Ability to see around the corners is not always a good thing. Although it gets one to places early, armed with advanced information and knowledge, it is a lonely place, as others at the time do not wish to hear, or process this information.
Today, it seems like everyone is talking about Rebuilding Ukraine, various government agencies, non-profits and private sector folks. The war still rages on, yet the “Prepare now for Rebuilding” theme is everywhere. Webinars, trade shows, talking heads, academic papers are written, new agencies and rebuilding initiatives are being established. Today’s message from the pundits is “let’s prepare, let’s start now, as it takes a long time to develop projects; it is complicated, and it is important”. For all of us at the Rebuilding Ukraine Agency, these constant posts, seminars and activities almost always put a smile on our faces, as March 24th marks a full year since the Rebuilding Ukraine Agency was officially founded with the sole mission of providing international solutions to help Ukraine recover and rebuild itself from the damages of the horrific russian aggression. A year ago, almost nobody was talking about Rebuilding Ukraine, yet a small, private sector, member-owned, international organization was created specifically to help address strategic needs of a war-ravaged country, both during and post conflict. It was created then, because all of us who founded the Agency knew that it takes a very long time, it is complicated and in order to succeed the right people would need to be selected and would have to do tremendous work. The organization, which itself has had to go from nascency to adulthood, while developing effective solutions among the chaos, political discord, bureaucracy and ongoing war, all while dealing with missile attacks on peaceful cities and Ukraine’s rapidly deteriorating economic conditions.
If one were to make a military analogy about the evolution of the Agency over the first 12 months of existence, it went from a shotgun to a high-powered sniper rifle. Its initial member and prospective member roster consisted of a buckshot of small and mid -sized firms interested in knowing more about the subject of rebuilding and charged with emotion of the early war days, when Ukraine was on CNN 24/7. Membership in 2022 was free, emotional response overwhelming and people (most of whom have never been to or worked in Ukraine) wanted to belong to the cause. As the year went on, and time came to start paying membership dues, the Agency’s membership roster shrank by about 30 percent and became laser focused. Effective management and governance were established, several projects in the areas of construction materials production, real estate and medical rehabilitation with combined value of over $100 million went into active development. Another $120+million in project financing and political risk insurance proposals are currently out for review and acceptance by the prospective investors. Active work is taking place in assisting our members to develop effective demining and unexploded ordnance removal operations for agricultural and urban environments, infrastructure and residential construction projects, new municipal heating solutions, effective PTSD rehabilitation centers and construction industry training programs. The membership bulked up, as large international companies started to join the Agency with more candidates emerging every week.
The Agency has created several strategic relationships, among which, the most notable were cooperation with the Rebuilding Ukraine Association (501C3 non-profit on industry education initiatives, signed MOUs with the Confederation of Ukrainian Builders and with the Mayors’ Club. The Agency provided humanitarian assistance to a birthing hospital in Nizhin (although much more needs to be done there and our efforts fell short of targets). We conducted free financing master classes to over 20 Ukrainian municipalities and announced another series of training sessions to help them improve their economic development activities and increase their attractiveness to international investors. Earlier this month, the Agency announced that its Board Member Dr. Anzola, who is renowned for training multiple Export Credit Agencies (ECAs) around the world, will offer a pro bono training course to Ukraine’s official Export Credit Agency. One of our members – a director of a large, global architectural firm has with the Agency’s support, led her firm to set up a pro bono effort to help modernize the city of Irpin in accordance with the latest energy efficiency and smart city standards. The Agency’s participation at the REbuild Ukraine event in Warsaw in February was a smashing success. The Warsaw event provided updated clarity of the current situation and allowed the Agency to plot new directions towards expansion of its membership roster, economic development assistance for Ukrainian cities and municipalities and development of new funding sources. Our community following the Agency on social media organically grew to over 1,500 followers.
I sincerely want to thank everyone who over the last year has contributed to the Agency’s success and development. Special thanks go to all the Board Members, our Corporate Officers, supporting professionals and Advisors. Thanks to the representatives of the US and Ukrainian Governments, as well as IFIs for all your help and support. Special thanks to our friends at the US-Ukraine Business Council and to all of you who followed our progress, read our materials and offered to help Ukraine in this difficult time. Thank You!
