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Regional Knowledge Center

The European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) was established in 1991 and provides a range of financial products and services tailored to each client. It operates in more than 36 economies across three continents.

Background

The European Bank for Reconstruction and Development (EBRD) is a multilateral developmental investment bank and international financial institution founded in April 1991.

The EBRD is owned by 65 countries and two EU institutions. Despite its public-sector shareholders, it invests mainly in private enterprises, together with commercial partners.

One of the key Funding channels of EBRD includes the above-mentioned Investment Facility for Central Asia (IFCA) which has central role in supporting EBRD activities in Central Asia. It covers Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan, and is aimed at promoting investments in the energy, small and medium-sized enterprise (SME) and social sectors. Since 2010, the IFCA and EBRD have had a very strong partnership and in 2016, six agreements worth almost 55 M€ were signed. These grants are used to support EBRD’s investments across the region, mostly in the municipal infrastructure, SME and energy efficiency sectors.

Geographical scope

Initially focused on the countries of the former Eastern Bloc, EBRD expanded to support development in more than 30 countries from Central Europe to Central Asia. Besides Europe, member countries of the EBRD are from five continents (North America, Africa, Asia and Australia), with the biggest shareholder being the United States.

In 2015, the EBRD invested a record amount in the Central Asian region. The total investment in 2015 rose by 75% reaching 1,402 M€. Kazakhstan reported the largest total volumes of investment reaching 709 M€ in 2015.

EBRD members

EBRDmembers

Implementation and priority fields

The goal of EBRD is to maximise impact of projects implemented with its financial support. In order to do so the following factors are taken into consideration during the project proposal evaluation stage as well as later at project appraisal stages:

  • Innovation,
  • Access to finance,
  • Regional Development,
  • Resource efficiency and environment,
  • Inclusion.

EBRD supports projects in a large number of different sectors.

EBRD focus sectors

Agribusiness The EBRD is the single biggest investor in this sector in much of the region
Equity Funds The EBRD is the region’s single largest investor in private equity funds.
Financial Institutions Financial institutions channel funds, promote savings, ease trade and establish acceptable standards
Information and Communication Technologies EBRD’s team supports networks, platforms and other service providers in the ICT sector.
Legal Reform EBRD’s programme creates investor-friendly, transparent legal environments
Manufacturing and Services EBRD’s work in this sector covers heavy & light industry and processing & production of goods.
Municipal infrastructure The EBRD seeks to improve municipal services in our countries of operations.
Natural Resources The EBRD finances a range of natural resources industries.
Nuclear Safety The EBRD assists in the safe treatment of waste and power plants.
Power and Energy Focus areas include transmission and distribution, safety upgrades and investing in renewables.
Property and Tourism The EBRD is a key player in the property markets of eastern Europe.
Transport The EBRD aims to build efficient, reliable and secure transport systems.

Projects may be considered for EBRD assistance if they:

  • are located in an economy where the EBRD works
  • have good prospects of being profitable
  • have significant equity contributions in cash or in kind from the project sponsor
  • would benefit the local economy
  • satisfy the EBRD's environmental standards as well as those of the host country

 

Environmental and social sustainability is the heart of EBRD activities, also through green economy products which amount to one third of EBRD’s investment.

EBRD’s approach to sustainability involves “Green Economy Transition” and additionally

  • incorporating environmental and social requirements into the appraisal and implementation of all Bank-funded projects based on European Union standards and international good practice
  • providing finance and technical assistance specifically aimed at addressing environmental and social issues
  • promoting economic inclusion and access to community services such as water and public transport
  • supporting projects that promote gender equality
  • encouraging public participation through pre-investment consultation and information disclosure, and maintaining regular strategic dialogue with civil society organisations and other stakeholders.
Funding type

The EBRD tailors solutions to client and project needs and to the specific situation of the country, region and sector. It assigns a dedicated team of specialists with expertise in project finance, the region and sector, law and environment.

EBRD financing for private sector projects generally ranges from M€ 5 to M€ 200, in the form of loans or equity. The average EBRD investment is M€ 20. Smaller projects may be financed through financial intermediaries or through special programmes for smaller direct investments in the less advanced countries. The key three types of direct financial support provided by EBRD are:

  • Loans
  • Equity Investments
  • Guarantees to promote trade
Project cycle

The total lifecycle of an EBRD project, from initiation to repayment, can range from one year for working capital or trade financing projects to 15 years for long-term sovereign infrastructure projects.

EBRD Project cycle

EBRDprojectcycle

Contact details

EBRD Kazakhstan contacts: http://www.ebrd.com/kazakhstan.html

Almaty Resident Office, 41 Kazybek Bi street, Park Palace Business Centre, 3-rd Entrance, 3-rd Floor, 050010, Almaty. Tel: +7 727 332 00 00, fax: +7 727 258 14 22

Nur-Sultan Resident Office, “SAAD” BC, 10th Floor, 2 Dostyk street, Yesil district, Astana, Republic of Kazakhstan. Tel. +7 7172 554246, fax: +7 7172 554245

EBRD Kyrgyz Republic contacts: http://www.ebrd.com/kyrgyz-republic.html

Bishkek Resident Office, Business Centre Orion, 21 Erkindik Boulevard, 4th Floor, 720040 Bishkek
Kyrgyz Republic. Tel: +996 312 624 016, 624 017

Karakol office, 122 Gebze Str, 2nd floor, 722200 Karakol, Kyrgyz Republic. Tel: +996 3922 52050, fax: +996 3922 52060

Osh office, Osh-Nuru Hotel, 1 Bayalinov Street, 2nd floor, Office 217, 723500 Osh, Kyrgyz Republic Tel: +996 3222 21139, fax: +996 3222 57947

EBRD Tajikistan contacts: http://www.ebrd.com/tajikistan.html

Dushanbe Resident Office, 34 Rudaki avenue, TCELL Plaza, 12 floor, 734025 Dushanbe, Tajikistan  Tel: +992 37 2 210763; 2213 543; 2216709; 2216718; 2219832; 2510178; 2512424

EBRD Turkmenistan contacts: http://www.ebrd.com/turkmenistan.html

Ashgabat Resident Office, “Berkarar” Business Center, 13th floor, Suite M3, 82, 1972 street (Ataturk), 744000 Ashgabat, Turkmenistan. Tel: +993 12 46 88 20, fax: +993 12 46 88 26

EBRD Uzbekistan contacts: http://www.ebrd.com/uzbekistan.html

1, Qoratosh Street, Tashkent, Uzbekistan, 100027, Tel: +99871 140 44 00

This project is funded by the European Union

And implemented by a consortium led by