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OFFICIAL USE Investment Forum: Investing for change in developing markets Introduction to EBRD and standard investment procurement Opportunities Taipei,

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Presentation on theme: "OFFICIAL USE Investment Forum: Investing for change in developing markets Introduction to EBRD and standard investment procurement Opportunities Taipei,"— Presentation transcript:

1 OFFICIAL USE Investment Forum: Investing for change in developing markets Introduction to EBRD and standard investment procurement Opportunities Taipei, 8 September 2015 OFFICIAL USE OFFICIAL USE

2 EBRD region provides good business opportunities
OFFICIAL USE EBRD region provides good business opportunities USD billion OFFICIAL USE OFFICIAL USE

3 EBRD region USD 114 billion in assets 4,300 projects
OFFICIAL USE EBRD region USD 114 billion in assets 4,300 projects Net cumulative business volume €95bn Note: Unaudited as at end December 2014 OFFICIAL USE OFFICIAL USE

4 EBRD range of activities
OFFICIAL USE EBRD range of activities OFFICIAL USE OFFICIAL USE 18 September, 2018

5 Shareholding and recent developments
OFFICIAL USE Shareholding and recent developments An international financial institution, promotes transition to market economies in 35 countries from central Europe to central Asia and the Southern and Eastern Mediterranean – SEMED region Owned by 65 countries and 2 inter-governmental institutions (EU, EIB) Capital base of USD 34 billion In May 2014, during the EBRD annual meeting, Cyprus became a recipient country Since February 2015 Greece has also become a recipient country for a 5 year period Shareholding structure - EBRD has a AAA rating from all three main rating agencies (S&P, Moody’s and Fitch) (1) Includes European Community and European Investment Bank (EIB) each at 3%. Among other EU countries: France, Germany, Italy, and the UK each holds 8.6% OFFICIAL USE OFFICIAL USE

6 EBRD’s track record so far
OFFICIAL USE EBRD’s track record so far AAA/Aaa rated multilateral development bank Invested over USD 114 billion in more than 4,300 projects since 1991 In 2014: USD 10 billion invested in 377 projects Private sector accounted for 72% share Debt 85%, Equity 10% & Guarantee 5% As at end July 2015 USD 4 billion invested in 190 projects Note: Unaudited as at end June 2015 Net cumulative business volume USD 114bn € billion OFFICIAL USE OFFICIAL USE

7 The EBRD and its objectives
OFFICIAL USE The EBRD and its objectives The EBRD is: Your engaged partner Operates in “business time” Private sector focused Wide product, currency, tenor range Facilitates inward and cross border investments in the region Promotes policy dialogue with regards to investment climate business environment and policy matter AAA rating profitable, commercial focus Objectives: To promote transition to market economies by investing mainly in the private sector To mobilise significant foreign direct investment To support privatisation, restructuring and better municipal services to improve people’s lives To encourage environmentally sound and sustainable development OFFICIAL USE OFFICIAL USE

8 EBRD product flexibility tailored to project needs
OFFICIAL USE EBRD product flexibility tailored to project needs Equity Common stock or preferred Minority position only (up to 35%) Mezzanine Other Guarantees Currency swaps Loans Senior, subordinated, convertible Long Term (up to 10y or more) or Short Term revolving Floating/ Fixed rates Choice of currencies (€, US$, Local currency) OFFICIAL USE OFFICIAL USE

9 Key strengths of EBRD Operational
OFFICIAL USE Key strengths of EBRD Operational Extensive knowledge of local economy, business environment and practices, local presence Engaged minority partner for business A business partner who shares risks, including political Catalyst to access additional equity, debt and trade finance Provides finance to both private and public sector clients High standards for corporate governance and compliance Institutional Strong, internationally recognized financial partner with long-term perspective Close working relationships with governments and shareholders Political leverage due to EBRD’s unique mandate and shareholder structure Preferred Creditor Status AAA credit rating Working closely with market sources of capital to fill “market gaps” OFFICIAL USE OFFICIAL USE

10 Enhanced comfort through dedicated Technical Cooperation
OFFICIAL USE Enhanced comfort through dedicated Technical Cooperation Significant use of Technical Cooperation (TC) for project preparation (including through IPPF): Ensures viable projects and is a good source of business intelligence Promotes more efficient delivery of projects and improves quality within context of EBRD’s reform-driven mandate Improve quality of service offered to clients Provide a response to both public sector projects and PPPs Deepen focus on commercialised approaches Strengthens institutional capacity Facilitates the integration of project preparation with systematic higher level policy dialogue OFFICIAL USE OFFICIAL USE

11 Procurement of Goods and Works
OFFICIAL USE Procurement of Goods and Works OFFICIAL USE 11 OFFICIAL USE

12 EBRD Procurement Policies
DOCUMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD FINANCING OF PRIVATE PARTIES TO CONCESSIONS 1 12 OFFICIAL USE

