A record level of business in Belarus, a major infrastructure project in Ukraine, the modernisation of the largest electricity supplier in Georgia, a Green Economy Financing Facility launched in Armenia and support for Moldova’s financial sector – these are just a few examples of the EBRD’s successful work in eastern Europe and the Caucasus in 2018.
Last year, we invested almost €1.6 billion in more than 100 projects in the six countries in the region.
And there is more to come. #EBRDmore.
The EBRD is stepping up its investments and engagement in response to strong market demand for what the Bank can offer.
This includes bespoke financial products ranging from long-term equity investment to specific microfinance solutions as well as policy dialogue to create the strong institutions needed for successful long-term growth.
Only economies that benefit their people are successful economies. The EBRD is making a vital contribution to this effort, and here’s how.
A new EBRD video shows the new replacement tunnel that has been completed at Beskyd.
- The new Beskyd tunnel was commissioned in the Carpathian Mountains in Ukraine. It connects the Ukrainian rail network through a double-track link with the pan-European transport network Corridor V and will take on 60 per cent of rail traffic between Ukraine and the EU. The construction was financed by the EBRD with a US$ 40 million loan. The EIB provided parallel financing. The EBRD also provided a US$ 150 million senior loan to Ukraine Railways for the acquisition of 6,500 general purpose open freight gondola-type wagons.
- The first transaction under the Minsk Green City Action Plan was a sovereign EBRD loan of €84 million to Minsk Vodokanal. It will help finance the rehabilitation and optimisation of Vodokanal’s wastewater treatment plant and the construction of a cost-efficient, modern sludge-management facility to ensure the company’s compliance with national and EU standards.
- The Bank supported the modernisation and rehabilitation of the Enguri hydropower plant, the largest electricity supplier in Georgia, with a €28 million loan, backed by EIB finance. The loan will finance investments to ensure the continued safe operation of the plant, which supplies 40 per cent of Georgia’s electricity. It will help increase overall electricity production, enable climate resilience upgrades and reduce CO2 emissions.
- The EBRD and two private equity firms helped strengthen Moldova’s financial sector by acquiring a 41.09 per cent stake in B.C. Moldova Agroindbank S.A., the country’s largest commercial bank. The €23 million project will bring the highest standards of corporate governance, new technologies and effective structures to strengthen the performance of Moldova’s leading bank.
- The EBRD has provided €10 million in new financing for Moldova-Agroindbank (MAIB) and Victoriabank, following steps by Moldova’s key lenders to achieve transparency of ownership and to restore corporate governance. The loans worth €5 million each are provided through the EU4Business-EBRD credit line and are accompanied by EU grant-based funding. They aim to increase access to finance for local businesses as firms invest in improvements that will help strengthen their potential to succeed on the EU market.
- The EBRD Green Economy Financing Facility (GEFF) was launched in Armenia with support from the Green Climate Fund and Austria. A US$ 12.5 million loan to Ameriabank will support green technology investments of SMEs and larger corporates.
The EBRD is and will remain a relevant partner: financially strong, agile in our operations and flexible in our approach.
The EBRD remains available with its own finance and expertise to support the use of EU funds in a cost-effective and efficient manner. Our priority is to encourage and enable the dynamics of the private sector.
The EBRD has the means, the expertise and the commitment to move forward in all our existing regions. And our donors play a major role in our delivery, both with advice and with finance.
We are as diverse as our countries and as committed as its people: we are doing more to achieve more. #EBRDMore for more growth, more jobs, more prosperity.
Matteo Patrone is EBRD Managing Director for Eastern Europe and the Caucasus and as such oversees the Bank’s work in six countries.