Slovenia: Danube River Basin Slovenia: Danube River Basin EBRD / GEF Environmental Credit EBRD / GEF Environmental Credit Facility Facility Mark Hughes Mark Hughes Principal Environmental Adviser, EBRD Principal Environmental Adviser, EBRD
Jan 08, 2018
Slovenia: Danube River BasinSlovenia: Danube River BasinEBRD / GEF Environmental Credit EBRD / GEF Environmental Credit
FacilityFacilityMark HughesMark Hughes
Principal Environmental Adviser, EBRDPrincipal Environmental Adviser, EBRD
ProjectProject Framework environmental credit facility for
reducing water pollution Aimed at industry, agriculture and smaller
municipalities within the Slovenian portion of Danube River Basin
EBRD up to EUR 45 million credit lines GEF USD 9.9 million grant
Key Project ComponentsKey Project Components
EBRD Framework Facility Euro 45m• Credit lines to local banks
GEF Grant (Inv and TA) USD 9.9m• Grants to sub-borrowers• Compensation to local banks• Environmental Expert• Technical Assistance provided by TMG BAS• Marketing and info dissemination
Key partiesKey parties Global Environment Facility (GEF) Local banks in Slovenia Sub-borrowers EBRD TMG – Slovenian BAS Programme FAO and Agribusiness Team Environmental Expert
Sub-projectsSub-projects Private or public sector Environmental eligibility confirmed by
Environmental Expert Credit assessment undertaken by
participating banks Loan amount per sub-project: no min, EUR 3
million max.
GEF grant moneyGEF grant money
Grants to sub-borrowers USD 6 million
Compensation to local banks USD 3 million
Environmental Expert USD 305,000
Technical Assistance to polluting entities BAS Programme
USD 540,000
Marketing and Info Dissemination USD 63,000
Leverage: GEF Grant – EBRD 1 : 5
Environmental ExpertEnvironmental Expert
Independent environmental consultant Responsible for:
– Drafting of standard formats– Checking projects against environmental eligibility
criteria– Confirming project completion– Monitoring of project performance– Production of reports
Donor financed programme to provide consulting advice to SMEs
Typical focus on aspects such as management, marketing and quality systems
For this facility BAS provides advice on developing water pollution solutions and structuring investment proposals
Turnaround Management GroupTurnaround Management GroupSlovenian BAS ProgrammeSlovenian BAS Programme
Notable FeaturesNotable Features Pilot project - replication potential Environmental focus and demonstration model Additionality of EBRD:
– Access to private sector (banks and companies)– Leverage 1:5– Ability to mobilise additional financial resources for environmental
projects– TMG/BAS programme
First private sector project in GEF’s focal area of international waters
Project ProcessingProject Processing
Participating Banks
Borrower
Env ExpertTMG BAS
EBRD
GEF
ConsultancyContractCredit Line Agreement
Project Brief
Eligibility CheckConfirm Completion
Loan AgreementAdvisory Services
Incentive paymentsAdministrative fees
Incentive payments
Current ActivitiesCurrent Activities Four participating banks have signed up to the
facility for a total amount of €37 million:– Volksbank-Ljudska Banka - €10 million
– Bank Austria Creditanstalt - €12 million
– Nova Ljubljanska Banka - €10 million
– Probanka - €5 million
15 sub-project disbursements, e.g. small municipalities, general manufacturing, services
Loans from €83,000 up to €3m max.
Current ActivitiesCurrent Activities Environmental Expert has appraised 33 sub-
projects BAS programme has complete 5 projects, 8
projects are in progress and 4 are awaiting signature.– Sectors – food and beverages, chemicals, paper,
textiles, services and municipalities
– Areas of assistance – pre-investment studies, feasibility studies, technology selection