Syria Today | Q&A: Philippe Lecrinier

Q&A: Philippe Lecrinier
Director of L’agence Francaise du Developpement (AFD) - Damascus Agency

By Nouna al-Dimashqiya
Photo Carole al-Farah

What is AFD?

L’agence Francaise du Developpement is a development finance institution which is considered a public institution in France. We are essentially a French development bank with a primary focus on sustainable development, as opposed to what we could call humanitarian development or emergency aid. We are present in more than 50 countries around the world, all of which have a strong and often special relationship with France.

Who are AFD’s partners in Syria?

AFD works in Syria with sister organisations. In other countries we have established partnerships with the European Investment Bank (EIB), KFW Bankengruppe [a German development bank] and the Aga Khan Foundation. We are excited to be able to establish projects in Syria with these three main partners. Aga Khan shares our appreciation for development issues in quite a complementary way, especially with their successful microfinance programmes. On the Syrian side, the State Planning Commission serves as our interface. We also aim to partner directly with ministries, municipalities and local administrations on individual projects. At the moment, the pending Association Agreement between Syria and the European Union is a factor in our work. If the agreement is indeed signed, it will increase the potential, capacity and diversity of future partnerships, as well as financial support.

What are AFD’s long-term goals in Syria?

AFD’s main goal in Syria is the transformation of the economy, specifically the expansion of Syrian markets into new sectors. AFD would like to partner with Syria in its programme of diversifying the economy and increasing exports. For example, we would like to contribute to increasing transportation activities and networks, something which could see the port of Lattakia become a major hub for the exchange of goods between the north and south, connecting Iraq to the northern Mediterranean region. We are interested in ongoing reform in the right direction. This includes supporting the development of a proper legal framework which will expand economic activity. AFD is interested in guiding the drafting of new laws for this purpose, for example in the fields of Public-Private Partnerships. Supporting civil society is also important to AFD. We are interested in ongoing reform in the right direction. AFD is committed to supporting local development projects and institutions. We provide assistance to the French Red Cross in an attempt to reach out to the Iraqi refugee population. We also offer financial support to small and medium-sized enterprises, as well as other development organisations already carrying out excellent work in the country.

Tell us a bit about AFD’s projects in Syria.

A big issue in Syria is infrastructure. There is an evident backlog in infrastructure, from planning to maintenance, and we are interested in partially financing projects that address these issues. This means forming partnerships with municipalities, ministries and local administrations to address unique problems in their unique contexts. Water, waste water treatment, sewage and sanitation is another domain in which we would like to make an impact. For example, leakage is a grave problem which many Syrian cities face. Here there is room for international lenders to step in and help reduce the quantity of water being lost before it reaches taps in homes. AFD is also a platform for the exchange of expertise. This month we plan to host a two-day workshop with stakeholders in the region, including representatives from Iraq, to discuss sustainable urban transport in the region. We are also interested in renewable and green energy. Syria is extremely wealthy in this regard and its potential is huge. We have wind farm projects in mind, as well as a solar grid project.

So what does a project financed by AFD look like?

We offer a variety of different financial tools, including long-term loans and microfinancing via partner organisations and mediating banks. We support start-up developmental endeavours – AFD shares in the risk of establishing and funding projects and also offers access to funds for rural communities. AFD is dedicated to the public sector and wants to work more with local government administrations in the future. PROPARCO [Promotion et Participation pour la Coopération Économique / Investment and Promotions Company for Economic Cooperation, a French development finance institution specialising in capital investment, loans and guarantees held in part by the AFD and private investors] is our subsidiary for private-sector equity.

How has AFD found its time in Syria to date?

There is a good political foundation between France and Syria. Syria is a transitionary environment and our first few months here have been met with a lot of goodwill and commitment from the Syrian authorities. There is also a strong regional commitment from France and the EU vis-à-vis the region in general, which bodes well for AFD’s presence in Damascus.

What challenges do you face working in Syria?

We are still trying to understand and navigate the merging of the public and private sectors. We are working closely with the SPC in order to understand their criteria when it comes to collaboration and cooperation between the public and private, within a legal framework as well. With the solar grid for example, we need to think about who will buy the energy before it reaches homes, as it is still expensive. This will take time, of course. But there is overwhelming goodwill on all sides. We have managed to find a good balance between the public and private contributions in dealing with the Lafarge cement plant near Aleppo. PROPARCO is our partner there, but we are always looking for more. The international community is not as strong in Syria as it is in other countries AFD has a presence in. We are awaiting the decision regarding the signing of the Association Agreement with great anticipation as it will determine the breadth and scope of future possibilities.

What does the future hold for AFD in Syria?

We are really in the very early stages. I would like to see the implementation of our projects begin in the next few years after studies have been completed and yielded solid ground upon which to move forward. AFD is here for the long term. We are happy to be here at this particular time when the Syrian economy is ripe and ready to move forward. AFD will also establish assessment teams, comprised of local experts, who will monitor projects and continue to guide our mission and ensure goals are met on all sides. We would like to see Syrian expectations rise regarding what AFD can deliver.