Bank aus Verantwortung KfW Entwicklungsbank German Financial Cooperation with Mongolia Berlin, April 22nd 2013
Bank aus Verantwortung
KfW Entwicklungsbank
German Financial Cooperation with Mongolia
Berlin, April 22nd 2013
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60 years of KfW Financing with a public mission
› Promotional bank of the Federal Republic of Germany
› Founded in 1948 as Kreditanstalt für Wiederaufbau
› Shareholders: 80% Federal Republic, Headquarters: Frankfurt am Main Branches: Berlin, Bonn and Cologne
› Representative offices: around 70 offices and representations worldwide
› Balance sheet total at end 2011: EUR 494.8 billion
› Financing volume 2011: EUR 70.4 billion › Around 4,763 employees (2011) › Best rating: AAA/Aaa/AAA
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A bank with a wide array of functions
We promote development
Promotion of developing and
transition countries
International businessWe promote Germany
Promotion construction
of new housing and modernisation
as well as education
Promotion SMEs, business founders,
start-ups
Financing municipal infrastructure
projects and global loans Germany
agency business for Federal
Government
Domestic promotionWe ensure
internationalisation
International project and
export finance
Promotion of environmental and climate protection
Business Area Mittelstandsban
k
Business Area Privatkundenban
k
Business Area Kommunalbank
Business AreaExport and Project
Finance
Business Area KfW
Development Bank/DEG
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Some key figures (2011)
EUR 28.2 billionEUR 13.1 billion
Portfolio of which KfW‘s own funds
450Staff
549 in 85 countriesOngoing projects
EUR 1.2 billionCommitments 2011
EUR 1.1 billionDisbursement 2011
EUR 5.6 billionPortfolio 2011
EUR 3.3 billion EUR 1.6 billion
Disbursements 2011 of which KfW‘s own funds
EUR 4.5 billionEUR 2.6 billion
Commitments 2011 of which KfW‘s own funds
6502,680 in 134 countries Ongoing projects
Staff (without local staff)
Development Bank
DEG
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KfW Development Bank and DEG Worldwide presence - over 70 representative offices
Tiflis
JerewanDamaskusAmman
Kampala
WindhoekPretoria
Lusaka
Skopje Ankara
KiewBelgradPrištinaSarajevo
Tirana
Berlin
Frankfurt
Istanbul
LondonBrüssel
Köln
Podgorica
Bonn
Juba
Kairo
Al-Bireh
Addis Abeba
Kigali
Rabat
Dakar
Accra
Ouagadougou
Jaunde
Bamako
Cotonou
Kinshasa
Niamey Manila
Baku Beijing
Jakarta
KabulIslamabad
Ulan Bator
HanoiDhaka
BishkekTaschkentDushanbe
BangkokPhnom Phen
KathmanduNeu-Delhi
Mumbai
Moskau
LimaLa Paz Brasilia
ManaguaTegucigalpa
Mexiko-Stadt
São Paulo
QuitoBogotá
Guatemala-Stadt
New York
Sanaa
Maputo
Daressalam
AntananarivoLilongwe
Abu Dhabi
Johannesburg
Nairobi
San Salvador
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German Financial Cooperation Products and their source of funds
Budget funds (subsidies)
Financial Cooperation (FC)
FC Development Loans
Mixed Financing Composite Loans
Reduced Interest Loans
FC Promotional Loans
Flexible terms near market rates
KfW market funds KfW
Regular FC grants & loans
Grants Concessional Loans
(IDA, Standard)
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German Financial Cooperation Products and their source of funds
German Government is able to offer through KfW Development Bank a broad range the of tailor-made loans depending on the type of purpose, project and the conditions in the respective sector. We are able to accompany different project or program types with financing solutions that suit its capacity and needs. Concessional Terms (all except Promotional Loans) are subject to provision of subsidies from German Government.
G
rant
IDA
- Lo
an
Development Loans
Mixed Financing
CompositeLoan
Reduced- Interest
Loan
Interest
rate
Stan
dard
Co
ndit
ion
Prom
otio
nal
Loan
co
mm
erci
al
term
s
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Budget funds
KfW funds
Reduced interest loans
Grant Loan
KfW Partner country
Grant reduces the interest rate for the partner country
i
Hedging of credit risk through German government guarantee lowers the interest rate for the partner considerably
Risk coverage
Guarantee of German government
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FC development loans – brief overview
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KfWIntergovernmental agreement
Loan agreement
guarantee
KS, PV,VA, BE, AK, SP
Budget funds
KfW funds
Disbursement
BMZ
Capital market BMZ
Foreign debtor
Foreign government
ECA / German
government
Debt service
Payment guarantee
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FC development loans – involved parties
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German Cooperation with Mongolia
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Energy Efficiency in Grid-Based
Power Supply
under way
New Program
Energy Efficiency
III (Transmission
and Substitution)
planned for 2014
Priority Area Energy Efficiency
EnergyEfficiency II
(TPP IV UB)
FC 8.5 Mio. EUR
under way
Energy Efficiency I
(TPP Darkhan)
FC 10.5 Mio. EUR
under way
Renewable Energy I
(Bogdyn Hydropowerpla
nt)
FC 6.1 Mio. EUR
under way
New Program
Energy and Environment
Darkhan(Energy
efficiency in TPPs)
planned for 2014
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Climate Change Adaptation and Preservation of
Biodiversity
ongoing
Program Biodiversity and
Adoption to Climate Change
11.5 Mio. EUR
planned for 2013
Priority Area Biodiversity
26.04.23
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Priority Area Energy Efficiency
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Energy Sector Programme I (2004 – 2013)
› Total Funding Volume 12.90 million IDA-Loan
› Programme Objectives Contribution to reliable DC supply in power plants and in substations during normal and emergency conditions;
Contribution to reliable automatic transfer of meter data from substations and power plants into the control centre
› Programme Measures Rehabilitation of DC supply systems in substations including supply of spare parts and corresponding staff training;
Establishment of new AMR system in CES including data collection equipment and interfacing, spare parts supply and corresponding staff training
› Target Area Central Energy System of Mongolia
