german financial cooperation with europe and caucasus - municipal infrastructure workshop on water /...
TRANSCRIPT
German Financial Cooperation with Europe and Caucasus - Municipal Infrastructure Workshop on water / urban infrastructure
Brussels, 29th May 2009
Christian Haas, Division Chief, Water and Sanitation Europe
Thomas Wolf, Senior Engineer, Municipal Development, Europe & Caucasus
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Overview
KfW Entwicklungsbank - Who we are
KfW Entwicklungsbank – How we work
Municipal Infrastructure in Europe/Caucasus - Geographic distribution of projects
Municipal Infrastructure in Europe/Caucasus - Challenges and solutions
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Investment FinanceGermany and Europe
FinancialCooperation
Promotion of Housing; Environment and Climate Protection; Education, Infrastructure
Commitments 2008: 33,8 bn €
International Project andExport Finance
Commitments 2008: 17,6 bn €
Promotion of SMEs, Business Founders, Start-ups
Commitments 2008: 14,3 bn €
Promotion of Developing and Transition Countries
Commitments 2008:4,9 bn €
KfW Entwicklungsbank A part of KfW Group.
InternationalProject and Export Finance
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Organisational Structurefrom September 2008
Evaluation DepartmentFinancial Cooperation
Sector and Policy Division Division
Regional Team Regional TeamRegional TeamRegional Team
GovernanceAgriculture and
Environment
Water Resources,Solid Waste
Health,Education,
Social Protection
Agriculture and Natural
Resources
Social Infrastructure,Governance
EconomicInfrastructure
Finance,Economic
Infrastructure
Water Resources,Solid Waste
(North Africa)Water
Directorate IISub-Saharan Africa
Finance andPrivate Sector
InstitutionalDevelopment
social/economicInfrastructure
Regional Team
Energy
Financial andPrivate Sector
Health
DepartmentSouth and
Central Asia
DepartmentSouth and
Central Africa
DepartmentEast and West
Africa
DepartmentNorth AfricaMiddle East
DepartmentLatin America
Caribbean
DepartmentStrategy
Developmenteconomics and
research
DC strategiesand
cooperations
Promotionalinstruments and financial
products
GeneralPrinciples andFC processes
Planningand
monitoring
DisbursementManagement I
Transactionand CollateralManagement
Board of Managing Directors
DepartmentTransaction
and CollateralManagement
Loan and RiskManagement
DisbursementMgmt III, DebtReschedulingand Release
DisbursementManagement II
Regional Team
Financial SectorTransform
Energy, Transport
Water Resources,Solid Waste
Municipal Development, Environment
DepartmentEurope and Caucasus
Directorate IIIEurope, North Africa
and Middle East
Regional Team
Transport, Communications
Water andVocationalTraining
Protection of Natural
Resources
DepartmentEast Asia
and Pacific
Promotional Loans for
Infrastructure
Directorate IVLatin America and Strategy
Berlin Office
IT coordinationFinancial and
PrivateSector
Directorate IAsia
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Overview
KfW Entwicklungsbank - Who we are
KfW Entwicklungsbank – How we work
Municipal Infrastructure in Europe/Caucasus - Geographic distribution of projects
Municipal Infrastructure in Europe/Caucasus - Challenges and solutions
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Relationship between BMZ and KfW:From the intergovernmental agreement to the financing agreement
KfW Project executing
agency
Partner countryBMZ
agreement under international law
financing agreement
mandate
KfW's partners are public authorities or state-owned enterprises
provision of trust funds
commitment of trust funds and KfW funds
project monitoring,evaluation
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Our financial products
Project preparation Feasibility Study Grant funding
Investment Physical investment
Implementing consultant
Concessional long term loans with maturities between 12 and 30 years (in some countries up to 40 years).
