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
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
0
2
4
6
8
10
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Net c
um
ula
tive b
usin
ess v
olu
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Annual busin
ess v
olu
me (
AB
V)
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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Annual Business Investment Net Cumulative Business Investment
An
nu
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sin
ess I
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stm
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t, €
mil
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Ne
t Cu
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lativ
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usin
ess In
ve
stm
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t, € m
illion
• 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
EBRD, One Exchange Square
London, EC2A 2JN
United Kingdom
www.ebrd.com
47
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