Transcript Slide 1

EU Enlargement and Environment
Update on financing environment and cooperation with
IFIs
PEIP Meeting, 19 June 2008
Joanna Fiedler, DG Environment
Domenica Bumma, DG Enlargement
IPF Steering Committee - 16 June 2008
1
1
Outline of the presentation
•EU financial instruments
Donors coordination on environment
New aspects: Union for Mediterranean
 Infrastructure Projects Facility (IPF)
Municipal Window of PPF
IPF Steering Committee - 16 June 2008
2
EC assistance
Instrument for Pre-Accession (IPA):
– Component I
• Technical assistance available for the preparation of Approximation
and Investment strategies for ENV
• Capacity building of the relevant institutions
• Infrastructure investments in potential CCs
– Component II
• Cross-Border Cooperation (CBC)
– Component III „Regional development“ (available only to CCs)
• Investments in the field of transport, ENVIRONMENT (OP ENV) and
regional competitiveness
• Technical assistance for projects‘ preparation
IPF Steering Committee - 16 June 2008
3
Donors’ coordination
 IFIs AG WG on ENV
 EBRD environmental and social policy revision
 EIB – environmental statement under revision
 DABLAS Task Force
 EPPF/ IPF
IPF Steering Committee - 16 June 2008
4
IFIs Advisory Group
IFIs Advisory Group established in March 2007 (replacement of
Infrastructure Steering Group)
• It has advisory function on the coordination of investment projects
in the region
• The scope of work extended beyond regional transport, energy and
environment projects to cover sectors such as health, education,
social issues, municipalities as well as Public Private Partnership
• It covers all candidate and potential candidate countries
 Working Group on environment – work plan 2008
- Climate change focus (adaptation) – need for climate change
adaptation strategies
- Waste management – challenges to financing waste management
investments
- Next meeting October 2008
IPF Steering Committee - 16 June 2008
5
Achievements
Pipeline of prioritised water and wastewater investment
projects
 Pipeline (30 projects) endorsed in 2003, based on projects
selected by ICPDR and BSC that comply with environmental
and financial criteria
 Out of the 30 initial Priority Investment Projects
– 16 water supply and sanitation projects have secured
financing and have been taken out of the pipeline
– most other projects have moved forward thanks to the
Project Preparation Facilities
– new relevant projects
were- 16added
IPF Steering Committee
June 2008
– the least feasible projects were taken out
6
Achievements
Examples of specific activities
 Groundbreaking work on the grouping of municipalities for a
regional approach to water sanitation (Constanta, Romania)
 Securing funds from EC IPA for feasibility work for
investments in the water sector (Turkey)
 Securing grant co-financing for investments (Mykolaiv,
Ukraine)
 Developing guidance document on “Good Practice in Project
Preparation” in all DABLAS languages
 Identifying the links between the DABLAS process and the
Water Framework Directive
IPF Steering Committee - 16 June 2008
7
Achievements
Summary key results
 supplement to national processes – allows to see the bigger
picture
 improved preparation of key water and wastewater investment
projects
 developed a framework for investors/donors to use when
making financial decisions
 methodological guidance on issues of relevance for project
preparation
 Possibility to replicate the approach?
IPF Steering Committee - 16 June 2008
8
Latest Developments
 Contract recently awarded under PHARE multi-country:
• provide DABLAS Secretariat Services for the full
DABLAS region
• provide direct investment support for river basin
management-related projects in Romania, Bulgaria,
Croatia and Turkey
• In these 4 countries, provide methodological guidance
on cost-benefit analysis, cost of construction and
regionalisation of investments
 Further support for the Task Force is planned through IPA and
ENPI, but additional support will be necessary!
IPF Steering Committee - 16 June 2008
9
New aspects – Union for Mediterranean
 COM (2008) 319 – Barcelona Process: Union for the Mediterranean;
 To enhance multilateral relations, increase co-ownership of the
process and make it more visible to citizens. To “inject” further
momentum into the Barcelona process;
 Multilateral partnership – regional and trans-national projects;
 All EU Member States, members and observers of the Barcelona
Process and Croatia, Bosnia and Herzegovina, Montenegro.
 Project dimension – additional funding is expected: private sector,
bilateral cooperation, partners, IFIs, regional banks, bilateral funds)
IPF Steering Committee - 16 June 2008
10
Infrastructure Project Facility
TECHNICAL ASSISTANCE (1/4)
Overall objective
Contribute to the socio-economic development of the Western
Balkans through improved infrastructures in transport,
environment, and energy and in the social field
Project purpose
Support preparation and implementation of investment
projects financed by grants and/or loans by the beneficiaries,
IFIs, IPA and/or other sponsors/donors.