Delivery of services Technical assistance Grant funding
Phase Instrument Funding conditions
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Overview
KfW Entwicklungsbank - Who we are
KfW Entwicklungsbank – How we work
Municipal Infrastructure in Europe/Caucasus - Geographic distribution of projects
Municipal Infrastructure in Europe/Caucasus - Challenges and solutions
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Municipal Infrastructure Sector in Southeast Europe KfW’s Current Project Portfolio
Albania: EUR 127.1 million
Bosnia Herzegovina: EUR 46.5 million
Croatia: EUR 73.5 million
Kosovo: EUR 21.5 million
Macedonia: EUR 61.4 million
Montenegro: EUR 71.5 million
Serbia: EUR 105.5 million
TOTAL: 507.0 million
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Water & Sanitation Projects in TurkeyTotal commitments ongoing projects: EUR 150 million
On-going / under preparation Concluded
z
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FZ im Südkaukasus
Financial Cooperation with South Caucasus:Overview of Water&Sanitation Projects
Total commitments ongoing projects: EUR 170 million
Sheki
Ganja
Batumi
Imishli
Borjomi
Armavir
Gyumri and Vanadzor
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Overview
KfW Entwicklungsbank - Who we are
KfW Entwicklungsbank – How we work
Municipal Infrastructure in Europe/Caucasus - Geographic distribution of projects
Municipal Infrastructure in Europe/Caucasus - Challenges and solutions
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Municipal Infrastructure - Challenges
High investment (and re-investment) needs – but limited financial resources
Insufficient cost coverage leads to poor service quality and lacking maintenance
Limited implementation capacity at municipal and central level
Limited municipal borrowing capacity (financial, legal and political)
Municipalities and their utilities have little or no experience with credit financed investments
Lack of transparency regarding diverse funding sources and their availability
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Quality at Entry:
Hands-on Experience through KfW’s long-standing presence on the ground and frequent contacts with beneficiaries also in periphery regions
Sound Preparation via international expertise for (Pre-)Feasibility Studies and own assessments with focus on technical, environmental, socio-economic and institutional needs and capabilities on project and sector level
Focus on medium-sized Municipalities to maximize development impact
Flexible Financing Solutions for tailor-made funding conditions fitting to economic and social situation
Municipal Infrastructure - KfW’s Approach (1)
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Responsible Finance: Graduation Principle 1:
Phased investments based on technical, institutional and financial performance criteria (incl. ability and willingness to reforms)
Graduation Principle 2:
1. Direct lending to municipalities
2. Lending via financial intermediaries
Intensive Monitoring in order to ensure efficient implementation on high quality standards
Investments linked with TA to improve management capacities and ensure sustainable operation also after the end of external support
Independent Evaluation with focus on sustainable impact
Municipal Infrastructure - KfW’s Approach (2)
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Municipal Infrastructure Sector Example of performance-based Programme
Exclusion of Municipality
Phase 1Urgent measures
Phase 2 Larger scale investments
Criteria 2met?
Criteria 1met?
yes yes
no no
Further TA
TAdirected towardscriteria set 1
TAdirected towardscriteria set 2
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Examples of performance criteria: municipalities
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Examples of performance criteria: utilities
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More Information
www.kfw-entwicklungsbank.de
www.deginvest.de
Newsletter published by KfW Entwicklungsbank(http://www.kfw-entwicklungsbank.de/DE_Home/Service_und_Dokumentation/
Newsletter/index.jsp)
Annual Report on Cooperation with Developing Countries(http://www.kfw-entwicklungsbank.de/DE_Home/Service_und_Dokumentation/Online_Bibliothek/Jahresberi.jsp)
Evaluation report on the effectiveness of cooperation with developing countries (http://www.kfw-entwicklungsbank.de/DE_Home/Evaluierung/Ergebnisse_und_Veroeffentlichungen/Auswertung.jsp)
Specialist publications / Online Library in the Internet(http://www.kfw-entwicklungsbank.de/DE_Home/Service_und_Dokumentation/Online_Bibliothek/index.jsp)
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Do you have any Questions?