1. Developing Euro-Asian Transport Linkages Christopher Ousey, Senior Banker, Infrastructure Business Group, EBRD Almaty 9 March 2004

2. 1. EBRD’s Priorities Establishing Articles require the Bank to promote: the transition towards open market-orientated economies private and entrepreneurial initiative improved investment climate good corporate governance environmentally sound and sustainable development

3. 1. EBRD’s Priorities EBRD is not a policy-driven lender EBRD must above all be convinced there is a good business case for a project in which it will invest

4. 1. EBRD’s Priorities EBRD’s projects are typically focussed on only one country EBRD may finance one link in a larger transport chain … but there must be a good business case for the project on a “stand-alone” basis.

5. 2. EBRD and the transport Sector So EBRD can contribute to building improved transport linkages by: providing finance for projects with a good business case helping to promote transition at a sector level.

6. 1. EBRD’s Priorities Transition impact, eg: 1 Greater competition in the project sector 2 More widespread private ownership 3 Institutions, laws and policies that promote market functioning and efficiency 4 Standards for corporate governance and business conduct

7. 2. EBRD and the transport Sector EBRD provides a range of financial products: DebtEquityGuaranteesTreasury

8. Sovereign senior debt for infrastructure & rehabilitation & pre privatisation costs 2. EBRD and the transport Sector Sovereign Private Sector Public Sector non- sovereign guaranteed senior debt for public sector entities with adequate revenue flows and balance sheets. New infrastructure, rehabilitation and pre- privatisation costs Senior debt to the Private Sector for transport-related commercial development. Debt finance for acquisition of businesses to be privatised. Subordinated debt Debt

9. 3. What does EBRD need to be able to fund a project? Transition Rationale Procurement in line with EBRD’s guidelines Environmental impact assessment Business plan Public Sector

10. 3. What does EBRD need to be able to fund a project? Sound Financial Projections & Business Plan Solid contractual framework Demonstrable transition impact Sound environmental basis Private Sector

11. EBRD Project Enquiries Tel: +44 20 7338 6282 Fax: +44 20 7338 6102 Web site: www.ebrd.com Main contacts Riccardo Puliti, Team Leader +44 20 7338 7379 pulitir@ebrd.com Christopher Ousey, Senior Banker +7 3172 580204 ouseyc@ebrd.com