1. Slovenia: Danube River Basin EBRD / GEF Environmental Credit Facility Mark Hughes Principal Environmental Adviser, EBRD

2. Project Framework environmental credit facility for reducing water pollution Aimed at industry, agriculture and smaller municipalities within the Slovenian portion of Danube River Basin EBRD up to EUR 45 million credit lines GEF USD 9.9 million grant

3. Key Project Components EBRD Framework FacilityEuro 45m Credit lines to local banks GEF Grant (Inv and TA)USD 9.9m Grants to sub-borrowers Compensation to local banks Environmental Expert Technical Assistance provided by TMG BAS Marketing and info dissemination

4. Key parties Global Environment Facility (GEF) Local banks in Slovenia Sub-borrowers EBRD TMG – Slovenian BAS Programme FAO and Agribusiness Team Environmental Expert

5. Sub-projects Private or public sector Environmental eligibility  confirmed by Environmental Expert Credit assessment  undertaken by participating banks Loan amount per sub-project: no min, EUR 3 million max.

6. GEF grant money Grants to sub-borrowersUSD 6 million Compensation to local banksUSD 3 million Environmental ExpertUSD 305,000 Technical Assistance to polluting entities BAS Programme USD 540,000 Marketing and Info DisseminationUSD 63,000 Leverage: GEF Grant – EBRD 1 : 5

7. Environmental Expert Independent environmental consultant Responsible for: –Drafting of standard formats –Checking projects against environmental eligibility criteria –Confirming project completion –Monitoring of project performance –Production of reports

8. Donor financed programme to provide consulting advice to SMEs Typical focus on aspects such as management, marketing and quality systems For this facility BAS provides advice on developing water pollution solutions and structuring investment proposals Turnaround Management Group Slovenian BAS Programme

9. Notable Features Pilot project - replication potential Environmental focus and demonstration model Additionality of EBRD: –Access to private sector (banks and companies) –Leverage 1:5 –Ability to mobilise additional financial resources for environmental projects –TMG/BAS programme First private sector project in GEF’s focal area of international waters

10. Project Processing Participating Banks Borrower Env ExpertTMG BAS EBRD GEF Consultancy Contract Credit Line Agreement Project Brief Eligibility Check Confirm Completion Loan Agreement Advisory Services Incentive payments Administrative fees Incentive payments

11. Current Activities Four participating banks have signed up to the facility for a total amount of €37 million: –Volksbank-Ljudska Banka - €10 million –Bank Austria Creditanstalt - €12 million –Nova Ljubljanska Banka - €10 million –Probanka - €5 million 15 sub-project disbursements, e.g. small municipalities, general manufacturing, services Loans from €83,000 up to €3m max.

12. Current Activities Environmental Expert has appraised 33 sub- projects BAS programme has complete 5 projects, 8 projects are in progress and 4 are awaiting signature. –Sectors – food and beverages, chemicals, paper, textiles, services and municipalities –Areas of assistance – pre-investment studies, feasibility studies, technology selection