By facilitating investment into this sector, the Project will stimulate economic growth and sustainability among SMEs, thus creating and preserving jobs and accelerating economic recovery from the COVID-19 crisis. The Project will also help to fulfill Kazakhstan’s national strategic goals for decreasing energy intensity of the GDP.
Toward these goals, the Project will create and pilot the loan guarantee scheme, conduct supporting activity in training and monitoring, and scale up the loan guarantee fund on the basis of initial results. Eligible businesses will include providers of energy-saving services and equipment; energy end-users seeking to upgrade efficiency of facilities and energy systems; and intermediaries (micro-finance organizations, leasing companies, factoring companies) that finance eligible businesses or projects mentioned above.
The immediate intended outcome of this Project is the mobilization of loans for SME banks for energy efficiency activities.
The Project consists of five components, four of which are centred around the loan guarantee scheme. Each component has its respective set of planned activities and outputs.
Component 1. Assessment of current and potential markets as well as investment needs among SMEs working on energy efficiency
Component 2. Designing the pilot loan guarantee system
Component 3. Piloting the system for supporting investments into energy efficiency projects, review of lessons learned on its performance with subsequent transformation of the system into a sustainable national structure
Component 4. Strengthening capacity of stakeholders (banks, the private sector, specialised institutions etc.) to ensure sustainability of the support system and for pipeline development
Component 4. Project management