Technical Cooperation One Exchange Square London EC2A 2JN United Kingdom Helpingbuildabrighterfuture
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2002-03 EBRD Report to the Donor and Official Co-financing Community European Bank for Reconstruction and Development Technical cooperation One Exchange Square London EC2A 2JN United Kingdom Helpingbuildabrighterfuture Switchboard/central contact Tel: +44 20 7338 6000 EBRD Report to the Donor and Official Co-financing Community 2002-03 Fax: +44 20 7338 6100 Telex: 8812161 EBRD L G SWIFT: EBRDGB2L Web site www.ebrd.com Requests for publications Tel: +44 20 7338 7553 Fax: +44 20 7338 6102 E-mail: [email protected] General enquiries about the EBRD Tel: +44 20 7338 6372 E-mail: [email protected] New project proposals Tel: +44 20 7338 7168 Fax: +44 20 7338 7380 E-mail: [email protected] Project enquiries (existing projects) Tel: +44 20 7338 6282 Fax: +44 20 7338 6102 E-mail: [email protected] 1 Technical cooperation For further information on the EBRD's donor-assisted Photo: The Donors Workshop held programmes for 1991–2002, visit: www.ebrd.com/pubs at the EBRD, December 2002. where the 2001-02 TC Report can be found. Page Chapter 02 Message from the President 04 Where the EBRD operates 07 01 Highlights in 2002 11 02 Donor funds programmes in 2002 29 03 Official investment co-financing in 2002 33 04 US SME Special Fund, Russia Small Business Fund and microfinance 39 05 EU-EBRD SME Finance Facility 45 06 Infrastructure cooperation 53 07 Renewable energy: Strategic assessment 55 08 Project Preparation Committee (PPC) 59 09 The Global Environment Facility (GEF) and the EBRD 61 10 Low-income countries 67 11 Mongolia 71 12 Legal Transition Programme 77 13 TurnAround Management Group (TMG) 81 14 Central European Initiative (CEI) 85 15 Donor visibility initiatives 89 16 Linkages to EBRD investments 93 17 Lessons from TC assignments 95 Abbreviations 96 Contributors 1 Technical cooperation For further information on the EBRD's donor-assisted Photo: The Donors Workshop held programmes for 1991–2002, visit: www.ebrd.com/pubs at the EBRD, December 2002. where the 2001-02 TC Report can be found. Page Chapter 02 Message from the President 04 Where the EBRD operates 07 01 Highlights in 2002 11 02 Donor funds programmes in 2002 29 03 Official investment co-financing in 2002 33 04 US SME Special Fund, Russia Small Business Fund and microfinance 39 05 EU-EBRD SME Finance Facility 45 06 Infrastructure cooperation 53 07 Renewable energy: Strategic assessment 55 08 Project Preparation Committee (PPC) 59 09 The Global Environment Facility (GEF) and the EBRD 61 10 Low-income countries 67 11 Mongolia 71 12 Legal Transition Programme 77 13 TurnAround Management Group (TMG) 81 14 Central European Initiative (CEI) 85 15 Donor visibility initiatives 89 16 Linkages to EBRD investments 93 17 Lessons from TC assignments 95 Abbreviations 96 Contributors Message from the President 2Technical cooperation 3Technical cooperation The EBRD’s partnerships with donors and TurnAround Management (TAM) and Business accountability. Internal fiduciary controls, Message from the President co-financiers are bringing real change to our Advisory Services (BAS) programmes have under the governance of the Technical region. The partnerships now cover all priority helped local entrepreneurs survive and Cooperation Review Committee, are working. areas: social, environmental and economic. compete in new market economies. Local The appointment of a dedicated TC Portfolio Through them, the transition impact of our banks have adopted new practices and small Manager has enabled us to focus on improving work has been accelerated. They have also business borrowers are benefiting from the quality of donor reports. Reporting helped to ensure that improvements in living them. Microfinance lending is accelerating. standards are also being improved through standards are sustainable. Institution building has extended, for example, analytical studies of TC-investment linkages to demonstrating to banks best practice in and lessons of experience. Details are It is vital that our donor relationships receive approaches to anti money-laundering. The presented in this report. the visibility they deserve. I have seen much Slovak Republic has been lauded for its new greater attention to visibility over the past law on secured credit, while the Insurance The way we work together is changing. We year, but we have to do more. The decision Supervisor in Slovenia is now acquiring an are seeing more multi-donor initiatives, which makers in the capitals need to see the results EU-compliant system of monitoring. The EBRD is something we strongly encourage. Donor of working with the EBRD. The communities has been able to provide this help only with agencies are working with our project teams who are the beneficiaries need to know who the support of donors. earlier in the cycle, with a view to providing provided the support. both technical cooperation and investment The impact of municipal and environmental co-financing. At country and sector levels