KfW German Financial Cooperation in BiH Donor Coordination

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					KfW activities in Bosnia and Herzegovina

Donor Coordination Forum
Sarajevo, March 2012
Stephan Leudesdorff; Director KfW office Bosnia and Herzegovina
KfW Bankengruppe
Financing with a Public Mission

                                  o Promotional Bank of the Federal Republic
                                      of Germany
                                  o   Founded 1948 as Kreditanstalt für
                                  o   Shareholders: 80% Federal Republic, 20%
                                      Federal States
                                  o   Headquarters: Frankfurt am Main,
                                      Branches: Berlin and Bonn
                                  o   Representative offices: about 60 offices
                                      and representatives worldwide
                                  o   Balance sheet total at end 2010: EUR 442
                                  o   4,530 employees (2010)
                                  o   Rating: AAA/Aaa/AAA

A Bank with a wide array of functions

Focal areas in Bosnia and Herzegovina

I           Financial Sector
      ●   Strengthening of the trust in the reliability of financial markets
      ●   Provide medium to long-term funding for micro, small and medium sized
          enterprises in urban and rural areas
      ●   Support to the market consolidation of the micro finance sector
      ●   Promotion of energy efficiency

II        Energy Sector
      ● Promotion of renewable energy
      ● Promotion of energy efficiency

III      Municipal infrastructure
      ● Sustainable solutions for water supply problems
      ● Advancements in the field of waste water collection and treatment

Financing sources for Bosnia and Herzegovina

I Contributions of the German Funds for Financial Cooperation (ODA):
    ●    Bilateral contributions of the German Government (grants, soft loans)
    ●    International funds of the German Government
    ●    KfW´s own funds

II Additional sources of financing:
     ●    European Commission (IPA funds)
     ●    Other donors (e.g. Swiss Government, Danish Government)
     ●    Funds of the Bosnian Government

KfW development bank in Bosnia and Herzegovina
Commitment of funds in the sectors

                                                Commitment of funds in the sectors (accumulated)




                            in Mio. EUR

                                                                                          Water/ waste water
                                                                                          Financial sector**



                                                2007    2008    2009    2010    2011

 *Loans signed only; third party funds not included
**For the financial sector only active loans included

Financial Sector

I    Objectives:
     ● Strengthening of the intermediaries for the promotion of economic
        development in Bosnia and Herzegovina

II   Funds:
     ● Guarantees and credit lines for local commercial banks and microfinance
     ● Providing TA to the partner institutions
Overview of KfW‘s contribution to the financial sector in
Bosnia and Herzegovina

I EFBH (European Fund for Bosnia and Herzegovina)
   ● Virtual fund funded by various sources (e.g. Danish Government, BiH Government)
     Mother of all refinancing funds in Balkan
   ● Contributed amount: €19 million

II Credit Guarantee Fund (CGF)
    ● Guarantee liabilities amounting to € 5.2 million

III Energy efficiency credit line
     ● Contributed amount: €12 million
Energy Sector

I    Objective:
     ● Rehabilitation & construction of power generation facilities with the objective of
        ensuring reliable, affordable and sustainable energy supply

II   Funds:
     ● Development loans for wind parks & HPPs
     ● Grant funds for the preparation of studies for the
        construction of new generation facilities
     ● TA
KfW’s energy projects in Bosnia and Herzegovina

I Rehabilitation of Hydro Power Plants (HPP)
   ● HPP Trebinje (3x57 MW), phase 1 (€2 m)
   ● HPP Trebinje (3x57 MW), phase 2 (€5 m)
   ● HPP Rama (2x80 MW) (€17 m)

II New Hydro Power Plants
    ● Run-of-river HPP Cijevna III (13 MW) on river Bosna (€ 50 m loan plus € 5 m IPA
    ● Pump storage power Plant Vrilo under preparation ( 64 MW) (up to € 100 m loan)
    ● Run-of river HPP Janjici (app. 12 MW) on river Bosnia; FS under preparation (up to €
      50 m loan)

III Energy Efficiency
     ● Distribution SCADA system (€17 m)
KfW’s energy projects in Bosnia and Herzegovina

IV         Wind parks
     ● Establishment of first wind atlas for BiH in 2009
     ● Wind park Mesihovina (close to Tomislavgrad) (44 MW), € 71 m loan, € 1m grant
     ● Under preparation: Wind park south part of RS, up to € 50 Mio loan
Municipal infrastructure: Water & wastewater

I    Objectives:
     ● Enabling financially and ecologically sustainable supply of potable water as well as
        wastewater collection and treatment
     ● Improving living standard of citizens
     ● Protecting natural resources

II   Funds:
     ● Development loans and grants for the municipalities
     ● Support in the area of structural changes (accomp. measures)
     ● Grants for the development of feasibility studies
     ● Harmonization of the activities with local and external donor agencies
         Joint preparations and co-financing projects with EC and other donors, in
         particular Swiss and Austrian Government
KfW’s water projects in Bosnia and Herzegovina

I.     Kakanj
●      Rehabilitation of urban water supply, € 4.3 m; project completed

II.    Program „Rehabilitation of Urban Water Supply and Sewerage Systems BiH I)
●      Participating municipalities: Kakanj, Bihac, Derventa and Kostajnica; € 14 m; project

III.   Bihac
●      Waste water treatment plant, € 17.5 m

IV.    Banja Luka
●      Urban water supply and sewage systems; € 14m plus € 4.5 m EU contribution

V.     Program „Rehabilitation of Urban Water Supply and Sewerage Systems BiH II“
●      Under preparation; participating municipalities: Tuzla, Zenica, Travnik; up to € 19.5 m
       plus a contribution from the Swiss government
Thank you for your attention!

Stephan Leudesdorff
Director KfW Office in Bosnia and Herzegovina
Phone: + 387 33 590 409
Mailto: stephan.leudesdorff@kfw.de

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