EBRD Infrastructure Business Group

Transport and MEI Teams

Lisbon, November 2014

EBRD’s objectives achieved through

financing the private sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 2

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Net c

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AB

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Equity ABVDebt ABV Net Cumulative Business Volume

€ billion

AAA/Aaa rated multilateral development bank,

promotes transition to market economies in 35

countries from central Europe to central Asia

and the Southern and Eastern Mediterranean –

SEMED region)

In 2014, the EBRD welcomed Cyprus and Libya

as a recipient country and member

respectively.

• Owned by 65* countries and two

inter-governmental institutions.

• Capital base of €30 billion.

• Invested over €86 billion in more than

4,007 projects since 1991

*Libya is yet to become a fully ratified member of the EBRD

Cumulative business volume of €86bn

EBRD finances diverse range of enterprises

12%

12%

2%

2%

5%

29% 4%

13%

8%

18%

Agribusiness - 12%

Manufacturing and Services - 12%

Information & Communication Technologies - 2%

Property and Tourism - 2%

Equity Funds -5%

Financial Institutions - 23%

Municipal & Env Inf - 4%

Transport - 13%

Natural Resources -8%

Power and Energy - 18%

28 November, 2014 © European Bank for Reconstruction and Development 2012 3

Net cumulative business volume €86bn

Note: Unaudited as at 30 April 2014

EBRD objectives

28 November, 2014 © European Bank for Reconstruction and Development 2012 4

Objectives:

• To promote transition to market

economies by investing mainly in the

private sector

• To mobilize foreign direct investment

• To support privatization, restructuring

and better municipal services to

improve people’s lives

• To encourage environmentally sound

and sustainable development

In 2013:

• €8.5 billion invested in

392 projects

• Private sector accounted for 72% of

the portfolio

• Equity accounted for 22% of the

portfolio

In 2014:

• €4.25 billion invested in

172 projects

• Private sector accounted for 71% of

the portfolio

• Equity accounted for 21% of the

portfolio

3 key principles of EBRD’s operations

28 November, 2014 © European Bank for Reconstruction and Development 2012 5

Transition Impact

Sound Banking

EBRD

Additionally

Promotes transition to

market economies, private

ownership and good

governance with respect

for people and

environment

Invests in financially viable

projects, together with the

private sector

Supports, but does not

replace, private

investment.

Provides financing at

reasonable terms,

otherwise not available

EBRD financing instruments

28 November, 2014 © European Bank for Reconstruction and Development 2012 6

Loans

Senior, subordinated, convertible

Long term (up to 10y or more) or short term

revolving

Floating/Fixed rates

Choice of currencies (€, US$, RUB etc.)

Equity

Common stock or preferred

Minority position only (up to 35%)

Mezzanine debt

Technical Cooperation

As a Multilateral Development Bank, EBRD brings in additional financial capital

and technical assistance to economically viable projects

Other: guarantees, currency swaps, etc.

