Through the Investment Facility for the Pacific (IFP), the European Union backs the priorities of partner governments in the Pacific 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 IFP was launched in May 2012 and responds to the need to support investment projects in the Pacific region in order to boost economic growth and reduce poverty, and to address climate change challenges. Funded under the European Development Fund, the IFP is designed to particularly promote “green” investments.
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, IFP 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.
IFP contributions support investments in projects located in the Pacific region namely: the Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga, Tuvalu and Vanuatu. Regional operations are also eligible.
The IFP resources come from the European Development Fund (EDF), the EU’s multiannual funding instrument to support countries in the African-Caribbean-Pacific (ACP) group. For the period 2012-2015, the European Commission allocated from 10th EDF intra-ACP resources an overall amount of €10 million. For the new 11th EDF programming period 2014-2020, the European Commission doubled the indicative allocation for the IFP to €20 million.
During the 10th EDF, the IFP was designed to finance projects in "green" infrastructure, sustainably energy, climate change adaptation, environmental protection, private sector development and improved delivery of social services.
The 11th EDF IFP is financed from the Regional Indicative Programme for the Pacific and aligned with Priority Area 1 and 2 of the Regional Indicative Programme 2014-2020, more specifically:
- Regional Economic Integration (i.e. trade and private sector development) Sustainable Management of Natural Resources and the Environment (i.e. sustainable fisheries and waste management)
IFP provides its support through:
- Investment grants
- Technical assistance
- Risk capital and other risk sharing instruments
The final beneficiaries of IFP are the Pacific ACP countries which participate in the ACP-EU Partnership Agreement, either directly or indirectly through their central, regional or local administrations or semi-public institutions.
IFP 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, EBRD, EIB, KfW), as well as Regional Development Banks (such as the ADB) together with contributions from partner countries.
IFP is liaising closely with the Pacific Region infrastructure Facility (PRIF), a regional multi-partner coordination and financing mechanism in which the European Commission and the European Investment Bank have participated since 2010. PRIF plays an important role in coordinating the development of better infrastructure services in the region.
Launched in May 2012, the IFP granted approval for two EIB-led operations fully allocating the available IFP resources of €10 million for the period 2012-2014.
These operations are:
- Technical Economic Feasibility Study for Lower Ba Hydropower Development (Fiji)
- Project Preparation & Implementation Programme for Timor-Leste (PPI Programme)
More information can be found in the Facility's 2016 Operational Report
For further information you can contact DEVCO IFP.