COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 2010
Date: 2012-02-07
Institutions: European Commission
Subjects: Asia, EIB loan, EU relations, Eastern Bloc countries, Latin America, Mediterranean third countries, Russia, South Africa, anti-crisis plan, climate change, cooperation policy, interinstitutional cooperation (EU), pre-accession aid, security of supply

EUROPEAN COMMISSION 

Brussels, 7.2.2012  
COM(2012) 36 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2010 

{SWD(2012) 3 final} 

 
 
 
 
  
 
 
 
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

ON OPERATIONS CARRIED OUT UNDER THE EIB EXTERNAL MANDATE IN 
2010 

TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

3. 

4. 

INTRODUCTION........................................................................................................ 0 

FINANCING OPERATIONS...................................................................................... 0 

Overview of EIB financing volume in the regions covered by the Decision............... 0 

Contribution to EU policy objectives........................................................................... 0 

Sectoral breakdown...................................................................................................... 0 

Impact and value added of EIB operations .................................................................. 0 

COOPERATION WITH THE COMMISSION........................................................... 0 

COOPERATION WITH INTERNATIONAL FINANCING INSTITUTIONS ......... 0 

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1. INTRODUCTION 

Decision  633/2009/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  (the 
“Decision”  or  “mandate”)  requires  the  Commission  to  report  annually  on  EIB  financing 
operations carried out under guarantee, based on yearly reports provided by EIB.  

Outside  the  EU,  in  the  regions  covered  by  the  mandate,  the  Bank  provides  loans  and  loan 
guarantees with the cover of the EU guarantee ("operations under mandate") or at its own risk 
under the framework of Article 16 of its Statute ("own risk operations"). The present report 
reviews  2010  EIB  financing  operations  under  mandate  and  provides  a  summary  of  the  own 
risk operations. In contrast, the EIB operations in Africa, Caribbean and Pacific (ACP) as well 
as in Overseas Countries and Territories (OCT) are covered in a separate annual report.  

The  report  reveals  two  major  developments  in  2010:  the  need  for  sustained  crisis-response 
lending and the expansion of climate change related operations. 

The global crisis hit the Pre-Accession countries and the Eastern Neighbours and Russia the 
hardest with a real economic contraction in 2009 of 4.5 percent and 8.0 percent, respectively. 
In  Pre-Accession  countries,  the  EIB  confirmed  its  key  role  contributing  to  more  than  half  a 
percentage  point  of  aggregate  GDP  and  helping  counter  the  region’s  credit  squeeze. 
Accordingly,  SME  lending  in  this  region  was  doubled  in  2009.  With  crisis  recovery,  this 
stimulus has been completely withdrawn and lending to this region is back at pre-crisis level. 
Addressing  the  economic  crisis  was  done  inter  alia  in  cooperation  with  other  IFIs  under  a 
Joint Action Plan in support of lending to the banking sector and the real economy in Central 
and Eastern Europe. While credit growth to the private sector has fully rebounded in the Pre-
Accession countries and ALA, it remains still below pre-crisis levels in Mediterranean region 
as  well  as  in  the  Eastern  Neighbourhood  and  South  Africa.  Hence,  there  remained  an 
important additional countercyclical role for the EIB to play in these regions.  

The  second  major  trend  in  2010  was  a  significant  expansion  of  the  EIB’s  activities  to  fight 
climate change, mainly using EIB’s own risk facilities. In total, the EIB invested 1.6 billion in 
sustainable energy and transport projects, of which more than three quarters in the Asia and 
Latin  America  and  Eastern  Neighbourhood  regions,  i.e.  the  less  energy  efficient  regions 
covered by the mandate. This boost, combined with an increase of energy investments in the 
Mediterranean  region  to  support  European  energy  security,  fully  offset  the  withdrawal  of 
countercyclical investments made in 2009. 

In this framework, cooperation between the Commission and the EIB has further intensified 
over 2010, particularly in the context of the Mid-Term Review of the mandate, as well as in 
various loan-grant blending mechanisms. 