28 November, 2014 © European Bank for Reconstruction and Development 2012 7

Where the EBRD invests

Transport within Infrastructure Business

Group

28 November, 2014 © European Bank for Reconstruction and Development 2012 8

INFRASTRUCTURE Business Group

TRANSPORT

South & Central Europe, SEMED

Albania, Armenia, Azerbaijan,

Belarus, Bosnia and

Herzegovina, Bulgaria, Croatia,

Cyprus, Egypt, Estonia, FYR

Macedonia, Georgia, Hungary,

Jordan, Kosovo, Latvia,

Lithuania, Moldova,

Montenegro, Morocco, Poland,

Romania, Serbia, Slovak

Republic, Slovenia, Turkey,

Tunisia, Ukraine

MEI

South & Central Europe, SEMED

Albania, Armenia, Azerbaijan,

Belarus, Bosnia and

Herzegovina, Bulgaria, Croatia,

Cyprus, Egypt, Estonia, FYR

Macedonia, Georgia, Hungary,

Jordan, Kosovo, Latvia,

Lithuania, Moldova,

Montenegro, Morocco, Poland,

Romania, Serbia, Slovak

Republic, Slovenia, Turkey,

Tunisia, Ukraine

INFRASTRUCTURE

Russia & Central Asia

Kazakhstan,

Kyrgyz Republic,

Mongolia,

Russian Federation,

Tajikistan,

Turkmenistan,

Uzbekistan

The Transport Team at EBRD

• Transport Team is part of EBRD Infrastructure Business Group

with over 30 banking and sector professionals

• Headquartered in London, with dedicated sector coverage

bankers in Astana, Istanbul, Kiev, and Moscow

• Dedicated in-team specialists to support project needs including

procurement, sustainable strategies and monitoring

• EBRD offers banking services (debt and equity) to clients across

every transport mode: railways, maritime, aviation and roads1

• More info at www.ebrd.com/transport

28 November, 2014 © European Bank for Reconstruction and Development 2012 9

Transport at a glance2

• EUR 11.4 billion invested

• Total project value: EUR 44.8 billion

• 245 projects

• 30 of the EBRD’s countries of operation

1. Urban Transport is competence of the Municipal & Environmental Infrastructure Team

2. Data at end June 2014

2013 Awards and Recognition

28 November, 2014 © European Bank for Reconstruction and Development 2012 10

EUR 1,243 million project bond issued

by Granvia (SPV owned by VINCI

Concessions and Meridiam

Infrastructure Fund); EBRD EUR 200

million subscription

Proceeds to be used for the optimising

the long-term financing of newly

constructed road sections totalling

51.6 km

PFI Awards 2013:

Bond Deal of the Year (Europe)

R1 Motorway

Refinancing, Slovakia

Mersin International Port’s USD 450

million Eurobond debut; EBRD USD

79.5 million subscription

Proceeds to be used for the capital

investment programme: the capacity

expansion and optimisation of the

Company’s long debt financing

PFI Awards 2013:

Port Deal of the Year (MEA)

Mersin Port, Turkey

EBRD’s presence in Transport Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 11

Portfolio by Region Portfolio by Sector

The Bank supports the development of efficient multimodal networks,

investing a total of EUR 11.4 billion as of end June 2014

across all sectors and regions to support 245 projects

Central Asia 9% 27 projects/ € 1.0 bn

Central Europe and Baltics 20% 56 projects/ €2.2 bn

Eastern Europe and Caucasus 18%

51 projects/ €2.1 bn

Regional 2% 4 projects/ €0.2 bn

Russia 21% 41 projects/ €2.5 bn

SEMED 1% 1 project/ €0.1 bn

South-Eastern Europe 26% 58 projects/ €3.0 bn

Turkey, 3% 7 projects/ €0.3 bn

Aviation 6% 38 projects/ €0.7 bn Intermodal 4%

10 projects/ €0.4 bn

Ports and Shipping 6% 47 projects/ €0.7 bn

Rail 34% 73 projects/ €3.9 bn

Road 50% 77 projects/ €5.7 bn

The Bank invests in a broad range of Transport

projects including, but not limited to…

28 November, 2014 © European Bank for Reconstruction and Development 2012 12

Road

Road rehabilitation and construction of new highways,

secondary and rural roads, by-passes, maintenance

equipment and contracting, toll-motorway construction and

operation

Rail

Aviation

Ports &

Shipping

Rehabilitation, maintenance and construction of rail

infrastructure (track, signaling, power supply, civil structures),

rolling stock, maintenance and ancillary facilities

Rehabilitation and construction of port infrastructure (berths,

quays, land access), superstructure (warehouses, gantries),

inland waterways, and vessels (acquisition and retrofitting)

Rehabilitation and construction of airport infrastructure and

terminals for passenger & cargo, airline finance, air

navigation services (ANS)

Logistics &

Intermodal

Construction of intermodal terminals & logistic centres, fleet

and equipment, support to intermodal operators

EBRD in the Road Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 13

• Investing in key road projects with a positive balance of social, environmental and economic impact in the region

• EBRD targets investments to:

− Address bottlenecks

− Reduce transport costs and emissions

− Integrate rural regions and facilitate trade

− Upgrade road safety standards

− Support regional integration and key corridors (TEN, CAREC, etc.)

