the EU bank

What is the purpose of the Facility?

The purpose of the Facility is to promote energy efficiency and renewable energy in Bulgaria. The Facility targets projects by Bulgarian municipalities or other public or private sector promoters. It provides not only financial resources (loans combined with grants) but also technical assistance supporting project planning and implementation.

The Facility combines European Investment Bank (“EIB”) loans at finest terms with grants from the Kolzoduy International Decommissioning Support Fund (“KIDS Fund”). The EIB loans are channeled to eligible promoters through the network of EIB partner banks in Bulgaria participating in the Facility.

What projects can be financed?

• Project cost has to amount between EUR 40,000 and EUR 25,000,000.
• Projects should have a life of at least 4 years (mid- and long-term projects).
• The maximum implementation period of projects should normally not exceed 3 years.

What are the benefits of the EEF?

KIDS Fund Grants of 20% of the loan amount

Under the Facility, EIB loans are combined with KIDS F grants. Public sector promoters of energy efficiency and renewable energy projects, financed under the Facility are entitled to a grant of 20% of the EIB loan amount provided by the respective EIB partner bank, subject to a successful completion of the project, certified by the Facility’s Independent Energy Expert.

Private sector promoters could receive a grant of 15% of the EIB loan amount for their energy efficiency projects and 20% of the EIB loan amount for their renewable energy projects.

Long-term attractively priced EIB loans

Being a non-profit-oriented institution and due to its AAA-rating, the EIB provides loans at finest terms. The EIB financing usually amounts up to 50% of the total project cost, in exceptional cases up to 75%.

EIB loans are provided to municipalities and other public or private sector promoters through credit lines extended to EIB’s partner banks in Bulgaria participating in the EEF. The final conditions of financing remain with the partner banks.

Technical Assistance

In order to support the implementation of the Facility, the EIB has contracted an Independent Energy Expert (“IEE”) who will assist municipalities and intermediary banks in project identification, project planning and project completion.

Eligible Promoters

The purpose of the Facility is to support the financing of energy efficiency projects and renewable energy projects of Public sector promoters, including:

• the Republic of Bulgaria (represented by its Ministries);
• regions, counties or districts;
• municipalities and their associations;
• State controlled road, railway, port and airport authorities, public service/works concession holders (including under PPP structures) and agencies guaranteed by these authorities;
• Public or private companies undertaking works or services to implement the sub-projects, including Energy Service Companies, operating under Article 20 and 21 of the Energy Efficiency Act of Bulgaria (ESCOs).

Eligible sub-sectors

Projects eligible for financing under the Facility would be all financially sound projects that support the purpose of the Facility including in particular, but not limited to, projects in the following sectors:

• Energy Savings / Energy Efficiency in Buildings
• Small Scale Co-Generation of Heat and Power
• Wind Power
• Power Distribution
• Natural Gas Distribution
• Solar energy: Photovoltaic and Thermal Solar Panels
• Hydro-Electric Plants
• Geo-Thermal

District Heating Detailed sector list is provided in “Technical eligibility checklist”.