EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)
www.mac.doc.gov/bisnis/isa/isa.htm#Misa
www.mac.doc.gov/bisnis/finance/finance.htm
www.ebrd.com
Also: EBRD Transition Report 1999: Ten Years of Transition. Economic Transition in Central and Eastern Europe, the Baltic States and the CIS. European Bank for Reconstruction and Development: London, 1999.
Also: A report (on EBRD finance for small and medium-sized enterprises) that has been posted on the BISNIS web site: http://bisnis.doc.gov/bisnis/finance/000731Financing_for_SMEsIntro.htm
Contacts:
U.S. Commercial Service Liaison to the EBRD
Gene Harris, Senior Commercial Officer
Office of the U.S. Executive Director
One Exchange Square,
London, EC 2A 2EH, United Kingdom
Tel: +(44) 20 7588-4027 or 338-7490
Fax: +(44) 20 7588-4026 or 338-6487
E-mail: harris@ebrd.com
London.ebrd.office.box@mail.doc.gov
EBRD Headquarters in London:
Team Leader: Reinhard Schmoelz
Deputy Team Leader: Istvan Ipper
One Exchange Square
London EC2A 2EH, United Kingdom
Tel: 44 171 338 6000
Fax: 44 171 338 7470
Neil McKain, Commercial Specialist
Tel: +44 171 588 4027
Fax: +44 171 588 4026
E-mail: McKain@ebrd.com
Switchboard/Central contact:
Tel: +44 20 7338 6000
Fax: +44 20 7338 6100
Requests for publications:
Tel: +44 20 7338 7553
Fax: +44 20 7338 6102
E-mail: Pubsdesk@ebrd.com
General enquiries about the EBRD:
Beverly Harrison
Tel: + 44 20 7338 6372
Fax: +44 20 7338 6690
E-mail: harrisob@ebrd.com
Project enquiries/proposals:
Tel: +44 20 7338 6282
Fax: +44 20 7338 6102
E-mail: projectenquiries@ebrd.com
Press enquiries:
Veronique Cassegrain, Senior Press Officer
Tel: + 44 20 7338 7237
E-mail: cassegrv@ebrd.com
Ben Atkins, Press Officer
Tel: +44 20 7338 7236
E-mail: atkinsb@ebrd.com
Julia Zilberman, Press Officer
Tel: +44 20 7338 6640
E-mail: zilbermj@ebrd.com
Press Unit Fax: +44 20 7338 6690
Source: BISNIS Information Service: Funds backed by U.S. Government
& Multilateral Institutions, 2000
Objective: The Fund invests
in export-oriented industries as well as domestic sectors with rapid growth
potential.
Regions: Russia
Manager: Framlington Investment Management Limited
Fund size: $40 million
Funds invested: fully invested
Investment size: Investment ranges $500,000 to $2.5 million
Industries: energy, forestry and paper products, real estate,
communications, tourism, technology, food processing and retailing
Terms of eligibility:
Projects over $500,000
Sound financial state and records
Investee must have a Western partner
No hard liquor, tobacco or firearms
Type of financing:
Equity investment
Terms of investment:
Normally no more than 20% equity position in the project
Contacts:
Gary C. Fitzgerald, Managing Director
155 Bishopsgate
London EC2M 3XJ, United Kingdom
Tel: 44 171 330-6621
Fax: 44 171 330-6432
E-mail: gary.fitzgerald@framlington.co.uk
Tom Vallance, General Director
Konushovskaya St. 30
123242 Moscow, Russia
Satellite Tel: 7 095 937-5933
Satellite Fax: 7 095 937-5934
Source: BISNIS Information Service: Funds backed by U.S. Government
& Multilateral Institutions, 2000
Objective: NEEIF seeks to
assist the former communist countries of East Europe and NIS in their
transition to a market economy.
Manager: Capital International, Inc.
Region: NIS, Central and East Europe
Fund size: $130 million; EBRD: $25 million. IFC: $10 million
Investment size: $5 -15 million
Industries: diverse
Conditions of eligibility:
Newly established private joint ventures
Must have a Western partner
No hard liquor, tobacco or firearms
Type of investment:
Equity
Terms of investment:
Normally no more than 20% of equity
Application Procedure:
To initiate the investment process, the joint venture should fax an outline of
the proposal to Mr. Parker (see below).
Contact:
William E. B. Parker
25 Bedford Street
London WC2E 9HN
Tel: 44 171 257-6748
Fax: 44 020 786-45000
Source: http://www.investment.ru/investor/profiles/
Objective: The RSBF seeks to
finance micro and small enterprises, which often find it difficult to get
loans, and to strengthen the capacity of the Russian banking institutions to
lend in this sector.
Cities: Yekaterinburg, Kemerovo, Moscow, Nizhny Novgorod, Novosibirsk,
Omsk, St. Petersburg, Samara, Togliatti, Tomsk, Tula, Sarov, Snezhinsk and
Zheleznogorsk
Fund size: $300 million; half from EBRD, the other half from donor
countries
Available capital: $285 million
Capital invested since 1994: $350 million
Investment size: For micro loans no minimum; up to $30,000; average:
$7,500
For small loans up to $150, 000
Industries: services, production, and trade (only for micro credit)
Types of financing:
Loans: both micro and small
Conditions of eligibility for micro credits:
Individual entrepreneurs and firms with up to 20 employees may apply for micro
credits
Terms of financing for micro
credits:
Rouble equivalent of $100 to $30,000 at a market interest rate are generally
issued for a maximum of 24 months; as companies build up a credit history, they
are subsequently allowed longer terms and larger amounts for all purposes
(trade services and investment).Conditions of eligibility for small loans:
The fund does not lend to pure start-up businesses. Businesses must have adequate financial standing and cash flow, market demand for their product, and sound management in order to be considered for financing.
Companies with up to 80 employees
are considered, but labor intensity is viewed positively and exceptions are
common.
Terms of financing for small loans: Small loans are available in amounts of up
to $150,000 with maturities of up to three years.
Application Procedure:
Applications are submitted directly to participating banks.
No business plans required.
For micro loans, a decision is generally made within 5 days.
For small loans, a decision is made within approximately 3 weeks.
Contact in Sarov, Snezhinsk, and Zheleznogorsk is through Sberbank.
Contacts:
Elizabeth Wallace, Mike Taylor, Nick Tesseyman
EBRD Russia Small Business Fund
One Exchange Square
London EC2A 2 JN
United Kingdom
Tel: 44 171 338-6511 or 338-7205
Fax: 44 171 338-7163
EBRD Russia Small Business Fund
Ul. Bolshaya Molchanovka 36
Bld.1, 121069 Moscow
Russian Federation
Tel: +7 095 799 55 77
Fax: +7 095 799 55 88
Yekaterinburg
Uralpromstroybank (micro loans)
Ul. Marshal Zhukov 6
620219 Yekaterinburg
Tel: 7 (3432) 512-188
Fax: 7 (3432) 512-438
Source: http://www.ebrd.com/english/opera/COUNTRY/RSBF08.htm
& BISNIS Information Service: Funds backed by U.S. Government
& Multilateral Institutions, 2000
Objective: Sector Capital is
interested in assisting directly in restructuring and refinancing portfolio
companies through coinvestment and project financing. Where appropriate, Sector
Capital will deploy its corporate finance and securities capabilities to assist
directly in restructuring and refinancing portfolio companies.
Region: Russian Far East
Fund size: EBRD equity participation
Investment size: ranges from $500,000 to $2 million
Industries: logistics, transportation, infrastructure
Conditions of eligibility:
Portfolio company
Large-scale project
Type of financing:
Equity investment
Contacts:
Charles Thuss and Jack Barbanel
Box 313
666 5-th Avenue, Suite 572
New York, NY 10103
Tel: (212) 479-1958
Alexander Goodwin
Chief Executive Officer
Sector Capital
Novy Arbat 34, Dom 2
121099 Moscow, Russia
Tel: +7 (095) 290-8656
Fax: +7 (095) 247-2601 or 205-7077
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: The Small
Enterprise Equity Fund provides assistance to small and medium-sized
enterprises beneficial to the local economy.
Region: Nizhny Novgorod area
Manager: Small Enterprise Assistance Funds (SEAF), formerly the CARE
Small Business Assistance Corporation
Fund size: EBRD $5 million
Funds invested: Eighteen investments worth a total of $3.5 million
Investment size: primarily equity funding from $50,000 to $300,000
Industries: Food processing and distribution, green enterprises, light
manufacturing, construction industry suppliers, and business service providers
Conditions of eligibility:
5-150 employees
No start-up or trading companies
Majority Russian ownership
Economic turnover between $100,000 and $2 million preferred
No hard liquor, tobacco or firearms
Types of financing:
Equity investment
Long-term debt
Application Procedure:
Contact the institutional branch
Submit a concrete business plan
Additional note: technical support to the investees will be provided through organizations such as the Citizens’ Democracy Corps, the International Executive Service Corps and the Volunteers in Overseas Cooperative Assistance.
Contacts:
Derek Miller, Chief Investment
Officer
150 Gorky Str. Office #700
PO Box 585
603000 Nizhny Novgorod, Russia
Tel: 7 8312 354-285, or 354-400, 357-345
Fax: 7 8312 354-345
Email: seef@seefnnov.ru
Thomas C. Gibson, President
Small Enterprise Assistance Funds
1150 Connecticut Avenue, N.W.
Suite 715
Washington, D.C. 20036
Tel: (202) 737-8463
Fax: (202) 737-5536
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: SEAF’s mandate is to promote economic development and encourage entrepreneurship in emerging free-market economies. To accomplish this, SEAF introduces, refines and implements commercially sustainable models for providing equity capital and business assistance to local small and medium-sized private enterprises. (Note: SEAF manages SEEF.)
Regions: NIS/East Europe and
Latin America
Fund size: $75 million
Capital invested: $35 million
Investment size: $258,948 avg.Industries: diverse
Conditions of eligibility:
Entrepreneurs whose motivation, training and openness to improvements in their
business indicate that the provision of capital and technical assistance will
enable them to develop stable, successful enterprises, while complying with all
relevant laws;
Small and medium businesses that
will provide training and employment opportunities or will otherwise provide a
lasting, positive impact on the local community.
Type of financing:
Equity participation
Loans
Terms of financing:
SEAF invests in locally registered, private companies in which at least 51% of
ownership interest is held by locally resident people.
In general, SEAF will make no investment which would result in an ownership
position in the investee of less than 20% or more than 49%.