So where do we go from here? To find out you will need to read our upcoming posts and continue to follow us, as we remain steadfast in our commitment to help Ukraine Win this war and Rebuild! Slava Ukraini!
Eleven months of constant work on the subject of Rebuilding Ukraine (both during and after the war); eleven months of preparation; of running two daily Telegram channels and reading countless articles on subject; watching videos and listening to podcasts by renowned, well-educated experts and politicians; daily conversations with friends and business associates who live in Ukraine and multiple in person and Zoom meetings with US and UA government officials, IFI representatives, mayors of over forty Ukrainian cities and dozens of corporate representatives.
Over these eleven months, a constant barrage of information and PR promotion from think tanks, government investment agencies, IFIs and reporters. Months of reading about emerging and repeating themes of using confiscated russian assets to rebuild Ukraine, countless high-level meetings with renowned global financial institutions, most of whom have never been in Ukraine before, on how to manage expected billions of dollars expected to flow to the country after the war. Endless talks about need for insurance, insurance and insurance, direct foreign investment and grants, grants and more grants. All these subjects and issues and information flows were part of our daily lives at the Rebuilding Ukraine Agency since the day of its official founding March 24th, 2022! Then, three days in Warsaw, being a key part of the REbuild Ukraine conference and exposition changed it all. Speaking and listening to hundreds of attendees (6,000 attended), tens of exhibitors (254 companies were present) and multiple representatives of the government agencies from at least dozen countries (there were over twenty in attendance) certain things became crystal clear.
Despite what the title of this article says, not all of the folks involved in the subject of Rebuilding Ukraine have it wrong, and many solutions, activities and plans offered are very good, needed and may one day have a shot at being implemented. The problem is not the plans and ideas and available insurance or financing programs. The problem is DISCORD of all the parties involved. There is a very famous 1814 fable by Krylov called Lebed’, Rak i Shuka (Swan, Crayfish and a Pike) (Yes, I know Krylov was russian and no, I will not accept criticism of activists for using this reference here, as it absolutely perfectly illustrates what is going on with respect to the subject of Rebuilding Ukraine). The gist of the fable is that when asked to pull a cart together, the swan, the crayfish and the pike would have easily succeeded had they worked together in unison, yet they failed miserably because the swan was pulling up wanting to fly, crayfish crawled backwards, and the pike was pulling the cart toward the river. With this type of effort, the cart of course remained in place.
The same situation is taking place now with respect to Ukraine. Multiple stakeholders, each with their own self-interest, are pulling the proverbial cart in different directions, while Ukraine remains in one place, all while being raped, tortured and pillaged by the aggressor. This is unacceptable and will not work effectively when the time comes to rebuild the country. Add to that graft and corruption, which exists both in Ukraine and in practically all Western countries, inexperience of many new entrants, protectionism and squatting within Ukraine and the recipe for a failure is almost complete. Below are but just a few factors, which have developed during the war, and which contribute to the discord. Rebuilding Ukraine’s process today is like a star-studded symphony orchestra without a conductor.
War effect – this terrible war has affected the lives of tens of millions of people, severely damaged Ukrainian economy and infrastructure, necessitated new skills and knowledge from multiple local participants, and completely upended the traditional means of municipal financing, affected urban development, reconfigured construction supply markets, impacted labor availability, economic development and this is just scratching the surface.
Federal vs municipal – Ukraine’s Federal Government has done a very credible job dealing with the war effort, repairing some infrastructure and planning for the post war recovery. The situation at the regional and local levels has not been quite as smooth and uniform. The fact that the local authorities were left largely to fend for themselves did not help. Most Regional and local entities do not have significant experience dealing with the western businesses and attracting international financing.
Famous vs forgotten – although there are over one thousand cities, towns, municipalities and villages, some like Bucha, Irpin, Bakhmut, Mariupol, Kharkiv, Zaporizh’e Kherson, Mykolaiv, Dnipro and Odesa became very well known as result of the devastating war and their suffering. This “fame” attracted disproportionate attention from the international community and a disproportionate desire to help rebuild these particular locales. Yet hundreds of other municipalities, some located practically next door to the aforementioned, have also suffered just as badly. What about them? How do they cope not only with the effects of war, but with being dealt a less fortunate hand in the rebuilding process?
