Moscow, October 25, 2017 – In Q3 2017, multilateral development banks (MDBs) approved CIS project financing for a total of US$ 1.5 billion, including 60% of sovereign funding and 40% of private sector funding.

In Q3 2017, investment project financing originated by MDBs in the CIS private sector decreased 1.6 times quarter-on-quarter to US$ 613 million. Four MDBs (EDB, EBRD, BSTDB, EIB) approved funding for 18 projects. The EDB accounts for the bulk of newly approved funding (US$ 365 million, or 60%) which will be used to finance 6 projects.

The largest private sector project (28% of total approved and signed operations) is RUB 10 billion (US$ 174 million) EDB credit to Highway Construction Corporation LLC for the construction of the Central Ring Motorway (CRM-3) on the basis of a public-private partnership.

Generally, the largest share of private sector projects (33% of total approved and signed Q3 2017 operations) is to be implemented in the financial sector, where total MDB credits amount to US$ 200 million. The largest transaction is the extension by the EDB of a US$ 92.06 million investment credit to TransFin-M to finance the purchase of BELAZ quarry lorries. Upon completion of the project, TransFin-M will be able to provide full-cycle logistical services related to extraction and transportation of coal from the coal strip mine to the railroad station.

The largest share of approved and signed private sector projects is attributable to Russia (48%, three projects) and Kazakhstan (32%, four projects). The EDB has become the largest investor in Russia and Kazakhstan, with three and two projects, respectively. In Ukraine, three projects were approved and signed for a total of US$ 62 million (10%). In Moldova (6%), total funding amounted to US$ 34 million (two projects). One US$ 10 million project was signed in Armenia (2%).

WB Group members – IBRD and IDA, ADB, IDB, EBRD, NDB – approved financing for 12 projects, including special sovereign loans to governments, technical assistance and grants with a total funding amount of US$ 925 million.

In Q3 2017, the largest share of sovereign funding went to the public governance sector (57%), where total investments amounted to US$ 531 million.

Russia was the largest recipient of MDB sovereign funding in the CIS in the form of a US$ 460 million NDB credit (50% of total funding) to finance a judicial system improvement project. In Turkmenistan (29%), investments are represented by an IDB telecommunication loan. In Belarus (13%), the bulk of funding is represented by WB Group and EBRD loans to the financial sector (US$ 60 million and US$ 59 million, respectively). In Tajikistan (5%), WB Group extended a US$ 50 million loan to finance a public governance project.

New sovereign funding provided by MDBs in Q3 2017 has decreased 1.3 times quarter-on-quarter.

The full report is available online (in Russian)

Additional Information:

The review focuses on Q3 2017 financing approved by multilateral development banks (MDBs) for CIS countries, including Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

The review is prepared on the basis of information published on official web sites of international financial institutions: the Asian Development Bank (ADB), the Eurasian Development Bank (EDB), the Eurasian Stabilization and Development Fund (ESDF), the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the European Investment Bank (EIB), the Islamic Development Bank (IDB), the Nordic Investment Bank (NIB), the Asian Infrastructure Investment Bank (AIIB), the International Investment Bank (IIB), the International Economic Cooperation Bank (IECB), the New Development Bank (NDB), and the World Bank Group which consists of the International Finance Corporation (IFC), the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).

The approved financing analyzed in the review is divided into two types: private sector projects, and grants, special sovereign loans and technical assistance provided through the public sector.

Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

EDB Media Center:

+7 (727) 244 40 44 ext. 6147 (Almaty)
+7 (495) 645 04 45 ext. 2732 (Moscow)
e-mail: pressa@eabr.org

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