1 ECS – European Commission support for the Energy CommunityIstanbul, 08-09 March 2011 EUROPEAN COMMISSION SUPPORT FOR THE ENERGY COMMUNITY Simon Uzunov

1 ECS – European Commission support for the Energy CommunityIstanbul, 08-09 March 2011

EUROPEAN COMMISSIONSUPPORT FOR THE ENERGY COMMUNITY

Simon UzunovEnergy Community Secretariat

www.energy-community.org

Workshop on Integration and Cross Border Trade of Renewable Energy Resourcesin Regional Transmission Networks

Istanbul, 8 – 9 March 2011


CONTENTS

EC and the ENERGY COMMUNITY

- a bridge between EU and the SEE Region

WBIF management

- innovative financing mechanism (bottom-up)

WBIF implementation

- full ownership by the beneficiaries


9 Contracting Parties

Albania Bosnia and Herzegovina Croatia The former Yugoslav Republic of

Macedonia Montenegro Serbia UNMIK Moldova (May 2010) Ukraine (February 2011)

14 Participants

Austria Bulgaria Cyprus Czech Republic France Germany Helenic Republic Hungary Italy The Netherlands Romania Slovakia Slovenia United Kingdom

3 Observers

Georgia Norway Turkey

PARTIES to the TREATY (March 2011)

ENERGY COMMUNITY structure

7 in Western Balkans


WBIF management

WBIF – Western Balkans Investment Framework

WBIF was established with the aim to enhance harmonization and cooperation in investment for the Western Balkan’s socio-economic development

Basics

Innovative financing mechanism launched in December 2009 as a regional tool,

designed to pool and blend grants, loans and expertise from:

the Western Balkan countries (Albania, Croatia, Bosnia and Herzegovina, former Yugoslav Republic of Macedonia, Montenegro, Serbia and UNMIK1),

the EC (DG ELARG) in the framework of the EU pre-accession instruments (IPA),

IFI-s (EIB, EBRD, CEB2)

EU bilateral donors through the European Western Balkan Joint Fund (EWBJF);

aimed to prepare financing of a common pipeline of priority investment projects for the region in

Transport, Social Infrastructure, Private sector, Environment and Energy

1 Kosovo under UNSCR 12442 Council of Europe Development Bank


WBIF management


The National IPA Coordinator’s (NIPAC) and at least one IFI support is required for eligibility of a project to access the pipeline

Governance

The Steering Committee (SC)

Takes all decisions related to JGF including project approvals,

Provides strategic guidance for WBIF

composed of representatives from EC, partner IFIs and EWBJF1;

co-chared by EC (permanent) and EWBJF (rotational), meets every six months

The Project Financier’s Group (PFG)

Responsible for screening and assessing requests for financial support from JGF with objective of

establishing a pipeline of priority projects

composed of representatives from EC, partner IFIs, bilateral IFIs and donnors, meets quarterly

represents a single entry point for the projects

1 European Western Balkan Joint Fund


WBIF implementation


Resources

Joint Grant Facility (JGF)

EIB(10 mil)

EC(130 mil)

EBRD(10 mil)

CEB(10 mil)

EWBJF(20 mil)

Joint Landing Facility (JLF)

EIB

EBRD

CEB

Western Balkans

PRIORITY PROJECTS

IFIs, NIPACs

PROJECTS LOANS

Other IFIs (WB), other bilaterals,

national IPA,own funds

Only in the first year of its existence (2010) WBIF directly disbursed 39 million EUR of grants for 39 projects which will receive loans of 2.6 billion EUR and mobilize investments of 5.2 Billion EUR.


WBIF implementation

WBIF – Joint Grant Facility1

1 Source – Review of the WBIF prepared for the CS [December 2010]

JGF input - grants

53

13 1218

34

84

0

10

20

30

40

50

60

IPF TA IFI TA IPF MW

Nu

mb

er o

f g

ran

ts

0

10

20

30

40

50

60

70

80

90

Gra

nts

[m

illi

on

EU

R]

To date, (including the work done under the IPF in 2008 and 2009) WBIF approved 78 grant projects bringing the total grant contribution close to 136 million EUR which is expected to leverage as much as 3.2 billion EUR of loans and estimated investments of 6.8 Billion EUR.

