Sources of Funding

The European External Action Service (EEAS) is the European Union’s diplomatic service. Its role is to make sure the voice of the European Union and its people are heard in the world.

A key aspect of the work of the EEAS is its ability to work closely with the foreign and defence ministries of the 28 member states of the EU and the other EU institutions such as the European Commission, Council and Parliament. It also has a strong working relationship with the United Nations and other International Organisations.

Following the Treaty of Lisbon, the EEAS is responsible for the running of EU Delegations and Offices around the world. The 139 Delegations play a vital role in representing the EU and its citizens around the globe and building networks and partnerships. The main role is to represent the EU in the country where they are based and to promote the values and interests of the EU.

They are responsible for all policy areas of the relationship between the EU and the host country – be they political, economic, trade or on human rights and in building relationships with partners in civil society. In addition they analyse and report on political developments in their host country. They also programme development cooperation through projects and grants. A fundamental aspect of a Delegation is its public diplomatic role which consists in increasing the visibility, awareness and understanding of the EU.

Delegations are diplomatic missions and are usually responsible for one country, although some are representatives to several countries. The EU also has Delegations to international organisations like the United Nations and the World Trade Organisation for example.

More information about European External Action Service (EEAS) can be found here.

Contact details of the EU Delegations in the CA countries are provided below.

FINANCIAL SUPPORT

The EU combines different types of support to countries in need. It provides funding in the form of grants to support projects and organisations furthering its development objectives. It also offers public contracts and provides budget and sector support. Grants are managed by EuropeAid (Directorate-General for International Cooperation and Development or DEVCO) or Directorate-General for Neighbourhood and Enlargement Negotiations (DG Near).

DG DEVCO is responsible for formulating European Union development policy and thematic policies in order to reduce poverty in the world, to ensure sustainable economic, social and environmental development and to promote democracy, the rule of law, good governance and the respect of human rights, notably through external aid. We foster coordination between the European Union and its Member States in the area of development cooperation and ensure the external representation of the European Union in this field.

GRANTS AND CONTRACTS

Grants are direct financial contributions provided to organisations, or to projects carried out by them. Most of the time, the Commission attributes them through calls for proposals.

More information on grants is available here.

Contracts are awarded through tendering procedures to purchase services, supplies or works.

More information of contracts is available here.

Both contracts and grants are awarded for activities contributing to specific development goals.

BUDGET SUPPORT

Budget support is an important tool to finance partner countries’ development strategies. It consists of financial transfers to the national treasuries, and also involves policy dialogue and measures to assess the use made of these funds.

Budget support helps to deliver aid adapted to the needs identified by the countries themselves.

To benefit from budget support, a beneficiary country must demonstrate commitment to the fundamental values of human rights, democracy and the rule of law.

Budget support policy is available here.

SECTOR SUPPORT

A large part of the development funding made available by the EU targets specific sectors in partner countries. This so called ‘sector approach’ increases the effectiveness of aid by supporting government-owned strategies.

Sector support gives a boost to sector programmes run by partner governments. The funding can take on the form of sector budget support, grant and contract funding, or ‘common basket funding’ pooling resources from different donors.

The practical guide is the working tool explaining the procedures applying to external aid financed by the European Commission. It contains a specific section related to grants.

More information on DG DEVCO and the support it provides is available here.

For information of the EU policies and priorities in Central Asia is available on Europeaid website. More information of the EU-Central Asia Strategy is available here.

Through the Investment Facility for Central Asia (IFCA), the European Union backs the priorities of partner governments in the Central Asian region and supports them in undertaking priority investments contributing to inclusive and sustainable growth. The Facility aims at leveraging funds with eligible Financing Institutions for such investment projects.

IFCA, set up in 2010 as part of the Development Cooperation Instrument (DCI), is one of the instruments to support the EU Strategy for Central Asia.

Through IFCA, the European Union backs the priorities of partner governments in the Central Asian region and supports them in undertaking priority investments contributing to inclusive and sustainable growth. The Facility aims at leveraging funds with eligible Financing Institutions for such investment projects.

The Facility intervenes in cases where the regular market fails to offer sufficient or affordable financing which may hinder the timely realisation of high priority investment projects with the potential to promote inclusive and sustainable socio-economic development.

