Brussels, 11/02/2011 (Agence Europe) - Having granted a loan of €300 million to Energias of Portugal to re-fit two hydroelectric power stations (EUROPE 10313), the European Investment Bank (EIB) on Thursday 10 February gave its agreement to a loan of €200 million to Banco BPI (BPI), which is designed to support investment projects implemented by small and medium-sized enterprises (SMEs). Subsequently, on Friday 11 February, it went on to grant a loan of €75 million to the electricity sector in Portugal.
The credit line of €200 million will be used to fund small-scale projects, mainly in industry, tourism and services, and particularly in the areas of research and development, energy and environmental protection. Infrastructure projects, most of which have been implemented by the local authorities, may also benefit. Most of the projects supported will be situated in areas of Portugal which qualify for the convergence objective. The EIB will pay up to 100% of the total cost of the projects undertaken by SMEs (within an upper limit of €12.5 million per project) and up to 50% of the cost of other kinds of projects. The EIB states that the loan “will help to strengthen the productivity and competitiveness of SMEs, reducing the impact of the current economic crisis on these enterprises, and will foster regional development and economic and social cohesion in Portugal”. Banco BPI will enjoy advantageous financial conditions, which it will pass on to its borrowers.
The loan of €75 million for REN Rede Eléctrica Nacional S.A. is designed to support its five-year investment programme (2009-2013), the objective of which is to reinforce and extend the electricity transport network throughout Portugal. Amongst other things, the programme provides for the installation of 708 km of new high-power lines and the refurbishment of 130 km of existing lines. In a press release, the EIB states that this responds to the energy policy objectives of the EU and will contribute to the economic development of the so-called “convergence” regions. (O.L./transl.fl)