EBRD Municipal and Environmental Infrastructure

7 June 2017, Tbilisi, Georgia

EBRD in summary

2

NCBI = Net Cumulative Bank Investment

Since 1991, EBRD invested over €116 billion in

around 4,723 projects across private and public

sectors in its countries of operations

7.368 6.9

8.5 8.2 8.7

1.115 1.2

0.97 1.4 0.726

0

10

20

30

40

50

60

70

80

90

100

110

120

0

1

2

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9

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Net cum

ulative bank investment

Ann

ual b

usin

ess

inve

stm

ent

(AB

I)

Equity ABI

Debt ABI (and guarantees)

Net Cumulative Bank Investment

Note: unaudited as at 31 December 2016

23%

27% 26%

24%

Financial Institutions 23% (Depository credit (banks), Leasing finance,

non-depository credit (non-bank), Insurance, Pension, Mutual Funds)

Corporate 27% (Manufacturing/Serivces, Agribusiness, Equity funds,

Property & Tourism, Information & Communication technology)

Infrastructure 26% (Municipal & Environmental infrastructure, Transport)

Energy 24% (Power & Energy, natural resources)

EBRD Portfolio by sector

Municipal and Environmental Infrastructure

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• Water and wastewater projects

• Solid waste projects

• Public transport projects (buses, trolleybuses, metro)

• District heating projects

• Urban roads rehabilitation projects

• Street lighting projects

• Parking projects

• Misc. energy efficiency measures

We do projects that improve people’s lives

Common challenges

• Sovereign borrowing constraints

• IMF/grant co-financing requirements

• Huge needs

• Affordability constraints

• Implementation constraints

• Institutional capacity

• Changing national counterparts

• Access to technical cooperation funds

• Economic absorption constraints

4

Typical Deal Structure

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• All sub-sectors covered: W&WW, PT, SW, DH/EE

• Sovereign or sub-sovereign loan

• Company/utility loan if possible

• Promoting private sector involvement, where appropriate

• Counterparties: national, sub-national, Company level

• Projects can focus on one city or have regional coverage

• Co-financed by capex grants and other IFI loans (e.g. EIB,

KFW)

• Policy work to create enabling environment

• Technical Cooperation grants for project preparation and

implementation support (donor funded)

• Feasibility study

• Implementation support

• Corporate development and stakeholder participation

programmes

Green Economy Transition (GET)

40%

Green finance in EBRD

annual business by 2020,

from a 2015 level of 30%

€ 4 billion Target annual EBRD green

business by 2020

€ 22 billion Target cumulative EBRD

green business 2006-2016

@EBRD #EBRDgreen #GreenCities 6

EBRD Green Cities Programme

Delivery of strategy and policy

support (GCAP)

Facilitating and stimulating green

City infrastructure investments

Building capacity of city

administrations and key

stakeholders

A systematic approach to address urban

environmental performance and barriers through:

@EBRD #EBRDgreen #GreenCities 7

Eligibility Criteria

INFRASTRUCTURE INVESTMENTS Programme focus on sectors:

• Solid Waste

• Water & Wastewater

• Urban Transport

• District Heating

• Public Building Energy Efficiency

CITIES OF ≥ 100,000 Across EBRD’s COOs Cities with

smaller population sizes can be

considered on a case-by-case basis

considering the needs of the cities

MUST CONDUCT GCAP To initiate the Programme, in

conjunction with a ‘trigger’ project

in one of the Programme’s sectors

@EBRD #EBRDgreen #GreenCities 8

Green City Infrastructure Investments

Central Government

Municipality Private Company Utility Company

Quasi corporate utility loans

Loans to PPP/ private

companies

Sovereign-backed loans

Municipal loans or utility loans guaranteed by municipality

Investment Size

€ 2 million to € 150 million

Financing Options

@EBRD #EBRDgreen #GreenCities 9