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Name |
Hungary: Energy Saving Credit Fund/German Coal Aid Fund |
Status |
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Active |
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Funding Mechanism |
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Duration |
1991- revolving fund; end not defined |
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Objectives |
To improve energy efficiency in energy production, transformation, transport, and end-use |
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Sponsors |
Established in 1991 by the Ministry of Economic Affairs (MoEA) with the proceeds of US $18 Million from the sale of donate d German hard coal- German Coal Fund |
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Eligible Sectors |
Industrial firms, municipalities, and district heating companies |
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Eligible Projects/Technologies |
Renovation of energy transformation, heating, lighting systems, energy efficient industrial technologies, renewables, energy saving measures in district heating systems |
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Fund Endowment |
German Coal Aid -DM 50 Million (in 1991DM, US$ 18 Million) |
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Terms |
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-Funding Instruments |
Loans |
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-Interest Rates |
Interest Rate equals 1/3 (till 2002: 50%) of the prevailing basic interest rate published by the Hungarian National Bank |
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-Payback |
3-4 years with a maximum length of 6 years (including 2 years of grace period) and implementation period maximum 2 years |
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-Size |
Average: $80,000 – Maximum: $0.3 million USD |
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-Collateral |
Yes |
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-Share of loan in project cost |
Maximum 80% |
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-Loan criteria |
Credit-worthiness of total cost saving at least 50% are from energy saving. Projects need to achieve minimum energy savings to eligible (>75 GJ/million HUF annually (till 2002: >100GJ per million HUF annually) and 50% of all savings must be energy cost savings). |
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Comments |
The government of the Republic of Germany offered a 50 million DEM aid package to Hungary for purchasing coal in 1991. Following the purchase and subsequent sale of coal, 60% of the generated income became a financial source entitled “German Coal Aid.” The fund has become independent from any current or future resource, grant, loan providing institutions and can supply both SMEs as well as larger projects. |
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Sources |
The Energy Centre Hungary
GEF
IEA
World Bank |
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Contact Information |
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