• Promotion of the introduction of commercial principles and PPP in the management of road infrastructure

• Capacity building on road safety and outreach activities in the context of the Decade of Action for Road Safety

• Implementation of ITS technologies to improve traffic management

At a Glance

• No. projects: 77

• No. Countries: 24

• EBRD Finance/Project Value: EUR

5.7 billion / EUR 25.0 billion

• Total portfolio projects: 31%

Some references in the Road Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 14

• Removal of bottlenecks and reduction of traffic congestion through financing key road infrastructure (WHSD, St Petersburg/Eurasia Tunnel, Istanbul, etc.)

• Involvement of private sector in PPP revenue generating projects that meet economic and financial criteria (R1, Slovakia/M6, Hungary, etc.)

• Introduction of commercial criteria in the management of road infrastructure (Albania, Bosnia & Herzegovina, FYR Macedonia, etc.)

• Road Construction and rehabilitation to ensure an efficient network and road safety (Kyrgyz Republic, Kazakhstan, Azerbaijan, Ukraine, etc.)

• Construction of rural roads to improve accessibility in rural areas (Albania, Tajikistan, etc.)

• Provision of donor funding to support corporate reform, road safety and the introduction of new technologies

Some clients in the road sector

Private companies

State-owned companies

EBRD in the Rail Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 15

• EBRD supports rail development in the region:

− Rehabilitation or construction of new track, signalling, power supply and maintenance to develop a more competitive system

− Rolling stock and maintenance facilities

− Station rehabilitation and management, traction energy and telecommunications

− Balance Sheet restructuring and corporate finance

• Financing rail reform through different players:

Long term sovereign and non-sovereign debt to

state-owned companies, in addition to debt to

private and intermodal operators

• Focussed on bringing infrastructure to

international standards of safety, security and

environmental compliance

• Promoting the rail system as an environmentally

sustainable transport mode, whilst encouraging

energy efficiency technologies to keep its

competitive advantage

At a Glance

• No. projects: 73

• No. Countries: 22

• EBRD Finance/Project Value: EUR 3.9

billion / EUR 13.6 billion

• Total portfolio of projects: 30%

Some references in the Rail Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 16

• Renewal of the rolling stock: acquisition of

wagons by private operators (Russia, Ukraine,

Kazakhstan, etc.), EMUs and modern

locomotives (Croatia, Serbia, FYR Macedonia,

Montenegro, etc.)

• Investments in energy efficient technologies in

ancillary infrastructure (Russia, Serbia, FYR

Macedonia, etc.). Capacity building support

with regards energy efficiency

• Expanding capacity through new rail

infrastructure and major rehabilitation works

(Serbia, FYR Macedonia, Montenegro)

• Promotion of rail competitiveness along the

Trans-European Strategic Corridors (Corridor X,

Corridor VIII, etc.)

• Innovative PPP schemes including the

refurbishment and commercial operations of

rail stations in the Czech Republic

Some clients in the rail sector

EBRD in the Maritime Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 17

At a Glance

• No. projects: 47

• No. Countries: 15

• EBRD Finance/Project Value: EUR

0.7 billion / EUR 2.3 billion

• Total portfolio of projects: 19%

• As the most energy efficient mode of mass

transport, carrying 90% of world trade, the

Bank supports capacity development to meet

growing demand efficiently:

− Active support of private sector involvement in greenfield projects

− Terminal and port structures and development of state-owned infrastructure

− Finance of fleet modernisation and retrofitting in a market dominated by over-aged vessels

− Introduction of EE best practices (port environment and vessel operators) and compliance with IMO regulations

− Promotion of short sea shipping

• Long established policy dialogue with regional

governments on the commercialisation of port

infrastructure and the separation of port

infrastructure management from the state

Some references in the Maritime Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 18

• Pre and post delivery financing of Fleet

modernisation and capacity development

(Fesco, VBTH, BSSM, Circle Maritime Invest,

etc.)

• Partnering with IMO to build capacity about

environmental protection in the shipping

industry (ballast water management)

• Expanding port infrastructure (Albania,

Romania, Lithuania, etc.) contributing to

more efficient and sustainable transport

routes

• Support to greenfield projects under

concession terminal and port structures

• Contributing to greening port activity in

Russia through capacity building in equity

participation (Globalports) or the introduction

of innovative technologies (Klaipeda)

• Supporting a more efficient maritime

navigation System in the Gulf of Finland

Some clients in the maritime sector

EBRD in the Logistics & Intermodal Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 19

1. Excludes those projects already accounted for under other subsectors

At a Glance1

• No. projects: 10

• No. Countries: 4

• EBRD Finance/Project Value: EUR 0.4

billion / EUR 1.2 billion

• Total portfolio of projects: 4%

• A Sustainable transport system requires the

development of a multimodal network to

facilitate intermodal services

• The Bank assists private operators to structure

their investments efficiently to take advantage

of new opportunities

• Fleet renewal of private and state-owned

companies on a commercial basis

• Freight infrastructure, logistic centres, etc.

