Sep62017

EIB supports Polish energy and science with almost EUR 1bn

EU
ENERGA Hybrid Bond

ENERGA Hybrid Bond

ENERGA Hybrid Bond

30/08/2017

Energa

[Poland]

  • EUR 250m for modernisation of Energa’s distribution network under Juncker Plan
  • EUR 730m for research and development in Poland under InnovFin financial instrument

At the Economic Forum in Krynica Zdrój the European Investment Bank (EIB) has confirmed its strong commitment to supporting the Polish economy by providing financing totalling almost EUR 1bn for strategic investments in energy and science. In line with its aim of promoting competitive and secure energy, the EIB has provided EUR 250m of financing to Energa for the upgrading and extension of its electricity distribution network in northern and central Poland. This financing, in the form of innovative hybrid bonds, is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker Commission’s Investment Plan for Europe. A further two EIB loans are providing Poland with EUR 730m for research, development and innovation activities in research institutes, universities and enterprises. The latter operations are the first to be supported by InnovFin Science, a facility with the financial backing of the European Union under Horizon 2020, its research and innovation programme.

During the signing ceremony held at the Economic Forum in Krynica Zdrój, Deputy Prime Minister Mateusz Morawiecki said: “Investments constitute one of the pillars of the government’s Responsible Development Strategy. We would like to fully utilize available financing sources both in terms of small and medium enterprises, as well as large-scale government initiatives. For the last year and a half the Ministry of Economic Development has been coordinating and monitoring the implementation of the Juncker Plan in Poland and we are very happy to observe and report its effects. Data published by the European Investment Bank shows that Poland ranks 6th among all EU countries in terms of transforming funds from this source into investments. The current contract is third in a series of contracts supporting government investment projects. The total value of the three investments – Energa, Tauron and Przewozy Regionalne – altogether amounts to PLN 5.6bn.” He added: “The EIB remains our main partner among the international financial institutions, so I am very happy to sign two new loan agreements with the Bank, which will provide financing for R&D projects, essential for economic growth. The new loans together with the previous ones granted since 2004 for Polish research, development and innovation projects amount in total to some EUR 7bn. They contribute to advancing the development of almost every scientific discipline: from quantum optics technologies to supramolecular chemistry and 3D holographic imaging.”

EIB Vice-President Vazil Hudák, responsible for the Bank’s activities in Poland, said: “Supporting competitive and secure energy is one of the EIB’s priorities, so we are glad to finance Energa’s modernisation programme, as it will improve the reliability and quality of electricity supply. The hybrid bonds under the Juncker Plan are again proving to be a successful means of innovative financing to boost investments in the energy sector in Poland.” The Vice-President added: “We are also proud to continue our backing for Polish research and innovation, as they play a key role in driving growth in Europe, ensuring its long-term competitiveness and creating high-value jobs. We aim to strengthen research, promote efficiency, foster better links between research and industry, and leverage more private investment for applied development and innovation activities in Poland and across Europe.”

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “Today’s agreement in Poland under the InnovFin Science programme is momentous. With a fresh injection of EUR 730m for research, development and innovation activities, research institutions in Poland will see huge benefits. I am also proud that the Juncker Plan is helping to upgrade and improve the electricity networks in Poland. The European Fund for Strategic Investments is already set to trigger more than EUR 225bn in investment across the EU, with 26 projects already approved in Poland. I encourage project promoters and small companies seeking financing to make the most of the support offered by the Juncker Plan.”

Daniel Obajtek, CEO of Energa SA, commented: “The hybrid bonds’ issuance is the third project implemented in cooperation with the European Investment Bank. The funds raised will be allocated to investment in the distribution segment and to the expansion and modernisation of the power grid, including the strengthening of its reliability. This is a priority investment direction for us, which will allow us to provide high quality services to our customers”.

Energa will use the funds obtained from the issue of hybrid bonds to implement its priority investment programme in 2017-2019. The company estimates its total capital expenditure in this period to be in the order of EUR 814m. The innovative nature of the hybrid bond product stems from its equity-type features and partial equity recognition by rating agencies. The main objective of Energa’s programme is to increase the security of electricity supply while limiting network losses and improving the quality of service. The project will also include investments in the connection of renewable energy sources (mainly in low and medium voltage) to increase the hosting capacity of the network. Apart from these tasks, investments in smart meters and network automatisation as well as in new connections in the distribution network are also planned.

