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European Bank for Reconstruction and Development

The European Bank for Reconstruction and Development (EBRD) is the largest single investor in the region that extends from central Europe to central Asia. It is owned by 65 countries and two intergovernmental institutions and, despite its public-sector shareholders, it invests mainly in private enterprises, usually in cooperation with commercial partners. Visit our EBRD Fact Sheet.

The EBRD provides project financing for banks, industries and businesses, and funds both new ventures and investments in existing firms. It also works with publicly owned companies to support privatization, the restructuring of state-owned businesses and improvement of municipal services. In addition, 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. Canada has a voting share of 3.4 percent in the EBRD.

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Country Strategies

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.

Project Cycle

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.

Project and Procurement Information

Unlike other IFIs, the EBRD focuses on private sector investment rather than lending to foreign governments. However, EBRD financing still presents many procurement opportunities in the region for Canadian firms. Information needed to pursue EBRD-funded business on specific projects, is available from the Bank's procurement overview on their website. Potential suppliers can consult the following pages:

Suppliers of Goods, Works and Non-Consulting Services

Approximately 20 percent of EBRD investment is in the public sector; of which much of this 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:

The EBRD's role is to ensure that the borrower's implementation of the procurement process accords with EBRD policies and procedures.

The recently updated EBRD procurement rules and policies, 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:

There are several different selection methods for both consulting firms and individual consultants. However, contracts for consultancy 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:

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 Enterprise Growth Programme (EGP) and Business Advisory Service (BAS)

The Small Business Support (SBS) programmes supports economic reform by helping micro, 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. The EGP/BAS Programme is managed on a non-profit basis and uses multiple donor funds to support the projects; for the EGP Programme, no funding is given to the enterprises themselves. The main difference between the EGP and BAS programmes is that while EGP focuses on enterprises of 200-1,500 staff with a specific focus on restructuring and improving management skills and culture, the BAS focuses on supporting smaller enterprises to carry out short-term projects that have narrowly-defined objectives through the use of local consultants as well as, grant programs.

Consulting Opportunities as Senior Industrial Advisors

EGP engages former senior operational directors of large companies, from all sectors, to work as senior industrial advisors. To qualify, candidates must have:

Other Ways of Working with EBRD

Further to project and procurement opportunities, the EBRD also provides innovative financing solutions. If you are looking for assistance with a project in one of the EBRD's countries of operation, consult the Guide to EBRD Financing (PDF*, 515 Kb) or, learn more about EBRD financial products and instruments related to:

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