EBRD Municipal and Environmental Infrastructure
7 June 2017, Tbilisi, Georgia
EBRD in summary
2
NCBI = Net Cumulative Bank Investment
Since 1991, EBRD invested over €116 billion in
around 4,723 projects across private and public
sectors in its countries of operations
7.368 6.9
8.5 8.2 8.7
1.115 1.2
0.97 1.4 0.726
0
10
20
30
40
50
60
70
80
90
100
110
120
0
1
2
3
4
5
6
7
8
9
10
11
12
Net cum
ulative bank investment
Ann
ual b
usin
ess
inve
stm
ent
(AB
I)
Equity ABI
Debt ABI (and guarantees)
Net Cumulative Bank Investment
Note: unaudited as at 31 December 2016
23%
27% 26%
24%
Financial Institutions 23% (Depository credit (banks), Leasing finance,
non-depository credit (non-bank), Insurance, Pension, Mutual Funds)
Corporate 27% (Manufacturing/Serivces, Agribusiness, Equity funds,
Property & Tourism, Information & Communication technology)
Infrastructure 26% (Municipal & Environmental infrastructure, Transport)
Energy 24% (Power & Energy, natural resources)
EBRD Portfolio by sector
Municipal and Environmental Infrastructure
3
• Water and wastewater projects
• Solid waste projects
• Public transport projects (buses, trolleybuses, metro)
• District heating projects
• Urban roads rehabilitation projects
• Street lighting projects
• Parking projects
• Misc. energy efficiency measures
We do projects that improve people’s lives
Common challenges
• Sovereign borrowing constraints
• IMF/grant co-financing requirements
• Huge needs
• Affordability constraints
• Implementation constraints
• Institutional capacity
• Changing national counterparts
• Access to technical cooperation funds
• Economic absorption constraints
4
Typical Deal Structure
5
• All sub-sectors covered: W&WW, PT, SW, DH/EE
• Sovereign or sub-sovereign loan
• Company/utility loan if possible
• Promoting private sector involvement, where appropriate
• Counterparties: national, sub-national, Company level
• Projects can focus on one city or have regional coverage
• Co-financed by capex grants and other IFI loans (e.g. EIB,
KFW)
• Policy work to create enabling environment
• Technical Cooperation grants for project preparation and
implementation support (donor funded)
• Feasibility study
• Implementation support
• Corporate development and stakeholder participation
programmes
Green Economy Transition (GET)
40%
Green finance in EBRD
annual business by 2020,
from a 2015 level of 30%
€ 4 billion Target annual EBRD green
business by 2020
€ 22 billion Target cumulative EBRD
green business 2006-2016
@EBRD #EBRDgreen #GreenCities 6
EBRD Green Cities Programme
Delivery of strategy and policy
support (GCAP)
Facilitating and stimulating green
City infrastructure investments
Building capacity of city
administrations and key
stakeholders
A systematic approach to address urban
environmental performance and barriers through:
@EBRD #EBRDgreen #GreenCities 7
Eligibility Criteria
INFRASTRUCTURE INVESTMENTS Programme focus on sectors:
• Solid Waste
• Water & Wastewater
• Urban Transport
• District Heating
• Public Building Energy Efficiency
CITIES OF ≥ 100,000 Across EBRD’s COOs Cities with
smaller population sizes can be
considered on a case-by-case basis
considering the needs of the cities
MUST CONDUCT GCAP To initiate the Programme, in
conjunction with a ‘trigger’ project
in one of the Programme’s sectors
@EBRD #EBRDgreen #GreenCities 8
Green City Infrastructure Investments
Central Government
Municipality Private Company Utility Company
Quasi corporate utility loans
Loans to PPP/ private
companies
Sovereign-backed loans
Municipal loans or utility loans guaranteed by municipality
Investment Size
€ 2 million to € 150 million
Financing Options
@EBRD #EBRDgreen #GreenCities 9