Practical Guidelines

For WBIF Project

Application and Submission
January 2014
www.wbif.eu
Western Balkans Investment Framework (WBIF)

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1. Purpose of this Document
This document aims to provide WBIF stakeholders, particularly officials from relevant institutions
in WBIF beneficiaries, ith a concise and user!friendly "uide to preparin" and submittin"
applications for "rant support under the Western Balkans Investment Frameork #WBIF$%
Folloin" four years of implementation, the WBIF has successfully evolved as a uni&ue platform
to blend "rant and loan financin" to prepare and implement strate"ic investments in key sectors
in the WBIF beneficiaries' economy% To date, a total of 1(1 "rants
1
have been approved for 1)*
investment pro+ects and these are at different sta"es of implementation ith )( pro+ects under
construction or tenderin" for construction%
The document's overall ob+ective is to facilitate the WBIF's ob+ective of financin" key investments
that contribute to socio!economic development in line ith the ,- accession process in the
re"ion by a$ ensurin" the most appropriate pro+ects are submitted. and b$ helpin" improve the
&uality of "rant applications so enhancin" the screenin" and assessment process% The result
should be better &uality applications ith an increased likelihood of a "rant aard%
To stay relevant the "uidelines ill evolve to reflect emer"in" factors such as ne measures or
initiatives, to respond to e/ternal pressures throu"h re"ular updatin" and to respond to any
priorities that the 0teerin" 1ommittee and 2ro+ect Financiers' 3roup #2F3$ may apply%
Information in this document is supplemented by additional information on the WBIF ebsite !
%bif%eu%
2. Focus of Round 11 call for proposals
4ound 11 has a very clear and particular focus% 5s discussed at the WBIF 0teerin" 1ommittee
6eetin" in 7ondon on ) 8ecember 2913, due to the current status of "rant fundin" and aaitin"
the outcome of the 8etailed 4evie of the WBIF pro+ect pipeline this ill be a more limited
round than normal% Therefore, applicants are e/pected to apply for +ust a very small number of
pro+ects% The screenin" and assessment process ill "ive priority to those "rant applications that
seek to:
i$ ;unblock; an e/istin" pro+ect here identified problems can be solved by tar"eted T5.
and/or
ii$ build on and/or enhance an e/istin" pro+ect here additional support either advances it
to the ne/t sta"e in the pro+ect development cycle or e/pands the benefits of the e/istin"
"rant%

In line ith the discussions in 7ondon, applications for ne pro+ects ill also be considered and
these must clearly demonstrate re"ional impact on the "round% 2lease note that any findin"s of
the 8etailed 4evie of the WBIF pipeline ill be taken into account durin" the screenin" and
assessment process% The draft final report on this ill be available in early 6arch%

1
5d+usted for ithdran "rants
Western Balkans Investment Framework (WBIF)

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To ensure that submissions respond to these criteria the 235F has been amended to "ive space
for applicants to +ustify their proposals%
0ome key issues that should be considered hen preparin" applications for WBIF "rant
assistance are summarised belo%
! To ensure efficient use of scarce resources and safe"uard a"ainst asted effort,
proposals should reflect the lo"ical se&uence of the pro+ect cycle and therefore should
be confined to the immediate needs% For e/ample if a feasibility study is re&uired,
assistance for tenderin" support should not be part of the proposal but rather be the
sub+ect of a future proposal should the feasibility study prove positive%

! 2roposals should, as ell as respondin" to the priority focus noted above, clearly
demonstrate that the investment pro+ect for hich WBIF assistance is re&uested is a
priority pro+ect relevant for a national or re"ional strate"y% It is also re&uested that
applications demonstrate that the lon"!term financial sustainability and that the impact
of < especially lar"e!scale < pro+ects on public debt has been taken into account%
5pplications can be stren"thened in this respect by ensurin" that the 6inistry of Finance
is invited to comment on the proposal and that these are reflected in the 235F%

! The climate chan"e indo introduced in 4ound 19 to track the financin" allocated to
activities that have an impact climate chan"e miti"ation and adaptation and to raise
aareness of the need to address such issues in the preparation and implementation of
investment pro+ects remains part of the application process%

! 0upport for 06,s should primarily be sou"ht throu"h the Western Balkans ,nterprise
8evelopment and Innovation Facility, the =WB ,8IF>% This facility comprises four
elements: i ,?IF, tar"ets early sta"e innovative 06,s ith e&uity capital. ii% ,?,F, tar"ets
hi"h "roth 06, e/pansions ith e&uity capital. further information available from
5lessandro @ittadini #vittadiaAebrd%com$. iii% 3uarantee facility ill assist 06,s ith loan
collateral obli"ations. further information from 1hrista Baris #c%karisAeif%or"$. and iv%
Technical assistance for beneficiary countries ith support to help create favourable
conditions for the facilities% The facilities ebsite provides more "eneral information:
%bedif%eu

! 5dditionally, 06,s or private enterprises seekin" support for ener"y efficiency
investments
2
, should be directed to the WBIF 4e"ional ,ner"y ,fficiency 2ro"ramme
=4,,2> mana"ed by ,B48. the contact is: 8aniela 8iedrich!4istic, diedricdAebrd%com%


2
For a comprehensive description of all finance facilities for ener"y efficiency measure in the Western Balkans
readers are directed to the bif ebsite: http://bif%eu/documents/2(*
Western Balkans Investment Framework (WBIF)

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! Beneficiaries need to be aare that the number of pro+ects and siCe of contribution that
can be supported is limited by the availability of resources in the ,uropean Western
Balkans Doint Fund #,-BDF$ and ithin I2F%
3. Overall Objective of the WBF
The WBIF supports socio!economic development and ,- accession across the Western Balkans
throu"h the provision of finance and technical assistance for strate"ic investments, particularly in
infrastructure, ener"y efficiency and private sector development% It is a +oint initiative of the ,-,
International Financial Institutions #IFIs$, bilateral donors and the "overnments of the Western
Balkans%
The essence of the WBIF process is the coordinated effort that "oes into preparin" and selectin"
investments for financial support, thereby =blendin"> internationally financed "rants and loans
ith domestic finance to e/pedite the implementation of investments that leads to fulfilment of
strate"ic priorities defined in national, re"ional and ,- accession policies contributin" to socio!
economic development in the re"ion%
2ro+ects should contribute to competitiveness, "roth and +ob!creation in the re"ion%
5 description of the WBIF "overnance structures is provided in 5nne/ 1%
!. WBF "ta#eholders

4.1 Eligible Beneficiaries

5lbania
Bosnia and EerCe"ovina
former Fu"oslav 4epublic of 6acedonia
BosovoG
3

6ontene"ro
0erbia

For trans!national and/or re"ional pro+ects involvin" one or more of the eli"ible Beneficiaries and
another country, WBIF financial assistance ill only be available for the investment relatin" to the
WBIF Beneficiary%

4.2 Eligible project promoters

1urrent WBIF practice is that the pro+ect promoters of an investment proposal seekin" WBIF
support should be public entities at central or local "overnment level and/or a"encies and
companies responsible for the provision of public utilities and services as foreseen in the internal
le"islation of each country%


4.3 External Financiers

3
G=This desi"nation is ithout pre+udice to positions on status, and is in line ith -?014 12)) and the I1D Hpinion on the
Bosovo 8eclaration of Independence>
Western Balkans Investment Framework (WBIF)

)/32

The international financiers are:
,uropean 1ommission
International Financial Institutions #1ouncil of ,urope 8evelopment Bank < 1,B, ,uropean
Bank for 4econstruction and 8evelopment < ,B48, ,uropean Investment Bank < ,IB, The
World Bank 3roup < WB
)
, Breditanstalt fIr Wiederaufbau ! BfW$
Bilateral 8onors and Financial Institutions

