Financing Criteria for EBRD Credit Line for Financing Energy Efficiency and Renewable Energy Projects

Borrowers: Corporate and Small Business Clients

Private Sector

- Private companies, sole proprietors and other private legal entities incorporated in line with B&H laws;

Public Sector

- Municipalities, public or private companies, headquartered in B&H, providing public services and directly responsible for project implementation;

- Energy Service Company (ESCO) implementing energy efficiency investment projects in co-operation with one or more municipalities or public/private companies headquartered in Bosnia and Herzegovina.

Purpose

Private Sector
- Investments into commercial energy efficiency
- Stand-alone small scale renewable energy investments
- Building Sector energy efficiency investments
Public Sector
- Energy efficiency and renewable energy investments

Loan Amount

Private Sector: max EUR 2.000 000 

Public Sector: max EUR 2.500 000

General Eligibility Criteria for Specific Sectors

Private Sector

- Energy Saving Ratio shall be equal or greater than 20% for commercial energy efficiency investments, as measured on an annual basis;

- Reduction of greenhouse gases emissions measured in tonnes equivalent of CO2 equal or greater than 20%, as measured on an annual basis (on ceteris paribus principle);

-  Energy Saving Ratio shall be equal or greater than 30% for Building Sector energy efficiency and renewable energy investments, as measured on an annual basis; 

Public Sector

- Energy Saving Ratio shall be no less than 30 % for municipal/residential buildings and no less than 20 % for other municipal infrastructure/equipment. 

Consultancy Support

- Identification of eligible projects and providing support for their preparation in order to meet the existing requirements;

- Project technical and financial viability assessment;

- Producing Rational Energy Utilisation Plan or Energy Audits, for each eligible project, where necessary;

- After project completion, the delegated Verification Consultant checks if EBRD Credit Line goals have been met, i.e. if the project is completed in line with the relevant Rational Energy Utilisation Plan or Energy Audit, based on which the project becomes eligible for receiving the respective incentive payments.

Repayment Method and Loan Tenor

- Repayment period maximum 120 months, including maximum one-year grace period;

- Repayment method in monthly/quarterly/semi-annual installments, depending on client's requirements.

Incentive for the Borrower for a Successful Project Completion

Incentive amount is defined as a percentage of the Loan, as follows:

  • Private Sector   5% to 10%
  • Public Sector       10% to 15 %