The European Investment Bank (EIB) and the Municipality of Bucharest Sector 1 have signed a finance contract of EUR 22.6 million - the second tranche of an approved EIB loan for a total amount of EUR 136.5 million - to finance the second phase of the programme to refurbish multi-family housing in the municipality of Sector 1 in the Romanian capital of Bucharest.

Investments under the first tranche of EUR 22.5 million signed in July 2014 are underway. The project is expected to result in around 50% savings in the heating energy consumption of the buildings concerned.  It will contribute to improving the environment in terms of the reduction of emissions and pollution, with positive consequences for the living standards of the citizens of Bucharest.

The EIB financing is enabling the Municipality of Sector 1 to continue its priority investment programme as the project follows the first phase of the energy efficiency programme for residential buildings undertaken by the Municipality and financed by the EIB in 2011. In total 406 buildings with almost 19 thousand apartments will be refurbished in this second phase. This investment started in 2013 and will be carried out until 2017. The programme targets energy savings totalling some 190 GWh per year once fully implemented.

The EIB loan will help to implement the National Energy Efficiency Action Plan of Romania in the area of the thermal rehabilitation of multi-storey buildings and support Romania’s effort to fulfil its commitments under the EU Energy Performance of Buildings Directive.

The expected project cost amounts to EUR 182 million. In order to support this important energy efficiency project in Bucharest, the Bank’s contribution has been raised to 75% of the project’s cost, in line with guidelines for investments aimed at reducing energy consumption and mitigating climate change. The municipality’s own resources are expected to cover the remaining 25% of the costs.

This project represents a continuation of the EIB’s successful cooperation with various sectors of Bucharest. To date, the Bank has provided financing amounting to some EUR 327 million to finance the energy efficiency refurbishment of multi-apartment buildings in Bucharest’s Sectors 1, 2, 4 and 6.