26th May 2021, Skopje – Injecting funds in projects with a strong added value is of particular importance for both recovery of the economy and acceleration of the economic growth, Minister of Finance, Fatmir Besimi pointed out at the virtual information session organized by the Ministry of Finance, pertaining to the Public Sector Energy Efficiency Project, being implemented with World Bank’s support. This information session is aimed at informing the municipalities on the manner of applying at the public call for usage of funds for investments in municipal energy efficient buildings, the total funds subject to the call amounting to EUR 10.5 million, which was announced a week ago.
– This Project is of enormous significance from the aspect of strengthening the fiscal capacity of municipalities. Hence, I am confident that you will promptly determine which municipal buildings need the respective actions so as to apply for the available funds. Great interest shown in this Project clearly demonstrates that we are ready to cope with the global challenges, in terms of securing sustainable energy future and healthy environment – Besimi said.
World Bank Country Manager, Massimiliano Paolucci also delivered a speech at this event.
Paolucci said that one of the key objectives of this Project is creating a sustainable financing mechanism that will be able to scale up energy efficiency investments in the public sector.
“Establishment of the Energy Efficiency Fund, which is planned under the Project, as a revolving financing mechanism, will be able to support North Macedonia scale up investments to improve energy efficiency in the public sector and then later expand to other sectors as well. This revolving mechanism will allow for the Fund to continue investments in the public sector, especially municipalities, by offering continued financing for ER after the Project is closed – Paolucci said.
Thereby, he stressed that in addition to achieving energy savings, this Project will also contribute to creating local green jobs. As he pointed out, many of these building renovations and lighting system replacements are often done through local construction companies.
Amount of funds per municipality can vary from EUR 50,000 to EUR 750,000, being dependent on the estimated investment value of the proposed municipal project. By signing a sub-loan agreement with the Ministry of Finance, 80% of these loan funds will be allocated to the municipality as on-lending, with the remaining 20% being allocated as a grant. At the same time, within the funds provided for the selected projects, Ministry of Finance will also cover the expenses for preparation of Energy Audit and technical design.
Representatives of the municipalities underlined the particular importance of this Project for their municipalities, thereby adding that they are currently determining which public buildings will apply for the respective public call.
Public Sector Energy Efficiency Project’s total value is EUR 25 million, whereby part of the funds are intended for investments in energy efficiency of central government building, focusing on public health institutions, as well as for establishment of Energy Efficiency Fund.
Most of the funds projected for this Project, i.e. EUR 10.5 million are intended for all local government units of the Republic of North Macedonia, the main purpose of which is reducing the energy consumption in the public sector, as well as improving the quality of the public buildings and the public lighting.
During this information session, the Lead Coordinator of the Municipal Services Improvement Project, Tanja Tomic and the MSIP PIU team informed the municipal representatives on the manner of applying, as well as the overall process therefor.