Moscow, Russia, July 6, 2009—IFC,
a member of the World Bank Group, and the United States Agency for International
Development are helping Armenian banks develop energy efficiency finance
expertise and start lending dedicated to this field. The initiative promises
to improve energy efficiency performance of clients and diversify their
credit portfolios during times of financial turmoil.
Within the framework of the USAID-funded
Commercialization of Energy Efficiency Program, implemented by the US-based
Advanced Engineering Associates International Inc. in Armenia, IFC hosted
a four-day seminar in Moscow that brought together six Armenian banks.
These banks-- - Armbusinessbank, ArmSwissBank, Ameriabank, Ardshininvestbank,
Inecobank, and VTB Bank (Armenia)--comprise over 36 percent of the Armenian
banking system in terms of assets. The seminar was based on IFC’s unique
experience in developing a sustainable energy finance market in Russia
by partnering with local financial institutions.
“The event aimed to showcase energy
efficiency finance as a commercial opportunity for the Armenian market,”
said Tania Lozansky, Head of IFC Advisory Services in Europe and Central
Asia. “In these times of economic crisis, it is especially important that
banks gain new skills to build strategies for sustainable development and
support their clients.”
The Armenian bankers received information
first-hand and discussed specific practical issues related to creating
this new market. These issues included how to identify and assess energy
efficiency projects at an enterprise; how to use financial instruments
such as fixed-income lending and project and trade finance to fund the
projects; and how to work with vendors and project developers to create
cofinancing products. IFC also presented its view on the potential of energy
efficiency in Armenian industry compared with that of other countries in
The seminar was organized by RBC Training,
a training services provider for businesses. It was financed fully by USAID/Armenia
through its Commercialization of Energy Efficiency Program. It provided
a great example of cross-country cooperation between international and
local organizations looking to create opportunity in the local market.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
For more information about Russia Sustainable
Energy Finance Program, visit http://www.ifc.org/rsefp.
The USAID-funded Commercialization of
Energy Efficiency Program is implemented by Advanced Engineering
Associates International – a Boston-based company specializing in energy
and environmental consulting projects worldwide. CEEP’s goals are targeted
to enhance consumers’ use of energy-efficient technologies from various
sectors of the Armenian economy, increase private sector financing for
energy efficiency projects, and build the capacity of energy sector small
and medium enterprises and banks in financing energy efficiency projects.
They also aim to implement a limited number of socially-oriented energy
efficiency projects with cofinancing from USAID. For more information,