Hrvatska banka za obnovu i razvitak provided additional HRK 212.8 million for the implementation of financial instrument „ESIF Loans for Energy Efficiency in Public Sector Buildings“. By such increase in funds, the total amount made available to public sector reached more than HRK 400 million of very favourable funds. In other words, due to great demand and interest, the initially provided amount of HRK 190 million was completely disbursed in short time.

Interest rates from 0.1 percent

The funds of the financial instrument „ESIF Loans for Energy Efficiency in Public Sector Buildings“ are intended to finance investments that will result in the reduction of energy consumption of at least 50 percent at year level.

Loans are approved at an interest rate of 0.1, 0.25 or 0.5 percent p.a., depending on the level of development of the area where the project is implemented, with no customary banking fees charged.

Eligible borrowers are public sector entities that, prior to the submission of a loan application, have obtained a Decision on financing of the project through a grant within the framework of the tender “Energy Efficiency and Use of Renewable Energy Resources in Public Sector Buildings”, issued by the Ministry of Construction and Physical Planning.

Project documentation free of charge

„We are very satisfied with the results of the implementation of this programme so far and I would like to thank the Ministry of Regional Development and EU Funds for having approved additional funds to HBOR. Favourable funds for investments in energy efficiency will soon be available to entrepreneurs, but also the funds of ELENA programme in an amount exceeding EUR 2 million. By these funds, private and public investors will be provided free services of preparation of necessary project documentation for investments in energy efficiency“, emphasized Tamara Perko, President of the Management Board of HBOR.

HBOR implements 5 financial instruments through which more than HRK 750 million have been provided to entrepreneurs and the public sector so far, and in this respect it is one of the most successful development banks in the European Union.

Roles in the financial instrument implementation

Hrvatska banka za obnovu i razvitak (HBOR) and the Ministry of the Regional Development and EU Funds (MRDEUF) concluded the Agreement on Financing for the Implementation of Financial Instrument „ESIF Loans for Energy Efficiency in Public Sector Buildings“. Pursuant to this Agreement, MRDEUF, as the Governing body of the Operational programme „Competitiveness and Cohesion 2014-2020“ (OPCC), initially granted an amount of HRK 190 million from the European Structural and Investment Funds (ESIF) for the respective financial instrument and authorised HBOR for its direct implementation, and subsequently additional HRK 212.8 million, i.e. altogether HRK 402.8 million.

The Environmental Protection and Energy Efficiency Fund, as Intermediate body at level 2 and the Ministry of Construction and Physical Planning as Intermediate body 1 cooperate with HBOR in the procedure of award and use of the financial instrument.