Foreign Affairs and International Trade Canada
international.gc.ca
Common menu bar links
European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is the largest single investor in a region that extends from central Europe to central Asia. It is owned by 61 countries and two intergovernmental institutions and, despite its public-sector shareholders, it invests mainly in private enterprises, usually in cooperation with commercial partners.
The EBRD provides project financing for banks, industries and businesses, and funds both new ventures and investments in existing firms. It works with publicly owned companies to support privatization, the restructuring of state-owned businesses and improvement of municipal services. The Bank also uses its close relationship with governments in the region to promote policies that can strengthen the business environment.
The mandate of the EBRD stipulates that it must work only in countries that are committed to democratic principles. Respect for the environment is part of the strong corporate governance attached to all EBRD investments.
The Bank invests in numerous sectors, including the following:
- agribusiness
- energy
- micro, small and medium-sized enterprises
- municipal & environmental infrastructure
- natural resources
- property
- shipping
- telecoms, informatics and media
- transport
Canada has a voting share of 3.4 percent in the EBRD.
- Country Strategies
- Project Cycle
- Project and Procurement Information
- Technical Cooperation Funds Programme
- The TurnAround Management Programme (TAM)
Each EBRD Country Strategy document contains the priorities for a particular country for the coming three years. These documents can be accessed through the individual country pages of the EBRD website.
The EBRD project cycle consists of the following stages:
Concept Review: The EBRD's Operations Committee (OpsCom) approves the project concept and overall structure, including the proposed financing structure and its supporting obligations. At this stage, the EBRD and the client sign a mandate letter, which outlines the project plan, development expenses and responsibilities. For private sector investments, the Concept Review is preceded by the submission of a business plan by the investing company.
Final Review: Once the basic business deal (including a signed term sheet) has been negotiated and all investigations substantially completed, the project receives a Final Review by OpsCom.
Board Review: The EBRD President and the operations team present the project to the Board of Directors for approval.
Signing: The EBRD and the client sign the deal and it becomes legally binding.
Disbursements: Once repayment conditions are agreed and the Bank's conditions met, the funds are transferred from the Bank's account to the client's account.
Repayments: The client repays the loan amount to the EBRD under an agreed schedule.
Sale of equity: The Bank sells its equity investments on a non-recourse basis.
Final maturity: The final loan amount is due for repayment to the Bank.
Completion: The loan has been fully repaid and/or the EBRD's equity investment divested.
Unlike other IFIs, the EBRD focuses on private sector investment rather than lending to foreign governments. Potential suppliers can learn about the Bank's projects through a variety of resources, including the following pages:
- Project summary documents are disclosed for each project prior to Board consideration. They include project descriptions, financial and client information, environmental issues, contact details and more.
- Approved and signed project lists publicize recent Board Approvals, and provide names and figures for all signed projects. They do not include project descriptions or other details.
- Case studies highlight features and analysis of selected projects.
- Environmental Impact Assessments (EIAs) of environmentally sensitive projects are available for public review.
- Evaluations disseminate lessons learned during project preparation, implementation and monitoring.
Most of the information needed to pursue EBRD-funded business on specific projects is available from the Bank's website. Suppliers can consult the following:
Suppliers of Goods, Works and Non-Consulting Services
Approximately 20 percent of EBRD investment is in the public sector; of this, much is dedicated to municipal projects.
The Bank permits firms and individuals from all countries to offer goods, works and services for Bank-financed projects, regardless of whether the country is a member of the Bank. The borrower is the primary source of information, and is responsible for all aspects of procurement, including:
- notification of opportunities for tendering;
- prequalification where appropriate;
- invitations to tender and issuance of tender documents;
- receipt of tenders, evaluation of tenders and contract award; and
- contract administration.
The EBRD's role is to ensure that the borrower's implementation of the procurement process accords with EBRD policies and procedures.
EBRD procurement rules and policies are currently being updated, and will apply to goods, works and services contracts financed in whole or in part by the Bank in public-sector operations. Contracts are to be procured through open tendering if their value is estimated to equal or exceed €250,000 for goods and services, and €7.5 million for works, supply and installation contracts.
Consultants and Consulting Services
When the EBRD invests in a private-sector project, opportunities exist directly with the investee company or project as well as directly with the bank, which is typically funded through technical cooperation funds (see below). Consulting opportunities financed by the company or project will not be published on EBRD's site, and rather consultants are advised to develop relationships with the investee. The selection process for consultants normally includes the following stages:
- defining the scope, objectives and estimated budget of the proposed assignment, and determining the selection procedure to be followed;
- identifying consultants that are qualified to perform the required services, and preparing a shortlist of qualified firms;
- inviting proposals from the shortlisted firms;
- evaluating and comparing capabilities and proposals, and selecting the preferred consultant;
- negotiating a contract with the selected consultant; and
- administering the contract.
