Developing Euro-Asian Transport LinkagesDeveloping Euro-Asian Transport Linkages

Christopher Ousey, Senior Banker, Christopher Ousey, Senior Banker,

Infrastructure Business Group, EBRD Infrastructure Business Group, EBRD

Almaty 9 March 2004Almaty 9 March 2004

1. EBRD’s Priorities1. EBRD’s Priorities

Establishing Articles require the Bank to promote:

•the transition towards open market-orientated economies

•private and entrepreneurial initiative

•improved investment climate

•good corporate governance

•environmentally sound and sustainable development

1. EBRD’s Priorities1. EBRD’s Priorities

EBRD is not a policy-driven lender

EBRD must above all be convinced there is a good business case for a project in which it will invest

1. EBRD’s Priorities1. EBRD’s Priorities

•EBRD’s projects are typically focussed on only one country

•EBRD may finance one link in a larger transport chain …

• but there must be a good business case for the project on a “stand-alone” basis.

2. EBRD and the transport Sector2. EBRD and the transport Sector

So EBRD can contribute to building improved transport linkages by:

providing finance for projects with a good business case

helping to promote transition at a sector level.

1. EBRD’s Priorities1. EBRD’s Priorities

Transition impact, eg:

1 Greater competition in the project sector

2 More widespread private ownership

3 Institutions, laws and policies that promote market functioning and efficiency

4 Standards for corporate governance and business conduct

2. EBRD and the transport Sector2. EBRD and the transport Sector

EBRD provides a range of financial products:

Debt Equity Guarantees Treasury

Sovereign senior debt for infrastructure

& rehabilitation & pre

privatisation costs

2. EBRD and the transport Sector2. EBRD and the transport Sector

Sovereign Private Sector

Public Sector non-sovereign guaranteed senior debt for public sector entities with

adequate revenue flows and balance sheets. New infrastructure,

rehabilitation and pre-privatisation costs

Senior debt to the Private Sector for transport-related

commercial development. Debt

finance for acquisition of businesses to be

privatised. Subordinated debt

Debt

3. What does EBRD need to be able to 3. What does EBRD need to be able to fund a project?fund a project?

Transition Rationale

Procurement in line with EBRD’s guidelines

Environmental impact assessment

Business plan

Public Sector

3. What does EBRD need to be able 3. What does EBRD need to be able to fund a project?to fund a project?

Sound Financial Projections & Business Plan

Solid contractual framework

Demonstrable transition impact

Sound environmental basis

Private Sector

EBRD Project EnquiriesTel: +44 20 7338 6282 Fax: +44 20 7338 6102

Web site: www.ebrd.com

Main contactsMain contacts

Riccardo Puliti, Team Leader+44 20 7338 7379pulitir@ebrd.com

Christopher Ousey, Senior Banker+7 3172 580204

ouseyc@ebrd.com