Project summary document

Project description
and objectives:

The proposed project is an USD 60 million framework facility under which EBRD would extend credit lines to Participating Banks (PBs) for on-lending to private sector companies for energy efficiency investments and renewable energy projects. Residential energy efficiency projects will also be included under the facility if there is a demand. Georgia will be the first country where the programme is implemented. There are discussions are currently taking place with potential PBs and it is expected that USD 35 million will be allocated to Georgia. Azerbaijan and Armenia and is expected to be included at a later date when the demand from potential PBs is better assessed.

Sub-projects:

• CEEP - Cartu Bank
• CEEP - TBC

Transition impact:

This project will help overcome market imperfections that hold back smooth functioning of the energy conservation market in these countries. It will have positive demonstration effects particularly with respect to utilising financial intermediaries for investments resulting in rational energy utilisation. The proposed project would result in:

i) demonstration of the benefits of rational energy usage

ii) building expertise (among the PBs and sub-borrowers)

iii) increased financial intermediation targeted at rational energy utilisation which will also improve operating efficiency.

The client:

The clients will be PBs which will on-lend the sub-borrowers planning to undertake energy efficiency investments and renewable energy projects in the private sector and energy efficiency investments in the residential sector.

EBRD finance:

Senior loans of up to USD 60 million to be allocated to PBs.

Total project cost:

USD 60 million from EBRD.

Environmental impact:

FI screened operation. PBs will require that companies financed through this credit line comply with national requirements for environment, health and safety. This will be confirmed to the PBs by the consultant who will cover this issue as part of the preparation of each project (see Technical co-operation section below for more information). Reporting on sub-projects and annual monitoring reports will be provided by PBs.

Increased efficiency in heat generation, reduction of heat transmission losses and improved efficiency in the use of heat and energy 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 PBs will provide details in an annual environmental report to the Bank.

Technical
cooperation:

Grant support has already been provided to cover Technical Assistance in Georgia by the Early Transition Countries Fund, the EBRD-Canada Technical Co-operation fund 2006-09 and the UK-DFID Sustainable Energy Fund to provide technical assistance which is essential for the project. The EBRD intends to engage a consultant who will:

a. Provide overall project coordination

b. Provide initial training to the PBs

c. Proactively work with the PBs in reviewing their client base and identify a pipeline of potential projects

d. Promote the Facility through marketing campaigns

e. Undertake the project screening and energy audits for industrial energy efficiency and renewable energy projects

f. Assess compliance of each proposed project with applicable environmental and health and safety standards

g. Work with suppliers to improve distribution and marketing of eligible equipment for residential projects

h. Advise on the eligibility of proposed sub-projects to be financed

i. Monitor the performance of the Facility and the sub-projects

Technical Assistance for Armenia and Azerbaijan will be organised separately at a later date.

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
Tel: +44 (0) 207 338 7380

E-mail: MccalliT@ebrd.com

EBRD contact:

Svetlana Astakhova, Operation Leader: astakhos@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