Strategic Moves - Regional Environmental Center for Central and ...

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C H A P T E R 7
F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S
S T R AT E G I C M O V E S
General observations
• PPFs are used by the EC and IFIs to fund technical assistance for the preparation
of a pipeline of sound infrastructure projects and to promote them to financiers.
• The activities of the Environmental Project Preparation Facility resulted in significant
beneficial impacts for project proponents, good-quality pre-feasibility and
feasibility studies, and subsequently a strong project pipeline for future funding.
• The Infrastructure Project Facility supports infrastructure project preparation and
builds project pipelines in the energy, transport, environment and social sectors.
• In 2008, the EC and partner IFIs initiated the Western Balkans Investment
Framework, to be launched by 2010. In addition to infrastructure, the WBIF
will provide support to investments in other sectors such as the private sector
(including SMEs) and energy efficiency.
Regional cooperation frameworks
Regional cooperation is vital in SEE for a number of reasons. Firstly, it is essential
to ensure peace and stability and to create good relations between neighbours
following the recent history of conflict. Established regional relations are both a tool
and a prerequisite for moving towards EU integration. Secondly, tackling transboundary
issues such as the mitigation of environmental pollution and the development
of infrastructure, as well as the strengthening of disaster preparedness and
prevention, should inevitably be addressed on a regional level. Thirdly, regional cooperation
is essential in order to create a fruitful climate for investments in SEE.
Donors and IFIs often follow a regional approach in programming, which expands
the investment market and makes it more interesting for investors. In conclusion, cooperation
across the SEE region is an essential element of a successful reform process,
allowing SEE regional actors, such as the Regional Cooperation Council (RCC), to
play an important role in creating local ownership of the process. Although regional
cooperation in SEE has improved, the efficiency of regional structures and initiatives
also needs improvement (EC COM [2009] 533). Moreover, by facilitating the exchange
of experience and best practices and by introducing new methodologies, regional
initiatives can promote effective financing for the environment.
Some of the major IFIs have developed cooperation frameworks in order to coordinate
activities in project financing as well as to provide technical assistance for project
preparation. Key initiatives relevant to the SEE region are presented below. This
section also contains an overview of donor coordination initiatives in the region.
The IFI Advisory Group (IFI-AG) has emerged from the experiences of the Infrastructure
Steering Group (ISG) that was set up in 2007 under the auspices of the
Stability Pact. The AG supports the overall cooperation between IFIs and the EC
in the candidate and potential candidate countries, including cooperation under
the IPA. In particular, the objectives are to enhance strategic views aligned with
the EU integration objectives of the IPA countries; to address the development of
national infrastructure; and to extend participation to include actors present in the