german financial cooperation with mena focal areas, approaches and examples practitioners’ network...
TRANSCRIPT
German Financial Cooperation with MENA Focal Areas, Approaches and Examples
Practitioners’ Network for European Development Cooperation
Workshop on Cooperation in the MENA Region
Christoph Krieger, Principal Country Manager
Brussels, 25 October 2011
222
60 Years of KfWFinancing with a Public Mission
● Promotional bank of the Federal Republic of Germany
● Founded in 1948 asKreditanstalt für Wiederaufbau
● Shareholders: 80% Federal Republic,20% federal states
● Headquarters: Frankfurt am MainBranches: Berlin and Bonn
● Balance sheet total at end-2010: EUR 504 billion
● 4,600 employees (2010)● Best rating: AAA/Aaa/AAA
333
A Bank with a Wide Array of Functions
Domestic promotional activities
Promotion ofhousing, education,infrastructure and
social development
Promotion of SMEs, entrepreneurs,
environmental and climate protectionbusiness start-ups
Financing of municipal
infrastructure projects and promotion in
Europe
Promotion ofdeveloping and
transition countries
Internationalproject and
export finance
4
Governmental Budget Funds
Development Loans
Composite financing
Reduced-interest loans
Promotional Loans
KfW Funds
100% Budget Funds
Grants
Loans IDA conditions
Loans standard FC conditions
Financing Instruments
LDCs = GDP p.c. < 900 USDIDA = GDP p.c. < 1.735
other Developing Countries
Leveraging limited budget funds
100% KfW-Riskclose to market conditions
Broader scope of action
for Cooperation with Developing Countries
5
Team MENA at KfW Entwicklungsbank
Our Focal Areas
Board of Managing Directors
Latin AmericaEnvironment and Climate
Water Resources and Solid Waste
MENASub-Saharan
Africa
Education and Sustainable Economic Development
Climate - Environment - Energy
AfricaMENA
EuropeAsia
6
German Development Cooperation with MENA Priority and Partner Countries
Palestinian Territories
Syria
Yemen
Tunisia
Morocco
Egypt
Priority Countries Partner Countries KfW-OfficesLebanon
Jordan
Iraq
7
Focal Areas and Approaches
Water – Sanitation – Solid Waste
Challenges in MENA
water stress, overexploitation of water resources and climate change
insufficient urban water supply in parallel with strong urban growth
water resources and health conditions endangered due to unsufficient sanitation and waste disposal
Our Approaches:
strengthen water supply efficiency through water loss reduction programmes
improve access to adequate water supply and sanitation – urban and rural
promote resource efficient irrigation in agriculture
Perspectives for Financial Cooperation:
promoting Integrated Water Resource Management (IWRM) in MENA
adaptation measures to tackle the consequences of climate change (sanitation, water resource management)
8
Focal Areas and Approaches
Environment – Climate Protection - Energy
Challenges in MENA: region is strongly affected by consequences of climate change heavy burden on urban areas by pollution of growing industries and thermic power plants high dependency on import of fossil fuels (Morocco, Tunisia) energy intensity higher-than-average
Our Approaches: utilise the enormous potential of Renewables in MENA (wind and solar power) promote energy efficiency – strongly neglected in the region promote industrial enviromental protection via national enviromental funds promote appropriate waste collection – important contribution to climate protection support public transport systems
Perspectives for Financial Cooperation: partnering the implementation of Mediterranean Solar Plan and the vision Desertec (Dii) – first
solar power plants under preparation in Morocco and Egypt exploring the scope of action for energy efficiency and how to kick-off investments initiate Recycling Management Systems - waste-to-energy
9
Focal Area and Approaches
Education and Sustainable Economic Development
Challenges:
