ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Transcript of ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Geneve
30 November 2006
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ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)
ECONOMIC INDICATORSPopulation : 240 000 000 Surface Area : 6 184 000 KM2
Regional GDP: US $ 71.3 billion
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Part 1 :
INSTITUTIONAL FRAMEWORK
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT
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ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
EstablishmentThe ECOWAS Bank for investment and development
(EBID) was establish by decision of the Authority of Heads of States and Governments of the Community in December 1999.
VisionEBID intends to become the leading regional investment and
development financing institution in West Africa. It also aims at becoming a tool for poverty reduction, wealth and job creation so as to help raise the living standards of the people of the region.
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Create an enabling environment for the emergence of economically strong, industrialized and prosperous West Africa
“ Contributing to the realisation of ECOWAS objectives by supporting regional integration infrastructure projects or any other development projects in the public and private sectors ”
Supporting the development of the community through the financing of special programmes or projects
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Mission and corporate objectives
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Board of Directors of ERIB
ERDF
General Meeting of Shareholders
Board of Directors of ERDF
General Meeting of Shareholders
Managing Director of ERDF
EBID HOLDING COMPANY
Board of Governors
ERIB
Board of Directors of EBID
President of EBID
Managing Director of ERIB
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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initial authorised capital : 603 million UA (about USD 750 million)
Capital structure :
ECOWAS Member States : 66.67 %
Non-regional members : 33.33 %
Called-up capital : 35 %
Callable capital : 65 %
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Capital structure
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Proposed shareholding structure
33.33 %
66.67 %
Member StatesNon-Regional members
Structure of callable and called-up capital
35 %
65 %Called-up capitalCallable capital
Capital structure
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Part 2:
SECTORS OF INTERVENTION
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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The two sectors which benefit from the interventions of EBID
Public sector Private sector
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Granting loans to finance basic infrastructure, economic and social development projects in Member States. Granting loans to finance feasibility studiesGranting loans to finance the Community’s special programmesProviding assistance to Member StatesInvestment and management of special Funds
Public sector
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Poverty
reduction
Basic Infrastructure, Health
Microfinance
Education and professional training
Rural and semi-urban development and environment
Social sector
Industry
Production, transmission and distribution of energy
Transport, telecommunications
Irrigation and control of the flooding of rivers
Integration of regional production into the global economy
Development of economic
infrastructure
Areas of intervention under the public sector
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Long and medium term loans for commercial projects
Other financial institutions for the financing of investments under framework financing agreements
Co-financing or loan syndication for investment projects
Issue and guarantee of borrowings, bonds, national, regional or international debenture bonds or securities
Financing feasibility studies of investment projects
Financial engineering and sundry financial services
Private sector
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Supporting the Financial Sector
Investments
Privatisation programmes
Restructuring of banks and specialised financial institutions
Financial support to national financial institutions
Telecommunications
Energy, Water
Ports and airports, Transport
Industry
Environment: treatment and recycling of waste
Hospitals and private clinics, Hotel business, Real estate
Development of economic
infrastructure
Areas of intervention under the private sector
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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PART 3:
APPLYING TO THE BANK FOR SUPPORT
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Members States or Private promotors may apply directly to the BankApplication should include :
Project feasibility studiesTerms of reference for the studies
Applying to the Bank for support
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Project appraisal Negotiation and presentation of the project to the board of DirectorsImplementation
Commencement and supervision
Instructions
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Financing terms and conditions
Guarantee fee :0.5 to 5% per annum
Document procesing fee :1% fixed
Guarantee fee :0.5 to 5% per annum
Document procesing fee :1% fixed
Fees
30% to 40%≥ 10 % Promotors contribution
7% – 13% per annum1.5% – 10% per annumRate
5 to 10 years10 to 20 yearsDuration
US $ 1,000,000 to 15,000,000US $ 1,000,000 to 15,000,000Maximum amount
PRIVATE SECTORPUBLIC SECTORRUBRIQUE
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Part 4:
THE ACHIEVEMENTS OF THE BANK AT
31/12/2005
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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As at 31 December 2005 the total commitments EBID in respect of 45 projects amounted to UA 143,853,398 (US $ 205 710 359). The breakdown of the commitments is as follows
-67 762 510100143 853 398Total
--23.3736 497 659Guarantee
63.1267 762 51074.63107 355 739Direct loan
Rate %(2)/(1)
Amount(UA)% shareAmount
(UA)
DisbursementsCommitments
Type
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Breakdown of commitments and disbursements according to sector
73%
2%
25%
Direct loan Equity Guarantee
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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RESSOURCES
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Own resources •US dollars 80 million
Lines of credit
• US dollars 250 million from Indian government• US dollars 50 million from IDC of South Africa• US dollars 50 million from UEMOA market
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Part 5:
EBID AND THE BIO FUEL PRODUCTION
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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BIO-FUEL PRODUCTION(Industrial production)
EquipmentConstructions
Working capital
DISTRIBUTION (PME/PMI)
TransportFuel Station
ETHANOL PRODUCTION(PME/PMI)Equipment
ConstructionsWorking capital
Production Chain
AGRICULTURAL PRODUCTIONResearch
Production
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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AGRICULTURAL PRODUCTION
Direct financing
Lines of credit granted to national banks
Guarantees granted to national banks
1. EthanolCassavaSweet PotatoesSugar CaneEtc…
2. OilJethrophaOther plants
FINANCINGITEM
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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INDUSTRIAL PRODUCTION
Direct financing
Lines of credit granted to national banks
Guarantees granted to national banksEquity
FINANCINGPROJECT COMPONENTS
Equipment
Constructions
Working capital
PME / PMIEthanol
IndustriesBio fuel
ENTERPRISESPRODUCTION
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Part 6:
STUDY CASE : FINANCING BIO DIESEL PRODUCTION FROM JATROPHA PLANTATION DEVELOPMENT
VALUE CHAIN
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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Cost of the various components of the project
US $ 45 Million
3. Processing planti. The factory land, buildings and constructionii. Supply of utilities to the factoryiii. Plant, machinery and equipementiv. Working capital
US $ 129.29 MillionTotal
US $ 29.73 Million2. Marketing of physic nuts
US $ 54.56 Million1. Jatropha plantation development
CostComponents
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
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How EBID will finance the project
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
US $ 35 MillionAmount required
US $ 15 MillionContribution of EBID
•Local Banks
•Possibility of guarantee by EBIDCo-financing
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Working capital
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Fincanced by local commercial Banks
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ADVANTAGES AND RISKS
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
ADVANTAGES • Competitiveness of the product• Environmentally friendly
• Supply of raw materials• Participation of the promotorin the financing of the project
RISKS
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Creation of a fund
African Bio-Fuel Fund
Autonomous body with its own decision-making bodies, or a body attached to an existing institution such as EBID
Organization and management of
the fund
New mechanisms to finance bio-fuels
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Windows
Research and Development financing window : grants, subventions
Window : agricultural production : Jathropa and plantations for the production of ethanol
Window for the creation of bio-industry
Window : SME / SMI (production and distribution intermediary
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Sources of financing
Amount
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)
Road mapPreparation of tems of reference and finalizing of feasability
studies : 1st quarter of 2007
Adoption of report and launching of the fund: April-June 2007
Bilateral and multilateral sources
Carbon credit trading scheme
Foundations
Etc…..
Steering Committee
Composition : 5 members including EBID and UNCTAD
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THANK YOU FOR YOUR KIND ATTENTION
ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)