Where the impacts of the investment may be experienced.
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating: A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2016-06-15
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: BANDESAL
The holder of the loan, grant, or other investment.
The service or industry focus of the investment. A project can have several sectors.
- Climate and Environment
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 21.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 41.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
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Energy Savings Insurance for private energy efficiency investments by Small and Medium-Sized Enterpr
From the GCF:
This project will focus on improving access to financing for SMEs in El Salvador to replace energy-intensive motors, air-conditioning, refrigeration and boilers, increasing energy efficiency and developing a new market in energy services.
The project will develop a package of measures to encourage energy efficiency investments by SMEs in El Salvador. El Salvadoran SMEs, making up over 99% of the country's enterprises, suffer from obsolete equipment, the result of low levels of investment, and limited access to long-term credit. There are no Energy Services Companies (ESCOs) and no market for financing longer-term energy efficiency projects, which are perceived as risky, unstructured investments. The energy savings insurance scheme developed will include risk-sharing contracts, independent technical validation, insurance and specific financial instruments, significantly lowering investment risks for banks and SMEs.
GCF will loan USD 20M to BANDESAL (the National Development Bank of El Salvador), who will add USD 20M of their own resources. The GCF will also provide a grant of USD 1.7M to BANDESAL. This will contribute to a credit line available for local banks to fund SME energy efficiency projects at concessional rates, to be repaid through future energy savings. Loan repayments will finance additional sub-projects thanks to the use of a revolving fund. The equipment targeted for upgrade is widely used and has large energy savings potential.
ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND
The Independent Redress Mechanism (IRM) is the independent complaint mechanism for a person or people who have been or believe they are likely to be adversely affected by a project or programme funded by the Green Climate Fund. If you submit a complaint to the IRM, it may seek to address the issues raised by facilitating a problem-solving dialogue or, if that is not possible, conducting an independent investigation into whether the GCF has complied with its environmental and social policies. The IRM is newly created and is still in the process of developing its procedures and website. More information about the IRM and how you can file a complaint is forthcoming. You can contact the IRM at firstname.lastname@example.org