FINANCING GROWTH AND FINANCING GROWTH AND COHESION IN THE ENLARGED EUCOHESION IN THE ENLARGED EU

Brussels

24 November 2005

Gavin Anderson

EBRD EXPERIENCE OF PPPs IN NEW EBRD EXPERIENCE OF PPPs IN NEW MEMBER STATESMEMBER STATES

1. Examples of EBRD financing

Tallinn Water

Hungarian Motorways

2. Illustrative pipeline

3. Key issues for accelerating PPP development

TALLINN WATER: EBRD FINANCINGTALLINN WATER: EBRD FINANCING

1994 Sovereign-guaranteed loan

2000 Pre-privatisation financing

2001 Privatisation (50.4%)

2002 Loan to private company

2003 EBRD Equity following change in shareholding group

2004 Successful IPO

Outcome

Improved services for citizens of Tallinn

Increased value of company

HUNGARIAN MOTORWAY EXPERIENCEHUNGARIAN MOTORWAY EXPERIENCE

1. 1992 M1/M15 financing– issues of toll/traffic levels and legal challenges

– many lessons learned

2. 1995 M5 financing- Sound financing structure, but tolling inhibits full utilisation

- Refinanced in 2004 on basis of availability payments; subsequent financing of final stretch

3. 2004/5 M6 financing- Experience of restructuring M5 enabled fast and effective

tender process

- Construction nearing completion, so refinancing now under discussion.

ILLUSTRATIVE EBRD PPP PIPELINEILLUSTRATIVE EBRD PPP PIPELINE

Urban Transport Bus companies Commuter rail (?)

Municipal Infrastructure Solid waste Waste water Schools

Roads Toll roads for

maintenance/upgrade Availability payment structures

for new motorways

Airports Significant growth in interest

Rail Station renovation and

property-related projects Freight privatisations

KEY ISSUES FOR ACCELERATING PPP KEY ISSUES FOR ACCELERATING PPP DEVELOPMENTDEVELOPMENT

Project selection

Process

People

How to encourage cofinancing with EU funds?