Energy Saving Credits - financing municipal energy efficiency projects

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
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