$. WBF "upport

5.1 Types of Financial Support !ailable " #rants$ %oans an& Financial Facilities'

The WBIF provides "rants and loans to support investments in infrastructure or specialised
financial facilities%
3rants can be for:
i$ Technical assistance to prepare infrastructure investments #e%"% to carry out a feasibility
study etc%$% To date, most of the "rants approved have been of this type
*
%
ii$ Technical assistance to overcome specific obstacles that are delayin" the preparation or
implementation #e%"% construction$ of a priority investment pro+ect% Eoever, it must be
noted in order to consider and +ustify WBIF support for falterin" pro+ects there must be a
thorou"h analysis of the causes of blocka"es accompanied by a clear and lo"ical use of
"rant support that ill lead to pro"ress% 5s a "eneral principal, WBIF ill not add more
subsidy to an e/istin" investment but ill consider support to improve the
policy/re"ulatory environment relevant to the investment, throu"h capacity buildin"%
iii$ Technical assistance to undertake research and analysis to facilitate the development of
investments in a particular sector or sub!sector #see *%2 #d$ sector studies belo$
iv$ Technical assistance to support policy reforms and institution buildin" re&uired to
improve the investment climate #usually as part of a lar"e financin" facility #e%"% the
WBIF's ,nterprise 8evelopment and Innovation Facility ! ,8IF < see
http://%bif%eu/2rivateJ0ectorJ8evelopment$%
v$ 1apital e/penditure% For very particular cases here a fundin" "ap is clearly identified% In
"eneral WBIF support should prepare pro+ects for financin" and/or levera"e additional
capital rather than provide direct co!financin"%
vi$ Incentive payments for financial intermediaries% For e/ample ith provision of 06,
financin"%
vii$ Interest rate subsidies% The cost of borroin" may be reduced here the need is
+ustified. this is a facility provided by particular IFIs, notably the 1,B%
viii$ Insurance premia% Fundin" of insurance premia necessary to implement a pro+ect%

7oans can be used for:
i$ Investments in infrastructure% 6ost of a loan ill be used for capital e/penditure. in
addition amounts can be used for technical assistance and pro+ect implementation
support% 7oans under the WBIF are provided by the eli"ible IFIs as a"reed ith the
national "overnment of the beneficiary country%


)
The World Bank can act as lead financier for Bosovo and for =sectoral> development studies% In "eneral for other
beneficiaries it can co!finance investments ith other IFIs or the ,1 unless a specific decision of the 2F3 allos it to lead%
*
2roposal promoters need to take care hen specifyin" types of services re&uested. for e/ample a feasibility study for an
IFI is unlikely to cover national statutory licences that the promoter may e/pect%
Western Balkans Investment Framework (WBIF)

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0pecialised Financial 5ssistance 2ro"rammes or Financin" Facilities are comple/ assistance
pro"rammes that support implementation of "overnment policies in particular sectors and that
tar"et specific, ell defined end!user% To date these have been used for:
i$ ,8IF #,nterprise 8evelopment and Innovation Facility$ < This provides e&uity and/or loan
financin" for innovative and hi"h "roth 06,s alon" ith technical assistance to
improve the re"ulatory environment%
ii$ ,ner"y ,fficiency ! 2rovision of loan financin" for "overnments, local municipalities and
public companies for ener"y efficiency related investments alon" ith technical
assistance for "overnment, municipalities and financial intermediaries%

5.2 Eligible sectors
(
'

WBIF support focuses on the folloin" areas and sectors of activity:

a$ Infrastructure:
i$ Transport
4oad, rail, sea and ater ays, air transport, urban transport, inter!modal terminals
ii$ ,ner"y
3eneration #a preference is "iven to reneable technolo"ies$, electricity, "as and oil
strate"ic transmission, stora"e, 1E2/co"eneration, district heatin" and ener"y efficiency
iii$ ,nvironment
Water supply, aste ater, seera"e, solid aste, haCardous aste, emission control,
climate chan"e
iv$ 0ocial
,ducation, +udiciary, health, social housin", public buildin"s

b$ 2rivate 0ector 8evelopment
?ational or re"ional schemes to assist 06,s on a "roup basis% 5pplications from individual
enterprises are not permitted by 235F application and should be sou"ht throu"h the WBIF
,nterprise 8evelopment and Innovation Facility, =,8IF>%

c$ ,ner"y ,fficiency
2ro"rammes to support beneficiaries' efforts to reach their ener"y savin"s tar"ets under the
,ner"y 1ommunity Treaty% 5pplications from the private sector or municipalities for
individual ener"y savin"s pro+ects should be directed throu"h the WBIF supported 4e"ional
,ner"y ,fficiency 2ro"ramme, =4,,2>%

d$ =0ector 8evelopment> pro+ects
0tudies that ill provide information, analysis and here relevant recommendations that
support the development of investments and/or improve the investment climate in the
Western Balkans% 0uch pro+ects must have benefits for the ider re"ion% 0pecific "uidelines
have been prepared for these and are attached in 5nne/ 2%

5.3 Eligible )osts

5ll elements of the eli"ible cost
(
of the investment pro+ects are in principle eli"ible for "rant

K
The sub!sector e/amples "iven are illustrative only and shouldn't be considered e/haustive or restrictin"%
(
When calculatin" the eli"ible costs of a pro+ect that may benefit from "rant financin" or co!financin", the rules and
procedures of the 1ommission, the partner IFIs and the ,WBDF ill apply < see 2ro+ect 3rant 5pplication Form < 5nne/ 3%
Western Balkans Investment Framework (WBIF)

K/32
financin" sub+ect to approval of the WBIF 0teerin" 1ommittee%

%. &he WBF Project 'pplication Process

2ro+ect applications for WBIF support are tri""ered by calls for pro+ect proposals% These are
issued by the WBIF 0ecretariat in 83 ,nlar"ement and sent to all ?I251s ho are responsible for
further dissemination in their respective countries% They are also published on the WBIF ebsite
%bif%eu% There are normally to calls #also knon as rounds$ each year timed to allo
approval of "rants at the WBIF 0teerin" 1ommittee meetin"s in Dune and 8ecember%

The fre&uency of rounds can be affected by the availability of funds%

(.1 Source of re*uests for +B,F support.

5pplications for WBIF support can be submitted by:

i$ 5 ?I251 office% The ma+ority of applications come from this source #folloin"
consultations ith lead IFI$%
ii$ 5n IFI% #folloin" consultations ith ?I251#s$$
iii$ 5 re"ional sectoral or"anisation. for e/ample 0,,TH, ,ner"y 0ecretariat, 411 #folloin"
consultations ith ?I251s and IFI#s$$%

For re"ional pro+ects, #those that benefit to or more beneficiaries and may include an ,-
6ember 0tate$, a lead applicant #?I251 or re"ional sectoral or"anisation$ is responsible for
submittin" the application% 5pplications must indicate other supporters on the 235F, and
formal e/pressions of support from a competent "overnment authority must be attached to the
application%

For all applications, the interested IFI must be indicated and consulted% 0ee section K%) belo%
5pplications submitted by an IFI or a re"ional sector or"anisation should similarly have and
demonstrate support from the relevant ?I251#s$%

5pplications for WBIF support must be made on a 2ro+ect 3rant 5pplication Form #235F$
relevant for the particular round. the round number is prominently displayed on top of pa"e 1%
The correct 235F can be donloaded from the WBIF ebsite at:
http://%bif%eu/2ro+ectJapplicationJandJselection

It is important to use only this source for blank 235Fs and not to alter the file format as this is
the only format that ill ork in the supportin" WBIF mana"ement information system #the
WBIF!6I0$%

5 sample version of the 4ound 11 235F is shon as an e/ample in 5nne/ )%

2articular attention is dran to the 235F's 5nne/ 1: the eli"ibility checklist% For a pro+ect to be
considered eli"ible all the points on this list must be fulfilled% Ineli"ible applications are
ithdran from further assessment%

(.2 +B,F facilities accor&ing to E- ccession Status'


Western Balkans Investment Framework (WBIF)

(/32

In line ith the revised approach under the forthcomin" I25 2, WBIF resources are available for
investments in all sectors to all Beneficiaries re"ardless of candidate status% Eoever, pro+ects
currently receivin" support under the 4e"ional 1omponent of I25 are not eli"ible for assistance%

(.3 Specific Sector )onsi&erations

There are specific sector factors that pro+ect promoters should consider hen preparin" pro+ects%
First, after satisfyin" that pro+ects meet the overall ob+ective of the WBIF, to support priority
investments in line ith ,- accession ob+ectives, it is essential that pro+ects also comply ith
relevant national and re"ional development plans and strate"ies, particularly those relatin" to
the specific sector% 0econd, there are some specific sector criteria that should be born in mind%

