financing energy projects in bosnia & herzegovina
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A presentation on financing energy projects in Bosnia & HerzegovinaTRANSCRIPT
karanovic/nikolic
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
September 2013 / Stevan Dimitrijević
karanovic/nikolic
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Regulatory framework in short
▬ Division of regulatory powers in energy sector between central government and entities:— Central: transmission grid, organization of market— Entities: all other sub-sectors
▬ Overregulated areaenergy, construction, water management, spatial planning, concessions and natural resources, foreign exchange regulations
▬ Undeveloped local legal framework and practice
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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New Projects – Financing
▬ Need for new facilities
▬ Increased interest in investments in energy projects
▬ Financial support
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Collaterals – Local Standards
▬ Local banks’ practice/ local standards
— mortgage— pledge on movable assets— promissory notes— joint and several warranty
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Collaterals – International Standards
▬ “New” instruments / international standards— pledge on receivables— floating charge / generic movables (coal, etc)— pledge on accounts— trademark pledge— assignment of proceeds— direct agreements
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Obstacles
Implementation of internationally recognized collaterals faces following obstacles:
— Lack of practice— Overregulation— Lack of regulations
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Solutions▬ Deal orientation▬ Proper advisors for all parties▬ Important role of public party advisors
– Transactional– General – development of local legal framework, capacity
building▬ Improvement of local legal framework▬ Court and arbitration practice
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Direct Agreements
▬ Importance▬ Practice leads▬ Improvement in regulatory field (Serbian Law on PPP and
Concessions)▬ Perspectives
Stanari Project – first (and only) energy project in Bosnia with direct agreement as collateral
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
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Case study – Stanari Project
▬ TPP Stanari:— 420 MW installed capacity— Planed annual generation: 2 million MWh— Commencement of operations: 2016
▬ Revitalization of coal mine Stanari
▬ Value of the Project: EUR 550 million — of which EUR 350 million from CDB loan
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
10
Our Team
Miloš VučkovićSENIOR PARTNER
Stevan DimitrijevićPARTNER
Petar MitrovićASSOCIATE
Resavska 2311000 BelgradeSerbiaT + 381 11 3094 200F + 381 11 3094 223
Gundulićeva 478000 Banja LukaRepublic of SrpskaBosnia and HerzegovinaT + 387 51 250 001F + 387 51 250 005
Resavska 2311000 BelgradeSerbiaT + 381 11 3094 266F + 381 11 3094 223
Financing of Energy Projects in Bosnia and Herzegovina – Collaterals
karanovic/nikolic
Thank you