• IPO participation and in the private placement

of logistic operators

• Development of intermodal services and green

logistics

• The Bank is able to support privatisation

alongside a strategic investor as a debt or

equity partner

Some references in Logistics & Intermodal

Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 20

• Intermodal operations – multipurpose

logistics hubs, marshalling yards, diversified

transportation network connections (Arkas,

Danube Logistics, Fesco, etc.)

• Fleet acquisition (Globaltrans,

Transcontainer, JN Nurinem, etc.)

• Freight infrastructure – cargo warehousing,

cold warehousing, machinery

• Port infrastructure – Container handling

operations, inland infrastructure

(Euroterminal Odessa, Poti Port, etc.)

• Capital markets – Eurobonds, Initial Public

Offerings, Secondary Share Offering, Private

Placement (Global Ports Investments,

Fesco, Brunswick Rail, Globaltrans, etc.)

• Provision of donor funding to enhance

corporate governance and environmental

standards

Some clients in the logistics sector

EBRD in the Aviation Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 21

At a Glance

• No. projects: 38

• No. Countries: 18

• EBRD Finance/Project Value: EUR

0.7 billion / EUR 2.7 billion

• Total portfolio of projects: 16%

• Regional specialist, increasing private

sector engagement through PPPs and the

provision of outsourced services

• Financing to airports, air navigation

providers and airlines to improve passenger

comfort and safety

• Promotion of modern air navigation

systems facilitating efficient route

management and landing operations.

Actively supports affiliation with

international organisations such as

Eurocontrol

• Enhancing aviation safety and

environmental standards by promoting

international best practice

• Promoters of energy efficiency in the

sector, including governance standards,

emission reduction and improvements to

the built environment

Some references in the Aviation Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 22

• Regional Specialist delivering PPP

schemes at key international airports in

the region (Tirana, Tbilisi, St Petersburg ,

Yerevan, etc.)

• Modernisation of air navigation systems,

allowing shorter routes and significant

fuel savings (Serbia, Croatia, Ukraine,

etc.)

• Enhancement of the safety of commercial

aviation and development of civil aviation

in general

• Replacement of the oldest aircraft in

Ukraine or Tajikistan, contributing to the

development of a safer and more energy

efficient sector

• Introduction of the highest energy

efficiency standards in the design of

airport terminals in St. Petersburg and

Izmir

Some clients in the aviation sector

Case Studies

23

a

a

28 November, 2014 © European Bank for Reconstruction and Development 2012 24

Case Study R1 Motorway Refinancing, Slovakia

Client: Granvia, a special purpose vehicle owned by VINCI Concessions SA

and Meridiam Infrastructure Fund

EBRD finance: EUR 200 million

Type of finance: Project Bond

Total Project cost: EUR 1,243 million

Year: 2013

Project description: Refinancing of the R1 Motorway PPP project

Impact: Optimising the long-term financing of newly constructed sections

on the R1 Motorway PPP between Nitra and Tekovske Nemce and

the Banska Bystrica Northern Bypass, totalling 51.6 km

Fostering economic development in central Slovakia through

provision of private sector engagement in road sector financing

The project demonstrates EBRD engagement as a long term partner in support of the

Slovakian Government’s PPP programme, following on from the successful construction

and operational start of the R1 Motorway.