PR effect – PR on all levels has been one of the most effective tools during this horrible war. From the national level PR of the President speaking to the parliaments, governments and international financial institutions, to more localized investment promotion agencies, municipalities, countless NGOs, YouTube bloggers and commercial entities constantly appearing in social media and at various international events, PR has made Ukraine the leading global brand and the most attractive destination for rebuilding. This phenomenon has attracted a great many players who have never before done business in Ukraine, or even visited the county.
Award of patronage – many countries, NGOS, individuals and businesses spent the last year helping Ukraine in its war efforts. Countless tons of military equipment, medical supplies, food, clothing and much more were delivered to Ukraine. As the result, the President of Ukraine awarded to some countries priority patronage over rebuilding certain cities. The basis for such awards were unclear, the countries selected were very few and this process did not appear to help the remaining municipalities in Ukraine.
Foreign entrants – It is estimated that businesses, NGOs and governments from about fifty countries are interested to participate in helping Ukraine win the war and to take place in the subsequent rebuilding process. Almost every country has one or more government agencies charged with supporting exports and investments for the businesses from that country. These agencies are very useful in helping their constituents enter multiple foreign markets but could become much more effective if they become a part of the Ukraine-focused international initiative, one that is capable of delivering to their clients the so called “last mile” connectivity with the Ukrainian federal, regional, local and commercial markets and can help them to better understand Ukrainian processes, needs and the local culture.
Foreign money and insurance – from the start of the war, many Ukrainian and international participants (including our own Agency) began to focus on bringing new investment projects and understanding the tools available for financing and insurance in Ukraine today and once the hot phase of the war ends. While FDI, debt financing and Political Risk Insurance (PRI), war insurance, export credit and breach of contract coverages, along with similar instruments are very important, it should be the proverbial number 175 on the list of priorities to rebuild Ukraine. The Rebuilding Ukraine Agency has an extremely deep and capable multi-country team to develop, finance and insure complex projects. We closely work with both government, private and capital market funding, and insurance sources in over 20 countries. Our members have successfully completed large and very complex financing in Ukraine over 27 years. What we see now is a very unorganized and poorly prepared market with a dearth of well-developed projects, deteriorating credit quality, unwillingness of many Western funders and local investors to participate and precious few selected projects ready for the financing/insurance applications submissions. The recipe for fixing this critically important issue will be a subject to a separate post.
Regional vs regional – Lviv region vs Zakorpatye vs Volyn, vs Chernihiv vs Odesa vs Kherson along with the other eighteen regions they all compete. They compete for economic development, for domestic and foreign investment, for more inhabitants, for more resources. During peaceful times, this type of competition is absolutely healthy and normal and should be left alone. Yet these are not peaceful times and the resources for which regions compete are foreign as well as domestic. The demographics are changing with manufacturing capacity and populations moving West or leaving the country completely. It is vital for the new market entrants to understand the effects of these changes in making their investment and financing decisions. It is also vital for the Regional and local authorities to understand the evolving situation and develop plans to make their regions more attractive for economic development, which are based on the new realities.
Local vs local – cities, towns, hromadas and villages – face much the same issues as the regions, but their woes are amplified. There are many of them, they greatly vary in size, economic advantages, location and population. Their credit quality is largely non-existent, or not sufficient to obtain any type of financing, other than from the Ukrainian Federal government, local taxes or utility fees. They education as to what is needed to attract Western counterparties is often below par and the local corruption is often high. All these sources are far from sufficient to help these cities and towns rebuild and jumpstart their economic activities post-war. For the last eleven months their issues have been largely ignored and this needs to change.
Shifting demographics, declining population, PTSD – by various estimates, about ten million people were displaced as the result of the war, about 4.7 million were forced to leave the country, and it is safe to predict that most of the 40 million Ukrainians will suffer the effects of PTSD. Thus, developing a coordinated plan to help welcome those refugees who will be coming back, replace those labor market participants who will not return and set up effective rehabilitation programs for those suffering from PTSD will be vital and will require strong coordination.
