Transcript Document

EBRD in Ukraine
Municipal and Environmental Infrastructure
18 November 2014
What is the EBRD?
International financial institution,
promotes transition to market economies
in 35 countries from central Europe to
central Asia
Cumulative business volume of
€87 billion
100
90
In 2011, the Bank expanded its
operations to include Egypt, Morocco,
Tunisia and Jordan (Southern and Eastern
Mediterranean – SEMED region)
Owned by 65* countries and two
inter-governmental institutions
Capital base of €30 billion
*Libya is yet to become a fully ratified member of the EBRD
70
60
€ Billion
In 2014, the EBRD welcomed Cyprus and
Libya as a recipient country and member
respectively.
80
50
40
30
20
10
0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 13
Note: Audited as at 31 December 2013
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The EBRD in Ukraine
The largest financial investor in the country with
20 years of experience in Ukraine
Focused on long-term financing of equity and debt
Total amount invested in Ukraine to date is over €9 billion,
funding almost 330 projects
Almost €1 billion invested in each of the last 4 years
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EBRD Net Cumulative Business
Volume in Ukraine
Allocation by Sector (as of June 2014)
Cumulatively 329 projects for the total amount of €9.2 billion were signed
Equity,
7%
Loans,
93%
Equity Funds
2%
Property and
Natural
Tourism
Resources
ICT 1%
Municipal
3%
2%
& Env Inf
5%
Public
sector
28%
Private
sector
72%
Financial
Institutions
33%
Power and
Energy
12%
Manufacturing
and Services
11%
Transport
14%
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Agribusiness
17%
4
EBRD in Municipal Infrastructure
Key sectors covered
Water & Wastewater – improved quality of service
and environmental compliance
District Heating – renewal of obsolete heating and
distribution systems and significant efficiency gains
Urban Transport – improved public transport
services (buses, LRT, metro, ferries, etc.) and more
efficient and safe network design
Solid Waste Management – improved efficiency and
frequency of collection; adequate disposal;
prevention of groundwater contamination
Ukraine: MEI Portfolio and Pipeline
MEI Portfolio in Ukraine
Fully implemented / Fully repaid
Fully implemented / Repaying
Under implementation / Repaying
Under implementation / Grace
Total
No of
projects
1
1
6
9
17
Project
€m
20.0
13.7
209.3
529.4
772.4
EBRD
Disbursed Disbursed
€m
€m
%
20.0
20.0
100%
10.7
10.7
100%
163.0
102.7
63%
249.7
0%
443.4
133.4
30%
Repaid
€m
20.0
1.9
11.8
33.7
Repaid
%
100%
18%
7%
0%
8%
Case Studies
Zaporizhzhia water project (1)
Project preconditions:
•
The City of Zaporizhzhia with a population of 900 thousand
•
Discharge of untreated sewage in the Dniper river
•
Losses in distribution networks exceeded 40%
•
Inefficient and depreciated (more than 30 years) equipment
The Project envisaged:
•
Completion of left bank aeration station with the full treatment cycle
•
Improvement of drinking water quality (retrofitting of WTP with filtration and chlorination)
•
Replacement of pumps and motors at water/wastewater pumping stations
•
Reduction of water losses by replacing 45 km of water mains
•
Installation of water meters in 3,400 buildings
Zaporizhzhia water project (2)
Financing structure
Total project cost of USD 39.2 million was financed with:
•
USD 28 million EBRD loan
•
USD 6 million local contribution from the Company
•
USD 3 million local contribution from the City
•
USD 2.2 million Technical cooperation grants
Tenor: 15 years with 4 years of grace period
Support arrangements:
•
Sovereign guarantee
•
Project support agreement with the City
•
Commitment to gradual tariff increase
Zaporizhzhia water project (3)
Project results
•
New aeration station with the full treatment
cycle, preventing discharge of untreated waste
water into the Dnieper river
•
Improved quality of drinking water quality
(retrofitting of WTP)
•
Energy efficiency, leakage reduction
•
Adopted tariff methodology helped the Company:
 improve financial performance and turn profitable
 repay the loan from generated cash flows without
support from the budget
 eliminate cross-subsidization
Water utility payment as % of the disposable
income in Zaporizhzhe
3.50%
Affordability
threshold (UNDP)
3.00%
2.50%
Monthly
wastewater
costs, as a
percentage of
the disposable
income, %
2.00%
1.50%
•
Tariffs remained within affordability limits
 In 2013 average water bill was 2.1% of monthly
disposable household income
1.00%
Monthly water
costs, as a
percentage of
the disposable
income, %
0.50%
0.00%
2010
2011
2012
2013
Lviv Wastewater Biogas Project,
Ukraine
• Upgrading of wastewater treatment and sludge treatment in the city
of Lviv
• First modern biogas digester on Ukrainian market.
• Total investment EUR 23 million
• To be financed by EBRD, NEFCO, E5P and local sources.
• Project preparations on-going – loan and grant signings expected
first half 2015.
• Business opportunities for Dutch companies both consultancy
services and supply of equipment.
Financing Guidelines
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EBRD requirements: The project
Operations to comply with both national and EU standards
Financially self-supporting project (debt repaid from cash flows
with adequate cover ratios)
Objective of operational improvements supported by predefined investments
• Energy and other efficiencies
• Commercialisation and management overhaul
Objective of support to reform
• Demonstration effect
• Tariff and collection reform
EBRD loan financing parameters
Size €10 »» 200+ million (EBRD account)
Local currency, where possible
Long maturities
• Up to 13 years (public sector) and 18-20 years (PPPs) including 3 years grace
• Repayment profile sculpted against projected cash flows
Market pricing linked to risk and tenor
• Currency reference rate + margin
Security and other project support
• Sovereign guarantees
• Municipal Guarantees
• Project Support Agreements
• Assets/revenue pledge
• Debt Service Reserve Account
Procurement opportunities with
EBRD (in public sector)
• All procurements with EBRD financing posted on
www.ebrd.com
www.eselection.ebrd.com
• Possibility to register and get e-mail alerts based on selections
• Consultancy assignments procured both by EBRD and clients
•
< EUR 70,000 direct selection
•
EUR 70,000 – 300,000 one stage selection
•
> EUR 300,000 open tendering
• Clients procuring based on EBRD procurement guidelines
• Larger supply contracts general procurement notice
Where to find us?
Tel: +380 44 277 1100
Fax: +380 44 277 1160
Email: [email protected]
www.ebrd.com/ukraine
Follow us on the web, Facebook and Twitter
EBRD Kiev Office
16 Nemyrovycha-Danchenka
Kiev 01133, Ukraine
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© European Bank for Reconstruction and Development 2012
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