Caucasus Energy Efficiency Programme

Location:

Regional

Project number:

37820

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jul 2007

Status:

Board Approved

PSD disclosed:

20 Jun 2007

Sub-projects signed under this framework

Project Description

Following the initial USD 60 million framework facility launched in July 2007, and the first USD 40 m extension of the framework (CEEP II), the EBRD is considering a third extension of the framework (CEEP III) in the amount of USD 25m to meet the continuing demand for sustainable energy finance in the Caucasus region (Armenia, Azerbaijan and Georgia). The Bank would focus on extending credit lines to new Participating Financial Institutions, including banks, leasing companies and microfinance institutions (PFIs) for on-lending to private sector companies and individuals for energy efficiency investments, renewable energy projects and residential energy efficiency projects. Projects undertaken by the PFIs themselves are also eligible for financing.
In addition to the EBRD financing, the facility will be supported by a grant from the European Union’s Neighbourhood Investment Facility (EU NIF) and from the EBRD Shareholder Special Fund to fund incentives to sub-borrowers.

Transition Impact

The Project will demonstrate the benefits of energy conservation through investments in rational energy use in the energy inefficient Caucasus economies. The project will transfer and build expertise in sustainable energy investments among participating financial institutions, end users and local experts.  New financial institutions participating in the project will particularly build capacity in identifying energy efficiency investment opportunities, marketing such products, as well as assessing loan applications. Sub-borrowers will be trained to structure and review loan applications while local engineers will be trained to help both the banks and sub-borrowers.

The development of expertise within the PFIs is expected to result in the ability of the financial sector to continue such lending with diminishing levels of external support.

The Client

Local commercial banks, leasing companies and microfinance institutions in the countries of Armenia, Azerbaijan and Georgia will be eligible to participate.

EBRD Finance

USD 25 million.

Project Cost

USD 25 million from EBRD.

Environmental Impact

Categorised FI. Participating financial institutions will be required to comply with the EBRD's performance requirements 2 and 9 and submit annual environmental and social reports to the Bank, including reporting on sub-projects. Sub-projects will be required to comply with national standards for environment, health and safety and labour and, where relevant, EBRD E&S eligibility criteria for on-shore wind and small hydro projects.

Technical Cooperation

Technical cooperation will be funded by the Austria-EBRD Regional (ETC) Energy Efficiency Program Fund and the EU NIF.
EBRD will engage a Project and a Verification Consultant. The Project Consultant will provide implementation support to PFIs, sub-borrowers and local experts, including: awareness campaign, pipeline development, energy audits to sub-borrowers and implementation support for sub-projects. An independent Verification Consultant will perform eligibility verification of sub-projects.

Company Contact

Christopher Falco
Senior Banker, EBRD
One Exchange Square
London EC2A 2JN

Tel: +44 (0) 207 338 6399
Tel: +44 (0) 207 338 7380
E-mail: FalcoC@ebrd.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.