Donor Co-Financing Assessment for New Country Strategy
1. Implementation of Previous Strategy (2017-2021)
1.1. Key Transition Results
Strategic Alignment
Annual Business Investment (ABI)
TC and Co-investment grants
European Bank
for Reconstruction and Development
Priority 3
15%
23 operations
Priority 2
51%
7 operations
GET share: 30%
€ 939m
Priority 1
34%
61 operations
Priority 3
40%
€ 76m
Priority 1
20%
Priority 2
40%
Transition Performance *
Off-track
14%
ETI: 66.0
PTI: 65.6
0
On-track
86%
Priority 1: Enable capacity-building and scaling up of the private sector, while promoting commercialisation of public utilities, and supporting privatisation of
viable state-owned enterprises to enhance competitiveness
SME Competitiveness Support Programme
16
14
12
10
00
8
6
4
..l.1
2
0
2017
2018
2019
2020 2021 H1
■SME Competitiveness Support Programme: On-
lending to SMEs, €m
.
Key Transition Results
• Provided €80m finance to local SMEs via local partner banks and credit lines for leasing. Signed the first Portfolio Risk Sharing
Facility to increase private sector lending to SMEs, and the first Women in Business programme covering the whole territory of BiH.
• Financed a greenfield FDI investment in the M&S sector (CPH, €5.7m) demonstrating opportunities for foreign investors, and
provided €7m in equity for an early stage mining FDI that will help upgrade standards and improve skills.
• Supported 181 SMEs with financing (€ 31.8m) under the SME Competitiveness Support Programme. Financed two 'Blue Ribbon'
SMEs, and two local corporates, (TEM Mandeks €0.5m, AS Group Logistics €2m).
• Invested equity and participated in the group level bond issuance of the only private sector TV, internet and telecommunication
provider in BiH. This regional telecoms operator's expansion to BiH, significantly increased competition in the local market.
• During the crisis, provided €53.5m in financing to local banks for on-lending to SMEs under the Resilience Framework and SME
Competitiveness Support Programme, including credit lines to microfinance lenders to help micro and small businesses.
Under the Rapid Advisory Framework, provided advisory support to both BiH entities to establish credit guarantee funds for SMEs
which will strengthen the resilience of the SME sector and bank lending both during and after the pandemic. To boost the resilience
of BiH's financial sector, extended a €30m stand-by credit line to the deposit insurance guarantee fund.
• Continued support for regional co-ordination on business registration.
• In cooperation with international partners, promoted SOE reform alongside targeted support to select state companies and
continued with the implementation of their financial and operational improvement plans. Progressed with commercialisation of
Sarajevo Water Company and other municipal clients.
• Signed two commercially priced loans for €10m in the municipal sector with the city of Banja Luka under the Green Cities Initiative.
• Provided technical assistance for the preparation of PPPs in district heating in two municipalities.
* Transition impact performance reflects how likely projects are to achieve the transition impact peed of them at signing. Calculated based on active mature (> 2 years) portfolio.
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