technical assistance by eastern partnership trust fund ... · 11/18/2016 · technical assistance...
TRANSCRIPT
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Technical Assistance by Eastern Partnership Trust
Fund (EPTATF)
Yerevan
18 November 2016
European Investment Bank
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EIB Rural Framework Loan
The Eastern Partnership Technical Assistance Trust Fund (EPTATF) 1
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EPTATF
WATER TRANSPORT ENERGY URBAN SMES MULTI-
SECTOR
Geographical Coverage
Georgia
Armenia
Azerbaijan
Moldova
Ukraine
Priority Sectors
EPTATF at a Glance
Established in 2011
Objective - To improve the quality and development impact of EIB’s operations
EPTATF is aligned with the European Neighbourhood Policy and the high level objectives of the EIB in the Eastern Partnership countries: ₋ foster democratic development and good governance, ₋ promote regulatory reform and administrative
capacity building, ₋ reduce poverty ₋ support economic growth.
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EPTATF Funding and Scope
Use of Funds Contributors
Contributor Amount (EUR m)
Austria 11.00
France 0.80
Latvia 0.10
Poland 1.00
Sweden 11.55
Germany 1.82
Lithuania 0.15
United Kingdom 1.37
Totals 27.789
Identification
E.g. sector and
master plans
Preparation
Pre-feasibility or
feasibility studies;
technical, economic
and financial
appraisals, including
environmental &
social impact
assessments
Implementation
Strengthening project
management, skills
and capacity building
in e.g. technical,
procurement,
financial and
organizational
functions.
Technical Assistance 1
Capacity Building and Other Regional Support 2
Institutional capacity-building programmes,
e.g. trainings and secondments.
For additional information, please visit: http://www.eib.org/projects/regions/eastern-
neighbours/instruments/technical-assistance/index.htm
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EPTATF - Operations
Distribution of TA funds between beneficiary countries
Distribution between sectors
EPTATF operations per country
(amounts approved)
EPTATF operations per country
(operations approved)
Insitutional, 20%
Environment, 35%
Transport, 26%
Energy, 10%
SMEs, 10%
Sector distribution
(amounts approved)
EPTATF operations per country
(operations approved)
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2
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0
2
4
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Armenia Azerbaijan Georgia Moldova Ukraine
Georgaphical Distribution, Secondees and Trainees
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EPTATF Results
Main Results
TA Operations Support EIB Loans Amounting to EUR 1.7 billion
11 Secondees and 21 Trainees are supported by the Capacity Building Programme
Status
Currently, 8 Secondees are supported by the Programme and 24 Secondees and Trainees have
already successfully completed it.
23 TA operations amounting to EUR 24.3m have been approved since 2011
18 TA operations supporting project preparation and implementation
2 regional studies in energy efficiency and SME support
Internship and Secondment programmes
Cross-regional awareness raising (dissemination window) and TA acceleration
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EPTATF in Armenia
M6 Interstate Road
EUR 1,000,000
Water sector assets valuation and registration
support EUR 700,000
Loan implementation
support EUR 500,000
Rural Framework Loan
EUR 1.500,000
Finalized: Feasibility Study, Preliminary Engineering, Project Scoping, Detailed Engineering Design, ESIA, Bidding Documents
EIB loan of EUR 51m signed
Completed and Fully Disbursed
The aim is to assist Government of Armenia in implementing the water sector reforms
(new PPP transaction) through valuation and registration of fixed assets
EIB Loans in the past amount to EUR 37m; additional EUR 30m loan planned for 2017
In Progress
The aim is to promote the development of the private sector by supporting financial
intermediaries to develop a SMEs credit portfolio as well as to improve SMEs
“Financial Literacy”
EIB Loan for EUR 50m is fully disbursed; another EUR 50m loan has just been signed
In Progress
In Progress
Supporting the Promoters in preparation and implementation of specific sub-projects
to be financed by the Loan
EIB Rural Framework Loan of EUR 50m
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The Eastern Partnership Technical Assistance Trust Fund (EPTATF)
EIB Rural Framework Loan 2
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Background