The following partner countries are eligible for support from IFCA: Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan. The Facility can also finance regional projects covering two or more of the above countries.

In line with the objectives of the Regional Indicative Programme 2014 – 2020 for Central Asia, IFCA’s main objective is to contribute to sustainable regional development and economic growth.

Consequently, IFCA finances projects with the following aims:

• Better energy infrastructure
• Increasing protection of the environment and better focus and control of climate change impacts
• Creation and growth of SMEs and improvement of the employment situations
• Improving social services and infrastructure, including health and education.

In addition, IFCA may support the implementation of bilateral Indicative Programmes in the region.

IFCA provides its support through:

• Investment grants
• Technical assistance
• Risk capital and other risk sharing instruments

IFCA sets up partnerships, using grant resources from the EU to leverage and pool financing from multilateral and bilateral European Finance Institutions (such as AFD, CDP/SIMEST, EBRD, EIB or KfW), Regional Development Banks (such as the ADB) as well as the WB, partner countries and beneficiary institutions in Central Asia.

The EU blending project cycle comprises seven stages with responsibilities shared by key stakeholders. The main stakeholders in blending are EU Delegations, DG DEVCO and DG NEAR (Headquarters), financial institutions, partner countries and regional organisations.

Project cycle stages in blending operations

1. Identification: Projects are identified by the financial institutions and EU Delegations with the partner countries and, where relevant, regional organisations. The EU Delegations ensure the coherence of projects with EU policy objectives and sector priorities. Generation of a “pipeline”.
2. Preparation: The lead financial institution is in charge of submitting project proposals and trilateral consultations are held with EU DGs and financial institutions to secure matching criteria
3. Assessment: Relevant EU services will assess (i) the alignment to EU policy objectives, (ii) justification of need and added value, (iii) project’s social, environmental and climate change aspects, (iv) financial structure, while analysing political barriers & similar actions.
4. Board opinion: Opinions on EU grant requests are taken by consensus at meetings of the relevant Blending Framework Board (voting: Commission, the EEAS and the EU Member States); then the Commission takes their decision.
5. Contracting: The Commission decision to proceed with a project is followed by formal contracting, including signature of a delegation agreement with the lead financial institution.
6. Monitoring: The lead financial institution is responsible for project implementation (tendering & procurement), monitoring and (financial & operational) reporting, based on indicators.
7. Evaluation: Responsibility for the evaluation of blended operations is delegated to the lead financial institution.

Contact details:

Directorate General for International Cooperation and Development
Rue de la Loi 41, B-1049 Brussels, Belgium
Tel: +32 2 2991111, +32 2 2999814,
EuropeAid-IFCA@ec.europa.eu
https://ec.europa.eu/europeaid/regions/central-asia/investment-facility-central-asia-ifca_en

The European Investment Bank (EIB) is the European Union’s bank and the world’s largest multilateral borrower and lender providing finance and expertise for sustainable investment projects that contribute to EU policy objectives.

The European Investment Bank (EIB) is non-profit long-term lending banking institution established in 1958 under the Treaty of Rome. The EIB is a publicly owned international financial institution and its shareholders are the 28 EU member states. Thus, the member states set the bank’s broad policy goals and oversee the two independent decision-making bodies – the board of governors and the board of directors.

It is the world’s largest international public lending institution.

Although about 90 percent of projects financed by the EIB are based in EU member countries, the bank does fund projects in about 150 other countries – non-EU South-Eastern European countries, Mediterranean partner countries, ACP countries, Asian and Latin American countries, the members of the Eastern Partnership and Russia. According to the EIB, it works in these countries to implement the financial pillar of the Union’s external cooperation and development policies by encouraging private sector development, infrastructure development, security of energy supply and environmental sustainability.

In Central Asia, The EIB is currently active in 4 countries: Tajikistan, Kazakhstan, Kyrgyzstan and most recently Uzbekistan. The loans provided by the EIB come from the lending window for Asia provided under the mandate from the Council and European Parliament for the period 2014-2020, out of which 182 M€ has been made available for use in Central Asia.

Overall the lending strategy outside the EU follows the EIB’s priority objectives for lending activity:

• Private sector development
• Financial sector development
• Infrastructure development
• Security of energy supply
• Environmental sustainability
• EU presence.