13 EBRD Procurement principles
Aligned with the Government Procurement Agreement of the World Trade Organisation Use of efficient procurement methods Fair and open international tendering – the norm No country eligibility limitations or preferences Clients are responsible for project implementation and tendering Compliance with the Bank’s Environmental and Social Policies Prevention and fighting of prohibited practices 13 OFFICIAL USE

14 EBRD approach in public procurement
Procurement – an integral part of project risk management Minimisation of risks – Maximisation of success Coverage of the entire project cycle Procurement – part of project delivery strategy Balanced risk distribution Use of standard tender documents and internationally recognised contract terms and conditions Aim of evaluation – best value for money Evaluation factors usually are expressed in monetary terms The key to success – People The Bank provides assistance to the clients Prevention and fighting corruption 14 OFFICIAL USE

15 Opportunities within EBRD financed projects
OFFICIAL USE Opportunities within EBRD financed projects Municipal infrastructure Waterworks, pipelines, meters, pumping stations, wastewater treatment plants, incinerators, district heating networks, busses, trams, trolleybuses Transport Rail track maintenance equipment, locomotives, signalling systems, air traffic control and navigation equipment, motorways, management information systems, PMMR/OPRC Power and Energy Efficiency Power transmission lines, transformer substations, distribution control systems, power stations, meters, energy efficiency equipment, generation plants, management information systems Natural Resources Oil pipelines, gas pipelines, pumping stations, oil and gas terminals, storage reservoirs OFFICIAL USE 15 OFFICIAL USE

16 EBRD Project Cycle Procurement Opportunities Final repayment
Initiation Final maturity Concept review [Sale of equity] Structure review Repayments Final review Procurement Opportunities Disbursements Publication of Project Summary Document Board approval Signing Publication of Board approved Projects 16 OFFICIAL USE

17 Where are the goods and works opportunities?
OFFICIAL USE Where are the goods and works opportunities? Where to find information on opportunities check procurement.html check national press contact clients What to look for Project Pipeline General Procurement Notices Invitation for Prequalification or for Tender Invitation for Expression of Interest (Consultants) OFFICIAL USE 17 OFFICIAL USE

18 General procurement statistics 2014
OFFICIAL USE General procurement statistics 2014 172 contract placed for a total value of USD 1.57 billion EBRD financed USD 1.02 billion, clients and co-financiers the balance Largest contract (USD 110 million) “Construction and installation works, Vladivostok combined heat and power plant” Average contract value USD 8.8 million Public sector contracts awarded through EBRD open tendering - 85 per cent of the total contract value 68 contracts under Nuclear Safety funds for a total value of USD 118 million. 2,598 contracts for USD 188 million are TC funded consultants 11 complaints (on 2,838 contracts selected using the PP&R) OFFICIAL USE 18 OFFICIAL USE

19 Strategy for winning contracts
OFFICIAL USE Strategy for winning contracts Does your company meet the qualification criteria? IF not - Form JV; or explore sub- contracting opportunities. A register of potential tenderers who have purchased the tender documents is available from the client. After a prequalification, the list of prequalified firms can be found on the Bank’s web site Make sure to provide answers to all questions and submit all required documentation as per the tender requirements If you rely on a “parent company” for experience or financial muscles you have to include a parent company guarantee in the tender. Most successful firms in EBRD financed tender have a local partnership or establishment Review documents early and submit questions or issues in writing Respond to the GPN and build your knowledge early Read “Annex 1 - Guidance to Tenderers” of the Procurement Policies and Rules If unsuccessful, request a debriefing so that you know WHY you tender was not selected or rejected (Note that if you do not ask for information, you will not get it) OFFICIAL USE 19 OFFICIAL USE

20 OFFICIAL USE What can be achieved… OFFICIAL USE OFFICIAL USE

21 Our long-standing cooperation
OFFICIAL USE Our long-standing cooperation Relationship has enjoyed many years of successful cooperation - dates back to when the Bank was founded. Value of our joint investment has reached over 1.6 billion US dollars - USD 308 million of which is from Taiwanese investors Taiwanese authorities continue to be a significant provider of donor funds – with a total of 38.5 million US dollars provided through a bilateral Cooperation Fund - and via donations to various multi-donor accounts. Under the Trade Facilitation Programme, the EBRD works closely with Taiwanese banks and companies involved – 103 transactions worth USD 38.6 million since increasing trade turnover in the Bank’s regions Taiwanese counterparts have hosted nine technical visits for EBRD clients - starting back in 2009 with a delegation from Kiev – achieving significant demonstration impact and best practice potential All these areas of cooperation are a highly effective showcase for Taiwanese companies, their leading 21st century technological solutions, and their advanced management methods OFFICIAL USE OFFICIAL USE

22 謝 謝 Thank you very much For all further enquiries, please contact:
OFFICIAL USE 謝 謝 Thank you very much For all further enquiries, please contact: Thomas Maier Managing Director Infrastructure Business Group Tel: EBRD One Exchange Square London, EC2A 2JN UK OFFICIAL USE OFFICIAL USE 22


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