Azerbaijan to get Energy Efficiency Financing Boost

THE International Finance Corporation (IFC), part of the World Bank Group, is looking for proposals from Azerbaijan’s Banks to start funding energy efficiency and renewable energy projects in Azerbaijan.

The IFC recently publicised that it is to provide funding to Bank Respublika to start financing such projects, particularly expanding finance to small and medium enterprises, with a $15 million loan being the first IFC funding project for energy efficiency and renewable energy in the country.



Aliya Azimova, Azerbaijan’s IFC representative, said, "There was no such product in Azerbaijan. Theoretically other banks may also apply with their proposals but to date have not done so."

Azimova added that the IFC plans to start work again on raising public and business awareness of energy efficiency.

"A few years ago we conducted a survey to find out the potential of the energy efficiency market in Azerbaijan. We want to resume work in this direction in order to raise awareness of people and businesses on this niche. There will be no special project. We will work within a regional initiative," she said.

The IFC’s Board of Directors are expected to provide final approval for the funding to Bank Respublika later this month with a line of credit amounting to $15 million, the Finance Corporation will provide $14 million and $1 million will be attracted as part of the Canada Climate Change Programme.

The IFC had already stated: "The project will extend access to finance to small and medium-sized enterprises and stimulate the growth of the non-oil sector in Azerbaijan as well as positively affect job creation and economic development in the country. Moreover, this project will be a positive sign for other commercial lenders and increase the interest of investors to the areas of renewable energy and energy efficiency in Azerbaijan. This will also help to establish criteria for financing of this sector in the country."

Picture of Baku, Azerbaijan by Azer akhundov (Own work) [CC-BY-SA-3.0 or GFDL], via Wikimedia Commons

Friday 3rd May 2013


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