In Central Asia within the framework of the EIB External Lending Mandate, priority is given to projects which contribute to improving energy supplies and environmental protection. Borrowing counterparts will include both public sector entities and private sector companies.

Eligible projects in the energy sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for:

1. Gas and oil networks leading to improved performance and increased safety and security of gas supplies to the EU
2. Oil and gas extraction facilities, where EIB funding will focus on equipment and infrastructure for environmental protection purposes.
3. Electricity generation plants and electricity transmission lines, providing substantial energy saving and environmental protection benefits.

Eligible projects in the environmental sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for energy saving as well as schemes leading to a significant improvement of the environment

EIB provides 3 main funding types:

• Lending: The vast majority of EIB financing is through loans, but EIB also offers guarantees, microfinance, equity investment, etc.
• Blending: EIB support unlocks financing from other sources, particularly from the EU budget. This is blended with loans to form a full financing package.
• Advising: Lack of finance is often only one barrier to investment. EIB helps with administrative and project management capacity to facilitate investment.

In Central Asia within the framework of the EIB External Lending Mandate, priority is given to projects which contribute to improving energy supplies and environmental protection. Borrowing counterparts will include both public sector entities and private sector companies.

Eligible projects in the energy sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for:

1. Gas and oil networks leading to improved performance and increased safety and security of gas supplies to the EU
2. Oil and gas extraction facilities, where EIB funding will focus on equipment and infrastructure for environmental protection purposes.
3. Electricity generation plants and electricity transmission lines, providing substantial energy saving and environmental protection benefits.

Eligible projects in the environmental sector: expansion, modernisation and upgrading of infrastructure and procurement of equipment for energy saving as well as schemes leading to a significant improvement of the environment

In addition, Central Asian countries are eligible under the Bank’s own risk Climate Action & Environment Facility (CAEF) for investment grade projects in renewable energy, energy efficiency, carbon capture, transportation or storage projects aiming specifically to reduce greenhouse gas emissions and projects contributing substantially to security of EU energy supply.

The EIB Project cycle includes 4 main stages:

1. Applying for a loan
2. Appraisal
3. Procurement
4. Monitoring.

Contact details

European Investment Bank, 98-100, boulevard Konrad Adenauer, L-2950 Luxembourg.
EIB Switchboard: Tel: +352 43 79 1; fax +352 43 77 04
Information desk: Tel: +352 4379-22000; fax +352 4379-62000
http://www.eib.org/infocentre/contact/index.htm

The European Bank for Reconstruction and Development (EBRD) was established in 1991 and provides a range of financial products and services tailored to each client. It operates in more than 36 economies across three continents.

The European Bank for Reconstruction and Development (EBRD) is a multilateral developmental investment bank and international financial institution founded in April 1991.

The EBRD is owned by 65 countries and two EU institutions. Despite its public-sector shareholders, it invests mainly in private enterprises, together with commercial partners.

One of the key Funding channels of EBRD includes the above-mentioned Investment Facility for Central Asia (IFCA) which has central role in supporting EBRD activities in Central Asia. It covers Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan, and is aimed at promoting investments in the energy, small and medium-sized enterprise (SME) and social sectors. Since 2010, the IFCA and EBRD have had a very strong partnership and in 2016, six agreements worth almost 55 M€ were signed. These grants are used to support EBRD’s investments across the region, mostly in the municipal infrastructure, SME and energy efficiency sectors.

Initially focused on the countries of the former Eastern Bloc, EBRD expanded to support development in more than 30 countries from Central Europe to Central Asia. Besides Europe, member countries of the EBRD are from five continents (North America, Africa, Asia and Australia), with the biggest shareholder being the United States.

In 2015, the EBRD invested a record amount in the Central Asian region. The total investment in 2015 rose by 75% reaching 1,402 M€. Kazakhstan reported the largest total volumes of investment reaching 709 M€ in 2015.

EBRD members

The goal of EBRD is to maximise impact of projects implemented with its financial support. In order to do so the following factors are taken into consideration during the project proposal evaluation stage as well as later at project appraisal stages:

• Innovation
• Access to finance
• Regional Development
• Resource efficiency and environment
• Inclusion

EBRD supports projects in a large number of different sectors.

EBRD focus sectors

Projects may be considered for EBRD assistance if they:

• are located in an economy where the EBRD works
• have good prospects of being profitable
• have significant equity contributions in cash or in kind from the project sponsor
• would benefit the local economy
• satisfy the EBRD’s environmental standards as well as those of the host country

Environmental and social sustainability is the heart of EBRD activities, also through green economy products which amount to one third of EBRD’s investment. EBRD’s approach to sustainability involves “Green Economy Transition” and additionally

• incorporating environmental and social requirements into the appraisal and implementation of all Bank-funded projects based on European Union standards and international good practice
• providing finance and technical assistance specifically aimed at addressing environmental and social issues
• promoting economic inclusion and access to community services such as water and public transport
• supporting projects that promote gender equality
• encouraging public participation through pre-investment consultation and information disclosure, and maintaining regular strategic dialogue with civil society organisations and other stakeholders.

Funding type

The EBRD tailors solutions to client and project needs and to the specific situation of the country, region and sector. It assigns a dedicated team of specialists with expertise in project finance, the region and sector, law and environment.

EBRD financing for private sector projects generally ranges from M€ 5 to M€ 200, in the form of loans or equity. The average EBRD investment is M€ 20. Smaller projects may be financed through financial intermediaries or through special programmes for smaller direct investments in the less advanced countries. The key three types of direct financial support provided by EBRD are:

• Loans
• Equity Investments
• Guarantees to promote trade

The total lifecycle of an EBRD project, from initiation to repayment, can range from one year for working capital or trade financing projects to 15 years for long-term sovereign infrastructure projects.

Contact details

EBRD Kazakhstan: http://www.ebrd.com/kazakhstan.html

Almaty Resident Office, 41 Kazybek Bi street, Park Palace Business Centre, 3-rd Entrance, 3-rd Floor, 050010, Almaty. Tel: +7 727 332 00 00, fax: +7 727 258 14 22

Nur-Sultan Resident Office, “SAAD” BC, 10th Floor, 2 Dostyk street, Yesil district, Astana, Republic of Kazakhstan. Tel. +7 7172 554246, fax: +7 7172 554245

EBRD Kyrgyz Republic: http://www.ebrd.com/kyrgyz-republic.html

Bishkek Resident Office, Business Centre Orion, 21 Erkindik Boulevard, 4th Floor, 720040 Bishkek
Kyrgyz Republic. Tel: +996 312 624 016, 624 017

Karakol office, 122 Gebze Str, 2nd floor, 722200 Karakol, Kyrgyz Republic. Tel: +996 3922 52050, fax: +996 3922 52060

Osh office, Osh-Nuru Hotel, 1 Bayalinov Street, 2nd floor, Office 217, 723500 Osh, Kyrgyz Republic Tel: +996 3222 21139, fax: +996 3222 57947

EBRD Tajikistan: http://www.ebrd.com/tajikistan.html

Dushanbe Resident Office, 34 Rudaki avenue, TCELL Plaza, 12 floor, 734025 Dushanbe, Tajikistan  Tel: +992 37 2 210763; 2213 543; 2216709; 2216718; 2219832; 2510178; 2512424

EBRD Turkmenistan: http://www.ebrd.com/turkmenistan.html

Ashgabat Resident Office, “Berkarar” Business Center, 13th floor, Suite M3, 82, 1972 street (Ataturk), 744000 Ashgabat, Turkmenistan. Tel: +993 12 46 88 20, fax: +993 12 46 88 26

EBRD Uzbekistan: http://www.ebrd.com/uzbekistan.html

Tashkent Resident Office, 1, Qoratosh Street, Tashkent, Uzbekistan, 100027, Tel: +99871 140 44 00

KfW Entwicklungsbank (KfW Development Bank) is a German government-owned development bank, which provides financing to governments, public enterprises and commercial banks engaged in microfinance and SME promotion in developing countries.

The German “Reconstruction Credit Institute” (Kreditanstalt für Wiederaufbau) is based in Frankfurt as a Germany’s government-owned development bank, owned by the Federal Republic of Germany (80 %) and the Federal States of Germany (20 %). In 1948 after World War II it was formed as a part of the Marshall Plan. Presently, KfW covers over 90% of its borrowing needs in the capital markets, which allows KfW to raise funds at advantageous conditions.

