Transcript Financial Institutions 2003

EBRD: Technical Cooperation
to enhance company management
Moscow, February 2013
Dilek Macit
Director
Technical Cooperation
What is the EBRD?
€ bn
Cumulative commitments
70
60
50
40
30
20
10
0
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'02
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• European Bank for Reconstruction
and Development
• International Financial Institution
• Founded 1991
• Rated AAA
• Shareholders: 64 countries; EU and
European Investment Bank
• Promotes transition to market
economies
• Works in 34 countries from central
and eastern Europe, central Asia
and the southern and eastern
Mediterranean
• Capital base of €30 billion
• Since 1991 more than 3,000
projects and €71.1bn of cumulative
commitments
• In 2011 signed deals worth €9.1bn
• Largest investor in the region
EBRD’s Objectives
To foster the transition of 34 countries from central and
eastern Europe, central Asia and the southern and
eastern Mediterranean towards open market-oriented
economies
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Promote transition by investing mainly in the private sector
Mobilise domestic and foreign capital: multiplying effect
Foster a competitive environment
Stimulate and encourage the development of capital markets
Encourage environmentally sound and sustainable development
Focus on quality, efficiency, concrete results and return
on investment (financial, economic, environmental)
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EBRD in Russia – 7 offices, 120 Professionals
St. Petersburg RO
Moscow RO
Yekaterinburg RO
Krasnoyarsk RO
Vladivostok RO
Rostov RO
3
Samara RO
3
EBRD in Russia: extensive expertise…
€ billion
25
Annual business volume (ABV)
2.5
20
2
15
1.5
10
1
5
0.5
0
0
1991- 1996 1998 2000 2002 2004 2006 2008 2010
1994
ABV
Net Cumulative Business Volume (NCBV)
4
4
Net cumulative business volume (NCBV)
3
• EBRD has an extensive
expertise in the Russian
market
• More than 30% of all
projects value signed
by EBRD in 2011
related to Russia
• Total amount of
Russian deals reached
€2.9bn which is a 27%
increase vs. 2010
• Net cumulative
business volume was
EUR €20.6bn which
relates to hundreds of
successful projects
… across many sectors and regions
•
EBRD mainly works with the private sector and
also cooperates with government especially in
developing infrastructure
NCBV breakdown by sectors in
Russia
19%
•
EBRD proposes a variety of debt and equity
instruments; equity portion of NCBV reaches
almost 20%
•
EBRD has expertise of executing projects in all
Federal districts of Russia
81%
Annual business volume breakdown
by Federal Districts (2011)
4% 4%
5%
Equity
National
7%
Debt
14%
Central
29%
North West
Far East
13%
Volga
Urals
86%
Siberia
South and North Caucasus
17%
State
21%
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Private
Technical Cooperation Activities
The Technical Cooperation funds are used to finance
consultants carrying out work to
• support the preparation and implementation of the
Bank’s operations and projects throughout project
cycle
• assist the Bank in developing its clients’ capacity and
skills, improving efficiency and strengthening
institutions
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Consultancy Contract Awards by
EBRD and its Clients*
Total Consultancy Contracts
Awarded by EBRD & Clients**
Year
Value, € million
Number
2011
169.49
2,797
2010
175.00
2,820
2009
137.17
2,821
2008
120.22
2,434
2007
136.18
2,377
* Clients are generally the recipients of loans or equity investments
** Including contract awards financed by TC funds, Bank budget and contracts funded from loan
proceeds in public sector operations
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“Who” in EBRD
Technical Cooperation Department
• technical advice and operational support to the Bank and its
Clients when selecting and engaging consultants
Banking teams
• Banking carries out EBRD’s lending and investment
operations; consultancy services are used to support these
operations
Clients
• select consultants where the Client is the main beneficiary of
the services (mostly project implementation)
• responsible for all aspects of the procurement of contracts
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Technical Cooperation –
Initiatives to enhance company management
• Client “buy in”
• Cost sharing
• Client Selection and Engagement: in 2011, 104
consultancy assignments totalling €29.96 million were
contracted and managed by the Bank’s clients as the
beneficiaries of services
• Implementing the advice
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Technical Cooperation activities
(non-Project related)
•
•
•
•
•
Policy dialogue and public sector reform
Management Consultancy in investee companies
Legal advice to EBRD’s Office of the General Counsel
Economic/political analysis, research
Institution building/training via EBRD’s Enterprise
Growth Programme (EGP), Business Advisory
Services (BAS), Legal Transition Programme (LTP)
• Information Technology
• Social and Environmental Consultancy
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Why SMEs are Important in
EBRD Region?
SMEs
Make economies flexible, resilient
and interlinked
Form source of reliable domestic
supplies
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Investors like countries
with strong SMEs
Generate substantial share of
employment, drive innovation and
cost efficiency
SMEs, the Engine of the Economy
 55% of GDP produced by SMEs
 Employment impact
(1)
(2)
 67% share of employment provided by SMEs.
 86% of new jobs created by SMEs with 250 employees or less.
 Highest employment growth rates by businesses with up to 100
employees and less than 2 years old.
 Data based on formal enterprises, informal businesses will increase the
figures
 SMEs contribute more to employment in low-income countries than
higher-income countries
 18% of 18-24 years old are unemployed in Central and Southern
Europe and FSU, 28% youth unemployment in SEMED
(1)Median on 24 EBRD countries of operation.
(2)World Bank study of 47,475 MSMEs in 99 developing countries and ILO 2012 study on youth unemployment.
07/07/2015
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What are the Key Challenges for
SMEs in Russia?
Lack of
available
financing
Administrative
barriers and
red tape
Weak
management
practices
Tax system
Low share of SMEs in
Russia:
• different estimates put it at 1221% of country GDP
• significantly lower than in
developed countries
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EBRD’s Comprehensive and
Integrated Approach
• EGP targets medium size companies in need of management
strengthening
Technical • BAS aims to help SMEs use local consultants for specific assignment
assistance • Typical BAS project €4,000 (50% cost share) and lasts 4 months
(SBS)
• Number of SBS projects >12,000
• Over €200mn of donor funds utilised
• Financing to local banks for on-lending to SMEs
Indirect
financial
support
• Russia Small Business Fund
• Energy Efficiency Programme (RUSEFF)
• EBRD’s Trade Facilitation Programme
• Private Equity Funds
• Venture Capital Investment Programme
• Debt, equity and quasi equity instruments (RSBF-Technical Assistance)
Direct
financial
support
• Term: 3 to 7 years on average; foreign or local currencies
• For both new and existing enterprises with €50mn of existing/
prospective revenue
• Partnership with other investors or banks
• Bank provides for up to 35% of total project cost
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EBRD SME Financing via Partner
Banks
in Russia, the EBRD works through 25+ financial intermediaries,
for MSME’s support, including:
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Russia Small Business Fund
Since 1994
RSBF supports finance for Micro and Small Enterprises (“MSE”)
Program size:
up to $450m
Specialised credit lines to partner-banks + Technical
Assistance to help build lending capacity for SME
About 100,000
sub-loans to
SME
Totalling $1.2bn disbursed and currently
outstanding under the RSBF – partner banks
leverage EBRD funding with own money
Loan size
$1-200ths
fits MSE needs
Over 8,700
loan officers
of the partner banks have so far
been trained under this programme
15 banks
currently co-operate
~300 cities in
Russia
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covered
EBRD Russian Sustainable Energy
Financing Facility (RuSEFF)
Assisting SMEs to implement energy
efficiency and renewable energy investment
opportunities
Engaging local
financial institutions
Combining credit line
with technical
assistance
$ 200 million of EBRD
financing
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www.ruseff.com
EBRD Trade Finance Facilitation
Programme (TFP)
Guarantees to international
commercial banks
(confirming banks, 22 in
Russia)
Promotes foreign trade to,
from, and within the EBRD
region
TFP
Assumes political and
commercial payment risk
undertaken by participating
banks (issuing banks, 27 in
Russia)
Competed 12,500+
transactions supporting
over €7.8 bn in trade
(June 2012)
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EBRD has invested in 49
Russia/CIS focused funds
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49 funds and 26 fund managers
80% of the capital invested by these funds has been in Russia
EUR 1.17 bil committed to the funds with total capital of EUR 5.06 bil
More than 368 companies have been invested in:
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60% of which have been either service-related or telecoms/media
ca 65% of which are now exited from
Active fund relationships in Russia
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Business Expertise in Addition to
Financing
• EBRD’s Small Business
Support (SBS) has been
helping Micro, Small and
Medium sized Enterprises
(MSMEs) since 1993
• 2 instruments: the Enterprise
Growth Programme (EGP)
and Business Advisory
Services (BAS)
• Run on a not-for-profit basis
with donor funding in
24 countries
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SBS at a glance
Over €200m donor
funding
1,800+ EGP projects
12,300+ BAS projects
Nearly 800 market
development activities
Consultants Bring International Know How
BAS Fosters Local Expertise
• EGP supports the
introduction of international
best practice on a cost
sharing basis
• SMEs with the potential of
becoming future leaders in
their market
• International advisors with
at least 15 years of
professional experience and
