Financing energy efficiency projectsThe St. Petersburg bank Prime Finance and the International Finance Corporation (IFC), a member of the World Bank Group, are to work together to create a special financial product: an energy efficiency financing. This new lending program will help companies modernize their production facilities and equipment and become more competitive and successful. At the same time, the implementation of energy efficiency projects by the bank's customers, i.e. companies from St. Petersburg and Leningrad Region, will have a positive impact on the development of the whole Northwest Federal District of Russia Companies participating in this program will not only have the opportunity to upgrade obsolete, energy-intensive equipment, replacing it with equipment that is more modern and reliable, but they will also be able to reduce the energy costs associated with operating this equipment. IFCs experience of working with Russian companies and research shows that this type of modernization project increases productivity, reduces spoilage and waste, and also significantly cuts expenditure on heating, electricity, gas and other energy products. If your company is interested in working with Prime Finance Bank under this program, together with IFC experts we will help you assess your existing projects, as well as identify and quantify new energy-saving opportunities. Given the constant increases in energy tariffs and the fact that energy bills account for a large proportion of the cost of production for most companies, the savings from reduced energy consumption can be considerable, sometimes even covering the loan payments. What makes this program different is that it is our job to help your company acquire modern equipment that will generate sufficient energy savings to either partially or fully cover the loan repayments. Prime Finance does not stipulate that borrowers must purchase equipment from specific manufacturers. The key factors when assessing projects are the size of the saving to be obtained by modernizing production, and whether this saving is in line with the development needs of the borrower. Prime Finance places a strong emphasis on ethical principles and provides support to companies that are implementing projects involving energy efficiency and an environmental initiative. Companies wishing to participate in the energy efficiency finance program should be forward-looking and keen to improve and develop their business with an emphasis on quality. In addition to the financial advantages, the efficient use of energy and other resources is important for environmental protection in our region. And there are already opportunities for you to take your business to a new level.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.
The Sustainable Energy Finance Program was launched in Russia in 2005 and is scheduled to run for five years. The program is designed to create a market for the financing of energy efficiency projects by Russian banks and leasing companies. It includes an investment component and advisory support, as well as measures aimed at improving the legislative framework and increasing awareness of energy efficiency. |