Programme of Target Financing of Energy Efficiency Projects
Policy measure

“The Program of Target Financing of Energy Efficiency Projects in Russia provides for raising a loan from the International Bank for Reconstruction and Development (the IBRD) in the amount of 300 million US dollars for a period of 18 years against a full sovereign guarantee of the Russian Federation.” (Vnesheconombank, 2012)


“The Program also provides for raising a grant from the Global Ecological Fund (the GEF) in the amount of 25 million US dollars to render technical assistance in providing information analytical support for pursuing a policy of energy conservation and energy efficiency in the Russian Federation.” (Vnesheconombank, 2012)


Due to the lack of information on the implementation period, the most recent year has been applied.

Implementation

One of the conditions for banks wishing to participate in the Program,me such as Vnesheconombank, is that the banks provide co-financing in the amount comparable with borrowed funds (Vnesheconombank, 2012).


At present a portfolio of projects that can be financed as part of this credit line is being developed. An interest rate for end borrowers might be substantially reduced due to a relatively low cost of raising funds from the IBRD. (Vnesheconombank, 2012)


Due to their participation in the Program, the project initiators, Vnesheconombank’s customers, will be able (Vnesheconombank, 2012):

  • “To additionally raise financial resources from Vnesheconombank, the World Bank and the Global Ecological Fund in order to implement energy-efficiency projects in Russia.

  • To receive technical assistance from the World Bank and other international financial institutions in preparing and implementing energy-saving and energy efficiency projects with due regard to various economic sectors’ specifics.

  • To get a chance to use business experience and expertise of the Russian Energy Agency and engage it in order to conduct expert examination and provide organizational and technical assistance in selecting energy saving and energy efficiency projects.”

Challenges
No identified challenges.
Outcomes
No identified outcomes.
References

Vnesheconombank, n.d. Target financing of energy-efficiency and resource-saving projects. Available at: www.veb.ru/en/strategy/pmfi/vebmbrd1/.