When preparin" applications, promoters should take into consideration their relevance to the
implementation of the folloin" re"ional and national policies and strate"ies%

Hverall

0,, 2929 < a re"ional strate"y to facilitate national efforts to improve inte"rated,
smart, sustainable and inclusive "roth as ell as "overnance for "roth% 0,, 2929
mirrors the ,-'s 2929 5"enda but is adapted to the specific circumstances of the
Western Balkans%

8anube strate"y

?ational development plans and country strate"y papers%

1limate chan"e issues% 5 1limate 1han"e Windo #11W$ as introduced to the
WBIF in Dune 2913
L
% The aim of the 11W is to #i$ assist in identifyin" the contributions
to climate finance #miti"ation and adaptation$ from each pro+ect and #ii$ to
encoura"e improved desi"n of infrastructure pro+ects so that investments are made
more resilient to current and future climate risks%
The assessment of contributions to climate finance #miti"ation and adaptation$ is
done by the 7ead Financial Institution durin" the assessment phase% The assessment
is based on the 4io 6arkers
M
methodolo"y that e/amines hether climate chan"e is
the principle ob+ective of a pro+ect, one of the ob+ectives #si"nificant$ or it is not an
ob+ective% The 7ead FI may propose a specific percenta"e of pro+ect bud"et hich
contributes to climate chan"e based on its on methodolo"y
19
% Trackin" climate
finance commitments is the responsibility of the financiers, not the beneficiaries%
In order to improve pro+ect desi"n and implementation to minimise the impact of
climate chan"e risk on pro+ect and to make pro+ect more resilient to climate chan"es,
beneficiaries are asked to provide information in the 235F on issues such as

L
11Ws ere re&uired by the ,1 and introduced to all ,- Blendin" Facilities orldide%
M
For definitions of 4io 6arkers see 5nne/ K
19
It is the case of IFIs usin" the 6ultilateral 8evelopment Banks methodolo"y #e%"% ,B48, ,IB$
Western Balkans Investment Framework (WBIF)

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potential contribution of the pro+ect to 3E3 emissions reductions, any assessment of
climate risks and hether measures to improve climate resilience of pro+ects have
been considered% The type of information to be provided and the level of detail
re&uired ill depend on the sector and sta"e of maturity of the pro+ect #e%"% pre!
feasibility, feasibility study, detailed desi"n, supervision of orks etc$% 0ee 5nne/ K
for some sample checklists that can assist beneficiaries to determine hat
information is re&uired% It is important to note that these initial assessments should
be done in consultation ith the proposed 7ead IFI as all IFIs have standard
methodolo"ies and tools to identify and assess the information% The 7ead IFI can
further elaborate the climate risks and resilience measures in the assessment phase
hen allocatin" 4io 6arkers%

1onsiderin" each sector:

(.3.1 Energy

The relevant ,- frameork: ,ner"y 1ommunity Treaty #see http://%ener"y!
community%or"$%

The implementation of the Treaty by Beneficiaries is supported by the ,ner"y 1ommunity
0ecretariat that has established orkin" "roups such as the ,ner"y ,fficiency Task Force, the
,nvironmental Task Force and the ,ner"y 0trate"y Task Force to advance ork in the
different areas% 5ll beneficiaries have representatives on these orkin" "roups ho should
provide information on the key issues arisin" and priority investment needs%

Investment pro+ects that feature on the list of 2ro+ects of ,ner"y 1ommunity Interest #2,1I$
adopted by the 6inisterial 1ouncil of the ,ner"y 1ommunity Treaty in Hctober 2913 ill
receive particular attention% 0ee http:// http://%ener"y!
community%or"/portal/pa"e/portal/,?1NEH6,/54,50NHFNWH4B/Investments/2,1Is for
further information%

5n important factor, particularly relevant in this sector, is to distin"uish beteen pro+ects
that need ,- "rant intervention and pro+ects that can, and should, proceed on a commercial
basis usin" private finance% 5s an e/ample of the latter, petroleum or "as distribution
pipelines that add to an e/istin" netork are cases here private finance usually enables
pro+ect preparation and implementation% Eoever, here a transmission line fits ithin a
national and ,- strate"y, support can be considered% -nder no circumstance should a WBIF
pro+ect have a market distortin" effect hereby support "ives an unfair commercial
advanta"e% 0ome cases may be ambi"uous, for e/ample ind farms are normally not "rant
supported% Eoever, WBIF has accepted a "eneral principal that here a country has no
such facility or established private sector provision =pilot pro+ects> can be +ustified in order
to pioneer and stimulate market participation%

(.3.2 Transport

The current relevant ,- frameork for the transport sector is the 6emorandum on the
8evelopment of the 0outh ,ast ,urope 1omprehensive Transport ?etork #see
%seetoint%or"$

Western Balkans Investment Framework (WBIF)

M/32
Implementation of this 6o- is supported by the 0outh ,ast ,urope Transport Hbservatory,
0,,TH% 5ll Beneficiaries are represented on the 0teerin" 1ommittee that is co!chaired by the
,uropean 1ommission%

The 0,,TH 1omprehensive ?etork is ali"ned ith the ,- Trans ,uropean ?etork in
Transport #T,?!T$ and 0,,TH, throu"h its re"ular 6inisterial 6eetin"s and annual updates of
its Five Fear 6ulti!5nnual 2lan re"ularly hi"hli"hts the priority investments as defined by the
Western Balkan countries themselves in particularly in road, rail and inland aterays as
ell as supportin" ork on various aspects of transport policy%

WBIF pro+ects, particularly re"ional ones, must be part of the 0,,TH 1omprehensive ?etork
and/or included in ,1 policies and 0,,TH 6emorandum of -nderstandin"% ,/ceptions to the
1omprehensive ?etork may be considered for urban transport provision, ith priority to
public transport, or city/ton bypasses that have si"nificant positive economic and
environmental benefit%

5ll modes of transport can be considered: passen"er and frei"ht%

(.3.3 En!ironment

The relevant ,- frameork is set by a number of demandin" and input intensive directives
that must be transposed and implemented by the Beneficiaries% Implementation ill in many
cases re&uire considerable investment% 8irectives that may re&uire such investments include:


Water "uppl() Waste*ater &reatment

-rban Wasteater Treatment 8irective
8rinkin" Water 8irective
8an"erous 0ubstances into Water
8irective
?itrates 8irective
Bathin" Water 8irective

Floods 8irective

Waste +ana,ement

7andfill 8irective
Waste Incineration 8irective
Waste Frameork 8irective #EaCardous Waste$
0ea"e 0lud"e 8irective


'ir Pollution -ontrol

7ar"e 1ombustion 2lants 8irective
Fuel Ouality 8irectives
5ir Ouality 8irectives
ndustrial Pollution -ontrol

I221 8irective #8irective on Industrial ,missions$




When tryin" to prioritise amon" environment related investments, there are a number of
re"ional environment related pro"rammes and studies of relevance for the WBIF%
1urrent/on!"oin" initiatives here investments are foreseen include the 8anube 0trate"y,
various 4iver Basin 6ana"ement 2lans includin" the 8anube 4iver Basin 6ana"ement 2lan,
the 0ava 4iver Basin 6ana"ement 2lan and ,10 Task Force on ,nvironment% In several cases
a prioritisation of investments has been carried out under these initiatives%
Western Balkans Investment Framework (WBIF)

19/32
3iven the e/tent of the investment re&uirements, pro+ect promoters could consider focusin"
on pro+ects of a particular siCe% For e/ample the -rban Waste Water Treatment 8irective
re&uires that a""lomerations bi""er than 2999 persons #e&uivalent$ should be covered by the
directive re&uirements% When the 8irective entered into force the ,- 6ember 0tates had a
"radual approach to implementin" the re&uirements. by the end of year 2999 they had to
cover a""lomerations bi""er than 1*,999 persons and five years later other a""lomerations%

(.3.4 Social

-nlike the other WBIF sectors, there are no specific ,- directives or ac&uis for social sector
infrastructure but investments should comply ith ac&uis includin" under 1hapter 1M: 0ocial
2olicy and ,mployment and 1hapter 2L: 1onsumer and Eealth 2rotection% 5li"nment ith
the Bolo"na process in education is also important%

