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Consultancy support for the in-depth appraisal of the financial cooperation component Identification...
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Consultancy support for the in-depth appraisal of the financial cooperation component Identification of Financial Instruments Thailand Refrigeration and Air Conditioning NAMA (RAC NAMA) Month date, 20145 Dr. Thomas Schiller MACS Energy & Water GmbH Arnsburger Str. 64, 60385 Frankfurt, Germany Tel +49-69-943188-0, Fax +49-69- 943188-18 e-mail: [email protected] Internet: www.macsonline.de
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Transcript of Consultancy support for the in-depth appraisal of the financial cooperation component Identification...
Consultancy support for the in-depth appraisal of the financial cooperation componentIdentification of Financial Instruments
Thailand Refrigeration and Air Conditioning NAMA (RAC NAMA)
Month date, 20145Dr. Thomas Schiller
MACS Energy & Water GmbHArnsburger Str. 64, 60385 Frankfurt, GermanyTel +49-69-943188-0, Fax +49-69-943188-18e-mail: [email protected]: www.macsonline.de
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Presentation Outline
Rationale of Financial Component
Overview of Financing Instruments and Mechanisms
Credit Lines
Loan Guarantees
Vendor Credit
Funds
Financial Contribution
Key Issues
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Conversion of Production
Domestic AC
Commercial Refrigeration
Target of RAC NAMA Financial Component
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RAC Stakeholder in Thailand
Producer of RAC Equipment Incl.
suppliers
Retail Vendor of RAC Equipment
Buyer of RAC Equipment
giz
NAMA Facility
Commercial Banks (Fis)
Other Funds
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The Challenge for the Financial Component
Financial/CreditMarkets
NAMA Targets
Product Markets
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Credit Line
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Credit Line for purchase of RAC equipment
Targeted Credit Line
Leverage of NAMA funds by Partner FI ?
GIZ needs at least one Partner FI to handle repayments
How serious is the revolving approach?
GIZ can be involved in Credit Line and Loan Pre-Approval
Partner FIFinancier (IFI)NAMA Facility
giz
Buyer of standard and non-standard
RAC Equipment
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Credit Line for RAC production conversion
Targeted Credit Line Partner FIFinancier (IFI)NAMA Facility
giz
Producer of RAC Equipment Leverage of NAMA funds by Partner FI ?
GIZ needs at least one Partner FI to handle repayments
How serious is the revolving approach?
GIZ can be involved in Credit Line and Loan Pre-Approval
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Loan Guarantee
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Loan Guarantee for RAC targeted credits
Partner FIFinancier (IFI)NAMA Facility
giz
Producer of RAC Equipment
Loan Guarantee
Limited Leverage
Investor can improve his collateral
GIZ Approval (Ex ante)
What about counter-guarantee to avoid Moral Hazzard
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Vendor Credit
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Targeted Refinancing of Vendor Credit
Financier (IFI)NAMA Facility
giz
Leverage of NAMA funds by Partner FI ?
what about the repayment (revolving) ?
GIZ can be involved in Loan Pre-Approval
Partner FI
Retail Vendor of RAC Equipment
Buyer of RAC Equipment
Targeted Refinancing Line
Targeted Credit Line
Consumer Loan
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Funds
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Energy Efficiency Revolving Fund (EERF) Established 2003
Total Investment USD 522 million
USD 236 EERF, USD 286 Banks
Majority replacement of Chillers and bio gas facilities
Phased out in 2011, according to DEDE Banks don’t need government support for EE/RE lending (CCAP, 2012)
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Energy Conservation Promotion Fund (ENCON)
Energy Conservation Promotion Act:
ENCON established in 1992 based on Tax on petroleum
Phase I 1995-1999
Phase II 2000-2004
Phase III 2005-2011
Fund raising: USD 50 million per year
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Investment Fund Participation
Financier (IFI)NAMA Facility
giz
Partner FI
Retail Vendor of RAC Equipment
Buyer of RAC Equipment
Targeted Line
Targeted Credit Line
Consumer Loan
Other Funds
Participation
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Structured Funds (as Public Private Partnership)
TA Facility gizNAMA / GCF
Public Investor
Private Investor
Capacity Building, etc
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Financial Contribution
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Financial Contribution for Production Conversion
Partner FIFinancier (IFI)NAMA Facility
giz
Producer of RAC Equipment
Financia
l Contrib
utio
n
Leverage of NAMA grant funds
Contribution to Interest rate and/or principal
GIZ Approval (Ex ate – Ex post)
No repayments expected
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Additional Financial Incentives
Financier (IFI)NAMA Facility
giz
Partner FI
Retail Vendor of RAC Equipment
Buyer of RAC Equipment
Existing R
E/EE Credit
Line Targeted Credit Line
Consumer Loan
Other Funds
Financial Contribution
Incentive for RAC
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Key Questions
Should the GRIF have its own legal personality or is it just an “account” ?
Does GIZ intend to leverage (NAMA) grants directly or indirectly?
If the NAMA grant is supposed to be transferred into loans, how to handle repayments?
Under what conditions “grants” are an acceptable instrument ?
How to integrate a “loan window” and a “grant window”?
Will a financial offer trigger demand for green RAC?
Where is the “business case” for green RAC from a bank perspective (market size)?
