Danish-Vietnamese Programme on Low Carbon Transition in Energy Efficiency in Vietnam

Green Investment Facility

LCEE Program OverviewLCEE Program Overview

Danish support to Vietnam National Energy Efficiency

Program (VNEEP)

for the period 2013-16 with a total funding of 65 million DKK

(11.7

Million USD).

Component 1:

Supports the Ministry of Industry and Trade (MOIT) in

promoting energy efficiency in the SMEs with a focus on the

brick, ceramic and seafood processing sectorsComponent 2:

Supports the Ministry of Construction (MOC) in

implementing the new Energy Efficiency Building Code

(EEBC)

GIF Objective, Sectors, GIF Objective, Sectors, ProvincesProvinces

Objective: SMEs in at least 3 sectors (bricks, ceramics and food processing)

adopt energy efficiency measures that will contribute to the Vietnam

National Energy Efficiency Programme (VNEEP) energy savings targets of

5 – 10%

Provinces: Ha Noi Hai Phong Bac Ninh Da Nang

Quang Nam Can Tho Vinh Long Ho Chi Minh

City

Dong Thap Binh Duong

GIF - BasicsGIF - Basics

VND 110 billion facility to stimulate Energy Efficiency (EE) investments by SMEs

Direct target group: SMEs including the Energy Service Companies (ESCO) operating in the Brick, Ceramic and Food Processing Sectors. Other sectors can be considered

Indirect target group: Banks, Suppliers and Service providers in the Energy Efficiency business

Expect to support about 100 to 130 SMEs during 2015/16

GIF – Instruments of GIF – Instruments of SupportSupport

Bank Guarantee Facility (VND 200 million to 2 billion) to support EE investments by SMEs:• Covering 50% of the value of the loan; • Issued in favour of any lending bank chosen by the

SME.

Energy Savings Award (10-30% of Loan - VND 20 million to 1.2 billion) towards the partial repayment of the SME’s loan, on achievement of the committed energy savings.

Structure of GIFStructure of GIF

Qualifying Criteria for GIF Qualifying Criteria for GIF supportsupport

Capital is 100% domestic owned

At least a 20% reduction in energy use or CO2-emission, in the specific production step or equipment of the proposed EE project and comply with the Vietnamese regulations

SME as per the Vietnamese regulationso Employs less than 300 people

or o Capital is less than VND 100 Billion

Proposed EE project has not been implemented already

The Enterprise is established and operational

Qualifying Criteria for GIF Qualifying Criteria for GIF supportsupport

Loan for the proposed EE project is above VND 400 million

Total subsidies from GIF and other schemes and donors is limited to 30% of the loan for the proposed EE project

SME commits to allow visitors to learn from the proposed EE project and the publication of case studies to stimulate replication

SME’s preparation to SME’s preparation to implement the EE Projectimplement the EE Project

Mobilize the enterprise’s share of investment

Provide collateral for 50% of the loan

Start discussions with their bank to check their willingness to support the Enterprise with an Energy Efficiency loan

Conduct a feasibility to understand the benefits and costs, apart from the technical and economic implications of the proposed EE investment

Technical and Human Resource capabilities

Steps – Access GIF supportSteps – Access GIF support

QuestionsQuestions

Green Investment Facility (GIF)11th Floor, BIDV Tower

194 Tran Quang Khai Street, Hanoi, VIETNAM

Phone: +84 4 32041616E-mail: fm-info@lcee.vn Website: www.lcee.vn

ContactsContacts