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GERMANY SUPPORTS VIETNAM IN FACILITATING ACCESS TO FINANCING FOR RENEWABLE ENERGY PROJECTS
Hanoi, 30/08/2016 Today, the Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH in Vietnam hosts the Consultation Workshop on ”Development of the Risk sharing Facility for renewable energy projects in Vietnam”. The workshop is organized by the GIZ Renewable Energy and Energy Efficiency Project (4E) under the framework of Climate Finance Readiness component (CF Ready) which is jointly funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the United States Agency for International Development (USAID) and the Czech Ministry of Environment. One of the key activities of the CF Ready component is to design a mechanism enabling access to commercial loans for renewable energy projects.
Commercial banks such as BIDV, Techcombank, Vietcombank, Vietinbank, but also the State Bank of Viet Nam, relevant ministries and international financial institutions exchange on the design of the mechanism at this consultation workshop. Lori Kerr, Senior Director of Climate Finance Advisors, a Washington-based consulting and advisory firm specialized in climate funds and green banks provide international experience and moderate the discussions amongst participants. This Risk Sharing Facility (RSF) mechanism is expected to enable local banks to boost access to non-recourse financing and to provide extended-maturity financing to renewable energy projects. This facility will have an initial focus on the sugar mills so that they can finance their long-term and efficient combined heat and power production (CHP) investments. This facility should also include technical assistance to banks, developers and business associations.
Since 2014, USAID has joined forces with GIZ to further develop the CF Ready programme in fifteen countries. In Vietnam, the main activities of the programme includes providing local consulting companies with trainings on pre-feasibility studies for biomass to energy projects; supporting the development of selected provincial biomass planning; and facilitating a financing mechanism for renewable energy projects.