page 1 of 10
EUROPEAN UNION
Committee of the Regions
Factsheet An online course (MOOC) for regional and local authorities
Financing a city’s or region’s long-term capital investment programme: EIB framework loans
When might a city of region need a framework loan?
(...) Framework loans can be used to finance multiple small and me- dium sized projects, usually in the size range EUR 1-50 million, over a period of normally 3-5 years. (...) The total size of the investment programme fi- nanced under a framework loan is usually over EUR 100m, with the EIB framework loan providing up to 50% of the total financing.
Language:English
Score: 1297374.2
-
https://www.undrr.org/media/81233/download
Data Source: un
SYNTHETIC LOCAL CURRENCY LOANS Synthetic Local Currency Loans (SLCLs) represent part of the Bank’s response to demand from clients for financing in their own currency to reduce foreign exchange risk. (...) SYNDICATION OF NON‐SOVEREIGN GUARANTEED LOANS As part of its mission to mobilize capital for productive use in viable projects in Africa, the Bank offers two loan syndication structures ‐ the more common parallel co‐financing loan structure and the A‐ and B‐loan structure. (...) Partial Credit Guarantees
PCGs cover a portion of scheduled repayments of private loans or bonds against all risks. They could be utilized to support mobilization of private funds for project finance, financial intermediation and policy‐ based finance.
Language:English
Score: 1292168.1
-
https://www.wto.org/english/tr...udies_e/adb_products_can.e.pdf
Data Source: un
iHEEP workshop on financing the infrastructure projects
iHEEP workshop on financing the infrastructure projects
Bosnia and Herzegovina
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
BOSNIA AND HERZEGOVINA ROAD ADMINISTRATION
Ministry of Transport and Communications
of Bosnia and Herzegovina
Ministry of transport and Communications of the Federation of
BH
Public Enterprize Motorways of FBH
Public Enterprize Roads of FBH
Ministry of transport and Communications
of the RS
Public Enterprize Motorways of RS
Public Enterprize Roads of RS
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Sources of financing of transport inftrastructure projects
• BH budget • Entities’ budgets • International financial instritutions (IFI), i.e:
– European Investment Bank (EIB) – European Bank for reconstruction and development (EBRD) – World Bank (WB) – European Central Bank (ECB) – Kuwait Fund for Arab Development (KFAED) – OPEC
• IPA funds – West Balkans Investment Framework (WBIF) • PPP – there are plans and regulative framework, but still
not in operation
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Sources of financing of transport inftrastructure projects - BH budget
• Licences for global system for mobile communications (GSM) – From 2004 to 2011 for preparation of preliminary
studies and designs on the the motorway on the Corridor Vc (31 Mil.€),
• Licences for Universal Mobile Telecommunications Sytem (UMTS) • From 2011 to 2015 for preparation of the main design of
the priority sections of the motorway on the Corridor Vc (33 Mil.€).
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Sources of financing of transport inftrastructure projects – Entity budgets
• Three main groups of sources of financing of roads on entity level are:
– Public revenues,
– Loans
– Donations and grants
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Sources of financing of transport inftrastructure projects – Entity budgets • Public revenues include following sources:
– Vehicles’ registration fee – Fee from retail proces of fuel – Road charges for foreign vehicles, – Tolling of motorways, expressways and other particular
roads, – Special fee “Help and information on the road” – Fee for extraordinary transportations, – Fee for excessive use of roads due to load and frequency
of use, – Fee for road land use – Other fees.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Minimum set excize duties on fuel in BH compared with the EU
Source: Study on road finanancing of FBH, 2014
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
• Available funds are insufficient for needed investment into improvement of the network, apart from construction of motorways.
• For trunk and regonal roads most of interventions is related to maintenance activities.
• Between 2007 and 2011 Road rehabilitation program was implemented in both entities, total amount of ca 200Mil.€ is used for road surface improvement, not including any intervantions requiring land acquisition.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
• Road rehabilitation program was financed by loan from three major international financial institutions: WB, EIB and EBRD.
• Condition of road surface is signifficantly improved, but some important issues, requiring land acquisition, remain.
