project financing options - giz

23
Project Financing Options for Biomass and Biogas Energy Projects in the Philippines PEP Informationsworkshop Joachim Schnurr, GFA ENVEST Berlin, June 2012

Upload: others

Post on 04-Feb-2022

6 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Project Financing Options - GIZ

Project Financing Options for

Biomass and Biogas Energy Projects in the Philippines    

PEP Informationsworkshop

Joachim Schnurr, GFA ENVEST

Berlin, June 2012

Page 2: Project Financing Options - GIZ

The Financing Advisory Instrument of BMWi’s EnEff & RE Export Initiatives

Modul 1: National and International

Financing Support

Modul 2: Financing Support

by German Institutions

Modul 3: Carbon Finance

Modul 4: Matching and

Innovative Financing Concepts

Target Group: German Trade Delegation Members and potential Business Partners in the Host Country

BMWi‘s Financing Advisory Instrument

Tools and Methods: Study on Financing Mechanisms • Presentation • Counselling

Page 3: Project Financing Options - GIZ

Modul 1:

International Financing Support for

Renewable Energy Projects

Page 4: Project Financing Options - GIZ

International Support Instruments Examples of financing support instruments and programs

USAID’s  Green  

Technology  Ini5a5ve  

CTI’s  Private  Financing  Advisory  Network    

ADB’s  Clean  Energy  Program  

EIB  Energy  

Efficiency  and  Renewable  Energy  Loan  

World  Bank  Clean  

Technology  Fund  

GEEREF  Global  EnEff  and  RE  Fund    

Interna'onal  

Page 5: Project Financing Options - GIZ

The Climate Technology Initiative’s Private Financing Advisory Network - CTI PFAN -

Problem: Lack of sufficient Public Funds to make an impact on Technology Transfer for Climate Change

Need for an Involvement of the Private Sector PFAN seeks to bridge that Investment Gap ­ Acts as a broker between the money and the projects ­ Strengthens the capacity of the project developers to present their projects

in a way that investors and financiers can readily understand ASEA One Power Corporation

Banga, Aklan, the Philippines Project Type: Biomass Investment Secured: USD 30 million Energy Capacity: 12 MW GHG Mitigation: 40,000 tons/year

Solutions Using Renewable Energy (SURE) Rosario, La Union Province and Cagayan de Oro, Mindanao, the Philippines (2 projects) Project Type: Biomass Investment Secured: USD 16.6 million Energy Capacity: 6.8 MW

Page 6: Project Financing Options - GIZ
Page 7: Project Financing Options - GIZ

CTI  PFAN  Services  

Page 8: Project Financing Options - GIZ

Modul 2: Support

by German Institutions

Page 9: Project Financing Options - GIZ

Overview – German Support Instruments Various financial and technical support instruments available to foster Renewable Energy investments

Energy  Efficiency  Project  /  Investments  with  German  par'cipa'on:  •   technology  export    •   or  direct  involvement  

Export  &  Trade  Finance  

Investment  Support  

Export  Credit  Agency      

Project    Support  Instruments:  •   PPP  projects  •   Feasibility  Studies  •   Climate  Partnerships  with        private  sector  

Page 10: Project Financing Options - GIZ

Export Finance – Buyer Loan Main lending instrument in export business is the so-called buyer loan

Exporter  

Export  Finance  Bank  

Importer  /  Buyer  

Local  /  Importer’s  

Bank  

1.  Export  Contract  

2.  Loan  Agreement  

3.  Export  Goods  or  Services  

4.  Export            Contract          Payment   5.  Loan  

       Repayment  

Usually covered by an export guarantee provided by official export credit insurance

Page 11: Project Financing Options - GIZ

KFW IPEX – Export Financing

Target  Group  &  Eligibility  

•   German  Exporters  and  Foreign  Buyers  of  German  Exports  –  Goods  and  Services  •   Financed  are  exports  insured  via  HERMES  Credit  Cover  (not  condi5onal)  •   Substan5al  propor5on  of  German  technology  and  service    

Terms  and  Condi5ons  

•   Loan  volume  up  to  25  Mio.  EUR  /  max.  up  to  85%  contract  value  •   Individual,  case-­‐by-­‐case  decision  on  interest  rates  •   Maturity:  minimum  4  years  

KfW IPEX-Bank provides project finance and offers trade and export finance.

Applica5on  •   Applica5on  for  Supplier  Credit  at  every  German  Bank  Ins5tute  •   Applica5on  Buyer  Credit  turn  to  KfW  IPEX-­‐Bank  GmbH      E-­‐Mail:  info@kfw-­‐ipex-­‐bank.de    Internet:  hap://www.kfw-­‐ipex-­‐bank.de    

Small  Ticket  Europe  

•   Export  Finance  for  Small  and  Medium  Companies  •   Small  Export  Loans  0.5  to  5  Mio.  EUR  with  maturi5es  ranging  from  2  to  5  years  •   Informa5on:  [email protected]    

Page 12: Project Financing Options - GIZ

AKA Export Finance Bank Customized financing and processing of international trade-finance transactions

Buyer  and  Supplier  Credit:  •   Up  to  85%  of  project  costs  •   Loan  volume  >500.000  EUR  •   Medium  to  long-­‐term  maturity  •   Semi-­‐annual  instalment  

AKA  Bank: [email protected]

Advantages  for  the  exporter:  •   Immediate  payment  on  delivery  •   Costs  of  financing  to  be  borne  by  the          buyer    

