http://www.ebrd.com/new/ Stories about EBRD projects, initiatives, activities, events and opinions en-gb Sat, 04 Jul 2009 22:50:55 +0100 The EBRD has just launched its latest rouble bond, worth RUB 3 billion and with a five-year maturity. EBRD Deputy Treasurer Isabelle Laurent explains how the bond issue fits in with the EBRD’s crisis response strategy. http://www.ebrd.com/new/stories/2009/090629a.htm http://www.ebrd.com/new/stories/2009/090629a.htm 29/06/2009 Russia Treasury Ukraine is one of the most energy-intensive countries in the world and is only one-third as energy efficient as the average European country. As such Ukraine has enormous potential for energy efficiency improvements in every sector of its economy: industrial production, power generation, households, transport and agriculture. Recent sharp increases in Russian gas prices (almost four-fold over the last three years) have led to substantial increases in energy tariffs, thus creating stronger incentives to address efficiency, particularly in the industrial sector. http://www.ebrd.com/new/stories/2009/090629.htm http://www.ebrd.com/new/stories/2009/090629.htm 29/06/2009 Ukraine Energy efficiency The Swedish International Development Cooperation Agency (Sida) has just pledged €18 million to support EBRD investments in environmental projects in municipalities through a newly-established three year co-financing facility. Anders Nordström, Sida’s Director General, talks about cooperating with the EBRD. The Swedish International Development Cooperation Agency (Sida) is a long-standing co-financier with the EBRD. How do you value the cooperation with the Bank? The EBRD is the most important development financing institution in the region and by joining forces with the Bank in sectors such as municipal and environmental infrastructure, Sida has been able to make interventions on a larger scale than would otherwise have been possible. In our cooperation, particularly during these last years, we have developed a well-functioning and smooth working relationship with the Bank. Sida has just established a large new trust fund with the EBRD. Can you tell us more about this contribution? This is a trust fund to be used for technical assistance and investment for EBRD loans in municipal and environmental and energy projects. The overall objective is to promote the sustainable use of natural resources and the protection of the environment in the Swedish priority countries in eastern Europe as part of their EU integration process. The Fund amounts to 100 MSEK (about €10 million) during 2009 and we have indicated 50 MSEK for both 2010 and 2011, which is subject to the government’s approval of funds to Sida. This is in fact the first facility under a new strategy with a special global allocation to Sida for environmental loans and guarantees, which the Swedish government decided upon in late April this year. Sida contributes in particular to EBRD projects in municipal and environmental infrastructure. Why this sector? Climate and environment form one of the three priority themes in the Swedish government’s general policy for development cooperation. The sustainable use of natural resources and protection of the environment, including the reformation of municipal infrastructure such as water and wastewater, district heating and solid waste networks, are important requirements for EU adjustment and integration. This integration is an overarching goal for Swedish development cooperation in eastern Europe. The experience from the Baltic states and Poland shows that the municipal and environmental infrastructure sector is the most resource consuming and costly to adapt to EU directives and regulations. Most of our present focus countries in eastern Europe are only in the early stages of a process which requires extensive support to introduce environmentally friendly and efficient technical systems along with institutional reforms. How well does working with the EBRD mirror Swedish interests in the region and how do you see cooperation with the EBRD evolving in the future? With regard to Swedish priorities in development cooperation – which is my field of operation – we certainly have much to gain from a close cooperation with the EBRD. We are on the same track with increased focus on the Eastern Partnership countries – Georgia, Moldova, Ukraine – as well as the candidate and potential candidate countries in Western Balkans. And with regard to areas of operations and cooperation, I would like to single out climate and environment as the most important area to which we mutually give increased priority. http://www.ebrd.com/new/stories/2009/090625a.htm http://www.ebrd.com/new/stories/2009/090625a.htm 25/06/2009 Technical Cooperation Interruptions to gas supplies in January 2009 that left millions of east Europeans freezing in sub-zero temperatures and prompted industrial stoppages have catapulted energy security projects high up the EBRD's investment agenda. http://www.ebrd.com/new/stories/2009/090625.htm