Slovenia: Danube River Basin EBRD / GEF Environmental Credit Facility Mark Hughes Principal Environmental Adviser, EBRD

Project Framework environmental credit facility for reducing water pollution Channelled through local banks Aimed at industry, agriculture and smaller municipalities within the Slovenian portion of Danube River Basin

Danube River Basin

Key parties Global Environment Facility EBRD Local banks in Slovenia Sub-borrowers TMG – Slovenian BAS Programme Environmental Expert (E-Net d.o.o.) FAO and Agribusiness Team

Key Project Components EBRD Framework Facility Euro 45m Credit Lines to Local Banks Euro 37m GEF Grant (Investment and TA) USD 9.9m Grants to sub-borrowers USD 6m Compensation to local banks USD 3m Environmental Expert USD 305,000 TA to polluting entities – BAS USD 540,000 Marketing and Information Dissemination USD 63,000

Sub-projects Private or public sector Environmental eligibility  confirmed by Environmental Expert Credit assessment  undertaken by participating banks Loan amount per sub-project: no min, EUR 3 million max.

Project Processing EBRD TMG BAS Env Expert Borrower GEF Brief Consultancy Contract Credit Line Agreement TMG BAS Participating Banks Env Expert Loan Agreement Advisory Services Eligibility Check Confirm Completion Borrower Incentive payments Incentive payments Administrative fees GEF

Current Activities Four participating banks have signed up to the facility for a total amount of €37 million: Volksbank-Ljudska Banka - €10 million Bank Austria Creditanstalt - €12 million Nova Ljubljanska Banka - €10 million Probanka - €5 million 15 sub-project disbursements, e.g. small municipalities, general manufacturing, services Loans from €83,000 up to €3m max. (€4.5m in exceptional circumstances)

Current Activities Environmental Expert has appraised over 50 sub-projects BAS programme has completed 9 projects, 14 projects are in progress and 1 project is awaiting signature. Sectors – food and beverages, chemicals, paper, textiles, services and municipalities Areas of assistance – pre-investment studies, feasibility studies, technology selection