Report from the Commission to the European Parliament and the Council on Operations carried out under the eib external mandate in 2008 SEC(2010) 186 final
Date: 2010-03-04
Institutions: European Commission
Subjects: Community loan, EU financing, European Investment Bank, credit guarantee, financial control, foreign policy, interinstitutional cooperation (EU), international cooperation, report

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EUROPEAN COMMISSION 

Brussels, 4.3.2010 
COM(2010)74 final 

REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2008 

SEC(2010) 186 final 

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REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2008 

TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

4. 

INTRODUCTION........................................................................................................ 3 

FINANCING OPERATIONS...................................................................................... 4 

Overview of EIB financing volume in the regions covered by the Decision............... 4 

Contribution to EU policy objectives........................................................................... 5 

Sectoral breakdown...................................................................................................... 7 

Impact and value added of EIB operations .................................................................. 8 

COOPERATION WITH THE COMMISSION......................................................... 10 

COOPERATION WITH INTERNATIONAL FINANCING INSTITUTIONS ....... 10 

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1. 

INTRODUCTION 

Decision  633/2009/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  (the 
‘Decision’), which replaces Council Decision 2006/1016/EC granting a Community guarantee 
to  the  European  Investment  Bank  (EIB)  against  losses  under  loans  and  loan  guarantees  for 
projects outside the Community, requires the Commission to report annually to the European 
Parliament  and  Council  on  EIB  financing  operations  carried  out  under  guarantee,  based  on 
yearly reports provided by EIB. 

The  present  report  (the  ‘Report’)  reviews  EIB  financing  operations  carried  out  in  2008 
(“operations under mandate”) as well as the contribution of EIB financing operations to  the 
fulfilment  of  the  external  policy  objectives  of  the  Community,  taking  into  account  the 
operational  objectives  of  the  EIB.  Outside  the  Union,  the  Bank  also  lends  from  its  own 
resources and at own risk under the framework of Article 16 of its Statute. The Report also 
provides a summary of these operations, in order to complete the picture of EIB activity in the 
regions  covered  by  the  Decision.  Moreover,  it  reports  on  cooperation  between  EIB  and  the 
Commission,  and  between  EIB  and  other  International  Financial  Institutions  (IFIs)  and 
bilateral donors. 

The  Decision  requires  a  substantive  mid-term  review  of  the  EIB  external  mandate  to  be 
carried out by 2010, supervised by a Steering Committee of Wise Persons. As also required 
by the Decision, an external evaluator contracted by the Commission is currently performing 
an  evaluation  in  the  context  of  this  mid-term  review.  Drawing  upon  the  evaluation  and  the 
recommendations of the Steering Committee, the Commission will present a mid-term report, 
accompanied by a proposal for amendment of the Decision, to the European Parliament and 
Council for co-decision no later than 30 April 2010. 

The  mid-term  review  will  provide  a  more  thorough  assessment  of  the  impact  and 
effectiveness of EIB operations under mandate than can be carried out in the context of the 
annual  Commission  reporting.  The  extent  of  cooperation  with  international  financial 
institutions  and  bilateral  donors  will  be  assessed  in  a  more  comprehensive  way  at  the  mid-
term review, as  called  for  in  Article  4(3) of the Decision. The mid-term  review  is based on 
interviews,  surveys,  case  studies  and  field  missions  by  the  external  evaluators,  EIB 
evaluation, and the wise persons. The content of the present Report has been adapted in a way 
so as to not duplicate the work being carried out under the mid-term review.  

The  Report  assesses  the  value  added  and  contribution  of  EIB  financing  operations  under 
mandate  to  the  fulfilment  of  the  external  policy  objectives  of  the  Community  following  a 
desk-review approach. The question of whether other operations than the ones carried out by 
EIB would have contributed in a more significant way to the same objectives falls outside the 
scope of the annual reporting. The Report looks at the value added of EIB projects signed in 
2008  under  the  Decision  as  assessed  by  EIB  during  the  project  selection  and  appraisal 
process.  Thus,  the  information  relates  to  projects  still  to  be  implemented,  the  outcome  of 
which is typically covered in ex-post evaluation reports produced on a regular basis by EIB’s 
evaluation department. 