In  the  course  of  2011,  several  key  initiatives  were  launched  at  EU  level,  in  particular  as  a 
follow-up to the Arab spring, such as the increase of the EIB lending capacity with the EU 
guarantee for the Mediterranean region, the G8 Deauville Partnership Initiative and the set-up 
of an EU Task Force for the Southern Mediterranean. Next year's report will review the EIB 
contribution to these initiatives. 

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.  

Following  the  mid-term  review  of  the  EIB  external  mandate,  the  Commission  submitted  a 
proposal for a new Decision to the European Parliament and the Council in April 2010, which 
was adopted on 25 October 20112 (Decision 1080/2011/EU granting an EU guarantee to the 
European Investment Bank against losses under loans and loan guarantees for projects outside 
the  Union).  The  new  Decision  covers  financing  operations  from  1  February  2007  to  31 
December 2013 and repeals Decision 633/2009/EC. The new Decision introduces additional 
reporting  requirements  which  will  be  applicable  to  EIB  financing  operations  signed  as  of 
2012. 

2. 

FINANCING OPERATIONS 

2.1. 

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

–  Total  EIB  financing  volume  in  the  regions  outside  the  EU  –  including  both  operations 
under mandate and EIB own risk operations – remained stable at about EUR 8.8bn in 2009 
and 2010, some 40% above the pre-crisis level of the earlier years (respectively EUR 6.5bn 
and  6.1bn  in  2007  and  2008).  Total  volume  for  the  regions  covered  by  the  EIB  external 
mandate, which do not include ACP/OCT and EFTA countries, amounted to EUR 7.8bn in 
2010 as in 2009, compared to EUR 5.6 bn in 2008. With respect to 2009, an increase of 
EUR 1.2bn (by 67%) under EIB own risk facilities was offset by a corresponding decrease 
in  lending  volume  under  the  mandate.  In  terms  of  number  of  projects,  46  projects  were 
financed under the mandate in 2010 compared to 55 in 2009. 

–  At the end of 2010, the overall amount signed under the mandate stood at EUR 16.8 bn, or 
65%  of  the  overall  ceiling  under  Decision  633/2009/EC  (EUR  25.8bn).  The  European 
Parliament  and  the  Council  have  decided  to  release  additional  EUR  2bn  for  a  horizontal 
climate  change  mandate  and  to  increase  the regional  ceilings  under  the  new  Decision,  in 
order not to constrain EIB lending activity during the last years of the mandate, notably in 
Mediterranean  and  Pre-Accession  countries.  As  a  result,  under  the  new  Decision,  the 
overall ceiling of the mandate will amount to EUR 29.5bn. The amount signed by the EIB 
until the end of 2010 represents 57% of the new overall ceiling. 

–  The  following  table  provides  an  overview  of  the  volume  of  EIB  financing  on  its  own 

resources in 2009 and 2010 in the regions covered by the external mandate. 

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Table 1: EIB financing in 2009 and 2010 (under the 2007-2013 mandate) (EUR m) 

Countries of 
operation 

Operations under mandate 

(EUR 
million) 

Comprehensive 
guarantee 

Political risk cover  

Total 

EIB own risk 
operations (1) 

