REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2019 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE
Date: 2021-07-26
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EIB loan, European Investment Bank, credit guarantee, financial aid, financial management, institutional cooperation, interinstitutional cooperation (EU), investment abroad, investment protection, third country

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 26.7.2021  COM(2021) 416 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL ON 2019 EIB EXTERNAL ACTIVITY WITH EU BUDGETARY GUARANTEE  
 
 
1. 

INTRODUCTION 

The External Lending Mandate (ELM) granted to the European Investment Bank (EIB) is an 
important  tool  through  which  the  European  Union  (EU)  provides  support  to  investments  in 
partner  countries.  It  is  based  on  a  guarantee  from  EU  budget  resources  enabling  the  EIB  to 
increase  its  lending  outside  the  EU  in  support  of  EU  policies.  The  EU  guarantee  covers 
defined instances when borrowers fail to repay financing owed to the EIB. The EU guarantee 
thus increases the EIB’s capacity to bear risk. 

The legal basis of the ELM is Decision No 466/2014/EU (the ‘ELM Decision’),1 last amended 
in 2018.2 In case the EIB calls on the EU guarantee, payments are made from the Guarantee 
Fund for External Actions.3 

The  ELM  supports  EIB  activity  in  Pre-Accession  countries,  the  Eastern  and  Southern 
Neighbourhood and Partnership countries, Asia, Latin America and South Africa, with a total 
of  64  countries  currently  eligible.  In  the  current  ELM  period  (2014-2020),  the  EU  budget 
guarantee of up to EUR 32.3 billion of EIB financing operations covers the first 65% of losses 
that may arise in the guaranteed portfolio. The ELM Decision establishes guarantee ceilings 
for the various geographic regions and sub-regions.  

The  present  annual  report  provides  a  general  overview  of  the  EIB's  activities  under  the  EU 
guarantee  in  2019.4  It  also  provides  a  summary  of  the  operations  carried  out  by  the  EIB 
without the EU guarantee (i.e., at its ‘own risk’) in order to provide a comprehensive picture 
of  the  EIB’s  activity  in  the  regions  covered  by  the  ELM.5  In  addition,  the  Commission 
published  a  comprehensive  evaluation,  in  2019,  of  the  implementation  of  the  External 
Lending Mandate by the EIB since mid-2014 until end-2018.6 

2. 

KEY RESULTS 

In  2019,  the  EIB  signed  a  total  of  EUR  6.3  billion  of  financing  operations  in  the  regions 
covered by the ELM. Of this total, over EUR 4.9 billion of EIB operations fall under the ELM 
(i.e.  are  covered  by  the  EU  guarantee),  involving  56  financing  contracts.  The  remaining 
operations are financed from the EIB’s own-risk facilities. 

1   Decision No 466/2014/EU of the European Parliament and of the Council of 16 April 2014 granting an EU 
guarantee to the European Investment Bank against losses under financing operations supporting investment 
projects outside the Union, OJ L 135, 8.5.2014, p. 1. 

2   Amending Decision (EU) 2018/412 of 14 March 2018, OJ L 76, 19.3.2018, p. 30. 
3   Council Regulation (EC, Euratom) No 480/2009 of 25 May 2009 establishing a Guarantee Fund for external 
actions  (Codified  version),  OJ  L  145,  10.6.2009,  p.  10,  last  amended  by  Regulation  (EU)  2018/409  of  the 
European Parliament and of the Council of 14 March 2018. 

4   This report has been prepared in line with the requirements set out in Article 11 of the ELM Decision. 
5   The  EIB  currently  has  four  Own  Risk  Facilities  in  the  ELM  regions,  namely  the  Pre-Accession  Facility 
(PAF), the Neighbourhood Financing Facility (NFF), the Climate Action and Environment Facility (CAEF) 
and the Strategic Projects Facility (SPF). In addition to the ELM regions, the latter two facilities also cover 
African, Caribbean and Pacific countries and Overseas Countries and Territories of EU Member States. 
6   SWD(2019)  333  final  and  related  documents,  available  at  https://ec.europa.eu/info/commission-staff-

evaluation-european-investment-banks-external-lending-mandate-2014-18_en.  

1 

 
 
 
 
 
 
 
 
 
                                                           
Compared  to  2018,  when  EUR  4.6  billion  of  operations  were  signed  under  the  ELM,  2019 
signatures  were  approximatly.  7%  higher.  By  contrast,  the  volume  of  the  EIB’s  own-risk 
operations in ELM countries declined by almost 2% to EUR 1.36 billion in 2019. 

