The External Investment Plan (EIP) consists of three pillars: (a) the European Fund for Sustainable Development (EFSD), (b) the Technical Assistance that supports the preparation of proposed sustainable investment programmes (PIPs) and (c) the improvement of the investment and business climate in partner countries. It provides for grants and guarantees worth €4.54 billion (2017-2020), expecting to leverage approximately €44 billion for sustainable investments in partner countries. The total budget for guarantees is €1.54 billion, while the budget for funds intended for blending programs is €3 billion.
The partner financial institutions are:
The Spanish Agency for International Development Cooperation AECID (Agencia Española de Cooperación Internacional para el Desarrollo), www.aecid.es, The French Development Agency AFD (Agence française de développement), www.afd.fr, The African Development Bank AfDB, www.afdb.org, The Italian Investment Bank CDP (Cassa Depositi e Prestiti), www.cdp.it, The Spanish Development Finance Institution COFIDES (Compañía Española de Financiación del Desarrollo),www.cofides.es, The European Bank for Reconstruction and Development EBRD, www.ebrd.com, The European Investment Bank EIB, www.eib.org, The Dutch Development Bank FMO (Financierings-Maatschappij voor Ontwikkelingslanden),www.fmo.nl, The International Finance Corporation IFC (member of the World Bank Group), www.ifc.org, The German Development Bank KfW (Kreditanstalt für Wiederaufbau), www.kfw.de, The Association of bilateral European Development Finance Institutions EDFI, www.edfi.eu
By the end of 2018, the EU had allocated €3.7 billion in grants and guarantees, expected to leverage around €37 billion for sustainable investment in partner countries. The total amount of €1.54 billion available under the European Fund for Sustainable Development’s Guarantee has been allocated to 28 guarantees, expected to leverage up to €17.5 billion in investment.
The allocation of the EFSD guarantee per cooperating financial institution is as follows: EBRD 17%, AFD 16%, AfDB 14%, EIB 13%, KfW 12%, AECID 8%, FMO 8%, EDFI 6%. The allocation of the total expected investments is: AfDB 18%, KfW 17%, EBRD 15%, AFD 14%, FMO 12%, EDFI 8%, EIB 7%, AECID / COFIDES 4 %, CDP 3%, IFC 2%.
As far as blended finance is concerned, in 2017-2018, the EU approved €2.2 billion from the EFSD to support blending projects in partner countries covered by the EIP. This is expected to leverage more than €19.5 billion in sustainable investment, for the implementation of 94 viable investment plans. Specifically, €1.45 billion (expected leverage of €9.9 billion) will support 51 projects in Sub-Saharan Africa (45% transport, 34% energy, 10% private sector development, 7% agriculture, 4% others) and €753 million (expected leverage of €9.5 billion) will support 43 projects in the Neighborhood countries (33% private sector development, 20% energy, 17% water and sanitation, 10% environment, 20% others).
Taking into account the 2018 figures, the present situation is as follows: €547 million (expected leverage of €4 billion) for 21 projects in Sub-Saharan Africa and €358 million (expected leverage of €4.3 billion) for 21 projects in the Neighborhood countries.
More information:
https://ec.europa.eu/commission/eu-external-investment-plan_en
https://ec.europa.eu/commission/sites/beta-political/files/eip_operational_report.pdf