JGF Consolidated structure


WBIF implementation





Expected loans

12

53

13680

2100

354

0

10

20

30

40

50

60


Nu

mb

er o

f g

ran

ts

0

500

1000

1500

2000

2500

Lo

ans

[mil

lio

n E

UR

]


WBIF implementation





Investments

1213

53

613

3600

2600

0

10

20

30

40

50

60


Nu

mb

er o

f g

ran

ts

0

500

1000

1500

2000

2500

3000

3500

4000

Fu

nd

s [m

illi

on

EU

R]


WBIF implementation

WBIF – Joint Grant Facility

Project management (bottom-up)

PROJECT DATABASE (PFG)

WBIF pipeline (SC)

NIPACsRegional programming bodies

EU delegations (IPA)National authorities (central, local)

Local stakeholdersOther IFIs (WB, bilateral)

Other initiatives still need to be integrated such as national IPA and PPF, as well as regional RCC, SEETO, REC, RENA, PEIP, DABLAS – including the Energy Community (ECS)

CEB

EIB

EBRD

DG ELARG

Bilateral PFG

Infrastructure Project Facility (IPF) – EC contribution „in kind“


WBIF implementation


A total of 2.150.000 EUR grant assistance for the energy sector is proposed by the WBIF-SC in December 2010

WBIF 2010

Three grants approved in 2010 in ENERGY sector (SC)

1. WB4bis-SER-ENE-05 (Government of Serbia) - energy / district heating - TA with Program Preparation (KfW) - 28.297 Mil EUR - grant proposal [500.000 EUR from EWBJF];

2. WB4bis-MKD-ENE-03 (PE „HS Zletovica“ - former Yugoslav Republic of Macedonia) - energy / hydro - Update of FS for irigation component / FS for hydro component / project economic analysis / EIA & SIA for hydro component (EIB / JBIC) - 131 Mil EUR - grant proposal [1.000.000 EUR - 500.000 from EWBJF and 500.000 from EIB];

3. WB4bis-REG-ENE-01 (OST - Albania and MEPSO - former Yugoslav Republic of Macedonia) - energy / transmission - FS and environmental and Social Impact Study - (EBRD / KfW) - 36.5 Mil EUR - grant proposal [650.000 EUR - 325.000 EUR from EWBJF and 325.000 EUR from EBRD]


SC 5

PFG 8

PFG 9 PFG 11

PFG 10

SC 4

WBIF implementation

WBIF – monitoring framework 2011

The overall amount available in the Joint Grant Facility for 2011 is estimated at a maximum of 50 Million EUR (excluding the specific allocation for the private sector)

1 Source – EC Note on WBIF-JGF-PFG work plan 2011 [November 2010]

Project proposals[10 February]

Screening Assessment and decision Submission

[23-24 June]

Timing1

The deadline for submission of project proposals to the PFG is set at least 3 weeks (screening period) before the date of the PFG meeting.

JFG should be able to provide an approval for a project within maximum 6 months.

A possibility to re-examine project proposals to be amended following SC decision.


Projects by type

0 2 4 6 8 10 12 14 16

Energy

Environment

Private Sector

Social Infrastructure

Transport

Projects by beneficiary

0

2

4

6

8

10

12

Albania Bosnia andHerzegovina

Croatia formerYugoslav

Republic ofMacedonia

Montenegro Serbia UNMIK Regional

WBIF implementation

WBIF – monitoring framework 20111

Following the CALL published on 8 December 2010 WBIF PFG received 41 project applications by the deadline of 10 February 2011 requesting a total of 100 Million EUR in grants.

1 Source – WBIF-PFG Update [February 2011]


I appreciate your attention

www.energy-community.org

Documents

1 ECS – European Commission support for the Energy CommunityIstanbul, 08-09 March 2011 EUROPEAN COMMISSION SUPPORT FOR THE ENERGY COMMUNITY Simon Uzunov