The FEMIP Trust Fund (FTF)
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The FEMIP Trust Fund (FTF) is an instrument that complements the Bank’s activities in the Mediterranean region by financing upstream technical assistance, regional studies and targeted risk capital operations supporting innovative private sector companies. Established in 2004, it is a multi-donor, multi-purpose and multi-sector fund which focuses on four priority sectors for the period 2014-2020:
- Finance and SMEs
- Human capital and research, development and innovation
Enhanced support is provided through a dedicated Impact Financing Investment envelope, to foster private sector development, and the CAMENA climate action envelope, to help Mediterranean Partner Countries tackle climate change. FTF also supports the FEMIP Internship Programme and the FEMIP Secondment Programme.
Governance: FEMIP Trust Fund Assembly of Donors (AoD)
The Assembly of Donors Committee serves as an advisory and decision-making body for the FTF, by providing guidance on the Fund’s strategy and orientations, and by approving financing proposals.
The Committee consists of representatives of the EU Members States and of the European Commission that have signed a Contribution Instrument with the Bank.
Click here to view its Rules relating to the Establishment and administration and Procedure as well as the list of members of the FEMIP Trust Fund AoD.
Countries currently eligible for FTF support are Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestine* and Tunisia. Cross-border or regional projects are also welcome.
FTF is based on the following guiding principles:
- Complementarity with existing EIB mandates and instruments
- Innovation in proposals with high added value to the Mediterranean Partner Countries
- Catalytic impact by encouraging further assistance and development in supported areas
- Ownership of beneficiary countries eligible for FTF support pursuing their needs and priorities
- Cost-sharing with final beneficiaries
- Flexibility in responding rapidly to the needs and emerging challenges in the region
Types of FTF support
FTF support is available in the form of:
- Technical assistance to finance upstream activities such as studies, project preparation/implementation work or capacity building in different domains, including regulatory and institutional reform. This may also include assistance in relation to democratic transformation and transition needs, as aligned with EU policy objectives, and complementary to the initiatives by the European Commission and the European External Action Service for the economic transition priorities agreed with the Mediterranean Partner Countries.
When tendering for services under the FTF, the EIB’s procurement rules for technical advisory activities apply.
- Risk capital operations such as private equity or guarantees to support the private sector
Participation in the Trust Fund enables donors to contribute directly to activities in the Mediterranean Partner Countries. The current donors of the FTF are:
As of November 2016, the FTF has approved 69 operations (net of cancellations) for a total value of EUR 43.7 million. 77% of the approved amounts are related to technical assistance operations while 23% are linked to risk capital operations. The full list of approved operations is available in the latest Annual Report.
Examples of approved operations
Debt fund for innovative and social investments in the Mediterranean region
CoopMed is a pilot project consisting of small private sector investments pursuing specific development, innovation and social objectives. It will provide stable long-term financing, mainly in the form of subordinated loans, to microfinance institutions (MFIs) and other financial intermediaries, with a view to strengthening their funding structure and encouraging them to expand their lending activity to the benefit of microenterprises, cooperatives, social economy enterprises and economic initiatives led by NGOs.
The transaction is the second operation financed under the Impact Investment Financing envelope of the FTF with an amount of EUR 2 million.
Railway feasibility study and environmental and social impact scoping in Morocco
The introduction of a railway connection between Tanger and Tetouan, part of the Melloussa-Tetouan line, is essential for improving regional cohesion and connectivity. It will also help reduce the environmental impact of transport, which is currently almost entirely road-based. The project is expected to lead to lower levels of CO2 emissions and other air pollutants, and should help to reduce transport accidents and noise.
The FTF is supporting the project in its preparation phase through the CAMENA climate action envelope by financing a high performance railway feasibility study with a technical assistance grant of EUR 550 000.
Technical assistance to modernise critical road infrastructure in Tunisia
The technical assistance to the promoter of a road modernisation project in Tunisia (Modernisation Routière I – II and Voiries Prioritaires V), financed by the FTF with EUR 2.1 million, aims to provide targeted support, including transfer of knowledge to the project implementation unit within the promoter, in order to optimise monitoring of projects, particularly in relation to environmental and social aspects.
The TA will thereby strengthen national capacities in road infrastructure project management. It will also contribute to achieving the country’s transport strategy to provide better access to the main cities and regions, and to reduce road congestion and accidents.