Monthly Operational Summary of Bank and ida proposed Projects

Europe And Central Asia

Kosovo

Energy and mining

Kosovo Power Project: IDA partial risk guarantee in support of a private sector independent power producer and lignite mining company, to be selected under the Lignite Power TA Project (P097635). Concept completed on 4 August 2011. Environmental Assessment Category A. Project: P118287. US$ 40.0/725.0/725.0 (GUID/ZBIL/ZEXP). No consultants are required. Ministry of Economic Development Tel: [phone], E-mail: [e-mail], Contact: Mr. Besim Beqaj, Minister.


Moldova

Energy and mining

Moldova District Heating Efficiency Improvement Partial Credit Guarantee: The objective of the proposed project is to improve the operational efficiency and commercial viability of the district heating (DH) services in Chisinau. This component is Component 2: Debt restructuring and financing of debt repayment (IDA Partial Credit Guarantee: US $ 40 million, IDA allocation: US$ 10 million). This component will support the Government in preparing a debt restructuring plan and provide a guarantee for credit enhancement on Moldova Sovereign or new integrated company borrowing. Such credit enhancement would be essential to raising commercial financing on terms that would allow repayment of the debt stock on a sustainable, long-term basis to limit the financial burden of the restructuring on Chisinau residents and Moldova. For a new entity such as the integrated company, a structured Partial Credit Guarantee (PCG) from the Bank would also help it start establishing credit on the loan and capital markets. Using an IDA PCG is expected to leverage Moldova's IDA capital envelope. The partial nature of the PCG provides for risk sharing with the market while offering comprehensive risk cover for a specified component of the financing. Depending on market conditions, a PCG cover of 30-50% of debt service cash flows (principal + interest) may be sufficient to considerably improve the available financing terms. This means that a $10 million tranche of IDA country allocation used as a $40m Bank PCG could help raise $80-120 million of financing from commercial sources. Currently, Partial Credit Guarantees (PCGs) are only available for IBRD countries. OPCS, in consultation with CFP/SDN and other corporate and regional units is developing a revised policy package which will introduce the PCGs in IDA countries. Such proposals have been discussed at CODE and have received positive response from all stakeholders. It is expected that the revised Guarantee policy paper and associated OP/BPs for the use of IBRD and IDA Guarantees would be presented to CODE in December 2012, and to the Board in Q3FY13. It should be noted that only 25% of guarantee exposure would be counted against the country exposure limit - such leverage for IDA guarantees was approved in 2004. Therefore, for the proposed IDA PCG operation of $40 million, only $10 million would be counted against the country limit. Concept completed on 1 February 2013. Environmental Assessment Category C. Project: P143870. US$ 80.0/138.0 (GUAR/ZPCO). Consulting services to be determined. Ministry of Economy Tel: [phone], E-mail: [e-mail].