ecowas bank for investment and development (ebid)

ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)

Geneve

30 November 2006

ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)

ECONOMIC INDICATORSPopulation : 240 000 000 Surface Area : 6 184 000 KM2

Regional GDP: US $ 71.3 billion

Part 1 :

INSTITUTIONAL FRAMEWORK

ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT


EstablishmentThe ECOWAS Bank for investment and development

(EBID) was establish by decision of the Authority of Heads of States and Governments of the Community in December 1999.

VisionEBID intends to become the leading regional investment and

development financing institution in West Africa. It also aims at becoming a tool for poverty reduction, wealth and job creation so as to help raise the living standards of the people of the region.

Create an enabling environment for the emergence of economically strong, industrialized and prosperous West Africa

“ Contributing to the realisation of ECOWAS objectives by supporting regional integration infrastructure projects or any other development projects in the public and private sectors ”

Supporting the development of the community through the financing of special programmes or projects


Mission and corporate objectives

Board of Directors of ERIB

ERDF

General Meeting of Shareholders

Board of Directors of ERDF

General Meeting of Shareholders

Managing Director of ERDF

EBID HOLDING COMPANY

Board of Governors

ERIB

Board of Directors of EBID

President of EBID

Managing Director of ERIB


initial authorised capital : 603 million UA (about USD 750 million)

Capital structure :

ECOWAS Member States : 66.67 %

Non-regional members : 33.33 %

Called-up capital : 35 %

Callable capital : 65 %


Capital structure

Proposed shareholding structure

33.33 %

66.67 %

Member StatesNon-Regional members

Structure of callable and called-up capital

35 %

65 %Called-up capitalCallable capital

Capital structure


Part 2:

SECTORS OF INTERVENTION


The two sectors which benefit from the interventions of EBID

Public sector Private sector


Granting loans to finance basic infrastructure, economic and social development projects in Member States. Granting loans to finance feasibility studiesGranting loans to finance the Community’s special programmesProviding assistance to Member StatesInvestment and management of special Funds

Public sector


Poverty

reduction

Basic Infrastructure, Health

Microfinance

Education and professional training

Rural and semi-urban development and environment

Social sector

Industry

Production, transmission and distribution of energy

Transport, telecommunications

Irrigation and control of the flooding of rivers

Integration of regional production into the global economy

Development of economic

infrastructure

Areas of intervention under the public sector


Long and medium term loans for commercial projects

Other financial institutions for the financing of investments under framework financing agreements

Co-financing or loan syndication for investment projects

Issue and guarantee of borrowings, bonds, national, regional or international debenture bonds or securities

Financing feasibility studies of investment projects

Financial engineering and sundry financial services

Private sector


Supporting the Financial Sector

Investments

Privatisation programmes

Restructuring of banks and specialised financial institutions

Financial support to national financial institutions

Telecommunications

Energy, Water

Ports and airports, Transport

Industry

Environment: treatment and recycling of waste

Hospitals and private clinics, Hotel business, Real estate

Development of economic

infrastructure

Areas of intervention under the private sector


PART 3:

APPLYING TO THE BANK FOR SUPPORT


Members States or Private promotors may apply directly to the BankApplication should include :

Project feasibility studiesTerms of reference for the studies

Applying to the Bank for support


Project appraisal Negotiation and presentation of the project to the board of DirectorsImplementation

Commencement and supervision

Instructions


Financing terms and conditions

Guarantee fee :0.5 to 5% per annum

Document procesing fee :1% fixed

Guarantee fee :0.5 to 5% per annum

Document procesing fee :1% fixed

Fees

30% to 40%≥ 10 % Promotors contribution

7% – 13% per annum1.5% – 10% per annumRate

5 to 10 years10 to 20 yearsDuration

US $ 1,000,000 to 15,000,000US $ 1,000,000 to 15,000,000Maximum amount

PRIVATE SECTORPUBLIC SECTORRUBRIQUE


Part 4:

THE ACHIEVEMENTS OF THE BANK AT

31/12/2005


As at 31 December 2005 the total commitments EBID in respect of 45 projects amounted to UA 143,853,398 (US $ 205 710 359). The breakdown of the commitments is as follows

-67 762 510100143 853 398Total

--23.3736 497 659Guarantee

63.1267 762 51074.63107 355 739Direct loan

Rate %(2)/(1)

Amount(UA)% shareAmount

(UA)

DisbursementsCommitments

Type


Breakdown of commitments and disbursements according to sector

73%

2%

25%

Direct loan Equity Guarantee


RESSOURCES


Own resources •US dollars 80 million

Lines of credit

• US dollars 250 million from Indian government• US dollars 50 million from IDC of South Africa• US dollars 50 million from UEMOA market

Part 5:

EBID AND THE BIO FUEL PRODUCTION


BIO-FUEL PRODUCTION(Industrial production)

EquipmentConstructions

Working capital

DISTRIBUTION (PME/PMI)

TransportFuel Station

ETHANOL PRODUCTION(PME/PMI)Equipment

ConstructionsWorking capital

Production Chain

AGRICULTURAL PRODUCTIONResearch

Production


AGRICULTURAL PRODUCTION

Direct financing

Lines of credit granted to national banks

Guarantees granted to national banks

1. EthanolCassavaSweet PotatoesSugar CaneEtc…

2. OilJethrophaOther plants

FINANCINGITEM


INDUSTRIAL PRODUCTION

Direct financing

Lines of credit granted to national banks

Guarantees granted to national banksEquity

FINANCINGPROJECT COMPONENTS

Equipment

Constructions

Working capital

PME / PMIEthanol

IndustriesBio fuel

ENTERPRISESPRODUCTION


Part 6:

STUDY CASE : FINANCING BIO DIESEL PRODUCTION FROM JATROPHA PLANTATION DEVELOPMENT

VALUE CHAIN


Cost of the various components of the project

US $ 45 Million

3. Processing planti. The factory land, buildings and constructionii. Supply of utilities to the factoryiii. Plant, machinery and equipementiv. Working capital

US $ 129.29 MillionTotal

US $ 29.73 Million2. Marketing of physic nuts

US $ 54.56 Million1. Jatropha plantation development

CostComponents


How EBID will finance the project


US $ 35 MillionAmount required

US $ 15 MillionContribution of EBID

•Local Banks

•Possibility of guarantee by EBIDCo-financing

Working capital


Fincanced by local commercial Banks

ADVANTAGES AND RISKS


ADVANTAGES • Competitiveness of the product• Environmentally friendly

• Supply of raw materials• Participation of the promotorin the financing of the project

RISKS

Creation of a fund

African Bio-Fuel Fund

Autonomous body with its own decision-making bodies, or a body attached to an existing institution such as EBID

Organization and management of

the fund

New mechanisms to finance bio-fuels


Windows

Research and Development financing window : grants, subventions

Window : agricultural production : Jathropa and plantations for the production of ethanol

Window for the creation of bio-industry

Window : SME / SMI (production and distribution intermediary

Sources of financing

Amount


Road mapPreparation of tems of reference and finalizing of feasability

studies : 1st quarter of 2007

Adoption of report and launching of the fund: April-June 2007

Bilateral and multilateral sources

Carbon credit trading scheme

Foundations

Etc…..

Steering Committee

Composition : 5 members including EBID and UNCTAD

THANK YOU FOR YOUR KIND ATTENTION


ecowas bank for investment and development (ebid)

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