Donors and the EBRD 2015
As we celebrate 25 years of advancing transition to open-market economies from Morocco to Mongolia, we also celebrate our partnerships with the donors that have made this work possible along the way.
In fact, the first donor assignment to support the EBRD was signed on 1 April 1991 by Norway and the United States of America for environmental and legal reform projects, a few days before the establishment of the Bank.
Our common engagement with donors during this time has made a real difference to millions of people in the EBRD region. As countries rose to the challenges of building a new model of economic growth and development we supported their endeavours, and we still do.
Together with our donors, we promote private sector competition underpinned by the rule of law, a sustainable approach to modernising infrastructure, the efficient use of resources, and an environment that is conducive to growth.
Continuous donor support allowed us to be at first pioneers in our region, then advocates of the potential these countries have to compete in the global economy. From donor-funded technical assistance for skill transfers to grants that boost our lending capacity, we offer a variety of instruments to promote economic transition. For example, risk-sharing facilities support financial institutions and their potential clients, and concessional co-financing mobilises large financial resources with affordable repayment terms. Over the years, donors have prompted us to introduce new ideas, policies and priorities that touch on all aspects of the Bank and its operations.
In 2015, donor contributions to the EBRD totalled over €358 million, a five per cent increase on the previous year. Half of this funding was provided by the European Union, our largest contributor over 25 years. But bilateral donor partnerships have been the bedrock of our external support from the outset. They offer steady levels of contributions year on year and now involve more donors from our region. Climate funds remain an important component of the donor equation, growing significantly during the past five years. These numbers reflect the robust relationship we have developed with our donors, who supported every achievement of the past year.
Donors have provided €1.2 billion for our green agenda over the past decade and in 2015 they backed the approval of our Green Economy Transition approach. The accreditation of the Bank to the Green Climate Fund in 2015 was another notable step, drawing us into the emerging architecture of global climate finance and allowing us to deliver even more high-calibre projects in the future.
In our first three years of operations in the southern and eastern Mediterranean region, and with significant donor support, EBRD investments across all sectors reached €3.4 billion.
During 2015, with the Small Business Initiative in full swing, we delivered 144 projects and established a new multi-donor fund to channel financing and business advice to thousands of small firms. We also prioritised the development of vital infrastructure and the financial sector in our early transition countries (ETC), under the ETC Initiative.
The EBRD’s increased focus on policy dialogue is yielding results in many countries. Examples include donor support to Ukraine’s first Business Ombudsman Council and to investment councils in the Western Balkans, and the adoption of our first gender strategy to promote more inclusive development.
These achievements show how donor support is a powerful enabler of investment operations and policy reform that bring sustainable change.
Within the Bank, too, we have embraced a culture of change and modernisation. 2015 saw further progress in our reform of grant management. We set out a five-year vision for grant co-financing, and improved results-based reporting, planning, and the forecasting of grant needs. We also ended the use of tied aid, thereby aligning ourselves with best international practice.
The partnership with our donors remains crucial for the EBRD region. To succeed in our ambitious plans for the years ahead, more support from current and new donors will be vital as we continue working together to improve people’s lives.
22million + passengers per year benefit from modern public transport in early transition countriesTweet this
863donor-funded projects for €405million in 2015Tweet this
21,600+ JOBS Created through SME advisory projects (2013-15)Tweet this
€358.6million total donor funds provided in 2015Tweet this
€38EBRD investments mobilised in 2015 for each €1of donor fundingTweet this
700+bankers participating in trade finance trainingTweet this
€93.6million grants to support early transition countries fund since 2004Tweet this
€179.3million largest donor contribution, from European unionTweet this
Donor governments and partners make a vital contribution to the EBRD’s work. They provide funds that catalyse our investments and support our other activities in countries from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean (SEMED) region.
Donors are particularly active in those parts of the EBRD region that face the biggest obstacles to recovery and growth and in the infrastructure, sustainable energy and small business sectors.
To help improve people’s lives, donors offer a range of funding instruments, including technical cooperation (TC) and non-TC grants.
TC grants focus on specific tasks in support of a particular project or programme such as investment preparation and implementation, training, sector support, building a client’s know-how and technical skills, policy dialogue or other forms of assistance.
Non-TC grants take various forms:
- investment grants that provide an alternative source of funding for projects where there may be constraints on the use of loans
- performance fees and incentives that encourage financial institutions to extend EBRD loans to sub-borrowers who are likely to achieve priority objectives set by the Bank and donors
- risk-sharing facilities to support transactions funded through initiatives such as credit lines to financial institutions for on-lending to micro, small and medium-sized enterprises
- concessional loans used by the EBRD to finance projects where donors provide part of the overall financing package in the form of subsidised lending.
Donor support thus adds value to the EBRD’s work, by enabling investments, deepening our impact in the region and making it more sustainable.