Hotel Falkensteiner, Belgrade
April 15, 2013
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IFC – Renewable Energy in Serbia
Nebojša Arsenijević
Balkan Renewable Energy Program Manager
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IBRDInternational Bank for Reconstruction and Development
IDAInternational
Development Association
IFCInternational
Finance Corporation
MIGAMultilateral
Investment and Guarantee Agency
To promote institutional, legal and regulatory reform
Governments of poorest countries with per capita income of less than $1,025
- Technical assistance- Interest Free Loans- Policy Advice
To promote private sector development
Private companies in 181 member countries
- Equity/Quasi-Equity- Long-term Loans- Risk Management- Advisory Services
To reduce political investment risk
Foreign investors in member countries
- Political Risk Insurance
Est. 1945 Est. 1960 Est. 1956 Est. 1988
Role:
Clients:
Products:
To promote institutional, legal and regulatory reform
Governments of member countries with per capita income between $1,025 and $6,055.
- Technical assistance- Loans- Policy Advice
Shared Mission: To Promote Economic Development and Reduce Poverty
IFC – World Bank Group
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IFC – Internal StructureAdvisory Services (AS) Investment Services (IS)
Access to Finance (A2F)
Investment Climate (IC)
Sustainable Business Advisory (SBA)
Public – Private Partnership (PPP)
Finance Market (FM)
Infrastructure and Natural Resources
(C3P)Manufacturing, Agribus.
and Services (MAS)
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Western Balkans Region and BREPProgram funded by: Austrian Ministry of Finance (BMF)
End Date: June, 2016
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Objective 1: RE Regulatory Framework Improvements
• Identification of legal (regulatory/contractual) obstacles• Drafting of improved legal framework• Raising awareness related to the new legal framework• Support during the adoption processObjective 2: Support to RE Sponsors / Developers
• Information/Knowledge sharing• Project development support• Connection with international sponsors
Objective 3: Support to Financial Institutions (Banks)
• Information/Knowledge sharing• Dedicated Capacity Building - Trainings• Impact Assessment Studies
BREP Objectives
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Coop. Agreement Ministry – IFC
Consultant Select.Process
Signed Contractwith Consultants
Scoping Mission with stakeholders
Phase 1 Inception
IMPLEMENTATION ACTIVITIES
Phase 2Drafting
Phase 3Official Meeting
Phase 4Workshop
POST-IMPLEMENTATION ACTIVITIES (AS AND WHEN NEEDED)
Supporting Ministry in Parliament New / Amended Laws
Supporting Ministry /GovernmentDecrees
Supporting AgenciesOther secondary regulation
PRE-IMPLEMENTATION ACTIVITIES
O1: Regulatory Framework - Approach
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O1: RE Regulatory Framework - Activities
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O1: RE Regulatory Framework - Example
Power Policy and Off-take related set of legal documents:• Renewable Energy Law and bylaws (Decrees)• Standardized Power Purchase Agreement• Standardized Grid Connection AgreementConcession related set of legal documents:• Concession Law• Standardized Concession Contract• Selection Criteria for RE Concessions
Main targets:• To increase transparency and cash flow predictability• Mitigate Risk (standardized contracts, step-in rights)• Alignment with EU directives
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O2: Support to RE Sponsors - Approach
Market Level
Interventions
Company Level
Interventions
Educational Workshops Educational Materials (brochures, roadmaps, etc.)Support to Local AssociationsInvestment Promotion ActivitiesLocal – International Match Making
Support in Improving Project DocumentsRelationship with local communitySupport with E & S standards (Equator Principles) Support in finance modelingImprovement of Outreach Strategy
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O2: Support to RE Sponsors - Activities
From B2B to Implementatio
n
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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 with SHPP cascade design improvement• Official review of idea design• Private Benefit: optimized SHPP design• Public benefit: education, brochure with common design mistakes Main Targets• To support private companies with good projects and without IDD issue• To secure certain level of public benefits (education, brochure, etc.)
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O3: Support to local FIs – Approach
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
General Material Development
Country Level
Workshop
Material Adjust. Country Needs
In-depth Capacity Building Training
Joint Assess of first 3 SHPPs
Impact Assess Study
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O3: Support to local FIs – Activities
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O3: Support to local FIs - Example
Example 1: In-depth training with local bank in Albania• 3- day training on SHPPs and project finance• Engineering, E&S, Budgeting, Legal, Financial• Private Benefit: new product, increased internal capacity• Public benefit: education, more SHPP project successfully financed
Example 2: Country level workshop for Serbian banks• Presentation of IFC AS product (training)• Presentation of IFC IS products (loan, equity, quasi equity, risk share)• Private Benefit: idea for new product• Public benefit: educationMain Targets• To increase internal capacity of local banks• To slowly change RE market from corporate to project finance.
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BREP Team
Nebojsa ArsenijevicProgram ManagerBelgrade Office
Bajame SefaFinance SpecialistTirana Office (ALB)
Dimitar DimitrovskiPolicy/Legal Specialist
Skopje Office (MAC)[email protected]
Dzenan MalovicTechnical SpecialistSarajevo Office (BIH)
Denis MesihovicFinance Specialist
Sarajevo Office (MNE)[email protected]
Shpresa KastratiTechnical Specialist Prishtina Office (KOS)
Bojana RisticOutreach Specialist
Belgrade Office (SRB)[email protected]