Application Procedure:
Contact the institutional branch
Submit a concrete business plan
Contacts:
Nikolas Wissmann
Suite 1101
1100 17th Street, NW
Washington DC 20036
Tel: (202) 737-8463
Fax: (202) 737-5536
E-mail: nikolas@seafweb.org
or seafhq@seafweb.org
SEEF-Nizhny Novgorod
Director General, Derek Miller
150 Gorky Street, Office 700
P.O. Box 585
Nizhny Novgorod 603000, Russia
Tel: (7-8312) 354-400 or
354 285 or 357-345
Fax: (7-8312) 354-345
E-mail: seef@seefnnov.ru
SEEF-St. Petersburg
Director General, Jonathan Carr
Lermontovsky Prospekt 7, 2nd Floor
St. Petersburg 190008, Russia 89
Tel: (7-812) 114-2632/3181 or 219-5440
Fax: (7-812) 325-6337
E-mail:seefsp@mail.wplus.net
Since 1993, EBRD has established 11 Venture Funds in selected regions of Russia. Each RVF has capital of U.S.$30 million to invest as new equity and quasi-equity capital in medium-sized privatized and other private enterprises to finance projects expected to earn a commercial return. Each RVF is a close-ended fund with a 10-year life. In terms of operation, requirements and criteria of eligibility, most RVFs share similar characteristics. The RVFs covering regions including Sarov, Snezhinsk, and Zheleznogorsk are divided on the chart below and described on the following pages.
|
Fund Name |
Oblasts/Territories |
Donor |
|
Black
Earth |
Belgorod,
Kursk, Lipetsk, Tambov, Voronezh |
European
Union |
|
**Central
Russia |
Ivanovo,
Nizhny Novgorod, South West Kostroma, Yaroslavl, Vladimir |
Germany |
|
Far East
and Eastern Siberia Fund |
Irkutsk
and regions to East including Primorsky Krai Khabarovsky Krai |
Japan |
|
Lower
Volga |
Samara,
Saratov, Volgograd |
United
States |
|
North West
and West Russia |
Archangelsk,
Karelia, Murmansk, Novgorod, Pskov, Tver, Vologda |
Finland,
Norway, Sweden and Italy |
|
St.
Petersburg |
City of
St. Petersburg, Leningrad Oblast |
Germany |
|
Smolensk |
Smolensk |
European
Union |
|
Southern |
Krasnodar,
Rostov, Stavropol |
France |
|
**Urals |
Chelyabinsk,
Perm, Sverdlovsk |
European
Union |
|
**West
Siberia |
Altay,
Novosibirsk, Kemerovo |
European
Union |
Objective: CRRVF is designed
to support medium-sized enterprises that have been privatized under the Russian
Government’s Mass Privatization Programme.
Regions: Russia: Ivanovo, Nizhny Novgorod, Southwest Kostroma,
Yaroslavl, Vladimir
Manager: Quadriga Capital Russia GmbH & Co. KG
Fund size: $30 million
Investment size: minimum $1 million to $3 million
Industries: diverse
Conditions of eligibility:
Medium-sized enterprise
Under 5,000 employees
Strong position in domestic market
Types of financing:
Capital investment
Terms of financing:
Must be used to finance a new project
Return on investment must be commensurate with the risks
At least 75% of the voting shares must be owned by private shareholders
No hard liquor, tobacco, firearms, gambling, financial services, speculative
activities or any of the activities that are on EBRD’s Environmental Exclusion
List.
Application Procedure:
1.
Company
presents an Investment Proposal;
2.
Fund's
investment managers together with the Project team prepare the application to
the Investment Committee in which both the Fund and EBRD specialists take part;
3.
Investment
managers of the Fund start detailed research of the project;
4.
Results
of the research are submitted to the Investment Committee in London for final
approval;
5.
Upon
getting the project approved, a Joint Venture is registered or the share
purchase contract is concluded on behalf of the Fund for the mutually
agreed-upon stake.
The time taken by and the results of the above procedure are directly dependent on the company management’s responsiveness and involvement. The CRRVF investment managers execute major work on the Business Plan. Nonetheless, the management should first present the brief investment strategy, in compliance with the Fund policy. The company’s initial investment proposal should contain the following key elements:
Company presentation
A project/product/service presentation
Marketing plan
Financial justification and historic financials of the company
Contacts:
Kendrick White
Central Russia Regional Venture Fund
Osharskaya St. 52
603006 Nizhny Novgorod
Tel: 7 (8312) 773-255
Fax: 7 (8312) 773-255
E-mail: k.white@quadrigacapital.ru
Leonid Mozheiko
Central Russia Regional Venture Fund
Deputatskaya St. 1
150000 Yaroslavl
Tel: 7 (0852) 328-789
Fax: 7 (0852) 329-183
E-mail: l.mozheiko@quadrigacapital.ru
Peter Stredder
EBRD
One Exchange Square
London EC2A 2EH, UK
Tel: 44-171-338-6824
Fax: 44-171-338-7029
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: FWSRVF is
designed to support medium-sized enterprises that have been privatized under
the Russian Government’s Mass Privatization Programme.
Regions: Russia: Altay, Kemerovo, Novosibirsk and Tomsk
Fund size: EBRD: $30 million. EU: $20 million
Investment size: Minimum $300,000 to maximum $3.3 million
Industries: diverse
Conditions of eligibility:
Medium-sized enterprise
Under 5,000 employees
Strong position in domestic market
Types of financing:
Capital investment
Terms of financing:
Must be used to finance a new project
Return on investment must be commensurate with the risks
At least 75% of the voting shares must be owned by private shareholders
No hard liquor, tobacco, firearms, gambling, financial services, speculative
activities or any of the activities that are on EBRD’s Environmental Exclusion
List.
Application Procedure:
1.
Company
presents an Investment Proposal;
2.
Fund's
investment managers together with the Project team prepare the application to
the Investment Committee in which both the Fund and EBRD specialists take part;
3.
Investment
managers of the Fund start detailed research of the project; Results of the
research are submitted to the Investment Committee in London for final
approval;
4.
Upon
getting the project approved, a Joint Venture is registered or the share
purchase contract is concluded on behalf of the Fund for the mutually
agreed-upon stake.
The time taken by and the results of the above procedure are directly dependent on the company management’s responsiveness and involvement. The FWSRVF investment managers execute major work on the Business Plan. Nonetheless, the management should first present the brief investment strategy, in compliance with the Fund policy. The company’s initial investment proposal should contain the following key elements:
Company presentation
A project/product/service presentation
Marketing plan
Financial justification and historic financials of the company
Contacts:
Josh Dick
Framlington West Siberia Regional Venture Fund
53 Gorky Street
630099 Novosibirsk 99, Russia
Tel: 7 (3832) 959-416/8
Fax: 7 (3832) 959-419
Mobile: 7 (3832) 595-838
E-mail: wsvf@online.ru
Gary C. Fitzgerald, Managing
Director
Framlington Emerging Markets
155 Bishopsgate
London EC2M 3 XJ, UK
Tel: 44 (171) 330-6621
Fax: 44 (171) 330-6432
E-mail: gary.fitzgerald@framlingtonh.co.uk
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: URVF is designed
to support medium to large-sized enterprises that have been privatized under
the Russian Government’s Mass Privatization Programme.
Regions: Russia: Sverdlovsk, Perm, and Chelyabinsk oblasts.
Manager: Eagle Venture Partners - a joint venture between several
leading Belgian, Dutch and French private equity investment companies. EVP is a
result of a merger completed in April 2000 between GIMV/Corpeq Urals Fund B.V.
and three other Funds located in Voronezh, Smolensk, and Almaty (Kazakhstan).
Fund size: $33 million available for investments and possibility to draw
on additional funds for technical assistance. In total the four Funds managed
by EVP have more than $100 million available for investments.
Available capital: $33 million
Investment size: minimum $1 million -- maximum $10 million
Industries:
Conditions of eligibility:
Medium-sized enterprise
Under 5,000 employees
Strong position in the market
Quality of management
Growth perspectives
Types of financing:
Equity investment
Terms of investment:
Must be used to finance a new investment.
The URVF require a minimum shareholding of 25%+1 share to a max of 49%.
The fund must exit from the business within 4-7 years.
The return on investment must be commensurate with the risks.
At least 75% of the voting shares must be owned by private shareholders.
Investees must have a Western partner.
No strong liquor, tobacco, armaments, gambling, financial services, speculative
activities, or any of the activities listed under the EBRD’s Environmental
Exclusion List.
Application Procedure:
1.
Company
presents a Business Plan;
2.
URVF's
investment managers together with the Project team prepare the Investment
Proposal and submit it to the Investment Committee in which both the Fund and
EBRD specialists take part;
3.
Investment
managers of the Fund start detailed research of the project;
4.
Results
of the research are submitted to the Investment Committee in London for final
approval;
5.
On
project approval, a Joint Venture is registered or the share purchase contract
is concluded on behalf of the European Bank and the Fund Manager for the
mutually agreed stake.
The time taken by and the result of the above procedures are directly dependent on the company management’s responsiveness and involvement. The Fund investment managers execute significant work on the Business Plan. The management usually presents a brief investment strategy in compliance with the Fund’s policy. The initial investment proposal should contain the following key elements:
Company presentation
A project/product/service presentation
Marketing plan
Financial justification and historic financials of the company
Contacts:
John Ward, Fund Manager
Elena Klimovitch, PA to John Ward
Eagle Urals Fund
6-th Floor
44 Kuibysheva St.
620026 Yekaterinburg
Tel: 7 - 3432 - 59 61 40/41/43
fax: 7 - 3432 - 59 61 42
E-mail: E.Klimovich@urvf.wtc-ural.ru
E-mail: J.Ward@urvf.wtc-ural.ru
Jan Dewijngaert, Managing Director
Eagle Venture Partners
MCSquare
Lambroekstraat 5
1831 Diegem
Belgium
Tel 32 2 719 00 19
719 00 97
Fax 32 2 719 00 86
E-mail: janDW@gimv.be
Antonio Perez-Montes
EBRD
One Exchange Square
London EC2A 2EH, UK
Tel: 44-207-338-6671
Fax: 44-207-338-7029
Source: Ms. Elena Klimovitch (EUF) & BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
General Background
Ex-Im Bank is an independent U.S. Government agency that helps finance the overseas sales of U.S. goods and services. Ex-Im Bank seeks to create jobs in the United States through the export of U.S. products. Two of Ex-Im Bank’s major goals are to increase the export of environmental goods and services, and to expand the number of U.S. small businesses benefiting from the Ex-Im Bank programs.
