Fachagentur Nachwachsende Rohstoffe e.V. (FNR)
OT Gülzow • Hofplatz 1 • 18276 Gülzow-Prüzen
Telefon 0 38 43/69 30-0 • Fax 0 38 43/69 30-1 02
E-Mail: info@fnr.de • Internet: www.fnr.de


Financing Sources

Within BIO-PROM the GFA Consulting Group has prepared an overview of financing sources for bioenergy projects in the Russian Federation. The analysis focused on international development programmes, specially designed to support the renewables’ sector in Eastern Europe. Only programmes from the EU and EU member countries were considered. However, EU funds are currently not available for the projects focusing the Russian market. The currently open financing programmes are demonstrated below.

It should be mentioned that Russian private banks may also offer further individual conditions for project developers. Some private banks in EU member states support the export of equipment for renewable business development as well. These options require a separate analysis.

Overview of financing programmes currently open for investment projects in Russia

Financing programmes in detail

German Climate and Development Society (DEG) – Climate Partnership with the Private Sector
Initiators
  • Germany
Investors
  • Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) / International Climate Initiative
Financing instruments
  • Mobilization of the private sector for climate protection in developing and emerging countries
  • Promoting technology and knowledge transfer
  • Development of a low-carbon economy
Eligibility criteria - DEG
General eligibility criteria
  • Promoting the introduction of climate-friendly technologies
  • Adapting proven technology for reducing greenhouse gas emissions
  • Demonstration of innovative technologies
  • Structure-forming effect in connection with the use of climate-friendly energy
Eligibility criteria for borrowers
  • German or European private company (also in cooperation with Ukrainian partners)
    • Annual turnover of at least 1 million €
    • At least 10 employees
    • Operating for at least three fiscal years
Eligibility criteria for projects
  • Economic efficiency
  • Climate-friendly impact in the host country
  • Project must not be required by law
  • Not yet started implementation of the project
Financing conditions - DEG
Financial products
  • Grant up to 50% of eligible project costs
Interest rate
  • n.a.
Investment volume
  • Maximum of 200,000 €
Further requirements
  • Companies must contribute at least 50
  • Maximum duration 2.5 years
Requirements - DEG
Information about project
  • Name, address and further data of all who participate in the project (sponsor)
Financial background information
  • Information about the finances of all companies participating in the project
Technical documentation
  • Technical feasibility study: technical concept, to be procured equipment, total investment costs
Business plan
  • Cashflow analysis and liquidity planning incl. audit of reserve accounts => expected profits

NEFCO Cleaner Production Facility (NEFCO)
Initiators
  • Nordic Environmental Development Fund (NMF)
Investors
  • Nordic Environment Finance Corporation (NEFCO)
Financing instruments
  • Loans on favorable terms to private and public companies; Loan repayments directly linked to achieved savings of the invest
Eligibility criteria - NEFCO
General eligibility criteria
  • Modernization and renovation of existing production facilities and processes to generate positive environmental effects
Eligibility criteria for companies
  • Private or public companies
  • Borrower: open and fair procurement process for goods and services
Eligibility for projects
  • Maximum payback period of 4 years
  • Annual savings of approx. 25% of investment costs
Financing conditions - NEFCO
Financial products
  • Loans with a max. credit period of 5 years
Interest rate
  • Fixed rate: 6% / year (quarterly repayments)
Investment volume
  • Max. Loan amount 500,000 €; up to 90% of the total project costs can be financed
Further requirements
  • Securities of 125% of the loan (property, equipment, bank or municipal guarantees)
Requirements - NEFCO
Information about project
  • Name, address, personal data of all project participants => due diligence
Financial background information
  • Annual financial statements in accordance with the International Financial Reporting Standards (IFRS) of all companies directly involved in the project (last 3 years)
  • For Special Purpose Vehicles (SPV) => each shareholder
Technical documentation
  • Technical feasibility study: technical concept, to be procured equipment, total investment costs
Business plan
  • Cashflow analysis and liquidity planning incl. audit of reserve accounts => expected profits

For information concerning possible financing sources for projects regarding business development in Ukraine follow the link.