Libor KrkoskaHead of office

EBRD Bosnia & Herzegovina18 April 2013

© European Bank for Reconstruction and Development | www.ebrd.com

EBRD – Your partner in BiH

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EBRD in BiH at a glance

• To date, EBRD signed over 100 projects with cumulative business volume of close to EUR 1.5 billion

• Mobilised total investments of EUR 3.1 billion

• 12 new projects amounting to EUR 125 million in 2012 – 33% year-on-year increase.

• Record disbursements of EUR 165 million in 2012 – almost 70% year-on-year increase.

• Most projects signed in 2012 were in the private sector.

• 2013 core pipeline of Euro 180 million in 18 individual projects.

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Bosnia and Herzegovina: EBRD portfolio by sector

Financial Institutions

21%

Industry, Commerce & Agribusiness

7%

Infrastructure 65%

Energy7%

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EBRD Energy Sector Financing

• Cumulative EBRD financing to power & energy projects since 1992 is €8.2 bn across 172 projects with €28.5 bn total value

• In 2012 invested over €1.1 bn in 24 projects with a total value of €3.2 bn

• In the last five years, number of projects per year has tripled and annual business volume has quadrupled

• Renewables represent an increasing portion of total financing, comprised primarily of wind and hydro but also including biomass and solar

Natural Gas Distribution

2% Renewable Power21%

Electric Power

Generation57%

Electric Power

Transmission8%

Electric Power

Distribution12%

Financing by Sector (2009-2012)

Unaudited as at 31 December 2012

Note: Renewable power does not include large hydro.

Source: EBRD data

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Focus on renewables

• In 2012 the EBRD signed €304 mln of financing for 14 renewables deals with a total gross project value of €959 mln

• Award winning transactions include the following windfarms: St Nikola (Bulgaria), Rotor (Turkey) and Margonin (Poland)

• Technologies financed to date include wind (77%), hydro (10%), biomass (7%) and solar (0.5%). Hydro includes greenfield small hydro, but not large hydro.

Mongolia4%

Other Central Europe

12%

Baltics6%

Poland29%

Ukraine2%

Turkey20%

Western Balkans

11%

Romania16%

Renewables financing by

Region (2009-2012)

Unaudited as at 31 December 2012

Note: Renewable power does not include large hydro.

Source: EBRD data

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Key issues for financing

• Sector issues – tariff levels, consumer payment discipline

• Project issues – cost, technology, risk

• Contractual arrangements – balance of risk between the sponsor and contractor

• Government support – is there government support for the off-taker and for other contractual obligations?

• Legal framework – is the legal framework enforceable? dispute resolution? changes in law?

• Regulatory framework – is their independent regulation of the sector?

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EBRD’s Sustainable Energy Initiative

• The Initiative in the Western Balkans includes:

– Western Balkans Sustainable Energy Direct Financing facility (WeBSDEFF) – an investment facility of up to € 100 million to provide direct lending for energy efficiency and small renewable energy projects in the Western Balkans region. Loans in range of € 2 - 6 million.

– Western Balkans Sustainable Energy Credit Line Facility (WeBSEFF) – a credit line facility of up to € 60 million for financing industrial energy efficiency and small renewable energy projects through Participating Banks (in BiH, FYR Macedonia and Serbia). Loans of up to € 2 million.

– Institutional capacity building component of up to € 3.5 million to address regulatory deficiencies and other obstacles to the development of the market for sustainable energy projects.

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Slide 7

WeBSEFF Regional achievements

127 projects; EUR 52.7 mln

Total CO2 savings 131,689 t/yr

Total energy savings

461,205 MWh/yr

Renewable Energy Production

52,807 MWh/yr

Current pipeline value

EUR 7.1 mln

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Slide 7

WeBSEFF achievements in BiH

55 projects; EUR 13.3 mln

Total CO2

savings18,167 t/yr

Total energy savings

46,162 MWh/yr

Current pipeline value

EUR 1.7 mln

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Project breakdown - Bosnia and Herzegovina

41 EE Projects

10 RE Projects

4 Combined (EE/RE) Projects

Total of 55 projects, of which

Raiffeisen Bank: 37

UniCredit Bank: 18

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Case studies – Bingo

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Type of project

• Renewable Energy/ Energy Efficiency – Implementation of IEE measures in several BINGO outlets

Region

• Bosnia and Herzegovina

Project goals

• Increase energy savings• Improve equipment reliability• Reduce maintenance costs at existing outlets • Reduce operating costs

Main investments

• Lighting• Refrigeration system• Insulation panels• Skylights• Heat pumps- space cooling and heating

Investment size

Approximately € 5.4 million

Expected operational results

• Primary energy savings: 15,477 MWh• CO₂ emission reduction: 4,700 t/year

Skylights at an already existing BINGO outlet

Air curtainsFan coils

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Case studies – Natron Hayat

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Type of project

• Renewable Energy – Construction of a new biomass CHP plant to replace an existing coal-fired power plant

Region

• Bosnia and Herzegovina

Project goals

•Utilize company’s biomass waste as fuel•Reduce environmental impact of the wood waste•Reduce operating costs related to energy (electricity and steam)•Subject to availability of green feed-in-tariff the company can generate significant income from sale of electricity to the grid

Main investments

• Biomass-fuelled boiler and steam turbine

Project size

€ 11 million

Expected operational results

• Generate electricity and steam for its manufacturing process • Sell surplus electricity to the grid• CO₂ emission reduction: 275.000 t/year

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EBRD Bosnia and HerzegovinaContact details

Libor Krkoska, Head of OfficeTel: +387 33 667 945 Fax: +387 33 667 950

Email: krkoskal@ebrd.com