Ex-Im Bank Programs in Russia
Ex-Im Bank finances transactions for business ventures that commit the full faith and credit of the national government. There are, however, exceptional cases in which Ex-Im Bank accepts bank guarantees from private commercial banks. Ex-Im has been hesitant to accept sovereign risk in Russia since August 1998. Following the financial crisis of August 1998, in which several major Russian commercial banks failed, Ex-Im has been proceeding cautiously; however, it remains open to extending insurance, guarantees, and credits based on export contract security arrangements, limited recourse project risk, and private commercial bank risk.
Commercial Bank Risk
Ex-Im Bank is open for short and medium-term private sector financing, if a Russian commercial bank acts as obligor or guarantor. In early 2000, transactions were limited to $10 million or less. The Russian bank must be adequately capitalized, and in sound financial condition, and must provide at least three years of financial statements in English, audited by a recognized auditor in accordance with international accounting standards.
Export-Contract Security for Oil and Gas Projects
In July 1993, Ex-Im Bank signed the Oil and Gas Framework Agreement under which Ex-Im Bank may provide finance assistance for purchases of equipment and services to revitalize Russia’s energy sector. Repayment security is ensured through the assignment of hard currency export contracts with reliable offtake parties, with sales proceeds deposited directly into offshore accounts. Applications for final commitments are accepted only from the Russian borrower and only after approval of the transaction by the Ministry of Fuel and Energy. Repayment terms will be five years (or possibly longer, if appropriate). Note: the same model may be used for sectors other than oil and gas.
Asset-Based Financing
Ex-Im Bank is also prepared to consider export security arrangements to assist certain export sectors such as minerals and forest products. Ex-Im Bank will consider loan and guarantee applications in any sector of the Russian economy where the project will generate hard currency export revenues and where the amount of financing by Ex-Im Bank will be significant. Repayment terms and security arrangements will be on a case-by-case basis.
Contacts:
United States
811 Vermont Ave., NW
Washington, DC 20571
(800) 565-EXIM (3946), (202)
565-EXIM (3946)
(202) 565-3380 FAX
(202) 565-3377 TDD,
Telex: 197681 EXIM UT
Oleg Enoukov
The Bank for Foreign Economic Affairs
(Vneshekonombank – VEB)
527 Madison Avenue
New York, NY 10022
Tel: (212) 421-8660; Fax: (212) 421-8677
Russia
Ludmila N. Rybakova
The Bank for Foreign Economic Affairs
(VEB)
3/5 Kopievski pereulok
Moscow 103009
Tel: 7 (095) 204-6384
Fax: 7 (095) 975-2069
Source: BISNIS Information Service, Sources of Finance July 1999
For more information: www.exim.gov
General Background
The OPIC is an independent, self-sustaining U.S. Government agency that encourages private sector U.S. investment overseas by providing investment finance and insurance to large and small American businesses making long-term investments.
OPIC Programs
Project Financing
OPIC offers loans and loan guarantees that help American companies open new businesses or expand existing ones overseas. OPIC’s long-term, limited recourse project financing is available to ventures involving significant equity participation by U.S. businesses. Loan guarantees range in size from $10 million to $200 million and are typically used for larger projects, while direct loans are reserved for small businesses and cooperatives and generally range from $2 million to $30 million. Loan packages are individually structured for each project, and OPIC looks for repayment from the revenues generated by the project itself.
Political Risk Insurance
OPIC protects U.S. investors against political risks overseas by offering insurance for American investments that covers companies against expropriation, political violence, and currency inconvertibility. OPIC’s policies are available with terms up to twenty years and for amounts up to $200 million per project. OPIC has special programs for infrastructure development, financial institutions, leasing, natural resources, and oil and gas projects. For the coverage, companies pay market-based fees and premiums.
Investment Funds
OPIC provides loan guarantees to support privately owned and managed investment funds that make equity investments in new, expanding or privatizing enterprises around the world. OPIC funds are currently operating in nearly every region of the world, including six concentrating their investments in the NIS. The investment funds are privately owned, privately managed, and make their own commercially–based investment decisions. Sponsors seeking long-term growth capital for their projects should approach the appropriate fund directly. Contact the OPIC Information Officer at (202) 336-8799 for a list of funds.
OPIC Requirements
OPIC in Russia:
In an effort to be more responsive to small U.S. companies seeking OPIC financing for investments in emerging markets, OPIC is, on a pilot basis, offering an expedited approval process for loans under $2.5 million. These loans will be given fast track consideration provided that the project does not conflict with OPIC policies. The program gives priority to loans for projects in the services, technology, food and food processing, manufacturing, and distribution sectors. In 1999, six projects were approved under this program.
Many of the OPIC projects have been concentrated in Moscow and St. Petersburg, but there are intentions to move into the hinterland. The OPIC has a major investment in Sakhalin, where it is financing 1/3 of a billion-dollar project. EBRD and Japan’s Ex-Im Bank are financing the rest. OPIC usually can finance up to $200 million, but there can be exceptions to that limit, as in the case in Sakhalin.
OPIC in Russia is shifting its emphasis somewhat toward smaller businesses, whereas formerly they would not become involved in any projects below $1 million. The period of a loan can be as much as 15 years with a 3-year grace period during which interest only is required. This long-term aspect makes the program an interesting complement to the EBRD operations in Russia. OPIC generally requires a three-year track record for a project, but for some of the smaller loans, this can be shortened.
OPIC coordinates with other financiers such as EBRD and Ex-Im Bank. Though no longer engaged in feasibility studies itself, OPIC extensively coordinates with TDA in that particular aspect of its operations in Russia.
Contacts:
James Gale, Ron Jonkers
Overseas Private Investment Corporation
1100 New York Avenue., N.W.
Washington, DC 20527-0001
Tel: (202) 336-8629 Gale, (202) 336-8425 (Jonkers)
Fax: (202) 408-5145
General OPIC info-line: (202) 336-8799
Small Business Hotline: (202) 336-8610
For general inquiries or loan inquiries related to small businesses:
Investment Development, OPIC Small
Business Adviser
smallbiz@opic.gov
Phone: (202) 336-8621
Fax: (202) 408-5145
For inquiries related to insurance
for small businesses:
Insurance Small Business Group
ins-sbg@opic.gov
Phone: (202) 336-8400
Fax: (202) 408-5142
Christina Halpern
Tel: (202) 336-8507
E-mail: chalp@opic.gov
Source: www.opic.gov
Objective: The AIG-Brunswick
Millennium Fund seeks to achieve substantial long-term capital appreciation
through the purchase, active participation in management, and disposition of a
portfolio of direct equity investments in the NIS. The fund will make direct
investments in equity and equity related securities of enterprises directly or
indirectly operating in the NIS.
Region: NIS/Russia
Managers: AIG - Brunswick Capital Management, Ltd.
Fund size: $289 million; committed
Investment size: $2 million – $30 million
Industries: natural resources, infrastructure, and consumer products
Conditions of eligibility:
Medium and long-term projects
Types of financing:
Equity investment
Equity-related securities
Contact:
William Jarosz, Managing Director
AIG Capital Partners
175 Water Street
New York, NY 10370
Tel: (212) 458-2289
Fax: (212) 809-2581
Source: Robert Howe, former managing director of AIG-Brunswick, Ltd.
Objective: The Fund provides
mezzanine financing for international expansion opportunities.
Region: Global/Russia
Fund size: $20 million
Industries: basic manufacturing, telecommunications, retail, and service
industries
Conditions of eligibility:
Later-stage investment/ no start-ups
Must have a U.S. business sponsor
Type of financing:
Equity investment
Contacts:
Cabell Williams, Managing Director
or Richard Fearon, Principal
Allied Capital Corporation
1666 K Street, N.W., 9-th floor
Washington, DC 20006
Tel: (202) 331-1112
Fax (202) 659-2053
E-mail: Williamc@alliedcapital.com
Fearon@alliedcapital.com
Source: BISNIS Information Service, Sources of Finance July 1999
Objective: This Fund seeks
to assemble a portfolio of quality property assets, through purchase and
development. Fund transactions will include combinations of loans and equity
investments, depending on project and market conditions. Thus, the Fund will
acquire property interests either directly or through joint ventures.
Region: E. Europe/NIS/Russia
Manager: Pioneer Real Estate Advisors
Fund size: $240 million; OPIC $160 million, sponsor equity $80 million
Funds invested: Beginning first round of investment
Industries: commercial, light manufacturing, office, retail,
distribution, warehousing and related residential development projects.
Conditions of eligibility:
Must have U.S. business sponsor
Types of financing:
Loans
Equity investment
Contacts:
Mr. Amos Rogers, III
Pioneer Real Estate Advisors
60 State Street, 18-th Floor
Boston, MA 02109
Tel: (617) 422-4886
Fax: (617) 422-4217
Greg Hunt
CEENIS Property Fund
372 Washington Street, 3-rd floor
Wellesley, MA 02181
Tel: (781) 431-2600
Fax: (781) 431-1007
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: The purpose of
the fund is to achieve long-term capital growth through investment in a
portfolio of companies doing business in Russia/NIS.
Region: NIS (60% Russia), Baltics
Manager: BPEP Management (UK) Limited, at Baring Private Equity Partners
Fund size: $145 million; OPIC $40 million; EBRD $20 million; IFC $15
million
Investment size: ranges from $3 million to $10 million
Industries: diverse
Conditions of eligibility:
Respectable industries
Progressive and capable management
Sufficient earnings and cash-flow
Compelling valuations on asset and earnings basis
Types of financing:
Equity investment
Direct investment
Contacts:
Tara Nicklin or David Huckfield
BPEP Management (UK) Limited
Baring Private Equity Partners
33 Cavendish Square
London W1M 0BQ
Tel: 44-207-290-5000
Fax: 44 207-290-5020
M.J. Calvey or Paul Roberts
Baring Vostok Capital Partners
10, Uspenski per.
103003 Moscow, Russia
Tel: 7-095-967-1300
Fax: 7-095-967-1308
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: The Fund seeks
significant minority positions in operating companies or projects in emerging
market economies.
Region: Global/Russia
Fund size: GEEMF I--$70 million; GEEMF II--$120 million. OPIC guarantee:
$80 million
Funds invested: approximately $70 million
Investment size: Up to $10 million from GEEMF I, and up to $20 million
GEEMF II
Industries: environment-oriented industries, especially those engaged in
developing financing, and in operating or supplying infrastructure projects
related to the delivery of clean energy (natural gas and renewable sources),
potable water, and wastewater treatment.
