Slovenia Energy Saving Fund

Name

Slovenia Energy Saving Fund

Status

Active

Funding Mechanism

Loan fund

Duration

1998-2008

Objectives

To enhance the use of and the investment in energy efficiency equipment and to assist local banks in developing a new business field and to help develop more diversified financing schemes for energy efficiency.

Sponsors

Slovene Ministry of Finance, Ministry of Economic Affairs, and the European Commission.

Eligible Sectors

Industrial, buildings, and service sectors

Eligible Projects/Technologies

Cogeneration, compressed air systems, energy efficient boilers, energy efficiency in building systems for M & T, and heat recuperation

Fund Endowment

EUR€ 13.7 million/US$ 12.2 million. RS Govt. contributes EUR€ 1,7 million, used as a grant to reduce the interest rate, PHARE contributes EUR€ 2 million at 0% interest rate, and Bank Austria Creditanstalt fund EUR€ 10 million, lent at commercial rates

Terms

-Funding Instruments

Loans

-Interest Rates

40% lower than the commercial rates. The blending of the funds is the responsibility of the bank awarded the contract of managing the fund.

-Payback

8 years with a maximum grace period of 2 years for the commencement of principal repayment.

-Size

-Collateral

As agreed between the Borrower and the Bank (mortgage on the real estate or business property or production premises, pledge over the equipment, bill of exchange)

-Share of loan in project cost

-Loan criteria

Projects must result in identifiable and measurable energy savings (projected to provide at least half the return on the investment share financed by the loan) and can be 1) new project without previous financing, 2) completion of partly financed projects, 3) extension of previously financed projects; borrowers must be Slovene legal entities, loan must be in Slovenia, and projects must fulfill the Fund Manager's standard credit eligibility.

Comments

Fund manager Bank Austria Creditanstalt d.d. was selected in a public tender, inviting all qualifying financial institutions residential in Slovenia to apply. The organization and operation of the fund has three bodies: 1) Fund Manager provides administrative, logistical, and operational support, responsible for financial appraisal of and final decision on Loan application, controls loan disbursement, and monitor and verify energy savings, 2) Monitoring Unit monitors the energy efficiency aspects of the projects and for technical assessment of loan applications, 3) Supervisory board (three members from EC, Ministry of Economic Affairs, Ministry of Finance) monitors the technical, financial, and operational implementation of the Fund and to ensure that the operation of the Fund Manager is in accordance with the contract. The board can change the blending ratio, the effective interest rate, lending conditions, the efficiency criteria, and target sectors and approves all reports submitted by the Fund Manager

Sources

Agency for Efficient Energy Use in Slovenia

Contact Information

Franc Beravs Franc.Beravs@gov.si