COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2015 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE
Date: 2016-09-14
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EIB loan, EU aid, European Investment Bank, adaptation to climate change, credit guarantee, development aid, institutional cooperation, investment abroad, investment protection, private sector

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 14.9.2016  SWD(2016) 296 final   COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2015 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE {COM(2016) 585 final}  
 
 
1. 

INTRODUCTION AND OVERVIEW 

This Staff Working Document ("SWD") reviews the implementation of the current European 
Investment  Bank  ("EIB")  external  mandate  at  project,  sector,  country  and  regional  levels  in 
2015  as  well  as  the  contribution  of  EIB  financing  operations  to  the  fulfilment  of  external 
policy  objectives,  taking  into  account  the  operational  objectives  of  the  EIB.  Article  11(2)  of 
Decision  466/2014/EU  of  the  European  Parliament  and  of  the  Council  of  16  April  2014 
provides  that  for  the  purposes  of  the  Commission's  reporting,  the  EIB  shall  provide  the 
Commission with yearly reports on EIB financing operations carried out under that Decision 
including  all  necessary  elements  allowing  the  Commission  to  report.  Therefore,  facts  and 
figures mentioned in the document are mainly based on information provided by the EIB. 

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EIB CORPORATE RESPONSIBILITY 

Corporate responsibility is at the heart of everything the EIB does. It is embedded in the EIB’s 
mission as the Union bank to foster sustainable development by supporting growing, inclusive 
and  ecologically  sound  economies.  2015  provided  a  wealth  of  opportunities  for  the  EIB  to 
reaffirm  its  commitment  to  the  highest  environmental,  social  and  governance  standards, 
whether through its financing operations or internal activities. 

Following  its  creation  in  2014,  the  EIB’s  Corporate  Responsibility  ("CR")  Department  was 
reinforced  during  2015  with  the  aim  of  further  facilitating  and  supporting  the  inclusion  of 
robust sustainability standards and practices into the EIB’s operations and activities. 

In order to remain at the forefront of sustainability reporting, in 2015 the EIB decided as an 
early adopter to apply the Global Reporting Initiative revised reporting framework ("GRI" G4) 
in accordance with comprehensive option. The EIB has also continued to report extensively on 
its carbon footprint in accordance with the  Greenhouse Gas Protocol Corporate standard and 
the GRI principles and indicators. 

As the long-term financing body of the European Union ("EU"), the EIB promotes EU policies 
through  its  financial  and  other  support  to  sustainable  investment  projects.  The  increasing 
prominence  given  to  environmental  and  social  considerations  throughout  all  regions  of 
operation  of  the  EIB  is  reflected  in  its  priority  lending  objectives  as  well  as  in  the  regular 
review and revision of its environmental and social requirements and operational practices.  

The  environmental  and  social  policies,  principles  and  standards,  as  well  as  the  operational 
practices  of  the  EIB,  derive  from  and  reflect  the  evolving  EU  approach,  and  that  of  other 
international  institutions,  towards  the  promotion  of  environmental  sustainability  and  social 
well-being, in the broader context of the goal of sustainable development. They are developed, 
maintained, and disseminated by the EIB’s Environment, Climate & Social Office ("ECSO").  

The EIB aims to add value by enhancing the environmental and social sustainability of all the 
projects  that  it  is  financing  and  all  such  projects  must  comply  with  the  environmental  and 
social  standards  of  the  EIB.  In  particular,  human  rights,  gender,  conflict  sensitivity, 
biodiversity and ecosystems considerations as well as climate change, are integrated into the 
lending policies and practices of the EIB.  

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2.1  Human rights 

As  an  EU  body,  the  EIB  is  legally  bound  by  the  provisions  of  the  Charter  of  Fundamental 
Rights of the European Union, including the commitment to upholding human rights. Human 
rights considerations are an integral feature of the EIB Statement of Environmental and Social 
Principles  and  Standards  which  provides  that  the  EIB  “restricts  its  financing  to  projects  that 
respect  human  rights”.  This  is  achieved  partly  by  excluding  specific  types  of  projects  or 
activities from EIB lending,1 and partly by comprehensive due diligence processes. 

In  late  2013,  the  EIB  further  advanced  its  commitment  to  human  rights  by  disclosing  its 
revised Environmental and Social Standards which integrate human rights and promote robust, 
human-rights-responsive due diligence processes. That document draws guidance from the EU 
Charter  for  Fundamental  Rights,  the  EU  Strategic  Framework  and  Action  Plan  on  Human 
Rights  and  Democracy  (2012),  the  UN  Guiding  Principles  for  Business  and  Human  Rights 
("UNGPs"), the Renewed EU Strategy 2011-2014 for Corporate Social Responsibility and the 
OECD Guidelines for Multinational Enterprises (2008). 

2015  marked  the  second  year  of  the  revised  Standards’  application  in  the  context  of  the 
services’ due diligence. It is foreseen that, following that initial applied phase, over the course 
of 2016 the EIB will assess the effectiveness of the framework in terms of its responsiveness to 
human rights considerations at the level of investments.  

2.2  Gender 

In  July  2014,  the  EIB  embarked  upon  a  process  aiming  to  mainstream  gender  equality  and 
women's  empowerment  in  its  lending  portfolio,  both  in  terms  of  its  standards-based  due 
diligence, as well as the impact of its lending. 

That exercise includes the development of a suite of procedures and tools that will effectively 
help mainstream gender in the EIB’s operations. A Gender Action Plan is expected to be the 
key vehicle to articulate the key activities and deliverables necessary for the operationalisation 
of such procedures. In-house training and awareness-raising in the field of gender equality and 
women’s  empowerment  are  also  foreseen,  both  in  terms  of  EIB-wide  awareness-raising 
seminars, as  well as  tailored half-day training  sessions  for different operational teams across 
the EIB.  

In 2015, a draft strategic framework was prepared for the EIB. Owing to the EIB’s legal status 
as an EU body and the need for the EIB to align with the respective policy directives  of the 
Council of the European Union, the European Parliament and the European  Commission,  its 
finalisation was postponed until the adoption of the EU’s Gender Action Plan 2016-2020 by 
the Council of the European Union (effected on 26 October 2015) and the presentation of the 
Commission's Strategic Engagement for Gender Equality to the Council on 7 December 2015. 

The EIB’s services have already inserted references to the gender dimension in the adaptation 
section  of  EIB’s  Climate  Strategy  and  in  the  context  of  elaborating  action  plans  to  be 
developed under the Strategy, whereby one such action plan will be dedicated to fleshing out 
the linkages between climate adaptation, climate mainstreaming and gender. 

1 List of excluded activities available online via:  
http://www.eib.org/attachments/documents/excluded_activities_2012_en.pdf  

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2.3 

Conflict sensitivity 

Adopting a conflict sensitive approach is of relevance for EIB operations, as violent conflicts 
carry  substantial  operational,  financial,  and  reputational  risks  that  may  be  otherwise 
overlooked. 

In  2014  and  in  alignment  with  the  conflict-sensitive  methodologies  deployed  by  peer 
International Financial Institutions ("IFIs"), the EIB commissioned a study with the objective 
to improve the understanding of potential interaction of EIB lending and violent conflict and to 
provide  guidance  on  how  to  make  EIB  investments  more  conflict  sensitive.  The  study  was 
completed  in  2015,  resulting  in  a  Learning  and  Awareness  Raising  Package  on  Conflict 
Sensitivity that has been made available to all EIB staff. The package includes a Good Practice 
Note on Conflict Sensitivity that lays out the key principles and steps of the EIB’s approach.  

The EIB’s approach to conflict sensitivity seeks to contribute to systematic: 

i. 

flagging  and  mitigating institutional  risks  to  the  EIB and specific operational  risks to 
EIB investments in targeted conflict affected situations; 

ii.  avoiding doing harm or aggravating conflict, and 
iii.  whenever  possible  and  depending  on  context,  seeking  to  contribute  indirectly  to 
conflict prevention, recovery and peacebuilding efforts through its project investments. 
In  the  course  of  2016,  the  developed  approach  will  be  piloted  in  3-4  new  operations  and 
refined  further  as  necessary,  relying  both  on  the  cooperation  with  EU  institutions  (and  in 
particular with EEAS and with DG DEVCO in the Commission) or peer organisations, as well 
as on the further enhancement of the EIB's in-house expertise. 

2.4 

Biodiversity 

Together with  its Multilateral Development Bank ("MDB") peers, the EIB has  committed to 
track  biodiversity-related  financing  in  our  operations  and  to  publish  the  first  report  for  the 
Convention  on  Biological  Diversity  ("CBD")  Conference  of  the  Parties  ("COP")  in  October 
2016. 

The EIB will be coordinating the work with the MDBs and in consultation with its peers and 
the  Organisation  for  Economic  Co-operation  and  Development  ("OECD"),  is  currently 
working  to  develop  and  apply  a  methodology  for  reporting  and  tracking  biodiversity-related 
lending.  The  methodology  being  developed  will  look  specifically  at  lessons  learned  and  in 
particular at the definition of climate adaptation financing and tracking. The EIB is also part of 
a  working  group  led  by  the  OECD  DAC  ENVIRONET  Task  team,  looking  at  refining  the 
biodiversity Rio marker definitions. 

2.5 

Climate change 

The EIB Climate Standards, related to the value added by the EIB, require that its financing as 
a whole is aligned with Union climate policy. Specifically, the EIB is committed to: 

  Making  its  lending  portfolio  more  climate-friendly  by  promoting  climate  change 
mitigation  projects  in  various  sectors  and  promoting  the  adoption  of  energy  efficient 
solutions in the projects financed. 

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  Mainstream climate risk considerations generally into the project cycle and to promote 
Adaptation  projects  or  projects  with  adaptation  components  and  measures,  in  the 
interests of long term sustainability. 

  Assessing  and  reporting  the  carbon footprint  of EIB  financed  investment  projects  the 
annual aggregate  Greenhouse  Gas  ("GHG")  emissions  and  savings  published  in  the 
EIB’s Annual Report for each year of finance contract signature. 
Including  from  2009  Climate  Action  in  the  Key  Performance  Indicators  for  the 
Corporate Operational Plan with currently an annual percentage target for lending of at 
least 25% based on a consistent set of definitions regarding climate action projects. 
  Reflecting  the  value  of  carbon  –  both  financial  and  economic  –  in  its  financing 

 

 

decision-making requirements and processes. 
Increasing  transparency  and  accountability,  advocacy  and  working  with  other 
institutions, including  Micro  Financial  Institutions,  Banks  and  Financial  Institutions 
(“mutual  reliance”),  Non-Governmental  Organisations  ("NGOs"),  the  European 
Commission and the academic community on climate-related matters. 

2.6 

Transparency, governance and accountability 

2.6.1 EIB Group Transparency Policy 
On 6 March 2015, the EIB Group adopted a new EIB Group Transparency Policy2 following 
an  extensive  public  consultation3  process  to  which  civil  society  organisations,  Union  and 
international institutions, the private sector, consultants, academia and members of the public 
participated. 

The new policy is more user-friendly than the previous one, with significant improvements to 
its  structure  and  clarity.  It  has  been  further  aligned  with  applicable  Union  legislation,  as 
interpreted  by  the  case  law  of  the  Court  of  Justice  regarding  transparency  and  access  to 
information.  

Based on Union legislation, the policy continues to compare very favourably with international 
best practice, and the new policy commits the EIB to a high level of pro-active dissemination 
of  information.  As  with  the  previous  EIB  Transparency  Policy,  the  new  policy  continues  to 
apply the “presumption of disclosure” principle to all information held by the EIB, with well-
defined exceptions based on applicable Union legislation and case-law. The EIB publishes an 
annual report on the implementation of its Transparency Policy. 

2.6.2 International Aid Transparency Initiative ("IATI") 

The EIB has continued to regularly publish data and information on its operations outside the 
Union based on the IATI reporting standard. The EIB is among the top publishers in terms of 
the  timeliness  of  publication.  IATI  data  is  updated  on  a  monthly  basis,  with  only  20  IATI 
publishers (out of 387) reaching that level of timeliness for the time being. 

2 http://www.eib.org/infocentre/publications/all/eib-group-transparency-policy.htm 
3 http://www.eib.org/about/partners/cso/consultations/item/public-consultation-on-eibs-transparency-policy-2014.htm 

5 

 
 
 
 
 
                                                            
Having  joined  IATI  in  October  2013,  and  following  the  publication  of  the  first  set  of  data 
under IATI in September 2014, the EIB remains committed to transparency and accountability 
in the use of its resources and further improving public access to information on its activities. 

2.6.3 Transparency and monitoring of investment projects  

Projects financed by the EIB are published on its website at least three weeks before they are 
considered for approval by the EIB Board of Directors. On 2 January 2014, the EIB officially 
launched its Environmental Public Register of documents,4 which has been established under 
Regulation  1367/2006  regarding  public  access  to  environmental  information  of  Community 
institutions  and  bodies.  The  Register  contains  key  project-related  environmental  and  social 
information/documents  held  by  the  EIB  such  as  the  Environmental  and  Social  Data  Sheets 
("ESDS") of  all  concerned projects approved  since 2013, including those  financed under the 
External  Lending  Mandate  ("ELM"),  and  is  continuously  updated.  All  documents  are  linked 
with the corresponding project summaries to put them into context. 

The EIB monitors the projects it finances throughout their life cycle, with financial monitoring 
from the loan signature through the project implementation and operation phase until the end 
of  the  contractual  relation  with  the  project,  i.e.  final  repayment.  Physical  monitoring  of  the 
project  continues  after  completion,  to  follow  up  on  results  and  outcomes  after  one  year  and 
then after three  further years of operation. If deemed necessary, the physical  monitoring can 
continue  for  longer.  When  projects  financed  under  the  new  ELM  reach  completion,  EIB  is 
preparing to make, where possible, relevant project completion reports available to the public, 
excluding  confidential  information.  The  EIB  has  developed  Environmental  and  Social 
Completion  Sheets  ("ESCS") 
the  EIB’s  assessment  of  project-related 
environmental and social aspects at project completion stage for all the investment projects it 
finances,  and  has  started  publishing  them  on  the  Public  Register  –  thereby  increasing  even 
further the transparency of its financing operations. 

that  provide 

2.7 

Compliance 

Compliance  is  integral  to  the  EIB’s  ethical,  professional  and  business  approach.  The 
independent EIB Compliance function promotes the highest standards of integrity and ensures 
that they are applied to all of its activities, as outlined in our integrity policy and compliance 
charter.  The  EIB  adheres  to  the  Basel  Committee  on  Banking  Supervision’s  definition  of 
compliance  risk  as  “risk  of  legal  or  regulatory  sanctions,  material  financial  loss,  or  loss  to 
reputation” to which an EIB Group member may be exposed, arising from a failure to comply 
with applicable laws, rules and regulations. 

The  EIB  Group,  consisting  of  the  European  Investment  Bank  and  the  European  Investment 
Fund, places great emphasis on integrity and good governance and is committed to the highest 
standards  of  anti-money  laundering  ("AML")  and  combating  the  financing  of  terrorism 
("CFT") in line with the principles and standards of applicable Union legislation, best banking 
practices  and  applicable  market  standards  including,  where  relevant,  other  international 
financial institutions’ standards. 

4 http://www.eib.org/register 

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The  EIB  Group  AML-CFT  Framework,  updated  in  2014  and  published  on  EIB  website, 
establishes the key principles regulating AML-CFT and related integrity aspects in EIB Group 
activities  and  aims  to  prevent  the  Group,  its  governing  bodies,  staff  and  counterparties  from 
being associated with or used for money laundering, financing of terrorism or other criminal 
activities. 

With  regard  to  the  EIB’s  external  activities  specifically,  an  underlying  theme  in  2015  was 
taxation. That issue was brought to the fore of the global agenda through the efforts deployed 
by the G20 and the Union and in particular the workings of the OECD Global Forum with the 
publication of its Base Erosion and Profit Shifting package in October 2015, as well as recent 
corporate scandals relayed in the press.  

that 

its  policy 

The  EIB  is  committed  to  maintaining  a  stringent  policy  against  tax  fraud,  tax  evasion  and 
harmful  tax  practices  in  all  of  its  activities,  including  when  lending  through  financial 
intermediaries.  It  is  constantly  monitoring  progress  in  international  standards  in  order  to 
maintain its leading role amongst IFIs in the fight against those harmful tax practices and to 
ensure 
toward  weakly  regulated,  non-transparent  and  uncooperative 
Jurisdictions  ("NCJ",  the  Non-Compliant  Jurisdictions  Policy)  keeps  abreast  of  any  material 
developments. The EIB supports the works of the Global Forum and the Commission, whose 
standards,  rules  and  guidelines  greatly  contributed  to  the  harmonization  of  more  transparent 
and  increasingly  responsible  tax  practices  for  the  EIB  activities.  EIB  is,  however,  not  a 
legislator  nor  does  it  drive  the  tax  policy  agenda  and  therefore  will  continue  to  review  its 
policies in light of lead organisations’ output. 

In  terms  of  monitoring,  the  Compliance  function  deals  with  the  on-going  monitoring  of 
compliance  risk  in  operations.  The  Compliance  monitoring  activities  are  based  primarily  on 
the assessment of ML-FT/ integrity alerts, which may be received from services or otherwise. 
Other  on-going  monitoring  activities  include  sanctions  screening,  monitoring  of  Politically 
Exposed Persons, or monitoring of transactions via Compliance clearance for certain types of 
payments. 

In  addition  to  Compliance  of  operations,  the  Compliance  function  also  strongly  supports  a 
corporate culture based on ethical values and professional conduct for its staff and governing 
bodies.  

3. 

OVERALL CONTRIBUTION TO UNION POLICY OBJECTIVES 

The  objective  of  EIB  operations  under  the  Mandate  is  to  support  relevant  external  policy 
objectives of the Union. In particular, Decision 466/2014/EU maintains specific policy goals to 
be addressed through EIB external operations in all regions covered  by the Union budgetary 
guarantee:  

(i) 

Local private sector development, in particular support to SMEs. 

(ii) 

Development of social and economic infrastructure; 

(iii)  Climate change mitigation and adaptation;  

Additional  underlying  objectives  include  the  contribution  to  the  general  principles  guiding 
Union external action, as referred to in Article 21 TEU and regional integration among partner 
countries,  including  economic  integration  between  pre-accession  countries,  neighbourhood 

7 

 
 
countries and the Union (Article 3(3) of Decision 466/2014/EU). The EIB is required to also 
undertake  financing  operations  in  eligible  countries  within  areas  covered  by  the  general 
objectives by supporting foreign direct investments that promote economic integration with the 
Union. 

Chart 1: Contribution to Mandate objectives of EIB financing operations (all resources) on ELM 
Regions (% and amount contribution) 

Comment  on  chart  1:  Each  project  financed  by  the  EIB  outside  the  Union  can  contribute  to 
several  ELM  objectives  at  the  same  time.  For  the  purposes  of  the  presentation,  when  an 
individual  operation  contributes  to  both  local  private  sector  development  and  to  the 
development of social or economic infrastructure, that contribution is prorated according to the 
assessed contribution to either i or ii general objective so that total contribution equals 100% 
of  EIB  financing.  Climate  action  and  regional  integration  are  recorded  as  “cross-cutting” 
issues on top of the 100%. 