More  detailed  information  and  statistical  tables on the above activities, including at project, 
sector,  country  and  regional  level,  is  provided  in  the  attached  Staff  Working  Document 

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(hereinafter  referred  to  as  the  “SWD”)1.  References  to  tables  in  this  report  are  to  the  SWD 
unless otherwise stated.  

2. 

FINANCING OPERATIONS 

2.1. 

Overview of EIB financing volume in the regions covered by the Decision 

–  Total  EIB  lending  signatures  in  the  regions  covered  by  the  Decision  –  including  both 
operations  under  mandate  and  EIB  own  risk  operations  –  remained  stable  at  around 
EUR 5.5 bn  in  2007  and  2008.  An  increase  of  9%  under  the  mandate  was  offset  by  a 
corresponding decrease of own risk operations.  

–  The  following  table  provides  an  overview  of  the  volume  of  EIB  financing  in  2007  and 

2008 in the regions covered by the external mandate. 

Table 1: EIB financing in 2007 and 2008 

Countries of 
operation 
(EUR million) 

Pre-Accession, 
of which 

- 2000-2007 
mandate 
- 2007-2013 
mandate 

Mediterranean, 
of which 

- 2000-2007 
mandate 
- 2007-2013 
mandate 
Eastern 
Europe, 
Southern 
Caucasus and 
Russia, of 
which 
- 2000-2007 
mandate 
- 2007-2013 
mandate 

Asia and Latin 
America 

- 2000-2007 
mandate 
- 2007-2013 
mandate 

South Africa 

- 2000-2007 
mandate 

Operations under mandate 

Comprehensive 
guarantee 

Political risk cover 
(1) 

Total 

EIB own risk 
operations 
(2) 

Total 

2007 

2008 

2007 

2008 

2007 

2008 

2007 

2008 

2007 

2008 

1.630 

1.094 

120 

915 

1.750 

2.009 

1.176 

1.444 

2.926 

3.453 

1.242 

- 

120 

- 

1.362 

- 

388 

1.094 

0 

915 

388 

2.009 

840 

1.103 

365 

92 

1.205 

1.195 

185 

33 

1.390 

1.228 

0 

- 

0 

- 

0 

- 

840 

1.103 

365 

92 

1.205 

1.195 

230 

170 

230 

- 

0 

170 

0 

0 

0 

0 

230 

170 

0 

0 

230 

170 

- 

230 

- 

0 

0 

170 

27 

0 

27 

88 

200 

398 

269 

425 

469 

500 

0 

925 

469 

- 

200 

120 

278 

- 

269 

120 

305 

- 

469 

73 

25 

130 

113 

203 

0 

0 

113 

203 

88 

- 

25 

- 

113 

- 

1 

SEC(2009)[…] 

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- 2007-2013 
mandate 

0 

73 

0 

130 

0 

203 

Total 

2.815 

2.640 

908 

1.406 

3.723 

4.046 

1.861 

1.477 

5.584 

5.523 

- 2000-2007 
mandate 
- 2007-2013 
mandate 

1.560 

- 

1.255 

2.640 

265 

643 

- 

1.825 

- 

1.406 

1.898 

4.046 

(1) These operations were referred to as 'risk sharing' operations under the 2000-2007 mandate 
(2) EIB own risk operations carried out under the following facilities 
- Pre-Accession Facility: financial envelope of EUR 19.5bn for the period 1998-2010 
- Mediterranean Partnership Facility II: EUR 2bn for 2007-2013 
- Facility for Energy Sustainability and Security of Supply: EUR 3bn for 2007-2013  

As regards operations under mandate, 2008 was the first full year of implementation of the 
current external mandate as the first loans under the Decision were signed in the second half 
of  2007,  following  the  signature  of  the  guarantee  agreement  between  the  Commission  and 
EIB in August 2007. 

EIB lending under the Decision reached EUR 4 bn in 2008, with cumulative signatures under 
the  Decision  attaining  EUR  5.9  bn.  However,  particularly  in  Eastern  Europe  and  Russia, 
planned  investment  projects  suffered  from  the  consequences  of  the  financial  and  economic 
crises. Moreover, the conflict with Russia in Georgia and the political/economic instability in 
Ukraine  prevented  certain  projects  from  being  pursued.  The  Commission  and  EIB  are 
currently  assessing  the  reasons  for  the  slow  progress  of  implementation  in  this  region, 
including possible constraints and limitations inherent to the mandate itself. 

