EIB signs framework agreement with Principality of Andorra to finance investment projects and provide technical assistance

The Principality of Andorra and the European Investment Bank (EIB) have signed a framework agreement enabling the Bank to provide financing and technical assistance for investment projects in the principality.

The Principality of Andorra will be able to fund projects in different sectors, including the digitalisation and transformation of government facilities, the promotion of clean energy transition initiatives and the support of SMEs.

In the longer term, the financing package should improve cross-border connectivity and integration with neighbouring countries.

The framework agreement was signed by EIB Vice-Presidents Ambroise Fayolle and Ricardo Mourinho Félix after approval by the Bank's Board of Governors, followed by a formal signature in Brussels by H.E. Mrs Esther Rabasa Grau, Ambassador of the Principality of Andorra to the European Union.

Andorra has always been at the core of European history, with longstanding political, economic, social and cultural relations with other European countries - especially with the Member States that border it, and the European Union at large.

Strengthening the principality's participation in the single market will set it more securely on its path towards Europe. The EIB's technical knowledge and financial support will create opportunities for Andorra to further align with EU standards, and the projects financed (particularly those that enhance connectivity) will have a positive impact on the country's relationship with the European Union. Cooperation with the EIB Group is also expected to have a strong impact in terms of social, economic and geographical cohesion.

According to EIB Vice-Presidents Ambroise Fayolle and Ricardo Mourinho Félix, "Projects that Andorra could develop in cooperation with the EIB would have a positive impact on its relationship with its EU neighbours France and Spain, enhancing connectivity in the underserved rural mountainous areas of the three bordering countries."

H.E. Ambassador Esther Rabasa emphasised that "the signature of the framework agreement between the Principality of Andorra and the EIB is the culmination of a process that started in June 2020, after more than two years of intense exchanges between the two parties. This agreement will pave the way for Andorra to participate in financing mechanisms and receive technical expertise, and we are confident that this will open up new perspectives and opportunities for Andorra and the surrounding area."

Background information

About the EIB

The EIB's activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion. Since 2019, the EIB has accelerated its transformation into a climate bank by committing to devote at least 50% of its financing to investments that help fight climate change and mitigate its effects, starting in 2025. The EIB works closely with other EU institutions to foster European integration, promote the development of the EU and support EU policies in over 140 countries around the world.

About Andorra and the EIB

The process of Andorra's integration into the EIB began in June 2020, following a formal request by Andorran Minister of Finance and government spokesperson Èric Jover. The EIB was able to approve this cooperation thanks to Andorra's efforts towards international homologation, including its choice to join the International Monetary Fund and the Council of Europe Development Bank.

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