Energy Saving Credits - financing municipal energy efficiency projects
The loan programme
The Energy Saving Credits loan programme offers small-scale financing to municipalities in Armenia, Belarus, the Republic of Moldova, Russia and Ukraine for investments in social facilities such as day-care centres, schools, hospitals and street lighting. The funding can be used for energy-saving measures in connection to the refurbishment of public buildings and modernizing of the street lighting. The energy-saving measures can include renovation of heat substations, installation of individual heat substations, insulation of walls, ceilings, and pipes and replacement of doors and windows with energy-efficient alternatives as well as replacement of fluorescent and mercury-vapour fixtures with environmentally friendly LED lights.
The focus is on:
- Renovation of social facilities to reduce energy consumption and increase the lifetime of the buildings
- Annual heat energy savings of approx. 30-45%
- Environmental savings, such as reduction of CO2, nitrogen oxide, sulphur dioxide and dust emissions
- Annual cost savings of approx. 25% of the investment
- Establishment of best practices in procurement and project implementation
Terms and conditions:
- Borrower: Municipalities
- Type of investments: Social facilities such as day-care centres, schools, hospitals and street lighting
- Loan amount: Up to EUR 500,000
- Share of financing: Up to 90 % of project costs
- Currency: Lending in local currency
- Interest: 3 %
- Repayment period: Up to 5 years
- Procurement: Open and transparent, in accordance with NEFCO’s procurement guidelines