In  2008,  64%  of  the  loans  signed  under  mandate  were  covered  by  a  Comprehensive 
Guarantee, while 36% benefited from Political Risk Guarantee cover. In terms of volume, 
Pre-Accession  countries  (EUR 915 mn)  were  the  most  significant  beneficiary  region  of  the 
Political Risk Guarantee.  

EIB lending at its own risk in the regions covered by the Decision amounted to EUR 1.5 bn 
in 2008, compared to EUR 1.9 bn in 2007. This represented 27% of EIB’s overall financing 
activities  –  mandate  and  EIB  own  risk  facilities  combined  -  in  these  regions.  Own  risk 
operations in the Pre-Accession countries, for which the Decision specifically encourages EIB 
to increase its operations without recourse to the Community Guarantee, increased by 23%. 
98% of operations at EIB’s own risk were carried out under the EIB Pre-Accession Facility. 
Turkey  was  by  far  the  largest  recipient  with  82%  of  lending  under  this  facility,  while  12% 
were  signed  in  Croatia  and  6%  in  Serbia.  The  focus  of  EIB  activity  was  on  private  sector 
operations, with credit lines (notably for SMEs) representing 64% of total signatures. In the 
Mediterranean  region,  two  own  risk  loans  totalling  EUR 33 mn  were  signed  in  favour  of 
private pharmaceutical research projects in Israel under the Risk Sharing Finance Facility, a 
joint Commission-EIB initiative. 

2.2. 

Contribution to EU policy objectives  

The  objective  of  EIB  operations  under  the  Decision  is  to  support  relevant  external  policy 
objectives  of  the  Community.  In  particular,  the  Decision  provides  for  some  specific  policy 
goals to be addressed through EIB external operations. Table 2 below presents a summary of 
the key objectives for EIB financing operations in the regions covered by the Decision.  

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Table 2: Summary of key objectives for EIB financing operations under the Decision 

Key Objectives under the 
Decision 

Energy - Security of Supply 

Protection of the Environment  

Private  Sector  Development, 
SMEs 

Infrastructure  Development, 
including extension of TENs 

Pre-Accession support 

Support of EU presence 

PA 

MED 

EAST 

ALA 

SA 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

The extent of EIB contribution to EU policy objectives targeted by the Decision is provided in 
the SWD. It should be noted that EIB operational objectives derived from EU policy goals are 
recognized  as  appropriate  measures  for  the  fulfilment  of  the  Community's  external  policy 
objectives.  This  is  particularly  relevant  for  Pre-Accession  countries,  where  the  broad 
definition  of  'Pre-Accession  support'  has  been  translated  into  EIB  lending  priorities  aligned 
with those within the EU. 

The  support  for  energy  security  and  the  protection  of  the  environment  are  common 
objectives  throughout  the  regions  covered  by  the  Decision.  The  region-specific  policy 
objectives and the corresponding financing activity realised in each region are detailed in the 
SWD. The following table provides the volumes of EIB operations signed in 2008 under the 
Decision in support of the above objectives and to sustainable communities. 

Table  3:  EIB  operations  signed  in  2008  in  support  of  energy  security,  protection  of  the 
environment and sustainable communities 

Energy security 

Protection of Environment 
- Tackling climate change 
- Reduction of industrial pollution 
- Water and waste water  

Sustainable communities (for reference) 
- Sustainable urban public transport 
- Urban renewal and regeneration 
- Urban infrastructure and public spaces 
- Social housing 
- Health care 

EUR m
403

661
541
55
65

1,389
819
300
50
150
70

To  ensure  the  secure  supply  of  oil,  gas  and  electricity,  EIB  investments  promoted  diversity 
with regard to energy suppliers and energy transportation routes. In this context, the extension 
of  Trans-European  Energy  Networks  to  third  countries  is  a  clear  priority  as  well  as  the 

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rehabilitation of existing and development of new infrastructure and networks in producer and 
transit countries. Improved energy efficiency and an enhanced use of renewable energy make 
a  decisive  contribution  to  achieving  sustainable,  secure  and  competitive  energy,  whilst 
reducing dependence on external supplies.  

Support to the protection of the environment and sustainable communities was provided via 
15 projects in all regions covered by the Decision. This represented EUR 2bn or 51% of total 
lending under mandate and included investments to fight the climate change, to improve the 
environment  and  health  and  to  promote  sustainable  communities,  in  particular  urban  public 
transport and urban renewal.  

