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Overview
Information campaign
Appraisal methodology
Reducing transaction cost and risk
Operation of loan window
Local dissemination
The development of commercial banking windows required a number of
sub-activities as described below.
Information campaign
The purpose of this sub-activity
was
to increase awareness at financial institutions on the potential and returns
available through energy efficiency. The Core Country Groups undertook
new studies or built upon completed technical and economic studies for
use as marketing tools to increase efficiency lending by the financial
community.
Studies included information on
valuation of energy savings streams (versus conventional revenue streams),
existing case studies & documentation of performance, evaluations, risk
studies by market segment, benchmarking data, etc.
Appraisal methodology
This sub-activity supported the development and adaptation of technical
and financial tools to allow domestic financial institutions to easily
appraise potential returns from efficiency investments. Implementation varied by country, but included technical guidelines, key financial
indicators for evaluation, and investigation of cluster appraisal
methodologies for groups of small-scale industries.
Financing products to reduce
transaction cost and risk
The focus was the development of innovative ideas on alternative financing
products and deal structures that allow financial institutions to reduce
transaction costs and manage risk. As efficiency lending is a new
business for the institutions in all three countries, there is a need to
provide external assistance as they learn what products are best suited for
this type of lending.
This sub-activity provided
support for the investigation, evaluation and development of several
financial products best suited for this type of investment, such as
small-project bundling, escrow accounts, leases, buyback clauses, etc.
Operation of energy efficiency
loan window in selected local banks
This sub-activity developed a portfolio of efficiency projects in all
three countries through dedicated windows in domestic financial
institutions. Each Core Country Group worked with financial sector
entities to identify projects, provide assistance in customer identification
and screening, and technical/economic support in developing a portfolio of
potential investments, facilitate loan application and deal structuring,
test the appraisal methodologies, provide resources for monitoring and
supervision, and evaluate the projects.
Local dissemination
The outputs from abovementioned sub-activities were disseminated locally
in the countries. The main thrust of this outreach effort was the
results of the loan window investment projects. This effort was conducted by Core Country Team members.
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