Reconciling Ukraine 5.0 with damaged pipes, schools and hospitals today – The mandate of the Ukraine’s government and its lawmakers, which is echoed by a number of private and NGO players, is to rebuild Ukraine better. Smart cities, energy efficient construction, new urban planning and other state-of-the-art features. But Ukraine is badly damaged, not destroyed. Thus, how to reconcile the planning of building an entirely new ultra-modern, energy efficient smart City, of which only maybe 20 percent has been damaged and for which the City administration desperately needs funds to repair broken pipes, streets, schools and kindergarten facilities today!!!! Do it piecemeal and you end up with a quilt patch of mediocre, and there is certainly no funding to do it all at once. Again, strong multiparty coordination is needed.
The Warsaw conference clearly showed the proper unique positioning and the leadership role of the Rebuilding Ukraine Agency. During the conference we have been approached by multiple European Governments and Government agencies, seeking to cooperate with the Agency and for us to assist their constituent businesses. The Agency has also conducted significant discussions with the private sector companies and with multiple Ukrainian municipalities. Current situation calls for completely different tactics. Investment projects and market entrance by the players new to Ukraine have to be curated and carefully developed. The Investment Promotion agencies, while useful, have no depth and expertise needed to see the projects through to their financing and completion. Over the next several months the Agency will significantly broaden its scope and membership roster. Stay tuned!
After two action-packed days, the basic thesis of the Rebuild Ukraine event may be summed up as follows: Private business looking to get into Ukraine and Ukrainian business looking for the western business expertise and financing, should be supported by their respective governments, IFIS and NGOs, but led into action by an international, experienced privately managed economic development organization, which has experience, cross-cultural awareness, stature and independence to act. This organization needs to be comfortable in talking to all Ukrainian and external stakeholders, as it will be a key interface between helping Ukraine get ready for Western investment, lending, insurance, supply and training. Support from international government investment promotion agencies is absolutely vital as is the support from the Ukrainian side on all levels. The analogy I often like to use is that of a major port where large passenger, cargo and at times military ships, come in and each one of them is big and mighty. Yet, in order for the port to operate successfully, small, agile tugboats are needed to coordinate all these large ships. Thus, either as the conductor of a large multinational Rebuilding symphony orchestra, or as the tugboat of the port of call named UKRAINE it is indisputable that Ukraine needs an experienced independent, multinational economic development organization to coordinate the massive rebuilding effort for the western players seeking to help the country. For the last eleven months, the members of the Rebuilding Ukraine Agency have been working on developing innovative training programs, financing solutions and economic development techniques applicable to the new realities of Ukraine. If your organization is interested in helping Ukraine rebuild efficiently and with the maximum benefit, please consider joining our Agency. Our team, and our esteemed members have the technical, legal, cross-cultural and financial tools required to deliver an orderly process where the resources are used strategically and the rebuilding process involving western companies, governments and financial institutions will have the maximum effect for every Hryvna, Dollar, Euro, Pound or Zloty spent.
February 15th and 16th were quite simply two of the busiest and most productive days when it came to tackling the subject of Rebuilding Ukraine. It was the first time since the start of the horrific invasion, that businesses and governments of over twenty countries came together and met with representatives of the Ukrainian Government, as well as the leaders of hundreds of Ukrainian cities and municipalities to explore ways to in which Ukraine’s economic growth can be jump-started, its infrastructure restored, and the country’s population can rehabilitate itself from the effects of this devastating war.
The Rebuild Ukraine Warsaw turned out to be a smashing success. Bravo to the organizers and bravo to the attendees for being patient braving the long lines to get in, for attending the various Forum panels and being engaged for hours, for walking miles of isles of the convention center and patiently waiting to speak with various exhibiting companies, whose representative were busy practically from the opening moment of Day One, through the closing moments of Day Two.
The Rebuilding Ukraine Agency’s 400 square meter exhibit booth was one of the busiest spots of the entire event. Over 500 attendees from over 15 countries stopped by and engaged with our Agency’s twenty-five members, who were present at the event. Government representatives and Economic Development organizations from the US, Ukraine, Poland, Denmark, Germany, Lithuania, Latvia and Czech Republic stopped by and discussed ways to cooperate with our Agency.
My colleagues and I participated in a Forum panel and conducted a Master Class on economic rejuvenation of Ukrainian cities and municipalities, including those, which are still occupied, or are located near the enemy’s border. An agreement has been reached to continue the dialog between the Agency and various municipalities to help them lay the groundwork for becoming moattractive for foreign investment and financing.
