Understanding and describing significant indirect economic impacts, including the extent of impacts

Understanding and describing significant indirect economic impacts, including the extent of impacts

• Reference Number: EC9
• Related Status: Reported
• GRI Status: Core GRI Indicator

The Projects Directorate (PJ) is an independent directorate that contributes to work upstream of project appraisal, by helping the Operational Lending Directorates to identify possible projects with potentially high added value. In this context, PJ can also contribute to modifying or improving the technical and economic definition of these projects in order to achieve the best fit between the Bank’s criteria and the needs of the project.

In the appraisal, project analysis focuses on such issues as eligibility, technology, procurement, the environment, market and demand, the institutional framework, promoter capability, investment cost, economic and financial profitability and risks. PJ provides a formal opinion on project quality based on these aspects. The directorate also contributes to the formalisation and finalisation of the finance contract focusing on the conditions essential for ensuring successful project completion in line with EU regulations on procurement and the environment and sustainable delivery of the benefits that underpin the investment rationale.

The Operations Evaluation Division (EV) performs independent and systematic ex post and on-going evaluation of the operations, mandates and strategies implemented by the EIB Group. The purpose of evaluation is to contribute to improving the accountability, transparency and operational performance of the EIB Group. The mandate covers public and private sector operations, all types of instruments implemented by the EIB Group, and related policies and strategies. EV assesses the quality, results and impacts of past and on-going activities, draws lessons and provides recommendations to be implemented in new activities.

EV applies international best practice and adheres to the principles established by the Evaluation Cooperation Group (ECG) and the Evaluation Network of the OECD-DAC. The ECG was established by the Heads of Evaluation of the Multilateral Development Banks (MDBs), to harmonise performance indicators and evaluation methodologies between those organisations.
EV’s thematic evaluations cover topics of relevance to the EIB Group which can be (i) sector-specific (e.g. trans-European networks, energy efficiency), (ii) a (financial) product (e.g. SME global loans, framework loans), or (iii) mandate-related (e.g. external mandates, JASPERS). The thematic evaluation report is shared with civil society via the EIB Group’s website. Each thematic evaluation is usually based on a sample of 20-25 in-depth evaluations of individual EIB operations.

Individual operations are assessed following four standard, internationally agreed, evaluation criteria, i.e. relevance, effectiveness, efficiency and sustainability. Given the specific mandate and interests of the EIB Group, the EIB’s (or EIF’s, if applicable) contribution and management of the project cycle are also assessed. The social, economic and environmental impacts (or lack thereof) of each operation are systematically addressed.