Bai Tushum Bank became a partner of KyrSEFF Program for financing sustainable energy in Kyrgyzstan
Depletion of energy resources and rising prices for energy products suggest that problems of energy security in Kyrgyzstan are getting more acute and urgent with every year. Each year with the onset of cold weather thousands of Kyrgyzstan people face the problem of a lack of electricity and heating in their homes. This problem is also related to the fact that currently there are no effective reforms supported by investments in the energy sector. Despite these problems, the people of Kyrgyzstan can start taking active steps for economical and rational use of energy resources for the benefit of their purse.
Realizing the importance of the energy efficiency issue, Bai-Tushum Bank became a partner of KyrSEFF Program for financing sustainable energy in Kyrgyzstan, developed by the European Bank for Reconstruction and Development. The aim of the program is to provide financial and technical support for energy efficient modernization, as well as reduction of energy consumption by residential buildings and enterprises.
Bai Tushum Bank joined the Program’s credit line, which combines provision of loans and grants for investment in modern equipment and materials. Loans and grants are available for private companies in the housing, industrial and commercial sectors, for the general public, groups and associations of homeowners. A unique feature of the program is an opportunity to access a grant of 10 % to 35 % of the total amount of the loan as an incentive for those willing to invest in energy efficiency and renewable energy projects, as well as free consulting and technical assistance to borrowers of KyrSEFF Program. Grants are financed by donor funds provided by the Investment Program for Central Asia (IFCA) of the European Union.
“We are happy to contribute to improving the living standards of the population of Kyrgyzstan through the introduction of efficient and sustainable use of energy. Improving energy efficiency will reduce energy costs of Kyrgyz citizens and will facilitate the introduction of new technologies for efficient use of resources and improve the ecological situation” – said Gulnara Shamshieva, General Manager of the Bai-Tushum Bank. “Under the KyrSEFF Program, our Bank has developed a new product – Energosaramjal – which will give our customers access to favorable financing for installation of energy efficient windows, heaters, insulation of walls, roofs and floors to create comfortable environment in homes and apartments. Enterprises planning to expand their business and modernize production processes can access loans and grants for the purchase of new production equipment, repair or reconstruction of buildings and facilities.” If all the terms of the program are met, the client can receive a grant from KYRSEFF of up to 35 % of the total loan amount. It enables the client not only to cover the cost of the interest on the loan, it is also a good bargain.
About the Bai-Tushum Bank
Bai-Tushum was created in 2000 by the U.S. International Development Organization ACDI/ VOCA. On November 13, 2012, Bai-Tushum became the first microfinance organization in Central Asia to receive a full banking license from the National Bank of the Kyrgyz Republic. In 13 years the organization has become one of the largest microfinance institutions in the Kyrgyz Republic with the total assets amounting to USD 130 million. Today, the Bai-Tushum Bank is among the seven largest banks in the Kyrgyz Republic, serving more than 32,000 clients.
One of the most important factors in saving energy is energy efficiency. The main source of heat loss in the country are residential and public buildings, which consume for heating 50% of all energy resources in the country. In this segment, energy consumption levels are 3-5 times higher than those in European countries. Nationwide, real potential for energy saving through improved energy efficiency of residential and public buildings is 4-5 billion kWh of electricity, which amounts to billions of Soms in losses to our society. International practice shows commitment of developed countries to reach energy consumption in buildings (including electricity, heating, gas and coal) of up to 20 kWh per square meter per year. If we take this figure as a benchmark, the potential energy savings in the country may reach about 13 billion kWh per year.