A multiparty, three-country Memorandum was signed at the Rebuilding Ukraine Agency’s to support the education initiative spearheaded by our sister Rebuilding Ukraine Association (a 501c3 non-profit).
Together with the Mayors’ Club our Agency co-hosted an invitation only reception and dinner at the famous Ukrainian-Polish restaurant. The food, drinks and a piano performance by a fourteen-year-old protégé were absolutely delightful.
At the conclusion of the two-day event marathon, the exhausted participants have begun making plans for attending the next REbuild Ukraine event in November of 2023. The following pictures will provide, but a small sample of the activity, the spirit and the emotion of this fantastic event. Our sincere thanks to everyone who participated, who attended and who made this event possible. Warsaw, until we meet again. Thank you Poland and Slava Ukraini!!
Only one day to go till the start of the BIG event. Excitement is in the in Warsaw, the hotel lobby is buzzing with the pre-Forum activities. Groups of business folks are everywhere. For our team this is the day to set up the stand, finish gathering up all the arriving team members and hold a few key pre-Forum meetings.
The team from the ECC Corp, – the Agency’s largest member – set the tone for the day and rolled out their wares to be taken to the exposition center.
They were joined by the Agency’s own Sergei Glazunov, our steadfast CEO, Frencisco Anzola, our Board Member and Controller/ our own resident computer wiz, Kseniya Belinska, the Agency’s amazing super-mom VP, without whom our participation in this event would be impossible. Yours truly, along with the Agency’s member Edward Vays of the Berehove Springs project were the remaining members of the set-up group. In addition to the promotional and information materials, Mr. Vays brought with him the world-famous Ukrainian flag, which was displayed by him and his US friends during the USA-Iran football game at the FIFA World Cup in Quatar. The photographs of this group holding the flag made front pages of global newspapers
The entire exhibit hall was bustling and with exhibitors from various countries and Ukrainian cities working hard to complete the set-up, in time for Wednesday’s opening. Thanks to the well-timed help from the organizers of the event, our team made all the last-minute adjustments and completed the set up in a couple of hours. We even managed to get a special table for the ECC’s espresso machine, which will allow all the visitors to the Rebuilding Ukraine Agency’s stand to take the load off and enjoy a freshly brewed cup of coffee, as they move through the vast hall.
When we got back to the hotel, we greeted the remainder of our arriving delegates from Depsol and MI Group. The rest of the day was spent in meetings (Francisco and Sergei’s faces reflect the focus and the intensity) and preparations for Wednesday’s and Thursday packed schedules. Stay tuned for tomorrow’s update on the launch of this marquee event.
First from our group to arrive to Warsaw for the big event was Thomas Lang, head of the Rebuilding Ukraine Association (the 501c3 non-profit spearheading the REUNITE education initiative to help train Ukrainian construction industry professionals and seeking to sign a multiparty memorandum at the event) He is also working to assist a Ukrainian project sponsor on developing a construction block production facility in Ukraine.
The incomparable Thomas Lang
After Thomas, our own Edward Vays made his way to Warsaw. Edward is the Principal Owner and Developer of a unique Berehove Springs Thermal Rehabilitation Project. Due to its unique location and access to healing mineral water, which comes from1.3 km deep well drilled by Edward’s company, the Berehove Springs project aims to become the leading PTSD veteran and family rehabilitation center in Ukraine. Soon after his arrival, Edward found himself engaged into intense discussions with the Rebuilding Ukraine Agency’s Board Member Aleksandr Stefansky, who arrived in the afternoon loaded with a 70lb bag of Agency’s presentation materials.
Aleksandr Stefansky, Rebuilding Ukraine Agency Board Member and Construction Committee Co-Head
Edward Vays, Principal Owner, Berehove Springs Thermal Rehabilitation Center and Wellness Community project
Others, including yours truly, continued to arrive and their stories and the story of the Rebuild Ukraine event will unfold over the next few days. Symbolically, Warsaw met the visitors with grey and dingy weather, which reflected the somber mood over the current situation in Ukraine. Yet, after walking around in the Old Town, one could see splashes of color and lights, which to me symbolized the hope and the bright future events like Rebuild Ukraine will bring after the war to this long-suffering country.
On a housekeeping note. All my photographs from the Rebuild Ukraine event will be put into a separate album, the link to which will be available in the last post covering this trip.