Chart 1 illustrates the evolution of lending under the ELM and the EIB’s own-risk facilities 
between  2017  and  2019  (amounts  signed,  net  of  operations  cancelled).  Over  this  period,  an 
average of 72% of EIB financing in these regions benefitted from the EU guarantee.7 

Chart 1: Annual evolution of EIB lending volumes in the ELM regions 

In accordance with the ELM Decision, the nature of the EU guarantee differs depending on 
the EIB’s financing operation in question: 

  A comprehensive guarantee, covering credit risk, is provided for financing operations 
with  public  sector  counterparts  (typically  for  infrastructure  development)  as  well  as 
for  EIB  loans  to  banks  or  companies  that  benefit  from  a  state  guarantee.8  EUR  4.3 
billion  or  nearly  87%  of  financing  operations  signed  under  the  ELM  in  2019 
benefitted from the comprehensive guarantee. 

  A political risk guarantee with a more limited coverage is provided for other private 
sector  operations.9  In  2019,  it  covered  financing  operations  to  the  tune  of EUR  617 
million.  

The cumulative level of disbursements under the ELM 2014-20 reached 36% of net signatures 
at  the  end  of  2019  (EUR  8.0  billion),  up  from  33%  in  2018.  Especially  in  the  case  of 

7   Differences with amounts published in previous reports are due to contract cancellations.  
8   The  EU  comprehensive  guarantee  enables  the  EIB  to  waive  the  risk  premium  it  would  otherwise  need  to 
include  in its interest rate. Consequently, partner countries or their institutions/companies can borrow from 
the EIB at a significantly lower cost. For a detailed analysis, see SWD(2019) 333, referred to in footnote 6, 
pp. 10-11, 21 and 33-37. 

9   The political risk guarantee covers non-payment due to non-transfer of currency, expropriation, war or civil 
disturbance or denial of justice upon breach of contract. It does not translate in a reduction of the EIB’s risk 
pricing. 

2 

58%77%79%5.4295.9846.26601234567201720182019EUR billionELMEIB's own risk facilities 
 
 
 
 
 
 
                                                           
infrastructure  projects,  disbursements  of  EIB  financing  take  place  gradually  and  over  a 
number of years.10 

3. 

FINANCING OPERATIONS 

3.1. 

OVERVIEW OF NEW EIB FINANCING OPERATIONS BY OBJECTIVE 

Each operation under the ELM contributes to one of two ‘vertical’ objectives: (a) local private 
sector development or (b) development of social and economic infrastructure. In addition, the 
same operations can also contribute (partly or fully) to the ‘horizontal’ objectives of climate 
action, regional integration and long-term economic resilience of refugees, migrants, host and 
transit communities, and communities of origin.11 

As  mentioned  above,  the  total  volume  of  EIB  investments  signed  under  the  ELM  in  2019 
amounted to EUR 4.9 billion. 67% is intended to contribute to the development of social and 
economic  infrastructure.  The  remaining  33%  is  expected  to  support  local  private  sector 
development,  principally  through  improving  access  to  finance  for  small  and  medium-sized 
enterprises (SMEs). 

From  the  total  volume  of  operations  signed  under  the  ELM  in  2019,  31%  is  aimed  at 
contributing  to  the  climate  action  objective,  21%  to  regional  integration,  and  17%  to  long-
term economic resilience (see Chart 2). 

Chart 2: Contribution to ELM objectives in 2019 (EUR billion)  

Note:  A  single project  may  contribute to  more  than  one  objective  of the  ELM.  The  objectives  of Climate  Action,  Regional 
Integration  and  Long-term  Economic  Resilience  are  cross-cutting  (horizontal)  objectives  applying  to  all  projects  and 

10  For  a  more  detailed  analysis  concerning  disbursements,  see  the  recent  Commission  staff  evaluation,  SWD 

(2019) 333, pp. 28 – 30. 

11   Article 3 of the ELM Decision. 

3 

3.2261.6101.4831.0250.81967%33%31%21%17%0.00.51.01.52.02.53.03.5Social andEconomicInfrastructureLocal PrivateSectorDevelopmentClimate ActionRegionalIntegrationLong-termeconomicresilienceEUR billion 
 
 
 
 
 
  
 
                                                           
therefore  overlap  with  the  two  others.  Signature  volumes  for  Local  Private  Sector  Development  and  Economic  &  Social 
Infrastructure counted together give the total volume signed in the year. 

