|
Bulgarian industries to benefit from EBRD loan to UBB
€10 million loan extension to promote energy savings
United Bulgaria Bank, Bulgaria’s third-largest, aims to build on its success
in helping the nation’s industry to become more energy efficient with the help
of another EBRD loan. The latest €10 million loan will reach out to even more
companies after an initial €15 million loan helped more than 20 private
industrial businesses cut energy waste significantly or produce energy more
efficiently.
The loans are provided under the Industrial Energy Efficiency and Renewable
Energy Framework, set up in 2004 by the EBRD together with the Kozloduy
International Decommissioning Support Fund and the Ministry of Energy and
Energy Resources through the Energy Efficiency Agency. The framework
originally comprised €50 million of EBRD financing onlent to six participating
banks, and was extended in 2006 with the EBRD making available a further €55
million. The financing is complemented by €20 million in grant funding from
the KIDSF, set up in 2000 and administered by the EBRD.
James Hyslop, EBRD Director for Bulgaria, said this loan is building on the
success of the first issued to UBB, which has helped promote the efficient use
of energy, helping to cut pollution levels through reduced carbon emissions.
Furthermore, by cutting energy wastage, businesses are saving costs,
contributing to improved competitiveness, which is crucial as Bulgaria
prepares to join the European Union.
Under the framework, participating banks such as UBB receive funds from the
EBRD that they on-lend to private-sector industrial enterprises. Businesses
use the finance to improve energy efficiency by, for example, introducing
better energy consumption, automation, control and heat recovery systems, and
promote the use of renewable energy technologies.
Successfully completed renewable energy projects receive grant funding of 20
per cent of the loan extended by the participating banks, and companies with
successfully completed energy efficiency projects receive 7.5 per cent of such
loans from the KIDSF, financed by donors, including the European Community,
Austria, Belgium, Denmark, France, Greece, Ireland, the Netherlands, Spain,
Switzerland and the United Kingdom.
The EBRD is the largest investor in Bulgaria with more than €1.3 billion
committed to projects across the country. Working with its many partners, the
Bank has mobilised more than €5.4 billion for projects in Bulgaria.
|
