Romania GEF Energy Efficiency Financing Facility Project

 Name

Romania GEF Energy Efficiency Financing Facility Project

Status

Active

Funding Mechanism

Duration

Launched November 19, 2001-

Objectives

To establish an Energy Efficiency Fund in order to improve energy efficiency, to reduce GHG emissions, to utilize self-sustaining market based mechanism, and to replicate model and capacity building

Sponsors

World Bank and GEF

Eligible Sectors

Clients with basic creditworthiness - Restructured/privatized industries – cement, pulp & paper, oil, chemicals, machine building, glass, wood processing, food

Eligible Projects/Technologies

Fund Endowment

GEF contingent grant of US$ 9 million will supply seed capital, supplemented by commercial co-financing, GEF Technical Assistance of US$ 1 million and donor funds for capacity building.

Terms

-Funding Instruments

-Interest Rates

The Fund would buy down current perceived risks and transaction costs to allow lending at regular commercial rates (over time, the need for this buy-down should be reduced).

-Payback

-Size

US$ 450,000

-Collateral

-Share of loan in project cost

Up to 70-80% - the remainder to be covered by borrowers

-Loan criteria

Comments

According to report: Advantages of the Fund: 1) flexible facility, able to respond quickly and to adapt to new needs, 2)no contributions from the State budget, 3) self-sustaining, open to commercial co-financing, 3) combination of financial services and expertise in EE, 4) potential catalytic role in the Romanian Energy Sector.

Sources

FREE

Contact Information