Local private sector development, in particular support to SMEs 

The  EIB  signed  EUR  1.8  billion  of  operations  in  the  ELM  regions  supporting  local  private 
sector  development  in  2019,  of  which  EUR  1.6  billion  under  the  ELM.  The  main  lending 
instrument  used was  credit lines for on-lending to  SMEs and midcap companies, with  EUR 
1.51 billion in contracts signed for nine credit lines for local financial intermediaries to enable 
them to  go further in addressing the finance needs of this market segment. 2019 also saw 5 
new microfinance projects supported12 and 4 direct loans to companies. 

Equity finance involves smaller volumes and is riskier by nature. EUR 94 million were signed 
in 2019 for 8 new equity funds. Two funds have a focus on supporting high growth potential 
companies and local private sector development in the Southern Neighbourhood, whereas the 
other 6 are cross-regional and have a focus on renewable energy and other green investments.  

Development of social and economic infrastructure 

Financing operations contributing to the development of social and economic infrastructure in 
the ELM regions amounted to EUR 4.4 billion signed by the EIB in 2019, of which EUR 3.2 
billion  under  the  EU  guarantee.  The  main  sectors  concerned  were  energy,  transport  and 
water/sewage.  Transport  projects  were  again  this  year  in  focus,  with  12 projects  accounting 
for just over 50% of total signatures by volume. Some focused on sustainable transport (such 
as urban metro projects in Pune and Bhopal in India, and in Cairo in Egypt), others targeted 
connectivity  and  regional  integration  in  the  Neighbourhood  countries  and  the  Western 
Balkans.  

The  other  major  sectors  represented  are  energy  and  water,  sanitation  and  solid  waste.  The 
energy  projects  were  focused  on  enhancing  sustainability  in  the  sector,  mostly  through 
smaller-scale  renewable  energy  projects  (i.e.  via  framework  loans  and  participation  in  6 
funds).  With  regard  to  water  and  waste  management,  there  was  a  focus  on  improving 
wastewater  management  in  the  Western  Balkans  and  the  Southern  Neighbourhood.  In 
addition,  a  project  to  improve  solid  waste  management  in  Moldova  was  also  among  those 
financed.  

Climate change mitigation and adaptation 

EUR  2.7  billion  worth  of  loans  signed  in  2019  in  the  ELM  regions  support  climate  change 
mitigation and adaptation, of which nearly EUR 1.5 billion under the EU guarantee.13 At end-
2019, the cumulative climate action ratio in the current ELM period stood at over 35% of net 
signatures14,  exceeding  the  25%  minimum  target  established  by  the  ELM  Decision  and 
consistent  with  the  target  of  at  least  35  %  of  total  EIB  financing  operations  in  emerging 
economies and developing countries outside the Union by 2020.  

12 In Lebanon, Tunisia, West Bank and Gaza, Georgia and Kazakhstan. 
13 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. 

14 The corresponding figure for 2019 was 31%. 

4 

 
 
 
 
 
 
 
 
 
 
                                                           
The  largest  contributions  to  the  climate  action  objective  came  from  lower  carbon  transport 
and  renewable  energy  investments.  Adaptation  to  climate  change  accounted  for  8%  of  the 
EIB’s climate-related financing in the ELM regions. In 2019, the EIB adopted a new Energy 
Lending Policy. As a consequence, outside the EU, the EIB will support the development of 
energy  systems  that  are  low-carbon,  efficient  and  reliable,  and  which  improve  access  to 
modern and affordable energy. In addition, and in line with the UN sustainable development 
goals seeking to double the global rate of improvement in energy efficiency by 2030, the EIB 
will apply outside the EU the same principle as within the EU. As part of its commitment to 
inclusive  and  sustainable  growth,  the  EIB  will  continue  to  support  energy  projects  that 
contribute to the aims of the 2030 UN Agenda for Sustainable Development. 

