Department of Municipal Debts & Securities Odessa City Council UKRAINE CARBON MARKET INSTRUMENTS TO URBAN DEVELOPMENT Barcelona, Spain May 26-29, 2009 Tel: +38 (048) 784-0310 Fax: +38 (048) 784-0311 info@investment.odessa.ua
ODESSA (UKRAINE) IS THE MAJOR SEA PORT ON BLACK SEA Lutsk Rivne Zhitomir Kyiv Chernigiv Sumy Lviv Khmelnitsky Ternopil Vinnitsa Iv.Frankivsk Uzhgorod Chernivtsi Cherk asy Kirovograd Poltava Dnipropetrovs'k Kharkiv Lugansk Mykolayiv Zaporizhia Donetsk Odessa Kherson Simferopol
ODESSA BRIEFLY Odessa is the most important trade, political, cultural and financial centre of the southern Ukraine, with a population of slightly more than 1 million It is the Ukraine s largest sea port and a major transport and logistic hub The local economy is well diversified, with the service sector and industrial production representing, respectively, 76% and 24% of the industrial output Odessa experienced strong growth of industrial output in 2001-2008, when growth rates averaged 16.8% Successful issuance of municipal bonds in 1997, 2005, 2007 years
Odessa City Budget (from 2005 to 2008) 300% OPERATIONAL REVENUE SPECIAL FUND 250% 200% 150% 100% 50% 100% 100% 143% 182% 225% 200% 283% 233% 0% 2005 2006 2007 2008 (budget) YEARS
Municipal Infrastructure Projects (running & under development) Inner-city Highway ~ 130 M USD Source of Financing: Government subsidies, Bonds & РРР ODESSA CITY COUNCIL (borrower / guarantor / partner) Transportation: Tramway ~ 80 M USD Source of Financing: EBRD Transportation: Trolleybusses ~ 10 M USD. Source of Financing: Financial leasing Airport Facility ~ 260 M USD Source of Financing: РРР District Heating: ~ 70 M USD Source of Financing: EBRD & NIB, carbon fund Water Supply & Sewage System ~ 35 M USD Source of Financing: World Bank, Carbon Fund Deep Sea Sewage Discharge Facility ~ 60 M USD Source of Financing: Government & City, Carbon Fund
Prerequisites for Success: A Prioritized Long-Term Investment and Financing Plan The Priority Investment Program Addresses Only Some of the Urgent Rehabilitation and Modenization Needs. The Need for Moderniziation and Replacement Due to Normal Wear and Tear Will Continue. Full Replacement Investment Needs Additional Financing, which Will Not be Covered by Expected Depreciation Charges
Electro Transport Modernisation Strategy
Municipal Buildings (Financed by the City)
Municipal District Heating Co. (Financed by the City)
Organization Chart of Infrastructure Projects Odessa City Council Municipal Enterprises Lending Banks «ОMIF»* Local Banks Project Implementation Units Consultants * Municipal Enterprise Odessa Municipal Investment Fund
Functional Chart of Odessa Municipal Investment Fund Documentation, Presentation Data Collection & Analyses Implementation of Financial Schemes Research & Development Procurement Procedures Coordination with Banks, Private Investors Finance Department «OMIF» Legal Department Legal Consulting Financial Modeling Project Implementation Consultants Permissions & Approvals Project Implementation Units Municipal Enterprises Suppliers
Odessa International Airport (Reconstruction project)
General Concepts of PPP Municipal Financing: Compliance with municipal & government requirements, quality of provided services Private Investments: Guarantee of Profit Borrowed Resources: Return of loans
Odessa have great potential for CDM/JI project implementation Sources of CO2 under municipal authority Projects complete Projects in pipeline Notes Boiler plants and district heating 1 3 Projects in pipeline are Non- JI projects, however it CO quotas trading is envisaged after project completion Waste water treatment plants - 2 JI Projects, to be started in 2009 Deep-water outfall for the disposal of the treated waste waters - 1 CDM project is under the Government revision & approval Electrical transportation (replacing busses for trolleybuses & trams) - 2 JI Projects to be started in 2009 / 2010
Development of CDM/JI projects with municipalities in Ukraine is limited with implementation barriers CDM/JI implementation barriers Capabilities Understanding Incentive Financing Deficit of specialists in energy-saving projects in Ukraine City councils do not have departments responsible for CDM/JI initiatives Few people in who understand investment mechanisms under CDM/JI Losses shown by state-owned community service providers can be claimed back from the state budget. Neither City councils nor state-owned community service providers are interested in energy-saving projects Community service providers are underfinanced from city budgets Community service providers do not have experience in fund raising from external sources
Department of Municipal Debts & Securities Odessa City Council Mr. Gennady Nechaevsky, Head of Department Tel: +38 (048) 784-03-10 Fax: +38 (048) 784-03-11 info@investment.odessa.ua