EUEEFF - Energy Efficiency Framework

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The proposed project will consist of loans to Participating Banks in Romania and Bulgaria in the amount of up to EUR 100 million in total. The participating banks will on-lend the funds to private industrial enterprises for energy efficiency projects. The Project will increase financial intermediation and financing for rational energy utilisation and provide benefits in terms of energy savings, thereby mitigating high energy intensity in the region. The Project will be complemented by grant funding of EUR 24 million from the European Union (“EU”) for technical cooperation and for incentives at the level of sub-borrowers and banks. This Framework is being implemented under an EU sponsored programme with a wider geographic coverage including Romania, Bulgaria, Croatia and a broader use of proceeds covering the industrial as well as the residential sector. The project will help overcome market imperfections that prevent energy efficiency investments in Romania & Bulgaria. The financially intermediated model has proven successful in reaching a wide range of sub-borrowers in the industrial sector thereby achieving maximum impact of donor funds on rational and sustainable energy utilisation. The proposed project will result in demonstration effects of successful energy efficiency investments and building expertise among the Participating Banks and Sub-borrowers. The Framework will be available for qualifying Participating Banks (“PBs”), in Romania and Bulgaria. Senior Loans to participating Banks In Romania & Bulgaria up to a total amount of EUR 100 million. EUR 100 million. FI screened operation. Participating Banks will require that companies financed through this credit line comply with national requirements for environment, health and safety. Reporting on sub-projects and annual monitoring reports will be provided by Participating Banks. Increased efficiency in heat generation, reduction of heat transmission losses and improved efficiency in the use of heat and energy will lead to a reduction of air pollutants (e.g., SO2; NOx; CO2; particulates) resulting from heat and electricity generation. This is a clear and quantifiable environmental benefit in energy saving which is tracked and reported on by the consultants. TC funding of approximately EUR 3.5m to be funded from the European Union will be required to cover the following scope : Terry McCallion, Senior Banker, Financial Institutions Team, EBRD One Exchange Square London EC2A 2JN Tel: +44 (0) 207 338 7478 Fax: +44 (0) 207 338 7380 E-mail:MccalliT@ebrd.com