Total 

2009 

2010 

2009 

2010 

2009 

2010 

2009 

2010 

2009 

2010 

Pre-Accession  

2615 

1.460 

250 

75 

2865 

1.535 

1475 

1.796 

4340 

3.331 

Mediterranean 

1088 

1.663 

422 

346 

1510 

2.009 

56 

516 

1566 

2.525 

Eastern 
Europe, 
Southern 
Caucasus and 
Russia 

Asia and 
Latin America 

0 

325 

233 

305 

233 

631 

0 

0 

233 

631 

730 

223 

417 

420 

1147 

643 

141 

579 

1288 

1.222 

South Africa 

Total 

240 

4673 

0 

40 

50 

280 

50 

0 

0 

280 

50 

3.671 

1362 

1.196 

6.035 

4.867 

1.672 

2.891 

7.706 

7.758 

(1) EIB own risk operations carried out under the following facilities: 
- Pre-Accession Facility: financial envelope of EUR 19.5bn for the period 1998-2010, of which EUR 6.2bn for 
2007-2010. An increase of EUR 5.7bn has been authorised for the period 2011-2013; 
- Mediterranean Partnership Facility II: EUR 2bn for 2007-2013; 
- Facility for Energy Sustainability and Security of Supply: EUR 4.5bn for 2007-2013; 
- EFTA Facility: EUR 3.3bn until 2013; 
- Eastern Partners Facility EUR 1.5bn authorised in December 2009 until 2013. 

In  2010,  75%  of  the  loans  signed  under  mandate  were  covered  by  a  Comprehensive 
Guarantee, which is used for sovereign and sub-sovereign operations, while 25% benefited 
from Political Risk Guarantee cover for private sector operations. The combined volume of 
signatures under either guarantee represents 63% of total financing in 2010 in regions covered 
by  the  Decision,  whereas  the  remaining  37%  corresponds  to  EUR  2.9bn  of  EIB  own  risk 
lending with no recourse to the EU guarantee. 

In  the  Pre-Accession  countries,  the  trend  under  the  mandate  shows  a  return  in  2010  to  pre-
crisis levels, following the exceptionally high lending activity in 2009 as part of EIB’s crisis-
response  support  to  investments  (particularly  by  SMEs)  in  the  region.  In  contrast,  lending 
under the Pre-Accession Facility increased by 22% to EUR 1.8bn and exceeded activity under 
the mandate (EUR 1.5bn) in 2010. In order to accommodate for reduced headroom under the 
mandate  and  still  significant  needs  in  the  Pre-Accession  region,  an  increase  of  the  lending 
ceiling  of  the  Pre-Accession  Facility  by  EUR  5.7bn  until  2013  was  approved  by  the  EIB 
Board of Governors early 2011.  

In the Neighbourhood to the South and to the East, EIB financing activity grew significantly 
in 2010. In the Mediterranean, total lending on EIB own resources (under the mandate with 
the  EU  guarantee  and  under  the  own-risk  Mediterranean  Partnership  Facility  II)  reached  a 
record level of EUR 2.5bn. In the Eastern Neighbours and Russia, the lending activity more 
than doubled since 2009 to reach EUR 631m.  

In  Asia  and  Latin  America,  lending  under  the  mandate  declined  but  an  almost  equivalent 
increase of lending to the region was realised under the Facility for Energy Sustainability and 

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Security  of  Supply  (EFS).  Together,  total  financing  under  mandate  and  own-risk  facility 
amounted to EUR 1.2bn in ALA countries.  

In South Africa, following the high level of signatures in 2009 (EUR 280m), one new loan of 
EUR 50m was signed in 2010. 

2.2. 

Contribution to EU policy objectives  

The  objective  of  EIB  operations  under  the  Decision  is  to  support  relevant  external  policy 
objectives of the Union. 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.  

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 

X 

It should be noted that the new Decision will streamline lending objectives across all regions. 

The support for energy security of the Member States and the protection of the environment 
are common objectives throughout the regions covered by the Decision. The following table 
provides the EIB signature volumes in 2009-2010 in support of these objectives. 

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Table  3:  EIB  operations  signed  in  2009  and  2010  in  support  of  energy  security  and 
environment (EUR m) 

2009

2010

- under the mandate 

Energy security of the Member States 

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

Sustainable communities (for reference) 
- Sustainable transport 
- Urban renewal and regeneration 
- Health care 

- under EIB own risk Facilities 

Energy security of the Member States 
Protection of Environment 
Sustainable communities 

25

1.032
518
351
161
3

443
386
48
0

0
196
0

20

742
390
337
0
16

572
442
0
130

500
1.014
27

Total (Mandate + Facilities) in the regions covered by the 
Decision 

Energy security of the Member States 
Protection of Environment 
Sustainable communities 

25
1.228
433

520
1.756
599

Over  the  past  years,  the  EIB  has  strengthened  its  Climate  Action  lending  and  its  wider 
commitment to the EU goal of low-carbon and climate-resilient growth within and outside the 
Union  in  particular  in  the  follow-up  of  the  UNFCC  Copenhagen  Summit.  In  2010,  the  EIB 
had set itself a target of dedicating 20% of its overall lending to Climate Action. This target is 
foreseen to progressively increase in the future years. 