More  generally,  for  all  the  projects  it  finances,  EIB  pays  special  attention  to  the  issue  of 
environmental  sustainability,  focusing  on  the  environmental  impact  assessment  of  the 
investments proposed and the adequacy of mitigation measures. In particular, climate change, 
biodiversity  and  eco-system  considerations  are  integrated  into  the  lending  policies  and 
practices of the EIB. A public consultation with internal and external stakeholders was held in 
2008 on the revision of EIB Statement of Environmental and Social Principles and Standards. 
Overall, the commitment of EIB to good practice based on EU principles and standards has 
been strengthened, especially in the field of climate change, social standards have been more 
explicitly linked to human rights, the common approach of EIB across all regions of activity 
has been highlighted, and generally the requirements of EIB have been clarified.  

2.3. 

Sectoral breakdown 

Table  4  below  provides  an  overview  of  the  regional  and  sectoral  distribution  of  EIB 
operations under the Decision in 2008.  

Table 4: Sectoral breakdown of operations signed in 2008 (EUR mn) 

Region 

Grand 
Total 

Energy 

Transports 

Urban 
infrastruct. 

Credit lines 
to SMEs 

Telecomm-
unications 

Industry & 
Services 

Water & 
sewerage 

Pre-Accession 
Countries 
(PA) 

Mediterranean 
countries 
(MED) 

Eastern 
Neighbours  & 
Russia 
(EAST) 

and 
Asia 
Latin America 
(ALA) 

South  Africa 
(SA) 

2,009 

303 

15% 

906 

45%  350 

17%  315 

16% 

0 

0% 

70 

3%  65 

3% 

1,195 

841 

70% 

247 

21% 

0 

0% 

52 

4% 

0 

0% 

55 

5% 

0 

0% 

170 

150 

88% 

0 

0% 

0 

0% 

0 

0% 

0 

0% 

20  12% 

0 

0% 

469 

101 

21% 

0 

0% 

0 

0%  100 

21%  269  57% 

0 

0% 

0 

0% 

203 

0 

0% 

0 

0%  150 

74% 

0 

0% 

0 

0% 

53  26% 

0 

0% 

Total 

4,045  1,394  34% 

1,153  29%  500  12%  467  12%  269 

7%  198 

5%  65  2% 

Constituting  34%  of  total  financing  under  the  mandate,  the  energy  sector  was  the  largest 
recipient of EIB loans in 2008. Besides addressing the increased demand for energy, owing in 

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particular to economic development and population growth, several energy projects in partner 
countries  supported  EU  policies  in  the  areas  of  energy  efficiency  and  climate  change  by 
providing access for the population to modern and more cost-efficient sources of energy. 

60% of energy financing was absorbed by power generation and transmission projects in the 
Mediterranean region where energy remains a major priority. In Ukraine, EIB co-financed the 
construction  of  an  electricity  transmission  line  enabling  connections  to  the  Trans-European 
Energy Networks (TEN-E). In Turkey and India, EIB granted loans to financial intermediaries 
to  finance  investments  in  the  fields  of  environment,  energy  and  climate  change  mitigation, 
including renewable energy and energy efficiency. Finally, in South Africa, EIB financed the 
construction of a production facility for thin-film photo-voltaic modules,2 which represent an 
important component for the renewable energy sector. 

Transport,  including  rail,  road,  port  and  urban  transport  infrastructure,  represented  29%  of 
total lending under the mandate in 2008. The majority (71%) of the loans in transport sector 
were  granted  in  Turkey,  for  the  financing  of  large  urban  public  transport  projects.  In  the 
Mediterranean,  the  majority  of  lending  supported  investments  linked  to  the  upgrading  of 
infrastructure  with  a  view  to  making  road  transport  axes  more  rapid  and  effective.  The 
development  of  transport  axes  linking  to  TENs  comprised  three  projects  in  the  Western 
Balkans representing 7% of the overall transport lending in 2008. 

Urban  infrastructure  was  the  third  largest  sector  and  benefited  from  EUR 500 mn  EIB 
financing in 2008 (corresponding to 12% of total lending). These projects typically supported 
the objective of promoting sustainable communities and comprised mainly the strengthening 
of public buildings in Turkey and Serbia as well as the financing of affordable social housing 
and related urban infrastructure in South Africa. 

