The European Investment Bank (EIB) is providing EUR 22.47 million – the first tranche of an approved EIB loan for a total amount of EUR 136.5 million – to finance the second phase of the refurbishment programme for multi-family housing in the Sector 1 municipality of the Romanian Capital of Bucharest. The project is expected to result in around 50% savings in the heating energy consumption of the buildings concerned.
EIB President Werner Hoyer commented, “EIB funds will contribute to the implementation of the National Energy Efficiency Action Plan of Romania through the thermal rehabilitation of multi-story buildings. At the same time, the EIB loan will help Romania to meet its commitments under the EU Directive on the energy performance of buildings. This will improve the environment in terms of reduced emissions and pollution, with positive implications for the living standards of the citizens of Bucharest.”
The loan tranche signed today by Mr Mihai Tanasescu, EIB Vice-President, and Mr Andrei Chiliman, Mayor of Bucharest Sector 1, will enable the Sector 1 Municipality to continue its priority investment programme as the project constitutes a follow-up to the first phase of the energy efficiency programme for residential buildings undertaken by the Municipality and financed by the EIB in 2011. In total, 406 buildings with almost 19 thousand apartments will be refurbished in this second phase. Work began in 2013 and will be completed by 2017. The programme is designed to achieve energy savings totalling some 190 GWh per year once fully implemented.
The estimated project cost is EUR 182 million. In order to support this important energy-efficiency project in Bucharest, the EU Bank’s contribution has been raised to 75% of the project cost, in line with guidelines for investments aimed at reducing energy consumption and mitigating climate change. The Municipality’s own resources are expected to cover the remaining 25% of the cost.
The current project is a continuation of the EIB’s successful cooperation with various sectors of Bucharest. To date, the EU Bank has provided EUR 282 million in financing for projects with a total cost of EUR 423 million, aimed at the energy efficiency refurbishment of multi-apartment buildings in Bucharest’s Sectors 1, 2, 4 and 6.
The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.