Regional integration 

Total EIB signatures in 2019 for the regional integration objective in ELM regions was EUR 
1.1  billion,  of  which  EUR  1.0  billion  under  the  EU  guarantee.  Activity  in  the  Eastern 
Neighbourhood continued with large road connectivity projects in Ukraine and Georgia, while 
other road projects in Serbia and Morocco also supported regional integration. In the Western 
Balkans, the Montenegro Education Programme supported regional integration by addressing 
under-investment  and  poor  allocation  of  resources  in  the  educational  sector,  improving  the 
quality of education in remote areas and harmonising standards, thus contributing to regional 
economic growth and social cohesion. In addition, the Partnership for Local Development in 
Serbia is expected to raise the quality of municipal infrastructure and services in some of the 
poorest  areas  of  the  country,  supporting  alignment  with  EU  standards  and  thus  helping  the 
country to meet EU accession criteria. 

Economic Resilience Initiative 

In  cooperation  with  the  European  Commission  in  response  to  a  request  by  the  European 
Council for a specific initiative aimed at rapidly mobilising additional financing in support of 
growth,  vital  infrastructure  and  social  cohesion  in  the  Mediterrreanean  region  and  Western 
Balkans, the Economic Resilience Initiative (ERI) was launched in 2016 as a contribution to 
Europe's response to the migration and refugee challenge.15 The ERI is a part of Europe's joint 
response to the migration and refugee crisis, with a focus on tackling the longer-term causes 
of migration and mitigating long-term impacts of shocks and crises. Therefore, ensuring close 
coordination and complementarity with other EU initiatives is a key priority. In the context of 
the  mid-term  review  of  the  ELM  completed  in  2018,  an  additional  objective  of  long-term 
economic  resilience  was  introduced  in  the  ELM  Decision.  Moreover,  EUR  1.4  billion  was 
earmarked for public sector investments contributing to the resilience objective, and a specific 
‘ERI  Private  Mandate’  of  EUR  2.3  billion  was  created  in  order  to  guarantee  private  sector 
investments supporting long-term economic resilience. The ERI Private Mandate provides to 
the  EIB  a  comprehensive  guarantee  cover,  enabling  it  to  undertake  financing  operations 
involving higher risk.16 

15 https://www.eib.org/en/projects/initiatives/resilience-initiative/index.htm  
16 The EIB remunerates the EU for the budgetary guarantee under the ERI Private Mandate by passing on to the 

EU the risk-related revenues on these operations. 

5 

 
 
 
 
 
 
 
 
                                                           
By end of 2019, the EIB hadapproved a total of EUR 5.6 billion of operations responding to 
the  ERI  objectives,  of  which  EUR  819  million  were  signed  in  2019.  Around  half  of  this 
volume  covered  credit  lines  (mainly  for  lending  to  SMEs),  some  15%  water  or  sewerage 
investments  and  some  11%  investments  in  transport.  More  than  two  thirds  of  the  signed 
financing  target  the  private  sector,  providing  increased  economic  resilience  especially  for 
SMEs.  Most  of  the  remaining  signed  financing  targets  the  infrastructure  allowing  the 
provision  of  basic  services  such  as  access  to  clean  water  and  sanitation,  waste  management 
and electricity, education and healthcare, local transport and urban services, for both refugees 
and host communities alike.  

3.2. 

OVERVIEW OF EIB FINANCING BY REGION AND SECTOR 

Table 1 provides an overview of the volume of EIB financing in 2019 in the regions covered 
by the ELM, including those with EU guarantee and those financed under own-risk facilities.  

Table 1: EIB financing operations signed in 2019 in ELM regions (net of cancellations) 

Out of the total of EUR 7.7 billion of operations outside the EU (including the ACP countries, 
Overseas  Countries and  Territories  as well the EFTA states) in  2019, EUR 6.3 billion were 
signed in the ELM regions. Approximately EUR 4.1 billion were signed in the Pre-Accession 
and  Neighbourhood  and  partnership  countries  (both  South  and  East).  EUR  2.2  billion  were 
signed in Asia, Central Asia, Latin America and South Africa. 

Compared to 2018, the total volume of EIB financing in ELM regions increased by 4.7% in 
2019,  mainly  due  to  a  ramp-up  of  activity  in  the  Eastern  Europe,  Southern  Caucasus  and 
Russia sub-region and the and the  and the Mediterreanean sub-region.  

