Page  1
Document of
 
The World Bank 
 
Report No:  
 
RESTRUCTURING PAPER 
 
ON A 
 
PROPOSED PROJECT RESTRUCTURING  
OF  
SWISS SECO FOR SOUTHEAST AND CENTRAL EUROPE  
CATASTROPHE RISK INSURANCE FACILITY 
TRUST FUND (TF095647) 
November 25, 2009 
 
TO 
 
(EUROPA RE) 
 
January 3, 2011 
 
59158 
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2
ABBREVIATIONS AND ACRONYMS 
 
Europa Re 
Europa Reinsurance Facility Limited 
SECO 
Swiss State Secretariat for Economic Affairs 
 
Regional Vice President:
Philippe Le Houerou 
Country Director:
Jane Armitage 
Sector Manager / Director:
Wael Zakout / Peter Thomson 
Task Team Leader:
Alison Cave 
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EUROPE AND CENTRAL ASIA
 
SWISS SECO FOR SOUTHEAST AND CENTRAL EUROPE CATASTROPHE RISK 
INSURANCE FACILITY TRUST FUND (TF095647)
 
P099895 
CONTENTS 
 
Page 
A.
 
SUMMARY................................................................................................................4
 
B.
 
PROJECT STATUS..................................................................................................4
 
C.
 
PROPOSED CHANGES..........................................................................................5
 
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4
Restructuring 
Restructuring Type: Level two 
Last modified on date : 12/22/2010 
1.  Basic Information 
Project ID & Name 
P117069 Southeast and Central Europe TA for 
Catastrophe Risk Insurance Facility SECO 
(TF095647) 
Country 
Europe and Central Asia 
Task Team Leader 
Alison Cave 
Sector Manager/Director 
Wael Zakout 
Country Director 
Jane Armitage 
Original Approval Date 
11/25/2009 
Original Closing Date: 
03/31/2013 
Current Closing Date 
03/31/2013 
Proposed Closing Date [if applicable] 
02/28/2015 
EA Category 
 
Revised EA Category 
 
EA Completion Date 
 
Revised EA Completion Date 
 
2.  Revised Financing Plan (US$m)
 
Source 
Original 
Revised 
BORR  
 
IBRD  
 
SECO 2.327 
4.231
Total
 
2.327 4.231
3.  Borrower 
Organization 
Department 
Location 
4.   Implementing Agency
 
Organization 
Department 
Location 
Europa Reinsurance Facility 
Limited (Europa Re) 
 Switzerland 
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5
5.   Disbursement Estimates (US$m) 
Actual amount disbursed as of 12/22/2010
Fiscal Year 
Annual 
Cumulative 
2011 0.00 
0.200
Total
 
0.200
6.   Policy Exceptions and Safeguard Policies 
Does the restructured project require any exceptions to Bank policies? 
N
Does the restructured projects trigger any new safeguard policies? If yes, please 
select from the checklist below and update ISDS accordingly before submitting 
the package. 
N
7a.  Project Development Objectives/Outcomes 
Original/Current Project Development Objectives/Outcomes 
The objective of the Trust Fund is to help provide a better mechanism for dealing with 
catastrophic risks in the Southeast and Central Europe region by supporting the establishment of 
the Catastrophe Risk Insurance Facility (CRIF), which will aim at increasing the number of 
individuals and small and medium enterprises insured by the private insurance market for 
catastrophic risks in said region.   
7b.  Revised Project Development Objectives/Outcomes
 
[if applicable]
 
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EUROPE AND CENTRAL ASIA
 
SWISS SECO FOR SOUTHEAST AND CENTRAL EUROPE CATASTROPHE RISK 
INSURANCE FACILITY TRUST FUND (TF095647) 
 
RESTRUCTURING PAPER 
SUMMARY 
 
The proposed changes are required due to supplemental contribution by the donor (SECO 
–
the Swiss State Secretariat for Economic Affairs) resulting in available financing for 
additional technical activities for the recipient (Europa Re – Europa Reinsurance Facility 
Limited).  The additional technical preparatory work is required for the launch of 
innovative catastrophe insurance products in the four countries of Southeast Europe 
(Serbia, Macedonia, Albania, Bosnia and Herzegovina) currently covered by the grant –
which may include Montenegro at a later stage.  The main elements of this work include 
development of risk models for weather-related hazards, regulatory work in support of 
new products, and acquisition of weather data and weather stations.  The amendments to 
the Grant Agreement primarily address the changes in the trust fund amount, the added 
activities and related procurement changes, as well as an extension of the closing date to 
February 28, 2015 so as to allow the completion of the additional activities. 
 
PROJECT STATUS 
 
The objective of the Trust Fund is to help provide a better mechanism for dealing with 
catastrophic risks in the Southeast and Central Europe region by supporting the 
establishment of the Catastrophe Risk Insurance Facility (CRIF), which will aim at 
increasing the number of individuals and small and medium enterprises insured by the 
private insurance market for catastrophic risks in said region.  The Trust Fund (originally 
amounting to US$2.3 million) is financing costs related to the establishment and 
operation of the Facility (Europa Reinsurance Facility Limited, project implementation 
entity and recipient) which includes (i) country-risk assessments; (ii) development of 
pricing, underwriting and financial risk-management tools for the Facility, including the 
establishment of a web-based underwriting platform; (iii) compensation for the Board 
members, the executive assistant and the Chairman of the Recipient’s board of directors, 
compensation for the Recipient’s Chief Financial Officer and the carrying out of audits of 
the Recipient. 
 
The Grant Agreement, dated November 25, 2009 and countersigned on December 8, 
2009, was made effective on March 1, 2010.  Disbursement is currently at about 9% 
reflecting the initial disbursement of US$200,000.  Procurement is underway for the data 
collection and risk modeling, as well as the web-based underwriting and pricing platform.  
As the first audit report is due by June 2011, there are currently no outstanding audits. 
 
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A
Bank-financed Southeast Europe and Caucasus Catastrophe Risk Insurance Facility 
Project (P110910) is currently under preparation which will support membership of 
countries in Europa Re, and is scheduled to be presented to the Board in February 2011.   
 
PROPOSED CHANGES  
 
·
Components 
The supplemental funds (US$1.9 million) will finance additional technical 
preparatory work required for the launch of innovative catastrophe insurance 
products in four countries of Southeast Europe. The main elements of this work 
include development of risk models for weather-related hazards, regulatory work in 
support of new products, and acquisition of weather data and weather stations.   
 
·
Financing 
o
Project Costs  
 
Project Costs (US$m.) 
Components/Activities Current 
Proposed 
 
1. Compensation of board directors and board 
0.560 
0.586 
2. Country risk assessment 
0.470 
0.470 
3. Web-based underwriting system 
1.117 
1.110 
4. Audits 
0.170 
0.170 
5. Training 
0.010 
0.025 
6. Technical services 
 
1.070 
7. Weather stations and supporting services 
 
0.800 
Total 
2.327
 
4.231
o
Financing Plan.
 
The original contribution by the donor (SECO 
–
the 
Swiss State Secretariat for Economic Affairs) to the recipient was US$2.3 
million.  Together with the supplemental funds of US$1.9 million, the 
revised financing amount will be around US$4.2 million.
 
·
Procurement 
As the supplemental funds will support the acquisition of weather stations, the 
grant agreement will be amended to reflect the procurement of goods.   
 
·
Closing date  
The current closing date is March 31, 2013.  An extension of the closing date to 
February 28, 2015 is proposed so as to allow the completion of the additional 
activities.