ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)

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  • hi under Full Names:abdul qader basher
    abd dalbh
    Address:jordan amman
    jordanDate of Birth:17\7\ 1965
    Telephone/Fax number: 00962795364089 00962795364089
    Nationality:jordan Marital Status:tesher
    Age:46
    Occupation:tesher
    EIMAL : dalbh2006@yahoo.com my bank; caro amman bank NO;424639
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ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID)

  1. 1. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Geneve 30 November 2006
  2. 2. ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS) ECONOMIC INDICATORS Population : 240 000 000 Surface Area : 6 184 000 KM2 Regional GDP: US $ 71.3 billion
  3. 3. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT Part 1 : INSTITUTIONAL FRAMEWORK
  4. 4. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Establishment The 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. Vision EBID 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.
  5. 5. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Mission and corporate objectives 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
  6. 6. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) EBID HOLDING COMPANY Board of Governors Board of Directors of EBID President of EBID ERDF ERIB General Meeting of Shareholders General Meeting of Shareholders Board of Directors of ERDF Board of Directors of ERIB Managing Director of ERDF Managing Director of ERIB
  7. 7. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Capital structure 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 %
  8. 8. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Capital structure Proposed shareholding Structure of callable and structure called-up capital 33.33 % 35 % 66.67 % 65 % Called-up capital Member States Non-Regional members Callable capital
  9. 9. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Part 2: SECTORS OF INTERVENTION
  10. 10. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) The two sectors which benefit from the interventions of EBID Public sector Private sector
  11. 11. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Public sector Granting loans to finance basic infrastructure, economic and social development projects in Member States. Granting loans to finance feasibility studies Granting loans to finance the Community’s special programmes Providing assistance to Member States Investment and management of special Funds
  12. 12. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Areas of intervention under the public sector Basic Infrastructure, Health Microfinance Poverty Education and professional training reduction Rural and semi-urban development and environment Social sector Industry Production, transmission and distribution of energy Development of Transport, telecommunications economic infrastructure Irrigation and control of the flooding of rivers Integration of regional production into the global economy
  13. 13. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Private sector 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
  14. 14. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Areas of intervention under the private sector Investments Privatisation programmes Supporting the Restructuring of banks and specialised financial institutions Financial Sector Financial support to national financial institutions Telecommunications Energy, Water Development of Ports and airports, Transport economic infrastructure Industry Environment: treatment and recycling of waste Hospitals and private clinics, Hotel business, Real estate
  15. 15. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) PART 3: APPLYING TO THE BANK FOR SUPPORT
  16. 16. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Applying to the Bank for support Members States or Private promotors may apply directly to the Bank Application should include : Project feasibility studies Terms of reference for the studies
  17. 17. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Instructions Project appraisal Negotiation and presentation of the project to the board of Directors Implementation Commencement and supervision
  18. 18. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Financing terms and conditions RUBRIQUE PUBLIC SECTOR PRIVATE SECTOR Maximum amount US $ 1,000,000 to 15,000,000 US $ 1,000,000 to 15,000,000 Duration 10 to 20 years 5 to 10 years Rate 1.5% – 10% per annum 7% – 13% per annum Guarantee fee : Guarantee fee : Fees 0.5 to 5% per annum 0.5 to 5% per annum Document procesing fee : Document procesing fee : 1% fixed 1% fixed Promotors contribution ≥ 10 % 30% to 40%
  19. 19. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Part 4: THE ACHIEVEMENTS OF THE BANK AT 31/12/2005
  20. 20. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) 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 Commitments Disbursements Type Amount Amount Rate % % share (UA) (UA) (2)/(1) Direct loan 107 355 739 74.63 67 762 510 63.12 Guarantee 36 497 659 23.37 - - 143 853 398 100 67 762 510 - Total
  21. 21. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Breakdown of commitments and disbursements according to sector 25% 2% 73% Direct loan Equity Guarantee
  22. 22. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) RESSOURCES Own resources •US dollars 80 million • US dollars 250 million from Indian government Lines of • US dollars 50 million from IDC of credit South Africa • US dollars 50 million from UEMOA market
  23. 23. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Part 5: EBID AND THE BIO FUEL PRODUCTION
  24. 24. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Production Chain ETHANOL PRODUCTION (PME/PMI) AGRICULTURAL PRODUCTION Equipment Research Constructions Production Working capital BIO-FUEL PRODUCTION (Industrial production) Equipment DISTRIBUTION Constructions (PME/PMI) Working capital Transport Fuel Station
  25. 25. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) AGRICULTURAL PRODUCTION ITEM FINANCING 1. Ethanol Cassava Direct financing Sweet Potatoes Sugar Cane Lines of credit granted to national banks Etc… 2. Oil Guarantees granted to national banks Jethropha Other plants
  26. 26. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) INDUSTRIAL PRODUCTION PROJECT PRODUCTION ENTERPRISES FINANCING COMPONENTS Ethanol PME / PMI Direct financing Equipment Lines of credit granted Constructions to national banks Guarantees granted to Bio fuel Industries Working national banks capital Equity
  27. 27. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Part 6: STUDY CASE : FINANCING BIO DIESEL PRODUCTION FROM JATROPHA PLANTATION DEVELOPMENT VALUE CHAIN
  28. 28. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Cost of the various components of the project Cost Components 1. Jatropha plantation development US $ 54.56 Million 2. Marketing of physic nuts US $ 29.73 Million 3. Processing plant i. The factory land, buildings and construction ii. Supply of utilities to the factory US $ 45 Million iii. Plant, machinery and equipement iv. Working capital Total US $ 129.29 Million
  29. 29. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) How EBID will finance the project Amount required US $ 35 Million Contribution of EBID US $ 15 Million •Local Banks Co-financing •Possibility of guarantee by EBID
  30. 30. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Working capital Fincanced by local commercial Banks
  31. 31. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) ADVANTAGES AND RISKS • Supply of raw materials RISKS • Participation of the promotorin the financing of the project ADVANTAGES • Competitiveness of the product • Environmentally friendly
  32. 32. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) New mechanisms to finance bio-fuels Creation of a African Bio-Fuel Fund fund Organization and Autonomous body with its own decision-making bodies, or a management of body attached to an existing institution such as EBID the fund Research and Development financing window : grants, subventions Window : agricultural production : Jathropa and Windows plantations for the production of ethanol Window for the creation of bio-industry Window : SME / SMI (production and distribution intermediary
  33. 33. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) Bilateral and multilateral sources Sources of financing Carbon credit trading scheme Foundations Etc….. Amount Preparation of tems of reference and finalizing of feasability Road map studies : 1st quarter of 2007 Adoption of report and launching of the fund: April-June 200 Steering Composition : 5 members including EBID and UNCTAD Committee
  34. 34. ECOWAS BANK FOR INVESTMENT AND DEVELOPMENT (EBID) THANK YOU FOR YOUR KIND ATTENTION

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