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Item 6.2 IIB experience

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Item 6.2 IIB experience

  1. 1. OECD Capacity Development Workshop on Water-related SDGs Integration and Implementation in Eastern Partnership (EaP) Countries and beyond NOVEMBER, 2020
  2. 2. T H E B A N K M I S S I O N A N D S H A R E H O L D E R S S T A T U S The International investment Bank is a multilateral development institution, created by member states in 1970. The Agreement to form the bank was signed on 10 July 1970 and registered with the United Nations Secretariat under number 11417. S H A R E H O L D E R S “To promote greater interconnections and integration between the economies of the Bank member states, with the aim of achieving the conditions for balanced and inclusive growth, and competitive national economies, by drawing on existing historical bonds”. 2  9 sovereign states  378.71 million euro paid-in capital M I S S I O N EU: 51.63% ASIA & CUBA: 3.26% RF: 45.06% Bulgaria 11.14% Hungary 17.29% Slovakia 6.45% Romania 6.89% Czech Republic 9.86% Cuba 1.41% Vietnam 0.96% Mongolia 0.89% Russia 45.06%
  3. 3. K E Y F I G U R E S L O N G - T E R M R A T I N G S ■ The key factors behind IIB credit ratings are: a high level of support from member states; a stable liquidity situation; high capital adequacy; diversified financing sources and an improved risk management system. ■ Since 1970, the Bank has implemented more than 300 investment projects. The total investment volume is approaching 9 billion euro. ■ In June 2019 IIB relocated its headquarters to the Hungarian capital to become the only multilateral development bank with HQ in the region of Eastern and Central Europe 3 A3, Stable 15.05.2020 A-, Stable 27.03.2020 A-, Stable 08.09.2020 A-, Stable 09.09.2019 AAA, Stable 08.05.2020 L O A N A N D D O C U M E N T A R Y P O R T F O L I O B Y C O U N T R Y , M L N E U R 367 411 612 809 881 1096 1194 1359 1662 124 95 243 319 383 726 851 995.3 1032.8 2012 2013 2014 2015 2016 2017 2018 2019 as of 01.11.2020. Total Assets, mln euro Loan and Documentary Portfolio, mln euro 1032.8 100% 606.2 59% 195.8 19% Bulgaria 76.6 7% Hungary 154.4 15% Romania 179.0 17% Slovakia 121.0 12% Czech Republic 75.2 7% Russia 164.5 16% Vietnam 78.2 8% Cuba 38.6 4% Mongolia 79.0 8% Other 66.3 6% COUNTRIES, EUR m OTHERS | EU ASIA&CUBA | RF
  4. 4. SUSTAINABILITY AND IIB 4 ACTIVITY REPORT 2020 Environmental & Social Policy Framework ■ Assessment of environmental and social risks of each project is currently based on the Environmental and Social Impact Guidelines and is taken into consideration by the Credit Committee on par with documentation prepared by other expert departments. ■ In December 2019 an updated IIB Policy on Environmental and Social Sustainability was approved by the Board of Directors. ■ In July 2019 Organization for Economic Cooperation and Development (OECD) included IIB in the list of international institutions eligible for acceptance of the Official Development Assistance (ODA). From that moment on, a certain share of contributions made by OECD member states to IIB’s equity from 2018 onwards can be reported by donor states as a “contribution to development support” and as ODA- eligible amounts. This also helps to comply with the UN recommendations regarding contributions made by developed countries to developing countries, set at 0.7% of Gross National Income (GNI). The ODA coefficient for IIB was approved at 29%. ■ In May 2020 IIB presented its first annual Report about developmental activities towards developing countries to the OECD for the year 2019. Sustainable Development Goals (SDG) ■ Pursuant to the existing internal plan to measure the development impact from the projects financed in order to raise awareness among investors, rating agencies, partner IFIs and international financial community on the Bank’s impact in achieving SDGs outlined by the United Nations, IIB has performed a portfolio breakdown by purposes of finance and targeted SDG. More than 80% of the Loan and Documentary portfolio amount relates to the SDGs highlighted below SDG 3: Good health and well-being for people SDG 5: Gender equality SDG 7: Affordable