Financial Co-operation of the Federal Republic of Germany with Serbia

Transcription

1 Financial Co-operation of the Federal Republic of Germany with Serbia Financing Instruments and Projects Belgrade, September 22, 2016 Bank aus Verantwortung

2 Outline 1 KfW Banking Group 2 KfW Development Bank 3 Financial Co-operation (FC) with Serbia 4 Priority Areas of FC in Serbia 5 FC Program Overview and Project Examples

3 KfW Development Bank: Part of KfW Group Domestic promotion International financing We promote Germany We support internationalisation We promote development SMEs Private clients Municipalities Export & project finance Developing & emerging countries Support for the environment and climate protection Financing volume (FV): 51,3 billion (2015, EUR) FV: 20,2 billion FV: 6,7 billion and 1,1 billion

4 KfW Development Bank: Our Role Political landscape: BMZ, BMF, BMU, AA Implementation GIZ Financial Cooperation Corporate Finance Technical cooperation Investment capital and accompanying measures Investment capital Capacility building Know-how transfer 4

5 KfW Development Bank: Promotional Instruments KfW-funds offer efficient leverage of German Development Cooperation Ownership promotionalloans developmentloans Instruments corresponding to the degree of development and readiness of the partner loan for IDA and standard conditions grants Combination of instruments possible 5

6 KfW Development Bank: Offices Worldwide (incl. DEG) Moscow Mexico City Tegucigalpa Guatemala City San Salvador Managua Bogotá Quito Kiev Belgrade Sarajevo Priština Tiflis Ulan Bator Tashkent Podgorica Istanbul Baku Bishkek Beijing Tirana Dushanbe Yerevan Tunis Skopje Ankara Rabat Ramallah and al-bireh Damascus Kabul Amman Islamabad Kathmandu Cairo Abu Dhabi New Delhi Dhaka Hanoi Mumbai Vientiane Dakar Bamako Niamey Sana a Bangkok Ouagadougou Accra Cotonou Juba Addis Ababa Phnom Penh Yaounde Kampala Kigali Nairobi Kinshasa Dar es Saalam Jakarta Manila Lima La Paz Brasilia São Paulo Windhoek Lusaka Pretoria Lilongwe Maputo Johannesburg

7 KfW Development Bank: Offices - South East Europe/Turkey 7

8 Serbia is the most important financial cooperation partner in the region Regional FC-Volume in Implementation FC-Impact MEUR 0 On behalf of the German Government FC in Serbia since Projects Serbia BiH Albania MNE Kosovo MK + Facilitating the Berlin-Process (Vienna, Paris) initiated by Chancellor Angela Merkel (connectivity agenda) + Compact for Growth and Employment (est. 600,000 beneficiaries via credit lines) + Municipal Programs (est. 3 Mio. beneficiaries in more than 30 cities via infrastructure investments) + Facilitating EU-Integration (Acquis chapters 15, 27) + Migration preparedness (est. 20,000 beneficiaries by alleviating pressure on municipal infrastructure) Beneficial financings for the economy in a sound investment framework (grant funding secured to prepare and accompany Projects) 8

9 Financial Co-operation with Serbia KfW and other IFIs (loans) WB EIB EBRD KfW KfW and IFI Commitments in Serbia (mil. EUR) 13% 20% WB EIB EBRD KfW Total % 35% 9

10 Financial Co-operation with Serbia KfW and other Donors (grants) Source: Serbian European Integration Office 10

11 Understanding Serbia s challenges and ensuring sustainable financing Quality of KfW Financings Focal Areas of KfW Financings 2,000 MEUR MEUR 750 Grant 10% Grant 20% Grant 50% 1,500 1, Undisbursed (~20%) Disbursed (~80%) KfW Commitments International (~60%) Local (~40%) Suppliers Loans (~80%) Grants (~20%) Financing Type Corporate SME / Rural Municipal Infrastructure Energy Efficiency for SMEs Municipal Efficiency Energy Production Water / Sewage Growth & Employment Energy Urban Infrastructure We understand the challenges Serbia is facing (EU Integration, growth & employment, fiscal strengthening, ) We ensure sustainable financing (evaluation of the economic feasibility leads to successful projects) We offer attractive financing conditions (long maturity, competitive interest rates with fixed and variable agreements, ) 11

12 Priority Area: Financial System Development Challenges Enabling the financial sector to promote economic growth and employment Lack of market depth and product diversity Specific approaches Establishment of Serbian-German Initiative for Growth and Employment to promote sustainable economic development using German Development Cooperation instruments Establishment of products relevant for development through refinancing loans for: Municipal Development, Corporate finance for micro, small and medium-sized enterprises (MSMEs), Energy efficiency, renewable energies, Agricultural finance / rural development. Promotion of regional funding facilities (EFSE Fund, Green-for-Growth Fund) 12

13 Priority Area: Energy Efficiency and Renewable Energies Challenges Serbia s EU Acquis approximation process for Chapter 15 / Energy Large renewable energies potential High energy intensity (result: negative environmental / climate impacts) Strong need for modernization / expansion of outdated public infrastructure (production, transmission, district heating, building components) Promotion of regional energy corridors Sector restructuring (unbundling) and market-oriented tariffs Specific approaches Renewable energies: tapping into existing potentials (hydro-power, wind, solar energy, biomass) Power transmission: expansion of inter-regional network Energy efficiency: district heating modernization and energy-efficient public buildings 13

14 Priority Area: Water, Wastewater and Solid Waste Management Challenges Serbia s EU Acquis approximation process for Chapter 27 / Environment & Climate Change: Major capital investments needed Often outdated / deteriorated urban infrastructure Natural Resources Protection / Monitoring essential Hardly any environmentally-sound sewage / solid waste disposal available Know-how transfer to public utilities and cost covering tariffs needed Specific approaches Provision of water supply and sanitation, sewage treatment infrastructure Solid waste management systems introduction (sanitary landfills, resources reuse) Holistic sector approaches (e.g. resource protection, policy dialogue, governance) 14

15 Project Examples Agri-Insurance Loan EFSE Microfinance Fund Energy Efficiency in Public Buildings Investment: MEUR 8.8 loan, MEUR 0.5 grant Micro/seasonal loans & risk insurance for farmers Partners: Banca Intensa, Generali Insurance Impact: More than 1,000 final beneficiaries Investment: BEUR 1.1 loan, MEUR 1.0 grant via KfW/other donors 21% of total funds SME loans in industry and agriculture Partners: Micro-/SMEs via 9 partner banks Impact: 101,000 sub-loans to 67,000 clients Investment: MEUR 15 loan, MEUR 4.2 grant Insulation, windows, doors, heating systems (92 % local) Partners: Ministry of Education Impact: 36 modernized schools 15,000 pupils & 2,000 teachers 15

16 Project Examples Coal Quality Management in Kolubara Biodiversity Protection of Lake Palić and Lake Ludaš Water Management Smederevo Investment: MEUR 74 loan, MEUR 13 grant Spreader, Coal Quality Management System (28 % local) Partners: MoE, EPS Impact: Generation efficiency, cost savings: EUR 25 Million p.a., emission reduction Investment: MEUR 6.5 grant Pipes, sewage treatment plant extension, introduction buffer zones and bicycle lanes (70% local expected) Partners: MoC, City Subotica Impact: Protection biodiversity & increased tourism Investment: MEUR 3.7 loan, MEUR 3.8 grant Wells/pipes, new water treatment plant, water meters (60 % local) Partners: MoC, City Smederevo Impact: Secure water supply for 65,000 residents 16

17 Contacts (Director KfW Office Belgrade) (Country Manager KfW Frankfurt)