Credit  lines  in  support  of  private  sector  development  (SMEs)  represented  12%  of  total 
lending,  of  which  the  main  share  (68%)  was  granted  in  the  Pre-Accession  countries.  In 
alignment  with  its  anti-crisis  commitment  to  increase  lending  to  SMEs  in  order  to  promote 
growth  and  employment  within  the  EU,  EIB  stepped  up  its  support  to  SMEs  under  the 
Decision and more significantly at its own risk under the Pre-Accession Facility, under which 
an additional EUR 920 mn was signed in credit lines for SMEs in Turkey and Croatia. 

Telecommunications  infrastructure  was  supported  by  two  projects  in  Latin  America 
(accounting for 7% of lending in 2008), while industry and services (including a healthcare 
project in Serbia) received support in all regions of the mandate, except ALA. 

Finally, two projects to rehabilitate the water and sanitation infrastructure were financed in 
the Western Balkans. 

2.4. 

Impact and value added of EIB operations 

The  desk-review  of  the  value  added  of  EIB  operations  is  based  on  the  ex-ante  assessments 
which the EIB services routinely carry out for each individual operation. These assessments 
build  on  a  framework  structured  along  the  following  three  pillars,  which  are  based  on  a 
number of criteria and indicators: 

2 

The investment is considered under the 'Industry & Services' sector and indirectly contributes to the EU 
policy objectives of sustainable energy production and climate change mitigation. 

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Pillar 1: the contribution to overall mandate objectives and priorities; 
Pillar 2: the quality and soundness of the project, i.e., the economic, technical, financial and 
environmental  soundness  of  the  project,  as  well  as  management  capability  to  design, 
implement and operate the project; 
Pillar  3:  the  financial  and  non-financial  contribution  made  by  the  EIB  to  the  project,  i.e., 
longer maturities and grace periods, attractive interest rates, and risk capital instruments as 
well as changes to project design, project conditionality and technical assistance. 

The framework applied to operations in the Pre-Accession countries, called the Value Added 
(VA)  framework,  is  identical  to  the  one  used  for  financing  operations  within  the  EU.  In  all 
other  regions  covered  by  the  Decision,  EIB  introduced  in  2007  the  Economic  and  Social 
Impact Assessment Framework, which reflects the different needs and characteristics as well 
as the respective lending objectives of each of the geographical regions. 

The  assessment  is  performed  by  the  EIB  ex-ante  on  the  basis  of  facts  and  data  collected 
during  project  appraisal.  The  framework  is  designed  so  that  it  can  provide  information  and 
benchmarks throughout the life of the project, in particular for both  monitoring and ex-post 
evaluation.  

Table 5: Value added ratings of operations signed under the Decision in 2008 

Impact rating 

Pillar 1 

Pillar 2 - 
Investment loans 

Pillar 2 – 
Intermediated 
loans (SMEs) 

Pillar 3 

High 

Medium 

Moderate 

Low 

Total 

33 (79%)  

9 (21%) 

0 

0 

15 (48%)

14 (45%)

2 (7%)

0 

1 (9%)

10 (91%)

0

0

27 (64%)

15 (36%)

0

0

42 (100%) 

31 (100%)

11 (100%)

42 (100%)

According  to  the  above  table,  79%  of  EIB  operations  signed  under  mandate  in  2008  are 
judged  to  be  highly  consistent  with  the  mandate  objectives  and  priorities,  while  21%  were 
rated  “medium”.  No  projects  were  rated  “moderate”  or  “low”  in  Pillar  1  thereby  reflecting 
EIB’s upfront screening of operations. 

On project quality (Pillar 2), for investment loans, the proportion of “high” ratings represented 
48% of projects; “medium” was attributed to 45% of projects. Two investment projects (6%) 
were  rated  “moderate”,  to  which  contributed  e.g.  the  promoter’s  moderate  management 
capabilities to operate the project. In such cases, EIB aims to improve the situation through 
loan  conditions  and  technical  assistance.  As  far  as  intermediated  loans  for  SMEs  are 
concerned, ten operations were rated “medium” in Pillar 2, while one was rated “high”. The 
dominance of “medium” ratings in intermediated operations usually reflects the quality of the 
financial intermediaries. 

In  terms  of  EIB’s  contribution  to  the  projects  (Pillar  3),  64%  of  projects  were  assessed  to 
benefit from “high” EIB contribution, while 36% were rated “medium”. 

