July 26 (Renewables Now) - The European Investment Bank (EIB) has committed to providing EUR 5 million (USD 5.6m) to two lending entities in the Dominican Republic to support the financing of renewable energy and energy efficiency projects in the country over the next two years.
The EU lender said Friday it will provide a green loan of EUR 1.4 million to local micro-finance bank Banco de Ahorro y Credito Fondesa (Banfondesa). The latter will direct this financing to micro, small and medium-sized enterprises (SMEs) and medium to low-income families for renewable energy and energy efficiency projects.
An additional EUR-3.6-million green loan will be available to micro-credit entity Fondo para el Desarrollo Inc (Fondesa). Fondesa, as a non-governmental organisation (NGO) which specialises in credits for education and training, will use the funds to finance renewable energy, mostly photovoltaic (PV) and energy efficiency solutions for schools and universities, the EIB said.
(EUR 1.0 = USD 1.11)