The entirety of KfW falls into several subsidiaries and group units (figure below): its largest subsidiary, KfW IPEX Bank GmbH, predominantly lends internationally (i.e., financing projects of German and European companies so they can compete in global markets), while a smaller subsidiary, the German Investment Corporation, and one of the group’s smaller business units, KfW Development Bank, are exclusively active in the international arena, each within their particular business areas.

KfW Development Bank cooperates with partners in in Africa, Asia, Latin America and South-East Europe.

In Asia KfW Development Bank works with many countries on behalf of the German Federal Government to fight poverty and climate change and protect the environment: these efforts include increasing the use of renewable energy sources and preserving biodiversity. Support is provided for efficient financial institutions that help small and medium-sized enterprises create jobs.

At present in Central Asia KfW Development Bank has offices in Uzbekistan, Kyrgyzstan and Tajikistan.

KfW promotes economic and social progress in developing and emerging countries to improve people’s lives. KfW sees its task in providing support and advice for reform processes and investments in developing and emerging countries. KfW sets these objectives:

• Sustainably improve economic and social conditions
• Poverty reduction
• Climate and environmental protection
• Promote the financial sector

Its partners are governments and (non-)governmental institutions and bilateral & multilateral donors.

It is particularly important for KfW that direct poverty reduction be accompanied by the creation of viable structures. Only in a favourable environment can women and men exercise their political rights, secure their economic livelihood and build their lives in dignity. In this sense, KfW is one of the leading financiers of microcredit in developing countries.

The magazine Global Finance rated KfW as the safest bank in its “World’s 50 Safest Banks 2014” rating.

Funding type

KfW Development Bank’s financial support is tailored to the circumstances in the respective partner country. The funding model selected will be determined depending on the size of a country’s debt, its economic output and level of development, the performance capacity of the project partner as well as the type of project. The funding models include pure grants and loans from budget funds, but also loans that combine budget funds and KfW’s own funds. The conditions for these kinds of loans are particularly favourable (interest, term). KfW also grants loans which are only comprised of KfW’s own funds at terms and conditions commensurate to risk.

Project cycle

All projects and programmes that are promoted by KfW Devel opment Bank, both financially and in terms of ideas, follow the same project cycle — from conception through to evaluation. Quality is carefully assured at each stage of this cycle. In doing so KfW Development Bank aims to ensure that the projects generate both specific and structural changes.

The preparation phase includes analysis and conception and is aligned with the country strategies of the German Federal Ministry for Economic Cooperation and Development BMZ. The following on-site audit checks the conditions on-site.

The execution phase includes the financing agreement and execution in the technical sense, when the ownership by the partner country is strengthened, e.g. by the local project-executing agency being responsible for all activities.

The inspection phase includes the final inspection (checking if the population actually accepts the services offered), the ex-post evaluation by an independent administrative KfW department and finally transparent information via KfW’s transparency portal, providing information about the origin, use and impact of the funds is provided.

An intergovernmental agreement is generally concluded on any project. KfW checks whether the proposed projects are developmentally sound and realisable. Working together with the partner, specialised consulting firms draw up a feasibility study, which provides answers to all of the project’s key questions – economic efficiency, developmental impacts and possible risks.

KfW Project cycle

Contact details

https://www.kfw-entwicklungsbank.de/International-financing/KfW-Development-Bank/Local-presence/Regional-offices.html

KfW Office in Kyrgyzstan Blvd. Erkindik 22 / ul. Moskowskaya 101/1, 720040 Bishkek, Kyrgyz Republic Tel: +996 312 90 90 85-88, fax: +996 312 90 90 89, Email: KfW.Bischkek@kfw.de

KfW Office in Tajikistan N. Huvaidulloev Street 2\1, Jaihun Business Center, 3. Floor,  734049 Dushanbe, Tajikistan Tel: +992-44-6006823, fax: +992 44 600 52 04 Email: kfw.duschanbe@kfw.de

KfW Office in Uzbekistan 7 A., Chimkentskaya Str.,100029 Tashkent, Uzbekistan Tel: +99 871 280 6759, fax: +99 871 280 6760 Email: kfw.taschkent@kfw.de

French Development Agency (Agence Française de Développement) is a public financial institution that implements the policy defined by the French Government. It works to fight poverty and promote sustainable development.

