El Salvador: $20 million for Energy efficiency

The Inter-American Development Bank has granted a loan that will be used to finance energy efficiency projects for small and medium-sized companies.

Friday, July 27, 2018

The funds for this loan come from the Green Climate Fund (GCF) and will be executed by the Development Bank of El Salvador (BANDESAL).  The objective of the financing granted is to support the efforts being made by SMEs in El Salvador to reduce electricity consumption and limit greenhouse gas emissions, reported the Inter-American Development Bank (IDB). 

See also "Central America: $1.6 billion in energy projects"

The statement reports that " ... This loan will benefit SMEs in all sectors of the economy that have no or limited access to long-term credit, which is essential for investing in energy efficiency.  It is estimated that the program, BANDESAL's first line of credit exclusively dedicated to promoting investments in energy efficiency, could support 494 SMEs." 

The document adds that " ... El Salvador is promoting energy efficiency and supporting renewable energies as a way of implementing a low carbon economy, alleviating national dependence on petroleum derivatives and mitigating greenhouse gas emissions."

The IDB financing has a term of 20 years, with a grace period of 5.5 years and a fixed interest rate of 0.75. 

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