Hungary Public Sector Energy Efficiency Programme

 Name

Hungary: Public Sector Energy Efficiency Programme

 Status

Active

Funding Mechanism

Loan fund

Duration

June 2000 - May 2005

Objectives

To remove barriers for a sustained market of energy efficiency services and to promote the implementation of EE projects.

Sponsors

Ministry of Economics will be the executing agency and a Steering committee will consist of the Ministry of Economic, of Environment, UNDP, NGO with energy expertise and other relevant agencies. The steering committee will be responsible for monitoring and supervision of project implementation.

Eligible Sectors

Municipalities, hospitals, and other public institutions

Eligible Projects/Technologies

Building and district heating, water heating, public lighting, fuel switching, boiler and control systems, waste water treatment.

Fund Endowment

GEF US$ 4.2 million and co-financing UNDP US$ 400,000, Govt. US$ 2.8 million, Govt. (in-kind) US$ 300,000, Private and public investors US$ 9-13 million (est.)

Terms

-Funding Instruments

-Interest Rates

-Payback

-Size

-Collateral

-Share of loan in project cost

-Loan criteria

Comments

The project has three components: 1) Support for EE Policy, awareness, and co-ordination which includes establishing a National Energy Agency, 2) Support for project identification, development, and financing, and 3) Training. Financing component: The project will provide direct support in the form of cost-sharing for at least 100 audits to leverage investment in the municipal sector and provide funding contingent grants for cost-sharing feasibility studies. Audits and feasibility studies would thus provide the critical link to financing that municipalities currently lack, that is, these mechanisms would shift support away from projects that are credit-worthy and preferred customers of the bank to projects that have substantial, cost-effective energy savings. It is also envisaged that GEF could cover the incremental risk to be repaid if and when a project is actually implemented. The funds returned will be fully reinvested in additional audits and studies until wither funds are depleted or project goals have been met.

Sources

Energy Centre

Contact Information