Advantages  for  the  importer:  •   The  export  transac5on  is  supported  by  an          aarac5ve  financing  proposi5on  •   Long  term  financing  for  low  volume  transac5ons  •   Preserva5on  of  local  credit  limits  

Page 13: Project Financing Options - GIZ

Export Credit Cover Euler Hermes Export Credit Cover protects German Exports against payment defaults and cash losses, due to: Political Risk and Economic Risks

Eligibility  

•   Export  of  goods  and  services  and  structure  financing  /  project  financing  •   None-­‐marketable,  but  jus5fiable  risks  abroad  •   Special  focus  on  small  and  medium  enterprises  •     No  minimum  export  value  

Terms  and  Condi5ons  

•   Variable  maturity  –  for  energy  efficiency,  renewable  energies  up  to  18  years  •   Flexible  redemp5on  payment  possible  –  e.g.  annuity  •   Administra5ve  fee  +  premium  •   Premium  depends  on  country  ra5ng,  credit  period,  creditworthiness  of  buyer  

Page 14: Project Financing Options - GIZ

Export Credit Cover Instruments:

Manufacturing  Risk  Cover  

Supplier  Credit  Cover  

Buyer  Credit  Cover  

Construc5onal  Works  Cover  

Cover  of  Project  Financing  and  Investments  

Guarantees  

Contact: Phone +49 (0)40/8834 9000 • Email: [email protected]

Page 15: Project Financing Options - GIZ

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

A partner for German private-sector companies investing in developing and emerging-market economies.

Project-­‐specific  mezzanine  finance  

Variable  equity  par'cipa'on  in  the  company  in  the  investment  country  –  minority  stake  with  clearly  defined  exit  strategies  

Long-­‐term  loans  between  4-­‐10  years  maturity,  max.  25  Mio.  EUR  

Guarantees  –  e.g.  risk  sharing  with  local  bank  

DEG  Instruments    

Contact:  Phone:  +49(0)221  4986-­‐0  –  Email:  [email protected]      

Page 16: Project Financing Options - GIZ

DEG – Financing of Feasibility Studies

Target  Group  

Financial  Support  

Requirements  

Applica5on  

SMEs  located  and  opera'ng  within  the  EU  with  a  turnover  of  up  to  500.  Mio  EUR  

DEG  provides  a  up  to  50%  of  the  feasibility  study  cost’s  –  upper  limit  200.000  EUR  

Prepara'on  of  realis'c  private  sector  investment    –  plausible  in  terms  of  successful  implementa5on  and  profitability  

Further  informa'on  and  applica'on  form    www.deginvest.de  -­‐  Phone:  +49  (0)221  4986  1128  –  Email:  [email protected]    

DEG uses funds from the Federal Ministry for Economic Cooperation and Development (BMZ) to co-finance feasibility studies

Page 17: Project Financing Options - GIZ

     

Modul 3: Carbon Financing

Page 18: Project Financing Options - GIZ

 •   Allowing  the  Annex  I  countries  to  meet  part  of  their  GHG  reduc5on        commitments  using  "Cer5fied  Emission  Reduc5ons“  (CERs)  from  GHG        reduc5on  projects  in  Non-­‐Annex  I  countries    •   CDM  allows  to  realise  emission  reduc5on    cost  effec5vely    -­‐  wherever  it  is        cheapest  globally    •   CDM  s5mulates  sustainable  development  and  emission  reduc5ons,  offers        industrialized  countries  flexibility  in  how  they  meet  their  emission  reduc5on          targets  

Carbon Financing – Clean Development Mechanism Based on the Flexible Mechanisms of the Kyoto Protocol: Instruments to Co-Finance Sustainable Energy Investments (GHG mitigation)

CDM  –  Clean  Development  Mechanism  

Page 19: Project Financing Options - GIZ
Page 20: Project Financing Options - GIZ

CDM in the Philippines A potential co-financing instrument, BUT…

Current  Kyoto  Mechanisms  applied  a]er  12/2012    but  capitalisa'on  of  CERs  problema'c  → e.g.  EU  intends  to  only  allow  CERs  of  Least  Developed  Countries  

Unclear  Climate  Regime  and  mechanisms  post  2012  → new  mechanisms  under  nego5a5on  allow  for  new  marke5ng  op5ons  for  emission    

 reduc5on  units    

Uncertain  CER  price  development  

Carbon  co-­‐financing  in  general  possible  post  2012    but  considerable  risks  involved  

South  Africa‘s  Grid  Emission  Factor:  0.65  t  CO2/MW  → co-­‐financing  poten5al  GHG  mi5ga5on  projects:  ≈  0.65  US-­‐$  cent  /  KWh  (5%  of  energy  price)  

Page 21: Project Financing Options - GIZ

Modul 4:

Innovative Financing Instruments

Page 22: Project Financing Options - GIZ

Innovative Financing Approaches based on CDM Emission Reduction Purchase Agreement (ERPA): Mitigate risk of CER capitalisation • CERs as equity to attain further financing

Project  Owner  /  SPV  with  low  equity  

Finance  Ins5tu5on  

Renewable Energy Project

CER  Buyer  with  good  credit  ra5ng  

Loan

Equity & Loan Sale of CERs via ERPA

CERs

ERPA as security

enables project to raise further loans

Page 23: Project Financing Options - GIZ

Thank you for your attention ! GFA ENVEST Joachim Schnurr +49 40 60306 800 [email protected] www.gfa-envest.com