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Tirana, Albania.

Paul Waide warns on the future of energy supply.

An opportunity for networking during the CEI summit.

CEI economic forum lands in Albania

The ninth economic forum of the Central European Initiative (CEI) was organised this November in Albania. Over 1,000 people from 36 countries landed at the airport in Tirana to participate in the CEI Summit.

“It’s a country of great landscapes and friendly people,” said one conference participant. As CEI business leaders and officials gather to discuss the challenges of reforms and investments needed to spur business development in south east and central Europe, they also discovered another Albanian reality, one with poor infrastructure and power cuts that last from four to eight hours a day.

“The CEI Summit economic forum, the roundtable of the ministers of economy and prime ministers are important networking events that draw together politicians, investors and citizens. This summit represents an opportunity for participating countries to attract investments and share knowledge,” explains Guido Paolucci, Head of EBRD’s CEI Trust Fund Secretariat.

Twenty sessions and 126 project presentations brought attention to energy efficiency, infrastructure, finance, investments, regional integration and trade promotion in the 18 countries* of the Central European Initiative.

Sustainable energy and blackouts

Sustainable energy is the news in central Europe while in south east Europe people talk about blackouts. The bottom line is the same: energy efficiency is the answer to the increasing worries over energy supply.

“Without the energy savings achieved in the 25 years since 1973, energy demand in 1998 would have been 50 per cent higher in the US, Japan and western Europe,” explains Paul Waide, a Senior Policy Analyst with the International Energy Agency, during the CEI economic forum.

If current trends continue, energy supply in the future will be “insecure, dirty and costly”, according to Mr Waide. “By 2030, global demand for energy will be 50 per cent higher than today unless greater energy efficiency measures are undertaken by governments.”

The Bank’s Sustainable Energy Initiative addresses this concern. “The Bank will invest €1.5 billion in projects which reduce carbon emissions in the next three years, with the bulk of this going to energy efficiency,” explains Jacquelin Ligot, Director of EBRD’s Energy Efficiency and Climate Change Team.

“Developing energy infrastructure is a priority in south east Europe,” explains Milko Kovachev, a former Minister of Energy in Bulgaria and now adviser of the BNP Paribas Group. “This should happen in parallel with energy efficiency measures if Bulgaria is to cut down its dependency on energy imports. We could do more with less.”

In Bulgaria, 54 per cent of the energy supply is imported; the EU level is 50. Neglecting energy efficiency measures will make Europe 70 per cent dependent on imports by 2030.

Small business – from imports to production

Remittances have helped businesses in the region to make a start. They serve those businesses that import and trade. Serious economic growth can be achieved when small businesses move from trading to production. But they need capital to do that.

Since its creation, the Bank’s small business lending programmes have provided more than €8 billion to support micro, small and medium-sized businesses in the region.

“Providing entrepreneurs and firms in the CEI region with access to finance is at the heart of several EBRD donor-backed initiatives,” explains Raffaele Boldracchi, Principal Manager of EBRD’s Official Co-financing Unit.

The EU/EBRD SME Facility, the EU/EBRD Preparatory Action Plan, the EBRD Western Balkans SME Finance Facility and the US/EBRD SME Financing Facility were created to address the needs of small businesses in the CEI region. The newly-launched Western Balkans Fund will also contribute to increasing access to credit for small business.

14 years of CEI Trust Fund

While the EBRD is celebrating its 15th anniversary this year, the CEI Trust Fund has its own achievements to celebrate. It was established in 1992 following an agreement between the Italian government and the Bank to assist countries in central and south east Europe in their economic and social transition.

The Fund, to which Italy has contributed €28 million, finances technical assistance, training and advisory services as well as the identification and preparation of projects financed or co-financed by the Bank.

“The Western Balkans are a priority of the Italian government,” says Enzo Quattrociocche, Italy’s EBRD Director. ”The CEI Trust Fund is one of the many initiatives through which the Italian government is helping to improve the lives of the people in the region.”

The CEI Trust Fund secretariat, based at London HQ, helped to prepare 73 technical co-operation projects and 112 Know-How Exchange Programme assignments totalling over €18 million. These projects have improved water and waste water services in Bulgaria, provided privatisation advice to Albania’s biggest insurance company and modernised aviation in FYR Macedonia, among other work.

“Central and south east European countries have found a partner in the EBRD, “says Gary Bond, Director of EBRD’s Official Co-financing Unit. “Some of these countries recently became EBRD donors while other countries in south east Europe still need the Bank and its donors to develop the skills and investment needed in the year ahead.”

* Albania, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Italy, FYR Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovak Republic, Slovenia and Ukraine

By Marjola Xhunga, EBRD Communications Adviser
Photos: EBRD
Contact: Technical Cooperation Team

23 November 2006