Poverty and Tourism - European Bank for Reconstruction and Development (EBRD)

Donor: 
Any donor
International Finance Institutions
Geographical focus: 
Global
Europe
Thematic focus: 
Tourism in general
Infrastructure in Tourism
Trade, Investment and Competitiveness in Tourism
Intro text: 
Poverty and Tourism Sector. The EBRD helps businesses flourish. Through their financial investments, business services and involvement in high-level policy dialogue, EBRD is well-placed to promote entrepreneurship and change lives.

Official website

http://www.ebrd.com

Geographic focus

  • Central and South-Eastern Europe and Western Balkans
  • Russia
  • Southern and Eastern Mediterranean
  • Turkey, Eastern Europe, Caucasus and Central Asia

Who can apply?

All legal persons, for projects that are located in an EBRD country of operations.

Objectives and activities

Objective: The EBRD is committed to furthering progress towards ‘market-oriented economies and the promotion of private and entrepreneurial initiative’.

Activities: The activities of the Property and Tourism Sector support the development and renewal of the real estate infrastructure in the Bank’s countries of operation. The provision of modern real estate infrastructure is essential to support the region’s economic expansion and diversification. Through its involvement in property and related markets, EBRD aims to redress the fundamental undersupply of modern, high-quality, energy efficient commercial, logistics and residential real estate in our region.

Examples of tourism-related activities eligible for funding:

  • New hotels provide suitable accommodation and in the tourism industry, new assets add directly to the service economy.
  • A loan to support the construction of a new domestic terminal at Dalaman Airport (Turkey, 2014).
  • A loan for the development and operation of an institutional-quality shopping mall in Skopje, FYR Macedonia (2011).

Type and level of funding

The Bank’s immediate priority is therefore to back financially viable projects whose development has been interrupted by a withdrawal of financing, particularly in regard to its existing clients. Type of funding: financial assistance is provided in the form of loans, equity investment and guarantees.

Level of funding: the average annual budget for the Property and Tourism Sector amounts between EUR 150 million and EUR 250 million. The total lifecycle of an EBRD project, from initiation to repayment, can range from one year for working capital or trade financing projects to 15 years for long-term sovereign infrastructure projects.

The EBRD’s Operations Committee (OpsCom)* approves the project concept and overall structure, including the proposed financing structure and supporting obligations. At this stage, the EBRD and the client sign a mandate letter, which outlines the project plan, development expenses and responsibilities.