RECP AND ENTREPRENEUR DEVELOPMENT (FINANCING RECP IN EL SALVADOR) Yolanda Salazar de Tobar Executive Director NCPC EL SALVADOR

INDEX GENESIS OF THE INITIATIVE OPERATIONAL MODALITY ACHIEVEMENTS REALIZED ROLE OF NCPC EL SALVADOR LESSONS LEARNED

GENESIS OF THE INITIATIVE KFW and El Salvador Development Bank (BANDESAL) searched, identified and evaluated NCPC El Salvador like control technical unit in BANDESAL and NCPC El Salvador signed an agreement in 2007 to develop business cases in cleaner production, energy efficiency and RECP NCPC El Salvador was developing technical documents to make business cases. -NCPC was designing and making awareness seminars to executives of banks on cleaner production and investment list.

INDEX GENESIS OF THE INITIATIVE OPERATIONAL MODALITY ACHIEVEMENTS REALIZED ROLE OF NCPC EL SALVADOR LESSONS LEARNED

OPERATIONAL MODALITY TECHNICAL ASSISTANCE FUND (not repayable) 25% enterprise 75% KFW/BANDESAL CREDIT LINE (FIXED RATE, LONG TERM AND SMALL RATE) 20% enterprise 80% commercial bank

OPERATIONAL MODALITY US$10 MILLIONS -Industrial sector -Food sector -Transportation sector FIRST PHASE (2007 – 2010) SECOND PHASE (2011 – 2013) US$27 MILLIONS -Industrial sector -Food sector -Commercial sector

OPERATIONAL MODALITY THIRD PHASE US$50 MILLIONS -Industrial sector -Food sector -Commercial sector TECHNICAL ASSISTANCE FUND CREDIT LINE (FIXED RATE, LONG TERM AND SMALL RATE)

INDEX GENESIS OF THE INITIATIVE OPERATIONAL MODALITY ACHIEVEMENTS REALIZED ROLE OF NCPC EL SALVADOR LESSONS LEARNED

ACHIVEMENTS REALIZED (28 enterprises) Energy consumption reduction of 6.7% Fuel oil reduction of 8.4% US$ 1.1 millons per year (savings) US$1.3 millons of investment 14 months (payback) 2.65 millons of kWh per year 107,000 fuel oil gallons per year 2,300 ton of CO2 per year (not generated)

INDEX GENESIS OF THE INITIATIVE OPERATIONAL MODALITY ACHIEVEMENTS REALIZED ROLE OF NCPC EL SALVADOR LESSONS LEARNED

ROLE OF NCPC EL SALVADOR - Since 2010, this credit line has beneficied 28 enterprises, small and medium size, with NCPC technical support. - Additionally, NCPC El Salvador has developed trainings to technical persons (enterprises), executives of banks and consultants. - NCPC El Salvador has established contact to technology suppliers. - NCPC El Salvador elaborates the cash flows to investment projects and calculate savings, net present value (NPV), internal rate of return (IRR) for every case study.

ROLE OF NCPC EL SALVADOR -NCPC El Salvador elaborated the methodology for evaluation and monitoring of environmental and social impact of this credit line. -BANDESAL and NCPC El Salvador develop awareness seminars on “How to save money with energy efficiency, renewable energy and RECP”

INDEX GENESIS OF THE INITIATIVE OPERATIONAL MODALITY ACHIEVEMENTS REALIZED ROLE OF NCPC EL SALVADOR LESSONS LEARNED

LESSON LEARNED -It is very important to develop credit lines for technology suppliers, because the project implementation could be shorter. -It is neccesary to build capacity in the banks, especially in executives of load and risk analistic on RECP, Energy Eficiency, Renewable Energy. -Increase the capacity building in evaluation and monitoring (enterprises and banks).

FOR ADDITIONAL INFORMATION Telephone: (503) Fax: (503) Ext. 102 E mail: