- EBRD, WBG seek to enhance cooperation with MOU
- Key focuses are climate, connectivity, Ukraine and private sector
- Institutions to further engage on common goals, joint projects
The European Bank for Reconstruction and Development (EBRD) has signed a memorandum of understanding (MOU) with the World Bank Group (WBG) in a bid to enhance their collaboration and respond to global challenges together more effectively. The EBRD has developed strong institutional ties, including through project cofinancing and policy coordination, with all members of the WBG - the IBRD, IFC and MIGA. Today’s MOU intends to bring this partnership to the next level.
Recent global crises such as Covid and the war on Ukraine have required multilateral development banks (MDBs) to deepen their role in global economies and further explore areas of cooperation that can benefit the regions in which they commonly operate.
The MOU serves to build on the existing sound collaboration between the EBRD and the WBG by joining forces to tackle some of the pressing global challenges, and identifies four key areas of cooperation: climate, connectivity, economic resilience and recovery in Ukraine and private sector engagement.
Odile Renaud-Basso, President of the EBRD, welcomed the MOU, saying: "At a time when the world is facing multiple global crises, it is vital for international financial institutions, such as ours, to join forces in support of our clients and countries of operations.”
“A better, bigger and more effective MDB system to facilitate access to MDB lending and support country-led priorities, to reinforce MDB financing capacity, and to maximize MDB development results and impact, is not an option, it is a must.”
"This Memorandum of Understanding marks another important step in further strengthening the already fruitful collaboration between the EBRD and the World Bank Group.
"It will allow us to maximise the impact of our work in areas of key importance to us and our clients -such as climate and connectivity- and to demonstrate that together we can achieve even more."
Ajay Banga, President of the World Bank said: “Across multilateral development institutions there is a purposeful effort underway to maximize our capacity to deliver results. We specialize when needed, work together as a united front where possible, and search constantly for areas of collaboration. The focused partnership the World Bank Group and EBRD have developed will bring together the best of both institutions to support the energy transition, private sector investment, and lays a foundation for Ukraine’s recovery.”
On Ukraine, the EBRD and the WBG will continue supporting the country by jointly working on investments and technical cooperations which will aim to bolster its economic resilience, institutional capacity, emergency recovery and reconstruction.
With climate, the institutions seek to promote a sustainable energy transition in their joint regions, whilst also supporting connectivity through energy and trade.
The final focus of the MOU is the private-sector co-financing, where the two institutions will aim to deliver greater efficiency and effectiveness through working together.
Through the MOU, the EBRD and the WBG will engage on shared goals, leverage on complementarities and strengthen the pipeline of joint projects for greater impact on the ground.
The EBRD’s mandate carries a transition focus, promoting the development of sustainable and private sector-led economies across its countries of operation, whereas the WBG identifies its mission as ending poverty and boosting prosperity for a liveable planet.
In 2023, the EBRD delivered a record €13.1 billion in investments across its economies, in a year of significant milestones for the Bank, reporting record volume and number of investments, green financing, disbursements and support to the private sector.
