65 years of KfW Financing with a public mission

Transcription

1 KfW in Armenia

2 65 years of KfW Financing with a public mission Promotional bank of the Federal Republic of Germany Established in 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% federal states Headquarters: Frankfurt am Main Branches: Berlin, Bonn and Cologne Representative offices: 80 offices and representations worldwide Balance sheet total 2014: EUR 489,1 billion Financing volume 2014: EUR 74,1 billion 5,518 employees (2014) Best long-term rating: AAA/Aaa/AAA 2

3 Worldwide presence 81 representative offices Bonn Cologne London Brussels New York Rabat Moscow Berlin Kiev Belgrad Chisinau Frankfurt Mazar-e-Sharif Priština Tiflis Sarajevo Tashkent Istanbul Bishkek Podgorica Baku Dushanbe Ankara Tirana Skopje Jerewan Tunis Kabul Damascus Al-Bireh Amman Islamabad New Delhi Cairo Abu Dhabi Mexico-City Guatemala-City San Salvador Mumbai Tegucigalpa Dakar Managua Bamako Niamey Sanaa Ouagadougou Accra Addis Abeba Cotonou Juba Jaunde Bogotá Quito Kampala Kigali Kinshasa Ulan Bator Beijing Kathmandu DhakaVientiane Rangoon Bangkok Hanoi Manila Phnom Phen Singapore Nairobi Bujumbura Daressalam Jakarta Lima La Paz Lusaka Brasilia Lilongwe Windhoek São Paulo Pretoria Maputo KfW employees 5,518 Johannesburg

4 A bank with a wide array of functions Domestic promotion International business We promote Germany We support internationalisation We promote development Mittelstandsbank Kommunal- und Privatkundenbank/Kreditinstitute KfW IPEX-Bank KfW Development Bank, DEG Promotion SMEs, business founders, start-ups Promotion of housing construction and refurbishment, improved accessibility and education Financing of municipal infrastructure and global loans International project and export finance Promotion of developing and transition countries Promotion of environmental and climate protection 4

5 KfW Development Bank as part of the KfW Group Domestic promotion International financing We promote Germany We support internationalisation We promote development SMEs Private clients Municipalities Export & project finance Developing & emerging countries Support for the environment and climate protection Financing volume (FV): 47.6 billion (2014, EUR) FV: 16.6 billion FV: 7.4 billion and 1.47 billion

6 KfW in Armenia -Overview Total portfolio end of mln. 1% 1% Funds by Sector 22% Energy 50% Municipal Infrastructure 26% Financial Sector Development Protection and Management of Natural Resources Other 6

7 KfW in Armenia - Portfolio Total Commitments : ca. 787 mln. EUR Financial Sector SME Refinancing Phase I IV Establishment of Deposit Guarantee and Credit Guarantee Fund Municipal Infrastructure: Rehabilitation of water systems (Armavir, Gyumri, Vanadzor) Solid waste project (Vanadzor) Energy: Rehabilitation of power transmission Renewable Energy Program I III promoting small hydropower plants through banking sector Agricultural Program I - III Reconstruction of Kaps Reservoir Rehabilitation of Vorotan HPP Housing refinancing Phase I - III ACBA bank promotional loans I & II Rehabilitation of ArmRosGazProm s gas supply network Caucasus Transmission Network I,II Energy Efficient Rehabilitation of Schools Total: 170 mln EUR Total: 200 mln EUR Total: 396 mln EUR Studies and Experts Funds (bilateral): Health: Tuberculosis Program Nature Protection (bilateral): Total: 4 mln EUR Total: 6 mln EUR National Parks Arpi, Shikahogh Total: 10.5 mln EUR 7

8 Apri National Park Kaps Reservoir Gyumri Alaverdi Vanadzor Regional project overview Energy sector Municipal infrastructure Armavir Yerevan Kamo Financial sector Protection & management of natural resources Health Vorotan Projects in preparation or implementation Finished projects Shikahogh State Reserve - KfW in Armenia - 8

