Donor support is vital to the EBRD's work in countries from central Europe to central Asia and, most recently, the southern and eastern Mediterranean (SEMED) region.
Donors’ resources and expertise allow the Bank to invest in sustainable projects that improve living conditions and economic opportunities.
Who benefits from Donor support?
Donor funding directly benefits people across the countries where the EBRD works. Donor projects improve water and wastewater services, increase access to finance, upgrade key infrastructure and promote equal opportunities for women and men.
Learn more about Donor countries and organisations
EBRD managed multi-donor funds
The E5P is a multi-donor fund managed by the EBRD to facilitate investments in energy efficiency and environmental projects aiming at reducing greenhouse gas emissions in the Eastern Partnership countries. The Fund has been successfully operating in Ukraine (supported by €92 million) for three years and is currently expanding to Armenia, Georgia and Moldova. A pledging conference in October 2013 mobilised close to €60 million for the new E5P countries. The E5P donors are: the European Union (the largest contributor with €40 million), Czech Republic, Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Sweden, Ukraine and the United States.
Early Transition Countries (ETC) Fund
The Early Transition Countries (ETC) Fund was launched in 2004 and has been a flagship multi-donor vehicle with 14 contributors: Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, the Taiwanese government and the United Kingdom. The Fund has been channelling substantial financial support to the ETC region. It has played a critical role in enabling the Bank to support innovation in these low-income countries, for example, by establishing investment councils, introducing stakeholder programmes in MEI projects and advancing gender equality. It has also allowed the Bank to take more risk -for instance, by increasing financing for SMEs under direct financing facilities and advancing local currency lending. Donor support has helped to increase the percentage of EBRD transactions in the ETC region from 8 per cent in 2002-04 to more than 30 per cent in 2009-13
The SSF, established in 2008, is endowed by the resources of the net income of the Bank. It provides vital grant co-financing for the Bank’s operations. Complementing the work of donors, it has enhanced funding in areas of strategic importance, notably in the ETCs and support for sustainable energy, infrastructure and small business financing operations and has also provided non-TC grants in the SEMED region. The SSF has introduced greater predictability, as donor funds are leveraged by co-financing and catalyse further donor contributions. It also fills financing gaps between donor priorities and the Bank’s objectives. Having allocated €150 million to the Fund for the period 2011-13, the Bank approved an additional €65 million for 2014-15. Another €25 million has been made available to support operations in the SEMED countries (€10 million having been allocated to projects in 2013).
The EBRD Water Fund, which follows the guidance of the United Nations Economic Commission for Europe (UNECE)/World Health Organization (WHO) Protocol on Water and Health, is a multi-donor fund focusing on water safety, access and supply projects in ODA countries. With the support of four contributors –Finland, Korea, Norway and Sweden– the Fund was established in 2010, initially targeting Central Asia. Since its inception, it has approved 14 projects totalling €5.8 million, including €2 million in June 2013 for five municipal water schemes in the ETCs. With the Fund's support, the Bank is incorporating the WHO’s Water Safety Plans, a public health benchmark for safe water, into its priority investment programme in 20 cities in Tajikistan.
The NDEP Support Fund was established in July 2002 by the EBRD to pool grant contributions for the improvement of the environment in north-west Russia. Contributors to the Fund are the European Union and 12 countries: Belarus, Belgium, Canada, Denmark, Finland, France, Germany, Netherlands, Norway, Russia, Sweden and the United Kingdom. The Support Fund currently stands at over €347.2 million.
The southern and eastern Mediterranean Multi-Donor Account (SEMED MDA) was set up in 2012 to support EBRD engagement in Egypt, Jordan, Morocco and Tunisia. The account finances activities in priority sectors identified by the Bank in the region. Its contributors are Australia, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Taipei China and the United Kingdom. The MDA played a key role in initial operations in the SEMED countries and has retained its position as the “fund of first resort” for TC activities. The contributors have pledged nearly €23 million to the account and thus helped to finance about 40 assignments, ranging from sector assessments to advisory support to MSMEs as well as investment preparation and implementation assistance.
