EEC LOAN
OBJECTIVE OF THE EEC LOAN
Energy Efficiency & Conservation (EE&C) Promotion Finance aims to encourage the penetration of EE&C technology, machinery and equipment in Bangladesh, so as to contribute to the development of sustainable society where power demand-supply balance is well under control. It is also expected to contribute to the reduction of greenhouse effect gas emissions.
FEATURES OF THE LOAN
| Eligibility | See the List of Eligible Technology and Equipment (Eligibility criteria may change without prior notification) |
| Amount Threshold | Maximum amount for a single project loan application is BDT 1.5 billion. Minimum amount for a single project loan application is temporarily set at BDT 5 million. |
| Interest Rate | Standard (minimum) interest rate for the loan is 5-6%. BIFFL may suggest otherwise depending on the financial appraisal result. |
| Tenure of loan | Tenure of loan is set depending on the nature of the projects. BIFFL shall conduct financial analysis to identify the appropriate tenure for each individual project loans, to be agreed with the project owner/promoter. |
| Grace Period | BIFFL may grant grace period for the loan, with respect to the nature of the projects. |
| Availability of the Loan | This loan will be provided on first come first serve basis depending on the merits of individual cases. |
Loan administration structure
The original fund is the concessional loan extended from the Government of Japan (JICA) to the Government of Bangladesh (Ministry of Finance).
ELIGIBLE TECHNOCLOGY AND EQUIPMENT
List of Eligible Technology and Equipment
Steps to Apply for the Loan
| Step1: Contact BIFFL |
An aspiring applicant may visit the EE&C Finance team at the BIFFL office to discuss initial eligibility for the loan. |
| Step2: Get Application |
Once BIFFL officials confirm the potentiality the applicant will be handed over an application form and a checklist of required documents. |
| Step3: Submission of the Application and Preliminary Review by BIFFL |
Upon submission of the filled-in application form along with the required documents, the BIFFL officials will review the documents and visit the project site. The applicant may be requested to re-submit some documents if any changes need to be made. |
| Step4: Review by SREDA |
Once BIFFL finds the project eligible for funding, BIFFL will forward the file to SREDA for evaluation of technical eligibility. |
| Step5: Final Review by BIFFL |
BIFFL, upon receiving NOC from SREDA, will perform financial evaluation and other due diligences through reviewing the submitted documents and other information as deemed necessary |
| Step6: Approval of the Loan |
Once BIFFL is satisfied with the project evaluation and upon confirmation of social and environmental compliance of the loan proposal submitted by the applicant, BIFFL management will approve the loan proposal and issue sanction letter. |
| Step7: Disbursement of the Loan |
Upon acceptance of the sanction letter, loan documentation will be executed & disbursement of loan will be made by BIFFL in favor of the applying company |