Azerbaijan, Baku, April 30 / Trend A.Akhundov /
The International Finance Corporation (IFC) is ready to accept proposals from banks to start financing projects in the field of renewable energy and energy efficiency, IFC resident representative in Azerbaijan Aliya Azimova told journalists on Tuesday.
IFC has previously announced that it will provide a loan to Bank Respublika to start financing projects in this area as well as expand lending to small and medium enterprises (SME). A $15 million loan is part of the first IFC funding project for renewable energy and energy efficiency in Azerbaijan.
"There was no such product in Azerbaijan. Theoretically other banks may also apply with their proposals but to date have not done so," Azimova said.
According to her, IFC intends to resume work on raising public and business awareness in the field of energy efficiency.
"A few years ago we conducted a survey to find out the potential of the energy efficiency market in Azerbaijan. We want to resume work in this direction in order to raise awareness of people and businesses on this niche. There will be no special project. We will work within a regional initiative," Azimova said.
Approval of the loan to Bank Respublika is expected by IFC's board of directors on May 20 of this year. From a line of credit of $15 million, the Finance Corporation will provide $14 million and $1 million will be attracted as part of the Canada Climate Change Programme.
"The project will extend access to finance small and medium-sized enterprises and stimulate the growth of the non-oil sector in Azerbaijan as well as positively affect job creation and economic development in the country. Moreover, this project will be a positive sign for other commercial lenders and increase the interest of investors to the areas of renewable energy and energy efficiency in Azerbaijan. This will also help to establish criteria for financing of this sector in the country," the IFC said earlier.