MEET-BIS CAMBODIA ACCESS TO FINANCE PILOT MODELS: OVERVIEW AND ADVANTAGES

Transcription

1 MEET-BIS CAMBODIA ACCESS TO FINANCE PILOT MODELS: OVERVIEW AND ADVANTAGES

2 OVERVIEW 1. A2F Purpose 2. A2F Objectives 3. A2F Pilot Models ESCO Model End-User Financing Product-Based Financing Plan

3 1. A2F PURPOSE Access to Finance (A2F) component under MEET-BIS Cambodia aims at facilitating access to funding in order to enable CTS expand their business and SMEs to invest in: Energy efficiency (EE) and Renewable energy (RE) solutions In order to reduce energy consumption cost and reduce the negative impact on the environment

4 2. A2F OBJECTIVES Identification of at least 2 Financial Institutions and establishment of partnerships with them Provision of technical assistance to the 2 Financial Institutions on developing green credit products for selected SME sectors / suppliers servicing these sectors Enabling of access to financing for at least 50 SMEs for the purchase of EE/RE equipment.

5 3. A2F PILOT MODELS Model Operators Source of Funding Customers ESCO 4 suppliers ACLEDA Suppliers End-User Financing ESS ACLEDA SMEs Product-Based Financing GA Mega Leasing SMEs

6 3.1 ESCO MODEL Energy Service Companies (ESCO) act as project developers to design, install, operate and arrange financing for EE/RE projects that reduce energy costs Investment and installation of equipment in SME Supplier Maintenance and operations Payment according to contract with supplier for equipment use, O&M and utility provision SME

7 3.1.1 Approach of ESCO MODEL Equipment supplier financed by ACLEDA, and Proposed approach Supplier finances the end user. ACLEDA will assess the supplier who will receive the money. Proposed products Solar water heaters Heat pump

8 3.1.2 ESCO CONTRACT STRUCTURE

9 3.1.3 Mechanism of ESCO MODEL 4. Monthly Payment (80% of previous payment) SME (Hotel) 1. ESCO contract 3. Delivery and installation of equipment CTS (Supplier) 5. Payment of Electricity Bill to EDC Bank (ACLEDA) EDC/Gas

10 3.1.4 ADVANTAGES OF ESCO MODEL FI Suppliers SMEs MB Fixed and Movable Assets accepted as Collateral Good cooperation with Suppliers and SMEs Expand market, fund investment on EE product for suppliers and SMEs Favorable Financing Condition Easier access to finance for their EE/RE investments from suppliers Facilitated partnership between the FI, Supplier and SMEs Expand their market Exploration of new financing model (ESCO)

11 3.2 END-USER FINANCING MODEL End-user financing is the FI s loan to provide to consumers (SMEs) to pay for energy products or services. Proposed Approach End users apply for green loan, based on their own profile. Streamlined credit assessment. Support for SME in preparing documentation Proposed product Solar Water Heater Heat Pump

12 3.2.1 Structure of End-User Financing Supplier (ESS) 3. Delivery and installation of equipment 2. Purchase EE/RE Equipment SMEs FI

13 3.2.2 ADVANTAGES of End-User Financing FI Suppliers SMEs MB Good cooperation with suppliers and SMEs Expand market, fund investment on EE product for SMEs Product promotion and sales support Favorable Financing Conditions Agreed Partnership Conditions Possibility of growing client base through improved access to finance Access to financing for investment Favorable loan condition providing

14 3.3 PRODUCT-BASED FINANCING Product-based financing is the FI s loan to provide to consumers (SMEs) to pay for energy products or services by using product as collateral. Leasing contract with end user. Proposed approach Leasing Firm reserves its rights to own leasing equipment and transfer it to SME when leasing contract is finished.. Proposed product Air-conditioning

15 3.3.1 Structure of Product Based-Finance GA 3. Delivery and installation of equipment SME Mega Leasing

16 3.3.2 Advantages of Product Based-Finance FI Supplier SMEs MB Product is used as collateral Good cooperation with suppliers and SMEs Product promotion and sales support Expand market into providing leasing for SMEs Favorable Financing Conditions Agreed Partnership Conditions Possibility of growing client base through improved access to finance Available funding for investment Favorable leasing conditions (Product is accepted as collateral etc)

17 Plan 1. Products developing with Financial Institutions (ACLEDA & Mega Leasing ) 2. Pilot Launching and Implementing 3. ESCO model exploration

18 THANK YOU FOR YOUR KIND ATTANDANCE! Implemented by: MEET-BIS.ORG ETC FOUNDATION RainWater CAMBODIA AdaPPPt This publications has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of MEET-BIS Cambodia Project and its implementing partners and can in no way be taken to reflect the views of the European Union