high population growth, a young population two-thirds younger than 30) high illiteracy rates (in particular: Morocco, Yemen, Egypt)
low GDP-growth per capita; many jobs in low productivity areas, unsufficient qualification, high unemployment in particular young adults (one of main reasons for Arab Spring)
conflictive region, high frequency of crisis, unsufficient rule of law, fragile states, missing economic and social opportunities lead to pressure on migration and lack of perspectives
Approaches:
promote education on all four levels
on the supply side: access and quality - on the demand side: Financing Eduation
promote strong and diverse national financial systems to enable development oriented capital flows
promote Municipal Financing Systems – establishing systems of financial equalisation between municipalities
Perspectives for Financial Cooperation:
creation of SANAD: the MENA Fund for Micro-, Small and Medium Enterprises
developing approaches for Financing Education in MENA
10
Portfolio
Commitments per Country (Million Euro)
Total: 3.238 Million Euro
Egypt 1.228
Yemen 277
Jordan 281
Morocco 439
Palestinian Territories 436
Regional 20
Syria 133
Tunisia 375
Iraq 3
Lebanon 46
11
PortfolioCommitments per Sector (Million EUR)
Democracy and Peacebuilding
114
Other88
Energy and Enviroment
765
Sustainable Economic
Development173
Education254
Water and Sewerage1.844
Gesamt: 3.238 Mio. Euro
12
Wind Energy Morocco
Tapping Own Resources
Approach
utilise the first-class wind power potential
finance new wind power plants
generate more than 500 GWh/annually
Problem
fast growing energy demand
very limited proper energy resources
Morocco‘s high dependency on imported fossil fuels
Contribution
Wind Park Tanger (140MW): 50 m EUR (FC-Loan)
Wind Park Essaouira (60MW): 50 m EUR (FC-Loan)
Impact
provision of environmental friendly energy and sustainable utilisation of natural resources
electricity generation for 2 million inhabitants – private households
saving around 340.000 t CO2
reducing Morrocco‘s expenditures on fossil fuel imports
13
Education Programme Palestinian Territories
Combined Forces for Better Education
Problem
high illiteracy rates, high unemployment rates
insufficient quality in education
the multitude of active donors in the field of education is a challenge for budgetary planning
Approach
joint donor mechanism to coordinate the implementation of the national education strategy
learner-friendly enviromments in schools, innovative and adapted infrastructure build with labour-intensive measures to generate incomes
Impact
higher level of quality in education
reduction of administrative costs
strengthening the Ministry for Education
Costs and Contribution
total costs: 419 m EUR
FC-Contribution: 77 m EUR (grant)
14
Improved Water and Wastewater Services Programme (IWSP)
Protecting Health and Environment in Egypt
Impact
sustainable improvement of the water supply and waster water systems in the Niledelta
improvement of the utilities‘ performance and its staff capacities
support for sector reforms programme management
Contribution
61 m EUR (loan) for investments and 8,3 m EUR (grant) to support the water utilities
Problem
health and environmental risks due to insufficient water supply and waste water systems
high necessity for investments in infrastructure
water utilities lack capacity
Approach
investments to rehabilitate, expand and construct water and waster water treatment plants
accompanying measures to support water utilities
NIF – joint financing mechanism (EU, AFD, EIB, FC), KfW as the lead financier
15
Water Resource Management in Jordan
Recycling Water Resources with Multiple Use
Problem
extreme and increasing water shortages
overexploitation of water resources
high population growth
Approach
Re-use of treated waste water for irrigation in agriculture
Re-use of irrigation water for drinking water