Industry Recognition 2013

PFI Award 2013 - Bond Deal of the Year – Europe

a

a

28 November, 2014 © European Bank for Reconstruction and Development 2012 25

Client: Stadler Minsk, the JV between Stadler Rail, a Swiss leading system

supplier of customer-specific solutions for rolling stock, and the

Minsk Region Executive Committee, an executive government body

in Belarus

EBRD finance: EUR 26.0 million

Type of finance: Senior Loan

Total Project cost: EUR 73.7 million

Year: 2013-2014

Project description: Construction of new modern production facilities on a greenfield site

and the modernisation of existing tram and trolleybus production

facilities of Belkommunmash (BKM), a leading Belarusian

manufacturer of trolleybuses and trams in CIS

Impact: Utilising the latest manufacturing technologies and providing skills

and know-how transfer from Stadler to the JV’s local employees

Demonstrating the successful reorganisation of a state-owned

entity to a majority privately-owned company controlled by a

Western strategic sponsor through the establishment of the JV

Introducing an enhanced management system structured in

accordance with international standards

The project supports the reorganisation and commercialisation of a state-owned entity into

a majority private-owned company, and introduces advanced technologies in

manufacturing of rolling stock.

Case Study Rail Wagon Production Facilities, Belarus

a

a

28 November, 2014 © European Bank for Reconstruction and Development 2012 26

Client: Mersin International Port

EBRD finance: EUR 61.2 million

Type of finance: Eurobond

Total Project cost: EUR 634 million

Year: 2013

Project

description:

Financing part of the capital investment programme for the capacity

expansion of Mersin Port and optimisation of the Company’s long

debt financing

Impact: Demonstrating new ways of financing infrastructure through

participation in the debut bond issue by an infrastructure

company

Contributing to improvement in the quality and variety of port

services, expansion of the product offering by the Company, and

encouraging further development of regional port hubs as well as

increased transhipment

Strengthening competitive position of Mersin port with respect to

its main competitors in the Eastern Mediterranean The project supports the reorganisation and commercialisation of a state-owned entity into

a majority private-owned company, and introduces advanced technologies in manufacturing

of rolling stock.

Case Study Turkey’s First Infrastructure Bond – Mersin Port

Industry Recognition 2013

Port Deal of the Year (MEA)

a

a

28 November, 2014 © European Bank for Reconstruction and Development 2012 27

Client: Gebrüder Weiss (JV between GW International, Austian transport and

logistics company, and Tegeta Motors, Georgian auto parts retailer)

EBRD finance: EUR 1.0 million

Type of finance: Senior loan

Total Project cost: EUR 12.0 million

Year: 2013

Project

description:

Construction of the intermodal logistics terminal

Impact: Building the first logistics terminal of this type and scale (11,300

m²) in Georgia with state of the art warehousing facilities

introducing new all-in-one service (the full spectrum of transport

and logistics)

Transferring international know-how and expertise, including

efficient inventory management and bundle services, to the

Company in Georgia

The project supports the development of an intermodal logistics terminal in Georgia

addressing the needs for quality warehousing infrastructure, modern supply chain

management as well as cost-efficient and flexible transport services.

Case Study First Modern Logistics Terminal, Georgia

a

a

28 November, 2014 © European Bank for Reconstruction and Development 2012 28

Client: The FYR Macedonian Air Navigation Service Provider, the state-

owned national air navigation service provider of FYR Macedonia

EBRD finance: EUR 11.15 million

Type of finance: Non-sovereign senior loan

Total Project cost: EUR 16.75 million

Year: 2013

Project

description:

Upgrade and renewal of air navigation equipment under the Local

Single Sky Implementation Programme

Impact: Improving business practices resulting from the introduction of

operational practices required under European Civil Aviation

Association harmonisation programme

Improving the functioning of regulatory entities and practices by

aligning regulatory provisions with European standards

Strengthening public institution that support the efficiency of

markets by introducing the transparency and ensuring adequate

air navigation safety and capacity provision on a cost-recovery

basis

The project supports the Macedonian Air Navigation Service Provider at the next stage of

on-going European integration and assisting it in meeting the next stage of compliance

requirements under the Single European Sky programme.

Case Study Macedonian Air Navigation Service, Macedonia

EBRD and the Municipal and Environmental

Infrastructure Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 29

• Structuring the financing of municipal infrastructure, equipment and

services to improve service levels

• Promote commercialisation and corporatisation of services

• Development of regulatory structures

• Promotion of private sector involvement, where appropriate

• Environmental, social, health and safety improvement

• Facilitate donor grant and commercial loan co-financing

EBRD’s role in the municipal sector

EBRD helps local authorities meet their infrastructure needs

@European Bank for Reconstruction & Development 28 November, 2014

30

EBRD: A catalyst for change

• To support restructuring and enhance municipal services to improve people’s lives

• To encourage sustainable development (financial, environmental and energy efficiency)

• To promote transition market based economies optimising public sector support to service delivery

Key Objectives

© European Bank for Reconstruction and Development 2012 28 November, 2014 31 31

EBRD and municipal finance

28 November, 2014 © European Bank for Reconstruction and Development 2012 32

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• Activity started in 1994

• Turkey started in 2009

• SEMED started in 2012

• Over 300 projects signed and almost €5billion invested by EBRD

• 54% municipal (sub-sovereign)

• 25% private clients/ PPPs

• 21% sovereign

• Over €6.6 billion of cofinancing mobilised

• 2013 strong year with €560million invested

• Voted ‘Best Multilateral Team 2013’ by World Finance Infrastructure Investment Awards.

Note: Reconciled as at 31 December 2013

EBRD’s presence in Municipal and

Environmental Infrastructure Sector

© European Bank for Reconstruction and Development 2012 28 November, 2014 33

Active Portfolio by Region

Projects financed in over 25 countries of operation

Note: Active portfolio as at 30 June 2014

28 November, 2014 © European Bank for Reconstruction and Development 2012 34

The Bank supports municipal infrastructure, investing a total of EUR 4.93 billion

to date as of end February 2014 across all sectors to support over 300 projects

Net Cumulative Bank Investment

by Funding Type (in project numbers)

Net Cumulative Bank Investment

by Sector (in project numbers)

Note: Net cumulative Bank Investment as at 30 June 2014

EBRD’s presence in Municipal and

Environmental Infrastructure Sector

28 November, 2014 © European Bank for Reconstruction and Development 2012 35

Key sectors covered

Water & Wastewater New and rehabilitated water and waste water treatment plants, network rehabilitation and extensions as well as pumps and metering to improve the quality of service and environmental compliance; investment in both maintenance and asset renewal

Urban Transport Fleet and rolling stock renewal, metro, LRT, buses and trams, public transport infrastructure, including track, power supply and signalling, deport refurbishment, e- ticketing and automated fare collection; traffic management and vehicle information systems, and rehabilitation of municipal streets

Solid Waste Investment in new landfills, recycling and collection equipment to improve both the efficiency and frequency of collection and well as to prevention of groundwater contamination

District Heating/ District heating/cooling, parking, ESCOs and facilities management to

Other Municipal promote efficiency gains and new ways of service delivery Services

EBRD support to PPPs

With public authorities

• General advice on acceptable

process

• EBRD Policy for Concessions

• Grant funded technical assistance

• General letter of interest to finance

With bidders

• Pre-bidding dialogue with interested players

• Review of financing instruments (equity, debt)

and indicative financing terms

• EBRD cannot commit to exclusivity (‘open

support’)

• After award, negotiation of detailed terms

and conditions with the preferred bidder

28 November, 2014 @European Bank for Reconstruction & Development 36

Case Studies

28 November, 2014 @European Bank for Reconstruction & Development 37

Romania: EU Cohesion Fund Co-Financing

Framework

• EUR 200 million Framework to provide co-financing on a non-recourse basis to regionalised water companies to co-finance their EU Cohesion Fund projects

• EUR 130 million extension approved in 2012

• EBRD loan typically 15% of total project costs =>exception from EU procurement rules

• 15 year tenor, 4 year grace

• Non-recourse but 6-month debt service reserve account

• Project Support Agreement with key city/county, underpinning obligations under the Delegation Management Contract

• To date, 21 loans signed for almost €300 million

28 November, 2014 @European Bank for Reconstruction & Development 38

Sofia Water Project, Bulgaria

• Client: Sofiyska Voda, currently 77 per cent

owned by Veolia Water and 23 per cent owned

by the City of Sofia

• EBRD Finance: EUR 51.5 million Total project

cost: EUR 147 million

• Investment in Sofiyska Voda’s priority

investment programme, including investment in

water and wastewater treatment

• A well balanced concession contract combined

with efficient project implementation and

necessary tariff increases lead to an increase in

investment and higher service levels.

• Project supported the development of the

regulatory framework in the water sector.