Conditions of eligibility:
Sufficient cash flow
Significant long-term revenue growth potential
High anticipated margins or profits from operations
Significant U.S. ownership
Types of financing:
Equity and equity-related investment
Contact:
H. Jeffrey Leonard
Global Environment Fund
1201 New York Avenue, NW Suite 220
Washington, DC 20005
Tel: (202) 789-4500
Fax: (202) 789-4508
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: The Fund plans to
make equity investments in large infrastructure projects including power,
transportation, natural resource development and related industries.
Fund size: $300 million
Region: Baltic/NIS
Type of financing:
Equity
Contact:
Gordon H. Taylor
70 Pine Street
New York, NY 10270
Tel: (202) 770-7000
Objective: The Fund seeks
substantial majority or minority positions in infrastructure or natural
resource-based businesses.
Fund size: $250 million
Funds invested: $200 million (as of July 2000)
Industries: diversified manufacturing, financial and service industries,
real estate.
Region: NIS/Russia
Conditions of eligibility:
No start-up companies
Types of financing:
Equity Investments
Contact:
Gil Schorr
NCH Capital Inc.
712 Fifth Avenue, 46-th Floor
New York, NY 10019-4108
Tel: (212) 641-3275
Fax: (212) 641-3201
E-mail: gil@nchcapital.com
Source: BISNIS Information Service, Sources of Finance July 1999
Objective: The Fund seeks to
participate in new and expanding enterprises in Russia, including the newly
privatized.
Region: Russia/NIS
Fund size: $155 million. Partially guaranteed by OPIC and the Russian
government.
Investment size: Average investment ranges from $2 million to $10
million
Industries: telecommunications, media, manufacturing, natural resource
processing, pharmaceuticals, and consumer goods.
Conditions of eligibility:
New and expanding enterprises
Companies with Western strategic partners considered desirable
Types of financing:
Equity and quasi-equity securities
Terms of financing:
No more than 15% of the Russia Partners Fund’s assets will be invested in any
portfolio company
Total investment will not exceed 25% share in any business sector or venture
Additional note: Whenever possible, Russia Partners Company will attempt to use its investment to leverage loans from other sources, such as EBRD or the IFC.
Contacts:
Drew Guff, Managing Director
Russian Partners Management, L.L.C.
c/o Siguler, Guff and Company
Rockefeller Center
630 Fifth Avenue 16-th Floor
New York, NY 10011-0100
Tel: (212) 332-5100
Fax: (212) 332-5120
Vladimir Andrienko, Managing
Director
Michael Schneyderman, Managing Director
Russia Partners Management
Bolshoy Afanasievskiy Pereulok
Building 8/3, 3-rd floor
121019 Moscow, Russia
Tel: 7 (095) 234-3095
Fax: 7 (095) 234-3099
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: NRSBIF makes loan
funds available to carefully evaluated co-operating Russian banks for jointly
approved small business projects.
Region: Russia
Fund size: Approximately $3.5 million; U.S. Department of Agriculture /
USAID
Average Investment Size: Approximately $50,000 to $200,000
Conditions of eligibility:
The business project must be commercially sound.
Type of Financing:
Debt
Terms of Financing:
The usual term of the loan is 18 months;
Loan funds for these projects available to co-operating banks only on the basis
of bank guarantees of repayment.
Industries: Diverse
Contact:
Jack Heller, President
Peter Rosenblatt, Vice President
1501 M Street NW 7th Floor
Washington D.C. 20005
Tel: 202-466-4700
Fax: 202-223-4826
E-mail: 5628502@mcimail.com
Source: BISNIS Information Service: Funds backed by U.S. Government & Multilateral Institutions, 2000
Objective: The U.S. Russia
Investment Fund is a private investment firm set up by the U.S. government to
promote the development of a free market economy in the Russian Federation. The
Fund is authorized to receive $440 million to make equity capital, loans and
technical assistance available to private businesses operating in Russia. The
Fund’s mandate is to encourage private sector development while assisting in
the long-term growth and profitability of businesses of all sizes throughout
Russia.
Region: 16 regions, including Moscow, St. Petersburg, Rostov-on-Don,
Yekaterinburg, Khabarovsk, Krasnodar, Vladivostok and Yuzhno-Sakhalinsk
Fund Size: Revolving $440 million (USAID)
Management: Delta Capital Management since 1999.
Capital invested: approximately $185 million as of July 31, 2000.
Investment size: Investment ranges from $10,000 (small-business loans)
to $10.5 million (direct investment)
Industries: diverse
Conditions of eligibility:
Private Russian enterprises of all sizes, Russian-Western joint ventures and
Western firms operating in Russia Commercially viable business sector
Committed and progressive management team
Coherent business plan and thoughtful vision for development
Types of financing:
(1) Direct Investment (Equity financing) – Since 1995, the Fund has invested $125 million in 33 companies. The Fund will consider investments in a broad range of Russian business sectors, but places a special emphasis on financial services, retail/consumer businesses, pharmaceutical distribution, health care, and media and telecommunications. The principal examples of the portfolio include Russian market leaders like Sun-Interbrew, one of the country’s largest brewers, StoryFirst Communications, a prominent independent broadcast company, and Port.ru, one of Russia’s biggest Internet portals.
(2) Small Business Loans – The Fund is one of the few investors, whether local or foreign, offering long-term loan financing for working capital and equipment to the small business sector. Despite the surging need for such financing by businesses, many Russian banks consider either small loans not worthy of their effort, and/or are not in a position to offer long-term credits. During the last year, the Fund has disbursed up to $2.5 million per month in loans to small businesses in 16 Russian regions. On average a loan is provided at a 15 percent to 18 percent interest rate for a period of up to two years.
Applications forms for small business loans are available through all Fund offices and 26 Partner Banks.
(3) Mortgage Lending – The U.S. Russia Investment Fund is the first western organization to offer long-term residential mortgage loans in the Russian market through its full-service mortgage company, DeltaCredit. The company provides long-term finance, training, and mortgage technology to originate and service mortgage loans to 15 Russian banks that act as correspondent lenders within the mortgage program. It has also established the DeltaCredit Strategic Alliance, which links DeltaCredit to the Russian Guild of Realtors agents nationwide. Potential mortgage clients can access DeltaCredit’s Call Center by calling 7 (095) 230-6060 or through the Internet at www.deltacredit.ru. Both the call center and the Internet site provide valuable information about mortgage finance and even allow clients to pre-qualify themselves for a mortgage loan.
(4) Auto Lending – In June 1997, the Fund launched an auto-lending program that has since disbursed over $6 million to seven partner banks in four cities. The banks have used the credits to finance over 1,100 car loans for private individuals in Russia. The maximum loan amount is $30,000 and can cover as much as 70 percent of the car value. The loan maturity has recently been increased from up to 24 months to 30 months. Most of the major authorized car dealerships, including Ford, Volvo, Mazda, Toyota, Audi, Renault etc., have joined the program. For more information, please see www.carloan.deltacap.ru.
(5) Bank Partner Program – To implement financing of small-business loans, as well as mortgage and car loans, the Fund set up a special Bank Partner program. Specialists in 26 participating regional banks are extensively trained on credit methodology and underwriting. An analyst employed in Moscow is in daily contact with these banks and prepares a monthly risk analysis on these banks and maintains a risk rating system. Regional banks manage local loan disbursement and subsequent monitoring. Penetrating the regional markets through the bank partner network has proven to be effective: Since the August 1998 crisis, the loan repayment rate has remained above 98 percent.
(6) Trade Finance – The trade finance program was launched at the end of September 1999, when the Fund selected MDM-Bank as a partner for implementing trade financing. MDM has firmly established its presence in the Moscow market and has grown significantly since the August crisis in 1998. It has a branch in Vladivostok, covering the Russian Far East (RFE) and plans to expand further in Northwest Russia and certain Siberian cities. MDM carries 100 percent risk for each deal and it controls the multi-step trading process. The bank screens the participating companies and performs extensive due diligence on them; arranges the trade and collateralization procedures; helps companies to insure the goods; and closely monitors implementation of each step of the transaction.
The following are the main criteria by which companies are selected and a deal approved:
The Fund can
provide partial or full financing for an export-import operation for up to
$250,000. This trade finance arrangement would enable a company to sell goods
to a sound Russian company that otherwise might not have sufficient liquid
capital. To access financing, a foreign company can open an account, or request
its Russian counterpart to open an account in the bank and register their
export/import contract. The bank will evaluate the companies and make its
recommendations to The U.S. Russia Investment Fund. An interested company can
contact the Fund to be directed to MDM-Bank. Overall, the total interest on a
credit for up to six months can be up to 19 percent (annualized rate) for a
company, although this rate varies significantly depending on the risk factor,
companies participating, etc.
(7) Leasing – In May 1999, the Fund established the leasing company DeltaLeasing. The leasing program was first launched in Rostov-on-Don through the acquisition of a local leasing company. By October 1999, the program had expanded to Moscow, St. Petersburg, Yekaterinburg, and Krasnodar. DeltaLeasing is able to access directly Russian companies without using the banks as intermediaries. As in the fund’s small business lending program, DeltaLeasing has found its niche: leasing of $5,000 to $250,000 worth of equipment for a period of up to 36 months.
Application Procedure for Fund loans programs and direct investment:
The Fund will consider investment proposals from enterprises involved in almost all business sectors as long as they are commercially viable and exhibit the potential for growth and profit generation. The business should have a committed and progressive management team, a coherent business plan and a clear vision for development. Investment proposals submitted to the Fund should contain the following information to the extent possible:
a) A description of the project or
a business plan, if available;
b) A description of the company including legal status, ownership and
governance structure;
c) Qualifications and experience of senior management;
d) A description of the product or service to be sold, including the raw
materials and components and sources of their supply, where applicable;
e) An overview of the industry and potential competitors;
f) A description of the customers and the system by which the products are
distributed;
g) An overview of the market for this product or service, including sales figures in units of dollars or rubles and the company's current and projected share of the market;
h) Historical financial statements and financial projections for the company and for the specific products or services;
i) Estimates of the projected sources and uses of funds for the business;
j) The names of any existing or potential joint venture partners;
k) Contact person(s) for follow-up.
Once received, a proposal will be reviewed by a team of business analysts and
managers and evaluated for its ability to meet the Fund's investment criteria.
The Fund seeks to respond to an initial submission in a timely manner. The Fund
will then inform the applicant whether or not it wishes to continue to evaluate
the opportunity.
If the Fund does elect to proceed further on a project, it will then agree with the project sponsors on a work plan designed to complete the evaluation of the project as soon as reasonably possible.
