EBRD Launches 110 Mln Euro Financing for Sustainable Energy Projects in Western Balkans
The European Bank for Reconstruction and Development (EBRD) said on Monday it has launched two new facilities worth a combined 110 million euro ($145 million) to finance Western Balkans companies’ investments in energy efficiency and renewable energy projects.
“This new financing will add important new momentum to the EBRD’s sustainable energy strategy. It will act as a catalyst to unlock the great potential in the region to reduce energy intensity and promote diverse sources of green energy,” the EBRD President, Thomas Mirow, said in a statement. He unveiled the projects at an Energy Forum in Sarajevo.
A 50 million euro facility will provide funding directly to privately-owned companies in the Western Balkans, while a 60 million euro facility will provide loans to companies via the banking sector, the statement said.
“Achieving energy efficiency in the western Balkans remains a key challenge in a region where energy usage ranges up to 2.5 times higher than the average for OECD countries in Europe,” the statement added.
The new loan facilities aim to encourage businesses to pursue sustainable energy projects that are often challenging to finance and implement. They provide tailor-made financing as well as assistance from technical consultants, the EBRD said. The financing also includes incentive payments that reward reductions in Greenhouse Gases as a result of projects funded by the facilities.
Individual loans under the Western Balkans Sustainable Energy Direct Financing Facility can range from a minimum of 1 million euro to a maximum of 6 million euro. Loans provided via banks under the Western Balkans Sustainable Energy Credit Line Facility are for a maximum of 2 million euro, it added.
The OECD groups 30 member countries sharing a commitment to democratic government and market economy. Best known for its publications and statistics, its work covers economic and social issues from macroeconomics to trade, education, development and science and innovation.