Project description
and objectives:
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The proposed project will consist of loans to Participating Banks in the amount of up to EUR 40 million. The Participating Banks will on-lend the funds to small and medium-sized enterprises (“SMEs”) in the industrial sector, to upgrade facilities to meet EU standards in the areas of environmental protection, health and safety and product quality and safety. The Project will be complemented by grant funding of EUR 10.2 million from the EU and Romanian Government for technical cooperation and for incentives at the level of sub-borrowers and banks.
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Sub-projects:
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- EU/EBRD SME CSF - Banca Comerciala Romana
- EU/EBRD SME CSF - BRD Romania
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Transition impact:
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The project will help overcome market barriers that prevent industrial SMEs from implementing investments to achieve compliance with EU standards. The proposed project will result in positive demonstration effects with respect to improving standards of business conduct and successful enterprise restructuring and will build expertise among the SMEs and Participating Banks with respect to the new regulatory environment. The financially intermediated model has proven successful in reaching a wide range of sub-borrowers in the industrial sector thereby achieving maximum impact of donor funds.
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The client:
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The Framework will be available for qualifying Participating Banks in Romania.
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EBRD finance:
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Senior loans to Participating Banks in Romania up to a total amount of EUR 40 million
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Total project cost:
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EUR 40 million.
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Environmental impact:
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Screened FI. The Facility will have a positive effect on Romanian SMEs in terms of their enhanced capacity for environmental protection, worker health and safety and product quality and safety. The proposed Participating Banks, BCR and BRD, are both existing EBRD clients and have successfully implemented the EBRD's Environmental procedures for Intermediated Financing; they will be required to continue to implement the EBRD's Environmental Procedures for Small and Micro loans which includes annual environmental reporting to the Bank.
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Technical
cooperation:
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TC funding of approximately EUR 1.4m to be funded from the grant support provided by the EU and Romanian Government will be required to cover the following scope :
- Industrial SMEs will be assisted in preparing eligible projects which will achieve upgrades in compliance with EU Directives, as transposed into Romanian law. Assistance may include preparation of compliance audits, preparation of investment plans including recommendations on cost effective measures and assistance in making loan applications.
- The Participating Banks will also benefit from the technical work as it will assist them in understanding and appraising loan applications for purposes with which they are unfamiliar.
- Awareness raising, marketing and outreach campaign to inform potential sub-borrowers about the Facility.
- Validation of implementation of eligible investments in accordance with the objectives of the Facility.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Teresa Godwin-Coombs, Senior Manager, Financial Institutions Team,
EBRD
One Exchange Square
London EC2A 2JN
Tel: +44 (0) 207 338 6551
Fax: +44 (0) 207 338 6119
E-mail: GodwinT@ebrd.com
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EBRD contact:
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Teresa Godwin-Coombs, Operation Leader: godwint@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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