Contacts:
New York
Project Coordinator
The U.S. Russia Investment Fund
545 Fifth Avenue, Suite 300
New York, NY 10017
Tel: (1-212) 818-0444
Fax: (1-212) 818-0445
Moscow
Project Co-coordinator
The U.S. Russia Investment Fund
2/3 Paveletskaya Square, 5th Floor
Moscow, 113054 Russia
Tel: (7-095) 960-3131
(7-501) 960-3131
Fax: (7-095) 960-3132
(7-501) 960-3132
reception@deltacap.ru
St. Petersburg
5 Italianskaya Ul., Office 53
St. Petersburg, Russia 191011
Tel: (7-812) 315-7035 or 325-9067
Fax: (7-812) 315-8264
Yekaterinburg
194 Lunacharsky Street, Office 301
Yekaterinburg, Russia 620026
Tel: (7-3432) 615982 or 592909
Fax: (7-3432) 592908
Source: Delta Capital Management Inc./The U.S. Russia Investment Fund, www.tusrif.ru or www.deltacap.ru, Masha Hedberg mhedberg@deltacap.ru
Objective: The TDA assists
in the creation of jobs for Americans by helping U.S. companies pursue overseas
business opportunities. Through the funding of feasibility studies, orientation
visits, training grants, conferences and various forms of technical assistance,
TDA enables American businesses to become involved in the planning stages of
infrastructure and industrial projects in middle income and developing
countries. By doing this, it provides American firms with market entry,
exposure and information, thus helping them establish a position in markets
that are otherwise difficult to penetrate.
Region: Global; developing and middle-income countries
Expenditure in 1999: Global $57,046,863; NIS $9,931,541
Sectors of Activity: agribusiness, energy & power, manufacturing,
mining & natural resources, telecommunications, transportation, water &
environment
Activities: feasibility studies, orientation visits (reverse trade
missions), technical assistance, trade-related training, procurement
assistance, conferences & symposia
Conditions of Eligibility:
A project must:
Type of
Funding: Grants
TDA in the NIS: TDA has programs throughout the world, and in late 1991 was authorized to operate in the New Independent States (NIS) of the former Soviet Union. Since that time, TDA has approved funding of about $80 million for feasibility studies on more than 200 major projects in the NIS. Exports of U.S. goods and services related to those projects already total over $600 million.
Feasibility Studies: TDA provides grant funding for studies to determine the technical, economic, and financial feasibility of major projects and to provide detailed data for making decisions on how to proceed with project implementation. Historically, most TDA projects have been public sector undertakings, planned and implemented by government ministries or agencies. Increasingly, however, developing countries, including the NIS countries, have begun to promote private sector involvement in major infrastructure and industrial projects. Consequently, TDA now provides funding for both public and private sector projects, including joint ventures in which U.S. companies plan to acquire equity.
How TDA Operates: To initiate TDA consideration of a project, a request for assistance must be made directly to TDA by the appropriate NIS sponsoring entity (government or private sector). In cases where a specific U.S. company has been identified by the NIS sponsoring entity as its partner on the project, that U.S. company must submit a detailed proposal to TDA following a format which is available from TDA.
If a project appears promising, TDA hires its own technical consultant to review the project, through either a Desk Study or a Definitional Mission (DM). A Desk Study is a review of the project by the consultant in the United States, and is utilized when there is already sufficient information available so that a visit to the host country is not necessary. This is usually the case when TDA has received a detailed proposal from a U.S. company. A DM involves a short visit by the consultant to the host country to gather additional information on the project and work with the sponsoring entity to develop terms of reference and a budget for the feasibility study.
The Desk Study or DM ascertains whether a project meets the following four TDA funding criteria: the project is a developmental priority for the host country; financing for project implementation has been identified and is available if the study confirms project feasibility; the potential for U.S. exports during project implementation is significant (potential U.S. exports of at least $10-15 million); and TDA has a facilitative role to play.
When TDA provides funding for a feasibility study, it signs a Grant Agreement with the
NIS sponsoring entity (the Grantee), and it is the Grantee that selects the U.S. firm
to conduct the study. In many cases, the Grantee already has identified that firm (typically the firm that has submitted the proposal to TDA). In other cases, a competitive selection process is undertaken by the Grantee. In either case, the selected U.S. contractor signs a contract with the Grantee to conduct the study.
While the Grant Agreement is signed by TDA and the Grantee, no funds are actually transferred to the Grantee. Instead, the U.S. contractor conducts work under its contract with the Grantee and submits its invoices to the Grantee, who, if satisfied with the work, approves the invoices and forwards them to TDA. The TDA then pays the contractor directly in the United States.
In almost all cases TDA requires cost-sharing, i.e., TDA only partially covers the cost of the feasibility study, with the remainder of the cost being borne by the U.S. firm conducting the study. TDA's contribution varies according to a number of factors, including, among other things, the size of the firm, the potential follow-on benefit to the firm as supplier to or investor in the project, the costs the firm has already incurred in developing the project, and the risks associated with the project. In addition, in appropriate cases, TDA may require the firm conducting the study to reimburse the TDA funding if the project is implemented and the firm reaps a substantial economic benefit.
Initial Application Procedure: In order to obtain TDA funding for a project, an individual or entity must familiarize itself with TDA's programs and resources. If a project is located in a nation where TDA is active, the project must meet all of the above-mentioned requirements of eligibility. If a project qualifies, documentation and research must be prepared to confirm this information. Begin with a one or two-page summary. Describe your company, its capabilities, resources, and personnel; all are important criteria in TDA's overall review of each project application. Then contact the TDA Country Manager responsible for the country where the project is located. A telephone or office appointment will be arranged for an informal review of the proposal. For formal application, obtain a copy of TDA's Feasibility Model Format and follow the instructions carefully. TDA will review the project and inform you of its ability to be of assistance.
Contacts:
Daniel Stein, NIS Regional Director
or
Jennifer Snyder, Country Manager (Russia and Turkey)
U.S. Trade and Development Agency
1621 North Kent Street, Suite 200
Arlington, Virginia 22209-2131
Tel: (703) 875-4357
Fax: (703) 875-4009
E-mail: info@tda.gov
Source: TDA Annual Report of 1999; TDA brochure on NIS, 2000
www.tda.gov & BISNIS Information Service, Sources of Finance July 1999
Objective: To promote
economic reform and the development of indigenous, productive enterprise by
providing quick and flexible small grant financing to NIS organizations and to
projects designed and submitted by applicants.
Region: Newly Independent States (Offices in Almaty, Baku, Gyumri, Kiev,
Moscow, Saratov, Tbilisi, Tashkent, Vladivostok, Washington DC, and Yerevan)
Fund size: The Eurasia Foundation has invested $94.5 million in over
4,700 grants since it began grantmaking operations in 1993. In 1999 the Eurasia
Foundation awarded over $18.2 million in grants to some 1,000 projects.
Priority Areas:
The Eurasia Foundation funds non-profit, government, and university
organizations operating in the following areas:
Private enterprise (assisting small- and medium-sized enterprises, generating
employment, fostering self-sustaining business communities);
Public administration and policy (regional and city governments);
Civil society (i.e., media outlets, NGOs);
The Eurasia Foundation also makes
loans to NIS commercial banks to guarantee their small business lending programs.
Conditions of Eligibility:
Non-profit or comparable
institution (i.e. universities and government agencies);
Funds also available for initiatives by private businesses or institutions if
the project is not for profit (aside from Small Business Lending Program);
To receive funding, organizations must meet the Eurasia Foundation standards
for financial accountability.
Types of Financing:
Small, ongoing grant programs (Average amount is $20,000;
Institutional/governmental partnership grants average $100,000)
Application Procedure:
Submit 2-3 page letter of inquiry describing the objectives of the program. The
letter may be in any NIS language, however, it must be accompanied by an
English or Russian translation.
If prompted, submit a grant proposal
that includes Basic Information about the organization, a Project Description,
a Project Design and Evaluation Plan, and a Program Budget.
Contacts:
Program Office (Molly Rushefsky)
The Eurasia Foundation
1350 Connecticut Avenue, Suite 1000, NW
Washington, DC 20036
Tel: (202) 234-7370
Fax: (202) 234-7377
E-mail: eurasia@eurasia.org
Central Russia and Siberia regional
Office
14 Volkhonka St., 4-th Floor, Room 403
Moscow 119842 Russia
Tel: 7-095 956-1235
Fax: 7 095 956-1239
E-mail: efmoscow@eurasia.msk.ru
Source: www.eurasia.org
General Background
The World Bank Group, a multilateral financing agency, supports development projects and sector-specific investment programs to build capital infrastructure in developing and transitional countries. The World Bank’s central purpose is to reduce poverty and improve living standards by promoting sustainable growth and investment in people.
Since its inception in 1956, the World Bank has provided more than $200 billion in financial and technical assistance for developing countries to stimulate economic growth and stability. Russia became a member in the summer of 1992. By understanding how the World Bank operates, U.S. companies can identify great opportunities generated by bank-supported projects. However, unlike Ex-Im Bank and OPIC, the World Bank and other multilateral bank opportunities are open to foreign as well as U.S. firms.
The World Bank Group consists of five closely-associated institutions: International Bank for Reconstruction and Development (IBRD), International Development Association (IDA, which is not discussed in-depth in this document because Russia is not eligible for IDA credits), International Center for Settlement of Investment Disputes (ICSID), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).
Monthly Operational Summary
As a part of its increasing transparency policy and increase opportunities to all American and other countries’ firms, the World Bank recently put its "Monthly Operational Summary" on-line at: http://www.worldbank.org/html/opr/procure/MOS/contents.html
It is recommended that one check for any updates of projects when the site is updated, namely, on the 16th of each month.
For information on working with the World Bank, one should refer to the US Commercial Service/Multilateral Development Bank Office website at: http://www.usatrade.gov/mdbo/ (which provides up-to-date, competitive intelligence on how best to work with the opportunities contained within the Monthly Operational Summary).
