Banque du Liban

1
Banque du Liban

• Financing Unit

2
Environmental Loans Existing Circular

• Environmentally Friendly projects that aim to
  preserve the environment, i.e.
• Green Architecture projects, landscaping, ?????
  ???????, ????? ???
• Renewable energy.
• Ecotourism.
• Organic Agriculture.
• Waste Water Treatment.
• Recycling.
• Reducing Pollution.

3
Environmental Loans Existing Circular
4
MOU Between BDL and UNDP

• Objectives
• Development of technical cooperation in order to
  develop a vehicle to finance energy efficiency
  and renewable energy projects all over Lebanon.
  This vehicle is called National Energy Efficiency
  and Renewable Energy Account (NEEREA).
• Cooperation to involve international donors and
  organizations to support the NEEREA.
• Development of awareness among Lebanese
  commercial banks and end consumers.

5
MOU Between BDL and UNDP

• Roles and Responsibilities of BDL
• Issuing related circulars for the setup of
  NEEREA.
• Overall financial management and quality control
  of the operations of NEEREA as per BDL
  procedures.
• Coordination with the Association of Lebanese
  Banks to deliver training and capacity building
  activities.
• Securing the financial stimulus through the
  exemption from reserve requirements.

6
MOU Between BDL and UNDP

• Roles and Responsibilities of UNDP
• Ensure the positive participation of the Ministry
  of Energy and Water and the Ministry of Finance
  in the patronage of NEEREA.
• Cooperation with the Ministry of Finance to
  ensure the financial support needed to cover the
  collateral of the loans portfolio covered by
  NEEREA.
• Development of eligibility criteria for potential
  projects to benefit from the BDL incentive
  scheme.
• Ensure the technical validation of projects
  submitted to BDL through the Lebanese Center for
  Energy Conservation (LCEC).
• Certification of the potential projects submitted
  to BDL by the LCEC.

7
Grant Contract Facility in Support of SMEs
Energy Saving Investments

• The total amount of the action granted to BDL by
  the EU is /12,200,000/ to encourage the
  investment of energy saving measures aiming to
  reduce at the same time negative environmental
  impact .
• If the project is presented within a sector not
  benefiting from the subsidy foreseen by Circular
  80, a subsidy applicable to a loan duration of 10
  years and equivalent to 15 of the loan
  requested.
• If the project is presented within a sector
  benefiting from the subsidy foreseen by Circular
  80, a subsidy applicable to an extension of the
  loan duration extended by 3 years and equivalent
  to 5 of the loan requested.
• In addition, out of this 12,200,000, a
  provision of 200,000 will be made for technical
  assistance.

8
Environmental Loans Draft Circular

• All green and energy saving projects within the
  Housing, Industrial, Tourism, Agricultural,
  Health, Education and Service sectors can benefit
  from the environmental loans whether they seek
  certification or not.
• Environmental loans will be extended to finance
  new environmentally friendly projects and to
  existing projects as well.
• Environmental loans that are not subsidized by
  the Lebanese Government may be repaid over a
  period of 10 years.
• Environmental loans that benefit from Government
  subsidy over a period of 7 years, would benefit
  from additional incentives in Required Reserve
  exemptions over the remaining 3 years to final
  maturity.
• Environmental loans that are guaranteed by
  Kafalat SAL, under a new scheme funded by the EU,
  with the following conditions
• Amount of the Loans guaranteed up to 800,000.
• Maturity of the loan is up to 15 years, of which
  7 years will be subsidized by the Lebanese
  Government, and the remaining period to maturity
  will benefit from additional incentives provided
  by BDL.