There is no social sector specific dedicated re"ional body. hoever the 4e"ional 1ooperation
1ouncil #411$ provides a re"ional focus for social matters #see http://%rcc%int/$

While the emphasis of WBIF pro+ects is hard infrastructure, schools, hospitals, prisons etc,
the WBIF facility of =0ector 8evelopment> pro+ects #see anne/ 2$ allos for studies on social
policy and related issues that could be used to facilitate prioritisation of capital investments
in this sector%

%.! ,F, in!ol!ement

5ll pro+ects should have an interested =lead> IFI that is either e/pected to contribute to the
financin" of the eventual investment for hich preparation support is sou"ht or hich has
already allocated financin" for an investment for hich support is re&uired to facilitate
implementation%

There may be more than one interested IFI hereby pro+ects can be co!financed and indeed co!
financin" is encoura"ed for suitable pro+ects% The 235F e/pressly asks all pro+ect promoters to
note hich IFI#s$ is participatin" and to provide an IFI contact person%

2ro+ect promoters must consult ith the lead IFI on the proposed pro+ect prior to submission of
the 235F% IFI staff can contribute to the preparation of the 235F%

The IFIs that can lead are:
,uropean Investment Bank < ,IB
,uropean Bank for 4econstruction and 8evelopment < ,B48
1ouncil of ,urope 8evelopment Bank < 1,B
Breditanstalt fIr Wiederaufbau < BfW

In addition:
World Bank < WB% The World Bank can act as lead financier for Bosovo and for
=sectoral> development studies% In "eneral for other beneficiaries it can co!finance
investments ith other IFIs or the ,1 unless a specific decision of the 2F3 allos it to
lead%

Western Balkans Investment Framework (WBIF)

11/32
(.5 .roject rea&iness

3iven the WBIF's stated aim to e/pedite priority investments in key sectors, re&uests for support
should only be submitted for proposed investments that are:

a$ 1learly indicated as part of a national or sectoral development plan in the relevant
beneficiary#/ies$%
b$ In accordance ith ,- policy and pre!accession pro"ramme%
c$ 1omply ith the beneficiaries' commitments under relevant international and/or re"ional
a"reements for e/ample the ,ner"y 1ommunity Treaty or the 0,,TH 1omprehensive
?etork%
d$ 8eemed eli"ible for national co!financin" #e%"% inclusion in the medium term e/penditure
forecast or other ministry of finance documents$%
e$ Eave a hi"h e/pectancy that a realisable investment plan ill be concluded as an output of
the WBIF support%

Where pro+ects are under preparation, for e/ample here a feasibility study is underay, no ne
financin" ill be provided until the study is complete% 0imilarly, here a "rant is aarded but not
disbursed further support ill not be considered%

The 235F re&uires specific information on all of the above to be included in the application%

(.( )omplementarity /it0 ot0er E- support

2ro+ects must complement, and not duplicate or displace, other ,- support mechanisms or
indeed other donor support pro"rammes% In particular pro+ects must be considered ith
reference to national priorities and I25 support% 2ro+ect promoters should be aare that ,-
8ele"ations ill be asked to comment on individual pro+ect applications as part of the screenin"
process and ideally should consult ith ,- 8ele"ations in advance particularly here a potential
investment is part of a nationally a"reed strate"y < see section ( belo%

(.1 %imit of a project2s bu&get an& scope of /or3

5 pro+ect's bud"et and scope of orks is defined in the 235F% Hnce approved by the WBIF 01,
"rants can be spent only and e/clusively for the scope of the pro+ect hich has been screened
and assessed positively% 3rants cannot be used for a different scope%

1oncernin" technical assistance "rants aarded throu"h the ,- funded I2F facility a small
variance in bud"et may be permissible here small, unforeseen items arise or hen practical
additions for the pro+ect's success are needed% For such I2F pro+ect variances need prior approval
from the I2F task mana"er at the ,uropean 1ommission and ill be dealt ith on a case by case
basis folloin" full consultation ith relevant stakeholders% This feature is not, currently,
available for technical assistance aards made throu"h the ,WBDF%

0i"nificant variations in bud"et and/or scope of orks re&uire the submission of a ne 235F for
0teerin" 1ommittee approval%

.. WBF "creenin, and 'ssessment Procedure

Western Balkans Investment Framework (WBIF)

12/32
There is a clearly defined revie and approval process that 235Fs follo from submission
throu"h to 0teerin" 1ommittee decision% The si/ monthly round pro"resses throu"h this cycle:

4eceipt of proposals recorded and reference code allocation by WBIF 0ecretariat%
235Fs uploaded and re"istered in the WBIF!6ana"ement Information 0ystem #WBIF!6I0$
0creenin" consultation process launched by the WBIF 0ecretariat, throu"h the 6I0, seekin"
comments from ,- 8ele"ations, relevant 7ine 8irectorate 3enerals #e%"% 83 6H@,, 83
,nvironment etc$, 83 ,nlar"ement 1ountry 8esks and the I2F1 Technical 5ssistance Bey
,/perts% The first three provide opinion on strate"ic relevance, nationally and in the ,-
accession perspective, hile the latter "ives a technical opinion% The process is covered in the
235F 5nne/ 2%
The 2ro+ect Financiers 3roup considers the screenin" results and selects positively screened
pro+ects for further consideration < i%e% assessment%
5ssessment revie is launched% ,ach positively screened pro+ect is allocated to a 7ead IFI
ho assesses the 235F for a ran"e of criteria includin": economic, financial, environmental
etc% The process is covered in the 235F 5nne/ 3%
The 2ro+ect Financiers 3roup considers the assessment results and recommends positively
assessed pro+ects for submission to the 0teerin" 1ommittee for approval of a WBIF "rant%
In addition to recommendin" pro+ects for "rant aard the 2F3 also revies previously
approved pro+ects that have not pro"ressed% 5s outlined in section L%3 belo, the 2ro+ect
Financiers 3roup may recommend the cancellation of "rants here it is deemed that
pro"ress cannot be made as envisa"ed% The fundin" associated ith these "rants is then
returned to the overall WBIF resources%
The meetin" of 0teerin" 1ommittee here pro+ects recommended for "rant aard are
presented by the respective ?I251% The 01 takes the decision on "rant aard% This concludes
the pro+ect application cycle ith approved pro+ects pro"ressin" to the ne/t phase e%"%
technical assistance for investment preparation or actual investment and pro+ect pro"ress is
monitored via the WBIF 6I0 and reported to the 0teerin" 1ommittee%

/. WBF ,rant mana,ement process follo*in, "teerin, -ommittee approval

0teerin" 1ommittee approval si"nals the start of the activity #ies$ a "rant as approved for% The
ma+ority of "rants are for technical assistance and their "eneral pro"ression is covered belo%
3rants providin" co!finance investments are not dealt ith in the 3uidelines%

4.1 ,.F grant a/ar&s

3rants that are implemented via the Infrastructure 2ro+ects Faculty #I2F$ currently use e/clusively
,uropean -nion funds from the I25 bud"et
11
and are e/clusively for technical assistance for
pro+ect preparation or, in appropriate cases, supervision of orks% The ork is done by three
teams of consultants: I2F1, I2F2 and I2F3. all three teams are based in Bel"rade
12
%

3rant implementation "oes throu"h a common process #similar to the selection process, I2F
"rants are administered by a systematic procedure captured on the 6I0$:


11
This ill chan"e in the future as I25 funds are put into the "eneral ,WBDF pot
12
0ee 5nne/ 1 8escription of WBIF 0tructures for further details of I2F
Western Balkans Investment Framework (WBIF)