IPF Steering Committee - 16 June 2008
11
IPF TECHNICAL ASSISTANCE (2/4)
Expected results
 Improved number, speed and quality of investment
proposals for infrastructure investments
 Enhanced financial cooperation between the Commission,
IFIs and beneficiaries
 Improved technical skills of local human resources within
beneficiary institutions
IPF Steering Committee - 16 June 2008
12
IPF TECHNICAL ASSISTANCE (3/4)
Activities
Develop pipeline of infrastructure investments projects
Technical support for preparation & implementation of projects
Ad hoc assessment of individual investment projects
Upstream & downstream cooperation with IFIs
Update of capacity needs assessment of stakeholders
Training and capacity building of beneficiaries
IPF Steering Committee - 16 June 2008
13
FIRST RESULTS OF THE IPF (4/4)
 €16 million already allocated
58 proposals received from 6 countries
 18 projects prioritised, 5 in environment
 30 projects on reserve list
 10 projects rejected
 > € 10 million of estimated TA support
 > € 800 million of estimated follow up investments
IPF Steering Committee - 16 June 2008
14
“Feasibility Study for Collection, Transport
and Treatment of Waste Waters in the
Municipality of Vranje and Uzice”
TA-SER-17
Sector: Environment - Water Protection
Lead IFI: none at this stage
Co-financing Investors: IPA, State Budget
Requested Service: Feasibility Study
Indicative IPF TA: EUR 500,000
Estimated Total Investment: EUR 19,561,000
IPF Steering Committee - 16 June 2008
15
“Podgorica Waste Water Project”
TA-MON-07
Sector: Environment - Waste Water
Lead IFI: EIB, EBRD
Co-financing Investors: WB, IPA, Dexia CCB
Requested Service: Feasibility Study
Indicative IPF TA: to be defined
Estimated Total Investment: EUR 35,000,000
IPF Steering Committee - 16 June 2008
16
“Podgorica Water Infrastructure Project”
TA-MON-05
Sector: Environment - Water
Lead IFI: EBRD
Co-financing Investors: EIB, WB
Requested Service: Feasibility Study
Indicative IPF TA: EUR 300,000
Estimated Total Investment: EUR 10,000,000
IPF Steering Committee - 16 June 2008
17
“Regional Water Company Prishtina”
TA-KOS-01
Sector: Environment - Water Supply
Lead IFI: none at this stage
Co-financing Investors: KfW, EAR, Government
of Norway and Government of Switzerland
Requested Service: Technical and
Management Assistance, Feasibility Study
Indicative IPF TA: EUR 300,000
Estimated Total Investment: EUR 10,000,000
IPF Steering Committee - 16 June 2008
18
“Plava Voda Regional Water Supply Project”
TA-BIH-03
Sector: Environment - Water Supply
Lead IFI: EBRD
Co-financing Investors: CEB
Requested Service: Feasibility Study
Indicative IPF TA: EUR 600,000
Estimated Total Investment: EUR 28,000,000
IPF Steering Committee - 16 June 2008
19
IPF MUNICIPALITY WINDOW (1/3)
Overall objective
Supporting the financing of infrastructure investments to
create the conditions for sustainable development in the IPA
countries in the prospect of EU accession
Project purpose
Co-operation with IFIs to support the financing of infrastructure
investments of municipalities primarily in the field of water,
sanitation and waste management through a grant cofinancing mechanism (EU grants + IFI loan)
IPF Steering Committee - 16 June 2008
20
IPF MUNICIPALIT WINDOW (2/3)
Expected results
 Social result: improvement of living conditions of the
population
 Economic result: adequate tariff policy of public utilities to
ensure viability and sustainability of municipal investments
 Environmental result: progress achieved towards the
implementation of the “acquis communautaire” with respect to
the water and waste Directives
 Financial sector result: involving local banks in municipal
lending (indirect lending)
IPF Steering Committee - 16 June 2008
21
IPF MUNICIPALITY WINDOW (3/3)
Activities
 Identification of municipal investment projects (direct
lending to municipalities or lending through financial
intermediaries)
 Assessment by the IPF Secretariat and approval by the IPF
Steering Committee
 Implementation of projects by the IFIs (signature of
municipal project agreement, release of EU grants,
completion check of investment)
Capacity building of municipalities for investment planning
and management
IPF Steering Committee - 16 June 2008
22
IPF (TA & Municipality window)
MANAGEMENT STRUCTURE
IPF
Steering Committee
(EC, IFIs, Benef.)
IPF Secretariat
Technical Assistance
For Investment Projects
Grant co-financing/
capacity building for
Municipal investments
Project Task Forces
(monitoring and steering
TA services)
IFIs loans/
co-financing
IPF Steering Committee - 16 June 2008
23
IPF TA PROJECT CYCLE
TA projects
presented by
beneficiaries
and
sponsors
(IFIs, others)
NIPAC
Offices
prioritisation
of projects
IPF
Secretariat
DG
ELARG
(Task Manager)
Order of
service
for TA
monitored by
Project
Task Force
Order of
service
for TA
monitored by
Project
Task Force
IPF Steering Committee - 16 June 2008
proposal
of projects
IPF
Steering
Committee
recommendation
of pipeline
Order of
service
for TA
monitored by
Project
Task Force
24
IPF MUNICIPALITY WINDOW PROJECT CYCLE
Investment
projects
presented by
beneficiaries
and IFIs
NIPAC
Offices
IPF
prioritisation Secretariat
Contracting
Authority
(ELARG)
Direct contribution
Agreement with IFI
for
project co-financing
Direct contribution
Agreement with IFI
for
project co-financing
proposal
of projects
IPF
Steering
Committee
recommendation
of pipeline
Direct contribution
agreement with IFI
for
project co-financing
Implementation of municipal investments
IPF Steering Committee - 16 June 2008
25
RESOURCES UNDER IPA 2008
Project
IPF TA - Support to Infrastructure
Investments
IPF Municipal Facility Window
Total
Amount
(million €)
16.2
24.0
30.2
IPF Steering Committee - 16 June 2008
26
NEXT STEPS
End-June 2008: kick off of TA Contract = mobilisation of experts for
pipeline projects between July and September 2008
September 2008: IPA Management Committee to approve IPA 2008
proposed programmes (IPF TA, IPF MW)
October 2008: second meeting of the IPF Steering Committee; first
screening of projects eligible for IPF MW
IPF Steering Committee - 16 June 2008
27
THANK YOU
Joanna Fiedler
Policy Officer for Serbia and Syria, relations with IFIs, coordinator of
ISPA/PHARE/CARDS/ IPA and twinning
Unit for Enlargement and Neighbouring Countries
European Commission – DG Environment
email: [email protected]
Tel: 0032 2 299 03 10
IPF Steering Committee - 16 June 2008
28