Project description
and objectives:
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The EBRD is considering establishing a EUR 60 million framework facility under which EBRD would extend credit lines to banks in certain countries in the Western Balkans region (Bosnia & Herzegovina, FYR Macedonia, Montenegro and Serbia) for on-lending to private enterprises for investments in sustainable energy. Sub-loans will be available for investments in industrial energy efficiency, small renewable energy production and energy efficiency in commercial buildings.
The programme will be supported by the European Union (“EU”) through a grant of EUR 13.5 million under the Instrument for Pre- Accession Assistance (IPA) 2007 programme*. The funds will be utilised for targeted end-borrower investment grants and administration fees for Participating Banks.
* The EU sponsored IPA programme has a wider geographic coverage.
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Sub-projects:
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Transition impact:
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The Project is expected to have two sources of transition impact:
Demonstration effects of improved energy efficiency among sub-borrowers
The Project will generate transition impact by demonstrating the benefits of energy conservation and promoting the expansion of energy efficiency and renewable energy investments in the energy inefficient Western Balkan economies. It will have positive demonstration effects particularly with respect to utilizing financial intermediaries for financing investments resulting in rational energy utilization; something that has not yet been widely utilized. The project will demonstrate the positive impact of rational energy utilization on improving industrial competitiveness in the light of rising energy costs in the region.
Transfer of skills
The project is also expected to transfer and build expertise, among both banks and enterprises, related to energy efficiency. The banks will build expertise in assessing the risk and creditworthiness of clients for energy efficiency loans, while the enterprises are expected to become more familiar with banks’ requirements for providing energy efficiency loans. The project is expected to contribute to lowering the transaction costs for financing energy efficiency investments and the Facility’s success would lead to sustainable lending to companies with reducing need for grant support.
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The client:
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Banks established and operating in Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia.
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EBRD finance:
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EBRD financing to be provided in the form of senior loans. The proceeds will be used by the Participating Banks for on-lending to private enterprises for investments in sustainable energy. Sub-loans will be available for investments in industrial energy efficiency, small renewable energy production and energy efficiency in commercial buildings.
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Total project cost:
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The total amount of loans extended under the framework will be up to EUR 60 million.
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Environmental impact:
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Screened FI. Each sub-project will undergo a review to confirm, among other things, that each sub-project is compliant with national standards for environment, health, safety, labour and public consultation. The procedures for this review will be agreed between the independent consultants and the bank. Where and if required, special attention will be paid to projects known to be sensitive, such as small hydro cascades and wind power developments.
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Technical
cooperation:
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The programme will be supported by consultants contracted by EBRD. The scope of work for the consultants will include the following
- Sub-borrowers will be assisted in developing Rational Energy Utilisation Plans (“REUPs”) which will (a) present the structure of underlying investments, (b) ensure cost effectiveness in the identification of appropriate measures and consistency with criteria of the EU Grant Agreement and (c) assist in making loan applications. Energy Audits will be undertaken when necessary to identify the scope of eligible investments.
- 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.
- Marketing and outreach campaign to inform potential Sub-borrowers about the facility and the benefits of rational energy utilisation
- Information dissemination activities related to the Facility to inform a wide range of stakeholders about the Facility and the benefits of rational energy utilisation.
- Validation of implementation of eligible investments in accordance with the objectives of the Facility (which is a precondition for payment of incentives).
Technical Cooperation will be funded from the EBRD Western Balkans Multi-donor Fund.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Michalis Kiourktsoglou
Financial Institutions
EBRD
One Exchange Square
London EC2A 2JN
Tel: +44 20 7338 6734
Email: kiourktm@ebrd.com
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EBRD contact:
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Michalis Kiourktsoglou, Operation Leader: kiourktm@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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