Energy Efficiency Project (Romania)

The Energy Efficiency Project as proposed by the Global Environment Facility (GEF), aims at enabling companies in the industrial sector, and other energy consumers, to adopt and utilize energy-efficient technologies, financed under commercial criteria, by the Romanian Energy Efficiency Fund (FREE) and co-financiers. This would put the economy on a sustainable path of lower energy intensity, and greenhouse gas emissions. The investment financing component will support the establishment, and operation of an Energy Efficiency Development and Financing Facility, which will be operated under the Free Fund, set as an independent, autonomous legal entity, in a public-private partnership, with GEF funds used to capitalize the Fund, and partially defray initial transaction costs. The project is designed to attract substantial amount of commercial co-financing, and will allow for both parallel, and direct co-financing arrangements. Initially, the Fund will focus primarily on financing projects within restructured, and/or privatized industries, based on established creditworthiness, and on minimal risk, and maximum potential criteria. Other types of financing will include equipment leasing, payment for services, and financial products which the evolving market demands. The technical assistance (TA) component will cover three broad areas: 1) capacity building activities on initial project development, workshops and seminars for partners, and training Fund Managers in energy efficiency financing; 2) Fund management activities, which includes retainer fees of the Fund Manager for the first three year; and, 3) FREE administration activities, to include its set-up and running costs during the first four years. Donor support for TA will likely come in the form of tied, or in-kind contributions for capacity building activities