Promoting investment through the Neighbourhood Investment Facility (NIF)
The Neighbourhood Investment Facility (NIF) is financial mechanism aimed at mobilising additional funding to cover the investment needs of the EU Neighbouring region for infrastructures in sectors such as transport, energy, the environment and social issues (e.g. construction of schools or hospitals). The NIF also supports the private sector particularly through risk capital operations targeting Small and Medium-sized Enterprises.
The Neighbourhood Investment Facility (NIF)
The NIF has been designed to finance capital-intensive infrastructure projects in partner countries covered by the European Neighbourhood Policy (ENP) as well as to support their private sector. The Facility brings together grants from the European Commission and the EU Member States with loans from European public Finance Institutions, as well as own contributions from the partner countries.
In doing so, the European Union backs its neighbours' priorities and supports them in carrying out necessary investments for the future. This will have a significant positive impact on their population as well as on European citizens given our common interests in stability and welfare.
By pooling different resources, the NIF plays a key role in donor coordination and increasing aid effectiveness in accordance with the Paris Declaration and the Accra Agenda for Action. In addition, the NIF supports the implementation of regional and multilateral processes, in particular the Union for the Mediterranean, the Eastern Partnership and the Black Sea Synergy.
For the 2007-2013 period, the European Commission has earmarked a total amount of €767 million for the NIF, which are complemented by direct contributions [81 KB] from Member States kept in a trust fund managed by the European Investment Bank. To date, the NIF contributes €678.9 million to infrastructure and private sector projects, leveraging a total project volume of more than €19.3 billion.
A mid-term evaluation [4 MB] of the NIF was concluded in May 2013, covering the period 2008-2011. The Operational Board approved in July 2013 the fiche contradictoire [94 KB] on the mid-term evaluation's recommendations.
Projects under Final Approval
Once projects have been granted final approval, the requested NIF grant element can be disbursed. You find a short description of the projects with final approval at the following links:
Projects under Provisional Approval
Projects that have been granted provisional approval are taken into consideration for final approval by the NIF Board, but are considered not yet mature enough for final approval. A provisional approval does NOT result in any financial or legal committment of the European Commission or the Financial Institutions.
You may find a list of projects with provisional approval here [19 KB] .
How the NIF operates
To benefit from the NIF, a project has to be submitted by one of the following European Public Finance Institution recognised by the NIF Board as "eligible":
- European Investment Bank (EIB)
- European Bank for Reconstruction and Development (EBRD)
- Council of Europe Development Bank (CEB)
- Nordic Investment Bank (NIB)
- Agence Française de Développement (AFD)
- Kreditanstalt für Wiederaufbau (KfW)
- Oesterreichische Entwicklungsbank AG (OeEB)
- Società Italiana per le Imprese all'Estero (SIMEST)
- Sociedade para o Financiamento do Desenvolvimento (SOFID)
- Agencia Española de Cooperación Internacional para el Desarrollo (AECID)
The Secretariat of the NIF is in charge of organising the NIF Board meetings and of implementing its decisions. It is located within the Commission (Unit EuropeAid C3 "Financial Instruments" - Sustainable Growth and Development) responsible for coordinating all the regional investment facilities managed by EuropeAid.