Project description
and objectives:
|
The proposed project is to establish a framework facility whereby the EBRD
would extend credit lines to Participating Banks (PB) for on-lending to the
retail sector for residential energy efficiency projects.
EBRD funds of up to EUR 50 million would be complemented by the Kozloduy
International Decommissioning and Support Fund (KIDSF) grant funding (the
Grant). The Contributors to the KIDSF are the European Commission, Austria,
Belgium, Denmark, France, Greece, Ireland, Netherlands, Spain, Switzerland, UK
and the Project is being prepared in co-operation with the Ministry of Energy
and Energy Resources of Bulgaria.
The Grant amounting to EUR 10 million is provided to overcome barriers faced
by sub-borrowers in developing/financing and implementing such investments.
The Grant will be used to provide:
(i) completion fees to sub-borrowers
(ii) administration fees to be paid to PBs, on behalf of the borrowers. The
Grant is provided on the basis that individual sub-loans meet the objectives
of the KIDSF.
(iii) technical cooperation aimed at preparation, administration and
verification of the sub-projects (see below “technical cooperation”).
Discussions are currently taking place with potential PBs.
|
Sub-projects:
|
- REECL (Bulgaria) - UBB
- REECL (Bulgaria) - UniCredit Bulbank
- REECL (Bulgaria) - DSK Bank
- REECL (Bulgaria) - Raiffeisenbank Bulgaria
- REECL Eurobank EFG Bulgaria
- REECL (Bulgaria) - ProCredit Bulgaria
|
Transition impact:
|
The transition impact of the project derives from the demonstration effects of
(i) implementing one of the first residential energy efficiency programmes in
the region and (ii) providing long-term commercial financing for energy
efficiency in the residential sector.
This transaction will provide know-how and financial assistance required for
the emergence of a residential energy conservation market, as energy
efficiency is often hindered by market imperfections and high start-up costs.
In the past residential energy efficiency has only been addressed on a
grant-funded and experimental basis. The credit line will be the first
commercial scheme of its type, tackling household energy waste using the
retail lending market.
The proposed project will have positive demonstration effect, particularly
with respect to utilising financial intermediaries for investments resulting
in rational energy use. Specifically the Project will demonstrate the benefits
of rational energy use, provide assistance in energy efficiency related
capacity building (among banks and households) and increase financial
intermediation.
|
The client:
|
The clients will be Bulgarian PBs which will on-lend the funds to
individuals/households planning to undertake energy efficiency investments in
the residential sector.
|
EBRD finance:
|
Senior loans of up to an aggregate of EUR 50 million to be allocated to PBs in
Bulgaria.
|
Total project cost:
|
EUR 50 million from EBRD and EUR 10 million from KIDSF.
|
Environmental impact:
|
Screened FI. The aim of this project is, in essence, environmental.
Eligible projects will be required to utilise energy efficient equipments and
materials compliant with local, EU and internationally accepted norms and
standards. Reporting on sub-projects and annual monitoring reports will be
provided by PBs.
Increased efficiency in energy consumption, reduction of heat transmission
losses will lead to a reduction of air pollutants (e.g., SO2; NOx; CO2;
particulates) resulting from heat and electricity generation. This is a clear
and quantifiable environmental benefit on which the Consultant and the PBs
will provide details in an annual environmental report to the Bank.
|
Technical
cooperation:
|
A Consultant, funded on British fund (Department for International
Development), was contracted by the EBRD in October 2004 (final report was
provided in January 2005) to identify needs and priorities for energy
efficiency in Bulgarian dwellings and potential sub-borrowers.
A selection process is now ongoing to allow the EBRD to contract with a
consultant for the time of the project (2 years), utilising the KIDSF grant
resources. The key objective of this assignment is to ensure that the Project
is a success by providing technical, administration and marketing services
that will:
-
ensure there are clearly defined technical criteria under which PBs make loans
and these are consistently applied and updated;
-
market the Facility so that potential sub-borrowers are appraised of the
benefits of energy efficiency and are aware of the financing/incentives
available under the “REECL”;
-
establish an efficient tracking, monitoring and reporting system to ensure
accurate data and standard forms are utilised by the PBs, sub-borrowers and
the EBRD; and
-
ensure that grant funding is applied consistently in line with the eligibility
criteria and that this is supported with an appropriate level of validation,
to avoid mis-use of the loan proceeds and grant.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Terry McCallion, Senior Banker, Financial Institutions Team
EBRD
One Exchange Square
London EC2A 2JN
Tel. +44 (0)20 7338 7478
Fax: +44 (0)20 7338 7380
E-mail:
MccalliT@EBRD.com
Serge Gas, Associate Banker, Energy Efficiency Team
EBRD
One
Exchange Square
London EC2A 2JN
Tel. +44 (0)20 7338 7083
Fax: +44 (0)20 7338 6942
E-mail:
gass@EBRD.com
|
EBRD contact:
|
Galina Shterionova, Operation Leader: shteriog@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