In  2015,  the  EIB  signed  a  total  of  EUR  6.7  billion  in  the  regions  covered  by  the  External 
Lending Mandate. Of this, almost three quarters (72%, EUR 4.8 billion) was carried out under 
the ELM with an EU guarantee, an increase of 16% compared with 2014. Of the total signed 
amount in the ELM regions in 2015, 40% (EUR 2.7 billion) will support local private sector 
development,  principally  through  improving  access  to  finance  for  small  and  medium-sized 
enterprises ("SMEs"), micro-enterprises, and mid-cap companies. 60% (EUR 4.0 billion) will 
contribute to social and economic infrastructure development. All EIB operations outside the 
Union  support  one  or  both  of  those  objectives.  As  such  the  climate  change  mitigation  and 
adaptation objective can be considered as cross-cutting objective. 

32%  of  lending  (EUR  2.1  billion)  will  support  the  cross-cutting  objective  of  climate  change 
mitigation  and  adaptation.  That  support  is  spread  over  a  large  number  of  individual  projects 
this year (45), taking into account the contribution to this objective made by many operations 
that  are  focused  on  multiple  sectors  (for  example,  credit  lines  where  a  small  proportion  of 

8 

 
 
 
 
lending is estimated to support investments in renewable energy or energy efficiency measures 
by SMEs).  

Similarly,  32%,  or  EUR  2.2  billion,  will  support  the  cross-cutting  regional  integration 
objective, both through infrastructure development and through support of local private sector 
access to finance.  

3.1. 

Local private sector development, in particular support to SMEs  

3.1.1. EIB's SME support framework 

Supporting local private sector development is about creating the conditions to allow people in 
developing and emerging markets to develop and expand businesses and thereby create jobs, 
fulfil  needs  for  goods  and  services,  overcome  poverty  and  food  insecurity  and  raise  living 
standards. Ultimately, sustainable social and economic development cannot take place without 
that private sector development. 

But starting and growing business activities requires access to appropriate sources of finance, 
something  that  is  often  severely  lacking,  particularly  for  smaller  or  younger  firms,  in  higher 
risk economic environments, and in those with less developed financial systems. Often credit 
is  unaffordable,  too  short  term  for  patient,  productive  investment  activities,  or  tied  to 
prohibitive  collateral  requirements.  Often,  because  in  many  contexts  equity  financing  is  so 
underdeveloped,  firms  cannot  find  the  risk-taking  equity  finance  that  is  suited  to  rapidly 
expanding a promising new business. Even larger firms can find it hard to secure the resources 
needed  for  riskier  activities  such  as  research  and  development  ("R&D")  or  projects  with 
positive spill-overs for society and the environment.  

The EIB uses different instruments to support local private sector development. Credit lines to 
local financial intermediaries help to build effective and resilient banking systems and support 
lending  to  SMEs.  Loans  and  equity  investments  in  micro-finance  institutions  support  those 
institutions to expand their outreach to underserved areas and to develop the sophistication of 
the services they offer. Participation in private equity funds helps to provide expertise and risk 
capital  to  high-growth-potential  companies.  Lastly,  direct  loans  to  larger  companies  or  for 
R&D are used where there is a clear developmental impact that could otherwise be harder to 
finance. 

3.1.2. Local private sector development in 2015 

Twenty-six  new  projects  signed  in  2015  will  support  local  private  sector  development.  The 
total  approved  EIB  financing  for  those  projects  is  EUR  2.9  billion.  20  are  credit  lines 
supporting  SMEs;  1  supports  microfinance  activities  through  a  microfinance  investment 
vehicle  (see  Box  1);  and  5  support  R&D  activities  and  investment  projects  by  a  large 
companies. 

Box 1: Bridging the financing gap for coops and the social economy 

The EIB is financing CoopMed, an investment fund that will provide long-term financing to 
microfinance  institutions  and  local  small  banks  to  support  cooperatives,  social  economy 

9 

 
 
 
 
enterprises, micro-entrepreneurs and initiatives lead by NGOs. It is the first fund of its kind in 
the  Mediterranean  region.  The  management  team  will  build  on  experience  supporting  the 
cooperative  and  social  economy  sector  in  Eastern  Europe,  bringing  expertise  as  well  as 
advantageous  funding  to  partner  institutions  to  help  them  to  expand  their  activity  in  this 
sector.  With  operations  initially  focused  on  Morocco,  Tunisia,  and  Lebanon,  it  is  expected 
that  the  fund  will  have  a  strong  impact  on  the  rural  economy,  both  through  on-lending  to 
smallholders  and  to  agricultural  cooperatives.  Young  people  such  as  young  micro-
entrepreneurs are also expected to make up around half of the final beneficiaries.  

The  EIB  is  so  far  the  only  IFI  participating.  By  subscribing  the  largest  portion  of  the 
mezzanine  tranche  of  the  fund,  the  EIB  will  not  only  provide  EUR  2  million  in  stable 
financial resources, but is also expected to have a significant signalling effect, contributing to 
the first closing at EUR 10.5 million and the leveraging further resources to reach a target size 
of  EUR  20  million.  Given  the  fund’s  strong  explicit  focus  on  social  impact,  the  EIB  has 
decided  to  use  the  enhanced  “ReM+”  framework  to  better  monitor  results  at  the  final 
beneficiary level. An appropriate data collection system is being put into place. 

Chart 2: Contribution of new projects to local private sector development by type of operation 

Number of new projects: 

Lending volume: 

26 

EUR 2 900m  

Note: Many private sector operations also contribute to the cross-cutting climate and regional integration objectives. 

Credit lines for private enterprise 

Lending through credit lines is important to enhance access to longer-term funding for small 
businesses,  to  create  and  sustain  jobs,  and  to  strengthen  local  financial  sectors.  In 
underdeveloped  financial  systems,  even  medium-sized  and  mid-cap  companies  can  face 
financing constraints because of information asymmetries such as a lack of credit history.  

Box 2:  Revitalising Ukraine’s Agri-food sector 

The Ukraine Agri-food Apex loan is designed to give a transformative boost to the country’s 
SMEs  and  mid-caps  within  agricultural  and  food  processing  sector,  in  line  with  the  new 
Ukrainian  Agricultural  Strategy  2015-2020.  As  a  direct  loan  to  the  Ukrainian  government  it 
will  allow  resources  to  be  allocated  flexibly  between  direct  investments  in  infrastructure 

10 

 
 
 
 
 
 
 
 
 
supporting the selected agri-food value chains (e.g. laboratories and research capacity) to sub-
lending through intermediary banks and companies that lease agricultural equipment. Funding 
is  expected  to  reach  around  1 400  companies  working  in  the  cereals,  oilseeds,  fisheries  and 
aquaculture value chains, helping to support some 60 000 jobs. It will promote technological 
modernisation  in  order  to  improve  resource  efficiency,  reduce  waste,  and  enhance  product 
safety  and  quality.  This  will  reduce  negative  environmental  impacts  of  agriculture  and 
contribute to making production less vulnerable to adverse weather conditions. By contributing 
to  the  adoption  of  Union  technical,  environmental  and  phytosanitary  norms  in  Ukraine,  the 
project will help Ukraine to benefit from the removal of trade barriers and tariffs on agri-food 
products, as envisioned under the 2014 EU-Ukraine Association Agreement.  

Access  to  sufficient,  long-term  finance  is  a  key  obstacle  for  the  further  development  of  the 
sector,  particularly  at  a  time  when  the  financial  sector  in  Ukraine  is  under  strain.  Further 
support  is  expected  through  the  EU  Neighbourhood  Investment  Facility  for  blending  with 
loans  and  for  capacity  building.  It  is  expected  that  this  may  help  to  target  particularly 
underserved  groups  such  as  small  farms  and  tenant  fish  farmers.  Given  the  lack  of  local 
experience  with  this  type  of  project,  the  EIB  is  heavily  involved  in  the  design  and 
implementation of the project, drawing on lessons from similar projects in the region. 

The twenty new SME credit lines in 2015 will allow intermediary banks to make nearly 21 000 
loans  worth  nearly  EUR  2.8  billion  (some  EUR  166  million  of  which  will  support 
infrastructure  development).  Of  those  loans,  19 900  will  go  to  SMEs  which  will  have  an 
average estimated size of just 16 employees. 

Those  credit  lines  will  also  enable  intermediary  banks  to  extend  the  maturities  of  the  loans 
they offer to SMEs and mid-caps, with the average loan tenor (weighted by loan size) for the 
new  credit  lines  in  2015  expected  to  be  4.4  years.  This  is  substantially  longer  than  the 
maturities  typically  available  to  SME  in  developing  contexts.  It  is  estimated  that  loan 
maturities  across  the  20  credit  lines  will  be  on  average  127%  higher  than  the  local  market 
norm.  

By providing essential financial resources to the final beneficiaries, including SMEs, mid-caps 
and  a  small  number  of  public  bodies  and  larger  businesses,  these  credit  lines  will  help  to 
sustain the jobs of the 474 000 people employed by these entities. 

Credit  lines  can  also  be  used  to  encourage  banks  to  expand  into  the  more  challenging  SME 
sector, or by fostering sector competition by supporting second tier banks, both of which can 
have an important indirect effect of enhancing access to finance for SMEs. Four of 2015’s new 
credit lines will support  second  tier  banks  (smaller  banks  with  a lower credit rating  than  the 
leading banks in a country), while two will support banks operating in very shallow markets 
where credit to the private sector is less than 33% of Gross Domestic Product. Seven have a 
specific  focus  on  increasing  access  to  finance  for  underserved  markets  such  as  women  or 
farming communities. 

11 

 
 
 
 
 
 
 
 
 
Table 1: Supporting local private sector development – overview of key expected results 

SME/mid-
cap credit 
lines 

Expected outputs 
Total loans (EUR million) 
Total loans # 
Average loan size (EUR ‘000s) 
Average loan tenor (years) 

2 790 
20 822 
134 
4.4 

Expected outcomes 
Jobs sustained (total) 

In SMEs 
In mid-caps 
In other 

474 420 
343 560 
124 610 
6 250 

Table 2: Credit lines for private enterprise – expected results by region and firm size 

Expected outputs 

  ALA  EAST  MED 

PA 

S.A. 

  SMEs 

Number of projects 

1 

4 

3 

11 

1 

- 

Total loans (EUR million) 
Total loans # 
Average loan size (EUR 
‘000s) 
Average loan tenor (years) 

150 
1 200 
125 
2.5 

630 
5 295 
119 
4.8 

240 
200 
1 200 
5.8 

1 570 
13 553 
116 
4.1 

200 
574 
348 
5.5 

1 880 
19 890 
95 
4.0 

Mid-
caps 

- 

830 
768 
1 081 
4.8 

Other 

- 

80 
164 
488 
8.6 

Direct loans for R&D and industry 

Large  investments  by  the  private  sector  can  also  have  important  development  impacts, 
including significant positive economic and environmental spill-overs. Public funding can be 
important  to  ensure  that  such  investment  takes  place.  In  this  respect,  three  R&D  projects  in 
Turkey  were  funded  in  2015.  In  addition,  two  projects  will  support  strategic  investments  by 
large companies, including the Europac project (see Box 3). 

Box 3: Adding value in Morocco 

This  project  provides  funding  for  Europac  group,  a  Spanish  paper  and  board  manufacturing 
company,  to  establish  a  factory  for  the  production  of  carton  board  packaging  materials  in 
Tangier,  Morocco.  It  will  improve  the  ability  of  the  company  to  supply  local  customers  and 
respond to demand from the Moroccan automotive and agro-industrial sectors. The investment 
will  contribute  to  the  generation  of  employment  and  value  added  in  the  industrial  sector  in 
Morocco, a target of the country’s national industrial strategy. Morocco is currently faced with 
high  unemployment  rates,  particularly  among  youth  (nearly  35%  of  15-24  year  olds  are 
unemployed). 

The EIB is funding EUR 15 million of the EUR 31 million investment cost. The construction 
of the plant, including the civil works and the installation of the new equipment is expected to 
generate  305  person  years  of  employment,  while  the  factory  will  employ  115  full  time  staff 
when  it  becomes  fully  operational.  Furthermore,  having  a  global  packaging  company  based 
locally  will  provide  increased  opportunities  for  local  companies  in  a  range  of  sectors  to 
develop and expand export-oriented businesses in Tangier. 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The results achieved: 
In total, EUR 770 million was lent through 4 464 loans that went predominantly to micro and 
small-sized enterprises. Those 7 credit lines thereby supported companies employing 120 000 
people. 59% of these jobs were in nearly 4 400 microenterprises and SMEs (Table 6).  

Some  34%  of  total  lending  supported  manufacturing  firms,  followed  by  23%  for  the 
wholesale,  retail  and  vehicle  repair  sector,  and  7  %  for  the  accommodation  and  food  sector. 
While most credit lines had a broad sectoral mix, the credit line in Serbia had a strong focus on 
the agricultural sector, with very many loan supporting the purchase of agricultural machinery 
and  equipment.  The  Sri  Lanka  SME  and  Green  Energy  credit  line  provided  22  loans  worth 
EUR  34  million  (37%  of  the  total)  to  renewable  energy  projects,  particularly  micro-
hydropower schemes. 

Table 3: Ex post results for ten completed credit lines 

Results achieved 

All 
SMEs 

Micro 

Small  Medium  Mid-caps 

All 

Total loans (EUR million) 

601 

142 

212 

Total loans # 

4 374 

2 995 

1 026 

Average loan size (EUR ‘000s) 

144 

51 

209 

Average investment size (EUR 
‘000s) 

Average loan tenor (years) 

137 

4.0 

47 

3.8 

207 

4.1 

247 

353 

724 

700 

4.6 

169 

90 

770 

4 464 

2 131 

189 

1 877 

5.4 

172 

4.0 

Jobs sustained 

71 000 

8 200 

22 000 

40 800 

 49 034  120 034 

Additionality through extended maturities: 
The average tenor of the loans provided to final beneficiaries was 4 years. This is considerably 
higher  than  those  companies  are  typically  able  to  obtain  in  the  local  market.  It  is  slightly 
shorter  than  the  average  tenor  reported  for  completed  credit  lines  last  year,  reflecting  the 
presence  this  year  of  credit  lines  in  a  number  of  developing  countries  where  financing 
conditions are particularly difficult.  

Were the results as we expected? 
Aggregate results were broadly in line with expectations. Nonetheless, ex ante estimations for 
some individual credit lines were less accurate than the overall estimates. The average tenor of 
loans  provided  in  this  sample  was  also  lower  than  expected,  although  still  acceptable.  This 
kind of information is valuable for identifying where the ex-ante estimation of results can be 
improved. For these early Result Measurement ("ReM") operations, estimates of the number of 
jobs likely to be sustained were based on a model, using income per capita and average loan 
size,  as  described  in  the  2012  edition  of  the  EIB’s  ReM  report.5  Using  that  model  for  the  7 

5 http://www.eib.org/infocentre/publications/all/eib-rem-annual-report-2014.htm 

13 

 
 
 
 
 
                                                            
credit lines described here provides an estimate of 146 000 jobs, reasonably close to the figure 
of 120 000 jobs indicated by the actual loan allocation data for those operations.  

Direct loans for R&D and industry projects 

Two direct loans for local private sector development, which were originally appraised under 
the ReM framework, were completed in 2015 in the ELM regions. Both focused on research 
and development in Turkey. The Turk Telekom programme focused on the adaptation of new 
fixed  and  mobile  broadband  services  to  local  needs  through  the  development  of  advanced 
software  applications,  supporting  the  uptake  of  these  services  in  sectors  such  as  telecoms, 
education,  health  transport,  and  energy.  Although  Turk  Telekom  has  only  recently  started  to 
files  patents  from  the  programme,  so  far,  84  patent  applications  have  been  filed  and  10 
granted. The project has also resulted in collaboration agreements with Union-based entities. 

3.2. 

Development of social and economic infrastructure 

3.2.1. EIB's social and economic infrastructure framework 

Developing social and economic infrastructure – everything from roads and energy systems to 
healthcare facilities and broadband internet services – is one of the pillars of the development 
process. It is also a pillar where public financing is often vital, infrastructure goods often being 
public  goods  that  have  large  positive  spill-overs  for  the  economy,  the  environment  and  for 
human well-being. The EIB supports infrastructure projects in a wide range of sectors. 

There  are  29  new  projects  that  contribute  to  the  development  of  social  and  economic 
infrastructure in the ELM regions in 2015. For most of them it is possible to estimate expected 
results:  urban  transport  and  rail  projects  will  benefit  around  540 000  passenger  per  day, 
enabling them to save 37 million hours of traveling time each year; energy sector projects will 
connect  237 000  households  to  the  grid  and  generate  enough  electricity  to  potentially  serve 
over  7  million  households;  and  projects  in  the  water  and  wastewater  sector  will  provide  1.6 
million  households  with  access  to  improved  water  supply  or  sanitation.  Total  approved  EIB 
lending  for  those  new  projects  is  EUR  3.9  billion,  while  their  total  investment  cost  is  EUR 
12.8 billion.  

Infrastructure  projects  will  create  around  137 000  person-years  of  employment  during 
construction and 4 590 full-time jobs during operation. While projects in the energy, transport 
and water sectors generate the most jobs in total, the single forestry project is notable for its 
strong employment impact.  

14 

 
 
 
  
Chart 3: Contribution of new projects to strategic infrastructure objective by sector 

Number of new projects: 

Lending volume: 

29 

EUR 3 865m 

Note: Lending volumes for these multi-sector projects are prorated by sector where allocation 
by  sector  is  defined  at  appraisal.  Many  infrastructure  projects  also  contribute  to  the  cross-
cutting climate and regional integration objectives. 

Table 4: Infrastructure projects - direct employment impact 

Employment  
during operation 
(full-time equivalent) 
72 240 
33 810 
21 460 
50 
1 300 
136 705 

Employment  
during construction 
(person-years) 
1 510 
1 490 
240 
1 200 
8 000 
4 590 

Energy 
Transport 
Water and sanitation 
Waste management 
Agriculture, forestry 
Total 

Energy 

Investment in energy generation and transmission infrastructure is essential to the realisation 
of  basic  needs  and  to  wider  economic  development.  While  an  intermittent  and  poor  quality 
electricity supply is a major constraint on businesses in many developing economies, access to 
affordable  grid  electricity  can  make  an  enormous  contribution  to  standards  of  living,  with 
positive knock-on effects on education and health. The energy sector is also central to efforts 
to mitigate climate change, both through the expansion of generation from renewables and the 
achievement of greater efficiencies within existing infrastructure. 