13/32
P Terms of reference #To4$ are prepared by one of the I2F team sector e/perts for ork to be
done based on scope defined in the 235F% The To4 are prepared in consultation ith the
pro+ect's promoter and lead IFI% When a"reed ith these stakeholders they are shared, via
the 6I0, ith a ider stakeholder base for consultation%
Hnce To4 are accepted an I2F consultant is char"ed ith fulfillin" the To4 defined tasks%
The I2F consultant recruits a team of e/perts that for hich approval is needed from 83!
,nlar"ement%
The team fulfil the To4 tasks, keepin" the stakeholders informed% 5s ell as pro+ect specific
reportin" as re&uired the I2F teams report bi!monthly on all pro+ect activity throu"h the Bi!
monthly report%
-pon ork completion documents are presented to the pro+ect's promoter and IFI as
necessary% 5 completion presentation and orkshop are normally held to present and
disseminate results%
The I2F consultants secure acceptance or no!ob+ection letters from the pro+ect promoter and
lead IFI%

4.2 E+B5F grant a/ar&s

Funds of the ,WBDF are co!mana"ed by the ,B48 and the ,IB% 5n implementation a"reement
#I5$ is si"ned beteen the ,B48 and the lead financial institution, in accord ith the co!mana"er
of the ,WBDF, the ,IB, to provide the terms by hich the funds are to be transferred and may be
utilised% Hnce si"ned, the 7ead Financial Institution #7FI$ submits a re&uest for payment for the
funds to be disbursed% The I5 is si"ned after the 01 approval and before the consultancy contract
is si"ned%

7FIs that use ,WBDF resources provide financial updates to the co!mana"ers of the ,WBDF on an
annual basis for fund mana"ement purposes, such that they can confirm to the 01 that resources
have been used appropriately and in accordance ith decisions of the 01 and the 3eneral
1onditions of the ,WBDF% 5n audited financial statement of the ,WBDF is submitted annually to
the 01%

5dditionally, the 6ana"ement Information 0ystem of the WBIF #currently mana"ed by I2F1
consultants$ keeps a record, updated every si/ months by the respective 7FI, on the pro"ress of
the pro+ects financed via ,WBDF%

5s a "eneral rule it is stron"ly advised, for any "rant application under the WBIF, to assure the
earliest involvement of the 7FI% 8oin" so ill not only "uarantee 7FI support for the application
but also allo the 7FI to set in motion the ade&uate procedures and minimise delays%


4.3 Extraor&inary circumstances

5 number of specific procedures have been a"reed for hen an 01 approved "rant does not
pro"ress in line ith the 235F%

4.3.1 .roject /it0&ra/al &ue to inaction

WBIF "rants that do not satisfactorily proceed ill have support ithdran% For technical
assistance pro+ects that have no To4 defined and approved ithin one year of 01 approval and
Western Balkans Investment Framework (WBIF)

1)/32
for "rants to co!finance investments that have not disbursed funds ithin three years of 01
approval, the 2F3 ill be notified and, folloin" their revie, a recommendation made to the 01
for ithdraal of WBIF support% The 2F3 may sanction a si/ month reprieve before proposin" to
the 01 the pro+ect is ithdran. this "race period offers the opportunity for action to be taken%

Where pro+ect loses the support and/or confidence of either the pro+ect promoter, beneficiary or
lead IFI support ill be ithdran, folloin" the above process%




5nne/es:

5nne/ 1 WBIF 0tructures and 4elated Bodies
5nne/ 2 3uidelines for 0ector 8evelopment 2ro+ects
5nne/ 3 The WBIF application process from a Beneficiaries' perspective
5nne/ ) 0ample 2ro+ect 3rant 5pplication Form
5nne/ * WBIF 4e"ional offices and I2F support contacts
5nne/ K 5dditional information on the WBIF 11W

Western Balkans Investment Framework (WBIF)

1*/32
'nne0 1. WBF "tructures and Related Bodies

T0e +B,F Steering )ommittee
The 0teerin" 1ommittee takes all decisions related to the Doint 3rant Facility includin" pro+ect
approvals and provides strate"ic "uidance for the WBIF% The 0teerin" 1ommittee brin"s to"ether
representatives of the beneficiaries, the ,1, partner IFIs and bilateral donors$ and meets every
si/ months% It is co!chaired by the 1ommission #on a permanent basis$ and one of the bilateral
donors #on an annual rotatin" basis$%

T0e .roject Financiers2 #roup 6.F#7
The 2F3 is responsible for screenin" and assessin" re&uests for financial support from the Doint
3rant Facility ith the ob+ective of establishin" a pipeline of priority pro+ects% It is also
responsible for the coordination of approved "rant operations% The 3roup is composed of
representatives of the 1ommission #83 ,nlar"ement coordinates the participation of all relevant
1ommission services$, IFIs and bilateral donors% It is co!chaired by the 1ommission #on a
permanent basis$ and the partner IFIs #on a rotatin" basis every K months$%

+B,F Secretariat$ 8# Enlargement
The WBIF 0ecretariat comprises five staff members of 83 ,nlar"ement ho are responsibly for
the day to day mana"ement, coordination and administration of the WBIF% In particular, the
0ecretariat issues calls for proposals for pro+ects and mana"es the screenin" and assessment
process%

9ational ,. )oor&inators 69,.)s7
5pplications for "rant support under the WBIF must be formally submitted by the ?I251 or
?I251s of the respective beneficiaries% In the case of re"ional sectoral pro+ects, the application
can be made by the relevant sectoral or"anisation
13
but must be accompanied by official letters
of support from relevant ?I251s% ?I251s are responsible for presentin" applications supported
by the 2F3 to the 0teerin" 1ommittee for approval%

,nfrastructure .roject Facility : ,.F
The I2F is a substantial ,1!financed facility for the WBIF that provides teams of technical e/perts,
to assist beneficiaries and financiers ith the preparation of infrastructure pro+ects that have
been identified as a priority by WBIF stakeholders% I2F assistance is also made available to assist
ith investment implementation here approved by the WBIF 0teerin" 1ommittee and I2F
supports the operation of the 2F3% For more information please see http://%bif!ipf%eu

,F, )oor&ination ;ffice " ,F, );
The IFI 1oordination Hffice is an ,1!financed pro+ect that supports better coordination and
communication amon" the ,1, IFIs, bilateral donors and beneficiaries in the Western Balkans% It
focuses on policy and strate"y issues in the key sectors of ener"y, environment, transport, social
issues and private sector development% It provides a ran"e of services includin" research and
analyses, technical assistance, communications and administrative support% In particular it
supports the WBIF 0teerin" 1ommittee and mana"es the WBIF ebsite% For more information
please see http://%bif%eu


13
For e/ample, the ,ner"y 1ommunity 0ecretariat
Western Balkans Investment Framework (WBIF)

1K/32
'nne0 2. 1uidelines for "ector Development Projects

1. ntroduction
The WBIF 0teerin" 1ommittee decided at its )
th
meetin" in Dune 2911 that pro+ects comprisin"
research and analytical studies ould be eli"ible for fundin" under the WBIF up to an indicative limit
of Q2 million per annum% In order to "uide applications for such pro+ects and to facilitate their
assessment by WBIF structures, the folloin" "uidelines have been a"reed%
2. Overall Objective of a 2sector development project3 under WBF
To provide WBIF stakeholders ith information, analysis and here relevant recommendations that
support the development of investments and/or improve the investment climate in the Western
Balkans%

3. -haracteristics of 4li,ible Projects
2ro+ects should address one or more of the WBIF sectors < ener"y, environment, transport,
social issues #includin" infrastructure$ and private sector development% 1ross
cuttin"/horiContal issues #e%"% fiscal policy, 222s etc$ are also eli"ible%
In "eneral pro+ects should be Rmulti!beneficiaryR in nature, either in the form of a clear cross-
border externality #often the case in infrastructure such as ener"y, transport$ or by hi"hli"htin"
common features that are shared by a number of countries in the re"ion due to their shared
policy and institutional le"acies #e%"% in environment or in socio!economic areas such as
education and health$%
Where a pro+ect is proposed for one beneficiary it should have clear application for and
support from other beneficiaries%
0ectoral pro+ects should be developed and undertaken in close cooperation ith the relevant
re"ional or"aniCations/pro"rammes #,ner"y 1ommunity 0ecretariat, 4,?5, 0,,TH, 0,,
Investment 1ommittee, 411 etc%$%
The results of any pro+ects are to be made available to all WBIF stakeholders%