SEMED cooperation funds account
In 2011 EBRD shareholders allocated €20 million from the Bank’s net income to enable a quick start of operations in SEMED. Alongside donor funding, these resources have provided vital support for TC activities in the region. In 2013, €7.4 million of the SEMED cooperation funds account was committed.
This MDA was established by the EBRD in 2014 in support of Ukraine’s efforts to reform its economy, improve its business climate and restore sustainable growth. The MDA enables the Bank to provide support for policy reforms that are urgently needed to stabilise the economy, and paves the way for a planned increase in EBRD investments in the country. Grants totalling €10.4 million were made available in 2014 by Denmark, Finland, France, Germany, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States.
The EBRD manages six donor funds providing support to enhance nuclear safety. Some 30 donors, including the G-8 countries and the European Commission, have pledged more than €3 billion so far to funds that include:
- the Nuclear Safety Account (NSA)
- the Chernobyl Shelter Fund (CSF)
- three international decommissioning support funds for Bulgaria, Lithuania and the Slovak Republic
- the “Nuclear Window” of the Northern Dimension Environmental Partnership Support Fund (NDEP)
The Russian Small Business Fund (RSBF) was established in 1994 with the support of the G7 countries and Switzerland to provide financing to micro and small enterprises (MSEs) and to help strengthen the capacity of the Russian banking sector to lend to MSEs on a sustainable basis.
As of January 2012 US$9 billion were disbursed in 600,000 sub-loans to MSEs. More than 90 per cent of all RSBF sub-loans to MSE outstanding in regions outside Moscow and St. Petersburg, where the need for job creation and poverty alleviation is greatest.
RSBF technical cooperation programmes have been highly instrumental in strengthening the institutional capacities of RSBF partner banks in MSE lending, developing and launching new products as well as expanding the lending base and market outreach.
Donors that have supported the Fund with technical cooperation funds include the EU, the US, Japan, the UK, France, Germany, Italy, Canada and Switzerland.
Special Climate Change Fund
The Special Climate Change Fund (SCCF) is a dedicated trust fund for investments in climate change adaptation, covering water efficiency, water management audits, climate-smart agriculture and weather-based insurance. In 2013 the EBRD became an implementing agency of this Fund, and has received a total of US$ 10 million in grants to support water efficiency projects in the Kyrgyz Republic and Tajikistan and new climate adaptation technology transfer.
Central European Initiative
The Central European Initiative (CEI) is a regional forum which promotes cooperation among 18 countries in central and eastern Europe. The CEI Fund, which was established in 1992 and has been entirely financed by Italy (with €38.5 million to date), supports transition countries in the process of EU integration. In 2013 the Fund committed approximately €900,000 for six TC assignments in these countries, mainly in the infrastructure and sustainable energy sectors (the transport sector having been the main beneficiary since the Fund's inception). In addition, by supporting the Green Energy Special Fund and several frameworks under the Energy Audit Programme of the Bank’s Sustainable Energy Initiative (SEI), the CEI Fund is committed to promoting best practice in energy efficiency and sustainability, particularly in the Western Balkans, and enhancing related EBRD investments. The Fund’s contribution has been essential in shaping the structure of the SEI. In 2013 the Fund was replenished with €2 million.
Launched in 2010, the main purpose of the Investment Facility for Central Asia (IFCA) is to promote investments in infrastructure, which have focused initially on energy, environment, SMEs and social infrastructure. The IFCA covers Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan. Since 2010 it has contributed over €54 million to EBRD projects, including €21 million in 2013 in support of energy efficiency and MEI projects (notably the establishment of the first EU-compliant landfill scheme in Central Asia).
The Climate Investment Funds (CIFs) are financing instruments, channeled through multilateral development banks and designed to pilot low-carbon emissions and climate-resilient development. The EBRD has been involved in the development and implementation of the CIFs since 2007. It is currently accessing resources for: Kazakhstan, Turkey and Ukraine under the CIFs’ Clean Technology Fund; for Tajikistan under the Pilot Programme for Climate Resilience; and for Armenia under the Renewable Energy Programme. These funds are mobilising large-scale donor resources and, through the ability to combine different instruments for each project, allow the Bank to develop a targeted and integrated approach to technical cooperation, grants and concessional loans. The EBRD received € 96.5 million in 2013.