The eleven new energy sector projects signed in 2015 include five focused on expanding and 
upgrading  power  transmission  and  distribution  networks.  Those  projects  will  enable  over 
22 160 GWh of electricity to be supplied every year, and will connect an additional 273 300 
households to the grid. Electricity transmission projects are also for meeting domestic demand 
by  enhancing  the  capacity  of  existing  networks  to  integrate  electricity  generation  from 
renewable  energy  sources  such  as  wind  and  hydropower,  as  in  the  Nepal  Power  System 
Expansion Project (see Box 8). 

15 

 
 
 
 
 
 
 
 
 
Table 5: Addressing infrastructure needs – overview of key expected results  

Energy 

 Expected outputs 

Generation capacity 

2 494 MW  

 Expected outcomes 

Annual electricity 
production 

Households potentially 
served 

New/upgraded substation   
capacity  

New/upgraded power lines  

2 901 
MVA 

2 734 km 

Annual electricity 
transported 

New households 
connected 

16 900 
GWh 

7.2 million 

24 990 
GWh 

237 300 

Transport 

Length of road 
built/upgraded  

964 lane 
km 

New/upgraded urban 
transport route 
(bus/tram/metro) 

New/upgraded urban 
stations or stops 

Vehicles or rolling stock       
purchased 

Railway track built or 
upgraded 

New/upgraded railway 
stations 

34 km 

39 

396 

221 km 

11 

Vehicles benefitting, per 
day 

207 500 

2.5 million 

Time savings (hours/year) 

Annual vehicle operating 
cost savings 

EUR 
2.1 million 

# passengers benefitting, 
per day 

Passenger time savings 
(hours/year) 

534 000 

37 million 

Rail cargo carried 
(tonnes/year) 

2.7 million  

New/upgraded water 
treatment capacity, per day 

Water & 
sanitation 

New/upgraded water 
mains/pipes 

82 200 m3 

26 km 

Households benefitting 
from improved water 
supply 

604 000 

16 

 
 
 
 
 
 
 
                       
 
 
                    
                
                    
                  
 
                     
                    
 
 
                    
                     
 
                    
New/upgraded wastewater 
treatment capacity (person-
eq.) 

New/upgraded sewer/storm 
pipes 

New or rehabilitated 
domestic connections to 
sanitation services 

Solid waste 

New sanitary landfill 
capacity (m3) 

Closed/rehabilitated 
landfill (m3) 

Agriculture 
& forestry 

New forest planted  

Area under improved           
management 

1 290 000 

945 km 

60 000 

8.4 
million 

7 million 

80 000 ha 

20 000 ha 

Households benefitting 
from improved sanitation 
services 

Wastewater treated to 
acceptable standards 
(person-equiv.) 

Waste disposed on new 
sanitary landfill (t/yr) 

Population served by new 
sanitary landfill 

GHG emission       
sequestered by forests 
(CO2 eq.) 

400 000 

200 000 

400 000 

492 000 

840 000 
t/yr 

Five  projects  in  2015  focus  on  energy  generation,  three  of  them  on  the  development  of 
renewable sources of energy. Together they will generate 3 136 GWh of electricity annually, 
sufficient  to  supply  2.45  million  people  in  the  countries  concerned.  In  one  case,  the  EIB  is 
taking  over  the  risk  from  hydropower,  transmission  system  and  energy  efficiency  projects 
initiated by the World Bank in the Ukraine. It will also free-up World Bank lending capacity to 
help  Ukraine  finance  energy  imports  in  the  shorter  term  to  avoid  the  occurrence  of  a  severe 
energy crisis.  

The single project developing non-renewable energy resources is the Damanhour Power Plant 
in  Egypt,  which  will  build  a  new  efficient  combined  cycle  gas  turbine  which  will  have  a 
massive  impact  in  overcoming  electricity  shortages  in  the  country,  producing  potentially 
enough electricity to  serve 4.7  million households. Power cuts are not just  an inconvenience 
for  Egyptian  households;  a  recent  EIB-EBRD-World  Bank  survey  has  revealed  that  local 
businesses lose 5% of their annual revenue to those interruptions. The EIB is also supporting 
the  rehabilitation  of  municipal  infrastructure  in  Ukraine,  which  will  have  a  strong  focus  on 
energy infrastructure (see Box 4). 

Box 4: Rehabilitating municipal infrastructure in Ukraine 

The Ukraine Municipal Infrastructure Programme will help address the problem of the aging 
and inefficient infrastructure in Ukraine’s towns and cities. The EUR 800 million programme, 
50% funded by the EIB, will include 20 to 40 selected projects to rehabilitate district heating 
systems,  power  plants,  public  lighting,  ventilation  and  air  conditioning  systems,  solid  waste 
management  systems  and  facilities,  water  supply  systems  or  wastewater  treatment  facilities. 
This will extend the coverage and improve the quality of essential services. It will also reduce 
negative environmental impacts and the waste of raw materials and energy. 

17 

 
 
                   
                    
 
                   
                   
 
                   
                    
                     
 
                   
 
 
 
 
 
Each  sub-project  will  be  individually  appraised  by  the  EIB  and  the  banks  will  provide 
technical  assistance  to  strengthen  institutional  and  technical  capacity  of  the  Ministry  of 
Regional  Development  and  of  municipalities.  This  will  focus  on  ensuring  efficient  project 
implementation, compliance with the EIB’s environmental and social standards, procurement 
guidelines, and corruption prevention. 

Transport 

The EIB signed six new transport sector projects in 2015. Two of them are developing inter-
urban rail links. The Route 10 rail rehabilitation project will upgrade 149 km of track through 
Kosovo  from  the  Serbian  border  to  the  border  with  FYR  Macedonia.  By  allowing  trains  to 
travel  at  up  to  100 km/hour  and  enabling  axle  loads  in  line  with  Union  standards,  it  will 
encourage  a  modal  shift  from  road  transport  to  rail  and  promote  greater  integration  with 
neighbouring  economies.  As  well  as  developing  economically  important  infrastructure,  this 
project  is  also  contributing  100%  to  the  climate  action  –  mitigation  objective,  as  it  supports 
shift to a lower carbon mode of transport. The other rail project will upgrade a critical trade 
link in Bangladesh (see Box 5).  

Urban  transport  is  another  area  that  can  combine  significant  positive  impacts  on  the 
environment, the economy and on quality of life. Three new projects will launch a new urban 
transport  system  in  Laos  (see  Box  7),  support  varied  small-scale  municipal  transport 
investments in Turkey and expand the underground metro system in Istanbul. The latter project 
will benefit about 460 000 passengers daily and help to reduce traffic congestion in the city.  

Projects  to  improve  road  transport  will  upgrade  964  lane-km  of  road  surface,  with 
accompanying  measures  such  as  drainage,  bridges,  and  safety  features.  Together,  those 
projects will benefit over 200 000 vehicles a day, saving road users around 2.5 million hours 
and EUR 2.1 million in operating costs every year. An estimated 8 road accident fatalities are 
likely to be avoided annually. One road project in Honduras that will be particularly important 
for regional economic integration is described in Box 11.  

Box 5: Removing a trade bottleneck in Bangladesh 

In  Bangladesh,  the  rail  corridor  linking  Dhaka,  the  capital,  with  Chittagong,  the  second  city 
and  main  port,  is  of  vital  economic  importance.  However,  the  condition  of  the  existing  line 
presents a significant barrier to the expansion of trade and personal travel. Currently, 203 km 
of  the  line  is  served  by  a  single  track.  As  part  of  a  programme  to  upgrade  the  whole  rail 
corridor, the EIB is lending EUR 132 million towards the upgrade of a central 70 km section 
of the corridor between the towns of Laksam and Akhaura.  

The  project  intends  to  maximise  the  capacity  of  the  line  by  not  only  upgrading  the  existing 
track but building a second track and implementing a dual-gauge to allow not only more trains 
but trains of different gauges to use the line. A new signalling system, extended stations and 
overhead capacity will increase the capacity of the line by facilitating the use of longer trains 
and enabling freight containers to be double-stacked. After completion, an additional 1 million 
tons of freight (a 200% increase) and 2.7 million passengers are expected to be carried every 

18 

 
 
 
 
 
 
 
 
 
year.  The  improvements  are  expected  to  encourage  a  modal  shift  from  road  to  rail  transport 
that  will  save  passengers  9.9  million  hours  and  avoid  64  kilotonnes  of  CO2  emissions  every 
year, from a project whose actual emissions are estimated at 62 kilotonnes of CO2 eq/year. As 
well as being economically important for Bangladesh, the upgraded rail line will enhance trade 
links and regional integration with neighbouring Indian states and Bhutan.  

Water, sanitation and waste 

Four new projects in the water and sanitation sector are being supported by EUR 493 million 
of EIB lending. Together they will improve the access to or the supply of safe drinking water 
to  some  1.6  million  households.  This  can  be  expected  to  have  very  significant  knock-on 
impacts  in  countries  where  poor  water  supply  is  a  major  cause  of  disease,  as  well as  posing 
significant financial and time burdens on low income households. 

Of particular note is also the Wadi al Arab Water System 2 project which will be important in 
helping  the  northern  parts  of  Jordan  cope  with  large  populations  of  refugees  from  Syria.  It 
consists of a new water intake facility from the King Abdullah Canal (fed by Lake Tiberius), a 
treatment plant, pumping facilities and a transmission pipeline to the Zabda Reservoir on the 
western  side  of  the  City  of  Irbid.  The  system  will  provide  an  additional  30  million  cubic 
metres of potable water per year to the Northern Governorates, and areas estimated to have an 
urban  non-refugee  population  of  around  1.47  million  people,  and  to  be  housing  around 
163 000 refugees at the time of appraisal. Some 10 percent of that project has been counted as 
contributing  to  adaptation  to  climate  change  impacts,  specifically  lower  overall  rainfall  and 
more extreme drought events.  

Adequate  sanitation  and  wastewater  treatment  is  also  vital  for  human  health  and  a  healthy 
environment. The Wastewater Treatment Project in Guayaquil, Ecuador, will connect 30 000 
households to the sewer system in the city. With the building of a wastewater treatment plant, 
associated pumping  stations and 41 km of  major  sewage  collectors, the project will improve 
sanitation services for around 300 000 people in total. The reduction of health risks related to 
water-borne  diseases  will  improve  living  conditions,  particularly  for  people  living  in  low-
income and vulnerable areas. 

A single project in the solid waste management sector will make an important contribution to 
managing the environmental impacts of waste disposal in Yerevan, the capital of Armenia (see 
Box 9). 

Agriculture and forestry 

Building on two earlier successful EIB-funded projects, the Afforestation and Erosion Control 
Project  3  will  support  reforestation  over  80 000  ha  of  degraded  land  in  Turkey,  forest 
rehabilitation on 20 000 ha and erosion control measures on a further 155 000 ha. Alongside 
significant positive environmental impacts with regard to both climate change mitigation and 
adaptation,  that  project  is  expected  to  have  a  significant  direct  employment  impact,  creating 
8 000  person-years  of  employment  during  implementation  and  1 300  permanent  jobs 
associated with natural resource use and management.  

19 

 
 
 
 
 
 
 
 
Box 6 Completed project case study: Extending access to grid electricity in Brazil 

Elektro Electricidade e Servicos S.A. distributes electricity to a 120 000 km2 area of Brazil’s 
São Paulo  and Mato Grosso  do Sul states,  home to  5.7  million inhabitants. The aim of  this 
project was to  meet regulatory  requirements  to guarantee a certain quality and reliability of 
supply, reduce losses, and increase access to electricity, including for low income households 
in  urban,  peri-urban  and  rural  areas.  Enhancing  the  capacity  of  the  electricity  distribution 
system is also needed to support economic growth.  

The  project,  completed  on  time  and  within  its  expected  cost,  involved  the  construction  or 
upgrade of 2 640 km of power lines and 21 substations. Power outages have decreased over 8 
percent  to  8.29  hours  per  year,  the  best  performance  among  Brazilian  distributors.  The 
installation of 69 000 new meters has contributed to Elektro reducing network losses to 6.8%, 
improving  the  performance  of  the  system.  It  has  been  possible  to  connect  129 000  new 
customers to the network, thus expanding access to this vital service.  

The  EIB  provided  a  EUR  95  million  loan  towards  this  EUR 191  million  project,  with  a  12 
year repayment period. It is significantly longer than maturities available in the local market, 
which typically span a maximum of seven years. Importantly, the EIB has also absorbed the 
foreign exchange risk on this loan, further facilitating investments of that type.  

This  is  the  first  infrastructure  project  appraised  under  the  ReM  framework  that  has  also 
reached completion. Expectations at appraisal were largely met and in some cases exceeded. 
The  number  of  new  customers  connected  to  the  network  was  notably  11%  higher  than 
expected and the improvement in power outages was also greater than the initial estimates.  

São Paulo Power Distribution project 

EIB contribution 

 Loan equivalent to EUR 95 m 
 FX risk taken by EIB 
 12 year tenor period, 5 years 

longer than the typical 
maximum maturity available in 
the local market  

Context 
 Growing demands 

on electricity 
network 

 High system losses 
 Demand to 

increase reliability 
of supply and 
electrification rates 
(e.g. among low 
income groups and 

  Outputs 

  Outcomes 

In first full year of 
operation (2014): 
 129 000 additional 

customers 
connected 

 Power outage time 

reduced 8.3% 

 2 640 km power 

lines new or 
upgraded  
 21 new or 
upgraded 
substations 
 69 000 meters 

installed 

 1 200 person-years 

employment 

Impacts 
 Expansion of 

access to 
electricity and 
improved quality 
of supply, 
supporting 
economic growth 
and poverty 
alleviation 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
rural areas)  

during 
construction 

3.3.  Climate change mitigation and adaptation 

3.3.1. EIB's Climate action framework 

The  EIB  supports  the  Union’s  aim  of  promoting  low-carbon  and  climate-resilient  growth 
globally,  engaging  its  technical  expertise  and  financial  strength  to  promote  sustainable 
development  in  line  with  its  sustainability  framework.  It  thus  encourages  low-carbon  and 
climate resilient growth in the EIB mandate regions as well as in all other geographic areas of 
activity (not reported here).  

Review of EIB Climate Strategy  

During  2015,  the  EIB  has  published  a  formal  External  Lending  Mandate  Climate  Strategy, 
which focuses on the following priorities: 

1) Reinforcing the impact of EIB climate financing 

The EIB Climate Strategy seeks to enhance both the financial and non-financial impact of its 
climate  finance  and  will  focus  on  steering  its  activities  towards  high  impact  climate  action 
projects. They are projects that (i) achieve significant mitigation or adaptation gains; and/or (ii) 
catalyse  and  mobilise  additional  climate  finance  from  a  range  of  sources;  and/or  (iii)  reduce 
financial  and  non-financial  barriers  to  the  investments  needed  for  the  transition  to  a  low-
carbon  resilient  economy.  Once  the  EIB  has  defined  and  identified  those  high  impact 
operations,  it  will  put  processes  and  systems  in  place  to  prioritise  them  within  the  climate 
action portfolio. 

The  EIB  will  focus  on  developing  and  diffusing  low-carbon  technologies  in  various  sectors 
with significant potential for long-term, transformational greenhouse gas emission savings: (i) 
renewable  energy  and  energy  efficiency;  (ii)  developing  transport  services  that  reduce  GHG 
emissions; (iii) water and sanitation; (iv) urban projects, managing solid waste and developing 
sustainable cities; and (v) reducing deforestation and developing “climate-smart” land use. 

2) Increasing resilience to climate change 

The  EIB  Climate  Strategy  emphasises  the  promotion  of  risk  management  approaches  to 
increase the resilience of assets, communities and ecosystems related to EIB projects. The EIB 
will  be  developing  a  Climate  Risk  and  Vulnerability  Assessment  tool  across  sectors  and 
regions to identify and address project vulnerabilities. That work will be closely coordinated 
with work in disaster risk management. Pure adaptation projects will be particularly targeted. 

The  EIB  will  continue  to  share  knowledge  both  within  the  European  Finance  Institutions 
Working  Group  on  Adaptation  to  Climate  Change  ("EUFIWACC")  group  on  adaptation  and 
resilience and in the wider IFI community – working group on climate risk screening.  

21 

 
 
 
 
3)  Further  integrating  climate  change  considerations  across  all  of  its  standards,  methods  and 
processes and collaborating with other financial institutions 

Climate  change  considerations  will  continue  to  be  mainstreamed  in  the  project  appraisal 
process. The EIB has updated its shadow price of carbon to complement the carbon footprint 
in integrating relevant environmental external costs on the analysis of projects and will work to 
incorporate  new  evidence  and  research  on  other  environmental  damages  or  benefits  in  the 
analysis.  Adaptation,  resource  efficiency  and  energy  conservation  principles  will  be  further 
taken  into  consideration  by  the  increased  coverage  of  the  EIB’s  sector  policies  and  lending 
criteria. 

The  EIB  aims  to  continually  improve  the  carbon  footprint  methodology,  learning  from  and 
exchanging with peers and partners, so the EIB works and takes an active and leading role in 
the IFI working group on GHG accounting for projects. The EIB measures its climate action 
financing  in  line  with  definitions  agreed  with  all  MDBs  and  published  in  the  MDB  Joint 
Report  on  Climate  Finance.  The  EIB  is  also  working  with  bilateral  organisations,  including 
framework organisations such as the International Development Finance Club ("IDFC"). 

The  ELM  Strategy  emphasises  the  use  of  new  and  innovative  channels  and  instruments  to 
increase the impact of ELM resources. 

The  EIB  has  the  ability  to  blend  financing  sources,  co-fund  investments  and  leverage 
significant additional public and private financing. The EIB has developed specific products, 
often  in  conjunction  with  funding  from  the  Union  or  other  donors,  to  catalyse  private 
investment  and  leverage  public  funds.  For  those  activities,  the  EIB  is  either  using  its  own 
resources,  for  which  it  created  a  special  activities  reserve  to  allow  greater  risk-taking 
capabilities, or combining its financing activities with public funds provided by Member States 
and  the  Commission.  The  EIB  will  seek  strong  cooperation  with  the  Green  Climate  Fund 
("GCF"), develop further the EIB’s green bonds – the Climate Awareness Bonds – and scale 
up  engagement  with  privateinvestors  through  mechanisms  like  the  Global  Energy  Efficiency 
and Renewable Energy Fund ("GEEREF"). The strategy also clarifies sectorial and operational 
aspects of EIB external action. 

Climate Risk Screening 

Both the ELM Climate Strategy and EIB’s recently approved Climate Strategy emphasize the 
promotion  of  risk  management  approaches  to  increase  the  resilience  of  assets,  communities 
and  ecosystems  related  to  EIB  projects.  The  EIB  is  developing  a  Climate  Risk  and 
Vulnerability  Assessment  tool  kit  across  sectors  and  regions  to  identify  and  address  project 
vulnerabilities.  It  will  allow  EIB  to  identify  priorities  and  support  adaptation  actions  in  its 
financing. 

