From the “Energy Efficiency and Conservation Promotion Financing Project” (EECPFP) under the Loan Agreement No. BD-P90 included in the 37th Japanese ODA loan package, dated June 2016 between Japan and Bangladesh, a total loan of JPY11,988 million (USD95 million approximately) is available for BIFFL, shared with IDCOL. In addition, BIFFL has also received JPY574 million (approximately USD5.50 million) as technical assistance. This facility can be used for 9 years.
Energy Efficiency & Conservation Promotion Financing Project(EECPFP) aims to encourage the penetration of EE&C technology, machinery, and equipment in Bangladesh, so as to contribute to the development of a 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.
| Eligibility | See the List of Eligible Technology and Equipment (Eligibility criteria may change without prior notification) |
| Amount Threshold | The maximum amount for a single project loan application is BDT 1.5 billion. The minimum amount for a single project loan application is temporarily set at BDT 5 million. |
| Interest Rate | The standard (minimum) interest rate for the loan is 5-6%. BIFFL may suggest otherwise depending on the financial appraisal result. |
| Tenure of loan | The tenure of the loan is set depending on the nature of the projects. BIFFL shall conduct a financial analysis to identify the appropriate tenure for each individual project loan, to be agreed upon with the project owner/promoter. |
| Grace Period | BIFFL may grant a grace period for the loan, with respect to the nature of the projects. |
| Availability of the Loan | This loan will be provided on a first come first serve basis depending on the merits of individual cases. |
THE ORIGINAL FUND IS THE CONCESSIONAL LOAN EXTENDED FROM THE GOVERNMENT OF JAPAN (JICA) TO THE GOVERNMENT OF BANGLADESH (MINISTRY OF FINANCE).
| 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 a financial evaluation and other due diligence by 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 with the loan proposal submitted by the applicant, BIFFL management will approve the loan proposal and issue a sanction letter. |
| Step7: Disbursement of the Loan |
Upon acceptance of the sanction letter, loan documentation will be executed & disbursement of the loan will be made by BIFFL in favor of the applying company. |