IFC - WESTERN BALKANS A PARTNER TO THE WBIF December 2014 IFC: A - - PowerPoint PPT Presentation

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IFC - WESTERN BALKANS A PARTNER TO THE WBIF December 2014 IFC: A - - PowerPoint PPT Presentation

IFC - WESTERN BALKANS A PARTNER TO THE WBIF December 2014 IFC: A MEMBER OF THE WORLD BANK GROUP IFC IBRD MIGA ICSID IDA International International Multilateral International International Finance Investment Centre for Bank for


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SLIDE 1

IFC - WESTERN BALKANS

A PARTNER TO THE WBIF

December 2014

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SLIDE 2

IFC: A MEMBER OF THE WORLD BANK GROUP

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Conciliation and arbitration of investment disputes Guarantees

  • f foreign

direct investment’s non- commercial risks Interest-free loans and grants to governments

  • f poorest

countries Loans to middle- income and credit-worthy low-income country governments

Solutions in private sector development

IBRD

International Bank for Reconstructio n and Development

IDA

International Development Association

IFC

International Finance Corporation

MIGA

Multilateral Investment and Guarantee Agency

ICSID

International Centre for Settlement of Investment Disputes

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SLIDE 3
  • Wholly owned

subsidiary of IFC

  • Private equity fund

manager

  • Invests third-party

capital alongside IFC

  • Firm-level advice
  • PPP transaction

advice

  • In partnership w/World

Bank, advice on broader market development and enabling environment for private sector

  • Loans
  • Equity
  • Trade finance
  • Syndications
  • Securitized finance
  • Risk management
  • Blended finance

WHAT WE DO

Integrated Solutions, Increased Impact

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IFC ASSET MANAGEMENT COMPANY

$6.4 bn under mgmt (FY14)

INVESTMENT

$51.7 bn portfolio (FY14)

ADVICE

720 projects valued at $1.1 bn (FY14)

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SLIDE 4

IFC in the Western Balkans

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SLIDE 5

IFC Western Balkans in FY14

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  • IFC has been active in most of the Western Balkans (Albania, Bosnia

and Herzegovina, Kosovo, FYR Macedonia, Montenegro and Serbia) since the early 1990s.

  • Last fiscal year (FY14), IFC invested $139.5 million in the Western

Balkans and mobilized the additional $458.3 million from our partners, supporting projects in the financial sector, infrastructure, agribusiness, and manufacturing.

  • In the Western Balkans, IFC works with private sector clients,

governments, and civil society to bring the benefit of global expertise to the region through its advisory services and investment projects.

  • Our priorities in the Western Balkans include: agribusiness,

infrastructure development with a focus on climate change and improvements in investment climate.

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SLIDE 6

IFC and PPPs

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SLIDE 7

108 104 67 81 31 42 77 68 107 65 75 30 36 91

50 100 150 ALB BIH HRV KSV MKD MNE SRB 2014 2015

GDP growth: mixed performance in 2014, expected improvement in 2015

  • 1.0

0.0 1.0 2.0 3.0 4.0 ALB BIH HRV EU KSV MKD MNE SRB 2013 2014e 2015p

Government debt as % of GDP Budget deficit as % of GDP

Macroeconomic Fundamentals and Investment Climate

Doing Business Rankings (1=highest, 178=lowest)

Best performers

20 40 60 80 ALB BIH HRV KSV MKD MNE SRB 2013 2014e 2015f

  • 10.0
  • 8.0
  • 6.0
  • 4.0
  • 2.0

0.0 ALB BIH HRV KSV MKD MNE SRB 2013 2014e 2015f

2.8 3.0 3.2 3.5 2.6 2.5 2.8 2.7 3.1 3.6 2.5 2.9 3.0

0.0 1.0 2.0 3.0 4.0 ALB BIH HRV EU MKD MNE SRB 2012 2014

Logistics Performance Index (LPI) (5=best, 1=worst)

45 52 139 64 54 57 50 20 40 60 80 100 120 140 BIH HRV EU KSV MKD MNE SRB

Road network density (km of road per 100 sq. km of land area)

Infrastructure investment needs for Western Balkans are estimated to be approximately Euro 110 bn. For transport sector - Euro 4 bn per year, Energy sector - Euro 4.5 bn per year, Environment sector Euro 2.4 bn per year.

(Source: “Priority Investments in the Western Balkans and Croatia: Analysis of medium-term needs, possible impacts and criteria for ranking in terms of efficiency and development potential, STAREBEI Research Program, 2014. University of Nice with EIB grant financing)

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SLIDE 8

W BG SUPPORT FOR PPPS

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SLIDE 9

IFC PPP ADVISORY IN WESTERN BALKANS

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2.2 billion

  • IFC provides advice on designing and implementing public-private partnership (PPP)

transactions to national and municipal governments to improve infrastructure and access to basic services such as water, power, health and education. The program is supported by our donor partners: Austria, Norway and S witzerland. Recent mandates:

  • As part of a broader energy sector reform effort, IFC advised the Albanian Ministry of Economy,

Trade and Energy to privatize four hydropower plants (HPP) with a combined capacity of 76.7 MW — HPP Ulëz, HPP S hkopet, HPP Bistrica I, and HPP Bistrica II. The Turkish company, Kürüm International, was awarded the two tenders for the four plants. Kürüm is planning to rehabilitate HPP Ulëz to improve the reliability of power supply. All four HPPs will be operated in compliance with strict environmental conditions.

  • IFC played a key role in helping structure and implement the Astha

hydropower plant proj ect, Albania’s first maj or hydropower plant construction in 30 years and the government’s first large PPP in the energy sector. Verbund, Austria’s largest electricity company, was the winning bidder of a concession to build and operate a new 53 megawatt hydropower plant expected to improve services for 170,000 people.

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IFC PPP ACTIVE MANDATES

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2.2 billion

  • IFC provides transaction advisory support to the Government of the

Federation of Bosnia and Herzegovina to assist with the implementation

  • f a road proj ect under a PPP scheme. IFC is also advising on the Milot -

Morine highway proj ect in Albania.

  • IFC is advising the City of Belgrade in struct uring and tendering a public-

private partnerships (PPP) contract for development of waste treatment and waste disposal facility at Vinca t o improve the overall waste management in the capital of S erbia.

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Advantages of Working with IFC/Possible Areas for Cooperation

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  • IFC PPP advisory mandate requires the winner bidder to implement the

project using IFC/WBG Performance Standards for E&S Risk Management.

  • Key outcome is that projects are “bankable” from the financial viewpoint as

well, creating private sector investment pipeline for IFI and commercial lenders.

  • Capacity within Governments to understand and implement PPP

transactions is generally weak. Specific transactions could benefit from PIUs with knowledge transfer to benefit future projects.

  • Fine tuning of the upstream laws and regulations for PPPs, using the

practical experience of implementing specific transactions, sometimes requires consultants/legal work.

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SLIDE 12

THANK YOU!

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Thomas E. Lubeck Regional Manager, Western Balkans Bulevar Kralja Aleksandra 86 11000 Belgrade Tel: +381 11 3023 750 Email: Tlubeck@ifc.org