AFD is a bi-lateral development finance institution established in 1941 that works on behalf of the French government. Its main focus of activities is provision of financial assistance according to France’s Overseas Development Assistance policies, including projects aimed at reducing poverty and inequalities, promoting sustainable economic growth, and preservation “Global Public Goods” of benefit to all humanity. Preservation of Global Public Goods includes the fight against climate change and pandemics; the protection of biodiversity; the promotion of social and environmental responsibility; as well as aid to countries weakened by strife, war and natural disasters.

Consequently, AFD is active in Africa, Asia, the Middle East, Latin America, the Caribbean and the French overseas territories where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet. For Asia, this means a geographic emphasis on former French-Indochina, less on CA.

In keeping with the United Nations Sustainable Development Goals, AFD works in many sectors — energy, healthcare, biodiversity, water, digital technology, professional training, among others — to assist with transitions towards a safer, more equitable, and more sustainable world. Moreover, 50% of AFD grants and loans to foreign countries in 2016 had climate and development as co-benefits.

AFD provides the following types of financial support:

Loans, which terms are determined depending on the type of project and its environment (impact and political, economic, social and environmental context) and the quality of the borrower (sector, rating, guarantees);

Guarantees for financing for companies and bond issues conducted on the markets by financial institutions or certain States;

Grants to finance actions in the social sector (health, education), initiatives for rural and urban development, and infrastructure projects.

Contact details

https://www.afd.fr/en
https://www.afd.fr/en/our-agency-uzbekistan
AFD regional office in Tashkent, Uzbekistan
25 Istiqbol ko’chasi, 100047 Tashkent, Uzbekistan
Tel: +998 71 233 66 69

German government is supporting sustainable development in provides support to developing and transition countries and emerging economies through various programmes and agencies. In this section you will find brief information on some of them.

German Federal Environment Ministry (BMUB)

German Federal Environment Ministry (BMUB) currently has two main mechanisms for provision of financial support:

• Environmental Innovation Programme for Projects Abroad – this programme of Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety provides financial support for projects which will have direct environmental effects on Germany or which will increase, via a “philosophy transfer” and a maximum possible multiplier effect, the willingness to invest in climate action measures in the respective countries.

More information on the programme priorities and application criteria are available here.

• International Climate Initiative (IKI) was established in 2008. BMUB uses this instrument to strengthen cooperation between the German Government and developing and transition countries and emerging economies, in order to mitigate and adapt to climate change, and preserve biodiversity.

More information of the Initiative and application criteria are available here.

Federal Ministry for Economic Cooperation and Development (BMZ)

The guiding principles of Germany’s development cooperation will be protecting human rights and fostering the developing countries’ sense of ownership and ability to help themselves.

When Germany provides a developing country with a low-interest loan, when German experts advise the government of a partner country on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) or when private German organisations carry out projects in developing countries, these are all approaches involving direct development cooperation between Germany and its partners. Besides engaging in such bilateral development cooperation activities, Germany is also involved in activities for the benefit of the developing countries at the international level – for example, through the EU’s development policy and by supporting international organisations such as the United Nations.

To get more information on the available funding and project cooperation please visit BMZ website.

German Federal Foreign Office

German Federal Foreign Office represents Germany’s interests to the world. It promotes international exchange and offers protection and assistance to Germans abroad.

With its offices in Berlin and Bonn and a network of around 230 missions abroad, the Federal Foreign Office maintains Germany’s relations with other countries as well as with international and supra-national organisations. This work concerns much more than just political contacts among governments and parliaments. Because Germany and German society are enmeshed in ever-growing international networks, the Federal Foreign Office promotes intensive interaction and exchange with the world in the fields of business, culture, science and technology, the environment, development issues and many more areas.

Federal Foreign Office provides support through cooperation with humanitarian relief organisations in crisis situations. For more information please visit this website.

Federal Foreign Office is also involved in disaster risk reduction programmes; for more details please go to the dedicated webpage.

