The European Bank for Reconstruction and Development (EBRD) and Bank Audi are joining forces to finance USD 100 mn each for funding potential Lebanese green projects, Invest-Gate reports.
This marks the first loan under the EBRD’s Green Economy Financing Facility (GEFF) for the country, EBRD said an official statement on November 8.
In a positive move for actualizing the country’s renewable energy targets, USD 90 mn will be funded by the EBRD, augmented with an additional USD 10 mn by the Taiwan International Cooperation and Development Fund (TaiwanICDF), for on-lending to private borrowers.
The finance pool shall be further supplemented by Bank Audi, Lebanon’s largest bank, which is offering an additional USD 100 mn under the GEFF, EBRD adds.
The funds will be utilized for “critical issues for Lebanon’s sustainable development, such as diversifying energy supply, reducing the use of limited natural resources such as energy and water, and improving energy efficiency, thus decreasing pollution levels, conserving resources, and contributing to a better environment.”
The long-term loan program will be complemented by a technical assistance package offering engineering, environmental, financial, and marketing consultancy teams. However, no specific project details were made available.
“Lebanon’s energy challenges are significant,” EBRD Lebanon Head Gretchen Biery says, adding “GEFF Lebanon is one of many complementary sources of financing that are urgently needed to improve power supply, diversify energy sources, and promote environmental awareness.”
Since 2006, through GEFF, the EBRD has provided around EUR 4 bn (USD 4.5 bn) in green financing to over 130 financial institutions, reaching 120,000 clients in 25 countries.