The European Investment Bank (EIB) is lending EUR 70 million to the Municipality of Sector 6 in Bucharest to finance energy efficiency refurbishments of multi-storey residential buildings in Romania’s capital.
EIB Vice-President Matthias Kollatz Ahnen, with responsibility for lending in Romania, stated: “EIB funds, provided directly to the Municipality of Sector 6 in Bucharest, will help to reduce by roughly 50% the energy consumption of the buildings covered by this thermal rehabilitation project. The total energy saved will amount to about 160 GWh a year once the programme is fully implemented. This will help Romania, in line with its international commitments, to reduce its greenhouse gas emissions and increase the quality of life of Bucharest’s citizens”.
The EIB loan will co-finance (50% of the project cost) the thermal rehabilitation of 273 multi-storey residential buildings over the period 2011–2013. The additional funding to complete this multi-annual programme will be sourced from state subsidies allocated by the Ministry of Regional Development and Tourism, as well as other municipality funds. This project will support the implementation of Romania’s National Energy Efficiency Action Plan which, through the national legislation, transposes the provisions of the EU Energy Performance of Buildings Directive. Apart from energy savings, the project also increases the quality of life of Bucharest’s residents in terms of improving the image of the buildings under this programme. The energy savings cover 30% of the investment cost in net present value terms at current tariffs which are subsidised. Were tariffs to fully reflect the costs of heat generation, the energy savings could increase to about 60-70% of the investment cost, reflecting the overall savings including subsidy costs achieved by the project.
The EIB supports the EU energy and climate change policy. Support for projects increasing energy efficiency, particularly to reach the binding EU target of a 20% reduction of greenhouse gas emissions below 1990 levels and a 20% increase in energy efficiency by 2020, represents a significant tool in this regard. To date in 2010, the Bank has lent EUR 1.3 billion for energy efficiency projects (EUR 1.5 billion in 2009 and EUR 730 million in 2008).
Background:
The EIB, the European Union’s bank, finances economically viable investment projects that contribute towards the integration, balanced development and economic and social cohesion of the EU Member States.
Since 1990, EIB lending in Romania has reached approximately EUR 8 billion to finance investment projects covering all the country’s major economic sectors, ranging from basic infrastructure in the fields of transport, health, energy and the environment to manufacturing and services, including support for small and medium-sized enterprises via local financial institutions.