During only a year, about 60 Moldovan companies intending to replace the outdated energy-consuming equipment by modern energy efficient one have applied to the Moldovan Sustainable Energy Financing Facility (MoSEFF). Eighteen companies have so far obtained loans for implementing about 28 projects. The amount of the loans varies from several thousands to up to 2 million euros, project manager Tino Mahler said in a news conference held at Info-Prim Neo.
The companies represent furniture manufacturing, food and wood-processing industries as well as construction, agro-industrial, IT and other sectors of industry. Twelve small and medium-sized projects have already been completed in 2010 and early 2011. The MoSEFF team has approved loans for about 8 million euros and grants of about 1.26 million euros. Among the companies that received loans within MoSEFF are: Covoare-Ungheni, Orhei-Vit, Moldagrotehnica, Ungheni-Vin, Stejaur, Coloteia, and others.
Tino Mahler reminded that the loans under the EBRD Financing Facility are issued through 3 partner banks of MoSEFF – Moldova-Agroindbank, Moldindconbank and Banca Comerciala Romana – which assume the lending-related risks. The interest rate is the market one.
Payback period for investments under MoSEFF is 3-7 years. Some projects are able to recover the invested capital even in less than 2 years. After an independent audit of the completed projects performed by the Austrian Company ALLPLAN, such companies can receive grants amounting to 10%-20% of the MoSEFF loan. The actual percentage of grant depends on the volume of energy savings and CO2 emissions reduction of a project.
Tino Mahler said that free technical assistance and energy consulting to the companies is provided by the German Consulting Company Fichtner in cooperation with local experts. Co-financing for energy audits and detailed planning is possible within the ТАМ/BAS Program of EBRD in Moldova.
The EBRD credit line provides 20 million euros for such projects. The companies can still apply to the program. For private companies, it is open until the end of July 2011.
Asked to what extent the Moldovan companies are ready to implement energy-efficiency projects, Tino Mahler said the Moldovan companies are using 3 times more energy on average to produce the same output as companies in the EU. Moldovan enterprises have difficulties to upgrade the outdated and inefficient equipment due to lack of capital after economic crisis and limitations in obtaining credits. That is why this kind of loans attracts their special interest.
“A problem that became more evident is that some of the companies do not know exactly what they want, do not submit well-thought-out project proposals and do not determine their impact. If the given problem is solved, the projects for financing would be approved in a shorter period of time. The companies, partner banks and we, who ensure the management of the project, will have to benefit,” said Tino Mahler.
He also said that until now the approved projects were aimed at increasing the efficiency of the classical sources of energy. “We are waiting for the legal framework to be improved so that we are able to finance projects to produce renewable energy with the help of photovoltaic technology, hydroelectric and wind plants,” said the project manager.
The European Bank for Reconstruction and Development (EBRD) has launched the Moldovan Sustainable Energy Financing Facility (MoSEFF) in February 2010. Its main objective is financing of the private companies modernization for reducing energy cost and improving competitiveness of their production.
The EBRD is one of the largest investors in Moldova. The value of the financial assistance provided is 460 million euros for different projects implemented in agriculture, the banking sector, the SME sector and other areas.
