Link to the study - European Parliament - Europa

Policy Department D: Budgetary Affairs
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Information Sheet. The Bank can only enter into a Grant Agreement with the recipient once the
Assembly has approved the allocation of funds for the purpose. Any material change to scope or cost
also requires Assembly approval.
The Assemblies typically meet twice a year but can be convened whenever required.
The Bank as Fund Manager
The Bank serves as Secretariat to the Assemblies. In this function it provides: information on project
progress, project proposals and action plans in the Work Programs; financial information in the
Annual Financial Report; and information on the Bank’s Administrative Budget. In addition, the Bank
presents all relevant information at the Assembly meetings, and minutes its deliberations. It also
informs the Assembly about relevant developments via ad hoc communications to the Assembly.
The other part of the Fund Manager’s responsibilities concerns the overseeing of program and
project implementation described below.
The Bank accepted to manage the three Funds as a service to major shareholders to the Bank led by
the EC and to the Bank’s countries of operation, recognizing that the safe and secure
decommissioning of their first-generation nuclear plants and associated challenges to their energy
sectors represented significant transitional challenges in line with the Bank’s mandate.
The Bank provides its services at cost. It does not charge any fees and makes no profit. Each year, the
Assembly approves the administrative budget for the following year, although only costs actually
incurred are charged to the Funds. Administrative costs of some 23 million EUR for the three Funds,
since their inception, represent around 1 % of available funds (contributions plus interest income).
Cash held by the Bank which is not immediately required for project purposes is placed in the Bank’s
deposits on the basis of guidelines approved by the Assembly. Interest income from these
placements is paid back to the Funds in full. Cumulative income on liquid assets amounts to almost
100 million EUR. Net income, minus administrative costs, is therefore in the order of 75 million EUR.
The operations of the Bank as Fund Manager have been the subject of a number of external
performance and financial audits, as well as an internal audit, none of which found any serious
performance, system or quality control deficiencies.
Relations between EC and EBRD
The EC and the EBRD have been working closely together since the inception of the Funds during the
accession negotiations with Bulgaria, Lithuania and the Slovak Republic. The EC, as by far the largest
donor, has chaired the Assembly from the beginning. The Secretariat obviously has a particular close
working relationship with the Chairmen and their staff. In addition, the Bank recognizes the particular
role of the EC in these Funds, to which it provides significant contributions (overall more than 2 billion
EUR to date) representing more than 95 % of all contributions.
Bilateral co-operation ranges from informal day-to-day exchanges of information to formal meetings
of the Joint Steering Committees. The Bank keeps the EC informed of any relevant developments in
the programs, supports the EC in its missions to the recipient countries, and supports any specific
requirements the EC may have (reports to the European Parliament, audits by the European Court of
Auditors, OLAF and others). The EC and the EBRD hold regular meetings ahead of Assembly meetings
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