GEFF - Romania Green Economy FF

4 October 2018

GEFF - Romania Green Economy FF

Project Description

Establishment of a Green Economy Financing Facility ("GEFF", the "Facility") in Romania to provide existing and new private Participating Financial Institutions ("PFIs") with credit resources in combination with comprehensive Technical Cooperation ("TC") packages.

The Facility will consist of up to EUR 100 million in senior debt, including up to EUR 70 million EBRD financing and up to EUR 30 million concessional loan funding provided by the International Cooperation and Development Fund Taiwan ("TaiwanICDF") allocated to PFIs in Romania. The funds will be on-lent by the PFIs to finance eligible sub-borrowers for investments in energy and resource efficiency measures in the residential buildings. The Facility will be the first dedicated energy and resource efficiency financing programme of the Bank targeting the residential buildings in Romania.

Project Objectives

The Facility will aim to contribute to the green economy market development in Romania and targets the following objectives: (i) enhance the competitiveness of commercial financing for energy and resource saving investments in the residential sector, (ii) increase awareness, as well as capacity
and involvement, of the population and private sector participants in residential green economy investments, (iii) improve living comfort and affordability of utilities for households, (iv) strengthen local production and supply base for green technologies and materials, and eventually (v) deliver sizeable resource savings in the key energy consuming sector of the Romanian economy.

The Facility also aims to contribute to policy dialogue actions with the Romanian Government to provide advice on the design, development and expansion of Government programmes in the area of green economy programmes, for more effective implementation.

Transition Impact

The GEFF will be the first EBRD green economy financing facility addressing the residential sector in Romania. The Facility is expected to stimulate the growth of the market for green technologies and materials across Romania by: (i) demonstration effects of green economy investments at the PFI, subiborrowers and Romanian government level, market expansion by increasing the availability and access to residential green economy finance and high-performance green technologies, as well as policy dialogue with the government to adopt the standards and procedures into their own programmes and design effective support policies and (ii) transfer of skills to PFIs, sub-borrowers and intermediaries on the development and financing of residential green economy projects.

Financing under the Facility will be complemented with Technical Cooperation, as well as a widereaching awareness campaign.

Client Information

PFIs may be local commercial banks, consumer finance institutions, leasing companies, microfinance institutions or other credit institutions established and operating in Romania.

EBRD Finance Summary

EUR 70,000,000.00

Total Project Cost

EUR 100,000,000.00

Environmental and Social Summary

Categorised FI (ESP 2014). PFIs under this Facility will be required to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, including adherence to the EBRD's Environmental and Social Exclusion List. New PFIs will be required to submit a completed FI environmental and social due diligence questionnaire to the EBRD to establish their compliance with the PRs. All PFIs will be required to submit Annual Environmental and Social Reports to the Bank including reporting on subprojects.

Technical Cooperation

The Facility will be supported by a donor-funded Technical Cooperation package of up to EUR 3 million provided by a Facility Consultant. The initial amount of EUR 0.9 million TC is provided by the EBRD Shareholders Special Fund and additional USD 1.5 million are sourced from Global Environment Facility (GEF) programme.

Business opportunities

For business opportunities or procurement, contact the client company.

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Tel: +44 20 7338 6794
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Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

Source: European Bank for Reconstruction and Development