EIAS Briefing Seminar
In cooperation with the Embassy of Nepal in Brussels
Nepal-EU Cooperation:
Unlocking Nepal’s Hydropower Potential
Ramón Ynaraja, Senior Loan Officer Country Manager for Nepal, Bhutan & Bangladesh
Operations Directorate, Asia & Pacific Division
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European Investment Bank
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The EU Bank
• Natural financing
partner for the EU
institutions since 1958
• Around 90% of lending
is within the EU
• Shareholders: 28 EU
Member States
The EIB: capital breakdown
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The EIB at a glance
• Largest multilateral lender/borrower in the world
• Raise our funds on the international capital markets
• Pass on favourable borrowing conditions to clients
• 450+ projects each year in over 160+
• Headquartered in Luxembourg; 33 local offices
• Around 2,900 staff:
• Finance professionals + engineers + sector economists
+ socio-environmental experts
• 50+ years of experience in financing projects
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EIB Group track record: over EUR 500bn lent since 2008
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We deliver impact where it’s needed
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HEALTH
9.8m people with
access to improved
health services
JOBS
4.1m jobs in small
businesses
EDUCATION
1.5m students
benefitting from
EIB projects
WATER
21m people
benefitting from
safe drinking water
TRANSPORT
380m additional
passengers
ENERGY
2.3m households
powered by
EIB projects
URBAN
3.2m people
benefitting from
urban upgrades
DIGITAL
15.3m people with
new or upgraded
connections
We focus on our key priorities
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ENVIRONMENT
EUR 19.6bn
INFRASTRUCTURE
EUR 18.9bn
INNOVATION
EUR 18.7bn
SME
EUR 29.2bn
We are the world’s largest
provider of climate finance
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>25% worldwide 35% in world’s
developing regions
EIB’s 2015 Climate Strategy
We are increasing our climate commitment:
USD 100bn over next 5 years
We are the world’s largest multilateral financier
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EIB in 2015:
EUR 77.5bn
EIF in 2015:
EUR
7bn
Record for the
EIB Group:
EUR 84.5bn
EIB Lending in 2015: EUR 78bn
(EIB signatures)
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EIB lending since its foundation
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Our products
We help catalyse investment
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LENDING BLENDING ADVISING
Loans
But also:
Guarantees
(trade financing)
Equity participation
Combining EIB finance
with EU budget
(Project Bond Initiative)
Higher risk projects for
innovation (InnovFin)
Prepare, evaluate and
support the
implementation of
projects (JASPERS)
Support for
public/private
partnerships (EPEC)
Attracting FUNDING for long-term growth
EIB project cycle
We support sound and sustainable projects
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A responsible Bank
Corporate responsibility is part of all of our activities
• We strive to improve the lives of people.
• Promoting sustainable & inclusive growth.
• We are committed to:
High environmental & social standards;
Strong governance, transparency & accountability;
Minimising environmental footprint.
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We are the world’s largest
supranational borrower
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We are the
largest issuer of
green bonds
EUR 4bn in 2015
EUR 11bn in 11 currencies
since 2007
Total 2015 borrowing: EUR 62.4bn
Mobilising resources worldwide
Europe
63% Asia
21%
Americas
14%
Middle East & Africa
2%
EIB Activities in Asia
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The EIB Asia Mandate
EIB’s strategic objectives under the Mandate:
1. Environmental sustainability (incl. climate change mitigation & adaptation)
2. Social & economic infrastructure
3. Local private sector development (in particular, support to SMEs)
22 Eligible countries :
Bangladesh, Bhutan, Brunei*, Cambodia, China, East Timor, India, Indonesia,
Iraq*, Laos, Malaysia*, Maldives, Mongolia, Myanmar, Nepal, Pakistan, the
Philippines, Singapore*, South Korea*, Sri Lanka, Thailand, Vietnam, Yemen.
* No Framework Agreement signed yet
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Benefits of EIB loans
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AAA - IFI
low-cost funding passed on to clients low interest rate (same rates as EU)
Large amounts, long maturities & grace periods (in line with MDBs)
Possibility to blend loans with EU grants
Increased concessionality
E&S standards and procurement procedures also aligned with MDBs
Background of EIB Presence in Nepal
EIB-Nepal FWA signed May 2012
1st project signed March 2013 (Tanahu)
April 2015: disaster support (PDNA)
July 2015: waiver of EIB fees
Last project signed November 2015 (Grid
Development)
February 2016: hiring of Resident Consultant
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EIB Activity in Nepal Ta
na
hu
• Signed March 2013
• Costs EUR 390m
• Loan EUR 55m
Po
we
r S
yste
m E
xp
an
sio
n
• Signed April 2015
• Costs EUR 270m
• Loan EUR 95m
Grid
De
ve
lop
me
nt
• Signed November 2015
• Costs EUR 65m
• Loan EUR 30m
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Nepal Tanahu Hydropower Project
• Construction of hydropower scheme, including a
transmission line, access road and rural
electrification.
• Project costs EUR 390m (loan EUR 55m)
• Co-financiers: EIB + ADB + JICA
• Approved March 2013
• Signed March 2013
• Contract: headworks contract
• Estimated 1st disbursement: Q1(2017)
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Nepal Power System Expansion Project
• Construction of Samundratar-Trishuli 3B Hub
Transmission Line and Substation.
• Project costs EUR 270m (loan EUR 95m)
• Co-financiers: EIB + ADB + NORAD
• Approved September 2014
• Signed April 2015
• Contract: Samundratar-Trishuli 3B transmission
line and substation.
• Estimated 1st disbursement: Q4(2016)
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Nepal Grid Development Project
• Transmission lines, incl. 2 substations, upgrade of
dispatch centre and rural electrification component.
• Project costs EUR 65m (loan EUR 30m)
• Co-financiers: EIB + KfW + AIF (EC)
• Approved June 105
• Signed November 2015
• Contract: Chilime –Trishuli 3B transmission line +
substations.
• Estimated 1st disbursement: Q2(2017)
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Outlook Future Operations in Nepal
Country Strategy & EU aligment
• Public Sector
NEA-supported operations
GoN-supported Infrastructrure
• Private Sector
Corporate banking
Project Finance
• Financial Sector
Banking Sector
Investment Funds
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Thank you!
More information at: www.eib.org
Tel.: +352 4379-22000
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