1 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 EUROPEAN COMMISSION SUPPORT FOR THE ENERGY COMMUNITY Simon Uzunov Energy Community Secretariat Workshop on Integration and Cross Border Trade of Renewable Energy Resources in Regional Transmission Networks Istanbul, 8 – 9 March 2011

2 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 CONTENTS EC and the ENERGY COMMUNITY - a bridge between EU and the SEE Region WBIF management - innovative financing mechanism (bottom-up) WBIF implementation - full ownership by the beneficiaries

3 ECS – European Commission support for the Energy CommunityIstanbul, March 2011  9 Contracting Parties  Albania  Bosnia and Herzegovina  Croatia  The former Yugoslav Republic of Macedonia  Montenegro  Serbia  UNMIK  Moldova (May 2010)  Ukraine (February 2011)  14 Participants  Austria  Bulgaria  Cyprus  Czech Republic  France  Germany  Helenic Republic  Hungary  Italy  The Netherlands  Romania  Slovakia  Slovenia  United Kingdom  3 Observers  Georgia  Norway  Turkey PARTIES to the TREATY (March 2011) ENERGY COMMUNITY structure 7 in Western Balkans

4 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF management WBIF – Western Balkans Investment Framework WBIF was established with the aim to enhance harmonization and cooperation in investment for the Western Balkan’s socio-economic development  Basics Innovative financing mechanism launched in December 2009 as a regional tool,  designed to pool and blend grants, loans and expertise from:  the Western Balkan countries (Albania, Croatia, Bosnia and Herzegovina, former Yugoslav Republic of Macedonia, Montenegro, Serbia and UNMIK 1 ),  the EC (DG ELARG) in the framework of the EU pre-accession instruments (IPA),  IFI-s (EIB, EBRD, CEB 2 )  EU bilateral donors through the European Western Balkan Joint Fund (EWBJF);  aimed to prepare financing of a common pipeline of priority investment projects for the region in  Transport, Social Infrastructure, Private sector, Environment and Energy 1 Kosovo under UNSCR Council of Europe Development Bank

5 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF management WBIF – Western Balkans Investment Framework The National IPA Coordinator’s (NIPAC) and at least one IFI support is required for eligibility of a project to access the pipeline  Governance  The Steering Committee (SC)  Takes all decisions related to JGF including project approvals,  Provides strategic guidance for WBIF  composed of representatives from EC, partner IFIs and EWBJF 1 ;  co-chared by EC (permanent) and EWBJF (rotational), meets every six months  The Project Financier’s Group (PFG)  Responsible for screening and assessing requests for financial support from JGF with objective of  establishing a pipeline of priority projects  composed of representatives from EC, partner IFIs, bilateral IFIs and donnors, meets quarterly  represents a single entry point for the projects 1 European Western Balkan Joint Fund

6 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Western Balkans Investment Framework  Resources Joint Grant Facility (JGF) EIB (10 mil) EC (130 mil) EBRD (10 mil) CEB (10 mil) EWBJF (20 mil) Joint Landing Facility (JLF) EIB EBRD CEB Western Balkans PRIORITY PROJECTS IFIs, NIPACs PROJECTSLOANS Other IFIs (WB), other bilaterals, national IPA, own funds Only in the first year of its existence (2010) WBIF directly disbursed 39 million EUR of grants for 39 projects which will receive loans of 2.6 billion EUR and mobilize investments of 5.2 Billion EUR.

7 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Joint Grant Facility 1 1 Source – Review of the WBIF prepared for the CS [December 2010] To date, (including the work done under the IPF in 2008 and 2009) WBIF approved 78 grant projects bringing the total grant contribution close to 136 million EUR which is expected to leverage as much as 3.2 billion EUR of loans and estimated investments of 6.8 Billion EUR.  JGF Consolidated structure

8 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Joint Grant Facility 1 1 Source – Review of the WBIF prepared for the CS [December 2010] To date, (including the work done under the IPF in 2008 and 2009) WBIF approved 78 grant projects bringing the total grant contribution close to 136 million EUR which is expected to leverage as much as 3.2 billion EUR of loans and estimated investments of 6.8 Billion EUR.  JGF Consolidated structure

9 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Joint Grant Facility 1 1 Source – Review of the WBIF prepared for the CS [December 2010] To date, (including the work done under the IPF in 2008 and 2009) WBIF approved 78 grant projects bringing the total grant contribution close to 136 million EUR which is expected to leverage as much as 3.2 billion EUR of loans and estimated investments of 6.8 Billion EUR.  JGF Consolidated structure

10 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Joint Grant Facility  Project management (bottom-up) PROJECT DATABASE (PFG) WBIF pipeline (SC) NIPACs Regional programming bodies EU delegations (IPA) National authorities (central, local) Local stakeholders Other IFIs (WB, bilateral) Other initiatives still need to be integrated such as national IPA and PPF, as well as regional RCC, SEETO, REC, RENA, PEIP, DABLAS – including the Energy Community (ECS) CEB EIB EBRD DG ELARG Bilateral PFG  Infrastructure Project Facility (IPF) – EC contribution „in kind“

11 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – Western Balkans Investment Framework A total of EUR grant assistance for the energy sector is proposed by the WBIF-SC in December 2010  WBIF 2010  Three grants approved in 2010 in ENERGY sector (SC)  WB4bis-SER-ENE-05 (Government of Serbia) - energy / district heating - TA with Program Preparation (KfW) Mil EUR - grant proposal [ EUR from EWBJF];  WB4bis-MKD-ENE-03 (PE „HS Zletovica“ - former Yugoslav Republic of Macedonia) - energy / hydro - Update of FS for irigation component / FS for hydro component / project economic analysis / EIA & SIA for hydro component (EIB / JBIC) Mil EUR - grant proposal [ EUR from EWBJF and from EIB];  WB4bis-REG-ENE-01 (OST - Albania and MEPSO - former Yugoslav Republic of Macedonia) - energy / transmission - FS and environmental and Social Impact Study - (EBRD / KfW) Mil EUR - grant proposal [ EUR EUR from EWBJF and EUR from EBRD]

12 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 SC 5 PFG 8 PFG 9 PFG 11 PFG 10 SC 4 WBIF implementation WBIF – monitoring framework 2011 The overall amount available in the Joint Grant Facility for 2011 is estimated at a maximum of 50 Million EUR (excluding the specific allocation for the private sector) 1 Source – EC Note on WBIF-JGF-PFG work plan 2011 [November 2010] Project proposals [10 February] ScreeningAssessment and decision Submission [23-24 June]  Timing 1  The deadline for submission of project proposals to the PFG is set at least 3 weeks (screening period) before the date of the PFG meeting.  JFG should be able to provide an approval for a project within maximum 6 months.  A possibility to re-examine project proposals to be amended following SC decision.

13 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 WBIF implementation WBIF – monitoring framework Following the CALL published on 8 December 2010 WBIF PFG received 41 project applications by the deadline of 10 February 2011 requesting a total of 100 Million EUR in grants. 1 Source – WBIF-PFG Update [February 2011]

14 ECS – European Commission support for the Energy CommunityIstanbul, March 2011 I appreciate your attention