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Financing Development

The Cotonou Agreement mandates the EIB to provide reimbursable aid to projects, alongside grant aid from the European Commission. It was signed for a 20 year period with successive financial protocols defining the aggregate amount of Community aid to the ACP states for each period.

2003-2007 Financial Protocol

The 2003-2007 protocol comprises EUR 13.5 billion contributed by the EU Member States from the ninth European Development Fund (EDF). EUR 11.3 billion of this is grant aid channelled through the European Commission.

The remaining EUR 2.2 billion is managed by the Bank as follows:  

  • EUR 2.037 billion allocated to finance the Investment Facility, a risk-bearing revolving facility geared to foster private sector investment in the ACP region
  • EUR 187 million as an interest rate subsidy appropriation. This will be used for projects presenting strong social and/or environmental benefits or in order to increase loan concessionality for public sector infrastructure projects in countries subject to restrictive borrowing conditions under the Heavily Indebted Poor Countries Initiative (HIPC) or other similar schemes.

The above EDF envelopes managed by the Bank are supplemented by EIB own resources of EUR 1.7 billion and EUR 20 million for the ACPs and the OCTs respectively. This finance is made available on a best efforts basis. A EUR 20 million OCT Investment Facility also exists, funded by the EU Member States.

2008-2013 Financial Protocol

The second financial protocol of the Cotonou Agreement will become effective upon ratification of the revised Cotonou Agreement, signed in June 2005 in Luxembourg.

Contributions by the Member States under the tenth EDF total EUR 22 billion. EUR 20.5 billion of this will be grant aid channelled through the European Commission.

The remaining EUR 1.5 billion the balance comprises:

  • an additional EUR 1.1 billion capital contribution to the Investment Facility
  • a EUR 400 million appropriation for interest subsidies & technical assistance.

In addition, up to EUR 2 billion will be available in the form of loans from the EIB's own resources.

The OCT Investment Facility will be increased to EUR 30 million to which should be added up to EUR 30 million available from the Bank’s own resources.