FP009
Energy Savings Insurance (ESI) for private energy efficiency investments by Small and Medium-Sized Enterprises (SMEs)
Energy Savings Insurance (ESI) for private energy efficiency investments by Small and Medium-Sized Enterprises (SMEs)
Improving access to financing for SMEs in El Salvador to replace energy-intensive motors, air-conditioning, refrigeration and boilers, increasing energy efficiency and developing a new market in energy services.
The project will develop a package of measures to encourage energy efficiency investments by SMEs in El Salvador. El Salvadoran SMEs, making up over 99% of the country’s enterprises, suffer from obsolete equipment, the result of low levels of investment, and limited access to long-term credit. There are no Energy Services Companies (ESCOs) and no market for financing longer-term energy efficiency projects, which are perceived as risky, unstructured investments. The energy savings insurance scheme developed will include risk-sharing contracts, independent technical validation, insurance and specific financial instruments, significantly lowering investment risks for banks and SMEs.
GCF will loan USD 20M to BANDESAL (the National Development Bank of El Salvador), who will add USD 20M of their own resources. This will contribute to a credit line available for local banks to fund SME energy efficiency projects at concessional rates, to be repaid through future energy savings. Loan repayments will finance additional sub-projects thanks to the use of a revolving fund. The equipment targeted for upgrade is widely used and has large energy savings potential.
The project has an estimated lifespan of 15 years.
Project timeline
Pipeline
12 May 2015 - 416 days
Concept note received
12 May 2015
Funding proposal received
31 Jul 2015
Approved
30 Jun 2016 - 937 days
Approved by GCF Board
30 Jun 2016
Cleared by iTAP
30 Jun 2016
Legal opinion on AE's Internal Approval
27 Jul 2018
FAA executed
24 Dec 2018
Under implementation
22 Jan 2019 - 2,129 days so far
FAA effective
22 Jan 2019
Disbursement - USD 1,700,000
30 Jun 2020
Disbursement - USD 2,000,000
30 Jun 2020
Disbursement - USD 4,500,000
04 Sep 2021
Disbursement - USD 5,000,000
30 Sep 2022
Disbursement - USD 8,500,000
24 Oct 2023
To be completed
22 Jan 2026 - 429 days to go
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Financing
- Private sector
- Public sector
-
Size
- Micro
- Small
- Medium
- Large
GCF financing100% disbursed
| Instrument | Amount |
|---|---|
| Loan | USD 20,000,000 |
| Grant | USD 1,700,000 |
| Total GCF Financing |
|---|
| USD 21,700,000 |
Co-financing
| Co-financer | Instrument | Amount |
|---|---|---|
| Co-Financing | Loan | USD 20,000,000 |
| Total Co-Financing |
|---|
| USD 20,000,000 |
GCF Contacts
General media inquiries
GCF CommunicationsSend e-mail
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Project complaints and grievances
GCF Independent Redress Mechanism (IRM)Phone +82 32 458 6186 (KST)
File a complaint
Integrity issues
GCF Independent Integrity Unity (IIU)Phone +82 32 458 6714 (KST)
Send e-mail
Entity
Inter-American Development Bank
Chief, Resource Mobilization Division
1300 New York Avenue, NW, 20577., Washington DC, United States
Lead Climate Change Specialist
1300 New York Avenue NW, Washington, D.C., United States
More contacts
National Designated Authority
Ministry of Environment and Natural Resources (MARN)
Minister of Environment and Natural Resources
Kilómetro 5 ½ Carretera a Santa Tecla, Col. Las Mercedes, Frente a Círculo Miliar, Edificios MARN, San Salvador, El Salvador
Director of International Cooperation and Climate Change
Kilómetro 5 ½ Carretera a Santa Tecla, Col. Las Mercedes, Frente a Círculo Miliar, Edificios MARN, San Salvador, El Salvador