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FDB & World Bank to sign mou on sustainable energy finance programme
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05 July 2011

In Government’s 10-point economic plan for achievement by 2020, Fiji is “to convert up to 90 percent of all electricity generated from fossil to renewable sources.”

The policy while favourable to the environment is also designed to reduce the nation’s fuel import bill which lies anywhere between $700 million and a billion dollars annually depending on what the market price is on any given day of the week.

In view of this economic target, the Bank’s board approved the Sustainable Energy Financing Project (SEFP) facility in May 2010 for persons interested in obtaining financing for this particular purpose.
The SEFP policy is also in support of the work of the Departmentof Energy and the World Bank in promoting the use of solar, hydroor coconut oil fuel (alternative fuel for diesel generators) for lights or electricity generation.

The Fiji Development Bank has been approved by the World Bank
as a participating financial institution for SEFP and in this regard, a Memorandum of Understanding between the Department of Energy acting as the executive agency for the World Bank and the FDB will be signed in Suva on Wednesday (6 July).

Through the implementation of SEFP, the following renewable
energy systems are supported for financing:
  • Solar Photovoltaic (PV) System;
  • Pico – Hydro System; and
  • Fuel Switching System where coconut oil will be used as a diesel fuel alternative for generating electricity.

The scheme will cater for energy financing loans of up to one
million dollars with subsidies limited to $50,000 maximum per
project. The facility is available at an attractive interest rate of 6% repayable over five years for individual borrowers and seven years for micro and small business owners provided the repayment period does not extend beyond 30 December 2018. Should the facility be extended beyond the five or seven years stipulated, the normal interest rate will apply. The facility is not a standalone product – it must have an income generating prospect.

The Bank’s normal prudent screening and credit assessment
process applies. Enquiries about this facility can be made at any FDB branch.
 

 

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