The EIB has committed to the European Parliament that the EIB is systematically screening of 
all new ELM (and African, Caribbean, Pacific "ACP") operations against their climate risks at 
pre-appraisal  stage  in  order  to  address  project  vulnerabilities.  The  system,  still  under  final 
development, builds upon earlier pilot phases and is currently basic and manual, but by 2017 a 
fully integrated system is planned to be in place. 

22 

 
 
In 2015, all projects under ELM were subject to that screening. At pre-appraisal stage a triage 
of  all  new  projects  was  carried  out  by  EIB’s  Climate  Change  Specialist.  The  projects  are 
grouped into three categories: 

1. 

2. 

3. 

Low climate risk, Framework loans and credit lines 

Medium- to high risk 

Projects with expected appraisal 6 months or later 

Firstly, projects considered low climate change risk as well as projects where the underlying 
sub-projects  are  still  unknown,  e.g.  credit  lines  and  framework  loans,  are  not  assessed  but 
country  level  information  on  climate  change  impacts  is  highlighted  to  the  project  teams. 
Secondly, the potential medium and high climate risks are controlled for whether a climate risk 
assessment  has  already  been  carried  out  by  the  promoter  or  another  co-financier,  such  as 
another MDB or IFI. Thirdly, the remaining projects are grouped in two categories according 
to  their  expected  appraisal.  Projects  with  expected  appraisal  within  the  next  six  months  are 
screened with either a commercial online climate screening tool, by EIB’s own experts, or by 
external consultants. 

In 2015, 125 projects under the ELM were at pre-appraisal stage, of which: 

1. 

2. 

3. 

Low climate risk, framework loans and credit lines: 21 projects 

Medium- to high risk: 59 projects 

Projects with expected appraisal 6 months or later: 45 projects 

To  enhance  the  resilience  of  new  investments,  the  current  climate  risk  screening  “manual” 
phase is being actively enhanced through exploring the EIB’s specific screening needs through 
learning-by-doing,  gathering  feedback  from  the  project  teams,  and  exploring  alternative 
screening options. 

Carbon Footprint  

The EIB Carbon Footprint Exercise ("CFE") estimates and reports Greenhouse Gas emissions 
from projects (not only climate action projects) where, in one standard year of operations:  

absolute emissions (actual emissions from the project) exceed 100 000 t CO2-eq/year; 

• 
and/or 

relative  emissions  (estimated  emissions  increases  or  avoidance  compared  to  the 

• 
expected alternative) exceed 20 000 t CO2-eq/year. 

Absolute emissions refer to the direct emissions of the project itself (Scope 1 emissions) plus 
emissions from generation of the power supply used by the project (Scope 2 emissions). Scope 
3 emissions (other indirect emissions) are not normally included in project data; however, they 
are  included  for  physical  infrastructure  links  such  as  roads,  railways  and  metros.  Relative 
emissions  are  estimated  by  comparing  the  absolute  emissions  with  the  emissions  from  a 
baseline identified as the expected alternative.  

23 

 
 
Whilst relative emissions are important for comparing technologies and projects, at the heart of 
the EIB’s footprinting approach are the absolute emissions from each project, as these are what 
will  ultimately  affect  our  climate.  Individual  project  GHG  data  is  assessed  at  appraisal,  and 
reported  on  the  EIB’s  Environmental  and  Social  Data  Sheets  (ESDS).  For  the  purposes  of 
aggregated annual reporting, project emissions are prorated to the volume of EIB funding of 
each project that year, thus avoiding possible double counting with the reporting of other IFIs. 

In  2015,  23  of  the  projects  in  the  ELM  regions  (including  signed  operations  and  large 
allocations  approved  during  the  year)  were  included  in  the  2015  Carbon  Footprint  Exercise. 
They  represent  total  EIB  signatures  or  allocation  approvals  of  EUR  2.7  billion.  The  related 
total  absolute  GHG  emissions  are  estimated  as  1.4Mt  CO2-eq/year  (the  low  absolute  figures 
being due to a large number of forestry projects which will sequester CO2) with saved/avoided 
emissions estimated at 1.3Mt CO2-eq/year overall from the same financing.  

All climate action data and GHG figures will be subject to EIB's 2016 Sustainability Audit. 

3.3.2. EIB's Climate action in 2015 

Of the new project lending approved for the ELM regions, EUR 2 billion will contribute to the 
cross-cutting  policy  objective  of  climate  change  mitigation  and  adaption.  It  will  be  achieved 
through  a  large  number  of  projects  across  almost  all  sectors;  all  of  these  projects  also 
contribute  to  local  private  sector  development  or  the  development  of  social  and  economic 
infrastructure. 

In  many  cases,  only  part  of  a  project  contributes  to  the  climate  change  objective  and  only  a 
proportion  of  that  project’s  lending  total  is  therefore  reported  as  contributing  towards  the 
objective. Analysis of the results of past EIB projects has revealed that many projects make a 
small  contribution  to  action  on  climate  change  even  if  this  is  not  the  main  objective  of  the 
project. Such small contributions add up to make a significant difference. A typical example is 
a  credit  line  for  SMEs  in  which  some  investment  projects  by  beneficiary  businesses  involve 
achieving  greater  energy  efficiency  in  buildings  or  installing  small-scale  renewable  energy 
generation capacity, such as  solar panels.  Accordingly,  some 41 of the new projects in  2015 
contribute  to  the  climate  action  objective.  They  include  16  credit  lines.  The  EIB  applied  in 
2015 an  estimate  of 2%  as  the likely climate  content that will be found in  future  allocations 
under credit lines signed in 2015 .  

Nonetheless,  by  far  the  largest  contribution  to  climate  action  continues  to  come  from  larger 
projects  in  the  transport  and  energy  sectors  which  together  account  for  68%  of  new  climate 
action lending outside the Union in 2015. The agriculture and forestry sector also continues to 
play an important role. 

24 

 
 
 
Chart 4: Contribution of new projects to climate change objective by sector (EUR million) 
Number of new projects: 

Lending volume (EUR million): 

41 projects 

EUR 2 041m 

Lending  volumes  for  multi-sector  projects  presented  in  chart  4  are  prorated  by  sector  where 
allocation by sector is defined at appraisal. The climate change objective is cross-cutting: all 
projects also contribute to the private sector development or social and economic infrastructure 
objectives. All climate action data figures will be subject to EIB's 2016 Sustainability Audit. 

Climate friendly transport 

Investing  in  lower-carbon  modes  of  transport  such  as  rail  and  urban  mass  transit  systems, 
which enable and encourage a shift from heavily polluting road transport, is an important way 
of reducing carbon emissions overall. At the same time, it is a way of improving the quality of 
life for passengers and urban dwellers and fostering economic growth and poverty reduction. 

New  climate  action  projects  in  2015  include  six  transport  sector  projects.  The  Istanbul 
Underground Rail Network project will construct a new 23 km metro line with 18 stations. It 
will facilitate the movement of Istanbul's citizens through the heavily congested business and 
economic  core  of  the  city,  linking  it  with  the  more  residential  areas  in  the  north-western 
districts of Istanbul. It will offer a sustainable mode of transport, saving time, improving living 
conditions,  reducing  air  and  noise  pollution,  as  well  as  protecting  human  lives  through 
reduction in accidents. It will be used by around 460 000 passengers every day. The absolute 
carbon footprint of the project is estimated at 33 kt CO2 eq/year. However, by encouraging a 
modal  shift  from  road  transport,  it  is  estimated that  emissions  will  be  reduced  by  43  kt  CO2 
eq/year. 

Another project will  establish an urban  mass transit  system in  Vientiane, the capital  of Laos 
People’s  Democratic  Republic  (see  Box  7),  whilst  the  Laksam-Akhaura  rail  project  in 
Bangladesh (Box 5) will enable 1.5 million tonnes of cargo to be carried by rail every year. It 
will be associated with absolute emissions of 62 kt CO2 eq/year, whilst achieving an emissions 
reduction  of  an  estimated  64 kt  CO2  eq/year,  relative  to  the  expected  alternative  scenario. 
Smaller scale urban mass transport projects will be the focus of a EUR 250 million credit line 
to Iller bank in Turkey. 

Box 7: Sustainable Urban Transport in Vientiane 

The  development  of  urban  transport  in  Vientiane,  capital  of  the  Lao  People's  Democratic 

25 

 
 
 
 
 
 
 
 
Republic,  has  followed  an  increasingly  unsustainable  path.  Car  ownership  almost  tripled 
between 2005 and 2012, while motorcycle ownership doubled. Only 1 percent of journeys are 
made by bus; the rest by motorcycle, car or auto rickshaw or “tuk tuks”. The consequences of 
increased motorisation are increased congestion, road accidents, and GHG emissions.  

The EIB supports the National Government’s sustainable development  strategy to facilitate a 
shift  from  private  to  public  transport.  The  EIB  will  provide  a  USD  20  million  loan  to  help 
finance a Bus Rapid Transit system with 11.5 km dedicated bus-ways, 21 enclosed stations and 
96 new buses that will improve traffic flow and safety across the capital. The introduction of 
parking  management  and  vehicle  registration  systems  will  enable  traffic  management  and 
improve accessibility for pedestrians and other non-motorised traffic. Those improvements are 
expected to encourage a shift from private to public transport that will reduce CO2 emissions 
whilst  saving  1.5  million  hours  per  year  for  bus  passengers.  The  project  will  benefit  from 
technical assistance provided by the EIB and funded through a EUR 5 million grant provided 
by the Asian Investment Facility. 

Energy from renewables 

Eight  new  energy  sector  projects  in  2015  will  contribute  to  mitigation  of  climate  change,  as 
will  a  number  of  multi-sector  projects  with  a  component  focused  on  renewable  energy 
generation.  Total  generation  from  renewables  will  be  some  3 136  GWh  per  year,  enough  to 
potentially  supply  2.445  million  households  in  the  countries  concerned.  The  Warsak 
hydroelectric  project  in  Pakistan  will  consist  in  the  rehabilitation  of  an  existing,  50  year  old 
hydropower  plant,  which  would  otherwise  be  required  to  cease  operation  due  to  the 
deterioration  and  obsolescence  of  plant  and  equipment.  The  rehabilitation  will  restore  its 
generating capacity to the original 243 MW, enabling the plant to produce enough electricity 
once  more  to  supply  the  equivalent  of  around  810 000  households  in  the  country.  With 
absolute emissions of effectively zero, that project will reduce emissions by an estimated 335 
kt CO2 eq/year compared with the expected alternative power sources. 

The  Negev  Solar  Thermal  project  in  Israel  is  smaller,  but  will  be  important  for  helping  to 
demonstrate  the  viability  of  that  new  technology  in  a  region  with  enormous  solar  energy 
potential.  It  will  supply  the  equivalent  of  around  87 000  households,  and  with  absolute 
emissions of 55 kt CO2 eq/year, this project will reduce emissions by an estimated 185 kt CO2 
eq/year compared with the expected alternative power sources. 

One  of  the  key  challenges  with  the  development  of  renewable  energy  sources  is  their 
integration into electricity transmission networks. Creating capacity for the future expansion of 
renewables  is  thus  a  key  aim  of  a  number  of  new  electricity  transmission  projects.  The 
Nicaragua  hydro  development  project  will  result  not  only  in  the  installation  of  a  235  MW 
hydropower plant capable of supplying nearly 1.4 million Nicaraguan households, but also in a 
21%  increase  in  capacity  of  the  national  transmission  system,  creating space  also  for  further 
development of renewables. Counting 85% towards Climate Action Mitigation objective, and 
with moderate emissions overall of 217 kt CO2 eq/year, that project will avoid emissions by a 
significant amount - an estimated 532 kt CO2 eq/year compared with the expected alternative. 

26 

 
 
 
 
 
 
 
 
That  kind  of  grid  adaptation  to  accommodate  generations  from  renewables  is  also  a  central 
objective  for  the  Nepal  Power  System  Expansion  Project  and  the  Nepal  Grid  Development 
Programme (see Box 8). 

Box 8: Expending Nepal’s power grid 

Nepal is facing chronic power shortages, particularly during the dry season. Only 65% of the 
country’s households have access to electricity, with only 56% connected to the national grid. 
Many  Nepalese  are  becoming  increasingly  reliant  on  self-generation  from  diesel  generator 
units.  

This project will provide modern, efficient, and reliable transmission infrastructure to supply 
electricity from hydropower schemes in the Himalayan region to meet the increasing demand 
for  power  in  the  main  load  centres  in  Nepal,  in  particular  in  the  Kathmandu  Valley.  The 
economic benefits include an increase in electricity access rates, a reduction in unmet demand, 
lower  transmission  system  losses,  and  substitution  of  clean  energy  from  indigenous 
hydropower resources for expensive and polluting oil-fired diesel generators. 

The  project  will  construct  seven  new  high  voltage  transmission  lines  (386  km  in  total)  to 
connect  hydropower  schemes  in  the  Himalayan  region  to  the  national  grid.  This  will  enable 
the delivery of an estimated 1 900 GWh/year, helping to alleviate the acute power deficit. In 
the  longer  term,  Nepal  will  increasingly  be  able  to  export  energy,  as  the  high-voltage 
transmission  network  is  further  expanded  and  additional  hydropower  generation  capacity  is 
added to the national grid. The EIB will provide EUR 95 million towards the total EUR 270 
million investment cost. 

Energy efficiency 

The rehabilitation of existing infrastructure as well as all kinds of commercial and residential 
buildings can achieve important reductions in demand for energy and thus our demands on the 
environment.  Aging  power  transmissions  systems  present  a  significant  opportunity  for 
efficiency gains. Smaller energy efficiency gains can also be achieved in other infrastructure 
sectors  such  as  water,  with  the  Wastewater  treatment  project  in  Guayaquil,  for  instance, 
achieving a saving of 0.75 MW per year through more efficient equipment. 

The solid waste sector can also make an important contribution to mitigating climate change, 
not so much through energy efficiency gains in the narrow sense, but rather through increasing 
the  efficiency  of  materials  recovery  through  recycling  and through  reducing  GHG  emissions 
from landfill. 

A  substantial  contribution  to  greater  energy  efficiency  will  be  made  by  framework  loans  for 
smaller projects implemented by local public authorities, and by certain dedicated credit lines 
for  SMEs.  The  Ukraine  Municipal  Infrastructure  Programme  will  both  extend  the  coverage 
and  reduce  the  energy  intensity  of  essential  services  including  district  heating,  municipal 
lighting and new water, wastewater and solid waste systems. The refurbishment of buildings 
will also contribute to efficiency gains. 

27 

 
 
 
 
 
 
 
 
 
 
Another  significant  new  intermediated  operation  is  the  Facility  for  Euro-Mediterranean 
Investment  and  Partnership  ("FEMIP")  Sustainable  Energy  Facility,  which  contributes  100% 
to  the  climate  action  objective,  under  which  credit  lines  will  be  provided  to  local  financial 
institutions  in  Jordan  and  Morocco  to  finance  energy  efficiency  and  small  renewable  energy 
investments  by  industry,  SMEs,  agribusinesses,  and  households.  It  is  envisaged  that  75%  of 
the Facility will be used to finance energy efficiency investments and 25% for small renewable 
energy investments. 

It  is  in  the  nature  of  those  intermediated  operations  that  the  selection  of  sub-projects  is  not 
known  ex  ante  and  that  climate  impacts  and  other  results  cannot  therefore  be  meaningfully 
estimated in advance. Energy efficiency gains for the new projects where estimates have been 
possible  total  400  GWh  per  year.  A  further  47  GWh  per  year  will  be  saved  through  losses 
reduction in two power distribution projects. 

Box 9: Better waste management in Armenia 

In Yerevan, the capital of Armenia, the existing unsanitary landfill poses considerable risks for 
public  health  and  the  environment.  Effects  include  windblown  litter,  fires,  discharge  of 
contaminated  water  and  emissions  of  greenhouse  gases.  Improvement  of  solid  waste 
management is a priority for the country. 

In response, the EIB is lending EUR 17 million and has mobilized EUR 2 million investment 
grant  from  Eastern  Europe  Energy  Efficiency  and  Environmental  Partnership  ("E5P") 
Regional Fund towards a EUR 35 million project to close and rehabilitate the old landfill and 
build  a  new  sanitary  one.  With  approximately  8.4  million m3,  the  new  landfill  will  receive 
400 000  tonnes  per  year  of  solid  waste,  serving  1.9  million  residents  in  Yerevan  and 
surrounding  areas.  In  addition,  measures  for  reducing  and  diverting  waste  such  as  the 
collection  of  recyclable  materials  and  bio-waste,  recycling  centres,  material  recovery  and 
composting facilities will be evaluated and implemented. These measures are expected to have 
a demonstration effect, leading to similar projects being developed elsewhere in Armenia. The 
EIB  will  provide  technical  assistance  for  both  the  rehabilitation  of  the  old  landfill  site  and 
identifying waste diversion measures. 

With emissions during operation estimated at 87 kt CO2-eq/year, the project will contribute to 
climate  change  mitigation  as  it  will  reduce  emissions  from  local  dumpsites  by  an  estimated 
140 kt CO2-eq/year. The project will also help to improve public health and quality of life in 
Yerevan. 

Agriculture and forestry 

Investment  in  those  sectors  can  play  a  critical  role,  not  just  in  mitigating  climate  change 
through carbon sequestration, but also in enhancing the resilience of food production systems 
to  changing  climatic  patterns.  The  Ukraine  Agri-food  Apex  Loan  will  both  promote  greater 
resource  efficiency  in  the  agriculture-food  value  chain  and  also  help  to  improve  the  climate 
resilience of the sector.  

28 

 
 
  
 
 
 
 
 
 
 
The  Afforestation  and  Erosion  Control  Project  3,  also  mentioned  in  section  3.2.1.,  will 
contribute  strongly  to  climate  change  mitigation  through  enhanced  forest  growth  and  the 
fixation/sequestration of carbon. It is estimated that around 60kt CO2 eq/year would have been 
sequestered  by  the  existing  degraded  forest.  With  the  planned  afforestation  and  forest 
rehabilitation, sequestration is estimate to increase to 840 kt CO2 eq/year. The operation is also 
expected to ensure the future  supply of  forest-based  renewable resources to  the local private 
sector.  Around  15%  of  the  annual  harvest  may  eventually  be  used  for  renewable  energy 
production from wood. In addition, this project supports adaptation to climate change impacts 
by focusing directly on erosion control in a climate change scenario. 

Box 10: Supporting growth with wind power in Morocco 

Morocco has experienced rapidly growing demand for electricity as living standards improve. 
At  the  time  when  this  project  -  ONE  Parc  Éolien  de  Tanger  –  was  appraised  in  2003, 
electricity demand was predicted to double in 15 years, a prediction which is so far proving 
accurate. Sustaining that growth without severe negative impacts on the environment remains 
a  key  challenge  for  the  country,  however.  In  2003,  generation  from  renewable  sources 
accounted for only 6% of Moroccan electricity supply. 

The aim of this EUR 237 million project was to develop a wind farm 15 km east of Tangier, 
on the northern cost of Morocco,  to expand  and  diversify the country’s generation capacity 
using  an  abundant  renewable  resource.  The  EIB  provided  EUR  80  million  funding  to  be 
repaid over 15 years, the expected life of the project.  