EU Neighbourhood Investment Facility (NIF)
The Neighbourhood Investment (NIF) supports infrastructure projects in the transport, energy, financial, social and environmental sectors by combining EU grant resources with loans from European development financing institutions. NIF funding is particularly focused on the Eastern Partnership (EaP) countries and the southern and eastern Mediterranean (SEMED) region. Since the NIF’s establishment in 2008, the European Union has made €789 million available to the Facility and EU member states have contributed another €78 million.
The NIF has to date financed 86 projects worth €753 million through all eligible international financial institutions (IFIs), leveraging a total value of €9.6 billion. Since 2008, it has approved grant funding for 36 EBRD projects, amounting to over €238 million – which includes €15 million shared between the EBRD, European Investment Bank (EIB) and the German development bank KfW – and with a total project value of around €3.6 billion. Projects in the MEI sector have benefited the most from NIF support (€64 million), followed by the financial (€52 million) and transport (€36 million) sectors.
The EBRD has received €36.5 million to support SEMED activities. A further €70 million was also approved in 2013 for seven new projects to improve transport services in Moldova, energy efficiency in the Caucasus and SEMED regions, water services in Armenia and Moldova, and to directly support SMEs across the EaP countries
The Global Environment Facility (GEF) was established in 1991 to promote environmental and sustainable development and to cover the incremental costs associated with introducing global environmental benefits to local and regional projects. Originally the GEF was one of the few international funds channeling public resources to address climate change. It provides grants for projects in six focal areas: biodiversity, climate change, international waters, land degradation, the ozone layer and persistent organic pollutants. The EBRD, as one of the GEF implementing agencies, has been receiving TC funding and grant co-financing through the GEF since 2004 for international waters and climate change mitigation and adaptation projects. In 2013 the EBRD received €8 million.
Established in 2009, the Western Balkans Investment Framework (WBIF) provides technical assistance, grant co-financing and other grant-funded instruments to support sustainable growth in the Western Balkans. It pools resources from the European Union, partner financial institutions including the EBRD, and 19 bilateral donors for investment in the transport, energy, environment and social sectors, and in private sector development. Since its inception, 178 grants amounting to approximately €300 million have been approved. The EBRD has received €73 million of grants for the implementation of 43 assignments, about 25 per cent of the overall portfolio. In 2013 eight grants worth €8.89 million were awarded for projects in the energy and transport sectors, including for hydropower, district heating, railway and motorway developments in Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo and Montenegro. Regional integration and beneficiary ownership are the guiding principles of the WBIF; 88 per cent of funds have been spent on TC support for investments with a regional impact. Outside of the WBIF's remit but still within the Western Balkans region, national IPA funds totaling €3.48 million were secured to support SME development in Serbia
Through EBRD- European Local Energy Assistance Facility (ELENA), the Bank helps local and regional authorities to implement viable investment projects in the areas of energy efficiency, renewable energy and sustainable urban transport. Eligible countries in the EBRD region include Bulgaria, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia in addition to Croatia and FYR Macedonia.
The Facility can cover up to 90 per cent of the costs of technical cooperation necessary to prepare and implement sustainable energy investments in the municipal sector, including feasibility and market studies, identification and preparation of eligible projects (due diligence), business planning, energy audits, implementation and verification of projects, establishment of a project implementation units, preparation of tender documentation, launching of the tender process and training of staff.
EBRD-ELENA is funded by the European Union through the Intelligent Energy - Europe II (IEE II) programme. The Facility contributes to the EU “20-20-20” initiative, the objectives of which are to cut greenhouse gas emissions by 20 per cent, improve energy efficiency by the same percentage and increase use of renewables in the EU energy mix, also to 20 per cent.