Working with the European Bank for Reconstruction and Development. Encuentro Empresarial BERD - CEOE Madrid 22 de abril 2013

Transcription

1 Working with the European Bank for Reconstruction and Development Encuentro Empresarial BERD - CEOE Madrid 22 de abril 2013

2 Agenda 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 2

3 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 3

4 What is the EBRD? IFI to promote transition to market economies in 34 countries Largest single investor in the region: over 78.8 bln invested in 3,644 projects since 1991 Owned by 64 countries and two intergovernmental institutions (AAA/Aaa rated) Established in HQ in London, the Bank has 36 regional offices (half of our bankers are based in the region) Equity capital: 30 bn Strong, internationally recognized partner with long term perspective. Private sector oriented (80%) Annual Business Volume Note: As at 13th July

5 Where we operate CE & Baltics, 17% Russia, 27% Turkey, 7% Central Asia, 8% EE & Caucasus, 18% SE Europe, 24%

6 Our principles of operations Promotes transition to market economies, private ownership and good governance with respect for people and environment Transition Impact Invests in financially viable projects, together with the private sector Sound Banking EBRD Supports, but does not replace, private investment Additionality Focusing on the triplebottom line benefits: Economic, Social and Environmental

7 EBRD projects span every business sector Transport Municipal & Environmental Infrastructure Property & Tourism Financial Institutions Natural Resources Telecom, IT & Media Manufacturing & Services Power & Energy Industry, Commerce & Agribusiness

8 How we deliver transition Technical Cooperation Policy Dialogue Development of strong institutional and regulatory frameworks Donor funded technical cooperation to overcome barriers Projects & Investments Wide range of financing instruments for public and private clients 8

9 Key strengths: a unique offering Strong, internationally recognised financial partner with long-term perspective Private sector focused Higher risk appetite than other lenders. Long established policy dialogue with Government and Regulators (Political leverage and mitigation of political risks) Preferred creditor status in all countries of operations Catalysts to access additional finance (every 1 financed by EBRD leads to mobilize 2.3 from other sources 2 ) Flexible deal structure and product matching services Sectors and regional expertise: half of our bankers based in the region Donor funded Technical assistance available to overcome transition barriers and prepare projects

10 Business opportunities with EBRD EBRD as lender Public Procurement of goods and works in EBRD financed projects Consultancy Contracts to support EBRD or clients 10

11 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 11

12 EBRD infrastructure sectors Municipal & Environment Infrastructure District Heating Transport Aviation Municipal Transport Maritime Municipal Services Intermodal Solid Waste Rail Water & Sewage Road Excludes Energy, Telecoms, Natural Resources 12

13 Transport portfolio A portfolio of 10.4 bn invested in 260 projects in. % projects Road Rail Ports & Shipping Road rehabilitation and construction, toll-roads construction and operation, commercial principles, PPPs Bringing infrastructure to modern standards, strategic corridors, PPPs, renewal rolling stock, rail reform Greenfield port infrastructure, equipment, removal of bottlenecks, fleet modernization, inland waterways, and vessels 32% 27% 21% Logistics & Intermodal Intermodal nodes, Logistic centres, fleet of intermodal operators 2% Aviation Airport infrastructure, air navigation services 17%

14 MEI Portfolio A portfolio of 4.4 bn invested in 224 projects in. % projects Water & Sewage Water supply and sanitation, Innovative PPP schemes, environmental & social sustainability 47% Urban Transport Public transport (bus fleet renewal, LRT), key road infrastructure, application of Performance- Based Contracts, PPPs and PSOs 27% District Heating Energy efficiency, competitive markets for heating options, private sector participation 14% Municipal services & Energy Efficiency Addressing climate change and green technologies, ESCOs, street lighting 12% Solid Waste Improve and extend waste collection systems, implement polluter pays principle, EU Waste framework directive 2%

15 Wide experience financing PPP structures EBRD participated in its first road PPP in 1993 in Hungary. Since then, it has been involved in more than 20 PPP projects in the Infrastructure sector Extensive knowledge of PPP Structures in the region Assistance to public sector in development of PPP Framework and preparation of projects in several countries Tailored range of financing offer to the selected bidder/ consortium: Long-term debt financing to reflect the long duration of a PPP Equity (minority stake) or mezzanine International recognition (PFI, Euromoney, World Finance) EBRD s support for bidders on the preparation of PPP projects Open dialogue. Issue a letter of support Tender award Negotiation of detailed T&C 15

16 A recent example of PPPs: Eurasia Tunnel Client: EBRD finance: Type of finance: Total Project cost: ATAS, a joint stock co. incorporated in Turkey. USD 150 million Senior Debt USD 1.20 billion Year: 2012 Project description: Impact: DFBOT Concession for the Eurasia road tunnel under the Bosphorus (Istanbul Strait Road Tube Crossing). Expansion of private sector participation in the transportation sector in Turkey. Relieving traffic congestion within the city of Istanbul and adjacent region by reducing journey time and distance First PPP tunnel/road scheme in Turkey. Industry Recognition: Project Finance International Turkish Infra Deal of the Year Euromoney Project Finance European Deal of the Year

17 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 17

18 Eligibility for EBRD funding The project must: Be located in an EBRD country of operations Have strong commercial prospects Involve significant equity contributions in-cash or in-kind from the project sponsor Benefit the local economy and help develop the private sector Satisfy banking and environmental standards. 18

