“Integrated”: the EBRD’s transition concept

As a transition quality, integration refers not only to the physical dimension (such as larger cross-border projects in major transport, energy and IT networks), but also improvements to internal markets through national-level improvements between ports, airports, electricity grids, cities and rural areas.

Integration also includes efforts to achieve higher standards, greater harmonisation with international norms, stronger institutions, improved regulatory frameworks and greater adherence to the rule of law.

In fostering integration, the EBRD is aligned with major international policy efforts. Achieving integration through connectivity is high on the international agenda, having been highlighted by the G20, international financial institutions and the Organisation for Economic Co-operation and Development (OECD) in the creation of the Global Infrastructure Connectivity Alliance. China’s Belt and Road Initiative, linking China to the global economy, is another example of how integration is critical for the wider world.

These initiatives are occurring now with good reason: studies by the OECD and the G20’s Global Infrastructure Hub have established the positive relationship between connectivity and economic growth, and show that there has been underinvestment in transport connectivity in many developing countries.

The EBRD is not a newcomer to fostering integration. With more than 100 project investments, its active participation in the European Union’s Trans-European Transport Network (TEN-T) and Trans-European Networks for Energy (TEN-E) initiatives offers real examples of how important integration is in the wider European context.

In Central Asia, road investments in Kazakhstan and Tajikistan are helping to improve critical trade routes, and are being backed by improvements to institutional frameworks, funding sources for maintenance, modern asset management approaches, higher standards and road safety.

In Türkiye and the Western Balkans, port and rail investments are improving trade corridors and boosting economic competitiveness for the region, helping it to serve as a link between Asia, the southern and eastern Mediterranean region and the rest of Europe.

In Bosnia and Herzegovina, financing of regional road corridor Vc 2 was underpinned by an increase in the fuel levy to ensure the investment’s sustainability. In the Caucasus, our investments in electricity transmission network projects are solidifying cross-border energy markets, lowering costs to business and consumers alike.

In Ukraine, the EBRD has helped to deepen the integration of the country's gas transmission network, while our support for the Southern Gas Corridor linking western Europe with the Caspian region and for LNG investments has helped promote trade, growth and competitiveness.

Finally, the EBRD fosters “soft integration” to harmonise electricity transmission capacity in the Western Balkans through support for the regional Coordinated Auction Office.