and clean energy SDG 8: Decent work and economic growth SDG 9: Industry, Innovation and Infrastructure SDG 11: Sustainable cities and communities SDG 17: Partnerships for the goals 56 57 162 291 274 6 51 65 77 36 30 4 11 45 31 30 12 63 163 13 30 88 3% 36 8% 86 6% 57 0% 4 17% 173 32% 336 31% 317 3% 36 4% 42 11% 113 24% 250 6% 65 7% 77 SDG DIVERSIFICATION, EUR m Main Goal Secondary Goal Tertiary Goal Goal 1: No poverty Goal 2: Zero hunger Goal 3: Good health and well-being for people Goal 5: Gender equality Goal 7: Affordable and clean energy Goal 8: Decent work and economic growth Goal 9: Industry, Innovation, and Infrastructure Goal 11: Sustainable cities and communities Goal 12: Responsible consumption and production Goal 13: Climate action Goal 17: Partnerships for the goals The Bank’s funding strategy accommodates for an establishment of a sustainability bond framework in the future
  5. 5. TECHNICAL ASSISTANCE FUND 5 ACTIVITY REPORT 2020 Ongoing projects Completed projects Client: PeWaS s.r.o. Country: Vietnam Consultant: PEDAL Consulting s.r.o. Budget: EUR 104,900 Project description: The goal of the project was to test two innovative Aquaholder products of PeWaS s.r.o. in Vietnamese conditions. Aquaholder products showed its potential for Vietnamese agriculture by increasing germination rate in dry conditions and speed of germination. The project started in October 2018 and was completed in June 2019. Client: Proxenta Cuban Investments, a. s. Country: Cuba Consultant: Ernst & Young, s.r.o. Budget: EUR 91,745 Project description: The goal of the project was to provide technical expertise including (1) verifying the assumptions of project preparation and implementation, (2) obtaining knowledge about market conditions, legal environment, risks and regulation in Cuba, and (3) developing relevant project documentation. The project started in October 2018 and was completed in April 2019. Client: Asseco Central Europe, a.s. Country: Vietnam Consultant: Aspiro, a.s. Budget: EUR 234,160 Project description: The goal of the project is to assist Asseco Central Europe, a.s. in replacing the street lighting of Hanoi for a smart and energy efficient system through a shared savings scheme. The project started in September 2018 and formally was completed in April 2019 (with the Budget: EUR 174,160), but Asseco a.s. has requested an extension of consultant’s services (Budget: EUR 60,000). IIB and the Ministry of Finance of the Slovak Republic has agreed with the prolongation of this project. The new term of the project started in July 2019 and is scheduled to be completed in July 2020. Client: Financial Regulatory Commission of Mongolia Country: Mongolia Consultant: Ernst & Young Slovakia Budget: EUR 198,600 Project description: The consultant performed in-depth analysis of the existing Mongolian legal framework in the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) area and prepared a comprehensive report identifying major legal issues, with concrete recommendations on how to align Mongolia’s national laws with the relevant FATF and other international standards. The consultant also prepared a number of draft legislative acts in the AML/СFT field. The project started in December 2017 and was completed in August 2018. Client: IMAO electric, s.r.o. Country: Vietnam Consultant: ENVIROS, s.r.o. Budget: EUR 198,990 Project description: The goal of the project is to provide the client with necessary expertise related to the opening and development of biomass power plants using agriculture waste in the Thừa Thiên-Huế province of Vietnam, with a potential further nationwide scale-up. The project started in February 2019 and was completed in July 2020. About The main purpose of the Technical Assistance Fund (TAF) is to finance the provision of advisory services and technical assistance in respect of the projects financed, or to be financed, by the IIB within its mandate. The target countries include Mongolia, Vietnam, and Cuba. Slovak nationals or firms registered in the Slovak Republic are eligible to bid for projects supported by the TAF. The TAF was established at the initiative of the Ministry of Finance of the Slovak Republic in 2016. 17% 9% 8% 20% 17% 28% INITIAL FUND SIZE: EUR 1,245,000 FRC of Mongolia PeWaS s.r.o. Proxenta Cuban Investments, a.s. Asseco Central Europe, a.s. IMAO electric, s.r.o. Available (317 281 EUR)
