Project financing in the water sector

Transcription

1 Soft loan financing Project financing in the water sector Ductile Iron Systems trm.at

2 2 Soft loan financing TRM Tiroler Rohre GmbH

3 Soft loan financing Tiroler Rohre GmbH develops, produces and markets high-grade ductile cast iron systems for transporting drinking water and sew-age. The company has its site in the heart of Europe to enable short distances for transport and promtly provide advivce and assistance with our field managers and appllication engineers. To complement our services, Tiroler Rohre GmbH offers project financing in particular situations. Austrian soft loan is part of our business. This financing instrument is available under particular conditions and in selected countries only. For instance: infrastructural projects like water supply systems or waste water projects in Moldova, Armenia, Georgia. Our experienced team of engineers, technicians and sales managers is ready to support you as a reliable partner. Soft loan conditions Soft loan financing is used in accordance with the soft loan policy of the Federal Ministry of Finance to assist Austrian exporters competing in international markets with the overall objective of fostering sustainable development in recipient countries. The financing is done in EURO. Soft loan financing is provided in the form of tied aid credits, i.e. it is restricted to the export of mainly Austrian goods and services. The maximum permissible foreign content (which means foreign content from third countries plus local costs) is limited to 50 % of the value of the contract. The OECD Consensus includes countries whose per capita GNI does not exceed the current limit of USD 4, Furthermore, only countries are soft loan able, which are explicitly defined as soft loan target countries. The OECD Consensus requires soft loans to have a concessionality level of at least 35 %. Soft loans for Least Developed Countries according to the UN Classification (LDC countries) must show a grant element of at least 50 %. Concerning soft loan eligible countries which are subject to the Sustainable Lending Initiative the grant element has to be furthermore in conformity with the requirements of the International Monetary Fund (IMF). In order to reach the before mentioned concessionality level, soft loan financing can be calculated only in the form of a pre-mixed credit (this is a loan with a low interest rate, a grace period and long repayment terms). Pre-mixed credit This is a soft loan of 100 % of the project value to be financed, with a low interest rate supported by the state, a grace period, and a long repayment term. Amount Project value 100 % Soft loan Concessionality level of at least 35 % according to OECD arrangement Repayment period TRM Tiroler Rohre GmbH Soft loan financing 3

4 Soft loan financing Currently eligible soft loan countries In accordance with the OECD Consensus and the soft loan policy of the Federal Ministry of Finance the following countries are currently eligible for soft loans: In brackets you will find the reference for the OECD country risk classification (cat 2 - cat 7), the UN classification as LDC (Least Developed Countries) as well as the IWF calculation method, if relevant. Western Balkans Black Sea Region Asia Central and South America Kosovo (cat 7) Armenia (cat 6) India (cat 3) El Salvador (cat 4) Georgia (cat 6) Mongolia (cat 5) Guatemala (cat 5) Moldova (cat 7) Vietnam (cat 5) Honduras (cat 6) Subsahara* North Africa Africa Cameroon (IWF, cat 6) Egypt (cat 6) Cape Verde (cat 6) Kenia (IWF, cat 6) Morocco (cat 3) *) Max. 2 projects per company in this region. Effective date ( Pre-mixed credit terms and conditions according to OECD cat 6 and cat 7 Terms and conditions valid for 100 % of the refinanced project value. CAT 6 Terms of contract 21-year soft loan, 34 half-yearly instalments, the first being due after a 5 year grace period Interest rate 0 % p.a. Concessionality level 35 % Reduced guarantee charge 1,000 % p.a. Extend of the guarantee charge reduction (indicative) 8,330 % of the refinanced project value * CAT 7 Terms of contract Interest rate 21-year soft loan, 34 half-yearly instalments, the first being due after a 5 year grace period 0 % p.a. Concessionality level 35 % Reduced guarantee charge Extend of the guarantee charge reduction (indicative) 1,100 % p.a. 14,580 % of the refinanced project value * * ) The calculation is based on a 2-year drawing period. Guarantee charge starting as of zero point. Effective date ( Development-policy motivated reduction of the guarantee charge (until further notice): 40 % of the up-front guarantee charge. Development-policy motivated reduction of the guarantee charge (until further notice): 50 % of the up-front guarantee charge. 4 Soft loan financing TRM Tiroler Rohre GmbH

5 Soft loan financing Soft loan procedure Soft loan procedure with direct negotiations Federal Ministry of Finance DEBTOR BILATERAL FRAME CONTRACT FINANCING AGREEMENT Federal Ministry of Finance AUSTRIA DONATOR AUSTRIAN BANK (Commercial) OeKB AUSTRIA PROMESSE Municipality (responsible authority) OBLIGOR SUPPLY CONTRACT General contractor TIROLER ROHRE GmbH Austrian partners, consultants with maximum 50 % share of the debtor country. The financing agreement is signed between Austrian Commercial Bank and foreign debtor (Federal Ministry of Finance). The supply contact between Austrian general contractor and the Municipality (responsible authority) is an integrated part of this financing agreement. The Austrian general contractor will apply with the project at OeKB. After successful check and review by the relevant commisions, OeKB will issues a socalled PROMESSE to the Austrian general contractor, promising the financing of the applied project to the contract and in case to a concluded bilateral loan agreement. Application for garanties G1G3 and refinancing the Promesse has to be done by the contractors before signing the supply contract. Austrian law supports direct negotiations (no tender procedure required); the obligor can award the contract directly. TRM Tiroler Rohre GmbH Soft loan financing 5

