The EIB REsults Measurement (REM) Framework
The EIB is active in over 150 countries, lending to projects to support EU external cooperation and development policies. In 2011, EU institutions approved the revised External Mandate governing EIB lending outside the EU and asked the Bank to further strengthen its assessment, measurement and reporting on the results and impacts of its operations. In response to this the EIB has introduced a new framework to replace the existing Economic and Social Impact Assessment Framework (ESIAF).
The REsults Measurement framework (REM), to be gradually implemented in 2012, will improve the ex-ante assessment of expected project results and enhance the Bank’s ability to report on actual results achieved.
The new framework will harmonise, to the extent possible, results indicators with other International Financial Institutions and thereby simplify client reporting requirements for co-financed operations. The Bank is engaged in a working group that brings together International Financial Institutions and European Development Finance Institutions and aiming to harmonize sector-specific results indicators for private sector operations.
Building on the three-pillar methodology previously used in the ESIAF, the REM framework serves to show how EIB loans or equity participations - generate outputs, which enable outcomes and, over time lead to impacts, which are in line with the Bank’s mandate objectives. The intention is to better assess and be able to report on the Bank’s contribution to mandate objectives by focusing on concrete results.
Water Project Example
|Loan and/or technical assistance||Water sanitation and distribution facility||Improved access to water||Reduced child mortality, lower health costs||Development of social infrastructure|
|Pillar 1||Pillar 2||Pillar 3|
An assessment of a project’s consistency with EIB mandate objectives as well as its contribution to EU priorities and country development objectives, going beyond the current focus on eligibility alone.
A series of sector-specific standardized indicators to capture economic, social, environmental and institutional outcomes of the project. It will also continue to measure project quality and its ability to achieve the expected results.
An assessment of the EIB additionality over market alternatives in terms of financial product, technical, structuring and sector contribution and standards and assurance.
The three pillars address three separate project dimensions, which cannot be compared with one another. They will be rated independently, and no overall aggregated project rating will be given.
Pillar ratings will be based on a qualitative 4-point scale. Ratings are based on a series of objectively measurable indicators and guidelines. Moreover, a process of quality control will ensure that all ratings are checked for consistency across operations
Reporting on results will require appropriate aggregation of indicators across the entire portfolio where this is possible, or across a given sector (eg energy distribution). This has led to the definition of standardized core indicators for the entire portfolio and for different sectors.
These indicators have been developed in close collaboration with the EIB’s independent division responsible for ex-post evaluation of the Bank’s operations. They will be measured throughout the project cycle at appraisal and during monitoring until the project is fully implemented, operational and the first development outcomes are measurable - typically up to three years after project completion. They will, to the extent possible, also be used for ex-post evaluation.
REM for development effectiveness
The framework is designed to be flexible enough to reflect differences in regional economic and social environments, to align in the future with changing demands and to remain useful internally, as a learning tool. The Bank will continuously work on improving the results measurement framework to contribute in a more meaningful manner to development effectiveness both internally and in its relations with its European and IFI development partners.