  6. 6. 6 20ACTIVITY REPORT 20 The Bank regularly allocates funds for various grants aimed at environmental protection, especially for projects and programs related to water and sanitation. The Bank’s strategic partners in these activities are Wetlands International and World Wildlife Fund (WWF). No. Supported projects Country Recipient Organization Date Amount (EUR) 1. Preservation of endangered animal and bird species in Mongolia: The Project is aimed at supporting of the threatened populations of the Przewalski’s horse and the Altai snowcock in Mongolia. Mongolia Ministry of Environment June 2015 c. 28,000 2. Wild Asian Elephants Program: The Project aims to increase the capacity of relevant Vietnam’s authorities to manage human - elephant conflicts, and to increase Vietnamese public and corporate engagement for Asian elephant conservation. Vietnam WWF Vietnam December 2015 45,000 3. The Hungarian Water Risk Filter: The project is aimed at collection of data on Hungarian river basins for the Water Risk Filter, a WWF-sponsored practical global online tool that helps to assess and map water risks and to elaborate practical measures to mitigate them. Hungary WWF Hungary June 2016 30,000 4. Restoring Peatlands in Russia – for fire prevention and climate change mitigation: The project carries out measures to return the degraded peatlands in Russia to their original waterlogged state with sustainable use of these areas in a manner involving peatland cultivation and biodiversity conservation. The Project is supported jointly with the KfW. Russia Wetlands International December 2016 June 2018 70,000 70,000 5. Environmental education and awareness raising in protected areas: The project aims to raise awareness of local population towards natural values and the environment at the Romanian territory of protected by the EU Natura 2000 sites. The program facilitates 200 hours of environmental education activities in the elementary schools in Transylvania region. The project also provides an establishment and a training of volunteer ranger network in 7 villages, as well as publishing and distribution of educational toolkits in local schools and organization of Forest School for 25-30 selected local children. Romania Milvus Group Association June 2017 30,000 6. Restoration of natural river ecosystems in Northern Slovakia: The project is focused on sustainable management of the Northern Slovakia river basins, preserve key natural river systems, protect and restore critical river habitats and initiate rehabilitation of endangered species populations, especially the Danube salmon. Slovakia WWF International Danube-Carpathian Program December 2017 30,000 7. Restoration of wetlands of the upper creek of the Tuula Gol river in central Mongolia: The aim of the project is to study the current state of wetlands in the area, bio systems and ecosystems, identify main causes for degradation of wetlands and to assess the risks of deepening processes, which negatively influence the ecosystem. Afterwards a scientifically based plan is to be developed for restoration of wetlands in order to prevent fires, reduce greenhouse gas emissions, preserve water resources and biological diversity, as well as create conditions for the rational use of these territories. Mongolia Mongolian Academy of Sciences November 2018 c. 34,000 8. Project on water preservation of the River Tisza and its cleaning from plastic waste: aim of the project is to finance an expedition targeting a full mapping of the river highlighting the biggest sources of plastic pollution. In addition, an online platform is to be created with full instructions how people at all levels can help prevent the water pollution Hungary Plastic Cup September 2019 50,000 GRANT POLICY
  7. 7. C O N T A C T I N F O R M A T I O N International Investment Bank Anna Lvova Head of International Relations and Communications Head of Sustainability Vaci ut 188, 1138 Budapest, Hungary Mob. +36 70 4760012 E-mail: Anna.Lvova@iibbank.com WWW.IIB.INT

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