EIB agreement underlines FIDIC influence with MDBs

The signing of a cooperation agreement with the European Investment Bank (EIB) is the latest in a long line of MoUs FIDIC has signed with the global multilateral development banks.

In May, FIDIC signed a five-year memorandum of understanding (MoU) with the European Investment Bank (EIB) to foster cooperation on a range of shared objectives and on effective procurement and contract management.

The EIB agreement is the latest in a series of MoUs that FIDIC has signed with MDBs worldwide and taken together these agreements will raise the profile and use of FIDIC contracts globally, ensuring greater transparency and upholding high social and environmental standards in the implementation of infrastructure projects.

FIDIC has now signed agreements with the vast majority of the key MDBs around the world and this will see FIDIC contracts being referred to and included in many of these banks’ standard bidding documents for projects that they finance. This represents a big vote of confidence in FIDIC’s contracts as it shows that the banks endorse the fair and balanced approach that these documents offer to parties on major construction contracts.

The agreement between FIDIC and the EIB will see both organisations collaborate across a number of key areas and activities, including increasing dialogue and expert meetings between both parties, promotion of knowledge-sharing and cross institutional learning, participation in key working groups and training courses relating to the use and application of the FIDIC documents, participation in FIDIC’s multilateral development banks (MDBs) advisory group, involvement in FIDIC training programmes for MDBs and FIDIC contract users and participation in FIDIC conferences and webinars.

Commenting on the agreement signed with the EIB, FIDIC chief executive Dr Nelson Ogunshakin said: “I am absolutely delighted that FIDIC has signed this landmark agreement with the EIB and that our two organisations will be working closely on areas of mutual interest. The EIB is the largest multilateral financial institution in the world and the MoU we have signed is a big boost for FIDIC and its members, the EIB, international consulting and engineering firms and also the wider global construction sector. We are really looking forward to working with EIB and to building our partnership over the next five years.”

In the past year, FIDIC has signed similar agreements with the Islamic Development Bank, the International Fund for Agricultural Development and has recently expanded its agreement with the World Bank to include the FIDIC Emerald Book form of contract for

tunnelling and underground works. Previous agreements also signed with a number of international contracting organisations including some in China, will further widen the influence and use of FIDIC contracts on the global stage. Highlighting how well regarded FIDIC contracts are by international funders, the comments of Ricardo Mourinho Félix, EIB vice-president, are particularly instructive. “I am delighted to sign this MoU between EIB vice-president Ricardo Mourinho Felix and FIDIC CEO Dr Nelson Ogunshakin at a virtually held signing ceremony. the European Investment Bank and international engineering federation FIDIC. This deepens our cooperation to strengthen high standards around procurement. Ensuring transparency, preventing corruption and upholding high social and environmental standards are essential key elements for projects backed by the EIB. We take this extremely seriously and this partnership is part of this commitment.”

EIB vice-president Ricardo Mourinho Felix and FIDIC CEO Dr Nelson Ogunshakin at a virtually held signing ceremony.