Moscow Russia, June 22, 2012—IFC, a
member of the World Bank Group, signed a cooperation agreement with the
Association of Regional Banks of Russia to help regional commercial banks
develop new products and know-how to expand financing for capital repairs,
energy-efficient renovations, and modernization of multifamily buildings.
The IFC Russia residential Energy Efficiency
Project will advise the association, known as ASROS, on developing financing
schemes for homeowner associations, housing-management companies, and energy-servicing
companies that will support renovation of multifamily buildings. The IFC
project will also help ASROS develop training curricula, conduct workshops,
and disseminate best practices among member banks.
“Developing best practices in residential
energy-efficiency finance opens new business opportunities for regional
banks,” said Anatoly Aksakov, ASROS’s President and member of State Duma,
Russia’s parliament. “Interest among our member banks is always high
in participating in such programs because they trust IFC and value its
international expertise. I am confident of this program’s success.”
Russia’s residential-housing sector consumes
20 percent of the country’s electricity and 60 percent of its heat. About
60 percent of Russia’s multifamily apartment buildings need repairs, including
96 percent of apartment buildings older than 25 years. The estimated cost
for capital repairs in Russia up to year 2035 range from 322 billion to
1,715 billion Russian rubles (about $10 billion to $53 billion).
Rolf Behrndt, IFC Regional Business Line
Manager for Access to Finance in Europe and Central Asia, said, “The need
for capital repairs in Russia is enormous, and local commercial banks can
play a vital role in providing financing for capital repairs and energy-efficiency
modernization of multifamily buildings. IFC can help banks strengthen expertise
in this area. Together with ASROS, we also can provide advice to the federal
government and State Duma on legislative improvements.”
The IFC Russia Residential Energy Efficiency
Project aims to stimulate investment in the energy-efficient renovation
of residential multifamily buildings and to reduce carbon dioxide emissions.
The program is being implemented with financial support from Finland’s
Ministry of Foreign Affairs and Ministry of Employment and Economy and
the Global Environment Facility, and in partnership with European Bank
for Reconstruction and Development.
For more information about the Association
of Regional Banks of Russia, please visit http://www.asros.ru/.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, providing advisory services to businesses and governments,
and mobilizing capital in the international financial markets. In fiscal
2011, amid economic uncertainty across the globe, we helped our clients
create jobs, strengthen environmental performance, and contribute to their
local communities—all while driving our investments to an all-time high
of nearly $19 billion. For more information, visit www.ifc.org.