!. Project 'pplication and mplementation
In line ith standard WBIF procedures, applications for study pro+ects should be submitted as
part of the re"ular calls for proposals%
5pplications can be submitted by ?I251s or by re"ional sectoral or"aniCations ith the support
of ?I251s% Hther ?I251s ill have to support the proposals like for re"ional pro+ects%
5pplications must be endorsed by a lead IFI #or other competent body, ,1 or bilateral donor as
may be necessary$ before submission% This lead IFI ill take overall responsibility of the pro+ect
if it is approved%
Hn approval, a pro+ect ill enter the standard WBIF monitorin" process and relevant
information on implementation must be provided via the WBIF 6I0 system and to WBIF 2F3
and/or 01 meetin"s as necessary%
2ro+ect developers and implementers ill liaise ith the IFI 1oordination Hffice to ensure
"reater coordination ith WBIF policy and strate"y activities and other related activities%
5ll reports ill be produced as WBIF 2olicy and 0trate"y 8iscussion 4eports and ill be
presented as appropriate at WBIF events and relevant sectoral meetin"s%

Western Balkans Investment Framework (WBIF)

1(/32
'nne0 3. &he WBF application process from a Beneficiar(5s perspective

There is a common se&uence of events and activities that Beneficiaries ill follo throu"h a
WBIF cycle% While each country ill have its on internal compliances, procedures and
administration there is a "eneric frameork that fits ithin WBIF deadlines% The cycle can be
broken into a five sta"es:

1. 9otification to rele!ant organisations calling for project applications.
Hnce the ?I251 has received a ne call for pro+ect proposals from the WBIF 0ecretariat, this
information should be circulated to bodies that are sources of pro+ects and/or responsible
for national borroin", typically line ministries, ministries of economy/finance/,-
inte"ration, municipalities, state institutions and companies%

5s ell as seekin" proposals, this notification should provide: a$ "uidelines on eli"ible
pro+ects. b$ "uidance on any national priorities that ould benefit from WBIF participation. c$
instruction on WBIF timin" and administration < deadlines and use of template 235F.
deadlines must take account of internal administration and procedures. d$ information and
contact details for technical and administrative support available from I2F1 ! see 5nne/ 1%

2. .riority project i&entification
When assessin" potential pro+ects, pro+ect promoters and/or ?I251s must ensure that the
pro+ect complies ith the eli"ibility criteria outlined in these "uidelines and that they meet
the eli"ibility checklist in 5nne/ 1 of the 235F%

3. .riority project preparation an& submission
Hnce suitable pro+ects are identified a 2ro+ect 3rant 5pplication Form must be completed%
2lease note the only 235Fs donloaded from the WBIF ebsite should be used% The
re&uirements for each bo/ to be filled is clearly defined in the bo/es accompanyin" the
"uidance note #positioned to the top left of each bo/$. these notes are very specific and
comments should clearly respond to these re&uests%

I2F 1 can provide additional trainin" to all beneficiaries on pro+ect application and 235F
preparation% 5dditionally, the four I2F1 sector e/perts can provide technical support and
advice on individual or "roup portfolio pro+ects and the I2F country mana"er can provide
administrative and procedural instruction% 2lease note I2F 1 sector e/pert' vies are sou"ht
by the 2F3 durin" the screenin" and assessment process% 7ead IFIs must be consulted in the
preparation of 235Fs%

4. )entralise& project selection an& prioritisation
1ompleted 235Fs need to be revieed, assessed and prioritised from a national perspective.
this is coordinated by the ?I251% The revie should check that all WBIF criteria are met and
that administrative procedures are in order% The assessment and prioritisation re&uires a
hi"h de"ree of coordination beteen the ?I251 and all relevant "overnmental bodies
includin" the 6inistry of Finance%

5. Submission of c0osen projects
The a"reed, and preferably prioritised, pro+ects should be sent to the WBIF 0ecretariat by the
specified deadline% The submission should be accompanied by a letter from a competent
authority, usually the nominated ?I251, hich lists the applications and confirms the
Western Balkans Investment Framework (WBIF)

1L/32
"overnment's support for the applications% For re"ional pro+ects, the lead ?I251 or sectoral
or"anisation must also provide the formal e/pressions of support from other beneficiaries%

Western Balkans Investment Framework (WBIF)

1M/32
'nne0 !. "ample Project 1rant 'pplication Form 6P1'F7

Project Grant Application Form Round 11
Last update: 28/01/2014
Submission date: 11/03/2014


These boxes are filled by the WBIF Project Financiers Group of the WBIF
Contribution Request number: WB11-XXX-XXX-XX
For submission to Project Financiers Group of: 20/05/2014
Proposal of the Project Financiers group:

Grant Contribution from WBIF:
from EC Budget:
from other funds:
Type of intervention:
WBIF Screening
(cf. Screening list in Annex 2)




WBIF Assessment
(cf. Assessment list in Annex 3)






PGAF and Annex 1 to be filled by the submitter
Title of the Operation: XXXXX
Beneficiary(ies)/
Country(ies)
14
XXXXX
(Interested) Lead IFI
15
XXXXX
Eligible Sector
16
XXXXX
Sub-sector XXXXX
DAC Sector
17
XXXXX
DAC code XXXXX


14
Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Montenegro, Serbia, and Kosovo* (with a
footnote reference stating: This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the
ICJ Opinion on the Kosovo Declaration of Independence the first time it is mentioned in the document) are the mandatory
names that must be used when referring to the Beneficiaries in this introductory section as well as in the text body of the
application form.
15
Lead IFI must get confirmed before submission.
16
Please see annex 1, point 2.
1(
For guidance see: www.oecd.org/dac/stats/data
Western Balkans Investment Framework (WBIF)

29/32
Geographical
coverage


Borrower /
Beneficiary(ies):
(contact points for both)



Project description :
(description of the planned
investment(s) and the present
situation, including problems
to overcome)





Outcome / Results to
be achieved for the
investment: (specify the
foreseen results, indicate
1. the economic
2. the social
3. the environmental benefits
produced by the investment
4. as well as the estimated
number of direct
beneficiaries)

Strategic justification:
(specify which strategy and/or
investment plans both at
national and regional level
include the proposed project)

Can you describe how the
project is in line with
- EU pre-accession strategy
- National strategy
-Other donors' strategy?

Additional comments
on the project:
This part should focus on
- constraints, partners/site
availability, assumptions and
risks appraisal etc
- provisional project
chronology, including target
date for loan signature

Description of the
Grant use:
This part should focus on:
- what is concretely requested
to be financed and the
expected outcomes
- how the use of this grant is
linked to eventual other
existing grants

Grant request
justification:
This part should focus on the
value added of the grant:
-Why a grant contribution is
needed for the Project

Western Balkans Investment Framework (WBIF)

21/32
completion?
- How will the grant help
remove barriers and
accelerate project
completion?
- How urgent is this grant
request and why?

Contribution to
climate (CC) change
mitigation/
Adaptation
Describe any project
components/ activities
contributing to CC mitigation
and/or adaptation and
expected impact on GHG
emissions reduction.

Indicate if potential CC risks
were considered in the
development of the project
and whether measures have
been taken to make the
project CC resilient

Conformity with the
eligibility checklist:
summary
(cf. list in Annex 1)



The proposals
response to Round 11
priority
It "unblocks" an existing
project where identified
problems are solved by the
proposed targeted TA;
and/or it builds on and/or
enhances an existing project
where the proposed additional
support either advances it to
the next stage in the project
development cycle or expands
the benefits of the existing
grant%


Or
It is a new project that clearly
demonstrates regional impact
on the ground.


Western Balkans Investment Framework (WBIF)

22/32


18
The grant financing to a specific investment project (Grant operation) may take the form of:
1) Technical assistance: financing technical assistance including preparatory work for eligible investment projects such
as impact assessments, feasibility studies, detailed design, project supervision and targeted capacity building and
implementation support.
2) Investment grants: direct grants for specific project components, as well as incentive schemes based on performance
of implementing institutions.
3) Incentive payments to financial intermediaries.
4) Interest rates subsidies: provision of a lump-sum amount to ensure that the loan finance needed for the investment
project can be made available at reduced interest rates.
5) Insurance premia: funding of insurance premia necessary to implement the investment projects.

