IFC – Renewable Energy in Serbia
Nebojša Arsenijević
Balkan Renewable Energy Program Manager
Hotel Falkensteiner, Belgrade
April 15, 2013
1
IFC – World Bank Group
IBRD
IDA
International Bank
for Reconstruction
and Development
International
Development
Association
Est. 1945
Role:
Clients:
Products:
IFC
Est. 1960
MIGA
International Finance
Corporation
Multilateral
Investment and
Guarantee Agency
Est. 1956
Est. 1988
To promote institutional,
legal and regulatory
reform
To promote institutional,
legal and regulatory
reform
To promote private
sector development
To reduce political
investment risk
Governments of member
countries with per capita
income between $1,025
and $6,055.
Governments of poorest
countries with per capita
income of less than
$1,025
Private companies in
181 member countries
Foreign investors in
member countries
- Equity/Quasi-Equity
- Long-term Loans
- Risk Management
- Advisory Services
- Political Risk Insurance
- Technical assistance
- Loans
- Policy Advice
- Technical assistance
- Interest Free Loans
- Policy Advice
Shared Mission: To Promote Economic Development and Reduce Poverty
2
IFC – Internal Structure
Advisory Services (AS)
Investment Services (IS)
Access to Finance
(A2F)
Finance Market
(FM)
Investment Climate
(IC)
Infrastructure and Natural
Resources (C3P)
Sustainable Business
Advisory (SBA)
Manufacturing, Agribus.
and Services (MAS)
Public – Private
Partnership (PPP)
3
Western Balkans Region and BREP
Program funded by:
Austrian Ministry
of Finance (BMF)
End Date: June, 2016
4
BREP Objectives
Objective 1: RE Regulatory Framework Improvements
• Identification of legal (regulatory/contractual) obstacles
• Drafting of improved legal framework
• Raising awareness related to the new legal framework
• Support during the adoption process
Objective 2: Support to RE Sponsors / Developers
• Information/Knowledge sharing
• Project development support
• Connection with international sponsors
Objective 3: Support to Financial Institutions (Banks)
• Information/Knowledge sharing
• Dedicated Capacity Building - Trainings
• Impact Assessment Studies
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O1: Regulatory Framework - Approach
PRE-IMPLEMENTATION ACTIVITIES
Scoping Mission
with stakeholders
Coop. Agreement
Ministry – IFC
Consultant Select.
Process
Signed Contract
with Consultants
Phase 2
Drafting
Phase 3
Official Meeting
Phase 4
Workshop
IMPLEMENTATION ACTIVITIES
Phase 1
Inception
POST-IMPLEMENTATION ACTIVITIES (AS AND WHEN NEEDED)
Supporting Ministry /Government
Decrees
Supporting Ministry in Parliament
New / Amended Laws
Supporting Agencies
Other secondary regulation
6
O1: RE Regulatory Framework - Activities
7
O1: RE Regulatory Framework - Example
Power Policy and Off-take related set of legal documents:
• Renewable Energy Law and bylaws (Decrees)
• Standardized Power Purchase Agreement
• Standardized Grid Connection Agreement
Concession related set of legal documents:
• Concession Law
• Standardized Concession Contract
• Selection Criteria for RE Concessions
Main targets:
• To increase transparency and cash flow predictability
• Mitigate Risk (standardized contracts, step-in rights)
• Alignment with EU directives
8
O2: Support to RE Sponsors - Approach
Market
Level
Interventions
Educational Workshops
Educational Materials (brochures, roadmaps, etc.)
Support to Local Associations
Investment Promotion Activities
Local – International Match Making
Company
Level
Interventions
Support in Improving Project Documents
Relationship with local community
Support with E & S standards (Equator Principles)
Support in finance modeling
Improvement of Outreach Strategy
9
O2: Support to RE Sponsors - Activities
From B2B to
Implementation
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O2: Support to RE Sponsors - Example
Example 1: Austrian Company
• Joint Venture with Albanian concession owner
• Program of Activities (PoA) for SHPP in Albania and Serbia
• Private Benefit: improved cash-flow (CERs selling)
• Public benefit: education, link with PoA
Example 2: Bosnian Company
• Support with SHPP cascade design improvement
• Official review of idea design
• Private Benefit: optimized SHPP design
• Public benefit: education, brochure with common design mistakes
Main Targets
• To support private companies with good projects and without IDD issue
• To secure certain level of public benefits (education, brochure, etc.)
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O3: Support to local FIs – Approach
Technical Manual:
General Material
Development
Country Level
Workshop
• SHPP Engineering Manual
Material Adjust.
Country Needs
In-depth Capacity
Building Training
Joint Assess of
first 3 SHPPs
• SHPP Legal Manual
• SHPP Budgeting Manual
• SHPP Risk Management Manual
Finance Manual:
Impact Assess
Study
• SHPP Finance products
development and marketing
• Bank organization structure
SHPP Cash Flow Tool
SHPP Project
Assessment/Evaluation Toolkit
12
O3: Support to local FIs – Activities
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O3: Support to local FIs - Example
Example 1: In-depth training with local bank in Albania
• 3- day training on SHPPs and project finance
• Engineering, E&S, Budgeting, Legal, Financial
• Private Benefit: new product, increased internal capacity
• Public benefit: education, more SHPP project successfully financed
Example 2: Country level workshop for Serbian banks
• Presentation of IFC AS product (training)
• Presentation of IFC IS products (loan, equity, quasi equity, risk share)
• Private Benefit: idea for new product
• Public benefit: education
Main Targets
• To increase internal capacity of local banks
• To slowly change RE market from corporate to project finance.
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BREP Team
Nebojsa Arsenijevic
Program Manager
Belgrade Office
NArsenijevic@ifc.org
Dzenan Malovic
Dimitar Dimitrovski
Technical Specialist Policy/Legal Specialist
Sarajevo Office (BIH) Skopje Office (MAC)
DMalovic@ifc.org
DDimitrovski@ifc.org
Bajame Sefa
Finance Specialist
Tirana Office (ALB)
BSefa@ifc.org
Shpresa Kastrati
Technical Specialist
Prishtina Office (KOS)
SKastrati@ifc.org
Denis Mesihovic
Finance Specialist
Sarajevo Office (MNE)
DMesihovic@ifc.org
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Bojana Ristic
Outreach Specialist
Belgrade Office (SRB)
BRistic@ifc.org