It is Sunday February 12th. I awoke to the news of more russian missiles falling on Kharkiv and on other Ukrainian cities, more news on the devastating earthquake in Turkey, US shooting down a third! flying object in a week, as the country prepares for today’s Superbowl. Yet amidst the ongoing wars, diplomatic conflicts and natural disasters, an important event will be taking place this coming week in Warsaw, Poland. It will be focused on the bright future of beautiful, resilient, war-torn Ukraine. Over the next week, I will attempt to document this event from the insider’s perspective. I will try to post daily, but given the schedule ahead, it may not be feasible. So please bear with me over the few days and I hope you find these diaries interesting and helpful.
As I write this, thousands of men and women from over twenty countries have begun to make their way to Warsaw for the Rebuild Ukraine Forum and Conference. This event is laser-focused solely on construction segments and will cover significant topics such as demining and handling of unexploded ordnance during the rebuilding, infrastructure restoration, construction material recycling, increasing Ukraine’s capacity to produce and supply vital construction materials such as insulation, plate glass, precast concrete, as well as developing real-estate projects, which will address Ukraine’s new realities such as shifting demographics and the need to restore and rehabilitate post-war the physical and mental health of the nation. The event will also be focused on how to finance, insure and develop projects, which will help Ukraine rebuild.
Unlike other political, macroeconomic, and academic events dedicated to the subject of the Rebuilding Ukraine, the Warsaw conference and exhibit is driven by the private business – the infantry of the recovery process. This is very important, as these folks vote with their own dollar, euro zloty or hryvna and are the first to go in and engage. What is even more important, is the fact that this event will facilitate a direct dialogue between the Ukrainian Government, multiple Ukrainian regions and municipalities and is expected to act as a starting point for several viable investment, construction and recovery projects.
After four months of preparation for the event, our own Rebuilding Ukraine Agency will be well-represented. Our delegation of 25 men and women will consist of the several Agency’s Board Members, the Agency’s CEO, Vice President and representatives of several Agency-member companies who will be showcasing their projects and capabilities. Although our Rebuilding Ukraine Agency is US-based and will be unofficially representing the United States at the event (other countries are having government-sponsored pavilions), the Agency is international in nature, and our Warsaw delegation will have members from six countries at the exhibit pavilion. Even though the event has not yet started, our Group’s meeting calendars are already well-booked, with meetings starting two days before the actual February 15th and 16th conference dates. Our Agency has been one of the co-organizers of the Rebirth of Nation panel and I will be speaking there on the financing and insurance opportunities available to foreign and local investors. Our Agency team is putting final touches on a Master Class for Ukrainian municipalities on how to develop and package projects for investment and financing by the international community.
So today, t-3 days until the official events kickoff, is the travel day for most of us. Overnight flights on LOT and Delta from the US, car and train rides from Ukraine, Italy, Germany and Croatia. Presentations and marketing materials are being delivered from Kyiv, where they were printed, despite drone attacks and power outages. As the self-appointed photographer for the Agency i will be chronicling the conference and activities taking place at our Agency’s pavilion. My luggage contains over 25 pounds of photographic equipment, including multiple lenses. Given the gravity of the events taking place in Ukraine, as this conference will be taking place, I am thinking of shooting the entire reportage in black and white. Have not yet made up my mind on this though.
Special thanks to everyone who has been involved in the preparation for this significant event. Our wonderful video and presentation designers, along with our terrific CEO and VP, members who supported the exposition, exhibit organizers and Board members who volunteered their time to make sure that the Agency is well-prepared not only for this event, but to help Ukraine, as it gets ready to REbuild itself after this devastating war. Stay tuned for additional coverage of the Warsaw conference in the upcoming issues.
It has been eight long and painful months watching Ukraine and its brave people fight and suffer during the brutal war brought on by its neighboring “broZer”. During seven of those months, Rebuilding Ukraine Agency had its own complex journey riddled with victories, potholes and disappointments.
Formed a month after the war, our member-owned international rapid deployment Agency has one clear mission – help Ukraine rebuild by bringing together likeminded US, UK, European and Ukrainian companies, along with international capital and risk management solutions.
