MoSEFF II - Moldovan Sustainable Energy FF Extension

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Sub-projects signed under this framework The EBRD is considering extending the existing Moldovan Sustainable Energy Finance Facility by providing new funds of up to €22 million to address the demand for energy efficiency and renewable energy investments in Moldova. The project will consist of credit lines to local banks for on-lending to private enterprises undertaking sustainable energy investments. In addition to the EBRD financing, the Facility will be supported by a grant from EU Neighbourhood Investment Fund and Technical Aid to the Commonwealth of Independent States Fund for technical cooperation and incentives to sub-borrowers and participating banks. The Project is expected to have two sources of transition impact: Demonstration effect and market expansion The Project will generate transition impact by demonstrating the benefits of energy conservation and promoting the expansion of energy efficiency and renewable energy lending in the energy inefficient Moldova. The Project will demonstrate the effects of rational energy utilisation for improving industrial competitiveness in the light of the rising energy costs in the region. Transfer of skills The Project is also expected to transfer and build expertise, among both banks and companies, related to sustainable energy investment. New and existing Participating Banks will build expertise in assessing the risk and creditworthiness of clients for energy efficiency and renewable energy loans, while the enterprises are expected to become more familiar with banks’ requirements for providing such loans. MoSEFF II will be available to privately owned banks in Moldova (Participating Banks or PBs). €22 million. €22 million. Screened FI. PBs will be required to comply with the EBRD’s Performance Requirement (PR) 2. All sub-loans financed under the MoSEFF II will need to comply with the requirements of PR9. Technical cooperation will be funded by the European Union though the Neighbourhood Investment Facility and the Technical Aid to the Commonwealth of Independent States. Consultants will be contracted by EBRD to provide beneficiaries with project design and implementation support.