FINANCING GROWTH AND COHESION IN THE ENLARGED EU Brussels 24 November 2005 Gavin Anderson
EBRD EXPERIENCE OF PPPs IN NEW MEMBER STATES 1.Examples of EBRD financing Tallinn Water Hungarian Motorways 2.Illustrative pipeline 3.Key issues for accelerating PPP development
TALLINN WATER: EBRD FINANCING 1994 Sovereign-guaranteed loan 2000 Pre-privatisation financing 2001 Privatisation (50.4%) 2002 Loan to private company 2003 EBRD Equity following change in shareholding group 2004 Successful IPO Outcome Improved services for citizens of Tallinn Increased value of company
HUNGARIAN MOTORWAY EXPERIENCE M1/M15 financing –issues of toll/traffic levels and legal challenges –many lessons learned M5 financing -Sound financing structure, but tolling inhibits full utilisation -Refinanced in 2004 on basis of availability payments; subsequent financing of final stretch /5 M6 financing -Experience of restructuring M5 enabled fast and effective tender process -Construction nearing completion, so refinancing now under discussion.
ILLUSTRATIVE EBRD PPP PIPELINE Urban Transport Bus companies Commuter rail (?) Municipal Infrastructure Solid waste Waste water Schools Roads Toll roads for maintenance/upgrade Availability payment structures for new motorways Airports Significant growth in interest Rail Station renovation and property-related projects Freight privatisations
KEY ISSUES FOR ACCELERATING PPP DEVELOPMENT Project selection Process People How to encourage cofinancing with EU funds?