There are several different selection methods for both consulting firms and individual consultants. However, contracts for consulting services are awarded to the firm or individual with the best evaluated proposal, so more emphasis is placed on technical competence, capacity and qualifications than on price.
New thresholds for consulting procurement are being developed as follows:
- For contracts of less than €75,000, a qualified consultant may be selected directly, without any requirement to prepare a shortlist, and a contract will be negotiated with the selected consultant.
- For contracts estimated at more than €75,000 for the services of an individual consultant, selection will be made using a shortlist of qualified candidates. The reasons for the choice should be recorded.
- For contracts for Bank operations, if they are estimated to cost between €75,000 and €300,000 and will use the services of a consulting firm, a shortlist of qualified firms will be prepared. The selection is based on an evaluation of the short-listed firms' proven experience and current expertise related to the assignment, but there is no requirement that the firms submit specific proposals for carrying out the assignment.
- Major contracts with consulting firms, when estimated to cost €300,000 or more, will follow a competitive procedure based on proposals invited from a shortlist of qualified firms.
Consultants wishing to work with the EBRD should register on the eSelection database, which is a single point of entry into the EBRD's consultant procurement system. By registering on eSelection, the bank will be able to access information about the company and will provide Requests for Expressions of Interest and procurement notices targeted to the company's business sector(s). The EBRD website provides detailed information about eSelection.
You can register online to receive email alerts and updates about opportunities. Other key sections of the EBRD website are Invitations for expressions of interest and the Selection process guidelines.
The Technical Cooperation Funds Programme (TCFP) provides funding to improve the preparation and implementation of the EBRD's investment projects and to provide advisory services to private and public sector clients. It is funded by governments and international institutions and is managed by the EBRD. Each year, the TCFP provides about €80 million to finance the activities of a wide range of consultants and other experts. In addition, the Shareholder Special Fund was created in 2008, almost doubling the funds available for technical cooperation projects, primarily for the infrastructure and energy-efficiency sectors.
The TCFP enables the EBRD to:
- make thorough preparations for its investments and undertake its investments more effectively;
- pursue investment opportunities in higher-risk environments by reducing credit risks;
- increase the impact of EBRD projects on the transition process by supporting structural and institutional changes; and
- assist legal and regulatory reform, institution-building, company management and training.
The TCFP provides opportunities throughout the EBRD project cycle. Most are for advisory services (48 percent), followed by project implementation (37 percent), project preparation (14 percent) and sector studies (1 percent).
Types of Technical Cooperation
The technical assistance provided through the TCFP focuses on specific projects and clients. For example, it has funded:
- consultancy services for feasibility studies as part of project preparation;
- procurement assistance during project implementation;
- development of management skills under the Bank's TurnAround Management Programme; and
- legal advice to improve legislation and corporate governance and to promote regulatory development.
There are six multi-donor technical cooperation funds that operate in particular program areas or regions. They are:
- the Early Transition Countries Fund, whose donors are Canada, Finland, Ireland, Japan, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China and the U.K;
- the Russia Small Business Fund, whose donors are the G7 countries, and Switzerland;
- the Northern Dimension Environmental Partnership, whose donors are Belgium, Canada, Denmark, the EU, Finland, France, Germany, the Netherlands, Norway, Russia, Sweden and the U.K;
- the Mongolian Cooperation Fund, whose donors are Japan, Luxembourg, the Netherlands and Taipei China;
- the Regional Venture Fund (Nordics), whose donors are Finland, Norway and Sweden;
- The Balkan Region Special Fund, whose donors are Canada, Denmark and Taipei China: and
- the Western Balkans Fund, whose donors are Canada, the Czech Republic, Finland, Ireland, Luxembourg, the Netherlands, Norway, Poland, the Slovak Republic, Slovenia, Spain, Sweden and the U.K.
TAM supports economic reform by helping both small and medium-to-large enterprises develop new business skills at the senior management level in order to compete in market economies.
To achieve this, the program introduces industry-specific management expertise to businesses by providing the advisory services of experienced former CEOs and directors from economically developed countries. These advisors transfer management and technical know-how to the company, conveying the principles of responsible corporate governance and sharing commercial experience directly with company CEOs and senior managers. TAM is managed on a non-profit basis and uses multiple donor funds to support the projects; no funding is given to the enterprises themselves.
Consulting Opportunities as Senior Industrial Advisors
TAM engages former senior operational directors of large companies, from all sectors, to work as senior industrial advisors. To qualify, candidates must have:
- a high level of commercial experience and in-depth knowledge of one or more industry sectors that enables them to advise the beneficiary company on restructuring;
- at least 15 years of hands-on experience as a senior operational director of a company in an industry sector related to that of the beneficiary company;
- excellent interpersonal skills and the authority to influence the beneficiary company's top management, with multinational and multicultural experience being a great advantage;
- ability to work in both written and spoken English; and
- willingness to travel regularly to the countries of operation.