6 

Region(EUR million)Comprehensive guaranteePolitical risk guaranteeTotal ELMPre-Accession3905044060500Southern Neighbourhood2,203252,228752,303Eastern Europe, Southern Caucasus and Russia10961801276191295Asia (excl. Central Asia)20520510071212Central Asia3012421557Latin America380250630187817South Africa100100100Total 4,3046174,9221,3646,285Operations with EU guaranteeEIB own-risk facilities or third-party Total 
 
 
 
 
 
 
 
 
 
 
 
Table  2:  Net  signatures  per  year  and  cumulative  net  signatures  compared  with  ELM 
guarantee ceilings for 2014-20 (Decision 466/2014/EU as amended by Decision (EU) 2018/412) 

* The ERI Private Mandate covers the Western Balkans and the Mediterranean region. 
the  ELM  for  2014-19,  net  of  cancellations,  reached 
Cumulative  signatures  under 
approximately  EUR  22.4  billion  at  the  end  of  2019.  The  cumulative  utilisation  rate  of  the 
ELM in terms of net signatures stood at 69% of the overall guarantee ceiling.  

The  lowest  rate  of  utilisation  of  the  EU  guarantee  is  observed  in  the  Pre-Accession  region. 
This is explained mainly by the scaling back of EIB operations in Turkey in view of political 
and  economic  developments  since  2016.  A  lower  utilisation  rate  than  average  can  also  be 
observed  in  the  Southern  Neighbourhood  where  the  EIB  continue  to  judge  the  overall 
operational environment  to be challenging, partly due to political instability, growing public 
debt  and  diminished  fiscal  space  in  some  countries.  The  EIB  also  cites  weak  capacity  and 
capability of promoters as  complicating factor.  

The  highest  utilisation  rates,  in  terms  of  signatures,  are  recorded  in  Central  Asia  and  in  the 
Eastern Neighbourhood. 

Table 3: Sector distribution of EIB financing operations signed in ELM regions in 2019 
under the EU guarantee 

7 

Net signatures, EURm2014 (H2)20152016201720182019Total 2014 (H2)-Utilisation ratePre-Accession2009065661701,1422413,22444%Southern Neighbourhood3697261,2991,1681,3671,6096,53764%Eastern Europe, Southern Caucasus and Russia9751,4011,4726576321,2766,41396%Asia (excl. Central Asia)45433451182052051,05190%Central Asia7070202242224100%Latin America2194683193623476302,34687%South Africa150507010037080%ERI Public Mandate5226791,20186%ERI Private Mandate*`6123251401,07647%Total1,8784,1543,7203,1594,6104,92222,44269%Sector / regionCentral Asia(EUR million)Transport1005768141521,64233%Credit lines501000196121351001,49330%Water, sewerage194382665414584117%Energy217843035068114%Industry5022381102%Agriculture, fisheries, forestry2526511%Urban development17627501%Solid waste25250.5%Education18180.4%Composite infrastructure11110.2%Total4402,2281,276206426301004,922100%TotalShare of  totalPre-AccessionSouthern Neighbour-hoodEastern Neighbour-hoodAsiaLatin AmericaSouth Africa 
 
 
 
 
 
 
Looking  specifically  at  the  ERI  Private  Mandate,  the  EIB’s  utilisation  rate  (based  on  net 
signatures) reached 47% by the end of 2019.  
As concerns sector distribution of ELM operations in  2019, the top  rank  is  occupied by the 
transport  sector  representing  33%  of  total  signatures.  The  majority  of  ELM  operations 
consists  of  infrastructure  investments,  mainly  in  the  transport,  energy  and  water/sewerage 
sectors. 

3.3. 

IMPACT AND VALUE ADDED OF EIB OPERATIONS 

In  its  evaluation  of  13  September  2019,17  the  Commission  conducted  a  comprehensive 
analysis  of  the  impact  and  added-value  of  the  implementation  of  the  External  Lending 
Mandate by the EIB. The paragraphs below reflect the EIB’s own evaluation of the impact of 
its operations, as evaluated according to the EIB’s result measurement tool.   

The EIB tracks the expected results and impact of its financing operations through its ‘Result 
Measurement Framework’ (ReM), launched in 2012. At appraisal stage, results indicators are 
identified,  with  baselines  and  targets  that  forecast  expected  economic,  social,  and 
environmental  outcomes.  Achievement  against  those  performance  benchmarks  is  monitored 
throughout the project's life and reported at various milestones: project completion and three 
years  after  project  completion  ('post  completion')  for  direct  operations;  the  end  of  the 
investment  period and the end of life for private equity funds; and the end of the allocation 
period  for  credit  lines.  The  majority  of  EIB  operations  under  the  ELM  serve  to  finance 
infrastructure investments, which typically take many  years to be completed. Data on actual 
results  and  impacts  achieved  with  the  support  of  the  EU  budgetary  guarantee  therefore 
normally becomes available with a considerable time lag.  

