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- Mutual Reliance Initiative
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- Mutual Reliance Initiative: blending expertise for larger finance capacity
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- Summary
- The Mutual Reliance Initiative (MRI) allows the promoters of investment projects in EU partner countries to benefit from a larger project finance capacity through a structured division of labour.
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To enhance the effectiveness of development cooperation, we are one of the partners in the Mutual Reliance Initiative (MRI), which sees the Bank join forces with the French Agency for Development (AFD) and Germany’s KfW Development Bank.
The initiative allows the promoters of investment projects co-financed by the three development institutions in EU partner countries to benefit from a larger project finance capacity through a structured division of labour.
Blending expertise
The EIB, KfW and AFD are all significant players in European external action, but they work under different regulations, statutes and legal and governance structures.
Under this initiative, most of the tasks during the project cycle are given to one of the three institutions as a lead financier, from appraisal to preparing lending decisions and implementation. The lead financier is appointed because they will have particular expertise in a given economic sector, or a significant presence in the project country. Close cooperation between the lead and the two co-financiers is integral in maximising the full benefits.
Successful pilot phase
We have successfully completed an MRI pilot phase, which involved co-financing 14 projects in Sub-Saharan Africa, North Africa and the Middle East.
We were able to test the scope for reliance and delegation which led to the formalisation of the MRI “Operational Guidelines”, a detailed, binding framework which allows financing operations to be handled in a way that satisfies the requirements of all three partners.
Roll out
The Operational Guidelines were signed on 21 January 2013, and the MRI roll-out phase has started. This is open to more regions, including Asia, Latin America and Eastern Europe as we seek to increase the impact of EU external policies on economic growth, employment, poverty alleviation, climate action, and regional integration, and improve the efficiency and visibility of those policies.
Every year, we and our partners will identify new projects with good prospects for work sharing and positive impact and add them to the MRI group of operations.
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- Improving power transmission in Egypt
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- Although virtually all of Egypt’s 80 million inhabitants are connected to the national power grid, this project will boost efficiency and cater for new generating capacity from renewable sources, as well as regional connectivity. There will be further environmental benefits through reduced losses in electricity.
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- Treating wastewater in Morocco
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The Moroccan government approved the national sewerage programme in 2005. By 2020, the target is to increase wastewater treatment rates from 13% to 60%, as well as connect 80% of urban areas to a wastewater treatment system. This EUR 4 billion project will benefit 10 million people in 260 urban areas.
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- Lake Victoria water and sanitation project, Uganda
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- This project is aimed at increasing reliability and access of clean water supplies for the people of the Ugandan capital Kampala, with a particular focus on the urban poor living in informal settlements. Although it will benefit most of Kampala’s 2.5 million inhabitants, it will also give an additional 400 000 people access to clean and safe drinking water.
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