EIB and EBRD Strengthen Partnership with New Mutual Reliance Agreement to Streamline Project Financing

EIB and EBRD Strengthen Partnership with New Mutual Reliance Agreement to Streamline Project Financing

(IN BRIEF) The EIB and EBRD have taken a significant step forward in their partnership by signing a Mutual Reliance Agreement, which aims to reduce administrative burdens, improve project financing efficiency, and ensure the highest environmental and social standards in shared operational regions. This new agreement aligns both institutions’ environmental and social frameworks and will help streamline processes, providing clients with a single point of contact for both institutions. It builds on previous mutual reliance agreements and strengthens the role of both banks in enhancing the effectiveness of Multilateral Development Banks in global development.

(PRESS RELEASE) LUXEMBOURG, 7-May-2025 — /EuropaWire/ — The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) have signed a Mutual Reliance Agreement that enhances their cooperation on environmental and social aspects, making it easier to finance and expedite projects in shared operational countries. This agreement, finalized in April during the Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, marks a significant milestone in their long-standing partnership.

The Mutual Reliance Agreement aims to simplify and speed up project financing processes by aligning both institutions’ environmental and social policies. As a result, clients will experience fewer administrative burdens and reduced transaction costs, as they will have one main point of contact instead of two. This collaboration underscores the growing commitment to improving coordination and efficiency among Multilateral Development Banks (MDBs) to increase the impact of development financing. The agreement is in line with the G20 Roadmap for Better, Bigger, and More Effective MDBs, which advocates for enhanced coordination and co-financing among MDBs to ensure more effective development outcomes.

The agreement is a testament to the alignment between the EIB’s and EBRD’s policies, allowing the two banks to rely on each other’s Environmental and Social frameworks throughout the project lifecycle. By sharing tasks such as due diligence and project monitoring, both institutions can ensure the highest standards while improving the speed and ease of project implementation.

This agreement builds on the EIB’s history of pioneering mutual reliance arrangements, including prior agreements with agencies such as the Agence Française de Développement and KfW. It complements earlier procurement-focused mutual reliance agreements with the EBRD, World Bank, and other international development bodies. These past collaborations have successfully supported the implementation of 77 projects with an investment value of around EUR 30 billion from 2015 to 2024.

Watch the video of Presidents Calviño and Renaud-Basso on why EIB-EBRD Mutual Reliance matters.

https://youtu.be/Ad4npWKR07Q

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SOURCE: European Investment Bank