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EBRD launches energy efficiency framework for Slovak Republic
Private sector loans to encourage better utilisation of resources
The EBRD is launching an energy efficiency framework worth up to EUR60 million for the Slovak Republic which will encourage enterprises and housing associations to make better use of energy resources.
The framework will be complemented by a EUR15 million grant from the Bohunice International Decommissioning Support Fund which will finance technical assistance, incentives to sub-borrowers and administration fees to participating local banks.
Under the framework, the EBRD will provide loans of up to EUR15 million each to the leading Slovak banks Dexia Banka Slovensko, Slovenska Sporitelna, Tatra banka and VUB Banka for on-lending to clients for energy efficiency projects. Eligible clients for these loans are private sector companies and residential borrowers. Eligible projects will range from energy saving investments in companies to insulation of apartment houses.
A comprehensive technical assistance programme is already in place. These consultants provide a free service that will assist sub-borrowers of the local banks to identify the most appropriate energy efficiency investments for their needs.
The Slovak Republic has significant potential for improvements in energy efficiency and renewable energy. The energy intensity of the Slovak economy is 3.75 times higher than the EU-25 average in nominal terms. The country’s 1.7 million households account for 22 percent of total consumption.
At the same time, the Slovak Republic has committed itself to the closure of Units 1 and 2 of the Bohunice nuclear power plant by end-2008. As the economy is growing strongly and so is the country’s energy consumption, improving energy efficiency and raising the contribution of renewable sources is key to safeguard Slovakia’s energy security.
Peter Reiniger, EBRD Business Group Director Central Europe, said the combination of loans and grant-funded incentives to individual borrowers is expected to convince the general public of the importance and viability of energy efficiency investments. “The success of the framework will demonstrate the benefits of energy conservation and rational energy utilisation and make a significant contribution to the sustainable growth of the Slovak economy,” he added.
The EBRD would like to thank the Minister of Economy for his continued support of the EBRD`s efforts to promote energy efficiency.
Energy efficiency is a key priority for the EBRD. The Bank has already created two frameworks for Bulgaria and last year approved an energy efficiency programme for Ukraine. Similar programmes are being launched now in Georgia and Romania.
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