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New source of funding for energy efficiency projects in Kyrgyz Republic announced by EBRD

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The EU Central Asia Investment Facility (IFCA) to also provide grants as incentives for investing in energy efficiency and renewable energy projects. 

26 April 2013 – London, UK – The European Bank for Reconstruction and Development (EBRD) has announced a new US$ 20 million credit line to support energy efficiency improvement projects in the Kyrgyz Republic.  Credits are to be complemented by donor funding provided by the EU Central Asia Investment Facility (IFCA).  The total donor funding made available for technical assistance and grants offered together with the KyrSEFF credit line amounts to €3.8 million.

kyrseffOver the next four years, loans under the new Kyrgyz Sustainable Energy Financing Facility (KyrSEFF) will be provided through partner banks. KyrSEFF credits are now available through Demirbank and KICB, with additional partners expected to join in the next few months.  Loans under this credit line may be as little as a few hundred dollars but may reach a maximum of US$ 1 million depending on the borrower and the investment type.

“Working with the Kyrgyz banks on energy efficiency projects is a high priority for the EBRD. We hope that through our partner banks we can reach many Kyrgyz businesses and households that wish to invest in energy efficient equipment or insulation,” said Mike Taylor, EBRD Director for Financial Institutions, Central Asia, Caucasus and Mongolia.

For private households, home improvements financed under the new credit line could include the installation of energy efficient windows, the insulation of walls, roofs and floors, and the introduction of efficient boilers, biomass-fuelled room heaters, solar water systems or heat pumps. Any home owner, resident’s association, energy service company, developer or facility management company will be entitled to receive a grant, donor funded by the EU’s Central Asia Investment Facility (IFCA), of between 20 and 35 per cent of the loan amount, with this sum paid towards the cost of the energy efficient project after completion (subject to KyrSEFF’s terms and conditions).

In the commercial sector, energy efficient investments could cover the purchase of new production machinery, help enhance production processes, or retrofit company buildings and facilities.  To help companies identify the most suitable energy saving projects, the EU’s Central Asia Investment Facility (IFCA) has financed a team of international and local KyrSEFF engineers to provide companies with free advice. Commercial projects that are completed in accordance with the KyrSEFF terms and conditions are also entitled to receive a grant from the EU Central Asia Investment Facility (IFCA) of up to 20 per cent of the loan amount.

According to Chantal Hebberecht, EU Ambassador to Kyrgyz Republic, “With KyrSEFF we support companies and households in Kyrgyz Republic by sharing European experience in the field of sustainable living and the most efficient use of energy resources. We are glad that the government of Kyrgyz Republic and the EBRD are providing us with this opportunity to support residents to improve their homes and businesses in their efforts in upgrading their quality output whilst saving energy.”

Further information about KyrSEFF can be found at www.kyrseff.kg

For more information about EBRD projects in the Kyrgyz Republic, go to http://www.ebrd.com/pages/country/kyrgyzrepublic.shtml

The European Bank for Reconstruction and Development (EBRD), established in 1991 to nurture the private sector in central and eastern Europe and central Asia, uses investment to help build market economies and democracies. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses.  The EBRD invested €8.7 billion in 388 individual projects in 2012.  For more information about the bank, visit http://www.ebrd.com/index.htm

Based on EBRD news story by Svitlana Pyrkalo

Source: EBRD