http://www.ebrd.com/new/stories/2009/090625.htm 25/06/2009 Hungary Power and Energy Noreen Doyle, former EBRD First Vice President, compares the rouble crisis of ’98 with the current turmoil. http://www.ebrd.com/new/stories/2009/090623.htm http://www.ebrd.com/new/stories/2009/090623.htm 23/06/2009 A landmark deal with one of Russia’s leading private water operators has won international recognition at a prestigious water industry awards ceremony. The EBRD's Director for Municipal and Environmental Infrastructure (MEI) Jean-Patrick Marquet was congratulated by former US Vice President and Nobel Peace Prize winner Al Gore for the Rosvodokanal project at the Global Water Awards in Zurich in late April. http://www.ebrd.com/new/stories/2009/090611.htm http://www.ebrd.com/new/stories/2009/090611.htm 11/06/2009 Russia Municipal and environmental infrastructure Turkey became one of the EBRD's countries of operations in October 2008 and it represents the second largest economy in the Bank’s area of operations. In its first project in Turkey, the EBRD is supporting the development of the country's largest wind farm, which will be built by Rotor Elektrik, a member of Zorlu Energy Group. “We met a number of companies in Turkey last year to learn more about their projects,” explains Nandita Parshad, Director, Power and Energy team. “Zorlu Energy's proposal to build a wind farm was a good and quite advanced project, for which most environmental and technical work had already been completed,” she added. In common with many other business actors, the client’s financing of the project suddenly became uncertain with the onset of the financial crisis. “Two banks were supposed to provide loans, but they could not complete the financing on their own,” says Ms Parshad. International financial institutions (IFI) stepped in with the EBRD providing €45 million, the IFC €55 million and the EIB €30 million to help finance the project. The Turkish electricity market is the sixth largest in Europe and offers great opportunities for investors: it is one of the fastest growing markets globally with an annual increase in energy consumption of around 8 per cent since the 1980s. However, Turkey still has a very low overall consumption rate, which highlights the potential for growth in its power sector. Two for the price of one – boosting green energy and privatisation “Turkey relies heavily on gas imports from Russia and is currently locked in with high prices,” remarks Andi Aranitasi, Principal Banker in the EBRD's Power and Energy team. “One of the project’s aims is to encourage the use of renewable energy, but also to reduce the country’s dependence on energy imports,” he adds. "Supporting a wind farm project is a very reasonable choice, as it is the form of renewable energy that can be developed the quickest," explains Ms Parshad. In fact, wind power comprises less than 0.5 per cent of total electricity consumed in Turkey and the wind farm is the largest renewable energy enterprise undertaken so far on a project finance base. Successful completion is therefore likely to have a considerable demonstration effect for similar energy projects, especially as Turkey has committed to increase the share of renewable energy in its energy portfolio. Wind power is expected to play a significant role in this plan and the country aims to generate 10,000 MW through wind farms by 2020. “The Turkish energy sector is still very much in public hands: 60 per cent is publicly owned and only 40 per cent is held by private companies,” explained Philip Lam, Associate Banker in the EBRD's Power and Energy team. The project is therefore also intended to increase the percentage of private ownership in the energy sector. “The project is an exemplary showcase for IFI cooperation. Although a number of different institutions were involved, we got to the finishing line in record time," concludes Ms Parshad. http://www.ebrd.com/new/stories/2009/090601.htm http://www.ebrd.com/new/stories/2009/090601.htm 01/06/2009 Turkey Power and Energy Sunflower oil is by far the major vegetable oil consumed in Kazakhstan, but growing demand in recent years has been met largely by imports rather than increased production. http://www.ebrd.com/new/stories/2009/090521.htm http://www.ebrd.com/new/stories/2009/090521.htm 21/05/2009 Kazakhstan Agribusiness Moving towards a low-carbon economy can help lift the EBRD region out of economic crisis while also reducing the long-term risks of catastrophic environmental change, Lord Nicholas Stern told the EBRD 2009 Business Forum in the Jacques de Larosière lecture on Friday. http://www.ebrd.com/new/stories/2009/090516.htm http://www.ebrd.com/new/stories/2009/090516.htm 16/05/2009 “Mick Jagger is wrong. Time is not on our side,” moderator Nigel Jollands warned the panel on Energy Efficiency and Climate Change at the 2009 Business Forum at the EBRD’s 18th Annual Meeting (15-16 May). http://www.ebrd.com/new/stories/2009/090516a.htm http://www.ebrd.com/new/stories/2009/090516a.htm 16/05/2009 Regional