Financial Mechanism (FOPESIC)
Policy measure

According to WBCSD (2007), one of the aspects of the Honduran PESIC project framework is its Financial Mechanism (FOPESIC), a trust fund of USD 700,000 established by BCSD Honduras and the Central American Bank for Economic Integration to finance energy efficiency projects in the Honduran industrial and commercial sectors. “FOPESIC will allow companies to submit projects up to US$ 100,000 to acquire new technologies or finance technical feasibility studies” (WBCSD, 2007).


The aim of FOPESIC is, according to ECLAC (2010), to enable businesses to finance energy efficiency projects. This is achieved through two investment categories. The first is called the Project Execution Guarantee Fund (FAEP) which provides partial guaranties of bank loans of up to 50 percent. This serves to finance the implementation of EE projects within companies. The focus of the second investment type is granting credit for technical assistance and other pre-investment activities. This is the Technical Assistance Fund (FOPAT), the financing of which comes from FOPESIC.

Implementation

The FOPAT funds for technical assistance for direct loans are available for amounts up to USD 20,000 for an 18-month period with a grace period for the first six months nd an interest rate of 80 percent of the annual effective rate. An example of FAEP support for an energy efficiency project is if a company needs to invest USD 50,000 for an EE project for construction, equipment and infrastructure or/and related technical assistance and training, for example, the FAEP provides the employer a guarantee of USD 40,000.00 for securing a bank loan of USD 50,000. FAEP support provides for amounts of up to USD 200,000.00 in order to guarantee bank loans of up to USD 160,000.00 (PESIC, 2011).

Challenges
No identified challenges.
Outcomes
No identified outcomes.
References

ECLAC (Economic Commission for Latin America and the Caribbean), 2010. Energy efficiency in Latin America and the Caribbean: situation and outlook. Chile: Santiago. 


PESIC (Proyecto de Eficiencia Energética en los Sectores Industrial y Comercial), 2011. Bienvenida. Available at: http://www.pesic.org/.


WBCSD (World Business Council for Sustainable Development), 2007. WBCSD Regional Network News (7 March 2007). Available at: www.wbcsd.org/plugins/workspace/message.asp?WspaceId=116&msgId=NzQ3NQ.