EIB supporting investments increasing energy efficiency in Bucharest

The European Investment Bank (EIB) and the Municipality of Bucharest Sector 1 have signed a finance contract of EUR 22.6 million - the second tranche of an approved EIB loan for a total amount of EUR 136.5 million - to finance the second phase of the refurbishment programme of multi-family housing in the municipality of Sector 1 in the Romanian Capital of Bucharest.

Investments under the first tranche of EUR 22.5 million signed in July 2014 are underway. The project is expected to result in around 50% savings of the heating energy consumption of the buildings concerned. It will contribute to improving the environment in terms of the reduction of emissions and pollution, with positive implications for the living standard of the  citizens of Bucharest.

The EIB financing is enabling the Municipality of Sector 1 to continue its priority investment programme as the project follows the first phase of the energy efficiency programme for residential buildings undertaken by the Municipality and financed by the EIB in 2011. In total 406 buildings with almost 19 thousand apartments shall be refurbished in this second phase. This investment started in 2013 and will be carried out until 2017. The programme is targeted to energy savings totalling some 190 GWh per year once fully implemented.

The EIB loan helps to implement the National Energy Efficiency Action Plan of Romania in the area of the thermal rehabilitation of multi-storey buildings and supports Romania’s effort to fulfil its commitments under the EU Energy Performance in Buildings Directive.

The expected project cost amounts to EUR 182 million. In order to support this important energy-efficiency project in Bucharest, the Bank’s contribution has been raised to 75% of the project’s cost, in line with guidelines for investments aimed at reducing energy consumption and mitigating climate change. The municipality’s own sources are expected to cover the remaining 25% of the costs.

The current project is a continuation of the successful cooperation of the EIB with various sectors of Bucharest. Up to date the Bank provided financing amounting to some EUR 327   million to finance energy efficiency refurbishment of multi-apartment buildings in Bucharest’s Sectors 1, 2, 4 and 6.

 

Background information:

The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

 

Press contact:

Dušan Ondrejička, d.ondrejicka@eib.org, tel.: +352-4379-83334

Website: http://www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org