1. Libor Krkoska Head of office EBRD Bosnia & Herzegovina 18 April 2013 © European Bank for Reconstruction and Development | www.ebrd.com EBRD – Your partner in BiH

2. 2 EBRD in BiH at a glance To date, EBRD signed over 100 projects with cumulative business volume of close to EUR 1.5 billion Mobilised total investments of EUR 3.1 billion 12 new projects amounting to EUR 125 million in 2012 – 33% year-on-year increase. Record disbursements of EUR 165 million in 2012 – almost 70% year-on- year increase. Most projects signed in 2012 were in the private sector. 2013 core pipeline of Euro 180 million in 18 individual projects.

3. 3 Bosnia and Herzegovina: EBRD portfolio by sector

4. 4 EBRD Energy Sector Financing Cumulative EBRD financing to power & energy projects since 1992 is €8.2 bn across 172 projects with €28.5 bn total value In 2012 invested over €1.1 bn in 24 projects with a total value of €3.2 bn In the last five years, number of projects per year has tripled and annual business volume has quadrupled Renewables represent an increasing portion of total financing, comprised primarily of wind and hydro but also including biomass and solar Financing by Sector (2009-2012) Unaudited as at 31 December 2012 Note: Renewable power does not include large hydro. Source: EBRD data

5. 5 Focus on renewables In 2012 the EBRD signed €304 mln of financing for 14 renewables deals with a total gross project value of €959 mln Award winning transactions include the following windfarms: St Nikola (Bulgaria), Rotor (Turkey) and Margonin (Poland) Technologies financed to date include wind (77%), hydro (10%), biomass (7%) and solar (0.5%). Hydro includes greenfield small hydro, but not large hydro. Renewables financing by Region (2009-2012) Unaudited as at 31 December 2012 Note: Renewable power does not include large hydro. Source: EBRD data

6. 6 Key issues for financing Sector issues – tariff levels, consumer payment discipline Project issues – cost, technology, risk Contractual arrangements – balance of risk between the sponsor and contractor Government support – is there government support for the off- taker and for other contractual obligations? Legal framework – is the legal framework enforceable? dispute resolution? changes in law? Regulatory framework – is their independent regulation of the sector?

7. 7 EBRD’s Sustainable Energy Initiative The Initiative in the Western Balkans includes: –Western Balkans Sustainable Energy Direct Financing facility (WeBSDEFF) – an investment facility of up to € 100 million to provide direct lending for energy efficiency and small renewable energy projects in the Western Balkans region. Loans in range of € 2 - 6 million. –Western Balkans Sustainable Energy Credit Line Facility (WeBSEFF) – a credit line facility of up to € 60 million for financing industrial energy efficiency and small renewable energy projects through Participating Banks (in BiH, FYR Macedonia and Serbia). Loans of up to € 2 million. –Institutional capacity building component of up to € 3.5 million to address regulatory deficiencies and other obstacles to the development of the market for sustainable energy projects.

8. 8 Slide 7 WeBSEFF Regional achievements 127 projects; EUR 52.7 mln Total CO 2 savings131,689 t/yr Total energy savings 461,205 MWh/yr Renewable Energy Production 52,807 MWh/yr Current pipeline value EUR 7.1 mln

9. 9 Slide 7 WeBSEFF achievements in BiH 55 projects; EUR 13.3 mln Total CO 2 savings 18,167 t/yr Total energy savings 46,162 MWh/yr Current pipeline value EUR 1.7 mln

10. 10 Project breakdown - Bosnia and Herzegovina 41 EE Projects 10 RE Projects 4 Combined (EE/RE) Projects Total of 55 projects, of which Raiffeisen Bank: 37 UniCredit Bank: 18

11. 11 Case studies – Bingo 11 Type of project Renewable Energy/ Energy Efficiency – Implementation of IEE measures in several BINGO outlets Region Bosnia and Herzegovina Project goals Increase energy savings Improve equipment reliability Reduce maintenance costs at existing outlets Reduce operating costs Main investments Lighting Refrigeration system Insulation panels Skylights Heat pumps- space cooling and heating Investment size Approximately € 5.4 million Expected operational results Primary energy savings: 15,477 MWh CO ₂ emission reduction: 4,700 t/year Skylights at an already existing BINGO outlet Air curtains Fan coils

12. 12 Case studies – Natron Hayat 12 Type of project Renewable Energy – Construction of a new biomass CHP plant to replace an existing coal-fired power plant Region Bosnia and Herzegovina Project goals Utilize company’s biomass waste as fuel Reduce environmental impact of the wood waste Reduce operating costs related to energy (electricity and steam) Subject to availability of green feed-in-tariff the company can generate significant income from sale of electricity to the grid Main investments Biomass-fuelled boiler and steam turbine Project size € 11 million Expected operational results Generate electricity and steam for its manufacturing process Sell surplus electricity to the grid CO ₂ emission reduction: 275.000 t/year

13. 13 EBRD Bosnia and Herzegovina Contact details Libor Krkoska, Head of Office Tel: +387 33 667 945 Fax: +387 33 667 950 Email: krkoskal@ebrd.com