The Agency is organized along several key industry segments – construction/real estate, energy, agriculture, and healthcare. Approximately fifty members strong today, the Agency’s members represent a broad array of companies. From single-person professional practices, to very large architectural, engineering, agricultural and energy firms. As the world’s governments and major financial institutions have been working with Ukraine to develop recovery and rebuilding mechanisms, the Agency quietly took a lead in creating a “closed cycle approach” of developing, financing and insuring projects using its broad toolbox of financing and insurance mechanisms, coupled with building of multidisciplinary teams capable to address the project needs at each stage. Current projects in the Agency pipeline range from development and financing of the state-of-the-art insulation production facility, development of a precast concrete production facility, development of a wellness/rehabilitation center and housing subdivision, to co-financing of a nuclear reactor and of alternative energy powered powerplant facilities.
Despite of the uneven support from the various government agencies and from the international financial institutions on both sides of the pond, the Agency’s Board and staff have persevered and have been moving forward with the laser focus. Rebuilding Ukraine is a rapid deployment agency and that ability to quickly decide, mobilize and act has thus far served as an unbeatable advantage. The Agency entered into several key alliance with established organizations, both in Ukraine and in the US, and through regular roundtables and social media channels has been in the forefront of curating the “Rebuilding Ukraine” topic to a broad audience in several countries. The Agency’s invitation-only Telegram Channel 1 has been critically acclaimed and has become the go to place on the subject.
However, Rebuilding Ukraine journey has not been without its challenges. At the time the Agency was formed, the pro-Ukrainian sentiment was very high worldwide, the war was in the headlines and the world’s outpouring of humanitarian and emotional support has been tremendous. A number of members who joined the Agency at that time have joined guided largely by emotion and having no clear understanding of how they may benefit Ukraine’s rebuilding. When it became apparent that the war will not end quickly and the Agency’s strategy would need to be revised for the long-term, the Agency experienced an attrition of about ten percent of its members.
Another significant obstacle has been investor/donor fatigue, which has developed across the entire “Ukraine” space and the Agency’s capital raising efforts have been impacted by this. As the economic situation in Ukraine deteriorated and bombings escalated, it has become increasingly difficult to develop bankable projects and to even keep up certain meeting schedules due to electricity blackouts, facilities of Agency’s clients being attacked and forced air raid evacuations.
Since the entire Agency staff, Board members and supporting professionals have been volunteering their time, sometimes their “day jobs” took priority and certain Agency initiatives did not unfold as quickly as desired.
When, in March, the Rebuild Ukraine Agency started delivering the message of Private Sector being the key driver in the Rebuilding of Ukraine process, the media and various forum spaces were dominated by theorists and pundits who would put out opinions on how to Rebuild Ukraine without any practical basis. As the time passed, multiple relevant parties understood the importance of the Rebuilding Ukraine with the private sector and started to piggyback on the Agency’s message. I guess imitation is the sincerest from of flattery.
Based on the analysis of the problems, obstacles and successes, the Agency’s Board and Officers have working on putting together a strategic plan, which would allow the Agency to maintain its leading position in the Rebuilding Ukraine space, expand its financing toolbox with equity and possibly NFT offerings, transition its key staff away from the volunteering role, develop cost-effective due diligence and compliance procedures and grow its membership roster to 100 members in 2023.
The Agency is planning a major in-person event in the middle of February in Poland to participate in the Rebuild Ukraine conference and exhibit being organized to accelerate the rebuilding process and we expect 2023 to be the year this horrific war finally ends and the recovery and rebuilding of Ukraine will start in earnest with the Rebuilding Ukraine Agency leading the way for its members.
Washington, DC, May 14, 2019 — The World Affairs Councils of America (WACA) is pleased to announce that Broad Street Capital Group (www.broadstreetcap.com) has joined WACA as a National Affiliate Member, sponsor of the WACA National Conference, and member of its prestigious 1918 Society.
Broad Street’s expertise in advising on foreign direct investment (FDI) strategies in emerging and frontier market countries and WACA’s ability to convene foreign government leaders and influential audiences through its extensive network of more than 90 World Affairs Councils across the United States will provide a powerful platform for U.S. companies targeting investment opportunities and seeking policy and regulatory knowledge in these markets.
Broad Street will tap the WACA platform to conduct a national tour to educate potential U.S. investors on available U.S. Government financing options, as well as political and trade risk mitigation tools. WACA will assist Broad Street in organizing bilateral trade missions and curated foreign policy tours to highlight economic advantages of the target markets and to facilitate trade and investment opportunities.