The  project  is  sited  in  a  sparsely  populated  area,  on  poor  quality  land  mostly  used  for 
livestock  grazing  and  forestry,  and  with  no  nearby  areas  of  conservation  significance. 
However,  the  site  is  located  on  one  of  the  main  routes  for  birds  migrating  between  west 
Europe and Africa. The EIB was therefore heavily involved in project preparation and early 
implementation, to minimise risks of negative impacts of the farm on migratory birds. With 
the  support  of  a  leading  international  ornithological  institute,  the  placement  of  the  wind 
turbines  was  carefully  designed  to  create  great  safe  corridors  for  migrating  birds  and  to 
minimize the risks of bird strike.  

The EIB also linked its financial support to a number of actions to be taken by the promoter 
in  the  project  preparation  phase.  These  actions  included  the  appointment  of  an  engineering 
consultant  to  provide  technical  assistance  during  implementation;  the  selection  of  wind 
turbines  acceptable  to  the  EIB  based  on  proven  operating  experience;  and  satisfactory 

29 

 
 
 
 
 
 
 
completion of a public consultation procedure by the local authorities to ensure that minimize 
impacts on local communities were minimised. Successfully addressing those environmental 
issues required some delays in implementation. 

The completed project comprises 165 wind turbines with a combined generation capacity of 
140 MW, an underground electrical grid connecting the turbines to a new 225 kV substation 
and  3  km  overhead  line  linking  the  project  to  the  existing  high  voltage  substation  at 
Melloussa.  

Since entering into full operation, the wind farm has so far generated around 454 GWh per 
year, enough to supply about 320 000 households in Morocco. It is around 10% lower than 
expected due to wind conditions that have been slightly less favourable than forecast over that 
period.  Nonetheless,  the  farm  remains  an  economically  competitive  alternative  to  thermal 
generation  within  the  Moroccan  power  system,  such  as  a  Combined  Cycle  Gas  Turbine, 
generating an economic rate of return of around 13% and of course, operating with very low 
absolute greenhouse gas emissions. 

This  was  the  second  wind  farm  to  be  developed  in  Morocco,  after  Parc  Eolien  de  Tetouan 
which was also part-financed by the EIB and which first demonstrated the potential of wind 
power in the country. The farm in Tangier contributes to the realisation of this potential. 

3.4. 

Regional integration among partner countries 

3.4.1. EIB's Regional integration framework 

Improving links amongst partner countries, and between partner countries and the Union, is a 
cross-cutting  objective of  the  EIB’s  action  outside  the  Union.  EIB  projects can  contribute to 
regional  integration  by  facilitating  the  physical  movement  of  goods  and  labour,  but  also  by 
fostering  international  collaboration  in  the  private  sector,  and  supporting  the  convergence  of 
neighbouring countries’ economies towards the Union.  

In  that  context,  the  EIB  is  to  undertake  financing  operations  in  beneficiary  countries  that 
support  foreign  direct  investments  from  EU  companies  which  promote  economic  integration 
with the Union and technology and knowledge transfer. 

As  a  horizontal  priority,  EIB  support  for  regional  integration  often  is  realised  through  its 
lending  in  support  for  other  objectives  such  as  infrastructure  or  private  sector  support.  For 
example, the EIB also promotes access to markets and development of value chains, including 

30 

 
 
 
 
 
 
 
operations  specially  focused  on  the  EU’s  Deep  and  Comprehensive  Free  Trade  Agreement 
("DCFTA") policy framework. 

3.4.2. EIB's Regional integration action in 2015 

The  EIB  signed  16  new  projects  in  2015  that  contribute  to  regional  integration.  The  total 
approved  EIB  finance  for  these  projects  was  EUR  2.3  billion.  Those  projects  cover  energy 
interconnections,  transport  links,  regional  equity  funds  and  support  to  convergence  through 
local private sector development. 

Chart 5: Contribution of new projects to the regional integration objective, by sector 
Number of new projects: 

Lending volume: 

16 

EUR 2 305m 

Note:  Lending  volumes  for  multi-sector  projects  are  prorated  by  sector  where  allocation  by 
sector  is  defined  at  appraisal.  The  regional  integration  objective  is  cross-cutting:  all  projects 
also  contribute  to  the  private  sector  development  or  social  and  economic  infrastructure 
objectives.  

Energy interconnections 

The regional integration of energy resources can be important in opening opportunities for the 
development of renewable resources, matching generation potential in one location to demand 
in  another.  Energy  network  connections  can  also  be  vital  for  enhancing  security  of  energy 
supplies. 

The  Caucasus  Transmission  Network  project  consists  of  the  construction  of  an  electricity 
transmission line and a High Voltage Direct  Current station to create an interconnection link 
between Armenia and Georgia. The link will allow continuous energy trade between the two 
countries, enabling Armenia to access better regional and, via Georgia and Turkey, European 
markets.  The  link  will  transport  an  estimated  1073  GWh  annually  and  improve  security  of 
electricity  supply  in  both  participating  countries.  For  those  countries,  ensuring  a  reliable 
supply of electricity is one of the conditions to attract and encourage investments which will 
further lead to job creation and poverty alleviation. 

Transport links 

Transport projects can promote regional integration in the most tangible of ways: by enabling 
easier, faster and safer movement of people and goods across borders and regions. Four new 

31 

 
 
 
 
 
 
 
 
transport  projects  will  have  that  effect.  The  Laksam-Akhaura  rail  project  in  Bangladesh  will 
dramatically  increase  the  capacity  of  a  key  trade  route,  not  only  for  Bangladesh  but  also  for 
neighbouring  countries  India  and  Bhutan.  The  Honduras  road  project,  meanwhile,  will 
encourage greater economic integration between Honduras, Guatemala and El Salvador (Box 
11).  

The Route 10 rail project in Kosovo runs directly from Serbia to FYR Macedonia and will help 
to bring those three economies closer together by facilitating movement between them. Lastly, 
one  project  will  implement  essential  safety  upgrade  works  in  the  main  airports  of  Malawi, 
helping  to  ensure  that  international  carriers  can  use  these  airports  and  thus  maintaining  vital 
links with the rest of the region and the world. 

Box 11: Connecting Honduras, Guatemala and El Salvador 

The Corredor de Occidente connects the industrial capital of Honduras, San Pedro Sula, by 
road  to  Guatemala  and  El  Salvador.  The  corridor  is  of  both  national  and  international 
importance due to its impact on regional integration and cross-border trade. Recently signed 
customs agreements between the three countries are expected to lead to increased trade and 
traffic along the route. However, sections of the corridor are in a very poor state: large pot-
holes, gravel sections, landslides and lack of signage raise travel times and undermine safety.  

The EIB will contribute EUR 83.8 million to rehabilitate 116 km of the corridor, bringing it 
in line with the European Commission’s Road Safety Directive  - a first for the country. In 
partnership with the Latin America Investment Facility, the project encompasses a capacity 
building  program  that  will  ensure  enhanced  road  safety  through  capacity-building  for  road 
safety audits. The improvements implemented by the project are expected to save travellers 
2.5 million hours and reduce vehicle operating costs by EUR 2.1 million every year, whilst 
also reducing the number of road fatalities. Moreover, the increased connectivity and trade is 
expected to support development in the Copan region, one of the most deprived regions in 
Honduras, and strengthen Honduras’ position as a logistical centre in Central America. 

Supporting economic convergence 

The process of private sector development which the EIB supports through its credit lines can 
lead to regional integration where it helps enterprises meet the standards which are required for 
exports into other regions – such as the EU. That is why EIB support for SMEs and mid-caps 
in  the  pre-accession  region  and  some  other  Union  neighbours  is  regarded  in  general  as 
contributing  to  the  objective  of  supporting  regional  integration.  In  some  cases  such  as  the 
Ukraine  Agri-Food  Apex  Loan,  helping  local  producers  to  meet  Union  standards,  thereby 
opening up opportunities for regional trade with the Union, is an explicit focus.  

Funding  for  research  and  development  activities  may  also  have  a  strong  regional  integration 
element,  with  funding  often  leading  to  intensified  collaboration  between  EU  research 
institutions and institutions outside the Union, helping to develop lasting economic links. One 
such R&D project that was originally appraised under the ReM framework reached completion 
in 2015. 

32 

 
 
 
 
 
 
 
 
 
Box 12: EU-Turkey research collaboration 

The Tübitak Research Promotion project was signed in 2012 and completed in 2015. It helped 
to  fund  the  Turkish  public  research  promoter’s  Academic  and  Industrial  RDI  programmes, 
covering both basic research and downstream innovation activities. In line with EU priorities 
concerning the strengthening of the common European Research Area and the integration of 
Turkey into this area, the programme resulted in an average of 140 applications for EU FP-7 
and  Horizon  2020  funding  in  collaboration  with  researchers  in  Member  States  (on  average 
15% were successful). The programmes also resulted in an average of 1 250 patents granted 
per year and helped to support 212 000 person-years of employment. The EIB loan provided 
upstream financing to research targeted, since 2014, by the European Investment Fund’s TTA 
Fund focussing on commercialisation of intellectual property. The RDI investment financed 
can be expected to help the Turkish economy to diversify and raise productivity, improving 
long-term growth prospects and economic integration with the Union.   

3.5.  EIB additionality 

The  EIB  is  not  expected  to  merely  duplicate  what  the  market  is  already  able  to  provide.  Its 
interventions provide more support than just standard loans. For example, the EIB’s loans may 
be of longer tenor than is usual in the market, or may be combined with technical advice where 
project  promoters  lack  of  experience  or  institutional  capacity.  The  EIB  may  also  use  higher 
risk instruments. Furthermore, the EIB’s role goes beyond lending and includes the ability to 
attract  finance  from  other  development  institutions  or  private  players,  blending  loans  with 
grants and providing advisory services. 

The ReM framework measures that “additionality” (Pillar 3), the difference between  the EIB 
contribution  to  an  investment  project  and  standard  market  finance,  in  three  dimensions:  the 
adequacy of financial resources for the needs of projects; the EIB’s technical contribution; and 
the impact in terms of raising standards and facilitating contributions from other sources. The 
overall EIB additionality is rated on a scale of 1-Low, 2-Moderate, 3-Significant and 4-High, 
taking into account the three dimensions above. 

In a large majority of the 49 new projects in 2015, the “additionality” of EIB support is rated 
“significant” (33), or “high” (7). 9 received a  “moderate” rating.  The degree  of additionality 
tends to be higher for complex projects in less developed regions, where the needs of project 
promoters  are  greatest,  and  less  pronounced  where  the  EIB  deals  with  very  experienced 
promoters  and  intermediaries.  For  that  reason,  the  most  projects  with  a  “high”  additionality 
rating were in the Eastern neighbours and Mediterranean regions, while the additionality of 5 
projects in the Pre-accession region was rated only “moderate”.  

33 

 
 
 
 
 
Chart 6: Additionality (Pillar 3) ratings – new projects 

Note: Pillar three assesses the additionality of EIB involvement. The P3 rating aggregates the 
three sub-components: financial Instrument, standards and assurance and technical and sector 
contribution.  

Financial contribution 

Tenor extension 

The ability of the EIB to provide long-term funding that is often otherwise unavailable is one 
of the key elements of its contribution. Nearly all new operations in 2015 provide a tenor to 
project  promoters  or  financial  intermediaries  which  exceeds  the  typical  maturity  available  in 
local markets. In most cases, the terms of EIB finance provide a close match to the economic 
life of the assets to be financed. The tenor provided for new projects in 2015 – around 15 years 
on average – is estimated to be, on average, around two and a half times greater that available 
in the local market.  

Table 6: Average tenor provided, by type of operation 

Type of operation 

Direct and framework loans for 
infrastructure projects 

Credit lines for SMEs, mid-caps 
and micro-enterprises 

Direct loans for industry and R&D  

Funding in local currency 

Years 

21.6 

10.0 

8.0 

For  selected  operations,  the  EIB  can  use  different  mechanisms  in  order  to  absorb  foreign 
exchange  risk.  It  can  make  funding  more  attractive  for  borrowers,  including  the  final 
beneficiaries  of  intermediated  operations  whose  activities  are  focussed  on  domestic  markets. 
Within the ELM regions, three credit lines in Turkey benefited from local currency funding. In 

34 

 
 
 
 
 
 
Turkey the EIB uses swap products which are available in the market to offer local currency 
funding. 

Blending loans and grants 

The EIB works to mobilise and manage grants from third parties alongside its loans. This is a 
significant source of additionality, particularly in the Mediterranean countries, as well as in the 
Eastern Neighbourhood. Twelve new projects benefitted from grants in 2015, five in Eastern 
Neighbours,  four  in  ALA  and  three  in  the  Mediterranean  region.  For  example,  the  FEMIP 
Sustainable  Energy  Facility  aims  to  provide  credit  lines  to  local  Financial  Intermediaries  in 
Jordan and Morocco to finance energy efficiency and small renewable energy investments in 
the industrial, SMEs, agri-food and residential sectors. The project, which is co-financed with 
the EBRD (lead financier), AFD and KfW, is expected to benefit from two Union investment 
grants from the Neighbourhood Investment Facility ("NIF") to provide investment incentives 
to sub-borrowers and to finance technical assistance. 

Innovation 

EIB operations are considered innovative when the EIB can offer certain activities or products 
in  a  specific  market  context  that  other  IFIs  do  not  offer,  or  because  the  structure  of  the 
operation  provides  for  a  special  partnership  with  project  promoters.  The  Guarantee  for 
Economic  Development  in  Ukraine  is  such  an  operation,  representing  a  new  arrangement  to 
make optimum use of the capabilities of the EIB and other IFIs for the benefit of the country’s 
short and long-term energy development and security.  

Enhancing standards and mobilising resources 

Raising standards 

The EIB seeks to  ensure  that all the projects it lends to  have high  environmental, social  and 
procurement  standards,  and  the  requirements  that  accompany  EIB  funding  often  play  an 
important role in raising such standards. In 76% of operations, the EIB’s role in that regard is 
rated significant or high. One example is the Modernisation Routiere 2 programme, which will 
fund  a  series  of  road  improvement  projects  in  Tunisia.  The  EIB  is  taking  a  leading  role  in 
ensuring adequate standards are met for Environmental and Social Impact Assessments as well 
as the resettlement policy. The EIB has organised training courses to strengthen the promoter's 
capacity to carry out the assessment of environmental and social risks, including appropriate 
public consultation. 

Demonstration effect 

EIB involvement often helps to build the confidence of other investors in a project, including 
in  infrastructure  projects  and  funds  that  are  designed  to  attract  substantial  funding  from  the 
private sector. At the same time, many projects that the EIB supports are ground-breaking in 
that  they  demonstrate  the  viability  of  a  technology,  practice  or  financing  mechanism  in  a 
country or sector, contributing to the build-up of local expertise and making similar follow-up 
investments more likely. 

In that way, the CoopMed fund (see Box 1) is important as the first microfinance fund with a 
specialised  focus  on  cooperatives  in  the  Mediterranean  region,  building  on  the  fund  team’s 
previous experience in Eastern Europe. The Negev Solar Thermal  Plant is also significant in 
helping  to  demonstrate  the  viability  of  this  emerging  technology  in  a  region  with  abundant 

35 

 
 
 
solar  energy  potential  but  very  heavy  reliance  on  fossil  fuel  based  generation.  The  EIB’s 
demonstration effect is rated high or significant in 78% of operations. 

Mobilising resources 

The EIB often plays an active role in helping to design the financial package used to support 
projects,  working  with  project  promoters  and  co-financiers  to  achieve  an  effective  project 
deign and a faster financial close. In 47% of its operations, the EIB’s role in working closely 
with co-financiers and structuring the financing package is rated significant or high.  

This also helps to mobilise finance from other sources, including both other public lenders and, 
even more importantly, from private investors. 59% of new projects attracted private finance 
in  2015.  This  private  finance  was  equal  to  93%  of  total  IFI  finance  for  those  projects  on 
average.  Overall,  the  EIB  finances  38%  of  the  total  investment  cost  of  projects  outside  the 
Union in 2015 – achieving a multiplier of 2.64. 

Technical contribution 

The  contribution  of  the  EIB’s  technical  staff,  or  external  staff  under  advisory  missions 
financed  by  the  EIB  from  external grants,  before  and  during  project implementation  is  often 
critical to ensuring that projects are successful and that potential negative impacts are avoided. 
Such technical contribution includes involvement in project preparation such as financing and 
supervising sector studies, providing guidance on the terms of reference for feasibility studies 
or  environmental  and  social  impact  assessments;  support  to  project  implementation,  such  as 
technical  assistance  to  a  Project  Implementation  Unit;  and  broader  sectoral  support  such  as 
strengthening  the  capacity  of  key  institutions.  For  some  financial  sector  projects,  the  EIB 
contributes technically, such as through representation on funds’ supervisory boards.  

For some 37% of new projects in 2015 – 18 in total – the technical and sector contribution of 
the EIB is rated significant or high. Projects in the Mediterranean region, where the experience 
of promoters with project planning and implementation can be particularly weak, are the chief 
beneficiaries of such support, with support rated high or significant for 8 projects.  

In 12 cases (24%), projects are expected to benefit from specific technical assistance measure 
for which the EIB will seek to procure funding from external sources such as the trust funds 
administered by the EIB or the Commission’s regional blending mechanisms. 

Chart 7: Operations supported by technical assistance, by region 

36 

 
 
 
 
 
 
 
 
Chart 8: Operations supported by technical assistance, by sector 

In  financial  sector  projects,  such  as  credit  lines,  a  typical  form  of  technical  assistance  has 
targeted  financial  intermediaries  which  receive  assistance  in  terms  of  applying  eligibility 
criteria, designing improved products and raising compliance standards. Technical assistance 
for the intermediaries’ customers, that is to say, the private enterprises is also being developed 
and expanded. Some examples of technical assistance provided by the EIB are found in Box 
13. 

Box 13: Technical assistance in action  

NEPCO Green Corridor, Jordan 
Feasibility studies financed from NIF-resources made available by the EIB have been essential 
for  the  development  of  this  electricity  transmission  project,  designed  to  allow  future  solar 
power development.  

Honduras Sustainable Roads 
The EIB will provide advice on road safety audits and stakeholder engagement, in particular to 
protect  the  rights  and  interests  of  indigenous  peoples.  TA  will  be  financed  with  a  Latin 
America Investment Facility ("LAIF") grant. 

4. 