In accordance with the ReM, projects are rated by the EIB under three 'pillars': 

i. 

ii. 

iii. 

Pillar 1 rates the expected contribution to the EU and partner countries' priorities and 
eligibility  under  the  EIB  mandate  objectives.  It  helps  to  understand  the  logic  of  the 
EIB intervention with a view to the expected impacts of the project. 
Pillar  2  rates  the  quality  and  soundness  of  the  operation,  based  on  the  expected 
outputs, outcomes and results. 
Pillar 3 rates the expected financial and non-financial contribution (added value) that 
the  EIB  brings  to  the  project,  beyond  the  market  alternative.  It  helps  to  assess  the 
intervention logic at the level of the EIB’s input to the project. 

Under  the  ELM  and  the  EIB's  own-risk  facilities,  the  EIB  signed  a  first  financing  contract 
with  regard  to  66  projects  in  2019.  The  EIB  rated  65  of  those  66  new  projects  at  least 
'significant'  under  Pillar  1  of  the  ReM  framework,  signifying  that  they  are  deemed  to  be  in 
line  with  ELM  objectives  and  make  a  high  contribution  to  either  national  development 
objectives or those of the EU and a moderate contribution to the other. 42 projects were rated 
'high'  by  the  EIB  for  making  a  high  contribution  to  both  EU  priorities  and  national 
development objectives.  

17  https://ec.europa.eu/info/commission-staff-evaluation-european-investment-banks-external-lending-mandate-

2014-18_en. 

8 

 
 
 
 
 
 
 
 
 
                                                           
The Pillar 2 rating is  based  on project  soundness, financial and  economic sustainability and 
environment and social sustainability. Five new projects signed in 2019 were rated 'excellent' 
and 57 were rated 'good' by the EIB under Pillar 2, with an average economic rate of return of 
10% to 15% in the case of infrastructure projects. 4 projects received an 'acceptable' rating by 
the EIB, often because of high risk environments or promoters’ weaknesses.  

Chart 3: EIB ReM ratings by pillar for new operations in ELM regions signed in 2019 

Under  Pillar  3,  the  EIB  rated  its  expected  financial  and  non-financial  contribution  to  61 
projects  as  'high'  or  'significant',  notably  for  the  length  of  tenor  of  financing  provided, 
exceeding what was available in local markets.  

As the EIB Results Measurement Framework matures, data gradually becomes available also 
on the results actually achieved on some operations where expectations had been formulated 
through the ReM as launched in 2012. For 2019, the EIB has reported achieved results for 18 
financial sector operations (credit lines) – 10 in Turkey, 3 in Egypt, 2 each in Montenegro and 
Serbia and 1 in Tunisia. Under these, the partner banks extended EUR 2.3 bn through 5,531 
loans in total. Of these, 5,202 loans benefited SMEs and 329 midcaps.  The average tenor of 
the  loans  provided  to  final  beneficiaries  (weighted  by  loan  size)  was  4.4  years.  The  final 
beneficiary  companies  employed  approximately  266,000  people  in  total  and  the  average 
beneficiary company was “small”, with 48 employees. 

3.4 

CALLS ON THE EU GUARANTEE 

From  2012  to  2019  the  EIB  called  overall  EUR  476  million,  of  which  just  under  EUR  55 
million in 2019. The residual principal amount potentially callable stood at EUR 161 million 
at  end-2019.18  In  2019,  the  EIB  made  several  new  calls  under  the  EU  Guarantee  as  a 
consequence  of  overdue  amounts  on  Syrian  sovereign  loans.  Efforts  to  recover  the  overdue 

18   The amounts are reported in the EUR equivalent as of 31 December 2019 for indicative purposes only. Some 

of the guarantee calls refer to amounts owed in other currencies.   

