Central Bank of Lebanon Financing Unit

Energy Related: Any undertaking related to Energy Saving and Renewable Energy. Falls under the National Energy and Renewable Energy Action NEEREA. Non-Energy Related: Any project concerned with pollution abatement, solid waste and waste water treatment, recycling. Ecotourism, organic agriculture, and landscaping.

New Projects: Repayment period up to 10 years, beginning after the end of the grace period. Grace period ranging from 6 months to 4 years. Re-modeling Existing Projects: Repayment period up to 10 years, including the grace period. Grace period ranging from 6 months to 2 years.

Loans less than $20,000, or equivalent, need an approval from the Board of the Central Bank for an umbrella amount. Loans with values for more than $20,000 need individual approval from the Governor of the Central bank.

Energy Related Projects 5 Beneficiary ESCO/ Agent/ Consultant Commercial Bank BDL LCEC BDL Approval Technical Proposal Financial Information / Analysis

Energy Related Projects Rated Project Consultant Technical Report Rating Agency Registration Docs Commissioner – Job Auditor Designation Non RatedESCO Technical Report

Energy Project Energy project is finally executed LCEC LCEC will perform technical validation on energy saving and renewable energy, and will release its report to BDL BDL Action would be taken if final execution diverges from original plans.

Energy Related 150% Exemption from RR Interest + Commissions 3% - 50% (1Yr. TB. Yield) Non-Energy Related 100% Exemption from RR Interest + Commissions 3%

Energy Related 500% Exemption from Time Deposits subject to RR Interest + Commissions Cost of Funds + 2% - 50% (1Yr. TB. Yield) Non-Energy Related 200% Exemption from Time Deposits subject to RR Interest + Commissions Cost of Funds + 2%

During Interest Subsidy Period 200% Exemption from Time Deposits subject to RR Interest + Commissions LBP Loans: Rate on 2Yr. TBs. USD Loans: LIBOR 3Mths. + 6% After Interest Subsidy Period 500% Exemption from Time Deposits subject to RR Interest + Commissions LBP Loans: Rate on 2Yr. TBs. – 2.5% USD Loans: LIBOR 3Mths %

The value of the loan extended to finance energy related projects would be calculated as follows: The value of the property is excluded from the above calculations. The certification system developed by LEED is adopted, or equivalent classifications from other internationally recognized systems. Nature of ProjectRatingLoan Amount New ProjectNot ratedEnergy Cost Certified15% of Total Project Value Silver25% of Total Project Value Gold35% of Total Project Value Platinum45% of Total Project Value Existing ProjectRated or Not RatedEnergy Cost

Energy Related 150% Exemption from RR Interest + Commissions 3% - 50% (1Yr. TB. Yield) The Remaining Amount of the Assigned % of the Rated Project 100% Exemption from RR Interest + Commissions 3%

Energy Related 500% Exemption from Time Deposits subject to RR Interest + Commissions Cost of Funds + 2% - 50% (1Yr. TB. Yield) The Remaining Amount of the Assigned % of the Rated Project 200% Exemption from Time Deposits subject to RR Interest + Commissions Cost of Funds + 2%

If the final rating assigned was less than the rating given when the loan was initiated. The difference resulting in the amount of the loan times the 1Yr. TB interest rate times the time period.

The Central Bank would, in collaboration with the EU, pay a grant to subsidize loans extended to finance energy projects, with a maximum of $150k per project: 15% Of the value of the non-subsidized energy related loan 5% Of the value of subsidized energy related projects LCEC Funds are allocated to the project after LCEC approves the technical study proposed. BDL The grant money allocated would be disbursed upon final execution, and after technical validation by LCEC

Solar Heaters Loans150% Exemption from RRUp to 5 Years Maturity0% Interest Rate $200 Grant for the first 7,500 applicants and deducted from their last installments

This is a non-rated residential green building that was granted an energy related loan for the amount of LBP4.7bn Heating System (Central gas Condensing Boilers and Heating temperature controls) Domestic Water Heating (Solar Panels)Air ConditioningLighting (high Efficiency Lighting) Elevators (with Regenerative Converter)General ArchitectureTotal Energy saving Achieved is around 282,000KW-Hr/Year