Financing Plan


Title of the Operation: XXXXX
Type of Contribution
(type of grants)
18 19


EUR equivalent In Project Currency Curr.
Total Investment
XXX

XXX EUR



Sources of funding
Sources to be adapted case
by case
Total ( M)
Remarks (grants/loans)



WBIF grant request


Loan from IFIs





Beneficiary Contribution


EC Contribution IPA





Total Financing ()
100%




Cost Activities (possibly broken down in phases)
Project preparation
(i.e. FS, DD)



Investment (i.e works,
supervision, etc)






Total activities
100%

Total Grant
requested

Total Loan
required


Eligible Finance Institution Consortium
Lead IFI Contact person Phone email
XXX

Other Eligible IFI (EFI)
member of the consortium
Contact person Phone email
XXX

Western Balkans Investment Framework (WBIF)

23/32
Annex 1: Eligibility checklist

Yes No
1
Operations covered by the WBIF benefit one or more of the following Beneficiaries: Albania, Bosnia and
Herzegovina, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo*

2
Fall within one of the eligible sector: Environment | Energy | Energy efficiency and savings |
Transport | Social | SME, private and financial sector support

3
The project is not supported by the Regional Development Component of IPA

4
All elements included under the activities covered by a WBIF grant
20
for the investment projects are in principle
eligible for grant financing

5
The project promoters application is submitted by a NIPAC
21
, or a Regional Sectorial Organisation

or the
partner IFIs and support is endorsed by all relevant parties

6
The project is consistent with the EU Pre-Accession Strategy and relevant sector policies and national
investment plans

7
Grant requests explicitly mention any complementarities or coherence with projects supported or planned for
support under the IPA National Programmes (for implementation by the EU Delegations or by the Beneficiaries
authorities) and/or other donors activities

8
The borrower/beneficiary intends to use the leverage of a loan through the Joint Lending Facility for this project

9
Grant operation will be consistent with the policies, rules and procedures of each source of funds
(Commission, EIB, EBRD, CEB and EWBJF)

10
The lead IFI has been consulted on possible contribution of project to climate change mitigation/adaptation
and on its climate resilience

11
An IFI is aware of this proposal and the IFI person, noted on page 4,agrees to being recorded as the IFI
contact person

12
The application meets the Round 11 priority for submissions


7
When calculating the eligible costs of a project that may benefit from grant financing or co-financing, the rules and procedures
of the Commission, the partner IFIs and the EWBJF will apply. Eligibility of IFI Grant financing should be confirmed with co-
financiers. According to the IPA Regulation the following expenditures are not eligible: a) taxes, including value added taxes (in
principle); b) customs and import duties, or any other charges; c) purchase, rent or leasing of land and existing buildings; d)
fines, financial penalties and expenses of litigation; e) operating costs (can be allowed on a case-by-case basis); f) second hand
equipment; g) bank charges, cost of guarantees and similar charges; h) conversion costs, charges and exchange losses
associated with any of the component specific euro accounts, as well as purely financial expenses; and i) contributions in kind.
In addition, any leasing costs or depreciation costs are not eligible. In the case of revenue-generating projects, meaning a
project involving an investment in infrastructure, which is subject to charges borne directly by users, the eligible cost is
calculated according to a funding gap method deducting the value of the net revenue over a specific time from the value of the
investment cost.
8
NIPAC = National IPA Coordinator. The NIPAC is responsible for coordination of programming and monitoring the
implementation of IPA in the Beneficiaries of the Western Balkans and Turkey. As IPA represent the biggest source of external
aid and is linked to the progress and development needed in the EU accession process, and in line with the local ownership
over donor funds and donor coordination as foreseen in the Paris declaration, the involvement of the NIPAC is of utmost
importance for the effectiveness of the JGF and the WBIF.
*This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the
Kosovo Declaration of Independence
Western Balkans Investment Framework (WBIF)

2)/32

PFG Technical Advice and conclusions

Annex 2: Screening (coordinated by DG Enlargement) PROJECT_CODE

How this project is
supported by beneficiaries
and NIPACs (National IPA
Coordinators) as a priority
investment? This part should
also offer a technical advice
on the urgency and maturity
of the grant requested, on
the clarity of the proposed
use of grant and on the
amounts requested
IPF_TA_COMMENT

How the project is consistent
with national (sector)
strategies, national
investment plans and with
the IPA priorities and the
project potential for IPA
support (not allocated via
the JGF) or other donor
funding?
COUNTRY_DESK_AND_EUD_AND_DGREGIO_COMMENT

How the project is consistent
with relevant EU policies?
How the project is consistent
with regional strategies and
investment plans? Is it the
project presenting the
appropriate mix of funding?
LINE_DG_AND_ECFIN_COMMENT

Conclusion
SCREENING_CONCLUSION







2*/32
Annex 3: Assessment
22
(coordinated by lead IFI) PROJECT_CODE


Rationale for use of grant
funds, including assessment
of project maturity and
urgency
GRANT_FUNDS_COMMENT


Regional / Cross Border
Impact
BORDER_IMPACT_COMMENT

Conformity with socio-
environmental standards
ENVIRONMENT_COMMENT

Economic and Financial
justification, including
assessment of TA/grants
needs and leverage aspect
ECONOMIC_FINANCIAL_COMMENT

Capacity of Beneficiary
institution, including how the
grant support will help
capacity building
BENEFICIARY_COMMENT



If assessment has been
done in consultation with
beneficiary, indicate the
contact person, institution
and when consultation took
place
BENEFICIARY_CONTACT_COMMENT


Confirm Financial Plan, as
shown above in main text
body, is valid & correct.
Insert new/revised plan here
if necessary
CONFIRM_FINANCIAL_PLAN_COMMENT




22
As per ToR the Lead IFI has checked the following aspects:
Technical aspects, environmental and social standards, procurement, financial and economic profitability, credit
risk, legal aspects.
Consistency with IFIs policies and procedures
Analysis and estimation of TA/grants needs
Financial structuring/identification of lending under the Joint Lending Facility (only IFIs)
Identification of lead IFI and possible mutual reliance
Link with project borrowers and promoters on technical and financial aspects
Exchange of information among Finance Institutions (e.g. pricing, conditionality)


2K/32

Describe or comment on
projects contribution to
climate change mitigation
and/or adaption and climate
resilience issues
CONFIRM_CLIMATE_COMMENT




Rio Markers record
23


Mark X in appropriate
box(es) if project and/or
grants contribution to
climate change mitigation/
adaptation has:
No objectives

A significant objective

The principal objective
Rio Markers
Mitigation
24
Adaptation
25

Project EU grant Project EU grant
0


1
2




23
It is possible that the project contributes to both mitigation and adaptation in which case both parts need to be marked.
In general the contribution assigned is: 100% of EU contribution for Rio Marker 2; and 40% EU contribution for Rio Marker 1.
Specific expenses related to climate change may over-ride this value.
2)
Rio marker for mitigation: http://www.oecd.org/dataoecd/18/31/44188001.pdf
2*
Rio marker for adaptation: http://www.oecd.org/dataoecd/1/45/45303527.pdf


2(/32


'nne0 $. WBF Re,ional offices and PF support contacts


Bel,rade
Dan#o 1avrilovic 8 danko%"avrilovicAbif!ipf%eu
9oce 9apetana !.: 11;;; Bel,rade: "erbia
&el< = 3/16;711 ./ $% %$$

Pod,orica
>elj#o 9arad?ic 8 vel+ko%karadCicAbif!ipf%eu
+os#ovs#a .)ent.>)app.3$, /1 ;;; Pod,orica
&el< = 3/26;72; 23! 2@/

Pristina
'lush 1rosha 8 alush%"roshaAbif!ipf%eu
Rr. 'ndreja 1ropa Br..: 1;;;; Pristina
&el< = 3/16;73/ 2!. @%;

"arajevo
"vjetlana >u#mirovic 8 sv+etlana%vukmirovicAbif!ipf%eu
DAenetiBa -i#ma 1)$: .1;;; "arajevo
&el< = 3/.6;733 @!1 2.2

"#opje
'le#sandar Cdravev 8 aleksandar%CdravevAbif!ipf%eu
Bul<39liment Ohrids#i3 br< 21)1 1;;; "#opje
&el< = 3/@6;72 32 12 $/2

&irana
Dedina 1ji#nuri 8 ledina.,ji#nuriE*bifFipf.eu
"tr. smail Gemali: Pall. 3!)1: $th Floor: 1;;; &irana
&el< = 3$$6;7!2 2$@ %3.

