EU/EBRD

Municipal Finance Facility - Energy Efficiency

ENVIRON CONSORTIUMIldikó Adamecz Raj

Partner, Director Corporate Finance

BDO Hungary Advisory Ltd.

Budapest, June 28-29th, 2010.

Aim: supporting municipalities’ energy efficiency investments through joint loan and incentive payment

Financial framework of EBRD loan component: 25 M EUR

Financial framework of EU incentive component : 5 M EUR

Project size: max. 5 M EUR

EU incentive payment: max. 20%

Participating Bank(s): Raiffeisen Bank Zrt.

The MFFEE window

Beneficiaries of the MFFEE scheme

Final beneficiaries: municipalities

Borrowers:• municipalities• municipality owned companies• public utility companies• private companies providing public services• ESCO companies

Beneficiaries of the EU subsidies: asset manager of the development installation

Eligible projects

1st component: Municipality infrastructure:• district heating systems• co- and tri-generation• public transport• public utilities• public lighting

Savings minimum: 25%.

Eligible projects

2nd component: Municipality buildings:• modernization/upgrading of heating systems• thermal insulation of buildings• replacement of doors/windows• modernization of interior lighting• renewable energy (solar and geothermal energy)

Savings minimum: 30%

Responsibilities of Project Consultants

• Project-generation jointly with the Bank• Formulation of project pipeline• Validation of savings plans• Validation of project expenses• Validation of project returns• Preparation of business plans according to EBRD

standards that will help the bank with the loan approval processes

The benefits of MFFEE

• Fast decision-making• The municipalities do not bear the direct costs of

preparation• Own funds are not required• Pre-financing from own funds is not required• Loan repayment can be financed from savings• New equipment/new technology without high

investment costs• Reduced maintenance costs

Contact information:

ENVIRON Consortium C/O Tebodin Hungary Kft.

1119 Budapest, Bikszádi u. 6/a.

Office Phone.: +36 1 878 1853

Office fax.: +36 1 878 1854

Email: karoly.oelberg@mffee.hu;

ildiko.raj@bdo.hu

Honlap: http://www.mffee.hu/

Thank you for your attention!