KfW activities in Bosnia and Herzegovina

1. KfW activities in Bosnia and Herzegovina Donor Coordination Forum Sarajevo, March 2012 Stephan Leudesdorff; Director KfW office Bosnia and Herzegovina

2. Promotional Bank of the Federal Republic of Germany Founded 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% Federal States Headquarters: Frankfurt am Main, Branches: Berlin and Bonn Representative offices: about 60 offices and representatives worldwide Balance sheet total at end 2010: EUR 442 billion 4,530 employees (2010) Rating: AAA/Aaa/AAA KfW BankengruppeFinancing with a Public Mission

3. A Bank with a wide array of functions

4. Focal areas in Bosnia and Herzegovina I Financial Sector • Strengthening of the trust in the reliability of financial markets • Provide medium to long-term funding for micro, small and medium sized enterprises in urban and rural areas • Support to the market consolidation of the micro finance sector • Promotion of energy efficiency II Energy Sector • Promotion of renewable energy • Promotion of energy efficiency III Municipal infrastructure • Sustainable solutions for water supply problems • Advancements in the field of waste water collection and treatment

5. Financing sources for Bosnia and Herzegovina I Contributions of the German Funds for Financial Cooperation (ODA): • Bilateral contributions of the German Government (grants, soft loans) • International funds of the German Government • KfW´s own funds II Additional sources of financing: • European Commission (IPA funds) • Other donors (e.g. Swiss Government, Danish Government) • Funds of the Bosnian Government

6. *Loans signed only; third party funds not included **For the financial sector only active loans included KfW development bank in Bosnia and HerzegovinaCommitment of funds in the sectors

7. Financial Sector I Objectives: • Strengthening of the intermediaries for the promotion of economic development in Bosnia and Herzegovina II Funds: • Guarantees and credit lines for local commercial banks and microfinance institutions • Providing TA to the partner institutions

8. Overview of KfW‘s contribution to the financial sector in Bosnia and Herzegovina IEFBH (European Fund for Bosnia and Herzegovina) • Virtual fund funded by various sources (e.g. Danish Government, BiH Government) Mother of all refinancing funds in Balkan • Contributed amount: €19 million IICredit Guarantee Fund (CGF) • Guarantee liabilities amounting to € 5.2 million IIIEnergy efficiency credit line • Contributed amount: €12 million

9. Energy Sector I Objective: • Rehabilitation & construction of power generation facilities with the objective of ensuring reliable, affordable and sustainable energy supply II Funds: • Development loans for wind parks & HPPs • Grant funds for the preparation of studies for the construction of new generation facilities • TA

10. KfW’s energy projects in Bosnia and Herzegovina I Rehabilitation of Hydro Power Plants (HPP) • HPP Trebinje (3x57 MW), phase 1 (€2 m) • HPP Trebinje (3x57 MW), phase 2 (€5 m) • HPP Rama (2x80 MW) (€17 m) II New Hydro Power Plants • Run-of-river HPP Cijevna III (13 MW) on river Bosna (€ 50 m loan plus € 5 m IPA funds) • Pump storage power Plant Vrilo under preparation ( 64 MW) (up to € 100 m loan) • Run-of river HPP Janjici (app. 12 MW) on river Bosnia; FS under preparation (up to € 50 m loan) III Energy Efficiency • Distribution SCADA system (€17 m)

11. KfW’s energy projects in Bosnia and Herzegovina IVWind parks • Establishment of first wind atlas for BiH in 2009 • Wind park Mesihovina (close to Tomislavgrad) (44 MW), € 71 m loan, € 1m grant (TA) • Under preparation: Wind park south part of RS, up to € 50 Mio loan

12. Municipal infrastructure: Water & wastewater I Objectives: • Enabling financially and ecologically sustainable supply of potable water as well as wastewater collection and treatment • Improving living standard of citizens • Protecting natural resources II Funds: • Development loans and grants for the municipalities • Support in the area of structural changes (accomp. measures) • Grants for the development of feasibility studies • Harmonization of the activities with local and external donor agencies  Joint preparations and co-financing projects with EC and other donors, in particular Swiss and Austrian Government

13. KfW’s water projects in Bosnia and Herzegovina • Kakanj • Rehabilitation of urban water supply, € 4.3 m; project completed • Program „Rehabilitation of Urban Water Supply and Sewerage Systems BiH I) • Participating municipalities: Kakanj, Bihac, Derventa and Kostajnica; € 14 m; project completed • Bihac • Waste water treatment plant, € 17.5 m • Banja Luka • Urban water supply and sewage systems; € 14m plus € 4.5 m EU contribution • Program „Rehabilitation of Urban Water Supply and Sewerage Systems BiH II“ • Under preparation; participating municipalities: Tuzla, Zenica, Travnik; up to € 19.5 m plus a contribution from the Swiss government

14. Thank you for your attention! Stephan Leudesdorff Director KfW Office in Bosnia and Herzegovina Phone: + 387 33 590 409 Mailto: stephan.leudesdorff@kfw.de