IFC to fund energy efficiency projects

Wednesday, Nov 06, 2013 17:30

HCM CITY (Biz Hub) – International Finance Corporation (IFC), an affiliate of the World Bank, is running a programme to provide financial assistance to energy efficiency projects.

IFC representative Romel Carlos said his institution has set several criteria for investments: of up to 25 per cent of project cost if it is a greenfield one with total costs higher than US$50 million; or up to 35 per cent if the total cost is less than $50 million.

The rate for expansion or rehabilitation projects may come up to 50 per cent of the total cost, he said.

The IFC can also deliver complements to its own debt investment via syndicated loans or parallel loans, he said at a seminar held by the Ministry of Industry and Trade on Wednesday in HCM City.

According to the Viet Nam Energy Efficiency and Conservation Office, the nation's energy demand will increase significantly, by more than four times between 2005-2030, which calls for efficient usage.

The energy demand growth rate on GDP growth rate ratio stands at 2, while it is less than 1 in developed countries.

Viet Nam is forecast to become an energy importing country in 2015. — VNS

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