Home > News > Hungary Energy Efficiency Co-Financing Program (HEECP)
Hungary Energy Efficiency Co-Financing Program (HEECP)
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Name |
Hungary Energy Efficiency Co-Financing Program (HEECP) |
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Active |
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Funding Mechanism |
Partial loan guarantees |
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Duration |
1997-ongoing |
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Objectives |
To meet GEF's objectives by promoting and supporting commercial financing of energy efficiency equipment and projects. The primary tool is using GEF funds for the provision of partial guarantees to Financial Intermediaries, which provide credits in the form of commercial loans and financial leases for qualified EE Projects. |
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Sponsors |
GEF and IFC |
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Eligible Sectors |
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Industrial, municipal, institutional, multi/single family housing, street lighting |
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Eligible Projects/Technologies |
Efficient lighting, building and district heating, industrial motors, boiler and control systems. |
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Fund Endowment |
Initial endowment in 1997/GEF US$ 5 million (Pilot Phase). In February 2001 IFC and GEF extended the facility with US$ 12 million with a total of US$ 17 million of which US$ 16 million is for guarantees. |
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Terms |
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-Funding Instruments |
Grants and Partial guarantees – Transactional or Retail Guarantees |
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-Interest Rates |
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-Payback |
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-Size |
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-Collateral |
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-Share of loan in project cost |
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-Loan criteria |
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Comments |
Potential FI Partners: The following Financial Intermediaries have been proposed to IFC Management to participate in the HEECP Program after a due diligence: OTP Bank, Raiffeisen Bank & Lizing, Magyar Külkereskedelmi Bank, Kereskedelmi és Hitelbank, Budapest Bank & Leasing, Hypovereinsbank Hungary, Axon Leasing, and Innotrade Leasing (due diligence of Innotrade Leasing has not been accomplished yet.)
Guaranteed Facility Agreements with the above mentioned FIs are under negotiation.
HEECP provides small grants for (i) marketing of EE finance services by participating FIs; (ii) EE project identification by support of initial energy audits; (iii) EE project development and investment preparation; (iv) general EE market promotion activities; and (v) and Program evaluation activities.
HEECP's main objective is (1) to build the energy efficiency financing capacity of domestic Hungarian financial intermediaries and (2) to spur transition of financing for energy efficiency from heavily subsidized “soft loans” to fully commercial lending. |
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Sources |
IFC
GEF |
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Contact Information |
HEECP Program Manager, Aniko Rozsa ARozsa@ifc.org |
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