IFC to Fund Energy Efficiency Loans for Vietnamese SMEs

THE International Financial Corporation (IFC), a member of the World Bank Group, and Techcombank set up a $50 million energy efficiency fund yesterday to provide loans to Viet Nam SMEs (small to medium enterprises).

The IFC will provide $24 million, plus an additional $1 million from their Earth Fund, while the Vietnamese Techcombank would cover the rest of the fund over the next two years.

Techcombank will provide long-term financing in support of businesses to aid in replacing inefficient equipment and upgrade technology and systems to improve efficiency, productivity, cost-saving and reduced emissions.

Techcombank CEO Nguyen Duc Vinh said:

"This is the right time to help our customers become more competitive while coping with energy price volatility and the gap of energy demand and supply.”

Simon Andrews, IFC regional manager for Viet Nam, Laos, Cambodia and Thailand, said:

"Expanding availability of long-term finance and designing specialised lending products for energy efficiency investments will help accelerate the modernisation process in enterprises and move the country economy towards a low-carbon growth path."

A Vietnamese national programme for energy conservation set a target to achieve annual energy savings equal to 5-8 per cent of the total national energy consumption during 2010-15. This new lending provision will further advance cleaner production investments that help reduce waste and resource consumption, according to the IFC

Picture Adam Jones

Wednesday 26th May 2010

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