28 November, 2014 @European Bank for Reconstruction & Development 39

Turkey: TASK Water PPP loans

• TASK Group, a privately owned water

and wastewater operator in Turkey

• EBRD project financing:

− TASK Güllük (Bodrum) EUR 2.5 million loan to upgrade water and wastewater facilities at the Güllük municipal concession

− TASK Dilovasi (Marmara) EUR 13.5 million loan to finance a WWTP BoT

• Bank partnered with Akfen, a pioneer and leader of the

PPP business in Turkey, and Tahal, a water operator and

engineering firm with broad-based geographic experience

Aim is to assist in increasing private sector participation

in the water market in Turkey by supporting the Company’s

ongoing investment plans

28 November, 2014 @European Bank for Reconstruction & Development 40

Dalkia Polska

28 November, 2014 © European Bank for Reconstruction and Development 2012 41

• EUR 70 million invested alongside

Dalkia Group for a series of investments in Poland

over the 1998-2004 timeframe.

• EBRD held a 35% stake in Dalkia Polska.

Dalkia International remained the controlling

partner with a 65% stake.

• EBRD’s funds allowed Dalkia Polska to

invest throughout the region in ESCO type

projects as well as district heating

opportunities (privatisations, concessions,

lease contracts).

• EBRD exit in mid 2010 by selling shares back to Dalkia

EBRD’s involvement has enabled increased private sector

participation, as well as improved energy efficiency and cost

effectiveness at operating companies.

Turkey: Istanbul Ferries LBO loan

• 2011 privatisation of 100% of IDO – world’s largest

municipal ferry operator

• Inter & inner city services across the Bosphorus and

the Marmara Sea

• 51 mln passengers a year ,52 vessels and 35 ferry

terminals

• EBRD-led acquisition financing of USD 750 mln

• Award for USD 861 mln to TASS (Tepe-Akfen-Sera

and Brian Souter)

• EBRD finance: junior loan USD 50 mln, EBRD senior

loan USD 100 mln & Turkish banks USD 600 mln

• Currency and interest rate hedging facilities

• Introduction of new demand-driven ticket tariffs,

creation of new routes and intermodal passenger

transportation services

28 November, 2014 @European Bank for Reconstruction & Development 42

Poland: Wrocław Parking PPP loan

• SPV supervised by Mota-Engil Group

• Tenor of the concession – 40 years

• EBRD Finance: PLN 31.3m (equivalent to

EUR 8m)

• Tenor – 15 years, including a 3 year grace

period

• Pledge of selected assets

• Long term concession to design, construction and

operation of an underground parking facilities of

331places in close proximity to the historical centre of

Wroclaw

• Ease traffic congestion caused by drivers searching for

scarce parking

• Enforcement of traffic laws and restrictions

28 November, 2014 @European Bank for Reconstruction & Development 43

Project

Summary

EBRD supports first municipal water

company to issue revenue bonds

EUR 222 million in long-term co-

financing to Miejskie Wodociagi I

Kanalizacja w Bydgoszczy Sp. z o. o to

improve quality of water services to

Poland’s eighth largest city, Bydgoszcz

This revenue bond programme will

enable a new class of investors to

finance infrastructure in Poland

Signed in

2005

© European Bank for Reconstruction and Development 2012 28 November, 2014 44

Project

Summary

Equity investment by EBRD supports

expansion of transport network

EBRD acquired a 35 per cent equity

stake in Veolia Transport Central Europe

GmbH, the leading passenger operator in

Central and Eastern Europe to support

further expansion

The investment will increase private

sector participation

Signed in

2007

© European Bank for Reconstruction and Development 2012 28 November, 2014 45

Project

Summary

EBRD invests in the energy efficiency of a

district heating system in Romania

EUR 15 million loan to Colterm, a district

heating company owned by the

Romanian city of Timisoara, to invest in

energy efficient generation of both heat

and electricity

First project in Romania to link project

financing with carbon credits

Signed in

2006

© European Bank for Reconstruction and Development 2012 28 November, 2014 46

Contacts

28 November 2014 @European Bank for Reconstruction & Development 21

For all further enquiries, please

contact:

Giacomo Ottolini,

Transport

Tel: +44 20 7338 7425

ottoling@ebrd.com

EBRD, One Exchange Square

London, EC2A 2JN

United Kingdom

www.ebrd.com

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