ACTUAL  AND  EXPECTED  RESULTS  OF  EIB  OPERATIONS:  RESULTS  MEASUREMENT 
FRAMEWORK (REM) 

The ReM framework provides an assessment of the EIB financing operations throughout their 
lifecycle.  It  helps  to  select  sound  projects  which  are  in  line  with  Union  priorities  based  on 
concrete results, and where the EIB involvement will add value. At appraisal, results indicators 
are  identified,  with  baselines  and  targets  that  capture  expected  economic,  social,  and 
environmental outcomes of the operation. Performance against those benchmarks is monitored 
throughout  the  project  life  and  reported  at  two  major  milestones:  For  direct  investments, 
results are reported at project completion and again 3 years after completion. For intermediated 

37 

 
 
 
 
 
 
 
 
 
 
 
operations results are reported at the end of the allocation period (credit lines) or at the end of 
the investment period (funds). Equity fund results are reported again at the end of life of the 
fund.  

To the extent possible, ReM indicators have been harmonised with those of other IFIs, EDFIs 
and  EU  development  agencies  to  simplify  client  reporting  requirements  for  co-financed 
operations. The EIB continues to be actively engaged in working with these partners to further 
improve  coordination  and  harmonisation  of  results  indicators.  Pillar  ratings  are  based  on  a 
four-point  scale  (4-excellent,  3-good,  2-acceptable,  1-marginal)6  .  At  project  appraisal  stage, 
clear,  sector-specific,  standardised  and  measurable  indicators  are  identified  and  projects  are 
rated according to three ‘pillars’. 

Chart 9: ReM Framework 

The  “new  projects”  reported  in  the  section  on  project  results  are  those  for  which  the  first 
financing contract was signed in 2015. For each of those projects, the full approved financing 
volume  and  the  expected  results  associated  with  this  expected  lending  are  reported.  This 
covers both the amount “signed” in 2015 and any approved balance planned to be signed under 
future contracts.  

To  avoid  double  counting  of  project  results,  the  results  associated  with  follow-up  contracts 
signed  under  projects  that  have  already  been  reported  in  previous  reports  (because  earlier 
financing  contracts  were  signed  under  them  in  previous  years)  are  not  reported  above. 
However, for the sake of transparency, a break-down of 2015 lending volumes, including the 
volume of such follow-up contracts, is given in Table 10.  

This  methodology  is  different  from  that  used  in  the  reports  before  2014.  For  that  reason 
lending volumes and project counts may not always be strictly comparable. 

6 Pillar 3 ratings for additionality are slightly different: 4-high, 3-significant, 2-moderate, 1-low.   

38 

 
 
 
                                                            
Table 7: 2015 lending volumes 

New projects (first signed in 2015) 

Older projects 
(first signed 
before 2015) 

Total 
contracts 
signed in 
2015 

Funding 
approved 

Contracts 
signed in 
2015 

Volume to 
be signed 

Contracts 
signed in 2015 

954 
1 623 
1 283 
2 705 
200 

2 900 

951 
1 481 
1 219 
2 312 
150 

2 392 

5 
134 
78 
393 
50 

508 

170 
0 
200 
210 
0 

270 

1 121 
1 481 
1 419 
2 522 
150 

2 662 

3 865 

3 721 

152 

310 

4 031 

2 041 

1 906 

2 305 

6 765 

1 886 

6 113 

138 

417 

660 

234 

270 

580 

2 140 

2 156 

6 693 

ALA 
EAST 
MED 
PA 
South Africa 
Local private sector 
development 
Development of 
social and 
economic 
infrastructure 
Climate change 
mitigation and 
adaptation  
Regional 
integration 
Total 

In terms of strength of contribution to objectives (ReM Pillar 1), more than 30% of the 2015 
new signatures were rated as “excellent”, meaning that they were not only eligible but seen as 
a  high  priority  for  both  the  local  development  objectives  and  for  those  of  the  Union  policy 
covering the country or region concerned. The remainder of the operations rated “good” under 
Pillar 1. Chart 10 provides a distribution of ratings by pillar. 

39 

 
 
 
 
 
 
 
 
 
 
Chart 10: ReM ratings by pillar for new operations signed in 2015 

Pillar 1 

In 2015, all new projects were rated at least “good” under Pillar 1, signifying that they are in 
line  with  Mandate  objectives  and  make  a  high  contribution  to  either  national  development 
objectives  or  those  of  the  Union,  and  a  moderate  contribution  to  the  other.  16  were  rated 
“excellent” for making a high contribution to both Union priorities and national development 
objectives.  

Pillar 2 

The  Pillar  2  rating  is  based  on  project  soundness,  financial  and  economic  sustainability  and 
environmental  and  social  sustainability  in  the  case  of  directly  financed  projects.  For 
intermediated  operations,  the  rating  is  based  on  the  expected  results,  weighted  by  risk 
considerations  as  measured  by  the  soundness  of  the  intermediary  and  the  quality  of  the 
operating environment. 

40 

 
 
 
 
 
 
Chart 11: Pillar 2 ratings by sector 

With  reference  to  the  overall  Pillar  2  rating,  42  projects  were  rated  “good”,  with  an  average 
economic  rate  of  return  (ERR)  of  10%  to  15%  in  the  case  of  infrastructure  projects.  One 
project  was  rated  “excellent”.  Another  6  projects  across  all  sectors  received  an  “acceptable” 
rating,  often  because  of  high  risk  environments  that  impact  on  the  probability  of  achieving 
planned results. As last year, projects in Ukraine feature prominently in this category. 

Environmental  and  social  impacts  are  also  assessed  under  Pillar  2,  for  infrastructure  and 
industrial private sector projects. The rating is based on both the nature of the impacts and the 
magnitude  of  risks.  This  thus  includes  an  underlying  assessment  of  the  robustness  of 
arrangements to mitigate risks. Projects are rated on a scale of:  
1.  Marginal: Not Acceptable, for environmental and/or social reasons – not suitable for EIB 

financing. 

2.  Acceptable: Acceptable with major negative residual environmental and/or social impacts. 
3.  Good: Acceptable with minor negative residual environmental and/or social impacts. 
4.  Excellent:  Acceptable  with  positive  or  neutral  residual  environmental  and/or  social 

impacts. 

Chart 12: Average environmental and social ratings by sector 

Ratings  for  the  assessed  projects  ranged  from  “2”  (3  projects)  to  “4”  (2  projects),  with  23 
projects rated “3”. Sector average ratings were similar across sectors at around 3. No sectors 

41 

 
 
 
 
 
  
 
were outstanding in terms of being associated with particularly high or low risks, although the 
single agriculture project was rated 4.  

Pillar 3 ratings are presented in the chapter on additionality.  

5. 

COOPERATION WITH THE COMMISSION  

The  Mandate  requests  that  the  Commission,  the  EEAS  and  the  EIB  cooperate  and  that  EIB 
strengthens the alignment of EIB external actions and Union external policy objectives, with a 
view to maximising synergies between EIB financing and Union budgetary resources, mainly 
through  a  regular  and  systematic  dialogue  and  early  consultation  on  Union  policies,  Union 
strategies and project pipelines. 

The  Mandate  reinforces  the  alignment  and  complementarity  between  EIB  operations  and 
Union  policy  objectives.  The  general  objectives  of  the  previous  Mandate  were  retained, 
complemented by the updated version of the Regional Technical Operational Guidelines (the 
"Guidelines")  which  provides  guidance  for  aligning  the  scope  of  the  EIB’s  interventions  in 
different  regions  with  Union  policies,  programmes  and  instruments.  In  that  context,  the 
Commission, together with the EIB and in consultation with the EEAS, updated the Regional 
Technical  Operational  Guidelines  ("RTOGs")  which  were  transmitted  to  the  Parliament  and 
the  Council  in  May  2015.  The  RTOGs  are  applicable  over  the  period  2014-2020  for  EIB 
operations under the EU guarantee. The RTOGs provide guidance for aligning the scope of the 
EIB’s interventions in different regions with Union policies, programmes and instruments.  

The EIB continued to  actively participate in the regional blending mechanisms in  2015. The 
EIB  closely  cooperated  with  the  Commission  in  the  technical  group  of  experts  of  the  EU 
Platform for Blending in External Cooperation ("EUBEC").  

LIST  OF  EC-EIB  PARTNERSHIPS  IN  THE  REGIONS  COVERED  BY  THE 
DECISION 

Cooperation between the EIB and the Commission is daily and pervasive throughout much of 
the EIB activities. A substantial part of operational cooperation and coordination between the 
Commission  and  the  EIB,  involving  also  other  IFIs  and  European  Bilateral  Financing 
Institutions,  takes  place  within  the  various  regional  blending  mechanisms  set  up  by  the 
("WBIF"), 
Commission 
Neighbourhood  Investment  Facility,  Asia  Investment  Facility  ("AIF"),  Latin  America 
Investment Facility and Investment Facility for Central Asia ("IFCA").  

Investment  Framework 

the  Western  Balkans 

including 

Pre-Accession Countries 

Turkey 

To  date,  EIB  lending,  combined  with  the  IPA  funds  made  available  for  Turkey  significantly 
contributes  to  strengthening  the  impact  of  the  Union  support.  With  the  increasing 
decentralisation  of  Union  funds  management  and  with  the  aim  of  increasing  blending 
mechanisms, the EIB has opened an office in Ankara in 2014 – after Istanbul in 2008. In the 

42 

 
 
 
 
 
 
2014-2020  IPA  2  programming  period,  the  EIB  is  actively  seeking  to  intensify  further  its 
cooperation with the Uion, particularly with the EU Delegation and local managing authorities. 
In that context, the EU-EIB Group relation further deepened in 2015, building on the informal 
EU-EIB  Group  action  plan  devised  in  2014,  i.e.  to  map  current  areas  of  cooperation  and 
identify  potential  areas  for  new  blending  mechanisms.  Priority  areas  are  transport, 
environment, SMEs, innovation and energy. 

In 2015, the first IPA 2 envelopes in favour of EIB were approved. After years of attempts, the 
EIB  helped  to  bring  JASPERS  to  Turkey.  A  first  kick-off  meeting  took  place  in  the  fall  of 
2015  for  the  environmental  sectors.  Discussions  are  ongoing  to  expand  JASPERS  to  the 
transport  sector.  The  enhanced  presence  of  the  EIB  in  Ankara  proved  effective,  given  the 
continuing  decentralisation  of  Union  funds  management  in  Turkey.  The  local  representation 
also  favoured  the  intensification  of  the  dialogue  at  operational  level  between  the  EIB 
headquarter, the local offices and DG NEAR in Brussels: an EIB Group-DG NEAR high level 
programmatic  meeting  took  place  in  February  2015  in  Brussels,  where  the  main  lines  to 
deepen  cooperation  were  identified.  It  was  decided  to  organise  a  high  level  joint  visibility 
event in Ankara in 2015 to enhance visibility of Union support, but it was postponed to 2016 
in the light of the political uncertainty facing Turkey during 2015. 

In 2015, following the worsening of the Syrian crisis, dedicated refugees facilities have gained 
momentum: the EIB Group is in close contact with the Union to discuss possible modalities to 
blend EIB loans and EU grants from the EU Trust Fund (the MADAD Fund) and possibly the 
Turkish Refugee Facility which is under consideration.  

Box 14: EIB’s response to the refugee crisis 

In  the  context  of  the  continuing  refugee  crisis,  the  EIB  is  developing  an  operational  plan, 
consisting of both short term and long term actions, within and outside the Union. 

On  the  short  term,  the  EIB  provided  EUR  5  million  contribution  to  the  Council  of  Europe 
Development Bank (CEB) Migrant and Refugee Fund to address an exceptional humanitarian 
emergency situation. The Fund is being used to increase the reception capacity of the countries 
along the Western Balkans Route.  

Also on the short term, the EIB converted existing projects to open a special eligibility window 
for expenditures connected with refugees.  

It is also to be noted that the EIB is one of the only International Financial Institutions capable 
to address the refugee crisis in the various refugees’ routes and respective countries of origin, 
transit  and  destination  both  inside  and  outside  Europe  and  could  do  even  more  if  loans  are 
blended with grant resources deployed by the Union and Member States, as it is the case under 
the  MADAD  Fund  under  which  strong  collaboration  has  been  undergoing  with  the 
Commission. 

As  to  the  long  term  response,  the  EIB  undertook  a  comprehensive  assessment  with  its  key 
counterparts to identify the needs in terms of direct funding and/or blending of resources and is 

43 

 
 
 
 
 
 
 
 
 
 
exploring the possibility to adapt further its offer to meet the long term needs identified by the 
partner countries. 

Western Balkans 

Since 2009, the EIB, the European Commission, KfW and the EBRD have been cooperating 
under the Western Balkans Investment Framework. It provides a joint grant facility and a joint 
lending  facility  for  priority  investments  in  the  region.  The  objective  is  to  simplify  access  to 
credit by pooling and coordinating different sources of finance and technical assistance, with a 
focus on infrastructure sectors, including social infrastructure. In 2015, almost EUR 80 million 
of  assistance  (investment  grants,  guarantees,  technical  assistance)  was  provided  under  the 
WBIF. 

Neighbourhood: Mediterranean 

In the domain of blending, the EIB continued to be an active participant in the Neighbourhood 
Investment  Facility,  leading  2  operations  approved  for  EUR  42  million  during  the  year,  and 
participating  as  co-financer  on  2  further  operations  totalling  EUR  37  million  in  partnership 
with  the  EBRD  and  the  AFD.  Those  operations  included  investment  grants,  risk  capital 
allocations and also technical assistance activities. 

 One of the two EIB-led NIF approvals was a second tranche for the EIB’s new Risk Capital 
Facility  for  the  Southern  neighbourhood,  for  which  the  overall  agreement  was  signed  at  the 
end  of  the  year.  The  Facility  will  initially  be  provided  with  a  total  amount  of  EUR  142.5 
million,  of  which  the  European  Commission  will  contribute  EUR  50  million  (EUR  47.5 
million for Financial Instruments and EUR 2.5 million for Technical Assistance) through the 
NIF.  The  aim  of  the  Risk  Capital  Facility  is  to  pool  public  and  private  resources  for  the 
financing  of  private  equity  and  venture  capital  funds  and  microfinance  institutions,  with  the 
purpose of providing financing to local SMEs in the Southern neighbourhood. 

Linked to this, the 2015 FEMIP Conference focussed on the links between entrepreneurship, 
innovation and jobs and discussed this new facility alongside other tools to finance pioneering 
investments  in  the  Mediterranean  region.  Organised  jointly  by  the  EIB,  Luxembourg's 
Presidency  of  the  Council  and  the  Union  for  the  Mediterranean,  the  event  took  place  in 
Luxembourg in October and was attended by over 150 participants both from the Union and 
the Mediterranean partner countries. 

A  further  proposal  currently  under  development  relates  to  a  facility  to  support  trade  and 
competitiveness in the Southern Neighbourhood, linked in Tunisia and Morocco in particular 
to the DCFTA preparations. After the successful launch of the DCFTA Facility for the Eastern 
Partnership countries during 2015, discussions are also underway to develop a similar facility 
for eligible countries in the southern neighbourhood. As in the East, that facility would take a 
value  chain  approach,  combining  EIB  financing  with  grants  and  technical  assistance  for 
businesses throughout a whole sector, for example from food production, through processing 
to packaging and export. 

In addition to those blending operations, a number of other initiatives have developed during 
the year.  

44 

 
 
 
Notably, the EIB took a leading role in the Deauville Partnership IFI Coordination Platform, of 
which  the  EIB  held  the  secretariat  in  2015.  Alongside  a  number  of  working  meetings  held 
throughout the year, one highlight was an event which the EIB proposed and coordinated with 
the Arab  Fund for Economic and Social Development to  facilitate further exchange between 
IFIs and the Arab funds. This meeting, the first Forum on International Cooperation in Kuwait 
in  November  2015,  brought  together  representatives  of  the  Arab  Funds  and  a  number  of 
international organisations, as a first step in an ongoing dialogue between these partners. 

The  EIB  is  also  participating  actively  in  the  enhanced  coordination  meetings  with  the 
Commission  and  other  IFIs  (European  Bank  for  Reconstruction  and  Development  "EBRD", 
International Monetary Fund "IMF", World Bank Group "WBG") called for by Commissioner 
Hahn,  the  first  meeting  of  which  was  held  in  December  2015  and  attended  by  EIB  Vice-
President  Fayolle.  The  EIB  has  offered  to  play  a  leading  role  in  the  organisation  of  further 
efforts in this respect, which applies both to the southern and eastern neighbourhood regions. 

Finally,  throughout  the  year,  the  EIB  continued  and/or  renewed  its  collaboration  with  a 
number of other institutional partners, including the Union for the Mediterranean (to which a 
senior officer is seconded from the EIB), the Centre for Mediterranean Integration in Marseille 
(in  partnership  with  the  World  Bank),  and  a  new  Memorandum  of  Understanding  ("MoU") 
with  the  Parliamentary  Assembly  of  the  Mediterranean.  In  addition,  in  continuation  of  an 
earlier fruitful collaboration with the International Labour Organization ("ILO"), the EIB also 
received  approval  from  the  Deauville  MENA  Transition  Fund  for  a  new  joint  project  to 
support measurement of labour impact of EIB investments in Tunisia. 

Neighbourhood: Eastern Europe, Southern Caucasus and Russia 

The  EIB  is  in  regular  contact  with  the  Commission  and  the  EEAS  in  a  number  of  contexts 
related  to  the  Eastern  Neighbourhood  region.  It  is  an  active  participant  of  the  Eastern 
Partnership  ("EaP"),  contributing  to  a  number  of  platforms  and  panels  in  the  multilateral 
dimension, including in sectors such as energy, environment, transport and SMEs. EIB loans 
are blended with Union budget funds through the Neighbourhood Investment Facility in which 
the EIB plays a key role (see Annex 3 and 4). 

In  Brussels,  the  EIB  has  continued  to  follow  Union  developments  in  areas  such  as  strategic 
programming, the review of the ENP (to which it also contributed), Union blending and policy 
dialogue with partner countries. A next series of bilateral meetings between the Commission 
and the EIB to discuss joint priorities in the region will take place early in 2016. Those central 
efforts  are  complemented  by  regular  contacts  at  country  level,  through  the  EIB’s  country 
offices, where they exist, and otherwise liaising with EU Delegations on a regular basis. 

The EIB continues to cooperate closely with the other IFIs active in the Eastern neighbouring 
countries. The EIB has approved in 2015 a new Procurement Procedural Framework with the 
EBRD in order to facilitate project implementation and monitoring for ongoing and future co-
financed projects with EBRD, to the benefit of the two banks’ mutual  clients/promoters. The 
Framework  is  based  on  trust  and  mutual  reliance  on  the  application  of  agreed  procurement 
procedures,  in  line  with  the  Memorandum  of  Understanding  signed  by  EIB,  EBRD  and  the 
Commission  in  2012,  committing  each  other  to  work  towards  mutual  recognition  of  policies 
and procedures. 

45 

 
 
In  2015,  the  EIB  supported  several  investment  projects  in  Southern  Caucasus  involving  co-
financing  or  parallel  financing  with  KfW,  under  the  Mutual  Reliance  Initiative,  and  Asia 
Development Bank. 

