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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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)

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

9. EBRD in Serbia: Contact
Mr. Arthur Schankler
Ms. Danijela Vukmirovic
Belgrade Resident Office
Bulevar Dr Zorana Djindjica 64a
Tel ;
Fax