German development agency (GIZ)

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ or GTZ) GmbH or GIZ in short is a German development agency headquartered in Bonn and Eschborn that provides services in the field of international development cooperation. GIZ mainly implements technical cooperation projects of the Federal Ministry for Economic Cooperation and Development (BMZ), its main commissioning party, although it also works with the private sector and other national and supranational government organizations (but usually not with non-governmental organizations) on a public benefit basis.

For more information and contact details go to GIZ website.

Over 40% of the world’s population lives in transboundary river basins, which account for almost 60% of global freshwater resources. Moreover, nearly one country in six depends on upstream countries for over half of its water supply.

Water is, by nature, a local public good and a resource that crosses borders. This is a source of significant tension in some regions, namely Africa, the Middle East and Central Asia. For this reason, France promotes international conventions that foster dialogue and support transboundary water cooperation initiatives.

Source: Foreign Ministry of France

More information on French policy priorities in the CA region and available types of cooperation can be found of there websites of the French embassies in the respective countries. More information is available here.

Fonds Français pour l’Environnement Mondial (FFEM)

The French Facility for Global Environment (FFEM) was created by the French Government in 1994 following the first Earth Summit, to implement sustainable development projects that integrate the preservation of global public goods, international solidarity and innovation in developing and emerging countries.

FFEM promotes innovative solutions in the fields of biodiversity, climate, international waters, land degradation, including deforestation, chemical pollutants and the stratospheric ozone layer.

All FFEM-funded projects are reported as Official Development Assistance.

In 24 years, 314 projects have already been financed, in over 120 countries, including 69% located in Africa and the Mediterranean.

The FFEM’s mission is to encourage developing countries to implement strategies and projects of sustainable development in the 6 following areas:

• biodiversity ;
• climate change ;
• international waters ;
• land degradation, including desertification and deforestation ;
• persistent organic pollutants (POPs) ;
• ozone layer.
• Projets funded by the FFEM help to implement organisational methods and techniques which have a new and innovative feature.

More information on the projects implemented by FFEM can be found here.

Finland pursues an active bilateral and multilateral foreign and security policy. In a world of mutual interdependencies, this fosters sustainable development and promotes international stability, peace, democracy, human rights, the rule of law, and equality.

Finland has pledged to bear its share of the global responsibility for implementing the 2030 Agenda for Sustainable Development. All of the Foreign Service’s priorities promote the attainment of the goals set in the 2030 Agenda. The Foreign Service also promotes sustainable development through its operating practices in the Ministry and the missions abroad. The Foreign Service plays a part in ensuring that sustainable development and consistent and coherent action are integral to Finland’s foreign policy overall and that there is improved coordination between all administrative branches. Through development policy and development cooperation, Africa will remain Finland’s central partner in the promotion of sustainable development. 6 (7) In its international cooperation, the Foreign Service will emphasise Finland’s experiences and practices. These include the priorities set out in the Government Report on the Implementation of the 2030 Agenda for Sustainable Development, namely a carbon-neutral and resource-wise Finland and a non-discriminating, equal and competent Finland.

Source: Finnish Foreign Service

At present Finland has an embassy in Kazakhstan and consulate in Kyrgyzstan. More information on Finnish policy priorities in the region and available sources of funding or types of cooperation can be found here.

Combating poverty, ensuring peace and preserving the environment: These are the three major concerns of Austrian Development Agency (ADA), the operational unit of Austrian Development Cooperation. ADA funds projects and programmes currently with a total of EUR 500 million to improve living conditions in developing countries.

Austrian Ministry of Foreign Affairs allocates the ADA budget, but other federal ministries and donors or the EU, for example, draw on ADA expertise. Since 2008, the Austrian Development Agency has been conducting programmes for the European Commission. Via a further financing instrument, business partnerships, it allocates private funds for development cooperation: ADA promotes projects of enterprises in developing countries and emerging nations if they contribute to improving the conditions of life of the population in a region. Most funds are invested in its key regions and priority countries.

ADA is primarily engaged in sectors where it can bring its professional know-how and long-standing experience to bear in: water supply and sanitation, renewable energy, climate protection, agriculture and forestry, private sector & development as well as human security, human rights and rule of law. It attaches particular importance in all its programmes and projects to the equal participation of women, taking special account of the needs of children and persons with disabilities.