Building on the experience and expertise gained through investments within the EU, the EIB 
has swiftly extended its climate change related activity in the regions covered by the mandate. 
The EIB is also an active player in the specific climate change windows set up at the end of 
2010 in all EU regional Investment Facilities. The EIB is thus well positioned to promote the 
building  of  capacities  and  development  and  diffusion  of  knowledge  and  climate-friendly 
technologies to developing countries. 

More detailed information on the extent of EIB contribution to EU policy objectives targeted 
by the Decision is provided in the SWD. 

The  mid-term  review  of  EIB  mandate  carried  out  in  the  course  of  2010  showed  that,  while 
EIB operations were generally in line with EU external policies, the link between EU policy 

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objectives and their operational implementation by the EIB should be strengthened and made 
more  explicit  and  structured.  This  is  reflected  in  the  new  Decision  which  foresees  the 
development of regional technical operational guidelines by the Commission and the EIB in 
order to  strengthen  the  link  between  the implementation of EIB activities, the general high-
level objectives set under the mandate and the EU regional strategies and priorities.  

2.3. 

Sectoral breakdown 

Table  4  below  provides  an  overview  of  the  regional  and  sectoral  distribution  of  EIB 
operations under the Decision in 2010.  

Table 4: Sectoral breakdown of operations signed in 2010 (EUR m) under the mandate 

Region 

Grand 
Total 

Energy 

Transports 

Services and 
Industry 

Water, 
sanitation 

Credit lines 
for SMEs 

Health and 
education 
infrastructure 

Pre-Accession 
Countries 
(PA) 

Mediterranean 
countries 
(MED) 

Eastern 
Neighbours  & 
Russia 
(EAST) 

Asia and 
Latin America 
(ALA) 

1.535 

40 

3% 

375 

24% 

650 

42% 

167 

11% 

253 

16% 

50 

3% 

2.009 

939 

47% 

539 

27% 

346 

17% 

55 

3% 

130 

6% 

631 

350 

56% 

85 

13% 

75 

12% 

66 

10% 

55 

9% 

643 

290 

45% 

223 

35% 

130 

20% 

South  Africa 
(SA) 

50 

50 

100% 

Total 

4.868 

1.619 

33% 

1.222 

25% 

1.201 

25% 

338 

7% 

308 

6% 

180 

4% 

Energy  was  the  largest  sector  with  EUR  1.6bn  financing  under  the  mandate  in  2010.  The 
share  of  financing  for  energy  efficiency  (EUR  330m)  and  renewable  energy  (EUR  100m) 
together  represented  27%  of  energy  lending  under  the  mandate.  In  renewables,  the  two 
hydropower projects financed in Georgia are considered as cornerstones of Georgia’s energy 
sector  strategy,  which  aims  to  turn  the  country  into  a  net  exporter  of  hydropower  in  the 
region. 

Transport - including rail, road, port and urban transport infrastructure - represented 25% of 
total lending under the mandate. Within this sector, around 44% related to EIB contributions 
for the financing of three large terrestrial and maritime infrastructure projects in Morocco and 
Tunisia,  whereas  another  19%  comprised  three  projects  in  Serbia  for  the  development  of 
transport axes linking to TENs.  

