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Part 3 of the presentation entitled "Water Management Financing in the Caribbean."
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US$98.0M
US$16.0M
VCGPLoans 1&2
Buyer Credit
(BNPP/Soc.Gen)
US$82M
US$213.0 MCommercial
Loan
US$115M(Bank Nova Scotia -
BNS )
($10.8M + $5.1)
Financing Sources
VCGPLoans 1&2
Vinci C Grand Projects
Loans 1&2
JAMAICA WATER SUPPLY IMPROVEMENT PROJECTJAMAICA WATER SUPPLY IMPROVEMENT PROJECT
22
JWSIP - FINANCE STRUCTUREJWSIP - FINANCE STRUCTURE
NWCVCGPA
B
A
B
(95 MUSD)
Contract B VCGP
FINANCING
ConsortiumVCGP / WMI
Contract A (69 MUSD)
COMMERCIAL CONTRACTS
Cost of the Works: 163 MUSDProject cost: 213 MUSD
= Cost of Financing(fees,IDC, premium)
10,8 MUSD
5,0 MUSD
BNPP/Soc.Gén.
82 MUSD
MOF Guarantee
MOF Guarantee
MOF Guarantee
Insurer:Coface
Insurer:MIGA
VCGP Credit Agmt#1
VCGP Credit Agmt#2
Nova Scotia bank
115 MUSD MOF Guarantee
Insurer:MIGA
Contractual Scheme
VCGP
VCGP
ConsortiumVCGP / WMI
FINANCING OF SEWERAGE FINANCING OF SEWERAGE PROJECTSPROJECTS
FINANCE OF SEWERAGE PROJECTS FINANCE OF SEWERAGE PROJECTS
Priority given to developing water related Priority given to developing water related Projects / Infrastructure WorksProjects / Infrastructure Works
Interest in the financing/developing of sewerage Interest in the financing/developing of sewerage projects not as attractive as water projectsprojects not as attractive as water projects
Creative financing methods were developed for Creative financing methods were developed for the following sewerage works:the following sewerage works:
1. Soapberry - KSA 1. Soapberry - KSA
2. K- Factor Programme - 44 WwTPs2. K- Factor Programme - 44 WwTPs
3. Credit Enhancement Fund - CReW 3. Credit Enhancement Fund - CReW Programme Programme
Soapberry Wastewater Treatment Plant Soapberry Wastewater Treatment Plant
1987 1987 SENTAR Study : Untreated sewage is the SENTAR Study : Untreated sewage is the major impact on the Kingston Harbour. major impact on the Kingston Harbour.
20042004 Establishment of SPC - CWTC Establishment of SPC - CWTC Planning Horizon - Year 2025 - 60MGDPlanning Horizon - Year 2025 - 60MGD
20052005 Completed Designs for Phase I Central WWTP Completed Designs for Phase I Central WWTP System for KSA & South East St. Catherine System for KSA & South East St. Catherine (Portmore) (Portmore) 20082008 Construction of Module # 1-18 MGD WWTP Construction of Module # 1-18 MGD WWTP completed within completed within Four (4)Years Four (4)Years ‘‘All new and incremental flows in the KSA will be directed to this facility via the All new and incremental flows in the KSA will be directed to this facility via the
extension of existing sewer network’extension of existing sewer network’
Soapberry Wastewater Treatment Plant Soapberry Wastewater Treatment Plant
SOAPBERRY SEWERAGESOAPBERRY SEWERAGE Special Purpose Company Special Purpose Company
(SPC) established - CWTC (SPC) established - CWTC 20042004
Project Cost - US$ 50.0M Project Cost - US$ 50.0M Loan US$38.0M - NCB Loan US$38.0M - NCB Six(6) AgreementsSix(6) Agreements Equity Partners : UDC, NWC, Equity Partners : UDC, NWC,
NHT & Ashtrom Building NHT & Ashtrom Building Systems Systems
Finance,Design, Engineering Finance,Design, Engineering & Build, Operate & Manage & Build, Operate & Manage
BOOT arrangement with the BOOT arrangement with the SPC – 20 Years SPC – 20 Years NWC will be charged for NWC will be charged for
wastewater received at the wastewater received at the new plant (US$11.5M/Year)new plant (US$11.5M/Year)
Soapberry Treatment PlantSoapberry Treatment Plant
PROJECT AGREEMENTS
PROJECT COMPANYNWC
Sewerage Treatment Agreement
Project Management Agreement
UDC
Loan Agreement(s)
338888888LENDER(S)Agreement
Equity Participation
Equity Holders
UDC, NHT, NWC, Private Developer
Construction Agreement
PRIVATE DEVELOPER PRIVATE DEVELOPER
O&M Agreement
BENEFITS BENEFITS
Reduce pollution & adverse impact on environment Reduce pollution & adverse impact on environment (Kingston (Kingston Harbour)Harbour)
Reduce threat to public health Reduce threat to public health
Improve NWC’s operational efficiency and service deliveryImprove NWC’s operational efficiency and service delivery. .
Increase household connection and expansion of the Increase household connection and expansion of the sewerage coverage. (Increase in density of residential and sewerage coverage. (Increase in density of residential and commercial development)commercial development)
Stimulate development in the other areasStimulate development in the other areas
Compliance with NEPA (2007) Tertiary Standards for the Compliance with NEPA (2007) Tertiary Standards for the treatment of effluent discharge.treatment of effluent discharge.
‘‘CREDIT ENHANCEMENT FUND’CREDIT ENHANCEMENT FUND’
Caribbean Regional Fund for Wastewater Management Caribbean Regional Fund for Wastewater Management CReW CReW
Caribbean Regional Fund for Wastewater Management Caribbean Regional Fund for Wastewater Management CReWCReW
Facilitate Private Sector greater participation in the Facilitate Private Sector greater participation in the investment & development of Wastewater investment & development of Wastewater
Management in the CaribbeanManagement in the Caribbean
To test innovative financing approaches for To test innovative financing approaches for Wastewater ProjectsWastewater Projects
Offer flexibility in the development of Financial Offer flexibility in the development of Financial Instruments Instruments
Assist to identify & bring projects to bankable Assist to identify & bring projects to bankable status status
Five Pilot Projects for the development of Five Pilot Projects for the development of wastewater management wastewater management (Jamaica, Belize, Barbados, Guyana, (Jamaica, Belize, Barbados, Guyana,
Trinidad &Tobago)Trinidad &Tobago)
Caribbean Regional Fund for Wastewater Management - CReWCaribbean Regional Fund for Wastewater Management - CReW
Key Project StakeholdersKey Project Stakeholders : :
Inter American Development Bank (IADB)Inter American Development Bank (IADB)** Global Environment Facility (GEF)Global Environment Facility (GEF)** United Nations Environment Programme (UNEP)United Nations Environment Programme (UNEP) United States Trade& Development Agency (USTDA)United States Trade& Development Agency (USTDA)^̂ Pilot Water Utilities & Service Providers Pilot Water Utilities & Service Providers
* Sponsor of Fund* Sponsor of Fund** Management of the CReW ProgrammeManagement of the CReW Programme^̂ Technical Assistance Technical Assistance
Caribbean Regional Fund for Wastewater Management - CReWCaribbean Regional Fund for Wastewater Management - CReW
Key Project Stakeholders :Key Project Stakeholders :
Inter-American Development Bank (IADB)Inter-American Development Bank (IADB)
1.1. Responsible for the administration & management Responsible for the administration & management of the US$ 20.0M Fund.of the US$ 20.0M Fund.
United States Trade & Development Agency (USTDA)United States Trade & Development Agency (USTDA)
1.1. The USTDA supports the IADB’s goal in ensuring The USTDA supports the IADB’s goal in ensuring that the Pilot K- Factor funded projects are that the Pilot K- Factor funded projects are effectively & efficiently developed and implemented.effectively & efficiently developed and implemented.
2.2. Facilities are operated based on applicable policies, Facilities are operated based on applicable policies, procedures , standards & laws procedures , standards & laws
The USTDA - Technical Assistance (TA) will :The USTDA - Technical Assistance (TA) will :
1.1. Define areas of Procurement, Construction, Define areas of Procurement, Construction, Technology selection and O&M for compliance with Technology selection and O&M for compliance with local laws, policies, procedures, regulations, local laws, policies, procedures, regulations, standardsstandards
2.2. Provide recommendations on improvementsProvide recommendations on improvements
3.3. Preparation of an Evaluation Criteria Check ListPreparation of an Evaluation Criteria Check List
4.4. Document the general conditions at FacilitiesDocument the general conditions at Facilities
ROLL OF KEY STAKEHOLDERSROLL OF KEY STAKEHOLDERS
Caribbean Regional Fund for Wastewater Management-CReWCaribbean Regional Fund for Wastewater Management-CReW
GLOBAL ENVIROMENT GLOBAL ENVIROMENT FUND – GEFFUND – GEF
Caribbean Regional Fund for Wastewater Management-CReWCaribbean Regional Fund for Wastewater Management-CReW
Inter-American Development Bank
CReW Caribbean Fund for Wastewater Water
Management
US $20.OM Grant
Utility OperatorsNWC, WASA etc.
USTDAUS$ 150,000
Grant
UNEP