9 Energy Efficient Rehabilitation of Schools Challenge Bad general condition of the building structure, insulation as well as lighting- and heating system Energy costs are highest non-salary cost for schools due to budget constraints, many schools reduce their energy consumption by lowering temperature during winter time substantially, harming the educational process and the substance of the buildings. Approach modernization of schools Implementing energy efficiency measures accompanied by TA and Training measures to ensure sustainable operation and maintenance Information Financing of a energy efficiency measures accompanied by generals structural and comfort measures Impact Improved learning environment Increased energy efficiency Reduced energy consumption and CO2 emission relative to the necessary baseline consumption Replication of concept and set up possible Volume of financing KfW: EUR 15 m Total: EUR m Donors: BMZ (EUR 1.0 m) E5P (EUR m planned)

10 Caucasus Transmission Network Phase I Enhancing Regional Integration Challenge Increased energy demand Infrastructure which has to a large extent reached the end of its technical life No fossil fuels Expensive imports of gas, oil, coal and uranium Approach Financing the connection of the Armenian and the Georgian power grid Training and capacity building measures to ensure sustainable operation and maintenance Information Financing of a High Voltage Direct Current (HVDC) back-to-back converter station in Armenia Construction of overhead line o Georgia Impact Improved energy infrastructure Security of energy supply Enhanced power export and transit potential Volume of financing KfW: EUR 85 m Total: EUR 134 m Donors: EU NIF (EUR 10 m) EIB (EUR 10 m)

11 Small Hydropower Plants in Armenia Using natural resources efficiently Challenge No fossil fuels; water and nuclear power are the basis for the country's energy supply Expensive imports of gas, oil, coal and uranium Potential for generating energy using domestic sources remains untapped Approach Financing of private investments in small hydropower plants via the central bank and commercial banks Technical and financial advisory for investors and banks Information Financing for the construction and rehabilitation of approx. 50 small hydropower plants Close cooperation with WWF concerning the assessment of environmental risks Impact CO² savings Substitution of imported energy sources Stabilization of the power supply in Armenia Volume of financing: EUR 64 million (phases I-III)

12 Energy Sector timeframe mln. EUR Completed,ongoing as well as planned projects 396,2 Emergency Energy Sector Support Program Power Transmission Rehabilitation Partial rehabilitation of Kanaker (Yerevan) ,00 Rehabilitation and stabilization of energy supply at Vanadzor, Kamo, Alaverdi and Gyumri Substations ,00 Renewable Energy program I - III Financing Rehabilitation and Construction of small scale hydropower plants through German-Armenian-Fund (GAF) ongoing 64,00 Rehabilitation Vorotan hydropower plant Rehabilitation of Vorotan hydropower plant ,00 Rehabilitation gas supply by ArmRosGazprom Caucasus Transmission Network I Caucasus Transmission Network II Increasing quality and reliability of ArmRosGasprom s gas network ,00 Connection of the Armenian electricity grid with Georgia via BtB-Station in Ayrum 2014 ongoing New substation in D dmashen and 400 kv line to BtB-Station Ayrum start in ,0 85,2 Energy Efficient Rehabilitation of Schools Modernization of Schools (Implementing Energy Efficiency measures accompanied by general structural and comfort measures) start in ,00 12

13 Drinking Water Supply in Armenia Provision of drinking water under a PPP approach Challenge High water losses due to outdated and obsolete infrastructure Unfavourable financial situation of water utilities and consequently lack of funds for maintenance and necessary investments Image Armenia Approach Rehabilitation/construction of physical infrastructure to ensure the continued and hygienically safe supply of drinking water countrywide (with the exception of the capital Yerevan) Buildup of a functioning, efficient water utility that covers its operating costs with the help of an international operator (PPP) Impact Improved drinking water supply for approx people in the project region (continuity and quality) Increase in the collection rate (nearly 100% in all areas) Significant improvement in coverage of operating costs Information Provision of investment loans with reduced interest rates (approx. EUR million), including co-financing of EIB (EUR 25.5 million) Investment grant for pilot projects in small villages, MC fee, construction of the first treatment plant in the region NIF (EUR 15 million) TA grant for the management contracts and other institutional support measures, KFW (EUR 10.7 million) Volume of financing: EUR million Including external finance and grants Donors: BMZ, EU

