IDB Supports Energy Efficiency Project in Chile

23 February 2011: The Inter-American Development Bank (IDB) is supporting Chile in the design and implementation of a partial credit guarantee program to expand financing for energy efficiency programs and foster the participation of engineering firms and energy service companies (ESCOs) in the development of an energy service market in the country.

This project is expected to help leverage additional financing from several sources, including the Global Environment Facility (GEF), which will participate with a non-reimbursable contribution of US$2,36 million administered by the IDB. The ultimate goals are to contribute to the development of a more sustainable energy matrix and to protect the environment. The partial credit guarantee program supported by IDB is expected to result, over the next eight years, in the participation of at least six banks in the financing of energy efficiency projects. This would bring to 12 the number of engineering firms and energy service companies in the market, and result in the issuance of 120 guarantees for energy efficiency projects. [IDB News Release]