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IG – Investor Guide FOR PREPARATION OF REGIONAL INVESTMENT PROJECTS IN ENVIRONMENT, CLIMATE CHANGE AND WATER IN CENTRAL ASIA (CA)
[email protected]
What is this meeting’s target? “WHO WILL PUSH?” – YOU ☺
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… and how does this IG help?
To identify practical ways to enable CA countries to improve the process of bankable projects preparation
To discuss and identify priority issues to maximize access by CA countries to IFIs investment using EU IFCA support.
To identify infrastructure-related projects for consideration by IFIs and for presentation at the regional 7th WGECC in February 2018
This IG’s main target is to help you
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THE EU BLENDING APPROACH COMBINES SEVERAL IFIS – FOR YOU
How does the EU help? – by “blending” = … IFI 1
IFCA
EU Investment Facility for Central Asia (IFCA)
Green Climate Fund (GCF)
European Investment Bank (EIB)
European Bank for Reconstruction and Development (EBRD)
French Development Agency (AFD)
German Development Bank (KfW)
World Bank (WB)
Asian Development Bank (ADB)
Asian Infrastructure Investment Bank (AIIB)
IFI 2
CA
The IG main content and structure
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= MAIN PART + ANNEXES
MAIN PART = 2 pages basic info about IFIs, IFCA and “blending” instruments: Definition Mission Project cycle
ANNEXES = more details for interested readers on the respective IFIs:
priorities of IFIs’ funding
environmental & social project criteria for selecting submissions
detailed footnotes facilitate own in-depth research
Detailed environmental project selection criteria lists: main result
Components of “blending”:
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“BLENDING” ADDS WHAT IS STILL MISSING
Typically, blending combines
several types of financing
from several FIs
What types of blending?
GOURMAND GOURMET … ask your neighbour …
The lead FI can be
a EU multilateral FI (EIB, EBRD, …)
a EU national FI (KfW, ADB …)
but not a non-EU FI (ADB, AIIB …)
Each type answers to a need
Direct investment grant
Reduce cost to end users
Interest rate subsidy grant
Reduce interest cost (no favoured tool)
Technical assistance grant
Boost management & speed
Risk capital
Absorbs some of perceived risk
Guarantee
Guarantees some investments
IFIs’ project cycles are comparable
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… and have the same major steps
GCF – EIB – EBRD – AFD – KfW – WB – ADB – AIIB
The IFCA project cycle is analogous with its 7 steps
1. Identification: Projects are identified by the financial institutions and EU Delegations with the partner countries and, where relevant, regional organisations. The EU
2. Preparation: The lead financial institution is in charge of submitting project proposals and trilateral consultations are held with EU DGs and financial institutions to secure
3. Assessment: Relevant EU services will assess (i) the alignment to EU policy objectives, (ii) justification of need and added value, (iii) project’s social, environmental and
4. Board opinion: Opinions on EU grant requests are taken by consensus at meetings of the relevant Blending Framework Board (voting: Commission, the EEAS and the EU
5. Contracting: The Commission decision to proceed with a project is followed by formal contracting, including signature of a delegation agreement with the lead financial
6. Monitoring: The lead financial institution is responsible for project implementation (tendering & procurement), monitoring and (financial & operational) reporting, based on
7. Evaluation: Responsibility for the evaluation of blended operations is delegated to the lead financial institution.
Delegations ensure the coherence of projects with EU policy objectives and sector priorities. Generation of a “pipeline”.
matching criteria
climate change aspects, (iv) financial structure, while analysing political barriers & similar actions (see criteria), to secure project standards. Member States); then the Commission takes their decision. institution.
indicators.
How the
IG
is framed
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IG frames are: the EU & its democratic values and view of partnership & joint development
The EU-CA Working Group process: 5th, 6th, 7th
IFIs’ systems of rules and criteria CA partners’ needs in environment, water & CC
CA regional cooperation
… and EU’s commitment:
How you can use this IG in practice
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WHEN SITTING AT YOUR DESK IN YOUR HOME OFFICE
Look into your project idea: what type of financing is missing
Compare with what IFCA allows and find a solution
Look which IFI or FI might have a similar profile
Look into the project criteria of these IFIs and look how to match your idea with them
Focus on “social and environmental project criteria” and improve your project idea
Secure the regional aspect of your project idea
Increase the dialogue with other stakeholders to create a network of interests
You may use the web-based “Knowledge Centre Platform” to substantiate dialogue
Present interim project results on the platform for further solution building
One quick example: EIB EIB = EUROPEAN INVESTMENT BANK = THE EU BANK
How the EIB acts
Lending: The vast majority of EIB financing is through
loans, but EIB also offers guarantees, microfinance, equity investment, etc.
Blending: EIB support unlocks financing from other
sources, particularly from the EU budget. This is blended with loans to form a full financing package.
Advising: Lack of finance is often only one barrier to investment. EIB helps with administrative and project management capacity to facilitate investment.
EIB’s ENVIRONMENTAL AND SOCIAL STANDARDS:
5. Cultural heritage
1. Assessment and management of environmental and social impacts and risks
6. Involuntary resettlement
2. Pollution prevention and abatement
8. Labour standards
3. Biodiversity and ecosystems 4. Climate-related standards
7. Rights and interests of vulnerable groups 9. Occupational and public health, safety and security 10. Stakeholder engagement
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The proposed timeline
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1.
Receiving IFIs’ comments on this draft: November 2017
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Final draft guide in English language: December 2017
3.
Final draft guide in Russian language: January 2018
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Your WECOOP2 team ANATOLY PICHUGIN & GILBERT AHAMER
will be pleased about our joint discussion
@WECOOP2.EU
