Western Balkans GEFF II - KEP



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

14 Dec 2021



PSD disclosed:

10 Dec 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of a senior unsecured loan of up to € 3 million to be provided to KEP Trust (KEP) in three equal tranches under the Western Balkans Green Economy Financing Facility II (WB GEFF II). 

Project Objectives

The facility will support investments in high-performance green technologies, materials and solutions undertaken in privately-owned residential dwellings or buildings. Sub-projects will be selected according to technical and financial eligibility criteria set forth in the Policy Statement for WB GEFF II. 100 per cent of the use of proceeds will be related to Green Economy Transition investments.

Transition Impact

ETI score: 80

The project contributes to the overall objectives of WB GEFF II, supporting the Green and Competitive TI quality.

Green: The project will contribute towards building a green economy by facilitating the expansion of lending for investments into high performance residential green economy technologies. 

Competitive: The project will contribute towards building a more competitive financial sector by building the capacity of the Partner Financial Institutions (PFIs) for financing green economy projects. 

Client Information


KEP is the largest microfinance institution in Kosovo, established as a non-governmental organisation. KEP was founded in August 1999 by the Swiss humanitarian organisation International Catholic Migration Commission and by the Prizren Business Club. KEP services around 23 thousand customers throughout the country with its 31 branches and 244 employees.

EBRD Finance Summary

EUR 3,000,000.00

Total Project Cost

EUR 3,000,000.00


Additionality is achieved by combining the necessary long-term financing via KEP with TC and investment incentives into a package that promotes residential green economy investments in Kosovo.

Environmental and Social Summary

Categorised FI (2019 ESP). KEP is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. KEP will be required to continue to implement the environmental and social risk management procedure for micro, SME and corporate loans as well as the specific environmental and social eligibility criteria for renewable energy projects as applicable. KEP will be required to continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, including adherence to the expanded the EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. Sub-borrowers financed through KEP's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Potential renewable energy investments under the GEFF framework will have to follow the E&S eligibility criteria for such investments (solar, wind, geothermal, bioenergy or hydro power, as the case may be). The Project's actual use of proceeds may include solar sub-projects. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35) and any subsequent guidance developed under that approach.

Technical Cooperation and Grant Financing

TC: €2.965 million have been set for TC support at the Facility level. The TC is essential to supporting the preparation, implementation and monitoring of the Facility. The TC fund for the proposed transaction is sourced from the the EBRD Shareholders Special Fund (SSF) and the Government of Austria.

Non-TC: €0.6 million (for this project) for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement. Grant funds are provided by the European Union through the Western Balkans Investment Framework.

TC project with EBRD's Advice for Small Business (ASB): As a separate project, KEP is expected to receive grant assistance of up to €16 thousand from ASB to support them with implementing their new digital strategy.  

Company Contact Information

Shpend Nura
+383 38 245 011

PSD last updated

10 Dec 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
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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