• That is the reason why road authorities have designed some new programes, like following one: FBH TRUNK ROADS MODERNIZATION PROGRAM.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Modernization program includes following groups of projects:
• construction of bypasses,
• reconstruction of alignment,
• construction of slow (crowling) lanes,
• reconstruction of road structures (bridges and tunnels),
• reconstruction of black spots and
• repair of remaining flood damages on roads in FBH.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
FBH TRUNK ROADS MODERNIZATION PROGRAM 2016-2020
• Current stage of preparation of the program is as follows: – Loan contract between BH and EIB signed in
February 2016,
– Negotiations with EBRD are finalized in May 2016, signing of the loan contract is expected in July 2016,
– In May 2016 negotiations with the WB took place in Sarajevo, loan contract agreement expected in September 2016.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
PLAN OF REALIZATION OF WORKS PER TYPE OF WORKS
Izgradnja ceste 60.17%
Trake za spora vozila 6.37%
Rekonstrukcija ceste 3.23%
Tuneli 3.73%
Mostovi 2.39%
Crne tačke 0.94%
Izgradnja obilaznica 13.85%
Poplave 4.35%
Konsultanttske usluge 4.98%
Izgradnja ceste
Trake za spora vozila
Rekonstrukcija ceste
Tuneli
Mostovi
Crne tačke
Izgradnja obilaznica
Poplave
Konsultanttske usluge
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Procedure for loan/financing agreement, example from Road rehabilitation program 2007-2011
• Five different contracts (one loan agreement with EBRD): – Loan agreement beween Ministry of treasury and
finance of BH and EBRD,
– Supporting contract between FBH and EBRD,
– Subsidiary loan agreement between BH and FBH,
– Loan sub-contract between FBH and implementator PE Roads of FBH,
– Loan contract between EBRD and PE Roads of FBH, implementing body and beneficiary.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
• Results of several studies regarding road financing show that available funds are not sufficient for road mainenance and furter development of the network.
• On the other hand, available funds from IPA can’t be used, since transport strategy on state level is not yet adopted. It is expected to be finalized in June 2016, before the Western Balkans Conference in Paris (4.7.2016), which is expected to introduce needed additional funds from sources currently not available.
iHEEP workshop od financing the infrastructure projects, June 30th, 2016
Language:English
Score: 1277642.4
-
https://unece.org/DAM/trans/do...2016/TEM/Bosna_Herzegovina.pdf
Data Source: un
PowerPoint Presentation
11
Transport infrastructure financing byTransport infrastructure financing by the European Investment Bankthe European Investment Bank
Axel Axel HHöörhagerrhager Senior EconomistSenior Economist
UN ECE Workshop on Transport Infrastructure Development
in the context of Euro-Asian Transport Links Geneva, 14 September 2007
22
SummarySummary
• About the European Investment Bank (EIB)
• Transport Infrastructure Financing
• Lending criteria and appraisal
• Instruments for assistance in the project cycle
33
The EuropeanThe European Investment BankInvestment Bank EIB (1)EIB (1)
• Long term lending institution of the EU • A European Community institution founded
as part of the Treaty of Rome • Shareholders are member states of the EU • Objectives:
- to further EU economic integration - to promote policies of common interest
44
The EuropeanThe European Investment BankInvestment Bank EIB (2)EIB (2)
• Follows sound banking principles
• Projects should be economically sound
• Borrowers should be able to reimburse loans
• First class guarantees are required
55
The EuropeanThe European Investment BankInvestment Bank EIB (3)EIB (3)
• Governors of Bank are Finance Ministers of EU • Board of Directors make decisions • Management Committee manages the Bank • Headquarters in Luxembourg • Banking department prepares loans • Technical department provides advice • Some 120 engineers and economists
66
The EuropeanThe European Investment BankInvestment Bank EIB (4)EIB (4)
• Annual EIB loan volume some 45 billion EUR • Some 90% in EU, 10% outside EU • Inside EU, no ceilings or quotas • Outside EU, Bank operates in the context of Mandates
conferred by European Council with budget guarantees • Volume 2007-2013 of 27.8 billion EUR, of which
- Eastern Europe, Caucasus and Russia 3.7 bn EUR - Asia 1 bn EUR
77
The EuropeanThe European Investment BankInvestment Bank EIB (5) EIB (5) –– Mandates outside EUMandates outside EU
Pre- Accession countries
Mediterranea n countries
EE,Caucasus, Russia
Asia
