One of the reasons for the global shortage of investment in sustainable infrastructure is the weak and insufficient pipeline of bankable projects. This is often due to limited capacity to structure, procure and deliver these complex projects.
While the reform agenda in many of EBRD’s countries of operations needs to be re-energised in general, this is particularly true of the infrastructure sector. Here, much needed reforms and regulatory support mechanisms are often delayed or remain incomplete.
EBRD helps both the public and private sectors accelerate infrastructure investment across the Bank’s region, with the main objective being to offer an improved support and delivery mechanism for project preparation aimed at improving efficiency, quality and replicability of infrastructure projects.
The EBRD’s Infrastructure Project Preparation Facility (IPPF)
The EBRD’s IPPF offers an improved support mechanism focused on bankable project preparation, coupled with a coordinated approach to infrastructure policy dialogue.
Utilising pre-selected Framework Consultants, the IPPF provides governments with high-quality, client-oriented project preparation, policy support, and institutional strengthening, thus reaffirming the EBRD’s position in the market as a leading provider of comprehensive, sustainable and inclusive infrastructure solutions.
Project scoping, due diligence, and supervision
The EBRD supports clients and other beneficiaries throughout the project lifecycle, by mobilising the necessary expertise to:
plan, analyse and appraise options;
determine the project scope;
confirm that the technical solutions are fit for purpose;
assess the financial and economic viability;
develop the implementation and procurement strategy;
secure the necessary support during the tender process and for supervising the works;
support and monitor upon putting the infrastructure in operation.
Promoting tried and tested reforms, regulatory improvements, and best practices
In parallel, the EBRD actively promotes infrastructure policy dialogue to deliver the policy changes necessary to move each sector closer to the market economy and support projects that would not be feasible in the current environment.
The EBRD specifically aims to deepen policy knowledge and the dissemination of best international practice, allowing beneficiaries to finance projects based on advanced market-oriented structures, such as:
Public-Private Partnership (PPP) and Private Sector Participation (PSP) for the delivery of infrastructure assets and services. This is an area where the EBRD has a leading role in delivering policy advice to stakeholders. The initiative includes all infrastructure sectors and facilities management PPPs as well as the various means of introducing PSP into the development and delivery of infrastructure.
Commercialisation of infrastructure services and achieving financial sustainability. This focuses on improvements and commercialisation of services, predominantly in the presence of state ownership. Depending on the application, this could include:
Public Service Contracts (PSC, used typically in the municipal sector)
Service Level Agreements (SLA, used for national services such as rail and motorway operations)
Market-oriented use of EU funds. This applies to both EU member states and accession countries, and seeks to boost private sector participation in the delivery of infrastructure services financed with EU funds.
Capacity building and institutional strengthening
The EBRD also provides support in the form of capacity building and institutional strengthening.
Only when the necessary human resources and capacity are secured, and the appropriate regulatory frameworks and institutional reforms realised, will clients and beneficiary be able to maximise the benefits of an investment.
This strategic vision is supported by a team of in-house experts who maintain a sharp focus on clients and transition impact.