Contacts:
Business Partnership Center
The World Bank Group
1818 H Street, N.W.
Washington, DC 20433
E-mail: Business_Partner@Worldbank.org
Tel: (202) 522-4272
Fax: (202) 522-1727
Important Contacts:
Europe and Central Asia
Fax: (202) 522-3362
Jan Pakulski
Phone (202) 473-1797
Email: jpakulski@worldbank.org
Gina C. Ciagne
Tel: (202) 458-4166
Email: gciagne@worldbank.org
For specific information on World Bank funded projects, U.S. companies may contact:
Janice Mazur
US &FCS Commercial Liaison to the World Bank
Janice.Mazur@mail.doc.gov
Office of the U.S. Executive Director
1818 H Street, NW
Washington, DC 20433
Tel: (2020) 458-0118
Fax: (202) 477-2967
For general information on World Bank funded projects or other multilateral development bank opportunities, U.S. companies may contact:
Multilateral Development Bank
Operations
United States and Foreign Commercial Service
U.S. Department of Commerce
Ronald Reagan Building and International Trade Center
Mail Stop- MDBO
Washington DC 20230
Tel: (202) 482-3399
Fax: (202) 482-3914
E-mail: Mdbo.Banks@mail.doc.gov
Internet: http://www.usatrade.gov/mdbo
For general information on exporting or to find the closest Department of Commerce Export Assistance Center to your business, contact:
The Trade Information Center
U.S. Department of Commerce
USA Trade Center
Mail Stop –TIC
Ronal Reagan Building and International Trade Center
Washington, DC 20230
Tel: (202) 482-0543 or (800) USA-TRAD(e)
Fax: (202) 482-4473
Internet: http://www.ita.doc.gov/tic
U.S. Department of Commerce
STAT-USA
Ronald Reagan Building and International trade Center
Mail Stop- Stat-USA
Washington, DC 20230
Tel: (202 482-1986 or 1(800) STAT-USA
Fax: (202) 482-2164
Internet: http://www.stat-usa.gov
Development Business
P.O. Box 5850
Grand Central Station
New York, NY 10163
Tel: (212) 963-1516
Fax: (212) 963-1318
E-mail:dbusiness@un.org
The World Bank InfoShop
701 18-th Street, NW
Washington, DC 20433
Tel: (202) 473-2941 for information on publications
Fax: (202) 477-0604
Tel: (202) 458-5454 for information on operational documents
Fax: (202) 522-1500
The World Bank Monthly Business Briefing
The World Bank Group offers a Monthly Business Briefing, a one day program held at the Bank headquarters designed to familiarize private firms with the World Bank Group. Fees are $100 per attendee. The one-day program offers seminars on How to Get Business from World Bank Projects, an Overview of the World Bank and Consulting Services.
Contact:
Ivonna Lejuez
Monthly Business Briefing
The World Bank
Room MC 10-442
1818 H St. N.W.
Washington, DC 10433
Tel: (202) 473-1819
Fax: (202) 522-3317
The IFC is the world’s largest source of direct project financing for private investment in developing countries. The IFC is a member of the World Bank Group and its operations supplement those of the other members. The institution seeks to further economic development in member nations through debt and equity investments. The IFC acts as a catalyst to promote private sector investment in its developing member countries.
IFC has a strong and conservative capital structure. One unique aspect of its capital is that it is fully paid in, rather than partially paid in and partially callable (as in most multilateral development banks). Since it began its operations in 1956, IFC has been associated with more than 2000 companies and financial institutions in supporting over 1000 business ventures in more than 90 countries. The total capital cost of these projects amounts to more than $60 billion.
The IFC invests in all types of projects, both large and small. It invests in ventures in heavy industry that supply essential materials and equipment for other domestic enterprises and also earn foreign exchange through exports. It also invests in light industries or regional consumer and industrial demand.
In order to receive IFC funding, a project must be in the private sector; it must be technically sound; it must have a good prospect of being profitable; and it must benefit the local economy. The project must also be environmentally sound. To ensure the participation of other private investors, IFC funding is usually limited to 25 percent of the total project cost. Investment in small and medium-sized projects range from $100,000 to $1 million, and in larger projects from $1 million to $100 million.
IFC’s versatility and adaptability are evident in the variety of types of financing it provides. IFC can invest in equity, make loans, underwrite securities offerings, and provide standby financing, in any combination; it can also organize the syndication of loans, enabling commercial banks to participate in IFC’s loans. IFC’s loans usually have maturities of seven to twelve years and are made at fixed or variable rates. The syndicated portion of IFC’s financing is normally made at floating rates. Loans are usually denominated in U.S. dollars, but can be made in other currencies, depending on a project’s requirement.
IFC offers three broad and complementary services: project finance, resource mobilization, and advisory services.
Financial Products: IFC provides fixed and variable-rate loans in a variety of leading currencies. These loans typically have maturities of 8 to 12 years, with grace periods and repayment schedules determined on a case by case basis in accordance with the borrower’s cash flow needs. If warranted by the project, IFC provides longer term loans and longer grace periods.
IFC’s equity investments are based on project needs and anticipated returns. The Corporation is never the largest single shareholder and does not take an active role in company management. To meet national ownership requirements, its share-holdings can, in some cases, be treated as domestic capital or "local" shares. IFC usually maintains its equity investments for a period of 8-15 years and is considered a long-term investor. IFC’s preferred objective is to sell its shares through the domestic stock market.
IFC provides a full range of quasi-equity finance, including convertible debentures, subordinated loans, loans with warrants, and other instruments. These products are provided when necessary to ensure that a project is soundly funded.
Other financial products offered by IFC include credit and equity lines, venture capital, and leasing. The Corporation invests in credit lines and private equity funds to make longer-term finance available to small and medium-sized enterprises as they seek to enhance their competitiveness in more open economies around the world.
Resource mobilization: IFC raises additional funds from foreign commercial banks by encouraging other institutions to make investments in its projects through the Corporation’s loan participation program. It helps individual companies from emerging markets to tap international capital markets. IFC also raises funds from institutional investors through underwriting arrangements for public offerings or the private placement of shares, debentures, and other corporate securities.
Advisory services: IFC’s third major area of assistance is advisory services offered independent of project financing. Advisory services are provided for a wide range of activities, including project assistance, privatization and restructuring, capital markets development, foreign investment, and advice on small and medium-sized business development
Application Procedure:
There is no standard application for IFC financing. A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly. This can be done by requesting a meeting or by submitting preliminary project or corporation information. After these initial contacts and a preliminary review, IFC will request a detailed feasibility study of the company or entrepreneur’s business plan to determine whether or not to appraise the project.
Contacts:
Corporate Relations Unit (general
inquiries)
2121 Pennsylvania Avenue , NW.
Washington, DC 20043
Tel: (202) 473-9331; Fax: (202) 974-4383
E-mail: information@ifc.org
Kutlay Ibiri
E-mail: Kebiri@ifc.org
Elena Bourganskaya
E-mail: Gelena@ifc.org
Paulo Mendes, Social Sector Group
E-mail: Pmendes@ifc.org
Moscow Representatives
Edward Nassim, Director
Richard L. Ranken, Manager, General Manufacturing
Pushechnaya St. 2
103012 Moscow, Russia
Tel: +7 (095) 883-7056, or 755-8818, or 913-7054
Fax: +7 (501) 775-8296, or 755-8298, or +7 (095) 913-7053
Source: BISNIS Information Service, Sources of Finance July 1999, www.ifc.org
MIGA was created in 1988 in response to the twin debt crisis of the 1980s; the 29 founding governments shared a conviction that the heavily indebted countries needed to rely more on private enterprise and foreign private investment, an expandable growth resource that would not compound their debt problems. The core mission of MIGA seeks to enhance the flow to developing countries of capital and technology for productive purposes under conditions consistent with their development needs, policies, and objectives, and on the basis of fair and stable standards for the treatment of foreign investment. The Agency is designed to encourage foreign direct investment through its own investment by providing viable alternatives in investment insurance against non-commercial risks in developing countries, thereby creating investment opportunities in those countries.
MIGA has a capital stock of SDR 1 billion. The Council of Governors of MIGA on March 29, 1999 adopted a resolution for a capital increase for the Agency of approximately US $850 million. In addition, US $150 million has been transferred to MIGA by the World Bank as operating capital.
MIGA provides investment guarantees (i.e., political risk insurance) against certain non-commercial risks to foreign investors in developing member countries. The program is designed to complement national and private investment insurance services.
MIGA underwrites both directly and in cooperation with other risk insurers through coinsurance and reinsurance arrangements to provide investors more comprehensive investment insurance coverage worldwide. In 1995 it also introduced a brokerage program, encouraging investment brokers to cooperate with MIGA.
MIGA offers long-term, low-maintenance political risk insurance coverage to eligible investors for qualified investments in developing member countries. MIGA insures against currency transfer, expropriation, breach of contract, and war and civil disturbance.
MIGA investment guarantees are long-term: The standard coverage term is 15 years (noncancelable by MIGA), which may be extended to 20 years under certain circumstances against the following risks:
MIGA can
insure new cross-border investments originating in any MIGA member country,
destined for any developing member country. New investment contributions
associated with the expansion, modernization, or financial restructuring of
existing projects are also eligible, as are acquisitions that involve
privatization of state-owned enterprises. Investment projects supported by MIGA
must be financially, economically, and environmentally sound, and contribute to
the development of the host country.
Contact:
Christopher S. Bellinger
Chief Guarantee Officer
Multilateral Investment Guarantee Agency
1818 H. Street, NW
Washington, DC 20433
Tel: (202) 473-6163
Fax: (202) 522-2630
E-mail: Cbellinger@worldbank.org
Source: BISNIS Information Service, Sources of Finance July 1999, or www.miga.org
The IBRD is a partner in strengthening economies and expanding markets to improve the quality of life for people everywhere, especially the poorest. Unlike aid programs, the IBRD doesn't make grants. The IBRD lends money to developing countries and the loans are repaid.
Developing countries borrow from the IBRD because they need capital, technical assistance, and policy advice. There are two types of Bank lending. The first type is for developing countries that are able to pay near-market interest rates. The money for these loans comes from investors around the world. These investors buy bonds issued by the World Bank.
The second type of loan goes to the poorest countries, which are usually not creditworthy in the international financial markets and are unable to pay near-market interest rates on the money they borrow. The World Bank, therefore, cannot issue bonds to raise money that would finance lending to these countries. Lending to the poorest countries is done by a World Bank affiliate, the International Development Association (IDA). Russia does not qualify for IDA loans. More than 30 member countries periodically contribute the money needed to finance "credits" to borrowers. IDA credits are free of interest, carry a low 0.75 percent annual administrative charge, and are very long term—35 or 40 years including 10 years grace. Countries with per capita incomes of less than $925 (in 1996 dollars) are eligible for IDA credits. In practice most IDA credits go to countries that are much poorer than this. But, again, the credits are repaid. They are not grants. IDA lends an average of about $6 billion a year to the world's poorest countries.
The IBRD currently offers three loan products for new loan commitments. These products are: currency pool loans, LIBOR-based single currency loans, and fixed-rate currency loans. The IBRD (World Bank) product offering is intended to provide borrowers with the flexibility needed to select terms that are consistent with their debt management strategy and suited for their debt-servicing capacity.
Currency Pool Loans (CPLs)
IBRD borrowers may select currency pool loan terms for new loans. The currency composition of borrowers' currency pool obligations reflects that of the currency pool and is the same for all borrowers. At least 90% of the US dollar equivalent value of the currency pool is maintained in fixed currency ratios of 1 US dollar: 125 Japanese yen: 1 euro.
