Financing Mechanisms to de- Risk Clean Energy Transactions ADB - PowerPoint PPT Presentation

Financing Mechanisms to de- Risk Clean Energy Transactions – ADB Products and Modalities

ADB Products • Debt • Equity • Technical Assistance • Third Party Funds 2 2

Third Party Finance Program: Sources of Funding for PSOD Active Funds (PSOD participation) Japan Fund for Established Funds the Joint Crediting (no PSOD participation) M echanism New Program 3 3

Climate Investment Funds Concessional finance for M ultilateral Development Banks: AfDB, ADB, EBRD, IDB, IFC and WB Forestry M itigation (low M itigation (middle Adaptation Project types income countries) income countries) Financing - Debt, equity, mezz - Debt, equity, mezz - Debt, equity, mezz - Debt, equity, mezz available - Concessional terms - Concessional terms - Concessional terms - Concessional terms - TA available - TA available - TA available - TA available Countries - Indonesia - M aldives - India - Bangladesh - Lao PDR - M ongolia - Indonesia - Cambodia - Philippines - Nepal - Nepal - Pacific Region: - Thailand - Pacific - Papua New Guinea Solomon Islands, - Vietnam Vanuatu - Samoa & T onga - Tajikistan ~$30m available Fully allocated Fully allocated Fully allocated Outlook 4 4

Climate Investment Funds PSOD is utilizing $355 million under six programs for 9 projects (to date) Approved Programs PSOD projects 1. Provincial Solar 4. Subyai Wind Thailand Private Sector 1 Renewable Energy 2. Theppana Wind 5. Northeastern Wind Program ($100m) 3. Central Thailand Solar (pending) Indonesia Private Sector 1. Sarulla Geothermal Geothermal Energy 2 2. Rantau Dedap Geothermal Program ($150m) IND/ INO/ PHI M ini-grids 3 and Distributed Power 1. Off-Grid Pre-Paid Solar Leasing Generation ($34m) PPCR Private Sector Set 4 1. Spice Value Chain Development Aside ($5m) Endorsed Programs - Sidecar facility for ACP 5 M ezzanine Finance for Climate Change ($35m) - Insurance for geothermal exploration 6 PHI Utility Scale Renewable Energy: Geothermal ($30m) 5 5

Canadian Fund for the Private Sector in Asia ADB – Canada bilateral concessional climate fund 1. INO: Sarulla Geothermal Project types Projects M itigation & 2. GEO: Adjaristsqali Hydropower supported Adaptation 3. INO: Toll Road Upgrade Financing - Debt only 1. INO: Indonesia Eximbank available - Concessional terms 2. M Y A: Renewable Energy for Nationwide Telecos - TA available TAs 3. REG: Climate Friendly Agribusiness Value Chains supported 4. INO: Toll Road Upgrade ADB DM Cs except: Countries 5. BHU: Hazelnut Value Chain - Azerbaijan - PRC 1. M Y A: M andalay Solar - Kazakhstan 2. SAM : Solar - Kyrgyz Republic Pipeline 3. VIE: Rice Value Chain (adaptation) - M alaysia 4. PHI: Solar Bataan - Thailand - Turkmenistan Outlook Funds due to run out December 2015 6 6

Established Funds These funds are operating, but no PSOD participation to date Japan Fund for the Joint Crediting M echanism M itigation only M itigation & M itigation, Project types (projects must be JCM- Adaptation Adaptation & eligible) Environment - Interest subsidy - Debt, Equity, M ezz - Debt, Equity, M ezz Financing (grant) for ADB - $15m cap per proj. - Commercial terms available loans - Concessional terms - Concessional terms (~10% of loan amount, - PPTA available (in some cases) capped at $10m) - PPTA available - Bangladesh ADB DM Cs ADB DM Cs Countries - Cambodia - Indonesia - Laos PDR - M aldives - M ongolia - M yanmar - Palau - Viet Nam Outlook 7 7

ADB J ICA Co-Financing Trust Fund New Co-Financing Program under Consideration • ~$2+ billion Fund Amount: • Infrastructure focus: Target Sectors: - Power generation (including renewables) - Energy and Resource E fficiency - Water, wastewater, waste management - Transportation Infrastructure - Telecommunication Infrastructure - Social Infrastructure (hospitals) - Gas transmission, storage & processing • Parallel – Co-financing on a pari passu basis with ADB The Program: • Non-parallel – Non pari passu financing, either alongside ADB financing or on a standalone basis (no ADB co-financing) • M ainly debt, some equity Instruments: • ADB DM Cs Eligible countries: • Preference for ASEAN countries • 5 years, with an option to extend for up to two 1-year periods Investment period: • Targeting IH2016 Start of operations: 8 8

Some of the Financing Considerations Business M odel Cashflows Borrower Ability to Development Service Debt Impact 9 9