The EBRD Project Cycle: A Primer

Established in 1991, the European Bank for Reconstruction and Development provides financing to banks, industries, and publicly owned companies to help support the creation of a stronger private sector in countries in Central Europe and Central Asia. Through its investments, the EBRD supports the implementation of reforms, privatization and entrepreneurship, with a specifial focus on strengthening public and corporate governance, financial institutions, infrastructure and the environment. The EBRD’s large projects are usually for the private sector and are commonly worth euro5 million (US$ 6.3 million) to euro250 million (US$ 316.9 million). Smaller projects normally target early transition countries and may be financed directly or by means of financial intermediaries such as local commercial banks, micro-business banks, equity funds and other leasing facilities. The duration of the project cycle, from initiation to repayment, can range from one to 15 years, depending on the type of project. Successful project proposals usually take 3-6 months to get approved and result in a signed contract.