Eurasian Development Bank as EFSD Manger Cherekaev Alexey, Head of - PowerPoint PPT Presentation

May 2016 Eurasian Development Bank as EFSD Manger Cherekaev Alexey, Head of EFSD Project Group

EDB in a Snapshot EDB’s mission is to facilitate, through its investment activity, the development of market economies , economic growth and the expansion of trade and other economic ties in its member states Fast facts  Established in 2006 by Russia and Kazakhstan  Member-states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan  Headquarters: Almaty, Kazakhstan  Authorised capital is over US$ 1.5 billion  Manager of the Eurasian Fund for Stabilization and Development (EFSD) 2

EFSD in a Snapshot EFSD mission is to help member countries overcome the consequences of global financial and economic crisis , to ensure their long-run economic stability and to foster economic integration Fast facts  Established in 2009  Member-states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan  Fund size is about US$ 8.5 billion  Managed by EDB  Provides Financial credits and Investment loans  The main function of the EFSD is financing of macro stabilization programs 3

EFSD Governance  Supreme decision-maker  Ministers of finance of member countries EFSD Council  Decisions on the use funds and other activities  MOF Department Directors  Preliminary appraisals of projects and documents for the Council of Experts EFSD Council  Recommendations and draft decisions of the EFSD Council  EFSD Managing board  Preliminary appraisals of projects and documents for the EFSD Manager EFSD Council (EDB)  Recommendations and draft decisions of the EFSD Council 4

EFSD Financial Instruments Financial Credits Investment Loans Availability of funds: Availability of funds:  only to governments  to governments and companies  for a limited number of specific policy  for large projects contributing to economic actions over a specified period of time and social stability and integration  for programs contributing to economic and Minimum amount: social stability, development, fiscal  US$ 30M for countries with GNI per capita sustainability and integration over US$ 5000 Minimum amount:  US$ 5M for countries with lower GNI  US$ 10M Participation in projects: Requirements:  any form used in international practice, except of equity participation  policy implementation should be measured 5

EFSD Current Investment Projects Key sectors:  Road  Power  Agriculture construction generation Major Projects: Project Country Sector Commitment Agricultural machinery supplies Kyrgyzstan Agriculture US$ 20M Rehabilitation of Bishkek-Osh road, Kyrgyzstan Road US$ 60 M Phase IV construction Construction of «North-South» Armenia Road US$ 150M transport corridor, Phase 4 Construction Rehabilitation of Kambarata HPP Kyrgyzstan Power US$ 85M generation Rehabilitation of Toktogul HPP, Kyrgyzstan Power US$ 70M Phase 2 generation Irrigation System Modernization Armenia Agriculture US$ 40M Project 6

Investment Loans Decision Making Process Preliminary application Potential Borrower Preliminary appraisal EFSD Manager (EDB) Approval of preliminary application EFSD Council EDB Manager’s appraisal EFSD Council of Experts Decision on Provision of Fund Resources EFSD Council Signing of Credit Agreement EDB Project Implementation Borrower EFSD, Council of Monitoring & Evaluation Experts, EFSD Council 7

EFSD Procurement Policy  Approved in 2013  Allows use of major IFIs procurement policies during investment project implementation  Under cofinanced projects procurement policies of WB and ADB are used  EDB engages WB for procurement management and supervision under RAS contracts 8