EBRD Public Sector Operations

Mobilising Private Sector Participation in Infrastructure

Background

EBRD Public Sector Operations evaluation provides a strategic review of EBRD’s Public Sector Operations (PSO) during the period of 20102020. EBRD’s Sustainable Infrastructure Group (SIG) finances energy, transport, and municipal infrastructure in countries of operation (COOs) using a combination of debt, equity and technical cooperation grants. 

The evaluation focuses on EBRD’s PSO contribution to structural and institutional change in its COOs that facilitated transition Impact. The evaluation is based on a Theory of Change (TOC), which identifies demand for public sector finance and assesses EBRD’s supply response. Objectives and results frameworks are drawn from EBRD strategies and financing documents. The evaluation looks at inputs (markets, products, policies, staff and finance).

Results are assessed looking at benefits (relevance of objectives, and effectiveness of outputs, outcomes and impacts), and costs to EBRD (efficiency), relative to targets in results frameworks. Due to constraints arising from the Covid Crisis, the study draws on desk research and remote interviews.

Main findings 

EvD’s evaluation identified the following set of findings:

There is high potential to strengthen EBRD’s offering by developing a business model that focusses on creating value for money (VFM) and infrastructure governance for COOs, as emphasized by the G20’s Quality Infrastructure Principles (QII).

PSO risks of crowding out are real, but with good opportunities for mobilisation and meeting nonmarket goals in areas, such as climate change and inclusiveness.

Focus of institutional reform needs to include more public sector capacity development in addition to laws and regulations.

EBRD’s planning and results frameworks in infrastructure sectors need solid improvements to avoid risks of misallocation of resources, by collecting data on results rather than inputs and by creating opportunities for learning.