The seven-year loan will be used to develop energy performance-based projects, attracting both financing and expertise from the private sector by engaging Energy Service Companies (ESCOs).
Energy Performance Contracts will be implemented primarily by a Bulgarian engineering and construction firm Enemona.
Through the Bank’s loan, FEEI will provide the resources and skills needed to finance energy-saving initiatives for its clients, mainly Bulgarian municipalities and state-owned companies, at a time when local funding remains scarce.
EBRD director for Bulgaria Daniel Berg said the fund will support sustainable energy projects based on energy performance contracts.
"This scheme can generate energy efficiency investments that municipalities operating under tight budgets would never be able to fund themselves. As a result, they can achieve improvements at no initial cost, while the investments are recovered from the obtained energy and cost savings," Berg said.
The projects will range from installing energy efficient public lighting and introducing combined heat and power generation plants to boiler updates and thermal insulation of walls and windows replacement in the municipal sector.