The  services  sector  represented  around  13%  of  total  lending  under  mandate,  with 
contributions via three investment programmes to the strengthening of knowledge economies 
and the research and innovation capacities in Serbia and Turkey. The industry sector covered 

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almost  10%,  with  two  projects  financed  in  Egypt  and  Brazil  that  will  result  into  cleaner 
production  outputs  and  reduced  industrial  pollution.  Lending  to  the  agriculture  sector 
comprised  one  EUR  75m  loan  (about  1.5%)  to  the  Republic  of  Moldova  to  help  to  address 
structural  weaknesses  in  the  Moldovan  wine  industry  (mainly  composed  of  SMEs),  from 
vineyard to final packaging and dispatch. 

Financing to water and sanitation infrastructure was provided for an amount of EUR 337m 
(corresponding to 7% of total lending) to nine projects in all  regions of the mandate except 
ALA.  In  line  with  the  UN  Millennium  Development  Goals,  the  EIB  contributes  to  the 
improvement  of  sustainable  access  to  safe  drinking  water  and  sanitation.  These  projects  are 
typically  associated  with  strong  positive  environmental  and  public  health  impacts  and  an 
overall  benefit  to  the  quality  of  life  of  the  inhabitants  concerned.  For  increased 
concessionality or project implementation support, 7 of the 9 projects financed benefit from 
technical assistance or other grants alongside EIB financing.  

Intermediated  credit  lines  for  SMEs  accounted  for  EUR  308m  of  financing  under  the 
mandate (corresponding to 6% of total lending). More significant financing via credit lines for 
SMEs  was  provided  under  the  Pre-Accession  Facility  for  an  amount  of  EUR  980m.  This 
support is channelled through a number of public as well as private financial institutions on-
lending to a variety of sectors. Part of this financing is provided in the framework of the Joint 
IFI Action Plan in support of the banking systems and lending to the real economy in Central 
and Eastern Europe (including Western Balkans and Turkey). Moreover, two loans (for EUR 
55m) were extended in Georgia and Moldova within the SME Eastern Partnership Initiative. 

Four  percent  of  total  lending  was  provided  for  two  operations  in  health  and  education 
infrastructure. In Serbia, EUR 50m was lent for investments addressing systemic issues in 
the  primary  and  secondary  education  sector,  whereas  in  Syria  a  second  loan  was  signed  in 
2010 for an investment programme aiming to increase the country’s capacity to respond to the 
underlying  healthcare  needs  of 
the  changing 
demographic and epidemiological challenges. 

including  addressing 

the  population, 

2.4. 

Impact and value added of EIB operations 

The  EIB  assesses  the  value  added  of  its  operations  on  the  basis  of  a  framework  structured 
along the following three pillars: 

Pillar 1 - the consistency with and contribution to EU policy objectives; 
Pillar 2 - the quality and soundness of the project; 
Pillar 3 - the financial and non-financial contribution made by the EIB to the project. 

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,  the  EIB  applies  the  so-called  Economic  and  Social 
Impact Assessment Framework (ESIAF), 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  phase.  The  framework  is  designed  so  that  it  can  provide  valuable 
information  and  benchmarks  throughout  the  life  of  the  project,  in  particular  for  both 
monitoring and ex-post evaluation. 

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Table  5a:  Value  Added  ratings  of  operations  approved  in  2010  in  Pre-Accession  countries 
(maximum score = 200). 

Impact rating 

Pillar 1 

Pillar 2 

Pillar 3 

Average 
score 

Operations 
approved 

Mandate with 
EU guarantee 

Pre-Accession 
Facility 

139 

129 

128 

139 

151 

150 

139 

139 

10 

14 

Table  5b:  Value  added  ratings  of  operations  approved  in  2010  in  Mediterranean,  Eastern 
Neighbourhood and Russia, Asia and Latin America, and South Africa  

Impact rating 

Pillar 1 

Pillar 2 - 
Investment loans 

Pillar 2 – 
Intermediated 
loans (SMEs) 

Pillar 3 

High 

Medium 

Moderate 

Low 

Total 

29 (76%) 

9 (24%) 

0 

0 

11 (35%)

19 (61%)

1 (3%)

0

1 (14%)

6 (86%)

0

0

25 (66%)

11 (29%)

0

0

38 (100%) 

31 (100%)

7 (100%)

38 (100%)

In Pre-Accession countries, small differences between operations under EU guarantee and at 
own-risk  can  be  observed  for  the  Pillar  1  and  2,  which  partially  reflect  the  fact  that  the 
mandate  is  mainly  targeted  at  projects  with  relatively  higher  risks,  where  the  EU  guarantee 
provides the highest value added.  

