Eurasian Development Bank as EFSD Manger Cherekaev Alexey, Head of - - PowerPoint PPT Presentation

May 2016

Cherekaev Alexey, Head of EFSD Project Group

Eurasian Development Bank as EFSD Manger

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EDB in a Snapshot

Fast facts

• Established in 2006 by Russia and Kazakhstan
• Member-states: Armenia, Belarus,

Kazakhstan, Kyrgyzstan, Russia, and Tajikistan

• Headquarters: Almaty, Kazakhstan
• Authorised capital is over US$ 1.5 billion
• Manager of the Eurasian Fund for Stabilization

and Development (EFSD)

EDB’s mission is to facilitate, through its investment activity, the development of market economies, economic growth and the expansion of trade and other economic ties in its member states

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EFSD in a Snapshot

EFSD mission is to help member countries overcome the consequences of global financial and economic crisis, to ensure their long-run economic stability and to foster economic integration Fast facts

• Established in 2009
• Member-states: Armenia, Belarus, Kazakhstan,

Kyrgyzstan, Russia, and Tajikistan

• Fund size is about US$ 8.5 billion
• Managed by EDB
• Provides Financial credits and Investment loans
• The main function of the EFSD is financing of

macro stabilization programs

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• EFSD Managing board
• Preliminary appraisals of projects and documents for the

EFSD Council

• Recommendations and draft decisions of the EFSD Council
• MOF Department Directors
• Preliminary appraisals of projects and documents for the

EFSD Council

• Recommendations and draft decisions of the EFSD Council
• Supreme decision-maker
• Ministers of finance of member countries
• Decisions on the use funds and other activities

EFSD Governance

EFSD Council Council of Experts EFSD Manager (EDB)

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EFSD Financial Instruments

Investment Loans Financial Credits

Availability of funds:

• to governments and companies
• for large projects contributing to economic

and social stability and integration

Minimum amount:

• US$ 30M for countries with GNI per capita
• ver US$ 5000
• US$ 5M for countries with lower GNI

Participation in projects:

• any form used in international practice,

except of equity participation

Availability of funds:

• only to governments
• for a limited number of specific policy

actions over a specified period of time

• for programs contributing to economic and

social stability, development, fiscal sustainability and integration

Minimum amount:

• US$ 10M

Requirements:

• policy implementation should be measured

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Key sectors:

EFSD Current Investment Projects

• Road

construction

• Agriculture

Project Country Sector Commitment

Agricultural machinery supplies Kyrgyzstan Agriculture US$ 20M Rehabilitation of Bishkek-Osh road, Phase IV Kyrgyzstan Road construction US$ 60 M Construction of «North-South» transport corridor, Phase 4 Armenia Road Construction US$ 150M Rehabilitation of Kambarata HPP Kyrgyzstan Power generation US$ 85M Rehabilitation of Toktogul HPP, Phase 2 Kyrgyzstan Power generation US$ 70M Irrigation System Modernization Project Armenia Agriculture US$ 40M

Major Projects:

• Power

generation

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Investment Loans

Decision Making Process Preliminary application Preliminary appraisal Approval of preliminary application Manager’s appraisal Decision on Provision of Fund Resources Signing of Credit Agreement Project Implementation Monitoring & Evaluation

Potential Borrower EFSD Manager (EDB) EFSD Council EDB EFSD Council of Experts EFSD Council Borrower EDB EFSD, Council of Experts, EFSD Council

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EFSD Procurement Policy

• Approved in 2013
• Allows use of major IFIs procurement policies during investment project implementation
• Under cofinanced projects procurement policies of WB and ADB are used
• EDB engages WB for procurement management and supervision under RAS contracts