FAQ

  • Q: Who can apply for financing?

    A: The Facility is targeted at locally incorporated small and medium enterprises (?SME?). Companies with foreign ownership are eligible for financing, if they meet the criteria in the previous sentence.
     
  • Q: How can one apply for financing?

    A: The Client should contact either the Project Consultant (PC) or the dedicated banker in the EBRD Resident Office in the respective country. They will assess the proposed project and will advise the Client on whether the project is eligible for financing under the Facility. If this turns out to be the case, a more detailed evaluation of the project will be carried.  
     
  • Q: What projects are eligible for financing?

    A: WeBSEDFF is targeted at a broad range of renewable energy projects (small hydro power plants, wind farms, photovoltaic installations, etc.) as well as industrial energy efficiency projects. A full list of the eligible projects is available here.
     
  • Q: What project development stage is expected when applying for financing?

    A: At the time of applying for financing the Client should be able to present enough information about the technical design of the project, the associated costs and the implementation schedule. It will be good if some (or all) of the required permits, licenses and other documentation are already obtained. For Industrial energy efficiency projects, an Energy Audit can be performed by the Project Consultant free of charge for the Client in order to help in defining the scope and eligibility of the proposed project.
     
  • Q: What documentation is required when applying for financing from this facility?

    A:  For renewable energy project the Client is expected to submit at least a (pre)feasibility study and a business plan. There is no need for the Client to have final (detailed) technical documentation or all required licenses and permits at the time of application. In addition to that and if applicable the Client needs to submit the concession needed for the implementation of the project in order for the EBRD to establish whether it meets the requirements.
     
  • Q: Is an Energy Audit (EA) a precondition for the application of an industrial energy efficiency project?

    A: If Energy Audit is already carried out, it would be an advantage to the project. However, it is not a pre-requisite for the application. If the project is initially assessed as promising, an Energy Audit can be performed by the Project Consultant free of charge for the Client.
     
  • Q: What technical eligibility criteria must the projects meet?

    A: For small hydro power plants a minimum utilization factor of 30% is expected, implying equivalent annual operating hours (at full capacity) in excess of 2,600 hours. For wind power projects, minimum equivalent annual operating hours of 2,200 hours would be expected. For industrial energy efficiency projects energy savings of at least 20% of the base case energy consumption are required.
     
  • Q: What economic and financial eligibility criteria must be met by the projects?

    A: There are no predefined economic or financial eligibility criteria. In general, the Clients will be expected to contribute enough capital to the project, in order to avoid excessive leverage.
     
  • Q: Can the minimum and maximum loan amount (EUR 2 million and EUR 6 million, respectively) fall below or respectively exceed the defined values?
     
    A: No. However, in countries where the EBRD has not provided credit lines for renewable energy and industrial energy efficiency projects to local banks, the minimum project amount will be reduced to EUR 1 million. At present, such countries are Albania, Croatia, FYR Macedonia and Montenegro.
     
  • Q: What is the interest rate for loans from this Facility?
     
    A: Depending on project itself, borrowers negotiate directly with EBRD about all financial conditions (maturity, interest rate, grace period, etc.).
     
  • Q: Does the facility offer grace periods?
     
    A: Grace period is foreseen. In general, the grace period is defined to cover the period prior to the commissioning of the project for operation plus up to 6 months. However, borrowers will negotiate directly with EBRD about the grace period, as well as all other financial conditions.
     
  • Q: What is the maturity for the loans from this Facility?
     
    A: In general, maturity (including grace period) for all projects is up to 12 years and depends on the specific features of each individual project. However, borrowers will negotiate directly with EBRD about maturity as well as all other financial conditions.
     
  • Q: What is the minimum equity contribution from the borrower?
     
    A: The equity contribution depends on the overall financial performance of the project and the Client. This is subject to individual negotiation with EBRD.
     
  • Q: What is the security/collateral that EBRD expects from the borrower?
     
    A: This is subject to individual negotiation with EBRD.
     
  • Q: How long can it take before the loan is approved?
     
    A: Pre-investment phase, which starts with preliminary discussions and ends with signing of the loan agreement, may take between 4 to 9 months.
     
  • Q: What is the advantage of this loan facility compared to commercial loans?
     
    A: The advantage of the facility is the incentive payment to the Client, calculated from the avoided CO2 emission and defined as percentage of the loan amount. In addition to that, the EBRD covers all costs related to the due diligence on the project. Normally, these costs are covered by the Clients.
     
  • Q: What is the maximum incentive payment which can be approved?
     
    A: For renewable energy projects, the incentive payment may be up to 15% of the loan amount in countries with Feed-In-Tariffs and up to 20% of the loan amount in countries without Feed-In-Tariffs. For eligible industrial energy efficiency projects, the incentive payment is capped at 20% of the loan amount.
     
  • Q: What conditions must be met for getting the incentive payment?
     
    A: The incentive payment is approved upon positive opinion of the Verification Consultant (VC). The (VC) verifies project performances upon completion of the project implementation. This verification is free of charge for the Client (project sponsor).
     
  • Q: When can the borrower disburse the approved loan amount?
     
    A: The disbursement depends on the agreed use of the EBRD financing. It can be used for purchase of equipment, civil works, etc. In general, the EBRD will expect that the Client contributes all equity capital first before any part of the loan is disbursed. Subsequent disbursement will be made in line with the project implementation process.
     
  • Q: When the incentive payments are approved, are they directly paid to the borrower or not?
     
    A: Incentive payments will not be paid directly paid to the borrower. Instead, they will be used to reduce the outstanding loan principal. This will reduce both the interest payments and the principal repayments that the borrower will have to make after the project completion.
     
  • Q: Are PC?s services in the loan approval process charged to the Borrower?
     
    A: The services of PC in the loan approval process are free of charge to the Borrower.
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