6 Soft loan financing Typical time schedule Application and check of the project at OeKB App. 1 month Preparation of supply contract App. 1 month Mutual preparation of the project concept App. 3 months Up to award of promesse App. 2 months Negotiations between Obligor and Debtor parallel Finance agreement App. 2 months Start of project App. 3 months Final report (function of the project) individual time period In our experience a soft loan project can be executed in 9 24 months. Our references Customer Project Year Soft loan financing for water supply system (BIH) Municipality GRUDE Municipality POSUŠJE Municipality KISELJAK Municipality BILISHT Municipality PESHKOPIA Expansion of water supply system for whole municipal area Total project volume: 2.3 Mio. Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, final report Soft loan financing for water supply system (BIH) Expansion of water supply system for whole municipal area Total project volume: 2.5 Mio. Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, final report, WWTP concept Soft loan financing for water supply system and sewage system (AL) Construction of a water supply system and sewage system for whole municipal area Total project volume: 5.0 Mio. Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, WWTP concept (40,000 PE) and sewer system of Kiseljak, final report Soft loan financing for water supply system and sewage system (AL) Construction of a water supply system and sewage system for whole municipal area Total project volume: 7.5 Mio. Preparation of soft loan application, detailed design, layout and hydraulic caluculations, construction works, quality check, leak tests, technical consulting, supervision, final report Soft loan financing for water supply system (AL) Construction of a water supply system based on 2 springs in north-west of municipal area Total project volume: 4.0 Mio. Preparation of soft loan application, detailed design, layout and hydraulic caluculations, construction works, quality check, leak tests, technical consulting, supervision, final report ongoing 6 Soft loan financing TRM Tiroler Rohre GmbH

7 Soft loan financing - Our References Water supply system Municipality of GRUDE (Bosnia & Herzegovina): The expansion of the water supply system of the whole region has highest priority for the municipality of Grude. About 35 km of water pipes and fittings therefore had to be bought. Fields of responsibility: Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, final report Total length of installed pipes: Dimension of installed pipes: PE pipes diameter Ductile cast iron pipes diameter 26.4 km mm mm Total volume of investment: 2.3 Mio. Pipe delivery 2.1 Mio. Engineering 0.2 Mio. TRM Tiroler Rohre GmbH Soft loan financing 7

8 Soft loan financing - Our References Water supply plant Municipality of POSUŠJE (Bosnia & Herzegovina): A lake consisting of drinking water is situated in the municipality of Posušje. This lake has a storage volume of approx. 5.0 Mio. m³. It lies in the mountains in approx. 900 m above sea level. Fields of responsibility: Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, final report, WWTP concept A transmission pipeline pipe diameter 500 mm was built in 2008 which leads from the lake to the highlevel tank in Posušje. In the future the whole municipality area should be supplied with drinking water by this pipeline. Total volume of investment: 2.5 Mio. Pipe delivery 2.3 Mio. Engineering 0.2 Mio. The main supply system of the municipality will be extended by a soft loan financing project. The system was also updated to the best available technology to offer the population an excellent drinking water system. At the same time the WWTP concept concerning the Posušje waste water treatment plant was prepared for the soft loan project. Total length of installed pipes: Dimension of installed pipes: Ductile cast iron pipes diameter 26.3 km mm 8 Soft loan financing TRM Tiroler Rohre GmbH

9 Soft loan financing - Our References Water supply and waste water system Municipality of KISELJAK (Bosnia & Herzegovina): The association of municipalities of Kiseljak is located in Central-Bosnia, approx. 40 km from Sarajevo. Kiseljak needs, just like many municipalities in this area, a working water supply plant and a sewer system. Total volume of investment: 5.0 Mio. Total length of installed pipes: 31.7 km For the villages Fojnica and Kiseljak an expension of the water supply system was designed. Beside this project, it was planned to realise a sewer system extending from the area of Lepenica to Kiseljak. The preparation of the WWTP concept and the sewer system of Kiseljak was also part of the soft loan financing. Fields of responsibility: Preparation of soft loan application, local construction supervision, quality check, technical consulting, supervision of leak tests, WWTP concept (40,000 PE) and sewer system of Kiseljak, final report. Dimension of installed pipes: PE pipes diameter Ductile cast iron pipes diameter Number of private connections: 3,600 households mm mm TRM Tiroler Rohre GmbH Soft loan financing 9

10 Soft loan financing - Our References Water supply and waste water system Municipality of Bilisht (Albania): Bilisht is a town in the south-east of Albania at the border to Greece and the main settlement of the district of Devoll. Focus of this project was the rehabilitation and enlargement of the existing water supply for Bilisht and extension to the suburban area Bitincke. The existing supply system, which was constructed around 1970, didn t meet current technical and hygienic requirements. It was realized as a turnkey project where Tiroler Rohre GmbH was general contractor. Total volume of investment: 7.5 Mio. Pipe delivery 2.6 Mio. Engineering 0.7 Mio. Construction works 4.2 Mio. Total length of installed pipes: 50 km Fields of responsibility: Preparation of soft loan application, detailed design, layout and hydraulic caluculations, construction works, quality check, leak tests, technical consulting, supervision, final report Dimension of installed pipes: PE pipes diameter Ductile cast iron pipes diameter 50 mm mm 10 Soft loan financing TRM Tiroler Rohre GmbH

11 TRM Tiroler Rohre GmbH Soft loan financing 11

12 Contact TIROLER ROHRE GMBH TRM is a full member of EADIPS /FGR Innsbrucker Strasse Hall in Tirol Austria T F E office@trm.at 03/2016 Photos: istock, ÖGL, Tiroler Rohre, ZEK