REECL Residential Energy Efficiency CL FW



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

17 May 2005



PSD disclosed:

04 Apr 2005

Project Description

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.


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.

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.

Company Contact

Terry McCallion, Senior Banker, Financial Institutions Team
One Exchange Square
London EC2A 2JN

Tel. +44 (0)20 7338 7478
Fax: +44 (0)20 7338 7380

Serge Gas, Associate Banker, Energy Efficiency Team
One Exchange Square
London EC2A 2JN

Tel. +44 (0)20 7338 7083
Fax: +44 (0)20 7338 6942


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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