In  the  other  mandate  regions,  nine  operations  received  “high”  overall  ratings  in  all  three 
pillars, eight of which represent investments contributing to the protection of the environment 
(renewable  energy,  energy  efficiency,  reduction  of  industrial  pollution,  water  supply  and 
sustainable transport) and one is a regional mezzanine fund on FEMIP risk capital resources. 

3. 

COOPERATION WITH THE COMMISSION 

The Commission and the EIB cooperated intensively in the framework of the mid-term review 
of the EIB external mandate. The report prepared by a steering committee of wise persons and 
the  evaluation  carried  out  by  an  external  consultant  were  the  basis  for  the  Commission 
proposal submitted to the European Parliament and the Council in April 2010. The ordinary 
legislative procedure for the amendment of the Decision was finalised in October 2011. The 
new Decision calls for even greater cooperation and synergy between the Commission and the 
EIB, as well as the newly established EEAS. 

In the context of the post-2013 Multi-Annual Financial Framework, the Commission and the 
EIB have started reflections on new financial instruments in support of EU external policies. 
The significant increase in the use of innovative financial instruments should allow a greater 
share of EU grants to be blended with loans or used in equity or risk-sharing instruments, so 

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as  to  mobilize  additional  funding,  especially  from  private-sector  investors,  to  cover  the 
investment  needs  of  our  partner  countries.  The  use  of  innovative  financial  instruments  in 
external  policies  should  be  supported  under  an  “EU  Platform  for  cooperation  and 
development”, in order to enhance effectiveness and efficiency of EU external financing. 

Climate action financing reached close to 30% on the EIB’s overall financing volume in 2010. 
During  the  16th  Conference  of  the  Parties  of  the  United  Nations  Framework  Convention  on 
Climate Change in Cancun, the EIB further developed partnerships on climate action through 
various  events.  These  included  a  joint  Commission–EIB  conference  on  climate  change 
mitigation  and  adaptation  in  ACP  &  OCT  island  states,  a  presentation  of  the  latest 
developments  of  the  EIB-managed  Global  Renewable  Energy  and  Energy  Efficiency  Fund 
and  a  roundtable  discussion  on  Multilateral  Development  Banks’  climate  safeguards  and 
performance standards.  

With  a  view  to  enhancing  EIB  contribution  to  EU  development  cooperation  objectives,  a 
series  of  seminars  on  human  rights  were  organised  for  exchanging  best  practice  and 
facilitating  dialogue  between  stakeholders,  most  notably  in  the  civil  society,  business  and 
intergovernmental organisations. The London seminar in June 2010 was attended by over 80 
representatives  responsible  for  human  rights  and  was  followed  by  a  second  seminar  in 
Johannesburg  in  July  2010  with  a  further  40  stakeholders,  mainly  from  African  countries. 
Finally, a roundtable between representatives of the EIB and the European Commission was 
held in Brussels in October 2010. 

The  EIB  has  continued  to  provide  a  detailed  reporting  of  its  financing  operations  that 
potentially  qualify  as  Official  Development  Assistance  according  to  the  OECD  DAC 
Directives.  The  interpretation  of  the  application  of  these  Directives  to  EIB  lending  activity 
under the EU Guarantee has been the subject of intense discussions between the OECD and 
the EC, which are ongoing. 

4. 