The lending rate for currency pool loans is reset semiannually. It is a direct pass-through to borrowers of the Bank's cost of funding for these loans, as recalculated each June 30 and December 31.
Single Currency Loans (SCLs)
Eligible IBRD borrowers may select LIBOR-based and fixed-rate SCL terms for new loans. SCLs are offered in currencies of sufficient borrower demand in which the Bank can efficiently fund itself. As of the date of this document, the Bank is offering SCLs in euro, Japanese yen, Netherlands guilders, Pounds sterling, Swiss francs and US dollars. It would need to evaluate borrower requests before offering single currency loans in other currencies. SCLs are not offered in a borrowing member's own currency.
LIBOR-Based Single Currency
Loans
The lending rate for LIBOR-based SCLs is tied to six-month LIBOR in each loan
currency . It is reset semiannually. The rate is a direct pass-through to
borrowers of the Bank's cost of funding for these loans.
Fixed-Rate Single Currency Loans
The lending rate for each fixed-rate SCL is set on semiannual rate-fixing dates
for loan amounts (Disbursed Amounts) disbursed during the preceding six-month
period. The rate remains fixed for such Disbursed Amounts until they are
repaid. In effect, a fixed-rate SCL is like a series of fixed-rate subloans,
comprising as many fixed-rate subloans as semesters in which disbursements
occur.
The fixed lending rate is based on the fixed-rate equivalent of six-month LIBOR for the loan currency corresponding to the maturities of the Disbursed Amount on its rate-fixing date. It is not a direct pass-through of the Bank's funding costs, and it includes a risk premium to compensate the Bank for market risks incurred in funding these loans.
For the interim period from the
date each disbursement is made until its rate-fixing date, interest accrues at
the same rate as is applicable to LIBOR-based single currency loans for such
period.
Contact:
International Bank for
Reconstruction and Development
Director of Financial Products and Services Department
1818 H Street, N.W.
Washington, D.C. 20433
Phone: 202-458-1122
Fax: 202-522-3264
E-mail: FPS@worldbank.org
Source: www.worldbank.org
On a number of occasions in the past, the World Bank as an institution and the President of the Bank in his personal capacity have assisted in mediation or conciliation of investment disputes between governments and private foreign investors. The creation of the International Centre for Settlement of Investment Disputes (ICSID) in 1966 was in part intended to relieve the President and the staff of the burden of becoming involved in such disputes. But the Bank's overriding consideration in creating ICSID was the belief that an institution specially designed to facilitate the settlement of investment disputes between governments and foreign investors could help to promote increased flows of international investment.
ICSID was established under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the Convention) which came into force on October 14, 1966. ICSID has an Administrative Council and a Secretariat. The Administrative Council is chaired by the World Bank's President and consists of one representative of each State that has ratified the Convention. Annual meetings of the Council are held in conjunction with the joint Bank/Fund annual meetings.
Contact:
ICSID
1818 H Street, N.W.
Washington, D.C. 20433
Phone: (202) 458-1534
Fax: (202) 522-2615
Source: http://www.worldbank.org/icsid/index.html
Objective: Founded by George
Soros, this non-profit organization seeks to promote open society in the
countries of Central and East Europe and the former Soviet Union.
Region: Russia/NIS, East and Central Europe
Fund size: $450 million pledge for 1997-2000
Money previously allocated: $500 million
Priority Activities: education, cultural establishments, civil society
institutions, Internet development, etc.
Conditions of eligibility:
The Open Society Institute does not support:
Type of
financing:
Grants
Application Procedure:
Announcement of competitions conducted by the Institute’s Russian
Representative Office are invariably published in the leading newspapers. Each
program has its Expert Council consisting of Russia’s leading specialists in
the area of the program’s involvement (education, health care, arts, culture,
civil society, etc.). The decisions of the Strategic Board are based on the
conclusions of the Expert Councils.
Contacts:
Ekaterina Yuryevna Genieva,
President of the Open Society, Russia
Open Society Institute
B.Kozlovski pereulok 13/17
Moscow 107078 Russia
Tel: 7-095-921-2065 or 9218322
Fax: (095) 975-2028
E-mail: Genieva@libfl.msk.su
Leonard Benardo, Director
Reachable through Jane Buchanan
Office for Russia
Open Society Institute, New York
Tel: (212) 548-0625
E-mail: Lbernardo@sorsny.org
or Jbuchanan@sorsny.org
Source: http://www.soros.org
General Background
The CRDF is a nonprofit, charitable foundation authorized by the U.S. Congress and established by the National Science Foundation in 1995. This unique public-private partnership promotes scientific and technical collaboration between the U.S. and the countries of the former Soviet Union (FSU). The three main goals of the CRDF are to:
The CRDF has
three major program directions:
Grants Programs: Competitive R&D grants are at the heart of CRDF’s activities. The CRDF holds multimillion dollar competitions on a regular basis to support a variety of civilian R&D collaborations between scientists and engineers in the United States and the FSU.
Centers Programs: The Basic Research and Higher Education (BRHE) and Regional Experimental Support Center (RESC) programs seek to strengthen basic and applied research capabilities at the university or institute level. The BRHE program establishes high-quality Research and Education Centers within Russian universities. The RESC program provides major equipment and training to selected applied research centers in regions throughout the FSU.
Industry-Oriented Programs: The CRDF works with U.S. private industry to reduce the risks and costs of initiating industrial R&D collaborations with the countries of the FSU. The Next Steps to Market program supports pre-commercial cooperation in applied research and development projects designed to facilitate and expedite the commercial utilization of research results. The Travel Grants program provides short-term travel support to encourage new industrial R&D collaborations.
In addition to the major program directions listed above, the CRDF provides services to other organizations. The Grant Assistance Program makes available CRDF's financial and administrative infrastructure to other non-profit and government organizations that wish to direct their own resources to the FSU.
Contacts:
Inta Morris, Vice President for
Development
U.S. Civilian Research and Development Foundation
1800 North Kent Street, Suite 1106
Arlington, Virginia 22209 USA
Phone: (703)-526-9720
Fax: (703) 526-9721
E-mail: information@crdf.org
Mark S. Taylor
Senior Advisor for Technology Development and Program Director, Industry
Programs
mtaylor@crdf.org
The Moscow Staff:
Ilya Kutsenok
Director, CRDF Moscow Office
kutsenok@crdf.ru
Marianna Voevodskaya
Director, CRDF Cooperatiave Programs Office
voevodsk@ns.ras.ru
Noemi Smorodinskaya
CRDF Moscow Representative
naya@crdf.ru
Source: www.crdf.org
General Background
The United States Industry Coalition, Inc. (USIC) is a non-profit association of U.S. companies and universities dedicated to the nonproliferation of weapons of mass destruction through commercialization of technologies for peaceful purposes.USIC members participate in Initiatives for Proliferation Prevention (IPP), a program operated by the U.S. Department of Energy. The IPP program allows weapons technologists in the New Independent States (NIS) of the former Soviet Union to join in partnership with U.S. industry to transform weapons technologies into viable products for the global market. Through a unique cost-sharing process, IPP supports NIS and U.S. partnerships that reduce the risk of doing business in the NIS and seek to create successful commercial enterprises.
USIC works to:
U.S.
companies interested in participating in the IPP program are required to join
USIC. The U.S. company assumes the role of project leader, and commits to share
development costs and produce the products that are developed. A proposal to
the IPP program must be submitted for review. The company must have two
partners: an NIS scientific institute, which plays a substantial role in
developing a scientific discovery into a commercially viable product; and a DOE
National Laboratory, which will validate the NIS technology and assist in
technological and commercial development. The U.S. company and the DOE National
Laboratory sign a Cooperative Research and Development Agreement (CRADA). The
U.S. company must match the IPP investment on a dollar-for-dollar basis.
As a benefit of USIC membership, U.S. companies are able to submit proposals to the IPP program without having to undergo the competitive RFP process; they enjoy access to information on technology and opportunities in the NIS identified by the IPP program; and assistance on technological commercialization and business development and funding is readily available.
Contact:
Gary Tydings, Director, Membership
Services & Operations
Tel: (703) 526-9447 ext. 303
Fax: (703) 526-0928
1800 N. Kent Street, Suite 1106
Arlington, Virginia 22209
gtydings@usic.net
Source: http://www.usic.net
General Background
The International Science and Technology Center was established by international agreement in November 1992 as a nonproliferation program to provide peaceful research opportunities to former weapons scientists and engineers in the Commonwealth of Independent States.
The objectives of the ISTC are to:
General
Activity: Since beginning operation in March 1994, the ISTC has funded over
1,000 peaceful scientific projects employing over 30,000 scientists and
engineers at nearly 400 institutes in the CIS. These projects cover a broad
range of science and technology areas, many of which address problems of global
importance such as:
To fulfill its nonproliferation mission, the ISTC Parties (member nations), Partners, and project Collaborators contribute financial, in-kind, and human resources to the Center. These resources are used to:
Science Project Program:
The ISTC Secretariat receives approximately 40 proposals for new projects each month from scientists and engineers working throughout the CIS countries. Each project submitted for ISTC consideration is accompanied by the written concurrence of the state in which work is to be carried out. When received, project proposals are assigned to ISTC Senior Project Management who work with the project leaders to ensure that the proposals meet ISTC guidelines. If the project is selected for funding, the Senior Project Manager will continue to monitor the project through to its completion.
Completed proposals are forwarded to the ISTC Parties for funding consideration. Funding decisions are made three times per year during meetings of the ISTC Governing Board, or action may be taken exceptionally between Board meetings by written procedure. Individual projects are funded either entirely by one Party or partner or by a combination of interested parties. The Parties make their funding decisions based on a combination of selection criteria, including technical merit, relevance to ISTC objectives, and policy and budgetary priorities.
Contact:
ISTC Secretariat
Luganskaya St. 9, 115516
Moscow, Russian Federation
Tel: 7 (095) 797-6010 Fax: 7 (095) 797-6047
Int'l Tel: 7 (501) 797-6010, Int'l Fax: 7 (501) 797-6047
E-mail: istcinfo@istc.ru
Source: ISTC Public Information, and http://www.istc.ru
General Background
The governments of Denmark, Norway
and Sweden each have established a fund for financing consultancy services and
the UNDP programme activities in developing countries. The objective is to
finance development activities identified by or through UNDP. Projects must be
within the framework of sustainable human development and the donor's policy
towards UNDP. Services and equipment must be selected from donor countries.