Latin America RSA
88
Transport Infrastructure Financing Transport Infrastructure Financing by EIB (1)by EIB (1)
• Prime objective: Trans-European Networks
• All modes, environmental compatibility emphasized
• Neighbouring states: connections to EU
• Political framework: various EU initiatives
• Example: Palacio High Level Group on transport links with EU Neighbours
99
Transport Infrastructure Financing Transport Infrastructure Financing by EIB (2)by EIB (2)
• TENS: in 2006, some 7.3 bn EUR, of which roads 43%, rail 38% and others 19%
• Example: Poland 300 mn EUR loan towards construction and repair of TEN motorways
• Example: Slovakia 50 mn EUR loan towards D1 motorway section Bratislava-Zilina
• Example: Austria 140 mn EUR loan towards railhub development on East-West corridor
1010
Transport Infrastructure Financing Transport Infrastructure Financing by EIB (3)by EIB (3)
• Pre-accession and neighbourhood states: in 2002-07 some 6.3 bn EUR for transport infrastructure
• Main areas: Turkey, Balkan countries • Recent inclusion of eastern neighbours • Example: Ukraine 200 mn EUR loan towards
rehabilitation of motorway Kiev-Brody (along Pan-European Corridor III)
• Example: China 500 mn EUR loan towards expansion of Beijing International Airport
1111
LendingLending criteria and appraisal (1)criteria and appraisal (1) The project cycleThe project cycle
Appraisal and preparation of credit decision
Loan negotiations and approvals
Bank/National authorities
Project selection and
proposal
1212
LendingLending criteria and appraisal (2)criteria and appraisal (2)
• Technical feasibility – optimal technical solutions • Economic feasibility – project must pass a
Cost-Benefit Analysis • Environmental feasibility – project must successfully
undergo environmental assessment (EIA, SEA) • Financial feasibility – project must be financially viabl
or have assured support
1313
LendingLending criteria (3)criteria (3) some possible implementation modelssome possible implementation models
• Classical public debt financing – sometimes cheapest !
• Structured financing – complex and requires appropriate frameworks
• Public private partnerships – useful, but no panacea example under discussion: St. Petersburg Ring Road
• Commercial financing - services
1414
Instruments for assistance (1)Instruments for assistance (1) FinancialFinancial
• Some projects require grants as well as loans
• Loans – maturities should be appropriate to nature of assets
• Grants sometimes required to provide basic infrastructure and provide the basis for commercial development
1515
Instruments for assistance (2)Instruments for assistance (2) Technical Technical
• Project identification and development
• Feasibility studies
• Design
• Supervision
• Project Management
1616
Instruments for assistance (3)Instruments for assistance (3) Sources and mechanismsSources and mechanisms
• Multilateral – EU, World Bank
• Bilateral – but NB conditions
• Issues of donor coordination
• Existing cooperation mechanisms, e.g.
Language:English
Score: 1276513.7
-
https://unece.org/DAM/trans/do...2007/wp5/Presentations/EIB.pdf
Data Source: un
Microsoft PowerPoint - Payen_UN_Nairobi_Localfinance_2006-12-07
1
Water & sanitation services
Enhancing Access to finance for Local Governments / Operators
UNDESA – UN-Habitat Nairobi December 7, 2006
Gérard PAYEN Member of the “Gurria Task Force” on Financing Water for All Member of the UNSG’s Advisory Board on Water & Sanitation
President of AquaFed
Enhancing access to finance for local governments / operators
n Financing water: the global viewpoint
Main financing flows
Loans: from supply to demand
Key recommendations for action
A major political move
2
International water community
Water challenges at the global level
Local water authority
Local water operator
Country government
National governments – United Nations – Development banks
Financing Water & local governments
3 high-level reports on water
“Camdessus” report March 2003
“Gurria” report March 2006
UNSG’s Advisory Board report March 2006
A recent UN report on water Human Development Report November 2006
Access to finance for local governments
3
Analysis of the situation
Camdessus: all financing flows to double !
No material change in financing flows since Kyoto WWF3. (HDR2006 insists)
Water management is a local issue
Multilaterals have moved towards the “subsovereigns” but request “creditworthiness”
Enhancing access to finance for local governments / operators
n
Financing water: the global viewpoint
Main financing flows
Loans: from supply to demand
Key recommendations for action
A major political move
4
Increasing financing flows ?
