RS Energy Efficiency Fund


Bosnia and Herzegovina

Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

21 Jul 2021



PSD disclosed:

09 Oct 2020

Project Description

Installation of energy efficiency ("EE") measures in up to 20 publicly-owned buildings (schools and hospitals) in order to achieve reduction of energy consumption and cost savings (the "Project"). The proposed measures include thermal insulation of external walls, thermal insulation of roofs, replacement of windows, installation of high-efficiency lighting and heating and ventilating upgrades including replacement of inefficient and/or coal fired boilers, cooling, ventilation and air conditioning. For each building selected for the Project, an energy manager will be hired and trained to monitor the energy performance of the refurbished buildings. The Project also includes further development of an integrated EE information system and EE database for monitoring energy consumption. 

Project Objectives

Achievement of a higher standard of heating and cooling, and thus, providing better comfort to building users. The expected results include a reduction in energy consumption by 30-50 per cent and a reduction of CO2 emissions. Improvement of the EPC (Energy Performance Certificate) rating by at least two classes (e.g. from E to C).

The Project is in line with EBRD Country Strategy for BiH 2017-2022 (BDSBH17-01(F)) which identified improving energy efficiency as one of the key objectives. The Project is consistent with the Bank's Municipal and Environmental ("MEI") Sector Strategy 2019-2024 (BDS19-069 (F)) which sets the improvement of energy efficiency in public building as one of the priorities. It is also fully in line with the Green Economy Transition ("GET") approach 2021-2025 (BDS20-082(F)).

Transition Impact

ETI score: 66

Introduction of non-recourse utility lending to help strengthen institutional capacity and procedures for sustainable and efficient infrastructure asset management.

The 'Green' transition quality stems from the Project's environmental impact. The use of proceeds allocated to the Project will contribute to energy efficiency improvements in up to 20 public buildings, resulting in significant reduction in CO2 emissions. Furthermore, the Project includes technical cooperation ("TC") to help perform environmental and social due diligence, feasibility study and project preparation. The Project contributes to climate change mitigation in the building environment, through the physical upgrade of buildings, improvements in operations and management of buildings and engagement with the occupants. The Project is also expected to support the 'Resilient' transition quality, as it is the first commercial unsecured loan to the Environmental Protection and Energy Efficiency Fund of Republika Srpska.

Client Information


Environmental Protection and Energy Efficiency Fund of Republika Srpska ("EPEEF RS") was established as a legal entity with public authority by the Government of RS. It is managed under the Law on the Fund and is supervised by the Ministry of Physical Planning, Civil Engineering and Ecology. The Management Board has three members (current ministers in the Government of RS) appointed by the Government for a term of three years. The EPEEF RS has 33 employees. The Director/head of operations of the EPEEF RS is appointed by the Government, under a competitive process.

EPEEF RS' main activity is to fund energy efficiency and environmental protection projects, programs and studies (primarily in the form of grants) so as to demonstrate the viability of these measures.

EBRD Finance Summary

EUR 4,500,000.00

Commercial unsecured loan to EPEEF RS supported by a Project Support Agreement with the Government of RS.

Total Project Cost

EUR 6,647,350.00

The total estimated Project costs is EUR 6 million including capital investments, investment grant and technical cooperation (consultancy services).  In addition to EUR 4.5 million of EBRD financing, the Project includes a EUR 0.5 million  grant  for environmental and social due diligence, energy audits and detailed design preparation, and EUR 1 million investment grant mobilised by EBRD through EU REEP fund.


The grace period and overall tenor are above market average. The Bank's additionality is also seen through the support in the development and implementation of the EMS and energy audits, and by ensuring gender parity in access to trainings for Energy Managers. The Bank has also secured technical assistance for the project preparation and implementation.

Environmental and Social Summary

Categorised B (2019 ESP). The Project will have significant benefits related to energy efficiency measures and reduction in emissions. Measures include thermal insulation of external walls and roofs, replacement of windows, installation of high-efficiency lighting and heating and ventilation upgrades, which will result in estimated average annual savings of 78%, which corresponds to around 9,264 MWh per annum and carbon emission reduction of 2,953 tCO2e per annum. Environmental and social due diligence ("ESDD") was carried out by independent consultants and included an audit of the Client’'s capacity to deliver the Project in line with Performance Requirements ("PRs") and assessment of the Project'’s environmental and social ("E&S") risks. ESDD concluded that the Client currently has limited ES and OHS processes and no formalised environmental and social management systems ("ESMS") or occupational health and safety management systems ("OHSMS") in place; although there is a responsible person for management of environmental issues associated with projects the Client implements. There is a well-established human resources management system compliant with national legislation and ESDD has ascertained it is largely in line with PR2, the exception is a lack of formalised grievance mechanism. The Client will need to ensure contractors selected for the Project implement the same labour standards, and this will be done through the construction environmental and social management plan ("CESMP").

No significant issues are expected to arise in terms of pollution, as the works will be limited to retrofitting of existing construction stock in urbanised areas. Some noise, dust and construction waste may be generated during the course of project implementation. The CESMP will be developed and implemented by the contractors; the Client will be required to review and approve the CESMP prior to start of construction. The CESMP will include construction health and safety and environmental plans and controls, plans for community health and safety, and emergency preparedness and response plans and labour management requirements.

While asbestos is unlikely to be present in the buildings, the contractors will nevertheless be required to develop an asbestos management plan as part of the CESMP. None of the buildings are registered as cultural heritage and potential short-term disturbances to local users will be mitigated through the implementation of the CESMP. No loss of livelihood or other PR 5 related issues are anticipated during the retrofit of the construction stock.

An environmental and social action plan ("ESAP") has been prepared and will be agreed prior to project approval to remedy the above-identified E&S issues, and it includes the following: provision of necessary local permits for the construction works, requirement that all building materials and equipment conform to relevant EU norms and standards; establishment of dedicated PIU to manage project E&S and OHS issues as well as establishment of integrated ESMS and OHSMS, including training of staff and contractors; development of employee and contractor Grievance Mechanism; requirement from contractors to prepare CESMPs, development of OHS risk assessments and emergency preparedness plan; requirement from contractors to ensure reinstatement of vegetation post-works and timely notification of potentially affected building users on works in line with the Stakeholder Engagement Plan ("SEP").

The SEP and non-technical summary (NTS) which have been developed for the project will be disclosed on the Fund’'s and affected municipalitie's’ webpages and physical copies will be made available in their premises. The Bank will monitor project implementation through annual environmental and social reports provided by the Client, and site visits if necessary.

Technical Cooperation and Grant Financing

A.  Technical Cooperation (TC)


TC1: Environmental and social due diligence. The cost of the assignment is EUR 24,950 and was financed by the Shareholder Special Fund ("SSF").

TC2: Feasibility study. The cost of the assignment is EUR 74,500 and was financed by an international donor -  Austria DRIVE Fund.



TC3: Project preparation support - preparation of detailed energy audits and design, and technical specifications for preparation of tenders for EE measures in the selected 20 publicly owned buildings. The estimated cost of the assignment is EUR 497,400 and will be financed by the SSF. 


B. Co-investment grants / Concessional Finance (Non-TC)

The Bank will seek to mobilise investment grant funds of up to EUR 1 million from the European Union through the "REEP".

Company Contact Information

Srdjan Todorovic, Director
+387 51 231 340
+387 51 231 351
Kralja Alfonsa XIII 21 71000 Banja Luka, BiH

PSD last updated

10 May 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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