Donor programme showcase

Almost half of all EBRD investment are supported by technical cooperation assignments. The need for TC is more intense in some countries and sectors than others. The nature of the TC support also depends on the transition stage of the country and the specific needs of the sector.

Cutting energy waste in Romania

The EBRD and the Swiss State Secretariat for Economic Affairs (SECO) are supporting the efforts of CET, the district heating company in Iasi, Romania, to cut energy waste and air pollution.

A €20 million EBRD loan will upgrade the district heating system by replacing pipes in the distribution network, building heat substations and upgrading central heat substations. It will reduce carbon dioxide emissions, benefiting the environment, cutting pollution levels, providing health benefits for local residents, and reducing heat and water losses, making the company more efficient, and ultimately providing customers with a reliable heating service at affordable prices.

SECO is funding the feasibility study for the project and has approved an additional grant of €7 million to co-finance the project. CET, which is owned by the City of Iasi, is contributing around €4.4 million. A portion of these costs could be supported by the sale of carbon credits generated through energy savings after this latest project is implemented.

Investing in energy efficiency in Moldova - Donor Report 2009

Moldova’s energy sector is marked by a severe lack of primary energy resources. The country depends heavily on energy imports, mainly from Russia and Ukraine. Moldova is also nine times more energy and carbon-intensive than the EU average (with current prices). With rising energy prices and a global financial crisis hitting developed and developing countries alike, Moldova has turned to the EBRD to invest in energy efficiency.

In 2008 the EBRD undertook a study to identify the most economically viable projects in renewable energy and energy efficiency in Moldova. The study was funded by the Czech Republic, a former recipient of donor funding that became a donor itself in 2007.

The study found that all sectors of the Moldovan economy could benefit from investment in energy efficiency. The greatest potential lies in the residential sector, which is the highest consumer of heat energy and electricity and could achieve energy savings of up to 45 per cent. However, policy and regulatory frameworks would need to be strengthened before any investment could take place.

The public sector, including schools, hospitals and leisure centres, can also make huge energy savings. However, most municipalities lack the finance to modernise and maintain old public buildings and all too often they are not even aware of their energy “hot spots” – those buildings with the most flagrant energy waste.

The EBRD put the findings of the Czech-funded study to good use and in 2009 started to develop a €20 million Sustainable Energy Financing Facility for Moldova. Backed by the European Commission, the new Facility will lend to banks in Moldova through dedicated credit lines. These banks will then use the loans
to finance energy efficiency and renewable energy projects in the industrial sector, small and medium-sized businesses, commercial properties and heat-generating renewable energy projects.

Improving wastewater treatment in Armenia

Through its participation in the multi-donor Early Transition Countries Fund, Japan is backing an EBRD investment to improve wastewater management services in Armenia. Residents of five municipalities near Lake Sevan in Armenia will benefit.

Lake Sevan covers 15 per cent of Armenia and is a place of natural beauty and historic significance. The project will support efforts to achieve compliance with Armenian and EU environmental standards for wastewater treatment. This is the EBRD’s first municipal and environmental infrastructure project in Armenia.