The Council of Europe Development Bank (CEB) and the European Investment Bank (EIB) deepened their long-standing partnership by signing a Mutual Reliance Agreement today to strengthen co-operation, facilitate co-financing and enhance the impact of public sector projects in countries of operation outside of the European Union.
A key element of this approach is the mutual recognition of each institution’s procurement policies and procedures, thus reducing transaction costs and administrative burden. By streamlining project preparation and implementation, the agreement will allow both the CEB and the EIB to focus on delivering tangible benefits for their member countries.
The agreement also aligns with the recommendations of the G20 Roadmap for Better, Bigger, and More Effective Multilateral Development Banks (MDBs), which calls on MDBs to enhance country-level coordination and co-financing, including through mutual reliance agreements for greater development financing efficiency.
“As Chair of the Heads of MDBs Group this year, the CEB is committed to fostering stronger collaboration among multilateral development banks to increase our collective impact. This CEB-EIB agreement is a concrete example of how MDBs are working together more effectively as a system, to deliver financing where it is most needed. By tightening our cooperation, we can accelerate support for sustainable development, social cohesion and economic resilience in our countries of operation to benefit the communities we serve,” said CEB Governor Carlo Monticelli.
EIB Group President Nadia Calviño said: “ It is more important than ever that we join forces in mobilising investment and supporting a strong European voice in the world. The agreement we signed today with the Council of Europe Development Bank reflects our strong partnership, financing projects that build stronger communities and improve lives across the European Union and beyond.”
The CEB and EIB have a strong track record of co-financing projects that drive social and economic development across Europe. Recent examples of collaboration include financing vital water irrigation investments in Greece; jointly supporting a landmark cultural, social and educational hub in Cyprus; and investing in water and wastewater facilities in Serbia. Projects in the healthcare sector are also being jointly appraised in the Western Balkans region.
The agreement will enable both institutions to co-finance larger and more complex projects that no single lender could undertake alone, leveraging their collective financial strength and expertise to maximise the impact of strategic investments.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
About the CEB
The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.