What is BelSEFF?
The Belarus Sustainable Energy Finance Facility (BelSEFF) is a USD 50 million credit line initiated by the European Bank for Reconstruction and Development (EBRD). BelSEFF provides dedicated credit lines to Belarusian participating banks for on-lending to private and public Belarusian companies. The Facility finances energy efficiency and small-scale renewable energy projects in eligible sectors.
What are the main types of projects that can be financed?
- Replacement of energy intensive production equipment and energy supply systems – compressors, boilers, ( installations of local cogeneration of electricity and heat ) in an enterprise, modernization of processes , implementation of advanced control systems of energy consumption.
- Modernization of commercial real estate facilities ( administrative , hotel, production buildings and premises, warehouses) – thermal insulation, replacement of windows and doors, heating and air condition systems, etc.
- Renewable energy sources – wind turbines (new), small hydro stations, burning of biomass for heat and/or electricity generation, production and use of biogas/landfill gas, use of geothermal and solar energy for heating and electricity production, use of heat pumps.
- Working capital for producers and suppliers of energy efficient equipment and materials – producers of energy efficient windows, thermal insulating and energy efficient construction materials, ventilation systems, .etc energy efficient production equipment ) etc.
- Investments into the creation, modernization and extension of production of energy efficient equipment and materials.
- Standard energy efficient equipment and technologies. Small loans (less than 400 thousand USD) can be approved through a simplified procedure based on the list of standard equipment and technologies ( LEME/LESI ).
What is LEME/LESI?
Small projects can be approved through a simplified procedure based on a list of standard equipment and technologies (List of Eligible Measures and Equipment or LEME / List of Eligible Suppliers and Installers or LESI). The purpose of this approach is to accelerate and simplify the approval procedure for small energy efficiency projects. LEME is a list of approved materials and equipment capable of providing at least 20% energy savings compared to the technological standards of the Belarusian market. The list includes equipment, which costs less than 400 thousand USD for a unit/package.Associated LESI list includes suppliers and installers of the equipment, which are authorized for carrying their activities in Belarus.More detailed information can be found in the section List of standard technologies being financed (LEME/LESI) .
What are the main requirements to the BelSEFF projects?
- Industry and commercial buildings projects have to achieve at least 20% energy savings per unit of output compared to the baseline as a result of the project implementation.
- Maximum increase of the capacity/productivity after replacement of the existing equipment is 2 times compared to the original capacity/productivity.
- Eligible renewable energy projects shall have a positive Net Present Value calculated over a ten-year period by using an 8% discount rate applied to the underlying cash flows denominated in hard currency.
- Purchase of second-hand equipment is forbidden unless otherwise is agreed by EBRD.
Which projects cannot be financed by BelSEFF?
BelSEFF only finances projects intended for investments into energy efficiency and renewable energy. The following are excluded even if the project relates to energy efficiency or renewable energy investments: companies engaged in the production, marketing, distribution (or similar activities) of tobacco, hard liquor, alcohol, gambling, weapons and other activities listed in the "Environmental and Social Exclusion list of the EBRD" , even though proposed projects concern energy efficiency or renewable energy.
How many projects were financed through BelSEFF so far?
As of 1 November 2017, 59 projects were financed by BelSEFF through four Belarussian partner banks for a total loan amount of almost $28.316 million. This includes 10 renewable energy projects.
What should I do if the technology/material I selected is not included in the BelSEFF List of Eligible Materials and Equipment?
The materials and equipment included on the BelSEFF List of Eligible Materials and Equipment (LEME) meet the specific energy savings and quality requirements of the BelSEFF Programme. If your preferred material or equipment is not included in our list, just send the technical data/specifications of materials/equipment and supplier details to us. We will examine/verify the equipment/material for compliance with BelSEFF requirements and, if suitable, will include them in our List.
Are there any restrictions on the country of origin of the proposed technology or equipment?
No, there are no such restrictions. The equipment can be produced both in Belarus and in any other country.
What are the loan conditions?
BelSEFF is disbursed through participating financing institutions (Participating Banks: Belinvestbank JSC , MTBankCJSC , Belgazprombank JSC , Bank BelVEB OJSC , BPS-Sberbank ). Every bank has its own internal policy for establishing clients' creditworthiness, interest rates, repayment conditions, collateral coverage, own participation etc. BelSEFF has no influence on the loan conditions offered by partner banks.
How can I apply for a BelSEFF loan?
There are two ways to apply:
- You can contact a BelSEFF partner bank, get advice on loan conditions, and fill in the necessary application forms. The BelSEFF partner banks will then liaise with the BelSEFF team to finalize your project documents.
- Alternatively, you may fill in the BelSEFF standard application form ( download here ) and e-mail it to the BelSEFF team. We will contact you and guide you through the process.
For additional information, please refer to the Application section .
Are any grants/ interest rate subsidies available for borrowers within BelSEFF?
No, the program does not provide such options.
We are not clients of any of the listed BelSEFF partner banks. Can we apply for a financing within BelSEFF?
Yes, you can. However, a loan within BelSEFF can only be provided by one of the five Belarusian partner banks. We propose you to contact the banks directly to start the negotiations. Alternatively, you can contact the BelSEFF team, we will perform a preliminary project assessment and assist you in liaising with the partner banks.
Is a major regional state controlled energy company eligible potential borrower?
The Framework does not target projects in the Power and Energy sector which is mainly state-owned. Only in exceptional cases, where the state-owned power or energy company is clearly commercially operating will it be considered for financing under the Framework.
What is the maximum project size for financing under the BelSEFF?
No individual loan for a project or a group of projects with any one borrower may exceed USD 5 million, unless otherwise expressly agreed by the EBRD. However, if a project or a group of projects exceeds USD 5 million, the Belarusian participating bank may complement the loan under the BelSEFF with own funds in order to finance such a project.
Is there a possibility to finance new facilities under BelSEFF? E.g. new logistic facility, which is to be equipped with an energy efficiency ventilation/cooling/heating equipment.
This facility is not for green field investments, thus investments in new production facilities are not included in the scope of the facility except for capacity expansion of existing production facilities. The capacity expansion should be less than double the current capacity.
Can a project include supply and installation of several items from LEME/LESI schedules, worth together more than USD 400 thousand?
Yes, in this case a borrower can opt for several loans under LEME/LESI approach or, alternatively consider a bigger single loan requiring an Energy Efficiency Assessment and potentially leading to better energy efficiency results.