9 

Moderate, 1Acceptable, 4Moderate, 5Significant, 23Good, 57Significant, 46High, 42Excellent, 5High, 15010203040506070Pillar 1: contribution to EU &partner country prioritiesPillar 2: quality & soundnessPillar 3: EIB financial & non-financialcontributionNumber of projects 
 
 
 
 
 
 
 
                                                           
amounts have not been successful to date. The EIB has followed up in relevant courts in order 
to preserve the EU’s claims on the amounts owed by Syria.19 

The  EIB  called  on    the  Political  Risk  Guarantee  in  June  2016  for  the  loan  for  Aéroport 
Enfidha in Tunisia. The subsequent discussions between the EIB and the Commission resulted 
in  an  agreement  on  the  treatment  of  this  guarantee  call.  In  short,  the  parties  agreed  to  split 
evenly  the  outstanding  exposure  under  the  loan  agreement.20  In  2019,  the  borrower,  its 
shareholders,  the  lenders  and  the  Tunisian  Authorities  reached  a  restructuring  agreement, 
which is expected to become effective in the course of 2020. The signing of the restructuring 
agreement in December 2019 triggered a payment of ca. EUR 1.4 million, the first in 4 years. 
In line with the agreement between the EIB and the Commission, half of the received amount 
was refunded to the Commission in January 2020. 

4. 

EIB COOPERATION WITH OTHER PARTNERS 

4.1 

COOPERATION WITH THE COMMISSION 

Cooperation between the EIB and the Commission on matters related to the ELM takes place 
in  the  context  of  a  broader  partnership  between  the  two  institutions,  including  the  EU 
blending  facilities, for example the Neighbourhood  Investment  Platform  (NIP), the Western 
Balkans  Investment  Framework  (WBIF)  and  the  ERI  Technical  Assistance  (ERI  TA),  that 
support development financial institutions’ activities outside the EU. 

The EIB has continued to draw on these facilities, i.e. concessional financing from EU budget 
resources,  supporting  the  preparation  and/or  implementation  of  EIB-financed  projects.  In 
2019, the EIB approved 22 new grants fully or partially funded from EU budget for a total of 
EUR 226 million for implementation by the EIB in ELM regions. Of these, EUR 37.6 million 
were for Technical Assistance (TA), EUR 148.5 million for Investment Grants and EUR 40.1 
million for Financial Instruments. In addition, 22 ERI TA operations were approved for a total 
amount  of  EUR  34.6  million.  Meanwhile,  21  EIB  projects  signed  in  2019  in  ELM  regions 
benefited, or will benefit, from those grants that were either directly funded by the EIB’s own 
resources, like ERI TA, or implemented by the EIB and fully or partially funded from the EU 
budget. 

The EIB is also one of the implementing partners for the new EU guarantee offered through 
the  European  Fund  for  Sustainable  Development  (EFSD).  The  ELM  and  the  EFSD  target 
rather  different  types  of  products,  borrowers  and  geographies.  For  example,  the  EFSD  does 
not cover the Western Balkans while the ELM does not cover large parts of Africa. Moreover, 
the decision-making process on the EU guarantees provided under the EFSD is different from 
the upfront 7-year guarantee provided to the EIB for the ELM. 

In June 2018, the Commission proposed to establish a new Neighborhood, Development and 
International Cooperation Instrument (NDICI) as of 2021 and to revamp the provision of EU 

19   In parallel, the EIB pursued legal proceedings against Syria launched in 2017. The English High Court (on 29 
June  2018)  and  the  General  Court  /  ECJ  (on  6  June  2019)  ruled  in  favour  of  granting  the  EU  a  summary 
judgement which admits all EU claims against Syria in respect of the outstanding sums overdue under loans 
made by the EIB to Syria by the time of the submission of the claims. 

20 The agreement was signed on 8 December 2017. 

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budgetary guarantees for investment outside the EU.  21 The approach for post-2020 is based 
on the notion of an ‘open architecture’, whereby partner financial institutions should benefit 
from the EU guarantee based on their respective expertise, to deliver the highest development 
impact  for the EU on the ground. The EIB would remain a key partner for the financing of 
investments  outside  the  EU,  particularly  as  regards  public  sector  investment  projects,  but  a 
number  of  other  financial  institutions  would  also  qualify  for  EU  guarantees.22  The  NDICI 
foresees  a  strong  policy  steer  from  the  EU  and  reinforced  coordination  with  the  financial 
institutions serving as implementing partners. Technical discussions between the Commission 
and the EIB have taken place to explore possible modalities for the post-2020 guarantees that 
could be provided by the EU to the EIB. 

