EBRD Environment and Climate Fund II: WB & EaP

The objective of the contribution is to improve sustainable services in the areas of water supply, wastewater management, solid waste management, energy efficiency, district heating, renewable energy and urban public transports. The contribution aims to support the countries in their EU-integration/EU-approximation process, to reduce negative environmental and climate change impact, to increase sustainable use of natural resources, to introduce institutional reforms and to increase households access to good public services. The contribution is a cooperation between Sida and the European Bank for Reconstruction and Development (EBRD) and represents a phase 2 of a programme that started in 2010. The phase 2 contribution was agreed in Novemebr 2014 with a support of 100 MSEK and is not extended with a replenishment of 30 MSEK. The contribution is regional and includes the countries in the Western Balkans and in Eastern Europe. It is a "programmatic trust fund", whereby the projects are identified and approved with a no-objection procedure from Sida. Sida´s support can be used for technical assistance or for investment grants. All the projects with support from Sida are part of a larger investment package with loans from EBRD and often also with more financiers. Sida´s contribution is used to address affordability constraints, to introduce higher environmental/energy requirements and to ensure institutional reforms. Results will be reported on per project and in the form of number of persons benefiting from improved services, reforms introduced in the utilities etc. The programme is relevant from a poverty perspective since the grant allocation to the investments is justified through an affordability analysis reltated to the ability of the pooer segments of the population to be able to pay for basic municipal services. Access to affordable municipal services like water and wastewater, solid waste, heating and public transport are key to be able to get out of poverty but also contribute to an enabling environment for economic growth. Consultancy services for implementation support and project preparation will ensure projects are developed to give universal access to ssuch services and that discremination against poor through e.g. misuse of funds are avoided.