120 likes | 285 Views
European Hydropower Summit Session IV-Small Hydro in Balkan Region (Albania, Bosnia & Herzegovina, and Republic of Macedonia). Bucharest, February 28, 2012. Dimitar Dimitrovski , Policy/Legal Specialist Balkan Renewable Energy Program (BREP).
E N D
European Hydropower Summit Session IV-Small Hydro in Balkan Region (Albania, Bosnia & Herzegovina, and Republic of Macedonia) Bucharest, February 28, 2012 Dimitar Dimitrovski, Policy/Legal Specialist Balkan Renewable Energy Program (BREP)
Shared Mission: To Promote Economic Development and Reduce Poverty IFC is a Member of the World Bank Group MIGA Multilateral Investment and Guarantee Agency Tirana 4 IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation Est. 1945 Est. 1960 Est. 1956 Est. 1988 Role: To promote institutional, legal and regulatory reform Governments of member countries with per capita income between $1,025 and $6,055. - Technical assistance - Loans - Policy Advice To promote institutional, legal and regulatory reform Governments of poorest countries with per capita income of less than $1,025 - Technical assistance - Interest Free Loans - Policy Advice To promote private sector development Private companies in 179 member countries - Equity/Quasi-Equity - Long-term Loans - Risk Management - Advisory Services To reduce political investment risk Foreign investors in member countries - Political Risk Insurance Clients: Products: What we do?Investment Services Advisory Services Asset Management
IFC Advisory Services Business Lines in Balkan Region A2F Access to Finance Tirana 4 IC Investment Climate SBA Sustainable Business Advisory PPPs Public Private Partnerships Balkan Renewable Energy Program AL 2010-2015 BIH 2010-2015 MK 2012-2015 Bosnia & Herzegovina 2010-2015 Republic of Macedonia 2012-2015 SBA Sustainable Business Advisory
Balkan Renewable Energy Program (BREP) – Brief Description GOAL To fully enable creation of RE/SHPP market in Albania, Bosnia & Herzegovina, and Republic of Macedonia; To support development and financing of SHPPs in the three countries. OBJECTIVES (COMPONENTS) Improvement of existing RE regulatory framework; Assistance to SHPP sponsors; Assistance to financial institutions (banks).
BREP Program Identified Stakeholders SPONSORS PUBLIC SECTOR • Government, • Agencies, • Power companies, • Municipalities. TECHNICAL SUPPORT • Manufacturing companies, • Engineering and Consulting companies, • IFIs Advisory Services and Technical Assistance. FINANCIAL INSTITUTIONS • Local banks, • International FIs (IBRD, IFC, EBRD, EIB, KfW).
Why do we support different stakeholders? Support to Public Stakeholders (governments, regulatory bodies): To align national regulation with EU – electricity and RE; To fulfill obligations in accordance to Energy Community Treaty of SEE (creation of regional electricity market); To increase transparency of concessions granting procedure (credibility). Support to RE Sponsors: To increase “bankability” of projects; To decrease collateral requirements; To reduce technical and commercial risks. Support to Local Banks: To make predictable cash flow analysis; To reduce loan’s regulatory risk; To create conditions for project financing.
Regulatory Framework Improvement MAIN ACTIVITIES General • In-depth research of existing framework; • Regional knowledge and best practice exchange; • Alignment with EU/Energy Community Treaty requirements. Specific • Developing/Improvement of feed-in tariff systems; • Improvement of PPA with “take-or-pay” clause integration; • Full implementation of “step-in” rights; • Improvement of SHPP sponsor selection criteria.
Assistance to SHPP Sponsors MAIN ACTIVITIES General • B2B matchmaking events in cooperation with chambers of commerce; • Regional knowledge and best practice exchange. Specific • Cross-check of existing SHPP designs; • Workshops on SHPP design and modern technologies; • Support to the concessionaire (sponsor) associations; • Providing tools and advices on SHPP projects bundling.
Assistance to Financial Institutions (FIs) MAIN ACTIVITIES General • Country level assistance to financial institutions; • Regional knowledge and best practice exchange. Specific • Development of SHPP financing manual; • Development of template for SHPP cash-flow projections; • In-depth support for selected FIs; • Case studies to promote SHPP investment by FI sector.
Outline of IFC’s IS Investment Products Financial Products - From Equity to Debt Corporate and JV Typically 5-15% shareholding (not to exceed 20% of total equity) Long-term investor, typically 6-8 year holding period Not just financial investor, adding to shareholder value Usually no seat on board Infraventures (early equity investments) Equity • Subordinated loans • Income participating loans • Convertibles • Other hybrid instruments Mezzanine / Quasi Equity • Senior Debt (corporate finance, project finance) • Fixed/floating rates, US$, Euro and local currencies available • Commercial rates, repayment tailored to project/company needs • Long maturities: 8-20 years, appropriate grace periods • Range of security packages suited to project/country • Mobilization of funds from other lenders and investors, through cofinancings, syndications, underwritings and guarantees Senior Debt & Equivalents
Results to Date? Legislative package in Albania and in Federation of BIH in adoption procedure: RE Law; Concessions Law; Standardized Concession Contract; Standardized PPA and Standardized Grid Connection Agreement. Database of promising SHPP sites in Albania on sell. Ongoing discussion with FIs in Albania, Bosnia & Herzegovina, and Republic of Macedonia for RE dedicated credit lines. IFC Investment Services committed its first investment in equity in SHPPs in Albania.
IFC’s Balkan Renewable Energy Program Team Contacts Bosnia & Herzegovina Dzenan Malovic, BREP Technical Specialist E-mail: dmalovic@ifc.org Denis Mesihovic, BREP Client Relationship Specialist E-mail : dmesihovic@ifc.org BREP Program Manager Nebojsa Arsenijevic E-mail: narsenijevic@ifc.org Albania Bajame Sefa, BREP Finance Specialist E-mail : bsefa@ifc.org Republic of Macedonia Dimitar Dimitrovski, BREP Policy/Legal Specialist E-mail : ddimitrovski@ifc.org