The EBRD relies on the support of donors to fulfil its transition mandate. More than ever, these partnerships contribute proactively to our strategic agenda. Since the establishment of the Bank, we have shared with our donors the same democratic values and economic development goals. In 2014, as we commemorated the 25th anniversary of the fall of the Berlin Wall which set the scene for the Bank’s existence, donor partnerships continued to help us reach out to entrepreneurs, policy-makers and communities in our region to improve their environment and their economies.
Donor contributions play a vital role in addressing transition gaps, providing grant co-financing and deploying technical cooperation (TC) funds—for example, to enhance the skills of local bankers and commercial lawyers, to support project investment and to develop risk-sharing financial instruments.
For instance, thanks to donor commitments a vital hydropower plant in Tajikistan is being refurbished to secure a source of green energy capable of coping with the effects of climate change; in Albania many businesswomen will have easier access to advice and loans through local bankers who we have trained to provide ad-hoc financing; and in Morocco we are supporting the expansion of drinking water supply services and encouraging local community involvement through a stakeholder-participation programme.
Such projects illustrate how EBRD bilateral, multilateral and global partnerships are at the heart of our operations. Grant funds, which totalled over €340.6 million* in 2014 (another record year of support), are an integral part of our business model. Both our established activities, such as the Early Transition Countries (ETC) Initiative, and new programmes launched in 2014 – such as the Small Business Initiative (SBI), the Infrastructure Project Preparation Facility and the Investment Climate and Governance Initiative – are reliant on donor support. We also aim to be more involved in policy dialogue to drive systemic change, and these ventures will likewise rely on donor funding.
Donors help us make a real difference across the range of sector activities, from infrastructure financing to small business support, from developing financial institutions to addressing climate change. With regard to climate finance, EBRD investments reached a record €3 billion in 2014 and have amounted to over €15 billion since the launch of the Bank's donor-backed Sustainable Energy Initiative (SEI). Our involvement of the private sector, policy regulators and the donor community in tackling this pressing challenge makes the EBRD an important global player.
In addition, donors have strongly supported the Bank’s engagement in the transition of the southern and eastern Mediterranean (SEMED) region, where in 2014 investment generated by the EBRD reached a milestone figure of €1.5 billion. Meanwhile, in response to a volatile political and security environment in Ukraine during the year, donors set up a new multi-donor account in support of reforms and sustainable growth in the country.*This amount does not include nuclear safety donor funds, which are managed separately.
Donors help shape the Bank’s policies and practices. We continue to reform our donor-related management processes to ensure that grants have the greatest impact for beneficiaries and reflect donors' development priorities. Key achievements in 2014 included revising our cost-sharing policy to secure client commitment to donor-funded projects. To improve our funding structures, we merged a number of funds and are closing down inactive accounts. We also introduced standardised legal frameworks for relations with donors such as Austria and Switzerland, and are preparing a similar arrangement with the European Union (EU), the EBRD's largest donor. Furthermore, we set up the Post-Graduation Special Fund which places an emphasis on business development activities to support cross-border investment in eligible EU-8 countries*. We are also improving the measurement and impact assessment of our work on the ground. These efforts will continue apace into 2015.
Donor support will also be crucial for the medium-term directions that the Bank set in 2014 to re-energise transition. In order to encourage stronger growth and higher living standards, the Bank will focus on making market reforms more resilient, on promoting greater regional and international integration and providing an effective response to challenges such as climate change and food security.
This report presents an overview of the Bank's work in support of economic development and free-market transition. It is a tribute to the donors that help us and to the people with whom we invest to achieve a more prosperous and sustainable future.* The EU-8 refers to the eight EBRD recipient countries that joined the EU in 2004 (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic and Slovenia). The Fund is available to those countries which have declared a clear intention to graduate in a defined period of time or where graduation has already occurred.
support the EBRD’s approach towards sustainable development of market-ORIENTED economies
of donor funds provided
donor-funded technical projects
small and medium-sized enterprises across 25 countries helped with advisory services
new jobs created through SME advisory projects (in 2012-14)
people benefited from improved public transport in the early transition countries
estimated reduction in CO2 emissions last year, comparable to the annual emissions of approximately three million cars
donor-supported credit lines operated via financial institutions in 24 countries
agribusinesses in Ukraine trained in sustainable farming methods
EBRD-facilitated public-private dialogue enabling policy reforms in the agribusiness sector ongoing in seven countries
of EBRD projects promoted environmentally sound and sustainable development
people gained improved water services in Central Asia
Women in Business programmes active in
loans through energy efficiency credit lines helped save 12 million MWh per year – the average annual electricity consumption of Bosnia and Herzegovina
Since 1992 more than 40 donors have pledged over
to EBRD-managed nuclear safety funds
EBRD Shareholder Special Fund work plan for 2014 approved.
Bank coordinates Deauville Partnership IFI Coordination Platform for SEMED countries and becomes accredited agency of UNFCC-mandated Adaptation Fund.
SEMED Multi-Donor Account (MDA) contributors meet in Jordan.
Establishment of EBRD Post-Graduation Special Fund for the EU-8 countries (eight transition-country members of the European Union).
Annual donor meeting held in Warsaw, Poland.
Allocation of €10 million approved for Post-Graduation Special Fund. EBRD and IFIs coordinate response to Balkan floods.
Establishment of Global Environment Facility Special Fund.
ETC Fund donors meet for their assembly in Georgia.
Approval of EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account.
EU contributes €24.3 million to promote sustainable energy in Turkey.
Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund is set up for Armenia, Georgia and Moldova.
EBRD-Ukraine Stabilisation and Sustainable Growth Multi-Donor Account becomes operational.
Philippe Le Houérou appointed EBRD Vice President, Policy.
Review of cost-sharing policy between donors and clients approved.
EBRD approves further funds for New Safe Confinement structure in Chernobyl, Ukraine.
Bank applies for accreditation to the new Green Climate Fund.
E5P donors pledge over €21 million for Armenia, Georgia, Moldova and Ukraine.