(...) Enhancing access to finance for local governments / operators
n
Financing water: the global viewpoint
Main financing flows
Loans: from supply to demand
Key recommendations for action
A major political move
9
Key financial recommendations
Central governments to have Water Action Plans
Local governments to have Water Action Plans
Develop Sustainable Cost-Recovery policies
Central governments to facilitate access to finance for local governments
Develop local financial markets
Long-term maturities with affordable interest rates
Develop pooling mechanisms
To improve access to finance by local governments / operators
C,G,U,H
G
C,G,U,H
C,G,U
G,U
C,G,U,H
C,G,U,H
C = Camdessus G = Gurria U = UNSGAB H = HDR2006
Enhancing access to finance for local governments / operators
n
Financing water: the global viewpoint
Main financing flows
Loans: from supply to demand
Key recommendations for action
A major political move
10
A new voice in the international community
DECLARATION ON WATER BY MAYORS AND LOCAL ELECTED REPRESENTATIVES At the Fourth World Water Forum, Mexico, 21 March 2006
We, mayors and local elected representatives, call on national governments, regional and international organisations and the United Nations to:
4.3.
Language:English
Score: 1275062
-
https://www.un.org/esa/sustdev...africa/presentations/payen.pdf
Data Source: un
However, IPPF is concerned about the emphasis to increase domestic financing through the GFF Trust Fund, which explicitly links grant to loan funding. (...) IPPF is concerned about the negative implications of linking grant and loan funding for sustainable financing for SRHR. (...) As grants will be linked to loan financing, this could create future of cycles of indebtedness for governments already struggling to finance core sectors such as health.
Language:English
Score: 1274507.8
-
https://www.who.int/pmnch/medi...2015/cso_ippf_gff_briefing.pdf
Data Source: un
Loans to women = smart economics | Africa Renewal
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Loans to women = smart economics
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Financing For Development
Loans to women = smart economics
Women find innovative ways of financing projects
From Africa Renewal:
August 2015
By:
Zipporah Musau
Photo: DPPS
A table banking session in Samburu, Kenya. (...) Topics:
loans
sustainable development
financing for development
Also in this issue
Cover Story
Funding the planet’s future
Also
Ethiopia’s development is mostly people-driven
Financing For Development
For development finance, there is no one-size-fits-all solution
Also
African statistics have come of age
Also
Using trade to boost Africa’s industrialization
Also
The changing face of Ethiopia
Financing For Development
Can Africa fund its own growth?
Financing For Development
Borrowing responsibly: Africa’s debt challenge
Financing For Development
Billions now required to save depleted healthcare systems
Financing For Development
New bond issue set to help Africa go ‘green’
Financing For Development
Loans to women = smart economics
Financing For Development
Think beyond microfinance when talking about businesswomen
Financing For Development
Microfinance: Good for the poor?
Language:English
Score: 1273008.8
-
https://www.un.org/africarenew...15/loans-women-smart-economics
Data Source: un
Credit lines: The EBRD provides direct medium- to long-term funding in the form of credit lines to selected financial intermediaries to finance the loan demand. In some cases, the EBRD will provide similar long-term funding to governments, which then channel these loans through commercial or investment banks for financing private sector SMEs. (...) Covenants: Typical project finance covenants are required as part of the loan package. (...) In the cast of scientific research the financing is partial. Interventions by the EIB take the form of loans on preferential terms and, in some cases, subsidized loans. 5 Application process Support for telecommunications is not separate from economic cooperation or development aid.
Language:English
Score: 1272789.1
-
https://www.itu.int/itudoc/itu-d/wtdc/wtdc98/docs/49_ww7.doc
Data Source: un
And of the first MSME loans, financed through Fagura, were given to women-led companies. (...) Taking into account the global trend of promoting eco-friendly businesses, eco-products and those made from recyclable materials, we proposed that on the Fagura platform we would like to support these initiatives, so to accelerate development.
What financing opportunities do Moldovan SMEs have?
Andrei: Bank loans are the main source of financing, followed by those offered by the non-bank micro-financing organizations (micro-lending companies, leasing companies, savings and loan associations etc.). (...) Inga: Currently, the maximum amount of financing offered by Fagura is €5000. Thus, we tend for the first 50 loans to be offered, mostly, to startups and micro companies.
