Creating Confidence for Private Creating Confidence for Private InvestorsInvestors

TokyoTokyo

August 2004August 2004

2

EBRD Financing CriteriaEBRD Financing Criteria

Sound Banking Principles

Transition Impact

Additionality

3

Sound Banking PrinciplesSound Banking Principles

Realistic and achievable business plan

Fully-funded finance plan

Identification of risks

Robust to sensitivities

Adequate returns

4

Investor Confidence (1)Investor Confidence (1)

Understanding the market

Predictable legal framework

Predictable regulatory regime

Assessment of risk

5

Investor Confidence (2)Investor Confidence (2)

Government commitment

Appropriate sharing of risk

Active involvement of all key stakeholders

6

Who are the stakeholders?Who are the stakeholders?

Local community

Government

Existing operators and service providers

Major users

Investors

7

What can Government do?What can Government do?

Create stable and predictable conditions

Show commitment through provision of resources

Create structure for rural development

Demonstrate appropriate government control

8

What can EBRD do? (1)What can EBRD do? (1)

Provide financing

– own account

– co-financing

Provide technical assistance

– improve the legal and regulatory regime

– develop appropriate policy

– prepare project business plan

9

What can EBRD do? (2)What can EBRD do? (2)

Act as bridgehead between:

– government

– private investors

– donors

– commercial financiers

“Seal of approval”

– stimulate investor confidence

– quasi-independent oversight

10

Telecoms Team ContactsTelecoms Team Contacts

David CooperSenior Banker

tel: +44 207 338 6831e-mail : cooperd@ebrd.com

Izzet R. GüneyTeam Director

tel: +44 207 338 6565e-mail : GuneyI@ebrd.com

Team fax : +44 207 338 6674Team fax : +44 207 338 6674