The ongoing external evaluation of the EIB external mandate will provide an in-depth ex-post 
analysis of impact and value added of EIB operations. 

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3. 

COOPERATION WITH THE COMMISSION 

The  Decision  invites  the  Commission  and  the  EIB  to  strengthen  the  consistency  of  EIB 
actions with the external EU policies with a view to maximising synergies of EIB financing 
and  EU  budgetary  resources,  mainly  through  a  regular  and  systematic  dialogue  and  early 
consultation  on  policies,  strategies  and  project  pipelines.  To  this  end,  the  Commission  and 
EIB  decided  to  establish  a  specific  Memorandum  of  Understanding  defining  the  terms  and 
conditions of this strengthened cooperation. It was signed on 26 May 2008. 

With a view to enhancing the coherence of overall EU support in the regions covered by the 
external mandate, the Commission and EIB are actively cooperating in instruments where EIB 
financing  is  blended  with  EU  budgetary  resources,  notably  through  the  Instrument  for  Pre-
Accession  Assistance  (IPA)  and  the  European  Neighbourhood  and  Partnership  Instrument 
(ENPI). Several new initiatives established under these instruments are aiming at supporting 
investments in the regions covered by the Decision, while increasing cooperation between the 
Commission, EIB and other IFIs. 

In  the  Western  Balkans,  the  Commission,  EIB,  European  Bank  for  Reconstruction  and 
Development  (EBRD)  and  Council  of  Europe  Development  Bank  (CEB)  worked  alongside 
to  establish  a  Western  Balkans  Investment  Framework  combining 
Member  States 
coordination of grant funds under a Joint Grant Facility with EIB-EBRD-CEB lending. Grant 
resources under this initiative are made available by IPA, EIB, EBRD and CEB as well as by 
Member States. In parallel, institutional and sector dialogue with the Commission and other 
relevant IFIs was enhanced through an IFI Advisory Group. 

For  the  benefit  of  the  Mediterranean  region  and  in  order  to  underpin  the  financial  support 
provided from EIB own funds, EIB manages EU budgetary resources for technical assistance 
and risk capital. In addition, selected EIB loans benefit from interest rate subsidies. In 2008, 
14 technical assistance operations were contracted in Mediterranean countries for an overall 
value of EUR 16.8 mn. Risk capital operations amounted to EUR 62 mn, representing a 32% 
increase compared to signatures in 2007.  

In  2008  the  Commission  established  the  EU’s  Neighbourhood  Investment  Facility,  which 
aims  at  mobilising  additional  funding  for  infrastructure  projects  mainly  in  the  energy, 
transport and environment sectors in the entire area of the European Neighbourhood Policy by 
providing  grant  support  for  lending  operations  of  European  IFIs  and  European  bilateral 
institutions.  The  EIB  also  manages  the  NIF  Trust  Fund  which  pools  contributions  from 
Member States and other donors. 

In  support  of  South  Africa,  the  EIB  has  assisted  the  Commission  in  the  design  and 
implementation  of  dedicated  EU  funded  risk  capital  facilities  for  South  African  SMEs.  The 
second Risk Capital Facility set up for an amount of EUR 50 mn and for a period of five years 
is being implemented according to schedule. 

4. 

COOPERATION WITH INTERNATIONAL FINANCING INSTITUTIONS  

The EIB pursued its cooperation with other IFIs and European bilateral institutions in 2008 in 
the framework of the external lending mandate, but also under its own risk facilities and under 
the  Cotonou  agreement  for  ACP  countries.  The  IFI  coordination  has  been  strengthened  via 
several  actions,  including  monitoring  of  IFI  activities,  review  of  institutional  agreements 

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between  EIB  and  other  IFIs,  and  follow-up  on  the  progress  in  operational  cooperation,  to 
maximize synergies between the respective capacities and skills of EIB and other IFIs. 