As for the support for Polish science under the new InnovFin Science – EU Finance for Innovators facility targeting scientific projects, an EIB loan of EUR 425m will finance the statutory research tasks performed by all categories of scientific and academic staff employed by Polish public universities and research institutes in the majority of scientific disciplines. The EU bank is lending a further EUR 305m for R&D project grants, which will be awarded by the National Science Centre and the National Centre for Research and Development through open calls to PhD students, post-doctoral fellows, senior scientists and research consortia. These projects will concern either basic or applied research and will be implemented in public research institutes, universities and enterprises across Poland. The main objective of this EIB financing operation is to leverage applied R&D carried out by enterprises and the innovative activities of companies, as well as to foster better links between research and industry.

Some 150 000 researchers, technicians and other research support staff work in the Polish public science sector. Both projects will be carried out in 2017 and 2018 and will not only help to maintain current employment in the R&D sector in Poland during this period but, more importantly, will open up a great number of new career opportunities, in particular for young researchers. Together with the 16 previous loans extended since 2004 to co-finance the Polish science sector, the loans signed today underpin the EIB’s long-term commitment to supporting Polish research, development and innovation programmes at various levels in a range of disciplines.

Background information:

About the European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. Last year, the EIB provided loans amounting to EUR 4.44bn for Polish projects.

About the Investment Plan for Europe

The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects. On 14 September 2016, the Commission proposed extending EFSI by increasing its firepower and duration as well as reinforcing its strengths.

About InnovFin Science

InnovFin Science is one of a range of products introduced under “InnovFin – EU Finance for Innovators”, a new generation of financial instruments and advisory services launched by the European Commission and the European Investment Bank Group (EIB and EIF) under Horizon 2020, the EU research programme for 2014-20. InnovFin Science aims at supporting R&I investments by public or private entities such as research institutes, universities and research organisations, including the financing of buildings and other infrastructure directly related to R&I activity. InnovFin Science will be delivered directly by the EIB in the form of debt or equity-type operations from EUR 25m.

About Energa

ENERGA Group is one of the four largest power groups in Poland and one of the three largest electricity suppliers in Poland. Its core business entails distribution, generation and sales of electricity, heat and gas.

Sep62017

News story: UK sets clear objectives for continued science success

HM Government

The Government’s paper on science and innovation will lay out a range of mechanisms and areas for future collaboration that the UK will seek to discuss with the EU as part of the negotiations on the future partnership.

It also considers areas where there are precedents for countries outside the EU to participate in pan-European programmes such as Galileo and Copernicus.

The programmes and mechanisms include space programmes including Space Surveillance and Tracking.

The UK space sector is worth over £11.8 billion to the UK economy, and employs at least 37,000 people around the country. Our work in the European Space Agency has put Tim Peake in space and is enabling us to explore Mars.

The paper will also lay out projects on nuclear research including:

  • the Oxfordshire-based JET (Joint European Torus) which is funded by the EU’s Euratom Research and Training programme and supports 1,300 jobs in the UK, 600 of which are highly skilled scientists and engineers; and

  • ITER (International Thermonuclear Experimental Reactor)

The UK will also continue to collaborate with European partners through international organisations that are not part of the EU for example the EUREKA network that helps SMEs collaborate on R&D across borders and the European Organisation for Nuclear Research (CERN), the European platform for particle physics and the fundamental laws of nature of which the UK was a founding member.

Other initiatives include the European Medicines Agency and Horizon 2020, which has over 7,300 UK participants so far and has seen many successes through collaboration, including through the Innovative Medicines Initiative:

  • Through the SUMMIT project, UK researchers and companies have helped shorten clinical trials on diabetes, making new treatments available to patients sooner
  • Through the HYFIVE project the UK together with other EU and international partners has taken hydrogen fuel cell vehicles to market, moving Europe towards a competitive low-carbon economy and providing cleaner air to all
  • The UK has worked with other EU and international partners to train young researchers to exploit big data through the LONGPOP project
  • Through the PAL project the UK has collaborated to build robots that interact with children to help manage their diabetes.