14 IWRM in Armenia Integrated Water Resource Management at Akhouryan River Challenge Dilapidated/ missing irrigation infrastructure and variable water levels in Akhouryan River No sustainable water management and the effects of climate change increase water scarcity Low productivity levels of farmers, negative impacts on environment and biodiversity Image Armenia Approach Construction of an irrigation reservoir in Shirak with a capacity of 25 million m³ (project phase 1) Rehabilitation/ construction of selected secondary and tertiary irrigation canals (project phase 2) Introduction of efficient irrigation technologies on pilot areas (project phase 2) Development, implementation and monitoring of sustainable water management plans agreed upon with all water user groups Impact Increase agricultural productivity Reduce climate change vulnerability of target group (approx. 41,700 people) Protect local ecosystems and biodiversity Information (Contribution of FC) Phase 1. Provision of investment loans with reduced interest rates (EUR 50 million) and financing of the trainings and capacity building via grants (EUR 2 million) Phase 2. Construction of pilot drip irrigation schemes 750 ha, irrigation network in 800 ha (EUR 18.5 to be signed in 2015) Phase 3 is envisaged Volume of financing: EUR 52 million Donors: BMZ

15 Municipal Infrastructure Timeframe Mln. EUR Completed and ongoing projects as well as planned projects, KfW contribution only IDP Emergency Support Support of IDPs ,5 Rehabilitation Communal Infrastructure I Rehabilitation Communal Infrastructure II, Phases I Rehabilitation Communal Infrastructure II, Phases II Rehabilitation of water and wastewater system in Armavir Rehabilitation of water and wastewater systems in Lori and Shirak (Vanadzor and Gyumri) Rehabilitation of water and wastewater systems in Lori and Shirak (Vanadzor and Gyumri) Rehabilitation Communal Infrastructure II, Phases III Rehabilitation of water and wastewater systems in Lori,Shirak, Armavir 2013 ongoing 33.5 IWRM Akhuryan project Integrated Water Resource Management, Reconstruction of Kaps Reservoir 2013 ongoing 52 IWRM Akhuryan project Phase 2 Integrated Water Resource Management, Reconstruction of Kaps Reservoir, Irrigation To be signed 18.5 Vanadzor Solid Waste Project Construction of new land field and conservation of the old one plus supply of equipment in Vanadzor To be signed 20,0 15

16 Housing Finance in Armenia Phase I - IV Challenge High demand for renovations of residential buildings that were built under Soviet times Lack of finance to long term local currency funding Bild Armenien Approach Introduction of long term housing loans for renovations of residential buildings or for purchase of new housing units for lower and middle income households Local currency funding Trainings for participating banks and mircofinance institutions in order to grant high quality of portfolio Wirkungen Creation of an access to finance of long term local currency funding for lower to middle income households Increase of living conditions of these households Positive effects on the construction sector Information Three projects that amount to 32 mln. EUR Additional support by means of training and institution building activities (EUR 1 mln. ) New phase housing Phase IV currently under preparation (20 mln. EUR) Volume: 32 mln. Donor: BMZ

17 Financial Sector timeframe Mln. EUR Completed and ongoing projects as well as planned projects 170 SME Refinancing (Phase I IV) Establishment Credit Guarantee & Deposit Guarantee Fund Promoting development of SME through refinancing loans Establishment of Credit Gurantee and Deposit Gurantee Fund Program Housing Finanse I-III Housing financing Phase I & II through German-Armenian Fund (GAF), Phase III through National Mortgage Company (NMC) Support of the banking sector Promotional loans to ACBA and equity participation in ProcreditBank for micro financing and SME financing especially in rural areas Agricultural program Supporting agricultural sector by refinancing SME through GAF, Phases I and II Energy Efficiency in MSMEs Financing of moderminsation investments in MSMEs

18 National Parks Establishment of Lake Api National Park Challenge Bild The suspected area is an important breeding habitat & of migrating birds Armenien Overgrazing threatens the eco system by destroying natural vegetation and overfertilization of bodies of water Approach Development of nature conservation strategy Sustainable development measures for local residents Eco - management across national boundaries Information Provision of grant resources (2.2 Mln. ) Impacts Preservation of regional biodiversity and breeding habitats by sustainable wide-area management Volume: 2,2 mln.

19 Nature Protection timeframe mln EUR Completed and ongoing projects as well as planned projects 10,45 Arpi National Park Establishment of Arpi National Park Ab ,20 Shikahogh Program Open program to support protected areas of Armenia ,25 19

20 Thank you for your attention! Lars Oermann Director South Caucasus Regional Office Tbilisi Phone: mail: Zara Chatinyan KfW Local Representative in Armenia Phone: mail: Bella Andriasyan Senior Project Coordinator Phone: KfW Armenia Office Bagramyan Street 4/1, Yerevan,, Armenia