1. Project Preparation Committee Project Financing Workshops
Olga Troitskaya
Promoting Russia Country Dialogue on Sectoral Policy in WSS regarding financing municipal water and environmental Infrastructure
Joint Minregion/Rosstroy – OECD Event
Moscow, June 2006

2. Content Purpose of Project Financing Workshop Tasks of PFW
Learning objectives of PFW and target group
Content of PFW
Two tools developed
PFW Agenda
PFW implementation in 2006
Overall objective of the presentation is to provide information on PFW, its purposes and tools for learning, learning objectives, target group, agenda, organisation and methods

3. Project Financing Workshops: purpose (I)
The Project Preparation Committee (PPC) has been involved in the identification and preparation of environmentally-related investment projects since 1993
PPC experience has shown that one of the main barriers to accessing project finance is the ability of municipalities to prepare project concepts that provide all the information required by financial institutions

4. Project Financing Workshops: purpose (II)
The PPC is implementing a programme of Project Financing Workshops (PFW) designed to:
reduce the time needed to initiate and prepare a project concept
facilitate and enhance communication between project proponents and financial institutions
Expectations of PPC: by the end of the workshop participants will be able to prepare a sound project financing concept ready for discussion with IFIs, donors and commercial banks in the format and structure acceptable to those financing institutions.

5. Objectives of the PFW
To introduce the project financing options available for municipal, environmentally oriented, financially viable stand alone investment projects and also…
… to provide an overview of the IFIs
To mention the barriers for establishing a constructive dialogue between municipal project proponents on one side and IFIs and donors on the other side and…
… to highlight two tools aimed at facilitating this dialogue
What to be done during the Workshop

6. PFW in EBRD Project Cycle
Identification
Concept Clearance/Preparation
Appraisal
Negotiations
Implementation
Evaluation
PF Workshop
While preparing the concept one should consider and remember all stages of the Project Cycle. Good project concept is a starting point for a sound and reasonable investment project. It basically guides the future process. If good it saves time and decreases risks
It is also important that project financing options should be dealt with at all stages of the project cycle, also at the initial stages

7. Training Objectives
Knowledge: to know specific information on IFIs& donors, financing options available and their applicability
Skills: to use tools developed to facilitate a constructive dialogue with an investor/donor, increased capacities to prepare sound and acceptable project concept
Attitude: to be better prepared to communicate with IFIs & donors to justify the project; overcome the barriers
What to reach through training session during 2 days regarding the participants’ capabilities

8. Participants and types of projects targeted
Participants: representatives of municipal or other sub-sovereign investment project proponents in EECCA and (non-accession) SEE
Projects: municipal, environmentally oriented, financially viable stand-alone investment projects for which co‑financing from IFIs, donors and/or commercial banks is sought
Typically, representatives of around six municipalities will be invited per country workshop, with a mix of staff from municipalities and public utilities

9. PFW participants (I)
Up to 12 participants representing 4-6 municipalities
Project proponents – at least 2 from each municipality, one – from municipal utilities, another – from local/regional administration
Preparation to workshop is needed (home- work)

10. PFW participants (II)
Project proponents – the authors of elaborated investment project ideas
Who received 3 weeks before workshop pre- workshop information and Task Pack
Who thoroughly read the Task Pack and filled in the Project Concept Data Sheet (in draft)
Self committed to work hard during 2 days

11. PFW – Two Tools
Project Concept Data Sheet
Action Plan

12. PFW – Project Concept Data Sheet (I)
Provides the proponent with a tool assisting in presenting a project concept in a way, which facilitates a constructive dialogue with IFIs and donors
It is comprehensive and includes all major aspects required for project identification by IFIs and donors

13. PFW – Project Concept Data Sheet (II)
PCDS consists of 6 sections
Key project information
Long-term planning
Socio-economic data
Current service data
Key financial data
Supplementary project information
Explanatory notes are attached
Participants are provided with explanatory notes on filling PCDS and the example for WS project as well

14. PFW – Action Plan (I)
Provides you with a tool assisting you in moving your project concept further during the next 6 months
Key question to answer: What to do in order to get full support from municipal, regional and national authorities?

15. PFW – Action Plan (II) Structure is very simple
Structure is simple. Three columns, two parts

16. PFW – Plenty of barriers
On both sides of the table to get into constructive dialogue
Types of barriers - in the eyes of IFIs and donors
Attitude (project ownership and organisation culture)
Knowledge of IFIs and donors
Financial issues
Risk management
Institutional and organisational issues
Types of barriers - in the eyes of applicants – speak out opinion
Workshop aims to help project proponents and IFIs overcome these barriers
Workshop discusses both views on barriers:
Participants are given with a chance to present their point of view
Facilitators (or representatives of IFIs) will present major barriers in the eyes of IFIs ad donors

17. PFW - Agenda 2 training days with coffee-breaks and lunches
Day 1 is devoted to presentation of project financing options, IFIs, discussion of ‘home- work’ (prepared draft Project Concept Data Sheet), presentation of case-study
Day 2 is devoted to discussion of main barriers in eyes of participants and IFIs, group work on Action Plan and two business plays

18. PFW – Training methods
Participatory approach with high level of participant involvement
Presentations, group work, business plays
Case study

19. PFW – Case-Study
Host institution and local IFIs representatives are welcome to suggest case study for each particular workshop
To demonstrate experience – better positive (best available experience in the region), if negative then – major reason for failure
Major reasons for success (best case study) to demonstrate:
Creditworthiness of the city
Political will and readiness for reforms
City financed feasibility study itself
Project has impacts on the whole reform process

20. PFW: implementation in 2006
Workshops are already planned for summer-autumn 2006
Georgia,
Armenia,
Moldova
Russia (Volgograd oblast)
Ukraine

21. PFW: coordination Workshop is implemented by 2 trainers-facilitators
Close working coordination with PPC Executive Secretary
IFIs (EBRD, WB and others) will be involved in workshop planning and implementation
Strong commitments from the country host organisation:
- draft list of participants
- venue for workshop and 4-6 PCs
- formal invitations for participants
- practical arrangements (logistics)
- technical support during training