Project description

The establishment of a Western Balkan Green Economy Financing Facility III (“WB GEFF III” the “Facility” or the “Programme”) in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia (collectively, the “Western Balkans” or the “WB”) for total financing of up to €170 million to Partner Financial Institutions (PFIs) eligible for financing green investments in the residential sector and public in line with the Bank’s Green Economy Transition (“GET”) approach. The Facility is supported by technical cooperation (“TC”) and incentive payments, as foreseen by the framework of the Green Economy Financing Facility (“GEFF”).

the project’s objectives

The project aims to support green economy investments in energy efficiency and renewable energy measures eligible under the GET approach. The program builds on the momentum created so far under the Western Balkans Green Economy Funding Mechanisms I and II by expanding the end-beneficiaries to construction companies for the construction of energy-efficient residential buildings eligible for GET and the public sector to accelerate the green transition in the market-level economy in the region.

Impact of transition

ETI rating: 60

The facility contributes to the quality of green IT by helping to address the high energy and carbon intensity of the residential and public sectors in the Western Balkan region by developing the capacity of local PFIs to provide green loans that stimulate Western Balkan transition to a sustainable, low-carbon and climate-resilient green economy. All of the funding allocated to IFPs under this Framework must be used for projects that are 100% eligible for GET.

Customer information

The PFIs will be local financial institutions (commercial banks, microfinance institutions and other credit institutions) established and operating in the Western Balkan countries.

EBRD Financial Summary

€120,000,000.00

Up to EUR 170,000,000

Total project cost

€170,000,000.00

Up to EUR 170,000,000

Additionality

Additionality is achieved by combining the necessary longer-term financing, which is not available from commercial sources to finance green investments, with technical support, targeted investment incentives and policy dialogue in a package which promotes investments in the green economy in the residential and public sectors. The EBRD remains the only IFI in the region that comprehensively supports green investments in targeted sectors. The WBGEFF III also aims to introduce a modular approach to gender additionality.

Environmental and social summary

Categorized FI (ESP 2019): It is expected that FFIs under this Framework who are existing clients of the Bank will already be familiar with the EBRD E&S requirements applicable to FIs. Any new PFI likely to participate in this framework will be required to complete the E&S Due Diligence Questionnaire to be returned to ESD for review. Recipients funded under this facility will be required to comply with national environmental, health and safety and labor standards requirements and E&S eligibility criteria for solar, hydroelectric, wind, bioenergy and geothermal, where applicable, as well as other GET eligibility criteria. in accordance with the GET policy statement. This will be confirmed to PFIs by a facilities consultant engaged by the EBRD. All PFIs covered by the framework will be required to comply with EBRD Performance Requirements 2, 4 and 9, adopt and implement EBRD E&S Risk Management Procedures for Micro Enterprise Lending , SMEs and corporates and submit annual environmental and social reports to the Bank, including reports on sub-projects and their GET benefits.

Technical Cooperation and Grant Financing

The Facility will be supported by a donor-funded technical cooperation program of up to €6.4 million, implemented by a Facility consultant. The initial €4.5 million of TC is provided by the European Union (EU) through the Western Balkans Investment Framework (WBIF) and the Government of Japan through the Cooperation Fund Japan-EBRD.

Company details

N / A

PSD latest update

May 04, 2022

Understanding Transition

More information on the EBRD’s approach to measuring transition impact is available here.

Professional opportunities

For business or procurement opportunities, contact the client company.

For business opportunities with the EBRD (non-procurement related), contact:

Tel: +44 20 7338 7168
Email: [email protected]

For public sector projects, visit BERD Procurement:

Tel: +44 20 7338 6794
Email: [email protected]

General Information

Specific requests can be made using the EBRD’s inquiry form.

Environmental and Social Policy (ESP)

The ESP and associated performance requirements (PRs) set out how the EBRD implements its commitment to promote “sustainable and environmentally responsible development”. The PSE and PRs include specific provisions for clients to comply with applicable requirements of national public information and consultation laws as well as establishing a grievance mechanism to receive and facilitate the resolution of concerns. and stakeholder grievances, particularly regarding the environmental and social performance of the client and the project. Proportionate to the nature and magnitude of a project’s environmental and social risks and impacts, the EBRD further requires its clients to disclose information, as appropriate, on the risks and impacts arising from the projects. or that they undertake extensive consultations with stakeholders and consider and respond to their feedback.

Further information on the EBRD’s practices in this regard can be found in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all Bank activities in accordance with international best practices. Integrity due diligence is performed on all Bank clients to ensure that projects do not pose unacceptable risks to the integrity or reputation of the Bank. The Bank believes that identifying and resolving issues during the approval stages of project appraisal is the most effective way to ensure the integrity of Bank transactions. OCCO plays a key role in these safeguarding efforts and also helps monitor integrity risks in projects after investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, inside or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email at [email protected] All reported issues will be handled by OCCO for follow-up. All reports, including anonymous reports, will be investigated. Reports can be written in any language of the Bank or of the Bank’s countries of operations. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders in order to promote a better knowledge and understanding of its strategies, policies and operations after its entry into force on January 1, 2020. Please see the Access Policy page to the information to find out more. what information is available on the EBRD website.

Specific inquiries can be made using the EBRD’s inquiry form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the client or the Bank are unsuccessful (for example through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organizations can seek to address their concerns through the Independent Project Accountability Mechanism (IPAM).

IPAM independently investigates project issues that are suspected of causing (or likely to cause) harm. The objective of the mechanism is to: support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; determine whether the Bank has complied with its environmental and social policy or the project-specific provisions of its access to information policy; and, where appropriate, to remedy any existing non-compliance with these policies, while preventing any future non-compliance on the part of the Bank.

Please visit the Independent Project Accountability Mechanism webpage to learn more about IPAM and its mandate; how to submit a request for review; or contact IPAM by email [email protected] for advice and more information about IPAM and how to submit an application.