Central/Eastern Europe Dexia Fondelec Energy Efficiency and Emissions Reduction Fund

 Name

Central/Eastern Europe Dexia Fondelec Energy Efficiency and Emissions Reduction Fund

 Status

Active

Funding Mechanism

Loan Fund

Duration

2000-2010

Objectives

The investment objective is direct investment in energy-efficiency driven companies and projects. The Fund will invest primarily in the countries of central and eastern Europe but will consider investments in all of the Bank's countries of operations.

Sponsors

Dexia Project 7 Public Finance International Bank, FondElec Group, EBRD

Eligible Sectors

Eligible Projects/Technologies

Improve energy efficiency in existing plants and equipment, e.g., plant retrofits and fuel conversions, heat recovery systems, electric transmission grids, gas and district heating system improvements, illumination, and industrial energy efficiency enhancements

Fund Endowment

The Bank will initially invest EUR 20 million in the Fund. An additional EUR 10 million will be available and may either be invested in the Fund if subscriptions exceed EUR 100 million or may be used by the Bank to co-invest with the Fund

Terms

-Funding Instruments

-Interest Rates

-Payback

-Size

-Collateral

-Share of loan in project cost

-Loan criteria

Comments

The Fund will contribute to economic transition by: 1) developing the energy efficiency sector with macro- and micro-economic benefits for all consumers of energy; and 2) increasing the participation of the private sector in the renewal of infrastructure.

By raising the efficiency of fuel combustion and decreasing related emissions to meet EU standards, the Fund will assist the accession countries in joining the EU. Reduced energy consumption improves municipal creditworthiness as well as the competitiveness of industry.

The Fund's financing of energy service companies (ESCOs) will provide a commercial means to improve energy infrastructure without additional debt burden. The Fund will supplement the Bank's financing capability in the sector and will encourage the creation of public/private cooperation. The establishment of the first commercial investment vehicle that facilitates the distribution of carbon credits to shareholders through real investment in energy-saving projects will hasten the establishment of a regional market for such credits.

Sources

Fondalec

Contact Information