Language:English
Score: 1270153.6
-
https://www.undp.org/moldova/n...-tools-become-more-competitive
Data Source: un
Roche USAID DCA
1
Unlocking Credit to Spur Energy Investments:
The Development Credit Authority
Ed Roche Office of Development Credit
US Agency for International Development Commission for Sustainable Development 15
May 1, 2007
2
Domestic Credit Provided by the Banking Sector (as a percentage of GDP)
161%
79%
48%
High-income Middle-income Low-Income
Importance of Credit
2
3
Impact of Credit Guarantees
Risk Perception
Collateral Requirements
Longer-term Financing
Importance of Credit
4
• True private sector risk-sharing
• Leverages local capital and financial resources
• 50% guarantees reduce Moral Hazard
• Sustainability
Development Credit Authority (DCA)
Guiding Principles
3
5
• Additionality; Guarantor of Last Resort
• Demonstration Effect
• DCA most effective when linked to TA or Policy Reform
Guiding Principles
Development Credit Authority (DCA)
6
DCA Guarantees Worldwide The DCA portfolio of 158 guarantees spans 46 countries.
(...) Africa (Reg.) 1
Asia & Near East (10) Bangladesh 1 Egypt 2 India 4 Indonesia 1 Jordan 2 Morocco 11 Philippines 2 Sri Lanka 1 Vietnam 3 West Bank/Gaza 1
Europe & Eurasia (14) Albania 1 Armenia 3 Bosnia 4 Bulgaria 6 Croatia 2 Georgia 4 Kazakhstan 2 Kosovo 1 Kyrgyzstan 1 Moldova 7 Romania 1 Russia 3 Serbia 1 Ukraine 3
Latin AmericaLatin America & Caribbean (12)& Caribbean (12) Ecuador 3 El Salvador 2 Grenada 1 Guatemala 5 Haiti 2 Honduras 6 Jamaica 3 Mexico 2 Nicaragua 5 Panama 1 Peru 8 Regional 2
Portfolio
4
7
DCA Guarantees by Sector
$188Agriculture
$292SME
$1,112TOTAL $6Education $6Health
$27Environment $58Energy $70Water
$105Infrastructure $151Housing
$210Microfinance
FY2006 (in $ M)Sector
1%
0%
2% 5%
6%
9% 14%
17%
19% 27%
Portfolio
8
Energy infrastructure financed in a variety of ways…
• Traditional – Grants – Loans – Bonds
• Less Traditional – Microfinance
Financing energy effectively and efficiently requires using all of these methods and more
5
9
Examples of credit support
USAID Loan Portfolio
Guarantee ESCO/ End User
ESCO/ End User
ESCO/ End User
Identified Lender
Increasing Access to Finance – Energy Efficiency
10
Examples of credit support
USAID Loan Portfolio
Guarantee Energy SME
Community/ End User
Operating contract/
Concessionaire
Identified Lender
Increasing Access to Finance – Energy Access
6
11
Bond Investors
Funds USAID Bond
Guarantee
Bonds
Utility
Projects
Bond Issuance – System Expansion & Upgrading
Examples of credit support
12
Special Purpose Vehicle (The Special Purpose Vehicle pools government
grants and private funds to on-lend to a group of low to high creditworthy utilities)
Government/ DonorLender
Grant or other supportFunds
USAID Guarantee
Debt Service
LoanLoan Loan
Utility Utility Utility
Pooled Loan Facility
Examples of credit support
7
13
Microfinancing Household Connections
Examples of credit support
Households without electricity Connection
Loan for Connection
Repayment of loan once connected and receiving electricity
Installs Household Connection
USAID Loan Guarantee
Lender
Repayment
Loan
Electric Utility (1st identifies potential
households)
Microfinance Institution
14
Concessionaire
Examples of credit support
LoanUSAID Loan (Portable) Guarantee
Repayment
Operator/Green IPP
(Un) Identified Lender
8
15
• Private financing is the final hurdle – Critical precursor: Reliable revenue flow – Utilities must improve management,
governance and political support for tariffs
• Financing must allocate risks efficiently – Grants and soft loans are not ends but means
• Financing should be considered for all energy markets, not only utilities
Conclusion
Language:English
Score: 1269957.9
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https://www.un.org/esa/sustdev/csd/csd15/lc/usaid_dca.pdf
Data Source: un