BENEFICIARY NAME:

BANDESAL - Banco de Desarrollo de El Salvador

COUNTRY: Regional

SCOPE: Development of the Energy Savings Insurance Program (El Salvador – BANDESAL)

DESCRIPTION: In El Salvador, ESI is being implemented with the support of the second-tier National Development Bank BANDESAL with support of the Danish Energy Agency and recently approved loan and grant resources from the Green Climate Fund (GCF) to establish a concessional line of financing of USD 40 Million with USD 20 Million by the GCF and USD 20 Million co-financing by BANDESAL for investments in efficient technology (boilers, motors, refrigeration chambers, air conditioning A/C) by SMES. The work is conducted on the basis of a market assessment, which has assessed the potential of EE investments in the country and the financial and non-financial barriers that hinder these investments. The results of the market assessment illustrate the importance of a combination of standardized risk management instruments including performance contracts, validation mechanisms, and insurance mechanisms; and furthermore, a potential of some 500 firms investing in energy efficiency projects and reducing about 37,500 tCO2e/year..

SECTOR: Plastic industry, pharmaceutical, food, hospitals and clinics, hotels, buildings

PROGRAM: ESI

SOURCE AND AMOUNT:

  • IDB/Danish Government/GCF $300,000 + $20MM

PROJECT TYPE: Technical cooperation

OPERATION NUMBER: RG-X1258