4.2. COOPERATION WITH THE EUROPEAN OMBUDSMAN 

The Memorandum of Understanding signed between the EIB and the European Ombudsman 
in  2008  sets  the  basis  for  the  two  stages  of  the  EIB  Complaints  Mechanism  (EIB-CM). 
Complaints are first handled through the EIB-CM before possibly coming to be examined by 
the  Ombudsman.  The  EIB  updated  its  Complaints  Mechanism  Policy  in  November  2018.23 
During 2019, the Ombudsman notified one new complaint related to the EIB activities in the 
ELM regions. 

As  for  the  internal  stage  of  the  EIB-CM,  the  number  of  new  project-related  complaints 
registered in the ELM regions decreased from 19 in 2018 to 15 in 2019. Out of these, 11 were 
related to environmental and social issues, 3 to governenance aspects of financed operations, 
and  1  to  access  to  information.  During  2019,  the  EIB-CM  closed  15  cases  in  the  ELM 
regions: 4 in Bosnia and Herzegovina, 4 in Tunisia, 2 in Serbia, 1 in India, 1 in Costa Rica, 1 
in  Ukraine,  1  in  Panama  and  1  multi-location  case.24  The  outcome  of  these  complaints 
handled by EIB-CM varied from ‘allegations not grounded’ (7), ’financing withdrawn by the 
EIB’ (3), ‘friendly solution’ (1), ‘allegations grounded’ (1), ‘financing request withdrawn by 
the promoter’ (1) and ‘areas for improvement recommended’ (2). 

4.3. COOPERATION WITH INTERNATIONAL FINANCIAL INSTITUTIONS  

The EIB’s cooperation with other International Financial Institutions (IFIs) and development 
finance institutions of EU Member States (DFIs) ranges from dialogue on institutional matters 
and thematic issues to co-financing of operations and sharing of relevant technical work.  

In 2019, the EIB co-financed 6 operations together with the European Bank of Reconstruction 
and  Development  (EBRD)  for  a  total  of  EUR  888  million.  Four  projects  were  co-financed 
with  the  AFD  Group  (France)  and  three  with  the  KfW  Group  (Germany).  Furthermore,  4 
projects  were  co-financed  with  the  International  Bank  for  Reconstruction  and  Development 

21 Proposal for a Regulation of the European Parliament and of the Council, COM(2018) 460 final of 14 June 

2018, establishing the Neighbourhood, Development and International Cooperation Instrument. 

22 See also Commission Communication of 12 September 2018 “Towards a more efficient financial architecture 

for investment outside the European Union”, COM(2018) 644 final.   

23   http://www.eib.org/en/infocentre/publications/all/complaints-mechanism-policy.htm  
24 Kyrgyzstan,  Tadjikistan, Afghanistan and Pakistan. 

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(IBRD), part of the World Bank Group. The EIB, AFD and KfW have continued to cooperate 
closely  in  the  context  of  the  Mutual  Reliance  Initiative  (MRI).  Launched  in  2013,  the  MRI 
streamlines and facilitates the delivery of co-financing support to beneficiaries by relying on 
one of the three partners assuming the role of Lead Financier for certain project-related tasks, 
e.g.  parts  of  the  project  due  diligence  or  procurement  supervision.  The  management  and 
decision-making bodies of the MRI partners have become acquainted to documents prepared 
by another institution, which they use for their own decisions. Overall in 2019, 24 co-financed 
projects were signed in the ELM regions. 

Chart 4: IFIs and DFIs co-financing with EIB projects signed in 2019 (EUR million) 

Note:  The  amounts  to  be  co-invested  by  other  IFIs  and  DFIs  are  purely  indicative,  based  on  estimations 
undertaken  at  early  stages  of  project  development.  For  clarity,  partners  inlcude:  EBRD  (European  Bank  of 
Reconstructing  Development),  International  Bank  for  Reconstruction  and  Development  (IBRD),  Agence 
Française  de  Développement  (AFD),  KfW,  Asian  Infrastructure  Investment  Bank  (AIIB),  Asian  Development 
Bank (ADB), Japan International Cooperation Agency (JICA), International Fund for Agricultural Development 
(IFAD), International Development Association (IDA). 

12 

 - 100 200 300 400 500 600 700 800 900 1,000EBRDIBRD (partof WorldBankGroup)AFDGroupKfWGroupAIIBADBJICAIFADIDANDF