Banks to fund Czech energy efficiency

A CZK 900 million (£16 million) debt facility arranged by the European Bank for Reconstruction and Development (EBRD) and Commerzbank Praha, in Prague, will finance energy efficiency projects being developed in the Czech Republic.

The schemes, which are being developed by Harpen CR, a company already operating 180 district heating projects in the Czech Republic, Germany, Hungary and Poland, will reduce energy consumption, and improve heating services, whilst maintaining or even lowering customers’ bills, says the EBRD.

“This is the first EBRD loan to support the district heating sector in the Czech Republic,” said Johan Bastin, the Bank’s Business Group Director for Infrastructure.

“The Bank’s financing will help Harpen continue to provide the most cost-effective source of heating and hot water in the cities it serves,” said Jacquelin Ligot, Director of the Energy Efficiency Team at EBRD. “This will also improve environmental performance. We couldn’t be more pleased to support a project that enhances private-sector participation in a sector where public management remains the norm.”

The project will bring together a number of smaller heating sub-projects, thereby improving the heating infrastructure of the country while diversifying the risk for lenders, says EBRD. It will also increase private sector participation in the financing and operation of municipal services in the Czech Republic.

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