EIAS Briefing Seminareias.org/wp-content/uploads/2016/03/EIAS... · EIAS Briefing Seminar In cooperation with the Embassy of Nepal in Brussels ... [email protected] 30/06/2016 European

EIAS Briefing Seminar

In cooperation with the Embassy of Nepal in Brussels

Nepal-EU Cooperation:

Unlocking Nepal’s Hydropower Potential

Ramón Ynaraja, Senior Loan Officer Country Manager for Nepal, Bhutan & Bangladesh

Operations Directorate, Asia & Pacific Division

[email protected]

30/06/2016 European Investment Bank Group 2

mailto:[email protected]

European Investment Bank


The EU Bank

• Natural financing

partner for the EU

institutions since 1958

• Around 90% of lending

is within the EU

• Shareholders: 28 EU

Member States

The EIB: capital breakdown


The EIB at a glance

• Largest multilateral lender/borrower in the world

• Raise our funds on the international capital markets

• Pass on favourable borrowing conditions to clients

• 450+ projects each year in over 160+

• Headquartered in Luxembourg; 33 local offices

• Around 2,900 staff:

• Finance professionals + engineers + sector economists

+ socio-environmental experts

• 50+ years of experience in financing projects


EIB Group track record: over EUR 500bn lent since 2008

30/06/2016

European Investment Bank Group 6

We deliver impact where it’s needed

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HEALTH

9.8m people with

access to improved

health services

JOBS

4.1m jobs in small

businesses

EDUCATION

1.5m students

benefitting from

EIB projects

WATER

21m people

benefitting from

safe drinking water

TRANSPORT

380m additional

passengers

ENERGY

2.3m households

powered by

EIB projects

URBAN

3.2m people

benefitting from

urban upgrades

DIGITAL

15.3m people with

new or upgraded

connections

We focus on our key priorities


ENVIRONMENT

EUR 19.6bn

INFRASTRUCTURE

EUR 18.9bn

INNOVATION

EUR 18.7bn

SME

EUR 29.2bn

We are the world’s largest

provider of climate finance


>25% worldwide 35% in world’s

developing regions

EIB’s 2015 Climate Strategy

We are increasing our climate commitment:

USD 100bn over next 5 years

We are the world’s largest multilateral financier

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EIB in 2015:

EUR 77.5bn

EIF in 2015:

EUR

7bn

Record for the

EIB Group:

EUR 84.5bn

EIB Lending in 2015: EUR 78bn

(EIB signatures)


EIB lending since its foundation


Our products

We help catalyse investment


LENDING BLENDING ADVISING

Loans

But also:

Guarantees

(trade financing)

Equity participation

Combining EIB finance

with EU budget

(Project Bond Initiative)

Higher risk projects for

innovation (InnovFin)

Prepare, evaluate and

support the

implementation of

projects (JASPERS)

Support for

public/private

partnerships (EPEC)

Attracting FUNDING for long-term growth

EIB project cycle

We support sound and sustainable projects


A responsible Bank

Corporate responsibility is part of all of our activities

• We strive to improve the lives of people.

• Promoting sustainable & inclusive growth.

• We are committed to:

High environmental & social standards;

Strong governance, transparency & accountability;

Minimising environmental footprint.


We are the world’s largest

supranational borrower


We are the

largest issuer of

green bonds

EUR 4bn in 2015

EUR 11bn in 11 currencies

since 2007

Total 2015 borrowing: EUR 62.4bn

Mobilising resources worldwide

Europe

63% Asia

21%

Americas

14%

Middle East & Africa

2%

EIB Activities in Asia


The EIB Asia Mandate

EIB’s strategic objectives under the Mandate:

1. Environmental sustainability (incl. climate change mitigation & adaptation)

2. Social & economic infrastructure

3. Local private sector development (in particular, support to SMEs)

22 Eligible countries :

Bangladesh, Bhutan, Brunei*, Cambodia, China, East Timor, India, Indonesia,

Iraq*, Laos, Malaysia*, Maldives, Mongolia, Myanmar, Nepal, Pakistan, the

Philippines, Singapore*, South Korea*, Sri Lanka, Thailand, Vietnam, Yemen.

* No Framework Agreement signed yet


Benefits of EIB loans


AAA - IFI

low-cost funding passed on to clients low interest rate (same rates as EU)

Large amounts, long maturities & grace periods (in line with MDBs)

Possibility to blend loans with EU grants

Increased concessionality

E&S standards and procurement procedures also aligned with MDBs

Background of EIB Presence in Nepal

EIB-Nepal FWA signed May 2012

1st project signed March 2013 (Tanahu)

April 2015: disaster support (PDNA)

July 2015: waiver of EIB fees

Last project signed November 2015 (Grid

Development)

February 2016: hiring of Resident Consultant


EIB Activity in Nepal Ta

na

hu

• Signed March 2013

• Costs EUR 390m

• Loan EUR 55m

Po

we

r S

yste

m E

xp

an

sio

n

• Signed April 2015

• Costs EUR 270m

• Loan EUR 95m

Grid

De

ve

lop

me

nt

• Signed November 2015

• Costs EUR 65m

• Loan EUR 30m


Nepal Tanahu Hydropower Project

• Construction of hydropower scheme, including a

transmission line, access road and rural

electrification.

• Project costs EUR 390m (loan EUR 55m)

• Co-financiers: EIB + ADB + JICA

• Approved March 2013

• Signed March 2013

• Contract: headworks contract

• Estimated 1st disbursement: Q1(2017)


Nepal Power System Expansion Project

• Construction of Samundratar-Trishuli 3B Hub

Transmission Line and Substation.


• Co-financiers: EIB + ADB + NORAD

• Approved September 2014

• Signed April 2015

• Contract: Samundratar-Trishuli 3B transmission

line and substation.



Nepal Grid Development Project

• Transmission lines, incl. 2 substations, upgrade of

dispatch centre and rural electrification component.


• Co-financiers: EIB + KfW + AIF (EC)

• Approved June 105

• Signed November 2015

• Contract: Chilime –Trishuli 3B transmission line +

substations.



Outlook Future Operations in Nepal

Country Strategy & EU aligment

• Public Sector

NEA-supported operations

GoN-supported Infrastructrure

• Private Sector

Corporate banking

Project Finance

• Financial Sector

Banking Sector

Investment Funds


Thank you!

More information at: www.eib.org

[email protected]

Tel.: +352 4379-22000


Documents

EIAS Briefing Seminareias.org/wp-content/uploads/2016/03/EIAS... · EIAS Briefing Seminar In cooperation with the Embassy of Nepal in Brussels ... [email protected] 30/06/2016 European