IFC Balkans Renewable Energy Program (BREP) Podgorica, November 09, 2012 1 IFC World Bank Group IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation MIGA Multilateral Investment and Guarantee Agency Est. 1945 Est. 1960 Est. 1956 Est. 1988 Role: To promote institutional, legal and regulatory reform To promote institutional, legal and regulatory reform To promote private sector development To reduce political investment risk Clients: Products: Governments of member countries with per capita income between $1,025 and $6,055. - Technical assistance - Loans - Policy Advice Governments of poorest countries with per capita income of less than $1,025 - Technical assistance - Interest Free Loans - Policy Advice Private companies in 181 member countries - Equity/Quasi-Equity - Long-term Loans - Risk Management - Advisory Services Foreign investors in member countries - Political Risk Insurance Shared Mission: To Promote Economic Development and Reduce Poverty 2
IFC Internal Structure Advisory Services (AS) Access to Finance (A2F) Investment Climate (IC) Sustainable Business Advisory (SBA) Investment Services (IS) Finance Market (FM) Infrastructure and Natural Resources (C3P) Manufacturing, Agribus. and Services (MAS) Public Private Partnership (PPP) 3 Western Balkans Region and BREP Program funded by: Austrian Ministry of Finance (BMF) End Date: June, 2016 BREP region: - Albania - Bosnia and Herzegovina - Macedonia - Montenegro - Kosovo - Serbia 4
BREP Objectives Objective 1: RE Regulatory Framework Improvements Identification of legal (regulatory/contractual) obstacles Drafting of improved legal framework Reconciliation and dissemination of legal framework Support during the adoption process Objective 2: Support to RE Sponsors / Developers Information/Knowledge exchange Project development support Connection with international sponsors Objective 3: Support to Finance Institutions (Banks) Information/Knowledge Exchange Dedicated Capacity Building - Trainings Impact Assessment Studies 5 O1: RE Regulatory Framework - Activity Power Policy and Off-take related set of legal documents: Renewable Energy Law Standardized Power Purchase Agreement Standardized Grid Connection Agreement Concession related set of legal documents: Concession Law Standardized Concession Contract Selection Criteria for SHPP Concessions Main targets: To increase transparency and cash flow predictability Mitigate Risk (step-in rights, connection and access priority, etc.) Alignment with EU directives 6
O1: RE Regulatory Framework - Activities 7 O2: Support to RE Sponsors - Approach Market Level Interventions Educative Workshops Educative Materials (brochures, roadmaps, etc.) Support to Local Associations Investment Promotion Activities Local International Company Level Interventions Support in Project Documents Improvement Relationship with local community Support in E & S (Equator Principles, etc.) Utilization of Additional Instruments (Kyoto, etc.) Outreach Strategy Improvement 8
O2: Support to RE Sponsors - Activities From B2B to Implementation 9 O2: Support to RE Sponsors - Example Example 1: Austrian Company Joint Venture with Albanian concession owner Program of Activities (PoA) for SHPP in Albania and Serbia Private Benefit: improved cash flow (CERs selling) Public benefit: education, link with PoA Example 2: Bosnian Company Support in SHPP cascade design improvement Official review of idea design Private Benefit: optimized SHPP design Public benefit: education, brochure with common mistakes in design Main Targets To support private companies with good projects and without IDD issue To secure certain level of public benefits (education, brochure, etc.) 10
O3: Support to local FIs Material Technical Manual: SHPP Engineering Manual SHPP Legal Manual SHPP Budgeting Manual SHPP Risk Management Manual Finance Manual: SHPP Finance products development and marketing Bank organization structure SHPP Cash Flow Tool SHPP Project Assessment/Evaluation Toolkit 11 O3: Support to local FIs Approach General Material Development Country Level Material Workshop Adjustment to Country Needs Project Service Agreement with the Bank In-depth Capacity Building Training Joint Assessment of first 3 SHPPs Impact Assessment Study 12
O3: Support to local FIs Status On-going preparation: Joint work with best European experts Joint work with IFC Investment Services Expected schedule: Country level workshops (September 2012 December 2012) Trainings with selected banks (October 2012 December 2013) Initial assessment of SHPP projects (January 2013 December 2014) Impact Assessment Studies preparation (January December 2015) 13 BREP Team Nebojsa Arsenijevic Program Manager Belgrade Office NArsenijevic@ifc.org Bajame Sefa Finance Specialist Tirana Office (ALB) BSefa@ifc.org Dzenan Malovic Technical Specialist Sarajevo Office (BIH) DMalovic@ifc.org Dimitar Dimitrovski Policy/Legal Specialist Skopje Office (MAC) DDimitrovski@ifc.org Denis Mesihovic Finance Specialist Sarajevo Office (MNE) DMesihovic@ifc.org Shpresa Kastrati Bojana Ristic Technical Specialist Outreach Specialist Prishtina Office (KOS) Belgrade Office (SRB) SKastrati@ifc.org BRistic@ifc.org 14
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