One of our biggest challenges is to do One of our biggest challenges is to do more projects on peoples’ lives is now widely there is more evidence of a strategic in the poorest countries of our region. Seven recognised. The inauguration of the Northern approach to engagement. We welcome these more in the poorest countries of the member countries are in the low-income Dimension Environmental Partnership (NDEP) developments. They can only improve the category. A further eight countries are in the marked a major breakthrough for municipal strength and efficiency of our partnerships region. Grant funding will play a vital role. next income tier. The EBRD is fully committed work in North West Russia. We are seeing the and enable us to make the best use of the to bringing finance and assistance to projects beginnings of new municipal financing initiatives resources available. in these countries. Grant funding will play a in the Balkans region. An important challenge vital role, both for technical assistance and will be to find ways to meet the growing co-financing. A review of our work in one environmental and municipal needs of the group of poor countries, the CIS-7, is included Caucasus and Central Asia. The partnerships in this report. with the Project Preparation Committee and the Global Environment Facility are very The results of our efforts to support small and important to the EBRD’s work in these fields. medium-sized enterprises (SMEs) and build sound institutions are encouraging. Transfer To make these partnerships work the Bank President, European Bank for of skills and business advice through the is committed to the highest standards of Reconstruction and Development Message from the President 2Technical cooperation 3Technical cooperation The EBRD’s partnerships with donors and TurnAround Management (TAM) and Business accountability. Internal fiduciary controls, Message from the President co-financiers are bringing real change to our Advisory Services (BAS) programmes have under the governance of the Technical region. The partnerships now cover all priority helped local entrepreneurs survive and Cooperation Review Committee, are working. areas: social, environmental and economic. compete in new market economies. Local The appointment of a dedicated TC Portfolio Through them, the transition impact of our banks have adopted new practices and small Manager has enabled us to focus on improving work has been accelerated. They have also business borrowers are benefiting from the quality of donor reports. Reporting helped to ensure that improvements in living them. Microfinance lending is accelerating. standards are also being improved through standards are sustainable. Institution building has extended, for example, analytical studies of TC-investment linkages to demonstrating to banks best practice in and lessons of experience. Details are It is vital that our donor relationships receive approaches to anti money-laundering. The presented in this report. the visibility they deserve. I have seen much Slovak Republic has been lauded for its new greater attention to visibility over the past law on secured credit, while the Insurance The way we work together is changing. We year, but we have to do more. The decision Supervisor in Slovenia is now acquiring an are seeing more multi-donor initiatives, which makers in the capitals need to see the results EU-compliant system of monitoring. The EBRD is something we strongly encourage. Donor of working with the EBRD. The communities has been able to provide this help only with agencies are working with our project teams who are the beneficiaries need to know who the support of donors. earlier in the cycle, with a view to providing provided the support. both technical cooperation and investment The impact of municipal and environmental co-financing. At country and sector levels One of our biggest challenges is to do One of our biggest challenges is to do more projects on peoples’ lives is now widely there is more evidence of a strategic in the poorest countries of our region. Seven recognised. The inauguration of the Northern approach to engagement. We welcome these more in the poorest countries of the member countries are in the low-income Dimension Environmental Partnership (NDEP) developments. They can only improve the category. A further eight countries are in the marked a major breakthrough for municipal strength and efficiency of our partnerships region. Grant funding will play a vital role. next income tier. The EBRD is fully committed work in North West Russia. We are seeing the and enable us to make the best use of the to bringing finance and assistance to projects beginnings of new municipal financing initiatives resources available. in these countries. Grant funding will play a in the Balkans region. An important challenge vital role, both for technical assistance and will be to find ways to meet the growing co-financing. A review of our work in one environmental and municipal needs of the group of poor countries, the CIS-7, is included Caucasus and Central Asia.