Slovenia: Danube River BasinSlovenia: Danube River BasinEBRD / GEF Environmental Credit EBRD / GEF Environmental Credit

FacilityFacilityMark HughesMark Hughes

Principal Environmental Adviser, EBRDPrincipal Environmental Adviser, EBRD

ProjectProject 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

Key Project ComponentsKey Project Components

EBRD Framework Facility Euro 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

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

Sub-projectsSub-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.

GEF grant moneyGEF grant money

Grants to sub-borrowers USD 6 million

Compensation to local banks USD 3 million

Environmental Expert USD 305,000

Technical Assistance to polluting entities BAS Programme

USD 540,000

Marketing and Info Dissemination USD 63,000

Leverage: GEF Grant – EBRD 1 : 5

Environmental ExpertEnvironmental 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

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 GroupTurnaround Management GroupSlovenian BAS ProgrammeSlovenian BAS Programme

Notable FeaturesNotable 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

Project ProcessingProject Processing

Participating Banks

Borrower

Env ExpertTMG BAS

EBRD

GEF

ConsultancyContractCredit Line Agreement

Project Brief

Eligibility CheckConfirm Completion

Loan AgreementAdvisory Services

Incentive paymentsAdministrative fees

Incentive payments

Current ActivitiesCurrent 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.

Current ActivitiesCurrent 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