ESIF Energy Efficiency in Public Sector Buildings

1. Borrowers

Eligible borrowers are entities that, prior to submitting a loan application, have obtained a Decision on Financing issued by the Ministry of Construction and Physical Planning, and they can be:

  • units of local or regional government (hereinafter: ULRG);
  • public institutions or institutions engaged in social activities;
  • government bodies, ministries, central government offices, state administrative organisations and state administration offices in counties;
  • religious communities engaged in social activities;
  • associations engaged in social activities with public powers regulated by special laws.

Where public institutions or institutions engaged in social activities have obtained a Decision on Financing from the Ministry of Construction and Physical Planning, their founders are also eligible as borrowers.

2. Purpose of loans

The proceeds of loans are intended for the completion of funding plans for projects implemented by grant beneficiaries who have obtained a Decision on Financing under the Invitation to Submit Project Proposals for the Specific Goal 4c1 “Reduction of Energy Consumption in Public Sector Buildings”.

 

Loans are earmarked for the financing of implementation costs of projects approved under the Invitation for “Energy Renovation and Use of Renewable Energy Sources in Public Sector Buildings” that include:

  • part of the project that will be financed through a grant and this loan – eligible expenses,
  • expenses that are part of the project pursuant to the project list of expenses approved by the Environmental Protection and Energy Efficiency Fund but that are not eligible for financing through a grant.

3. Manner of implementation

HBOR implements this loan programme directly.

4. Loan amount, disbursement period and repayment

Loan amount
  • HRK 100,000 minimum, HRK 60,000,000 maximum
Disbursement period
  • up to 36 months
Grace period
  • up to 12 months
Repayment period
  • up to 14 years, grace period included, in monthly, three-monthly or six-monthly instalments

5. Interest

Interest rate is determined in accordance with the degree of development of the area of investment:

 

ULG classified in groups I, II, III or IV (supported areas)* or hill or mountain areas** or the islands***
  • 0.1% p.a., fixed
ULG classified in groups V or VI*
  • 0.25% p.a., fixed
ULG classified in groups VII or VIII*
  • 0.5% p.a., fixed

* Pursuant to the Act on Regional Development of the Republic of Croatia (Official Gazette of the Republic of Croatia, Nos. 147/14 and 123/2017) and all subsequent amendments
** Pursuant to the Act on Hill and Mountain Areas (Official Gazette of the Republic of Croatia, Nos. 12/02, 32/02, 117/03, 32/05, 90/05, 80/08, 148/13 and 147/14) and all subsequent amendments
*** Pursuant to the Islands Act (Official Gazette of the Republic of Croatia, Nos. 34/99, 32/02 and 33/06) and all subsequent amendments

6. Fees

Under this loan programme, borrowers are exempt from paying all fees that are usually charged on loans committed.

7. Security

As security for due fulfilment of loan obligations, HBOR accepts:

  1. ULRG – bills of exchange and debentures;
  2. public institutions or institutions engaged in social activities – bills of exchange and debentures, owners’ guarantees, lien on movable and immovable property;
  3. ministries, central government offices, state administrative organisations and state administration offices in counties – bills of exchange and debentures, lien on movable and immovable property;
  4. religious communities engaged in social activities – bills of exchange and debentures, lien on movable and immovable property;
  5. associations engaged in social activities with public powers regulated by special laws – bills of exchange and debentures, lien on movable and immovable property.

As an exception, depending on the size and quality of project, HBOR can also consider other collateral customary in banking.

 

All costs arising out of the establishment and registration of collateral as well as the amendments to the registered collateral are borne by the borrower and/or the issuer of collateral.

8. Miscellaneous

On 28 December 2017, the Croatian Bank for Reconstruction and Development and the Ministry of Regional Development and EU Funds entered into the Funding Agreement for the Implementation of Financial Instrument “ESIF Energy Efficiency in Public Sector Buildings”.

 

Pursuant to the above Agreement, the Ministry of Regional Development and EU Funds as the Managing Authority for the Operational Programme “Competitiveness and Cohesion 2014-2020” (OPCC) allocated the contribution of HRK 190 million from the European Structural and Investment Funds (ESIF) to this financial instrument and directly authorised the Croatian Bank for Reconstruction and Development for its implementation.

Irregularity reports and complaints on loan rejection decisions made by HBOR can be submitted to the email address: esif.nepravilnosti@hbor.hr.

contacts

you may also be interested in

Permanent Working Capital

Financing Permanent Working Capital for Business Intensification ...

more