A Lenders Perspective on Delivering Sustainable Infrastructure - - PowerPoint PPT Presentation

A Lender’s Perspective on Delivering Sustainable Infrastructure

27 November 2015 Charles Gooderham, Sustainability Affairs, Credit Suisse

The Project

Total line: 730km Awash-Kombolcha- Weldia-Mekele-Shire Connecting northern Ethiopia to Addis Adaba - Djibouti railway line The Project: financing of 400km Awash–Kombolcha– Weldia section

1 Nov 2015 Images courtesy of Yapi Merkezi

The Financing and Key Parties

$865m commercial and ECA backed financing package Credit Suisse: Lead Arranger and Lead Agent Sponsor: Ethiopian Railways Corporation (ERC) Contractor: Yapi Merkesi Facility Lead Agent: Credit Suisse Commercial Facility Lenders ECA Facilities Agents and ECAs Independent E&S Consultant Design Review Consultant Woreda s Project Affecte d Parties

2014 Trade & Export Finance: The Perfect 10 Deals of the Year Best African ECA Finance Deal of the Year: ERC 2014 EMEA Finance: Project Finance Awards Best transport infrastructure deal in EMEA: ERC's rail infrastructure upgrade 2015 African Banker Awards Deal of the Year – Debt: $865m Commercial and ECA Backed Financing Package for the ERC 2 Nov 2015 Short-listed for 2015 FT/IFC Transformational Business Awards – Achievement in Transformational Finance

Sustainability Expectations

Key Reference Points Ethiopian legislation Lenders’ / ECAs’ safeguarding policies Equator Principles / international standards − IFC Performance Standards on E&S Sustainability − WBG Environment, Health & Safety (EHS) Guidelines − OECD Common Approaches − ADB Operational Safeguards Defining & Realising

Environmental & Social (E&S) Impact Assessment E&S Management Plan Detailed plans, systems, processes:

• Resettlement Action

Plan

• EHS Management

System

• Etc.

Facility Agreement Independe nt gap analysis Independe nt review &

• ngoing

monitoring

3 Nov 2015

Sustainable Outcomes

The Big Picture: Catalyse economic growth Promote social mobility Contribute to a low carbon transport network

4

The Important Detail: Managed resettlement and livelihood restoration Welfare and safety of workers and communities Stakeholder consultation / engagement and grievance mechanism Preservation of cultural heritage sites Biodiversity protection – e.g. Awash National Park Resource efficiency, including water resource management

Nov 2015 Images courtesy of Yapi Merkezi

Disclaimer

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5 Nov 2015

Thank you / discussion