Evaluation of EBRD’s investments in the West Bank & Gaza

Background

The Bank’s engagement in the West Bank & Gaza (WB&G) has to be assessed five years following its approval by the EBRD Board of Governors. This evaluation was performed in a short timeframe to deliver findings and recommendations on time for Management’s next Net Income Allocation request and to inform the strategic engagement update in the WB&G that Management was undertaking.

EBRD has engaged in activities in the WB&G under three strategic themes aimed at: (1) enhancing private sector led growth through direct support for competitiveness and innovation, (2) strengthening the capacity of financial intermediaries with a particular focus on increasing access to finance for MSMEs and (3) fostering energy efficiency and sustainability. 

The questions posed by the evaluation team on EBRD’s investments activities in the WB&G are based on four evaluation criteria and grouped under four headings:

1. Relevance: To what extent have EBRD’s activities in the WB&G been responsive to the needs of the private sector in the region, donors and the WB&G authorities?

2. Internal and External coherence: How coherent have the Bank’s activities in the WB&G been internally and externally?

3. Effectiveness: What are the early results achieved by the Bank in the region; and to what extent Bank’s projects have achieved, or are positioned to achieve, their intended objectives?

4. Efficiency: Have EBRD’s resourcing and management supported efficiently the achievement of its intended results?

Main findings

EBRD’s activities in the WB&G have been responsive to the need of the private sector by focusing on: improving the financial sector, supporting the health sector, youth empowerment and inclusion and contributing to the investment climate.

Activities in the WB&G are generally: consistent with the Small Business Initiative’s priorities, aligned with and supportive of the strategies for Financial Institutions, and consistent with and supportive of the strategic direction of EBRD’s Energy review.

The EU-Palestine Investment Platform is underexploited and has not led to major policy interventions or investment for EBRD.

EBRD has not made substantive progress on making financing available to corporates.The effectiveness of EBRD’s operation and activities in the WB&G would benefit from increasing participation in policy dialogue and TA for improving the business environment for startups.

The results framework in the 2017 WBG Engagement strategy lacks specification of outputs, outcomes and impacts.

EBRD dedicated team has been efficient: despite the limited dedicated human resources and the absence of staff on the ground, the Bank has delivered €60m of the €85m Net Income Allocation thanks to the strong delivery of FI projects in 2020 and 2021.