the EU bank

The Cotonou Agreement mandates the EIB to provide reimbursable aid to projects, alongside grant aid from the European Commission. It was signed for a 20 year period with successive financial protocols defining the aggregate amount of Community aid to the ACP states for each period.

2003-2007 Financial Protocol

The 2003-2007 protocol comprises EUR 13.5 billion contributed by the EU Member States from the ninth European Development Fund (EDF). EUR 11.3 billion of this is grant aid channelled through the European Commission.

The remaining EUR 2.2 billion is managed by the Bank as follows:  

• EUR 2.037 billion allocated to finance the Investment Facility, a risk-bearing revolving facility geared to foster private sector investment in the ACP region
• EUR 187 million as an interest rate subsidy appropriation for financing projects presenting strong social and/or environmental benefits or in order to increase loan concessionality for public sector infrastructure projects in countries subject to restrictive borrowing conditions under the Heavily Indebted Poor Countries Initiative (HIPC) or other similar schemes.

The above EDF envelopes managed by the Bank are supplemented by EIB own resources of EUR 1.7 billion and EUR 20 million for the ACPs and the OCTs respectively. This finance is made available on a best efforts basis. A EUR 20 million OCT Investment Facility also exists, funded by the EU Member States.

2008-2013 Financial Protocol

The 2008-2013 financial protocol comprises EUR 22 billion contributed by the EU Member States from the tenth European Development Fund (EDF). EUR 20.5 billion of this is grant aid channeled through the European Commission.

The remaining EUR 1.5 billion comprises:

• an additional EUR 1.1 billion capital contribution to the Investment Facility
• a EUR 400 million appropriation for interest rate subsidies and technical assistance.

In addition, up to EUR 2 billion is available under the protocol in the form of loans from the EIB's own resources.

And EUR 30 million dedicated to the OCT Investment Facility is to be added to the EUR 30 million available from the Bank’s own resources.