The Croatian Bank for Reconstruction and Development, in cooperation with the Ministry of Regional Development and the European Union funds and the Ministry of the Economy and Sustainable Development provided additional HRK 175.2 million for the implementation of the financial instrument „ESIF Loans for Public Lighting“. With this increase, a total of more than HRK 327 million of very favourable funds for investment in public lighting have been made available to the public sector. Due to high demand and interest, the initially secured amount of HRK 152 million was completely exhausted in a very short time.
INTEREST RATES FROM 0.1 PERCENT
Funds of the financial instrument „ESIF Loans for Public Lighting“ are intended for investments that will result in a reduction of electricity consumption in the project units of public lighting of final recipients of at least 50% compared to the current situation, i.e. in relation to reference energy consumption for project units of public lighting.
Under this instrument, local government units will be granted loans ranging from HRK 500 thousand to HRK 50 million at low interest rates determined in accordance with the development index of the local government unit in the area of which the project is implemented: 0.1 percent for the least developed areas (groups 1 – 4), 0.25 percent for medium developed areas (groups 5 and 6) and 0.5 percent for the most developed areas (groups 7 and 8). Loans can be granted with a repayment period of up to 10 years, including up to 6 months grace period.
In addition to very low interest rates, the added value of „ESIF Loans for Public Lighting“ is the exemption from paying all fees, which makes these loans the most favourable source of funding for energy savings in the public lighting system of local government units.
Since the beginning of the implementation of this FI, 31 loans have been contracted in the total amount of HRK 135.92 million, and on the basis of this FI, final recipients have achieved a reduction of electricity consumption for public lighting at the level of the Republic of Croatia on average by 78%.
PREPARATION OF PROJECT DOCUMENTATION FREE OF CHARGE
HBOR has provided grants to public and private sector investors planning to invest in energy efficiency, renewable energy sources or public lighting in the total amount of more than EUR 2 million thanks to the implementation of the ELENA programme to finance project documentation (business plan, energy audit, main project, etc.) and related advisory services for energy efficiency projects.
Through this programme, consent has been issued so far for the preparation of project documentation for 54 projects in the total amount of HRK 9.2 million.
Technical assistance services are provided by external experts (consultants) selected by HBOR through the public procurement procedure.