Czech Republic PHARE Energy Saving Fund

 Name

Czech Republic PHARE Energy Saving Fund

 Status

Active

Funding Mechanism

Loan fund

Duration

1997-2007

Objectives

To provide low interest loans for energy efficiency projects

Sponsors

Czech Ministry of Industry and Trade, PHARE and CSOB, Ceskoslovenská obchodní banka

Eligible Sectors

Industrial Enterprises, Municipalities, Hospitals, Building Co-Operatives, and District Heating

Eligible Projects/Technologies

Reconstruction of heating systems and energy systems, insulation of houses, regulation of heating and insulation in schools.

Fund Endowment

50% PHARE, 50% CSOB

Terms

-Funding Instruments

-Interest Rates

As of Oct. 1 2001 , 6.7%, floating rate=1/2 CSOB's Prime Rate %20 X (X=bank's margin, max. 3.5% p.a.)

-Payback

4 year minimum and 5 years and 6 month maximum

-Size

2 million Czech/US$ 54,114 minimum and 50 million Czech/US$ 1.35 million

-Collateral

Yes, Standard

-Share of loan in project cost

80-100%

-Loan criteria

Comments

In March 1997, the Fund was established through the PHARE fund to support small and medium energy efficiency projects. Soft loans were made available for bankable projects, where the debt service would be repaid from cost savings.

For an administration fee of 0.95% of the total loan amount, CSOB performs the standard credit-worthiness of appraisal, approves the loan amount and bears the risk of non-payment.

Sources

World Bank

SEVEn

Czech Energy Agency

Ministry of Industry and Trade of the Czech Republic

Contact Information

Jirí Mohelník, Head of International Organization and Cooperation Unit - Assistant: Ms. Lucie Týfová: tyfova@mpo.cz