Through the Investment Facility for Central Asia (IFCA), the European Union backs the priorities of partner governments in the Central Asian region and supports them in undertaking priority investments contributing to inclusive and sustainable growth. The Facility aims at leveraging funds with eligible Financing Institutions for such investment projects.
The Investment Facility for Central Asia (IFCA), set up in 2010 as part of the Development Cooperation Instrument (DCI), is one of the instruments to support the EU Strategy for Central Asia.
The Facility intervenes in cases where the regular market fails to offer sufficient or affordable financing which may hinder the timely realisation of high priority investment projects with the potential to promote inclusive and sustainable socio-economic development.
Similar to the other EU blending facilities, AIF acts as a catalyst to pool resources and improve the coordination and coherence of donor actions, thus conforming to the principles of ownership, partnership and shared responsibilities set out in the Paris Declaration on Aid Effectiveness and the subsequent Accra Agenda for Action and Busan Partnership Agreement.
The following partner countries are eligible for support from IFCA: Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan. The Facility can also finance regional projects covering two or more of the above countries.
The contribution of the European Commission to IFCA is decided annually and the resources are made available from the EU’s Development Cooperation Instrument (DCI). The European Commission allocated to IFCA for the period 2010-2015 an overall amount of €145 million.
In line with the objectives of the Regional Indicative Programme 2014 – 2020 for Central Asia, IFCA's main objective is to contribute to sustainable regional development and economic growth.
Consequently, IFCA finances projects with the following aims:
- Better energy infrastructure
- Increasing protection of the environment and better focus and control of climate change impacts
- Creation and growth of SMEs and improvement of the employment situations
- Improving social services and infrastructure, including health and education.
In addition, IFCA may support the implementation of bilateral Indicative Programmes in the region.
IFCA provides its support through:
- Investment grants
- Technical assistance
- Risk capital and other risk sharing instruments
IFCA sets up partnerships, using grant resources from the EU to leverage and pool financing from multilateral and bilateral European Finance Institutions (such as AFD, CDP/SIMEST, EBRD, EIB or KfW), Regional Development Banks (such as the ADB) as well as the WB, partner countries and beneficiary institutions in Central Asia.
For the period 2010-2015, 22 projects were approved for grant financing of €119 million, representing total financing from the Finance Institutions of approximately €553 million and total investment budget of approximately €830 million. The leverage effect of IFCA grants was thus in the range of 1:7.
More information can be found in the Facility's 2015 Operational Report
The list of IFCA financed projects can be found here.
For further information you can contact DEVCO IFCA.