In particular, the Bank cooperated with other IFIs both via inter-institutional participation in 
horizontal initiatives and topics (such as environment, risk management, planning and budget, 
legal  matters,  internal  audit,  evaluation,  participation  in  IFI  annual  meetings)  and  via 
operational  cooperation  differentiated  by  region.  As  mentioned  in  chapter  3,  a  significant 
level  of  cooperation  was  in  particular  achieved  under  the  platforms  established  by  the 
Commission, EIB and other IFIs in the Western Balkans and in Neighbourhood countries. A 
list of operations co-financed between EIB and other IFIs or European bilateral institutions in 
2008 is provided in the SWD. The share of EIB loans co-financed with other IFIs or European 
bilateral  institutions,  in  terms  of  volume,  represented  55%  of  total  signatures  under  the 
Decision  in  2008  compared  with  42%  in  2007.  In  risk  capital,  co-financed  operations 
represented 50% of signatures. 

In  Turkey,  the  Bank  continued  its  long-standing  cooperation  with  other  IFIs  and  European 
bilateral  institutions,  resulting  in  cofinancing  a  significant  number  of  projects,  both  for 
projects  under  the  mandate  and  the  Pre-Accession  Facility.  In  November  2008,  th  EBRD 
started  up  operations  in  Turkey.  In  that  context,  the  Commission,  the  EIB  and  the  EBRD 
entered into an agreement in January 2009 to ensure co-ordination among the institutions and 
make  optimum  use  of  the  EBRD’s  additional  resources,  knowledge  and  expertise  for  the 
country.  

Given the financial crisis, the Commission and the IFIs, including the EIB, have stepped up 
their  consultation  and  cooperation  in  the  framework  of  an  IPA  Crisis  Response  Package  to 
pursue a coordinated EC-IFI Action for the Western Balkans and Turkey. 

In the Neighbourhood countries, operational cooperation intensified with other IFIs (EBRD, 
CEB,  Nordic  Investment  Bank,  Black  Sea  Trade  and  Development  Bank)  and  European 
bilateral  institutions  (Agence  Française  de  Développement  (AFD),  Kreditanstalt  für 
the 
Wiederaufbau 
Neighbourhood Investment Facility (NIF). A joint pipeline of projects supported by EC grant 
funds has been established for the East and for the South region, with identification of the lead 
IFI.  

(KfW),  Oesterreichische  Entwicklungsbank) 

the  context  of 

in 

In the Southern Neighbourhood / Mediterranean, the Bank continued close cooperation with 
European  bilateral  institutions,  notably  AFD  and  KfW.  In  addition,  EIB  intensified  its 
dialogue with the World Bank, including on specific sectors such as energy, and continued the 
institutional dialogue in the Luxembourg Group with World Bank, IMF and the EC. 

In  the  Eastern  Neighbourhood  &  Russia,  institutional  and  operational  cooperation  with  the 
EBRD  has  intensified  under  the  EC-EIB-EBRD  tripartite  Memorandum  of  Understanding. 
This  includes  the  build  up  of  a  joint  pipeline  and  agreement  on  the  framework  policies  for 
each  eligible  sector  under  the  lead  of  the  Commission.  The  first  joint  EIB-EBRD  projects 
under the 2007-2013 mandate were signed in Ukraine and Republic of Moldova. 

In  Asia  and  Latin  America  region,  the  Bank  pursued  its  operational  cooperation  with  the 
Asian Development Bank including the identification of co-financing opportunities, following 
the  signature  of  the  MoU  in  2007.  The  EIB  also  signed  in  2008  a  joint  statement  of 
cooperation with Corporación Andina de Fomento (CAF). 

EN 

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   EN 

 
In South Africa the EIB project in the social housing sector complemented operations in the 
same sector by the AFD and the Netherlands Development Finance Company. 

In the framework of its annual visit to the  EU institutions,  the World Bank’s EU Executive 
Directors visited the EIB in March 2008 and met with the EIB Management Committee and 
staff. 

In June 2008, the EIB signed a Joint Statement on Cooperation with the CEB highlighting the 
various  areas  of  joint  interest  and  cooperation  mechanisms  of  the  two  institutions,  with 
particular  focus  on  social  sectors,  urban  development,  human  capital  and  environment.  In 
addition, EIB was granted the status of observer at Black Sea Trade and Development Bank. 

Most  importantly,  internal  reflection  has  started  in  the  EIB  on  how  to  promote  the 
implementation  of  “mutual  reliance”  among  IFIs  cofinancing  the  same  project,  in  order  to 
maximize synergies and efficiency for the benefit of borrowers. This concept finds support in 
principle  from  other  major  IFIs  and  European  bilateral  institutions  and  will  be  further 
developed in the future, starting with a pilot programme with AFD and KfW. 

EN 

12 

   EN