Transport & Logistics EBRD financing Houda Lahrech CGEM, - - PowerPoint PPT Presentation

Transport & Logistics – EBRD financing Houda Lahrech

CGEM, Casablanca, 2 May 2017

Agenda

2

• EBRD overview
• EBRD in the Transport sector
• Why transport
• Our vision in the transport sector
• How to deliver sustainable transport
• Logistics: area of increasing focus
• Why sustainable logistics
• Solutions for Green Logistics
• Barriers
• Examples of tools available

EBRD in a snapshot

• IFI to promote transition to market

economies in 36 countries;

• Over 117 € bln invested in 4,700+ projects

since 1991;

• 9.4 € bln invested in 400 projects in 2016;
• Owned by 65 countries and two

intergovernmental institutions (AAA rated);

• HQ in London, it has 36 regional offices;
• Across all business sectors (Infrastructure,

Energy, Industry & Agri, Financial Institutions, etc.)

• Private sector oriented (80%)

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Industry Commerce & Agribusiness 17% Energy 21% Infrastructure 29% Financial Institutions 33%

€ 1.2 bn

EBRD’s Activities since 2012 in Morocco

4

EBRD’s portfolio (1)

(1)

EBRD’s activities

• Financing capabilities in hard & local currency for

debt & equity investments

• Indirect & Direct Financings:

✓ Credit lines with Moroccan banks (TFP, MORSEFF, SME) ✓ Limited Partner Investor in Equity Funds ✓ Flexible financings tailor-made to the project’s needs (Senior debt, Project finance, Fixed/Floating rates) ✓ Anchor investor in Bonds

• Financing SME, Family Group & International

Sponsor

• 300

300 Techni nica cal Assist stance ance projects

• Supported Innovative financing structures
• Promoted “Green” investments
• € 1.2 bn

bn invested d since ce 2012 ✓ € 920 m invested in 32 32 project cts ✓ € 250 m for Trade Finance credit lines

• Investments from € 3 m to € 200 m across FI,

Infrastructure, Energy & ICA

(1) Based on signed transactions as of 31/12/2016. TFP: Trade Finance Programme.

EBRD in the Transport Sector

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Over EUR 13 billion invested in 270+ projects

Why Transport?

• Safe and efficient transport networks fundamental to

economic growth and well-functioning markets

• Infrastructure gap
• Severe constraints on public budgets: Private sector

participation is key

• Emphasis on regional integration: Increased risk of cross-

border projects

• Sector reforms needed
• Innovation and multimodality are crucial for sustainable

development

• Transport is fundamental to deliver climate policies

(COP22): only major sector in the EU where GHG missions are still rising.

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Our vision in the Transport Sector

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“EBRD promotes and finances safe, secure and sustainable transport systems across the region which embody market principles” (Transport Strategy)

Are reas s of increa reasing sing focus: s:

• Sustainable Transport:

Energy Efficiency, Gender Inclusion, Road Safety

• Logistic Development & Intermodal

Transport

• Small Business Initiative

Traditio ditional nal strategic ic approac

• ach:

h:

• Transition gaps: Sector reform and

Private Sector Participation, Market Orientation, Commercialisation, Financial Sustainability, Corporate Governance

• Bridging infrastructure gap: regional

integration and trade facilitation

+

How to deliver Sustainable Transport?

• Improve business environment and

regulatory framework Stakeholder engagement (eg. IFIs, CAREC, TRACECA, etc.)

• Wide range of

financing instruments for public and private clients

• Risk mitigation –

catalyst (IFI status)

• Mobilize EU and

climate funds

Projects & Investments

Technical Cooperation

Policy Dialogue

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• Over EUR 20 mln p.a.

mobilized to support sector reforms and challenges

• TCs for project

identification (eg. Energy Audits) and preparation (IPPF)

Logistics: Area of increasing focus

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Over the last 5 years the EBRD has invested €2billion

in 35 Projects cts about Intermodal Transport & Logistics

The demand for freight transport is growing and the Bank aims to bridge the infrastructure gap and facilitate the sustainable development of the sector:

• Logistics Centres
• Intermodal Terminals
• Road Fleet modernization
• Port Development
• Rolling stock and railcars
• Short-Sea Shipping & Inland River Transport
• Capital markets and financial restructuring (IPO,

private placement, etc)

• Modernization and Green Logistics

• About 2,800 million tonnes CO2 p.a. caused by

logistics sector;

• Carbon emissions are forecasted to grow at 2.3% p.a.

until 2050

• Despite improvements, energy intensity in the EBRD

region remains on average over three times higher than in the EU

• High and volatile energy costs as an obstacle for

competitiveness

• Pressure from clients, requiring stronger

environmental performance and stricter reporting

• Pressure from policy makers and stakeholders aiming

for modal shift to rail

Why Sustainable Logistics? Time for Action

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11

Solutions are out there

Eco-driving Electric handling equipment BMS, insulation, cogeneration, etc.

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Intermodal solutions CNG, aerodynamics, low rolling tires, etc. New generation railcars LED lighting ITS systems

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Barriers for Sustainable Logistics

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• Lack of local financing for early

movers

• Inadequate policies and tax

disincentives

• Lack of information (or

sometimes too much information!)

• No MRV carbon footprint

systems implemented to understand the results and impact of measures

• Changeable policy environment
• Misunderstanding of risks (too

much focused on construction)

• Weak standards of corporate

governance

• Few trained and skilled

professionals on Sustainable Logistics, both in public and private sector

• Low of penetration of

solutions and suppliers

• Infrastructure gap! Lack of

pipeline of projects

• Unsuitable appraisal

methodologies

Examples of tools available:

Donor funded TC available

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Over r EU EUR 20 mln mobil bilized ized from

• m our

ur don

• nor
• rs

s to sup uppor

• rt

t

• ur

ur clients ents. .

