€7 million credit provides long term financing for new projects

The EBRD is supporting the development of the market in Bulgaria to promote energy efficiency, with a loan to the Bulgarian ESCO Fund – Energetics and Energy Savings Fund SPV (EESF), a special purpose company to finance the energy services business of Enemona AD, a construction and engineering group.

Typically the fund has supported energy efficiency projects in kindergartens, schools, hospitals and other public buildings.

The €7 million loan, to be provided in two tranches of €3 million and €4 million, will help provide Enemona with the long-term capital it needs to expand its ESCO (Energy Service Company) business in Bulgaria which provides energy saving services to clients in the public and private sectors. The proceeds will be used to purchase receivables from energy performance contracts carried out by Enemona, the Fund’s majority shareholder.

Since its establishment in 2006 EESF has purchased receivables under more than 20 Energy Performance Contracts (EPC) with a total nominal value exceeding BGN 8 million.

James Hyslop, EBRD Director for Bulgaria, said that this is an important project for the Bank under its Sustainable Energy Initiative aimed at addressing Bulgaria’s energy intensity. The project will have an important demonstration effect which we hope will play a catalytic role by encouraging other private sector investors to participate in the ESCO business in Bulgaria.

This loan will be crucial in enabling Enemona to scale up its energy services business in Bulgaria said Dichko Prokopiev, Chairman and Chief Executive Officer of Enemona.

Enemona is one of the first Bulgarian ESCOs and among the pioneers implementing an EPC with guaranteed results in municipal buildings. Under the EPC ESCOs enter into contracts with the final beneficiaries whereby the ESCO company is responsible for designing, implementing and financing a project for decreasing the overall energy consumption of the beneficiary. The ESCO company is repaid through the project savings which are defined in the EPC.

The Bulgarian government has already undertaken several key measures to combat energy wastage in the country where energy consumption per unit of GDP remains well above the average for other EU states.

The EBRD has supported these steps with investments in the Bulgarian energy efficiency sector. Recent projects have included credits to finance hydro power plants, an increase of grant funds for residential energy efficiency and moves to support the carbon trading market linked to renewable energy projects.

The EBRD is one of the largest investors in Bulgaria with some €1.5 billion committed to projects across the country. Working with its many partners, the Bank has mobilised more than €5.8 billion for projects in Bulgaria