electricity generation from gravity pipes
Impact
20 liter drinking water daily extra for each inhabitant of Amman
electricity for 10.000-15.000 households
Irrigation in the Jordan Valley to be ensured
Contribution
investment costs for Re-use components: 22,5 m EUR (FC development loan)
Re-use components are part of a broader Water Resource Management Programm
16
Problem
commercial banks avoid financing for micro, small and medium enterprises (MSME)
despite liquidity in the market, finance for MSMEs hard to obtain
MSME account for around 70% of employment in MENA
Approach: establishing a Fund…
to combine public and private investors
to disburse loans, guarantees and equity
open to (micro-) finance institutes of all MENA countries
managed by a private consultant
Impact
mobilisation of private liquidity
improving access to finance for local enterprises
Regional Fund SANAD
Access to Finance for Small and Medium Enterprises
Contribution
expected: 20 m EUR (grants) + 10 m EUR equity share; assumed fund volume in 5 years 75-100 m EUR
17
Thank You for Your Attention…
18
L2c2KC Water Near East
Stefan Zeeb (2584)
Manuel Schiffler (4325)Dr. Stefan Gramel (4845) Alexander Grieb (4732)Wolfgang Pfaff-Simoneit (4145)Sebastian Jacobi (1672)Theodor Dickmann (2068)Olaf Goerke (9356)Dr. Konar Motafoglu (9942)Gerald Scholz (2969)
L2c3Education and Sustainable
Economic Development
Babette Stein v. Kamienski (3705)
Mandana Bahrinipour (9028)Frank Determann (3583)Eberhard Knapp, ext. (2659)Cornelia Penzel (3952)Bettina Zoch (9003)Matthias Zilbauer (4727)Jan Wiegelmann (9556)
L2c4Water North Africa
Dr. Jörg Dux (1926)
Ditlinde von Davidson(2418)
Bruno Schoen (2310)Thomas Linsenbold(2787)Reinhard Schmidt (2131)Gert Strübing, ext. (4635)Thorsten Waibel (3934)Gunter Walter (3143)Dr. Bernd Wiebusch(2633)Claudia Bürkin (Cairo Office) (*7511)Tatjana Bruns (3474)
L2c5Climate and Environment
Kurt Hildebrand (2890)
Bernd Hasel (2593)Wolf Muth (4788)Thomas Prien (9807) Christoph Twerenbold (Rabat Office) (1701)Bernhard Schenk, ext. (4108) Verena Willand (4442)Helmut Asam (9110)Katharina Brinkmann (3350)
L2c1Country Team
André Ahlert (2155)Egypt
Sylvia Paschke (4077)Jordan, Palestinian Territories, IsraelnChristoph Krieger (2405)Tunisia, Morocco, Algeria
Alexander v. Kap-herr (9355)Syria, Yemen
Moritz Remé (4189)Lebanon, Iraq
Susanne Schröder (3751)
Contracts: Julien LeChuiton (8456)
L II cWolfgang Reuß
(3593)
First Vice PresidentDirector MENA
Offíce: Susanne Reinhardt (2119) / Fax (3279)Office L2c3/4/5: Michaela Lessmann (8903)
September 2011
Contact in Frankfurt
E-mail: [email protected]
Tel/Fax: +49-69-7431-xxxx
19
Palestinian Territories
Yemen
Tunisia
Morocco
Egypt
Iraq
Contact in MENA
JordanDirector:
Bettina TewinkelMohammed Baseem Al-
Khammasch Street No 13P.O. Box 926 238Sweifieh, Amman
11190 JordanE-mail: [email protected]
YemenDirector:
Bernd SchönewaldHadda Area, Street No. 21,
Villa No. 19Sana´a, Jemen
Tel.: 00967-1426-352Fax: 00967-1426-350
E-mail: [email protected]
Egypt Director:
Dr. Jens Mackensen4 D, Al Gezira Streed
(3rd Floor)Zamalek 11211, Kairo
Tel.: 00202-2736-9525 Fax: 00202-2736-3702
E-mail: [email protected]
MoroccoDirector:
Silke Stadtmann2, Avenue Tour Hassan10020 Rabat/MarokkoTel. 00212-3770-9893Fax: 00212-3770-9315
E-mail : [email protected]
Palestinian TerritoriesDirector:
Marc EngelhardtGerman House
Abdullah Joudah StreetBldg. 35,
Al Bireh, PalästinaTel. 00972-2240-0730Fax: 00972-2240-0731
E-mail: [email protected]
SyriaDirector:
N.N. German House
Al Mehdi Ben Barakeh Street 26
Damskus, SyrienTel. 00963-11-3318-124Fax: 00963-11-3318-126
E-mail: [email protected]
LebanonDaniel Neuwirth
Programme CoordinatorHamra Gefinor CentreBlock D, Office 401/3,
Clemenceau Street, Beirut, Libanon
Tel. 00961-1740-304Fax: 00961-1740-304
E-mail: [email protected]
TunisiaMarkus Schlömann
Local RepresentativeTunis
Tel.: 00216-28 770 128E-mail: