28.08.2013 Regional Infrastructure Development ESCAP High-level Policy Dialogue Macroeconomic Policies for Sustainable and Resilient Growth in North and Central Asia EDB: An Overview Eurasian Development Bank (EDB) was established in 2006 by the Russian Federation and the Republic of Kazakhstan EDB operates on a territory totalling 20 million km 2 with a population of 185 million people EDB has six Member States: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan EDB s authorised capital is over US$ 1.5 billion, investment portfolio is over US$ 5.1 billion EDB manages the resources of the EurAsEC Anti- Crisis Fund (EAF) 2
EDB s mission and strategic goals 3 Current investment portfolio distribution, by country As of 30.06.2013 Current investments share in the Central Asia region is 41% - in 32 of 67 EDB s projects. New member states have low share in the current investment portfolio. Distribution of the portfolio is correlated to the scale of economies. 4
Current investment portfolio distribution, by industry As of 30.06.2013 Infrastructure Projects retain the largest shares in EDB s Investment Portfolio 63% 5 Main infrastructure projects in the region Project Amount of EDB credit, US$ mln Ekibastuz GRES power plant 478 Operation of Fleet to Support 36 Offshore Operations, OMS Shipping Interregional Power Transmission 51 Line, Batys Transit Development of an automated control 116 system, Transtelecom First wind power plant 93 Electric locomotive plant in Astana 67 Railcar Service Centre, Yeskene 56 Fuel Supplies for the Bishkek 30 combined heat and power plant 6
Management of EurAsEC Anti-Crisis Fund (EAF) The Fund has two main instruments: - Financial credits are granted to finance budget deficits - Investment loans can be used to finance interstate investment projects. Main infrastructure projects in the region Project Amount of EAF credit, US$ mln Comments Armenia. Construction of the North- South Road Transport Corridor Stage IV Armenia. Modernisation and Development of Institutional Opportunities of Irrigation Systems Kyrgyzstan. Bishkek-Osh Road Rehabilitation Kyrgyzstan. Rehabilitation of the Toktogul hydroelectric power station Tajikistan. Rehabilitation of the irrigation in the Tajik part of the Ferghana Valley Tajikistan. Rehabilitation of the Nurek hydroelectric power station 100 EAF Board approved concept notes; implementation in partnership with ADB 40 EAF Board approved concept notes; implementation in partnership with WB 50 EAF Board approved concept notes; implementation in partnership with ADB 200-250 Considering ADB proposal for cofinancing of the project 30 Considering WB proposal for cofinancing of the project 60-80 Considering Barki Tojik (the national power operator) proposal 7 Infrastructure of Central Asia The countries of Central Asia have an enormous energy and transit potential (recourses, main markets) Financial and economic crises over the past 20 years caused low investment activity and high level of infrastructure depreciation Projects in the region have longer payback periods, profitability in the majority of cases is relatively low and often close to zero The processes of integration (CU, SES) and joining WTO taking place within the region facilitate through the stimulation of trade flows the development and better use of the regional infrastructure. 8
Total PPP Investments in infrastructure in lowand middle-income countries Source: http://ppi.worldbank.org/explore/ppi_exploreregion.aspx?regionid=3 9 Geographic structure of new PPP deals in infrastructure in low- and middle-income countries Source: http://ppi.worldbank.org/explore/ppi_exploreregion.aspx?regionid=3 10
Infrastructure Financing EDB priorities infrastructure projects in the region Main success factors are: A unique project-based approach to each investment (high-level consulting, technology, EIA) Economic justification and confirmation (terms, security, repayment profile) The legal and financial structuring of the project (local PPP legislation, ЕРС/ЕРСМ contractor, audit) Monitoring and oversight of project implementation 11 EDB Technical Assistance Fund (TAF) EDB established the Technical Assistance Fund (TAF) to provide financial assistance for pre-investment and innovation research. By the end of 2012, TAF s portfolio included 40 projects totalling over US $5.5 million. United Nations Economic Commission for Europe (UNECE) with technical support of the EDB TAF is implementing the project "Public-Private Partnership Readiness Assessment in Countries of Central Asia (Kazakhstan, Kyrgyzstan and Tajikistan) Final report, which contains conclusions and recommendations to national authorities, will be published in December 2013 as an official document on the UNECE website. 12
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