Balkans Renewable Energy Program
The Balkans Renewable Energy Program (BREP) is International Finance Corporation’s (IFC) regional programme for promotion of renewable energy (RE) projects in Albania, Bosnia and Herzegovina and Federal Yugoslav Republic of Macedonia. Objective of the programme is to provide assistance to participating countries’ government (e.g. ministries) and financial (e.g. commercial banks) institutions, as well as the private sector players such as RE sponsors and developers. In particular, the role of BREP is to:
- Improve the existing regulatory framework related to RE investments,
- Work with the RE sponsors to improve their designs and business plans,
- Work with the selected financial institutions (FIs) to improve their internal capacity for RE investments (in particular small hydro power plants - SHPPs) and project finance.
Frankfurt School of Finance & Management and its partner Fichtner are providing advisory services to meet the third objective of improving the internal capacity of selected FIs regarding capacity building for SHPP and project financing. In particular, the consortium team is working:
- To increase the FI’s general knowledge about SHPPs as a RE sources, climate change aspects of RE investments, different ways of RE financing and in particular its project financing methodology;
- To provide specific support to selected commercial banks in SHPP financing product development, structuring of bank-internal capacities (team) responsible for SHPP investment, and marketing strategy for acquiring SHPP projects;
- To provide initial support in SHPP project origination, assessment, evaluation and monitoring;
- To develop generic material such as Finance, Risk, Engineering and Legal Manuals in SHPP financing, SHPP Cash Flow Tool, and SHPP lending forms; and
- To develop impact assessment analysis (case study) as an outreach material for the bank that can be used to communicate the value proposition of the banking product.
The consulting services are divided in three major groups of activities, that is, the Programme-, Country- and Bank-level Activities. The Program-level activities focus on establishing the programme in target countries, development of the generic (Programme-level) documents, procedures, and tools for FIs to support SHPP projects. The Country-level activities focus on the adaptation of the generic materials developed during the programme-level phase to the specific country needs, including but not limited to regulatory framework, off-take prices, language, etc. Last but not least, the Bank-level activities focus on conducting in-depth training, support to first three project assessments, and preparation of impact assessment documents.
The project is on-going and envisioned to last until April 2016 within which it will be expanded to include additional three countries of Southeast Europe (Serbia, Kosovo* and Montenegro).
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of Independence