EBRD Support for Water Sector Projects Arthur Schankler Senior Banker Priority Environmental Investment Programme (PEIP) National Workshop Belgrade, 8 May 2008

The EBRD International financial institution established in 1991, promotes transition to market economies in 29 countries from central Europe to central Asia Owned by 61 countries and two inter-governmental institutions Serbia is shareholder Committed over € 26 billion to date Capital base of €20 billion

EBRD Targets in Enviromental Sector Water and wastewater sector Water and sewer network rehabilitation and expansion Wastewater treatment plants Solid waste management Environmentally compliant landfills and equipment Duboko Project in Cacak-Uzice region District heating Generating facilities and distribution networks Energy efficiency

Bank’s support for water sector Loans to five municipalities Belgrade – No guarantee Kragujevac – Sovereign guarantee Nis – Sovereign guarantee Novi Sad – Sovereign guarantee Subotica – Sovereign guarantee

EBRD’s support for financing water sector capital investments Long-term loans up to 15 years Grace period (no principal payments) during construction period Floating or fixed Euro interest rates based on credit risk of borrower Potential step-downs in interest rates based on borrower performance

EBRD Financing Structures in the Water Sector Loans to municipalities with on-lending to water companies Loans to water companies with Municipal Support Agreements from municipalities Support for cost-recovery tariff increases or payments to the companies if tariffs cannot be increased Co-financing for grant-funded projects, e.g. NIP, EU, bi-lateral donors

EBRD’s Additional Support for Water Sector Investments Technical Cooperation (grant funding): Project preparation, e.g. feasibility study Financial and operating performance improvement Project implementation Potential grant funding assistance for capital investments Western Balkans Fund (EBRD) Infrastructure Project Facility (EU)

EBRD Basic Requirements Minimum loan size generally of EUR 5 million Feasibility Study Environmental Audit Compliance with EBRD Procurement Rules Creditworthiness of borrower

EBRD in Serbia: Contact Mr. Arthur Schankler schankla@ebrd.com Ms. Danijela Vukmirovic vukmirod@ebrd.com Belgrade Resident Office Bulevar Dr Zorana Djindjica 64a Tel. +381 11 2120 530; +381 2120 710 Fax. +381 11 2120 534