COOPERATION WITH INTERNATIONAL FINANCING INSTITUTIONS  

In  2010  co-financing  with  other  IFIs  or  European  bilateral  institutions  represented  43%  of 
EIB  total  financing  volume  outside  the  EU  (including  ACP).  Under  the  mandate,  the  co-
financed  volume  represented  64%  of  total  signatures  (including  EU  budget  funded  FEMIP 
risk  capital).  This  proportion  of  co-financed  operations  has  steadily  increased  since  the 
beginning  of  the  mandate  period,  namely  from  42%  in  2007,  to  55%  in  2008  and  60%  in 
2009. The list of co-financed operations signed in the regions covered by the external mandate 
in 2010 is included in the SWD.  

The mid-term review of the external mandate assessed positively EIB cooperation with other 
IFIs,  acknowledging  the  increase  in  co-financing  and  efforts  to  ensure,  where  appropriate, 
coherent  project  and  sector  conditionality  among  IFIs.  The  EIB  was  encouraged  to  pursue 
joint  co-financing  with  increased  mutual  reliance  when  it  makes  sense  in  the  interest  of 
project beneficiaries and when it improves the efficiency of the financing support given by the 
IFIs. 

The  EIB  has  been  an  active  player  in  the  regional  blending  facilities  established  by  the 
Commission over the past years together with the EIB, the EBRD and other EBFIs (e.g. the 
Neighbourhood  Investment  Facility,  the  Investment  Facility  for  Central  Asia,  the  Western 
Balkans Investment Framework and the EU-Africa Infrastructure Trust Fund). The EIB will 

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consider  its  participation  in  other  facilities  in  other  regions  (such  as  the  Latin  American 
Investment Facility). 

A new MoU between the Commission, the EIB Group and the EBRD was developed in 2010 
and signed  in  March  2011. The new MoU replaces and merges earlier agreements covering 
Eastern  Europe,  the  Southern  Caucasus,  Russia  and  Central  Asia  (of  December  2006)  and 
Turkey  (of  January  2009).  The  MoU  will  allow  for  enhanced  strategic  and  operational 
cooperation. The new tripartite MoU on cooperation outside the EU should be revised once 
the EBRD becomes operational in the Mediterranean region.  

The  EIB  continued  in  2010  to  pursue  its  close  cooperation  with  other  IFIs  and  European 
bilateral  institutions,  thus  enhancing  its  catalytic  role  to  support  EU  policy  objectives  and 
standards, including within the Long Term Investors Club and the Club of Institutions of the 
EU specialising in Long-Term Credit. 

In  April  2010,  the  EIB  hosted  in  Luxembourg  the  semi-annual  meeting  of  the  Heads  of 
Multilateral  Development  Banks,  which  discussed  the  coordination  of  these  institutions’ 
response  to  climate  change,  as  well  as  ways  to  improve  coordination  and  efficiency 
particularly in response to the economic crisis. 

Cooperation  with  AFD  and  KfW  was  reinforced  and  formalised  in  the  signature  of  the 
Tripartite  Agreement  on  Mutual  Reliance  in  February  2010.  In  this  framework,  the  three 
institutions  seek  to  enhance  their  collective  effectiveness  and  efficiency,  by  mutually 
recognising  and  relying  on  the  procedures  and  standards  applied  by  each  institution  on  co-
financed  projects.  By  the  end  of  2010,  pilot  projects  have  been  selected  for  the  Southern 
Neighbourhood and ACP regions.  

The  Joint  IFI  Action  Plan  (JAP)  in  support  of  Banking  Systems  and  Lending  to  the  Real 
Economy in Central Asia and Eastern Europe, signed by EIB Group, WB Group and EBRD in 
response to the global financial crisis in February 2009, was successfully completed in 2010 
and  provided  over  €33  billion  in  support  fo r  banks  and  economies  of  the  region.  The 
unprecedented  level  of  cooperation  was  instrumental  in  ensuring  that  key  Western  banks 
maintained their engagement in the region at a time when international markets ground to a 
halt and private funding dried up. A final report issued on 11 March 2011 concluded that the 
JAP objectives had been reached. Overall, JAP helped to avert systemic banking crisis and a 
severe credit crunch, and helped re-start a credit recovery in many countries.  

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