expertise in the specific
business sector
• BAS assists individual
enterprises to engage with
local consultants on a cost
sharing basis
• Specific projects with a
rapid payback
• Aimed to increase the
supply and quality of local
advisory services
• Targeted market
development activities to
create a sustainable market
of support for the SME
sector
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EBRD has a Proven Impact on
Enterprise Performance
Business Advisory
Services (BAS)
Enterprise Growth
Programme (EGP)
 1,800 projects with SME’s with
typically 100-500 employees
 1,300 advisers from 64
nationalities
 In 2012, EGP clients secured
€62 million of investments
 12,300 projects with MSME’s
with up to 250 employees
 Nearly 4,000 local consultants
engaged
 21% of enterprises received an
external investment
43% average
increase in
productivity
36% average
increase number of
employees
18% average
increase in
turnover
29% average
increase in
productivity
37% average
increase in
20% average turnover
increase number
of employees
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EBRD SME Clients
EGP projects by industry
Manufacturing
8%
Wholesale and retail
trade, repair of motor
vehicles &
motorcycles
Construction
3%
5%
4%
6%
8%
66%
Agriculture, forestry
and fishing
BAS projects by industry
Food & Beverages
Information and
communication
Wholesale/Retail Distribution
20%
Construction/Engineering
39%
Travel/Tourism
15%
Eletrical/Electronics/IT
11%
5%
5%
Metals/Machinery/Equipment
5%
Other
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Strengthening New Business in
Vladivostok
BAS helped Sidimi Resort introduce an
automated system of cashless payments and
restaurant management software
28 staff members were
trained
Increased efficiency
Company’s turnover
increased by 53% in
2011
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Employment almost
doubled
BAS in Federal Districts of
Russia
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€9.1 million of donor
funding
797 projects undertaken
engaging 275 local
consultants
Far Eastern
439 BAS Projects
Kaliningrad
145 BAS projects
North West
213 BAS projects
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BAS Advice in Russia
BAS has supported a wide range of projects
Quality
Management &
Certification 11%
Computerised
Financial/Manage
ment Information
System 26%
Reorganisation/
Restructuring
14%
Other 1%
Computerised
Manufacturing
Systems
3%
Development
Planning
10%
Market Analysis &
Planning 16%
Feasibility Studies
10%
Engineering
Studies
Environment
8%
0%
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Energy efficiency
1%
Optimising Electricity Production in
Yekaterinburg
EGP assisted Ural Technical Rubber Plant to
bridge
investment plans and costly
external engineering required for tender
specification
EGP provided state-of-the-art
solution to long-term energy
efficiency
The project enables the
company
to
have
independent power supply
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EGP in Federal Districts of
Russia
 €15.9 million of donor
funding
 225 projects implemented,
10 are ongoing
Far Eastern
33 EGP projects
North West
68 EGP projects
Ural
19 EGP projects
Central
41 EGP projects
Volga
8 EGP projects
Southern
11 EGP projects
Siberian
41 EGP projects
North Caucasus
4 EGP projects
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EBRD Interventions Go beyond
Direct Enterprise Assistance
• Consultant market development activities
strengthen the local business advisory services
market
• Consultants disseminate market best practices
• Business matching initiatives provide businesses
access to markets and knowledge exchange
• Policy dialogue promotes better business
environments
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Proposed SBS Support in Russia
Over 2013-2015, SBS will assist enterprises in
Southern, Ural, Siberian, and Far Eastern federal
districts
BAS
EGP
Introduction of industry-specific
management expertise to
minimum 16-17 enterprises each
year
Sector Development Activities
Total 48-51 projects
 Assistance provided by local
BAS specialists: minimum
125 enterprises each year
 Minimum 12 Market
Development Activities
 Total 375 projects
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Proposed SME Support in Federal
Districts of Russia
 Approximate annual
allocation
Far Eastern district
30-35 BAS projects
5 EGP projects
Ural district
30-35 BAS projects
4-5 EGP projects
Southern district
30-35 BAS projects
4-5 EGP projects
Siberian district
30-35 BAS projects
4-5 EGP projects
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How to contact us
Project enquiries (existing EBRD projects only)
Tel: +44 (0)20 7338 6282 / fax: +44 (0)20 7338 7380
Business Development and project proposals
Tel: +44 (0)20 7338 7168 / fax: +44 (0)20 7338 7380
Small Business Support
Tel: +44 20 7338 7356, Fax: +44 20 7338 7742, E-mail: [email protected]
Technical Cooperation
Tel: +44 (0)20 7338 6124 / fax:+44 (0)20 7338 7451
Procurement opportunities
via web site: www.ebrd.com
General enquiries
Tel: +44 (0)20 7338 6372 / fax: +44 (0)20 7338 6690
Publications
Tel: +44 (0)20 7338 7553 / fax: +44 (0)20 7338 6102
eSelection
Tel: +44 (0)20 7338 7307 / Fax: +44 (0)20 7338 7451
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