Banks to Evaluate Energy Efficiency Projects

BULGARIAN banks will, from this year, take part in evaluating energy efficiency projects under the country’s Competitiveness Operational Programme (OP) revealed Bulgarian Deputy Economy Minister Evgeni Angelov.

Angelov added that the banks will now review projects proposed by local companies who are seeking funds for energy efficiency schemes, which are expected to be announced in the second half of 2011.

Before they accept applications for European Union (EU) financing, Bulgaria's Economy Ministry will sign a memorandum with the European Bank for Reconstruction and Development (EBRD), which will pick seven to 10 banks and provide energy efficiency expertise, for assessment of each proposed energy efficiency project.

The EBRD will then provide credit lines to the selected banks that will be engaged in the administration of the energy efficiency procedure. In turn, the funds will be distributed to local businesses to start developing their projects until qualifying and obtaining the EU financing.

Under the proposed mechanism, banks will make the financial assessment of the projects, while the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA) will only take care of their administrative evaluation.

According to the Ministry, the new scheme will reduce the time of project review and hence accelerate distribution of funds.

Picture ksfan

Monday 31st January 2011

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