The EIB was also involved in an emergency initiative by the Union and international financing 
institutions  aimed  at  preventing  an  energy  crisis  in  Ukraine  by  facilitating  the  provision  of 
financing  to  Ukraine  to  purchase  gas.  In  that  context,  the  EIB  signed  a  guarantee  to  cover 
eligible investment projects of the World Bank; this would free up World Bank’s exposure to 
enable  them  to  participate  in  the  financing  of  purchase  of  gas  by  Ukraine  in  which  the  EIB 
cannot intervene given statutory restrictions. 

An Eastern Partnership Summit took place in May 2015 in Riga in which Member States and 
partner  countries  reiterated  the  high  importance  of  the  EaP  as  a  specific  dimension  of  the 
European  Neighbourhood  Policy.  Differentiation  according  to  partner  countries’  needs  and 
ambitions was  a key  theme. Leaders also reaffirmed the importance of  the reform agenda  in 
the  eastern  Partner  countries,  in  particular  in  terms  of  transparency  and  anti-corruption. 
Discussions on multilateral cooperation included the need to develop market opportunities by 
improving  the  business  environment,  as  well  as  ensuring  energy  security  and  improving 
interconnections for both energy and transport. The EIB, which helped co-organise the Eastern 
Partnership Business Forum which preceded the summit, is fully committed to these aims. 

Asia, Central Asia and Latin America 

Cooperation  between  donors  and  IFIs  by  means  of  blending  grant  aid  for  investments  and 
technical  assistance  with  loans  and  risk  capital  has  become  increasingly  important  in 
development finance, with a view to increasing financial flows for development. Therefore, to 
offer products that meet the needs of emerging market and development country clients, close 
cooperation with the Commission, Member States and other third party donors to attract grant 
financing has become imperative to the EIB’s business. The EIB is participating in particular 
in  the  regional  blending  mechanisms  (Latin  America  Investment  Facility,  Asia  Investment 
Facility  and Investment Facility for Central Asia), promoting additional investments and key 
infrastructures  with  a  priority  focus  on  energy,  environment  and  climate  change,  transport, 
SMEs and social infrastructure sectors. 

The LAIF’s main purpose is to promote investments and key infrastructures in priority areas 
for  sustainable  socio-economic  development  in  region  such  as  transport,  Information  and 
Communication  Technologies,  energy,  SMEs,  Private  sector  development,  water  and 
environment,  with  a  particular  focus  on  climate  change  mitigation  and  adaptation.  For  the 
period 2014-2020 the indicative amount for that Facility is EUR 350 million, of which EUR 56 
million  have  already  been  allocated.  That  figure  includes  EUR  10  million  for  a  project  in 
Honduras presented by the EIB in order to reach the required concessionality levels for a total 
EIB investment of over EUR 80 million. EIB activities under LAIF will continue to prioritise 
operations where the LAIF funds will help reaching the level of concessionality required for a 
country’s  external  debt.  Notwithstanding,  opportunities  for  blending  may  also  materialise  in 
other economies of the region. EIB’s main line of proposals to the LAIF Board will continue 
to be direct investment grants. 

Under  the  AIF,  a  loan  of  EUR  82  million  (signed  in  2013)  was  blended  with  a  TA  grant  in 
support of an energy project in Bangladesh and a loan of EUR 20 million was blended with a 

46 

 
 
 
TA grant in support of an urban transport project in Laos. The EIB will use such grants in Asia 
only  if  absolutely  necessary.  It  is  expected  that  the  operations  in  the  poorest  countries  (e.g. 
Laos, Myanmar) would require TA grants to blend with EIB loans. 

With funds from the IFCA, the EIB has established a technical assistance unit in Kazakhstan in 
cooperation with the EU delegation in Astana. The IFCA operates by providing financial non-
refundable contributions to support loans to Central Asian countries from the EIB, the EBRD 
and other European multilateral and national development finance institutions. The allocation 
made  to  the  facility  for  the  period  2014-2020  is  of  EUR  140  million.  In  2015,  technical 
assistance was approved for a loan of EUR 150 million approved to the Kazakh State-owned 
DAMU  Fund,  for  on-lending  to  small  and  medium-sized  enterprises  (SMEs)  and  Mid-Caps 
investing  in  projects  eligible  under  the  EIB's  own-fund  Climate  Action  and  Environment 
Facility (CAEF). 

Table 8: EU Budget Resources complementing EIB loans in 2015 (Blending) 

2014 (from 
July) 

2015 

Regional blending mechanisms (TA, grants approved) 

Western Balkans Investment Framework (WBIF)* 

4.42 

62.00 

Neighbourhood Investment Facility (NIF) 

132.70 

108.05 

Investment Facility for Central Asia (IFCA) 

Latin America Investment Facility (LAIF) 

Asia Investment Facility (AIF) 

Other TA and grants complementing EIB projects 

SME Finance Facility (SME FF) 

FEMIP Support Fund (excl. Turkey) ** 

Support to FEMIP envelope (2007-2013) 

FEMIP Trust Fund*  

Risk Capital signatures 

MEDA / ENPI Risk Capital 

FEMIP Trust Fund* 

      -   

      -   

5.00 

0.60 

0.27 

2.67 

0.99 

4.00 

1.00 

Impact Financing Envelope of FEMIP Trust Fund  

      -   

47 

2.00 

10.00 

0.00 

      -   

      -   

0.99 

      -   

      -   

2.00 

 
 
 
 
 
 
 
 
 
  
 
 
 
  
  
Global Energy Efficiency and Renewable Energy Fund* 

TOTAL 

      -   

151.65 

12.00 

197.04 

* includes other sources of funding than EU budget 
** negative value corresponds to de-commitment 

Table 9: List of EIB-managed Union Budget-funded operations (TA, Grants, Equity) signed or 
approved in 2015 

Contract Name 

Instruments 

Target countries 

2015 (EUR m) 

Bosnia - Herzegovina 

TA 

Kosovo 

Kosovo 

Regional 

Regional 

Western Balkans Investment Framework (WBIF)* (approved) 
(EC contrib. - approved) 
Design of Medical Centre 
Route 4 Rail Bar Vrbnica - 
Design of concrete bridges 
Railway Stalac Kraljevo 
Rudnica 
Rail Route 10 - Fushe Kosovo - 
Mitrovica 
Mediterranean Corridor (CVc): 
Bosnia and Herzegovina - 
Croatia Road Intern 
Mediterranean Corridor (R2a): 
Bosnia and Herzegovina - 
Croatia Interconnection 
Orient-East-Med Corridor (R4): 
Montenegro - Serbia Rail 
Interconnection 
Railway tunnel Inspection and 
DD 
Feasibility Study Highway E80 
SEETO route 7 
Feasibility Study Railway 
Durres to FYROM border  
PPP in Western Balkans (EPEC) 
Total 
Neighbourhood Investment Facility (NIF)** (approved) 
Kafr El Sheikh Wastewater 
Expansion 

Montenegro 

Regional 

Regional 

Regional 

Albania 

Serbia 

Egypt 

TA 

IG 

IG 

Kutaisi Wastewater 

IG 

Georgia 

Deep and Comprehensive Free 
Trade Agreement Facility East 
(DCFTA) Facility East 

2 RC, 2.3 TA, 
57 IG 

Regional 

48 

0.88 

3.00 

1.40 

1.00 

22.00 

6.80 

20.00 

2.50 

1.70 

0.72 

2.00 
62.00 

17.00 

4.75 

61.30 

 
 
  
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
25 FI 

Regional 

Risk Capital facility for the 
Southern Neighbourhood 
countries 
Total  
Investment Facility for Central Asia (IFCA) (approved) 
(EC contrib. - approved) 
DAMU Green Loan for SMES 
and MIDCAPS 
Total 
Latin America Investment Facility (LAIF) (approved) (EC contrib. - approved) 

Kazakhstan 

TA 

Honduras Sustainable Roads 

3 TA, 7 IG 

Honduras 

Total 
FEMIP Trust Fund (signed) 
Etude de la liaison Permanente 
entre l'autoroute A4 et la ville de 
Bizerte: Supervision 
independente de l'ouvrage 
principal 
Etude de faisabilité d'une 
Liaison Permanente entre 
l'autoroute A4 et la ville de 
Bizerte. 
Assistance to the Palestinian 
Water Authority (PWA) for the 
implementation of the Water 
Supply to Gaza, Seawater 
Desalination Project (Phase A) 
Total 
Risk Capital signatures 
Impact financing Envelope of 
FEMIP trust fund : COOPMED  
Global Energy Efficiency and 
Renewable Energy Fund: 
SolarArise 
Total 

TA 

Tunisia 

TA 

Tunisia 

TA 

Palestine 

RC 

RC 

Regional Med 

India 

25.00 

108.05 

2.00 

2.00 

10.00 

10.00 

0.08 

0.32 

0.60 

0.99 

2.00 

12.00 

14.00 

Total  
*The EIF contributed with EUR 17.5 million to the financing of the 
WBIF 
*I.P.F. Infrastructure Project Facility. Technical Assistance contract signed for EUR 35 million contributing to the financing of projects 
under the WBIF  
*EDIF Enterprise Development Innovation Facility. Contract of technical assistance signed for EUR 2.5 million contributing to the 
financing of projects under the WBIF  

197.04 

6. 

CO-OPERATION WITH EUROPEAN OMBUDSMAN  

The Memorandum of Understanding signed between the EIB and the  European Ombudsman 
("Ombudsman") in 2008 sets the basis for the two stages of the EIB Complaints Mechanism - 
the  internal  ("EIB-CM")  and  the  external  (Ombudsman)  -  approved  by  the  EIB  Board  of 
Directors in 2010 after extensive public consultation. It achieves a common understanding of 

49 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
purpose  and  consistency  of  application  across  its  internal  and  external  parts,  with  a  specific 
focus on: 

The  existence  of  an  effective  internal  Complaints  Mechanism  that  deals  with 

• 
complaints lodged by external parties to the EIB across all the business units of the EIB; 

• 
Concerning complaints related to operations outside the Union, including the External 
Mandates, the Ombudsman commits to use its Own Initiative power systematically in order to 
handle complaints when the complainant is not a citizen or resident of the Union; 

The  scope  of  the  Ombudsman's  review,  with  the  recognition  of  the  EIB-CM  as  the 

• 
required prior approach. 

Table 10 shows the evolution of the number of complaints handled by the EIB-CM in the past 
5 years. The nature of the complaints refers to allegations related to the projects financed by 
the EIB in the areas of Environment and Social, Procurement as well as Governance (legal and 
financial structure of the project, EIB’s general due diligence of the project, implementation of 
EIB policies by borrowers, etc.). 

Table 10: Project related complaints lodged with the internal part (EIB-CM) of the EIB Complaints Mechanism 

over 2011-2015 

EU Member States 

Non-EU, of which 

   in External Mandate Countries 

   in ACP, OCTs 

Total (EU & Non EU Members) 

2011 

2012 

2013 

2014 

2015 

5 years 

9 

16 

13 

3 

25 

15 

17 

15 

2 

32 

13 

18 

16 

2 

31 

13 

16 

13 

3 

29 

13 

14 

13 

1 

27 

63 

81 

70 

11 

144 

As Table 10 shows, the number of annual new project-related complaints remained relatively 
stable since 2011. The number of new cases registered in External Lending Regions was 13, 
the same as in 2014. Those new cases are located in Bosnia and Herzegovina, Brazil, Egypt, 
Morocco,  Paraguay,  Russia,  Serbia,  and  Tunisia.  Out  of  the  13  cases  opened  concerning  the 
External  Lending  Mandate,  2  are  related  to  Environmental  and  Social  impacts,  5  to 
Procurement, and 6 to Governance matters.  

The  outcome  of  the  complaints  handling  process  varied  from  "allegations  not  grounded"  to 
"areas  for  improvement  recommended".  During  2015,  the  EIB-CM  closed  two  cases 
concerning  the  Yacyreta  transmission  line  to  be  built  in  Paraguay  containing  allegations 
related to potential breach of the obligations of the promoter under its contractual obligations 
with the EIB. Based on the gathered information and on an external legal opinion requested by 
the  EIB’s  services  on  the  issues  challenged  by  the  complainant,  the  EIB-CM  concluded  that 
the  EIB’s  services  due  diligence  of  the  project  had  been  properly  performed  and  therefore 
there  was  not  a  breach  of  the  contractual  arrangements.  The  EIB-CM  also  carried  out  an 

50 

 
 
 
 
 
  
investigation concerning the Belgrade By-pass (Serbia) following an  unsuccessful attempt  to 
establish  a  mediation  process  between  the  complainant  and  the  Promoter  concerning  the 
expropriation borne by the complainant. The EIB-CM concluded that most of the allegations 
were not grounded and in some cases had been settled by ruling of the Serbian national court. 
A mediation process was closed successfully following an expropriation dispute investigated 
by the EIB-CM in the construction of roads in Albania. The EIB-CM provided advice to the 
EIB’s  services  on  the  allegations  to  the  procurement  process  of  two  large  transport 
infrastructure projects (metro lines of Quito and Hanoi), for which the EIB was yet to provide 
the final  no-objection at the time of  receiving  the  complaint and therefore  they were outside 
the scope of the EIB-CM. 

At  the  end  of  the  year,  the  EIB-CM  was  reviewing  several  cases  related  to  procurement  in 
Georgia  (allegations  of  unfair  contract  award  in  a  programme  of  modernisation  of  water 
infrastructure) and Serbia (the upgrading of judiciary buildings), as well as procurement in the 
road sector in  Tunisia, Bosnia  Herzegovina, and Serbia. Concerning the follow-up activities, 
the  EIB-CM  implemented  the  Technical  Assistance  provided  to  the  promoter  of  the  Cairo 
Metro  Line  in  order  to  set  up  its  own  internal  grievance  mechanism.  Final  approval  by  the 
promoter of the proposal made by the consultants was pending at the end of 2015. 

During  2015,  the  Ombudsman  received  no  complaints  related  to  the  EIB  activities  in  the 
External  Lending  Region.  However,  and  following  the  critical  remark  made  by  the 
Ombudsman  to  the  EIB  in  2014  concerning  the  handling  of  the  procurement  process  of  the 
Corridor  V  c)  project  in  Bosnia  and  Herzegovina,  the  EIB  carried  out  an  audit  of  its 
monitoring of its procurement operations in 2015.  

7. 

COOPERATION WITH INTERNATIONAL FINANCING INSTITUTIONS  

Cooperation with IFIs on development finance 

2015 has been a very busy year for development, with several key international events such as 
the  Third  International  Conference  on  Financing  for  Development  (Addis),  the  UN  Summit 
(New York) and the UN Framework Convention on Climate Change Conference of the Parties 
in Paris (COP 21). 

In  that  context,  the  EIB  has  further  intensified  its  cooperation  with  other  Multilateral 
Development  Banks  and  has  notably  co-authored  with  the  MDBs  and  the  IMF  several 
important reports. In particular, the joint report “From billions to trillions: MDB contributions 
to financing for development”, which was issued ahead of the Addis Conference in July 2015 
had a significant impact in drawing attention both to the joint and individual achievements of 
MDBs and to the considerable scaling up that is needed. 

MDB  cooperation  is  intense  at  all  levels:  the  Presidents  meeting  on  a  regular  basis  to 
collectively set the course and make key decisions, while Heads of Strategy regularly discuss 
issues  of  a  strategic  nature  and  more  than  100  specialised  working  groups  focus  on  specific 
sectors or issues (Climate, infrastructure, finance, risk, results measurement, evaluation, debt 
etc.) 

51 

 
 
 
 
The  EIB  has  had  the  responsibility  in  2015  of  chairing  the  MDB  working  group  of  the  G7 
Deauville  Partnership  for  which  the  President  of  the  EIB  reported  to  the  G7  Ministerial 
meeting at the WB-IMF Annual Meetings. 

In 2015, the EIB has pursued its cooperation with the G20 through regular participation in and 
contribution to the G20 Infrastructure Investment Working Group ("IIWG"). The EIB has also 
strengthened its ties with the UN System, with new Memoranda of Understanding signed with 
two  institutions,  International  Fund  for  Agricultural  Development  and  United  Nations 
Industrial Development Organization. The EIB has continued to contribute to the work of the 
OECD  Development  Assistance  Committee  ("DAC")  on  the  modernisation  of  Official 
Development Assistance ("ODA"). 

The  Making  Finance  Work  for  Africa  Partnership  was  launched  in  2008,  following  an 
initiative by the German Presidency of the G8. Bringing together development institutions and 
relevant stakeholders of the African financial sector (regulators, banks, institutional investors, 
academics…) It is meant to act as a hub in policy discussions on approaches to strengthen and 
deepen the role and effectiveness of finance in Africa. The EIB is a founding member of the 
Partnership  (to  which  it  has  recently  increased  its  financial  contribution)  and  actively 
participates  in  its  governance  within  the  Executive  and  Steering  Committees,  alongside 
partners such as AfDB, AFD, GIZ, USAID, as well as WB and IMF. 

The  EIB  also  supports  the  Let's  Work  Partnership,  in  cooperation  with  the  other  MDBs  and 
interested  donor  countries.  The  objective  of  Let’s  Work  is  to  further  our  common 
understanding of how development finance can best support the creation of quality jobs. It is 
done  through  a  combination  of  methodological  and  country  studies,  as  part  of  a  three-year 
work programme. 

In  2015,  the  EIB  continued  to  be  an  active  member  of  the  IFI  working  group  on  the 
Harmonisation of Indicators for Private Sector Operations ("HIPSO"). That forum includes 25 
IFIs who meet on a regular basis to help foster collaboration and enhance development impact 
through  common  development  indicators  which  reduce  the  burden  on  clients  and  facilitate 
lesson  learning. A  MoU  on  Harmonized  Indicators  for  Private  Sector  Operations  was  first 
agreed  in  2013  and  this  was  further  developed  in  2015  when  the  HIPSO  working  group 
finalised  a  consultancy  on  harmonisation  of  further  qualitative  indicators,  considered  its 
recommendations,  and  signed  an  amendment  to  the  MoU  which  now  includes  38  shared 
indicators. 

Coordination with others MDBs on Climate 

The EIB has continued to cooperate throughout 2015 with MDBs and other IFIs and relevant 
groups in order to harmonise climate finance tracking and impact reporting standards. 

The  EIB  tracks  climate  finance  using  definitions  developed  and  harmonised  in  cooperation 
with  peer  institutions.  During  2015,  WBG  coordinated  the  2014  Joint  Report  on  MDBs’ 
Climate Finance (taking over from EIB the previous year). The report showed that, in  2014, 
MDBs delivered USD 23.8 billion in climate finance. In 2016 that work is being led by ADB 
and the 2015 Joint Report is expected to be published mid-2016. After this, since each MDB 

52 

 
 
 
will have coordinated one year’s coordination of the report, the group will develop proposals 
for a longer term plan for data gathering and reporting. 