Some examples:

• Detailed energy audit to identify opportunities for EE

(terminal modernization, handling equipment, etc.);

• Feasibility Studies of new products and services
• Sector reform
• Capacity Development, training, etc.
• Environmental Management Systems,
• Road Safety Management,

(etc.)

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Examples of tools available:

Green Logistics Programme

• Funded by EBRD and Global Environment Facility (GEF): 16 mln USD
• Programme to facilitate implementation of innovative practices and technologies in the sector
• Components:
• Concessional

cessional finance.

• nce. Subject to eligibility criteria (carbon savings, BAT,

governance practices, etc.), the facility can cover up to 35% of the loan at LIBOR+75bps in Mediterranean and Black Sea Countries (non-EU)

• Projects also benefit from donor funded Techn

hnica ical Assista istance nce to prepare

and implement green solutions

• Policy

cy Dialogue

• gue: GLP will partner with professional institutions to transfer

skills about Green Logistics in the region (certified training programmes) and develop transparent MRV methodologies

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1- Eligible countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia, Egypt, FYR Macedonia, Georgia, Jordan, Moldova, Montenegro, Morocco Serbia, Tunisia, Turkey, Ukraine 2 – Subsectors: Logistic terminals/centres, ITS, Road fleet modernization, Port development, Short sea shipping, Inland river transport, Rail rolling stock

• EBRD is working with local banks to offer a Green Transport Line

in Morocco

• Transport sector needs financing for fleet renewal. The idea is to offer a

new dedicated product taking in consideration sector characteristics thanks to a package including financing and technical assistance.

• Part of the line will benefit from the GLP concessional funding
• We are currently talking with the banks and we intend to share the

progress of the project and discuss it with you

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GEF EBRD Moroccan Bank Borrower

Examples of tools available:

Green Transport Line

Examples of tools available:

Fintecc

Finance and Technology Transfer Centre for Climate Change

• Funded by Global Environment Facility (GEF) and EU
• FINTECC is a programme that helps companies in Kazakhstan, Ukraine, Early Transition

Countries and SEMED1 to implement innovative climate technologies with low penetration.

• Components:
• Donor-funded technical audits to evaluate opportunities
• Incentive fees for private companies to introduce eligible technologies

(grants for up to 25% of the eligible costs, capped at 0.5 mln EUR)

• Policy support on a range of policy topics

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http://fintecc.ebrd.com/index.html

1- Early Transition Countries: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan, Turkmenistan and Uzbekistan SEMED: Morocco, Tunisia, Jordan, Egypt

Annexes Case Studies

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Client: Kazakhstan Temir Zholy, National Railways Company (KTZ) EBRD finance: Eurobond issue Total Project cost: CHF 285 million Year: 2014 Project description: Development of a logistic hub to attract additional transit cargo traffic to the country (China-EU route) Impact:

• Development of vital infrastructure to facilitate

Eurasian connectivity by rail

• TC support to improve corpor

rporat ate go govern ernan ance and management practices of KTZ’s logistics

• perator JSC KTZ Express,
• TC to help KTZ Express to structure a pilot

logistic hub with the privat ate sector

• r parti

tici cipati pation

KTZ Dry Ports, Kazakhstan

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Client: EKOL Lojistik, A.S. EBRD finance: Senior loan EUR 12 million Total Project cost: EUR 30.0 million Year: 2012 Project description: Acquisition of three Ro-Ro Vessels to provide Short

Sea Shipping between Haydarpasa (Turkey) and Trieste (Italy)

Impact:

 50,000 + trucks shifted from road to sea per

annum (thus saving 19,000 ktonnes CO2)

 Adoption of best practices to raise the standards

• f the Turkish shipping industry: ISO 50000, ISO

14000, and Safety & Disaster Response Plan

Ekol Ro-Ro services, Turkey

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Client: Inpost EBRD finance: EUR 10 mln Total Project cost: EUR 82 million Year: 2014 Project description: Participation in IPO. Expansion of Automated Parcel Collection Network (4,000 lockers) Approach: Significant environmental benefits: 30 k tonnes CO2 p.a. compared to traditional delivery to door. With EBRD support, the company will also:

 Develop carbon neutral courier services  Develop of carbon reporting system in line with EN

16258 principles and GHG Protocol.

 Implement Road Safety System (ISO 39001) and

Environmental Management System (ISO 14001)

 Increase gender diversity at senior positions

Case Study

InPost, Poland

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Client: Akel Logistics: Provider of point-to-point transport services throughout Turkey primarily in food & beverage and related sectors EBRD finance: Senior Loan EUR 4.4 million Total Project cost: EUR 4.4 million Year: 2013 Project description: Working capital financing and development of two

logistics centres

Impact:

 Provision of integrated logistics solutions combining

warehousing services with point to point logistics and transportation solutions

 Improving

corporate governance, including simplification of ownership structures, adoption of IFRS accounts, and first time audit

 It was structured through Local Enterprise Facility, a

vehicle for investments in small and medium-sized enterprises (SMEs);

Akel Logistics, Turkey

Contacts

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David d Al Allan, n, Principal Banker Tel.: +44 20 7338 8789 David.allan@ebrd.com Houda uda Lahre rech ch, Associate Banker Tel.: +212 5 22 64 91 72; GSM: +212 6 31 00 08 70 Houda.lahrech@ebrd.com