of EIB’s activity is focused on Europe, they also implement the financial aspects of the European Union’s external development policies. Curacao falls within that scope, and the European Investment Bank will play a significant role in the development of GreenTown.

While the vast majority of EIB’s financing is through loans, they also offer guarantees, microfinance, and equity investment. EIB support will also help unlock financing from other sources, particularly from the EU budget. These sources will be combined with private investment to form the full financing package. EIB also provides borrowers with administrative and project management assistance, which facilitates the investment of funds to implement the project. We emphatically like to reiterate that NO government funds are needed to build GreenTown.

The EIB supports projects that make a significant contribution to growth, employment, and environmental sustainability, as well as social and economic cohesion in Europe and beyond its borders.

EIB priorities, as defined in their operational plan, are: supporting the creators of 80% of new jobs (small and medium sized enterprises SMEs), addressing economic and social imbalances between the regions (cohesion), protecting and improving the natural and urban environment (environmental sustainability), promoting innovation through investment in ICT and human and social capital (innovation), linking regional and national infrastructure of transport and energy (Trans-European Networks) and supporting a competitive and secure energy supply (sustainable energy)

All of the projects that the EIB finances must not only be financially viable, but also comply with strict economic, technical, environmental, and social standards. EIB’s corps of 300 engineers and economists screen every project, before, during, and after they finance the project

In June of this year, EIB in Luxembourg reviewed the plans for GreenTown Curacao in detail with, which has resulted in receiving their letter of support for the project yesterday. This demonstrates that GreenTown Curacao has met their strict criteria. “We cannot think of a better institution than the European International Bank to lend a hand in helping make GreenTown a reality,” GreenTown Chairman Andrés Casimiri said.

GreenTown is said to create more than 16,000 new jobs, significantly increase government revenues, and be powered solely by sustainable energy sources. In the future, this new city will provide tens of thousands of people with the opportunity to find clean and sustainable jobs and housing.

The refinery is owned by the state-run enterprise Refineria di Kòrsou, and operated under lease by Petróleos de Venezuela S.A. (PDVSA) until 2019, but neither have identified a third investor to provide the $3 billion needed to modernize the 100-year-old decaying refinery.



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