MDBs  are  also  working  with  other  bilateral  and  national  organisations  (International 
Development Finance Club, IDFC: among the members worldwide are KfW, AFD, JICA but 
also  BNDES,  DBSA  and  China  Development  Bank)  and  during  2015  published  the 
MDB/IDFC  Common  Principles  for  Mitigation  Tracking,  and  initial  Common  Principles  for 
Adaptation Tracking. Work continues on tracking in challenging sectors and on how to reach 
the ultimate aim of compatible reporting. However, although the Common Principles are a big 
step forward, the two groups are still far away from a fully harmonised approach. One of the 
main difficulties is agreeing on accounting methods (granularity of investments). 

In  another new work-stream in  2015, the MDBs, in  close  discussion  with  IDFC and OECD, 
developed a methodology for tracking “mobilised” funds in climate finance. As a first step, the 
methodology  started  by  tracking  the  public  and  private  co-finance  figures  for  MDBs’  2014 
Climate  Finance  which  was  made  public  at  the  COP21  in  the  MDB  Joint  Statement.  That 
work,  led  initially  by  EBRD  and  now  by  WBG,  has  been  coordinated  within  the  EIB  by 
PJ/ECSO  and  Ops/NPST  –  and  has  been  shared  with  other  parts  of  the  EIB  grappling  with 
quantifying “leverage”, “mobilisation” or “multipliers”. 

Further  work  has  progressed  between  MDBs,  IDFC  and  a  now  widened  group  including 
commercial  financial  institutions  such  as  HSBC,  Credit  Agricole  and  Yes  Bank  (India)  on 
Principles  for  Mainstreaming  Climate  Action  in  Financial  Institutions,  as  requested  at  the 
Heads of MDBs meeting at WB Spring meetings. This work-stream, was officially launched at 
COP21  at  a  side  event  co-hosted  by  EIB  with  CAF  and  AIDA-Americas  (a  Latin  American 
CSO).  In  addition,  EIB  is  hosting,  on  a  temporary  basis,  the  Principles  for  Mainstreaming 
website: www.eib.org/FIclimatemainstreaming 

Those Principles should provide a platform to gather an ever increasing number of supporting 
financial  organisations  (e.g.  commercial  banks,  insurance  companies,  institutional  investors). 
The headlines of the Five Voluntary Principles are: 

  COMMIT to climate strategies (including targets, priorities) 
  MANAGE climate risks (stranded assets, vulnerability analysis, adaptation) 
  PROMOTE climate smart objectives (instruments, leverage, knowledge sharing) 
 
  ACCOUNT for your climate action (reporting) 

IMPROVE climate performance (measuring, impact) 

A larger group including all 6 MDBs, plus AFD, KfW, NIB and other IFIs, has also developed 
and  published,  via  the  Green  Bond  Principles  Network,  a  harmonised  framework  for  green 
bond impact reporting. EIB has used it in its March 2015 CAB Newsletter, and led the group 
to finalise a second version published at COP21. This impact reporting is linked to harmonised 
approaches on GHG accounting and reporting, developed by the IFI working group in which 
the EIB is a key participant. 

On Adaptation the EIB also continues to work closely with the EU financing institutions in the 
EU  Financing  Institutions  Working  Group  on  Adaptation  to  Climate  Change.  EIB  co-
organised with other EUFIWACC members and hosted at its Brussels Office in June 2015 an 
Adaptation Day, to exchange and build capacity in Climate Risk and Vulnerability assessment 

53 

 
 
and  Climate  Risk  management.  That  day  was  attended  by  nearly  100  consultants  and 
benefitted also from expert input from the German Climate Service Centre. 

54 

 
 
 
 
ANNEX I - LIST OF OPERATIONS SIGNED IN 2015 

List of operations signed in ALA Region (Latin America, Central Asia and Asia) 

COUNTRY 

OPERATION 

Signed (EURm) / Framework 

Objective supported 

Sector 

 ELM - Compreh. 
Guarantee  

 ELM - 
Political Risk 
Guarantee  

 ORF  

 Local private 
sector dev.  

 Social & 
Economic Infra  

% Climate 
Action  

 Regional 
Integrat.  

Bangladesh 

LAKSAM AKHAURA DOUBLE 
TRACK RAIL PROJECT 

135 

 X  

100% 

 X  

Transport 

 X  
 +  

 full contribution  
 partial contribution  

Brazil 

Brazil 

Ecuador 

Honduras 

India 

BRASIL LOAN FOR SMES AND 
MIDCAPS 

SAO PAULO POWER 
DISTRIBUTION II 

WASTEWATER TREATMENT 
PROJECT IN GUAYAQUIL 

HONDURAS SUSTAINABLE 
ROADS 

SBI LOAN FOR SMES AND MID-
CAPS C 

Kyrgyzstan 

CENTRAL ASIA SOUTH ASIA 
ELECTRICITY TRANSMISSION 

Lao People's 
Democratic Rep. 

VIENTIANE SUSTAINABLE URBAN 
TRANSPORT 

93 

79 

100 

70 

19 

150 

 X  

2% 

Credit lines 

150 

 +  

55 

 X  

 X  

 X  

 +  

 X  

 X  

Energy 

Water, 
sewerage 

 X  

Transport 

Credit lines 

 X  

Energy 

3% 

30% 

100% 

Transport 

 
 
 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
 
   
  
 
 
   
   
  
 
 
   
  
   
  
 
 
   
  
   
  
 
 
   
  
 
 
   
  
 
 
   
  
  
 
 
   
   
  
Nepal 

Nepal 

Nicaragua 

Pakistan 

NEPAL GRID DEVELOPMENT 
PROGRAMME 

NEPAL POWER SYSTEM 
EXPANSION PROJECT 

NICARAGUA HYDRO 
DEVELOPMENT AND 
TRANSMISSION 
WARSAK HYDROELECTRIC 
POWERSTATION 
REHABILITATION 

Total 2015 Operations Signed 

30 

99 

146 

50 

821 

150 

150 

 X  

 X  

 X  

 X  

84% 

100% 

85% 

100% 

Energy 

Energy 

Energy 

Energy 

56 

 
 
 
 
 
   
  
 
 
 
   
  
 
 
 
   
  
 
 
 
   
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
List of operations signed in Eastern Neighbours in 2015 

COUNTRY  OPERATION 

Signed (EURm) / Framework 

 ELM - Compreh. 
Guarantee  

 ELM - Political Risk 
Guarantee  

 Local private 
sector dev.  

Objective supported 
 Social & 
Economic Infra  

% Climate 
Action  

 Regional 
Integrat.  

Sector 

Armenia 

CAUCASUS TRANSMISSION NETWORK 

Armenia 

YEREVAN SOLID WASTE PHASE I 

Azerbaijan 

IBA LOAN FOR SMES AND MIDCAPS 

Georgia 

KUTAISI WASTE WATER 

Georgia 

Georgia 

Ukraine 

PROCREDIT LOAN FOR SME AND 
PRIORITY PROJECTS II GE 

BANK OF GEORGIA LOAN FOR SMES 
AND MID-CAPS 

UKRAINE MUNICIPAL 
INFRASTRUCTURE PROGRAMME 

Ukraine 

UKRAINE AGRI-FOOD APEX LOAN 

Ukraine 

GUARANTEE FOR ECONOMIC 
DEVELOPMENT IN UKRAINE 

10 

8 

50 

100 

400 

400 

458 

15 

40 

 X  

 X  

 X  

 +  

 X  

 X  

 X  

 X  

 +  

 X  

25% 

2% 

4% 

2% 

2% 

50% 

35% 

16% 

 X  

Energy 

Solid waste 

Credit lines 

Water, 
sewerage 

 X  

Credit lines 

Credit lines 

Energy 

 X  

Credit lines 

Energy, 
Transport 

Total 2015 Operations Signed 

1,426 

55 

57 

 
 
  
  
  
  
 
   
   
 
 
 
   
   
 
 
 
   
   
 
 
 
   
   
 
 
 
   
 
 
 
   
   
 
 
 
   
   
 
 
 
 
 
 
   
   
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
List of operations signed in the Mediterranean Neighbours 

COUNTRY 

OPERATION 

Signed (EURm) / Framework 
 ELM - Political 
Risk Guarantee  

ORF  

 ELM - 
Compreh. 
Guarantee  

 3rd 
party 
res.  

 Local 
private 
sector dev.  

Objective supported 
 Social & 
Economic 
Infra  

 % Climate 
Action  

 Regional 
Integrat.  

Sector 

Egypt 

CAIRO METRO LINE 3 PHASE 3 - B 

Egypt 

PRIVATE SECTOR DEVELOPMENT AND 
ECONOMIC GROWTH 

Egypt 

DAMANHOUR CCGT POWER PLANT 

Israel 

NEGEV SOLAR THERMAL PLANT 

Jordan 

NEPCO GREEN CORRIDOR 

Jordan 

Morocco 

Morocco 

Morocco 

WADI AL ARAB WATER SYSTEM II 
PROJECT 

FEMIP SUSTAINABLE ENERGY FACILITY 
(BMCE) 

EUROPAC INDUSTRIAL PACKAGING 
PLANT IN TANGIER 

ONEE – UPGRADE AND REHABILITATION 
OF EXISTING WATER SUPPLY AND 
SANITATION 

Regional - 
Mediterranean 

COOPMED 

Tunisia 

AMEN BANK PRETS PME ET ETI 

200 

120 

550 

66 

50 

75 

 X  

141 

 +  

 X  

 X  

 X  

 X  

2 

 X  

 X  

 +  

 X  

 X  

100% 

2% 

100% 

100% 

10% 

100% 

 X  

30% 

Transport 

Credit lines 

Energy 

Energy 

Energy 

 X  

Water, 
sewerage 

 X  

Credit lines 

Industry 

Water, 
sewerage 

Services 

2% 

Credit lines 

5 

10 

50 

58 

 
 
 
 
 
 
   
   
 
 
 
   
   
 
 
 
   
   
   
 
 
 
   
 
 
 
   
   
 
 
 
   
 
 
 
   
 
 
 
   
   
   
 
 
 
   
   
 
 
 
   
   
   
 
 
 
   
   
Tunisia 

MODERNISATION ROUTIERE II 

Total 2015 Operations Signed 

150 

1,211 

65 

141 

2 

 X  

Transport 

List of operations signed in Candidates and Potential Candidates Countries 

COUNTRY  OPERATION 

Signed (EURm) / 
Framework 
 ELM - 
Compreh. 
Guarantee  

Objective supported 

Sector 

 ORF  

 Local private 
sector dev.  

 Social & 
Economic Infra  

% Climate 
Action  

 Regional 
Integrat.  

Kosovo 

ROUTE 10 RAIL REHABILITATION 

Montenegro 

MONTENEGRO WATER AND SANITATION 
D 

Montenegro 

IDF LOAN FOR SMES AND PRIORITY 
PROJECTS II 

42 

10 

40 

Serbia 

Serbia 

Turkey 

Turkey 

Turkey 

Turkey 

SGRS LOAN FOR SMES AND OTHER 
PRIORITIES III A 

EB LOAN FOR SMES AND OTHER 
PRIORITIES III 

ILLER BANK URBAN TRANSPORT AND 
ENVIRONMENT LOAN 

250 

YAPI KREDI LOAN FOR SMES AND 
MIDCAPS 

VAKIFBANK LOAN II FOR SMES AND 
MIDCAPS B 

EXIMBANK LOAN FOR SMES AND 
MIDCAPS II B 

80 

50 

150 

100 

100 

 +  

 +  

 +  

 X  

 X  

 X  

59 

 X  

 X  

 +  

 +  

 +  

 X  

100% 

 X  

Transport 

2% 

2% 

2% 

Water, sewerage 

Credit lines 

Credit lines 

Credit lines 

100% 

 X  

Solid waste, Transport, 
Water, Sewerage 

2% 

2% 

2% 

 X  

Credit lines 

 X  

Credit lines 

 X  

Credit lines 

 
 
 
 
 
   
   
   
  
 
 
 
 
 
 
 
 
  
  
 
   
 
 
 
   
   
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
Turkey 

TURK TRAKTOR RDI 

Turkey 

Turkey 

FINANSBANK LOAN FOR SMES AND 
MIDCAPS 

TSKB LOAN III FOR SMES MIDCAPS AND 
INNOVATION A 

Turkey 

TUBITAK RESEARCH PROMOTION II 

Turkey 

Turkey 

Turkey 

AFFORESTATION AND EROSION CONTROL 
III 

ZIRAATBANK LOAN FOR SMES AND 
MIDCAPS II A 

GARANTI BANK LOAN FOR SMES AND 
MIDCAPS II 

Turkey 

ISBANK LOAN FOR SMES AND MIDCAPS 

200 

120 

Turkey 

ISTANBUL UNDERGROUND RAIL 
NETWORK 

295 

Turkey 

FORD OTOSAN RDI 

Turkey 

Turkey 

HALKBANK LOAN III FOR SMES MIDCAPS 
AND PRIORITIES 

SEKERBANK LOAN FOR SMES AND 
MIDCAPS 

35 

50 

100 

100 

200 

200 

100 

200 

100 

Total 2015 Operations Signed 

957 

1,565 

List of operations signed in South Africa 

 X  

 X  

 X  

 X  

 X  

 X  

 X  

 X  

60 

20% 

2% 

2% 

3% 

100% 

2% 

2% 

2% 

100% 

20% 

2% 

Industry 

 X  

Credit lines 

 X  

Credit lines 

Services 

Agriculture, fisheries, 
forestry 

 X  

Credit lines 

Credit lines 

 X  

Credit lines 

Transport 

Industry 

 X  

Energy, Credit lines 

 X  

Credit lines 

 X  

 X  

 X  

 X  

 
 
 
   
   
 
 
 
   
 
 
 
   
 
 
 
   
   
 
 
 
   
   
 
 
 
   
 
 
 
   
   
 
 
 
   
 
 
 
   
   
 
 
 
   
   
   
 
 
 
   
 
 
 
   
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COUNTRY  OPERATION 

Signed (EURm) / Framework 

 ELM - Compreh. 
Guarantee  

 ELM - Political Risk 
Guarantee  

 Local private 
sector dev.  

Objective supported 
 Social & 
Economic Infra  

 % Climate 
Action  

 Regional 
Integrat.  

Sector 

South 
Africa 

SOUTH AFRICA PRIVATE SECTOR 
FACILITY - IDC, FNB, NEDBANK 

Total 2015 Operations Signed 

50 

50 

100 

100 

 X  

 2% 

Credit lines 

61 

 
 
 
 
  
  
   
   
 
 
  
  
  
  
  
  
 
 
Annex II - List of operations signed in the regions covered by the Mandate in 2015 and co-financed with other IFIs or benefiting from 
EU grants 

List of operations signed in the regions covered by the Mandate in 2015 and co-financed with other IFIs or benefiting from EU grants 

MANDATE / 
FACILITY 

ELM East-Ru. 
2014-2020 

COUNTRY 

CONTRACT NAME 

PROJECT 
COST  
(EUR M) 

EIB LOAN 
SIGNED IN 
2015  
(EUR M) 

Multilateral 
Financing 
Institutions 

European Bilateral 
Institutions 

EU budget 
contrib. 

Armenia 

CAUCASUS TRANSMISSION NETWORK 

113.10 

10.00 

ELM MED 2014-
2020 

Morocco 

FEMIP SUSTAINABLE ENERGY FACILITY 
(BMCE) 

137.50 

5.00 

ELM Asia 2014-
2020 

Nepal 

NEPAL POWER SYSTEM EXPANSION 
PROJECT 

270.20 

98.94 

ELM Latin 
America 2014-
2020 

ELM Pre-
Accession 2014-
2020 

Honduras 

HONDURAS SUSTAINABLE ROADS 

167.74 

79.42 

Montenegro 

MONTENEGRO WATER AND SANITATION D 

114.22 

10.00 

ELM East-Ru. 
2014-2020 

Ukraine 

UKRAINE MUNICIPAL INFRASTRUCTURE 
PROGRAMME 

800.00 

400.00 

ELM Latin 
America 2014-
2020 

ELM Central Asia 
2014-2020 
ELM Pre-
Accession 2014-
2020 
ELM East-Ru. 
2014-2020 

ELM Asia 2014-
2020 

Ecuador 

WASTEWATER TREATMENT PROJECT IN 
GUAYAQUIL 

Kyrgyzstan 

TAJIK - KYRGYZ POWER 
INTERCONNECTION 

Turkey 

Ukraine 

ILLER BANK URBAN TRANSPORT AND 
ENVIRONMENT LOAN 

GUARANTEE FOR ECONOMIC 
DEVELOPMENT IN UKRAINE 

Bangladesh 

LAKSAM AKHAURA DOUBLE TRACK RAIL 
PROJECT 

212.30 

281.70 

92.93 

70.00 

550.00 

250.00 

1,550.87 

457.67 

554.90 

135.00 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

NIF 

NIF 

LAIF 

IPA  
WBIF 
NIF, 
(EPTATF, 
E5P 
expected) 

MFF, IPA 
II 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
ELM East-Ru. 
2014-2020 

ELM East-Ru. 
2014-2020 

ELM MED 2014-
2020 

Georgia 

KUTAISI WASTE WATER 

280.00 

100.00 

Armenia 

YEREVAN SOLID WASTE PHASE I 

35.00 

8.00 

Jordan 

NEPCO GREEN CORRIDOR 

146.10 

66.27 

ELM MED 2014-
2020 

Jordan 

WADI AL ARAB WATER SYSTEM II 
PROJECT 

101.66 

49.71 

Pakistan 

Lao People's 
Democratic 
Rep. 

Nepal 

Egypt 

WARSAK HYDROELECTRIC 
POWERSTATION REHABILITATION 

VIENTIANE SUSTAINABLE URBAN 
TRANSPORT 

NEPAL GRID DEVELOPMENT PROGRAMME 

150.00 

87.76 

65.16 

50.00 

18.91 

30.00 

DAMANHOUR CCGT POWER PLANT 

1,207.53 

550.36 

Kosovo 

ROUTE 10 RAIL REHABILITATION 

208.40 

42.00 

Tunisia 

MODERNISATION ROUTIERE II 

342.90 

150.00 

Ukraine 

UKRAINE AGRI-FOOD APEX LOAN 

800.00 

400.00 

ELM Asia 2014-
2020 

ELM Asia 2014-
2020 

ELM Asia 2014-
2020 

ELM MED 2014-
2020 
ELM Pre-
Accession 2014-
2020 

ELM MED 2014-
2020 

ELM East-Ru. 
2014-2020 

ELM MED 2014-
2020 
ELM Latin 
America 2014-
2020 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

NIF 
EPTATF 

NIF 
MPSF 

NIF 

NIF, 
FEMIP 
Trust Fund 

AIF 

AIF 

PJ 
consultancy 
NIF, 
EPTATF 

Egypt 

CAIRO METRO LINE 3 PHASE 3 - B 

2,417.90 

200.00 

X 

NIF 

Nicaragua 

NICARAGUA HYDRO DEVELOPMENT AND 
TRANSMISSION 

1,090.45 

146.09 

X 

Total, of which EIB financing 
volume 
- co-financed with other IFIs 

11,685.39 

3,420.29 

2,220.29 

- benefiting from EU grants 

1,777.30