This is done through subcontracting of services and/or purchasing
goods/equipment through a competitive process. A secondary objective is to give
an opportunity to the selected contractors to present their capabilities and
products to UNDP and recipient institutions.
Region: Global
Fund size: determined by contributions from member countries
Average investment size: US $ 400,000
Priority Areas:
Water and sanitation Energy systems
(renewable energy, hydro power, energy efficiency, rural electrification, solar
energy)
Petroleum and gas
Industry and private sector
Public sector management
Education
Health
Environment
Fisheries
Governance
Infrastructure
Conditions of eligibility:
All UNDP Programme Countries with a per capita GNP below US $ 2,500 are covered
by at least one of the Funds. Other countries and regional activities may also
be considered on a case-by-case basis. Please find a complete list of eligible
countries at www.unops.org.
Who can request the use of funds: Requests for using the Funds may originate
from institutions, NGOs, individuals, the private sector, or UNDP. However,
requests must be endorsed by and submitted through UNDP Country Offices
(requests submitted by UNDP bureaux, UNDP units, and UNDP associated funds may
also be considered, but still through the Country Office). The Country Office
will ensure that the request is agreeable to the recipient Government and is in
accordance with UNDP's programme priorities for that country.
Activities:
Identification missions
Pre-feasibility studies
Feasibility studies
Post-feasibility studies, including project formulation missions
Sector and/or subsector review missions/studies
Trouble-shooting missions
Monitoring missions
Evaluation missions
Complete or partial projects, including the supply of products and services
Application Procedure:
Request for using the Funds can originate from institutions, NGOs, individuals, the private sector, or UNDP. However, as said, requests must be endorsed and submitted through one of the following entities: UNDP country office, UNDP bureaux, UNDP units, or UNDP associated funds.
Requests for mission studies should include:
a) Brief background and justification
b) Terms of Reference for the required services
immediate objective
outputs to be produced by Consultant
main activities
proposed inputs: team composition (areas of specialization, international or
national specialists, previous country experience, language, etc.), length of
mission, etc.
c) Proposed budget (fees, travel, DSA, local travel and other local costs etc.) Add counterpart contribution where applicable.
Contact:
UNOPS Copenhagen Office
Nordic Funds/Business development Unit
P.O. Box 2695
DK-2100 Copenhagen Ø
Denmark
Tel: 45 35 467-200
Fax: 45 35 467-201
E-mail: nordic.funds@unops.org
Source: www.unops.org/3oforg/3of003c.html
Objective: The Nordic
Development Fund is a multilateral Nordic development aid organization.
Regions: Developing Countries
Fund Size: SDR 515 million (U.S. $750 million) (Denmark, Finland,
Iceland, Norway and Sweden)
Capital Invested: SDR 4.8 billion (U.S. $7 billion); NDF’s share SDR 215
million (U.S. $310 million)
Conditions of eligibility:
Credits are offered to least developed, low, and lower-middle income
countries
Priority is given to projects with a positive impact on the environment
Type of financing:
NDF credits are offered only through co-financing, primarily with multilateral
organizations such as the World Bank Group, the Asian Development Bank, the
EBRD, InterAmerican Development Bank, and the Nordic Investment Bank.
Terms of financing:
Credits are offered on concessional terms in 40-year credits, including a
10-year grace period.
The credits are interest-free but carry a service charge of 0.75 percent per
annum.
Contacts:
Jens Lund Sorensen (President)
Engilbert Gudmundsson (Vice-President)
P.O Box 185 Fin 00171
Helsinki, Finland
Tel: (358-0) 180-0451
Fax: (358-0) 622-1491
Source: http://echs.ida.org/ccms/pilot/finance/toc.htm
Objective: SIDA’s task is to create conditions conducive to change and to socially, economically and environmentally sustainable development in the poor countries of the third world.
Region: Global; ECE/NIS
Fund size: The Swedish Parliament has allocated a total of SEK 4,000 million over a period of 3.5 years, for cooperation projects in Central and Eastern Europe, excluding emergency assistance. Of this total, SEK 1,700 million was allocated to SIDA for the period 1996-98.
Total disbursement in 1999: 127,479,000 SEK
Goals:
The overall goal of Swedish development cooperation is to raise the standard of living of poorer groups of people in the world. The Swedish Parliament has adopted the following six specific objectives in order to achieve this overall goal:
Economic growth
Economic and political independence
Economic and social equality
Democratic development in society
The long term, sustainable management of natural resources and the protection
of the environment
Equality between men and women
The Swedish Parliament has also established four specific goals covering
cooperation with countries in Central and Eastern Europe:
Promotion of common security
Deepening of the culture of democracy
Supporting a socially-sustainable economic transformation process
Supporting environmentally-sustainable development
Areas of Priority:
Technical cooperation
Environmental protection
Development of trade and industry
Nuclear safety and radiation protection
Assistance to NGOs
Type of financing: Grants
Contacts:
Swedish International Development
Cooperation Agency (SIDA)
S-105 25 Stockholm, Sweden
Office Location: Sveavagen 20, Stockholm
Tel: 46(0) 8 698 5000
Fax: 46(0) 8 20 8864
E-mail: info@sida.se
Telegram: SIDA Stockholm Telex: 11450 sida sthlm
Division for Planning and Policy Peeter Horn
Division for Russia/CIS: Anders Hedlund
Division for Environment and Energy: Lars Eklund
Source: http://www.sida.se
Objective: Finnfund, the Finnish Fund for bilateral development assistance, is an independent development finance corporation in which the Finnish government is the majority shareholder. Finnfund offers equity financing, loans, participation in guarantee agreements, financing of up to 50 percent of the costs of feasibility studies for potential joint ventures, technical assistance, and co-financing arrangements with other institutions.
Contact:
Finnfund
P.O. Box 185, Sf-00121
Helsinki, Finland
Office Location: Ratakatu 27, Helsinki
Tel: 358-0-64 1301
Fax: 358-0-60 3309
General Background
In February 1994, the governments of the U.S. and Japan announced a joint initiative to improve the environment in Central and Eastern Europe (CEE). (Note: at this time it is not clear whether or not this includes Russia, but we are seeking clarification.) The Japanese government has pledged up to $1 billion in united loans for environmental assistance projects through its Overseas Economic Cooperation Fund (OECF) and Export–Import Bank of Japan (JEXIM). The loan programs are "united," meaning that foreign countries are eligible for winning contract procurement. Projects considered for funding by the initiative must meet the criteria of the Environmental Action programme (established at the Lucerne Ministerial Conference, "Environment for Europe"), and must demonstrate financial and economic sustainability.
The U.S. government intends to provide technical assistance to help identify and develop appropriate projects in order to complement the pledged Japanese fund. The U.S. technical assistance will primarily be drawn from SEED funds and distributed via USAID.
In May 1994 a joint delegation of agencies from the U.S. and Japanese governments met in Budapest. Both agreed that rapid progress was needed to improve environmental conditions in CEE. Procedures for project identification and funding were also outlined at the meeting in Budapest. The results were:
1.
Project
identification will be made in conjunction with host countries through a joint
project identification mission carried out in the region.
2.
Proposed
funding projects may be presented by any source, as long as it has the
concurrence of the host government to a joint Committee composed of members
from the United States and Japan, for approval.
3.
Projects
approved by the Joint Committee will be forwarded to funding institutions for
review and potential financing.
4.
A
letter will be sent to CEE governments from the U.S. and Japanese governments
that outlines procedural steps, format, and the type of information useful for
CEE submissions.
Contacts:
Sherwood McGinnis (Dept. of State:
Special Assistant to Ambassador Ralf Johnson)
2201 C Street, NW,
Room 3243 EUR/SABI,
Washington, DC 20250
Tel: (202) 647-4642
Ron Greenburg (USAID Division Chief of Environmental and Nature Resources)
Tel: (202) 647-8262
Fax: (202) 647-6962
Source: http://echs.ida.org/ccms/pilot/finance/toc.htm
Objective: JICA is a special
governmental corporation established, on the basis of the Law concerning
International Cooperation Projects (Law No.62 of 1974), with the aim of
contributing to economic and social development in developing regions, etc.,
and to the promotion of international cooperation.
Region: Developing countries
Capital: 128.1 billion yen (as of March 31, 1999)
Budget: 185.5 billion yen (FY 1999)
Staff: 1,218 (FY 1999)
Programs:
Technical cooperation
Training in Japan
Dispatch of experts
Provision of equipment
Project-type Technical Cooperation
Development Study
Dispatch of Japanese Overseas Cooperation Volunteers (JOCV)
Training and recruitment of qualified personnel for technical cooperation
Survey and administration grant programs
Development investment and financing
Support for Japanese Emigrants
Disaster relief
According to "Japan's Official Development Assistance Charter,"
Projects shall fulfill the following principles:
1. Environmental conservation and development should be pursued in tandem.
2. Any use of assistance for military purposes or for aggravation of international conflicts should be avoided.
3. Full attention should be paid to trends in the recipient countries’ military expenditures, their development and production of weapons of mass destruction and missiles, their export and import of arms, and so on, in order to maintain and strengthen international peace and stability.
4. Full attention should be paid to efforts toward democratization, the introduction of a market-oriented economy, and the situation regarding the securing of basic human rights.
Contact:
JICA U.S.A. Office
1730 Pennsylvania Avenue, N.W.
Suite No.875,
Washington D.C. 20006,
Tel: (202) 393-5422
Fax: (202) 393-1940
JICA HQs
Shinjuku Maynds Tower Bldg., 2-1-1
Yoyogi, Shibuya-ku, Tokyo 151-8558
Tel: +81-3 (5352) 5311
Fax: +81-3 (5352) 5032
Email: www@jica.go.jp
Source: http://www.jica.go.jp
European Bank for Reconstruction
and Development www.ebrd.com
Framlington Russian Investment Fund www.framlington.co.uk
Export-Import Bank www.exim.gov
Overseas Private Investment Corporation www.opic.gov
The U.S. Russia Investment Fund www.deltacap.ru
United State Trade and Development Agency www.tda.gov
The Eurasia Foundation www.eurasia.org
The World Bank Group www.worldbank.org
The Soros Foundation: Open Society Institute www.osi.ru
U.S. Civilian Research and Development Foundation www.crdf.org
United States Industry Coalition www.usic.net
International Science and Technology Center www.istc.ru
UNDP Nordic Funds www.unops.org
Nordic Development Fund www.ndf.fi
Swedish International Development Cooperation Agency www.sida.se
Finnish Finnfund not available at this time
U.S.-Japan Environmental Initiative not available at this time
Japan International Cooperation Agency www.jica.go.jp