1. Hotel Falkensteiner, Belgrade April 15, 2013
IFC – Renewable Energy in Serbia
Nebojša Arsenijević
Balkan Renewable Energy Program Manager
Hotel Falkensteiner, Belgrade
April 15, 2013

2. IFC – World Bank Group IBRD IDA MIGA IFC Role: Clients: Products:
International Bank for Reconstruction and Development
IDA
International Development
Association
MIGA
Multilateral Investment and Guarantee Agency
IFC
International Finance Corporation
Est. 1945
Est. 1960
Est. 1956
Est. 1988
Role:
To promote institutional, legal and regulatory reform
Governments of member countries with per capita income between $1,025 and $6,055.
- Technical assistance
- Loans
- Policy Advice
To promote institutional, legal and regulatory reform
Governments of poorest countries with per capita income of less than $1,025
- Technical assistance
- Interest Free Loans
- Policy Advice
To promote private sector development
Private companies in 181 member countries
- Equity/Quasi-Equity
- Long-term Loans
- Risk Management
- Advisory Services
To reduce political investment risk
Foreign investors in member countries
- Political Risk Insurance
Clients:
Products:
Shared Mission: To Promote Economic Development and Reduce Poverty

3. IFC – Internal Structure
Advisory Services (AS)
Investment Services (IS)
Access to Finance
(A2F)
Finance Market
(FM)
Investment Climate
(IC)
Infrastructure and Natural Resources (C3P)
Sustainable Business Advisory (SBA)
Manufacturing, Agribus. and Services (MAS)
Public – Private Partnership (PPP)

4. Western Balkans Region and BREP
Program funded by:
Austrian Ministry
of Finance (BMF)
End Date: June, 2016

5. BREP Objectives Objective 1: RE Regulatory Framework Improvements
Identification of legal (regulatory/contractual) obstacles
Drafting of improved legal framework
Raising awareness related to the new legal framework
Support during the adoption process
Objective 2: Support to RE Sponsors / Developers
Information/Knowledge sharing
Project development support
Connection with international sponsors
Objective 3: Support to Financial Institutions (Banks)
Information/Knowledge sharing
Dedicated Capacity Building - Trainings
Impact Assessment Studies

6. O1: Regulatory Framework - Approach
PRE-IMPLEMENTATION ACTIVITIES
Scoping Mission
with stakeholders
Coop. Agreement
Ministry – IFC
Consultant Select.
Process
Signed Contract
with Consultants
IMPLEMENTATION ACTIVITIES
Phase 1
Inception
Phase 2
Drafting
Phase 3
Official Meeting
Phase 4
Workshop
POST-IMPLEMENTATION ACTIVITIES (AS AND WHEN NEEDED)
Supporting Ministry in Parliament
New / Amended Laws
Supporting Ministry /Government
Decrees
Supporting Agencies
Other secondary regulation

7. O1: RE Regulatory Framework - Activities

8. O1: RE Regulatory Framework - Example
Power Policy and Off-take related set of legal documents:
Renewable Energy Law and bylaws (Decrees)
Standardized Power Purchase Agreement
Standardized Grid Connection Agreement
Concession related set of legal documents:
Concession Law
Standardized Concession Contract
Selection Criteria for RE Concessions
Main targets:
To increase transparency and cash flow predictability
Mitigate Risk (standardized contracts, step-in rights)
Alignment with EU directives

9. O2: Support to RE Sponsors - Approach
Market
Level
Interventions
Educational Workshops
Educational Materials (brochures, roadmaps, etc.)
Support to Local Associations
Investment Promotion Activities
Local – International Match Making
Company
Level
Interventions
Support in Improving Project Documents
Relationship with local community
Support with E & S standards (Equator Principles)
Support in finance modeling
Improvement of Outreach Strategy

10. O2: Support to RE Sponsors - Activities From B2B to Implementation

11. O2: Support to RE Sponsors - Example
Example 1: Austrian Company
Joint Venture with Albanian concession owner
Program of Activities (PoA) for SHPP in Albania and Serbia
Private Benefit: improved cash-flow (CERs selling)
Public benefit: education, link with PoA
Example 2: Bosnian Company
Support with SHPP cascade design improvement
Official review of idea design
Private Benefit: optimized SHPP design
Public benefit: education, brochure with common design mistakes
Main Targets
To support private companies with good projects and without IDD issue
To secure certain level of public benefits (education, brochure, etc.)

12. O3: Support to local FIs – Approach
General Material Development
Technical Manual:
SHPP Engineering Manual
SHPP Legal Manual
SHPP Budgeting Manual
SHPP Risk Management Manual
Finance Manual:
SHPP Finance products development and marketing
Bank organization structure
SHPP Cash Flow Tool
SHPP Project Assessment/Evaluation Toolkit
Country Level Workshop
Material Adjust. Country Needs
In-depth Capacity Building Training
Joint Assess of first 3 SHPPs
Impact Assess Study

13. O3: Support to local FIs – Activities

14. O3: Support to local FIs - Example
Example 1: In-depth training with local bank in Albania
3- day training on SHPPs and project finance
Engineering, E&S, Budgeting, Legal, Financial
Private Benefit: new product, increased internal capacity
Public benefit: education, more SHPP project successfully financed
Example 2: Country level workshop for Serbian banks
Presentation of IFC AS product (training)
Presentation of IFC IS products (loan, equity, quasi equity, risk share)
Private Benefit: idea for new product
Public benefit: education
Main Targets
To increase internal capacity of local banks
To slowly change RE market from corporate to project finance.

15. BREP Team Bajame Sefa Finance Specialist Tirana Office (ALB)
Dzenan Malovic
Technical Specialist
Sarajevo Office (BIH)
Dimitar Dimitrovski
Policy/Legal Specialist
Skopje Office (MAC)
Nebojsa Arsenijevic
Program Manager
Belgrade Office
Denis Mesihovic
Finance Specialist
Sarajevo Office (MNE)
Shpresa Kastrati
Technical Specialist
Prishtina Office (KOS)
Bojana Ristic
Outreach Specialist
Belgrade Office (SRB)