Ca,reb For informatoin only% 1roatia no lon"er eli"ible for WBIF "rant support
Dario +ar#anoviB 8 dario%markanovicAbif!ipf%eu
Hlica ,rada >u#ovara 2%@1: > #at: 1;;;; Ca,reb: -roatia
&el< =3/$ 6;71 3/ !2 !33















2L/32
'nne0 % . 'dditional nformation on the WBF --W

This anne/ provides "uidelines to the beneficiaries providin" information on climate chan"e issues in
the 235F%
&he beneficiaries are re&uested to provide information on climate chan"e in to places in the 235F:
2a"e 3 1ontribution to climate chan"e miti"ation/ adaptation
2a"e * 5nne/ 1: ,li"ibility checklist

1. -ontribution to climate chan,e miti,ation) adaptation 6Pa,e 37
The beneficiaries should provide information on potential contributions of the pro+ect to climate
chan"e miti"ation/ adaptation and on potential climate risks hich can influence the pro+ect and
measures to make pro+ect climate resilient% For some pro+ects climate chan"e aspects mi"ht not be
that relevant #e%"% assistance to private sector development$% If climate chan"e aspects are not
relevant for the pro+ect this should be stated after consultin" ith the 7ead IFI%
The availability of information on climate chan"e depends on the maturity of the pro+ect:
f project is in the earl( sta,es of development #e%"% 235F asks for technical assistance for a
pre!feasibility study or a feasibility study$ information on climate chan"e aspects mi"ht not
be yet available% In such cases 235F should note that climate chan"e aspects such as:
e/pected impact on 3E3 emissions. identification of climate chan"e risks and identification
of measures to make pro+ect climate resilient ill be analysed as part of the re&uested
technical assistance%
f project is at an advanced preparation sta,e 6e%"% 235F asks for technical assistance for
construction, assistance to 2I-. capital e/penditure, interest rate subsidies or insurance
premia$ it is assumed that the pro+ect preparation studies analysed the relevant information
on climate chan"e aspects% 5 summary of key facts from the pro+ect preparation studies such
as: pro+ect e/pected impact on 3E3 emissions. identified climate chan"e risks and measures
to make pro+ect climate resilient should be stated in the 235F%
The "raph belo outlines the type of information to be provided on potential 3E3 emissions:




The folloin" check lists can assist the beneficiaries in identification of potential climate chan"e
impacts on the pro+ect:
The folloin" check lists can assist the beneficiaries in identification of potential climate chan"e
2M/32

The folloin" check lists can assist the beneficiaries in identification of potential climate chan"e


The folloin" table assists to determine if the pro+ect location is likely to be e/posed to climate
chan"e risks:
1ertain types of WBIF pro+ects mi"ht be more likely e/posed to climate risks:
The folloin" table assists to determine if the pro+ect location is likely to be e/posed to climate
chan"e risks:
1ertain types of WBIF pro+ects mi"ht be more likely e/posed to climate risks:
39/32
The folloin" table assists to determine if the pro+ect location is likely to be e/posed to climate
chan"e risks:



2. 'nne0 1< 4li,ibilit( chec#list

The lead IFI has been consulted on possible contribution of pro+ect to climate chan"e miti"ation/
adaptation and on its climate resilience #Fes/ ?o$
f Ies: please state the name of IFI and the name of person consulted
f Jo, please state the reasons hy the lead FI as not cons

Durin, the assessment phase
2K
the IFIs allocate the 4io 6arkers to the application and comment on
pro+ect's contribution to climate chan"e #miti"ation and adaptation$ aspects%
Trackin" climate finance is an obli"ation of the donors not the benefici
4io 6arkers methodolo"y developed by the H,18% The 4io 6arkers on climate indicate a donor's
policy ob+ectives in relation to each aid activity% They allo for appro/imate &uantification of aid
flos that tar"et climate ob+ectives% There are three values of 4io 6arkers to be used: 2, 1 and 9 #see
table belo for e/planation$%
4io 6arker 8escription
2 Tacklin" climate chan"e #miti"ation, adaptation$ is the principle ob+ective of
the pro+ect #it's e/plicit, prime
It is a principal reason for undertakin" this pro+ect.

2K
2a"e L of 235F for 4ound 19
'nne0 1< 4li,ibilit( chec#list
lted on possible contribution of pro+ect to climate chan"e miti"ation/
adaptation and on its climate resilience #Fes/ ?o$
please state the name of IFI and the name of person consulted
, please state the reasons hy the lead FI as not consulted
the IFIs allocate the 4io 6arkers to the application and comment on
pro+ect's contribution to climate chan"e #miti"ation and adaptation$ aspects%
Trackin" climate finance is an obli"ation of the donors not the beneficiaries% The trackin" is based on
4io 6arkers methodolo"y developed by the H,18% The 4io 6arkers on climate indicate a donor's
policy ob+ectives in relation to each aid activity% They allo for appro/imate &uantification of aid
+ectives% There are three values of 4io 6arkers to be used: 2, 1 and 9 #see
Tacklin" climate chan"e #miti"ation, adaptation$ is the principle ob+ective of
the pro+ect #it's e/plicit, prime ob+ective$.
It is a principal reason for undertakin" this pro+ect.

31/32

lted on possible contribution of pro+ect to climate chan"e miti"ation/
the IFIs allocate the 4io 6arkers to the application and comment on
aries% The trackin" is based on
4io 6arkers methodolo"y developed by the H,18% The 4io 6arkers on climate indicate a donor's
policy ob+ectives in relation to each aid activity% They allo for appro/imate &uantification of aid
+ectives% There are three values of 4io 6arkers to be used: 2, 1 and 9 #see
Tacklin" climate chan"e #miti"ation, adaptation$ is the principle ob+ective of


32/32
If pro+ect is marked as =2> 199S of the pro+ect bud"et is counted as climate
finance
1 Tacklin" climate chan"e #miti"ation, adaptation$ is a si"nificant ob+ective%
2ro+ect has other prime ob+ectives%
If pro+ect is marked as =1> )9S of pro+ect bud"et is counted as climate
finance%
9 2ro+ect does not have ob+ectives related to climate chan"e #miti"ation, adaptation$

4io 6arkers can be allocated for climate chan"e miti"ation and climate chan"e adaptation% 0ee table
belo for key concepts%
1limate chan"e
miti"ation marker
2ro+ect contributes to the ob+ective of reducin" or limitin"
"reenhouse "as #3E3$ emissions and/or stabilisation of 3E3
concentrations in the atmosphere
Typical sectors include: ater and sanitation, transport, ener"y,
a"riculture, forestry and industry.
,/amples of pro+ects include: 3E3 emission reduction in the ener"y/
transport sectors. 5pplication of ne and reneable forms of
ener"y, machinery and e&uipment. 6ethane emission reduction
throu"h aste mana"ement or sea"e treatment. Introduction of
ne technolo"ies and kno!ho that reduce 3E3 emissions #in
aste mana"ement, transport, ener"y$
1limate chan"e
adaptation marker
2ro+ect contributes to reducin" vulnerability of human or natural
systems to the impacts of climate chan"e and climate!related risks by
maintainin" or increasin" adaptive capacity and resilience%
Typical sectors include: health, ater and sanitation, a"riculture,
forestry, fishin", flood protection, disaster prevention and
preparedness.
,/amples of pro+ects include: promotin" ater conservation in areas
of hi"h ater stress. implementin" measures for flood prevention
and mana"ement #atershed mana"ement, etland restoration$,
ater savin" irri"ation methods%

The 7ead FI may propose a specific percenta"e of pro+ect bud"et hich contributes to climate chan"e
based on its on methodolo"y
2(
%
The allocation of 4io 6arkers to a specific pro+ect does not influence its scorin" or prioritisation
durin" the WBIF decision makin" process on "rant allocation% It is done to allo donors includin" the
,- to report on their commitments to climate finance%

2(
It is the case of IFIs usin" the 6ultilateral 8evelopment Banks methodolo"y #e%" ,B48, ,IB$
Connecting projects with investment funds