More information is available here: www.entwicklung.at

The World Bank (WB) Group is one of the world’s largest sources of funding and knowledge for developing countries. It has 189 member countries, staff from more than 170 countries, and offices in over 130 locations.

World Bank was founded in 1944 as an international financial institution that provides loans to countries of the world for capital programs. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group. It provides low-interest loans, zero to low-interest credits, and grants to developing countries. These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. Some of its projects are co-financed with governments, other multilateral institutions, commercial banks, export credit agencies, and private sector investors.

The World Bank’s stated official goal is the reduction of poverty and promoting shared prosperity. According to Article I of its Articles of Agreement, its purposes are (i) to encourage the development of productive facilities and resources in less developed countries, (ii) to promote foreign investment or provide own capital and (iii) to promote the long-range balanced growth of international trade.

The World Bank Group works in more than 170 countries, cooperating with partners in the public and private sectors.

Priority fields covered by the WB financed projects are strongly related to the Millennium Development Goals (MDG), which include the following targets:

• Eradicate Extreme Poverty and Hunger
• Achieve Universal Primary Education
• Promote Gender Equality
• Reduce Child Mortality
• Improve Maternal Health
• Combat HIV/AIDS, Malaria, and Other Diseases
• Ensure Environmental Sustainability
• Develop a Global Partnership for Development.

The World Bank produced a Climate Change Action Plan 2016-2020 including four priorities:

• Priority I: Support Transformational Policies and Institutions
• Priority II: Leverage Resources
• Priority III: Scale Up Climate Action
• Priority IV: Align Internal Processes and Work with Others

WB provides a variety of financial instruments and services. These are summarised in the Box below.

World Bank Financial Instruments

• Investment Project Financing provides IBRD loan, IDA credit/grant and guarantee financing to governments for activities that create the physical/social infrastructure necessary to reduce poverty and create sustainable development.
• Development Policy Financing provides IBRD loan, IDA credit/grant and guarantee budget support to governments or a political subdivision for a program of policy and institutional actions to help achieve sustainable, shared growth and poverty reduction.
• Program-for-Results links disbursement of funds directly to the delivery of defined results, helping countries improve the design and implementation of their own development programs and achieve lasting results by strengthening institutions and building capacity.
• Trust funds and grants allow scaling up of activities, notably in fragile and crisis-affected situations; enable the Bank Group to provide support when its ability to lend is limited; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that are later mainstreamed into the Bank’s operations.
• Private sector options for financing, direct investment and guarantees are provided by MIGA and IFC.
• Customized options and risk management

World Bank Services

• Technical Assistance (TA)
• Reimbursable Advisory Services (RAS)
• Economic and Sector Work (ESW)
• Business advice
• Donor aid coordination

Project cycle

The World Bank’s so called Green Project Cycle contains the following major stages:

1. Identification: The task of identifying and proposing projects for World Bank financing lies mainly with borrowing governments. In this first phase, planners answer questions such as: Who will benefit from the project? Will project benefits be greater than the costs? Are there other options for achieving the same objective? A project must also pass a priorities test.
2. Preparation: Though the Bank will often help, the borrowing country is responsible for exa­mining the technical, economic, social, and environmental aspects of the project. It defines and analyses the available options, the feasibility of each, and their costs and benefits.
3. Appraisal: WB’s own independent assessment of the project is called-the appraisal. About 150 on-site appraisal missions, lasting three to four weeks, take place each year, performed by Bank staff and consultants on technical, institutional, economic and financial questions.
4. Negotiation and Board Presentation: The Bank appraisal report summarizing its recommen­dations for a loan’s conditions forms the basis for negotiations with the borrower. The negotiations bring World Bank staff and the borrower together to agree on the measures necessary for a successful project. Presentation is made to the WB Board of Directors. Implementation and Supervision: About ten WB staff-weeks a year are spent supervising each project, including visit the project site to identify problems and help find solutions.
5. Evaluation: An independent department within the World Bank, the Operations Evaluation Department (OED) is responsible for assessing the results of projects impartially.

The World Bank project cycle