› Project Executing Agency National Dispatching Center; National Transmission Company
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Renewable Energy Programme I (2006 – 2014)
› Total Funding Volume 6.10 million EUR Grant
› Programme Objective Improvement of DC supply system in Uliastai based on hydropower
› Programme Measures Rehabilitation of hydropowerplant Bogdyn;Rehabilitation of distribution grid Uliastai
› Target Area Uliastai, Zavkhan Aimag
› Project Executing Agency Ministry of Energy of Mongolia
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Energy Efficiency Programme I (2010 – 2014)
› Total Funding Volume 10.50 million EUR IDA-Loan
› Programme Objective Contribution to more efficient power supply in the city of Darkhan
› Programme Measures Modernization of TPP Darkhan including expansion of turbine house, supply and installation of new 35MW steam turbine and corresponding facilities; consultancy services
› Target Area Darkhan, Selenge Aimag
› Project Executing Agency Darkhan Thermal Power Plant Joint Stock Company
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Energy Efficiency Programme II (2012 – 2015)
› Total Funding Volume 8.50 million EUR IDA-Loan
› Programme Objective Improvement of energy efficiency and reliabilty of TPP IV; Reduction of specific coal consumption and specific emissions
› Programme Measures Modernization of TPP IV including supply and installation of new water treatment plant, RPM-regulated power unit, pipe cleaning systems, and consultancy services
› Target Area City of Ulaanbaatar
› Project Executing Agency Thermal Power Plant IV
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Outlook – Focal Area Energy Efficiency
› The Federal Ministry for Economic Cooperation and Development (BMZ) is planning further commitments for investments in the Mongolian energy sector in 2013 and 2014 to be implemented through KfW.
› 2013: up to 30 million EUR Development Loan (special funds from IKLU-facility) › 2014: up to 10 million EUR Standard Loan (regular country quota)
› New projects are being developed based on investment planning of Ministry of Energy of Mongolia and on focal area Energy Efficiency strategy of German BMZ.
› Use of funds envisaged for › Energy efficiency and environmental measures in Combined Heating Plants
(esp. Darkhan)› Energy efficiency and supply security measures in power networks
› Close cooperation between Ministry of Energy and German implementing agencies GIZ and KfW in project identification and preparation.
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Priority Area Biodiversity
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Biodiversity and Adoption to Climate Change
› Total Funding Volume 11.50 million EUR grant
› Programme Objective Strenghtening of Mongolian protected area system with special regard to climate change
Improvement of living conditions of local population
› Programme Measures Implementation of a competition based application mechanism for
› Development of key protected area infrastructure; Procurement of equipment for protected areas and regional training centres; Establishment of buffer zone funds; Support in preparation of related management plans
› Target Area Mongolian Protected Areas
› Project Executing Agency Ministry of Environment and Green Development
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Outlook – Focal Area Biodiversity Steps already taken / yet to be taken:
› 2012 March: 11.5 million EUR commitment from German Government through KfW
› 2012 November: KfW appraisal mission to Mongolia› 2013 April: Appraisal report submitted to German Government
Next steps › Approval to be received from German Government› Draft Financing Agreement to be submitted to MED for review › Approval procedure on Mongolian side according to Mongolian regulations› Signing of Financing Agreement between Mongolia and KfW
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›Programmes outside Priority Areas
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Regional Transport Infrastructure Development To Improve Food Supply to Ulaanbaatar
› Total Funding Volume 11.50 million EUR IDA loan
› Programme Objective Improvement of living conditions and income situation of local population through improved acccess to key markets, health and social facilities;
Improvement of local food supply to the capital city.
› Programme Measures Construction of feeder roads from SoumCentres Bornuur, Jargalant and Batsumber to National Highway towards UB.
› Target Area Mainly Tuv and Selenge Aimags
› Project Executing Agency Ministry of Roads and Transport
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Environmentally Sound City Development Ulaanbaatar Waste Water Treatment Plant in Nisekh/ Yarmag › Funds for the project committed by German Government since
Government Negotiations 2008.› Project preparation currently on hold due to outstanding decision
from Mongolian Government regarding financing source.› Alternative use of funds within the agreed areal framework
(„reprogramming“) is possible. › Respective application needs to be submitted to German side.› Final decision from Mongolian Government is expected latest during
upcoming Intergovernmental Consultations.
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Future Mongolian German Financial Cooperation Introducing of Promotional Loan Financing – also possible outside
priority areas
Promotional loans are a financial instrument of German Development Cooperation to close the gap between concessionary and pure commercial lending. › Financing of infrastructure or equipment in the fields of transport, energy,
mineral resources, etc.› Not bound to the priority areas of cooperation; more flexible. But all projects
shall have a development impact.
› Borrower can be the Government, a sub-sovereign, like a municipality or a province, or a fully or partly state owned enterprise providing a state guarantee.
› Promotional loans are entirely refinanced by KfW market funds. Pricing on the basis of KfW’s low funding costs (AAA rating).
Bank aus Verantwortung
Thank you for your attention
KfW Bankengruppe KfW Office UlaanbaatarEva Schneider, Country Manager Sascha Stadtler, DirectorTel +49 69 7431 3648 Tel +976 70115952 Mob +49 162 1070429 Mob +976 [email protected] [email protected]