19 Tailored financial options Debt Sovereign debt Non-Sovereign debt with public sector (ports, air navigation, etc.) Private debt, incl. corporate finance, project finance and PPP (long terms, local currency) Co-financing (with commercial banks and IFIs) Equity Investing with sponsor (<35%) Privatization and initial public offering (IPO) Infrastructure funds PPP

20 EBRD Financing Process [Sale of equity] Repayments Disbursements Final repayment Final maturity Final review Initiation Concept clearance Client submits business plan to EBRD, outlining investment rationale, market analysis and financial projections structure review EBRD will analyse business plan and propose mandate letter (approx 3 weeks) Client and EBRD will agree on DD plan (fin, legal, tech), including where necessary external experts EBRD proposes a term sheet (2-4 months) Following TS, EBRD management will approve project and propose to its Board of Directors (3 weeks) Board approval Signing Ready to be disbursed once conditions precedent met 20

21 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 21

22 Where to find opportunities (I) Projects Countries Sectors About us What we do Who we are Where we are Who we work with Working with us Project financing Procurement Trade Loan syndications Advice and support Jobs at the EBRD

23 Where to find opportunities (II) All Procurement Notices

24 Procurement Notices Search by sector Search by country Search by contract type - Consultancy Services - Corporate goods works and services - Project goods, works and services Search Results - Issue Date - Deadline - Country - Notice Title - Sector - Notice Type 24

25 Some opportunities now posted Armenia: Northern Corridor Modernisation Project Civil works for the design and construction of a new bridge; Albania: Fier and Vlore Bypass Project: Civil works associated with the construction of approximately 29 km of road which connects the Fier - Vlore Road with the -sea-side Road Vlore - Saranda in south of Vlore. Macedonia: Railways Fleet Renewal Project: Provision of rolling stock Azerbaijan: Roads Reconstruction and Upgrading Project Invitation to Prequalify for the Rehabilitation of Mingachevir Bahramtapa Road (R 18) Croatia: Croatia Control ATM Modernisation Project Supply and Installation of Automatic Weather Observation System for Airports Pula and Split Sfantu Gheorghe Street and Lighting Rehabilitation: Construction of underground parking Chisinau Urban Road Sector Project: Street rehabilitation (including utilities infrastructure and public lighting refurbishment) Sarajevo Canton Water and Wastewater Project: Reconstruction of water and sewage network

26 Consultancy opportunities in the pipeline Dnipropetrovsk Metro: Corporate Development and Public Service Contract Preparation Support ( 235k) 22/4/2013 Abu Rawash Wastewater Treatment Plant: development and Implementation of a Public-Private Partnership for Upgrade and Expansion ( 600k) 7/5/2013 Kazakhstan: Monitoring of project implementation for Reconstruction of Shymkent-Tashkent Road ( 150k) TBD Kyrgyz Water and Wastewater Framework: Kant Water Project: City and Company Support. ( 160k) 22/5/2013 Rehabilitation of Roads in Montenegro: Assistance in the Procurement of civil works (Design and tender documentation, Environmental and Resettlement Documents). see more in

27 1. Introduction to EBRD 2. EBRD in the Infrastructure Sector 3. Finance Opportunities 4. Procurement Opportunities 5. Case studies 27

28 Spanish experience with EBRD Joint investment Investment with EBRD Main countries bln Poland, Romania, Russia Main sectors Energy 50% Infrastructure 20% Industry &Agrib. 20% FI 10% Procurement contracts ( 95.7 mln) contracts for 42.3 mln (25 tenders) Mainly MEI Consultancy contracts ( 1.4 mln) 28

29 Investing with EBRD Aqualia New Europe Client: EBRD finance: Type of finance: Year: 2009 Project description Impact Aqualia New Europe B.V mln Equity: creation of an investment vehicle alongside Aqualia (EBRD takes 49%) Creation of a regional investment platform with Aqualia for expansion in Eastern Europe through Aqualia New Europe (acquisitions of concessions and award of operation contracts) Supporting a major international water operator as it expands into new markets. Restructure and improve water and wastewater operations in target markets Ensure availability of funding sources (long term sustainability)

30 Tendering public sector contracts Constanta Water Supply Client: EBRD finance: SC Raja SA Constanta 33 mln Total Project cost: Year: 2010 Project description Impact 203 mln (EU Cohesion Fund grant of 145 mln, Gov of Romania s contribution of 26 mln) Framework of projects to improve the quality of drinking water in Romania and expand wastewater collection and treatment in line with EU legislation. Environmental improvements, Regionalisation of water and wastewater services Transfer of commercial and managerial skills to lessdeveloped localities Procurement opportunities Technical Cooperation Several contracts for works awarded. A 3.9 mln contract awarded in 2011 to GEA 21 + Arce 1.3 mln including: 700k for performance and efficiency programmes; 380k for institutional strengthening in the sector; 120k for ESIA and 100k for financial and legal DD

31 Contacts For all further enquiries, please contact : Sue Barrett Director Transport t: e: barretts@ebrd.com Jean Patrick Marquet Director MEI t: e: marquetj@ebrd.com Marcial Bustinduy Sustainable Transport Specialist t: e: bustindm@ebrd.com Alberto Garulo Associate Banker t: e: garuloa@ebrd.com