Overview of EIB Support to Agriculture Sector Mr. Harald Jahn
Transcript of Overview of EIB Support to Agriculture Sector Mr. Harald Jahn
Overview of EIB Support to Agriculture Sector
Harald JahnHead of DivisionNatural Resources and Agro-IndustrySofia, 12 November 2014
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Challenges
• Economic and population growth• Food security • Nutrition quality
• Resource scarcity and climate change• Resource productivity• Ecosystem resilience
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Investment opportunities
• Research, Development, Innovation
• Improve productivity of cultivated land through smart investments
• Investments into green and blue growth
• Support value chain development
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Our sector approach
Land
Water
Labour:
ResourcesUpstream
ActivitiesProduction
Plantations
Annual
crops
Transport,
Storage
Infra-
structure
Vessels
Processing
Vessels
Flour Mill
Sugar
Refinery
Distribution
Retail
Wholesale
Machinery
Fertilizer
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Labour:
- work
- intellect.
Capital
crops
Animal
production
Aqua-
culture
Vessels
Silos
Vessels Refinery
Slaughter-
house
Biogas
Plant
Protection
Breeding
Training
Export
Climate
Soil
fertility Forestry
Agri-sector lending outside EU 2009-2013
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Note: intermediated loans to SME’s and Midcaps are not considered (additional 1.1 bn EUR)
Agri-sector lending outside EU 2009-2013
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Note: intermediated loans to SME’s and Midcaps are not considered (additional 1.1 bn EUR)
Our support
• Project loans• Support to funds• Guarantee schemes (EIF)• Credit lines to commercial banks or microfinance
institutionsinstitutions• Apex loans (credit lines to governments for
onlending to Final Beneficiaries via Financial Intermediaries)
• Technical Assistance
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Our products
• Funding• Direct loans to public & private promoters• Intermediated loans to development/promotional and commercial
banks and microcredit institutions• Loans and equity participation in Funds (with regional and/or sector
or FB focus – SME/micro)• Technical assistance
• To governments or public institutions to assist planning, • To governments or public institutions to assist planning, implementation & monitoring
• To public & private promoters to strengthen environmental & social standards
• To public & private banks to strengthen risk assessment/capability in agri-food sector lending
• Know-how transfer• Finding of RDI of agri-food companies in the EU with partial or total
test and production applications in non-EU partner countries.
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Neighborhood: East
• Moldova – APEX loans for value chain funding in the wine and fruit/horticultural sector
• Ukraine – direct loans to increase grain storage capacities
• Kazakhstan – loan to country’s agricultural funding • Kazakhstan – loan to country’s agricultural funding organizations (Kazagro) to mainly support investments for reduction of harvest and post-harvest losses
• Kyrgyzstan – credit lines like Moldova & Kazakhstan in the pipeline
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Pre-accession
• Objective: Co-funding of projects by beneficiaries• Possibilities for EIB funding to be linked into IPARD
in the Western Balkans• Example of IPARD I implementation in Turkey
involving EIBinvolving EIB• Afforestation I & II
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Project description: IPARD I (Turkey)
ECTurkish State
EIB
ZiraatBank
Own
75% 25%EUR 100mfor Axis 1 & 3 projects
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Investment project
Grant EIB Credit
50%
Own resources/
credit
37.5% 12.5%
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Our approach
• Request made by DG Agri• Gap analysis
• Is TA needed?• Liquidity of the rural financial market
• Assessment of eligibility of investments• Assessment of eligibility of investments• Assessment of program implementation/monitoring
mechanisms• Selection of intermediary
• Outreach, sector experience, credit risk
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Example: Afforestation I& II Turkey
• 2010/2012• Promoter: Competent Ministry• Objective:
• Forest rehabilitation• Afforestation• Afforestation• Erosion control• Forest fire-fighting (only Afforestation II)
• 2 investment loans at:• EUR 150m, 20 years• approx. 40% of project costs
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Thank you!
Dr. Harald JAHN Head of DivisionHead of Division
Natural Resources and Agro-Industry
More information at: [email protected]
Tel. : +352 479 22000
*Kosovo "This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence."
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