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Tina Kollerup Hansen, Investment Director
DBDH Seminar
5 December 2017
To get previous design
Subsidised, tied loans for investments in sustainable infrastructure which has limited access to commercial markets
DANIDA BUSINESS FINANCE AT A GLANCE
The financing is partly ODA (subsidy), partly from a commercial Bank (commercial)
Total outstanding commitment is DKK 4.022 billion
Financing Annual frame (finanslov) (DKK million)
WHAT?
FL17 FFL18
2017 2018 2019 2020
250 325 400 400
ELIGIBLE COUNTRIES
✓ DAC countries✓ GNI/capita max USD 4.035✓ Danish representation
Now also when in relation to IFU investments!!
IFU Board Meeting12/11/2017PAGE 2
To get previous design
DBF Strategic Principles
for project selection• Non-commercially viable
• Focus countries (income level – DK representation)
• Country development strategy and sector plan in place
• Complementarity and synergy
• Acceptable guarantor/preferably Ministry of Finance
• Project related criteria:
• Projects will be assessed on the contribution to the SDGs, life cycle cost and
sustainability including IFC standards and UNGP
• Projects should have a minimum size of preferably DKK 100 million. Upper limit
depends on budget available.
• Involvement of Danish companies that are competitive based on “life cycle
cost”:
To get previous design
DANIDA BUSINESS FINANCE
SUBSIDY
• INTERESTS DURINGIMPLEMENTATION AND
REPAYMENT PERIOD
• EXPORT CREDITPREMIUM
• MARGIN TO DANISHLENDING BANK
• CASH GRANT
CONTRACT AMOUNT LOAN AMOUNTTO BE REPAID BYBORROWER/BUYER
TO BE PAID BY DANIDABUSINESS FINANCE(TOTAL DANIDA SUBSIDY)
+ COMMITMENT AND
MANAGEMENT FEES TO DANISH
LENDING BANK
TO BE PAID BYBORROWER/BUYER
DANIDA BUSINESS FINANCE - SET UP
PROJECT IMPLEMENTATION
6
- Monitoring and Verification Consultant
- Quarterly reports from Contractor
- Verification at taking over
- Verification at End of Defect Liability
- Reports on results and indicator for 5 years after taking over
- Verification and review after 5 years (project completion report)
LOAN CONDITIONS
• 10 YEARS REPAYMENT AFTER “TAKING OVER” WITH 6 MONTHS GRACE PERIOD
• LOANS IN EUR OR USD
LOAN MATURITY PERIOD AND CURRENCY
• MINISTRY OF FINANCE MUST ACT AS GUARANTORGUARANTEE
• BUYER, BORROWER AND SUPPLIER MUST SIGN DANIDA
DECLARATIONSDECLARATIONS
• BI-ANNUALLY INSTALMENTS OF THE FINANCED AMOUNT LESS
THE CASH GRANT
• COMMITMENT FEE (SHALL NOT EXCEED 0.25 % P.A.)
• MANAGEMENT FEE (SHALL NOT EXCEED 0.375% FLAT)
TO BE PAID BY THE BORROWER
APPROVAL PROCEDURE
Implementation
Final approval of support from Danida Business Finance
Contract and Loan agreement
Procurement - carried out by buyer
Approval in Danida’s Council for Development Policy
Appraisal
Feasibility study – supported by Danida Business Finance
Screening of project in Danida’s Programme Comittee
Identification
Danida Business FinanceMetro Fiber Networks and Cloudband, Burkina Faso (50% subsidy)
Contract amount: 55.7 million EUR
Cash grant: 15.5 million EUR
Loan amount: 40.2 million EUR
93 MW Wind power project in Santa Cruz, Bolivia – in tender (35% subsidy)
Estimated contract amount: 118.3 million EUR
Estimated cash grant: 26.3 million EUR
Estimated loan amount: 92.0 million EUR
Danida Business Finance
Country Project titel Sector
Contract
(1,000 kr.)
Grant
(1,000 kr.)
Bolivia Warnes, San Julian and El Dorado Wind Projects Wind 854,920 366,000
Vietnam Son La Radio Comm. 44,624 22,500
Vietnam Vi Thanh Drainage and Water Treatment Project Water 86,200 33,800
Ghana Road Bridges in Northern Ghana Transport 380,000 178,690
Bangladesh Saidabad III Water 1,350,000 976,600
Bangladesh Saidabad I upgrading Water 126,474 63,237
Kenya Thika and Githunguri Water & Sanitation Improvement Project Water 350,000 122,500
Tanzania Waste management Facilities in Dar es Salaam Env. 45,000 22,500
Tanzania Sewerage Treatment Project in Dar es Salaam Water 1,138,266 569,133
Pakistan Faislabad Waste Water Treatment Plant Project Water 750,000 262,500
Uganda Kampala South Water Treatment Plant Project Water 700,000 350,000
Uganda Hoima and Masindi Water & Sanitation Project Water 350,000 175,000
Ethiopia Assala Wind Power Project Wind 1,264,740 632,370
Total 7,440,224 3,774,830
DBF pipeline
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Tina Kollerup Hansen
Investment Director
Tel: +45 33 44 12 35
www.dbfinance.um.dk
IFU
Fredericiagade 27
1310 Copenhagen K
Denmark
Tel. +45 33 63 75 00
Fax +45 33 63 75 99
www.ifu.dk
Further contacts: