EBRD as institutional investor

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EBRD as institutional investor

• Darko Konjevic

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EBRD as institutional investor

• Established in 1991 to help development of the
  postcommunist countries
• Owned by 61 countries and 2 intergovernment
  institution (European community and European
  investment bank)
• Over 20 billions of investment
• Active in 30 countries from Central Europe to
  Central Asia
• For every invested, it mobilizes three
  additional

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EBRD investment

• Must influence a country to get closer to the
  market economy principles
• Takes risks and supports private sector, not
  pushing it out of the market
• Applies transparent banking principles

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EBRD promotes

• Structural and sector reforms
• Competition, privatization and entrepreneurship
• Strengthening of financial institutions and legal
  system
• Infrastructure development as the prerequisite of
  private sector development
• Adoption of corporate management principle
• Adoption of environmental protection principle

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EBRD investment

• EBRD is the biggest single investor in the
  Eastern Europe and Central Asia
• Direct investments of 5 - 230 millions
• EBRD uses loans, equity financing, guaranties,
  leasing and trade financing

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EBRD project cycle

• Initiation
• Concept
• Structural overview
• Final overview
• Approval by the Board
• Signing
• Deposit of funds
• Repayment
• Sale of shares
• Exit

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EBRD in Montenegro

• Total of 12 projects (2 new in the meantime)
• Investment amount 51.7 millions
• Projects value 114.7 millions
• Shares in the companies 28
• Investment (68 infrastructure, 10 financial
  sector, 10 corporative sector, 12
  microfinancing)

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Case study ProGas AD Podgorica

• EBRD equity investment in this gas company
  resulted in the increase of the competitiveness
  in this industry in Montenegro
• EBRD enetred the company in 2003

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Market analysis space for starting a new
company exists

• New company started with a goal to
• Define new, higher standards
• Offer quality product at lower price
• Organize better distribution network
• Open up the possibilities for export of the
  technical gases from Montenegro
• Creation of the new market!

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Effects of starting a separate gas company

• Customer Orientation
• Lower prices
• New gas application
• technologies

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Exit strategy

• EBRD exits the company in 2006
• The company finds the stretegic partner in Messer
  Tehnogas
• The company is a leader in Montenegro
• Supplies all of the big consumers

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Dilemmas

• Export product or elimination of barriers?
• Protection of the selected ones or equality of
  opportunities and inequality of capabilities?

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THANK YOU FOR YOUR ATTENTION

• Darko Konjevic
• Montenegro Biznis Alijansa
• dkonjevic_at_t-com.me