Secretary of State David Davis said:

As the Prime Minister set out in her Lancaster House speech, a global Britain must be a country that looks to the future. That means being one of the best places in the word for science and innovation.

This paper sends a clear message to the research and innovation community that we value their work and we feel it is crucial that we maintain collaboration with our European partners after we exit.

We want to attract the brightest minds to the UK to build on the already great work being done across the country to ensure that our future is bright and we grow this important sector.

Science Minister Jo Johnson said:

From space exploration and developing better and safer medicines, to nuclear fusion research, the UK and Europe has a long history of close collaboration to meet the world’s great challenges. It’s in our mutual benefit to maintain this successful partnership, and this paper clearly outlines our desire to have a full and open discussion with the EU to shape our joint future.

With science and innovation at the heart of our Industrial Strategy and our additional investment of £4.7 billion for research and development, we are ensuring we are best placed to continue being at the forefront of new discoveries, and look forward to continuing that journey with the best minds across Europe.

The UK is a world leader in science and innovation and the paper also states that we want to continue to be a hub for international talent and sets out that it is vital we ensure research communities can continue to access the high level skills that support the science and innovation sector. It will say that the UK will seek to agree a system for continued recognition of professional qualifications, and will continue to welcome the brightest and best after we exit.

The paper makes clear that the Government is committed to maintaining the UK’s status as a world leader in science and innovation and strengthening its science and research base, which already includes four of the world’s top ten universities, a world class intellectual property regime and more Nobel Laureates than any country outside the United States.

Read Collaboration on science and innovation: a future partnership paper

Sep62017

Press release: Government Hub to be built in the heart of Leeds

HM Government

HMRC, working with the Cabinet Office, will take approximately 378,000 sq ft at Wellington Place on a 25 year lease. This is the biggest ever commercial property letting in Leeds. The deal will see 6,000 civil servants working in a state-of-the-art new city centre premises in 2020.

Government Hubs will transform central government’s offices by accommodating many different departments in shared buildings in London and in the regions. The programme will deliver taxpayer savings, act as a catalyst for regional growth and ensure the delivery of the best quality services to the public.

There will be 18-22 strategic hubs across the UK, located in major towns and cities and accessible by a range of excellent transport links. Hubs will be modern, sustainable buildings, supported by smart technology and shared services.

Wellington Place, close to Leeds Station, will deliver high quality offices for civil and public servants, including for HMRC, which will operate one of its 13 regional centres from Wellington Place.

NHS Digital will also relocate to Wellington Place, which will support the organisation’s move to enable smarter and more flexible working, and collaboration.

Minister for Government Resilience and Efficiency, Caroline Nokes, said:

The Civil Service is a great place to work and enabling civil servants to have high quality and modern working environments will ensure that we work productively and deliver the best services to the public across the country.

The Leeds hubs will be a catalyst for growth in the surrounding cities and towns, helping rebalance the UK economy and underpin our strategy for a strong, well-connected Northern Powerhouse that can continue to provide good-quality jobs and economic growth across the region.

HMRC Chief Executive Jon Thompson said:

We are delighted to be part of the new UK Government Hub in Wellington Place, Leeds. This is another step in HMRC’s transformation into a modern digitally advanced tax authority.

It’s the beginning of a process that will see around 3,800 colleagues come together in state-of-the art facilities, enabling closer working relationships and increasing our effectiveness in collecting taxes. It will also make HMRC an important contributor to the economy and to communities in and around Leeds.

Chief Executive of NHS Digital, Sarah Wilkinson, said:

We are delighted to co-announce our involvement with the new Leeds Government hub, this is a significant investment in the city and reinforces their long-term commitment to Leeds.

As one of Leeds major employers, it is an opportunity for greater consolidation of our Leeds estate when completed and will enable us at NHS Digital to build on our existing strong relationships with the wider NHS and government departments.

Over the past few years, Leeds has established itself as the major digital city in England with a thriving technology sector, which NHS Digital is proud to be a part of. The work NHS Digital does here in Leeds affects the lives of everyone in the country. Being part of the Government Hubs programme in Leeds is a great opportunity to work in partnership with both national and local organisations.