MOST INFRASTRUCTURE projects funded by the European Bank for Reconstruction & Development have helped boost the economies of eastern Europe over the last 10 years, according to a report released by the bank last week.
Some 80% of infrastructure schemes are rated as having had medium to high impact, with a further 10% showing limited but positive results.
The EBRD was launched 10 years ago by western European governments eager to promote the development of free market economies in the former communist states of eastern Europe.
It has so far financed projects worth over £31bn.
The EBRD's projects have been most successful where private sector, international financial partners are involved, the report states.
'Restructuring of enterprises with local sponsors has been impeded by insider management control, government influence and social constraints.
'Projects with local sponsors and managers have also typically been unable to meet the challenges of a fast changing operating environment. Close EBRD involvement was generally not sufficient to overcome these problems.'