The dominant sector of the Armenian economy
Contributes 20% of GDP, 40% of employment and 28% of total exports in 2015
Dating back to Soviet times
Highly inefficient and at the end of its economic life
Inadequate for the smallholder agriculture prevailing in the country
High levels of water losses, low value crops and little output for farmers
Many irrigable areas not effectively irrigated
Donors focusing almost exclusively on rehabilitation of primary and secondary
irrigation canals thus not ensuring all potential efficiency gains are passed on to
farmers through rehabilitation of tertiary canals and on-farm systems
EIB EUR 50m Rural Framework Loan aims at improving irrigation and other rural infrastructure in several regions of Armenia: – reducing water losses caused by ageing infrastructure and outdated technologies – increasing the resource-efficient production of quality agricultural produce – ensuring finance for the last mile investments required to bring benefits of water savings to the on-farm point of application
Agriculture – Dominant Sector
Inefficient and Old Irrigation Systems
Donors Focusing on Main
Infrastructure
EIB Support – Innovative Approach
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Tertiary and on-farm
irrigation systems
Primary and secondary
canals
Loan proceeds for WUAs
and farmers infrastructure
Loan proceeds for
public infrastructure
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EIB Rural Framework Loan
BORROWER
Ministry of Finance
IMPLEMENTING ENTITIES
Water Sector PIU & RAED PIU
Loan
PUBLIC
INFRASTRUCTURE
Repayment by WUAs /farmers
to Ministry of Finance
“Payback mechanism”
To be potentially supported by a
guarantee “PRIVATE”
INFRASTRUCTURE Farmers & Water Users Associations
Loan reimbursement
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The EPTATF Technical Assistance
Milestones
Deliverables
EUR 1.5 million approved by EPTATF
Estimated start of the assignment February 2017
Estimated end of the assignment January 2020
Environmental and Social Management Plan and
Resettlement Framework Policy
Project Implementation and Procurement Manuals
Sub-project eligibility criteria, Selection Plan and Call for
Sub-project Proposals
Feasibility assessment and prioritization of the sub-
projects
Concept designs of main, tertiary and on-farm irrigation
schemes investments
Review and improvement of detailed engineering designs, tender documentation and environmental and social
management plans
Progress reports demonstrating engagement
and capacity building of beneficiaries (WUAs and
farmer groups) in the use and maintenance of the new
irrigation systems
Enhanced project implementation, monitoring,
assessment and rating of quality of works
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Advantages and Value Added of the project
Innovative Approach
Cultivation of Higher
Value Crops
5.000 ha of Agricultural
Land
Extended Repayment
Period
New System Operation
Support
Group Procurement
Less Cost
Advantages and
Value Added
Reduction of water losses improve water availability throughout the production cycle enabling the cultivation of higher value crops
Support upgrades to irrigation infrastructure servicing approximatively 5.000 ha of agricultural land.
Maximise the impact on small and medium agricultural producers
Ensure potential efficiency gains from system upgrade are passed on to the farmer
Support rehabilitation of main and secondary irrigation canals as well as investments in tertiary and on-farm systems
Farmers are expected to repay their contributions over an extended period of time
Two PIUs will procure the equipment and benefit from significant cost reductions for individual land plots
Farmers will benefit from project implementation and new system operation support
Introducing an innovative approach to addressing urgent rehabilitation needs of outdated and inefficient irrigation systems
PIUs and beneficiary Water Users Associations ensuring successful transfer and adoption of the new technologies to farmers
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Thank you for your attention!
Marion Hoenicke
Head of Division Lending Operations in Neighbouring Countries, Banks
Phone: (+352) 4379-87406
email: [email protected]
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg.
Violaine Silvestro
Senior Loan Officer Lending Operations in Neighbouring Countries, Public Sector East
Phone: (+352) 4379-84809
email: [email protected]
European Investment Bank
98-100, boulevard Konrad Adenauer
L-2950 Luxembourg.