“It is an honor and a privilege to become WACA’s newest National Member,” said Alexander Gordin, co-founder and Managing Director of the Broad Street Capital Group. “My colleagues and I look forward to helping this prestigious 100-year old national organization to grow into the next century of its existence. Foreign direct investment is an essential part of sound foreign policy for any nation and having such an esteemed partnership with the WACA network’s convening power on this issue, would definitely bring significant measurable results.”
“WACA is delighted to collaborate with Broad Street and we look forward to inviting leading investors and representatives of foreign investment agencies as guests of the Broad Street Capital Group at WACA’s 2019 National Conference in Washington, DC,” said Bill Clifford, President and CEO of the World Affairs Councils of America.
Scheduled for November 6-8 at the Mayflower Hotel in DC, the WACA Conference will feature more than 50 leaders and policy experts on the theme: “The 8 Forces Reshaping the Global Economy.”
About the Broad Street Capital Group
Based in the heart of New York City’s Financial District, Broad Street Capital Group (www.broadstreetcapital.com) is an international private merchant bank, which since 1988 has served several foreign governments, multiple state-owned companies, as well as SMEs in emerging markets. Through its member companies, the Group focuses on developing project financing in the $100 million to $1 billion range, providing political risk mitigation, export management services and cross-border market development advisory. The Firm maintains a permanent presence in London, Budapest, Kyiv, Tashkent, and Astana, . Since its founding, Broad Street Capital Group has done business in over 35 countries, spanning the emerging markets landscape from Bangladesh to Ukraine.
The Firm works closely with all trade and development agencies of the U.S. Government and Export Credit Agencies of several European and North American countries. Since its inception, Broad Street Capital Group has been involved in multiple high-profile cross-border transactions in IT/telecom, aerospace, health care, energy generation, food security, nuclear safety, hospitality and franchising sectors. The firm’s current advisory and export management portfolio exceeds $900 million.
About the World Affairs Councils of America
The World Affairs Councils of America (www.worldaffairscouncils.org) is an independent, nonpartisan organization dedicated to engaging the public and leading global voices to better understand the world, America’s international role, and the policy choices that impact our daily lives and our future. WACA carries out its mission by:
Supporting more than 90 World Affairs Councils across the United States and promoting programs and educational initiatives for diverse local audiences – from classrooms to C-suites, from town-hall style community forums to conferences in the nation’s capital.
Developing Councils’ convening power nationwide by providing face-to-face connections and dialogue with global leaders, business executives, policy and trade experts, social innovators, and distinguished opinion makers.
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How to successfully develop and finance more quality projects in emerging markets? (Part 1)
Problem:
Last week, at a financing round-table organized by the US-Ukraine Business Council (USUBC) – representatives from the IFC, EBRD, OPIC and US EXIM bank reaffirmed their commitment to financing projects and trade with Ukraine. They also demonstrated a whole host of very effective financing and insurance tools, available for use in Ukraine and other emerging markets.
At the same event, these esteemed organizations mentioned multiple success stories and yet each only named half a dozen, or so, of the largest Ukrainian companies (a few were the same names repeated by several institutions). They also addressed fairly effective wholesale funding arrangements with local banks to serve local small and midsize businesses (SMEs).
Yet, each of representatives has acknowledged a serious problem, which acutely manifests itself in Ukraine and in other emerging markets: lack of strong bankable projects in the $10-75 mil. range, a segment widely considered the main economic driver and job generator in emerging market countries such as Ukraine.
Also noted were lack well-developed and bankable public sector projects in segments such as healthcare.
Thus given widespread availability of interested project sponsors, along with multiple public financing tools and risk mitigation products, what can be done to bridge the gap and convert more deal concepts into real deals with realistic financing and true economic impact?
Solution:
It is all about proper packaging. Although the institutions are willing and able to lend, they each have very specific goals and requirements. Yet, the project sponsors/borrowers, oftentimes are not able to conform to those requirements, despite the fact that their financials and business plans are often sound. (To Be Continued)
International Project and Trade Financing
international Merchant Bankers providing Project and Export Finance services to private enterprises and government-owned companies
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Alexander Gordin
Valerie Antoinette
Fluent In Foreign Business 