2. Questions?
Please interrupt at any time – we are here for you now,
and you will be there for us later!
2
3. What is MEI?
Municipal lending means we strive to work
directly with the Municipalities and Municipal
Utilities
Municipal and Environmental Infrastructure:
• Water and Wastewater
• District Heating
• Solid Waste Management
• Renewable Energy
• Urban Transport
3
4. Active portfolio: 190 projects / EUR 3 billion
Transit and
Water and
Ground
Sewage 39%
Passenger
31%
Steam and
Air
Conditioning Municipal Russia
Regional
Supply 12% Renewable Services Turkey
13% 22%
8%
Heat 0% 17%
CA
7%
Romania
13%
Other CE
1%
Poland
7%
Other SEEC
17% Serbia & Baltics
Croatia Montenegro 1%
3% 8%
Data: end Feb 2012 4
5. Water supply and wastewater treatment
Investment challenges
Meeting national and EU water and
effluent standards
Need to increase investments in
maintenance and asset renewal
Improve water supply and quality
standards
Improve collection and treatment of
sewage
Improve operational and financial
performance of municipal water and
sewerage companies
5
6. Key themes in structuring water and wastewater
projects
• Ensuring right incentives to use water more efficiently
– Tariff methodology to cover costs
– Metering to enable water companies to monitor
consumption – behavioural change in consumption!
– Improving collections
• Improving efficiency and service levels
– Financial and Operating Performance Improvement
Programmes
– Introduction of monitoring and targeting programmes
– Benchmarking
6
7. Technical Cooperation
• Technical Cooperation remains key to project success
• Mitigates risk and supports transition impact
(Significant risk of delays in project implementation
resulting from procurement complexities)
• Capacity building in operational and environmental,
social, health and safety management
7
8. Types of TC required
• Pre-signing (preparation)
– Financial Audit
– Feasibility Study
– Technical; Financial; Environmental and Social Due Diligence
• Post-signing (implementation)
– Creditworthiness Enhancement
– Financial and Operational Performance Improvement
– Project Implementation Support
– Corporate Development
8
9. Technical Cooperation
Financial and Operational Performance Improvement
Programme (“FOPIP”)
Improve the Company’s operational and financial
management in order to strengthen the capacity to service
debt while providing high quality water and sewerage
services
• establishment of indicators for measurable improvements of operational
efficiency and levels of service
• increased revenue collection rates
• improved transparency and accountability to consumer
• facilitation of outsourcing for improved financial viability and customer service
9
10. Technical Cooperation
Creditworthiness Enhancement Programme (“CEP”)
• TC support to assist the Client to improve its
financial management and administration
• Focus on key areas: revenue management,
capital investment, asset management,
municipal services, management information
systems
• Support for improved regulatory oversight and
predictable tariff regimes
10
11. Technical Cooperation
Project Implementation Support
To facilitate the timely and effective project
implementation including, inter alia, design, preparation of
technical specifications and tender documents (including
environmental, health and safety requirements), tender
evaluation, contracting, contract management and
engineering supervision
a) Review and finalise the Priority Investment Programmes, prepare
implementation packages and update cost estimates
b) Design and prepare drawings and technical specifications for all
components in the investment programmes to the extent required for
local permits and suitability for international tendering
c) Prepare tender documents
d) Assist in procurement and contracting
e) Provide contract and engineering supervision
f) Provide training to PIU staff in all aspects of project implementation
11
12. The Project Cycle and role of TCs
EBRD/Client contact - Project idea
Project Concept approval by the Bank
Project Preparation
Feasibility Study/Due Diligence, IFRS etc.
Bank Internal and Board Approval
Loan Signing
Implementation Support
Corporate Development
Credit Worthiness Enhancement
12
13. Example – Pskov Water Improvement (Russia)
EBRD loan of approximately EUR 13 million co-financed by
an investment grant from the Northern Dimension
Environmental Partnership of EUR 6 million to rehabilitate the
wastewater treatment and water supply systems. The project
is currently under implementation and proceeding well.
13
14. Example – Pskov Water Improvement
Associated Technical Cooperation
Pre-signing:
• Feasibility Study (EUR 180,000). The duration of this assignment,
which was financed by Finland, was approximately 10 weeks,
and the Consultant produced a FGeasibility Study outlining a
bankable investment for the EBRD.
Post-signing:
• Project Implementation Support and Training (EUR 900,000). The
duration of this assignment is 30 months, more or less
equivalent to the overall project implementation time.
• Corporate Development Programme (EUR 330,000). The duration
of this assignment is 6 month.
Both post-signing TCs are financed by the EBRD Shareholder
Special Funds, with no eligibility restrictions.
14
22. EOI
Important parts of the PN:
Consultant’s profile (team setup)!
22
23. Contract Negotiations
I or one of my colleagues will send the winner an email to start
the contract negotiations (if Bank handles negotiations).
23
27. Contacts - Municipal and Environmental
Infrastructure
Erik Holmqvist
TC Co-ordinator
+44 20 7338 7618
+44 7702 957 0666
HolmqviE@ebrd.com
http://www.ebrd.com/
One Exchange Square
London EC2A 2JN
United Kingdom
27