$34 million for renewable energy projects

EU to provide technical support

The Council of Ministers has approved a $34 million loan agreement with Agence Française de Développement (AFD) to support the National Energy Efficiency and Renewable Energy Action (NEEREA). The loan will be used by private sector companies to apply renewable energy to their operations.

Pierre Khoury, Director of the Lebanese Center for Energy Conservation (LCEC), said: “The European Union will also fund a technical support unit to be based at our premises to help renewable energy loan applicants.”

It brings the total international support for NEEREA to $100 million, as the Government approved a $67 million loan by the European Investment Bank (EIB), three months ago. The latest agreement must first pass by Parliament.

According to Central Bank (BDL) regulations, a single project may acquire a maximum loan value of $20 million.

NEEREA is a national financing mechanism initiated by the BDL, in collaboration with the Ministry of Energy and Water, the Ministry of Finance, UNDP, the European Union (EU), and the LCEC. It allows private sector entities (individuals, SMEs, or corporate bodies) to apply for subsidized loans for energy efficiency and renewable energy projects. NEEREA covers loans by any local commercial bank at 0.6 percent interest rate and a repayment period of up to 14 years, in addition to a grant amount released after the project is implemented.